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2 August 2022
Detroit man admits to methamphetamine chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Kenneth Jones, of Detroit, Michigan, has admitted to a drug charge, United States Attorney William Ihlenfeld announced.
Jones, 27, pleaded guilty today to one count of “Possession with Intent to Distribute Methamphetamine.” Jones admitted to having methamphetamine in May 2021 in Monongalia County.
Jones faces at least 10 years and up to life incarceration and a fine of up to $10,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Drug Enforcement Administration Clarksburg Regional Office; the FBI Clarksburg; the Mon Metro Drug Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Monongalia County Sheriff’s Office; the Morgantown Police Department; the WVU Police Department; the DEA Cincinnati District Office; the DEA Detroit Field Division; and the FBI Detroit investigated.
U.S. Magistrate Judge Michael John Aloi presided.
See related case here: https://www.justice.gov/usao-ndwv/pr/michigan-morgantown-drug-ring-disrupted-federal-indictment
Denver Public Schools Pays over $2.1 Million to Settle Allegations Relating to Misuse of AmeriCorps FundsRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announced today that Denver Public Schools (“DPS”) has paid $2,123,811 to the United States to resolve a civil False Claims Act investigation into the operation of its AmeriCorps program and its misuse of AmeriCorps funds. DPS also agreed to pay for any outstanding AmeriCorps education awards yet to be distributed, up to approximately $614,000.
AmeriCorps is a federally funded network of national service programs that address critical community needs like increasing academic achievement, mentoring youth, fighting poverty, sustaining national parks, preparing for disasters, and more. AmeriCorps volunteers—who are referred to as “members”—commit to service for a period of three months to a year in exchange for a living allowance, education awards, and other benefits.
To receive an AmeriCorps education award, each member must complete a specified number of service hours, among other requirements. AmeriCorps grant recipients like DPS are responsible for verifying and certifying those hours to AmeriCorps, which maintains a fund to pay the education awards.
The United States alleges that, for grant years 2015 and 2016, DPS falsely certified to AmeriCorps that a significant portion of DPS’s members had performed the service hours necessary to qualify for an AmeriCorps education award, when in fact they had not.
Specifically, the United States contends that six of DPS’s AmeriCorps programs were not eligible to receive $557,200 in direct AmeriCorps funding and that AmeriCorps dispersed $858,674.18 in education awards based on DPS’s numerous false certifications for those six programs. The government contends that DPS recruited its existing employees for those AmeriCorps programs and then improperly counted, as AmeriCorps service hours, time those members actually spent on their duties as DPS employees, and not on service. Inadequate training, supervision and record-keeping contributed to DPS’s misuse of AmeriCorps funds. A former DPS manager admitted that they intentionally “pushed the envelope” in ways that led to violations of AmeriCorps rules. DPS terminated, and accepted resignations from, employees who had managed the AmeriCorps grants and falsely certified education awards.
“Denver Public Schools used millions of federal dollars from AmeriCorps in ways that violated the basic rules of the AmeriCorps program,” said Matthew Kirsch, Attorney for the United States, Acting under Authority Conferred by 28 U.S.C. § 515. “Its misuse of those funds interfered with AmeriCorps’ core mission—to give students more educational resources.”
“By enrolling teachers as AmeriCorps members, DPS deprived its at-risk students of the additional educational support they were entitled to receive from national service members,” said AmeriCorps Inspector General Deborah Jeffrey. “Double-counting teachers’ paid work as national service hours meant that the community received no net benefit from AmeriCorps funding. We thank our partners in the U.S. Attorney’s Office for the District of Colorado for their work in protecting the integrity of AmeriCorps.”
The civil settlement in this matter resolves the United States’ claims under the False Claims Act against DPS and recovers funds improperly used by DPS. Under the terms of the settlement, DPS will immediately pay $2,123,811 to the United States, and will agree to assume responsibility for paying any outstanding education awards not yet distributed for the affected programs, which may total up to approximately $614,000. As contemplated by the False Claims Act, the amount paid by DPS includes a multiplier of the losses sustained by AmeriCorps.
The matter was handled by Assistant U.S. Attorney Jacob Licht for the District of Colorado. The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the District of Colorado and the AmeriCorps Office of Inspector General.
The claims resolved by the settlement are allegations only and DPS does not admit liability as to the government’s claims.
Video statement: https://twitter.com/USAO_CO/status/1554543060503220237?s=20&t=MqGFQwTWRby52M6vSoIsPA
Conway Man Sentenced for Importation and Possession of Illegally Taken WildlifeRead the Press Release
LITTLE ROCK-A Conway man has been sentenced for importing and possessing illegally taken wildlife. Jackson Roe, 27, was sentenced on Monday afternoon by Chief United States District Judge D. Price Marshall, Jr., to three years probation and 150 hours of community service.
In August 2015, the United States Fish and Wildlife Service received an anonymous tip about the illegal activity of a reptile hobbyist who sold and transported various reptiles into and out of the United States. Through undercover conversations with this individual, located in China, agents learned that he was shipping rare and endangered animals to an individual named Jackson Roe. Wildlife inspectors intercepted a package addressed to Roe that contained two live Chinese giant salamanders—an endangered species, in plastic jars, with wet moss. There were no holes in the box for air and no documents in the package.
Roe admitted to investigators that he had illegally purchased several live amphibians from a Chinese dealer he met on Facebook. He stated he paid $450 for each salamander, and that he knew they were protected and expected to become extinct in the next ten years. In total, Roe received seven packages shipped from Hong Kong, which included six Chinese giant salamanders, a Vietnamese leaf turtle, an Indian roofed turtle, and a Chinese big-headed turtle. Roe also informed agents that he owned a Nile crocodile, a Morelet’s crocodile, and an American alligator, all of which were seized later that day by the Arkansas Game and Fish Commission.
The case was investigated by the U.S. Fish and Wildlife Service and prosecuted by Assistant United States Attorney Edward O. Walker.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Connecticut Man Sentenced to 70 Months for Participating in a Conspiracy to Distribute FentanylRead the Press Release
CONCORD – Victor Tejada-Gonzalez, 31, of Waterbury, Connecticut was sentenced to 70 months in federal prison for conspiracy to distribute fentanyl, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, Tejada-Gonzalez operated as part of drug-distribution conspiracy out of Lawrence, Massachusetts, delivering fentanyl to co-conspirators for further distribution into New Hampshire and other places throughout New England. Specifically, on October 30, 2020, intercepted calls and surveillance captured Tejada-Gonzalez travelling to Lawrence to deliver a kilogram of fentanyl to a co-conspirator, Manuel Emilio Delacruz-Diaz. On November 19, 2020, United States Drug Enforcement agents conducted a traffic stop of the defendant in New York and he was found to be in possession of over 400 grams of fentanyl. Tejada-Gonzalez told agents that he worked with Delacruz-Diaz.
“Drug traffickers like the defendant who distribute fentanyl into New Hampshire endanger the lives and well-being of our state’s residents,” said U.S. Attorney Young. “This sentence demonstrates that those who conspire to sell fentanyl in the Granite State will face significant incarceration for their unlawful conduct.”
The case was investigated by the Drug Enforcement Administration, Homeland Security Investigations, the Massachusetts State Police, the Methuen Police Department, the Lawrence Police Department, and the Nashua Police Department. The case was prosecuted by Assistant U.S. Attorneys Seth R. Aframe and John J. Kennedy
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Cassville High School Teacher Sentenced to 30 Years for Sextortion SchemeRead the Press Release
SPRINGFIELD, Mo. – A southern Missouri high school teacher was sentenced in federal court today for a sextortion scheme in which 11 identified child victims, and dozens more child victims who have not been identified, were coerced to send him pornographic images and videos.
“This defendant, a high school teacher, pretended to be a teenager online in order to prey upon young victims across the country,” said U.S. Attorney Teresa Moore. “He victimized 11 children who have been identified, and many more who have not yet been identified, in a horrific sexploitation scheme. He enticed countless child victims to send him explicit images of themselves, then threatened to share those images with their families and friends over social media unless they continued to send him even more explicit images and videos. Such appalling criminal behavior warrants the severe penalty he received today.”
Brandon Lane McCullough, 33, of Branson, Mo., was sentenced by U.S. District Judge M. Douglas Harpool to 30 years in federal prison without parole. The court also sentenced McCullough to spend the rest of his life on supervised release following incarceration, and to pay $204,199 in restitution to one of his victims.
“Today’s sentencing is reflective of just how despicable and damaging McCullough’s crimes against children are and emphasizes HSI’s dedication to hold perpetrators accountable,” said HSI Special Agent in Charge of the Kansas City area of operations Katherine Greer. “We, alongside our law enforcement partners, are committed to the eradication of sextortion from our communities, but we need the public’s help. HSI asks parents, guardians, teachers, caregivers – anyone who interacts with a child – to be on the lookout for, and report, suspicious online behavior to the proper authorities, regardless of whether the individual is in a position of public trust, like McCullough.”
McCullough was a business teacher at Cassville High School in the Cassville R-4 School District at the time of the offense.
On Aug. 4, 2021, McCullough pleaded guilty to three counts of the sexual exploitation of a minor and two counts of coercing and enticing a minor to engage in illicit sexual activity.
The federal investigation began on Feb. 14, 2020, when a police detective in New Jersey contacted federal agents in Missouri. The mother of a 14-year-old victim had reported to the local police department that her daughter was using the Kik application to have sexually explicit conversations, and to send sexually explicit images, to McCullough.
McCullough portrayed himself as a 15-year-old boy when he began chatting via Kik with Jane Doe 1 in May 2019. McCullough threatened to send the sexually explicit images and videos to the Jane Doe 1’s family and friends unless she sent him additional images and videos. Jane Doe also engaged in a Kik conversation with another user, who was actually McCullough portraying himself as a 17-year-old boy. When Jane Doe told this false persona that she was being blackmailed, he told her to continue meeting his demands.
On May 7, 2020, law enforcement officers executed a search warrant at McCullough’s residence. They seized an external hard drive that was concealed beneath a basket under a bathroom sink in the basement. The hard drive contained dozens of Kik folders, which contained chats as well as thousands of images and videos of child pornography that were self-produced by the child victims, some of whom were younger than Jane Doe 1.
Based upon a forensic examination of the computer hard drive recovered from McCullough’s residence, investigators were able to identify 10 additional child victims of McCullough’s sextortion scheme. Dozens more child victims could not be identified. McCullough followed a similar pattern with each victim, extorting the victims to produce sexually explicit images and videos with the promise he would delete all the images once the new ones were sent. When the victims sent the videos and/or images, McCullough would start the cycle again. This activity began at least as early as Nov. 1, 2018.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by Homeland Security Investigations, the Southwest Missouri Cyber Crimes Task Force, and the Florham Park Borough, New Jersey, Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Carjacking at Suburban Chicago Gas Station Leads to Federal ChargeRead the Press Release
CHICAGO — A man has been charged in federal court with carjacking a vehicle at gunpoint last week while two children were in the car.
The alleged carjacking occurred on the afternoon of July 27, 2022, at Thorntons gas station, 14840 S. Western Ave. in Posen, Ill. The victim was entering the driver’s seat of her Kia Optima when KEWAN A. TILLMAN approached, pointed a loaded handgun at her, and demanded the key, according to a criminal complaint filed Monday in U.S. District Court in Chicago. The victim got the two children out the vehicle before Tillman stole the car and drove off, the complaint states. Tillman quickly lost control of the vehicle, got out, and ran back toward the gas station, the complaint states. Tillman unsuccessfully attempted to force entry into a parked semi-trailer before placing the handgun in a sewer and then trying to force his way into another vehicle, the complaint states. The driver of that vehicle pushed Tillman to the ground, and Posen Police officers arrested him, the complaint states.
The officers then discovered the handgun in the sewer, the complaint states. A “sear switch” was allegedly affixed to the gun, which could make it capable of firing more than one shot with a single pull of the trigger.
Tillman, 19, of Calumet City, Ill., is charged with one count of carjacking. He is currently in law enforcement custody. An initial appearance in federal court in Chicago has not yet been scheduled.
The complaint was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives. Substantial assistance was provided by the Posen Police Department. The government is represented by Assistant U.S. Attorney Caitlin Walgamuth.
The federal investigation into the carjacking remains ongoing.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The carjacking charge is punishable by up to 15 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Bridgeport Tax Return Preparer Sentenced Prison for Tax FraudRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that TORISE BAKER, 39, of Bridgeport, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to three months of imprisonment, followed by one year of supervised release, for a tax fraud offense. Judge Shea also ordered Baker to serve the first month of her supervised release in home detention, and to pay a $7,500 fine.
According to court documents and statement made in court, for the 2014 through 2016 tax years, Baker, an enrolled agent permitted to represent clients before the Internal Revenue Service, prepared approximately 3,600 federal tax returns for clients through 101 Things 2 Do, LLC, a multi-service business she operated in Bridgeport. Many of these tax returns claimed false deductions, including unreimbursed business expenses, charitable contributions and tax preparation fees.
In April 2016, Baker met with an undercover federal agent posing as a customer. The agent provided Baker with a W-2 for the 2015 tax year, told Baker that he/she did not make any gifts to charity, and offered no information about any other valid deductions. On the tax return that she prepared and filed for the agent, Baker included $5520 in deductions for charitable gifts; $2,105 for parking fees, tolls, and transportation; and $2,660 for uniforms and protective clothing. Those deductions were false.
In addition, Baker failed to file her own federal tax returns and pay taxes for the 2015 and 2016 tax years.
Judge Shea ordered Baker to pay $112,956 in restitution to the IRS.
As a result of Baker’s criminal conduct, many of her clients’ filed tax returns will need to be amended. The amount of Baker’s restitution may be reduced as her clients resolve their own tax liability with the IRS.
On March 21, 2022, Baker pleaded guilty to one count of aiding and assisting in the preparation and presentation of false and fraudulent income tax returns.
This investigation was conducted by the Internal Revenue Service, Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
Boston Area Drug Trafficker Sentenced to Six Years in Prison for Cocaine Trafficking and Firearms OffenseRead the Press Release
BOSTON – A Boston area drug trafficker was sentenced on July 28, 2022 in federal court in Boston for his role in a cocaine trafficking conspiracy.
Hassan Monroe, 38, of Quincy, was sentenced by U.S. District Court Judge Richard G. Stearns to six years in prison and four years of supervised release. On Feb. 17, 2022, Monroe pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute cocaine and cocaine base and one count of being a felon in possession of a firearm and ammunition. Monroe purchased and distributed wholesale quantities of cocaine and is estimated to have distributed over one kilogram of cocaine and 200 grams of cocaine base
In June 2020, Monroe was charged along with 23 others as part of Operation Snowfall. According to the charging documents, beginning in November 2018, law enforcement conducted an investigation into drug trafficking activities by Boston-based street gang members and associates in the Commonwealth Development in Brighton, formerly known as Fidelis Way, a multi-apartment public housing development. It is alleged that the defendants, through their drug trafficking activities, assumed control over multiple apartments, where they stored, cooked, packaged, and sold drugs. As a result, their activities caused a blight of the development and reduced the quality of life of the other residents.
The investigation also targeted large-scale drug suppliers and their associates. It is alleged that the targets continued to distribute cocaine and cocaine base throughout the COVID-19 pandemic and shutdown. Monroe is the ninth defendant to plead guilty in the large-scale conspiracy case.
Monroe was a significant drug supplier and distributor within the drug conspiracy.. Law enforcement intercepted numerous calls in which Monroe negotiated drug deals, coordinated drug meetups, and finalized drug pricing using brief, guarded and drug-coded language. Following the calls, Monroe was subsequently observed meeting with co-conspirators at agreed upon locations in a manner consistent with drug-trafficking activity. Additionally, intercepted communications between Monroe and co-conspirators also showed him plotting violence or discussing the importance of having firearms for protection.
During the investigation, a search of a “stash house” associated with Monroe recovered over 400 grams of cocaine, six firearms and multiple rounds of ammunition. Additionally, 250 grams of cocaine and a loaded firearm were recovered from Monroe’s car and a subsequent search of Monroe’s residence resulted in the recovery of cocaine and two loaded firearms.
First Assistant United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Douglas Bartlett, Acting U.S. Marshal for the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Boston Police Acting Commissioner Gregory Long made the announcement. Assistance with the investigation was provided by the Braintree, Cambridge, Canton, Randolph and Weymouth Police Departments; the Suffolk, Norfolk and Bristol County District Attorneys’ Offices; and the Suffolk, Plymouth and Norfolk County Sheriffs’ Office. Assistant U.S. Attorneys Kaitlin R. O’Donnell and Timothy E. Moran of the Organized Crime & Gang Unit prosecuted 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 remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bloomfield Man Sentenced for Selling Heroin, Possessing FirearmRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that on July 29, 2022, MICHAEL SIMPSON, 33, of Bloomfield, was sentenced by U.S. District Judge Alvin W. Thompson in Hartford to 24 months of imprisonment, followed by three years of supervised release, for distributing heroin and illegally possessing a firearm.
According to court documents and statements made in court, on July 22, 2018, Hartford Police arrested Simpson who was selling drugs from his car while parked at a car wash on Homestead Avenue in Hartford. At the time of his arrest, Simpson possessed distribution quantities of heroin, fentanyl, cocaine, crack cocaine and marijuana; a loaded Taurus .380 caliber handgun, and $2,664 in cash.
Simpson’s criminal history includes state felony convictions for firearm, robbery and drug offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On February 25, 2021, Simpson pleaded guilty to one count of possession with intent to distribute controlled substances and one count of possession of a firearm by a felon.
Simpson, who is released on bond, is required to report to prison on August 29.
This matter was investigated by the Federal Bureau of Investigation’s Violent Crime Task Force and the Hartford Police Department. The case was prosecuted by Assistant U.S. Attorney David J. Sheldon.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Berkeley County woman admits to fentanyl chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Alyssa Paige Miller, of Martinsburg, West Virginia, has admitted to a fentanyl charge, United States Attorney William Ihlenfeld announced.
Miller, 24, pleaded guilty today to one count of “Conspiracy to Possess with Intent to Distribute Fentanyl.” Miller admitted to working with another to sell fentanyl in January and February 2021 in Berkeley County.
Miller faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Timothy D. Helman is prosecuting the case on behalf of the government. The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Bank Executive Vice President Admits to Conspiracy to Defraud First NBC BankRead the Press Release
NEW ORLEANS – United States Attorney Duane A. Evans announced that ROBERT B. CALLOWAY, age 62, of Metairie, Louisiana, pleaded guilty today to conspiracy to defraud First NBC Bank, the New Orleans-based bank that failed in April 2017. CALLOWAY served as Executive Vice President of the bank.
According to court documents, CALLOWAY and other bank officers, including Bank President Ashton Ryan Jr. and Chief Credit Officer William Burnell, conspired together to conceal the financial condition of bank borrower Gary R. Gibbs from the First NBC Bank Board of Directors, auditors, and examiners. They falsely stated in loan documents that Gibbs was able to pay his loans with cash generated by his businesses, and they hid from the First NBC Bank Board of Directors, auditors, and examiners that Gibbs was only making his existing loan payments by getting new loans from First NBC Bank. Ryan, Burnell, and CALLOWAY also concealed the fact that they made loans to Gibbs to keep him and his companies off of month-end reports that went to the Board, auditors, and examiners. These month-end reports listed borrowers who were not paying their loans or whose accounts were overdrawn. By keeping Gibbs and his entities off of those reports, Ryan, Burnell, and CALLOWAY were able to conceal their scheme and thereby allowing them to continue lending to Gibbs despite his inability to pay his loans. CALLOWAY also completed loan review forms that were sent to external auditors in which CALLOWAY omitted material information about Gibbs and his inability to pay his loans.
CALLOWAY pleaded guilty to a superseding bill of information charging him with one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Sections 1344 and 371. The maximum penalty that may be imposed at sentencing for this charge is up to five years in prison; a fine of up to $250,000.00 or the greater of twice the gain to CALLOWAY or twice the loss to any victim; and up to three years of supervised release. U.S. District Judge Eldon E. Fallon set CALLOWAY’s sentencing for March 16, 2023.
CALLOWAY had been previously charged in this case with codefendants Ashton Ryan, Jr., William J. Burnell, First NBC Bank Senior Vice President Fred V. Beebe, and bank borrower Frank J. Adolph. Ryan, Burnell, Beebe, and Adolph are scheduled for trial before Judge Fallon on January 3, 2023. Gibbs pleaded guilty in August 2020 to a bill of information charging him with conspiracy to commit bank fraud.
“Today’s guilty plea demonstrates that individuals like Mr. Robert B. Calloway who engage in fraudulent schemes that impact the security of financial institutions will be held accountable,” said Douglas A. Williams, Jr., Special Agent in Charge, FBI New Orleans. “We thank our partners from the United States Attorney’s Office, Eastern District of Louisiana; Federal Deposit Insurance Corporation, Office of Inspector General; and the Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau, Office of Inspector General for their strong partnerships in protecting the integrity of the American banking system.”
“Today’s guilty plea demonstrates that the FDIC OIG and our law enforcement partners continue to investigate and hold accountable criminals who defraud our insured financial institutions and cause harm to our nation’s banking industry,” said Anand Ramlall, Special Agent in Charge, Dallas Region, Office of Inspector General for the Federal Deposit Insurance Corporation.
“Today’s plea sends a clear message that bank executives who commit fraud and deliberately deceive regulators will be brought to justice for their actions. I commend our agent and their federal law enforcement partners for their hard work and persistence, which ultimately led to this outcome,” said Stephen Donnelly, Acting Special Agent in Charge, Eastern Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection.
This case is being investigated by the Federal Bureau of Investigation; the Federal Deposit Insurance Corporation, Office of Inspector General; and the Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau, Office of Inspector General. Assistant U.S. Attorneys Matthew R. Payne, Nicholas D. Moses, J. Ryan McLaren, and Rachal Cassagne are in charge of the prosecution.
Baltimore Man Pleads Guilty to a Federal Drug Charge and to Illegal Possession of a Firearm in a School ZoneRead the Press Release
Baltimore, Maryland – Vashawn Watkins, age 21, of Baltimore, Maryland, pleaded guilty today to federal charges of possession with intent to distribute controlled substances and to possession of a firearm in a school zone.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Division; Baltimore City Sheriff John W. Anderson; Commissioner Michael Harrison of the Baltimore Police Department; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
According to his guilty plea, from October 2020 through March 1, 2021, Watkins was engaged in drug trafficking involving large amounts of fentanyl and other controlled substances. Watkins and his associates operated a stash house in the unit block of Clovelly Street in Pikesville, Maryland, where they processed fentanyl and other drugs, mixed the drugs with cutting agents, and packaged the drugs for re-sale. Watkins and his associates then drove the packaged drug products to drug shops operated by their drug trafficking organization, specifically drug shops along Stricker Street, School Street, and Gilmor Street in Baltimore. Watkins further admitted that he sometimes oversaw the drug trafficking operations at the Stricker Street drug shop.
As detailed in his plea agreement, on February 11, 2021, while Watkins was overseeing operations at the Stricker Street drug shop, law enforcement officers saw Watkins place a firearm inside a vehicle parked in the 1500 block of North Stricker Street. Law enforcement obtained a search warrant for the vehicle and recovered a .45-caliber firearm along with Watkins’ State-issued identification card. Watkins admitted that he knowingly possessed this firearm within 1,000 feet of a public elementary school.
On March 1, 2021, Watkins was seen leaving a residence in the 1500 block of Stricker Street and taking possession of approximately one kilogram of fentanyl from an associate who had brought the drugs from the Pikesville stash house. Watkins took the fentanyl into the residence. Law enforcement obtained and executed a search warrant for the residence, recovering the drugs, which were in close proximity to Watkins. Law enforcement also recovered two 9mm handguns from the residence. A search warrant was subsequently executed at the Pikesville stash house and law enforcement recovered 6.8 kilograms of fentanyl, along with cutting agents and other drug paraphernalia.
Watkins and the government have agreed that, if the Court accepts the plea agreement, Watkins will be sentenced to between eight and ten years in federal prison. U.S. District Judge Catherine C. Blake has scheduled sentencing for November 9, 2022 at 2:15 p.m.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN, an evidence-based program proven to be effective at reducing violent crime, is the centerpiece of the Department of Justice’s violent crime reduction efforts. 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.
United States Attorney Erek L. Barron commended the DEA, the Baltimore City Sheriff’s Office, the Baltimore Police Department, and the Baltimore County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Jason D. Medinger, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Armed Drug Dealer from Monte Visa Sentenced to 16 Years in Federal PrisonRead the Press Release
DURANGO – The United States Attorney's Office for the District of Colorado annoucnes Karl Kloeppel of Monte Vista, Colorado, was sentenced to 192 months (16 years) in federal prison, followed by four years of supervised release for possession with the intent to distribute methamphetamine and possessing a firearm during a drug trafficking crime. United States District Court Judge Robert Blackburn handed down the sentence on August 2, 2022, following Kloeppel’s guilty plea on April 11, 2022.
According to court documents and facts present at sentencing, Kloeppel was a convicted felon and established drug dealer operating in the San Luis Valley in Monte Vista, Colorado. On October 16, 2020, Kloeppel was under surveillance by federal agents and local law enforcement on a pending state warrant. Kloeppel left his residence in a BMW with approximately 210 grams of pure methamphetamine and a .45 caliber handgun. While a Colorado State Patrol Trooper pulled Kloeppel over, he handed the drugs and gun to the passenger in the BMW and ordered him to “put it in his pants.” Law enforcement later executed a later search warrant for Kloeppel’s home and found video of him holding the gun and drugs before entering the car. A search warrant for Kloeppel’s phone found many text messages about buying and selling drugs. After federal indictment, Kloeppel asked his girlfriend on a recorded phone call from jail to “throw herself under the bus” by claiming possession of the drugs and going to prison instead.
“Mr. Kloeppel was caught red handed with thousands of doses of methamphetamine and a .45 caliber handgun, but tried to deflect the blame on others,” said U.S. Attorney Cole Finegan. “Let me be clear: if you deal drugs and possess illegal weapons in the San Luis Valley, you will be caught and spend years of your life in prison.”
“DEA’s mission is clear: to make our communities safer and healthier. Today I can say, without question, we are safer with this dangerous drug trafficker off our streets,” said DEA Denver Field Division Special Agent in Charge Brian Besser. “Our communities need to be aware that methamphetamine remains a significant threat and a major priority of DEA’s Denver Field Division.”
"Our message to traffickers is simple - don't bring this to our communities," stated Col. Matthew C. Packard, chief of the Colorado State Patrol. "Drug dealers don't care about you, your loved ones or even their partners and girlfriends. While these criminals worry about profit, the Patrol will continue to work with our local and federal partners to save as many lives possible from addiction and overdose."
"The outcome of this investigation and the subsequent sentence handed down was the result of a thorough investigation by the Monte Vista Police Department with assistance from the Bureau of Alcohol, Tobacco and Firearms (ATF) agents and the US Attorney's Office in Durango. Without the cooperation and assistance from our federal partners, this defendant would have continued to poison and endanger our community through his criminal activity. We will continue to use every resource and avenue available to hold criminals who endanger our community accountable to their actions," said Monte Vista Police Chief George A. Dingfelder.
This investigation was conducted jointly by federal and state partners, including the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Monte Vista Police Department, and Colorado State Patrol. Assistant United States Attorneys Jeffrey Graves and Josh Player handled the prosecution of the case.
Case number: 21-cr-00035-REB-JMC.
Arlington Man Sentenced to 10 Years in Prison for Possession of Child PornographyRead the Press Release
BOSTON – An Arlington man was sentenced on July 28, 2022 in federal court in Boston for possession of child pornography.
Mason Lister, 27, was sentenced by U.S. District Court Judge Allison D. Burroughs to 10 years in prison and five years of supervised release. On Dec. 16, 2021, Lister pleaded guilty to one count of possession of child pornography.
“My office has a responsibility to ensure the safety of our communities, especially that of our most vulnerable – children. Mr. Lister is a recidivist offender, a three-time convicted felon, who will now thankfully remain out of our communities and away from our children for the next decade,” said United States Attorney Rachael S. Rollins. “With the full support of our state, local and tribal law enforcement partners, we remain committed to protecting our children and prosecuting those who seek to exploit them.”
“Lister is a repeat offender, having already been convicted twice for child pornography related offenses. This ten year sentence will deny Lister the opportunity to further victimize innocent children through his online conduct and demonstrates our resolve to hold repeat offenders responsible to the full extent of the law,” said Matthew Millhollin, Special Agent in Charge for Homeland Security Investigations in New England.
This case arose from a notice to law enforcement that a social media account belonging to Lister had been used to distribute child pornography. On July 23, 2020, a search of Lister’s residence resulted in the seizure of a tablet device containing at least 85 files of child pornography. The mix of files were both images and videos and depicted victims as young as toddler age. Lister was subsequently arrested on Aug. 14, 2020, and has remained in federal custody since. Lister has two previous state convictions for child pornography offenses.
U.S. Attorney Rollins and HSI SAC Millhollin made the announcement today. Assistance in the investigation was provided by the Arlington Police Department. Assistant U.S. Attorney David G. Tobin of Rollins’ Major Crimes Unit prosecuted the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Aransas Pass man sentenced for trafficking methRead the Press Release
CORPUS CHRISTI, Texas – A 37-year-old local man has been handed a significant federal prison sentence following his conviction for possession with intent to distribute 11.88 grams of meth, announced U.S. Attorney Jennifer B. Lowery.
Bryson Hughes pled guilty Jan. 19.
Today, U.S. District Judge Drew B. Tipton sentenced Hughes to serve 60 months in federal prison to be immediately followed by four years of supervised release. At the hearing, Hughes expressed his remorse for the offense he committed and requested that his sentence include drug treatment and testing so that he can continue his rehabilitation.
On April 22, 2021, Hughes was pulled over by authorities for traffic violations after his car was seen leaving the residence of a known meth dealer. Officers asked Hughes to exit the vehicle, and saw what Hughes admitted was a marijuana cigarette on the floorboard.
During a search of the vehicle, officers found a lock box on the driver’s side floorboard which contained meth. Meth was also found between two layers of socks on Hughes’ left foot.
The total weight of the narcotics was 11.88 grams.
Hughes has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with the assistance of the Aransas Pass Police Department. Assistant U.S. Attorney Amanda L. Gould prosecuted the case.
1 August 2022
West Homestead Man Sentenced to Prison for Purchasing Firearms for OthersRead the Press Release
PITTSBURGH, PA -- A resident of West Homestead, Pennsylvania, has been sentenced in federal court to 18 months’ imprisonment and one year of supervised release at each of his eleven counts of convictions for violating federal firearm laws, United States Attorney Cindy K. Chung announced today.
United States District Judge William S. Stickman, IV imposed the sentence on Dennis Renfro, age 30.
According to information presented to the court, Renfro purchased 11 handguns at the direction of others and misrepresented that he was the actual buyer when purchasing the firearms from federal firearms licensees. During the investigation, Renfro admitted to authorities that he purchased one firearm for someone he knew was prohibited from possessing firearms and to purchasing another firearm that was later used in a shooting. Federal agents separately determined that Renfro purchased another firearm for a minor.
Prior to imposing the sentence, Judge Stickman denied the defendant’s request for a downward departure and a downward variance. Judge Stickman also stated, “Gun violence is a plague on our community . . . you purchased eleven firearms . . . the Court is most troubled by the fact that you made this decision time and time again.”
Assistant United States Attorney Brendan J. McKenna prosecuted this case on behalf of the government.
United States Attorney Chung commended the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Renfro.
Waterloo Woman who Illegally Purchased and Possessed Firearms Sentenced to Federal PrisonRead the Press Release
A Waterloo woman who purchased and possessed firearms while being a user of marijuana was sentenced July 29, 2022, to more than a year in federal prison.
Allyssa Stovall, age 23, from Waterloo, Iowa, received the prison term after a February 1, 2022 jury verdict finding her guilty of one count of being a drug user in possession of firearms.
Information disclosed at sentencing showed that, in July 2020, Stovall purchased two firearms. Stovall knowingly and intentionally lied about her drug use to purchase the firearms. Less than a month after purchasing the firearms, Stovall’s firearms were used in two separate shootings in Waterloo. Law enforcement seized the firearms from Stovall in July 2021, and, in September 2021, Stovall attempted to flee from law enforcement officers that were attempting to arrest her on the federal charge. She was eventually taken into custody.
Stovall was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Stovall was sentenced to 12 months’ and 1 day imprisonment. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Stovall is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Lisa Williams and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Waterloo Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-02060.
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Vigo County Methamphetamine Dealer Sentenced to 12 Years in Federal Prison for Drug TraffickingRead the Press Release
TERRE HAUTE – Adam Moore, 39, of Terre Haute, Indiana, was sentenced to twelve years in federal prison after pleading guilty to possession with intent to distribute methamphetamine.
According to court documents, on July 28, 2021, Vigo County Drug Task Force officers conducted a search of a residence where Moore was present. Officers found Moore in possession of over 100 grams of methamphetamine. Further investigation led officers to a camper belonging to Moore, where officers seized over 200 grams of methamphetamine and $10,690 in U.S. currency. Moore had previously been convicted of multiple felony offenses, including a 2011 conviction for dealing in methamphetamine, in Vigo County.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Terre Haute Police Department Chief Shawn Keen made the announcement.
The Terre Haute Police Department investigated the case. The Drug Enforcement Administration provided valuable assistance. The sentence was imposed by U.S. District Judge Jane Magnus-Stinson. As part of the sentence, Judge Magnus-Stinson ordered that Moore be supervised by the U.S. Probation Office for five years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Abhishek S. Kambli who prosecuted this case.
United States Attorney’s Office Releases Second Quarter Immigration Enforcement Statistics for 2022Read the Press Release
PHOENIX, Ariz. – Today, the United States Attorney’s Office announced its immigration enforcement statistics for April 2022 to June 2022. These cases are prosecuted in partnership with the Tucson and Yuma Sectors of the Customs and Border Protection’s U.S. Border Patrol, along with Homeland Security Investigations and assistance from other federal, state, and county agencies. In the three-month period ending June 30, 2022, the United States brought criminal charges in Arizona against 1,044 individuals who illegally entered or re-entered the United States. In its ongoing effort to deter unlawful immigration, the United States also filed 288 felony cases against individuals responsible for smuggling undocumented noncitizens to and within the District of Arizona.
Reducing migrant smuggling and mitigating the risk to communities impacted by these offenses continues to be a priority for the Office and its law enforcement partners. Some of these prosecutions are directed against leaders and coordinators of non-U.S. citizen smuggling organizations. Other prosecutions are aimed at deterring young adult drivers, often recruited over social media platforms, from engaging in this dangerous activity. Prosecutions against young drivers include three cases brought against juvenile smugglers during this time-period.
These statistics represent United States Attorney's Office prosecutions only. The numbers do not include individuals apprehended by immigration enforcement officials and subjected solely to administrative process.
RELEASE NUMBER: 2022-129_2022 Second Quarter Immigration Enforcement Statistics
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Two men plead guilty to federal charges in retaliatory drug murder in St. LouisRead the Press Release
ST. LOUIS – Two men from St. Louis County on Monday admitted their involvement in a retaliatory murder in 2020.
Cevone Weeden, 26, pleaded guilty Monday in front of U.S. District Judge Ronnie L. White to two felony counts: conspiracy to distribute and possession with intent to distribute controlled substances possession with intent to distribute controlled substances and possession of a firearm in furtherance of a drug trafficking crime that resulted in murder.
Herschell Perkins, 37, pleaded guilty to the firearm charge.
As part of his plea, Weeden admitted firing at least 12 shots at Joel Phillips, 22, in the parking lot of a McDonald’s at 1420 Hampton Avenue in St. Louis on August 20, 2022.
Two days before the murder, Phillips had arranged to buy fentanyl from Weeden, his source of supply of the drug, but instead robbed Weeden and then blocked Weeden’s phone number.
Weeden enlisted another person to call Phillips and arrange to buy fentanyl, a ploy designed to lure Phillips out into the open so Weeden could retaliate.
After Phillips agreed to meet the buyer at the McDonald’s, Perkins drove Weeden to the area, watched Phillips, and then picked Weeden up after the murder.
Phillips was found dead in the driver’s seat of his vehicle, along with $1,814 in cash, a gun, a phone and 156 capsules containing a mixture of drugs including the fentanyl Phillips stole from Weeden.
As part of the plea agreement, prosecutors have agreed to recommend no more than 25 years in prison for Weeden. He is scheduled to be sentenced Nov. 1.
Both prosecutors and Perkins’ lawyer have agreed to recommend 15 years in prison for Perkins, who is scheduled to be sentenced Nov. 2.
The case was investigated by the St. Louis Metropolitan Police Department and the Drug Enforcement Administration.
Two Orange County Men Sentenced to Federal Prison for Conning Investors Out of $1.9 Million Through Cryptocurrency OfferingRead the Press Release
SANTA ANA, California – Two Orange County men each were sentenced today to federal prison terms for conning more than 2,000 investors into purchasing a cryptocurrency that purportedly provided exclusive access to a profitable trading program, and then using most of the $1.9 million raised to line their own pockets.
Jeremy David McAlpine, 26, of Fountain Valley, was sentenced to 36 months in federal prison by United States District Judge Cormac J. Carney. In a separate hearing today, Judge Carney sentenced Zachary Michael Matar, 29, of Huntington Beach, to 30 months in federal prison. Judge Carney scheduled a September 26 restitution hearing in this case.
McAlpine and Matar each pleaded guilty in August 2021 to one count of securities fraud.
In 2017, McAlpine and Matar founded Dropil Inc., a Belize-based company operating out of Fountain Valley. Dropil provided and managed investments in digital assets including a cryptocurrency called DROPs that McAlpine and Matar developed. McAlpine and Matar were also primarily responsible for the development of Dropil’s digital asset trading program, an automated trading bot called “Dex,” which could be used exclusively with DROPs.
McAlpine and Matar induced investors to purchase DROPs by making false claims about DROPs, the functionality and profitability of Dex, and the number of investors and volume of investment in DROPs that had purportedly already been achieved and that purportedly enhanced – through the operation of supply and demand – the value of DROPs. Dex was said to provide an “expertly managed portfolio balancing algorithm [that] manages risk,” according to information published on Dropil’s website. The DROP tokens were said to “ensure privacy while also offering added value and exclusivity.” Dropil further promised that Dex’s trading would generate profits that would be distributed as additional DROP tokens every 15 days.
Beginning in late 2017, McAlpine and Matar began an unregistered offer and sale of DROPS on Dropil’s website. In January 2018, the defendants launched an initial coin offering (ICO) for the sale of DROPs, again through Dropil’s website, which continued through March 2017. Neither McAlpine, Matar nor Dropil was registered with the Securities and Exchange Commission (SEC) as a broker or dealer.
To induce investors to purchase DROPs, McAlpine and Matar made a series of false statements to investors in a “White Paper” published on Dropil’s website and on its Twitter account, promoting the cryptocurrency’s supposed success. Among other false statements, the White Paper asserted that trading with Dex would produce average annual returns of between 24% and 63% depending on the “risk profile” selected by the investor.
In response to investigative subpoenas from the SEC, the defendants manufactured fake Dex profitability reports, giving the false appearance that Dex was operational and profitable. Defendants also fabricated an investor spreadsheet for the SEC that purported to show that Dropil had successfully raised $54 million from 34,000 investors both foreign and domestic. In fact, the ICO raised under $2 million from fewer than 2,500 investors. McAlpine also provided false sworn testimony to the SEC about the amount of money raised in the ICO, as well as about Dex and its purportedly profitable trading activity.
In total, the defendants obtained approximately $1,896,657 from 2,472 investors through the sale of approximately 629 million DROPs. McAlpine and Matar used the invested money as promised to fund disbursements to themselves and their associates.
In sentencing memoranda, prosecutors argued that the defendants’ “offenses were serious and troubling: They caused significant financial harm to an extremely large number of victims and entailed efforts to derail law enforcement’s attempts to root out and address wrongdoing.”
As part of the settlement of a separate civil case brought by the SEC, Dropil Inc., McAlpine and Matar in July 2021 agreed to permanent injunctions barring further fraudulent conduct and prohibiting them from directly or indirectly participating in the offer, purchase, or sale of digital securities.
The FBI investigated this matter.
Assistant United States Attorney Ranee A. Katzenstein, Chief of the Major Frauds Section, prosecuted this case.
Third Defendant Pleads Guilty to Multimillion Dollar Tax Fraud Scheme Involving Professional Athletes and a PPP Loan Fraud SchemeRead the Press Release
A California man pleaded guilty today to conspiring with others in schemes to defraud the IRS and the Paycheck Protection Program (PPP), a federal loans initiative designed to help businesses pay their employees and meet expenses during the COVID-19 pandemic.
According to court documents and statements made in court, Thanh Ngoc Rudin, 58, was a principal of Mana Tax Services, a tax preparation business in the Los Angeles area. Rudin engaged in a conspiracy to commit two sets of fraud schemes using Mana Tax.
First, from June of 2019 through July 2021, Thanh Rudin conspired with his brother, Quin Ngoc Rudin, as well as Seir Havana and others, to prepare and file with the IRS a series of false and fraudulent income tax returns on behalf of at least nine professional athletes. The false tax returns reported fabricated business and personal losses to generate refunds the athletes were not entitled to receive. The co-conspirators told the professional athletes that Mana Tax also could amend prior year tax returns to correct purported errors made by the athletes’ previous accountants to get additional refunds they were not entitled to receive. Mana Tax then charged the athletes a fee of 30% of the resulting refund.
Thanh Rudin and his co-conspirators also used Mana Tax to apply for PPP loans on behalf of a number of small businesses, shell entities controlled by the co-conspirators themselves with few or no employees, and business entities controlled by others. To obtain the PPP loans to which the applicants were not entitled, the co-conspirators grossly inflated the number of employees and monthly payroll costs claimed on the PPP loan applications and submitted fabricated tax returns in support of the applications. In exchange for processing the applications, Mana Tax charged a fee of 30% of the value of the loan received.
During the investigation, the government seized more than $11.8 million from bank accounts containing PPP loan fraud proceeds controlled by the conspirators. In addition, Havana surrendered cashier’s checks worth approximately $5.6 million, representing a portion of the fees charged to professional athletes for the preparation of their false tax returns, and a portion of the fees charged for obtaining fraudulent PPP loans. The two schemes resulted in total losses of more than $25 million.
Thanh Rudin is scheduled to be sentenced on November 9. He faces a maximum penalty of five years in prison for the conspiracy charge and 20 years in prison for wire fraud. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
On May 13, Quin Rudin pleaded guilty to conspiracy to defraud the United States, conspiracy to commit wire fraud, and wire fraud. His sentencing hearing is scheduled for September 14. On July 20, Havana pleaded guilty to conspiracy to defraud the United States, conspiracy to commit wire fraud, and money laundering. His sentencing hearing is scheduled for Nov. 9.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Jessica D. Aber for the Eastern District of Virginia, Special Agent in Charge Wayne A. Jacobs of the FBI Washington Field Office Criminal Division, and Special Agent in Charge Darrell J. Waldon of the Washington, D.C. Field Office, IRS-Criminal Investigation made the announcement.
The U.S. Attorney’s Office for the Central District of California provided assistance with the investigation.
Assistant Chief David Zisserson of the Tax Division and Assistant U.S. Attorneys Kimberly M. Shartar and Kimberly R. Pedersen are prosecuting the case.
Tampa Man Sentenced to over 5 Years for Conspiracy to Commit Access Device Fraud and Aggravated Identity Theft Related to COVID Unemployment Insurance BenefitsRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday today sentenced Devaris McClain (30, Tampa) to five years and one month in federal prison for conspiracy to commit access device fraud and aggravated identity theft. As part of his sentence, the Court also ordered McClain to pay $92,346.54 to the U.S. Department of Labor and various financial institutions. McClain had pleaded guilty on January 18, 2022.
According to court documents, from approximately January 2015 through August 2016, McClain and his co-conspirators made counterfeit credit and debit cards by obtaining prepaid gift cards, embossing them with their names and other persons’ stolen personal identifying information (PII), and obliterating the magnetic strips on the backs of the cards to ensure employees at retail establishments would have to hand-key in the stolen account numbers embossed on the fronts of the cards. McClain and his co-conspirators then used the cards to purchase items, including gift cards, from retail establishments to convert the cards to cash.
McClain also participated in a scheme to fraudulently obtain unemployment insurance (UI) benefits from various state workforce agencies. These UI benefits were transferred to bank accounts or loaded onto debit cards issued in the names of victims whose PII had been stolen. In particular, McClain used a fraudulently obtained debit card in the name of a victim to withdraw money using ATMs. The U.S. Department of Labor determined that McClain obtained $86,804 in UI benefits to which he was not entitled.
In March 2020, the President signed the Families First Coronavirus Response Act and the Coronavirus Aid, Relief, and Economic Security Act, which expanded states’ ability to provide UI for many workers impacted by COVID-19, including for workers who were not ordinarily eligible for benefits.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
This case was investigated by the Federal Bureau of Investigation, the U.S. Department of Labor – Office of Inspector General, and the Tampa Police Department. It was prosecuted by Assistant United States Attorneys John Cannizzaro and Gregory D. Pizzo.
Statement from U.S. Attorney Cole Finegan on Verdict in USA v. Lawrence Rudolph and Lori MillironRead the Press Release
"Today, a jury in federal court found Lawrence Rudolph guilty of murdering his wife, Bianca Rudolph, and of defrauding multiple life insurance companies. They also found Lori Milliron guilty of being an accessory after the fact to the murder, obstruction of justice, and two counts of perjury before the grand jury.
We are thankful for the jury’s diligence looking at all the evidence in this case. Bianca Rudolph deserved justice. This case was an exceptional example of the entire U.S. Attorney’s Office pulling together with our law enforcement partners to uncover the truth and seek justice for a victim who had no other voice.
I also want to specifically thank the efforts of the FBI, which worked to obtain justice by literally going around the world to interview witnesses and collect evidence. Their efforts were exemplary, and we are grateful to them.
The mission of the Department of Justice is just that -- to do justice. We are proud to perform that service for the people of Colorado, as well as the victims in this matter.
We can only hope this verdict brings Bianca’s family some amount of peace." - U.S. Attorney Cole Finegan
St. Johnsbury Business Owner Sentenced to Imprisonment for Tax EvasionRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Blakely H. Jenkins, Sr., 61, of St. Johnsbury, Vermont, was sentenced today to one year and one day of imprisonment for evading taxes and committing identity theft while running his St. Johnsbury-based painting business, Blake Jenkins Painting, Inc. United States District Judge William K. Sessions III also ordered Jenkins to serve a two-year term of supervised release.
In February 2022, Jenkins pleaded guilty to two counts of evasion of employment taxes and one count of identity theft. According to court records and proceedings, Jenkins evaded employment taxes from mid-2015 to mid-2020 by paying his employees “off the books” wages either in cash or in checks falsely denoted as being for non-wage purposes. Jenkins took a number of steps to execute this plan, including falsifying records, creating bogus documents, and signing another person’s name without permission. Every employment tax return that Jenkins’ company submitted to the Internal Revenue Service during this period contained false information that significantly underreported the amounts that Jenkins actually paid his employees. In total, Jenkins’ company failed to report over $1.3 million in employee wages, resulting in over $340,000 in unpaid federal taxes.
“Investigating and prosecuting white collar offenses is a top priority of the U.S. Attorney’s Office,” said United States Attorney Nikolas P. Kerest. “We will continue to work closely with the Criminal Division of the Internal Revenue Service and our other excellent law enforcement partners to hold accountable those who line their own pockets at the expense of others, whether by avoiding their tax obligations, collecting benefits to which they are not entitled, or defrauding victim individuals or companies.”
“The IRS Criminal Investigation Division takes these violations of law very seriously,” said Joleen D. Simpson, Special Agent in Charge, IRS Criminal Investigation, Boston Field Office. “By not reporting all wages to the IRS, hardworking employees may not have access to all of the Social Security, Medicare and Unemployment Compensation they are entitled to receive. Employers have an obligation to their employees to not only accurately report all wages, but to pay over all tax withholdings. Investigating employment tax fraud is a priority for the special agents of IRS Criminal Investigation as we strive to protect the trust that individuals put in their employers to make sure their future benefits are secure.”
The United States was represented in this matter by Assistant U.S. Attorney Nicole Cate. Jody Frey, Esq. represented the defendant.
Springfield Man, Woman Plead Guilty to Child Exploitation EnterpriseRead the Press Release
SPRINGFIELD, Mo. – A Springfield man and a Springfield woman have pleaded guilty in federal court to engaging in a child exploitation enterprise that victimized at least three children.
Kevin Grant McMillan, 35, pleaded guilty today before U.S. Chief Magistrate Judge David P. Rush to engaging in a child exploitation enterprise from Jan. 1, 2017, to Nov. 6, 2019.
By pleading guilty today, McMillan admitted that he engaged in a series of felony violations, including the sexual exploitation of a minor and receiving and distributing child pornography. Those felony violations, constituting three or more separate incidents and involving more than one minor victim, comprise a child exploitation enterprise.
Co-defendant Christine Marie Rossiter, 36, of Springfield, pleaded guilty on Thursday, June 28, to the same charge.
According to today’s plea agreement, the federal investigation began in May 2019 when the National Center for Missing and Exploited Children notified law enforcement that McMillan had uploaded three files of child pornography through his Gmail account. The Springfield Police Department was also investigating McMillan in a separate case involving an 8-year-old victim, identified in court documents as Jane Doe 2. Springfield investigators identified additional Google accounts that contained child pornography.
On Nov. 6, 2019, law enforcement officers executed a search warrant at McMillan’s residence, where they contacted a second, 15-year-old victim, identified in court documents as Jane Doe 1, and a 17-year-old minor. Officers seized five laptops, two hard drives, an Apple iPad, a cell phone, and seven USB/micro SD cards. A forensic analyst found images of child pornography depicting Jane Doe 1, Jane Doe 2, and a third victim, a toddler identified in court documents as Jane Doe 3. There were a total of 27,542 pornographic images and videos of subjects whose age is difficult to determine and child erotica. There was a total of 682 images and videos of bestiality pornography. There were 111 videos and images of child exploitive animated pornography located on the devices.
Investigators found additional child pornography in McMillan’s Dropbox account.
Investigators found SMS and MMS messaging between McMillan and Rossiter from Jan. 1, 2018, to April 2, 2019. During the messaging, they exchanged bestiality pornography, incest-related pornography, and bondage pornography. In a Facebook conversation between March 2019 and May 2019, they extensively discussed engaging in sexual contact with other individuals, including children. In April 2019, they discussed McMillan wanting to have sexual contact with a 13-year-old minor male, identified in court documents as John Doe.
Investigators also found conversations between McMillan and another co-defendant in which McMillan said he wanted to drug and sexually assault Jane Doe 1 (who was 13 years old at the time). The co-defendant said she would be interested in assisting him in drugging and raping children and adult women. McMillan also sent this co-defendant sexually explicit images of Jane Doe 1 and Jane Doe 3. Throughout the conversations they had with each other from January 2017 until April 2019, they exchanged incest-related pornography, bondage pornography, bestiality pornography, child pornography, and child erotica. They also had conversations about having sexual contact with children and about having children together and impregnating them.
Under federal statutes, McMillan and Rossiter each are subject to a mandatory minimum sentence of 20 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by Homeland Security Investigations, the Southwest Missouri Cyber Crimes Task Force, and the Springfield, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Readout of Election Threats Task Force Briefing with Election Officials and WorkersRead the Press Release
Assistant Attorney General Kenneth A. Polite, Jr. convened a virtual discussion today with a bipartisan group of approximately 750 election officials and workers to provide an update on the work of the Justice Department’s Election Threats Task Force.
Assistant Attorney General Polite thanked the election community for continuing to prioritize this national public safety issue, for engaging directly with the task force over the past year, and stressed the importance that those lines of communication stay open ahead of election season. He also reminded the election community of the individual points of contact they have in every FBI field office in the country.
Following Assistant Attorney General Polite’s remarks, the task force shared intelligence, data, and analysis stemming from their first year of work. This included:
- The task force has reviewed over 1,000 contacts reported as hostile or harassing by the election community.
- Approximately 11% of those contacts met the threshold for a federal criminal investigation. The remaining reported contacts did not provide a predication for a federal criminal investigation. While many of the contacts were often hostile, harassing, and abusive towards election officials, they did not include a threat of unlawful violence.
- In investigations where the source of a reported contact was identified, in 50% of the matters the source contacted the victim on multiple occasions. These investigations accordingly encompassed multiple contacts. The number of individual investigations is less than 5% of the total number of reported contacts.
- The task force has charged four federal cases and joined another case that was charged prior to the establishment of the task force. There have also been multiple state prosecutions to date. The task force anticipates additional prosecutions in the near future.
- Election officials in states with close elections and postelection contests were more likely to receive threats. 58% of the total of potentially criminal threats were in states that underwent 2020 post-election lawsuits, recounts, and audits, such as Arizona, Georgia, Colorado, Michigan, Pennsylvania, Nevada, and Wisconsin.
The task force also briefed the election community on available funds for enhanced security for election offices, and the availability of additional resources from both academic and non-governmental organizations.
Joining Assistant Attorney General Polite in the briefing today was Principal Deputy Chief John Keller of the Justice Department’s Public Integrity Section, FBI Assistant Director Luis Quesada, and FBI Public Corruption and Civil Rights Section Chief Joseph Rothrock
Portsmouth Man Pleads Guilty to Unlawful Possession with the Intent to Distribute Large Quantities of "Ice" Methamphetamine and FentanylRead the Press Release
CONCORD -Robert Corson, 33, formerly of Portsmouth, pleaded guilty in federal court to one count of unlawful possession with intent to distribute 40 grams and more of fentanyl and 5 grams and more of “ice” methamphetamine, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, on July 28, 2021, the FBI arrested Corson on federal drug trafficking charges outside of Corson’s storage unit at a storage facility in Portsmouth. When he was arrested, Corson was wearing a fanny pack around his waist that contained multiple baggies of fentanyl packaged for sale. The FBI subsequently searched Corson’s storage unit and seized approximately 294 grams of “ice” methamphetamine, 231 grams of fentanyl and other items associated with drug trafficking.
Corson is scheduled to be sentenced on November 9, 2022.
This matter was investigated by the FBI NH Major Offender Task Force, the New Hampshire State Police, and the Portsmouth, New Hampshire Police Department. The case is being prosecuted by Assistant U.S. Attorney Jennifer Cole Davis.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Pelahatchie Woman Sentenced to Statutory Maximum of 10 Years in Murder-For-Hire PlotRead the Press Release
Jackson, Miss. – A Pelahatchie woman was sentenced to the statutory maximum of 120 months in prison for using interstate commerce facilities in the commission of a murder-for-hire, announced United States Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation’s Jackson Field Office.
Jessica Leeann Sledge, 40, was sentenced by United States District Judge Carlton W. Reeves today. The sentence included a fine of $1,000 and a term of three years of supervised release following her release from prison.
Sledge previously pled guilty and admitted that between September of 2021 and November 1, 2021, she used the internet, her cell phone and the “Whatsapp” application to arrange a murder-for-hire. Unknown to Sledge, the “hitman” she hired via the internet to commit the murder was in fact an FBI Special Agent. On November 1, 2021, Sledge met in Brandon, Mississippi, with the individual she thought was the assassin she had hired in order to provide an additional payment and to provide additional information concerning her intended victim. The intended victim was ultimately unharmed. Following her arrest, Sledge waived her rights and admitted to her role in the murder-for-hire plot.
The case was investigated by the Federal Bureau of Investigation. Deputy Criminal Chief Dave Fulcher prosecuted the case.
Ocala Man Arrested for Lying on Federal Firearm Form at Gun DealerRead the Press Release
Ocala, Florida –United States Attorney Roger B. Handberg announces the arrest of Ralph Fontil, Jr. (24, Ocala) on a two-count indictment charging him with making a materially false statement in connection with the purchase of firearms and causing a Federal Firearm Licensee (FFL) to maintain false information in its official records. If convicted of both charges, Fontil faces up to 15 years in federal prison.
According to the court records, between April 3, 2020, and September 24, 2021, Fontil purchased 22 handguns from multiple gun dealers in the Middle District of Florida, including 17 Glock pistols. While purchasing the firearms, Fontil certified on each ATF Form 4473 (Firearm Transaction Record) that he was the “actual transferee/buyer” of the firearms. One of the gun boxes for a Glock pistol Fontil purchased on April 3, 2020, was found at the home of a convicted felon on August 24, 2021. In recorded jail conversations, Fontil admitted to buying the firearm for the convicted felon, who is prohibited from possessing firearms or ammunition under federal law.
An indictment is merely an allegation that a defendant has committed a federal criminal offense. Every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the Marion County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Hannah Nowalk.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Mercer County Man Pleads Guilty to Federal Gun CrimeRead the Press Release
BLUEFIELD, W.Va. – A Mercer County man pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, Bobby Glen Trent, 37, of Princeton, admitted to pointing a Diamondback Arms, Model DB9, 9mm pistol at a man on Highland Avenue in Princeton on September 24, 2019. Trent had gotten into an argument with the man while walking by the man’s house. During the argument, Trent approached the man, pointed the firearm at him, and threatened to shoot him. The man called 911. Trent was eventually arrested by law enforcement officers. The officers recovered the firearm in the bushes near the man’s house. Trent admitted the firearm had a defaced serial number.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Trent knew he was prohibited from possessing a firearm because of his felony convictions for grand larceny and conspiracy in Cabell County Circuit Court on March 4, 2011.
Trent is scheduled to be sentenced on November 15, 2022 and faces a maximum penalty of 10 years in prison, three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Princeton Police Department.
Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Nowles Heinrich is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:21-cr-138.
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Martinsburg woman admits to cocaine chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Jennifer Hardy, of Martinsburg, West Virginia, has admitted to a drug charge, United States Attorney William Ihlenfeld announced.
Hardy, 32, pleaded guilty today to one count of “Aiding and Abetting Distribution of Cocaine Base.” Hardy admitting to working with another to sell cocaine base, also known as “crack,” in February 2021 in Berkeley County.
Hardy faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Man admits role in fatal 2019 St. Louis attempted carjackingRead the Press Release
ST. LOUIS – A man from St. Louis on Monday admitted involvement in a fatal 2019 attempted carjacking that was caught on tape, and could now face between 23 and 25 years in federal prison.
On June 3, 2019 at 6:03 a.m., Jalen Exavier Simms and another man saw Jabari Clark sleeping in the driver’s seat of his 2012 Dodge Ram truck in front of his home in the 3000 block of Rauschenbach Avenue in St. Louis. Simms admitted in his guilty plea Monday that he approached Clark on the driver’s side while the other man approached the passenger side of the vehicle. Both pointed handguns at Clark.
Simms began trying to remove Clark from the truck. After a struggle lasting about 30 seconds, Simms’ companion fired several shots, hitting Clark multiple times. Both men then fled.
Clark staggered out of his truck and collapsed on his front lawn, where he died, despite efforts by family members to administer aid.
Investigators obtained surveillance video of the shooting from a nearby home. Simms also dropped a phone charging cord that had his DNA on it.
Investigators are still seeking the identity of the shooter. Anyone with information is asked to call St. Louis Metropolitan Police Department’s Homicide Division at 314-444-5371 or report information anonymously via St. Louis Regional Crimestoppers at 866-371-TIPS.
Simms, 27, pleaded guilty Monday, the day his trial was supposed to start, in front of U.S. District Court Judge Henry E. Autrey to one count of attempted carjacking resulting in death.
As part of the plea, both sides have agreed to request a prison sentence of between 23 and 25 years. Simms is scheduled to be sentenced Nov. 2.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Louis Metropolitan Police Department.
Man Sentenced to 21 Months in Prison for Stock Fraud SchemesRead the Press Release
Assistant U. S. Attorney Aaron P. Arnzen (619) 546-8384
NEWS RELEASE SUMMARY – August 1, 2022
SAN DIEGO – Ongkaruck Sripetch was sentenced in federal court to 21 months in prison for participating in illegal securities fraud schemes.
Sripetch, a resident of Los Angeles who used the aliases “King Richards” and “Shelby Saint-Claire,” pleaded guilty in February. He admitted that he failed to comply with securities regulations requiring that stock offerings be registered with the Securities and Exchange Commission. He also admitted that his relevant conduct included conspiring with his co-defendants to pump-and-dump the stock of two companies: Ottawa, Canada-based VMS Rehab Systems, which claimed to sell “quality of life orthopedic seat cushions for the home healthcare sector,” and Argus Worldwide, a company headquartered in Cheyenne, Wyoming, which purportedly focused on “digital/internet products and services, smart consumer electronic products and health industries.” In reality, the companies did not live up to the defendants’ claims.
Through these pump-and-dump schemes, Sripetch and his co-conspirators artificially inflated the price of these stocks and then sold the stocks to unwitting investors through the public securities markets.
In handing down the sentence, U.S. District Judge Marilyn L. Huff noted that “real people lost real money” while the “defendant was living a lavish lifestyle” with his fraud proceeds.
“Pump-and-dump schemes victimize investors who are sold a bill of goods,” said U.S. Attorney Randy Grossman. “But these schemes also erode the integrity of the United States’ securities markets. This sentence reflects the seriousness of these crimes.” Grossman thanked the prosecution team and the FBI for their excellent work on this case.
“Sripetch learned the hard way that crime does not pay, and today's sentencing should send a clear message to anyone thinking they can get away with defrauding innocent investors for their personal gain,” said Special Agent in Charge Stacey Moy of the FBI’s San Diego Field Office. “The defendant conspired with others to commit securities fraud schemes with total disregard for the consequences. Financial crimes have long been at the forefront of the FBI’s efforts, and we will continue to meticulously investigate any and all fraudsters in pursuit of our mission of protecting the American people.”
The United States appreciates the assistance provided on this matter by the Securities and Exchange Commission.
DEFENDANT Case Number 20cr0160-H
Ongkaruk Sripetch Age: 47 Los Angeles, CA
SUMMARY OF CHARGES
Violation of SEC Offering Registration Requirements – Title 15, U.S.C., Section 77e(a)(1)
AGENCY
Federal Bureau of Investigation
Lowell Woman Arrested for Trafficking FirearmsRead the Press Release
BOSTON – A Lowell woman was arrested on July 29, 2022 for allegedly trafficking firearms without a license.
Leticia Alcantara, 25, was charged with one count of dealing in firearms without a license. Following an initial appearance on July 29, 2022 before U.S. District Court Magistrate Judge Jennifer C. Boal, Alcantara was detained pending a detention hearing scheduled for Aug. 3, 2022.
“Illegal firearms trafficking stokes violent crime trends and poses a very real threat to the safety our communities,” said United States Attorney Rachael S. Rollins. “We believe Ms. Alcantara contributed to this violent threat through regular sales offers for numerous firearms, including an AR-15 rifle. She held no license and was ready to sell firearms that could have gone to prohibited individuals. This is dangerous and could have resulted in significant violence and harm. We will continue to work with our law enforcement partners to identify and prosecute those engaged in illegal firearms trafficking.”
According to the charging document, law enforcement opened an investigation in October 2021 into firearms trafficking in Massachusetts and identified Alcantara as an alleged firearms dealer. On Feb. 15, 2022, Alcantara allegedly offered to sell a 9mm handgun to two individuals who, unbeknownst to her, were cooperating with law enforcement. It is alleged that, on March 15, 2022, Alcantara met with the cooperating witnesses at a prearranged meeting location in a parking lot in Falmouth to conduct the transaction. There, Alcantara was observed entering the vehicle occupied by the cooperating witnesses and allegedly produced a black trash bag from her purse that contained the firearm.
It is further alleged that, on multiple occasions in July 2022, Alcantara communicated with one of the cooperating witnesses regarding additional firearms she was offering for sale, including sending photos of: a 9mm handgun on July 2, 2022; a small holster-grip revolver and one large black pistol on July 7, 2022; and two handguns on July 9, 2022. At the direction of law enforcement, the cooperating witness agreed to purchase the last two handguns Alcantara offered for sale. On July 12, 2022, Alcantara met with the cooperating witnesses during a controlled purchase in Plymouth. There, Alcantara was observed entering the vehicle and allegedly produced one .45 caliber pistol and one 9mm pistol from a dark colored bag.
On July 12, 2022, Alcantara sent additional photos of two firearms for sale which, at the direction of law enforcement, the cooperating witness agreed to purchase. On July 19, 2022, Alcantara arrived at the same prearranged meeting location in Plymouth where she allegedly entered the cooperating witnesses’ vehicle and provided two 9mm pistols. Following the transaction, Alcantara allegedly continued communicating with the cooperating witness about additional firearms for sale, including a handgun and an AR-15 rifle.
The charge of dealing in firearms without a license provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Rollins and James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement today. Valuable assistance in the investigation was provided by the Plymouth and Falmouth Police Departments. Assistant U.S. Attorney Charles Dell’Anno of Rollins’ Major Crime Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Justice Department Secures Settlement in Race Discrimination and Retaliation Suit Against SEPTARead the Press Release
The Department of Justice announced today that it has reached a settlement with the Southeastern Pennsylvania Transportation Authority (SEPTA), a regional public transportation authority based in Philadelphia. The settlement resolves the department’s complaint alleging that three officers of the SEPTA Police Department were subjected to a hostile work environment by their supervisor and experienced retaliation when they opposed the harassment, in violation of Title VII of the Civil Rights Act of 1964 (Title VII). Title VII is a federal statute that prohibits employment discrimination on the basis of race, color, national origin, sex and religion, and prohibits retaliation against employees for opposing employment practices that are discriminatory under Title VII.
“All transit police officers deserve to go to work each day without fear of harassment and retaliation from their supervisors and colleagues,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This settlement sends a clear message that the department stands ready to protect employees who are subject to racial harassment and a hostile work environment, particularly in law enforcement agencies dedicated to serving the public.”
The department’s complaint, filed today in the U.S. District Court for the Eastern District of Pennsylvania, alleges that SEPTA subjected the officers, who belonged to a special investigative unit, to racial and religious harassment and retaliated against them because they opposed the harassment. According to the complaint, the officers’ supervisor repeatedly harassed them with racial slurs and derogatory comments about Black people and Muslims, threatened the officers and physically assaulted them. The complaint further alleges that the Police Chief retaliated against the officers for opposing the harassment. The officers’ supervisor and the Police Chief are no longer employed by SEPTA. Under the terms of the consent decree, if approved by the court, SEPTA will implement anti-discrimination and retaliation policies and provide trainings for its employees. SEPTA will also pay the officers a total of $496,000 in compensatory damages.
The United States’ complaint is based on charges of discrimination filed with the Equal Employment Opportunity Commission’s Philadelphia District Office, which investigated the charges and found reasonable cause that SEPTA violated Title VII. After unsuccessful conciliation efforts, the EEOC referred the charges to the Justice Department.
The full and fair enforcement of Title VII is a top priority of the Justice Department’s Employment Litigation Section of the Civil Rights Division. Additional information about the Civil Rights Division and the jurisdiction of the Employment Litigation Section is available on its websites at www.justice.gov/crt and www.justice.gov/crt/employment-litigation-section.
Huntington Man Sentenced to Prison for Role in Multi-State Drug RingRead the Press Release
HUNTINGTON, W.Va. – A Huntington man was sentenced to four years and four months in prison, to be followed by three years of supervised release, for his role in a drug trafficking organization (DTO) that distributed large amounts of fentanyl, methamphetamine and other illegal drugs in the Huntington area.
According to court documents and statements made in court, Reginald Jerome Hairston, 44, admitted that he conspired with other individuals to distribute methamphetamine and fentanyl between May and July 2021. Hairston acquired quantities of the controlled substances from co-defendant Christopher Leon Vest for purchase by other individuals. Hairston and Vest each pleaded guilty to conspiracy to distribute methamphetamine, fentanyl, and cocaine. Vest was sentenced to 12 years and six months in prison on May 16, 2022.
The case is the result of a long-term investigation that disrupted the DTO and its distribution of fentanyl, methamphetamine, oxycodone, heroin, cocaine and crack. All 18 defendants have pleaded guilty.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Southern West Virginia TOC-West Task Force. The Southern West Virginia TOC-West Task Force consists of officers with the Cabell County Sheriff’s Department, the Hurricane Police Department, and the Marshall University Police Department, with support from the West Virginia State Police, the Drug Enforcement Administration (DEA) and the Violent Crime and Drug Task Force West. The Ohio Highway Patrol, the Kentucky State Police, and the FBI and DEA in Columbus, Ohio also assisted in the investigation.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorneys Joseph F. Adams and Courtney L. Cremeans prosecuted the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-109.
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Guatemalan National Pleads Guilty to Entering the US After a Prior RemovalRead the Press Release
BANGOR, Maine: A Guatemalan national pleaded guilty in federal court today to entering the United States after a prior removal, U.S. Attorney Darcie N. McElwee announced.
According to court records, in June 2022, the Hancock County Sheriff’s Office detained seven individuals following a traffic stop in Dedham. Records revealed that none of the subjects had legal status in the U.S., and all seven admitted crossing from Mexico on foot. Upon arrival at the Calais Border Patrol Station, an immigration database search confirmed that the seven individuals were illegally present in the U.S. and further revealed that Cruz Isabel Mayen-Dubon, 35, a citizen and national of Guatemala, had previously been removed from the U.S. in June 2007, May 2010, August 2012, October 2012 and January 2016.
Mayen-Dubon faces up to two years in prison and a $250,000 fine. He also faces not more than one year of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Border Patrol and the Hancock County Sheriff’s Office investigated the case.
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Fort Kipp woman admits manslaughter charge in vehicle deathRead the Press Release
GREAT FALLS — A Fort Kipp woman today admitted to a manslaughter charge for striking and killing a man with her vehicle on the Fort Peck Indian Reservation, U.S. Attorney Jesse Laslovich said.
JoAnna Sayetsitty, 35, pleaded guilty to a superseding information charging her with involuntary manslaughter. Sayetsitty faces a maximum of eight years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge John Johnston presided. Sentencing will be set sometime later this fall before Chief U.S. District Judge Brian M. Morris. The court will determine a sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The government alleged in court documents that on Aug. 25, 2019, law enforcement responded to a call of a deceased individual who had been found in a wheat field south of Fort Kipp, on the Fort Peck Indian Reservation. The individual, identified as John Doe, was eventually identified after law enforcement posted a description of his clothing on social media. Officers interviewed Sayetsitty, who had been in a relationship with John Doe, at her residence. Officers discovered front-end damage to Sayetsitty’s Suburban SUV and found a piece of material matching John Doe’s clothing hanging from the vehicle.
The government further alleged that Sayetsitty told officers that on the evening she last saw John Doe, they had been driving around the area, drinking alcohol and listening to music. The two began arguing, John Doe got out of the car and Sayetsitty drove away from where he was standing in the field. Sayetsitty told officers multiple times that she was the only driver of the vehicle. Officers impounded the vehicle and, pursuant to a search warrant, found evidence from the undercarriage that matched John Doe’s DNA. An autopsy determined that John Doe died of blunt force injuries typical of a pedestrian being struck by a vehicle. Sayetsitty admitted in court to driving the vehicle in a reckless manner, and striking John Doe, causing his death.
Assistant U.S. Attorney Wendy A. Johnson is prosecuting the case, which was investigated by the FBI, Fort Peck Tribes Department of Law and Justice, and the Roosevelt County Sheriff’s Office.
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Former Owner of T-Mobile Retail Store in Eagle Rock Found Guilty of Committing $25 Million Scheme to Illegally Unlock CellphonesRead the Press Release
LOS ANGELES – A former owner of a T-Mobile retail store in Eagle Rock has been found guilty by a jury of 14 federal criminal charges for his $25 million scheme to enrich himself by stealing T-Mobile employee credentials and illegally accessing the company’s internal computer systems to illicitly “unlock” and “unblock” cellphones, the Justice Department announced today.
Argishti Khudaverdyan, 44, of Burbank, was found guilty of one count of conspiracy to commit wire fraud, three counts of wire fraud, two counts of accessing a computer to defraud and obtain value, one count of intentionally accessing a computer without authorization to obtain information, one count of conspiracy to commit money laundering, five counts of money laundering, and one count of aggravated identity theft.
The jury returned the guilty verdict Friday evening in United States District Court.
According to evidence presented at his four-day trial, Khudaverdyan ran a multi-year scheme that illegally unlocked and unblocked cellphones, which generated approximately $25 million in criminal proceeds. During this time, most cellphone companies – including T-Mobile – “locked” their customers’ phones so they could be used only on the company’s network until the customers’ phone and service contracts had been fulfilled. If customers wanted to switch to a different carrier, their phones had to be “unlocked.” Carriers also “blocked” cellphones to protect consumers in the case of lost or stolen cellphones.
From August 2014 to June 2019, Khudaverdyan fraudulently unlocked and unblocked cellphones on T-Mobile’s network, as well as the networks of Sprint, AT&T and other carriers. Removing the unlock allowed the phones to be sold on the black market and enabled T-Mobile customers to stop using T-Mobile’s services and thereby deprive T-Mobile of revenue generated from customers’ service contracts and equipment installment plans.
Khudaverdyan advertised his fraudulent unlocking services through brokers, email solicitations, and websites such as unlocks247.com. He falsely claimed the fraudulent unlocks that he provided were “official” T-Mobile unlocks.
From January 2017 through June 2017, Khudaverdyan and a former business partner were also co-owners of Top Tier Solutions Inc., a T-Mobile store in Eagle Rock Plaza. However, after T-Mobile terminated Khudaverdyan’s contract in June 2017 based on his suspicious computer behavior and association with unauthorized unlocking of cellphones, Khudaverdyan continued his fraud.
To gain unauthorized access to T-Mobile’s protected internal computers, Khudaverdyan obtained T-Mobile employees’ credentials through various dishonest means, including sending phishing emails that appeared to be legitimate T-Mobile correspondence, and socially engineering the T-Mobile IT Help Desk. Khudaverdyan used the fraudulent emails to trick T-Mobile employees to log in with their employee credentials so he could harvest the employees’ information and fraudulently unlock the phones.
Working with others in overseas call centers, Khudaverdyan also received T‑Mobile employee credentials which he then used to access T-Mobile systems to target higher-level employees by harvesting those employees’ personal identifying information and calling the T-Mobile IT Help Desk to reset the employees’ company passwords, giving him unauthorized access to the T-Mobile systems which allowed him to unlock and unblock cellphones.
All told, Khudaverdyan and others compromised and stole more than 50 different T-Mobile employees’ credentials from employees across the United States, and they unlocked and unblocked hundreds of thousands of cellphones during the years of the scheme.
Khudaverdyan obtained more than $25 million for these criminal activities. He used these illegal proceeds to pay for, among other things, real estate in Burbank and Northridge.
United States District Judge Stephen V. Wilson scheduled an October 17 sentencing hearing, at which time Khudaverdyan will face statutory maximum sentences of 20 years in federal prison for each wire fraud count, 20 years in federal prison for conspiracy to commit money laundering, 10 years in federal prison for each money laundering count, five years in federal prison for each count of intentionally accessing a computer without authorization to obtain information, five years in federal prison for the count of accessing a computer to defraud and obtain value, and a mandatory two years in federal prison for aggravated identity theft.
Alen Gharehbagloo, 43, of La Cañada Flintridge, a co-defendant and a former co-owner of Top Tier Solutions Inc., pleaded guilty on July 5 to three felonies: conspiracy to commit wire fraud, accessing a protected computer with intent to defraud, and conspiracy to commit money laundering. His sentencing hearing is scheduled for December 5.
The United States Secret Service Cyber Fraud Task Force (CFTF) in Los Angeles and IRS Criminal Investigation’s Western Area Cyber Crime Unit investigated this matter. The CFTF includes representatives of the United States Secret Service, the FBI, the Los Angeles Police Department, the Los Angeles County District Attorney’s Office, and the California Highway Patrol.
Assistant United States Attorneys Lisa E. Feldman and Andrew M. Roach of the Cyber and Intellectual Property Crimes Section are prosecuting this case. Assistant United States Attorney Jonathan S. Galatzan, Chief of the Asset Forfeiture Section, is handling the asset forfeiture portion of this case.
Former Nurse Sentenced to 18 Months in Federal Prison for Tampering with Morphine Medications at Moses Lake ClinicRead the Press Release
Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Esther Rae Tuller, age 41, of Moses Lake, Washington, was sentenced today in federal court in Spokane for tampering with morphine medication while working as a registered nurse. Chief United States District Judge Stanley A. Bastian sentenced Tuller to 18 months in federal prison, followed by three years of supervised release.
According to court documents, between August 2019 and April 2020, Tuller was a Washington-licensed registered nurse employed at the Confluence Health Clinic in Moses Lake. Her position as a nurse provided her with access to medications, including opioid narcotics such as morphine, an opioid derivative commonly prescribed by hospitals and health care facilities to relieve pain.
While working at Confluence Health, Tuller used syringes to remove morphine from at least 17 vials, and then ingested that morphine as part of her own opioid addiction. She then replaced the morphine with a saline solution that was essentially salt dissolved in water, and attempted to glue the caps back onto the vials to make them appear intact. Before Tuller was apprehended by law enforcement, at least one Confluence Health patient who was prescribed morphine had to be rushed to the emergency room; that patient continued to be in excruciating pain after receiving only saline from what was supposed to be morphine vials. In sentencing Ms. Tuller, Chief Judge Bastian noted that Tuller’s conduct did not simply involve stealing medications, but putting patients at risk.
United States Attorney Vanessa R. Waldref emphasized that fostering safe and strong communities in Eastern Washington means addressing the opioid epidemic in all of its forms. “While Ms. Tuller’s addiction to opioids is both tragic and far too common, her decision to take advantage of her access to medical-grade morphine was an egregious breach of trust. It is deeply troubling that she compounded her misconduct by secretly replacing that morphine with saline in vials that she knew would be distributed to patients, recklessly endangering patients who rely on the integrity of our health care system every day.” United States Attorney Waldref continued: “I want to especially commend the stellar investigative work by the Drug Enforcement Administration’s Diversion Group and the Food and Drug Administration’s Office of Criminal Investigations. We will continue to work with our law enforcement partners to hold accountable those who abuse their position of trust and endanger patients.”
“Our DEA Diversion Investigators are another tool we are utilizing to address the opioid epidemic we are now facing,” said Jacob D. Galvan, Acting Special Agent in Charge, DEA Seattle Field Division. “Their actions and investigations helped remove an individual from a position of trust and stop any further harm from happening to vulnerable individuals.”
“The FDA oversees the U.S. drug supply to ensure that it is safe and effective, and those who knowingly tamper with medicines put patients’ health at risk,” said Acting Special Agent in Charge Robert M. Iwanicki, FDA Office of Criminal Investigations Los Angeles Field Office. “We will continue to protect the public health and bring to justice health care professionals who take advantage of their unique position and compromise their patients’ health and comfort by tampering with needed drugs.”
This investigation was conducted by the DEA’s Diversion Group in the Seattle Field Office, and the FDA’s Office of Criminal Investigations, Seattle Domicile. Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene prosecuted this matter on behalf of the United States.
Former Louisiana State Senator and Chair of a State Political Party Pleads Guilty for Role in Nearly Seven-Year Scheme to Defraud Campaign Entity, Donors, and Political Party OrganizationRead the Press Release
NEW ORLEANS – The United States Attorney’s Office announced that former Louisiana State Senator and Chair of State Political Party “A”, KAREN CARTER PETERSON, age 52, from New Orleans, Louisiana, pleaded guilty as charged today before United States District Judge Sarah S. Vance to a one-count bill of information charging her with wire fraud, in violation of Title 18, United States Code, Sections 1343 and 2.
According to court documents, PETERSON served as a Louisiana State Senator for the 5th District from about 2010 until about April 8, 2022, and as the Chair of State Political Party A between about 2012 and 2020. As a Louisiana State Senator, PETERSON formed and maintained a campaign organization, the “Karen Carter Peterson Campaign Fund (“KCPCF”),” to solicit and raise campaign funds from individual and corporate donors. The campaign funds were solicited based upon the representations and premise that the funds would be used to facilitate PETERSON’S reelection for the position of State Senator. In the course of soliciting campaign donations, PETERSON failed to disclose to potential contributors that she had already used prior contributions for her personal benefit.
In furtherance of her scheme, PETERSON diverted, and caused her friends and associates to divert, campaign funds from the KCPCF to PETERSON’S personal use for the purpose of obtaining and using money and property from contributors to the KCPCF by means of materially false and fraudulent representations and promises for nearly seven (7) years. She did so by writing checks drawn on the KCPCF account to her friends and associates and directing them to cash the checks at financial institutions in the New Orleans, Louisiana area and then to give PETERSON the proceeds. Occasionally she allowed the individuals cashing the checks to keep a small portion of the proceeds. PETERSON used the funds to pay for personal expenses unrelated to her campaign or the holding of public office, including to pay gambling-related expenses. Further, PETERSON caused the public filing of false and misleading campaign finance reports that mischaracterized expenditures as being for legitimate purposes related to her campaign or the holding of public office, but were, in fact, unrelated to such purposes and, instead, were diverted to PETERSON’S personal use. In total, between about November 25, 2013, and March 5, 2020, PETERSON fraudulently employed the scheme to divert and convert to her personal use approximately $94,250 that had been donated by contributors to her campaign.
Additionally, in her role as Chair of State Political Party A, PETERSON oversaw the strategic decision-making, operations, outreach, and direction of Party A and supervised its permanent staff, including individuals who had signatory authority of State Political Party A’s financial accounts. PETERSON exploited her position to choose entities (“ Companies”) operated by her associates, purportedly to provide campaign-related services to State Political Party A, and to determine the amount that Party A would pay each of the Companies. PETERSON represented to State Political Party A that the payments were for a campaign purpose. In reality, the Companies provided either no or minimal services for State Political Party A. PETERSON then willfully and wrongfully directed the Companies to remit a portion of the funds paid to them by State Political Party A to PETERSON through either checks drawn on the accounts of the Companies or in cash. In total, between about October 7, 2019, and April 4, 2020, PETERSON received approximately $53,106.93 of funds from State Political Party A through this fraudulent scheme.
PETERSON faces a maximum term of twenty (20) years in prison, a fine of up to $250,000.00, up to three (3) years of supervised release after imprisonment, and a mandatory $100 special assessment fee. Sentencing before Judge Vance has been scheduled for December 7, 2022.
The United States Attorney’s Office stated, “Since public trust is essential for a healthy, functioning government, it is likewise essential that any breaches of this trust be vigorously investigated and prosecuted. Our office will continue to assure the public of our unwavering commitment to identify and prosecute anyone who engages in public corruption.”
“Candidates for public office must be held to the highest standards of conduct, especially when they seek funds from the public for their campaigns. Today’s guilty plea sends a clear message to elected officials like former Louisiana State Senator Karen Carter Peterson that those who misuse campaign contributions and steal money from a political party organization for personal gain, will be held accountable,” said FBI New Orleans Special Agent in Charge Douglas A. Williams, Jr. “We thank our partners at the United States Attorney’s Office Eastern District of Louisiana, Internal Revenue Service – Criminal Investigation, and Metropolitan Crime Commission for their strong partnerships in helping the FBI disrupt public corruption in Louisiana."
The United States Attorney’s Office praised the work of the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation, and Forensic Accountant Josephine M. Beninati, CPA, CFE in this matter and thanks the Metropolitan Crime Commission for its assistance. Assistant United States Attorneys Jordan Ginsberg, Chief of the Public Corruption Unit, and Jonathan L. Shih are in charge of the prosecution.
Former Illinois Elementary School Teacher Sentenced to 50 Years in Federal Prison for Sexually Exploiting an Indiana ChildRead the Press Release
INDIANAPOLIS – Pedro Ibarra, 48, of Elk Grove Village, Illinois, was sentenced today to fifty years in federal prison for sexual exploitation of a child and attempted sexual exploitation of a child.
According to court documents, on June 21, 2021, Ibarra engaged in a Google Duo online chat with a boy who lived in Indiana. The child was under 13 years old at the time. During that chat, Ibarra persuaded the child to engage in sexually explicit conduct, which Ibarra recorded on his cell phone. On June 22, 2021, Ibarra drove from Illinois to Hancock County, Indiana, where he picked the victim up and drove the boy to a local hotel. At the hotel, Ibarra engaged in sexually explicit conduct with the child, which Ibarra recorded on his cell phone.
During the investigation, Ibarra’s cell phone was examined by the Indiana State Police. Officers were able to lawfully access information stored on the device. In addition to images of the Indiana child, an examiner discovered multiple recordings of Ibarra engaged in sexually explicit conduct with another boy. This child was later identified as a boy who lived in Illinois and was younger than fifteen years old.
Ibarra was a Chicago Public School teacher when he committed these crimes and taught elementary school students for more than three years.
“The heinous sexual abuse of these children is every parent’s nightmare. These tragic crimes reiterate that those who seek to sexually exploit our children online and in person are often the people parents and children should be able to trust,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “The significant sentence imposed today shows that federal, state, and local law enforcement will work together tirelessly to identify child sexual predators and send them to prison where they belong.”
“This sentence illustrates our strong commitment to protect our children from those who engage in this type of activity and exploit them,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “Because of the teamwork of the FBI and our law enforcement partners this perpetrator will no longer be able to prey on the most vulnerable in our community.”
“The Hancock County Sheriff’s Department worked to have Ibarra in custody within hours of the child’s report,” said Detective David Wood. “Communities place a tremendous amount of trust in teachers, and when someone in such a position commits crimes of sexual exploitation, it is a reminder of how vigilant we need to be in looking out for our children.”
“Indiana State Police investigators work diligently every day, all across Indiana, and in close collaboration with its law enforcement partners, to help bring to justice those who seek to perpetuate the victimization of children”, said Indiana State Police Superintendent Douglas G. Carter.
“Those who perpetuate crimes against children in Hancock County and throughout the State must know that we will do everything within our power to protect our kids and hold offenders accountable,” said Aimee Herring, Hancock County Chief Deputy Prosecutor. “Special thanks to our federal partners and the Hancock County Sheriff’s Department for all of their work on this investigation and prosecution which ultimately resulted in Ibarra’s conviction.”
The Federal Bureau of Investigation, the Hancock County Sheriff’s Department, and the Indiana State Police investigated the case. The Hancock County Prosecutors Office provided valuable assistance. As part of Ibarra’s sentence, Judge James Patrick Hanlon ordered that he be supervised by the U.S. Probation Office for life following his release from prison and ordered Ibarra to pay $30,000 each to both minor victims. Ibarra must also register as sex offender wherever he lives, works, or goes to school, as required by law.
U.S. Attorney Myers thanked Assistant U.S. Attorney Kristina M. Korobov who prosecuted this case.
In fiscal year 2019, the most recent year for which data is available, the Southern District of Indiana was second out of the 94 federal districts in the country for the number of child sexual exploitation cases prosecuted.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
Former Greene County Commissioner of Revenue Sentenced on Federal Witness Tampering ChargeRead the Press Release
CHARLOTESVILLE, Va. – The former Commissioner of Revenue for Greene County, Virginia was sentenced today to three months in federal prison and a fine of $7,500 for attempted witnessed tampering in connection to his son’s drug distribution charges.
Larry Vernon Snow, 73, of Ruckersville, Va., pleaded guilty in May 2022 to one count of attempted witness tampering related to his efforts to harass and dissuade a confidential informant from cooperating in a federal investigation of both himself and his son, as well as to prevent the confidential informant from aiding law enforcement in other investigations. Bryant Snow, 33, pleaded guilty in May to one count of distribution of heroin. He was sentenced last week to approximately 23 months in prison.
“This public official abused his access to Virginians’ personal information, and he did so to retaliate against a witness who helped law enforcement catch his son distributing narcotics in the same community the defendant was supposed to serve. The Department of Justice will hold accountable public officials who exploit their positions of trust and anyone who seeks to harass, intimidate, or retaliate against federal witnesses," United States Attorney Christopher R. Kavanaugh said today.
“The residents of Greene County deserve to have faith and confidence in the public servants elected to office. Mr. Snow disregarded his oath and duties as a public-servant and began a personal vendetta against the person who cooperated in a law enforcement matter, and willingly involved the community in his campaign to hinder an investigation,” said Stanley Meador, Special Agent in Charge of the FBI’s Richmond Division. “The FBI is pleased with today’s sentencing and encourages anyone who suspects witness tampering may be occurring to report it to authorities immediately.”
According to court documents, Larry Snow used his access as the former Commissioner of Revenue to a Virginia Department of Motor Vehicles (DMV) database as part of an effort to retaliate against and tamper with the confidential informant, Person A, after Person A aided law enforcement in controlled purchases of methamphetamine and heroin from Bryant Snow.
Specifically, while incarcerated in Central Virginia Regional Jail (CVRJ), Bryant Snow received documents and other evidence regarding his state case. This information included paperwork that showed license plate numbers belonging to Person A and Person A’s mother. In a series of recorded jail calls following his plea and sentencing to the state methamphetamine charge, the Snows agreed that Larry Snow would use his DMV access to print out “paperwork to corroborate” Person A’s confidential informant status so that Bryant would have “proof” in jail to show other inmates.
In the recorded jail calls, the Snows discussed their animosity towards confidential informants generally and Person A specifically. For example, Larry Snow stated to Bryant in one call that “[Person A]’s gonna get his, I promise you that.” Larry Snow then stated they should let “everybody know all about it” and “who he is, what he’s doing,” in reference to Person A’s cooperation. After Larry Snow mailed the DMV paperwork to Bryant at CVRJ and Bryant told Larry that he “showed it to a lot of people in here,” Larry Snow expressed approval that they were letting drug traffickers know who Person A “is and what he’s doing” so that his cooperation would “come back and bite him in the ass.”
Later, after receiving a May 2019 notice that he was under federal investigation involving his conduct toward Person A, Larry Snow drafted and caused approximately 12,000 leaflets to be mailed in October 2019 to the residents of Greene County in an attempt to further harass Person A and hinder, prevent, and dissuade Person A from causing or aiding in any federal prosecutions of the Snows or others. In recorded jail calls following the distribution of the leaflets, Bryant Snow and Larry Snow discussed the known “drug dealer” in the leaflet and confirmed it was Person A. Larry Snow concluded the call by stating, “it’s out there now” because information about Person A’s cooperation with law enforcement had been disseminated in the county via the leaflets.
In connection with entering his guilty plea earlier this year, Larry Snow resigned from his elected position as the Commissioner of Revenue in Greene County, a position he has held since 1987 and had been re-elected to while under federal indictment. As part of the plea agreement and a condition of his imposed sentence, Larry Snow agreed not to run for elected office during his sentence or period of court supervision.
At sentencing, Judge Norman K. Moon explained what factors were significant in his decision to impose a prison sentence. Judge Moon found that Larry Snow had abused his position of trust, endangered a government informant, and continued to do so even after receiving notice of a pending federal investigation. Judge Moon remarked that Larry Snow had shown “disdain for law enforcement and those that work with law enforcement.” Judge Moon also rejected the defendant’s request to serve his sentence on home confinement and found that “incarceration is necessary” to reflect the seriousness of the misconduct and “promote respect for the law.”
The investigation of the case was conducted by the Federal Bureau of Investigation and the Virginia Department of Motor Vehicles.
Assistant United States Attorney Katie Burroughs Medearis and Ryan S. Faulconer, Senior Counsel with the Computer Crime and Intellectual Property Section of the Department of Justice’s Criminal Division, are prosecuting the case for the United States. Former Assistant United States Attorney Kathryn Rumsey and Assistant United States Attorney S. Cagle Juhan assisted in the prosecution of the case.
Former Deuel Vocational Institution Inmate Pleads Guilty to Participation in $1 Million Unemployment Insurance Benefits Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Kenneth Ray Hawkins, 47, formerly an inmate at the Deuel Vocational Institution (DVI), a California state prison in Tracy, pleaded guilty today to conspiring to commit mail fraud and aggravated identity theft in a scheme to defraud California and the United States, including the California Employment Development Department (EDD), by the submission of fraudulent unemployment insurance claims, U.S. Attorney Phillip A. Talbert announced.
On May 13, 2021, a federal grand jury returned an indictment, charging Hawkins; Jacqueline Marie Marquez, 35, of Barstow and Las Vegas; Alyssa Marie Jones, 34, of Barstow and Las Vegas; and Ebony Chanel Jones, 21, of Barstow, with conspiracy to commit mail fraud and mail fraud. On July 25, 2022, Hawkins was additionally charged with conspiracy to commit mail fraud and aggravated identity theft.
According to court documents, between June 2020 and January 2021, the four defendants conspired to execute and executed a scheme to defraud by filing fraudulent unemployment insurance claims with EDD, seeking Pandemic Unemployment Assistance benefits under the CARES Act. During the conspiracy, Hawkins, an inmate at DVI, collected personally identifiable information, including names and Social Security numbers, of California prison inmates and other individuals and used the identities and an unauthorized cellphone to submit dozens of the fraudulent claims from his jail cell. The claims represented, among other things, that the claimants had recently lost employment from businesses or were unable to find employment due to the COVID-19 pandemic. These claims were fraudulent because the inmates were incarcerated, not recently employed, and ineligible for unemployment insurance benefits.
In the applications, Hawkins requested that the benefits be mailed to various California and Nevada addresses that were under the control of one or more co-conspirators. EDD approved at least 60 of the fraudulent claims and authorized Bank of America to mail out EDD debit cards containing benefits. Marquez, Alyssa Jones, and Ebony Jones then obtained the EDD debit cards and used them to withdraw the benefits at ATMs throughout California and Nevada for the benefit of the conspirators. The scheme sought over $1 million and resulted in EDD paying out over $890,000.
This case is the product of an investigation by the U.S. Postal Inspection Service, the California Department of Corrections and Rehabilitation Office of Correctional Safety, the DVI Investigative Services Unit, and the California Employment Development Department – Investigation Division. Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
Alyssa Jones, Ebony Jones and Marquez await sentencing after having also pleaded guilty to their participation in the scheme.
Hawkins is scheduled to be sentenced on Oct. 24, 2022, by U.S. District Judge William B. Shubb. Hawkins faces a maximum statutory penalty of five years in prison and a $250,000 fine for conspiracy and a mandatory, consecutive two-year prison term for aggravated identity theft. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
FCA US LLC Sentenced in Connection with Conspiracy to Cheat U.S. Emissions TestsRead the Press Release
FCA US LLC (FCA US), formerly Chrysler Group LLC, was sentenced today in federal court in Detroit and ordered to pay a fine of $96,145,784; and a forfeiture money judgment of $203,572,892. The court also imposed a three-year term of organizational probation.
The conviction results from the company’s conspiracy to defraud U.S. regulators and customers by making false and misleading representations about the design, calibration, and function of the emissions control systems on more than 100,000 Model Year 2014, 2015, and 2016 Jeep Grand Cherokee and Ram 1500 diesel vehicles, and about these vehicles’ emission of pollutants, fuel efficiency, and compliance with U.S. emissions standards.
“This case demonstrates the Criminal Division’s dedication to prosecuting companies that seek to place profits above full candor, good corporate governance, and timely remediation,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Today’s sentence shows that companies that engage in misleading U.S. regulators, or their own customers, will be held accountable.”
“Today’s sentence is an appropriate punishment for a company that schemed to defraud regulators and consumers,” said U.S. Attorney Dawn N. Ison. “All corporations should be transparent and honest in dealing with the federal government and the public. This prosecution reflects how seriously my office takes this principle.”
“Today’s sentencing of FCA US, which includes a $300M criminal penalty, is the result of an exhaustive three-year investigation,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. "This resolution shows that the Department of Justice is committed to holding corporate wrongdoers accountable for misleading regulators. My sincere thanks go to our investigative partners at EPA-CID and the FBI.”
“Today’s sentencing clearly demonstrates that the EPA and our federal partners will hold major corporations like FCA accountable for complying with vehicle emissions standards,” said Acting Assistant Administrator Larry Starfield for the Environmental Protection Agency’s Office of Enforcement and Compliance Assurance. “Stopping violations of environmental laws and the defrauding of consumers is paramount to the protection of clean air and human health.”
According to the company’s admissions and court documents, beginning at least as early as 2010, FCA US developed a new 3.0-liter diesel engine for use in FCA US’s Jeep Grand Cherokee and Ram 1500 vehicles (the Subject Vehicles) that would be sold in the United States. FCA US designed a specific marketing campaign to market these vehicles to U.S. customers as “clean EcoDiesel” vehicles with best-in-class fuel efficiency. However, according to court documents, FCA US installed software features in the Subject Vehicles and engaged in other deceptive and fraudulent conduct intended to avoid regulatory scrutiny and to fraudulently help the Subject Vehicles meet the required emissions standards, while maintaining features that would make them more attractive to consumers, including with respect to fuel efficiency, service intervals, and performance.
Specifically, FCA US purposely calibrated the emissions control systems on the Subject Vehicles to produce less NOx emissions during the federal test procedures, or driving “cycles,” than when the Subject Vehicles were being driven by FCA US’s customers under normal driving conditions. FCA US then engaged in deceptive and fraudulent conduct to conceal the emissions impact and function of the emissions control systems from its U.S. regulators and U.S. customers by (a) submitting false and misleading applications to U.S. regulators to receive authorization to sell the vehicles, (b) making false and misleading representations to U.S. regulators both in person and in response to written requests for information, and (c) making false and misleading representations to consumers about the Subject Vehicles in advertisements and in window labels, including that the Subject Vehicles complied with U.S. emissions requirements, had best-in-class fuel efficiency as measured by EPA testing, and were equipped with “clean EcoDiesel engine[s]” that reduced emissions.
For example, FCA US referred to the manner in which it manipulated one method of emissions control as “cycle detection” and “cycle beating.” Without the “cycle beating” use of this emissions control software, the Subject Vehicles were unable to pass the emissions portions of the federal test procedures while also receiving a fuel efficiency rating that could be marketed to FCA US’s potential customers as “best-in-class,” consistent with FCA US’s 3.0-liter diesel program’s goals, timing, and marketing strategy. Because FCA US knew that the decision to calibrate the emissions control system used on the Subject Vehicles to perform differently “on cycle” versus “off cycle” would be subjected to significant scrutiny by U.S. regulators, FCA US made false and misleading representations to regulators to ensure that it obtained regulatory approval to sell the Subject Vehicles in the United States.
Under the terms of FCA’s guilty plea, which has been approved by the Court, FCA has agreed to continue to cooperate with the Department of Justice in any ongoing or future criminal investigations relating to this conduct. In addition, FCA US has also agreed to continue to implement a compliance and ethics program designed to prevent and detect fraudulent conduct throughout its operations and will report to the department regarding remediation, implementation, and testing of its compliance program and internal controls.
The government reached this agreement with FCA US based on several factors including, among others, the nature and seriousness of the offense conduct, the company’s failure to voluntarily and timely disclose the conduct that triggered the investigation, and its failure to conduct sufficient, timely, or appropriate remedial action. FCA US received credit for cooperation with the department’s investigation and has enhanced, and committed to further enhance, its compliance program and internal controls.
In the related criminal prosecution, three FCA employees, Emanuele Palma, Sergio Pasini, and Gianluca Sabbioni were indicted for conspiracy to defraud the United States and to violate the Clean Air Act and six counts of violating the Clean Air Act. They await trial. An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI and EPA’s Criminal Investigations Division are investigating the case.
Trial Attorney Michael P. McCarthy and Assistant Chief Michael T. O’Neill of the Criminal Division’s Fraud Section; White Collar Unit Chief John K. Neal and Assistant U.S. Attorney Timothy J. Wyse of the U.S. Attorney’s Office for the Eastern District of Michigan; and Senior Trial Attorney Todd W. Gleason of the Environment and Natural Resources Division’s Environmental Crimes Section are prosecuting the case.
The Fraud Section uses the Victim Notification System (VNS) to provide victims with case information and updates related to this case. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing [email protected]. To learn more about victims’ rights, please visit: https://www.justice.gov/criminal-vns/victim-rights-derechos-de-las-v-ctimas. If you believe you are a victim of the conduct described in the Plea Agreement and criminal Information, please visit https://www.justice.gov/criminal-vns/case/united-states-v-fca.
Durham Dentist Pleads Guilty to Tax FraudRead the Press Release
GREENSBORO – A North Carolina woman from Durham pleaded guilty on July 29, 2022, to tax fraud announced Sandra J. Hairston, U.S. Attorney for the Middle District of North Carolina.
Santa Maria McKibbins pleaded guilty to filing a false tax return, a violation of Title 26, United States Code, Section 7206(1), after an investigation revealed that she had withheld information from a tax preparer regarding income and personal use of funds related to her business. According to court-filed documents, McKibbins was a licensed dentist and ran a dental practice known as McKibbins Family Dentistry in Durham. A review of McKibbins’ expenditures revealed that her income far exceeded the income reported to the Internal Revenue Service (IRS), and bank records confirmed annualized personal income that exceeded the income claimed on her IRS forms. From 2013 to 2018, McKibbins withheld information regarding insurance and copayment checks made to her business, which she then diverted to her personal checking account which she used to make payments on multiple cars and her home.
“To attempt to evade taxes by hiding income and filing false returns, is a theft from the American public. It is a felony offense that carries severe consequences,” said Donald “Trey” Eakins, Special Agent in Charge, IRS Criminal Investigation, Charlotte Field Office. “The overarching principle of IRS’s enforcement strategy is simply this: We protect the integrity of the tax system by ensuring everyone pays their fair share of tax.”
Sentencing is scheduled to take place on October 19, 2022, at 9:30 a.m. in Greensboro, North Carolina, courtroom number three, before the Honorable Catherine C. Eagles. At sentencing, McKibbins faces a maximum sentence of three years in prison, a period of supervised release of up to one year, and monetary penalties.
Agents with the Criminal Investigation division of the Internal Revenue Service investigated the case. The case is being prosecuted by Assistant U.S. Attorney Tanner Kroeger.
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Dubuque Heroin, Fentanyl, and Meth Dealer Sentenced to over 33 Years in Federal Prison After Causing OverdoseRead the Press Release
A man who arranged a heroin and fentanyl distribution in Dubuque that led to a near‑fatal overdose was sentenced July 29, 2022, to more than 33 years in federal prison.
Derrick Darryl Trawick, age 40, from Chicago, Illinois, received the prison term after a January 27, 2022 jury verdict finding him guilty of aiding and abetting the distribution of heroin and fentanyl near a playground.
The evidence at trial showed that Trawick was a heroin dealer in Dubuque who was nicknamed “Worm” and “KG.” During the early morning hours of May 31, 2019, two of his heroin customers contacted him to purchase a $40 bag of heroin. Trawick and another man drove to meet the customers and then directed them back to Trawick’s residence on Walnut Street, which was around the corner from the playground at Jefferson Park. Trawick and the other man then returned to Trawick’s residence and went inside. A short time later, the other man exited the residence, walked to the customers’ car, and sold them the purported heroin, which actually contained both heroin and fentanyl. The customers then drove to a nearby motel and used the heroin and fentanyl. One of those customers suffered an overdose during which she lost consciousness and stopped breathing for several minutes. She regained consciousness after being given Narcan by her companions and chest compressions by a first responder. In the January 2022 trial, the jury did not find that the use of the drugs Trawick arranged to distribute caused the serious bodily injury to the customer.
Evidence presented at sentencing showed that Trawick not only sold heroin and fentanyl in Dubuque, but that he also sold large quantities of ice methamphetamine with another individual in 2018 and 2019—totaling at least 4.5 kilograms. The Court also found, under a lower standard of proof than applied at the trial, that the heroin and fentanyl that Trawick arranged to distribute to the customer had caused her overdose and injury. Information at sentencing also showed that Trawick had previously been convicted of six other felony-level crimes, including aggravated criminal sex abuse of a victim aged between 13 and 16 years old, aggravated robbery, a violation of sex offender registry requirements, domestic abuse assault causing injury, and assault with intent to commit sexual abuse.
Trawick was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Trawick was sentenced to 400 months’ imprisonment. He must also serve a six-year term of supervised release after the prison term. There is no parole in the federal system.
Trawick is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Dubuque Drug Task Force and the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorneys Dan Chatham and Jason Norwood.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-1016-CJW.
Follow us on Twitter @USAO_NDIA.
Department of Justice Awards $480,000 to Spokane County Sheriff’s Office for Rapid DNA TestingRead the Press Release
Spokane, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, today announced $480,000 Department of Justice grant to the Spokane County Sheriff’s Office Rapid DNA program. The grant will help law enforcement in Spokane County identify, arrest, and prosecute both violent crimes and prolific property crimes, with the goal of enhancing the Sheriff’s Office’s technical expertise, increasing the number of solved crimes in Spokane County, and reducing the number of crimes against persons and property.
The grant, which is administered by the U.S. Department of Justice Office of Justice Programs, was awarded on July 26, 2022. The funding will be used by the Forensic Unit of the Spokane County Sheriff’s Office, which is an accredited lab covering various areas. The Rapid DNA program should accelerate the speed by which investigative leads can be developed, perpetrators identified, and innocent parties cleared. As a result, offenders will be more quickly apprehended.
In announcing the nearly $500,000 award, U.S. Attorney Waldref stated, “This grant is an example of the Justice Department’s commitment to devoting resources to our local law enforcement partners to ensure Eastern Washington remains Safe and Strong.” U.S. Attorney Waldref continued, “DNA testing is a critical tool for solving and prosecuting crime. In fact, DNA analysis has proven to be the difference in identifying, and in some cases exonerating, the accused. By devoting these additional resources in Spokane County, we are able to help law enforcement hold perpetrators accountable and deter others from committing criminal acts in Eastern Washington.”
More information about grants and funding through the U.S. Department of Justice Office of Justice Programs is available at https://www.ojp.gov/.
Danville Woman Pleads Guilty to Stealing over $66,000 from Saint Anselm CollegeRead the Press Release
CONCORD – Renee Crawford, 35, of Danville pleaded guilty in federal court today to embezzling more than $66,000 from Saint Anselm College, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, Crawford was employed as the Assistant Vice President of Finance for the College. In her role, Crawford had authority to manage invoice approvals, enter vendor information, and had oversight of the Finance Office’s credit card program.
Crawford used her access to submit fraudulent invoices for a company that she created, receiving more than $44,000 from the College which she used for personal purchases. In addition, Crawford used two College issued credit cards to make personal purchases, such as family vacations and theme park tickets, totaling nearly $22,000.
Crawford is currently scheduled to be sentenced on November 14, 2022.
The case was investigated by the Federal Bureau of Investigation and the Goffstown Police Department. The case is being prosecuted by Assistant U.S. Attorney John J. Kennedy
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