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21 July 2022
Two Beckley Women Plead Guilty to Straw Purchasing FirearmsRead the Press Release
BECKLEY, W.Va. – Lakeshia Nicole Simon, 23, and Tyana Bly, also known as “Biggie,” 22, both of Beckley, each pleaded guilty today to straw purchasing roles in a conspiracy to traffic over 130 firearms from the Beckley area to Philadelphia.
According to court documents and statements made in court, Simon and Bly each admitted to straw purchasing firearms in Beckley for Bisheem Jones, also known as “Bosh.” Jones provided Bly with money to buy the firearms and told her which ones to buy, and did the same with Simon through an intermediary.
Simon admitted to purchasing two Ruger Model Ruger 57, 5.7x28mm 5.7-caliber pistols for Jones on April 20, 2021. Simon further admitted to buying at least three additional firearms for Jones in April 2021 so he and others could transport and resell them outside of West Virginia.
Bly admitted to buying two SCCY CPX-2 9mm pistols and a Taurus G3C 9mm pistol for Jones in Beckley on April 2, 2021. Bly further admitted to purchasing at least five firearms for Jones in March and April 2021 so he and others could transport and resell them outside of West Virginia.
Simon and Bly pleaded guilty to making false statements in acquisition of firearms, admitting they falsely certified on the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Federal Firearms Transaction Records Form 4473 that they were the buyers of the firearms while knowing they were purchasing the firearms for someone else.
Simon and Bly are among 13 individuals indicted in connection with their roles in a conspiracy to traffic over 130 firearms from the Beckley area to Philadelphia, Pennsylvania. More than 40 of the firearms have been recovered in Philadelphia and have been connected to two homicides, crimes of domestic violence, and other violent crimes.
Stephanie Cohernour, Arileah Lacy, and Terri Lawhorn previously admitted to making straw purchases in the conspiracy, pleading guilty to making false statements in acquisition of firearms. Co-defendant Derrick Woodard pleaded guilty to interstate travel with the intent to engage in dealing firearms without a license. The case remains pending against Jones and five other co-defendants. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Simon is scheduled to be sentenced on December 2, 2022, and Bly is scheduled to be sentenced on November 10, 2022. Each faces a maximum penalty of five years in prison, three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the ATF’s investigative work.
United States District Judge Frank W. Volk presided over the hearings. Assistant United States Attorney Negar M. Kordestani is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:22-cr-46.
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Three indicted on fentanyl, heroin, cocaine, and “boot” chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Two Maryland men and a West Virginia man were indicted this week on multiple drug charges, United States Attorney William Ihlenfeld announced.
The three are accused of working together to distribute fentanyl, heroin, cocaine base, and Eutylone, also known as “boot.” Those charged are:
- Steven Bernard Parker, Jr., also known as “Mac Man,” 43, of Baltimore, Maryland
- Danny Otero Johnson, Jr., also known as “Black,” 39, of Owings Mill, Maryland
- Travis Jackson Latta, 34, of Martinsburg, West Virginia
The crimes are alleged to have occurred from April 2021 to June 2021 in Berkeley County and elsewhere.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative; the Bureau of Alcohol, Tobacco, Alcohol, and Firearms; and the Martinsburg Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Three Individuals Plead Guilty to Fraudulently Obtaining Pandemic Unemployment Benefits for Virginia Prison InmatesRead the Press Release
RICHMOND, Va. – Three individuals pleaded guilty to participating in a conspiracy to use the personal identifying information (PII) of Virginia prison inmates in order to fraudulently obtain COVID-19 pandemic-related unemployment benefits.
According to court documents, Veldreka L. Crockett, 31, of Hopewell, pleaded guilty today, the last of the three defendants in the conspiracy to enter a guilty plea. Crockett was an employee of a company contracted by the Commonwealth of Virginia to provide services related to the Commonwealth's management of its Medicaid program. In this capacity, Crockett worked to determine the Medicaid eligibility of incarcerated individuals in the Commonwealth.
At the same time, in 2020 and 2021, Crockett conspired with at least two other inmates at Virginia correctional institutions – Clarence Stith III, 38, of Lawrenceville Correctional Center in Lawrenceville, and Andre C. Mason, Jr., 35, of Greensville Correctional Center in Jarratt – to collect the PII of other Virginia inmates. After receiving the inmate information from her co-defendants, Crockett used it to file pandemic unemployment claims on behalf of at least 30 inmates with the Virginia Employment Commission (VEC). The defendants caused the VEC to disburse approximately $318,727 in fraudulent pandemic-related unemployment benefits. The VEC was able to reclaim $25,920 of the disbursed funds after discovering the fraud.
In order for the claims to be successful, Crockett and her co-conspirators included numerous false statements about the inmates’ addresses, last employers, and employment statuses, including that they were unable to work because of the pandemic. In truth, the inmates could not work and did not qualify for unemployment benefits because they were incarcerated. Crockett and her co-conspirators also filed weekly re-certifications for unemployment claims to ensure that the VEC would continue to pay benefits. Such UI claims caused the VEC to create and send pre-paid debit cards in the name of the Virginia inmates to addresses designated by Crockett and her co-conspirators.
Crockett coordinated with Stith and Mason to ensure that Crockett would receive the pre-paid debit cards in the name of Virginia inmates so that Crockett could take a portion of the funds. As part of the scheme, Crockett also transferred funds from these pre-paid debit cards to Stith via Stith's prison commissary account and to individuals designated by Mason.
Crockett pleaded guilty to conspiring to commit mail fraud and aggravated identity theft. She faces a maximum sentence of 32 years in prison and a mandatory minimum sentence of two years when sentenced on October 20. Stith pleaded guilty to conspiring to commit mail fraud and aggravated identity theft. He faces a maximum sentence of 32 years in prison and a mandatory minimum sentence of two years when sentenced on October 20. Mason pleaded guilty to conspiring to commit mail fraud. He faces a maximum sentence of 30 years in prison when sentenced on October 13. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Joseph V. Cuffari, Inspector General for the Department of Homeland Security, made the announcement after U.S. Magistrate Judge Mark R. Colombell accepted the plea.
Assistant U.S. Attorney Avi Panth is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 3:22-cr-32.
Three Charged in First Ever Cryptocurrency Insider Trading Tipping SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging ISHAN WAHI, a former product manager at Coinbase Global, Inc. (“Coinbase”), NIKHIL WAHI, and SAMEER RAMANI, with wire fraud conspiracy and wire fraud in connection with a scheme to commit insider trading in cryptocurrency assets by using confidential Coinbase information about which crypto assets were scheduled to be listed on Coinbase’s exchanges. ISHAN WAHI and NIKHIL WAHI were arrested this morning in Seattle, Washington and will be presented today in the United States District Court for the Western District of Washington. SAMEER RAMANI was also charged today and remains at large.
U.S. Attorney Damian Williams said: “Today’s charges are a further reminder that Web3 is not a law-free zone. Just last month, I announced the first ever insider trading case involving NFTs, and today I announce the first ever insider trading case involving cryptocurrency markets. Our message with these charges is clear: fraud is fraud is fraud, whether it occurs on the blockchain or on Wall Street. And the Southern District of New York will continue to be relentless in bringing fraudsters to justice, wherever we may find them.”
FBI Assistant Director Michael J. Driscoll said: “Although the allegations in this case relate to transactions made in a crypto exchange - rather than a more traditional financial market – they still constitute insider trading. As alleged, the defendants made illegal trades in at least 25 different crypto assets and realized ill-gotten gains totaling approximately $1.5 million. Today’s action should demonstrate the FBI’s commitment to protecting the integrity of all financial markets – both ‘old’ and ‘new.’”
As alleged in the Indictment unsealed in Manhattan federal court[1]:
Background
At all relevant times, Coinbase was one of the largest cryptocurrency exchanges in the world. Coinbase users could acquire, exchange, and sell various crypto assets through online user accounts with Coinbase. Periodically, Coinbase added new crypto assets to those that could be traded through its exchange, and the market value of crypto assets typically significantly increased after Coinbase announced that it would be listing a particular crypto asset. Accordingly, Coinbase kept such information strictly confidential and prohibited its employees from sharing that information with others, including by providing a “tip” to any person who might trade based on that information.
Beginning in approximately October 2020, ISHAN WAHI worked at Coinbase as a product manager assigned to a Coinbase asset listing team. In that role, ISHAN WAHI was involved in the highly confidential process of listing crypto assets on Coinbase’s exchanges and had detailed and advanced knowledge of which crypto assets Coinbase was planning to list and the timing of public announcements about those crypto asset listings. Beginning at least in August 2021 and continuing through May 2022, ISHAN WAHI was a member of a private Coinbase messaging channel reserved for a small number of Coinbase employees with direct involvement in the Coinbase asset listing process. The private channel was used to discuss, among other things, “exact announcement / launch dates + timelines” that Coinbase did not wish to share with all of its employees.
The Insider Trading Scheme
On at least 14 occasions beginning at least in June 2021 and continuing through April 2022, ISHAN WAHI knew in advance both that Coinbase planned to list particular crypto assets and the timing of Coinbase’s public announcements of those asset listings and misappropriated that Coinbase confidential information by tipping either his brother, NIKHIL WAHI, or ISHAN WAHI’s friend and associate, SAMEER RAMANI, so that they could place profitable trades in those crypto assets in advance of Coinbase’s public listing announcements.
After getting tips from ISHAN WAHI, NIKHIL WAHI and RAMANI used anonymous Ethereum blockchain wallets to acquire crypto assets shortly before Coinbase publicly announced that it was listing or considering listing these crypto assets on its exchanges. Following Coinbase public listing announcements, NIKHIL WAHI and RAMANI sold the crypto assets for a profit. Based on confidential information provided by ISHAN WAHI, NIKHIL WAHI and RAMANI collectively traded shortly in advance of at least 14 separate Coinbase public listing announcements concerning at least 25 different crypto assets. As a result of the insider trading scheme, NIKHIL WAHI and RAMANI collectively generated realized and unrealized gains totaling at least approximately $1.5 million.
To conceal their purchases of crypto assets in advance of Coinbase listing announcements, NIKHIL WAHI and RAMANI used accounts at centralized exchanges held in the names of others, and transferred funds, crypto assets, and proceeds of their scheme through multiple anonymous Ethereum blockchain wallets. NIKHIL WAHI and RAMANI also regularly created and used new Ethereum blockchain wallets without any prior transaction history in order to further conceal their involvement in the scheme.
ISHAN WAHI’s Attempt to Flee the United States
On April 11, 2022, Coinbase announced that it was considering potentially listing dozens of crypto assets on its exchanges. Based on Coinbase confidential information provided by ISHAN WAHI, RAMANI caused multiple anonymous Ethereum blockchain wallets to purchase large quantities of at least six of the crypto assets that were to be included in Coinbase’s April 11, 2022 listing announcement.
Shortly after RAMANI traded in advance of Coinbase’s April 11 listing announcement, on April 12, 2022, a Twitter account that is well known in the crypto community tweeted regarding an Ethereum blockchain wallet “that bought hundreds of thousands of dollars of tokens exclusively featured in the Coinbase Asset Listing post about 24 hours before it was published.” The trading activity referenced in the April 12 tweet was the trading caused by RAMANI. Coinbase thereafter publicly replied on Twitter noting that it had already begun investigating the matter and a few weeks later stated in a public blog post that any Coinbase employee who leaked confidential company information would be “immediately terminated and referred to relevant authorities (potentially for criminal prosecution).”
On May 11, 2022, Coinbase’s director of security operations emailed ISHAN WAHI to inform him that he should appear for an in-person meeting relating to Coinbase’s asset listing process at Coinbase’s Seattle, Washington office on Monday, May 16, 2022. ISHAN WAHI confirmed he would attend the meeting.
On the evening of Sunday, May 15, 2022, ISHAN WAHI purchased a one-way flight to India that was scheduled to depart the next day shortly before ISHAN WAHI was supposed to be interviewed by Coinbase. Prior to boarding the flight, ISHAN WAHI falsely told Coinbase employees that he had already departed for India when he had not. In the hours between booking the flight and his scheduled departure, ISHAN WAHI called and texted NIKHIL WAHI and RAMANI about Coinbase’s investigation, and sent both of them a photograph of the messages he had received on May 11, 2022, from Coinbase’s director of security operations. Prior to boarding the May 16, 2022 flight to India, ISHAN WAHI was stopped by law enforcement and prevented from leaving the country.
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ISHAN WAHI, 32, of Seattle, Washington, is charged with two counts of wire fraud conspiracy and two counts of wire fraud, each of which carries a maximum sentence of 20 years.
NIKHIL WAHI, 26, of Seattle, Washington, is charged with one count of wire fraud conspiracy and one count of wire fraud, each of which carries a maximum sentence of 20 years.
SAMEER RAMANI, 33, of Houston, Texas, is charged with one count of wire fraud conspiracy and one count of wire fraud, each of which carries a maximum sentence of 20 years.
The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Williams praised the investigative work of the FBI. He also acknowledged the assistance of the Justice Department’s National Cryptocurrency Enforcement Team, as well as that of the Securities and Exchange Commission, which separately initiated civil proceedings against the defendants today. Mr. Williams further thanked Coinbase Global, Inc. for its cooperation with the investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Noah Solowiejczyk and Nicolas Roos are in charge of the prosecution.
The allegations in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Three Arrested for Scheme to Steal Unclaimed Funds from the NYS ComptrollerRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Daniel B. Brubaker, Postal Inspector in Charge, Postal Service Inspection Service, New York Division, and Thomas P. DiNapoli, New York State Comptroller, announced the arrest of BAKARE DOUKOURE, SANNEH TUNKARA, and LASSANA SYLLA on mail fraud and identity theft charges arising out of their scheme to fraudulently obtain unclaimed funds held by the New York State Comptroller’s Office of Unclaimed Funds. TUNKARA was arrested on July 19, 2022 and presented before the Hon. Andrew E. Krause, United States Magistrate Judge. SYLLA surrendered upon learning of an outstanding arrest warrant and was presented before Judge Krause on July 20, 2022. Earlier today, DOUKOURE also surrendered upon learning of an outstanding arrest warrant and was presented before Judge Krause.
U.S. Attorney Damian Williams said: “As alleged in the Complaint, Bakare Doukoure, Sanneh Tunkara, and Lassana Sylla defrauded over 100 unsuspecting New York residents out of money to which they were entitled that was held in trust by the New York State Comptroller’s Office of Unclaimed Funds. My Office and our partners in law enforcement will not stand idly by when wrongdoers target government programs designed to protect the assets of the people of this State.”
USPIS Inspector-in-Charge of the New York Division Daniel B. Brubaker said: “The defendants thought no one was looking while they carried out their scheme to defraud the New York State Comptroller’s Office, and in an attempt to hide their crimes steal the identities of numerous victims. They gamed the system for over one hundred thousand dollars and tarnished the names of innocent people, all in the pursuit of their greed. However, Postal Inspectors and our law enforcement partners are ever vigilant when it comes to exposing fraudsters. We will commit every resource available to us in the fight against identity theft and fraud. Today’s arrests should also serve as a warning to anyone who uses the mail for illegal purposes: once Postal Inspectors are on the case, it’s game over for the bad guys.”
New York State Comptroller Thomas P. DiNapoli said: “The defendants unconscionably stole people’s identities to submit claims for money that did not belong to them, stealing from those who had unclaimed funds held by the state. Thanks to the work of my investigations team, the United States Attorney’s Office for the Southern District of New York, and the United States Postal Inspection Service, and the New York City Housing Authority’s Office of Inspector General, they have been arrested and will be prosecuted to the full extent of the law.”
According to the allegations in the Complaint filed yesterday and unsealed today[1]:
New York State’s Abandoned Property Law requires banks and other financial institutions to transfer abandoned customer funds in their custody to the Office of Unclaimed Funds after a specified period of time. The Office of Unclaimed Funds maintains an online database in which anyone can search to see if the Office of Unclaimed Funds is holding any unclaimed funds in someone’s name. The owner of the funds can recover the money from the Office of Unclaimed Funds by filing a claim and proving he or she is the rightful owner of the money by providing personal identifying information such as a Social Security number or an address. New York State has approximately $17.5 billion in unclaimed money with more than 46 million account records remaining unclaimed. The Office of Unclaimed Funds returns over $1.5 million to individuals, companies, non-profit organizations, and municipalities daily.
An investigation by the State Comptroller’s Office initially discovered the identity theft and the fraud. State Comptroller investigators brought the matter to the federal authorities and worked jointly with the Postal Inspection Service and the United States Attorney’s Office to fully uncover the scheme.
From at least in or about June 2012 to in or about April 2018, DOUKOURE, TUNKARA, and SYLLA worked together in a fraudulent scheme in which they filed fraudulent claims with the Office of Unclaimed Funds for abandoned monies held in trust by the New York State Comptroller. Bank records show that, during the relevant period, the Office of Unclaimed Funds issued approximately 170 checks made out to approximately 120 different payees that were deposited into approximately eight different bank accounts that were controlled by either DOUKOURE or TUNKARA.
In connection with the scheme, bank accounts controlled by DOUKOURE and TUNKARA were used to make purchases from online databases that collect public records on individuals, such as names, dates of birth, and addresses. DOUKOURE and TUNKARA also used stolen identities to perpetrate their scheme, including fake driver’s licenses.
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DOUKOURE, 54, of the Bronx, New York, has been charged with conspiracy to commit mail fraud, mail fraud, and two counts of aggravated identity theft, which carries a maximum sentence of 40 years in prison and a mandatory minimum sentence of 4 years in prison. TUNKARA, 38, of the Bronx, New York, has been charged with conspiracy to commit mail fraud, mail fraud and one count of aggravated identity theft, which carries a maximum sentence of 40 years in prison, and a mandatory minimum sentence of 2 years in prison. SYLLA, 47, of Philadelphia, Pennsylvania, has been charged with conspiracy to commit mail fraud and mail fraud, which carries a maximum sentence of 40 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
The charges in the Complaint are merely accusations, and DOUKOURE, TUNKARA and SYLLA are presumed innocent unless and until proven guilty.
Mr. Williams praised the outstanding investigative work of Postal Inspectors with the United States Postal Inspection Service, Investigators with the Office of the New York State Comptroller, and Investigators with the New York City Housing Authority’s Office of Inspector General.
The prosecution of this case is being handled by the Office’s White Plains Division. Assistant United States Attorney Benjamin A. Gianforti and James McMahon are in charge of the prosecution.
[1]As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Third defendant arraigned for Shiprock assaultRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that Raynorma Rae Billy was arraigned on July 20 on an indictment charging her with conspiracy to commit assault with a dangerous weapon and assault with a dangerous weapon with the intent to do bodily harm. Billy, 34, and an enrolled member of the Navajo Nation, will remain on conditions of release pending trial, which has not been scheduled.
A grand jury indicted Raynorma Billy and co-defendants Raydell Billy and Alvin White on May 24. According to the indictment and other court records, on April 11, Raynorma allegedly drove Raydell and White to a residence at South Side Non-profit Housing in Shiprock with the intent to assault a victim, identified as John Doe. After they entered the residence, Raynorma allegedly prevented the other occupants of the residence from intervening while Raydell and White assaulted John Doe. The indictment alleges that White threatened John Doe with a machete and both Raydell and White allegedly beat John Doe with their fists.
The alleged assault occurred on the Navajo Nation.
Raydell Billy was arraigned on May 27. White was arraigned on May 31. Raydell Billy and White will remain in custody pending trial.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Raydell, Raynorma and White each face up to five years in prison for conspiracy and up to ten years in prison for assault with a dangerous weapon with the intent to do bodily harm.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Department of Criminal Investigations. Assistant United States Attorney Mark Pfizenmayer is prosecuting the case.
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Texas Man Charged with Drug Trafficking OffenseRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Daniel Torres, age 31, of San Antonio, Texas, was indicted on July 14, 2022, by a federal grand jury on a drug trafficking charge.
According to United States Gerard M. Karam, the indictment charges Torres with possession with intent to distribute at more than 500 grams of cocaine on May 31, 2022, in Centre County.
This case was investigated by the Pennsylvania State Police and the Federal Bureau of Investigation. Assistant U.S. Attorney Alisan V. Martin is prosecuting the case.
The maximum penalty under federal law for possession with the intent to distribute 500 grams or more of cocaine is 40 years’ imprisonment and a fine. A sentence for each of these offenses also includes a period of supervised release following imprisonment. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged by indictment are presumed to be innocent unless and until found guilty in court.
This case was 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.
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Terre Haute Drug Trafficker Sentenced to over 15 Years in Federal Prison After Overdose Report Leads to Discovery of Methamphetamine Dealing and Multiple FirearmsRead the Press Release
INDIANAPOLIS – Matthew Beeler, 32, of Terre Haute, Ind., was sentenced to 183 months in federal prison after pleading guilty to possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime.
According to court documents, on Nov. 7, 2020, the Terre Haute Police Department and medics responded to a report of a possible heroin overdose of several persons in a Terre Haute residence. Beeler and another individual were found unresponsive prompting medics to administer Narcan. Medics found a large plastic bag containing methamphetamine underneath Beeler’s body while trying to revive him.
While searching for other overdose victims, officers found several firearms, multiple rounds of ammunition and additional methamphetamine, located in plain view in Beeler’s bedroom. Beeler had approximately 2,658 grams of methamphetamine in the residence. The drugs, guns, ammunition, digital scales, and packaging materials were all seized following the execution of a search warrant. All items were present in the home, left unsecured and accessible to children living in the home, putting them at substantial risk.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana; Michael Gannon, Assistant Special Agent in Charge of the DEA’s Indianapolis Field Office; and Terre Haute Police Chief Sean Keen made the announcement.
DEA and the Terre Haute Police Department investigated the case. The sentence was imposed by U.S. District Judge James R. Sweeney II. As part of the sentence, Judge Sweeney ordered that Beeler 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 William McCoskey who prosecuted this case.
Tampa Felon Indicted on Firearm and Drug ChargesRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Raequin Smith (26, Tampa) with possessing a firearm as a convicted felon, possessing with the intent to distribute a controlled substance, and possessing a firearm in furtherance of a drug trafficking crime. If convicted, Smith faces up to 20 years in federal prison for the controlled substance offense, up to 10 years’ imprisonment for possessing a firearm as a convicted felon, and up to 5 years’ imprisonment for possessing the firearm in furtherance of a drug trafficking crime. The indictment also notifies Smith that the United States intends to forfeit all firearms and ammunition recovered as a result of the offense conduct.
According to the indictment, on April 5, 2022, Smith knowingly possessed a Glock .45 caliber pistol and 11 rounds of ammunition, and a Schedule II controlled substance (cocaine). Smith had previously been convicted of aggravated battery on or about September 18, 2014. Therefore, he is prohibited from possessing a firearm or ammunition under federal law.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety – one that includes investigating and prosecuting crimes, along with prevention and re-entry efforts. In the Middle District of Florida, U.S. Attorney Roger B. Handberg coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearm and Explosives, and the Tampa Police Department. It will be prosecuted by Assistant United States Attorney Maria Guzman.
Sun Prairie Man Sentenced to 72 Months for Possessing Cocaine for Distribution & Illegally Possessing FirearmsRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Carlos Carter, 33, Sun Prairie, Wisconsin was sentenced today by Chief U.S. District Judge James D. Peterson to 72 months in federal prison for possession of cocaine with intent to distribute and being a felon in possession of firearms. Carter pleaded guilty to this charge on April 28, 2022.
In 2020, federal and state law enforcement agencies started investigating several known cocaine traffickers in Dane County, Wisconsin. As part of this joint investigation, the Wisconsin Department of Justice Division of Criminal Investigation (DCI) obtained state-authorized wiretaps on two phones belonging to Andre McClinton. Over the course of several months, investigators intercepted numerous calls and text messages between McClinton and Carter. Most of these conversations centered on McClinton selling large amounts of drugs to Carter, a felon with prior drug convictions.
On March 8, 2021, law enforcement officers from the Wisconsin State Patrol (WSP) and DCI stopped Carter for speeding and detained him as part of the narcotics investigation. Investigators also searched a house in Sun Prairie, Wisconsin where Carter stayed. During the search, investigators found 260 grams of a powder cocaine, 76 grams of crack cocaine, drug packaging material, two digital scales, six cellphones, a drug ledger, two loaded 9 mm handguns, and a loaded .44 caliber revolver which was reported stolen.
In sentencing Carter, Judge Peterson wanted to protect the community from someone who had a capacity for violence. Judge Peterson explained that the amount of drugs Carter distributed and the number of firearms he illegally possessed warranted a significant term of imprisonment.
On March 23, 2022, Judge Peterson sentenced Andre McClinton to 108 months’ imprisonment for conspiracy to distribute cocaine and illegally possessing firearms. In addition, Judge Peterson entered a money judgment against McClinton in the amount of $313,100. McClinton also agreed to forfeit $116,890 in cash, property located in Mount Horeb, Wisconsin, three vehicles, and two firearms. Other defendants convicted as part of this investigation include:
- Michael Henderson, who received a sentence of 84 months’ imprisonment on December 9, 2021 for conspiracy to distribute cocaine;
- Jeffrey Kemp, who received a sentence of 48 months’ imprisonment on May 6, 2022 for attempting to possess fentanyl for distribution; and
- Antonio Dillard, who received a sentence of 24 months’ imprisonment on April 1, 2022 for attempting to possess fentanyl for distribution.
The charges against Carter were the result of an investigation conducted by DCI, WSP, the Dane County Narcotics Task Force, the Drug Enforcement Administration, and the U.S. Postal Inspection Service. Assistant U.S. Attorney Chadwick M. Elgersma prosecuted this case.
Stockton and Modesto Methamphetamine and Cocaine Traffickers ChargedRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an 11-count indictment today against Heidy Isabel Torres Lopez, 40, of Stockton; Cesar Mag Rodriguez Hernandez, 23, of Stockton; and Marco Antonio Sanchez Garcia, 37, of Modesto, charging them with conspiracy to distribute methamphetamine, distribution of cocaine, distribution of methamphetamine and possession with intent to distribute methamphetamine, cocaine, heroin, cocaine base, and marijuana, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Lopez, Hernandez, and Garcia distributed methamphetamine and cocaine to a confidential informant working for law enforcement. In total, the group attempted to sell over 13 pounds of methamphetamine and 3.7 pounds of cocaine.
This case is the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, the San Joaquin County District Attorney’s Office, the Stockton Police Department, the San Joaquin County Sheriff’s Office, and the Sacramento County Sheriff’s Office. Assistant U.S. Attorney Justin Lee is prosecuting the case.
If convicted, all three defendants face a mandatory minimum of 10 years in prison, a maximum statutory penalty of life years in prison, and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
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 www.justice.gov/OCDETF.
Statement of U.S. Attorney Nick Brown regarding voter intimidation or threatsRead the Press Release
Seattle – U.S. Attorney Nick Brown today issued the following statement as Western Washington voters mark their primary ballots and prepare to use ballot drop boxes throughout the Western District of Washington.
“Voter intimidation is a federal crime and any attempt to harass or discourage citizens from voting at our state’s secure election drop boxes will be investigated and prosecuted in federal court, said U.S. Attorney Brown. “We recognize and revere the First Amendment right to free speech and political debate. But there is a time when protected speech turns into acts of intimidation or threats of violence. We will work with our law enforcement partners to investigate threats of violence, hate crimes, and any effort to intimidate voters or those tasked with ensuring free and fair elections in our state.”
Under federal law, it is a felony to intimidate or threaten other persons to discourage them from voting or for assisting others in voting. This crime is punishable by up to five years in prison. Federal law also prohibits bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
Through the primary and general election periods, the U.S. Attorney’s Office will have District Election Officer Seth Wilkinson working with the FBI and other law enforcement agencies to investigate and respond to any reports of voter intimidation or threats. Assistant United States Attorney Wilkinson can be reached at (206) 553-7970 and ask to leave a message with the Civil Rights complaint hotline. The local FBI field office can be reached by the public at (206) 622-0460.
St. Petersburg Man Sentenced to Federal Prison for His Involvement in Tax Fraud ConspiracyRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Eurich Griffin III to four years and nine months in federal prison for conspiring to defraud the United States by preparing false and fraudulent tax returns. In addition to the term of imprisonment, the court also ordered Griffin to pay more than $1.6 million in restitution to the United States. Griffin had pleaded guilty on March 14, 2022.
According to court documents, Griffin was involved in a conspiracy that recruited clients by convincing them that their mortgages and other debts entitled them to tax refunds and prepared false tax returns on the clients’ behalf. Between 2013 and 2018, as part of the conspiracy, Griffin helped prepare and file tax returns for clients that sought more than $5.2 million in fraudulent tax refunds. The tax returns falsely claimed that banks and other financial institutions had withheld large amounts of income tax from the clients, thereby entitling the clients to a refund. In reality, the financial institutions had not paid any income to, or withheld any taxes from, these individuals. To make the refund claims appear legitimate, however, Griffin and his co-conspirators filed fraudulent tax documents with the IRS that matched the withholding information listed on the tax returns, making them appear as if they had been issued by the banks. As part of the conspiracy, Griffin also submitted fraudulent promissory notes to the IRS totaling more than $1.35 million in which he falsely purported to pay the clients’ tax debts.
“Let’s call this scheme what it is – stealing. Griffin and his co-conspirators attempted to steal millions of dollars from the government by submitting fabricated tax returns,” said Brian Payne, Special Agent in Charge of the Tampa IRS Criminal Investigation (IRS-CI) Field Office. “Thanks to the investigative work of our IRS-CI agents, we were able to shut this scheme down and prevent tax refunds from going to undeserving fraudsters.”
This case was investigated by IRS-Criminal Investigation. It is being prosecuted by Assistant United States Attorney Jennifer L Peresie.
St. Petersburg Man Pleads Guilty to Multiple Fentanyl Distribution Counts and Possessing A Firearm as A Convicted FelonRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that William Lee Shumaker, Jr. (39, St. Petersburg) has pleaded guilty to four counts of possessing a controlled substance with the intent to distribute it, and one count of possessing a firearm as a convicted felon. Shumaker faces a maximum penalty of 20 years in federal prison for each controlled substance offense and up to 10 years’ imprisonment for the firearm offense. A sentencing date has not yet been set.
According to court documents, Shumaker, a convicted felon, sold quantities of fentanyl to undercover law enforcement officers on multiple occasions and in increasingly large amounts in March and April 2021. During one of the fentanyl transactions, Shumaker also sold a Ruger .357 Magnum revolver and also offered to sell a .22 caliber pistol. As a previously convicted felon, Shumaker is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Pinellas County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney David W.A. Chee.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Roger B. Handberg coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
South Windsor Man Sentenced to Federal Prison for Defrauding Grandparents of $679KRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that DOUGLAS SENERTH, 33, of South Windsor, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 18 months of imprisonment, followed by three years of supervised release, for stealing approximately $679,000 from his grandparents. Judge Chatigny also ordered Senerth to serve the first six months of his supervised release in home confinement.
According to court documents and statements made in court, between 2011 and 2019, Senerth defrauded his grandmother and his late grandfather by falsely claiming to be a college student and inducing them to give him approximately $419,000 to pay for nonexistent college tuition and other related expenses, and an additional approximately $260,000 by falsely claiming that he would invest their money into an investment fund run by one of his nonexistent professors. As part of the scheme, Senerth created fraudulent college transcripts, letters and email accounts that he used to corroborate his lies.
Judge Chatigny ordered Senerth to pay restitution of $679,944.
Senerth has been detained in state custody since February 10, 2021, when he was arrested on unrelated charges. On February 23, 2022, he pleaded guilty in federal court to one count of wire fraud.
Senerth’s state case is pending. His federal sentence will begin when his state case is resolved.
This investigation was conducted by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Heather Cherry.
The Justice Department has established a National Elder Fraud Hotline to provide services to seniors who may be victims of financial fraud. The Hotline is staffed by experienced case managers who can provide personalized support to callers. Case managers assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller. The Hotline’s toll-free number is 833-FRAUD-11 (833-372-8311). For more information, please visit: https://ovc.ojp.gov/program/stop-elder-fraud/providing-help-restoring-hope.
South Texas man handed life sentence for child exploitationRead the Press Release
McALLEN, Texas – A South Texas man and woman have been ordered to federal prison for production of child pornography and coercion and enticement of a minor, announced U.S. Attorney Jennifer B. Lowery.
Reid Etheridge, 42, McAllen, and Alicia Cronkhite, 30, Edinburg, pleaded guilty April 1, 2021.
Today, U.S. District Judge Randy Crane ordered Etheridge to serve a life sentence. Cronkhite was ordered to serve 180 months to be immediately followed by a lifetime of supervised release. At the hearing, the court heard additional facts discussing the abuse both minor victims sustained at Etheridge and Cronkhite’s hands. In handing down the sentence, Judge Crane considered and heavily weighed the chances that Etheridge would re-offend in the future should he be released from federal prison. Judge Crane also considered that Etheridge manipulated Cronkhite into participating in their criminal conduct.
“This lengthy sentence is a testament to the repugnant nature of child exploitation crimes, particularly the production of child pornography which only perpetuates the trauma endured by victims,” said Acting Special Agent in Charge Alejandro Amaro of Homeland Security Investigations (HSI) in San Antonio. “HSI agents make it a top priority to protect vulnerable children from victimization by working with their law enforcement partners to investigate predators involved with the production, distribution and possession of child sexual abuse material and ensure they are held accountable for their heinous actions.”
Etheridge had filmed himself committing the sexual abuse and assault of two minor children from on or about Jan. 1, 2020, to approximately Oct. 1, 2020. As part of her guilty plea, Cronkhite admitted she took photographs of one minor victim’s exposed genitals and transmitted those photographs to Etheridge at his request.
The investigation began when authorities identified an IP address in McAllen that had uploaded images and videos depicting minor children engaged in sex acts. On Oct. 2, 2020, law enforcement executed a search warrant and encountered Etheridge at the residence. He soon admitted he had filmed himself sexually assaulting one minor victim.
Further investigation revealed communication between Etheridge and Cronkhite detailing the sexual exploitation of another minor victim. Authorities searched her residence, at which time she admitted she produced multiple images of a minor victim and transmitted the images to Etheridge.
Etheridge and Cronkhite will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations - Rio Grande Valley Child Exploitation Investigations Task Force conducted the investigation.
Assistant U.S. Attorney Michael Mitchell prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
South Bend Man Sentenced to 108 Months in PrisonRead the Press Release
SOUTH BEND – Timothy Humphries, 40 years old, of South Bend, Indiana, was sentenced by United States District Court Judge Damon R. Leichty on his plea of guilty to receipt of child pornography, announced United States Attorney Clifford D. Johnson.
Humphries was sentenced to 108 months in prison, 5 years of supervised release and ordered to pay a $6000 assessment.
According to documents in the case, in 2019, Humphries created fake social media profiles where he posed as a young teenage girl. He used those profiles to chat with female minors. Between September and October, he convinced a female minor to send him images of herself that constituted child pornography.
This case was investigated by the Federal Bureau of Investigation with the assistance of the Muskegon County, Michigan Sheriff’s Department. The case was prosecuted by Assistant United States Attorney John M. Maciejczyk.
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 .
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Sixth Member of Credit Card Fraud Conspiracy Sentenced to Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Virginia Hernandez Covington has sentenced Lazaro Adrian Quintana Martinez (27, Tampa) to four years and three months in federal prison for conspiracy to commit access device fraud and aggravated identity theft. Quintana Martinez had pleaded guilty on January 13, 2022.
According to court documents, Quintana Martinez and others conspired to obtain breached and stolen credit card and debit card account information and then use the stolen information to manufacture counterfeit credit cards. The conspirators used the counterfeit credit cards at retailers throughout the United States. The total loss from the conspirators’ use of the counterfeit credit cards is at least $435,000.
Quintana Martinez is the last of six conspirators to be sentenced. His codefendant, Lazaro Jesus Izquierdo (29, Tampa), was sentenced to six years and nine months’ imprisonment. Four other conspirators were sentenced in related cases as follows:
- On July 10, 2020, Yosvani Concepcion Izquierdo (33, Tampa) was sentenced to four years’ imprisonment.
- On November 10, 2020, Greisy Alfonso Lujan (29, Tampa) was sentenced to two years and eight months’ imprisonment.
- On December 7, 2021, Jany Angelica Hernandez Guerra (28, Tampa) was sentenced to two years and six months’ imprisonment.
- On January 26, 2022, Michael William Perez Castillo (32, Brandon) was sentenced to two years’ imprisonment.
“I would like to thank our agents, analysts, local, interstate, federal agencies and business partner for their hard work in solving this case. This complex, sophisticated fraud scheme case began in 2016 and spanned multiple counties in Florida and into other states. The collaboration between the public and private sectors made it possible to identify and dismantle this criminal organization,” said Florida Department of Law Enforcement Mark Brutnell, Special Agent in Charge, Tampa.
This case was investigated by the U.S. Secret Service and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Jennifer L Peresie.
Schenectady Felon Sentenced to 70 Months for Distributing Fentanyl-Laced Heroin and for Possessing Firearms in Furtherance of Drug TraffickingRead the Press Release
ALBANY, NEW YORK - Ralph St. Croix, a.k.a. “Stretch,” age 39, most recently of Schenectady, New York, formerly of Long Island, was sentenced today to 70 months in prison for distributing heroin laced with fentanyl, and for possessing two firearms in furtherance of a drug trafficking crime.
The announcement was made by United States Attorney Carla B. Freedman, John B. DeVito, Special Agent in Charge of the New York Field Division of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and New York State Police (NYSP) Superintendent Kevin P. Bruen.
In pleading guilty, St. Croix, a previously convicted felon, admitted to selling fentanyl-laced heroin to another person on three occasions in December 2020 at his apartment on Eastern Avenue in Schenectady. St. Croix further admitted to possessing, in his apartment, a loaded Smith and Wesson .38 caliber revolver and a Mossberg 12-gauge shotgun, in order to guard against the potential theft of his drugs and drug proceeds.
Senior United States Senior District Judge Frederick J. Scullin, Jr. also ordered that St. Croix serve a 3-year term of supervised release following his release from prison.
This case was investigated by ATF and NYSP with assistance provided by the Schenectady County District Attorney’s Office. It was prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
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.
Saratoga Woman Indicted for Theft and Misappropriation of Funds as the Fiduciary of a VeteranRead the Press Release
ALBANY, NEW YORK – JoAnne Natalie, age 64, of Saratoga Springs, New York, was indicted earlier this month for misappropriating the funds of a veteran declared legally incompetent, as well as stealing from the U.S. Department of Veterans Affairs. The announcement was made by United States Attorney Carla B. Freedman and Christopher F. Algieri, Special Agent in Charge of the Northeast Field Office for the United States Department of Veterans Affairs Office of Inspector General.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
The charges filed against Natalie carry a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. The indictment also seeks forfeiture of $50,174.42, representing the amount allegedly stolen. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Natalie was arraigned today in Albany, before United States Magistrate Judge Daniel J. Stewart, and released pending a trial scheduled before Chief United States District Judge Glenn T. Suddaby.
This case is being investigated by the United States Department of Veterans Affairs Office of Inspector General, and is being prosecuted by Assistant U.S. Attorney Alexander P. Wentworth-Ping.
This case is part of the Elder Justice Initiative. The mission of the Elder Justice Initiative is to support and coordinate the Department’s enforcement and programmatic efforts to combat elder abuse, neglect and financial fraud and scams that target our nation’s older adults. Anyone with information about allegations of attempted fraud involving elders can call the National Elder Fraud Hotline at 1-833-372-8311.
Salvadoran Man Sentenced for Illegal ReentryRead the Press Release
BOSTON – A Salvadoran man residing in Lynn was sentenced on July 19, 2022 in federal court in Boston for illegally reentering the United States after deportation.
Inmar Samuel Aguiluz-Palacios, 29, was sentenced by U.S. Senior District Court Judge William G. Young to 18 months in prison and three years of supervised release. Aguiluz-Palacios will be subject to deportation proceedings upon completion of his sentence. In March 2022, Aguiluz-Palacios pleaded guilty to one count of illegal reentry.
Aguiluz-Palacios was deported in May 2014. In June 2015, Aguiluz-Palacios was encountered in Texas and determined to be illegally present in the United States. He was convicted in the Southern District of Texas and deported. In December 2015, Aguiluz-Palacios illegally returned to the United States and was again encountered in Texas, determined to be illegally present in the United States, convicted and deported. At some point following this second 2015 removal, Aguiluz-Palacios illegally reentered the United States and was arrested and charged with assault with a dangerous weapon in August 2021 in Lynn. In January 2022, Aguiluz-Palacios was convicted of assault and sentenced to nine months in state prison. In April 2022, Aguilar-Palacios completed his state sentence and was transferred to federal authorities.
United States Attorney Rachael S. Rollins and Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations in Boston made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Rollins’ Major Crimes Unit prosecuted the case.
Sacramento Man Sentenced to 12 Years in Prison for Possessing Cocaine with Intent to Distribute and Possessing a Firearm in Furtherance of Drug TraffickingRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Troy L. Nunley sentenced Ou Vern Saeteurn, 26, of Sacramento, to 12 years in prison today for possessing with the intent to distribute cocaine and possessing a firearm in furtherance of a drug trafficking crime, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Sept. 6, 2018, law enforcement agents searched Saeteurn’s Oak Park home and found controlled substances or firearms in almost every room. In Saeteurn’s bedroom closet, agents found about 1 kilogram of methamphetamine and about 1 kilogram of cocaine. They also found two loaded firearms, additional ammunition, and about $9,400 in cash. In the rest of this home, officers found more methamphetamine, cocaine base, heroin, opium, about 16 firearms, magazines, and ammunition.
Saeteurn pleaded guilty on Feb. 3, 2022.
This case was the product of an investigation by the Federal Bureau of Investigation, the Sacramento Sheriff’s Office, the Sacramento Police Department, the California Highway Patrol, the California Department of Corrections & Rehabilitation, and Homeland Security Investigations. Assistant U.S. Attorney Michael M. Beckwith prosecuted the case.
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.
Sacramento Area Home Health Care and Hospice Agencies Owner Sentenced to 18 Months in Prison for Conspiring to Defraud MedicareRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Troy L. Nunley sentenced Liana Karapetyan, 42, of El Dorado Hills, today to 18 months in prison for one count of conspiracy to commit health care fraud and one count of conspiracy to pay and receive health care kickbacks, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Karapetyan and her husband, Akop Atoyan, owned and controlled home health care and hospice agencies in the greater Sacramento area: ANG Health Care Inc., Excel Home Healthcare Inc., and Excel Hospice Inc. On behalf of the agencies, Karapetyan and Atoyan certified to Medicare that they would not pay kickbacks in exchange for Medicare beneficiary referrals to the agencies.
Despite their certifications, from at least July 2015 through April 2019, Karapetyan and Atoyan paid and directed others to pay kickbacks to multiple individuals for beneficiary referrals, including employees of health care facilities, as well as employees’ spouses. The kickback recipients included John Eby, a registered nurse who worked for a hospital in Sacramento; Anita Vijay, the director of social services at a skilled nursing and assisted living facility in Sacramento; Jai Vijay, Anita Vijay’s husband; and Mariela Panganiban, the director of social services at a skilled nursing facility in Roseville.
In total, Karapetyan, Atoyan, and others caused the agencies to submit over 8,000 claims to Medicare for the cost of home health care and hospice services. Based on those claims, Medicare paid the agencies approximately $31 million. Of that amount, Medicare paid the agencies at least $2 million for services purportedly provided to beneficiaries referred in exchange for kickbacks paid to, among others, Eby, Anita Vijay, Jai Vijay, and Panganiban. Because the agencies obtained the beneficiary referrals by paying kickbacks, the agencies should not have received any Medicare reimbursement.
This case was the product of an investigation by the Federal Bureau of Investigation and the Department of Health and Human Services’ Office of Inspector General. Assistant U.S. Attorney Matthew Thuesen prosecuted the case.
In separate cases, Atoyan, Eby, Jai Vijay, Anita Vijay, and Panganiban pleaded guilty for their roles in the kickback scheme. They await sentencing.
Rock Hill Man Sentenced to More Than 2 Decades in Federal Prison for Illegal Drug SalesRead the Press Release
COLUMBIA, SOUTH CAROLINA — Archie Arsenio Caldwell, 33, of Rock Hill, was sentenced to 25 years in federal prison after pleading guilty to conspiracy to distribute cocaine, crack cocaine, methamphetamine, fentanyl, and marijuana. He also plead guilty to distributing crack cocaine and money laundering.
Evidence presented to the Court showed that the Federal Bureau of Investigation (FBI) and Rock Hill Police Department began to investigate a group of defendants who were obtaining large amounts of cocaine, methamphetamine, heroin, and marijuana from a distributor in Southern California. Based upon the investigation, the police were able to determine that members of the group were flying to California and having the drugs shipped back to the Rock Hill and Charlotte, N.C. area. Specifically, Caldwell was a member of the group and helped other members obtain flights to California to purchase the illegal substances. Caldwell also flew to California to purchase illegal substances for other members of the group and orchestrated shipping the packages back. After the drugs were shipped back to South Carolina, the group distributed the drugs to local dealers. Later, the group began ordering fentanyl from California which they used to make fentanyl-laced pills which were sold to users in Rock Hill, Greenville, Myrtle Beach, Charlotte, N.C., and Atlanta, Ga. This group shipped more than 255 packages from California and distributed more than five kilograms of cocaine, 280 grams or more of crack cocaine, 500 grams or more of methamphetamine, 400 grams or more of fentanyl, one kilogram or more of heroin, and more than a 1000 grams of marijuana. Eighteen defendants were charged in this case. Thirteen defendants have pled guilty, including Caldwell, to their involvement. Five defendants are awaiting trial.
United States District Judge Mary Geiger Lewis sentenced Caldwell to 300 months imprisonment, to be followed by 10 years of court-ordered supervision. There is no parole in the federal system.
This case 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. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was investigated by the FBI, Rock Hill Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosive (ATF), Drug Enforcement Administration (DEA), Internal Revenue Service (IRS), York County Sheriff’s Office, and Richland County Sheriff’s Department.
Assistant U.S. Attorneys William K. Witherspoon, Elliott Daniels, Elle Klein, and Special Assistant U.S. Attorney Lamar Fyall of the Columbia office prosecuted the case.
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Remaining Members of Indianapolis Methamphetamine and Heroin Trafficking Organization Sentenced to Federal PrisonRead the Press Release
INDIANAPOLIS – Jovan Stewart, 33, and Dwyatt Harris, 45, both of Indianapolis, were sentenced to 250 and 120 months, respectively, in federal prison, after both pleaded guilty to conspiracy to distribute controlled substances.
According to court documents, Stewart and Harris were members of a methamphetamine and heroin trafficking organization that operated in the Indianapolis area from the summer of 2019 through March 19, 2020. The organization was led by Christopher Tate, also a resident of Indianapolis, who coordinated the receipt of methamphetamine and heroin from different sources and organized the distribution of the controlled substances in Indianapolis. Tate was previously sentenced to 400 months in prison, by Chief Judge Tanya Walton Pratt, following his conviction at a jury trial. Stewart served as Tate’s top lieutenant, driving Tate to distribute controlled substances, delivering controlled substances to Tate’s customers at Tate’s direction, and sometimes coordinating with Tate’s sources of supply to obtain the controlled substances. Harris was a lower-level member of the conspiracy. Harris transported controlled substances from Indianapolis to Silver Lake, Ind., for Sandra Kellogg, who served as one of Tate’s methamphetamine distributors. The investigation resulted in the indictment and conviction of thirteen defendants for their roles in the organization’s drug trafficking activity.
Other noteworthy sentences included the following:
Defendant
Charges(s)
Sentence
Robert Hinton, 35, of Indianapolis
Conspiracy to distribute controlled substances
121 months
Sandra Kellogg, 41, of Silver Lake, Ind.
Conspiracy to distribute controlled substances and possession of methamphetamine with intent to distribute
288 months
Eric Poore, a/k/a Hollywood, 45, of Indianapolis
Conspiracy to distribute controlled substances
215 months
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana; Michael Gannon, Assistant Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Indianapolis Field Office; Justin Campbell, Special Agent in Charge of the Internal Revenue Service (IRS) Criminal Investigation Chicago Field Office; and Randal Taylor, Chief of the Indianapolis Metropolitan Police Department (IMPD) made the announcement.
DEA, IRS Criminal Investigation, Indianapolis Metropolitan Drug Task Force, and IMPD investigated the case. The sentence was imposed by U.S. District Chief Judge Tanya Walton Pratt. As part of the sentence, Judge Pratt ordered that Stewart and Harris each be supervised by the U.S. Probation Office for five years following their release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Bradley Blackington who prosecuted this 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.
Real Estate Consultant Sentenced for Tax Crimes in Kickback SchemeRead the Press Release
A Michigan real estate consultant and accountant was sentenced today to 18 months in prison for filing false tax returns with the IRS that omitted more than $800,000 in income, most of which he earned from a kickback scheme.
According to court documents and statements made in court, Steven A. Mills, currently of Harbor Springs and formerly of East Lansing, operated Mills Real Estate Consulting LLC. Through his consulting business, Mills was retained by a corporation to supervise several outside real estate agents hired by the corporation and paid substantial commissions. From 2012 to 2015, Mills demanded and received approximately $577,000 in kickbacks from one of these agents, which he did not report as income on his tax returns. Mills also did not report all of the income he received from the corporation, nor did he report $100,000 in compensation he received from a real estate developer for the years 2013 to 2015.
In addition to the term of imprisonment, U.S. District Judge Paul L. Maloney ordered Mills to serve one year of supervised release and to pay $297,858 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Mark A. Totten for the Western District of Michigan made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorneys Kenneth Vert and Jeffrey McLellan of the Tax Division and Assistant U.S. Attorney Ronald Stella of the Western District of Michigan prosecuted the case.
Readout of ATF Officials Briefing to Attorney General Merrick B. Garland and ATF Director Steven M. Dettelbach on Efforts to Stem Gun ViolenceRead the Press Release
One year after the announcement of cross-jurisdictional strike forces, Attorney General Merrick B. Garland and ATF Director Steven M. Dettelbach were briefed by senior ATF officials on ongoing efforts to help reduce gun violence through the disruption of illegal firearms trafficking in key regions across the country.
Yesterday, ATF senior officials from Los Angeles, San Francisco, Chicago, New York, Philadelphia, and Washington D.C. joined the ATF Director at a briefing with Attorney General Garland held at Justice Department headquarters.
In July 2021, the Department announced the formation of cross-jurisdictional strike forces to help reduce gun violence by disrupting illegal firearms trafficking in key regions across the country.
ATF Special Agents in Charge described the strike forces’ work on several high impact investigations that identified and prosecuted individuals who illegally trafficked firearms from source cities, through other communities, and into major urban areas where they were often discovered at crime scenes or in the possession of violent actors. They noted that these strike forces have fostered cross-jurisdictional partnerships, cooperation and intelligence sharing among federal, state, local, Tribal, and territorial law enforcement, and led to the ultimate disruption of trafficking corridors.
In addition, the strike forces have encouraged partners’ participation in the National Integrated Ballistic Information Network (NIBIN), as the ATF has continued to expand NIBIN’s presence and availability. The ATF conducted over 600,000 traces, and over 8,500 urgent traces from July 2021 to July 2022. ATF field offices in strike force areas seized over 7,700 firearms in the same period.
The strike forces represent one important, concrete step in implementing the Department’s Comprehensive Violent Crime Reduction Strategy, which was announced on May 26, 2021. The comprehensive strategy supports local communities in preventing, investigating, and prosecuting gun violence and other violent crime — and requires U.S. Attorneys’ offices to work with federal, state, local, and tribal law enforcement, as well as the communities they serve, to address the most significant drivers of violence in their districts. In guidance to federal agents and prosecutors as part of that comprehensive strategy, the Deputy Attorney General made clear that firearms traffickers providing weapons to violent offenders are an enforcement priority across the country.
Reading Man Indicted for Trafficking MethamphetamineRead the Press Release
WILLIAMSPORT- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Daniel Michael Gomez, age 27, of Reading, Pennsylvania was indicted by a federal grand jury on drug trafficking charges.
According to United States Attorney Gerard M. Karam, the indictment alleges that Gomez trafficked 50 grams and more of methamphetamine in Shamokin, Northumberland County. The indictment charges Gomez with distributing methamphetamine on July 6, 2022, and with possessing additional methamphetamine with intent to distribute on July 13, 2022.
The case was investigated by the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), the Northumberland County Drug Task Force, the Pennsylvania State Police, the Bloomsburg Police Department, the Sunbury Police Department, the Shamokin Police Department, and the Coal Township Police Department. Assistant U.S. Attorney George J. Rocktashel is prosecuting 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.
This case was also 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.
The maximum penalty under federal law for each offense is 40 years’ imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Randolph County woman sentenced for drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – Cheyenne Mary Katherine Winning, of Montrose, West Virginia, was sentenced today to 30 months of incarceration for a drug charge, United States Attorney William Ihlenfeld announced.
Winning, 30, pleaded guilty in February 2022 to one count of “Distribution of Methamphetamine—Aiding and Abetting.” Winning admitted to selling methamphetamine in November 2020 in Randolph County.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Mountain Region Drug Task Force investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Raleigh County Woman Pleads Guilty to Federal Drug CrimeRead the Press Release
BECKLEY, W.Va. – A Raleigh County woman pleaded guilty today to distributing a quantity of heroin.
According to court documents and statements made in court, Athena Grizzle, 37, admitted to selling a quantity of heroin to a confidential informant at a Shady Spring residence where she was staying on October 15, 2020. The West Virginia State Police Forensic Laboratory confirmed the controlled substance contained heroin and fentanyl.
Grizzle is scheduled to be sentenced on December 9, 2022, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million 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 Beckley/Raleigh County Drug and Violent Crime Unit. The Beckley/Raleigh County Drug and Violent Crime Unit consists of officers from the West Virginia State Police, the Raleigh County Sheriff’s Department, and the Beckley Police Department.
United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney Alex Hamner 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. 5:22-cr-12.
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Raleigh County Man Sentenced to More than 10 Years in Prison for Attempting to Entice a Minor to Produce Child PornographyRead the Press Release
BLUEFIELD, W.Va. – A Raleigh County man was sentenced today to 10 years and one month in prison, to be followed by 15 years of supervised release, for attempted enticement of a West Virginia minor to engage in sexual activity. Kenneth Owens, 58, of Surveyor, must also register as a sex offender.
A federal jury found Owens guilty of attempted enticement of a minor on April 7, 2022. Evidence at trial established that Owens attempted to entice a 15-year-old female relative to take and send him sexually explicit photos of herself from April 1, 2020 through Jan. 12, 2021. Owens provided the minor with cigarettes, vapes and alcohol in exchange for the images. Owens initially communicated with the minor female relative through Facebook, and then by cell phone.
United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), the West Virginia State Police Internet Crimes Against Children (ICAC) Task Force, and the Beckley Police Department.
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorneys Kristin Scott and Steve Loew prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:21-cr-236.
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Pittsburgh Heroin Dealer Sentenced to Life in Prison Plus 80 Years for Murdering a Federal WitnessRead the Press Release
PITTSBURGH – Price Montgomery has been sentenced in federal court to life in prison plus 80 years after having been found guilty at trial of retaliation against a witness by murder for the killing of Tina Crawford, attempted murder to silence a witness for the shooting of Patsy Crawford, use of a firearm during a federal crime of violence, conspiracy to distribute more than one kilogram of heroin, and money laundering, United States Attorney Cindy K. Chung announced today.
Chief United States District Judge Mark R. Hornak imposed the sentence on Montgomery, 42, previously of the Pittsburgh’s Mount Washington section.
Evidence presented during a two-week jury trial in 2018 established that, from April 2013 until June 2014, in the Western District of Pennsylvania and elsewhere, Montgomery and co-defendant James Perrin conspired to distribute large quantities of heroin. On June 8, 2014, Montgomery and Perrin, who both had prior felony convictions, possessed 16 firearms in furtherance of that drug trafficking crime. Montgomery also conspired to commit money laundering by using the proceeds of his illegal drug trafficking to purchases items, including cars and lease-to-purchase agreements on homes. Finally, the evidence proved that approximately an hour before Tina Crawford was scheduled to appear at the U.S. Attorney’s Office to discuss her role as a courier in the Montgomery drug distribution organization, Price Montgomery shot and killed her and severely wounded her mother, Patsy, in the garage area of the Hill District home they shared.
“Price Montgomery, a heroin dealer and convicted felon who illegally possessed firearms, murdered Tina Crawford because she was a federal witness. Montgomery killed Crawford and severely wounded her mother just as they were walking to their car to drive to the U.S. Attorney’s Office for an interview,” said U.S. Attorney Chung. “We hope that this prosecution brought justice and closure for the Crawford family. This prosecution also served to preserve the integrity of our justice system by prosecuting to the full extent of the law a murder aimed at silencing a witness.”
“This sentencing sends a clear message to anyone who chooses to commit murder, especially a murder which directly impacts the fabric of our justice system,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Office. “There is no sentence that can ease the pain of the victim’s family, but this case highlights the impact multiple agencies can have when they join forces to make certain justice is served.”
“The extreme violence that Montgomery demonstrated through the murder of Tina Crawford and the shooting of her mother is absolutely reprehensible,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “Anyone who harms, or attempts to harm, a federal witness will experience the full consequences of federal criminal prosecution. For Crawford’s murder and his drug-trafficking and firearms activities, Montgomery will well-deservedly spend the rest of his life in a federal prison cell.”
“Today’s sentencing holds Price Montgomery accountable for the worst of crimes,” said Yury Kruty, Special Agent in Charge of IRS-Criminal Investigation. “The Special Agents of IRS-CI are adept at tracing the illegal proceeds involved in drug trafficking organizations. We will continue to provide our financial expertise as we work hand in hand with our law enforcement partners to bring criminals like this to justice.”
“There was great collaboration between local and federal law enforcement agencies in finding this fugitive who was on the run for several months after shooting and killing this innocent female witness,” added Phil Cornelious, Acting United States Marshal for the Western District of Pennsylvania.
“Price Montgomery will spend the rest of his life in prison for committing this heinous murder. Let this case send a clear message -- anyone who seeks to interfere in a prosecution and bring harm to a witness will face the full force of the law,” said Attorney General Josh Shapiro.
“The sentence for Price Montgomery demonstrates a steadfast commitment to justice and underscores the responsibility of all of our law enforcement partners to continue to work together - no matter how much time has passed - to ensure that the families of victims of violent crime receive the redress they deserve,” said Acting Pittsburgh Police Chief, Thomas Stangrecki.
Assistant United States Attorneys Heidi M. Grogan and Shaun E. Sweeney prosecuted this case on behalf of the government.
U.S. Attorney Chung commended the Western Pennsylvania Office of the Bureau of Alcohol, Tobacco, Firearms & Explosives, the IRS Criminal Investigation Division, the Drug Enforcement Administration, the U.S. Marshals Service, the Pennsylvania Office of the Attorney General and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Price Montgomery.
New Orleans Man Sentenced to 130 Months for Selling Narcotics and Gun Possession in Furtherance of Drug TraffickingRead the Press Release
NEW ORLEANS, LOUISIANA – On Wednesday, July 20, 2022, United States District Judge Jane Triche Milazzo sentenced JOSH TAPP, age 35, a resident of New Orleans, to 130 months in the Bureau of Prisons for conspiring to distribute and possess with the intent to distribute a quantity of heroin, in violation of Title 21, United States Code, Sections 841 and 846, and possessing an AK-47 in furtherance of drug trafficking, in violation of Title 18, United States Code, Section 924(c). TAPP will be on supervised release for three years following his release from prison and must pay a $200 mandatory special assessment fee.
TAPP pleaded guilty on October 19, 2021. In his factual basis, TAPP admitted to regularly supplying heroin to another member of his drug trafficking conspiracy who would then sell the heroin in Hollygrove neighborhood of New Orleans
Pursuant to an indictment in this case, law enforcement agents attempted to arrest TAPP at his home in Slidell, Louisiana, on February 26, 2019. Upon learning of the police presence, TAPP barricaded the front door, forcing agents to enter through the rear of the house. After detaining TAPP, agents located an AK-47, scales, baggies, multiple pressing devices, blenders, and substances used to cut heroin.
TAPP was already on federal supervised release for a previous drug conviction at the time of his arrest in this case.
This case was brought as part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U. S. Attorney Evans praised the work of the Federal Bureau of Investigation’s New Orleans Gang Task Force. The prosecution is being handled by Assistant United States Attorneys Myles Ranier and Kathryn McHugh.
New Orleans Man Sentenced for Conspiring to Stage Automobile Accident in Order to Defraud Insurance and Trucking CompaniesRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that LARRY WILLIAMS (“WILLIAMS”), age 49, of New Orleans, was sentenced today for Conspiracy to Commit Wire Fraud, in violation of Title 18, United States Code, Section 371, arising out of a staged automobile accident with a tractor-trailer occurring in New Orleans. Thus far, the total number of defendants convicted in “Operation Sideswipe” is thirty-eight (38).
According to documents filed in federal court, WILLIAMS admitted he conspired with Damian Labeaud (“Labeaud”), Mario Solomon (“Solomon”), and Genetta Isreal (“Isreal”) to stage an accident on June 12, 2017, that occurred on Chef Menteur Highway near the Danziger Bridge in New Orleans. Labeaud and WILLIAMS planned to stage an automobile accident to obtain money through fraud. During their planning, Labeaud told WILLIAMS that he had an attorney who would handle everything. WILLIAMS recruited Isreal and another individual (now deceased) to participate in the fraudulent scheme. WILLIAMS then borrowed a Chevrolet Trailblazer, and Labeaud operated the Trailblazer to collide with a 2015 Peterbilt tractor-trailer. After the staged accident, Labeaud fled the scene and WILLIAMS got behind the wheel to make it appear that he was operating the Trailblazer during the staged accident. Solomon picked up Labeaud after the staged accident. WILLIAMS told the New Orleans Police Department that he was the driver of the Trailblazer and that the tractor-trailer was at fault. After the staged accident, Labeaud introduced WILLIAMS and Isreal to Attorney A.
WILLIAMS and Isreal were treated by doctors and healthcare providers at the direction of Attorney A. Attorney A told WILLIAMS that he would get more money if he had shoulder surgery. On June 12, 2018, Attorney A’s law partner, Attorney B, filed the Larry Williams lawsuit in Civil District Court (“CDC”) for the Parish of Orleans and on September 14, 2018, Attorney B demanded approximately $60,000.00 in settlement for the deceased passenger and approximately $56,155.00 in settlement for Isreal. After the suit was filed, WILLIAMS and Isreal each provided false testimony in depositions taken in conjunction with the lawsuit filed by Attorney B.
United States District Judge Eldon Fallon sentenced WILLIAMS to 3 months imprisonment followed by 3 years of supervised release. Additionally, WILLIAMS was ordered to pay a mandatory $100 special assessment fee and restitution of $28,816.64. Restitution was imposed jointly and severally with the other co-conspirators.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Federal Bureau of Investigation, Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit; Assistant U.S. Attorney Maria Carboni; Assistant U.S. Attorney Edward Rivera, and Assistant U.S. Attorney Brandon Long.
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New Orleans Man Pleads Guilty to Violating the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA –KAREEM MADISON, age 28, a resident of New Orleans, Louisiana, pled guilty today before United States District Judge Susie Morgan to an indictment charging him with being a convicted felon in possession of a firearm in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), announced U.S. Attorney Duane A. Evans.
According to court documents, on December 9, 2021, MADISON and co-defendant Kyle Armstrong were stopped by law enforcement after using a United States Postal Service (“USPS”) “Arrow Key” to make unlawful entry into three blue collection boxes at the Metairie Main Post Office located in Metairie, LA. Armstrong removed the U.S. mail articles from the boxes and placed them into a duffel bag while MADISON stood near the corner of a nearby strip mall. After stopping the vehicle, law enforcement observed a black Glock Model 26 handgun with an extended magazine lying on the ground just below the driver's door of the vehicle where MADISON was sitting. Investigators also observed a black Adidas duffel bag containing a significant amount of U.S. mail matter on the floorboard of the vehicle. A search of the black duffel bag led to the discovery of approximately 424 pieces of stolen U.S. mail and approximately 20 checks stolen from the Greater New Orleans area and Metairie. Prior to this, MADISON knew he had been convicted of a crime punishable by imprisonment for a term exceeding one year.
MADISON faces a maximum term of (10) years imprisonment, followed by up to three (3) years of supervised release, up to a $250,000.00 fine, and a mandatory special assessment fee of $100.00.
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.
U.S. Attorney Evans praised the work of the U.S. Postal Service Inspection Service and Jefferson Parish Sheriff’s Office in investigating this matter. Assistant U. S. Attorneys Rachal Cassagne and Dall Kammer are in charge of the prosecution.
New Orleans Man Pleads Guilty to Theft of Mail and Unlawful Possession of a Postal KeyRead the Press Release
NEW ORLEANS, LOUISIANA – KYLE ARMSTRONG, age 20, a resident of New Orleans, Louisiana, pled guilty on July 20, 2022 before United States District Judge Susie Morgan to an indictment charging him with theft or receipt of stolen mail matter in violation of Title 18, United States Code, Sections 1708 and 2 and with unlawful possession of a postal key in violation of Title 18, United States Code, Sections 1704 and 2, announced U.S. Attorney Duane A. Evans.
According to court documents, on December 9, 2021, ARMSTRONG and co-defendant Kareem Madison were stopped by law enforcement after using a United States Postal Service (“USPS”) “Arrow Key” to make unlawful entry into three blue collection boxes at the Metairie Main Post Office located in Metairie, LA. ARMSTRONG removed the U.S. mail articles from the boxes and placed them into a duffel bag while Madison stood near the corner of a nearby strip mall. After stopping the vehicle, law enforcement observed a black Adidas duffel bag containing a significant amount of U.S. mail matter on the floorboard of the vehicle. A search of the black duffel bag led to the discovery of approximately 424 pieces of stolen U.S. mail and approximately 20 checks stolen from the Greater New Orleans area and Metairie.
For count 1, ARMSTRONG faces a maximum term of five (5) years imprisonment, followed by up to three (3) years of supervised release, up to a $250,000.00 fine, and a mandatory special assessment fee of $100.00. For count 2, ARMSTRONG faces a maximum term of ten (10) years imprisonment, followed by up to three (3) years of supervised release, up to a $250,000.00 fine, and a mandatory special assessment fee of $100.00.
U.S. Attorney Evans praised the work of the U.S. Postal Service Inspection Service and Jefferson Parish Sheriff’s Office in investigating this matter. Assistant U. S. Attorneys Rachal Cassagne and Dall Kammer are in charge of the prosecution.
My Big Coin Founder Convicted of Cryptocurrency Fraud SchemeRead the Press Release
A federal jury convicted a New York man today in connection with a scheme to defraud investors by marketing and selling fraudulent virtual currency.
According to court documents and evidence presented at trial, Randall Crater, 51, of East Hampton, founded My Big Coin Pay Inc. (My Big Coin), a purported cryptocurrency and virtual payment services company headquartered in Las Vegas, Nevada, and offered virtual payment services through a fraudulent digital currency, “My Big Coins,” which he marketed to investors between 2014 and 2017 using misrepresentations about the nature and value of Coins. Crater and his associates falsely claimed that Coins was a fully functioning cryptocurrency backed by $300 million in gold, oil and other valuable assets. Crater also falsely told investors that My Big Coin had a partnership with MasterCard and that Coins could readily be exchanged for government-backed paper currency or other virtual currencies. Crater promulgated these misrepresentations through social media, the internet, email and text messages.
In reality, Coins were not backed by gold or other valuable assets, did not have a partnership with MasterCard and were not readily transferable. Over the course of the scheme, Crater misappropriated over $6 million of investor funds for his own personal gain, including spending hundreds of thousands of dollars on antiques, artwork and jewelry.
In January 2018, the Commodity Futures Trading Commission (CFTC) announced commodity fraud charges against Crater and My Big Coin Pay Inc. The CFTC also filed civil charges against the Chief Executive Officer of My Big Coin, John Roche, and two of Crater’s associates Mark Gillespie and Michael Kruger.
Crater was convicted of four counts of wire fraud, which carries a maximum statutory penalty of up to 20 years in prison for each count, and three counts of money laundering, which carries a maximum statutory penalty of up to 10 years in prison for each count. He is scheduled to be sentenced on Oct. 27. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Rachael Rollins for the District of Massachusetts, Special Agent in Charge Joseph R. Bonavolonta of the FBI’s Boston Field Office and Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) made the announcement.
The FBI, USPIS, and CFTC investigated the case.
Trial Attorney Babasijibomi Moore of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Christopher J. Markham for the District of Massachusetts are prosecuting the case.
My Big Coin Founder Convicted of Cryptocurrency Fraud SchemeRead the Press Release
BOSTON – The founder of My Big Coin Pay Inc., (My Big Coin) a purported cryptocurrency and virtual payment services company headquartered in Las Vegas, Nev., was convicted by a federal jury today in connection with a scheme to defraud investors by marketing and selling fraudulent virtual currency.
Randall Crater, 51, of East Hampton, N.Y., was convicted of four counts of wire fraud, three counts of unlawful monetary transactions, and one count of operating an unlicensed money transmitting business. U.S. District Court Judge Denise J. Casper scheduled sentencing for Oct. 27, 2022. Crater was arrested and charged in February 2019.
“Fraud is fraud. Mr. Crater preyed on investors and offered them false opportunities in the expanding cryptocurrency marketplace to swindle them out of millions of dollars for his own personal use,” said United States Attorney Rachael S. Rollins. “Mr. Crater saw the burgeoning popularity of crypto as a chance to get rich quick through an unscrupulous fraud scheme cloaked by flashy marketing tactics and outright lies. In the end, he is just another fraudster who made his way into the booming world of cryptocurrency. My office will continue to pursue criminals who seek to exploit and victimize investors with proposals based in fraud and deceit. Today’s conviction sends a clear message that we are monitoring the digital currency realm and bad actors will be found and prosecuted.”
“Cryptocurrency scams are on the rise, and today’s verdict proves that Randall Crater orchestrated one when he deceived and defrauded unsuspecting investors out of more than $6 million which he spent on luxury items for himself, including artwork, antiques, and jewelry,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “The FBI works diligently to investigate this type of fraud and we thank the jury for their verdict today, and for sending a clear message of the consequences of such greed.”
“The defendant preyed on victims with what appeared to be an unstoppable rise in cryptocurrency values, when in reality investors were only funding his lavish lifestyle,” said Eric Shen, Inspector in Charge of the U.S. Postal Inspection Service’s Criminal Investigations Group. “The U.S. Postal Inspection Service is proud to work on these complex fraud cases, alongside its federal law enforcement partners, to ensure criminals are brought to account.”
Crater founded My Big Coin in 2013, offering virtual payment services through a fraudulent digital currency, “My Big Coins,” which he marketed to investors between 2014 and 2017 using misrepresentations about the nature and value of Coins. Crater and his associates falsely claimed that Coins were a fully functioning cryptocurrency backed by $300 million in gold, oil and other valuable assets. Crater also falsely told investors that My Big Coin has a partnership with MasterCard and that Coins could readily be exchanged for government-backed paper currency or other virtual currencies. Crater promulgated these misrepresentations through social media, the internet, email and text messages.
In reality, Coins were not backed by gold or other valuable assets, did not have a partnership with MasterCard and were not readily transferable. Over the course of the scheme, Crater misappropriated over $6 million of investor funds for his own personal gain and spending on goods, including hundreds of thousands of dollars’ worth of expenses on antiques, artwork and jewelry.
In January 2018, the Commodity Futures Trading Commission (CFTC) announced commodity fraud charges against Crater and My Big Coin Inc. The CFTC also filed civil charges against the Chief Executive Officer of My Big Coin, John Roche, and two of Crater’s associates Mark Gillespie and Michael Kruger. The civil action was stayed on March 8, 2019, pending resolution of the criminal case.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss. The charges of unlawful monetary transactions provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000, or twice the value of the criminally derived property. The charge of operating an unlicensed money transmitting business provides for a maximum sentence of five years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss. 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, Kenneth A. Polite, Jr., Assistant Attorney General of the Justice Department’s Criminal Division, FBI SAC Bonavolonta and USPIS Inspector in Charge Shen made the announcement today. The CFTC also provided valuable assistance with the matter. Assistant U.S. Attorney Christopher J. Markham, of Rollins’ Securities, Financial & Cyber Fraud Unit, and Trial Attorney Babasijibomi Moore of the Criminal Division’s Fraud Section are prosecuting the case.
Mexican drug smuggler sentenced for poly-drug case at borderRead the Press Release
McALLEN, Texas – A 58-year-old Mexican national has been ordered to prison for knowingly and intentionally importing cocaine and meth into the United States from Mexico, announced U.S. Attorney Jennifer B. Lowery.
Francisco Garduno Bobadilla pleaded guilty April 29.
Today, U.S. District Judge Micaela Alvarez ordered Bobadilla to serve 63 months in federal prison. Not a U.S. citizen, Bobadilla is expected to face removal proceedings following his imprisonment. In handing down the sentence, the court noted that if someone agrees to involve themselves in a crime, even if only moments before it happens, they are still held liable.
Bobadilla arrived at the Hidalgo Port of Entry Feb. 1, 2021, driving a red Dodge Avenger. There, a K-9 alerted to the presence of narcotics hidden inside the vehicle.
Authorities sent him to secondary inspection where they soon found bundles of cocaine and meth hidden within the panels of his vehicle.
The drugs had a combined weight of 13 kilograms – 11 and two kilograms for the meth and cocaine, respectively, with an estimated street value over $100,000.
Bobadilla will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney M. Alexis Garcia prosecuted the case.
Mercer County Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
BLUEFIELD, W.Va. – A Mercer County man was sentenced today to two years and six months in prison, to be followed by three years of supervised release, for distribution of hydromorphone.
According to court documents and statements made in court, Eric Hendricks, 46, of Bluefield, admitted he sold four hydromorphone pills for $100 to a confidential informant in the Bluefield area on February 26, 2018. Hendricks further admitted to selling four hydromorphone pills to a confidential informant on February 21, 2018, and again on March 7, 2018.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Southern Regional Drug and Violent Crime Task Force.
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney John L. File prosecuted 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. 1:18-cr-90.
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Mercer County Man Sentenced to Prison for Child Pornography CrimeRead the Press Release
BLUEFIELD, W.Va. – A Mercer County man was sentenced today to six years and six months in prison, to be followed by 20 years of supervised release, for possessing child pornography.
According to court documents and statements made in court, on November 17, 2021, law enforcement officers executed a search warrant at the Bluefield residence of Christopher Paul Knight, 56, and seized a laptop computer. A forensic review of the computer revealed more than 1,000 image and video files of suspected child pornography. Knight admitted to downloading and possessing the images and videos of child pornography, which included prepubescent minors engaged in sexual intercourse and other sexually explicit conduct.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) Violent Crimes Against Children Task Force.
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Jennifer Rada Herrald prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:21-cr-262.
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Maryland man guilty of firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Jamal Dashawn Harris, of Baltimore, Maryland, has admitted to a firearms charge, United States Attorney William Ihlenfeld announced.
Harris, 29, pleaded guilty today to one count of “Unlawful Possession of Firearm.” Harris, a person prohibited from having firearms, admitted to having a .22 magnum in September 2021 in Berkeley County.
Harris faces up to 10 years of incarceration and a fine of up to $250,000. 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 Bureau of Alcohol, Tobacco, Firearms, & Explosives investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Manchester Man Sentenced to 42 Months for Conspiring to Distribute CocaineRead the Press Release
CONCORD – Timothy Spaulding, 23, of Manchester, was sentenced today to 42 months in federal prison in connection with his role in a cocaine distribution conspiracy, United States Attorney Jane E. Young announced.
According to court documents and statements made in court, on May 6, 2021, law enforcement officers executed a search warrant on a hotel room where Spaulding was staying with his girlfriend. During the search of the hotel room, law enforcement officers located a black backpack containing documents and receipts in the name of the defendant, a scale and 45.9 grams of cocaine. A 9mm pistol was also located on a table in the room. Law enforcement executed a search warrant on Spaulding’s phone and retrieved messages about drug distribution.
Spaulding previously pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute cocaine on February 9, 2022.
“Drug dealers who have access to guns threaten the safety of our communities,” said U.S. Attorney Young. “This federal sentence reflects the dangerous combination that drugs and guns pose to the community. We are working closely with the Manchester Police Department to prosecute drug dealers who have access to guns and destroy communities with their drugs.”
“This case is a prime example of the focused policing efforts the Manchester Police Department and our partners are undertaking as part of our CompStat360 Gun Violence Reduction Strategy,” said Manchester Chief of Police Allen Aldenberg. “Timothy Spaulding represents the dangerous offenders we are targeting in Manchester. Drug sales and associated gun violence are a top priority and coordinated efforts with our federal partners at the FBI and US Attorney’s Office significantly impact community safety in Manchester.”
This matter was investigated by Manchester Police Department with the assistance of the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorneys Anna Krasinski and Debra M. Walsh.
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Luzerne County Woman Charged with Tax FraudRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Madeline Nieves, age 48, of Plains, Pennsylvania, was indicted by a federal grand jury on tax fraud and conspiracy offenses.
According to United States Attorney Gerard M. Karam, the indictment alleges that Nieves conspired with other individuals to defraud the Internal Revenue Service (IRS), in connection with a temporary staffing company, Encore Staffing Solutions LLC (Encore), that she and her coconspirators owned and operated. Encore leased temporary employees to manufacturing businesses throughout Pennsylvania. Nieves also was charged with 10 counts of failing to report Encore employee wages to the IRS, resulting in approximately $67,000 in employment taxes owed, but never paid, by Encore to the IRS. Nieves further was charged with three counts of tax evasion, for failing to report her own personal income from Encore. The tax fraud activities allegedly occurred between 2018 and 2020.
Two other individuals were previously convicted in this investigation and await sentencing:
- Mark Holmes, age 66, of Hughes Springs, Texas, pleaded guilty to failing to remit approximately $135,000 in employment taxes to the IRS that were owed by Encore. Holmes also pleaded guilty to accepting, as the General Manager of a Pennsylvania food services company, approximately $400,000 in bribes and kickbacks from two temporary staffing companies, one of which was Penns Independent Staffing, in exchange for hiring their employees. The two temporary staffing companies, in turn, received approximately $7,800,000 from Holmes’s employer.
- Nari Lam, age 29, of Wilmington, Delaware, pleaded guilty to failing to remit employment taxes to the IRS. From 2016 through 2020, Lam, the owner of Pennsylvania-based temporary staffing company Penns Independent Staffing, failed to pay approximately $300,000 in employment taxes owed by Penns Independent Staffing to the IRS.
The case was investigated by the IRS Criminal Investigations Division. The case is being prosecuted by Assistant U.S. Attorney Phillip J. Caraballo.
The maximum penalty under federal law for each offense is five years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Lost Nation Man Sentenced to Federal Prison for Drug and Firearm ChargeRead the Press Release
DAVENPORT, Iowa – On July 19, 2022, a Lost Nation, Iowa man, Gary Dale Smith, age 50, was sentenced to 126 months in prison for Possession with Intent to Distribute 50 Grams or More of Methamphetamine and Felon in Possession of a Firearm or Ammunition. Following his prison term, Smith was ordered to serve five years of supervised release. Smith pleaded guilty in February 2022.
In June 2021, Clinton County Sheriff’s deputies observed stolen items on Smith’s property. Deputies obtained a search warrant and recovered the stolen property. Upon their arrival, deputies observed Smith run into an outbuilding and found Smith in possession of a knife, a firearm, and methamphetamine. Deputies obtained an additional search warrant for an RV on the property, in which Smith resided, and located approximately 100 grams of methamphetamine, ammunition, a money counter, a video surveillance system, and other evidence of drug trafficking. Defendant had prior drug trafficking-related convictions in Arizona and Illinois, which prohibited him from possessing a firearm.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement.
The Clinton County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case.
Local woman admits to sending meth-laced mail into federal detention centerRead the Press Release
CORPUS CHRISTI, Texas – A 55-year-old woman has pleaded guilty to mailing meth-laced papers disguised as mail to the Coastal Bend Detention Center (CBDC), announced U.S. Attorney Jennifer B. Lowery.
Gail Hostetter, Corpus Christi, pleaded guilty to knowingly and intentionally possessing and attempting to provide meth to an inmate.
On Jan. 29, 2021, Hostetter mailed a letter purporting to be from a local law firm to an inmate at CBDC. However, facility staff intercepted it and sent it for testing. The mail tested positive for meth. Law enforcement subsequently executed a search warrant on Hostetter’s residence where they found additional empty envelopes pre-addressed from various local law firms.
The investigation revealed the inmate devised the plan and recruited Hostetter among others to mail meth-laced papers into the detention center. The scheme involved creating envelopes designed to look like legal mail.
As part of her plea, Hostetter admitted to mailing meth into a jail facility on at least one other occasion.
U.S. District Judge Nelva Gonzales Ramos will impose sentencing Oct. 18. At that time, Hostetter faces up to 20 years in federal prison and a possible $250,000 maximum fine.
She has been and will remain in custody pending that hearing.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Homeland Security Investigations conducted the investigation with the assistance of the U.S. Marshals Service, The GEO Group, Drug Enforcement Administration, Corpus Christi Police Department, U.S. Postal Inspection Service, Bureau of Prisons and FBI Miami Task Force. Assistant U.S. Attorney Christopher Marin and John Marck are prosecuting the case.
Linn County Drug Dealer Sentenced to Federal PrisonRead the Press Release
EUGENE, Ore.—A Linn County, Oregon man was sentenced to federal prison today after he sold methamphetamine and a firearm to an undercover federal agent while on federal supervised release for a previous conviction.
Roger Lee Bishop, 56, a resident of Sweet Home, Oregon, was sentenced to 84 months in federal prison and five years of supervised release.
According to court documents, in August 2019, law enforcement learned that Bishop, a convicted felon, was trafficking methamphetamine in Linn County and had access to firearms. On or about September 12, 2019, an undercover federal agent arranged to meet Mr. Bishop and an accomplice at a hotel in Corvallis, Oregon to purchase methamphetamine. Once Mr. Bishop entered the hotel room, he proceeded to sell approximately four ounces of methamphetamine to the agent. Following the drug sale, Bishop offered and sold a handgun to the agent for $150. On October 30, 2019, Bishop and his accomplice were arrested following a traffic stop as part of a joint local and federal law enforcement operation.
On October 24, 2019, Bishop was charged by criminal complaint with distributing methamphetamine and illegally possessing a firearm as a convicted felon. Later, on February 18, 2021, a federal grand jury in Eugene indicted Bishop on the same charges. On March 24, 2022, Bishop pleaded guilty to both charges.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) with assistance from the Philomath Police Department, the Linn Interagency Narcotics Enforcement Team (LINE), and the Sweet Home Police Department. Assistant U.S. Attorney William M. McLaren prosecuted the case.
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.
Kansas Cattleman Indicted for Alleged Financial CrimesRead the Press Release
TOPEKA, KAN. – A federal grand jury in Topeka returned an indictment charging a Kansas man with one count of criminal conversion, one count of forgery of United States obligations or securities, and one count of false statement to a federally insured bank.
According to court documents, Blaine Schurle, 26, of Barnes as operator of Double S Cattle Company, LLC is accused of allegedly selling approximately 400 head of cattle valued at more than $400,000 without authorization from the Farm Services Agency although FSA guidelines prohibit the sale of collateral in which the federal government agency has security interest without prior approval. Schurle is also accused of allegedly attempting to deposit a $13,452 check into his bank account that was issued to both him and FSA despite the check not being endorsed by FSA. A grand jury additionally indicted Schurle for allegedly failing to report his debt obligations to FSA while securing a bank loan for $45,450.
The defendant is scheduled for his initial court appearance July 21 at 1:30 p.m. before a U.S. Magistrate Judge of the U.S. District Court for the District of Kansas.
The U.S. Department of Agriculture, Office of Inspector General is investigating the case.
Assistant U.S. Attorney Christine Kenny is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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KC Man Sentenced for Illegal Firearm at Nightclub ShootingRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was sentenced in federal court today for illegally possessing a firearm during a shooting at a local nightclub.
Dana McCoy, 53, was sentenced by U.S. Chief District Judge Beth Phillips to seven years in federal prison without parole.
On Oct. 25, 2021, McCoy pleaded guilty to being a felon in possession of a firearm. This is McCoy’s third federal conviction for being a felon in possession of firearms; he was on federal supervised release at the time of this offense.
According to court documents, Kansas City police officers responded to the Rendezvous Lounge, 11816 Blue Ridge Blvd., at approximately 1:50 a.m. on March 14, 2021. Officers observed numerous vehicles with damage, with many shell casings on the street and sidewalk area in front of the nightclub. Officers also contacted a victim, identified in court documents as “A.J.,” who had a gunshot wound to the face and was transported to the hospital by emergency medical service. A.J. was unable to give a statement to law enforcement prior to being intubated.
Officers learned that a fight had broken out at the club, with the club’s security attempting to control the situation by spraying pepper spray into the crowd. During the commotion, gunfire started going off. A witness told officers that McCoy was standing by one of the club doors and shooting towards the parking lot, where several people were fleeing to escape the gunfire. The witness saw McCoy give a pistol to another person. Another witness, who also saw McCoy shooting a firearm, recorded a cell phone video that showed McCoy standing near the door of the lounge, holding a firearm.
McCoy admitted that he shot a firearm and gave it to another person, but could not identify the firearm. When officers searched the other person, they found a Glock .45-caliber handgun and a Smith and Wesson .40-caliber handgun.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. McCoy has two prior felony convictions for being a felon in possession of a firearm, and prior felony convictions for burglary, stealing, armed robbery on a military post, tampering with a motor vehicle, and the distribution, manufacturing or possession of a controlled substance,
This case was prosecuted by Assistant U.S. Attorney Maureen A. Brackett. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
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.
Jury Convicts Little Rock Man for Distributing Fentanyl That Resulted in DeathRead the Press Release
LITTLE ROCK—A federal jury convicted a Little Rock man who distributed the fentanyl that resulted in a person’s overdose death in early 2021. Following a three-day trial and after one hour of deliberation, the jury convicted Jemel Foster, 32, of four federal drug and firearm crimes, including distribution of fentanyl that resulted in death.
Foster was also convicted of possessing fentanyl with intent to distribute it, being a felon in possession of a firearm, and possessing a firearm in furtherance of a drug-trafficking crime.
The jury returned the verdict Wednesday evening to United States District Court Judge Billy Roy Wilson. Judge Wilson will sentence Foster, who remains in federal custody, at a later date. The statutory minimum sentence for the distribution of fentanyl resulting in death is 20 years, plus an additional minimum of five years for possessing the firearm in furtherance of a drug-trafficking crime.
“Drug crime is violent crime. We are very pleased with this verdict that demonstrates the importance of holding drug dealers accountable for the harm they inflict upon others,” stated United States Attorney Jonathan D. Ross. “The senseless death of a young woman is a tragic example of just how violent drug crimes can be, and the defendant who sold her the fentanyl that took her life will now be held accountable for his actions. Thank you to our law enforcement partners who have helped achieve justice in this case.”
On July 6, 2021, a grand jury charged Foster in a superseding indictment with the four counts he took to trial, all of which related to two January evenings in 2021.
The evidence at trial revealed that on the evening of January 11, 2021, a woman purchased fentanyl from Foster around 7:22 p.m. in the parking lot of a Little Rock Walgreen’s store. According to testimony from the medical examiner who conducted her autopsy, the woman died from a fatal dose of fentanyl around midnight that evening at her mother’s nearby home. After discovering her body the next morning, the woman’s family contacted the Little Rock Police Department, and eventually the Drug Enforcement Administration (DEA). At trial, the DEA agents involved in the case explained how they were able to identify Foster as the source of the fatal fentanyl from data in the victim’s phone.
The DEA, believing Foster would not be aware the woman had died, used the victim’s phone to contact Foster on January 12, 2021, and ask if he had any more fentanyl for sale. Foster agreed to meet at the same Walgreen’s parking lot the person he believed would be the woman who purchased fentanyl from him the night before. When Foster arrived at the parking lot, the DEA arrested him and located eight bags of fentanyl in his pants, totaling approximately four grams, and a firearm in his vehicle.
At trial, the medical examiner testified that there is no safe dosage of illicit fentanyl, and tiny amounts of the substance can kill a person nearly immediately. The medical examiner also located two bags of fentanyl in the victim’s clothing that exactly matched the eight bags of fentanyl Foster had in his pants on January 12.
“Fentanyl is an extremely dangerous opioid that has led to numerous overdose deaths across the country, including here in our state,” DEA Assistant Special Agent in Charge Jarad Harper said. “The DEA, along with our local, state, and federal partners have been, and will continue to aggressively investigate and arrest those individuals who profit from the pain and suffering of others. This conviction demonstrates law enforcement’s devotion to working collaboratively and aggressively to combat drug trafficking.”
The statutory penalties for Foster’s convictions are: distribution of fentanyl resulting in death, 20 years to life imprisonment; possession of fentanyl with intent to distribute, up to 20 years’ imprisonment; felon in possession of a firearm, up to 10 years’ imprisonment; and possession of a firearm in furtherance of a drug-trafficking crime, five years to life imprisonment, consecutive to any other sentence imposed. The drug offenses carry additional penalties of up to a $1,000,000 fine and at least three years of supervised release. The firearm offenses include penalties of up to a $250,000 fine and up to three years of supervised release.
The investigation was conducted by DEA, with assistance from the Little Rock Police Department and Arkansas State Police. The case was prosecuted by Assistant United States Attorneys Chris Givens and Benecia Moore.
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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