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Tuesday 31 May 2022
St. Paul Staffing Agency Owners Sentenced for Tax Evasion SchemeRead the Press Release
MINNEAPOLIS – The last of three defendants has been sentenced in connection with a multi-year tax evasion scheme in which the operators of two St. Paul employment agencies conspired to evade more than $1 million in federal employment taxes, announced U.S. Attorney Andrew M. Luger.
U.S. District Judge Patrick J. Schiltz sentenced Julian Xiong, 59, of Brooklyn Park, to a year of probation with six months in home detention and $409,340 in restitution to the Internal Revenue Service.
On May 24, 2022, Chong Xiong, 60, of Minneapolis, was sentenced to two years in prison followed by a year of supervised release and ordered $877,820 in restitution to the IRS. On June 17, 2021, Andrew Xiong, 59, of Ramsey, was sentenced to one year and one day in prison followed by a year of supervised release and restitution of $686,079 to the IRS. Andrew Xiong and Julian Xiong had previously pleaded guilty to tax evasion and Chong Xiong pleaded guilty to conspiracy to defraud the United States.
According to court documents, between 2012 and 2017, Chong Xiong operated a temporary staffing agency in St. Paul with his brothers Julian Xiong and Andrew Xiong. The Xiong brothers’ agency operated under the names Twinstar Solutions, Hope Solutions, and Step Staffing. The defendants contracted with local companies to supply workers. The agreement provided that the defendants’ business was the employer of the workers and responsible for compliance with tax laws relating to withholding, reporting, and payment of payroll taxes. Like all employers, the Xiong brothers’ staffing agency was required to withhold federal income taxes, social security, and Medicare taxes from workers’ pay and report the amounts and pay the withholdings over to the IRS. Instead of accurately withholding and paying over the correct taxes to the government, the defendants paid some of their employees in cash and kept the tax withholdings for themselves. They also submitted false payroll reports to the IRS, while paying only a fraction of the true employment taxes owed.
Chong Xiong and Julian Xiong committed the evasion while running the business under the Twinstar name until 2013 when Julian Xiong opened an employment agency in Roseville to serve one of Twinstar’s clients and continued a similar fraud. The original company was then renamed Hope Solutions and operated by Andrew Xiong and Chong Xiong. In 2016, Andrew Xiong left the conspiracy, and Chong Xiong renamed the business Step Staffing until the business closed a few months later.
In addition to falsely reporting and underpaying payroll taxes, the defendants caused the business to file false annual corporate tax returns and use multiple bank accounts to hide the scheme. The defendants essentially split the profits from the tax fraud by keeping cash for themselves. Chong Xiong admitted to purchasing a Mercedes-Benz with more than $28,000 in $100 bills.
In sentencing him to the lengthiest term, Judge Schiltz noted that Chong Xiong was the last to accept responsibility and plead guilty and was responsible for the greatest tax loss and was the longest participant and supervisor of the scheme.
This case is the result of an investigation conducted by the Internal Revenue Service – Criminal Investigations Division.
Assistant U.S. Attorney Robert M. Lewis prosecuted the cases.
St. Paul Man Sentenced to 156 Months in Prison for Methamphetamine Trafficking, Firearms ViolationsRead the Press Release
ST. PAUL, Minn. – A St. Paul man was sentenced to 156 months in prison, followed by five years of supervised release, for methamphetamine trafficking and firearms violations, announced United States Attorney Andrew M. Luger.
According to court documents, in May 2020, law enforcement began investigating Chue Xiong, 39, and his co-defendant Matthew Hines, 37, of Brooklyn Center. As part of a drug trafficking conspiracy, Xiong and Hines coordinated and facilitated the distribution of methamphetamine, as well as collected drug proceeds to send back to their supplier. On May 11, 2020, law enforcement observed Xiong leave Hines’s residence with a brown bag in his hand. Law enforcement conducted a traffic stop of Xiong’s vehicle and found approximately 1.4 kilograms of methamphetamine inside the brown bag, 614 grams of methamphetamine in the driver’s side door pocket, and a 9mm handgun underneath the floor mat on the driver’s side. Xiong was also wearing a holster.
On November 19, 2020, law enforcement agents arrested Xiong outside his apartment building pursuant to a warrant. During a subsequent search of Xiong’s apartment, agents recovered an AR 223 caliber rifle, nine loaded 223 magazines, two loaded Glock model 19 semiautomatic handguns, $7,691.00 in cash, and 643.9 grams of methamphetamine.
Xiong was sentenced on May 26, 2022, in U.S. District Court before Senior Judge Donovan W. Frank. On March 30, 2021, Xiong pleaded guilty to conspiracy to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and possession with intent to distribute methamphetamine. Hines pleaded guilty on May 6, 2021, and is scheduled to be sentenced on December 15, 2022.
This case was the result of an investigation conducted by the Drug Enforcement Administration, the Ramsey County Violent Crime Enforcement Team, and the Minnesota State Patrol.
Assistant U.S. Attorney Allen A. Slaughter is prosecuting the case.
St. Joseph Police Officer and His Wife Indicted for $99,000 Fraud Scheme Against Fraternal Order of PoliceRead the Press Release
KANSAS CITY, Mo. – A St. Joseph, Mo., police officer and his wife were indicted by a federal grand jury today for a $99,000 wire fraud scheme in which they used debit cards from a local lodge of the Fraternal Order of Police, where they served as officers, for spending on personal items.
Michael A. Hardin, 46, and his wife, Sarah J. Hardin, 42, were charged in a seven-count indictment returned by a federal grand jury in Kansas City, Mo.
Michael Hardin, an officer with the St. Joseph Police Department, was the president of the Fraternal Order of Police Northwest Missouri Lodge #3 for approximately 10 years. Sarah Hardin, formerly a deputy with the Buchanan County Sheriff’s Department, was the treasurer of the lodge for approximately 10 years. The lodge, headquartered in St. Joseph, is a fraternity of approximately 300 law enforcement officers from police departments in nine northwest Missouri counties.
Today’s indictment alleges the Hardins used debit cards linked to the bank accounts of the Fraternal Order of Police Northwest Missouri Lodge #3 to make $99,000 in purchases for their own personal gain over a four-year period from December 2015 to December 2019.
According to the indictment, Sarah Hardin used two debit cards to make purchases at Walmart, Menards, Party City, HyVee, and other businesses for personal items and expenses. Michael Hardin allegedly used one debit card to make purchases from various merchants, including Hampton Inn, for personal items and expenses.
The Hardins did not provide information about the fraudulent spending to the members of the lodge, the indictment says, nor did they seek approval to use lodge funds for personal items.
Today’s indictment charges Sarah Hardin with four counts of wire fraud and Michael Hardin with three counts of wire fraud.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Courtney R. Pratten. It was investigated by the FBI.
St. Francis Man Sentenced for Voluntary ManslaughterRead the Press Release
United States Attorney Alison Ramsdell announced that a St. Francis, South Dakota, man convicted of Voluntary Manslaughter was sentenced on May 27, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Tanyan Wakita Iron, a/k/a Sonny Iron, age 20, was sentenced to 84 months in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Iron was indicted by a federal grand jury on September 9, 2020. He pled guilty on January 27, 2022.
The conviction stemmed from an incident that occurred on August 9, 2020, in St. Francis. Iron was at the victim’s home visiting, when he produced a handgun and attempted to get the victim to join him in a round of “Russian roulette” which the victim declined. A short time later, Iron shot the victim in the head, causing her death.
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.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Iron was immediately turned over to the custody of the U.S. Marshals Service.
Springfield Man Pleads Guilty to Bank RobberyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man who was identified when his photo was broadcast by local TV stations pleaded guilty in federal court today to bank robbery.
Charles Edgar King Jr., 57, pleaded guilty before U.S. Chief Magistrate Judge David P. Rush to one count of bank robbery.
By pleading guilty today, King admitted that he used a note to steal $8,815 from Guaranty Bank, 2109 N. Glenstone Ave., in Springfield, on July 10, 2021.
King entered the bank at about 10:30 a.m. and went straight to a teller counter, where he handed the teller a handwritten note that read, “I have a gun this is a robbery.” The teller handed over cash and King left the bank and walked away through a parking lot.
Surveillance cameras in the bank captured good quality video, which show King, who was not wearing a mask, and images of his bare hands that show a tattoo of a cross on the back of his right middle finger. On the same day as the robbery, July 10, 2021, the FBI released one of the surveillance images to the media and requested assistance from the public in identifying the bank robber. King’s former probation officer saw the media coverage and contacted the FBI the same day and identified King.
On July 19, 2021, an anonymous source contacted law enforcement with a tip that King was staying at the Springfield Inn near Kearney and North Glenstone in Springfield. Springfield police detectives and FBI agents conducted surveillance on the hotel and saw King leave the hotel driving a purple Scion Cube with no license plate. Springfield police officers conducted a car stop and detained King on an investigative arrest for robbery.
King told an FBI agent that he used the stolen money to buy the used Scion Cube for $2,400, and that he gave some of the money away and spent the rest.
Under federal statutes, King is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the Springfield, Mo., Police Department and the FBI.
Southwest Virginia Man Sentenced to 57 Months for Role in Massive Pandemic Unemployment Fraud SchemeRead the Press Release
ABINGDON, Va. – A Southwest Virginia man who conspired with at least thirty others in a scheme to defraud the government of more than $499,000 in pandemic unemployment benefits was sentenced today to nearly five years in federal prison.
Wesley William Hickman, 25, of Big Stone Gap, was convicted along with co-defendant Marissa Kiser, 28, of Castlewood, following a jury trial in March 2022. The jury found each guilty of conspiracy to defraud the United States, fraud in connection with emergency benefits, conspiracy to commit mail fraud, mail fraud in connection with emergency benefits, and aggravated identity theft.
According to court documents and evidence presented at trial, Hickman and Kiser conspired with Leelynn Danielle Chytka, Gregory Marcus Elmer Tackett, Jeffery Ryan Tackett, and others to commit fraud against the United States in connection with the filing of fraudulent claims for pandemic unemployment benefits. At the time of his involvement in the scheme, Hickman was incarcerated at the Southwest Virginia Regional Jail and was not entitled to pandemic unemployment assistance. However, Hickman and other jail inmates provided their personal information to Jeffrey Tackett for the purpose of filing fraudulent claims. Kiser provided her personal information to her friend Chytka, the ringleader of this widespread conspiracy, for the purpose of filing a fraudulent claim on her behalf.
Over the course of nine months, members of the conspiracy filed fraudulent claims with the Virginia Employment Commission on behalf of at least 37 individuals, with a total actual loss to the United States of at least $499,000.
United States Attorney Christopher R. Kavanaugh of the Western District of Virginia, Syreeta Scott, Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General, and Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service- Criminal Investigation, Washington D.C. made the announcement.
The Department of Labor - Office of the Inspector General, the Internal Revenue Service – Criminal Investigation Washington, D.C., Field Office, the Norton Police Department, and the Russell County Sheriff’s Office investigated the case.
Assistant United States Attorneys Daniel J. Murphy and Michael Baudinet prosecuted the case.
Slidell Man Charged with Possession of Files Depicting the Sexual Victimization of ChildrenRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that BROCK TAYLOR GUILLOT, age 24, a resident of Slidell, Louisiana, was charged on Thursday, May 26, 2022, by a federal grand jury sitting in the Eastern District of Louisiana in a one-count indictment with possession of images and videos depicting the sexual exploitation of children under the age of twelve years old, in violation of 18 U.S.C. ' 2252(a)(4)(B).
GUILLOT faces a maximum term of imprisonment of twenty (20) years. GUILLOT also faces up to a lifetime of supervised release, up to a $250,000 fine, a mandatory $100 special assessment fee, and he can be required to register as a sex offender.
U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Sixth Defendant in $3 Million COVID-19 Fraud Ring Pleads GuiltyRead the Press Release
ALEXANDRIA, Va. – A Falls Church man pleaded guilty today to conspiring to commit wire fraud, bank fraud and to make false statements on loan applications in connection with COVID-relief loans.
According to court documents, Fouzi Darakhshan, 36, conspired with his brothers and their friends to submit falsified loan applications in order to obtain Paycheck Protection Program (PPP) loans through banks and Economic Injury Disaster Loans (EIDL) through the Small Business Administration. Altogether, the defendants wrongfully obtained over $3 million in loan proceeds. They submitted at least 63 loan applications, of which 17 were approved.
The defendants used multiple shell entities they controlled to apply for PPPs and EIDLs and falsified IRS tax forms submitted to lenders. They engaged in a group WhatsApp chat devoted to executing the fraud scheme, openly discussing falsifying documents and inflating the numbers of employees, company revenues, and payroll figures in order to induce lenders to make the loans.
Foad Darakhshan, 46, of McLean; Haleh Farshi, 44, of Ashburn; Farough Darakhshan, 39, of Great Falls; Shoughi Darakhshan, 30, of McLean; and Marcus Gharib, 29, of Tysons all previously pleaded guilty for their involvement in the conspiracy.
The defendants are scheduled to be sentenced beginning in July and concluding in September. They face up to 5 years in prison, full restitution, and forfeiture. 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, Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division; and Amaleka McCall-Brathwaite, Eastern Region Special Agent in Charge for the Small Business Administration, Office of Inspector General, made the announcement after Senior U.S. District Judge Claude M. Hilton accepted today’s plea.
Assistant U.S. Attorney Russell L. Carlberg 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 No. 1:22-cr-22.
Selling child pornography lands local in prisonRead the Press Release
McALLEN, Texas – A 33-year-old south Texan has been sent to prison for possessing child pornography with the intent to sell it on the internet, announced U.S. Attorney Jennifer B. Lowery.
Astro Rey De Leon pleaded guilty Dec. 17, 2021.
Today, U.S. District Judge Randy Crane sentenced him 210 months in federal prison. At the hearing, the court heard additional information including chats De Leon had with other individuals regarding the trade and sale of child sexual abuse material. The court also considered descriptions of the videos De Leon possessed as well as victim impact statements.
In handing down the prison term, the court noted that De Leon’s crimes were particularly heinous due to the ages of the victims, the number of videos involved and because he retained and sold videos to tailor his collection to his own desires. Judge Crane also reiterated that the material was recorded sexual abuse of children and should be addressed as such.
De Leon was further ordered to pay a total of $15,000 in restitution to five victims and will serve the rest of his life on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.
Authorities had learned a computer was receiving child pornography. They were able to trace it to De Leon at his residence. He admitted he was actively involved in speaking with individuals who were interested in buying child pornography via applications on his cell phone.
A search of his phone revealed he had recently tried to sell child pornography. De Leon further admitted he had bought it himself only two months prior to law enforcement’s arrival at his residence.
De Leon has been and 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 Task Force conducted the investigation.
Assistant U.S. Attorney Eliza Carmen Rodriguez is prosecuting 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 link on that page.
Post Falls Woman Sentenced to 30 Months in Federal Prison after Cyberstalking Ex-Boyfriend and Setting his Home on FireRead the Press Release
Spokane, Washington – Senior United States District Judge Rosanna Malouf Peterson sentenced Kimberly Ann Brischle, 56, of Post Falls, Idaho, to 30 months in federal prison for stalking an ex-boyfriend across state lines via the Internet. Judge Peterson also ordered Brischle to pay more than $175,000 in restitution for the damages arising from a fire she started in her ex-boyfriend’s home. Brischle will also serve three years of federal supervised release after she gets out of prison. Brischle pleaded guilty in May 2022 and has been in federal custody since July 2021.
According to court documents, Brischle began sending her ex-boyfriend a series of threatening text messages in April 2021. The next day, Brischle broke into her ex-boyfriend’s home in Spokane, while her ex-boyfriend was away on business. Brischle damaged property in the home and started a fire in a bedroom closet. The Spokane Fire Department responded to extinguish the fire, and investigators determined that the fire had been set intentionally. For the next several months, Brischle used online applications to obscure her identity while she continued to send her ex-boyfriend threatening and harassing texts and emails. In one message, she claimed to have paid another person to torture and mutilate him and to kill his dog.
“In the information age, Internet stalking has become a significant problem that crosses state and international boundaries and subjects innocent people to serious harassment,” said Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington. “As this case demonstrates, the line between online activity and real-world consequences can become blurry for some—and frankly, it is a miracle and a relief that no one was hurt by the fire in this case. Fortunately, through the collaborative work of ATF, the Spokane Police Department, the Spokane Fire Department, and the Kalispel Tribal authorities, law enforcement was able to hold the defendant accountable and prevent her from causing further damage and harassment. The United States Attorney’s Office is committed to protecting our communities from cybercrime and physical violence to keep Eastern Washington safe and strong.”
“Arson is a heinous crime that has broad impacts, not only on those who are directly affected, but because of the risk it presents to the community as a whole,” said ATF Seattle Field Division Special Agent in Charge Jonathan T. McPherson. “This sentence should deter anyone who contemplates engaging in the destructive, cowardly act of setting someone’s home on fire.”
This case was investigated by Spokane Resident Office of the ATF, with significant assistance from the Spokane Fire Department Special Investigations Unit, the Spokane Police Department, and the Kalispel Tribal Police. The case was prosecuted by Timothy J. Ohms, Assistant United States Attorney for the Eastern District of Washington.
Portland Man on Pretrial Release in Child Sex Abuse Case Indicted for Possessing and Distributing Child PornographyRead the Press Release
PORTLAND, Ore.—A federal indictment was unsealed today charging a Portland man with committing child pornography offenses while awaiting trial in a state child sex abuse case.
Raphael Alberto Whitfield, 33, has been charged with possession and distribution of child pornography.
According to court documents, on February 8, 2021, Whitfield was arrested after being indicted in Clackamas County Circuit Court on five counts of first-degree sexual abuse for allegedly abusing a child under the age of eight. Whitfield posted bail and was released the next day. Shortly thereafter, law enforcement in Oregon began investigating Whitfield’s use of Discord, an online instant messaging application, to send and receive child pornography. Search warrant returns showed that Whitfield had used the platform to distribute images depicting child sexual abuse as early as September 2020.
Law enforcement continued investigating Whitfield throughout much of 2021. These investigative efforts culminated in an October 2021 search of Whitfield’s person, car, and residence. Investigators seized two mobile phones, one of which was later found to contain more than 1,000 images depicting child sexual abuse. Many of these images were collected and saved while Whitfield was awaiting trial in Clackamas County.
On May 17, 2022, a federal grand jury in Portland indicted Whitfield and an arrest warrant was issued. On May 27, 2022, with the assistance of the Portland Police Bureau’s Special Emergency Reaction Team (SERT), the FBI executed the arrest warrant at Whitfield’s residence. When agents and SERT members knocked and announced their presence, Whitfield barricaded himself in the residence and attempted to take his own life by cutting his throat and wrist with a knife. Whitfield eventually exited the residence and was arrested and transported to a local hospital with non-life-threatening injuries.
Whitfield made his initial appearance in federal court today before U.S. Magistrate Judge Stacie F. Beckerman. He was arraigned, pleaded not guilty, and ordered detained pending a three-day jury trial scheduled to begin on August 2, 2022.
Possession and distribution of child pornography are each punishable by up to 20 years in federal prison, a life term of supervised release, and a $250,000 fine. Additionally, distribution of child pornography carries a 5-year mandatory minimum prison sentence.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by FBI Portland’s Child Exploitation Task Force (CETF). The Portland Police Bureau assisted with Mr. Whitfield’s arrest. Assistant U.S. Attorney Mira Chernick is prosecuting the case.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at 1-800-CALL-FBI (1-800-225-5324) or submit a tip online at tips.fbi.gov.
Federal law defines child pornography as any visual depiction of sexually explicit conduct involving a minor. Child sexual abuse material depicts actual crimes being committed against children. Not only do these images and videos document victims’ exploitation and abuse, but when shared across the internet, child victims suffer re-victimization each time the image of their abuse is viewed. To learn more, please visit the National Center for Missing & Exploited Children’s website at www.missingkids.org.
The FBI CETF conducts sexual exploitation investigations, many of them undercover, in coordination with federal, state and local law enforcement agencies. CETF is committed to locating and arresting those who prey on children as well as recovering and assisting victims of sex trafficking and child exploitation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Justice Department to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Pittsfield Nurse Pleads Guilty to Stealing Fentanyl from Critical Care PatientRead the Press Release
BOSTON – A Pittsfield woman pleaded guilty today in federal court in Springfield to stealing fentanyl being administered to a patient in the critical care unit.
Jessica Lotto, 36, pleaded guilty to one count of acquiring a controlled substance by fraud, deceit or subterfuge. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Jan. 25, 2023. Lotto was charged in November 2021.
In February 2019, while working as a nurse at Berkshire Medical Center, Lotto entered a patient’s room in the critical care unit where she used a syringe to steal fentanyl being administered to the patient through an IV line. Lotto later admitted to taking the drug from the patient.
The charge of obtaining a controlled substance by fraud, deceit or subterfuge provides for a sentence of up to four years in prison, one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Brian McClune, Acting Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office; and Margret R. Cooke, Commissioner of the Massachusetts Department of Public Health, made the announcement today. Assistant U.S. Attorney Deepika Bains Shukla, Chief of Rollins’ Springfield Branch Office, is prosecuting the case.
Pharmacist Convicted of Unlawfully Distributing Controlled SubstancesRead the Press Release
A federal jury in the Southern District of Texas convicted a Texas pharmacist on May 27 for unlawfully distributing controlled substances from a now-shuttered Houston pharmacy.
According to court documents and evidence presented at trial, Hieu “Tom” Truong, 58, of Houston, was the pharmacist-in-charge of S&S Pharmacy in Houston. In just 18 months, Truong and his co-conspirators unlawfully distributed over 750,000 doses of controlled substances, including over 500,000 oxycodone and hydrocodone pills. Trial evidence showed that S&S Pharmacy unlawfully dispensed controlled substances in bulk for cash, based on forged or stolen prescriptions brought in by street-level drug dealers.
Truong was convicted of three counts of unlawfully distributing and dispensing controlled substances. He faces a maximum penalty of up to 20 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing is scheduled for Oct. 3.
To date, seven other co-conspirators, including the owner and manager of the pharmacy, have pleaded guilty to unlawfully distributing controlled substances.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Jennifer Lowery for the Southern District of Texas; and Special Agent in Charge Daniel C. Comeaux of the Drug Enforcement Administration’s (DEA) Houston Division made the announcement.
DEA Houston investigated the case, with assistance from the Conroe Police Department, Houston Police Department, and Harris County Constables Office.
Trial Attorneys Devon Helfmeyer, Courtney Chester, and Andrew Tamayo of the Criminal Division’s Fraud Section are prosecuting the case, and Assistant U.S. Attorney Kristine Rollinson for the Southern District of Texas is handling forfeiture.
Pascagoula Man Pleads Guilty to being a Convicted Felon in Possession of a FirearmRead the Press Release
Gulfport, Miss. -- A Pascagoula man pled guilty to being a convicted felon in possession of a firearm, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to court documents, Johnny Elliott Washington a/k/a Johnnie Elliot Washington, 54, sold two firearms to an individual at a residence in Moss Point, Mississippi on July 13, 2020. Washington was previously convicted on drug charges in Harrison County and is prohibited from possessing a firearm.
Washington is scheduled to be sentenced on August 31, 2022, at 10:00 a.m., in Gulfport. He faces a maximum penalty of not more than 10 years in prison and a $250,000 fine. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the South Mississippi Metro Enforcement Team.
The case was being prosecuted by Assistant U.S. Attorney Andrea Jones.
Newton Man Pleads Guilty to Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – A Newton man pled guilty to possession of a firearm by a convicted felon, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to court documents, William Eric Chapman, 41, was found in possession of a firearm by officers of the Meridian Police Department on January 30, 2020, during an investigation into an alleged assault. Chapman had a .556 caliber rifle and a sawed-off shotgun in his motel room. Chapman has four prior felony convictions. As a convicted felon, it is contrary to federal law for Chapman to possess any firearm.
Chapman pleaded guilty to a violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2) which criminalize the possession of firearms by convicted felons. He is scheduled to be sentenced on September 1, 2022 and faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Meridian Police Department and the ATF are investigating the case.
Assistant U.S. Attorney Charles W. Kirkham is prosecuting 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.
New Yorker Sentenced in East Texas for National Fraud ConspiracyRead the Press Release
SHERMAN, Texas – A Queens, New York man has been sentenced to prison in the Eastern District of Texas for federal violations, announced U.S. Attorney Brit Featherston today.
Anthony Terrell Lloyde, 33, pleaded guilty on July 29, 2021 to conspiracy to commit bank fraud and was sentenced to 121 months in federal prison today by U.S. District Judge Amos L. Mazzant. Lloyde was also ordered to pay restitution in the amount of $1,339,025.37.
According to information presented in court, beginning in January 2013, Lloyde conspired with others in a scheme to use the stolen identities of unsuspecting victims to illegally purchase material goods and services, most often high-value electronics, such as iPhones and iPads, hotel rooms and vehicle rentals. Though based in New York, participants traveled throughout the United States to cities associated with the victims’ identities to avoid detection of the fraud. Lloyde was the organizer and leader of the scheme. He purchased victims’ identifying information via the internet and directed the use of device-making equipment to manufacture fraudulent state identification documents and credit cards. He recruited conspirators, to whom he provided the fraudulent documents, and directed them to travel to various cities throughout the United States, including cities located in the Eastern District of Texas such as Frisco and Plano. Once they arrived at their target location, they used the victims’ stolen identification information and forged identification documents to open fraudulent instant credit accounts at retail stores, such as Apple Store and Best Buy, to purchase merchandise. These stores utilize the credit services of federally insured banks such as Citibank, Barclays Bank Delaware and Synchrony. Thus, by materially misrepresenting their identities to the retail stores, Lloyde and his coconspirators were able to defraud the banks.
Lloyde typically organized the trips by determining the target cities and stores and by booking and/or purchasing airline tickets on behalf of his coconspirators. Lloyde and coconspirators typically traveled under their true identities and would often mail the fraudulent identification documents and credit cards to one another in order to avoid traveling with them in their possession. Conspirators used fraudulently obtained credit cards and forged identification documents to rent vehicles to travel during their commission of the offense, and those fraudulently obtained vehicles were often sold to third parties on the black market. As such, the offense involved an organized plan to steal or receive stolen vehicles. Once conspirators arrived at the target stores, Lloyde and others would actively participate via phone calls and text messages, directing which victims’ identities were to be used and which products were to be purchased. Victims’ identities were often chosen based upon their proximity to the target city and store, making it less likely the fraud would be detected since it was occurring close to where the victims lived. Some conspirators used victims’ identification and phone numbers to obtain duplicate cell phone subscriber identity modules (SIM cards). Those conspirators would then use the duplicate SIM cards to divert fraud alerts to their own cell phones, which allowed the conspirators to further their criminal conduct by authorizing the fraudulent transactions. After purchasing items, conspirators shipped the illegally obtained goods to Lloyde in New York, and Lloyde would resell those products. Lloyde parlayed some of the proceeds generated by the criminal enterprise to purchase airline tickets for himself and other conspirators, to pay for hotel accommodations for himself and other conspirators, and to provide money for incidental expenses assumed by conspirators. In all, the scheme targeted retail stores that provided instant lines of credit the conspirators could exploit to immediately purchase goods. The credit accounts were funded by banks, and those banks, rather than the retail stores, suffered the financial losses. The primary pecuniary victims of the offense include Citibank, Barclays Bank Delaware, Nordstrom, and Synchrony. Citibank suffered an actual loss of $1,045,406.71. Barclays Bank Delaware reported an actual loss of $154,731.91. Nordstrom reported an actual loss of $71,016.01. Synchrony reported an actual loss of $67,870.74. As such, the total actual known loss committed by Lloyde and his coconspirators is $1,339,025.37.
This case was investigated by the Department of Homeland Security HSI Dallas, along with HSI Long Island, HSI Atlanta and HSI Salt Lake City field offices; Dallas-Ft. Worth International Airport Department of Public Safety; Plano, Texas Police Department; Port of Portland Police Department; New York State Police; New York Police Department; Massachusetts State Police; Cincinnati-Northern Kentucky Airport Police Department; Orange County, Texas, Sheriff's Office; Aurora, Colorado Police Department; Broomfield, Colorado, Police Department. This case was prosecuted by Assistant U.S. Attorney Matthew Johnson.
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New York Attorney Charged with Transportation and Possession of Child PornographyRead the Press Release
NEWARK, N.J. – An Eastchester, New York, man has been charged with the transportation and possession of child pornography, U.S. Attorney Philip R. Sellinger announced today.
Androsky Lugo, 52, is charged by criminal complaint with one count of transportation of child pornography and one count of possession of child pornography. He is scheduled to make his initial appearance by videoconference this afternoon before U.S. Magistrate Judge Leda Dunn Wettre.
According to documents filed in this case and statements made in court:
From August 2019 to September 2021, Lugo stored multiple electronic devices with a coworker at the New Jersey office where he worked. One of the devices was subsequently discovered to contain a voluminous collection of images and videos depicting child sexual abuse. The investigation also revealed that Lugo transported child pornography, on a different electronic device, from New York into New Jersey on multiple dates in July 2020.
The charge of possession of child pornography carries a maximum penalty of 10 years in prison and fine of $250,000. The charge of transportation of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison, and fine of $250,000.
U.S. Attorney Sellinger credited special agents with the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark, with the investigation leading to the charges. He also thanked the Westchester County, New York, District Attorney's Office for its assistance.
The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Manhattan Man Pleads Guilty to Defrauding Victims of Millions of Dollars Through Offering Fictional Investment OpportunitiesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that EPHRAIM JOSEPH ULLMANN pled guilty to conspiracy to commit wire fraud in connection with a scheme to defraud victims by telling them that they could obtain large loans or letters of credit if they provided up-front investments as collateral for the loans. In reality, there were no loans available and the victims were defrauded of more than $3 million that they invested in reliance on ULLMANN’s false statements. ULLMANN pled guilty before U.S. District Judge Richard M. Berman.
U.S. Attorney Damian Williams said: “Ephraim Ullmann admitted to participating in a scheme to defraud victims of millions of dollars by making false statements about fictional opportunities to obtain loans and letters of credit. As a result of his guilty plea, Ullmann will now face a term of imprisonment. Our Office will continue to work with our law enforcement partners to investigate and prosecute those who defraud investors with false promises and lies.”
According to the Indictment, public court filings, and statements made in court:
From at least in or about November 2014 through at least in or about 2020, ULLMANN participated in a scheme to defraud investors by falsely telling them that they could obtain letters of credit or loans if they provided initial funds as collateral for the loans. ULLMANN told one group of victims who had started a home building company that he had been hired by an American Indian tribe to use tribal bonds as collateral to obtain large loans for companies seeking financing. ULLMANN told these victims to send hundreds of thousands of dollars to a bank account he provided them, which he described as “seed capital” to obtain the tribal bond-backed loan. In reality, ULLMANN had not been hired by the tribe and there was no loan available for the victims. ULLMANN also sent multiple forged bank documents to the victims to deceive them into thinking that the promised financing was being provided.
In addition to the tribal bond scheme, ULLMANN told a separate group of victims who were involved with starting a new oil company that he could obtain a multi-million dollar letter of credit for the company if the victims provided initial funding. In reality, there was no letter of credit available, and the victims were fraudulently induced to wire millions of dollars to bank accounts identified by ULLMANN and his co-conspirators.
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ULLMANN, 58, of New York, New York, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum term of 20 years in prison, and agreed to restitution of $3,032,000.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation.
The prosecution is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorney Thane Rehn is in charge of the prosecution.
Manchester Man Sentenced to 60 Months for Trafficking Fentanyl and MethamphetamineRead the Press Release
CONCORD - Justin Stilson, 38, of Manchester, was sentenced to 60 months in federal prison for possessing fentanyl and methamphetamine with intent to distribute, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, on September 25, 2019, Hooksett police officers were at a local motel to arrest a woman. Stilson was located in the bathroom of the motel room. Based on evidence obtained during the incident, officers applied for a search warrant for the motel room. During the execution of the warrant, a backpack belonging to Stilson was located. The backpack contained 122 grams of fentanyl and 102 grams of methamphetamine, as well as other evidence of drug distribution.
“Fentanyl and methamphetamine are drugs that have decimated thousands of lives in communities across our state,” said U.S. Attorney Young. “To protect our communities, we are working closely with our law enforcement partners to identify and prosecute the drug traffickers who flood our state with these deadly substances. This federal prison sentence not only holds Mr. Stilson accountable for his conduct but also sends a message that there are substantial penalties for drug dealing in the Granite State.”
This matter was investigated by the Hooksett Police Department. The case was prosecuted by Assistant U.S. Attorney Joachim H. Barth.
This case is part of Operation Synthetic Opioid Surge (S.O.S.). In July of 2018, Attorney General Jeff Sessions announced the creation of S.O.S., which is being implemented in the District of New Hampshire and nine other federal districts. The goal of S.O.S. is to combat the large number of overdoses and deaths associated with fentanyl and other synthetic opioids. In New Hampshire, the U.S. Attorney’s Office is focusing its efforts on prosecuting synthetic opioid trafficking cases arising in Hillsborough County, which includes Manchester and Nashua.
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Long Island MS-13 Gang Member Pleads Guilty to Two Murders, an Attempted Murder, and Drug Conspiracy ChargesRead the Press Release
Earlier today, in federal court in Central Islip, Jonathan Hernandez, a member of the Sailors Locos Salvatruchas Westside (Sailors) clique of La Mara Salvatrucha, also known as the MS-13, a transnational criminal organization, pleaded guilty to racketeering charges in connection with his participation in the January 28, 2016 murder of Michael Johnson, the April 29, 2016 murder of Oscar Acosta, an attempted murder on August 10, 2016, and a conspiracy to distribute cocaine and marijuana. The proceeding was held before United States Magistrate Judge Anne Y. Shields.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Rodney K. Harrison, Commissioner, Suffolk County Police Department (SCPD), announced the guilty plea.
“In service to a violent gang and without regard for human life, the defendant and his MS-13 cohorts murdered two people, attempted to murder a third victim, and distributed dangerous narcotics,” stated United States Attorney Peace. “With today’s guilty plea, this Office and our law enforcement partners continue to dismantle MS-13, gang member by gang member, bringing them to justice for their horrendous crimes and we will not rest until our communities are safe from gang violence. Furthermore, it is our hope that the families of the victims find some consolation that Hernandez has been held to account for his crimes.”
“It is evident by these incomprehensible crimes, that MS-13 members have zero regard for human life and their violence has no limits,” Suffolk County Police Commissioner Harrison said. “We will continue to work with our law enforcement partners to decimate this transnational gang and I thank those involved in this case for their tireless efforts to hold this individual accountable for his heinous actions.”
According to prior court filings and statements by the defendant at the guilty plea proceeding, on January 28, 2016, a Sailors clique leader and other MS-13 members and associates were present at the Jocorena Deli in Brentwood, where they saw 29-year-old Michael Johnson, and claimed to recognize him as a member of the rival Bloods street gang. At that point, Johnson was marked as their “food,” meaning they were going to kill him. After receiving the requisite approval from the New York leader of the Sailors clique to commit this murder, Hernandez and several other MS-13 members were contacted, informed of the plan to kill Johnson, and instructed to bring weapons, including a machete and a baseball bat, to a wooded area near Second Avenue in Brentwood. Johnson was lured to the secluded meeting location where MS-13 members and associates, including Hernandez, struck Johnson with the baseball bat, stabbed him with a knife, and took turns hacking him with a machete. Johnson’s body was recovered by the SCPD on February 2, 2016.
In early 2016, Hernandez and his fellow Sailors clique members decided to kill 19-year-old Oscar Acosta because they suspected that he was associating with the rival 18th Street gang. The Sailors clique leader assigned roles as to which members would take the lead in planning and carrying out the murder. On April 29, 2016, several MS-13 members encountered Acosta in a wooded area near an elementary school in Brentwood, where he had been lured under the guise of smoking marijuana. They beat Acosta with tree limbs, knocking him unconscious. They then bound Acosta’s hands and feet, wrapped an article of clothing around his mouth to prevent him from making noise, and summoned other MS-13 members, including Hernandez. The MS-13 members loaded Acosta into the trunk of a car and drove to a more secluded area in Brentwood, near an abandoned psychiatric hospital. They took Acosta, who was still alive, out of the car and carried him into the woods, where they all took turns hacking him to death with a machete. The MS-13 members then buried Acosta’s body in a shallow grave. Acosta’s body was discovered by law enforcement on September 16, 2016.
On August 10, 2016, Hernandez and other MS-13 members attempted to kill suspected rival gang members in Brentwood. Hernandez and another MS-13 member, both armed with handguns, approached a house on Lukens Avenue, where the suspected rival gang members were standing outside, and fired numerous shots in their direction. No one was struck, but a stray bullet entered a neighbor’s house and struck the headboard of a bed in which the neighbor was sleeping. Hernandez also pleaded guilty to participating in a drug distribution conspiracy, admitting that between April 2016 and October 2017, he and other members of the Sailors clique conspired to distribute cocaine and marijuana for the financial benefit of the MS-13.
When sentenced, Hernandez faces a maximum term of life in prison.
Today’s conviction is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent, transnational criminal organization. The MS-13’s leadership is based in El Salvador, Honduras, Guatemala and Mexico, but the gang has thousands of members across the United States. With numerous branches, or “cliques,” the MS-13 is the most violent criminal organization on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults. Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 60 murders in the Eastern District of New York, resulting in the convictions of dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, which is comprised of agents and officers of the FBI, SCPD, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation Office, Suffolk County Sheriff’s Office, the New York State Police, the Hempstead Police Department, the Rockville Centre Police Department and the New York State Department of Corrections and Community Supervision.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Paul G. Scotti, Justina L. Geraci and Megan E. Farrell are in charge of the prosecution.
The Defendant:JONATHAN HERNANDEZ (also known as “Travieso,” and “Kraken”)
Age: 24
Brentwood, New YorkE.D.N.Y. Docket No. 16-CR-403 (GRB)
Lee County Man Sentenced to 90 Months for Methamphetamine, Gun CrimesRead the Press Release
ABINGDON, Va. – A Jonesville, Virginia man, who was twice arrested in Lee County for possessing methamphetamine with the intent to distribute, was sentenced last week to 7 ½ years in federal prison on federal drug distribution and weapons charges.
Aaron Matthew Mosley, 40, pleaded guilty in February 2022 to two counts of possession with intent to distribute methamphetamine and one count of possession of a firearm in furtherance of a drug trafficking crime.
According to court documents, on August 12, 2021, a Virginia State Trooper discovered Mosley slumped over in the driver’s seat of his pickup truck on the side of the road with the engine running. In the course of conducting a well-being check, the trooper observed marijuana in the center console and a 9mm pistol within arm’s reach of Mosley.
A K-9 unit was called to the scene and subsequently alerted to the side of his truck bed where a .223 rifle, brass knuckles, a magnetic case with various pills and controlled substances, digital scales, $660 in U.S. currency, and approximately 23 grams of 99% pure methamphetamine were recovered.
A check of Mosley’s records showed he had been recently arrested in Lee County for possession of approximately 15 grams of 99% pure methamphetamine but was released on bond while wearing an electronic monitoring bracelet. In addition, court documents revealed that cooperating informants had made several purchases of methamphetamine from Mosley in the months preceding his initial arrest.
United States Attorney Christopher R. Kavanaugh of the Western District of Virginia, Charlie J. Patterson, Special Agent in Charge of ATF’s Washington Field Division, and Colonel Gary T. Settle, Superintendent of the Virginia State Police made the announcement today.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Virginia State Police, and the Lee County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Daniel J. Murphy prosecuted the case.
Lawrence Man Pleads Guilty to Fentanyl Trafficking ConspiracyRead the Press Release
BOSTON – A Lawrence man has pleaded guilty in federal court in Boston to fentanyl trafficking.
Saury Rodriguez-Ruiz, 33, pleaded guilty on May 26, 2022 to one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and one count of distribution and possession with intent to distribute 400 grams or more of fentanyl. U.S. District Court Chief Judge F. Denis Saylor IV scheduled sentencing for Sept. 9, 2022. Rodriguez-Ruiz was indicted along with his co-conspirator, Danybelkis Vasquez-Rodrigue, in January 2021. Vasquez-Rodrigue has pleaded not guilty and is awaiting trial.
In November 2020, law enforcement began an investigation into Rodriguez-Ruiz, who had been identified as a Lawrence-based drug supplier. On Nov. 24, 2020, Rodriguez-Ruiz distributed nearly one kilogram of fentanyl to a cooperating witness. In exchange for the fentanyl, the cooperating witness made two payments to Rodriguez-Ruiz’s associates in December 2020. The first payment of $10,000 was to an associate of Rodriguez-Ruiz and the second payment of $32,000 was allegedly to Rodriguez-Ruiz’salleged co-conspirator, Vasquez-Rodrigue.
The charges of conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl and distribution of and possession with intent to distribute 400 grams or more of fentanyl each carry a mandatory minimum sentence of 10 years and up to life in prison, at least five years of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division, made the announcement. The case was investigated by the FBI’s Strike Force including the Norfolk County Sherriff’s Office. Assistant U.S. Attorney Alathea Porter of Rollin’s Narcotics & Money Laundering Unit is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lackawanna County Man Indicted for Firearms and Drug Trafficking OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Yasin Abdul-Mattin, age 50, of Scranton, Pennsylvania, was indicted by a federal grand jury for firearms and drug trafficking offenses.
According to United States Attorney John C. Gurganus, the indictment alleges that on January 20, 2022, in Lackawanna County, Abdul-Mattin possessed a loaded 12-gauge shotgun and ammunition and also possessed methamphetamine for further distribution. It is also alleged that Abdul-Mattin is a previously convicted felon and is prohibited from possessing firearms or ammunition.
The charges against the defendant resulted from an investigation conducted by the Bureau of Alcohol, Tobacco and Firearms (ATF) and the Scranton Police Department. Assistant United States Attorney Robert J. O’Hara and Special Assistant United States Attorney Brian Gallagher are prosecuting the case.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Under federal law, for the firearms charge, Abdul-Mattin faces a maximum sentence of ten years, a term of supervised release and a fine. For the drug charges, Abdul-Mattin faces a maximum sentence of twenty years, a term of supervised release 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 and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Justice Department Sues to Shut Down Texas Return PreparersRead the Press Release
The United States filed a civil injunction suit to permanently bar Jason Elias Briley; Roxann Ladawn Johnson fka Roxann Ladawn Ellis; Alexander McKenzie; Courtney Jones; Derek Brooks; Deanna McKenzie; Erbia Lewis; Patrick McKenzie and JRC Elite Tax Solutions LLC dba Elite Tax Solutions from preparing federal income tax returns for others. The complaint also requests that the court require the defendants to disgorge the fees they obtained by preparing false and fraudulent tax returns.
The complaint, filed in the U.S. District Court for the Eastern District of Texas, alleges that these tax return preparers prepared more than 1,300 returns in 2021 and over 3,100 returns in 2022. According to the complaint, Briley and the others prepared returns that falsely claimed over $53 million in credits and refunds intended to provide COVID-19 related relief for self-employed individuals.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. (More information can also be found here.) The IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers, and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers. The IRS also has a checklist of things to remember when filing income tax returns in 2022.
In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $73,000. For individuals whose income is over that threshold, IRS Free File offers electronical federal tax forms that can be filled out and filed online for free. The IRS has tips on how seniors and individuals with low to moderate income can get other help or guidance on tax return preparation, too.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Justice Department Secures Settlement with McDonald’s Franchisee to Resolve Immigration-Related Discrimination ClaimsRead the Press Release
The Department of Justice announced today that it has reached a settlement agreement with Sutherland Management Company d/b/a McDonald’s, a California-based franchisee operating four McDonald’s locations in the San Diego area. The settlement resolves claims that the company discriminated against non-U.S. citizens when checking their permission to work in the United States.
“Under federal law, employers may not discriminate by asking workers for more documents than necessary, or specific documents, to prove their permission to work because of their citizenship status, immigration status or national origin,” said Assistant Attorney General Kristen Clarke of the Civil Rights Division. “Employees have the right — U.S. citizens and non-U.S. citizens alike — to choose which valid, acceptable documentation they wish to present to prove their permission to work. The Civil Rights Division will continue to fight unlawful workplace discrimination on the basis of citizenship, immigration status and national origin. We look forward to working with Sutherland Management Company to secure compliance with this settlement and applicable federal law.”
The department’s investigation began after a non-U.S. citizen complained that Sutherland Management Company refused to accept his valid documentation proving his permission to work and demanded a different document from him. The department’s investigation revealed that the company routinely discriminated against non-U.S. citizens, primarily lawful permanent residents, by asking them to present specific, Department of Homeland Security-issued documents to prove their permission to work in the United States. The investigation also revealed that Sutherland Management Company refused to allow the worker who complained to begin working until he presented the unnecessary documentation. Under federal law, all employees have the right to choose which valid documentation they wish to present when demonstrating that they have permission to work in the United States.
The Immigration and Nationality Act’s (INA) anti-discrimination provision prohibits employers from asking for more documents than necessary — or specifying the type of documentation a worker should present — to prove their permission to work, because of a worker’s citizenship, immigration status or national origin.
Under the settlement, Sutherland Management Company will pay $40,000 in civil penalties to the United States, pay backpay for lost wages to the worker who complained, review and revise their employment policies to comply with the anti-discrimination provision of the INA, and train its employees who are responsible for verifying workers’ permission to work in the United States.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
Learn more about IER’s work and how to get assistance through this brief video. Find more information on how employers can avoid citizenship status discrimination on IER’s website. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER. View the Spanish translation of this press release here.
Jamaican National Charged with Illegal Re-Entry by an Aggravated FelonRead the Press Release
ST. THOMAS, USVI – United States Attorney Delia L. Smith announced today that Veron Venita Goulbourne, 60, a Jamaican national, has been charged with being present in the United States after removal and conviction for an aggravated felony. If convicted, Goulbourne faces a maximum penalty of 20 years in prison.
According to court documents, Goulbourne was previously removed from the United States in March 2000, after she was convicted of an aggravated felony. Court documents further show that on April 24, 2022, Goulbourne was a ticketed passenger on a flight from St. Thomas to Miami, FL. When Goulbourne presented herself at the U.S. Customs and Border Protection primary inspection point at Cyril E. King Airport, officers determined that she had no legal status in the United States having been previously removed.
Homeland Security Investigations is investigating, and Assistant U.S. Attorney Adam Sleeper is prosecuting the case. United States Attorney Smith reminds the public that a criminal complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Hagerstown residents admit to their roles in a firearms conspiracyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Two Hagerstown, Maryland residents have admitted to working together to illegally purchase firearms in Berkeley County, United States Attorney William Ihlenfeld announced.
Dwayne Anthony Battle, 37, pleaded guilty today to one count of “Conspiracy to Violate Gun Control Act.” Battle admitted to working with Antoinette Pauleen McKenzie, 33, to illegally purchase firearms in Berkeley County and transfer those firearms to an out-of-state resident, violating the Gun Control Act. The conspiracy took place in August and September 2021.
McKenzie pleaded guilty to one count of “False Statement During Purchase of Firearm.” McKenzie admitted to lying to the licensed gun dealer, saying she was the true purchaser of the firearm, when the 9mm pistol was meant for someone else in August 2021 in Berkeley County.
Battle and McKenzie are each facing 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 Eleanor F. Hurney is prosecuting the case on behalf of the government. The ATF investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Four Individuals Plead Guilty to Participating in Methamphetamine Distribution ConspiracyRead the Press Release
CONCORD – Heather Dubeau, 38, of Enfield, Andrew Hutchins, 43, Lebanon, Eli Margolis, 40, of Grantham, and Gary Sewell, 40, of Enfield have pleaded guilty this month in federal court to conspiracy to distribute, and possess with intent to distribute, methamphetamine, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, the defendants were involved in a conspiracy to ship methamphetamine from Arizona to New Hampshire. In May of 2019, Drug Enforcement Administration agents were alerted to suspicious parcels sent from Sewell and Dubeau in Arizona to two different addresses in New Hampshire. Investigators obtained a warrant to open the packages and found that one contained over 336 grams of methamphetamine and the other contained over 665 grams of methamphetamine.
After obtaining an anticipatory search warrant for the New Hampshire addresses, investigators conducted controlled deliveries of each package with the drugs removed from the package. Investigators observed Margolis collect one package after it was delivered. Investigators learned that Hutchins provided co-defendants Sewell and Dubeau with an address to ship the methamphetamine. The methamphetamine was intended for further distribution.
Dubeau pleaded guilty on May 4, 2022, and is scheduled to be sentenced on October 20, 2022. Hutchins pleaded guilty on May 5, 2022, and is scheduled to be sentenced on August 30, 2022. Margolis pleaded guilty on May 27, 2022, and is scheduled to be sentenced on November 17, 2022. Sewell pleaded guilty on May 6, 2022, and is scheduled to be sentenced on October 24, 2022.
Two other co-defendants previously pleaded guilty. Dylan Miles pleaded guilty on February 15, 2022, and is scheduled to be sentenced on November 3, 2022. Chad Rombow pleaded guilty on January 26, 2022, and is scheduled to be sentenced on October 25, 2022.
This matter was investigated by the United States Postal Inspection Service and Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorney Anna Krasinski.
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Four Individuals Indicted for Money Laundering ConspiracyRead the Press Release
CONCORD –Sunna Sepetu, 35, of Nashua, Nafis Quaye, 45, most recently of Shrewsbury, Massachusetts, Stella Osabutey, 36, of Worcester, Massachusetts and Samuel Ansah, 31, whose whereabouts are currently unknown, were indicted by a federal grand jury and charged with participating in a conspiracy to commit money laundering, United States Attorney Jane E. Young announced today. Ansah was also charged with five counts of wire fraud in the indictment.
Quaye and Sepetu were arraigned on Wednesday, May 25, 2022, and were released on personal recognizance. Osabutey waived arraignment and Ansah remains at large. Anyone with information about Ansah’s whereabouts is asked to contact their nearest Homeland Security Investigations field office or U.S. Embassy or consulate.
The indictment, which was unsealed on May 25, 2002, alleges that Ansah, and other unknown individuals, assumed false identities which were then used to establish relationships online with two victims. Through deceptive and false pretenses over many years, Ansah directed the victims to transfer large sums of United States currency to companies controlled by the other defendants who then conducted additional financial transactions designed to conceal the nature, location, source, ownership, and control of the proceeds. According to statements made in court, the victims in this case were victims of elder fraud.
The charges in the indictment are only allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by Homeland Security Investigations. The case is part of the Department of Justice’s Elder Justice Initiative, which supports and coordinates the Department’s enforcement and programmatic efforts to combat elder abuse, neglect and financial fraud and scams that target our nation’s older adults. The case is being prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 7 days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.
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Former X-Ray Technologist Pleads Guilty to Distributing Child Sexual Abuse Videos over the InternetRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that George Thomas Griffiths, Jr. (42, Ponte Vedra Beach) has pleaded guilty to distributing videos depicting young children being sexually abused. He faces a mandatory minimum penalty of 5 years, and up to, 20 years in federal prison, and a potential life term of supervised release. A sentencing date has not yet been set.
According to court documents, an FBI task force officer began an undercover online investigation using a particular social media application (app) to identify individuals attempting to sexually exploit children using the internet. From February 3, 2020, through February 20, 2020, an individual user named “ban_me_again,” who was subsequently identified as Griffiths, uploaded to a chat room on the app several videos that featured children, including an infant child, being sexually abused. Meanwhile, the St. Johns County Sheriff’s Office (SJSO) received information from the National Center for Missing and Exploited Children (NCMEC) that the same app had reported that this same user had uploaded videos depicting child sexual abuse materials during this same time period. Further investigation revealed that Griffiths had distributed these contraband videos over the internet from his residence in Ponte Vedra Beach and from his place of employment. At that time, Griffiths worked at a health care facility in Jacksonville as an x-ray technologist.
On November 19, 2020, SJSO detectives and agents from Homeland Security Investigations executed a search warrant at Griffiths’ residence and seized an Apple iPhone used by Griffiths. During an interview with law enforcement, Griffiths stated that he used the particular app to talk to people over the internet. He also stated that it was “possible” that he exchanged pictures and videos on the app, and that these materials “possibly” included “bestiality” involving both adults and children. When asked how many times he had distributed child sexual abuse materials, Griffiths first responded, “I don’t know” and then clarified, “more than one or two.”
Subsequent examination of Griffiths’ iPhone revealed that it contained at least 2,000 images and at least 10 videos depicting children being sexually abused, including infants and toddler-aged children.
This case was investigated by the St. Johns County Sheriff’s Office, the Federal Bureau of Investigation, and Homeland Security Investigations, with the assistance of the National Center for Missing and Exploited Children. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Vermont Man Pleads Guilty to Attempted Escape from CustodyRead the Press Release
CONCORD - Jaimour Anderson, 36, formerly of Vermont, pleaded guilty in federal court to one count of attempted escape from custody, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, Anderson was sentenced to 139 months on drug charges in November 2012 in the District of Vermont. On or about November 16, 2021, the Bureau of Prisons (BOP) transferred Anderson from a correctional facility in Louisiana to a half-way house located in Manchester, New Hampshire to start his pre-release programming in advance of his then-projected release date of May 9, 2022.
Following some infractions at the half-way house, the BOP decided to bring Anderson back into custody. On December 31, 2021, a deputy U.S. Marshal and two sheriffs arrived at the half-way house to take custody of Anderson. As Anderson came into the front desk area on the first floor, he proceeded to move quickly past the deputy marshal and out the front door. Anderson made it onto the street where he was then restrained by the deputy marshal and taken into custody.
Anderson is scheduled to be sentenced on September 18, 2022.
This matter was investigated by the United States Marshals Office. The case is being prosecuted by Assistant U.S. Attorney Charles Rombeau.
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Former Operations Manager Pleads Guilty to Embezzling $2.6 Million+ from Italian Shipping CompanyRead the Press Release
A Euless woman pleaded guilty on Friday to embezzling more than $2.6 million from her former employer, an international global logistics and freight forwarding company, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Vika Latai Moa, 36, was charged via felony information on March 17 and pleaded guilty to wire fraud before U.S. Magistrate Judge Irma Ramirez on March 27.
In court documents, Ms. Moa admitted that between June 2016 and October 2019, she was employed as an operations manager at Savino Del Bene USA, Inc. (Savino USA) in the Dallas area.
Savino USA, headquartered in New Jersey, is the American subsidiary of Savino Del Bene S.p.A., a global logistics and freight forwarding company based in Florence, Italy. Among other things, Savino USA provides transportation services to its customers in the United States by subcontracting local deliveries to third-party trucking companies.
In her role at Savino USA, Ms. Moa was responsible for selecting and paying these local subcontractors.
Between June 2016, and October 2019, Ms. Moa falsely represented to Savino USA employees that invoices for trucking services were owed, which caused Savino USA to pay more than $2.6 million to a bank account to which she had access.
For instance, as part of her scheme to misappropriate funds from Savino USA, Ms. Moa misrepresented to Savino USA employees that a fictitious business was an actual transportation company. She created fraudulent invoices for trucking services that the fictitious business purportedly provided to Savino USA.
Ms. Moa then directed Savino USA to pay the fictitious business based on these false invoices, knowing full well that the company did not perform any services for Savino USA, as it was not a real business and did not have any operations
Ms. Moa faces up to 20 years in federal prison. As part of the plea agreement, she also agreed to pay restitution in the amount of $2,623,888.44. Her sentencing is scheduled for September 22 before U.S. District Court Judge Karen Gren Scholer.
The Federal Bureau of Investigation’s Dallas Field office conducted the investigation. Assistant U.S. Attorney Fabio Leonardi is prosecuting the case.
Former Middle School Paraprofessional Charged in Child Sextortion SchemeRead the Press Release
MINNEAPOLIS – A Coon Rapids man has been charged in a sextortion scheme that targeted minors through social media and an online gaming forum, announced U.S. Attorney Andrew M. Luger.
According to court documents, Glen Robert Anderson, 24, previously worked as a middle school paraprofessional in special education. Anderson used multiple internet applications and social media accounts for email, file sharing, and chatting with minors, including Snapchat and Grindr. Anderson also owned and administered an online gaming forum. To participate in the forum, users were required to submit an application, which included the age of the user. As Anderson knew, many of the users were minors. Between April 1, 2016, through August 20, 2021, Anderson used his position as the forum administrator to groom minors to produce child pornography and engage in sexual activity with him, including by providing minors with in-game perks, privileges, and other gifts. For example, Anderson coerced a 13-year-old victim to engage in sexually explicit acts for the purpose of producing images and videos. Anderson later threatened to release those sexually explicit images if the victim did not respond to Anderson’s demands.
Anderson is charged with two counts of production of child pornography, one count of enticement of a minor, and one count of interstate communications with intent to extort. If convicted, Anderson faces a minimum statutory penalty of 15 years in prison. He will make his initial appearance in U.S. District Court before Judge Patrick J. Schiltz at a later date.
This case is brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. Click on the “resources” tab for information about Internet safety education.
This case is the result of an investigation conducted by the FBI, the Anoka County Sheriff's Office, the Erie County (Ohio) Sheriff's Office, with assistance from the Minnesota Bureau of Criminal Apprehension and Waterloo Regional Police Service in Ontario, Canada.
Assistant U.S. Attorney Miranda E. Dugi is prosecuting the case.
The charges contained in the information are merely accusations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former CEO Indicted for Misleading Investors about COVID-19 Rapid Test KitsRead the Press Release
An indictment was returned today by a federal grand jury in New Jersey, charging the former chief executive officer of a publicly-traded health care company (referred to in the indictment as Company-1) with two counts of securities fraud for his alleged participation in a scheme to mislead investors about Company-1’s procurement of COVID-19 rapid test kits in the early days of the COVID-19 pandemic.
According to court documents, Marc Schessel, 62, of Greenwich, Connecticut, caused Company-1 to issue multiple public statements claiming that Company-1 was buying and reselling at least 48 million COVID-19 test kits, despite knowing that such statements were false and misleading. Specifically, in early April 2020, Schessel executed a supply agreement with an Australian company (the Supply Company) to obtain two million COVID-19 test kits per week for six months beginning on April 24, 2020. The agreement was based on the Supply Company’s representations that it had the U.S. Food and Drug Administration’s (FDA) permission to distribute COVID-19 tests in the United States and was already distributing COVID-19 tests. Contemporaneously, Schessel received a purchase order from a U.S.-based company that planned to purchase the weekly shipments of two million COVID-19 test kits from Company-1.
Despite learning new information on or about April 11, 2020, that called into question whether the Supply Company had COVID-19 tests to sell to Company-1 that could be distributed in the United States, Schessel caused Company-1 to issue a press release on April 13, 2020, in which it announced the purchase order for 48 million COVID-19 rapid test kits. Following this press release, Schessel received additional information that further called into question Company-1’s arrangements for the COVID-19 test kits. Despite learning facts that cast significant doubt on the status of the COVID-19 test kit deals, Schessel repeatedly confirmed the status and terms of those arrangements on numerous occasions between approximately April 13, 2020, and April 17, 2020. In the wake of these announcements, Company-1’s share price surged, rising by over 400%, from approximately $2.25 to an intraday high of $14.88. As a result of this scheme, investors lost at least $116 million.
“Schessel allegedly took advantage of the COVID-19 crisis as an opportunity to scam investors and manipulate the market,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Today’s indictment reinforces our commitment to rooting out schemes that have exploited the pandemic and holding accountable those who have prioritized greed during an unprecedented public health emergency.”
“As alleged in the indictment, Marc Schessel exploited the scarcity of COVID-19 tests at the outset of the pandemic to defraud investors and artificially increase his company’s stock price,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “His alleged fraud cost investors millions of dollars in losses.”
“It is unacceptable to fraudulently capitalize on a national health emergency,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI, in tandem with our law enforcement partners, will continue to investigate anyone who undermines public safety and will bring those who commit fraud to justice.”
Schessel is charged with two counts of securities fraud. If convicted, he faces a total maximum penalty of up to 45 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI’s Newark Division is investigating the case.
Acting Principal Assistant Chief Justin Weitz and Trial Attorneys Lucy Jennings and Spencer Ryan of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Lauren Repole and Sean Sherman for the District of New Jersey are prosecuting the case.
The Fraud Section uses the Victim Notification System (VNS) to provide victims with case information and updates related to this case. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing [email protected]. To learn more about victims’ rights, please visit: https://www.justice.gov/criminal-vns/victim-rights-derechos-de-las-v-ctimas.
An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former CEO Indicted for Misleading Investors About COVID-19 Rapid Test KitsRead the Press Release
NEWARK, N.J. – The former chief executive officer of a publicly traded health care company was charged in an indictment filed today with two counts of securities fraud in connection with his alleged participation in a scheme to mislead investors about the company’s procurement of COVID-19 rapid test kits in the early days of the pandemic, U.S. Attorney Philip R. Sellinger, District of New Jersey, and Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division announced.
Marc Schessel, 62, of Greenwich, Connecticut, is charged by indictment with two counts of securities fraud. He is scheduled to make his initial court appearance June 7, 2022, in Newark federal court.
“As alleged in the indictment, Marc Schessel exploited the scarcity of COVID-19 tests at the outset of the pandemic to defraud investors and artificially increase his company’s stock price,” U.S. Attorney Sellinger said. “His alleged fraud cost investors millions of dollars in losses.”
“Schessel allegedly took advantage of the COVID-19 crisis as an opportunity to scam investors and manipulate the market,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Today’s indictment reinforces our commitment to rooting out schemes that have exploited the pandemic and holding accountable those who have prioritized greed during an unprecedented public health emergency.”
“It is a different type of profiteer who tries to benefit from a national disaster such as a weather event or a pandemic,” FBI Acting Special Agent in Charge Michael Messenger said. “This defendant allegedly took advantage of the public’s angst and panic over a deadly virus and put forward false information to drive up his bottom line. The FBI is committed to fighting fraud and protecting the public at all times, but especially when our country is in the midst of a crisis.”
According to documents filed in this case and statements made in court:
Schessel caused his company to issue multiple public statements claiming that it was buying and reselling at least 48 million COVID-19 test kits, despite knowing that such statements were false and misleading. In early April 2020, Schessel executed a supply agreement with an Australian company to obtain 2 million COVID-19 test kits per week for six months, beginning on April 24, 2020. The agreement was based on the Australian company’s representations that it had the appropriate permissions from the U.S. Food and Drug Administration (FDA) and was already distributing COVID-19 tests. Contemporaneously, Schessel received a purchase order from a U.S.-based company that planned to purchase the weekly shipments of 2 million COVID-19 test kits from Schessel’s health care company.
Despite learning new information on April 11, 2020, that called into question whether the Australian company had COVID-19 tests to sell to Schessel’s company that could be distributed in the United States, Schessel caused his company to issue a press release on April 13, 2020, in which it announced the purchase order for 48 million COVID-19 rapid test kits. Following this press release, Schessel received additional information that further called into question his company’s arrangements for the COVID-19 test kits. Despite learning facts that cast significant doubt on the status of the COVID-19 test kit deals, Schessel repeatedly confirmed the status and terms of those arrangements on numerous occasions between April 13, 2020, and April 17, 2020. In the wake of the April 13 announcement, the health care company’s share price surged, rising by over 400 percent from approximately $2.25 per share to an intraday high of $14.88. per share. As a result of this scheme, investors lost at least $116 million.
The first count of securities fraud is punishable by a maximum of 20 years in prison and the second count of securities fraud is punishable by a maximum of 25 years in prison.
U.S. Attorney Sellinger and Assistant Attorney General Polite credited special agents of the FBI, under the direction of Acting Special Agent in Charge Messenger, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Sean Sherman and Lauren Repole of the District of New Jersey, and Acting Principal Assistant Chief Justin Weitz and Trial Attorneys Lucy Jennings and Spencer Ryan of the Criminal Division’s Fraud Section.
The Fraud Section uses the Victim Notification System (VNS) to provide victims with case information and updates related to this case. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing [email protected]. To learn more about victims’ rights, please visit: https://www.justice.gov/criminal-vns/victim-rights-derechos-de-las-v-ctimas.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Father and son sentenced to prison for money laundering and illegal marijuana businessRead the Press Release
Seattle – A father and son who ran a multimillion-dollar illegal marijuana business in Monroe, Washington, were each sentenced to five-year prison terms today, on drug and money laundering charges, announced U.S. Attorney Nick Brown. Kenneth Warren Rhule, 28, was sentenced to five years in prison for conspiracy to manufacture and distribute marijuana and laundering monetary instruments. Kenneth John Rule, 47, was sentenced to five years in prison for conspiracy to manufacture and distribute marijuana. U.S. District Judge John C. Coughenour noted the size of the enterprise, and the presence of firearms justified the five-year prison terms.
“Not only did this pair produce and distribute marijuana products on the dark web, in violation of the state’s regulatory scheme, they also illegally laundered immense amounts of bitcoin that their enterprise earned,” said U.S. Attorney Nick Brown. “When law enforcement moved in there were more than a dozen firearms – some loaded and ready to be used to protect their drug trade.”
Kenneth W. Rhule first came to the attention of law enforcement for his money laundering activity. In April 2o18, law enforcement became aware that someone with the screen name “Gimacut93” was operating an unlicensed bitcoin exchange business. At various locations–primarily Starbucks coffee shops–in Western Washington, Kenneth W. Rhule met repeatedly with an undercover agent posing as a criminal who needed to launder funds. Through their conversations the undercover agent made it seem they were laundering money related to human trafficking activities. Rhule agreed to exchange bitcoin for cash apparently knowing the cash was the proceeds of criminal activity. In fact, Rhule offered the undercover agent advice on virtual currency and how to hide the source of the funds. Rhule asked the agent no questions as required under the “know your customer” rule. Altogether, Rhule exchanged $142,000 worth of bitcoin for cash with the undercover agent.
Even as he was engaged in the operation of the unlicensed financial exchange business, Rhule and his father Kenneth J. Rhule, were operating a marijuana products business that had no license with the State of Washington and paid no taxes to the state. The facility, based in Monroe, Washington, manufactured hash oil and other marijuana products using the names HerbinArtisans, Heady.Watr, and KlearKrew, among others. Electronic messages reviewed in the case indicate the Rhules sold various marijuana products for cash or cryptocurrency to customers nationwide.
The investigation revealed that the Rhules made over $13 million is sales from their business with a net profit of $2.5 million.
In asking for prison time for both men, prosecutors noted that they worked to subvert the state regulatory scheme. “…[T]he state has set up a regulatory framework to serve many important purposes, including ensuring the safety of those who produce and consumer marijuana products. The state is also, of course, entitled to tax the marijuana industry. Yet the defendants ignored all this. Perhaps, as is so often true in fraud cases, they were motivated by simple greed. But in running their business in this way, they put a lot of people at risk, and disadvantaged others in the industry who chose to play by the rules.”
The case was investigated by Homeland Security Investigations and the Drug Enforcement Administration, with valuable assistance from state and local law enforcement agencies.
The case was prosecuted by Assistant United States Attorneys Philip Kopczynski, Casey Conzatti, and Krista Bush.
Monroe facility Monroe facilityFBI Impersonator Sentenced to 5 Years in Prison for Impersonating a Federal Officer, Wire Fraud, and StalkingRead the Press Release
FRESNO, Calif. — Ivan Isho, 44, of Peoria, Arizona, was sentenced today by U.S. District Judge Dale A. Drozd to five years in prison for wire fraud, false impersonation of a federal officer, and stalking, U.S. Attorney Phillip A. Talbert announced.
On March 4, 2022, a federal jury found Isho guilty of the charges.
According to court documents and evidence presented at trial, in 2016 and 2017, Isho pretended to be an FBI Special Agent and falsely represented to his victims, members of the Assyrian community in Ceres, that he could help them obtain visas for their family members living outside the United States. He displayed fake FBI credentials and a gun to aid his misrepresentations to his victims. They paid him thousands of dollars, including by means of interstate wire transmission, and provided him with copies of personal family documents. However, Isho had no ability to obtain and never helped to obtain visas for the victims’ family members. Isho was never employed in any capacity by the FBI.
Additionally, between April 2017 and April 2018, Isho held himself out as an FBI Special Agent to a female victim whom he harassed by means of repeated phone calls and threatening and harassing voicemail messages to both the victim and her husband.
Isho testified at trial, claiming he only possessed the fake FBI credentials as part of a Halloween costume, despite recordings in evidence of the defendant’s voicemails claiming to be with the FBI received in the months of April 2017 and August 2017. He further admitted to threatening the stalking victim with abusive language and various threats.
At sentencing, Judge Drozd found that Isho’s false testimony at trial amounted to obstruction of justice.
This case was the product of an investigation by the FBI. Assistant U.S. Attorney Laura Jean Berger prosecuted the case.
El Departamento de Justicia llega a un acuerdo con un franquiciado de McDonald’s que resuelve unas acusaciones de discriminación relacionada con la inmigraciónRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con Sutherland Management Company, cuyo nombre comercial es McDonald’s, un franquiciado radicado en California que opera cuatro locales de McDonald’s por la zona de San Diego. El acuerdo resuelve unas acusaciones de que la compañía había discriminado a no ciudadanos de los EE. UU. a la hora de comprobar su permiso para trabajar en los Estados Unidos.
«Según las leyes federales, los empleadores no pueden discriminar a los trabajadores y pedirles más documentos de los que sean necesarios o pedirles documentos específicos, para probar que tienen permiso para trabajar, debido a su estatus de ciudadanía, estatus migratorio o nacionalidad de origen», afirmó Kristen Clarke, la Fiscal Federal Auxiliar de la División de Derechos Civiles. «Los empleados –tanto ciudadanos de los EE. UU. como no ciudadanos de los EE. UU– tienen el derecho a elegir los documentos válidos y aceptables que desean presentar para probar que tienen permiso para trabajar. «La División de Derechos Civiles seguirá luchando contra la discriminación ilícita por motivos de ciudadanía, estatus migratorio o nacionalidad de origen. Aguardamos con interés la colaboración de Sutherland Management Company para asegurar el cumplimiento con este acuerdo y las leyes federales pertinentes».
La investigación del Departamento comenzó después de que un no ciudadano de los EE. UU. se quejó de que Sutherland Management Company se había negado a aceptar su documentación válida que demostraba su permiso para trabajar y exigía que les facilitara otro documento. La investigación del Departamento reveló que, de forma habitual, la compañía discriminaba a trabajadores no ciudadanos de los EE. UU., principalmente a residentes permanentes legales, al pedirles que presentasen documentos específicos expedidos por el Departamento de Seguridad Nacional para demostrar su permiso para trabajar en los Estados Unidos. Por otra parte, la investigación reveló que Sutherland Management Company se negó a permitir que el trabajador que se había quejado comenzara a trabajar hasta no presentar la documentación necesaria. Según las leyes federales, todo empleado tiene el derecho a elegir la documentación válida que desea presentar para demostrar que cuenta con permiso para trabajar en los Estados Unidos.
La disposición antidiscriminatoria de la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) prohíbe que los empleadores pidan más documentos de los que sean necesarios –o que especifiquen el tipo de documentación que un trabajador debe presentar– para demostrar su permiso para trabajar, debido a la ciudadanía, estatus migratorio o nacionalidad de origen del trabajador.
Conforme el acuerdo, Sutherland Management Company pagará una sanción civil a los Estados Unidos que asciende a $40,000, emitirá pagos retroactivos al trabajador que se había quejado por concepto de salario perdido, revisará sus políticas de empleo para garantizar el cumplimiento de las mismas con la disposición antidiscriminatoria de la INA y capacitará a sus empleados que sean responsables de verificar el permiso de los trabajadores para trabajar en los Estados Unidos.
La Sección de Derechos de Inmigrantes y Empleados de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. La ley prohíbe la discriminación por motivos de estatus migratorio o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; prácticas documentales injustas y represalias e intimidación.
Para aprender más sobre la labor de la IER y cómo conseguir ayuda, vea este vídeo corto. Aprenda más sobre cómo los empleadores pueden evitar la discriminación por motivos de estatus de ciudadanía en el sitio web de la IER. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su estatus migratorio, ciudadanía o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected]; inscribirse a un seminario en línea gratuito; o visitar los sitios web de la IER en inglés o español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery.
Dallas Man Sentenced to Federal Prison for Sex Trafficking ChildrenRead the Press Release
PLANO, Texas – A Dallas man has been sentenced to 20 years in federal prison for sex trafficking of children in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Laderrick Dedemon Smith, also known as “Freeway,” 22, pleaded guilty on August 24, 2021, to sex trafficking of children and was sentenced to 240 months in federal prison by U.S. District Judge Sean D. Jordan on May 26, 2022.
According to information presented in court, in April 2020, HSI and the Arlington Police Department, with the assistance of the Tarrant County Sheriff's Office, rescued a minor victim who had been sex trafficked by Smith, including during the COVID pandemic lockdown. Through investigation, officers learned that Smith had trafficked the minor victim, and others, out of a hotel room in Plano, within the Eastern District of Texas. Smith placed ads on sites with photographs of the minor victims and offered them for sex. Smith communicated with prospective buyers, set rates, and arranged for the commercial sex acts. Smith also installed a tracking device on the minor victim's cell phone so that the minor could not leave the hotel, obtain food, or seek medical treatment without his knowledge. In sentencing Smith, the district court found that Smith kept the minor victim in his custody, care, and supervisory control, and that Smith unduly influenced the minor victim to engage in commercial sex through fear of bodily injury. The Court ultimately sentenced Smith to a total term of imprisonment of 20 years, to be followed by a term of supervised release of 15 years, during which time Smith will be required to register as a sex offender.
“Protecting children from predators like Smith is one of our top priorities,” said U.S. Attorney Brit Featherston. “I’m proud of the work our partners at the North Texas Trafficking Task Force do hunting for those who prey on children. He who harms a child will suffer the wrath of law enforcement and will be arrested and prosecuted to the fullest extent of the law.”
“Child sex trafficking is one of the most deviant crimes we investigate in our agency,” said acting Special Agent in Charge Christopher Miller, HSI Dallas. “The work of our law enforcement partners of the North Trafficking Task Force has proven to be invaluable in removing these dangerous predators from our communities, while at the same time providing much needed assistance to those victimized by their perpetrators.”
This case was investigated by Homeland Security Investigations-led North Texas Trafficking Task Force and the Arlington Police Department and prosecuted by Assistant U.S. Attorney Marisa Miller.
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Cleveland Career Criminal Sentenced to 15 Years in Prison for Illegal Possession of a FirearmRead the Press Release
First Assistant U.S. Attorney Michelle M. Baeppler announced that Leandre D. McFarland, 33, of Cleveland, was sentenced on Monday, May 23, 2022, to 15 years in prison by U.S. District Judge Sara Lioi after McFarland pleaded guilty to being a felon in possession of a firearm.
According to court documents, on January 8, 2020, authorities with the Ohio Adult Parole Authority conducted a home visit of Defendant McFarland who, at the time, was on parole after serving a 12-year prison sentence. Upon arrival, authorities encountered McFarland and searched a room he was known to occupy after discovering marijuana in the room. During the search, officers obtained a loaded firearm in a pocket connected to McFarland’s bed. McFarland later admitted to owning the weapon and stated that he needed it for protection. The firearm was reported stolen from a vehicle in Steubenville, Ohio.
McFarland is prohibited from possessing a firearm due to multiple previous convictions of aggravated robbery, felonious assault and kidnapping in the Cuyahoga County Common Pleas Court. McFarland qualified as an Armed Career Criminal during sentencing due to prior felony convictions for violent offenses committed on separate occasions.
This case was investigated by the FBI, Cleveland Police and the Ohio Adult Parole Authority. This case was prosecuted by Assistant U.S. Attorney Scott C. Zarzycki.
California Man Sentenced to 10 Years in Federal Prison for Trafficking MethamphetamineRead the Press Release
BOISE – A California man was sentenced to 10 years in federal prison for possession of methamphetamine with intent to distribute.
According to court records, on May 25, 2021, Raul Garcia, 41, of Woodland, California, was found in possession of nearly four pounds of methamphetamine during a traffic stop in Nampa, Idaho. Garcia admitted to possessing the methamphetamine with the intent to distribute it to other people.
Garcia has a criminal history spanning two decades and includes Idaho and California convictions for grand theft, domestic violence, possession of a controlled substance with the intent to deliver, injury to a child, and assault.
Senior U.S. District Judge Bill R. Wilson, from the Eastern District of Arkansas, sitting by designation, also ordered Garcia to serve five years of supervised release following his prison sentence. Garcia pleaded guilty to the charge on February 23, 2022.
U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the cooperative efforts of the Nampa Police Department and Treasure Valley Metro Violent Crimes Task Force, which led to charges.
This case was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit www.treasurevalleypartners.org.
This case was investigated by Treasure Valley Metro Violent Crimes Task Force. The Task Force is comprised of federal, state, and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Ada County Sheriff’s Office; Boise Police Department; Caldwell Police Department; Canyon County Sheriff’s Office; Meridian Police Department; Nampa Police Department; and Idaho Department of Correction.
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Colorado Man Sentenced to 18 Months in Federal Prison and Ordered to Pay over $350,000 in Restitution for Failing to Pay Employment TaxesRead the Press Release
United States Attorney Bob Murray announced today that CURTIS ALAN PERRY, of Windsor, Colorado, was sentenced on 12 counts of failure to account for and pay trust fund taxes. He appeared before United States District Court Judge Nancy D. Freudenthal on May 23, 2022. The court sentenced Perry to 18 months’ imprisonment followed by 3 years of supervised release and ordered Perry to pay $356,280.37 in restitution and a $1,200 special assessment.
Between 2013 and 2016, Curtis Perry operated an ammunition-manufacturing-and-sales business in Laramie, Wyoming, which made and marketed ammunition under the Ammo Kan brand. Although he withheld federal taxes from his employees’ paychecks, Perry did not pay those taxes to the Internal Revenue Service. Instead, Perry used the unpaid employment taxes to support himself and his business. Following indictment, Perry pled guilty to 12 counts of tax evasion. The sentencing judge found that Perry also evaded federal excise taxes on ammunition sales. The total tax loss to the United States government caused by Perry was approximately $356,280.
“Employment tax evasion results in the loss of tax revenue to the U.S. government and the loss of future Social Security and Medicare benefits for those employees,” said United States Attorney Bob Murray. “Each year, the vast majority of Wyoming businesses follow the tax laws and pay their fair share. Those who willfully evade such obligations should fully expect to be held accountable for their criminal conduct. Thanks to our partners at the IRS Criminal Investigation Division and the Alcohol and Tobacco Tax and Trade Bureau for their investigative efforts in this case.”
“The sentence handed down today is a direct reflection of the seriousness of Mr. Perry’s crimes,” said Andy Tsui, Special Agent in Charge, IRS Criminal Investigation Denver Field Office. “Not only is Perry guilty of crimes against the federal government, but he also attempted to obstruct the IRS’s investigation. These actions will not be tolerated, and the judge’s ruling sends a clear message to others that may believe they are above the law.”
This case was investigated by the Internal Revenue Service Criminal Investigation’s Denver Field Office, and Alcohol and Tobacco Tax and Trade Bureau. United States Attorney Eric J. Heimann prosecuted the case at sentencing.
Case No. 20-cr-00126-NDF
Burlington Man Sentenced for Possession with Intent to Distribute Cocaine BaseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on May 31, 2022, Hussein Mubarak, 21, of Burlington, Vermont, was sentenced by U.S. District Judge Christina Reiss to 10 months’ imprisonment and a 3-year term of supervised release for possession with intent to distribute cocaine base.
As Mubarak admitted in his guilty plea hearing, the Burlington Police Department encountered him on May 14, 2021, when Mubarak was found to possess two plastic bags containing cocaine base in his pants pocket. Mubarak further admitted that the quantity of cocaine base found in his pants pocket was consistent with distribution and not personal use. As described in court records, when Burlington Police Department officers arrested Mubarak on September 5, 2021, Mubarak possessed a semiautomatic handgun. As a result of this federal felony conviction, Mubarak will now be prohibited from obtaining or possessing firearms.
United States Attorney Nikolas P. Kerest commended the efforts of the Bureau of Alcohol, Tobacco, Firearms & Explosives as well as the Burlington Police Department in the investigation and prosecution of Mubarak. Assistant U.S. Attorney Andrew C. Gilman was the prosecutor on the case. Mubarak was represented by Assistant Federal Public Defender Sara M. Puls.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. https://www.justice.gov/psn
Boone County Man Sentenced to 280 Months for Fentanyl TraffickingRead the Press Release
COVINGTON, Ky.— A Florence, Ky., man, William Freddy Jackson, 43, was sentenced to 280 months in federal prison on Tuesday, by U.S. District Judge David Bunning, after pleading guilty to possession with intent to distribute 40 grams or more of fentanyl, with a prior conviction for a serious drug felony.
According to Jackson’s plea agreement, he was the subject of a domestic violence call to law enforcement, on January 24, 2021. Law enforcement then found Jackson in possession of 45.8 grams of fentanyl. Jackson admitted to possession the fentanyl with the intent to distribute it.
Jackson had previously been convicted of two serious drug felonies. Jackson was convicted of possession with intent to distribute crack cocaine on two separate occasions.
Jackson pleaded guilty in February 2022.
Under federal law, Jackson must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for eight years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Kent Kleinschmidt, Special Agent in Charge, DEA, Detroit Filed Office; and Chief Tom Grau, Florence Police Department, jointly announced the sentence.
The investigation was conducted by the DEA and Florence Police Department. The United States was represented by Assistant U.S. Attorney Anthony Bracke.
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Berkeley County man admits to drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Ronald Craig Fletcher, of Bunker Hill, West Virginia, has admitted to selling methamphetamine, United States Attorney William Ihlenfeld announced.
Fletcher, also known as “Ronnie Fletcher,” 53, pleaded guilty today to one count of “Possess with Intent to Distribute Eutylone.” Fletcher admitted having eutylone, also known as “boot,” in May 2021 in Morgan County.
Fletcher faces up to 20 years of incarceration and a fine of up to $1 million. 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 and Explosives; Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative; and the Northwest Virginia Regional Drug and Gang Task Force investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Armed Drug Trafficker Sentenced to Life in Federal Prison for Murder, Gun, and Drug ChargesRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced Sydni Frazier, a/k/a Sid, Junior Boss, and Perry, age 28, of Baltimore, Maryland, to life in federal prison on charges of possession of a firearm in furtherance of a drug trafficking crime resulting in death, conspiracy to distribute more than 100 grams of heroin, possession with intent to distribute heroin and fentanyl, and possession of firearms by a felon. A federal jury convicted Frazier on March 3, 2020.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Commissioner Michael Harrison of the Baltimore Police Department; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
According to the evidence presented at Frazier’s six-day trial, between at least 2014 and 2017, Frazier conspired with others, including members and associates of the MMP gang, to distribute narcotics. For many years, MMP controlled the drug trade in large swaths of Northwest Baltimore City and neighboring Baltimore County, including Forest Park, Windsor Mill, Gwynn Oak, Howard Park, and Woodlawn. The gang’s drug shop in the 5200 block of Windsor Mill Road was particularly lucrative due to its close proximity to Interstate 70, and it frequently attracted drug customers driving from Western Maryland and neighboring states.
The evidence presented at trial established that on August 10, 2016, Frazier and his co-conspirators kidnapped, robbed, and murdered Ricardo Johnson in order to enrich themselves and their drug trafficking conspiracy. The victim was abducted at approximately 2:30 am as he was returning home to his apartment in the 1100 block of West Lanvale Street in Baltimore. Less than four hours later, the victim’s body was discovered in the back of a stolen minivan parked next to the light rail tracks in the 2200 block of Kloman Street. Johnson had been bound by the wrists and ankles, blindfolded, and shot over twenty times. There was partially burned flammable material sticking out of the gas tank of the van, indicating that the killers had attempted to set the van on fire before departing the scene.
Less than twelve hours after Johnson’s body was found, members of the Baltimore Police Department (BPD) attempted to stop Frazier for riding an illegal dirt bike in the 2100 block of Tucker Lane. Frazier fled and was able to get away, but in the process of fleeing, he abandoned the dirt bike as well as a backpack and gloves he had been wearing. The backpack contained two cell phones belonging to Frazier and two loaded 9mm caliber handguns. Both guns were a ballistic match to the 9mm caliber casings recovered from the murder scene. In addition, the BPD DNA and Serology laboratory determined that Frazier’s DNA profile matched DNA from the insides of the gloves, and the victim’s DNA profile matched DNA from the outsides of the gloves. Frazier illegally possessed the two loaded 9mm firearms, as he was prohibited from possessing firearms or ammunition due to previous felony convictions.
With today’s sentencing, all twenty-six defendants charged in this case have been convicted and sentenced, with the gang leader, Dante Bailey, also being sentenced to life in prison, and most of the other defendants receiving between 14 and 30 years in federal prison.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (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.
This case is also part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Erek L. Barron praised the ATF, the Baltimore City and Baltimore County Police Departments, and the Baltimore City and Baltimore County State’s Attorney’s Offices for their work in the investigation and prosecution. Mr. Barron thanked Assistant United States Attorneys Christina Hoffman and Christopher M. Rigali, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Armed Career Criminal Sentenced to Seventeen Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Kathryn Kimball Mizelle today sentenced Samuel Storey (43, Sarasota) to 17 years in federal prison for unlawful possession of a firearm by a felon. The court also ordered Storey to forfeit a Smith & Wesson Bodyguard semi-automatic firearm and seven rounds of ammunition related to the offense. Storey had pleaded guilty on December 3, 2021.
According to court documents, on August 22, 2020, Storey got into altercation with a customer at a convenience store in Sarasota County, during which Storey pointed a firearm at the customer. Storey left the store shortly after the altercation and officers from the Sarasota Police Department responded to the store. Storey returned to the store as the officers were beginning the investigation. One of the officers detained Storey and found a loaded Smith & Wesson firearm in Storey’s pocket during a pat down search. Storey was previously convicted of multiple felonies, including felon in possession of a firearm and ammunition and selling and possessing with the intent to deliver cocaine. He is therefore prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Sarasota Police Department. It was prosecuted by Assistant United States Attorney Charlie D. Connally.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Sunday 29 May 2022
Justice Department Statement on the Mass Shooting at Robb Elementary School in Uvalde, TXRead the Press Release
The U.S. Department of Justice today released the following statement from spokesman Anthony Coley:
“At the request of Uvalde Mayor Don McLaughlin, the U.S. Department of Justice will conduct a Critical Incident Review of the law enforcement response to the mass shooting in Uvalde, Texas, on May 24.
“The goal of the review is to provide an independent account of law enforcement actions and responses that day, and to identify lessons learned and best practices to help first responders prepare for and respond to active shooter events. The review will be conducted with the Department’s Office of Community Oriented Policing.
“As with prior Justice Department after-action reviews of mass shootings and other critical incidents, this assessment will be fair, transparent, and independent. The Justice Department will publish a report with its findings at the conclusion of its review.”
Cincinnati Man Convicted of Assaulting and Brandishing Firearm at Federal Task Force OfficersRead the Press Release
Louisville, KY – After a week-long trial, a federal jury sitting in Louisville, Kentucky, convicted John F. Johnson, also known as Grand Master Jay, on both counts of an indictment that charged him with assaulting a federal task force officer and brandishing a firearm in relation to a crime of violence.
According to court documents and evidence presented at trial, John F. Johnson, 59, on the evening of September 4, 2020, forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with a federally deputized task force officer who was performing official duties, when Johnson aimed a rifle at him. Johnson brandished an AR-15 platform rifle and tactical flashlight at two federally deputized Task Force Officers. Both are detectives with the Louisville Metropolitan Police Department.
Based on the two counts of conviction, Johnson faces a penalty of not less than 7 years in prison. There is no parole in the federal system. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing is scheduled on August 22, 2022, at 11:00am.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky made the announcement.
Assistant U.S. Attorneys Joshua Judd and Joe Ansari prosecuted the case with the assistance of paralegal Adela Alic.
The Federal Bureau of Investigation and the Louisville Metropolitan Police Department investigated the case.
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Saturday 28 May 2022
Lexington Man Convicted of Possessing Stolen Trade SecretRead the Press Release
BOSTON – A Lexington man was convicted on Thursday, May 26, 2022 of possessing a stolen trade secret, the first-ever conviction following a criminal trial of this kind in the District of Massachusetts.
Haoyang Yu, 43, was convicted following a month-long jury trial of possessing the prototype design of a microchip, known as the HMC1022A, which was owned and developed by Analog Devices, Inc. (ADI), a semiconductor company headquartered in Wilmington. The chip is used in aerospace and defense applications. U.S. Senior District Court Judge William G. Young scheduled sentencing for Sept. 15, 2022.
From 2014 to 2017, Yu worked at ADI, where he designed microchips used by the communications, defense and aerospace industries. As a result of his work, Yu had access to ADI’s present and future microchip designs, including their schematic files, design layout files and manufacturing files.
While he was an ADI employee, Yu started his own microchip design firm, Tricon MMIC, LLC, and used the stolen HMC1022A design to manufacture a knock-off version of ADI’s chip. Yu began selling his version of HMC1022A prior to ADI’s release of its chip. ADI cooperated fully in the government’s investigation.
The jury acquitted Yu of other counts of possessing stolen trade secrets, wire fraud, immigration fraud, and the illegal export of controlled technology.
The charge of possessing stolen trade secrets provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael Rollins; James Brigham, Acting Special Agent in Charge of the Department of Commerce, Office of Export Enforcement, Boston Field Office; Matthew B. Millhollin, Special Agent in Charge of the Homeland Security Investigations in Boston; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Michael Wiest, Special Agent in Charge of the Naval Criminal Investigative Service, Northeast Field Office made the announcement. U.S. Customs and Border Protection, Coast Guard Investigative Service, Defense Criminal Investigative Service, Massachusetts State Police, Lexington Police Department and Hingham Police Department provided assistance with the investigation. Assistant U.S. Attorneys Amanda Beck, Jason A. Casey, John A. Capin of Rollins’ National Security Unit are prosecuting the case.