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Friday 27 May 2022
Man Pleads Guilty to Federal Weapons ViolationRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced on Thursday, May 26, 2022, that DEAMONTE BROWN, age 21, resident of New Orleans, LA, pled guilty as charged on May 26, 2022 to a one-count indictment for being a felon in possession of a firearm.
Specifically, BROWN is charged with possessing two firearms on June 10, 2021, in violation of Title 18 United States Code, Sections 922(g)(1), 924(a)(2), and 2. BROWN faces a maximum sentence of 10 years of imprisonment, a fine of up to $250,000, up to 3 years of supervised release, and a mandatory special assessment fee of $100.00. Sentencing is scheduled for August 18, 2022.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice's violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Inga Petrovich of the Violent Crime Unit of the U.S. Attorney's Office.
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Luzerne County Woman Charged with Covid-19 Related FraudRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Angela Castillo, age 38, of Freeland, PA, was charged yesterday in a criminal Information with wire fraud.
According to United States Attorney John C. Gurganus, the Information alleges that between June 2020 and September 2020, on behalf of other individuals and in exchange for payment, Castillo submitted to the United States Small Business Association (SBA) no fewer than forty Economic Injury Disaster Loan (EIDL) applications, all of which contained material misrepresentations. Castillo’s conduct resulted in the SBA paying out approximately $163,000.00 in COVID-19 relief funds to individuals, none of whom actually owned a qualifying small business, and who therefore were not entitled to receive such funds under the EIDL loan program.
The case was investigated by the Internal Revenue Service – Criminal Investigation. Assistant U.S. Attorney Jeffery St John is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
If convicted, the maximum penalty under federal law for this offense is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments 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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Lawrence Woman Sentenced in Cocaine Distribution Conspiracy that Used U.S. Mail ParcelsRead the Press Release
BOSTON – A Lawrence woman was sentenced yesterday in federal court in Boston for her role in a cocaine distribution conspiracy.
Michel Saredi-Munoz Moronta, a/k/a “Michel Saredi-Munoz Morta,” 22, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to time served (approximately 21 months in prison) and four years of supervised release. On Dec. 15, 2021, Munoz Moronta pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 500 grams or more of cocaine.
In or about August 2020, law enforcement identified several Priority Mail packages sent to addresses in Lawrence as suspected to contain illegal narcotics. Officers surveilling the addresses saw a woman, later identified as Munoz Moronta, get out of a car and collect the packages shortly after delivery. Munoz Moronta was subsequently arrested. The packages were found to contain approximately four kilograms of cocaine.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement. The Lawrence Police Department provided valuable assistance in the investigation. Assistant U.S. Attorney Samuel R. Feldman of Rollins’ Narcotics & Money Laundering Unit prosecuted the case.
Kankakee Man Sentenced to Seven Years in Prison for Attempted Enticement of a Minor and Related CrimeRead the Press Release
URBANA, Ill. – A Kankakee, Illinois, man, Jody Lagesse, 48, of the 100 block of North 7th Ave., was sentenced on May 24, 2022, to seven years’ imprisonment in the Bureau of Prisons, to be followed by a 10-year term of supervised release, for attempted enticement of a minor and use of interstate facilities to attempt to transmit information about a minor.
At the sentencing hearing in front of U.S. District Judge Michael M. Mihm, the government presented evidence that on February 14, 2020, Lagesse attempted to persuade, induce, and entice an individual whom he believed had not attained the age of 18 years, to engage in sexual activity. Lagesse also knowingly used means of interstate commerce, the internet and a cellular telephone, with the intent to entice, encourage, offer, and solicit that person to engage in sexual activity.
Lagesse was indicted in March 2020 and pleaded guilty in January 2022.
“Our office is committed to working with federal and local partners to combat the scourge of online predators who target some of the most vulnerable members of our community,” said U.S. Attorney Gregory K. Harris. “Along with these efforts, we urge parents and guardians to closely monitor their children’s internet usage. You are part of our first line of defense against those who seek to victimize children.”
“The internet can be a haven for those intent on exploiting the innocence of children online. That’s why the FBI prioritizes our efforts to identify, investigate and arrest predators, ensuring they are held accountable for their actions.” said FBI Springfield Field Office Special Agent in Charge David Nanz.
“The collaboration between my office and the Department of Justice is essential to identifying individuals who exploit minors, and ensuring those predators are held accountable,” Attorney General Kwame Raoul said. “I appreciate our ongoing partnership with the U.S. Attorney’s office and look forward to continuing to protect Illinois communities from individuals who prey upon children.”
The Federal Bureau of Investigation, Springfield Field Office investigated the case. Special Assistant U.S. Attorney Shannon O’Brien, Deputy Bureau Chief with the Illinois Attorney General’s Office, Internet Crimes Against Children Task, represented the government in the prosecution.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. 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.
Jamaican National Sentenced to 10 Months in Prison for Mail and Wire FraudRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that ACDANE CAMPBELL, age 25, a resident of Jamaica, was sentenced on May 26, 2022 by U.S. District Court Judge Susie Morgan to serve 10 months in prison after previously pleading guilty to a one count indictment for Conspiracy to Commit Mail and Wire Fraud.
According to the indictment, from in or around August 2016, CAMPBELL and others, conspired to obtain money unlawfully by falsely informing elderly victims that they had won a lottery, sweepstakes, or car. The unidentified co-conspirators telephoned the victims, promising them that they would receive their winnings if they first paid taxes and fees.
After being instructed by the unidentified co-conspirators that they needed to send payments to CAMPBELL, the victims would send their payments electronically through either a money services business, FedEx or the United States Postal Service. Working as a “money mule,” CAMPBELL either kept the money that he received from the victims or sent it to unknown persons in Jamaica.
In addition to incarceration, CAMPBELL was sentenced to 1 year of supervised release, ordered to pay a mandatory special assessment fee of $100, to perform 100 hours of community service, and to pay restitution in the amount of $107,747.97. He is also subject to deportation to Jamaica after incarceration.
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 seven days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.
The case was investigated by the United States Postal Inspection Service and Homeland Security Investigations. The case is being prosecuted by Assistant U. S. Attorney Edward J. Rivera.
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Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on May 26 was:
Darwyna Caylynn Bullshows, 25, of Pryor, on charges of assault on a federal officer. If convicted of the most serious crime, Bullshows faces a maximum of 20 years in prison, a $250,000 fine and three years of supervised release. Bullshows was detained pending further proceedings. The FBI investigated the case. PACER case reference. 22-44.
Alex Valladares, 27, address unknown, on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute meth, possession of a firearm in furtherance of a drug trafficking crime, felon in possession of a firearm and possession of a stolen firearm. If convicted of the most serious crime, Valladares faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release on the drug charge and a mandatory minimum five years to life, consecutive to any other term, a $250,000 fine and five years of supervised release on the crime of possessing a firearm in furtherance of drug trafficking. Valladares was detained pending further proceedings. The Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 22-55.
Gregory Duane Hanson, 31, of Billings, on charges of conspiracy to possess with intent to distribute meth, possession with intent to distribute meth and distribution of meth. If convicted of the most serious crime, Hanson faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Hanson was detained pending further proceedings. The Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 22-59.
Darwin Dalton Sutherland, 28, a transient, on charges of prohibited person in possession of a firearm and possession of a stolen firearm. If convicted of the most serious crime, Sutherland faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Sutherland was detained pending further proceedings. The FBI and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 22-63.
Appearing on May 23 was:
James Robert Harrelson, 48, a transient, on charges of conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute controlled substances, and possession of firearm in furtherance of drug trafficking. If convicted of the most serious crime, Harrelson faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release on the drug charge and a mandatory minimum five years to life in prison, consecutive to any other term, a $250,000 fine and five years of supervised release on the firearm charge. Harrelson was detained pending further proceedings. The FBI’s Western Transnational Organized Crime Task Force and the Eastern Montana High Intensity Drug Trafficking Area Task Force investigated the case. PACER case reference. 22-54.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on May 25 was:
Chantel Marie Azure, 33, of Billings, on charges of conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute controlled substances and distribution of fentanyl. If convicted of the most serious crime, Azure faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release on the controlled substances charges. Azure was detained pending further proceedings. The Drug Enforcement Administration and Havre Police Department investigated the case. PACER case reference. 22-21.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Honduran National and MS-13 Member Sentenced to Federal PrisonRead the Press Release
NASHVILLE – Franklin Pineda-Caceras, aka “Bomba,” 22, of Honduras, was sentenced yesterday to 90 months in federal prison for drug distribution and firearms crimes, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
Pineda-Caceras, an MS-13 Gang member, was initially charged in July 2019 with immigration violations, drug trafficking, and firearms violations, after previously being deported from the U.S. He later pleaded guilty to illegal reentry of a previously deported alien; being an illegal alien in possession of ammunition; being an illegal alien in possession of a firearm; possession of a firearm with an obliterated serial number; and possession of marijuana and cocaine with the intent to distribute. Pineda-Caceras proceeded to trial on the charge of possession of a firearm in furtherance of a drug-trafficking crime and was found guilty by a federal jury on February 9, 2022.
According to records filed with the Court, Pineda-Caceras unlawfully entered the United States in January 2014 and was deported in June 2016. Immigration officials later learned that Pineda-Caceras had returned to the United States when they found him, in October 2017, in a residence in Nashville, with digital scales, 41 grams of cocaine, over 44 grams of marijuana, numerous handguns, an assault rifle, and an arsenal of ammunition. Pineda-Caceras was again deported in May 2018.
In January 2019, approximately seven months after his second deportation, Pineda-Caceras returned to the United States and committed a violent crime, when he kidnapped a student from a local area high school and beat the student after the student refused to join the MS-13 street gang. In July 2019, when agents attempted to arrest Pineda-Caceras for this crime, he fled from the police and drove his car through the front yard, where his girlfriend, son, and his girlfriend’s mother stood, nearly striking all three.
Approximately two months later, in September 2019, Pineda-Caceras was involved in a car accident and sustained injuries as a result. Items observed at the scene, and later seized during a search of his car, established that he was involved in drug trafficking. Specifically, when agents searched the car, they found digital scales, baggies, bags of cocaine packaged for resale, a revolver with an obliterated serial number, an AK-47 rifle, and approximately 200 rounds of ammunition. Agents also recovered numerous cellular telephones, which later revealed that Pineda-Caceras was selling drugs in the hours leading up to the crash.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives; Homeland Security Investigations; the Drug Enforcement Administration; and the Metropolitan Nashville Police Department. Assistant U.S. Attorney Ahmed Safeeullah and Trial Attorney Matthew Hoff of the Criminal Division’s Organized Crime and Gang Section prosecuted the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Highlands Ranch Man Sentenced to Federal Prison for Using COVID Relief Funds for Plastic Surgery, Weight Loss and JewelryRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Daniel Stonebarger, age 50, of Highlands Ranch, was sentenced to 41 months in federal prison for fraudulently obtaining funds intended to help small businesses during the COVID-19 pandemic.
According to the plea agreement, between April 5, 2020 and June 10, 2020, the defendant submitted numerous fraudulent applications for Economic Injury Disaster Loans and Grants (EIDLs and EIDGs), and Paycheck Protection Program loans (PPP) through the Small Business Administration. The defendant used new and existing business names to apply for these loans, and falsified creation dates of businesses, numbers of employees, revenues, and costs. In total, the defendant fraudulently obtained $855,252.50 in EIDL, EIDG, and PPP funds. The defendant also applied for Colorado Pandemic Unemployment Assistance. As a result of this fraudulent claim he was paid $28,142 by the Colorado Department of Labor and Employment (CDLE). The defendant used these funds to pay for, among other things, plastic surgery for a relative, a weight loss program, bridal expenses, jewelry, a Peloton, travel, and resort expenses.
“This defendant took money that was supposed to be used to provide emergency financial assistance to small businesses and individuals suffering adverse economic effects caused by the COVID-19 pandemic. Prosecuting pandemic fraud is a priority of the Department of Justice and an ongoing focus for investigators here in Colorado,” said U.S. Attorney Cole Finegan.
“This defendant was a criminal opportunist who took advantage of what he saw as easy money through programs created to keep businesses afloat during the pandemic,” said FBI Denver Special Agent in Charge Michael Schneider. “This outcome is a reminder that the FBI aggressively pursues those who try to defraud the federal government.”
“We continue the pursuit of those who exploit taxpayer-funded relief programs for their own illicit gain,” said Marc DellaSala, Special Agent in Charge, U.S. Secret Service Denver Field Office. “Along with partners at the Federal Bureau of Investigation, our unified law enforcement community has taken unprecedented measures to identify, locate, and arrest those responsible for pandemic-related fraud. I want to thank the U.S. Attorney’s Office for its tireless support of these efforts.”
“We created the Colorado Unemployment Fraud Task Force to investigate and prosecute those who steal critical pandemic-related government funds for personal gain. I am thankful and proud of the collaboration between the task force and the U.S. Attorney’s office that enabled us to bring this defendant to justice for defrauding the government. When the public is cheated, we are all cheated and we’ll continue to hold fraudsters accountable,” said Colorado Attorney General Phil Weiser.
United States District Court Judge Raymond P. Moore sentenced the defendant on May 26, 2022 to 41 months in federal prison. In addition to his prison sentence, the defendant was ordered to serve three years of supervised release. He was also ordered to pay $794,462.08 in restitution to the SBA and $28,142 to the CDLE. The Court also issued a forfeiture money judgment in the amount of $822,794.50.
The Denver Division of the FBI, the U.S. Secret Service, and the Colorado Department of Labor and Employment conducted the investigation. Assistant United States Attorneys Martha A. Paluch, Sarah H. Weiss, and Tonya S. Andrews handled the prosecution of the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Case number: 21-cr-00392-RM
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Hartford Man Involved in Drug Trafficking Ring Sentenced to More Than 5 Years in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that TAHIR BRUFF, also known as “Gangster” and “G,” 46, of Hartford, was sentenced yesterday by U.S. District Judge Michael P. Shea in Hartford to 65 months of imprisonment, followed by three years of supervised release, for distributing narcotics.
According to court documents and statements made in court, in 2018, the FBI’s Northern Connecticut Gang Task Force began investigating Ricardo Reyes, also known as “Rick the Ruler,” a member of the Los Solidos street gang who was distributing fentanyl, heroin, cocaine and crack in the area of Park Street and Hungerford Street in Hartford. During the investigation, law enforcement conducted multiple controlled purchases of narcotics from Ricardo Reyes. Court-authorized wiretaps confirmed that he was distributing narcotics to numerous customers, and identified individuals who supplied drugs to him, including Bruff, as well as associates who sold drugs on his behalf. Intercepted communications also revealed that Ricardo Reyes was acquiring and trafficking firearms.
Bruff, a member of Los Solidos and a close associate of Reyes, supplied cocaine and crack to Reyes for both his personal use and distribution. Bruff also sold narcotics to other customers in the area of Hungerford Street.
Bruff has been detained since his arrest on June 17, 2019.
On June 27, 2019, a grand jury Hartford returned a 32-count indictment charging Bruff, Reyes, and 13 associates with various narcotics trafficking and firearm possession offenses. Bruff pleaded guilty on March 29, 2022.
All of Bruff’s co-defendants pleaded guilty to related charges, and Bruff is the last to be sentenced.
On February 11, 2021, Reyes was sentenced to 18 years of imprisonment.
The FBI’s Northern Connecticut Gang Task Force includes members of the Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division provided valuable assistance to the investigation.
This case was prosecuted by Assistant U.S. Attorney Brian P. Leaming through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Hot Springs Man Sentenced to 27 Months for Pandemic Funds FraudRead the Press Release
Hot Springs, Arkansas – David Clay Fowlkes, United States Attorney for the Western District of Arkansas, announced that on May 26, 2022, James Heritage, 39 of Hot Springs, Arkansas, was sentenced to 27 months in prison and ordered to pay $469,082.73 in restitution after pleading guilty to two counts relating to fraud committed against the United States Small Business Administration’s Paycheck Protection Program (PPP) and numerous state unemployment benefits administrators.
According to plea documents in the case, Heritage applied for and received a PPP loan for $183,937.32, using falsified employee and payroll data. In addition, Heritage applied for and received Pandemic Unemployment Assistance, a supplemental form of unemployment benefits, from thirty different states, by falsely representing to those states’ benefits administrators that he was eligible for the benefits.
Both the Paycheck Protection Program and Pandemic Unemployment Assistance program are parts of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a federal law passed in March 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic.
The case was investigated by the Department of Labor Office of the Investigator General, the Federal Bureau of Investigations, the United States Postal Inspection Service, and the Small Business Administration Office of the Inspector General. Assistant United States Attorney Hunter Bridges prosecuted the case for the United States.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department's response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice's National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Grand Rapids Gang Member Sentenced to Nearly A Decade in Federal PrisonRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Mark Totten announced that yesterday U.S. District Judge Jane M. Beckering sentenced Steven Chavez Phillips-Hall, age 30, of Grand Rapids, Michigan, to 115 months in federal prison for possessing firearms as a convicted felon, and for his role in gang-related shootouts during the summer of 2021.
Phillips-Hall, also known as “Bemis Steve,” has long been known to law enforcement as an active member of the Bemis Street gang in Grand Rapids. On March 11, 2021, officers with the Grand Rapids Police Department executed a search warrant on Phillips-Hall’s apartment while investigating him for assault and battery. In his apartment, law enforcement found two pistols fitted with large-capacity magazines. Months later, on August 9, 2021, members of the U.S. Marshals task force attempted to arrest Phillips-Hall on a felony warrant for carrying a concealed weapon. Phillips-Hall ran, leading law enforcement on a foot chase through a residential building near downtown Grand Rapids until he was finally apprehended. Phillips-Hall had in his possession a loaded pistol that, according to ballistics testing and cellphone location records, he had used three days earlier in a gunfight outside a bar in southwest Grand Rapids, which resulted in gunshot wounds to multiple innocent bystanders. Phillips-Hall’s apparent motive for that shooting was to retaliate against a rival gang that had ambushed him several weeks earlier in yet another shootout.
In sentencing Phillips-Hall, Judge Beckering emphasized his history of violence and “demonstrated willingness to use firearms” against others. She observed that, despite Phillips-Hall’s long “pattern of disrespect for the law” and prior jail sentences, “nothing has deterred the defendant’s behavior.” Judge Beckering added, “We cannot have lawlessness in our community.”
“Phillips-Hall has demonstrated an unconscionable disregard for the value of human life, and this sentence reflects the gravity of his crimes,” said U.S. Attorney Mark Totten. “We will hold accountable those who use firearms to jeopardize innocent lives. My office is laser-focused on investigating and prosecuting the most violent offenders in West Michigan, and this sentence advances that important mission.”
“ATF is committed to the removal of violent repeat offenders who victimize and threaten the safety of our communities,” said ATF Detroit Special Agent in Charge Paul Vanderplow. “This sentence is indicative of our highly experienced Special Agents, utilizing unique information and intelligence programs to supplement our partnerships with local violent crime investigators and prosecutors which was critical to the success of this case.”
“This is an excellent example of the partnership between local and federal law enforcement working together to get violent criminals off our streets,” said Grand Rapids Police Chief Eric Winstrom. “I am proud of the dedication and hard work of our officers to make Grand Rapids a safer place.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Grand Rapids Police Department, with important additional assistance provided by the United States Marshals Service and the Michigan State Police. This case was prosecuted by Assistant U.S. Attorney Patrick Castle.
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Georgia Man Who Assaulted an Airport Security Agent Sentenced to Federal PrisonRead the Press Release
A man who was caught taking marijuana and over $37,000 in cash through the Eastern Iowa Airport security screening was sentenced today to two months in federal prison and fined $2,000.
Andre Burns, age 38, from Atlanta, Georgia, received the prison term after a February 1, 2022 guilty plea to interfering with airport security.
Information disclosed at sentencing showed that Burns was flying out of the Eastern Iowa Airport in Cedar Rapids, Iowa, on June 16, 2019. While he was going through the airport security checkpoint, Transportation Security Administration (TSA) agents discovered approximately 35 grams of marijuana and an envelope containing $37,723 in cash in Burns’ luggage. Burns grabbed some of the cash from the agents and then ran from the security checkpoint. As he was running, Burns struck a TSA agent in the stomach, causing a contusion and requiring the agent to go to the hospital. Burns then ran from the airport and into a cornfield across the street. Officers from the Cedar Rapids Police Department located and arrested him in the cornfield.
Burns was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Burns was sentenced to two months’ imprisonment and fined $2,000. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Burns was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Federal Bureau of Investigation, the Cedar Rapids Police Department, and the Transportation Security Administration.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-80.
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Gary Man Sentenced to 50 Months in PrisonRead the Press Release
HAMMOND- Courtney Lewis, 41 years old, of Gary, Indiana, was sentenced by United States District Court Judge Philip P. Simon on his plea of guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Lewis was sentenced to 50 months in prison followed by 2 years of supervised release.
According to documents in the case, on August 28, 2020, law enforcement conducted a traffic stop on a vehicle driven by Lewis. An officer observed a firearm between Lewis’ leg and tried to remove it but Lewis resisted, pulled the gun from the officer and sped away. While fleeing, Lewis threw the gun from the vehicle. Lewis’ criminal history revealed he had previously been convicted of multiple felony offenses, including robbery, cheating at a gambling game, and possessing a firearm as a felon, and as such, was prohibited from possessing a firearm or ammunition.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives/Indiana High Intensity Drug Trafficking Area Task Force with the assistance of the Gary Police Department. This case was prosecuted by Assistant United States Attorney Caitlin M. Padula.
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.
Four Men Sentenced for Stealing over 30 Firearms from Gun Dealer in Maurice, LARead the Press Release
LAFAYETTE, La. - United States Attorney Brandon B. Brown announced that four men have been sentenced for their involvement in the theft of 32 firearms from a gun dealer in Maurice, Louisiana. United States District Judge Robert R. Summerhays sentenced the defendants as follows:
Damien Damon Briggs, 28, of Kaplan, Louisiana, was sentenced to 96 months in prison, followed by 3 years of supervised release.
Tawaski Tavon Lewis, 32, of Abbeville, Louisiana, was sentenced to 120 months in prison, followed by 2 years of supervised release.
Travon Travel Citizen, 18, of Abbeville, Louisiana, was sentenced to 21 months in prison, followed by 3 years of supervised release.
The fourth defendant in this case, Dante Citizen, 23, of Abbeville, Louisiana, was sentenced on March 2, 2022 to 14 months in prison, followed by 1 year of supervised release.
Each of the defendants pleaded guilty to theft of firearms from a Federal Firearms Licensee. All four of the men admitted to their involvement in stealing 32 firearms from the premises of Swampland Trading Co., a licensed firearms dealer located in Maurice, Louisiana, on September 7, 2021. All 32 firearms were in the licensee’s business inventory.
“This is a great example of cooperation between federal and state law enforcement agencies,” stated U.S. Attorney Brandon B. Brown. “Because of their synergy and cohesion, all 32 firearms were recovered the same night they were stolen, and Swampland Trading Co. was able to properly sell the firearms to customers who had a legal right to purchase them.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Vermilion Parish Sheriff’s Office, and was prosecuted by Assistant U.S. Attorney John W. Nickel.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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Former Marine Pleads Guilty to Three Counts of CyberstalkingRead the Press Release
LOS ANGELES – A South Bay man pleaded guilty today to cyberstalking multiple young women in a “sextortion” campaign he waged while he was an active-duty member of the United States Marine Corps.
Johao Miguel Chavarri, a.k.a. “Michael Frito,” 25, of Torrance, pleaded guilty to three counts of cyberstalking.
According to his plea agreement, from May 2019 to February 2021, Chavarri stalked and sent anonymous threatening communications to numerous victims, including three victims discussed in court documents.
Chavarri, often using the name “Frito,” contacted victims on social media platforms, including Instagram, Snapchat, and Twitter, complimented their appearance and their publicly posted photos, and suggested a relationship in which he would pay the victim to send him photos or videos.
Some of the victims initially agreed to Chavarri’s requests and sent him nude, sexually explicit, or compromising photos. When victims either refused Chavarri’s initial request for photos, refused to send him additional photos or videos, or otherwise refused to continue to communicate with him online, Chavarri began to harass, threaten, and extort the victims using numerous online accounts.
In most cases, he threatened to publish sexual photos and videos of the victims online or on well-known pornography websites or to distribute the sexual photos or videos to the victims’ boyfriends, friends, families, or employers — people he often specifically identified by name. Chavarri threatened his victims and their friends and family that he would ruin their lives.
United States District Judge Maame Ewusi-Mensah Frimpong scheduled a September 15 sentencing hearing, at which time Chavarri will face a statutory maximum sentence of five years in federal prison for each count.
The FBI investigated this matter with assistance from the Naval Criminal Investigative Service.
Assistant United States Attorney Lauren Restrepo of the Cyber and Intellectual Property Crime Section and Justice Department Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting this case.
Anyone who believes they are a victim in this case or is aware of a victim in this case is urged to contact the FBI’s Los Angeles Field Office, which can be reached 24 hours a day at (310) 477-6565.
Former Marine Pleads Guilty to Cyberstalking Young Women in Sextortion CampaignRead the Press Release
A California man pleaded guilty today to cyberstalking multiple young women in California in a “sextortion” campaign he waged while he was an active-duty member of the U.S. Marine Corps.
According to court documents, from 2019 through 2021, Johao Miguel Chavarri, aka Michael Frito, 25, of Torrance, stalked and sent anonymous threatening communications to numerous victims, including the three victims discussed in court documents.
Chavarri, often using the name “Frito,” contacted victims on social media platforms, including Instagram, Snapchat, and Twitter, complimented their appearance and/or their publicly posted photos, and suggested a relationship in which he would pay the victim to send him photos or videos. Some of the victims initially agreed to Chavarri’s requests and sent him nude, sexually explicit, or compromising photos. When victims either refused Chavarri’s initial request for photos, refused to send him additional photos or videos, or otherwise refused to continue to communicate with him online, Chavarri began to harass, threaten, and extort the victims using numerous online accounts. In most cases, he threatened to publish sexual photos and videos of the victims online or on well-known pornography websites and/or to distribute the sexual photos or videos to the victims’ boyfriends, friends, families, or employers — people he often specifically identified by name. Chavarri threatened his victims and their friends and family that he would ruin their lives.
Chavarri pleaded guilty to three counts of cyberstalking. He is scheduled to be sentenced on Sept. 15 and faces up to five 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.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Tracy L. Wilkison for the Central District of California; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; and Supervisory Special Agent Adam Smith of the FBI’s Los Angeles Field Office made the announcement.
The FBI’s Los Angeles Field Office, Long Beach Resident Agency, investigated the case, with assistance from the Naval Criminal Investigative Service.
Assistant U.S. Attorney Lauren Restrepo for the Central District of California and Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case.
Anyone who believes they are a victim in this case or is aware of a victim in this case is urged to contact the FBI’s Los Angeles Field Office, which can be reached 24 hours a day at (310) 477-6565.
Former CEO of defunct medical testing laboratory sentenced to prison for medical kickback schemeRead the Press Release
Seattle – The former Chief Executive Officer of Northwest Physicians Laboratory (NWPL) was sentenced today in U.S. District Court in Seattle to two years in prison and $7.6 million in restitution for conspiracy to solicit kickbacks, announced U.S. Attorney Nick Brown. Jae Lee, 51, of Bellevue, Washington, served as the CEO of Northwest Physicians Laboratory (NWPL). Between 2013 and 2015, Lee conspired with others to get kickbacks from medical testing labs in exchange for government testing business referred to the labs. In pronouncing sentence, U.S. District Judge John C. Coughenour noted, the scheme was large and clearly illegal.
“Mr. Lee knowingly set up a scheme to profit by referring government health care business to other labs – even more disturbing he tried to play one lab off against another to increase his ill-gotten gain,” said U.S. Attorney Nick Brown. “Such conduct increases healthcare costs for all of us. This case should be a warning to others who may consider such schemes.”
The activities of Bellevue-based Northwest Physicians Laboratory (NWPL) have been the subject of extensive civil and criminal litigation. CEO Lee helped NWPL obtain more than $3.7 million in kickback payments by steering urine drug test specimens to two labs that could bill the government for testing. This resulted in government payments to those two labs of more than $6.5 million.
According to records filed in the case between January 2013 and July 2015, two labs, that were not physician owned, made payments to NWPL in exchange for referrals of Medicare and TRICARE program business, in violation of the Anti-Kickback Statute. Paying remuneration to medical providers or provider-owned laboratories in exchange for referrals encourages providers to order medically unnecessary services. The Anti-Kickback Statute functions, in part, to discourage such behavior. NWPL was physician-owned, and for that reason could not test urine samples for patients covered by government health programs such as Medicare, Medicaid, and TRICARE. In order to conceal the payment of the kickbacks, Lee and other co-conspirators involved described the fees as being for marketing services; however, no marketing services were performed.
The kickback payments to NWPL were commingled with other company revenue. Over the course of the scheme, Lee received more than $800,000 in distributions from NWPL’s commingled funds. As prosecutors wrote in their sentencing memo, “The crime was based purely on Mr. Lee and the others’ greed. The NWPL business model was profitable. It could afford to pay doctors thousands of dollars a month in dividends. It could afford to pay healthy distributions to its owners. This did not satisfy Mr. Lee. He was determined to maximize profits even if it meant breaking the law.”
The company, NWPL, pleaded guilty in February 2021 and was sentenced to pay $8,114,417 in restitution joint and several with the other criminal defendants. NWPL has dissolved. To date, the labs and individuals involved in this investigation have agreed to pay more than $14 million to settle related civil allegations.
"Mr. Lee’s sentencing culminates his illicit, greed-driven scheme to defraud federal healthcare programs, including the Department of Defense's TRICARE program," said Bryan D. Denny, Special Agent in Charge for the Department of Defense Office of Inspector General, Defense Criminal Investigative Service, Western Field Office. "Fraudulent healthcare billings inflate costs, erode public confidence, and in the case of the Department of Defense, ultimately degrade American warfighter readiness and undermine the missions of our military services.”
“Individuals who participate in kickback schemes do so at the risk of undermining the integrity of federal health care programs,” said Special Agent in Charge Steven J. Ryan with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG will continue to work with law enforcement partners to bring to justice those who steal from these programs for personal gain.”
“Mr. Lee was one of the ringleaders of a conspiracy that stole more money per month than some honest Americans make in a year” said Donald M. Voiret, Special Agent in Charge of the Seattle FBI Field Office. “By stealing from these benefits programs, he wasn’t only stealing from taxpayers, but taking funding from people who legitimately relied on these programs for their health and well-being.”
In addition to Lee, two other defendants await sentencing. Kevin Puls, 57, the former Executive Director of NWPL, is scheduled for sentencing September 6, 2022. Richard Reid, 53, was convicted following a six-day jury trial. He is scheduled for sentencing on October 11, 2022.
The case was investigated by the FBI, Health and Human Services Office of Inspector General (HHS-OIG), and the Defense Criminal Investigative Service (DCIS).
The case is being prosecuted by Assistant United States Attorneys Brian Werner and Michael Dion.
Florida Man Indicted for Wire FraudRead the Press Release
United States Attorney Alison J. Ramsdell announced that a North Miami Beach, Florida, man has been indicted by a federal grand jury for Wire Fraud.
Tyler Vandenhoek, age 34, was indicted on February 8, 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 26, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that beginning on or about January 14, 2020, and continuing through on or about February 18, 2020, in South Dakota and elsewhere, Vandenhoek devised a scheme and artifice to defraud by forging multiple stolen checks, and that he caused interstate wire communications to be transmitted for the purpose of executing the scheme.
The charges are merely accusations and Vandenhoek is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Vandenhoek was released on bond pending trial. A trial date has not been set.
Father and Son Sentenced for Conspiracy to Defraud Their Former Employer and Divert Medical Equipment for Their Own UseRead the Press Release
OAKLAND – Today, the Hon. Jon S. Tigar, U.S. District Judge, sentenced Anthony Giovanni Montanelli to a year and a day in prison and ordered him to pay $1.2 million in restitution within 90 days for his role in a conspiracy to commit mail fraud in connection with a scheme to embezzle medical equipment owned by Kaiser Foundation Hospitals and Health Plan, Inc. (Kaiser). Judge Tigar ordered Montanelli’s father and charged co-conspirator, Steven John Montanelli, to serve a five year term of probation for his role in the scheme and ordered him jointly responsible to pay $1.2 million in restitution to Kaiser. The announcement was made by United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Sean Ragan.
Anthony Montanelli, 34, and his father Steven Montanelli, 63, both of San Ramon, pleaded guilty to the charges on January 14, 2022. According to the plea agreements, the defendants worked as biomedical engineers at Kaiser, responsible for repairing and servicing Kaiser ultrasound systems used at its medical facilities located throughout the Bay Area. The defendants used their positions at Kaiser to order new ultrasound parts that were supposed to be used to repair, replace, and/or maintain Kaiser’s medical equipment, but instead were diverted to their own business, Pacific Coast Imaging (PCI). The defendants then sold the diverted parts through PCI for their own profit. The father and son also admitted operating their scheme and business, which they did not disclose to Kaiser, while being paid by Kaiser to service Kaiser-owned equipment.
The defendants admitted that, beginning February 2010 and continuing through about April of 2018, they worked together to defraud Kaiser. Specifically, the defendants rented storage units in which they stockpiled new, used, and decommissioned Kaiser-owned ultrasound systems and parts. Some of the Kaiser inventory they ordered through Kaiser became PCI inventory, which they sold and leased to PCI customers. The defendants acknowledged that for years they caused Kaiser’s procurement specialists to process, order, and have mailed to them an unknown number of ultrasound parts which they diverted to PCI. Further, the defendants admitted that they recorded parts and/or systems as decommissioned when, in fact, the equipment was diverted to PCI. In sum, both defendants admitted that they diverted Kaiser-owned equipment to PCI, operated PCI while employed by Kaiser, and used work hours paid for by Kaiser to operate PCI. The defendants admitted that the value of the loss to Kaiser resulting from the conspiracy exceeded $1,500,000. Anthony Montanelli had previously tendered a check to Kaiser to pay restitution in the amount of $449,955, bringing the total amount paid and owed in restitution to $1,649,955.
A federal grand jury issued a superseding indictment on June 10, 2021, charging each defendant with one count of conspiracy to commit mail fraud, in violation of 18 U.S.C. § 1349. Both defendants pleaded guilty to the count.
In addition to the prison term and probation, Judge Tigar also ordered each defendant to pay a $150,000 fine. Anthony Montanelli was ordered to surrender on or before July 1, 2022, to begin serving his prison term.
Assistant U.S. Attorneys Thomas Green and Garth Hire are prosecuting the case, with the assistance of Kay Konopaske and Noble Hughes. The prosecution was the result of an investigation by the Federal Bureau of Investigation.
FFL Sentenced for Selling Guns to Unlicensed DealersRead the Press Release
A federally licensed firearms dealer was sentenced today to four years in federal prison for selling guns to unlicensed dealers for resale, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Jonathan Ludlow, 48, pleaded guilty in January to conspiracy to deal in firearms without a license and make false statements on ATF forms as well as possession of an unregistered silencer. He was sentenced Friday by U.S. District Judge Reed C. O’Connor in Fort Worth.
“Federal firearm laws are designed to keep guns out the wrong hands. Responsible licensed gun dealers are often the first line of defense in this endeavor. Licensed dealers who know their buyers intend to immediately resell their guns – quite possibly to individuals who cannot pass a background check – must not complete that sale. Doing so could have deadly serious consequences,” said U.S. Attorney Chad Meacham. “ATF and the U.S. Attorney’s Office will not allow people like Mr. Ludlow to flout laws that save lives.”
“Today is a good day for ATF and all of its partners with this sentencing. Mr. Ludlow, a federal firearms licensee, knew the laws and intentionally skirted them. By doing so, he has put hundreds of guns on the streets of the DFW metroplex and beyond. Because of his recklessness, we will continue to relive his crimes for years as more of his crime guns are recovered,” said ATF Dallas Special Agent in Charge Jeffrey C. Boshek II. “ATF remains staunch in its tireless pursuit of licensed firearms dealers that commit criminal acts.”
In plea papers, Mr. Ludlow, a federally licensed firearms dealer (FFL), admitted he regularly sold large quantities of identical firearms – including numerous AR-15 style pistols – to unlicensed associates, knowing full well that they intended to immediately engage in the business of reselling the guns for profit. The transactions were conducted out of Mr. Ludlow’s vehicle in various locations across the DFW Metroplex, and were typically completed in cash.
Two such associates, Romello Harris and Christopher Meza, pleaded guilty to conspiring with Mr. Ludlow to deal firearms without licenses. (Mr. Harris was sentenced earlier this month to 37 months in federal prison; Mr. Meza is awaiting sentencing.)
In order to conceal their crimes, Mr. Harris and Mr. Meza lied on ATF form 4473, indicating that they were the “actual transferees” of the firearms when they were not. On those same forms, Mr. Ludlow often lied about the date and location of the transaction, the type of firearms sold, and details regarding compliance with the NICS background check.
Under federal law, FFLs are prohibited from selling to straw purchasers or unlicensed dealers who they know are “engaged in the business of selling firearms,” defined as repeatedly devoting time and attention to purchasing and reselling guns for pecuniary gain. Background checks are not necessarily required for in-state, private transfers, but those engaged in the business of selling firearms must be federally licensed and run background checks on their buyers.
In July 2021, ATF executed a federal search warrant on Mr. Ludlow’s residence in Aledo, Texas, where agents seized more than 100 firearms, including 17 AR-15 style firearms, 12 Glock pistols, and approximately 10 unregistered silencers, all of which were later forfeited. At that time, Mr. Ludlow surrendered his federal firearms license.
At Friday’s sentencing hearing, prosecutors said that traces linked Mr. Ludlow to numerous guns recovered from crime scenes across the state of Texas, including multiple homicides. Others guns that originated with Mr. Ludlow were found in the hands of criminals, and still more were recovered in foreign countries.
In addition to the conspiracy, Mr. Ludlow admitted to possession of an unregistered silencer roughly 6 inches long and 1 3/8 inches in diameter.
The Bureau of Alcohol, Tobacco, Firearms, & Explosives’ Dallas Field Office conducted the investigation. Assistant U.S. Attorney Levi Thomas is prosecuting all three cases.
Elyria Man Charged with Intent to Traffic Fentanyl and Illegal Possession of a FirearmRead the Press Release
First Assistant U.S. Attorney Michelle M. Baeppler announced that a federal grand jury returned a three-count indictment charging Jason Delaney, 39, of Elyria, Ohio, with possession with intent to distribute fentanyl, possession of a firearm in furtherance of a drug trafficking crime and being a felon in possession of a firearm.
According to court documents, on March 24, 2022, law enforcement authorities arrested the defendant and executed a search warrant at his residence and for his vehicle. These search warrants came after an investigation into the defendant and his alleged drug trafficking activities. During the search, it is alleged that authorities obtained packages later confirmed to contain over 120 grams of fentanyl, a 9mm firearm, large amounts of U.S. currency and other drug trafficking paraphernalia.
The defendant is prohibited from possessing a firearm due to previous convictions of drug trafficking and robbery in the Lorain County Court of Common Pleas.
This case is part of Operation Synthetic Opioid Surge (S.O.S.)., a joint law enforcement initiative that seeks to reduce the supply of deadly synthetic opioids and to identify wholesale distribution networks and international and domestic suppliers in Lorain County.
This investigation was conducted by the Elyria Police Department and the FBI, with the assistance of the Lorain Police Department and the Ohio Adult Parole Authority. This case is being prosecuted by Assistant U.S. Attorney Robert J. Kolansky.
Doctor Selling COVID-19 “Cure” Sentenced to PrisonRead the Press Release
SAN DIEGO – Jennings Ryan Staley, a physician who attempted to profit from the pandemic by marketing what he described as a “miracle cure” for COVID-19, was sentenced today to 30 days of custody and one year of home confinement for trying to smuggle hydroxychloroquine into the United States to sell in his coronavirus “treatment kits.”
Last year, Staley pleaded guilty to one count of importation contrary to law, admitting that he worked with a Chinese supplier to try to smuggle into the United States a barrel that he believed contained over 26 pounds of hydroxychloroquine powder by mislabeling it as “yam extract.” According to court documents, Staley also suggested this mislabeling technique to another supplier who declined, telling Staley, “sorry, we must do it legally.”
Staley admitted that he intended to sell the hydroxychloroquine powder in capsules as part of his business venture selling COVID-19 “treatment kits” in March and April 2020, at the beginning of the global pandemic. According to sentencing documents, Staley also solicited investors for his scheme, promising one that he could “triple your money in 90 days.”
In his plea agreement, Staley admitted to writing a hydroxychloroquine prescription for one of his employees, misusing the employee’s name and personal identifying information. To fill the prescription for the increasingly scarce drug, Staley proceeded to answer pharmacists’ questions as though he were the employee, all without the employee’s knowledge or consent.
Staley marketed and sold his COVID-19 “treatment kits” to customers of his Skinny Beach Med Spas in and around San Diego. Court documents relate that law enforcement began investigating Staley after receiving several tips from concerned citizens sparked by his marketing campaign. According to admissions in his plea agreement, Staley described his products—which included hydroxychloroquine—as a “one hundred percent” cure, a “magic bullet,” an “amazing weapon,” and “almost too good to be true” in conversations with an undercover FBI agent posing as a potential customer, and Staley stated that the products would provide at least six weeks of immunity. Staley acknowledged that these statements were material to the potential customer, and that as a doctor he abused a position of public trust and used a special skill in carrying out his scheme.
An undercover agent purchased six of Staley’s “treatment kits” for $4,000. Court documents explain that during a recorded phone call with the undercover agent, Staley not only made the false statements about the efficacy of his “treatment kits;” he also bragged that, “I got the last tank of . . . hydroxychloroquine, smuggled out of China, Sunday night at 1:00 a.m. in the morning . . . the broker . . . smuggled it out, so to speak, otherwise tricked Customs by saying it was sweet potato extract.” In a later phone call with the undercover agent, Staley spontaneously offered to throw in doses of generic Viagra and Xanax, which is a federally controlled substance. At no point did Staley ask any medical questions about the undercover agent’s purported family members, including the agent’s three supposed minor children.
Staley also admitted that he willfully impeded and sought to obstruct the federal investigation into his conduct by lying to federal agents. Specifically, when interviewed by law enforcement, Staley falsely denied ever claiming that his “treatment kits” were a “one hundred percent effective cure,” adding “that would be foolish.” Staley also falsely claimed that his medical practice would “absolutely” get all relevant information about each family member when sending out medications for a family treatment pack, when just a week earlier, he had dispensed a “family pack” of hydroxychloroquine, chloroquine, generic Viagra, Xanax, and azithromycin to the undercover agent without collecting any medical information from the agent or the agent’s five supposed family members.
U.S. District Judge Gonzalo P. Curiel also ordered Staley to pay a $10,000 fine and ordered forfeiture of the $4,000 paid by the undercover agent, as well as more than 4,500 tablets of various pharmaceutical drugs, multiple bags of empty pill capsules, and a manual capsule-filling machine.
“At the height of the pandemic, before vaccines were available, this doctor sought to profit from patients’ fears,” said U.S. Attorney Randy Grossman. “He abused his position of trust and undermined the integrity of the entire medical profession. We are committed to enforcing the laws of the United States and protecting patients, including prosecuting doctors who choose to commit crimes.” Grossman commended the prosecution team and federal agents from FBI and FDA-OCI, who worked hard pursuing justice in this case. He also commended U.S. Customs and Border Protection for its assistance with the investigation.
“The defendant used a global pandemic to prey on the public’s fear by offering a 'cure' for COVID-19, and then lied to FBI agents about it,” said FBI Special Agent in Charge Stacey Moy. “I want to thank our federal partners at the U.S. Food and Drug Administration – Office of Criminal Investigations, U.S. Customs and Border Protection, and the United States Attorney’s Office for their collective efforts in bringing this defendant to justice.”
“The FDA continues to work with its law enforcement partners to protect the public health by identifying, investigating and bringing to justice those who attempt to profit from the pandemic by offering and distributing COVID-19 treatments with unproven ‘miracle cure’ claims to American consumers,” said Special Agent in Charge Lisa L. Malinowski, FDA Office of Criminal Investigations Los Angeles Field Office.
On May 17, 2021, Attorney General Merrick Garland established the COVID-19 Fraud Enforcement Task Force, led by the Deputy Attorney General, to bring together the full resources of the federal government to bolster fraud enforcement efforts.
If you think you are a victim of COVID-19 fraud, immediately report it the FBI (visit ic3.gov, tips.fbi.gov, or call 1-800-CALL-FBI or the San Diego FBI at 858-320-1800; the public is also urged to report suspected fraud schemes related to COVID-19 by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or by e-mailing the NCDF at [email protected].
DEFENDANT Case Number 20-CR-1227-GPC
Jennings Ryan Staley, M.D. Age: 44 San Diego, CA
SUMMARY OF CHARGES
Importation Contrary to Law, in violation of Title 18, United States Code, Section 545
Maximum Penalty: Twenty years in prison; fine; special assessment
AGENCY
Federal Bureau of Investigation
U.S. Food and Drug Administration, Office of Criminal Investigations
U.S. Customs and Border Protection
Des Moines Man Sentenced to 55 Years in Federal Prison for Child Pornography and Gun CrimesRead the Press Release
DES MOINES, IA – Gary Dale Elliott, Sr., age 62, of Des Moines, was sentenced May 27, 2022, to 660 months in prison. That sentence followed Elliott’s guilty pleas to production of child pornography, receipt of child pornography, and felon in possession of a firearm.
The investigation of Elliott began in early 2021, when a woman reported to law enforcement that she had found thumb drives containing child pornography in Elliott’s Des Moines residence. Elliott, a felon, later threatened the woman while armed with a loaded gun.
In February 2021, officers executed a search warrant at Elliott’s residence and seized computers, thumb drives, and other electronic devices. Officers searched those devices and located thousands of images and videos of child pornography. The investigation also revealed that Elliott produced child pornography in 2018 by filming three minor victims with a camera hidden in the bathroom of his residence.
Elliott’s criminal history includes a 1988 conviction resulting from the death of Elliott’s infant son. Elliott spent approximately 27 years in prison for that offense before being paroled in 2015.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This matter was investigated by the Des Moines Police Department, Iowa Internet Crimes Against Children Task Force, and the FBI Child Exploitation and Human Trafficking Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Davenport Man Sentenced to Ten Years in Federal Prison for Possession of a Firearm by a FelonRead the Press Release
ROCK ISLAND, Ill. – A Davenport, Iowa, man, Ryan Michael Shumaker, 29, of the 7000 block of West 60th Street, was sentenced on May 25, 2022, to 120 months’ imprisonment, to be followed by two years of supervised release, for possessing a firearm as a felon.
Shumaker pleaded guilty to the offense in January 2022. At the change-of-plea hearing, he confirmed that on January 1, 2021, he pistol-whipped a woman in a hotel room at the Quality Inn and Suites in Moline, causing a laceration to her head. Shumaker returned to the hotel a few hours later and began pounding and kicking on the hotel room door. Moline police officers arrived and found Shumaker outside the hotel room door. They told him to stop, and he ran. Before attempting to hide from officers inside his car in the parking lot, Shumaker tossed a Ruger SR9C 9-millimeter pistol in the snow behind his car. He had obtained the firearm and 30 rounds of ammunition to serve as protection during a crack-cocaine purchase. Shumaker’s firearm had an extended magazine and an obliterated serial number. At the time of the offense conduct, he had previously been convicted of conspiracy to commit robbery and burglary.
At the sentencing hearing, Chief U.S. District Judge Darrow described Shumaker’s crime as “incredibly serious conduct” and noted that he placed several individuals at risk of suffering serious bodily harm.
The statutory penalties for possession of a firearm by a felon are up to ten years in prison, up to a $250,000 fine, and up to three years of supervised release.
The Moline Police Department investigated the case with assistance from the Rock Island Police Department. Assistant U.S. Attorney Alyssa Raya represented the government in the prosecution.
Columbia Man with Aggravated Assault and Kidnapping Record Pleads Guilty to Firearm ChargeRead the Press Release
COLUMBIA, SOUTH CAROLINA —Alexander Lee Dickerson, 32, of Columbia, has pleaded guilty to felon in possession of a firearm and ammunition.
Evidence obtained in the investigation revealed that on February 7, 2020, Columbia Police Department officers responded to a report that Dickerson had rammed the car he was driving into a car driven by Nikka Darby. Dickerson pointed a firearm at Darby and then drove away from the scene. An officer soon located Dickerson and attempted to stop him. Dickerson refused to stop, leading police on a high speed chase for approximately two miles before finally ending on Colonial Drive. After Dickerson was taken into custody, police searched his car and located a loaded 9mm pistol. Dickerson was prohibited from possessing a firearm or ammunition due to prior convictions for aggravated assault, attempted armed robbery and kidnapping.
Dickerson faces a maximum penalty of 10 years in federal prison. He also faces a fine of up to $250,000, restitution, and three years of supervision to follow the term of imprisonment. Senior United States District Judge Terry L. Wooten accepted the guilty plea and will sentence Dickerson after receiving and reviewing a sentencing report prepared by the United States Probation Office.
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.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Columbia Police Department. Assistant U.S. Attorney Christopher D. Taylor is prosecuting the case.
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Cheektowaga Man Going to Prison for 30 Years for Enticing A Mentally Disabled Minor to Engage in A Sexual RelationshipRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Michael Mesko, 52, of Cheektowaga, NY, who was convicted of enticement of a minor, was sentenced to serve 30 years in prison by U.S. District Judge John L. Sinatra, Jr.
Assistant U.S. Attorney Paul E. Bonanno, who handled the case, stated that between October 8, 2020, and January 9, 2021, Mesko engaged in a sexual relationship with a 17-year-old minor female (Victim 1), who was mentally disabled. Mesko communicated with Victim 1 via text message and mobile chat applications. On February 16, 2021, Mesko fled with Victim 1 to the State of Pennsylvania, causing an Amber Alert to be issued for Victim 1. After Mesko’s vehicle was spotted by a Pennsylvania State Police Trooper, Mesko fled at a high rate of speed and had to be forcibly stopped and taken into custody.
The sentencing is the result of an investigation by the North Tonawanda Police Department, under the direction of Chief Keith Glass; the Cheektowaga Police Department, under the direction of Chief Brian Gould; and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
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Canton Man Indicted for Sex Trafficking a MinorRead the Press Release
BOSTON – A Canton has been indicted by a federal grand jury in Boston in connection with sex trafficking a minor.
Keion Rowell, 23, was indicted on one count of sex trafficking of a child. Rowell was previously arrested and charged by criminal complaint on April 14, 2022.
“Mr. Rowell is alleged to have targeted a 15-year-old girl and groomed her to engage in commercial sex for his personal profit,” said United States Attorney Rachael S. Rollins. “This type of behavior by adults, overwhelmingly men, is far too common. I am starting a Human Trafficking Unit within the United States Attorney’s Office so we can investigate and charge these predators that profit off of people’s trauma and pain. The scale and scope of the Human Trafficking problem has reached epic proportions. We will spare no resource to protect our communities, our children, and our Commonwealth from this growing threat.”
“Too many of our children are falling victims to sex trafficking and are suffering from untold physical and emotional harm at the hands of accused predators like Keion Rowell,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “That’s why every day, FBI Boston’s Child Exploitation – Human Trafficking Task Force is fiercely focused on working with our law enforcement partners to free victims from this abusive life while locking up those who exploit them.”
According to the charging documents, on Jan. 28, 2021, agents recovered a 15-year-old girl who had been reported missing approximately 10 to 14 days previously after she left her home in a suburb of Boston. It is alleged that the victim’s phone contained nude and revealing photos of the victim, online advertisements for commercial sex that included pictures of the victim, as well as Venmo and Cash App accounts registered to Rowell. Rowell allegedly opened an online “Meet Me” account for the victim that advertised commercial sex with the victim and instructed the victim on how much she should charge. It is further alleged that the Rowell required the victim to engage in commercial sex acts multiple times and took the proceeds.
Members of the public who believe they may be a victim of this alleged crime should contact [email protected].
The charge of sex trafficking of a child provides for a mandatory minimum sentence of 10 years and up to life in prison, five 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.
U.S. Attorney Rollins and FBI SAC Bonavolonta made the announcement today. Valuable assistance was provided by the Boston and Randolph Police Departments and the Massachusetts State Police. Assistant U.S. Attorney Evan Gotlob of Rollins’ Civil Rights Enforcement Team and Special Assistant U.S. Attorney Alyssa Tochka are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
California Man Sentenced for Violation of the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – SHAMSID-DEEN HABEEBULLAH, age 45, a resident of California, was sentenced on May 26, 2022 to 46 months of incarceration for possessing a firearm while being a convicted felon, announced U.S. Attorney Duane A. Evans.
On February 14, 2021, HABEEBULLAH entered a gun range in St. Bernard Parish and rented two firearms before firing them at the range. Prior to renting the firearms, HABEEBULLAH filled out a waiver stating that he had not been convicted of a felony and was not otherwise prohibited from possessing a firearm. However, HABEEBUALLAH has been convicted six times in the past, including once for bank robbery and twice for drug distribution.
HABEEBULLAH will be under supervised release for two (2) years following his term of incarceration and was also assessed a mandatory $100 special assessment fee.
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
The case was investigated by the St. Bernard Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was by Assistant U.S. Attorney Mike Trummel of the Violent Crime Unit of the U.S. Attorney’s Office.
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Bartonsville Man Sentenced for Pandemic Loan FraudRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Nazim Hassam, age 70, of Bartonsville, Pennsylvania, was sentenced yesterday by United States District Court Judge Malachy E. Mannion to 18 months in prison for money laundering stemming from an illegal transaction conducted with funds obtained through a fraudulent pandemic assistance loan application.
According to United States Attorney John C. Gurganus, in April and June of 2020, Hassam applied for and received two loans under the federal Paycheck Protection Program (“PPP”) while making false statements on the applications. In 2019, Hassam was indicted along with two businesses he co-owns, the Pocono Plaza Inn and Om Sri Sai, Inc., on felony charges related to sex trafficking and drug trafficking. But when asked on the loan applications whether he or the companies applying for the loans were under indictment, Hassam falsely answered, “No.” Hassam fraudulently obtained one loan for each of the two corporate entities, together totaling $89,308. Hassam then conducted unlawful monetary transactions with the bulk of those funds. Specifically related to the count to which Hassam pleaded guilty, Hassam obtained $61,000 as a PPP loan for Om Sri Sai, Inc., a company that owns and operates a hotel in Bartonsville, Pennsylvania, and then transferred the funds from the corporation’s bank account to pay down a personal line of credit he held in his own name. As part of the plea agreement with the Government, Hassam admitted that, in addition to the money laundering charge to which he pleaded guilty, he also committed the underlying fraud offenses. Hassam paid both loans back to the issuing banks, with interest, after he learned of the investigation but before sentencing.
Hassam’s sentence was enhanced because he committed this crime while on pretrial release in the drug and sex trafficking case. Hassam was previously convicted in that case after a trial and sentenced to 60 months in prison, along with a $150,000 fine. Judge Mannion ordered that 12 months out of the 18-month sentence in this case will run concurrently with the earlier sentence, and 6 months will run consecutively, as required by statute.
The case was investigated by the Internal Revenue Service, Criminal Investigation. Assistant U.S. Attorney Sean A. Camoni prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
This prosecution is also part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Armed drug trafficker sentenced to federal prisonRead the Press Release
AUGUSTA, GA: An armed drug trafficker has been sentenced to federal prison after admitting he sold large quantities of drugs and possessed firearms in furtherance of the drug trafficking crime.
Jose Ramone Valero Jr., 24, of Stonecrest, Ga., was sentenced to 84 months in prison after pleading guilty to Conspiracy to Possess with Intent to Distribute Marijuana, and Possession of a Firearm in Furtherance of a Drug Trafficking Crime, said David H. Estes, U.S. Attorney for the Southern District of Georgia. U.S. District Court Chief Judge J. Randal Hall also ordered Valero to serve three years of supervised release after completion of his prison term. There is no parole in the federal system.
“Illegal drugs and illegally possessed firearms are the combustible fuel that drives violent crime in far too many of our communities,” said U.S. Attorney Estes. “We will be relentless in removing dangerous criminals like Valero from our neighborhoods.”
Valero, previously a resident of Grovetown, Ga., and Augusta, prohibited from possessing firearms after being convicted of a misdemeanor crime of domestic violence, but was found with drugs and multiple guns during state arrests in 2019 and 2020.
While out on bond on state charges, Valero was charged in a superseding federal indictment in 2021 and pled guilty to the two felony charges in January 2022. The plea included forfeiture of 11 firearms.
“Project Safe Neighborhoods is ATF’s main initiative to remove armed offenders from our communities,” said ATF Assistant Special Agent in Charge Beau Kolodka. “This substantial sentence would not have been possible without the hard work of our partners at the Richmond County Sheriff’s Office and the Jefferson County Sheriff’s Office.”
This investigation took place under the umbrella of the U.S. Department of Justice’s Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make neighborhoods safer.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Richmond County Sheriff’s Office, and the Jefferson County Sheriff’s Office, and prosecuted for the United States by Assistant U.S. Attorney and Criminal Division Chief Patricia G. Rhodes.
Alleged Drug Trafficker Arraigned in Chicago After Extradition from MexicoRead the Press Release
CHICAGO — An alleged drug trafficker charged with distributing heroin in the Chicago area was arraigned today in federal court in Chicago after his extradition from Mexico.
ADÁN CASARRUBIAS SALGADO, also known as “El Tomate,” “Tomatito,” “Star,” and “Silver,” was charged in an indictment unsealed today in the Northern District of Illinois with conspiracy, drug trafficking, and money laundering offenses. The indictment alleges that Casarrubias Salgado distributed multiple kilograms of heroin in the Chicago area in 2014 and transferred hundreds of thousands of dollars in proceeds back to Mexico.
Casarrubias Salgado, 53, of Guerrero, Mexico, was extradited to the United States on Thursday and remains detained in federal custody. He pleaded not guilty during his arraignment this afternoon before U.S. District Judge Matthew F. Kennelly in Chicago. A status hearing was set for June 30, 2022, at 1:30 p.m.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Robert J. Bell, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration. Valuable assistance was provided by the U.S. Marshals Service, the DEA Mexico Country Office, and the Department of Justice’s Office of International Affairs. The government is represented by Assistant U.S. Attorney James P. Durkin.
This indictment is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, and other criminal offenders that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The charges in the indictment carry a mandatory minimum sentence of ten years in federal prison and a maximum of life. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Albuquerque Man Charged with Smuggling Aliens and Placing Life in JeopardyRead the Press Release
TUCSON, Ariz. – Isaiah Osorio, 23, of Albuquerque, New Mexico, was charged by criminal complaint with Transportation of Illegal Aliens for Profit while Placing in Jeopardy the Life of Any Person and High Speed Flight from an Immigration Checkpoint. Osorio was arrested on May 24 and appeared in federal court yesterday afternoon.
The complaint alleges that Osorio met an alien smuggling coordinator on Facebook and then arranged the smuggling event through WhatsApp communications. On May 24, Osorio drove to southern Arizona and picked up multiple undocumented non-citizens. After transporting the individuals for approximately half an hour, Osorio noticed law enforcement behind him. He stopped and began yelling at his passengers to get out. The last passenger had not fully exited the vehicle when Osorio pushed him out and started driving again. The passenger fell and Osorio ran over him as he fled from law enforcement. United States Border Patrol immediately rendered aid and called for emergency medical services to respond. The passenger was transported to the hospital where he was treated for injuries including abrasions and head trauma. Osorio later fled from a Border Patrol immigration checkpoint before eventually yielding to agents.
A criminal complaint is merely an allegation of criminal conduct, not evidence. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
Customs and Border Protection’s U.S. Border Patrol is conducting the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, is handling the prosecution.
CASE NUMBER: 22-MJ-04608
RELEASE NUMBER: 2022-083_Osorio# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news
Thursday 26 May 2022
Woman Arrested in Rancho Cordova Sentenced to over 7 Years in Prison for Identity Theft and Bank Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Candice Nicole Freitas, 34, formerly of Martinez, was sentenced today by U.S. District Judge Troy L. Nunley to seven years and 10 months in prison for bank fraud, aggravated identity theft, and possession of reproduced U.S. Postal Service keys, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between April and August 2018, Freitas and her co-defendant Cody Cannon committed a fraud scheme in which they used counterfeit U.S. Postal Service keys to open residential mailboxes, typically in large apartment complexes, and steal hundreds of pieces of U.S. mail throughout Northern California. From the stolen mail, Freitas and Cannon harvested financial information, credit and debit cards, government-issued IDs, and personally identifiable information (PII). They also defrauded banks by using the stolen bankcards to purchase goods and withdraw cash from ATMs in at least Vacaville, Folsom, Rocklin, and Rancho Cordova.
In August 2018, Freitas and Cannon were arrested at their motorhome, which was parked in a hotel parking lot in Rancho Cordova. During a search of the motorhome, law enforcement found hundreds of pieces of stolen mail, checks, and bankcards, as well as documents containing the PII of dozens of identity-theft victims. Law enforcement also found stolen and counterfeit government-issued IDs, including at least 20 California driver’s licenses and two U.S. passports. The U.S. Postal Inspection Service has identified over 1,500 victims of mail and identity theft associated with these offenses.
This case was the product of an investigation by the U.S. Postal Inspection Service, the Sacramento County Sheriff’s Department, the Folsom Police Department, and the Vacaville Police Department. Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
In October 2019, Cannon was sentenced to four years and nine months in prison for his involvement in this scheme.
Washington woman sentenced to 52 months in prison for cyberstalking and harassing Montana man, public officialsRead the Press Release
MISSOULA — A Washington woman who was convicted by a jury of cyberstalking a Montana man and Montana public officials by hacking the man’s email and sending harassing and threatening communications was sentenced today to 52 months in prison, to be followed by three years of supervised release, U.S. Attorney Leif M. Johnson said.
Kathy Ann Hendrickson, also known as Kathy Thorberg, 60, of Walla Walla, Washington, was convicted on Feb. 16 of cyberstalking following a three-day trial.
U.S. District Judge Donald W. Molloy presided.
In court documents and at trial, the government presented evidence that Hendrickson met the victim, identified as John Doe, on a dating website sometime in 2015 or 2016. The two communicated online and eventually met in person on several occasions at John Doe’s residence in Trout Creek. John Doe ended the relationship and then suspected Hendrickson of stealing his personal information. Hendrickson started harassing John Doe as early as May 2018 when, using an anonymous email account, sent him an email stating, “I’m going to bring you down.”
Hendrickson also hacked into John Doe’s account, using a password she stole from his address book, and sent threatening emails, including death threats, to herself and to Sanders County Commissioners and another county employee. Hendrickson also used John Doe’s email address to send a threatening email to then-Governor Steve Bullock in another attempt to subject John Doe to law enforcement scrutiny.
Court documents further alleged that Hendrickson not only used a fake email account to harass victims, but also used a burner phone. While Hendrickson’s real phone contained incriminating evidence, the burner phone was not recovered during the investigation.
Assistant U.S. Attorney Timothy J. Racicot prosecuted the case, which was investigated by the FBI.
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Washington State man pleads guilty to hate crime in connection with arson at Capitol Hill barRead the Press Release
Seattle – Kalvinn Garcia, 25, of Sedro Woolley, Washington, pleaded guilty today to one count of committing a hate crime for the Feb. 24, 2020, arson at Queer/Bar, a nightclub and event space in Seattle, Washington. Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Nick Brown for the Western District of Washington and Special Agent in Charge Donald M. Voiret for the FBI Seattle Field Office made the announcement.
According to documents filed in connection with the plea, Garcia set fire to the contents of a dumpster in the alley directly behind Queer/Bar on February 24, 2020. Garcia was arrested only minutes after setting the fire. Garcia admitted to law enforcement that he set the fire and that he targeted Queer/Bar because it angered him to see a sign that said “queer.” He also told officers, “I think it’s wrong that we have a bunch of queers in our society.” A few weeks after the incident, Garcia told a stranger that his intent in setting the fire was to trap and hurt the people inside.
“The defendant targeted the patrons inside Queer/Bar, a known safe space for the LGBTQI+ community,” said Assistant Attorney General Clarke. “Hate crimes have no place in our society today and we stand ready to use our federal civil rights laws to hold perpetrators accountable. All people deserve to feel safe and secure living in their communities, regardless of their sexual orientation or gender identity.”
“Mr. Garcia endangered countless people who he did not know, and who were simply trying to live their lives, solely because of his own hatred,” said U.S. Attorney Brown. “We must stand up to this hate at every opportunity, to demonstrate to our community that acting on hate will not be tolerated.”
“Mr. Garcia’s hateful act endangered and spread fear in the LGBTQ+ community and caused damage to this business establishment,” said Special Agent in Charge Voiret, of the FBI Seattle Field Office. “Fortunately, our partners at the Seattle Police Department were able to respond quickly to this arson. This case shows our commitment to investigating civil rights violations with our partners.”
Garcia faces a maximum sentence of ten years of imprisonment and a $250,000 fine. Sentencing in front of U.S. District Judge John C. Coughenour is scheduled for September 20, 2022.
The case was investigated by FBI and the Seattle Police Department. The case is being prosecuted by Assistant United States Attorney Rebecca Cohen and Trial Attorney Angie Cha of the Civil Rights Division.
Washington Man Pleads Guilty to Committing Hate Crime for Arson at Seattle NightclubRead the Press Release
Kalvinn Garcia, 25, of Sedro Woolley, Washington, pleaded guilty to one count of committing a hate crime for the Feb. 24, 2020, arson at Queer/Bar, a nightclub and event space in Seattle, Washington. Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Nick Brown for the Western District of Washington and Special Agent in Charge Donald M. Voiret for the FBI Seattle Field Office made the announcement.
According to documents filed in connection with the plea, Garcia set fire to the contents of a dumpster in the alley directly behind Queer/Bar on Feb. 24, 2020. Garcia was arrested only minutes after setting the fire. Garcia admitted to law enforcement that he set the fire and that he targeted Queer/Bar because it angered him to see a sign that said “queer.” He also told officers, “I think it’s wrong that we have a bunch of queers in our society.” A few weeks after the incident, Garcia told a stranger that his intent in setting the fire was to trap and hurt the people inside.
“The defendant targeted the patrons inside Queer/Bar, a known safe space for the LGBTQI+ community,” said Assistant Attorney General Clarke. “Hate crimes have no place in our society today and we stand ready to use our federal civil rights laws to hold perpetrators accountable. All people deserve to feel safe and secure living in their communities, regardless of their sexual orientation or gender identity.”
“Garcia endangered countless people who he did not know and who were simply trying to live their lives, solely because of his own hatred,” said U.S. Attorney Brown. “We must stand up to this hate at every opportunity, to demonstrate to our community that acting on hate will not be tolerated.”
“Garcia’s hateful act endangered and spread fear in the LGBTQ+ community and caused damage to this business establishment,” said Special Agent in Charge Voiret. “Fortunately, our partners at the Seattle Police Department were able to respond quickly to this arson. This case shows our commitment to investigating civil rights violations with our partners.”
Garcia faces a maximum sentence of 10 years of imprisonment and a $250,000 fine.
The case was investigated by FBI and the Seattle Police Department. The case is being prosecuted by Assistant U.S. Attorney Rebecca Cohen and Trial Attorney Angie Cha of the Civil Rights Division.
Virginia Man Sentenced for Passing Counterfeit U.S. CurrencyRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on May 25, 2022, Dale Richard Estep II, age 35, of Colonial Beach, Virginia, was sentenced by U.S. District Court Judge Sylvia H. Rambo to two years of probation, four of those months on home confinement, for passing counterfeit U.S. currency.
According to U.S. Attorney John C. Gurganus, Estep passed counterfeit currency at the Sheetz, Sunoco, and Rutters gas stations along the I-81 and US 15 corridors in Adams, Cumberland, Franklin, and York Counties between May 12-14, 2019.
Judge Rambo ordered Estep to pay restitution in the amount of $3,300 as follows:
- $2,650 to Sheetz, Claysburg, PA;
- $500 to Sunoco A+, Dillsburg, PA; and
- $150 to Rutters, Dillsburg, PA.
The case was investigated by the United States Secret Service, Harrisburg Office. Assistant U.S. Attorney Christian T. Haugsby prosecuted the case.
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Verzatec Abandons Proposed Acquisition of Crane Composites Following Justice Department Suit to BlockRead the Press Release
The Department of Justice announced today that Grupo Verzatec S.A. de C.V. (Verzatec) has abandoned its proposed acquisition of Crane Composites (Crane), a wholly-owned subsidiary of Crane Co. The proposed transaction would have eliminated intense competition between Verzatec and its biggest competitor, Crane, allowing Verzatec to dominate the industry and harm American businesses.
On March 17, the department filed suit to block the transaction in the U.S. District Court for the Northern District of Illinois. The complaint alleged that the proposed $360 million transaction would harm competition in production and sale of pebbled fiberglass reinforced plastic (FRP) wall panels, whose product and performance characteristics make it the wall covering of choice for many restaurants, grocery stores, hospitals and convenience stores across the United States. The trial was scheduled for Oct. 4. As a result of Verzatec and Crane’s decision to terminate their transaction agreement, the United States has filed a joint stipulation of dismissal.
“Verzatec’s proposed acquisition of Crane was a brazen attempt to eliminate its main rival and establish a monopoly in this market. This case further demonstrates the Justice Department’s resolve to file and litigate suits to block unlawful and anticompetitive mergers under both the Clayton Act and as illegal monopolization under the Sherman Act,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “I would like to recognize the tremendous efforts of our staff who investigated and litigated the case so strongly and applaud them for this excellent result on behalf of American businesses.”
As a result of the abandonment, building supply distributors and home-improvement retailers across the nation will continue to benefit from the head-to-head competition between the companies, as will the many American businesses that use pebbled FRP in applications where low cost, durability and sanitary performance are paramount.
Verzatec is a privately held Mexican corporation with its headquarters in Monterrey, Mexico. Verzatec and its subsidiary Stabilit America Inc. produce and sell building materials and wall coverings, including pebbled FRP wall panels, in the United States under several business units, including Glasteel, Marlite and Nudo.
Crane Company is a Delaware corporation headquartered in Stamford, Connecticut. Crane Company’s wholly-owned subsidiary Crane Composites Inc. manufactures and sells pebbled FRP wall panels in the United States under several brand names, including Glasbord and Sequentia.
U.S. Soldier Indicted in Romance SchemeRead the Press Release
TOPEKA, KAN. – A federal grand jury in Topeka indicted a U.S. Army service member for allegedly participating in a scheme to fraudulently obtain approximately $149,476 from at least 25 individuals.
According to court documents, Innocent N. Ugwu, 24, of Fort Riley, Kansas, is charged with five counts of wire fraud, five counts of laundering monetary instruments, and one count of procurement of citizenship or naturalization unlawfully. From an unknown date until January 2021, Ugwu is accused of conspiring with others to defraud money from individuals in the United States using false pretenses and promises, and the omission of material facts to carry out romance, advance fee and other fraudulent schemes.
The U.S. Secret Service and the Department of Defense, Defense Criminal Investigative Service are investigating the case.
Special U.S. Assistant Attorney Robin Graham and U.S. Assistant Attorney Christine Kenney are prosecuting the case.
OTHER INDICTMENTS
Daniel Cardiel-Ramirez, 31, of Wichita is charged with one count of possession with intention to distribute a controlled substance and one count of possession of a firearm by an illegal alien. The Drug Enforcement Administration (DEA) is investigating the case. Special Assistant U.S. Attorney Katie Andrusak is prosecuting the case.
Chelsea Pulse, 27, of Junction City is charged with one count of embezzlement of the mail, two counts of theft of the mail, and one count of delay of mail. The U.S. Postal Service is investigating the case. Assistant U.S. Attorney Sara Walton is prosecuting the case.
Jeremias Sanchez, 27, an inmate of U.S. Penitentiary Leavenworth, is charged with one count of possession contraband in prison. The U.S. Marshals Service is investigating the case. Assistant U.S. Attorney Greg Hough is prosecuting the case.
James Shaughnessy, 20, is charged with one could of sexual exploitation of a minor- production of child pornography. Homeland Security Investigations (HSI) is investigating the case. Assistant U.S. Attorney Sara Walton is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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U.S. Attorney’s Office secures agreement in race discrimination lawsuit involving Atlanta-based property owners and management companyRead the Press Release
ATLANTA - The U.S. Attorney’s Office announced that the U.S. District Court for the Northern District of Georgia has approved a consent decree resolving the department’s Fair Housing Act lawsuit alleging race discrimination in housing by the owners and manager of two rental properties in Cedartown, Georgia. The defendants are Crimson Management LLC; Benefield Housing Partnership (doing business as Cedartown Commons); and Cedartown Housing Associates (doing business as Cedarwood Village).
“Access to housing opportunities remains unequal for African-American housing applicants all too often,” said U.S. Attorney Ryan K. Buchanan. “My office will continue to devote resources to eradicate this injustice and we will continue to hold housing providers accountable for racial discrimination in violation of the Fair Housing Act.”
“It is unacceptable that race discrimination in housing persists in our nation more than a half-century after President Johnson signed the Fair Housing Act into law,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This Justice Department is committed to vigorously enforcing our civil rights laws by holding housing providers responsible when they perpetuate racial segregation or otherwise engage in prohibited discrimination.”
The lawsuit, filed in May 2020, alleged that the defendants steered Black housing applicants who are elderly or have a disability away from Cedarwood Village, a predominantly white housing complex, to Cedartown Commons, a housing complex that is inferior in appearance, location and amenities to Cedarwood Village. Most residents of Cedartown Commons are Black. The lawsuit further alleged that the defendants subjected Black residents who are elderly or have a disability to less favorable rental terms, conditions and privileges as compared to similarly situated white tenants. The defendants’ policies allegedly perpetuated segregation at the two properties.
This case was jointly litigated by attorneys of the U.S. Attorney’s Office for the Northern District of Georgia and the Justice Department’s Civil Rights Division. Under the court-approved decree, the defendants are required to pay $83,000 in damages to three former tenants who were allegedly harmed as a result of the defendants’ racial steering; pay a civil penalty to the United States; implement nondiscriminatory policies and procedures; complete fair-housing training; and submit periodic reports to the Justice Department.
The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability, and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. Individuals may report sexual harassment or other forms of housing discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-800-896-7743, e-mailing the Justice Department at [email protected], or submitting a report online at https://civilrights.justice.gov/. Individuals may also report such discrimination by contacting the Department of Housing and Urban Development at 1-800-669-9777 or by filing a complaint online at https://www.hud.gov/fairhousing/fileacomplaint.
Assistant U.S. Attorney Aileen Bell-Hughes, Civil Rights Enforcement Coordinator, handled this matter for the U.S. Attorney’s Office for the Northern District of Georgia.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
U.S. Attorney’s Office Settles ADA Claim with Suburban Chicago Salon over Alleged HIV DiscriminationRead the Press Release
The United States Attorney’s Office for the Northern District of Illinois today announced that, as part of a continued effort to enforce the Americans with Disabilities Act (ADA), it has reached a settlement with Faux Ever Beauty in Countryside, Ill., to resolve claims that the salon discriminated against a potential client with HIV.
The U.S. Attorney’s Office found that Faux Ever Beauty discriminated against a person with HIV when the salon’s owner unlawfully refused to perform an eyebrow microblading procedure due to the person’s HIV status. The investigation revealed that Faux Ever Beauty’s actions were not consistent with current medical knowledge. Moreover, an individual’s HIV status is not a legitimate or lawful reason to refuse to treat a patient seeking services.
Under the terms of the settlement agreement and consistent with penalties available under the ADA, Faux Ever Beauty paid $4,500 to the victim of discrimination. In addition, the owner of Faux Ever Beauty must attend training on the requirements of the ADA, implement an anti-discrimination policy, and report to the U.S. Attorney’s Office any time a person is not accepted as a patient due to a medical condition – with a written justification for the decision. The U.S. Attorney’s Office waived the civil fine in recognition of Faux Ever Beauty’s cooperation during the investigation.
“Salons and other businesses should understand that individuals seeking physical services should not be excluded based on HIV,” said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois. “This settlement should send a clear message that individuals living with HIV are entitled to the same services as everyone else.”
Title III of the ADA prohibits public accommodations, such as salons, medical offices, and tattoo parlors, from excluding people with disabilities, including people with HIV, from enjoying goods, services, privileges, facilities, and advantages provided. For more information regarding the Department of Justice’s efforts to combat discrimination, please visit the official ADA government website. To learn more about the obligations of public accommodations under federal disability rights statutes, call the Department of Justice’s toll-free ADA information line at 800-514-0301, 800-514-0383 (TTY).
Assistant U.S. Attorneys Patrick Johnson and Valerie R. Raedy represented the government during the Faux Ever Beauty investigation and settlement.
U.S. Attorney to Present Award to the 19th Annual Project Safe Neighborhoods Logo Contest WinnerRead the Press Release
Columbia, South Carolina --- U.S. Attorney Corey F. Ellis will be at Fairfield Magnet School for Science and Math this Friday, May 27, 2022, at 8:30am, for their Awards Day program in order to present awards to the 19th Annual Project Safe Neighborhoods (PSN) Logo Contest Overall Winner/3rd-5th grade category winner, along with the winner in the K-2nd grade division and several honorable mentions all from that school. He’ll be accompanied by John “JJ” Jones, Executive Director of the South Carolina Law Enforcement Officers’ Association (SCLEOA) and the South Carolina Chiefs Association.
Award winners from Fairfield Magnet School for Science and Math are:
Winner K–2nd grade Division
Mason Cordona
Winner 3rd–5th grade Division/ OVERALL WINNER
Layla McMillan
Honorable Mentions
K-2nd grade Division
Kyngston Turner
3rd – 5th grade Division
Zedrick Curabo
Brianna Lanier
6th – 8th grade Division
Christon Simons
The winning entries were chosen by a select group of young leaders at the South Carolina Department of Juvenile Justice who act as role models for the other youth throughout the entire department. SCLEOA and the South Carolina Sheriffs’ Association provided $50.00 awards to each division winner; and the overall winner received an additional $50.00 award. Awards have already been presented to the other age category winners. All students who participated received a Certificate of Appreciation for their submissions.
The annual logo contest is a long-running part of the district’s PSN program and an important prevention initiative that has proven to be an effective way to engage our students in meaningful conversation about preventing gun crimes amongst our young people and ensuring a safe learning atmosphere for our children. PSN focuses on reducing violent crime in our communities through prevention, enforcement, and reentry initiatives.
View this year’s winning submissions and learn more about the contest at http://www.justice.gov/usao/sc/programs/logowinners.html.
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U.S. Attorney Talbert Announces Greater Fresno Hate Crimes Task Force, Building on 20+ Years of Greater Sacramento Hate Crimes Task ForceRead the Press Release
FRESNO, Calif. — U.S. Attorney Phillip A. Talbert announced today the first in-person convening of the Greater Fresno Hate Crimes Task Force, which seeks to directly connect federal, state, and local law enforcement with diverse communities in order to build trust and encourage the reporting of hate crimes and hate incidents.
One of the most valuable and sustained efforts undertaken by the U.S. Attorney’s Office for the Eastern District of California is the Greater Sacramento Hate Crimes Task Force, which was first convened in 1999 following the “Summer of Hate” crimes that included the murder of a gay couple in Shasta County and arson attacks on Jewish synagogues in Sacramento. In April 2021, using the Sacramento-based Hate Crimes Task Force as a model, the U.S. Attorney’s Office launched the Greater Fresno Hate Crimes Task Force to serve the southern part of the district.
Both the Greater Sacramento Hate Crimes Task Force and Greater Fresno Hate Crimes Task Force connect many diverse community leaders and organizations with the federal, state, and local law enforcement agencies that serve them. Represented groups include African American, Asian American, LatinX, LGBTQ+, Jewish, Muslim, Sikh, interfaith groups, and many other communities. As part of this effort, training is also provided to help community members and organizations report hate crimes and to provide crisis response and security training.
On May 26, U.S. Attorney Talbert, leadership from the U.S. Attorney’s Office, law enforcement partners, and community leaders and members met to discuss updates on hate crimes and other issues of concern in the Fresno region. The meeting included a roundtable-style open discussion, giving attendees the opportunity to ask questions, share concerns, and provide an update on relevant projects and opportunities to collaborate. U.S. Attorney Talbert also announced that in response to recent attacks, crisis response and active shooter training will be provided again to houses of worship and other community groups in both Sacramento and Fresno.
“Acts of hate and racism have no place in our community and will not be tolerated,” said U.S. Attorney Talbert. “We want to ensure that all those who call this region their home feel safe regardless of their race, ethnic origin, color, religion, gender, sexual orientation, or disability. Prosecuting hate crimes continues to be a top priority for our office and our law enforcement partners, and our Hate Crimes Task Forces remain active. We commend the community leaders and members of our Sacramento and Fresno Hate Crimes Task Forces for their partnership and commitment to stopping hate crimes. If you see something, say something by contacting law enforcement so that we can do everything we can to help stop hate crime and protect the community.”
If you are a victim of a hate crime and are in immediate danger, call 911 first. Once you are safe, also report the hate crime to the FBI by calling 1-800-CALL-FBI (225-5324) or 916-746-7000. This FBI tip line offers language translation services in many languages spoken in our region, including Spanish, Chinese, Korean, Tagalog, and Vietnamese. When calling, be prepared to provide basic information — the who, what, when, where, and why. Tips can be made anonymously.
U.S. Attorney Dena J. King Announces the Winners of the 6th Annual "Do the Write Thing" Writing Challenge in AshevilleRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Dena J. King announced the winners of the 6th Annual “Do the Write Thing” (DtWT) writing challenge, during an award ceremony held this evening in Asheville.
The Do the Write Thing Challenge is a program of the National Campaign to Stop Violence, which seeks to encourage middle school students to express the impact of violence in their lives through writing, and empower students to become catalysts for positive change by sharing their ideas on ways to reduce youth violence.
“Now more than ever, we must provide children with opportunities to express the impact and trauma violence has caused in their young lives,” said U.S. Attorney King, who chairs the DtWT committee in Asheville. “It is equally important for us adults to really listen, with our ears and our hearts, to the ideas and solutions young people have to offer on how to curb violence in our communities. I want to congratulate the winners, the finalists, and all the students who participated in the writing challenge, and thank the parents, guardians, teachers, and school administrators for supporting and encouraging students to express themselves through the written word. Violence reduction is one of the highest priorities of the Department of Justice, and prevention is an important component of an effective crime reduction strategy. I am looking forward to partnering with our schools and our community to develop pathways for positive change.”
A total of 603 essays written by middle school students attending Asheville Middle School and Buncombe County Schools were submitted for consideration. Of the 12 finalists recognized at this evening’s ceremony, Maggie Agan, an 8th grader with Asheville Middle School, and Bear Farmer, an 8th grader with Valley Springs Middle School, were announced as this year’s overall contest winners and were designated as National DtWT Ambassadors. As National Ambassadors, Maggie and Bear, their parents/guardians and the teachers who submitted their essays will be invited to participate in the “Do the Write Thing Challenge National Recognition Week” in Washington, D.C., in July. During this all-expense-paid trip, Maggie and Bear will have an opportunity to visit national monuments and have their works placed in the Library of Congress.
During this evening’s ceremony, U.S. Attorney King also thanked the Asheville Police Department, the Buncombe County Sheriff’s Office, the Asheville Housing Authority, and the SPARC Foundation for partnering with the U.S. Attorney’s Office to form the DtWT committee. U.S. Attorney King also recognized the teachers, school administrators, counselors, parents, guardians, and caregivers for their dedication in this important endeavor, and thanked them for supporting the students’ efforts and helping them reach their full potential.
For more information on the National Do the Write Thing program please visit http://www.dtwt.org.
Two More New Orleans Area Defendants Sentenced for Conspiring to Stage Automobile Collisions in Order to Defraud Insurance and Trucking CompaniesRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced today that on May 25, 2022 DONIESHA GIBSON (“GIBSON”), age 31, of New Orleans, Louisiana and ERICA LEE THOMPSON (“ERICA LEE”), age 47, of Harvey, Louisiana, were sentenced for Conspiracy to Commit Wire Fraud, in violation of Title 18, United States Code, Section 371, arising out of staged automobile collisions with tractor-trailers occurring in New Orleans.
According to documents filed in federal court, GIBSON and ERICA LEE, along with their co-conspirators and others, beginning in approximately as early as 2015 and continuing through the present, conspired to commit wire fraud in connection with staged accidents, including two that occurred on October 15, 2015, and September 6, 2017. Thus far, the total number of defendants convicted in “Operation Sideswipe” is thirty-seven (37).
GIBSON admitted to being a passenger in a staged accident on October 15, 2015. On that day, her former co-defendant intentionally drove a 2014 Dodge Avenger owned by GIBSON into a Hotard bus while traveling on the I-10 near the flyover of the I-510. GIBSON retained an attorney and thereafter made a claim for damages. The total settlement for the Hotard bus accident was approximately $677,500.00.
ERICA LEE admitted that on September 6, 2017, on the I-10 near the Almonaster exit, she was a passenger in a 2015 RAV4 being driven by their former co-defendant, when he intentionally crashed into a tractor-trailer owned by Averitt Express. ERICA LEE retained counsel and made a claim for damages. The total settlement for the Averitt accident was $30,000.
In total, the victim trucking, bus, and insurance companies paid out approximately $707,500.00 for these two fraudulent claims orchestrated by the defendants and others.
United States District Judge Sarah S. Vance sentenced GIBSON to seventeen (17) months incarceration, followed by a three(3) year term of supervised release, restitution in the amount of $677,500.00, and a $100.00 mandatory special assessment fee. THOMPSON was sentenced to three (3) years probation, restitution in the amount of $121,076.75, 100 hours of community service, and a $100.00 mandatory special assessment fee.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Federal Bureau of Investigation, Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit; Assistant U.S. Attorney Edward J. Rivera; Assistant U.S. Attorney Maria Carboni; and Assistant U.S. Attorney Brandon Long.
Two Honduran citizens suspected of conspiring to transport illegal aliens from Canada into the United States appear in courtRead the Press Release
GREAT FALLS — Two men from Honduras appeared in court today on immigration-related charges after U.S. Border Patrol agents arrested them and detained others following a suspected illegal border crossing from Canada into Montana, near Sweetgrass, U.S. Attorney Leif M. Johnson said.
Jorge Orellana-Banegas, 23, and his uncle, Jose Eugenio Banegas-Torres, 38, both Honduran citizens, had initial appearances on criminal complaints accusing each of illegal transport of aliens and conspiracy to transport aliens.
A criminal complaint is only an accusation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
U.S. Magistrate Judge John T. Johnston presided. Both defendants were detained pending further proceedings.
The government alleged in court documents that at 11:45 p.m. on May 22, a group of eight individuals illegally crossed into the United States from Canada west of Sweetgrass. Border Patrol agents observed the group walk through an area known as “Buckley Coulee” and get into a 2021 Nissan Armada that was parked on Loop Road. An agent drove toward the vehicle to attempt an immigration stop and activated his lights and siren as the Nissan increased speed. The Nissan drove off the road and into Buckley Coulee and then went through a fence before stopping. All of the vehicle’s occupants got out and ran in multiple directions although an agent identified himself and gave commands in English and Spanish to stop. Agents chased the occupants on foot and caught five of the individuals. Agents searched the area for four outstanding individuals but did not find them.
Five of the individuals who were caught were transported to the Sweetgrass Border Patrol Station for processing. Four of the individuals claimed to be citizens of Mexico and one was a Honduran citizen.
The next day, a Border Patrol agent responded to a call of a suspicious person walking and hitch hiking south of Sunburst and located Orellana, who was transported to the Sweetgrass Station.
The government further alleged that an investigation determined Orellana was the driver and that his uncle, Banegas-Torres, was the smuggling guide. In all, six suspects were transported to the Sweetgrass Border Patrol Station for processing. Three other suspects in the crossing have not been located.
The U.S. Attorney’s Office is prosecuting the case, which was investigated by the U.S. Border Patrol.
PACER case reference. 22-mj-37 and 22-mj-38.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Two El Salvadoran Men Sentenced for Transporting an Illegal AlienRead the Press Release
Gulfport, Miss. – Two El Salvadoran nationals were sentenced for the federal felony offense of unlawful transportation of an alien within the United States, announced U.S. Attorney Darren J. LaMarca, Special Agent in Charge David Denton of Homeland Security Investigations in New Orleans, and Chief Patrol Agent Jason E. Schneider of the U.S. Border Patrol’s New Orleans Sector.
Jairo Levi Rivera-Ayala, 27, and Herberth Anton Rodriguez-Ayala, 34, were each sentenced to 15 months in federal prison. Both Rivera-Ayala and Rodriguez-Ayala had previously pled guilty to the unlawful transportation of an alien within the U.S.
The defendants were also sentenced to three-year terms of supervised release (TSR) to begin after completion of their prison sentences. Finally, after completion of their sentences, both men are subject to U.S. Department of Homeland Security proceedings to remove them from the United States. While their TSRs would be non-reporting while residing outside the U.S., if either man were to unlawfully return to the U.S. during the three-year TSR, he could receive additional prison time for violating the TSR in addition to separate prosecution for unlawful return after removal
According to court documents, Rivera-Ayala and Rodriguez-Ayala were arrested on September 14, 2021, on Interstate 10 (eastbound) in Harrison County. A Harrison County Sheriff’s Deputy conducted a vehicle stop of an SUV and identified the driver as Jairo Levi Rivera-Ayala. Rivera-Ayala’s brother, Herberth Anton Rodriguez-Ayala, was the front seat passenger, and later was identified as a co-driver. The vehicle also contained ten additional passengers for a total of twelve persons in a vehicle designed, and with seatbelts, for only seven people.
The U.S. Border Patrol responded to the scene and determined that all twelve occupants of the SUV were illegally present in the United States.
The case was investigated by the U.S. Border Patrol, Homeland Security Investigations, and the Harrison County Sheriff’s Department.
Assistant U.S. Attorney Stan Harris was the prosecutor for the case.
Two Defendants Charged with Prison-Based Unemployment Insurance FraudRead the Press Release
ALBANY, NEW YORK – Ivis Jorge, age 44, formerly an inmate at the Riverview Correctional Facility in Ogdensburg, New York, and Pamela Febo, age 38, of Keansburg, New Jersey, were arraigned today on an indictment alleging a fraud scheme to obtain unemployment insurance benefits, including COVID-19 pandemic-related benefits, from programs administered by the New York State Department of Labor (NYSDOL).
The announcement was made by United States Attorney Carla B. Freedman; Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); Anthony J. Annucci, Acting Commissioner of the New York State Department of Corrections and Community Supervision (NYSDOCCS); and NYSDOL Commissioner Roberta Reardon.
The indictment alleges a conspiracy to submit a fraudulent unemployment insurance claim to NYSDOL using Jorge’s personal identifying information. Febo allegedly submitted the application at Jorge’s direction in October 2020 and continued to re-certify Jorge’s benefits eligibility each week for approximately four months knowing that Jorge was incarcerated, and not “able and available to start work immediately.” NYSDOL paid more than $27,000 in benefits on the claim. The charges in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
Jorge, who remains subject to incarceration by New York State, waived a detention hearing and United States Magistrate Judge Daniel J. Stewart ordered him detained in federal custody pending trial. Febo was ordered released.
Both defendants are charged with conspiracy to commit mail fraud and wire fraud, as well as substantive wire fraud counts. The charges carry a maximum term of 20 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The case is being investigated by the FBI, the NYSDOCCS Office of Special Investigations, and the NYSDOL Office of Special Investigations. The case is being prosecuted by Assistant U.S. Attorney John T. Chisholm.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Twelve Defendants Sentenced for Tax Felonies and Immigration Crimes after Major Undercover OperationRead the Press Release
FLORENCE, SOUTH CAROLINA — Twelve Defendants across seven construction-related companies have been sentenced for employment tax fraud felonies and crimes related to hiring unauthorized aliens in the largest criminal Internal Revenue Service (IRS) operation in the history of the Pee Dee region.
The convictions are the first to come from an expansive multi-year undercover investigation in the Myrtle Beach area and throughout the South Carolina coast led by the IRS and Homeland Security Investigations (HSI).
The operation targeted those in the construction industry who used unlicensed check cashers to facilitate under-the-table cash payments to employees, many of whom were unauthorized aliens. The check cashers would also provide certificates of insurance falsely stating that the employees were covered under workers’ compensation insurance. These off-the-book payments defrauded the United States out of applicable employment taxes on the employees. At least $15 million in checks were cashed by these Defendants, resulting in millions of dollars of total losses to the Government. Based on the investigation, at least tens of millions of dollars of tax losses have occurred throughout the South Carolina coast because of similar schemes.
“These Defendants stole money from South Carolina taxpayers, they stole opportunities from those in the construction industry who did the right thing, and they stole safety from the workers who labored on jobsites without insurance,” said U.S. Attorney Corey F. Ellis. “This successful prosecution was only possible because of the tireless and dedicated investigative efforts of IRS and HSI, as well as the work of our local partners. The Defendants in this case, none of whom had criminal records before this investigation, are all now convicted felons. Several face potential deportation, several have lost their homes and face financial ruin, and many will never be able to return to the work they spent their lives pursuing. This case should be a message to businesses and individuals who try to get ahead by breaking the law: it is not worth it because we are watching you and we will prosecute you.”
“Unscrupulous businesses who willfully skirt their tax and legal workforce obligations must be held to account,” said IRS CI Special Agent in Charge Donald “Trey” Eakins. “Employers who deliberately deflect these obligations undermine what is owed to the U.S. Government in payroll taxes and other fees, in addition to creating an unfair economic advantage over law-abiding business owners who play by the rules.”
“Criminals that exploit U.S. labor and tax laws for profit take advantage of not only the workers, but they also steal revenue from the Government, while also creating an unfair business advantage over their competitors,” said Special Agent in Charge Ronnie Martinez, who oversees HSI operations in North Carolina and South Carolina. “Thanks to the great work done by our agents along with our state, local and federal partners we were able to stop this criminal organization from defrauding the Government and hurting the local economy.”
Evidence presented to the court showed that beginning around late 2018, IRS and HSI began jointly investigating the practice of illegal check cashing within the construction industry in the Myrtle Beach area and in other regions along the South Carolina coast. In approximately 2019, various IRS undercover agents embedded themselves in the Myrtle Beach area and recorded multiple interactions with the various defendants’ companies.
Specifically, certain construction companies would use check cashers so that they could hire unauthorized aliens and avoid paying employment taxes on their workers. To facilitate the scheme, a member of the construction company would meet with an unlicensed check casher in places like parking lots for retail stores or coffee shops. The construction company would give the check casher a business check in a certain amount made out to a company the check casher had created, and the check casher would give the construction company representative a bag of cash that would be used to pay the employees. In exchange for their services, the check casher held back a fee of approximately three percent.
To make it appear like the employees had valid insurance on job sites, the check casher would also provide a certificate of workers’ compensation insurance that was not actually valid for any of the construction company’s employees. The parties agreed that the check casher would, on paper, claim to be a subcontractor who provided the employees and provided insurance. However, the parties knew that the check casher provided no other services or employees to the construction company. The check casher only provided a way to hide the true nature of the scheme, to allow the construction company to hire unauthorized aliens, and to pay workers with untaxed cash.
Chief United States District Judge R. Bryan Harwell sentenced each of the Defendants to five years’ probation, with all but one sentenced to home confinement. Further, the Court ordered each Defendant to pay restitution as a result of the tax losses they caused the Government. The Court imposed the probation sentences largely because the Defendants admitted guilt early, agreed to assist authorities, paid collectively nearly a million dollars toward the approximately $3 million dollars owed to the IRS in restitution, and agreed as a condition of probation to make monthly payments – in most cases substantial payments – until the IRS is made whole. The following Defendants from the respective companies were sentenced in the case:
Daniel Lavoie Construction Services (4:21-cr-00585)
- Daniel A. Lavoie, 49, of Conway: Five years’ probation, 18 months home confinement with location monitoring, and $293,402.50 in restitution
- Enrique R. Reyes, 48, of Conway: Five years’ probation, 18 months home confinement with location monitoring, and $293,402.50 in restitution
Duran Masonry (4:21-cr-00584)
- Walter A. Duran, 45, of Myrtle Beach: Five years’ probation, 21 months home confinement with location monitoring, and $976,076.08 in restitution
- Lisa Caulley Sellers, 57, of Myrtle Beach: Five years’ probation, eight months home confinement with location monitoring, and $488,038.04 in restitution
Extreme Siding (4:21-cr-00595)
- Ming Xue Nan, 52, of Myrtle Beach: Five years’ probation, 14 months home confinement with location monitoring, and $173,712.43 in restitution
- Katherine L. Welker, 39, of Myrtle Beach: Five years’ probation, eight months home confinement with location monitoring, and $173,712.43 in restitution
Master Homes Calabash (4:21-cr-00581)
- Josafa P. Neto, 43, of Myrtle Beach: Five years’ probation, 18 months home confinement with location monitoring, and $209,847.07 in restitution
- Marylany Hardman Levino, 36, of Myrtle Beach: Five years’ probation and $209,847.07 in restitution
Metro Concrete Finishers (4:21-cr-00594)
- Saul Prieto, 56, of Myrtle Beach: Five years’ probation, nine months home confinement with location monitoring, and $74,868.50 in restitution
- Martha E. Zarate, a/k/a Martha E. Prieto, 54, of Myrtle Beach: Five years’ probation, nine months home confinement with location monitoring, and $74,868.50 in restitution
Master Homes Design Center (4:21-cr-00582)
- Marcos Caetano De Almeida, 45, of Myrtle Beach: Five years’ probation, 21 months home confinement with location monitoring, and $298,816.52 in restitution
Paint By Numbers (4:21-cr-00583)
- Johanna A. Carpio, 38, of Myrtle Beach: Five years’ probation, 14 months home confinement with location monitoring, and $131,449.69 in restitution
Each of the twelve Defendants previously pleaded guilty to an Information charging them with one felony count of conspiracy to defraud the United States and one misdemeanor count of unlawful employment of aliens.
This case was investigated by IRS and HSI, with assistance from the Myrtle Beach Police Department. Assistant U.S. Attorneys Derek A. Shoemake and Carrie Fisher prosecuted the case.
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Tulsa Man Sentenced to 12 Years in Federal Prison for CarjackingRead the Press Release
A 21-year-old Tulsa man who took part in a violent but unsuccessful carjacking was sentenced Thursday in federal court, announced U.S. Attorney Clint Johnson.
U.S. District Judge Billy Roy Wilson sentenced Dwight Vernon Leleux to 144 months in federal prison followed by five years of supervised release. The defendant was further ordered to pay the victim $3, 229.09 in restitution for medical costs, to be paid jointly and severally with his co-defendant, Waylon Richard Goss.
“Dwight Leleux will spend 12 years in federal prison for his brazen acts of violence in our community,” said U.S. Attorney Clint Johnson. “This Project Safe Neighborhoods prosecution is the result of close collaborative work between FBI agents, Tulsa police officers, and federal prosecutors who are all committed to reducing violent crime.”
"The FBI and our law enforcement partners are firmly committed to protecting neighborhoods from senseless, unprovoked crimes like Leleux's violent carjacking attempt," said Special Agent in Charge Edward Gray of the FBI Oklahoma City Field Office. "Today's sentence demonstrates that we won't tolerate this sort of criminal behavior here in Tulsa, nor anywhere throughout the state of Oklahoma."
On Dec. 8, 2021, Leleux pleaded guilty to carjacking and carrying, using, and brandishing a firearm during and in relation to a crime of violence.
Leleux admitted that he and another individual used force when they attempted to carjack a Honda CR-V on March 5, 2021.
According to court documents, Leleux and his accomplice, Waylon Richard Goss, requested and received a ride from the victim. While in the back seat, Leleux first told Goss that he planned to rob the victim and showed Goss a .380 caliber semiautomatic pistol he was carrying in his waistband.
Once they stopped at the intended location, Leleux opened the driver’s door, pointed the firearm at the victim, hit him in the head and face with the firearm and his fists, and grabbed him by the throat. He demanded the victim hand over the vehicle, but the victim refused. Leleux and Goss then pulled the victim from the vehicle and continued assaulting him.
The victim was able to fight off his attackers and get back into the CR-V. Leleux then discharged his firearm at the vehicle’s right front tire as the victim drove away. The victim suffered significant cuts and swelling to his face and head and sought medical attention.
Goss, 20, of Tulsa, previously pleaded guilty to carjacking and was sentenced to 33 months in federal prison followed by three years of supervised release.
This case was prosecuted as part of Project Safe Neighborhoods. 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.
Judge Wilson is a visiting judge from the Eastern District of Arkansas. The FBI and Tulsa Police Department conducted the investigation, and Assistant U.S. Attorney David D. Whipple prosecuted the case.