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7 July 2022
Wheeling man sentenced for drug conspiracyRead the Press Release
WHEELING, WEST VIRGINIA – William Hinton, of Wheeling, West Virginia, was sentenced yesterday to 180 months of incarceration for his involvement in a drug trafficking conspiracy, United States Attorney William Ihlenfeld announced.
Hinton, also known as “Abu Twoseventeeen,” age 49, pleaded guilty in February 2022 to one count of “Conspiracy to Distribute and Possess with the Intent to Distribute Cocaine Base, Cocaine Hydrochloride, Methamphetamine, and Heroin” and one count of “Distribution of Cocaine Base.” Hinton admitted to working with others to sell cocaine base, also known as “crack,” cocaine hydrochloride, also known as “coke,” and methamphetamine from June 2019 to August 2021 in Ohio County and elsewhere, including the Southern District of Ohio.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, which includes the Drug Enforcement Administration, West Virginia State Police, the Ohio County Sheriff’s Office, and the Wheeling Police Department, investigated. The Belmont County Sheriff’s Office and the St. Clairsville Police Department assisted
U.S. District Judge John Preston Bailey presided.
West Virginia Hospital to Pay $1.5 Million to Settle Allegations Concerning Impermissible Financial Relationships with Referring PhysiciansRead the Press Release
WHEELING – Weirton Medical Center, a hospital located in Weirton, West Virginia, has agreed to pay $1.5 million to resolve allegations that it violated the False Claims Act by knowingly submitting or causing the submission of claims to Medicare in violation of the Physician Self-Referral Law (commonly referred to as the Stark Law).
“Health care decisions should be based on patients’ medical needs, not physicians’ financial interests,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “The department will continue to investigate financial relationships that may improperly influence physician decision-making.”
“Improper compensation arrangements between hospitals and physicians will not be tolerated,” said U.S. Attorney William Ihlenfeld for the Northern District of West Virginia. “The U.S. Attorney’s Office will be aggressive in its pursuit of those who violate the Stark Law and we strongly encourage whistleblowers to come forward.”
“Patients trust their health care providers’ decisions are made based on their individual medical needs and not to increase providers’ profits,” said Special Agent in Charge Maureen Dixon of the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG). “HHS-OIG will continue to work with the U.S. Attorney’s Office to investigate health care fraud allegations and to protect the integrity of the Medicare program.”
The settlement, which is based on the hospital’s financial condition, stems from a voluntary self-disclosure made by the hospital regarding potential Stark Law violations. The Stark Law prohibits a hospital from billing Medicare for certain services referred by physicians with whom the hospital has a financial relationship, unless that relationship satisfies one of the law’s statutory or regulatory exceptions. The Stark Law is intended to ensure that medical decision-making is not compromised by improper financial incentives and is instead based on the best interests of the patient. The settlement resolves Weirton Medical Center’s liability under the False Claims Act for submitting claims to Medicare that resulted from violations of the Stark Law due to payment of compensation to referring physicians that allegedly exceeded fair market value or took into account the volume or value of the physicians’ referrals to the hospital.
The matter was investigated by Senior Trial Counsel Diana Cieslak and Assistant U.S. Attorneys Stephanie Savino and Christopher Prezioso for the Northern District of West Virginia.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Northern District of West Virginia with assistance from HHS-OIG.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The claims resolved by the settlement are allegations only and there has been no determination of liability.
West Virginia Hospital to Pay $1.5 Million to Settle Allegations Concerning Impermissible Financial Relationships with Referring PhysiciansRead the Press Release
Weirton Medical Center, a hospital located in Weirton, West Virginia, has agreed to pay $1.5 million to resolve allegations that it violated the False Claims Act by knowingly submitting or causing the submission of claims to Medicare in violation of the Physician Self-Referral Law (commonly referred to as the Stark Law).
“Health care decisions should be based on patients’ medical needs, not physicians’ financial interests,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “The department will continue to investigate financial relationships that may improperly influence physician decision-making.”
“Improper compensation arrangements between hospitals and physicians will not be tolerated,” said U.S. Attorney William Ihlenfeld for the Northern District of West Virginia. “The U.S. Attorney’s Office will be aggressive in its pursuit of those who violate the Stark Law and we strongly encourage whistleblowers to come forward.”
“Patients trust their health care providers’ decisions are made based on their individual medical needs and not to increase providers’ profits,” said Special Agent in Charge Maureen Dixon of the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG). “HHS-OIG will continue to work with the U.S. Attorney’s Office to investigate health care fraud allegations and to protect the integrity of the Medicare program.”
The settlement, which is based on the hospital’s financial condition, stems from a voluntary self-disclosure made by the hospital regarding potential Stark Law violations. The Stark Law prohibits a hospital from billing Medicare for certain services referred by physicians with whom the hospital has a financial relationship, unless that relationship satisfies one of the law’s statutory or regulatory exceptions. The Stark Law is intended to ensure that medical decision-making is not compromised by improper financial incentives and is instead based on the best interests of the patient. The settlement resolves Weirton Medical Center’s liability under the False Claims Act for submitting claims to Medicare that resulted from violations of the Stark Law due to payment of compensation to referring physicians that allegedly exceeded fair market value or took into account the volume or value of the physicians’ referrals to the hospital.
The matter was investigated by Senior Trial Counsel Diana Cieslak and Assistant U.S. Attorneys Stephanie Savino and Christopher Prezioso for the Northern District of West Virginia.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Northern District of West Virginia with assistance from HHS-OIG.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The claims resolved by the settlement are allegations only and there has been no determination of liability.
West Falls Man Pleads Guilty to Child Exploitation Charge at Start of Federal TrialRead 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, as jury selection was scheduled to get underway in his federal trial, Nicholas Turnquist, 36, of West Falls, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to transportation and attempted transportation of a minor with the intent to engage in criminal sexual activity. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $250,000 fine.
Assistant U.S. Attorneys Maeve E. Huggins, Paul E. Bonanno, and Jonathan P. Cantil, who are handling the case, stated that beginning in 2012, and for several years after, Turnquist sexually abused a minor female victim (Victim) who was known to Turnquist. The sexual abuse occurred in New York State and in other states, including Pennsylvania, and in Canada. For example, on December 23, 2014, Turnquist transported the Victim, a then 16-year-old minor female, from New York to Pennsylvania, to engage in sexual activity.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, the East Aurora Police Department, under the direction of Chief Shane Krieger, and the Wyoming County Sheriff’s Office, under the direction of Sheriff Gregory Rudolph.
Sentencing is scheduled for October 20, 2022, at 10:00 a.m. before Judge Sinatra.
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U.S. Attorney’s Office Reminds Communities Regarding the Americans with Disabilities Act and Outdoor Dining AreasRead the Press Release
LEXINGTON, Ky. — As part of continuing COVID-19 pandemic mitigation strategies, many cities and other local municipalities have allowed restaurants to create or expand outdoor dining spaces, onto streets, sidewalks, and parking lots. To ensure that such new dining spaces are accessible and do not impair the ability of those with disabilities to move in and around these areas, the U.S. Attorney’s Office for the Eastern District of Kentucky announced that it is sending the attached Letter to remind communities and restaurants of the requirements of the Americans with Disabilities Act (ADA).
The Letter explains that, under the ADA, restaurants must ensure that all dining areas (both indoor and outdoor) are accessible. It also reminds municipalities, who often must approve the use or expansion of outdoor dining, that these areas must not obstruct the accessible path of travel on sidewalks. Similarly, outdoor dining spaces should not reduce the availability of accessible parking spaces, in streets and parking lots.
“The use of new or enhanced outdoor seating is a valuable tool to assist COVID-19 mitigation and promote business,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “However, when considering these changes, it is important for restaurants to remember the requirements of the ADA and to ensure that any outdoor dining spaces are accessible to people with disabilities, and do not diminish the accessibility of surrounding areas, including sidewalks and availability of accessible parking spaces.”
The Letter includes a link to the Department of Justice’s website, ADA.gov, which provides information and technical assistance on the ADA’s requirements for public accommodations, such as restaurants, as well as state and local governments.
The U.S. Attorney’s Office for the Eastern District of Kentucky is responsible for enforcing a variety of federal statutes that prohibit discrimination, including the ADA. Members of the public with information relating to ADA compliance or other potential civil rights violations may submit a complaint through the Department’s civil rights portal at https://civilrights.justice.gov/ or by contacting the United States Attorney’s Office at (859) 233-2661.
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U.S. Attorney Makes Supervisory AppointmentsRead the Press Release
United States Attorney Vanessa Roberts Avery today announced several supervisory appointments within the U.S. Attorney’s Office.
“I am fortunate to lead an office with a long roster of extremely talented individuals who are committed to the cause of justice,” said U.S. Attorney Avery. “The high level of collaboration and teamwork that our attorneys and staff exemplify carries over to our partnerships with federal, state and local law enforcement, as well as other community leaders. I am confident that our office will continue to make Connecticut a safer place to live, and have a tremendous impact in our communities.”
Marc H. Silverman has been named Chief of the Criminal Division. Mr. Silverman joined the U.S. Attorney’s Office in 2010 and, since 2014, has served as Deputy Chief of the Office’s Appellate Division. Prior to joining the U.S. Attorney’s Office, Mr. Silverman was an Arthur Liman Public Interest Fellow at Advocates for Children of New York, Inc.; an associate at Morvillo Abramowitz Grand Iason & Anello PC; and a law clerk for Judge Kimba M. Wood of the U.S. District Court for the Southern District of New York and Judge Dennis Jacobs of the U.S. Court of Appeals for the Second Circuit. Mr. Silverman is a 2003 graduate of Yale University and a 2006 graduate of Yale Law School.
The Criminal Division, which is responsible for enforcing federal criminal laws, comprises four program-based units: Violent Crimes and Narcotics, Financial Fraud and Public Corruption, National Security and Cybercrime, and Major Crimes.
U.S. Attorney Avery has appointed Jocelyn Kaoutzanis as Chief of the Violent Crimes and Narcotics Unit (VCN), which includes Project Safe Neighborhoods (PSN) prosecutions, the Organized Crime and Drug Enforcement Task Force (OCDETF), and violent crime, gangs and narcotics investigations. Assistant U.S. Attorney John Pierpont, Jr., continues in his role as Deputy Chief of the unit and as PSN Coordinator, overseeing firearms prosecutions that seek to deter the illegal possession of guns and reduce gun and gang violence. Brian Leaming has been named as a Deputy Chief of the Unit, and will serve as OCDETF Coordinator, which targets major drug trafficking operations responsible for the distribution of large quantities of narcotics by major drug trafficking organizations.
The Financial Fraud and Public Corruption Unit is responsible for investigating matters involving securities and investor fraud, public corruption, bank fraud and embezzlement, mortgage fraud, tax fraud, health care fraud, bankruptcy fraud and Foreign Corrupt Practices Act violations. David Novick continues to serve as Chief of the unit, and Christopher Schmeisser remains as Deputy Chief.
Peter Jongbloed continues as Chief of National Security and Cybercrime Unit, which is responsible for prosecuting matters involving international and domestic terrorism, customs enforcement and identity theft, and sophisticated cybercrimes.
The Major Crimes Unit is responsible for prosecuting matters including civil rights and hate crimes, immigration, human trafficking and child exploitation, government program fraud, and environmental crimes. Nancy Gifford has been named Chief of the Unit and Neeraj Patel is the Deputy Chief.
Michelle McConaghy serves as Chief of the Civil Division, which handles a wide variety of cases in which the United States or its employees are plaintiffs or defendants. David Nelson serves as the Deputy Chief of the Civil Division.
The Civil Division’s Defensive Unit, which is headed by John Larson, defends claims filed against the U.S., including tort, medical malpractice, employment discrimination, immigration and foreclosures. The unit also defends claims brought against individual federal employees (Bivens claims).
The Civil Division’s Affirmative Civil Enforcement and Civil Rights Unit, which is headed by Richard Molot, pursues claims on behalf of the U.S. in cases involving health care fraud, defense contractor fraud, drug diversion, forfeitures and environmental violations. In addition, the unit maintains a Civil Rights enforcement program, which brings civil rights actions to enforce federal statutes prohibiting discrimination on the basis of race, color, sex, disability, religion, familial status and national origin and to recover damages for victims of civil rights violations.
The Civil Division also has a Financial Litigation Unit, headed by Christine Sciarrino, which is responsible for collecting debts owed to the United States.
The District of Connecticut’s Appellate Division will continue to be led by long-time Chief Sandra Glover. The Appellate Division supervises all appeals arising out of the Criminal and Civil Divisions. The Division assists with writing briefs and motions and preparing assistants for oral arguments before the U.S. Court of Appeals for the Second Circuit. The Division also coordinates the approval process for government appeals, provides guidance on legal issues arising in criminal and civil cases, advises the Office of developments in the law, and assists in the formulation of Office policies that address the enforcement of that law.
Assistant U.S. Attorney Hal Chen will serve in the newly-created role of Director of Community Engagement and will coordinate all of the Office’s community engagement efforts around the state.
Alfred Pavlis serves as the First Assistant U.S. Attorney and Susan Wines continues in her role as the Executive Assistant U.S. Attorney.
The District is composed of approximately 68 Assistant U.S. Attorneys and approximately 57 staff members at offices in New Haven, Hartford and Bridgeport.
Tyler County man sentenced for drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Shirl Norman Baker, III, of Paden City, West Virginia, was sentenced yesterday to 60 months of incarceration for a drug charge, United States Attorney William Ihlenfeld announced.
Baker, 42, pleaded guilty in May 2022 to today on one count of “Distribution of 5 Grams or More of Methamphetamine.” Baker admitted to selling methamphetamine in March 2020 in Wetzel County.
Assistant U.S. Attorney Clayton J. Reid prosecuted the case on behalf of the government. The Marshall County Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
Two Additional Defendants Plead Guilty in Nationwide Racketeering Conspiracy Targeting the ElderlyRead the Press Release
SAN DIEGO – Two more members of a nationwide “grandparent scam” network have pleaded guilty to conspiracy charges under the Racketeer Influenced and Corrupt Organizations Act known as RICO.
Lyda Harris of Laveen, Arizona, pleaded guilty in federal court today; Tracy Glinton of Orlando, Florida, pleaded guilty on June 9, 2022. They are the fifth and sixth of eight defendants to plead guilty; two remain fugitives.
According to court documents, the defendants were members and associates of a criminal enterprise that engaged in extortion and fraud to swindle more than $2 million from 70-plus elderly victims across the nation. At least 10 elderly victims who resided in San Diego County lost over $300,000 to the fraud. From approximately November 1, 2019, until October 14, 2020, the members of the criminal enterprise targeted elderly Americans, contacting them by phone and feeding them phony stories that their grandchildren were in legal trouble and needed money to pay for bail, pay medical expenses for car accident victims, or prevent additional charges from being filed. Members and associates obtained money from victims through in-person cash pick-ups, by mail or commercial carriers, or via wire transfers. Conspirators laundered the proceeds by transferring the funds or converting from fiat currency to cryptocurrency.
Defendant Lyda Harris was arrested in the Republic of Albania in August 2021 and extradited to the United States. According to Harris’s plea agreement, she received and funneled victim proceeds for a coconspirator to convert from fiat currency to cryptocurrency. As part of the guilty plea, Harris agreed to forfeit $6,243 in proceeds she personally received from the offense. Harris will also be subject to an order of restitution to the victims of the offense in the amount of at least $1,208,291.93.
According to defendant Tracy Glinton’s plea agreement, Glinton’s primary role was helping codefendant Tracy Knowles receive proceeds from coconspirators who obtained victim money. Glinton knew that the money she received for Knowles constituted proceeds of grandparent scams. In their phone messages, Glinton and Knowles discussed the “grandma scam.” As part of her guilty plea, Glinton agreed to forfeit $9,950 in proceeds she personally received from the offense and pay at least $471,600 to the victims in restitution.
“The defendants participated in a sophisticated conspiracy that exploited our nation’s most vulnerable citizens,” said U.S. Attorney Randy Grossman. “The elderly victims were financially and emotionally shattered by these heartless crimes. Fortunately, the coordinated efforts of our prosecution team and law enforcement partners held the defendants accountable and obtained justice for their victims.” Grossman commended the Assistant U.S. Attorney and law enforcement agents who diligently pursued this matter.
“Scammers continue to target our elderly population at an ever-increasing rate across the country. These defendants intentionally preyed upon and systematically stole from their victims without a second thought,” said FBI Special Agent in Charge Stacey Moy. “Today’s guilty pleas send a clear message that the FBI is committed to identifying, investigating, and bringing to justice those who are committing financial crimes. The FBI will continue to work with our partners on the San Diego’s Elder Justice Task Force to protect our elders.”
This case was investigated by the San Diego Elder Justice Task Force, which is a collaboration between the U.S. Attorney’s Office, the FBI, the District Attorney’s Office and all San Diego County law enforcement agencies. The Elder Justice Task Force, established in February 2021, is believed to be the first comprehensive law enforcement effort for this purpose anywhere in the country. The case was prosecuted by the U.S. Attorney’s Office and the Department of Justice’s Consumer Protection Branch.
DEFENDANTS Case Number 21cr2216-CAB
Tracy Adrine Knowles 30 Orlando, Florida
Fugitive
Adonis Alexis Butler Wong 30 Northbay Village, Florida
Fugitive
Timothy Ingram, AKA Bleezy 29 North Hollywood, California
In custody. Sentencing set for July 29, 2022.
Anajah Gifford 23 North Hollywood, California
In custody. Sentencing set for August 26, 2022.
Lyda Harris 74 Laveen, Arizona
Released on bond. Sentencing set for September 30, 2022.
Joaquin Lopez 46 Hollywood, Florida
Released on bond. Sentencing set for August 19, 2022
Jack Owuor 25 Paramount, California
Released on bond. Sentencing set for August 17, 2022.
Tracy Glinton 35 Orlando, Florida
Released on bond. Sentencing set for September 2, 2022.
SUMMARY OF CHARGES
Title 18, U.S.C., Sec. 1962(d) – Conspiracy to Conduct or Participate in an Enterprise
Through a Pattern of Racketeering Activity
Maximum penalty: Twenty years in prison and a fine of not more than the greater of twice the amount of gain or loss associated with the offense or $250,000
AGENCIES
Department of Justice’s Consumer Protection Branch
San Diego Elder Justice Task Force, which includes:
San Diego FBI
San Diego County District Attorney’s Office
San Diego Police Department
San Diego Sheriff’s Department
Carlsbad Police Department
Oceanside Police Department
Escondido Police Department
Chula Vista Police Department
El Cajon Police Department
La Mesa Police Department
National City Police Department
Coronado Police Department
Tucson Man Sentenced to 48 Months as Coordinator for Human Smuggling OrganizationRead the Press Release
TUCSON, Ariz. – Yesterday, Benjamin Gallegos, 24, of Tucson, Arizona was sentenced by United States District Judge Scott H. Rash to 48 months in prison, followed by three years of supervised release. Gallegos previously pleaded guilty to Conspiracy to Transport and Harbor Illegal Aliens for Profit for his role in organizing, managing, and supervising other co-conspirators within an organization that smuggled individuals from Mexico, Central America, and South America, into the District of Arizona. Gallegos was initially charged in 2018 for his illegal conduct, but he was a fugitive until his arrest in 2021.
This prosecution resulted from the coordinated efforts of Joint Task Force Alpha (JTFA). The U.S. Attorney’s Office for the District of Arizona is part of JTFA, which was established by Attorney General Merrick B. Garland in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security (DHS), to enhance U.S. enforcement efforts against the most prolific and dangerous human smuggling and trafficking groups operating in Mexico, Guatemala, El Salvador, and Honduras. The Task Force focuses on disrupting and dismantling smuggling and trafficking networks that abuse, exploit, or endanger migrants, pose national security threats, and are involved in organized crime. JTFA consists of federal prosecutors and attorneys from U.S. Attorneys’ Offices along the Southwest Border (District of Arizona, Southern District of California, Southern District of Texas, and Western District of Texas), from the Criminal Division and the Civil Rights Division, along with law enforcement agents and analysts from DHS’s Immigration and Customs Enforcement and Customs and Border Protection’s U.S. Border Patrol. The FBI and the Drug Enforcement Administration are also part of the Task Force.
Homeland Security Investigations – Nogales and the Customs and Border Protection’s U.S. Border Patrol conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR 21-01322-TUC-SHR(BGM)
RELEASE NUMBER: 2022-110_Gallegos# # #
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.
Traffickers admit to smuggling meth in fire extinguishers for cartelRead the Press Release
LAREDO, Texas – Two Texas men have pleaded guilty to conspiracy to possess with the intent to distribute 34.5 kilograms of liquid meth associated with the Cartel Del Noreste (CDN), announced U.S. Attorney Jennifer B. Lowery.
Bonifacio Turrubiates, 48, Laredo, pleaded guilty today, while Dionicio Sanchez, 46, Houston, admitted his guilt June 3.
On April 28, 2020, authorities conducted a seizure on their vehicle in the parking lot of an HEB grocery store located in Laredo. There, they discovered kilograms of liquid meth hidden inside multiple fire extinguishers. The investigation revealed the meth belonged to an organization affiliated with the CDN.
As part of their pleas, Turrubiates and Sanchez admitted to conspiring to hide the meth inside fire extinguishers and transport them outside of Texas by driving the drugs north of Laredo.
U.S. Judge Marina Garcia Marmolejo will impose sentencing at a later date for Turrubiates and Sanchez. At that time, each faces up to life in prison and a possible $10 million maximum fine.
Both men have been and will remain in custody pending that hearing.
The Drug Enforcement Administration conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) Operation Noreste with the assistance of Webb County Sheriff’s Office. 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, mutlti-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Assistant U.S. Attorney Francisco J. Rodriguez is prosecuting the case.
Three Plead Guilty to Straw Purchasing Multiple FirearmsRead the Press Release
BECKLEY, W.Va. – Three Beckley-area residents pleaded guilty today to federal charges involving multiple straw purchases of firearms.
Jaleel Delaney, 27, and Dejaha Morris, 23, pleaded guilty to making false statements in acquisition of firearms. Sequoyah Swain, 22, pleaded guilty to aiding and abetting another individual in making false statements in acquisition of firearms.
According to court documents and statements made in court:
- Delaney admitted to illegally straw purchasing a Glock, Model 19, 9mm pistol from a gun dealer in Beckley on May 4, 2021, to transfer to another individual who has been charged in a pending interstate gun trafficking conspiracy in the Southern District of West Virginia. Delaney further admitted to carrying out other straw purchases for this individual and others.
- Morris admitted that an individual who has been charged in a pending interstate gun trafficking conspiracy enlisted her to illegally straw purchase firearms in the Southern District of West Virginia and transfer them outside of West Virginia beginning in early 2000 and through at least mid-2021. Morris admitted that this individual directed her to buy a Taurus G3C, 9mm pistol in Beckley on October 17, 2020. Morris further admitted to carrying out at least eight straw purchases for this individual and others.
- Swain admitted to aiding and abetting an individual who has been charged in a pending interstate gun trafficking conspiracy in purchasing a Ruger Model Ruger 57, 5.7x28mm 5.7 caliber pistol in Beckley on April 18, 2021. Swain further admitted to recruiting other individuals to make similar straw purchases.
Delaney and Morris admitted to falsely certifying on the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Federal Firearms Transaction Records Form 4473 that they were the buyer of the firearms for their purchases when they knew they were buying the firearms for someone else.
“The law is clear: when you buy firearms for someone who cannot pass the required background check, you are committing a felony,” said United States Attorney Will Thompson. “The background check system cannot work when “straw” purchasers buy firearms only to provide them to individuals who cannot buy firearms legally themselves. Our office is determined to stop this method of illegally putting firearms in the wrong hands.”
Sentencings are scheduled on November 17, 2022, for Swain and Delaney, and on December 9, 2022, for Morris. Each faces a maximum penalty of five years in prison, three years of supervised release and a $250,000 fine.
Thompson commended the ATF’s investigative work in announcing the guilty pleas.
United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney Negar M. Kordestani is prosecuting the cases.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 5:22-cr-81, 5:22-cr-82, and 5:22-cr-83
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Three Men Federally Indicted for Insider Trading, Securities FraudRead the Press Release
MINNEAPOLIS – Three men have been indicted for their roles in an insider trading conspiracy involving a medical device company’s nonpublic business acquisition deal.
According to court documents, beginning in January 2018 through at least August 2020, Doron “Ron” Tavlin, 66, of Minneapolis, Afshin “Alex” Farahan, 55, of Los Angeles, and David Gantman, 56, of Mendota Heights, willfully engaged in an insider trading conspiracy. The conspiracy involved nonpublic information about the acquisition of Company B, an Israeli-based company that specialized in robotics for spinal procedures, by Company A, an Ireland-based medical device company that primarily operated from its executive headquarters in Minneapolis. Tavlin, a former vice president of Company B, learned material, nonpublic information about Company A’s potential acquisition of Company B. In violation of his duty to the company, Tavlin tipped this information about the acquisition to his friend, Farahan, who then tipped the information to Gantman. The defendants knew that Company A’s imminent acquisition of Company B would likely result in an increase in Company B’s stock price. Farahan and Gantman used the nonpublic information to purchase quickly substantial amounts of Company B securities throughout August and September 2018. On September 21, 2018, the day after Company B publicly announced its acquisition by Company A, Farahan and Gantman each sold all of their Company B securities for a total profit of more than $500,000.
According to court documents, in October 2018, Tavlin learned that the Financial Industry Regulatory Authority (FINRA) was investigating certain trades of Company B securities that occurred prior to the publicly announced acquisition. As part of its inquiry, FINRA asked insiders who knew about the secret acquisition negotiations, which included Tavlin, whether they knew any of the parties who traded in Company B securities leading up to the public announcement. In January 2019, Tavlin responded to FINRA’s inquiry by falsely denying that he recognized any names on a list of persons and entities that purchased Company B securities, which included Farahan and Gantman’s names.
According to court documents, it was part of the insider trading conspiracy that Tavlin and Farahan agreed that Farahan would pay money to Tavlin in exchange for the material, nonpublic information that Tavlin provided to Farahan. For example, in October 2019, Farahan gave Tavlin a $25,000 check in exchange for the information that Tavlin had provided about Company B leading up to the acquisition.
The defendants are charged with conspiracy to engage in insider trading, securities fraud in the form of insider trading, and aiding and abetting securities fraud. Tavlin and Gantman made their initial appearances yesterday in U.S. District Court before Magistrate Judge Tony N. Leung. Farahan will make his initial appearance at a later date.
This case is the result of an investigation conducted by the FBI.
Assistant U.S. Attorneys Matthew S. Ebert and Kimberly A. Svendsen are prosecuting the case.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Three Defendants sentenced for Roles in a $1.2 Million Check Kiting SchemeRead the Press Release
A trio of defendants who played various roles in defrauding First State Bank of Commerce, Oklahoma, have been sentenced in federal court, announced U.S. Attorney Clint Johnson.
The check kiting scheme was carried out by two cattle dealers, John Theodore Linthicum, 53, and Douglas Todd Mayfield, 53, and a bank employee, Angela Gayle Asbell, 61, from October 2016 to January 2017. The bank lost approximately $1.2 million as a result of the scheme.
According to court documents, in the fall of 2016, Linthicum, experienced dwindling cash flow in his cattle business, so he had Mayfield write NSF checks that Linthicum deposited into his bank account. Mayfield provided numerous insufficiently funded checks from his accounts at another bank. Many times he provided signed blank checks, and Linthicum filled in the amounts payable to himself. The checks generally ranged between $100,000 and $375,000. Both men knew that Mayfield did not have sufficient funds to cover the checks.
Asbell was a cashier and branch manager at First State Bank but also maintained books and records for Linthicum’s cattle business. In her position at the bank, Asbell knowingly and improperly authorized immediate credit for the bogus checks and fraudulently authorized Linthicum to wire funds and buy cashier’s checks with the fictitious credit balances in his account even though she knew the money was not there.
The defendants were charged separately and all pleaded guilty to conspiracy to commit bank fraud.
Linthicum was sentenced on Jan. 25, 2022, to 27 months in federal prison followed by five years of supervised release.
On June 29, 2022, Mayfield was sentenced to six months of home detention followed by three years of supervised release.
Finally, Asbell was sentenced on July 7, 2022, to five months in federal prison followed by five months of home detention and three years of supervised release.
The Federal Deposit Insurance Corporation (FDIC)-Office of Inspector General and Federal Housing Finance Agency-Office of Inspector General conducted the investigation. Assistant U.S. Attorneys Kevin C. Leitch, Vani Singhal and David D. Whipple prosecuted the case.
Theranos Chief Operating Officer Ramesh “Sunny” Balwani Found Guilty of Conspiracy, Wire FraudRead the Press Release
SAN JOSE - A federal jury found Ramesh “Sunny” Balwani guilty of two counts of conspiracy and ten counts of wire fraud though a multi-million-dollar scheme to defraud investors and patients in connection with the operations of Theranos, Inc., announced United States Attorney Stephanie M. Hinds; Federal Bureau of Investigation (FBI) Special Agent in Charge Sean Ragan; Food and Drug Administration (FDA) Assistant Commissioner for Criminal Investigations Catherine A Hermsen; and U.S. Postal Inspection Service (USPIS) San Francisco Division Acting Inspector-In-Charge Kevin Rho. The verdicts follow a trial that began March 9, 2022, before the Honorable Edward J. Davila, United States District Judge, and concluded just over 6 months after a jury found Elizabeth A. Holmes guilty of one count of conspiracy and three counts of wire fraud in related proceedings.
“Six months after the guilty verdicts in the Elizabeth Holmes trial, this jury has concluded that Holmes’s business partner, Ramesh Balwani, also bears responsibility for defrauding investors in Theranos,” said U.S. Attorney Hinds. "The jury concluded that Balwani also perpetrated fraud on unsuspecting patients. I want to thank the jury for dutifully navigating through the complex issues presented by this case. In this trial, it took four months for the parties to present their evidence and argument, all the while wading through the additional challenges presented by the Coronavirus pandemic. We are gratified by the jury’s hard work and attentiveness to the evidence presented. We appreciate the verdict and look forward to sentencing proceedings.”
“Once again, a jury has determined that the fraud at Theranos reached the level of a criminal conspiracy," said FBI Special Agent in Charge Sean Ragan. "The FBI has spent years investigating this investment fraud scheme with our partners at USPIS and the FDA Office of Criminal Investigations. Lies, deceit, and criminal actions cannot replace innovation and success.”
“Medical product fraud jeopardizes patient health,” said FDA Assistant Commissioner for Criminal Investigations Catherine A Hermsen. “This defendant joins his partner in being found guilty of fraud related to diagnostic tests. The FDA will vigilantly investigate and bring to justice individuals and companies responsible for putting the public health at risk.”
USPIS Acting Inspector-in-Charge Rho said “I want to thank the FBI, the FDA-Office of Criminal Investigations, and the U.S. Attorney’s Office for the Northern District of California for the extraordinary teamwork supporting this verdict. Postal Inspectors have been investigating snake oil and investment fraud schemes for more than a hundred years, and we remain committed to uncovering criminal frauds with these partners.”
Balwani, 57, of Atherton, was employed at Theranos from September of 2009 through July of 2016. The blood testing company based in Palo Alto and Newark, Calif., was founded by Holmes, 38, of Woodside, Calif., in 2003. While employed with Theranos, Balwani worked for the company in several capacities, including as a member of the company’s board of directors, as its president, and as its chief operating officer. At trial, the government submitted evidence that while at Theranos Balwani conspired to commit wire fraud against investors between 2010 and 2015, conspired to commit wire fraud between 2013 and 2016 against patients who paid for Theranos’ blood testing services, and that he committed wire fraud against investors and patients.
With respect to the conspiracy charges, the government submitted evidence regarding Balwani’s claims that Theranos developed a revolutionary and proprietary analyzer that the defendants referred to by various names, including as the TSPU, Edison, or minilab. Balwani and Holmes claimed the analyzer was able to perform a full range of clinical tests using small blood samples drawn from a finger stick. They also represented that the analyzer could produce results that were more accurate and reliable than those yielded by conventional methods—all at a faster speed than previously possible. At trial, the government demonstrated that Holmes and Balwani knew that many of their representations about the analyzer were false, but nevertheless conspired to convince potential investors and patients that the claims were true. For example, Holmes, Balwani, and others knew that the analyzer had accuracy and reliability problems, performed a limited number of tests, was slower than some competing devices, and, in some respects, could not compete with existing, more conventional machines.
Similarly, with respect to the substantive fraud charges, the evidence demonstrated Balwani used advertisements and solicitations to encourage and induce patients to use Theranos’s blood testing laboratory services, even though he knew Theranos was not capable of consistently producing accurate and reliable results for certain blood tests.
Evidence showed that Balwani represented to investors that Theranos would generate over $100 million in revenues and break even in 2014 and that Theranos expected to generate approximately $1 billion in revenues in 2015. In truth, Theranos resorted to using conventional machines bought from third parties to perform much of Theranos’s blood testing and Balwani knew Theranos would generate only negligible or modest revenues in 2014 and 2015. The trial evidence included numerous misrepresentations made by Balwani to potential investors about Theranos’s financial condition and its future prospects. In addition, the evidence showed that Balwani represented to investors that Theranos would dramatically increase the number of Wellness Centers within Walgreens stores even though Theranos’s retail Walgreens rollout had stalled because of several issues.
On July 28, 2020, a federal grand jury returned a superseding indictment charging Balwani with two counts of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349, and ten counts of wire fraud, in violation of 18 U.S.C. § 1343. Like Holmes, Balwani was charged with conspiring to commit wire fraud against investors in Theranos during the period 2010 to 2015, conspiring to commit wire fraud against patients who paid for Theranos’ blood testing services during the period 2013 to 2016, and ten counts of wire fraud in violation of Section 1343 of Title 18 of the United States Code. Six of the wire fraud counts involved fraud against investors in Theranos while the remaining four involved wire fraud against patients who paid for Theranos’ blood testing services and advertising purchased by Theranos to attract those patients. Pursuant to today’s verdicts, Balwani was found guilty on all counts.
Balwani remains free on bond pending further hearings. Judge Davila scheduled Balwani’s sentencing hearing for November 15, 2022. Balwani faces a maximum sentence of twenty (20) years in prison, and a fine of $250,000, plus restitution, for each count of conspiracy and each count of wire fraud. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
In a separate trial, a separate jury convicted Holmes on January 3, 2022, of the investor-related conspiracy count and three counts of wire fraud. That jury acquitted Holmes of the patient-related conspiracy wire fraud count and three additional wire fraud counts; in addition, one count of wire fraud relating to a Theranos patient was dismissed during Holmes’s trial. The jury could not reach a unanimous verdict in her trial with respect to three investor fraud-related counts. Judge Davila scheduled Holmes’s sentencing for September 26, 2022.
Assistant U.S. Attorneys Robert S. Leach, Jeff Schenk, John C. Bostic, and Kelly Volkar are prosecuting the case with the assistance of Lakisha Holliman, Madeline Wachs, Elise Etter, Susan Kreider, Leeya Kekona, Sara Slattery and Sutton Peirce. The prosecution is the result of an investigation by the FBI, USPIS, and FDA Office of Criminal Investigations.
Texas Man Sentenced in South Dakota for Drug ConspiracyRead the Press Release
United States Attorney Alison J. Ramsdell announced that a San Antonio, Texas, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on July 5, 2022, by U.S. District Judge Karen E. Schreier.
Isaias Lorenso Santos Escamilla, age 30, was sentenced to 10 years in federal prison, followed by five years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Santos Escamilla was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on November 9, 2021. He pled guilty on April 11, 2022.
Beginning on an unknown date, and continuing until on or about December 2021, Santos Escamilla reached an agreement to distribute five kilograms or more of cocaine in the District of South Dakota. During his involvement in the conspiracy, Santos Escamilla received cocaine from a co-conspirator and agreed to transport it to Sioux Falls, South Dakota. His co-conspirator gave him directions on where to deliver the cocaine and he expected to receive payment for delivering it. Law enforcement pulled their vehicle over and discovered approximately 28 kilograms of cocaine and a firearm in the vehicle.
This case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney Mark Hodges prosecuted the case.
Santos Escamilla was immediately remanded to the custody of the U.S. Marshals Service.
Suburban Chicago Man Sentenced to 12 Years in Federal Prison for Child Pornography and Sexual Conduct with a MinorRead the Press Release
CHICAGO — A suburban Chicago man has been sentenced to 12 years in federal prison on charges of child pornography and traveling to engage in sexual conduct with a minor.
JEREMIAH HARRIS, 22, of Naperville, Ill., pleaded guilty in February to one count of receipt of child pornography and one count of traveling with the intent to engage in illicit sexual conduct. U.S. District Judge Manish S. Shah imposed the prison term Wednesday and ordered that it be followed by eight years of court-supervised release.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The investigation was conducted by the FBI Chicago Child Exploitation and Human Trafficking Task Force, which includes the Cook County Sheriff’s Office, Cook County State’s Attorney’s Office, and Chicago Police Department. The Crystal Lake, Ill., Police Department and FBI Resident Agency in Waco, Texas, provided valuable assistance. The government was represented by Assistant U.S. Attorney Kelly L. Guzman.
The child pornography conviction involved sexually explicit photographs and videos that Harris repeatedly requested from a 17-year-old boy in 2020. Harris admitted in a plea agreement that the boy sent the photos and videos of himself to Harris in exchange for $2,000. Harris also admitted in the plea agreement that he requested and received other images of child pornography from two other minor boys, and he attempted to entice one of them to engage in sexual activity.
The travel charge pertains to Harris traveling in 2019 from Dallas, Texas, to Orlando, Fla., to engage in sexually explicit conduct with a 15-year-old boy. Harris admitted in the plea agreement that he directed the boy to meet him in a public bathroom, where Harris sexually assaulted him.
If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by logging on to https://www.missingkids.org/ or calling 1-800-843-5678. The service is available 24 hours a day, seven days a week.
State Prisoners Sentenced to Federal Prison for Unemployment Insurance FraudRead the Press Release
ALBANY, NEW YORK – Reginald Thornton, age 29, and Lord Paulin, age 41, were sentenced today to federal terms of imprisonment for defrauding pandemic-related unemployment insurance programs while they were serving state prison terms at the Bare Hill Correctional Facility in Malone, New York. Additionally, Rhasha Wright, age 30, of Roosevelt, New York, pled guilty today to conspiring with Thornton and Paulin as part of the fraud scheme.
The announcement was made by United States Attorney Carla B. Freedman; Jonathan Mellone, Special Agent in Charge, New York Region, U.S. Department of Labor, Office of Inspector General (USDOL-OIG); Matthew Scarpino, Acting Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); Ketty Larco-Ward, Inspector in Charge of the Boston Division of the United States Postal Inspection Service (USPIS); Anthony J. Annucci, Acting Commissioner of the New York State Department of Corrections and Community Supervision (NYSDOCCS); and Roberta Reardon, Commissioner of the New York State Department of Labor (NYSDOL).
Thornton and Paulin previously pled guilty to federal charges for their respective roles in the fraud scheme. Chief United States District Judge Glenn T. Suddaby sentenced Thornton to 51 months in federal prison and imposed a 2-year term of supervised release to the follow the term of incarceration. Chief Judge Suddaby sentenced Paulin to a 19-month prison term and imposed a 2-year term of supervised release. Thornton and Paulin will begin their federal prison terms after their respective New York State terms of incarceration end.
In her plea to conspiracy to commit mail fraud and aggravated identity theft charges, Wright admitted to submitting false unemployment insurance claims to NYSDOL in Paulin’s name and in the name of another Bare Hill prisoner. Prisoners were not eligible to receive unemployment insurance benefits.
Wright agreed to pay restitution in the amount of $11,696 to the State of New York.
Wright’s mail fraud conviction carries 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. The aggravated identity theft conviction carries a mandatory term of 2 years in prison, to be imposed consecutively to any other term of imprisonment. Wright is scheduled to be sentenced on November 3, 2022 by Chief Judge Suddaby. 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 was investigated by USDOL-OIG, HSI, USPIS, and the Offices of Special Investigations of NYSDOCCS and NYSDOL. The case is being prosecuted by Assistant U.S. Attorneys John T. Chisholm and Joshua R. Rosenthal.
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.
St. Francis Man Sentenced to 40 Years in Federal Prison for Second Degree Murder and AssaultRead the Press Release
United States Attorney Alison J. Ramsdell announced that a St. Francis, South Dakota, man convicted of Second Degree Murder and Assault With a Dangerous Weapon was sentenced on July 5, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Isaiah Clarence Young, age 23, was sentenced to a total of 40 years in federal prison. He was sentenced to 40 years in federal prison, followed by five years of supervised release for Second Degree Murder. He was sentenced to 10 years in federal prison, followed by three years of supervised release for Assault With a Dangerous Weapon. The sentences will be served concurrently. Young was also ordered to pay a special assessment to the Federal Crime Victims Fund in the amount of $200.
Young was indicted by a federal grand jury on February 8, 2021. He pled guilty on March 22, 2022.
In the early morning hours of January 24, 2021, Young broke into a St. Francis, South Dakota, residence with the intent to commit larceny. He entered a bedroom and turned on a light, awakening a man and a woman who were sleeping in the bedroom. Young grabbed a hammer and assaulted the victims, repeatedly striking them in the head and face. Young then picked up a knife and stabbed both victims repeatedly. The woman suffered fatal injuries. The man was hospitalized for his injuries but survived.
This case was investigated by the FBI and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Young was immediately remanded to the custody of the U.S. Marshals Service.
Smuggler sent to prison for transporting 26 in a locked near-freezing trailerRead the Press Release
CORPUS CHRISTI, Texas – A 39-year-old Brownsville man has been ordered to federal prison for smuggling individuals in a scheme that involved dangerous and life-threatening conditions, announced U.S. Attorney Jennifer B. Lowery.
Carlos Alberto Avila pleaded guilty Jan. 6, 2022.
Today, U.S. District Judge David S. Morales ordered Avila to serve 21 months in federal prison to be immediately followed by three years of supervised release.
At the hearing, the court heard additional evidence that the individuals were locked in the trailer for over three hours and were instructed to climb into the trailer and lay on top of ice. They likely would have been in there for four more hours. The court also learned they used a cell phone for light and crawled to the trailer door for warmth.
In handing down the sentence, the court noted Avila personally put a lock on the trailer, trapping the 26 individuals. Judge Morales noted they were stuck in near freezing and life threatening conditions.
On Oct. 26, 2021, Avila drove a 2019 Kenworth tractor-trailer into the Border Patrol (BP) checkpoint located near Falfurrias. Following a K-9 alert, the vehicle was referred to secondary inspection where authorities discovered 26 individuals in the locked trailer. Each were determined to be unlawfully present in the United States.
The undocumented aliens were located on top of ice and pallets of frozen broccoli. They reported they were afraid they would freeze to death due to being in the trailer for an extended period of time. The control temperature for the refrigeration unit was set at 33 degrees.
Avila will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Customs and Border Protection conducted the investigation. Assistant U.S. Attorney J. Parker Gochenour prosecuted the case.
Six People Charged with Fraudulently Obtaining Loans Meant to Help Small Businesses During COVID-19 PandemicRead the Press Release
NEWARK, N.J. – Six Essex County, New Jersey, residents were arrested today for scheming to fraudulently obtain Paycheck Protection Program (PPP) loans, U.S. Attorney Philip R. Sellinger announced.
Nyan Terry, aka “Racks,” 23, of Irvington; Samir Jefferson, aka “Tank Jeffe,” 23, of Newark; and Nasir Williams, aka “Harlem Pete,” 29, Hymeen Reynolds, aka “Meen,” 21, Brian Brown, aka “Bizz,” 40, and Cadece Lapread, 35, all of East Orange, are each charged by complaint with one count of bank fraud. Terry, Reynolds, Brown, Lapread, and Jefferson are also charged with one count each of bank fraud conspiracy. The defendants made their initial appearances today before U.S. Magistrate Judge Jessica S. Allen.
According to documents filed in this case and statements made in court:
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted in March 2020 and was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses, through the PPP.
To obtain a PPP loan, a qualifying small business was required to apply and provide information on its operations, including the number of employees and expenses. In addition, businesses generally had to provide supporting documentation.
In April and May 2021, Terry, Jefferson, Williams, Reynolds, Brown, and Lapread schemed to defraud PPP lenders by submitting fraudulent PPP loan applications in the names of nonexistent small businesses, along with forged tax forms. Based on the defendants’ misrepresentations, lenders approved at least three fraudulent PPP loans and disbursed more than $62,000 in federal COVID-19 emergency relief funds.
The counts of bank fraud and bank fraud conspiracy each carry a maximum penalty of 30 years in prison and a maximum fine of $1 million.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Jesse Levine in Newark; special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark; and special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins, with the investigation leading to the charges. He also thanked the Bloomfield Police Department, the Essex County Sheriff’s Office, the Essex County Prosecutor’s Office, and the Newark Department of Public Safety for their assistance in the investigation.
The government is represented by Special Assistant U.S. Attorney Timothy Shaughnessy and Assistant U.S. Attorney Sarah A. Sulkowski of the U.S. Attorney’s Organized Crime/Gangs Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Sioux Falls Man Sentenced for Escape from CustodyRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Sioux Falls, South Dakota, man convicted of Escape was sentenced on July 5, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Marlow Poor Thunder, age 27, was sentenced to 20 months in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Poor Thunder was indicted by a federal grand jury on May 10, 2022. He pled guilty on May 26, 2022.
The conviction stemmed from an incident that occurred on March 29, 2022, in Winner, when Poor Thunder failed to report to the Winner City Jail following a furlough to attend a medical appointment, as ordered by U.S. Magistrate Judge Mark A. Moreno. An arrest warrant was issued on March 31, 2022. On April 7, 2022, Poor Thunder was arrested in Sioux Falls.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Carl Thunem prosecuted the case.
Poor Thunder was immediately remanded to the custody of the U.S. Marshals Service.
San Diego Resident Pleads Guilty to Distributing Fentanyl that Resulted in 15-Year-Old’s DeathRead the Press Release
SAN DIEGO - Kaylar Junior Tawan Beltranlap of San Diego pleaded guilty today to distributing a counterfeit oxycodone pill laced with fentanyl that killed a 15-year-old Coronado High School sophomore, referred to in court records as C.J.S., on May 12, 2021.
During the change of plea hearing, Beltranlap admitted to utilizing his Instagram account to coordinating a drug transaction with C.J.S. Beltranlap warned C.J.S. to only take half the pill because it was “strong.” Law enforcement responded on May 13, 2021 after learning of C.J.S.’s fatal overdose. Beltranlap was arrested the next day carrying five pills, which also turned out to be counterfeit oxycodone pills laced with fentanyl. In the plea agreement, Beltranlap and the Government stipulated that the Sentencing Guidelines for distribution of a controlled substance resulting in death and/or serious bodily injury will apply.
“C.J.S.’s tragic death must not be in vain. We need to continue to educate our middle and high school age children about the dangers of counterfeit fentanyl pills,” said U.S. Attorney Randy Grossman. “Our office will continue to pursue these cases to ensure that those who peddle this poison to youth face the full measure of federal prosecution.”
“C.J.S. was child and a member of our community. We know this will not make the family whole but we appreciate the multi-agency collaboration that went into holding this offender accountable.” said Coronado Police Chief Chuck Kaye.
“Parents: I’m pleading with you to please talk to your child – no matter their age - about the dangers of taking a pill that didn’t come from a doctor or pharmacist. Although difficult, this conversation could save your child’s life.” said DEA Special Agent in Charge Shelly S. Howe.
Beltranlap is scheduled to be sentenced on September 30, 2022, at 9:00 a.m. before U.S. District Court Judge Cathy Ann Bencivengo.
This case is the result of ongoing efforts by the U.S. Attorney’s Office, Drug Enforcement Administration, Homeland Security Investigations, the Federal Bureau of Investigation, the San Diego Police Department, the California Department of Health Care Services and the San Diego County District Attorney’s Office to investigate and prosecute the distribution of dangerous illegal drugs—fentanyl in particular—that result in overdose deaths. The DEA created the DEA Overdose Response Team which investigates overdose deaths in San Diego County. Investigators from the Overdose Response Team, as well as the Coronado Police Department and NTF Team 3, contributed to the investigation into C.J.S.’s death.
DEFENDANT Case Number 21-CR-3442 CAB
Kaylar Junior Tawan Beltranlap Age: 21 San Diego, CASUMMARY OF CHARGES
Distribute of Fentanyl – Title 21, United States Code, Sections 841(a)
Maximum penalty: 20 years in prisonAGENCY
Drug Enforcement Administration
Homeland Security Investigations
Federal Bureau of Investigation
Coronado Police Department
San Diego Police Department
California Department of Health Care Services
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.Sacaton Man Sentenced to over 7 Years for Helping Dispose of BodyRead the Press Release
PHOENIX, Ariz. –Jordan Gene Hoover, 35, of Sacaton, Arizona, an enrolled member of the Gila River Indian Community, was sentenced on Wednesday by United States District Judge Susan M. Brnovich to 7.5 years in prison, followed by three years of supervised release.
According to court documents, on August 23, 2017, Gabriel Quinn Enos shot the victim in the face with a shotgun, killing him. After Enos shot the victim, Hoover helped dispose of the victim’s body by throwing the body over a bridge and hiding the victim’s body within the terrain below. Enos was previously sentenced to 15 years for Voluntary Manslaughter. Hoover pleaded guilty to Accessory After the Fact on February 11, 2021.
The FBI and Gila River Police Department conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-19-00834-01-PHX-SMB
RELEASE NUMBER: 2022-109_Hoover# # #
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.
Rosebud Man Sentenced for Assaulting a Federal OfficerRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Rosebud, South Dakota, man convicted of Assaulting, Resisting, and Impeding a Federal Officer was sentenced on July 5, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Todd Kal Wilcox, age 42, was sentenced to 25 months in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Wilcox was indicted by a federal grand jury on October 13, 2021. He pled guilty on April 14, 2022.
The conviction stemmed from an incident that occurred on July 15, 2021, in Todd County, South Dakota. On that date, a Rosebud Sioux Tribe Law Enforcement Services officer responded to a call for service to remove Wilcox from a residence for being under the influence and disorderly. The responding officer asked Wilcox to leave the residence, and the officer removed a vodka bottle from Wilcox’s person while escorting him outside. Wilcox thereafter became combative and threatened and assaulted the officer with a metal bar.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Abby Roesler prosecuted the case.
Wilcox was ordered to self-report to the custody of the U.S. Marshals Service no later than Friday, July 8, 2022, by 2:00 p.m.
Rapid City Man Sentenced to Federal Prison for Illegal Possession of a FirearmRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Rapid City, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on June 30, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Jackson Bissonette, age 31, was sentenced to 24 months in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Bissonette was indicted by a federal grand jury on August 20, 2020, and pleaded guilty on March 23, 2022. The conviction stems from Bissonette, a previously convicted felon who is prohibited from possessing firearms, illegally possessing a TriStar Arms, Hunter EX.12 gauge over-under double-barrel shotgun, which was found after Bissonette came into contact with law enforcement in January 2020 in Rapid City.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Black Hills Fugitive Task Force. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Bissonette was immediately remanded to the custody of the U.S. Marshals Service.
Rapid City Man Charged with Illegal Possession of Drugs and FirearmsRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Possession of a Firearm by a Prohibited Person, Conspiracy to Distribute a Controlled Substance, and Use of a Firearm During and in Relation to a Drug Trafficking Crime.
Harold Salway Jr., age 22, was indicted on June 23, 2022. He appeared before U.S. Magistrate Judge Veronica Duffy on June 29, 2022, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is a mandatory minimum of five years and up to life in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges stem from Salway, unlawfully using and conspiring to distribute a controlled substance, possessing two 9mm semi-automatic pistols and a .22-250 bolt-action rifle between January 2021 and June 2022 in Rapid City. The charges are merely an accusation and Salway is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.
Salway was detained pending trial. A trial date has not been set.
Pine Ridge Man Sentenced to 10 Years in Federal Prison for Meth Trafficking ConspiracyRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Pine Ridge, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on July 1, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Thomas Prado, age 57, was sentenced to 10 years in federal prison, followed by five years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Prado was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on February 19, 2021. He pleaded guilty to the indictment on March 25, 2022. Prado was responsible for bringing between 1.5 and 5 kilograms of methamphetamine to South Dakota during his involvement in the conspiracy. He obtained methamphetamine in California and shipped it to South Dakota via the U.S. Postal Service to post office boxes in Pine Ridge and Rushville, Nebraska. On several occasions he also transported methamphetamine himself from California. In South Dakota he dispersed the methamphetamine to others for use and distribution primarily in the Pine Ridge area.
This case was investigated by the Badlands Safe Trails Drug Enforcement Task Force, which is comprised of agents from the FBI, South Dakota Division of Criminal Investigation, Bureau of Indian Affairs Division of Drug Enforcement, Martin Police Department, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Prado was immediately remanded to the custody of the U.S. Marshals Service.
Phillip A. Talbert Confirmed as United States Attorney for the Eastern District of CaliforniaRead the Press Release
SACRAMENTO, Calif. —Phillip A. Talbert was sworn in today as the United States Attorney for the Eastern District of California. Mr. Talbert was nominated by President Joseph R. Biden on April 25, 2022, and confirmed by the United States Senate on June 23, 2022.
The Eastern District of California is the largest federal district geographically in California and home to over 8 million residents living in 34 counties. The U.S. Attorney’s Office has over 180 personnel with its headquarters in Sacramento and offices in Fresno and Bakersfield.
“I am deeply honored to have been selected to lead the U.S. Attorney’s Office where I have served as a career prosecutor the majority of my legal career. I am humbled to have the support and confidence of President Biden and my two home state Senators, Dianne Feinstein and Alex Padilla. I pledge to serve the Eastern District of California by seeking justice in all of our criminal and civil matters. I am honored to lead the committed public servants in this outstanding office. I look forward to working with them and our federal, state, and local law enforcement partners to keep our communities safe and to represent the United States with the highest quality legal representation,” said Mr. Talbert.
On March 1, 2021, Mr. Talbert assumed leadership of the office as Acting U.S. Attorney. Mr. Talbert has served as an Assistant U.S. Attorney in this district for 19 years, first in the Narcotics and Violent Crime Unit in Sacramento where he prosecuted drug trafficking cases, then as the Chief of Appeals and Training in which he supervised the office’s appellate practice and trained incoming Criminal Division Assistant U.S. Attorneys, and then as the First Assistant U.S. Attorney under U.S. Attorneys appointed in two different administrations. He led the office for almost two years as the Acting and Interim U.S. Attorney in 2016-2017. Mr. Talbert also taught professional responsibility for four years as an adjunct professor at the U.C. Davis School of Law.
Prior to joining the U.S. Attorney’s Office, Mr. Talbert worked as a Trial Attorney in the Criminal Division of the U.S. Department of Justice in Washington, D.C., where he prosecuted a variety of federal criminal cases after being hired in the Attorney General’s Honors Program; as an Associate at the law firm of Stoel Rives LLP in Seattle, Washington, in the firm’s Litigation Department and White Collar Defense Practice Group; and as an Assistant Counsel and Associate Counsel at the Office of Professional Responsibility of the U.S. Department of Justice where he investigated claims of prosecutorial misconduct and other allegations made against Department of Justice attorneys. He also served as a law clerk to the Honorable David R. Thompson (deceased), Circuit Judge, United States Court of Appeals for the Ninth Circuit.
Mr. Talbert received his Bachelor of Arts, magna cum laude in Economics, from Harvard University; his Master of Economics from the University of Sydney, Australia, which he attended on a Rotary Foundation Scholarship; and his Juris Doctor from the UCLA School of Law where he was the Chief Articles Editor for the UCLA Law Review.
Oronogo Man Pleads Guilty to Kidnapping Webb City WomanRead the Press Release
SPRINGFIELD, Mo. – A southwest Missouri man pleaded guilty in federal court today to kidnapping a Webb City, Mo., woman and threatening to kill her and her family unless she recanted her testimony in his state criminal case.
Jeffrey Marsh, 34, of Oronogo, Mo., pleaded guilty before U.S. Chief Magistrate Judge David P. Rush to one count of conspiracy to commit kidnapping, one count of kidnapping, one count of being a felon in possession of a firearm, and one count of stalking.
Co-defendant Zaqouri Traves Archer, 33, of Joplin, pleaded guilty on July 21, 2021, to his role in the kidnapping conspiracy and to one count of being a felon in possession of a firearm.
Marsh and Archer admitted they kidnapped a victim identified in court documents as “N.J.” and transported her across states lines from Kansas to Missouri.
N.J. was staying at a friend’s residence in Crawford County, Kan., because she was trying to hide from Marsh, her ex-boyfriend. Marsh was angry with her because she had reported him as a suspect when her Ruger handgun was stolen. Officers with the Oronogo Police Department had executed a search warrant on Marsh’s residence on Jan. 26, 2020. They located N.J.’s stolen firearm in Marsh’s bedroom, as well as other firearms, and stolen property. Marsh was charged with receiving stolen property and unlawful possession of a firearm in the Jasper County Circuit Court.
On Feb. 2, 2020, N.J. watched the Super Bowl at her friend’s residence and then walked out to her car to go to work. When she opened the front passenger door and placed her purse on the seat, Marsh grabbed her and told her to get into the vehicle. She began screaming and fell to the ground in an attempt to get her firearm out of her purse. She felt the barrel of a firearm placed against the back of her head, and Marsh told her to stop screaming or he would shoot her in the head. In the meantime, Archer – who, like Marsh, was dressed in all black – arrived. Archer had a Taser with him. N.J. was forced into the front passenger seat, with Marsh in the driver’s seat and Archer in the back passenger seat. Archer placed duct taped over N.J.’s eyes and face.
At one point as they were driving around and making several stops, Marsh shoved the barrel of his Kimber .45-caliber pistol in N.J.’s mouth and pulled the trigger. The gun made a click, but did not fire. After the click, Marsh chambered a round and shot it outside the vehicle towards a body of water. During the kidnapping, Marsh struck N.J. in her left jaw and told her she was going to recant her statements to the police.
Archer eventually left, and Marsh took N.J. to her apartment in Webb City in his vehicle. Marsh continued to threaten, abuse, and assault N.J. Marsh held N.J. at gunpoint in her apartment and she was unable to leave that night. Marsh told N.J. to recant her earlier statement or her, her kids, and her whole family would die. Marsh told N.J. that she needed to make his weapon charges go away or her kids would die. N.J. later told investigators that she felt in fear of the death of, or serious bodily injury to herself,
In the morning hours of Feb. 3, 2020, Marsh took N.J. back to her vehicle so she could go to the Oronogo Police Department to recant her statement. Once at the Oronogo Police Department, N.J. tried to recant her statement, but then disclosed her kidnapping. Later that day, the Jasper County Sheriff’s Department located N.J.’s firearm and Marsh’s firearm taped to the bottom of a dresser with duct tape.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Marsh has two prior felony convictions for burglary, three prior felony convictions theft, and prior felony convictions for tampering with a motor vehicle, resisting an arrest, and possession of a controlled substance.
Under federal statutes, Marsh is subject to a sentence of up to life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the FBI, the Jasper County, Mo., Sheriff’s Department, the Crawford County, Kan., Sheriff’s Office, and the Oronogo, Mo., Police Department.
Ohio County man sentenced for child pornography chargeRead the Press Release
WHEELING, WEST VIRGINIA – Zachary Musilli, of Wheeling, West Virginia, was sentenced yesterday to 5 years probation for a child pornography charge, United States Attorney William Ihlenfeld announced.
Musilli, 26, pleaded guilty in December 2021 to one count of “Possession of Child Pornography.” Musilli admitted to having child pornography with some depicting children under the age of 12 in March 2021 in Ohio County.
Assistant U.S. Attorney Danae DeMasi-Lemon prosecuted the case on behalf of the government. The FBI, the West Virginia Child Exploitation and Human Trafficking Task Force, and the Wheeling Police Department investigated.
U.S. District Judge John Preston Bailey presided.
Office Manager for Veterinary Hospital Sentenced to 1 Year for Kickback SchemeRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Joleen Minnich, 41, Chippewa Falls, Wisconsin, was sentenced yesterday by U.S. District Judge William Conley to 12 months and one day in prison for wire fraud and filing a false tax return. Minnich pleaded guilty to these charges on April 25, 2022,
The investigation revealed that between 2014 and 2017, Minnich used her position as office manager for County Veterinary Hospital in Bloomer, Wisconsin, to embezzle approximately $224,596 from the business’ bank account by creating 204 fraudulent checks to herself. The fraudulent checks fell into three categories. First, Minnich generated non-payroll checks to herself and failed to enter the checks into the accounting software program known as QuickBooks. Second, Minnich used QuickBooks to generate flexible spending checks to herself but failed to use the majority of the funds for out-of-pocket health care costs as required. Third, Minnich used QuickBooks to generate health insurance checks to herself but failed to use the majority of the funds for health insurance costs.
In addition, as the office manager, Minnich was responsible for remitting County Veterinary Hospital’s payroll taxes to the IRS. During her plea hearing, Minnich admitted that she failed to remit the payroll taxes because she used those funds to hide her embezzlement. To conceal her conduct, Minnich created false entries in QuickBooks showing she had remitted the payroll taxes. Minnich also admitted that she failed to report the embezzled funds on her personal 2017 tax return.
At the sentencing hearing, Judge Conley stated that the severity of Minnich’s conduct and the length of the fraud were aggravating factors. Judge Conley also noted that the owner of County Veterinary Hospital was a longtime family friend of Minnich and her decision to embezzle money from the business was a “special type of betrayal.” At the conclusion of the sentencing hearing, Judge Conley ordered Minnich to pay a total of $278,445 in restitution for her embezzlement scheme and tax crime.
The charges against Minnich were a result of an investigation conducted by IRS Criminal Investigation. The prosecution of the case has been handled by Assistant U.S. Attorney Aaron Wegner.
North Carolina Tax Preparer Sentenced to PrisonRead the Press Release
A North Carolina man was sentenced today to 15 months in prison for preparing false trust tax returns on behalf of his Washington, D.C.-based and other clients.
According to court documents and statements made in court, Thy Muhammad owned and operated Seventh Millennium International, a Rocky Mount, North Carolina, tax preparation business. In 2013 and 2014, Muhammad prepared fraudulent trust tax returns for clients, falsely reporting that the clients had paid taxes in the name of purported trusts. One such false return resulted in the IRS issuing a refund check of more than $500,000, of which Muhammad took nearly $78,000 as a preparation “fee.” During these two years, Muhammad claimed a total of more than $5 million in fraudulent refunds from the IRS that his clients were not entitled to receive.
In addition to the term of imprisonment, U.S. District Judge Randolph D. Moss of the District of Columbia ordered Muhammad to serve three years of supervised release and pay $669,000 in restitution.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorneys Jeffrey McLellan and George Meggali, and former Trial Attorney Abigail Burger Chingos, of the Tax Division prosecuted the case.
New Orleans Man Sentenced to 144 Months in Prison After Pleading Guilty to Distribution of Child Sexual Abuse MaterialRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that MICHAEL PAUL PERRILLOUX, age 43, a resident of New Orleans, Louisiana, was sentenced today to 144 months imprisonment by United States District Judge Carl J. Barbier after previously pleading guilty to Count Four of a four-count indictment charging him with distribution of child sexual abuse material (CSAM), including prepubescent children, in violation of 18 U.S.C. 2252(a)(2). As part of the sentence, Judge Barbier further ordered PERRILLOUX to serve five (5) years of supervised release after his term of imprisonment, pay restitution to the victims in an amount to be determined on or before a hearing set for October 13, 2022, comply with sex offender registration requirements, and pay a mandatory $100 special assessment fee. Judge Barbier also ordered the forfeiture of several electronic items belonging to PERRILLOUX.
According to court documents, in about November 2020, Special Agents with the Federal Bureau of Investigation (“FBI”) executed a search warrant at PERRILLOUX’s New Orleans-area residence after receiving a tip that PERRILLOUX had uploaded images and videos depicting the sexual exploitation of children to an online, cloud-based file storage account. Agents seized numerous electronic devices belonging to PERRILLOUX. A subsequent review of the devices revealed that between at least 2017 and 2020, PERRILLOUX uploaded images and videos depicting the sexual exploitation of children via a computer and the internet to one or more online, cloud-based file storage accounts under his control. PERRILLOUX obtained, uploaded, and catalogued thousands of digital files (i.e., images and videos) depicting the sexual exploitation of children. Additionally, PERRILLOUX sometimes received payments in exchange for distributing depictions of his collection of CSAM by transmitting electronically a link to one of more of his online file storage accounts. Specifically, on or about September 10, 2018, PERRILLOUX received approximately $200 from Person 1 in exchange for PERRILLOUX providing Person 1 a link to an online file storage account under PERRILLOUX’s control that contained images and videos depicting CSAM.
Further, a review of PERRILLOUX’s electronic devices revealed that PERRILLOUX engaged in sexually suggestive online conversations with individuals, including minors, while pretending to be either a female or a younger male. During the conversations, PERRILLOUX requested that the minors either engage in sexually explicit conduct or take and send him sexually explicit pictures and videos. PERRILLOUX saved the sexually explicit images one minor victim sent him with the victim’s consent.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg was in charge of the prosecution.
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Mount Oliver Felon Sentenced to 8 Years in Prison for Drug and Gun OffensesRead the Press Release
PITTSBURGH, PA -- A resident of Pittsburgh has been sentenced in federal court to eight years’ imprisonment, followed by a six-year term of supervised release on his convictions of violating federal narcotics and firearms laws, United States Attorney Cindy K. Chung announced today.
United States District Judge William S. Stickman imposed the sentence on Willie Miller, age 30, formerly of the Mount Oliver section.
According to information presented to the court, the Greater Pittsburgh Safe Streets Task Force, led by the Federal Bureau of Investigation, initiated an investigation primarily targeting the Darccide/Smash 44, or DS44, neighborhood gang, and drug-trafficking activity in and around the South Side area of Pittsburgh. As part of this large-scale narcotics and firearms investigation, from approximately February 2019 through June 2019, the United States received authorization to intercept communications on 9 telephones, including the defendant’s phone. Intercepted communications revealed that the defendant was supplied by co-defendant Martel Yates and that he distributed brick and bundle quantities to co-defendant Brian Salaj.
Additionally, on June 20, 2019, law enforcement executed a federal search warrant at the defendant’s residence. In a bedroom identified as the defendant’s, law enforcement recovered packaged heroin and fentanyl, 27 mobile phones, an ink stamper, an owe sheet, and $16,076.00. In a hidden floorboard of that same bedroom, law enforcement recovered a Colt .380 caliber firearm. The defendant is prohibited under federal law from possessing firearms and ammunition due to prior felony convictions.
Prior to imposing sentence, Judge Stickman stated, “Heroin has destroyed countless lives and snuffed out countless futures.”
Assistant United States Attorney Brendan J. McKenna and Carolyn J. Bloch prosecuted this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Montgomery County Felon Sentenced to Nearly a Decade in Prison for 2021 Armed Robbery of City Line Avenue PharmacyRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Patrick Harrison, 39, of Pottstown, PA, was sentenced to nine years in prison and five years of supervised release by United States District Court Judge Chad F. Kenney for a gunpoint robbery of a Rite-Aid pharmacy in Philadelphia that occurred on November 18, 2021.
On March 23, 2022, the defendant pleaded guilty to an Indictment charging him with Hobbs Act robbery; carrying, using, and brandishing a firearm during the commission of a violent crime; and possession of a firearm by a felon. In pleading guilty, Harrison acknowledged that he brandished a firearm and demanded money from store employees. The defendant then fled the store after stealing approximately $600. The defendant also admitted to illegally possessing a firearm, in this case a loaded Smith and Wesson 9mm pistol, which he was not permitted to do as a previously convicted felon.
“Mr. Harrison threatened the lives of employees in this pharmacy with a loaded weapon and stole $600, and for that crime he will now spend nearly a decade in prison,” said U.S. Attorney Romero. “Repeat offenders who commit reckless violent crimes like this defendant will soon face serious federal charges and years in prison.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as 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.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Robert E. Eckert.
Money Transfer Company Ping Pleads Guilty to Failure to Combat Money LaunderingRead the Press Release
A Texas company that transferred millions of dollars from the U.S. to Africa has admitted that it failed to adequately guard against money laundering, U.S. Attorney for the Northern District of Texas Chad E. Meacham announced today.
Ping Express U.S. LLC pleaded guilty Wednesday to failure to maintain an effective anti- money laundering program.
“Through our special agents and forensic accountants, we work endlessly to eradicate crimes involving money laundering and bulk cash smuggling,” said Christopher Miller, Acting Special Agent in Charge of Homeland Security Investigations Dallas. “Our investigative reach provides access to a wide range of financial networks allowing HSI to disrupt any criminal organization attempting to exploit global trade.”
According to court documents, the company – which was licensed to transmit money but was not licensed to conduct currency exchange – charged U.S. customers a fee to remit money to beneficiaries in Nigeria and other African nations.
By law, Ping was required to report any suspicious transactions to regulators. In plea papers, it admitted that it failed to file a single report over a three-year period, despite a significant amount of suspicious customer activity.
The company outlined its anti-money laundering policy in a memo to state regulators, claiming it would cap first-time customer transactions at $499, cap daily transactions at $3,000, and cap monthly transactions at $4,500. However, in plea papers, the company admitted it allowed more than 1,500 customers to violate these rules. In one instance, Ping allowed a customer to remit more than $80,000 in a single month – more than 17 times the purported limit.
Ping also admitted that it conducted money transmission business in states in which it was not licensed to do so, including Nevada, New Jersey, Utah, West Virginia, and Connecticut. The company claimed to have software that could detect and deter transmissions initiated in “unlicensed” states, but in reality, it admitted, the program didn’t function. In its summaries to state regulators, Ping chose to include a column labeled “IP Location,” but only recorded states in which Ping was properly licensed: Texas, Maryland, Georgia, Washington, and Washington, DC.
In less than three years, the company transmitted more than $167 million overseas, including $160 million transmitted to Nigeria. The company admitted it failed to seek sufficient details about the sources or purposes of the funds involved in the transactions, or the customers initiating the transmissions.
Three individuals – including two of Ping’s top customers – previously pleaded guilty to transmitting illegally-derived funds through Ping.
One, Collins Orogun, admitted last week that he accepted a fee in exchange for transferring money for “romance scam” fraudsters and other criminals. In one instance, an Indiana woman sent $15,00 to “Carson Jacks,” a purported oil roughneck in the Gulf of Mexico she fell in love with online, after he told her he’d contracted malaria. In another, a second Indiana woman sent $6,300 to “Thomas Ken,” a purported Irish ship captain she fell in love with online, to fix his ship.
In two years, Mr. Orogun received more than $1.3 million in cash, cashier’s checks, and wires into several U.S. bank accounts he controlled, and then quickly moved more than $1 million of the funds to Africa through Ping. He faces up to 20 years in federal prison and is set to be sentenced on Jan. 23, 2023.
Ping CEO Anslem Oshionebo and Ping COO Opeyemi Odeyale also pleaded guilty to failure to maintain an effective anti-money laundering program. Ping’s IT/ Business Development Manager, Aleoghena Okhumale, pleaded guilty to knowingly transmitting illegally-derived funds. The CEO and COO were recently each sentenced to 27 months in federal prison, while the IT/Business Development Manager received a prison sentence of 42 months.
The company itself now faces five years of probation and a fine of up to $500,000. Sentencing has been set for Dec. 19, 2022.
Homeland Security Investigation’s Dallas Field Office conducted the investigation, assisted by the Texas Department of Banking. Assistant U.S. Attorney John de la Garza is prosecuting the case.
Missoula area man sentenced to 10 years in prison for trafficking controlled substancesRead the Press Release
MISSOULA — A man who admitted to dealing controlled substances in the Missoula area for more than two years was sentenced today to 10 years in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said.
Jamie Scott Chandler, 48, of Alberton, pleaded guilty in February to conspiracy to distribute controlled substances.
U.S. District Judge Donald W. Molloy presided.
The government alleged in court documents that Chandler distributed methamphetamine and heroin in the Missoula area from about January 2019 through June 2021. Officers with the Missoula Police Department and Montana Probation and Parole arrested Chandler on June 29, 2021 in Missoula County on a state warrant. Officers searched Chandler’s backpack and recovered heroin, meth, packaging materials, and a large amount of U.S. currency. When interviewed, Chandler told law enforcement that he had obtained drugs and provided drugs to others and had purchased the drugs found in his backpack.
Assistant U.S. Attorney Tara J. Elliott prosecuted the case, which was investigated by the FBI’s Montana Regional Violent Crime Task Force.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Minneapolis Man Sentenced to 160 Months in Prison for Methamphetamine Trafficking on Mille Lacs ReservationRead the Press Release
MINNEAPOLIS – A Minneapolis man was sentenced to 160 months in prison followed by five years of supervised release for conspiracy to distribute methamphetamine announced U.S. Attorney Andrew M. Luger.
According to court documents, between June 2019 and October 2020, Xavier Jerome Buckhanan, 47, conspired with others to traffic methamphetamine and other drugs from Las Vegas to communities in and surrounding the Mille Lacs Indian Reservation. Through the course of the investigation, law enforcement identified multiple packages containing drugs that were sent via the U.S. Postal Service from Las Vegas to a recipient in Eden Valley, Minnesota. On October 19, 2020, law enforcement conducted a controlled delivery of three packages that contained multiple bundles of methamphetamine. Officers arrested Buckhanan when he arrived to retrieve the packages.
Buckhanan was sentenced yesterday in U.S. District Court before Senior Judge Michael J. Davis. On December 14, 2021, Buckhanan pleaded guilty to one count of conspiracy to distribute methamphetamine.
This case is the result of an investigation conducted by the Mille Lacs Tribal Police Department, Meeker County Sheriff’s Office, and the United States Postal Inspection Service.
Special Assistant U.S. Attorney Caleb J. Dogeagle and Assistant U.S. Attorney Deidre Y. Aanstad prosecuted the case.
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Mexican national admits to trafficking 11 kilograms of cocaine through borderRead the Press Release
LAREDO, Texas – A 31-year-old man residing in Nuevo Laredo, Mexico has pleaded guilty to conspiracy to possess with intent to distribute kilograms of cocaine, announced U.S. Attorney Jennifer B. Lowery.
Sergio Bustos-Cruz, Nuevo Laredo, Mexico, pleaded guilty to smuggling 11.62 kilograms of cocaine.
As part of his plea, Bustos-Cruz admitted he attempted to drive through the World Trade Bridge in Laredo on April 21.
Upon arrival, authorities referred him to secondary inspection where an X-ray scan of his tractor trailer revealed anomalies within the roof of the tractor cab. At inspection, law enforcement discovered several bundles containing 11.62 kilograms of cocaine.
U.S. District Judge Marina Garcia Marmolejo will impose sentencing Oct. 18. At that time, Bustos-Cruz faces up to life in prison and a possible $10 million maximum fine.
Bustos-Cruz will remain in custody pending that hearing.
Homeland Security Investigations conducted the investigation with the assistance of the Drug Enforcement Administration. Assistant U.S. Attorney Matthew Isaac is prosecuting the case.
Mexican National Pleads Guilty to Illegally Using a Social Security Number Belonging to Another PersonRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that JOSE GARCIA-NUNEZ, age 33, a citizen of Mexico, pleaded guilty on June 6, 2022 to illegally using a social security number belonging to another individual, in violation of Title 42, United States Code, Section 408(a)(7)(B). JOSE GARCIA-NUNEZ pleaded guilty before the Honorable Susie Morgan, U.S. District Judge, Eastern District of Louisiana, and sentencing is set for October 13, 2022.
According to documents filed in federal court, JOSE GARCIA-NUNEZ used the social security number of another individual to secure employment and orientation training with a local company.
The maximum penalty for the offense is five years imprisonment, followed by up to three years of supervised release, a fine of up to $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to the victim, and a mandatory special assessment fee of one hundred dollars.
U.S. Attorney Evans praised the work of the Department of Homeland Security in investigating this matter. Assistant United States Attorney Richard R. Pickens, II is in charge of the prosecution.
Mexican National Captured on Drug Smuggling Vessel Sentenced to More Than 20 Years After Providing False Information to Law Enforcement During CooperationRead the Press Release
Tampa, FL – Senior U.S. District Judge Virginia M. Hernandez Covington has sentenced Luis Alberto Bran-Lopez (43, Oaxaca, Mexico) to 21 years and 10 months in federal prison for conspiring to distribute and possess with the intent to distribute 5 kilograms or more of cocaine while onboard a vessel subject to the jurisdiction of the United States. Bran-Lopez had pleaded guilty on April 15, 2022.
According to court documents, on January 14, 2021, the U.S. Coast Guard (USCG) Cutter STEADFAST interdicted a go-fast vessel (GFV) carrying Bran-Lopez and his six co-conspirators in international waters about 212 nautical miles south of Huatulco, Mexico. The defendants were carrying approximately 760 kilograms of cocaine on the GFV. During the boarding of the GFV, Bran-Lopez told the USCG that he and his co-conspirators were fishing for sharks even though there was a lack of fishing equipment and neither ice nor bait on board.
According to testimony and court documents, investigators learned of a plan that one of the seven co-conspirators would plead guilty and then provide information to law enforcement exonerating the others. Bran-Lopez was that person, and he later told federal agents, while under a cooperation agreement, that he tricked his co-defendants into thinking they were going on a fishing trip when, in reality, the co-defendants were going on a smuggling trip that Bran-Lopez had to take because his family had been kidnapped. The court rejected this explanation and found that Bran-Lopez had obstructed the investigation by making materially false statements to law enforcement.
This case was investigated by the Panama Express Strike Force, an Organized Crime Drug Enforcement Task Force (OCDETF) comprised of agents and analysts from the United States Coast Guard Investigative Service, Drug Enforcement Administration, the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Naval Criminal Investigative Service, and U.S. Southern Command's Joint Interagency Task Force South. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The case was prosecuted by Assistant United States Attorney Dan Baeza.
Man Who Possessed Methamphetamine and Firearms Sentenced to Federal PrisonRead the Press Release
A man who possessed over fifteen grams of methamphetamine was sentenced July 6, 2022, to more than five years in federal prison. Kevin Kautman, age 37, from Dubuque, Iowa, received the prison term after a March 1, 2022 guilty plea to possession with intent to distribute a controlled substance.
In a plea agreement, Kautman admitted that in December 2020, he was living in Dubuque, Iowa. Law enforcement obtained and executed a search warrant for his residence. Inside Kautman’s bedroom, police located a .45 caliber pistol, a stolen shotgun, a wide variety of ammunition, over 15 grams of methamphetamine, counterfeit money, digital scales, marijuana, and other narcotic-related items. At sentencing, the evidence showed that Kautman had a lengthy criminal history with convictions for domestic abuse, assault, harassment, and violating a no contact order. Kautman also threatened his roommate with a firearm.
Kautman was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Kautman was sentenced to 66 months’ imprisonment and fined $100. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system. Kautman is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Liz Dupuich and investigated by the Dubuque Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 21-cr-1028.
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Man Sentenced to 20 Years in Prison for Attempting to Provide Material Support to ISISRead the Press Release
A Florida man was sentenced today to 20 years in federal prison, followed by 15 years of supervised release, for attempting to provide material support to the Islamic State of Iraq and al-Sham, also known as ISIS, a designated foreign terrorist organization.
Romeo Xavier Langhorne, 32, of St. Augustine, pleaded guilty in the Middle District of Florida to one count of attempting to provide material support to ISIS on May 13, 2021. According to court documents, Langhorne pledged his allegiance to ISIS at some point in 2014, knowing that ISIS was a designated foreign terrorist organization that engaged in acts of terrorism. Between 2018 and 2019, Langhorne reaffirmed his support of ISIS on various social media accounts, posted ISIS-produced videos to his YouTube account and participated in online ISIS chat rooms with like-minded individuals. In December 2018 and January 2019, Langhorne expressed in one of those chat rooms an interest in creating a video that would improve on existing videos demonstrating the making and use of a deadly explosive, triacetone triperoxide (TATP).
In February 2019, Langhorne began communicating with an undercover employee (UCE) of the FBI who was posing as someone working on behalf of ISIS. Langhorne told the UCE about his plans to create and disseminate an instructional video on making TATP and sought the UCE’s assistance in creating the video. Langhorne told the UCE that, in order to ensure that the video was not removed from the internet by service providers, it should include disclaimers advising that it was intended for educational purposes. However, Langhorne informed the UCE that his true purpose in making and distributing the video was to arm ISIS adherents and others with knowledge of how to make TATP and use it for terrorism-related purposes in support of ISIS.
During the summer of 2019, Langhorne sent multiple messages to the UCE for assistance with creating a Nasheed, which is a form of Islamic vocal music. Langhorne stated he wanted the Nasheed to include a particular recording of an ISIS member yelling “Allahu Akbar” while breaking out of prison, as well as a clip of children saying, “kill them all.” Langhorne explained that he wanted the Nasheed “to encourage justified retaliation” against the United States for its role in killing Muslims.
The FBI produced a video in accordance with Langhorne’s instructions, but – unbeknownst to Langhorne – it featured an inert chemical formula for TATP that would not produce an explosion. In November 2019, the UCE provided versions of the TATP video to Langhorne, and Langhorne distributed the video by uploading it to a video-sharing website.
Langhorne was arrested at his residence in Roanoke, Virginia, on Nov. 15, 2019. Langhorne admitted in a post-arrest interview that he had “probably at some point” pledged allegiance to both ISIS and Abu Bakr al-Baghdadi, who was the leader of ISIS from 2014 until his death on Oct. 26, 2019. Langhorne admitted that he communicated with the UCE and that he uploaded the TATP video to the internet.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney for the Middle District of Florida Roger B. Handberg, Acting Assistant Director Kevin Vorndran of the FBI’s Counterterrorism Division and Special Agent in Charge Sherri E. Onks of the FBI’s Jacksonville Field Office made the announcement.
The FBI, including partner agencies participating in the Northeast Florida Joint Terrorism Task Force, investigated the case with investigative support from U.S. Customs and Border Protection Office of Field Operations and Border Patrol and the St. Johns County Sheriff’s Office.
Assistant U.S. Attorney Laura Cofer Taylor for the Middle District of Florida and Trial Attorney D. Andrew Sigler of the National Security Division’s Counterterrorism Section prosecuted the case.
Man Sentenced to 20 Years in Prison for Attempting to Provide Material Support to ISISRead the Press Release
Jacksonville, FL – United States Attorney Roger Handberg announces today that a Florida man was sentenced today to 20 years in federal prison, followed by 15 years of supervised release, for attempting to provide material support to the Islamic State of Iraq and al-Sham, also known as ISIS, a designated foreign terrorist organization.
Romeo Xavier Langhorne, 32, of St. Augustine, pleaded guilty in the Middle District of Florida to one count of attempting to provide material support to ISIS on May 13, 2021. According to court documents, Langhorne pledged his allegiance to ISIS at some point in 2014, knowing that ISIS was a designated foreign terrorist organization that engaged in acts of terrorism. Between 2018 and 2019, Langhorne reaffirmed his support of ISIS on various social media accounts, posted ISIS-produced videos to his YouTube account and participated in online ISIS chat rooms with like-minded individuals. In December 2018 and January 2019, Langhorne expressed in one of those chat rooms an interest in creating a video that would improve on existing videos demonstrating the making and use of a deadly explosive, triacetone triperoxide (TATP).
In February 2019, Langhorne began communicating with an undercover employee (UCE) of the FBI who was posing as someone working on behalf of ISIS. Langhorne told the UCE about his plans to create and disseminate an instructional video on making TATP and sought the UCE’s assistance in creating the video. Langhorne told the UCE that, in order to ensure that the video was not removed from the internet by service providers, it should include disclaimers advising that it was intended for educational purposes. However, Langhorne informed the UCE that his true purpose in making and distributing the video was to arm ISIS adherents and others with knowledge of how to make TATP and use it for terrorism-related purposes in support of ISIS.
During the summer of 2019, Langhorne sent multiple messages to the UCE for assistance with creating a Nasheed, which is a form of Islamic vocal music. Langhorne stated he wanted the Nasheed to include a particular recording of an ISIS member yelling “Allahu Akbar” while breaking out of prison, as well as a clip of children saying, “kill them all.” Langhorne explained that he wanted the Nasheed “to encourage justified retaliation” against the United States for its role in killing Muslims.
The FBI produced a video in accordance with Langhorne’s instructions, but – unbeknownst to Langhorne – it featured an inert chemical formula for TATP that would not produce an explosion. In November 2019, the UCE provided versions of the TATP video to Langhorne, and Langhorne distributed the video by uploading it to a video-sharing website.
Langhorne was arrested at his residence in Roanoke, Virginia, on November 15, 2019. Langhorne admitted in a post-arrest interview that he had “probably at some point” pledged allegiance to both ISIS and Abu Bakr al-Baghdadi, who was the leader of ISIS from 2014 until his death on October 26, 2019. Langhorne admitted that he communicated with the UCE and that he uploaded the TATP video to the internet.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney for the Middle District of Florida Roger B. Handberg, Acting Assistant Director Kevin Vorndran of the FBI’s Counterterrorism Division, and FBI Jacksonville Special Agent in Charge Sherri E. Onks made the announcement.
“The willingness of this dangerous individual to go to great lengths to harm innocent Americans was always very real,” said FBI Jacksonville Special Agent in Charge Sherri E. Onks, “but through hard work and determination, the FBI Jacksonville Joint Terrorism Task Force successfully disrupted his plan early on, and averted a threat to the safety of our community. Moving forward, we remain as vigilant as ever in our efforts to protect the public from others who support terrorist organizations, and we encourage the public to help us by reporting suspicious activity to law enforcement.”
“Due to the outstanding cooperation and coordination by our law enforcement partners, great harm to our community was prevented,” stated U.S. Attorney Roger B. Handberg. “I applaud the diligence of those who worked expeditiously to disrupt this threat to our public’s safety.”
The FBI, including partner agencies participating in the Northeast Florida Joint Terrorism Task Force, investigated the case with investigative support from U.S. Customs and Border Protection, Border Patrol and the St. Johns County Sheriff’s Office.
Assistant U.S. Attorney Laura Cofer Taylor for the Middle District of Florida and Trial Attorney D. Andrew Sigler of the National Security Division’s Counterterrorism Section prosecuted the case.
Major black tar heroin conspiracy in Katy lands three men in prisonRead the Press Release
HOUSTON – Three men have been ordered to federal prison following their convictions of conspiracy to possess with intent to distribute heroin, announced U.S. Attorney Jennifer B. Lowery.
Esteban Lopez Hernandez, 41, illegally resided in Katy and pleaded guilty in June 2021 as did two others - Robert Gomez, 28, Missouri City, and Longino Jaimes-Solorzano, 23, also illegally residing in Katy.
Today, U.S. District Judge Lynn Hughes found Hernandez to be a leader in the conspiracy and ordered him to serve a 235-month term of imprisonment. At the hearing, the court heard additional evidence detailing that their drug trafficking organization specialized in distributing black heroin. In handing down the prison terms, Judge Hughes noted the extreme negative impact of the drug on the community after hearing that since the group was placed in custody there is almost no black tar heroin circulating in the Katy area.
Gomez and Jaimes-Solarzano were previously sentenced to 10 years in prison. Not U.S. citizens, Hernandez and Jaimes-Solarzano are expected to face removal proceeding following their terms of imprisonment.
All three men were involved in drug trafficking organization that specialized in black tar heroin for approximately two years. Hernandez was found to be the leader, while Gomez and Jaimes-Solarzano served as drug couriers.
The drug had a major impact on the Katy area in 2017. A rash of several young drug-related overdoses had links to specific dealers in the Katy area. Authorities were ultimately able to identify the source of supply for the dealers and uncover other details of the organization. The investigation revealed the organization deployed multiple stash houses and used several couriers.
All have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration, Harris County Precinct 5 Constable’s Office and Fort Bend Sheriff’s Office conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) operation dubbed Operation Shadow Theory with the assistance of IRS – Criminal Investigation, Homeland Security Investigations, Texas Department of Public Safety, Texas Office of Inspector General and the Katy and Houston Police Departments. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Louisville Methamphetamine Trafficker Sentenced to 7 Years in Federal Prison for Dealing Methamphetamine in New AlbanyRead the Press Release
INDIANAPOLIS – Anthony Shanklin, 47, of Louisville, Kentucky, was sentenced late yesterday to 7 years in federal prison after pleading guilty to one count of distribution of methamphetamine.
According to court documents, law enforcement officers began investigating Shanklin’s drug trafficking activities in 2021. Shanklin trafficked in numerous illegal drugs including methamphetamine, cocaine, heroin, ecstasy, marijuana, and THC edibles. Starting on May 3, 2021, and on three additional occasions, Shanklin brought methamphetamine from Louisville, Kentucky to sell at the Beechwood Public Housing area in New Albany, Indiana.
In total, law enforcement officers seized approximately 120 grams of methamphetamine during the four drug transactions.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, Herbert J. Stapleton, Special Agent in Charge, FBI Indianapolis, and New Albany Police Chief Todd Bailey made the announcement.
The Federal Bureau of Investigation and the New Albany Police Department investigated the case. The sentence was imposed by U.S. District Chief Judge Tonya Walton Pratt. As part of the sentence, Judge Pratt ordered that Shanklin be supervised by the U.S. Probation Office for 4 years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney William L. McCoskey who prosecuted this case.
Local man pleads guilty to trafficking over six kilograms of cocaineRead the Press Release
LAREDO, Texas – A 44-year-old man from Laredo has admitted to conspiring to possess with intent to distribute cocaine, announced U.S. Attorney Jennifer B. Lowery.
Erasmo Medina-Villanueva pleaded guilty to trafficking 6.8 kilograms of cocaine.
As part of his plea, Medina-Villanueva admitted to attempting to drive through the Lincoln Juarez Port of Entry in Laredo on April 7.
At that time, he told authorities he was visiting his mother in Mexico. However, an X-ray scan revealed anomalies near the center console of his vehicle. Upon further inspection, law enforcement discovered several bundles containing cocaine.
The drugs had an estimated street value of $170,000.
U.S. District Judge Marina Garcia Marmolejo will impose sentencing at a later date. At that time, Medina-Villanueva faces up to life in prison and a possible $10 million maximum fine.
Homeland Security Investigations conducted the investigation with the assistance of the Drug Enforcement Administration. Assistant U.S. Attorney Matthew Isaac is prosecuting the case.
Local man imprisoned after downloading nearly 700 pornographic imagesRead the Press Release
GALVESTON, Texas - A 40-year-old Alvin man has been sent to federal prison following his conviction of receipt of child pornography, announced U.S. Attorney Jennifer B. Lowery.
Timothy Alan Fortenberry pleaded guilty Jan. 19.
Today, U.S. District Judge Jeffrey V. Brown ordered him to serve 180 months in prison. The sentence will be immediately followed by a lifetime term of supervised release, during which time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. Fortenberry was a registered sex offender serving a term of supervised release for prior federal convictions for receipt and possession of child pornography. He will again have to register as a sex offender.
The investigation began in June 2021, when law enforcement discovered an individual utilizing a computer sharing files of child pornography on BitTorrent, a peer-to-peer file sharing system. Authorities downloaded a torrent file which contained 694 images from Fortenberry’s computer and found images of minor females engaged sexually explicit conduct.
On July 12, 2021, law enforcement executed a search warrant at the residence where Fortenberry was living. He admitted that while on supervised release, he purchased a tablet which was probation was not monitoring. He used it to download and view child pornography.
He further admitted that after doing so, he would factory reset the tablet in order to erase all of the child pornography.
Fortenberry will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Pearland Police Department and Homeland Security Investigations conducted the investigation.
Assistant U.S. Attorney Kimberly Ann Leo prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Local man admits to receiving and storing child pornography via social mediaRead the Press Release
LAREDO, Texas – A 22-year-old Laredo man has pleaded guilty to receipt and possession of child pornography, announced U.S. Attorney Jennifer B. Lowery.
Ricardo Reyna admitted to viewing and sharing child pornography between May 1, 2020 and May 6, 2022.
During the investigation, authorities found 51 video files and 16 images of child pornography on Reyna’s cellphones. Reyna admitted to viewing and sharing child pornography on Kik starting in 2020.
U.S. District Judge Marina Garcia Marmolejo will impose a sentencing Oct. 18. At that time, Reyna faces up to 20 years in prison and a possible $250,000 maximum fine.
Reyna has been and will remain in custody pending his hearing.
The FBI conducted the investigation with the assistance of Homeland Security Investigations and the Winnebago County Sheriff’s Office.
Assistant U.S. Attorney April Ayers-Perez is prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Lincoln Man Sentenced to More than Fifteen Years for Distribution of MethamphetamineRead the Press Release
Acting United States Attorney Steven Russell announced that Anthony Dwayne Jackson, 39, of Lincoln, Nebraska, was sentenced today in federal court in Lincoln. United States District Judge John M. Gerrard sentenced Jackson to 188 months in prison for distribution of 50 grams or more of actual methamphetamine and 50 grams or more of a mixture or substance containing methamphetamine with a prior serious drug felony conviction. After serving his sentence, Jackson will be placed on supervised release for 10 years. Jackson faced a fifteen-year mandatory minimum sentence because of a prior drug trafficking conviction. There is no parole in the federal system.
From January through March, 2021, an undercover Lincoln Police Officer made a series of controlled purchases of methamphetamine from Jackson in Lincoln in quantities ranging from an eighth of an ounce up to three ounces of methamphetamine. On April 8, 2021, officers arrested Jackson in Lincoln and searched his vehicle. Inside the vehicle was about an ounce of methamphetamine, a digital scale with suspected methamphetamine residue, and a number of baggies typically used in the packaging and sale of narcotics. The methamphetamine seized or obtained from Jackson that was tested for purity was at least 90% pure.
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force.