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Friday 20 May 2022
Carmel, Indiana Man Sentenced to 84 Months in PrisonRead the Press Release
HAMMOND- George McKown, age 71, of Carmel, Indiana was sentenced before United States District Court Judge Philip P. Simon on his conviction for Wire Fraud and Conspiracy to Commit Securities Fraud, announced United States Attorney Clifford D. Johnson.
McKown was sentenced to 84 months in prison and ordered to pay over $5,212,159.45 dollars in restitution to the victims of his securities fraud and wire fraud schemes.
According to documents filed in this case, between 2008 and 2013, McKown partnered with Richard Gearhart to operate Asset Preservation Specialists (APS) a company they claimed would make profitable market investments for its clients. McKown and Gearhart recruited over 40 individuals to invest their savings, pensions, death benefits, and IRAs with APS, ultimately collecting millions of dollars. McKown, representing himself as the President of APS, promised his investors there was no risk to their initial deposit, they would receive a return of 6% to 8% on their investments and, upon request, their initial investment would be returned within thirty days.
After receiving the investors’ money, McKown and Gearhart abandoned the plan to invest money in the market and began using their clients’ investments to fund their own personal business projects and projects of their associates. By 2013, McKown and Gearhart had squandered over $5,000,000 of their investors’ money.
The individuals, through APS, kept its investors in the dark about the losses by sending fraudulent financial statements and 1099s to investors which falsely showed they were making a consistent profit on their investments. Through APS, the pair further continued to recruit new investors to hide the losses and keep the scheme afloat. Many of the victims first learned that APS had lost their savings when Gearhart filed for bankruptcy in 2013.
Co-defendant, Richard Gearhart pled guilty to conspiracy to commit securities fraud in December of 2019. He was sentenced to five years imprisonment and ordered to pay over $5 million in restitution in July of 2021. McKown was convicted of his fraud offenses following a jury trial in October 2021.
The case was investigated by the United States Postal Inspection Service, the Federal Bureau of Investigation, and the Indiana Secretary of State Securities Division. This case was prosecuted by Assistant United States Attorney Thomas McGrath and former Assistant United States Attorney Toi Denise Houston.
Bristol Man Sentenced to 13 Years for Attempting to Engage in Sex with Minor, Distributing Child PornographyRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that ROBERT MARLIN SELLERS, 62, of Bristol, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 156 months of imprisonment, followed by 15 years of supervised release, for child exploitation offenses related to his attempt to engage in commercial sex with a minor.
According to court documents and statements made in court, in 2020, law enforcement received information that Sellers was sharing videos of child sex abuse on a website that is focused on incest. In November 2020, an undercover FBI employee began interacting with Sellers on the social media application Kik. In the chats, Sellers made statements that he had sexually abused children, and that he had trafficked a child to engage in commercial sex acts. He also said that he had recently traveled out of state to have sex with another 12-year-old girl. The undercover investigator told Sellers that he had a 12-year-old daughter (“Doe”). After Sellers introduced the idea that Doe could be trafficked for sex, and offered suggestions to the undercover investigator about how it could be accomplished, Sellers arranged to have sex with Doe in exchange for $200.
In January 2021, Sellers, using an encrypted instant messenger application, sent the undercover investigator a link to videos of child sex abuse that Sellers maintained on a file sharing website.
On February 4, 2021, Sellers was arrested at a hotel in Southington shortly after he provided the undercover investigator $200 to engage in sex with Doe.
Sellers has been detained since his arrest. On February 14, 2022, he pleaded guilty to one count of attempted coercion and enticement of a minor, and one count of distribution of child pornography.
U.S. Attorney Avery thanked the New Britain State’s Attorney’s Office for its cooperation in the investigation and prosecution of this case.
This matter was investigated by the FBI New Haven Child Exploitation Task Force and the Southington Police Department. The task force includes members from the Connecticut State Police and the Naugatuck, East Windsor, New London and Southington Police Departments. The case was prosecuted by Assistant U.S. Attorney Angel M. Krull through the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Bergen County Man Charged for Participating in Multimillion-Dollar Counterfeit Trafficking ConspiracyRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was arrested today on charges of participating in a multimillion-dollar conspiracy to traffic counterfeit computer networking devices, U.S. Attorney Philip R. Sellinger announced.
Musa Karaman, 35, of North Arlington, New Jersey, is charged by complaint with one count of conspiracy to commit mail and wire fraud. He appeared by videoconference today before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and was released on $300,000 unsecured bond.
According to documents filed in this case and statements made in court:
From at least September 2017 through May 2021, Karaman, Israfil “David” Demir and another an uncharged conspirator, formed and operated numerous entities in the business of selling computer networking equipment, particularly, networking devices manufactured by Cisco Systems Inc., a major U.S. technology conglomerate. Although Karaman and his conspirators advertised the Cisco products they offered for sale as new and genuine, the products were in fact counterfeit Cisco devices that the conspirators procured from various illicit suppliers based in China.
In May 2021, federal agents executed a search warrant at a Woodland Park, New Jersey warehouse used by Karaman and his conspirators as their business headquarters and discovered thousands of counterfeit Cisco devices, including 7,260 counterfeit Cisco transceivers with a total manufacturer’s suggested retail price of approximately $13.77 million. Cisco informed law enforcement officials that this is one of the largest volumes of counterfeit Cisco transceivers ever seized in the United States, and that the total value of the seized counterfeit Cisco transceivers was unprecedented. From September 2017 to May 2021, U.S. Customs and Border Protection seized approximately $3.8 million worth of counterfeit Cisco products contained in over 20 shipments sent by illicit China-based suppliers to various locations under the control of Karaman and his conspirators, including their warehouse and home addresses, often under bogus names.
Demir was charged by criminal complaint on May 26, 2021, in this matter.
The conspiracy to commit mail and wire fraud count carries a maximum potential penalty of 20 years in prison and a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), Newark Office, under the direction of Special Agent in Charge Jason J. Molina; officers from the Port of New York/Newark, U.S. Customs and Border Protection, Office of Field Operations New York Field Office, under the direction of Acting Port Director TenaVel T. Thomas, and the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Andrew M. Trombly of the Cybercrime Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Baltimore Business Owner Pleads Guilty to Conspiracy to Commit Wire Fraud in Relation to the Sale of Two Baltimore PropertiesRead the Press Release
Baltimore, Maryland – Philip Abramowitz, age 50, of Pikesville, Maryland, pleaded guilty yesterday to conspiracy to commit wire fraud. As part of his guilty plea, Abramowitz will be ordered to pay $373,684 in restitution.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Shawn A. Rice of the U.S. Department of Housing and Urban Development Office of Inspector General.
According to his guilty plea, from May 2016 to April 2017, Abramowitz and others conspired to defraud two financial institutions by fraudulently obtaining Federal Housing Administration (FHA) loans and property under false pretenses. Specifically, Abramowitz used his company 163 N. Potomac St., LLC., to facilitate the fraudulent sales of his Potomac Street, Baltimore, Maryland properties.
For example, in May 2016, Abramowitz sold one of his Potomac Street properties (Property 1) to a family member (Relative 1) and entered into an agreement with Relative 1 to purchase the property using an FHA-insured loan. The FHA is part of the U.S. Department of Housing and Urban Development (HUD) and provides mortgage insurance on loans made by FHA-approved lenders. To qualify for the FHA-insured loans, the buyer must use the residence as their primary residence, disclose any familial or business relationship between the seller and buyer, and disclose the source of the money the buyer intends to use for the down payment and closing costs.
As stated in his guilty plea, Relative 1 applied for and received a $294,566 FHA-insured loan with a mortgage company (Mortgage Company 1) by falsely representing Abramowitz’s bank account records as his own. Relative 1 and Abramowitz also concealed their familial relation from Mortgage Company 1 by submitting false company filings during the loan application process, having Abramowitz’s property manager (Property Manager 1) pose as the sole seller and manager of 163 N. Potomac St., LLC and arranging Property Manager 1 to sign the FHA-loan contact as the official seller of the property. Abramowitz’s ownership of 163 N, Potomac St., LLC. or involvement in the sale was never disclosed.
To meet the requirements of the loan procurement process, Abramowitz gave Relative 1 $10,500 to pay for the closing costs for Property 1 as Relative 1 did not have the financial means to make the purchase. Based on the fraudulent financial information presented during the loan application process, Mortgage Company 1 loaned Relative 1 $294,566 for the purchase of Property 1. The majority of the loan proceeds were subsequently deposited into Abramowitz’s bank account. Ultimately, Relative 1 never used Property 1 as a primary residence and rented the property to tenants for a year before ceasing mortgage payments and allowing the property to fall into foreclosure.
Further, Abramowitz arranged the sale of his second Potomac Street property (Property 2) in March 2017 to another family member (Relative 2) using an FHA-insured loan. To facilitate the sale of Property 2, Relative 2 applied for an FHA-insured loan with another mortgage company (Mortgage Company 2). Using the same manner to defraud Mortgage Company 1, Abramowitz concealed his familial relation to Relative 2, falsely listed his property manager as the sole seller and owner of Property 2 and submitted multiple fraudulent documents to Mortgage Company 2, including an LLC affidavit of title asserting that no other person or entity had ownership in Property 2.
In a similar manner as the sale of Property 1, Abramowitz violated FHA-loan requirements by providing Relative 2 $8,750 for the closing costs of the sale, misrepresented his own bank account information as Relative 2’s in the FHA-loan procurement process, and received the majority of the loan proceeds to his personal bank account. Relative 2 never used Property 2 as a primary residence or paid monthly mortgage payments to Mortgage Company 2 which caused the property to fall into foreclosure.
Abramowitz faces a maximum of 30 years in prison followed up by 5 years of supervised release for conspiracy to commit wire fraud. U.S. District Judge Richard D. Bennett has scheduled sentencing for August 9, 2022, at 2:30 p.m.
United States Attorney Erek L. Barron commended HUD-OIG for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Martin J. Clarke, who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Arizona woman pleads guilty to manslaughter in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Kayla Baker, 26, of Ganado, Arizona, and an enrolled member of the Navajo Nation, pleaded guilty on May 19 in federal court to involuntary manslaughter in Indian Country. Baker will remain in custody pending sentencing, which has not been scheduled
According to the plea agreement and other court records, on June 16, 2018, Baker was driving while intoxicated when she attempted to pass another vehicle. She steered into the path of on an oncoming vehicle, resulting in a crash that killed the other driver and severely injured the leg of a passenger. Tests following the crash showed Baker’s blood alcohol content was .12 and there was THC in her system. Law enforcement also found alcohol in Baker’s vehicle. The crash occurred in New Mexico on the Navajo Nation.
Baker faces up to eight years in prison.
The Bureau of Indian Affairs investigated this case with assistance from the Navajo Nation Police Department and New Mexico State Police. Assistant United States Attorney Nicholas J. Marshall is prosecuting the case.
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Albany Man Sentenced to 111 Months for Stealing Nude Photos of Numerous Victims and Possessing Child PornographyRead the Press Release
ALBANY, NEW YORK – Michael P. Fish, age 26, of Albany, was sentenced today to 111 months in prison for computer fraud and aggravated identity theft in connection with his hacking of online social media accounts and theft of nude images of dozens of female victims, as well as possession of child pornography.
The announcement was made by Assistant Attorney General Kenneth A. Polite, Jr.; United States Attorney Carla B. Freedman; Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and State University of New York-Plattsburgh Police Chief Patrick Rascoe.
As part of his May 19, 2020 guilty plea, Fish admitted that from about 2016 to 2019—while an undergraduate at SUNY-Plattsburgh and then as a law student—he accessed the school email accounts of dozens of female SUNY-Plattsburgh students and used information from those school email accounts to gain unauthorized access to the victims’ social media accounts. Fish stole, and traded online with others, private nude photographs and videos stored in the victims’ social media accounts. As a result of these crimes, the school had to allocate money and staff to identifying compromised accounts, reviewing computer and server access logs, resetting passwords, and notifying students and parents. Fish further admitted that on March 19, 2019, he possessed several videos of child pornography on his laptop computer.
United States District Judge Mae A. D’Agostino also imposed a 15-year term of supervised release, which will start after Fish is released from prison, and ordered Fish to pay $35,430 in restitution to SUNY-Plattsburgh.
A co-conspirator, Nicholas Faber, was sentenced to 36 months in prison on August 19, 2021, for computer hacking and aggravated identity theft offenses.
In January 2021, Fish was charged by criminal complaint with obstruction of justice for submitting six fraudulent character letters to the court in connection with sentencing in this proceeding. That case remains pending. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
This case was investigated by the FBI with substantial assistance from the SUNY-Plattsburgh Police Department. Deputy Chief Michael Stawasz from the Department of Justice Criminal Division’s Computer Crime and Intellectual Property Section, and Assistant U.S. Attorneys Joshua R. Rosenthal and Wayne A. Myers, prosecuted the case.
43 Arrested as Part of a Combined Law Enforcement Operation “River Run” in West TennesseeRead the Press Release
Memphis, TN - United States Attorney Joseph C. Murphy Jr., and United States Marshal Tyreece Miller today announced Operation "River Run," a joint federal, state, and local law enforcement initiative that resulted in the arrest of 43 violent fugitives in West Tennessee. These individuals were arrested on a variety of criminal charges, including possession of drugs, homicide, illegal possession of firearms by prohibited persons, violation of federal supervised release, state probation and parole violations, burglary, sex crimes and aggravated assault. This coordinated effort to reduce violence was led by the United States Marshals Service.
In February 2022, the Department of Justice announced that it will be working with each United States Attorney’s Office (USAO) to enhance collaborative violent crime reduction efforts by providing resources to support violent crime priorities at the local level. These initiatives will incorporate the pillars of community engagement, prevention, strategic enforcement, and accountability. These four core principles will be the framework that the USAOs will use to serve the local communities in partnership with our federal, state, local and tribal colleagues.
The United States Marshals (USMS) Task Forces nationwide work in collaboration with their federal, state, local and tribal partners to enforce the rule of law through impactful violent crime reduction strategies. Last year alone, USMS Task Forces apprehended approximately 6,000 violent fugitives wanted for homicide and removed approximately 6,900 firearms from the street.
Operation River Run commenced on April 1, 2022 and concluded on April 30, 2022. The coordinated and targeted areas included Dyer, Lake, Lauderdale, Obion, and Tipton Counties. 43 fugitives were arrested; 44 warrants cleared; seven firearms seized; 20 rounds of ammunition seized; $8,945 in cash; 0.751 kg of narcotics seized; and three gang members identified.
"Violent criminal acts wreak havoc in communities throughout our district. Recognizing this fact, reduction in violent crime is a priority for our office. We will work with federal, state, and local law enforcement agencies to apprehend and prosecute individuals who commit violent crimes. Our goal in this effort is safer communities and we believe that this goal is achievable," said United States Attorney Joseph C. Murphy Jr.
"Through Operation River Run, the U.S. Marshals Service and our partners made a concerted effort to address criminal activity in more rural areas of West Tennessee. Fugitives may believe they can hide away from law enforcement resources and support larger cities may offer, but they are mistaken. Offenders should be on notice that we stand ready to address violent crime wherever it may be." said United States Marshal Tyreece Miller.
The following agencies participated in Operation "River Run":
United States Marshals Service
United States Attorney’s Office
United States Probation Services
Atoka Police Department
Bells Police Department
Drug Enforcement Administration
Dyersburg Police Department
Halls Police Department
Henning Police Department
Hornbeak Police Department
Martin Police Department
Memphis Police Department
Jackson Police Department
Dyer County Sheriff’s Office
Fayette County Sheriff’s Office
Lake County Sheriff’s Office
Lauderdale County Sheriff’s Office
Obion County Sheriff’s Office
Shelby County Sheriff’s Office
Tipton County Sheriff’s Office
Weakley County Sheriff’s Office
Tennessee Department of Correction
Tennessee Highway Patrol (Jackson Office)
Tennessee Highway Patrol (Memphis Office)
Texas Department of Public Safety
Additional information about the United States Marshals Service can be found at http://www.usmarshals.gov.
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Thursday 19 May 2022
Wisconsin Man Charged with Producing Images of Child Sexual AbuseRead the Press Release
MINNEAPOLIS – A Superior, Wisconsin, man has been indicted for producing images depicting his sexual abuse of a minor, announced U.S. Attorney Andrew M. Luger.
According to court documents, in May 2008, George Francis Deppa, 48, coerced a 15-year-old minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct.
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 U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children in crimes involving child pornography, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Deppa is charged with three counts of production of child pornography. Deppa will make his initial appearance in U.S. District Court before a Magistrate Judge at a later date.
This case is the result of an investigation conducted by the FBI and the Duluth Police Department, with assistance from the St. Louis County Attorney’s Office and the Douglas County (Wisconsin) Attorney’s Office. Deppa faces additional state felony charges involving sexual assaults against minors in St. Louis County and Douglas County. Based on the evidence obtained in this investigation, authorities believe there may be additional victims of the alleged conduct. Anyone with information about this matter is encouraged to call the FBI Minneapolis Division at (218) 722-3341.
Assistant U.S. Attorney Lindsey E. Middlecamp is prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Wiretap of Cedar Rapids Heroin and Fentanyl Distributors Lands Vinton Man in Federal Prison for Nearly Four YearsRead the Press Release
A man who conspired to distribute heroin, fentanyl, and other synthetic opioids was sentenced today to more than three years in federal prison.
Ryan Rick Schlitter, age 39, from Vinton, Iowa, received the prison term after a January 14, 2022 guilty plea to one count of conspiracy to distribute heroin.
In a plea agreement, Schlitter admitted that he obtained distribution quantities of heroin through a group of heroin dealers based out of Cedar Rapids. During a federal wiretap investigation in 2021, investigators intercepted calls between one of the dealers and an associate of Schlitter’s. After the intercepted calls, Schlitter and his associate drove to meet with the dealer. The associate purchased over seven grams of a substance containing heroin, fentanyl, and the synthetic opioids acetyl fentanyl, para‑fluorofentanyl, and metonitazene. Officers stopped the vehicle and seized the drugs, which Schlitter admitted that he possessed and intended to distribute to others. Schlitter also admitted that, in June 2021, he sold $200 worth of a substance containing heroin, acetyl fentanyl, and fentanyl during an undercover operation in Cedar Rapids.
Schlitter was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Schlitter was sentenced to 46 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Schlitter is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; and the Iowa Division of Narcotics Enforcement and was prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21‑CR‑00032‑10‑CJW‑MAR.
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Westbrook Woman Pleads Guilty to Serving as “Money Mule” in FEMA Funds ScamRead the Press Release
PORTLAND, Maine: A Westbrook woman pleaded guilty in federal court today for serving as a “money mule” for someone she met online, U.S. Attorney Darcie N. McElwee announced. A money mule is someone who transfers or moves illegally acquired money on behalf of someone else.
According to court records, Cheryl White, 58, met an unknown person on the internet. At their request, White purchased prepaid debit cards at retail stores and provided the account numbers associated with those cards to him online. She was later contacted by the person and informed that the cards had been loaded with money. In October 2017, White withdrew the money from the cards and used them to purchase money orders which she deposited in her bank account. She withdrew the money days later and mailed most of the money to an address provided by the person she met online.
The money loaded onto the prepaid cards came from the Federal Emergency Management Agency (“FEMA”). FEMA issued the money based on false and fraudulent claims for disaster relief filed with the agency. Although White did not file the false claims, she admitted that she knew the money came from some type of crime. Two banks had previously closed her accounts due to similar conduct; one of those banks informed White that her deposits and withdrawals were part of a fraud scheme. White opened a third bank account and continued the same conduct.
White faces up to 20 years in prison and a $500,000 fine. She also faces up to three years of supervised release. White will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Department of Homeland Security, Office of Inspector General (DHS OIG) investigated the case, with assistance from the Federal Emergency Management Agency, Fraud Prevention and Investigations Branch; and the Westbrook Police Department.
“DHS OIG will continue to aggressively investigate criminal actors and networks associated with FEMA disaster relief programs. We all suffer when federal programs are undermined by fraud. This guilty plea should send a clear message that DHS OIG and our law enforcement partners are resolute in our efforts to ferret out these criminal fraud schemes” said Inspector General Joseph V. Cuffari, DHS OIG.
Money Mule Scams: Acting as a money mule is illegal and punishable even if you aren’t aware that you are committing a crime. If you are a money mule, you could be prosecuted and incarcerated as part of a criminal money laundering conspiracy. Some money mules know they are supporting criminal enterprises; others are unaware that they are helping criminals profit. Criminals often target students, those looking for work, or those on dating websites, but anyone can be approached to be a money mule. Learn more about money mule scams at https://www.fbi.gov/scams-and-safety/common-scams-and-crimes/money-mules.
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Waterloo Shooting Results in Federal SentenceRead the Press Release
A Waterloo man who exchanged gunfire with others in Waterloo, Iowa, on July 31, 2020, was sentenced today to more than eight years in federal prison.
Tony Terrell Campbell, age 37, from Waterloo, Iowa, received the prison term after an October 13, 2021 guilty plea to being a felon in possession of a firearm.
At the guilty plea, Campbell admitted he had a firearm on July 31, 2020, and exchanged gunfire with another individual. Campbell had previously been convicted of multiple felony offenses including three burglary offenses, a theft of lottery tickets, conspiracy to commit a forcible felony, and assault while participating in a felony.
Campbell was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Campbell was sentenced to 102 months’ imprisonment and must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Campbell 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 Patrick Reinert and was investigated by the Waterloo 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-2050.
Follow us on Twitter @USAO_NDIA.
Washington State man indicted for sex trafficking and production of child pornographyRead the Press Release
Seattle – A 32-year-old Washington State man was indicted this week for seven federal felonies concerning sex trafficking, production of child pornography, and illegal firearms possession, announced U.S. Attorney Nick Brown. Dominique Terrel Gonzales resided in both Seattle and Vancouver, Washington, during the period when he preyed on young women, forcing them into prostitution. Gonzales has been in federal custody since his arrest for illegal firearms possession in August 2020.
“Those who force vulnerable adults and minors into prostitution face significant sanctions under federal law,” said U.S. Attorney Nick Brown. “Our office is a leader nationally in prosecuting these human trafficking crimes. I commend the diligent work here in Washington, Oregon, and Idaho to hold Mr. Gonzales accountable for his conduct.”
The indictment follows a lengthy investigation by law enforcement in Idaho, Southwest Washington, and Seattle. Gonzales is charged with:
- Sex trafficking of a minor – punishable by a mandatory minimum ten years in prison and up to life in prison.
- Transportation of a juvenile to engage in prostitution – punishable by a mandatory minimum ten years in prison and up to life in prison.
- Production of child pornography – punishable by a mandatory minimum 15 years in prison and up to life in prison.
- Two counts of sex trafficking of an adult through force, fraud, and coercion – each punishable by a mandatory minimum 15 years in prison and up to life in prison.
- Transportation of an adult for the purpose of prostitution through coercion and enticement – punishable by up to ten years in prison.
- And unlawful possession of a firearm and ammunition – punishable by up to five years in prison.
According to the indictment, in August 2020, Gonzales trafficked a juvenile female causing her to engage in commercial sex acts. Gonzales transported the girl across state lines to Portland, Oregon, for her to engage in commercial sex acts.
The investigation revealed that between 2016 and 2019, Gonzalez forced adult women to work for him as prostitutes – using force, fraud, and coercion to make them do his bidding. The indictment charges the sex trafficking of two adult women, one of whom was lured from her home in Idaho and then forced to engage in prostitution.
When law enforcement arrested Gonzales in August 2020, they reviewed his electronic devices and found images of sex acts with a minor victim created in December 2016 – that conduct is charged in the production of child pornography count.
Finally, at the time of his arrest, Gonzales illegally possessed a Desert Eagle 9mm semi-automatic pistol and ammunition. He has three felony convictions that preclude him from possessing firearms. Two counts of second-degree assault (domestic violence) from August 2014 in King County Superior Court and one count of unlawful imprisonment – domestic violence, from the same incident.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by Homeland Security Investigations with assistance from the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), Olympia Police Department, Vancouver Police Department, Idaho State Police, Ada County (Idaho) Sheriff’s Office, U.S. Department of Agriculture-Office of Inspector General (USDA-OIG), and the Department of Homeland Security’s Center for Countering Human Trafficking.
The case is being prosecuted by Assistant United States Attorney Kate Crisham, with assistance from the U.S. Attorney’s Office for the District of Idaho. Ms. Crisham leads the Anti-Trafficking prosecutions in the Western District of Washington.
gonzales_indictment.pdfUnion Man Pleads Guilty to Soliciting a Minor in Connection with Sex TraffickingRead the Press Release
Jackson, Miss. – A Union man pleaded guilty today to sex trafficking of a minor, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation in Mississippi.
According to court documents, Hubert Lee Horton, 43, communicated with another individual by cell phone for the purpose of engaging in commercial sex with a minor. Horton asked for and received images of the minor and negotiated the price that he would pay for various sexual acts.
Horton pleaded guilty to a violation of Title 18, United States Code, Section 1591(a)(1) which criminalizes the trafficking of a minor child for purposes of engaging in sexual intercourse for money. He is scheduled to be sentenced on September 1, 2022 and faces a minimum penalty of 10 years in prison and a maximum of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Union Police Department, Mississippi Bureau of Investigations, and the FBI are investigating the case.
Assistant U.S. Attorney Charles W. Kirkham is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Union Financial Secretary Charged with Stealing Union FundsRead the Press Release
NEW ORLEANS, – BRIAN GERALD, age 50, a resident of Franklinton, Louisiana, was charged today in a one count indictment for embezzling assets of a local labor union in violation of Title 29, United States Code, Section 501(c), announced United States Attorney Duane A. Evans.
According to court records, GERALD held the position of Financial Secretary of United Steelworkers Local 13-189. According to the indictment, from on or about May 25, 2018 and continuing through on or about September 8, 2020, GERALD embezzled $112,594.18 from the union account.
If convicted, GERALD faces a up to five years imprisonment, a fine of up to $10,000, up to three years of supervised release following any term of imprisonment, and a $100 mandatory special assessment fee.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the U.S. Department of Labor in investigating this matter. Assistant U. S. Attorney Rachal Cassagne is in charge of the prosecution.
U.S. Attorney Vanessa R. Waldref Announces FBI Sweep Down on Gang Activity, Drug Trafficking, and Violent Crime in Yakima CountyRead the Press Release
Yakama, WA – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced that a federal Grand Jury has returned numerous indictments charging multiple individuals with various federal crimes arising in the Yakima area, including on the Yakama Nation Indian Reservation.
Over the past several years, the Federal Bureau of Investigation (FBI) has dedicated increased resources to addressing violent crime in Yakima County, including on the Yakama Nation. In the past six months, the FBI’s office in Yakima has brought on a number of additional special agents dedicated to investigating violent crime. In addition, the FBI is leading a joint task force, which includes Customs and Border Protection, Homeland Security Investigations, the Washington State Department of Corrections, and the Yakima County Sheriff’s Office. The purpose of the FBI Task Force is to disrupt gang activity, weapons trafficking, narcotics distribution, and to eradicate violent crime in Eastern Washington.
Seven of the indictments announced today charge the following individuals with multiple violations of federal law:
• Marcelo Anthony Benson, age 25, of Wapato, Washington, an enrolled member of the Yakama Nation. In State prison on unrelated charges. Currently charged with felon in possession of a firearm.
• Dennis William Chapman, age 62, of Toppenish, Washington. Arrested on May 17, 2022, and charged with two counts of distribution of 50 grams or more of methamphetamine.
• Joseph Wade Clark, age 45, of Yakima, Washington. In custody at the Yakima County jail on unrelated charges. Charged with two counts of distribution of 50 grams or more of methamphetamine.
• Nicholas Medelez, age 33, of Yakima, Washington. Arrested on May 17, 2022, and charged with three counts of distributing methamphetamine.
• Sergio Hernan Mendoza, age 47, of Sunnyside, Washington. Arrested on May 17, 2022, and charged with two counts of distributing 50 grams or more of methamphetamine.
• Tiare Aqua Leilani Miller, age 34, of Toppenish, Washington. Arrested on May 17, 2022, and charged with conspiracy to distribute methamphetamine.
• Raymond Holt, age 75, of Wapato, Washington. Arrested on May 18, 2022, and charged with abusive sexual contact of an enrolled member of the Yakama Nation.
Additional fugitives are currently being sought by the FBI Task Force. More information will be provided upon their arrest.
U.S. Attorney Waldref commended the FBI Task Force for its dedication to combating drug distribution and pursuing violent offenders in the Yakima area, including on the Yakama Nation. “The opioid epidemic devastating our region is closely linked with an increase in violent crime. The uptick in violence has hit Native American communities especially hard,” she explained. “Native Americans experience some of the highest rates of violence in our country. The FBI Task Force – which focuses its efforts to protect our community from drug trafficking, gang members, violent offenders, and felons who possess firearms – reflects the United States’ commitment to addressing the causes and symptoms of the increased violence in Native American communities and elsewhere.”
“These arrests demonstrate how critical it is for law enforcement to work together,” U.S. Attorney Waldref continued. “By combining the resources of federal, state, tribal and local law enforcement through focused investigation and prosecution, we are able to do more to make communities in Eastern Washington safe and strong. The indictments announced today send a clear message that our community will not tolerate drug trafficking and violence.”
“The public has been demanding a place to live and work where our citizens feel safe,” said Donald M. Voiret, Special Agent in Charge of the FBI Seattle Field Office. “The actions taken today by the FBI and our law enforcement partners demonstrate that we hear you, and we are working to provide our communities with the protection you deserve.”
Yakima County Sherriff Robert Udell stated, “The latest round of FBI Task Force arrests is a fantastic example of the FBI’s commitment to public safety in Yakima County. The FBI and the Yakima County Sherriff’s Office enjoy a strong partnership, which is committed to removing violent criminals from our communities. I believe the FBI Task Force, coupled with local partners, is a significant step towards ensuring our citizens’ safety.”
“With violent crime on the rise across the country, law enforcement must come together to combat the root causes of this violence more so than ever,” said Special Agent in Charge (SAC) Robert Hammer, who oversees HSI operations in the Pacific Northwest. “Today’s arrests demonstrate HSI’s commitment to our daily quest to keep the Pacific Northwest secure by pursuing those who blatantly disregard the health and safety of the community we live in.”
Lloyd Easterling, Chief Patrol Agent for U.S. Customs and Border Protection, Spokane Sector, emphasized his agency’s commitment to keeping the communities of Eastern Washington safe: “The U.S. Border Patrol remains committed to working together with our partners to identify, arrest and remove violent offenders from our communities.”
As noted above, the cases announced today are being investigated by a Joint FBI Task Force, which includes the Federal Bureau of Investigation, Customs and Border Protection, Homeland Security Investigations, the Washington State Department of Corrections, and the Yakima County Sheriff’s Office. The cases are being prosecuted by Matthew Stone, Michael Murphy, and Tom Hanlon, Assistant United States Attorneys for the Eastern District of Washington.
An indictment is merely an allegation. All Defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Parker announces summer camp ADA compliance initiativeRead the Press Release
COLUMBUS, Ohio – U.S. Attorney Kenneth L. Parker announced today a civil rights initiative aimed at ensuring that summer camps located within in the Southern District of Ohio are compliant with the Americans with Disabilities Act (ADA).
“As summer approaches and parents make arrangements to send their children to camps, we want to make sure that children with disabilities receive an equal opportunity to attend and experience summer camp,” U.S. Attorney Parker said. “Reasonable accommodations are a requirement under the law.”
The U.S. Attorney’s Office for the Southern District of Ohio has mailed the attached flyer to dozens of summer camps located in the southern half of the state.
Under the ADA, summer camps, both private and those run by municipalities, must make reasonable modifications to enable campers with disabilities to participate fully in all camp programs and activities.
Children with disabilities are generally entitled to attend any camp or activity, camps must evaluate each child on an individual basis, and camps must train their staff in the requirements of the ADA.
Camps are obligated to pay for the cost of any reasonable modifications necessary for children with disabilities to participate in camp activities, and parents should not be charged any additional fee beyond standard camp enrollment costs.
Additional information about the ADA can be found by visiting www.ada.gov, calling the Department of Justice ADA Information Line at 800-514-0301 (voice) or 800-514-0383 (TTY), or by emailing the U.S. Attorney’s Office at [email protected].
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U.S. Attorney Jan W. Sharp Announces RetirementRead the Press Release
After serving 40 years as a prosecutor in Nebraska, United States Attorney Jan W. Sharp announced today that he intends to retire at the end of May. Sharp, a native Nebraskan, attended the University of Nebraska College of Law graduating with distinction in 1982. That same year he began his career as a prosecutor serving as a Deputy Lancaster County Attorney in Lincoln. He spent six years in the office handling a variety of criminal cases ranging from white collar crimes to homicide. During his tenure he worked with the newly created Technical Investigations Unit of the Lincoln Police Department on white collar criminal investigations.
In 1988 Sharp joined the United States Attorney’s Office in Omaha where he handled a wide variety of criminal matters including terrorism, violent crime in Indian Country, white collar fraud, political corruption, drug trafficking and civil rights violations. In 2001 Sharp was named Criminal Chief for the United States Attorney’s Office, a position he held for 17 years. In 2018 he was appointed to the position of First Assistant United States Attorney under United States Attorney Joe Kelly. Following Kelly’s resignation in 2021, Sharp was appointed as Acting United States Attorney and later appointed by the United States District Court to serve as Interim United States Attorney, a position he has since held. The United States District Court will appoint Sharp’s successor to take over as Interim United States Attorney following the end of his service until such time as a presidentially appointed, Senate-confirmed U.S. Attorney is named.
Sharp said, “I have been blessed to have worked with so many talented and dedicated attorneys, support staff and law enforcement officers over my 40-year career. I was also fortunate to have practiced in front of Judges who were intelligent, collegial, and completely committed to the honorable performance of their duties. As I leave, I truly believe that during my tenure in the U.S. Attorney’s Office, I held the best job in the legal profession. Working with people dedicated to making our communities safer is a privilege and I leave with the utmost admiration for the professionals who continue to carry out the mission.”
Two New Jersey Men Plead Guilty in Pennsylvania in Scheme Involving Odometer Tampering and Title FraudRead the Press Release
Two New Jersey men have pleaded guilty in the U.S. District Court for the Eastern District of Pennsylvania for their roles in falsifying vehicle titles as part of a long-running odometer roll-back scheme.
According to court documents, Felix Granowski, 58, of Matawan, pleaded guilty Wednesday to one count of conspiracy to commit securities fraud. Granowski owned a used car dealership based in New Jersey. Today, Alec Morgunov, 34, of Manalapan, also pleaded guilty to one count of conspiracy to commit securities fraud in connection with his work at Granowski’s dealership.
As part of their plea agreements, Granowski and Morgunov admitted that between 2012 and 2016, they engaged in a scheme to sell high-mileage, used vehicles with false, low-mileage readings entered on the vehicles’ odometers and titles. According to court filings, the defendants purchased high-mileage vehicles from individuals, arranged to alter the vehicles’ odometers to reflect false, lower mileage readings, and then obtained motor vehicle titles reflecting those false, lower mileages. Granowski and Morgunov then used the fraudulent title documentation and artificially lower odometer readings to sell the vehicles, including at an auction located in the Eastern District of Pennsylvania. By deceiving purchasers into believing the vehicles had fewer miles than they actually had, defendants sold the vehicles at inflated prices, resulting in consumers paying more for the vehicles than they would have paid had they known the true mileages.
“When individuals misrepresent the mileage on used cars, they deceive consumers into paying more money for those cars while also hiding vital information that can impact vehicle safety and repair costs,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We are committed to protecting consumers by prosecuting individuals who engage in this type of fraud.”
“We’re proud of our collaboration with the Department of Justice to investigate odometer fraud,” said Deputy Administrator Dr. Steven Cliff of the National Highway Traffic Safety Administration (NHTSA). “Our top priority is keeping people safe on the road. Anyone who thinks they’ve been a victim of odometer fraud, needs to contact their state enforcement office. They can also visit our website, NHTSA.gov, for helpful information on how to detect a vehicle that may have had its odometer rolled back.”
In pleading guilty, Granowski and Morgunov admitted that they were part of a scheme that caused at least 118 cars to be sold with rolled-back odometers and falsified titles, resulting in consumer losses of at least $674,606.
The defendants are scheduled to be sentenced on Aug. 31 and Sept. 1, respectively. Granowski and Morgunov each face a maximum sentence of five years in prison on the conspiracy to commit securities fraud charges. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The NHTSA Office of Odometer Fraud Investigation investigated the case.
Trial Attorneys Natalie N. Sanders and Ryan E. Norman of the Justice Department’s Consumer Protection Branch and Assistant U.S. Attorney Nancy Rue of the U.S. Attorney’s Office for the Eastern District of Pennsylvania are prosecutors for the case.
NHTSA estimates that odometer fraud in the United States results in consumer losses of more than $1 billion annually. Individuals with information relating to odometer tampering should call NHTSA’s odometer fraud hotline at (800) 424-9393 or (202) 366-4761. More information on odometer fraud is available on the NHTSA website at https://www.nhtsa.gov/equipment/odometer-fraud and tips on detecting and avoiding odometer fraud are available at http://www.nhtsa.gov/staticfiles/nvs/pdf/811284.pdf.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Eastern District of Pennsylvania, visit https://www.justice.gov/usao-edpa.
Two Miami Dade Police Sergeants Receive United States Attorney General’s AwardRead the Press Release
Miami, Florida – Today, during a ceremony at Miami-Dade Police Department (MDPD) headquarters in Doral, Florida, MDPD Sergeants Kurt Berardino and Christopher Perez were presented with the Fifth Annual United States Attorney General’s Award for Distinguished Service in Community Policing.
The Attorney General’s Award recognizes individual state, local, Tribal, and territorial police officers, deputies, and troopers for exceptional efforts in community policing.
The Department of Justice announced the award recipients in March, which included 18 law enforcement officers and deputies from 12 jurisdictions across the country.
During today’s ceremony, First Assistant United States Attorney for the Southern District of Florida Michelle Alvarez presented Sergeants Berardino and Perez with their awards, which included a letter to each officer from United States Attorney General Merrick B. Garland. Miami Dade Police Department Interim Director George A. Perez attended the ceremony and publicly recognized the Sergeants for their exceptional work.
Sergeants Berardino and Perez were honored for their tenacious criminal investigation of a July 2020 shooting in Miami that left one child dead and another child and two adults injured. A ShotSpotter alert showed that 21 shots had been fired on a Miami street. The investigation revealed that the victims were returning home from shopping and were fired on as they were getting out of their car. Detectives Kurt Berardino and Christopher Perez (now both sergeants) immersed themselves in the subsequent investigation, poring over multiple Crime Stoppers tips, reviewing hours of surveillance footage, and questioning potential witnesses. As Berardino and Perez developed the case, they established a rapport with two of the survivors, and those survivors provided a positive identification of the subjects involved in the shooting. This positive identification was key in furthering other leads that were gathered. Evidence collected was crucial in solidifying victim statements and the timeline of the events. Arrest warrants were eventually issued, and in September 2020, the detectives traveled to Georgia, where one suspect was taken into custody and later confessed; a second suspect was also arrested. It was the tenacity, persistence, and determination of Detectives Berardino and Perez that closed this case and brought justice to the families of the victims and to the community.
The Department of Justice works closely with national law enforcement stakeholder groups during the award review period, taking advantage of their expertise and experience to determine the recipients in a competitive nomination process. The Department also works closely with its components, utilizing the breadth of knowledge within the Department to ensure a successful program that honors the exceptional service of our nation’s law enforcement officers and deputies. This year, the Department received 185 nominations from 145 agencies, recognizing a total of 347 individual officers, deputies, and troopers. There were 39 states represented in the nomination pool, covering state, local, campus, sheriff, and other agency types.
Complete information on the Fifth Annual Attorney General’s Award for Distinguished Service in Community Policing can be found at https://www.justice.gov/ag/policing-award.
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Three convicted for $500,000 Mexican cartel weapon schemeRead the Press Release
LAREDO, Texas – Three individuals have admitted to their roles in a conspiracy for Cartel del Noreste (CDN), announced U.S. Attorney Jennifer B. Lowery.
Luis Ramos, 44, Rio Bravo, pleaded guilty today to conspiracy to commit international money laundering. Co-conspirators Manuel Perez-Ortiz, 40, Mexico, and Arturo Mata Jr., 55, also of Rio Bravo, pleaded guilty for their roles in the same conspiracy April 28.
In May 2020, members of CDN began negotiations to purchase $500,000 worth of high-powered weapons including machine guns, grenades, military-style rifles and rocket-propelled launchers. The weapons were intended to be purchased in the United States and then smuggled into Mexico. CDN planned to use them in fights against rival cartels to further their drug smuggling activities. Cartel members sent Perez-Ortiz to conduct the weapon exchange in Laredo.
On June 19, 2020, Ramos and Perez-Ortiz met with whom they thought were U.S.-based weapon facilitators at an H-E-B parking lot. There, they showed the money they had to purchase the weapons. Authorities stopped Ramos and Perez-Ortiz after they departed the parking lot. Law enforcement discovered a cardboard box inside the vehicle containing $500,000 in cash and a firearm in Perez-Ortiz’s possession.
Ramos and Mata assisted in driving Perez-Ortiz to and from the meetings to discuss the sale of weapons. Mata also provided surveillance.
As part of their pleas, Ramos and Perez-Ortiz admitted they concocted a story to tell authorities that the money came from the sale of a ranch in Mexico and they were planning to buy land in Laredo to build a home. Perez-Ortiz later admitted he had illegally crossed into the country the day before with $500,000 by wading the Rio Grande river.
All three co-conspirators are scheduled for sentencing before U.S. District Judge Diana Saldana in the near future. They each face up to 20 years in prison, a possible $1 million maximum fine and forfeiture of $500,000. They have been and will remain in custody pending that hearing.
This case was part of the Blue Indigo Task Force and brought as part of the Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed Operation Noreste. The Drug Enforcement Administration and Laredo Police Department conducted the investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Customs and Border Protection and U.S. Marshals Service. Assistant U.S. Attorney Jennifer Day is prosecuting this case.
OCDETF is the largest anti-crime task force in the country. Its mission is to identify, disrupt, and dismantle the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Three Defendants Plead Guilty to Fraud and Money Laundering Conspiracies Targeting Federally Funded Meal Programs for Underprivileged YouthRead the Press Release
PITTSBURGH, PA – Two residents of Texas and a resident of Tennessee pleaded guilty in federal court this week for their roles in defrauding federally funded meal programs, United States Attorney Cindy K. Chung announced today.
Charles Simpson, 44, and Paige Jackson, 30, both of Dallas, Texas, as well as Tanisha Jackson, 49, of Memphis, Tennessee, pleaded guilty to conspiracy to commit mail and wire fraud before United States District Judge Arthur J. Schwab. Simpson and Tanisha Jackson also pleaded guilty to conspiracy to commit money laundering.
During Simpson’s, Tanisha Jackson’s, and Paige Jackson’s plea hearings on May 18 and 19, 2022, the defendants admitted, among other things, that they controlled and operated HOIN, Inc. (HOIN), a Texas-based non-profit organization. The defendants caused HOIN (a/k/a“Helping Others In Need) to enroll as a “sponsor” in two programs funded by the United States Department of Agriculture (USDA) for the purpose of providing meals to underprivileged youth—the Child and Adult Care Feeding Program (CACFP) and the Summer Food Service Program (SFSP) (collectively, the feeding programs). CACFP funded after-school meal service during the school year, while SFSP operated in the summer months. In Pennsylvania, the Pennsylvania Department of Education (PADOE) administered the USDA-funded feeding programs. Each defendant further admitted having previously been excluded from participating in the feeding programs in other states.
As part of the conspiracy, Simpson and Tanisha Jackson caused the submission of false enrollment documentation to PADOE on behalf of HOIN in connection with its participation in CACFP and SFSP between 2015 and 2019. Among other misrepresentations, HOIN’s applications to PADOE used aliases for Simpson and Tanisha Jackson as a means to obscure their involvement and falsely certified that none of its principals had been excluded from the feeding programs. The defendants further admitted causing HOIN to submit reimbursement claims for hundreds of thousands of meals that were never served to eligible children by either inflating the number of meals that, in fact, were served, or by seeking reimbursements for meals purportedly served on days on which the identified feeding site was not operating at all. To conceal their fraudulent conduct and justify HOIN’s claimed meal service, Simpson and Tanisha Jackson admitted submitting fabricated documents to PADOE in connection with periodic program reviews, and Tanisha Jackson admitted that on certain occasions she would impersonate Paige Jackson, her daughter, in interactions with PADOE. Likewise, Paige Jackson admitted that she used a fictitious name in dealings with PADOE. In total, PADOE issued reimbursement payments to HOIN in excess of approximately $4 million between 2015 and 2019.
In connection with the money laundering conspiracy, Simpson and Tanisha Jackson also admitted engaging in numerous financial transactions involving the proceeds of the fraud. Specifically, Simpson and Tanisha Jackson admitted spending hundreds of thousands of dollars in HOIN reimbursements on shopping sprees at high-end apparel stores, personal air travel and lodging, and the acquisition of at least nine luxury vehicles, including a Bentley, two Land Rovers, two Maseratis, two Mercedes, a Hummer, and a Porsche. Simpson and Tanisha Jackson also withdrew cash from HOIN bank accounts in excess of $10,000 on more than a dozen occasions.
In connection with their guilty pleas, Simpson and Tanisha Jackson have agreed to pay restitution to USDA totaling $1,500,000, and Paige Jackson has agreed to pay restitution of approximately $190,000. Simpson and Tanisha Jackson have each also agreed to forfeit approximately $427,000.Conspiracy to commit mail and wire fraud carries a maximum term of imprisonment of twenty years and a fine not more than the greater of $250,000 or an alternative fine in an amount not more than the greater of twice the gross pecuniary gain to any person or twice the pecuniary loss to any person other than the defendant. Likewise, the money laundering conspiracy carries a maximum term of imprisonment of ten years and a fine of not more than $250,000 or an alternative fine of not more than twice the amount of the criminally derived property involved in the relevant transactions. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorneys Eric G. Olshan and Nicole Vasquez Schmitt are prosecuting this case on behalf of the government.
The United States Department of Agriculture – Office of Inspector General, Internal Revenue Service – Criminal Investigation, and Federal Bureau of Investigation conducted the investigation of the defendants in this case.
Texarkana, Texas Men Arrested on Federal Drug Trafficking and Firearms ViolationsRead the Press Release
TEXARKANA, Texas – Four Texarkana, Texas men have been arrested on drug trafficking and firearms violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Deablo Deshon Lewis, a/k/a Pablo Lew, 31; Michael Darnell Peacock, a/k/a Fruit, 37; Terrance Lamar Peacock, a/k/a T, 31; and Justin Marshall Owens, 40, were named in an indictment returned by a federal grand jury on March 10, 2022, charging them with federal drug trafficking and firearms violations. Michael Peacock appeared before U.S. Magistrate Judge Caroline Craven Craven on March 17, 2022; Lewis appeared before U.S. Magistrate Judge Barry Bryant on March 23, 2022; Owens appeared before Judge Craven on March 31, 2022; and Terrance Peacock appeared before Judge Craven on May 17, 2022.
According to the indictment, beginning in November 2018 and continuing through March 2022, Lewis, Michael Peacock, Terrance Peacock, and Owens allegedly conspired with each other and others to distribute fentanyl, methamphetamine, U-47700, and marijuana in the Texarkana area. During that time, they allegedly carried, used, and possessed firearms in connection with their drug trafficking activities. As a result of the drugs these defendants distributed, three individuals died and another sustained serious bodily injury. In total, the defendants are allegedly responsible for distributing $5 million worth of drugs.
“The counterfeit oxycodone pills--sometimes known as ‘blues’ or ‘M30s’--that were distributed in the Texarkana area contain deadly fentanyl,” said U.S. Attorney Brit Featherston. “If you, or someone you know, has experienced an opioid overdose as a result of taking one of these round blue pills--stamped with ‘M’ on one side and ‘30’ on the other--please contact the Texarkana Texas Police Department at 903-798-3116. Increasingly, we are seeing more street drugs with deadly fentanyl added to them…and it is killing the users. More people need to be aware of this increasing trend that can kill the recreational drug user. Simply put, one pill can kill!”
If convicted, the defendants face from 25 years to life in federal prison.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case is being investigated by the Texarkana, Texas, Police Department; Texas Department of Public Safety; the U.S. Drug Enforcement Administration; the U.S. Postal Inspection Service; and the Texarkana, Arkansas, Police Department. This case is being prosecuted by Assistant U.S. Attorneys Jonathan R. Hornok and D. Ryan Locker.
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Taos business owner pleads guilty to failure to pay taxes withheld from employee paychecksRead the Press Release
ALBUQUERQUE, N.M. – Diane Mariani, 66, of Taos, New Mexico, pleaded guilty on May 18 in federal court to willful failure to collect or pay over tax. Mariani will remain on conditions of release pending sentencing, which has not been scheduled.
According to the plea agreement and other court records, until 2015, Mariani was co-owner, operator and treasurer of Taos RPM LLC, and beginning in 2015 Mariani, was co-owner, operator, and treasurer of Mountain Resort Management, Inc., in Taos, New Mexico. Mountain Resort Management did business as Snakedance Condominiums, Bumps Market and Hondo Restaurant. Mariani was responsible for paying employees of Snakedance Condominiums and Mountain Resort Management and acknowledged in her plea that she knew she had a duty to withhold federal income taxes, Social Security taxes, and Medicare taxes – collectively referred to as “trust fund taxes” – from employee paychecks. She also knew that she had a duty to report those taxes on a quarterly basis and to deposit those taxes on a regular basis.
From the first quarter of 2015 through the fourth quarter of 2018, Mariani withheld at least $203,137 in trust fund taxes from the employees she paid. Mariani admitted that she willfully failed to pay those taxes to the IRS.
Mariani faces up to five years in prison.
IRS Criminal Investigation investigated this case. Assistant United States Attorney Jeremy Peña is prosecuting the case.
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State of Oregon Man Sentenced to 60 Months for Interfering with Railroad ConductorRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Timothy Thomas, 32, Portland, Oregon, was sentenced today by U.S. District Judge William M. Conley to 60 months in prison for intentionally interfering with an on-duty Amtrak railroad conductor. Thomas pleaded guilty to this charge on March 3, 2022.
On November 7, 2020, law enforcement responded to a report of an Amtrak passenger brandishing an eight-inch knife. While in route, officers received information that the engineer stopped the train near the intersection of US-12 and Hudson Road in Monroe County, Wisconsin. Law enforcement also learned that the subject, later identified as the Timothy Thomas, got off of the train and attempted to force his way into one of the locomotives.
When officers arrived, they observed Thomas walking away from the tracks. They detained Thomas, searched him for weapons, and found a large, white-handled knife concealed in his right pant leg.
Investigators interviewed passengers, the conductor, and the engineer. The passengers explained that Thomas started threatening people around the Wisconsin Dells area. One passenger said that the defendant was talking loudly, banging on the seats, and threatening to “kill people.” Another passenger told investigators that Thomas refused to wear his mask and coughed on passengers.
The conductor told investigators that when she approached Thomas to discuss his conduct, he pulled a white-handled fixed blade knife from his pant leg and held it over his head in a threatening manner. He then began stabbing the knife towards the conductor.
Finally, the train’s engineer said that he stopped the train when he received a radio transmission from the conductor about an individual brandishing a knife. The engineer then saw Thomas exit one of the cars, climb onto a locomotive, and attempt to force his way into the cabin.
At sentencing, Judge Conley said that Thomas’s actions not only affected the conductor, but he recklessly endangered the safety of the train itself.
The charge against Thomas was the result of an investigation conducted by the Monroe County Sheriff’s Office, Wisconsin State Patrol, Amtrak Police, Canadian-Pacific Police, and the Federal Bureau of Investigation. Assistant U.S. Attorney Chadwick M. Elgersma prosecuted this case.
St. Louis man shot during jewelry store robbery sentenced to over eight years in prisonRead the Press Release
ST. LOUIS – A St. Louis man who was shot while trying to rob a jewelry store in 2019 was sentenced by United States District Court Judge Audrey G. Fleissig Thursday to eight years and four months in prison.
Deven Strauther and at least two others tried to rob the Robinson Jewelry Company on Chippewa Street in St. Louis on May 25, 2019, Strauther admitted in his plea agreement.
Strauther and another man, who were both armed, approached the store and opened one door, but employees did not allow the pair through a second, electronically-controlled door.
Strauther kicked out the lower portion of the glass on the door to try and gain entry. Fearing for their safety, the store owner and an off-duty police officer working security fired at Strauther, who was hit twice in the abdomen. Strauther fired back as he ran away.
About 30 minutes later, Strauther arrived at St. Louis University Hospital, where he was treated by staff and questioned by police. He did not make any admissions about his involvement in the attempted robbery, but police later found the Infiniti sedan used by the robbers. Strauther’s blood was inside, and the car’s hard drive showed it was at Robinson’s on the date and time of the attempted robbery. Strauther then admitted his involvement in the crime to police.
Strauther, 31, pleaded guilty in January to one count of attempted interference with commerce with threats of violence.
The case was investigated by the St. Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Jen Szczucinski prosecuted the case.
This case was 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.
St. Louis man shot during jewelry store robbery sentenced to over eight years in prisonRead the Press Release
ST. LOUIS – A St. Louis man who was shot while trying to rob a jewelry store in 2019 was sentenced by United States District Court Judge Audrey G. Fleissig Thursday to eight years and four months in prison.
Deven Strauther and at least two others tried to rob the Robinson Jewelry Company on Chippewa Street in St. Louis on May 25, 2019, Strauther admitted in his plea agreement.
Strauther and another man, who were both armed, approached the store and opened one door, but employees did not allow the pair through a second, electronically-controlled door.
Strauther kicked out the lower portion of the glass on the door to try and gain entry. Fearing for their safety, the store owner and an off-duty police officer working security fired at Strauther, who was hit twice in the abdomen. Strauther fired back as he ran away.
About 30 minutes later, Strauther arrived at St. Louis University Hospital, where he was treated by staff and questioned by police. He did not make any admissions about his involvement in the attempted robbery, but police later found the Infiniti sedan used by the robbers. Strauther’s blood was inside, and the car’s hard drive showed it was at Robinson’s on the date and time of the attempted robbery. Strauther then admitted his involvement in the crime to police.
Strauther, 31, pleaded guilty in January to one count of attempted interference with commerce with threats of violence.
The case was investigated by the St. Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Jen Szczucinski prosecuted the case.
This case was 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.
St. Louis man facing murder charge in toddler’s death gets 46 months on federal gun chargeRead the Press Release
ST. LOUIS – United States District Court Judge Ronnie L. White sentenced Horatio T. Harris Wednesday to 46 months in federal prison for possessing a firearm during a domestic dispute sparked by the death of a toddler.
In Harris’ plea agreement, he admitted that on Sept. 4, 2020, a crowd of 15 to 20 people gathered outside a boarding house where Harris lived. Harris’ stepdaughter and others in the crowd wanted to confront Harris about the death of her two-year-old son.
When Harris saw the group, he retrieved a .38 caliber Colt Army Special revolver from his room and answered the door with the gun in hand. Harris argued with his stepdaughters, who later fled in fear from Harris.
Harris admitted knowing he was a convicted felon and that he was prohibited from possessing the firearm.
After Harris was indicted, he fled St. Louis and was eventually located by the United States Marshals in Louisville, Kentucky.
Harris pleaded guilty in February to being a felon in possession of a firearm.
Harris is facing a pending second-degree murder charge and three counts of child abuse in St. Louis Circuit Court related to the death of the two-year-old and the alleged abuse of that boy and his twin brother.
The case was investigated by the St. Louis Metropolitan Police Department and is being prosecuted by Assistant United States Attorney Zachary Bluestone.
St. Louis County woman sentenced to nine years for methamphetamine dealingRead the Press Release
ST. LOUIS – United States District Court Judge Ronnie L. White sentenced a significant dealer of methamphetamine Thursday to nine years in prison.
Anne R. Jekel, 42, of St. Louis County, was caught multiple times in possession of methamphetamine and guns. On Nov. 29, 2016, Maryland Heights police officers arrested her on outstanding warrants and found a pistol, 100.7 grams of methamphetamine and $4,735 in cash.
On Feb. 5, 2017, Overland police stopped Jekel for a traffic violation and found another pistol, $347 in cash and 97.6 grams of methamphetamine.
On Sept. 25, 2020 an undercover Drug Enforcement Administration task force officer bought two ounces of methamphetamine for $1,200.
On Oct. 26, 2020 DEA investigators found 86 more grams of methamphetamine.
Jekel pleaded guilty January 13 to three felony counts of possession with the intent to distribute methamphetamine and one count of possession with the intent to distribute more than 50 grams of methamphetamine.
The case was investigated by police in Maryland Heights and Overland and the Drug Enforcement Administration. Assistant United States Attorney Paul D’Agrosa is prosecuting the case
Spokane Valley Volleyball Coach Sentenced to 60 Months in Federal Prison for Child Pornography OffenseRead the Press Release
Spokane, Washington –United States District Judge Thomas O. Rice sentenced Richard Dale Wright, 50, of Spokane, Washington, to 60 months in federal custody for downloading images of child pornography. Judge Rice ordered Wright to be taken into immediate custody, and also ordered him to serve the remainder of his life on federal supervision after he is released from prison. Wright pleaded guilty earlier this year to Receipt of Child Pornography.
According to court documents, an undercover FBI Special Agent went online in the Spring of 2019 to identify people in the Spokane community who were sharing large volumes of known or suspected child pornography. The agent downloaded a number of child pornography files from Wright’s computer, and a subsequent search warrant at his residence in Spokane Valley resulted in the seizure of digital devices containing images and videos of child pornography dating back to 2017. Wright had been a girls’ volleyball coach in Spokane and the Spokane Valley, including at Lewis & Clark High School, and with Apex, a club youth volleyball program for which Wright served as the director. He was also on the Board of Directors for the Evergreen Region Volleyball Association. Although the ages of the victims depicted in Wright’s child pornography collection were consistent with the volleyball players he coached, FBI was not able to positively identify any of Wright’s former players in the child pornography images on his digital devices.
“It is deeply troubling that a coach, entrusted with the safety of teenage – and younger – girls, engaged in child pornography conduct that demonstrated his sexual interest in girls that age,” said Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington. “It is a relief that the FBI did not recover evidence that Mr. Wright recorded child pornography images or videos of any of the players he coached. Today’s sentence nevertheless serves as a clarion call to anyone who would endanger or exploit children in the Eastern District or elsewhere: law enforcement is actively investigating your online conduct, and the consequences for engaging in child exploitation are severe.”
“As a coach and community role model, Mr. Wright held a position of trust and he should be held to a high standard of conduct,” said Donald M. Voiret, Special Agent in Charge of the FBI Seattle Field Office. “Instead, he possessed hundreds of images that revictimize innocent children every time their abuse is viewed. I commend the investigators and prosecutors who vigilantly protect our youth.”
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components:
ꞏ Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
ꞏ Participation of PSC partners in coordinated national initiatives;
ꞏ Increased federal enforcement in child pornography and enticement cases;
ꞏ Training of federal, state, and local law enforcement agents; and
ꞏ Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
This case was investigated by the Spokane Resident Office of the FBI. The case was prosecuted by David M. Herzog, Assistant United States Attorney for the Eastern District of Washington.
Spokane Man Sentenced to 12 Years for Sexual Exploitation of a ChildRead the Press Release
Spokane, Washington –United States District Judge Thomas O. Rice sentenced Fainyan Kain James Kimmerly, 22, of Spokane, Washington, to 12 years in federal prison for persuading a 13-year-old to produce sexual images of the 13-year-old and send the images to Kimmerly. Judge Rice also ordered Kimmerly to serve the remainder of his life on federal supervision after he is released from prison. Kimmerly pleaded guilty earlier this year.
According to court documents, in the summer of 2019, Kimmerly used Facebook to communicate with a 13-year-old whom he knew to be a minor. In a series of Facebook Messenger communications, Kimmerly engaged in a dominant-submissive sexual relationship with the minor. Among other inappropriate conduct, Kimmerly specifically requested that the minor take sexually explicit images of the minor’s own body and send those images to Kimmerly. In 2010, Kimmerly sustained a juvenile conviction in Spokane County for Child Molestation in the First Degree, and was a registered sex offender under Washington law when he engaged in the conduct charged in the federal case.
Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, praised the victim’s bravery and commended the FBI’s sensitive and victim-centered approach to its investigation. “Children must be safe from sexual predators, particularly those who have offended before,” said U.S. Attorney Waldref. “In this case, the FBI’s Special Agents, victim and witness specialists, and forensic examiners all took care to put the specific needs of the 13-year-old minor at the forefront of their investigation. Above all, I commend the victim on having the strength to come forward and shine a light on Mr. Kimmerly’s misconduct. Protecting children from harm, especially sexual exploitation online and IRL (in real life), is critical to building a safe and strong Eastern Washington community. I am delighted to note that even Mr. Kimmerly’s conduct has not succeeded in silencing or sidetracking the minor’s life; today, on the very day of sentencing, that minor is attending a college fair and looking to the future.”
“This is not the first time Mr. Kimmerly has demonstrated disregard for a vulnerable person,” said Donald M. Voiret, Special Agent in Charge of FBI Seattle Field Office. “His conduct in this case was particularly egregious, given some of the challenges his victim was already facing. I applaud the work of our investigators and victim advocates, as well as our colleagues at the United States Attorney’s Office, for standing up for people who deserve support, not victimization.”
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components:
ꞏ Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
ꞏ Participation of PSC partners in coordinated national initiatives;
ꞏ Increased federal enforcement in child pornography and enticement cases;
ꞏ Training of federal, state, and local law enforcement agents; and
ꞏ Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
This case was investigated by the Spokane Resident Office of the FBI, with significant assistance from the Spokane Police Department. The case was prosecuted by David M. Herzog, Assistant United States Attorney for the Eastern District of Washington.
Sanger Man Indicted for Being a Felon in Possession of a FirearmRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Raymond Uribe, 34, of Sanger, charging him with being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Uribe was a passenger in a car that fled from officers who were trying to stop it for vehicle code violations. The car eventually hit another vehicle and lost control. As the car came to a stop, Uribe threw a 9 mm Sig Sauer handgun from the car. At the time of the offense, Uribe was on supervision for a prior felon in possession of a firearm conviction and was aware he was prohibited from possessing firearms.
This case is the product of an investigation by the Sanger Police Department and the Multi‑Agency Gang Enforcement Consortium (M.A.G.E.C.). Assistant U.S. Attorney Laurel J. Montoya is prosecuting the case.
If convicted, Uribe faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Sacaton Man Sentenced to 15 Years for Stabbing DeathRead the Press Release
PHOENIX, Ariz. – Yesterday, Jose Louise Carpio, III, 25, of Sacaton, Arizona, was sentenced by U.S. District Judge Susan M. Brnovich to 15 years in prison, followed by five years of supervised release. Carpio previously pleaded guilty to Second Degree Murder.
On October 7, 2019, Carpio stabbed the victim, killing her. Caprio is an enrolled member of the Gila River Indian Community,
The Gila River Police Department conducted the investigation in this case. Assistant U.S. Attorney Raynette Logan, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-20-00182-01-PHX-SMB
RELEASE NUMBER: 2022-075_Carpio# # #
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.South Carolina Man Arrested at Cyril E. King Airport on Outstanding WarrantRead the Press Release
ST. THOMAS, USVI – United States Attorney Delia L. Smith announced today that Maurice Eugene Tucker, 35, of South Carolina, made his initial appearance before U.S. Magistrate Judge Ruth Miller following his arrest on a warrant from Columbia, South Carolina. Tucker was released on a $25,000 unsecured bond and other conditions to allow him to return to South Carolina for further court proceedings.
According to court documents, on May 4, 2021, a South Carolina grand jury returned an indictment charging Tucker with being a felon in possession of a firearm. On May 15, 2022, Tucker was detained by Customs and Border Protection officers at the Cyril E. King Airport after he appeared for primary inspection before boarding a flight to the mainland. Thereafter, Tucker was arrested and taken into custody by officers of the Virgin Islands Police Department.
This matter is being prosecuted by the United States Attorney’s Office for the District of South Carolina.
United States Attorney Smith reminds the public that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Russian Man Sentenced to 11 Months Time Served on Visa Fraud and False Statement ChargesRead the Press Release
PORTLAND, Maine: A man previously from Togliatti, Russia, now of Portland, was sentenced in federal court today for conspiracy to commit visa fraud, false statements to a federal law enforcement agency, and visa fraud, U.S. Attorney Darcie N. McElwee announced.
U.S. District Judge Nancy Torresen sentenced Alexander Gormatov, 34, to time served (333 days), a $2,000 fine, and one year of supervised release. Gormatov was found guilty following a jury trial in October 2021.
According to court records, Gormatov, a Russian national, entered the U.S. on a student/work visa in 2009, and later successfully adjusted his status to that of an academic student visa by attending Southern Maine Community College (SMCC) in 2010.
In 2011, Gormatov met a 17-year-old female U.S. citizen through a Craigslist employment advertisement. A few months later when she reached age 18, Gormatov paid her to marry him in pursuit of a permanent immigration benefit. Gormatov then quit school. By November 2012, when he failed to re-enroll at SMCC, Gormatov became unlawfully present in the U.S.
In January 2013, per their agreement, the sham couple made a series of material false statements on immigration documents that Gormatov later filed seeking a formal adjustment to his immigration status. In April 2013, the couple was interviewed by the U.S. Citizenship and Immigration Service in South Portland during which, per Gormatov’s instruction, the couple falsely claimed to be living as husband and wife. Following the interviews, based on the fraud, Gormatov obtained conditional lawful permanent resident (LPR) status in the U.S.
In January 2014, Gormatov’s bride gave birth to a child she conceived with her actual live-in boyfriend, but Gormatov’s name was placed on the birth certificate. In March 2015, Gormatov filed a petition to remove the conditions of his permanent residence, accompanied by a copy of the child’s falsified birth certificate.
In January 2017, after learning he was under investigation, Gormatov departed the U.S. for Russia and failed to return within one year. In May 2019, in order to return to the U.S., Gormatov falsely represented the paternity of his sham wife’s child on a form filed in Riga, Latvia.
During the trial, the young sham wife testified that Gormatov had told her to “just trust him” because such sham marriages happen all the time and “nobody cares.”
The Cumberland County Sheriff’s Office, the Department of Homeland Security - Homeland Security Investigations, and the Department of State - Diplomatic Security Service investigated this case.
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Rock Island Man Convicted of Firearm and Ammunition OffensesRead the Press Release
PEORIA, Ill. – A federal jury returned guilty verdicts today against Anthony Tony Gay, of the 1200 block of 14th St., in Rock Island, Illinois, for possession of a firearm and ammunition by a felon. Sentencing for Gay has been scheduled for September 16, 2022, at the federal courthouse in Peoria, Illinois.
Over three days of testimony, the government presented evidence to establish that on May 31, 2020, a vehicle in which Gay was a passenger was stopped by Rock Island police officers for a traffic violation. Gay fled from the traffic stop, but fell down as he was being chased by police and was arrested a short distance away. When officers retraced Gay’s flight path, they found a loaded Glock model 36 .45 pistol in the location where he fell. The Glock had previously been reported stolen in March 2020.
Approximately two weeks later, on June 14, 2020, Rock Island police were called to a Rock Island motel where Gay had been renting a room when he was arrested for the gun charge. As motel personnel were cleaning Gay’s room and removing his belongings, one of them located a bag of .45 ammunition containing the same type of rounds that had been loaded in the Glock pistol.
The government also established that Gay had a number of prior felony convictions, including robbery, aggravated battery, and possession of a weapon in prison.
Gay was remanded to the custody of the U.S. Marshals Service. At sentencing, Gay faces statutory penalties on each count of up to 10 years imprisonment, a $250,000 fine, and up to a three-year term of supervised release.
The investigation was conducted by the Rock Island Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys John Mehochko, Alyssa Raya, and Jennifer Mathew represented the United States in the prosecution.
Revere Man Sentenced to 10 Years in Prison for Attempted Purchase of 20 Kilograms of CocaineRead the Press Release
BOSTON – A Revere man was sentenced yesterday in federal court in Boston in connection with attempting to purchase 20 kilograms of cocaine from undercover agents.
Jesus Arley Munera-Gomez, 35, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 10 years in prison and five years of supervised release. On Nov. 15, 2021, Munera-Gomez was convicted following a week-long trial of one count of attempt to possess with intent to distribute five kilograms or more of cocaine.
In February 2020, Munera-Gomez arranged to purchase 20 kilograms of cocaine from undercover agents in exchange for $200,000. At the meeting location, Munera-Gomez took a duffle bag from the undercover agents containing 20 kilograms of sham cocaine. He was arrested immediately following the transaction. A subsequent search of Munera-Gomez’s residence resulted in the seizure of approximately $200,000 which was to be used as the down payment for the cocaine.
United States Attorney Rachael S. Rollins and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement. Assistant U.S. Attorneys Jared C. Dolan and Lauren A. Graber of Rollins’ Narcotics & Money Laundering Unit prosecuted the case.
Republic Man Sentenced for Meth Trafficking after High-Speed ChaseRead the Press Release
SPRINGFIELD, Mo. – A Republic, Mo., man who led law enforcement officers on a high-speed chase was sentenced in federal court today for possessing methamphetamine to distribute.
Heath E. Yarger, 49, was sentenced by U.S. District Judge M. Douglas Harpool to 14 years in federal prison without parole.
On Sept. 30, 2021, Yarger pleaded guilty to one count of possessing methamphetamine with the intent to distribute. Yarger admitted that he was in possession of approximately 254 grams of pure methamphetamine when he was arrested on Dec. 21, 2020.
A Christian County, Mo., sheriff’s deputy attempted to conduct a traffic stop of Yarger, who was driving a Chevrolet Silverado on Highway CC near Carnegie Road. Yarger failed to yield, however, and a pursuit ensued. Stop sticks were deployed and disabled the two passenger side tires. The pursuit continued onto northbound Highway 160 as Yarger reached speeds of 100 miles per hour and began to swerve and travel in the middle of the roadway, nearly striking multiple other vehicles. The pursuit continued through several residential streets and through the yard of a residence before returning to Highway 160. The pursuit ended near the intersection of Campbell Avenue and Primrose Street in Springfield, Mo. Yarger ran from the vehicle and was arrested after a short pursuit on foot.
Officers found a plastic bag that contained approximately 12.8 grams of pure methamphetamine in Yarger’s left jacket pocket. Officers searched his vehicle and found two plastic bags that contained an approximate total of 241.8 grams of pure methamphetamine.
According to court documents, Yarger has an extensive criminal history that includes convictions for operating a vehicle while intoxicated and multiple attempts to flee or resist law enforcement.
This case was prosecuted by Special Assistant U.S. Attorney Cameron A. Beaver. It was investigated by the Christian County, Mo., Sheriff’s Department and the Drug Enforcement Administration.
Red Lake Man Sentenced to Prison for Fentanyl TraffickingRead the Press Release
MINNEAPOLIS – A Red Lake man was sentenced to 60 months in prison, followed by four years of supervised release, for selling fentanyl on the Red Lake Reservation, announced United States Attorney Andrew M. Luger.
According to court documents, on April 30, 2021, law enforcement observed Leroy Varney, 53, make an immediate roundtrip from Bemidji to Pequot Lakes for a drug pick up. Upon returning to Bemidji, law enforcement conducted a traffic stop of Varney’s vehicle. Law enforcement recovered from the vehicle a large bag weighing 100 grams containing a white powdery substance, which was divided into four smaller bags. Subsequent laboratory testing confirmed the substance was fentanyl. Varney admitted that he intended to sell the fentanyl in Bemidji to people coming from the Red Lake Indian Reservation.
Varney was sentenced yesterday by Senior U.S. District Judge Michael J. Davis. On December 16, 2021, Varney pleaded guilty to one count of possession with intent to distribute fentanyl.
This case was the result of an investigation conducted by the Paul Bunyan Drug Task Force, the Bureau of Indian Affairs, the Minnesota Bureau of Criminal Apprehension, and the Red Lake Police Department.
Special Assistant U.S. Attorney Angelica D. Ramirez and Assistant U.S. Attorney Deidre Y. Aanstad prosecuted the case.
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Readout of the Tribal Nations Leadership Council MeetingRead the Press Release
During a two-day conference this week, the Tribal Nations Leadership Council (TNLC) met virtually with senior Justice Department officials, covering a range of issues, challenges and opportunities for American Indian and Alaska Native Tribes.
Yesterday, the TNLC met with Attorney General Merrick. B. Garland and Deputy Attorney General Lisa O. Monaco. The Office of Tribal Justice and the Executive Office for U.S. Attorneys (EOUSA) discussed with the TNLC the implementation of guidelines under Savanna’s Act and Tribal Community Response Plans developed in response to the crisis of Missing and Murdered Indigenous People. The TNLC also discussed the impact of the expansion of Tribal jurisdiction under the recently reauthorized Violence Against Women Act.
On Tuesday, May 17, the TNLC met with the Office of Justice Programs (OJP), the Office of Community Oriented Policing Services (COPS Office), and the Office on Violence Against Women (OVW), about the department’s grant opportunities to enhance public safety in Tribal communities, and with the Office for Victims of Crime and EOUSA on efforts to assist crime victims and address violence.
The TNLC is composed of Tribal leaders representing American Indian Tribes and Alaska Native villages from regions around the country. This meeting, the first in more than four years, was announced in January by the Attorney General in remarks to the National Congress of American Indians. The Council is comprised of elected Tribal officials, nominated by their peers to represent their region.
Established by charter in 2010, the TNLC is charged with providing perspective on emergent and ongoing issues across Indian country as well as providing feedback on Justice Department activities in support of Tribes in each region. In addition to establishing a mechanism for regular insight and accountability, the structure of the group honors the government-to-government relationship with Tribes.
Reading Man Sentenced for Wire Fraud and Identity TheftRead the Press Release
BOSTON – A Reading man has been sentenced in connection with a scheme to defraud an elderly relative of her interest in a three-family home and a separate scheme to defraud the Massachusetts Department of Unemployment Assistance.
Giorgio “George” Fiorenza, 51, was sentenced on May 17, 2022 by U.S. District Court Judge Leo T. Sorokin to three years in prison and three years of supervised release. Fiorenza was also ordered to pay restitution in the amount of $20,508. On Dec. 14, 2021, Fiorenza pleaded guilty to two counts of wire fraud and one count of aggravated identity theft.
Between August and September 2017, Fiorenza defrauded an elderly relative into signing a deed conveying her interest in a property she owned with Fiorenza’s spouse and forged the victim’s name on another document necessary to convey title to the property, both of which were recorded in the Middlesex Registry of Deeds. Fiorenza then took out a $750,000 loan in his spouse’s name and secured by the property, and subsequently caused the lender to foreclose on the property. As a result of Fiorenza’s conduct, the victim was forced to move from the only home she had ever known, where she had lived for more than seven decades and where her family had had roots for generations.
Between April and June 2020, Fiorenza filed claims for Pandemic Unemployment Assistance (PUA) in the names of third parties and fraudulently diverted some of the funds for his own use. PUA was a temporary federal unemployment insurance program created when Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) in March 2020 in response to the global coronavirus pandemic. The PUA program, which in Massachusetts was administered by the Department of Unemployment Assistance, provided unemployment insurance benefits for individuals who were not eligible for other types of unemployment benefits. Among other things, Fiorenza filed a PUA claim using a victim’s identity, directed the proceeds of the claim to an account in his spouse’s name, and did not disclose to the victim or her husband that she had qualified for assistance.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Jonathan Mellone, Special Agent in Charge of Department of Labor, Office of Inspector General, Labor Racketeering & Fraud Investigations, made the announcement. Assistant U.S. Attorney Kristen A. Kearney of Rollins’ Securities, Financial & Cyber Fraud Unit prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Raytown Man Pleads Guilty to Fraud Scheme That Used Stolen Identities of Johnson County EmployeesRead the Press Release
KANSAS CITY, Mo. – A Raytown, Mo., man pleaded guilty in federal court today to his role in a fraud scheme that utilized the stolen identities of Johnson County, Kansas, government employees to make fraudulent purchases.
Michael B. Becher, 40, pleaded guilty before U.S. District Judge Howard F. Sachs to participating in a conspiracy to commit credit card fraud from Feb. 1 to June 30, 2019.
By pleading guilty today, Becher admitted that he and his co-conspirators used stolen identity information to make fraudulent purchases. Many of the identity theft victims were current or former employees of Johnson County, Kan. The Johnson County, Kan., government experienced a data breach of employees’ personally identifiable information in 2015.
Becher was responsible for making counterfeit driver’s licenses in the names of the identity theft victims. Becher and co-conspirators used the counterfeit licenses to open fraudulent credit accounts. Before making a counterfeit driver’s license, Becher performed a credit check on the identity theft victim to determine the likelihood of establishing a credit account.
Becher made at least seven fraudulent purchases himself, using the stolen identities of three victims, at Lowe’s and Home Depot in transactions ranging from $1,617 to $8,049. Becher then sold the goods and equipment for half of the actual value of the property. Becher kept half of the proceeds that he sold and gave the other half to co-conspirators.
Co-defendant Rachel R. Jarman, 35, address unknown, pleaded guilty on Dec. 17, 2021, to her role in the conspiracy.
In a separate and unrelated case, Becher has also pleaded guilty to his role in a nearly $10 million conspiracy to distribute almost 1,000 kilograms of methamphetamine from Sept. 1, 2018, to Nov. 5, 2019. Becher admitted he was responsible for the distribution of at least 185 kilograms of methamphetamine. Becher also admitted that he purchased multiple pounds of methamphetamine on a daily basis.
Under federal statutes, Becher and Jarman each are subject to a sentence of up to five years in federal prison without parole in this case. In the drug-trafficking case, the government and Becher have agreed to a sentence of 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Special Assistant U.S. Attorney Bradley Cooper and Assistant U.S. Attorney Patrick D. Daly. It was investigated by the Olathe, Kan., Police Department and the U.S. Secret Service.
Quintet of Attorneys General Statement of Support for the Prosecutor General of Ukraine and Investigations and Prosecutions for Russian War CrimesRead the Press Release
The Quintet of Attorneys General have issued the following statement of support for Prosecutor General Iryna Venediktova of Ukraine and investigations and prosecutions for crimes committed during the Russian invasion of Ukraine:
“The Attorneys General of the United Kingdom, the United States of America, Australia, Canada, and New Zealand join in support of Prosecutor General Iryna Venediktova, her Office, and the Ukrainian people in ensuring accountability for war crimes committed during the Russian invasion.
“We support the pursuit of justice by Ukraine and through other international investigations, including at the International Criminal Court, the United Nations, and the Organisation for Security and Cooperation in Europe, and in our own jurisdictions, in order to the ensure prompt, fair and effective investigation and prosecution of such offences under Ukrainian, domestic or international law.
“We join in condemning the Russian Government for its actions, and call upon it to cease all violations of international law, to halt its illegal invasion and to cooperate in efforts to achieve accountability.
“We look forward to working together with the Prosecutor General and her Office to ensure every perpetrator faces justice.”
U.S. Attorney General Merrick B. Garland
United Kingdom’s Attorney General Suella Braverman
Australia’s Attorney General Michaelia Cash
Canada’s Minister of Justice and Attorney General David Lametti
New Zealand’s Attorney General David Parker
Purported Surgeon Pleads Guilty to 25 Counts Relating to Romance Scam Involving Online Dating WebsitesRead the Press Release
TALLAHASSEE, FLORIDA – Brian Brainard Wedgeworth (a/k/a “Dr. Brian Anderson,” a/k/a “Dr. Anthony Watkins,” a/k/a “Dr. Brian Adams,” a/k/a “Dr. Edward Chen,” a/k/a “Dr. Brian Chris,” a/k/a “Dr. Chris Williamson,” a/k/a “Dr. Brian Christopher Williamson,” a/k/a “Dr. Brian Edmonds,” a/k/a “Dr. Brian Ammerson,” a/k/a “Dr. Brian Lamar Wilson,” a/k/a “Dr. Brian Wilson,” a/k/a “Dr. Brian Mims,” a/k/a “Dr. Brian Lamar Sims”), 46, formerly of Tallahassee, Florida, and Center Point, Alabama, plead guilty today to 25 counts of wire fraud, mail fraud, aggravated identity theft, and money laundering. The plea was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
Court documents reflect that between October 2016 and March 2021, Wedgeworth devised a scheme to defraud women he met through online dating forums by falsely representing that he was a physician in order to fraudulently obtain money and property from them. In so doing, Wedgeworth made promises to the women to induce them to send him money and buy him jewelry and watches. Wedgeworth admitted to causing, or intending to cause, a total loss of over $1.3 million to over 30 women who he victimized as a result of his scheme.
“Our citizens should not be preyed upon by fraudsters who steal through overtures of affection,” said U.S. Attorney Coody. “With the assistance of our dedicated law enforcement partners, we are committed to investigating and vigorously prosecuting those who engage in all acts of fraud.”
Sentencing in this case is set for August 8, 2022, at 10:00 a.m., at the United States Courthouse in Tallahassee before the Honorable United States District Judge Robert L. Hinkle. Wedgeworth faces up to 20 years in prison on wire fraud and mail fraud counts, up to 10 years in prison on the money laundering counts, and a minimum mandatory sentence of 2 years in prison, consecutive to any other imprisonment that is imposed, for the aggravated identity theft count.
“Rooting out fraudulent schemes furthered by the U.S. Mail, such as romance scams, remains a top priority for the U.S. Postal Inspection Service,” said Juan A. Vargas, Acting Inspector In Charge, U.S. Postal Inspection Service, Miami Division. “Our agency will continue to investigate those that target innocent individuals and abuse their trust for financial gain.”
This case resulted from a joint investigation by the United State Postal Inspection Service (USPIS) and the Internal Revenue Service–Criminal Investigations (IRS-CI), and work is ongoing to ensure that all potential victims are identified. If you believe that you were in contact with Brian Brainard Wedgeworth, or through one of his aliases, and would like to speak with an investigator, please contact the USPIS by email at [email protected]. The case is being prosecuted by Assistant United States Attorney Justin M. Keen.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office for the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Promotion of commercial sex, drugs and firearms crimes send Billings man to prison for more than 10 yearsRead the Press Release
BILLINGS — A Billings man who admitted his role in promoting commercial sex and his involvement in a drug trafficking conspiracy, which included brandishing a firearm during an assault over a botched drug deal, was sentenced today to 10 years and one month in prison, to be followed by five years of supervised release, U.S. Attorney Leif M. Johnson said.
Mario Juan Drake, 33, pleaded guilty in August 2021 to a second superseding information charging him with conspiracy to possess with intent to distribute cocaine and ecstasy, possession of a firearm in furtherance of a drug trafficking offense and two counts of use of a facility in interstate commerce in aid of racketeering.
U.S. District Judge Susan P. Watters presided.
In court documents, the government alleged that in 2019, Drake, co-defendant D’Javon King and others conspired to distribute illegal narcotics, including cocaine and ecstasy. On April 24, 2019, during an attempted drug deal of ecstasy at a Billings motel, a struggle ensued between a buyer and two distributors. The buyer assaulted one of the distributors and left the scene. In response, Drake, King and others arranged a meeting with the buyer during which they assaulted the individual while holding firearms. Drake brandished a firearm during the assault and later he, King and others informed the two distributors that they had retaliated against the buyer for the failed drug deal. King was sentenced to eight years and nine months in prison following his conviction in the case.
The government further alleged that in April and May 2019, two women, identified as Jane Doe 3 and Jane Doe 5, were both engaged in commercial sex with Drake and also were intimately involved with him. Drake used his cell phone to assist with commercial sex calls for both Does by receiving and posting photos of the Does for advertisements, setting pricing for calls and communicating with sex customers for both Does. Drake accompanied the Does to hotels, used a timer during the calls and entered the room if the calls went past the timer.
The U.S. Attorney’s Office, including Assistant U.S. Attorneys Zeno B. Baucus and Benjamin D. Hargrove, prosecuted the case, which was investigated by the FBI.
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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Prolific Fraudster Sentenced to Statutory Maximum Federal SentenceRead the Press Release
Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Charice Unruh, 42, of Spokane, Washington, was sentenced today in federal court in Spokane. Senior Judge Wm. Fremming Nielsen sentenced Unruh to 48 months in federal prison, the highest sentence available under federal law. Judge Nielsen also sentenced Unruh to another year of incarceration, to be served concurrently, because she committed this crime while already on federal supervised release for her prior criminal conduct. Judge Nielsen also imposed 48 months of supervised release, to begin running when Unruh is released from custody.
In February 2022, Unruh pleaded guilty to Unlawful Use of the United States Mails, after an investigation by the United States Postal Inspection Service (“USPIS”). The investigation began when a keen Postal Inspector noticed a package addressed to Unruh while conducting a routine review of parcels coming into Spokane. The Inspector recognized Unruh’s name from a previous USPIS investigation in which Unruh was convicted and sentenced to federal prison in connection with her role in an identity theft ring. The package addressed to Unruh had several indicators consistent with packages that contain contraband, and the Inspector obtained a federal search warrant for it. The search revealed methamphetamine in the package.
The Postal Inspector removed the actual methamphetamine and replaced it with a noncontraband substance before setting up a controlled delivery of the parcel to Unruh. Unruh retrieved the package and was immediately contacted by the Inspector. USPIS then executed a search warrant at Unruh’s Spokane-area apartment, and located multiple devices commonly used to engage in identity theft, as well as personal identification information for multiple individuals across the country.
In imposing the maximum available sentence, Judge Nielsen noted Unruh’s “disturbing” and “terrible” history with this type of crime. In her remarks to the Court, Unruh said she copes with life’s struggles by eating and using methamphetamine, and indicated that she was addicted to both. Judge Nielsen agreed, but stated Unruh was also addicted to stealing other people’s identities and personal information. Judge Nielsen noted that he did not believe Unruh properly considered or understood the impact of her actions on all the innocent people whose personal information she compromised.
serious punishment, as today’s sentence demonstrates,” said Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington. “Our colleagues at USPIS work tirelessly to ensure not only the safe delivery of mail in this country, but to investigate identity theft, mailboxing, wire and bank fraud, and similar crimes. Identity theft costs victims money, time, stress, and can have lasting negative impacts on people’s lives. Even if victims of identity theft are made whole by banks, credit card companies, and other institutions, the costs associated with credit card fraud, bank fraud, and identity theft are distributed back across the entire law-abiding population, increasing everyone’s cost of living. I commend USPIS for their ongoing efforts to stymie both identity theft and the use of the U.S. mails to distribute drugs.”
“The U.S. Postal Service remains one of the most trusted entities in the country, and we work at every turn to protect the communities we serve. Preventing identity theft remains one of our top priorities,” said Inspector in Charge Anthony Galetti. “Every time I speak to a victim of identity theft, I am reminded of both the financial and mental toll this crime takes—innocent victims have to spend their time, energy, and resources to close fraudulent bank accounts, correct credit scores, and the like. A bank may return a victim’s money, but a bank can never give a victim back all the hours it takes to undo an identity thief’s work. We hope this sentencing brings justice to the victims of Unruh’s criminal activity and serves as a deterrent to others. I thank the U.S. Border Patrol and Spokane County Sheriff’s Office for their assistance; it is partnerships across agencies that allow cases like this to be solved.”
This case was investigated by the United States Postal Inspection Service, with assistance from the United States Border Patrol and Spokane County Sheriff’s Office.
Assistant United States Attorney Caitlin A. Baunsgard of the Eastern District of Washington handled this matter on behalf of the United States.
Postal Employee Charged with Theft of MailRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Robert Riley, age 41, of Harrisburg, Pennsylvania, a United States Postal Service employee, was indicted yesterday by a federal grand jury on mail theft charges.
According to United States Attorney John C. Gurganus, the indictment alleges that Riley stole approximately 28 items of mail, in Lower Paxton Township, Dauphin County, between August 23 and December 15, 2021.
Those who believe that they may have been affected during this period may make a report on the U.S. Postal Service Office of Inspector General website at https://www.uspsoig.gov/hotline.
The case was investigated by the U.S. Postal Service Office of Inspector General. Assistant U.S. Attorney Jaime M. Keating is prosecuting the case.
The maximum penalty under federal law for this offense is 5 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Poplar woman admits assault, child abuse crimesRead the Press Release
GREAT FALLS — A Poplar woman suspected of assaulting a toddler on the Fort Peck Indian Reservation admitted to charges this week, U.S. Attorney Leif M. Johnson said today.
Shelby Loves Him, 23, pleaded guilty on May 16 to an indictment charging her with assault resulting in serious bodily injury and felony child abuse. Loves Him faces a maximum of 10 years in prison, a $250,000 fine, and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine a sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Aug. 24. Loves Him was detained pending further proceedings.
Court documents filed by the government alleged that Loves Him had been caring for the victim, a toddler, identified as John Doe, since approximately August 2021 when on Dec. 8, 2021, law enforcement officers were contacted about John Doe being unresponsive at the Poplar Community Hospital. The officers observed bruising and scratches on John Doe’s head, arms and legs. When questioned about events leading to John Doe arriving at the hospital, Loves Him told officers that she had struck John Doe multiple times in the week leading up to an incident on Dec. 8, 2021, when she assaulted and choked the victim until he lost consciousness. John Doe was flown to Salt Lake City, Utah, for emergency life-saving surgery and care. John Doe continues to suffer significant impairment from the injuries he sustained.
Assistant U.S. Attorney Wendy A. Johnson is prosecuting the case, which was investigated by the FBI, Montana Highway Patrol and Fort Peck Tribes Police Department.
XXXOwner of Drug Testing Lab Sentenced in Medicare Kickback SchemeRead the Press Release
ABINGDON, Va. – A Las Vegas, Nevada-based laboratory owner, who paid another lab owner to direct urine samples to his lab for testing and then billed the federal government for that testing, was sentenced last week to four months of house arrest and ordered to pay a total of $510,000 in forfeiture, restitution, and fines.
Rakesh Reddy Kothuru, 49, pled guilty in January 2022 to one count of knowingly and willfully making false representations of material facts for payments under federal health care programs. The conviction means Kothuru is subject to mandatory exclusion from future participation in federal health care benefit programs, including Medicare and Medicaid. Pursuant to his plea agreement, Kothuru was required to pay $500,000 prior to his sentencing to be credited toward the court-ordered forfeiture and restitution.
According to court documents, Kothuru was the majority owner of Laboratory Services of America, LLC (LSA), a Las Vegas-based lab that provided drug testing on urine samples. After performing that testing, ATL routinely sent tested samples to other laboratories for “confirmation” testing.
One of those other labs included American Toxicology Labs (ATL), formerly owned by Michael Norman Dube, who also owned a chain of clinics in Tennessee and Virginia that purported to treat opioid addiction with buprenorphine. Providers at those clinics frequently ordered urine drug screens for their patients in order to assess current drug use and to gather medically necessary information that would be pertinent to treatment.
In January 2015, Kothuru and Dube entered into an arrangement in which Dube would refer all of ATL’s tested urine samples to LSA for confirmation testing in exchange for cash kickback payments to Dube’s personal checking account.
Between March 23, 2015, and September 20, 2016, Kothuru’s lab received more than $750,000 from Medicare, Virginia Medicaid, Kentucky Medicaid, and TennCare in compensation for confirmation testing performed on samples directly related to services illegally billed and collected in accordance with the kickback scheme between Kothuru and Dube.
As part of a previous guilty plea in 2011 to intentionally omitting information from reports as required under the Controlled Substances Act, Dube had been prohibited by the Department of Health and Human Services from ever participating in any federal health care program again. As part of his involvement in the kickback scheme with Kothuru, Dube pleaded guilty in March 2021 to two counts of health care fraud, sentenced to 36 months in federal prison, and ordered to pay over $9,000,000 in fines, forfeitures, and restitution costs.
United States Attorney Christopher R. Kavanaugh of the Western District of Virginia announced the sentence today.
The Virginia Medicaid Fraud Control Unit of the Office of the Attorney General of Virginia, the Food and Drug Administration Office of Criminal Investigations, and the Department of Health and Human Services Office of the Inspector General investigated the case.
Assistant U.S. Attorneys Whit D. Pierce and Randy Ramseyer, and Special Assistant United States Attorney and Assistant Attorney General Janine M. Myatt prosecuted the case.
Monongalia County man sentenced to nearly 20 years for child pornography chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Thomas John Winston, of Westover, West Virginia, was sentenced today to 235 months of incarceration for a child pornography charge, United States Attorney William Ihlenfeld announced.
Winston, 32, pleaded guilty in February 2022 to one count of “Possession of Child Pornography – Previous Conviction.” Winston, who has previously been convicted of a similar charge in Preston County, West Virginia, admitted to having child pornographic images in August 2019 in Preston County.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The FBI investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Monongalia County man admits to role in firearms conspiracyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Harry Anderson Sprouse, III, of Maidsville, West Virginia, has admitted to his role in a firearms conspiracy, United States Attorney William Ihlenfeld announced.
Sprouse, 53, pleaded guilty today to one count of “Aiding and Abetting the False Statement in Connection with the Acquisition of Firearms.” Sprouse admitted to working with another to illegally purchase two pistols from a licensed dealer in December 2020 in Marion County.
Sprouse faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.