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22 June 2022
North Carolina Man Sentenced to Life Without Parole in Federal Prison for the Kidnapping and Murder of Travelers Rest WomanRead the Press Release
GREENVILLE, SOUTH CAROLINA — Daniel Glen Printz, 59, of Bostic, North Carolina, was sentenced to life without parole in federal prison after pleading guilty to killing a South Carolina woman after kidnapping her and crossing state lines.
“Printz is a monster who has a long history of targeting, kidnapping, and killing women - causing unimaginable loss to his victims and their families,” said U.S. Attorney Corey F. Ellis for the District of South Carolina. “He has earned every day of his life sentence, and our communities are safer with him in a prison cell. We are grateful that the Court delivered justice today and we hope it provides some measure of comfort for the victims’ families.”
“Printz’s day of reckoning arrived in a federal courtroom,” said Dena J. King, U.S. Attorney for the Western District of North Carolina, whose office participated in the prosecution of this case. “This man is responsible for the deaths of multiple women and has caused inconceivable pain to their loved ones. A life behind bars is a just outcome.”
“Printz’s violence against women is reprehensible, and he earned the Court’s severe penalty for his crimes,” said Susan Ferensic, the FBI Columbia field office’s Special Agent in Charge. “The sentence will never bring back the victims, but it’s our hope that the victims’ friends and families find peace in the memories of their loved ones.”
“This case is the model for how local, state and federal agencies should continuously work together for the purpose of bringing forth justice,” said Greenville County South Carolina Sheriff Hobart Lewis. “I firmly believe that if it weren’t for the collaborative efforts that this narcissistic man would have continued targeting and preying on innocent woman before taking them from their loved ones. I am so thankful for the men and women who worked tirelessly to get Mr. Printz out of society and behind bars for the rest of his life.”
“We are glad to see justice served today for these horrible crimes,” said Rutherford County North Carolina Sheriff Chris Francis, whose office also investigated this matter. “We are honored to have worked jointly with the FBI, Greenville County Sheriff’s Office and the U.S. Attorney’s Office during this investigation. I am proud of the work my Investigators did in seeking justice for the families of the victims. Our thoughts and prayers are with the families.”
Evidence presented in Court showed that on the morning of August 27, 2021, Printz traveled from his North Carolina home to Travelers Rest, South Carolina, where he met 80-year Travelers Rest resident Edna Suttles. Printz met Suttles at the Food Lion grocery store located off of US-25, where Printz purchased a four-pack of yogurt before the two traveled back to Suttles’s residence.
Later that afternoon, Printz and Suttles returned to the Food Lion parking lot, where Printz was captured on surveillance video moving a visibly sedated Suttles from her vehicle and into his. Printz then drove her vehicle a short distance to a nearby hotel parking lot, where he was seen on surveillance video wiping down the inside and outside of the vehicle. Printz then drove Suttles across state lines back to his residence in Bostic, North Carolina.
After Suttles did not show up to work the following day, concerned coworkers called the Greenville County Sheriff’s Office and reported her missing.
During a search of Printz’s residence, investigators found several personal items belonging to Suttles, including her keys, bank card, jewelry, and pocketbook, most of which were concealed in a box used for raising bees on a remote part of Printz’s property. Investigators also found a yogurt cup—opened—and a forensic lab analysis determined the interior of the cup contained Lorazepam, Tramadol, and Cyclobenzaprine.
After being charged in federal court in the District of South Carolina, Printz cooperated with law enforcement. On May 16, 2022, he took authorities to Suttles’s body, which he had buried on a nearby property in Rutherford County, North Carolina.
During the investigation, agents also recovered evidence connecting Printz to the disappearance or death of three other women – Nancy Rego, Delores Sellers, and Leigh Goodman. Printz admitted in Court that he had some responsibility for, or role in, their deaths or disappearances.
Printz’s criminal history includes a 1997 conviction from Michigan for kidnapping another woman, and he was sentenced to 13 to 30 years in state prison for that crime. He was released in 2009 and his parole was terminated in 2011. He also has prior convictions for firearm possession and assault and battery.
United States District Judge Donald C. Coggins Jr. sentenced Printz to life imprisonment after accepting his guilty plea the same day. There is no parole in the federal system. Through his plea agreement, Printz waived any right to challenge his conviction or his sentence.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the FBI, the Greenville County, South Carolina Sheriff’s Office, the Rutherford County, North Carolina Sheriff’s Office, and the United States Attorney’s Offices for the Western District of North Carolina and the District of South Carolina. Assistant U.S. Attorneys Justin W. Holloway and Elliott B Daniels of the District of South Carolina prosecuted the case, along with Assistant U.S. Attorney Don Gast of the Western District of North Carolina.
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printz_-_complaint_and_complaint_affidavit.pdf printz_-_information.pdf printz_-_plea_agreement.pdfNixa Woman Sentenced for Meth Trafficking After High-Speed ChaseRead the Press Release
SPRINGFIELD, Mo. – A Nixa woman who led law enforcement officers on a high-speed chase at night with no headlights was sentenced in federal court today for trafficking methamphetamine.
Gina N. Nunez, 44, was sentenced by U.S. District Judge M. Douglas Harpool to 12 years in federal prison without parole.
On Jan. 13, 2022, Nunez pleaded guilty to one count of possessing methamphetamine with the intent to distribute. Nunez admitted that she was in possession of methamphetamine found in her vehicle after she led officers on a high-speed chase over two stop strips before crashing her vehicle and being arrested.
A sergeant with the Christian County, Mo., Sheriff’s Department attempted to stop Nunez, who was driving a gray Honda on U.S. Highway 65, a few minutes before midnight on June 27, 2021. She was driving approximately 17 to 32 miles per hour on the highway and crossing over the center line. Nunez waved at the officer as he followed her with his emergency lights and siren on for approximately three minutes. Nunez then accelerated to speeds in excess of 100 miles per hour northbound on U.S. Highway 65 to the Finley River bridge, where Ozark, Mo., police officers had positioned spike strips. Nunez continued travelling at speeds in excess of 100 miles per hour, without headlights, into Greene County.
The Greene County Sheriff’s Department deployed a spike strip near U.S. Highway 65 and Chestnut Expressway. Nunez continued northbound on U.S. Highway 65 at speeds in excess of 100 miles per hour. At approximately 12:16 a.m., Nunez exited the highway onto Interstate 44 and crashed into the guardrail. Her vehicle was disabled, and she was arrested.
Law enforcement officers searched Nunez’s vehicle and found six plastic bags in the front passenger floorboard that contained a total of 134 grams of pure methamphetamine, as well as multiple baggies of marijuana and drug paraphernalia. Officers also found a purse that contained numerous knives.
Nunez has multiple convictions for possession of a controlled substance, multiple convictions for possession of a controlled substance for distribution, and a conviction for accessory to murder in which the victim was beaten with a baseball bat and stabbed repeatedly.
This case was prosecuted by Special Assistant U.S. Attorney Cameron A. Beaver. It was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Missouri State Highway Patrol, the Christian County, Mo., Sheriff’s Department, the Greene County, Mo., Sheriff’s Department, the Springfield, Mo., Police Department, the Nixa, Mo., Police Department, and the Ozark, Mo., Police Department.
New Castle Woman Sentenced to Prison for Storing Illegally Drugs and Guns in Her HouseRead the Press Release
PITTSBURGH, PA -- A resident of New Castle, Pennsylvania, has been sentenced in federal court to 46 months imprisonment with a three-year term of supervised release on her conviction of violating federal drug trafficking laws, United States Attorney Cindy K. Chung announced today.
United States District Judge Marilyn J. Horan imposed the sentence on Deia Eggleston, age 46, of Bleakley Ave., New Castle, Pennsylvania.
According to information presented to the court, Eggleston allowed her relatives, who were engaging in drug trafficking to use her home to manufacture crack cocaine and to store drugs and guns. Eggleston also aided and abetted an attempted delivery of a kilogram of cocaine by mail which federal agents intercepted prior to delivery. During a search warrant of her home, numerous types of drugs and firearms were found.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
United States Attorney Chung commended the Drug Enforcement Administration, the United States Postal Inspection Service, the New Castle Police Department, and the Pennsylvania Attorney General’s Office for the investigation leading to the successful prosecution of Eggleston.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Motocross Coach Indicted for Child Exploitation CrimesRead the Press Release
A motocross instructor who traveled the country building motocross tracks and mentoring children was indicted yesterday for multiple child exploitation offenses.
According to court documents, Ryan Meyung, 30, engaged six different minor victims in sexually explicit conduct to produce images of child sexual abuse, and transported and possessed visual images of child sexual abuse. The alleged crimes occurred between 2019 and 2021. He was arrested on state charges in December 2021 and has remained in custody.
Meyung was known to frequent states including Georgia, Indiana, Kentucky, Michigan, New Jersey, New York, Ohio, Oklahoma, Pennsylvania, and Tennessee.
If you suspect that you have information that could further law enforcement’s investigation, you are encouraged to call the Homeland Security Investigations (HSI) Tipline at (866) 347-2423 or https://www.ice.gov/tipline.
Meyung is charged with six counts of producing child pornography, one count of transporting child pornography, and one count of possessing child pornography. If convicted, Meyung faces a mandatory minimum sentence of 15 years in prison and a maximum of 210 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Buchanan of the Northern District of Georgia, and Resident Agent in Charge Arturo Napolitano of HSI Chattanooga made the announcement.
HSI Chattanooga is investigating this case jointly with the Hamilton County Sheriff’s Office (Tennessee), the Chattanooga Police Department, and HSI field offices throughout the country.
Trial Attorney Jessica L. Urban of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Erin N. Spritzer of the U.S. Attorney’s Office for the Northern District of Georgia are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Minot, ND Man and Velva, ND Woman Sentenced to Federal Prison for Sexual Exploitation of Minor ChildrenRead the Press Release
BISMARCK – Interim United States Attorney Jennifer Klemetsrud Puhl announced that on June 22, 2022, U.S. District Court Judge Daniel L. Hovland sentenced Katie Heidinger, age 33 of Velva, ND and Derrick Walker, age 46 of Minot, ND, for the charges of Six Counts of Sexual Exploitation of a Minor, and Walker for an additional count of Receipt of Images Depicting the Sexual Exploitation of a Minor.
Katie Heidinger plead guilty to the charged offenses and was sentenced to 30 years’ imprisonment followed by a life term of supervised release. Derrick Walker was found guilty following a federal jury on January 26, 2022 and was sentenced to 45 years’ imprisonment followed by a life term of supervised release to follow.
During the trial of Derrick Walker, Katie Heidinger testified that she engaged in an affair with Walker during which time Walker disclosed to her that he was sexually interested in young boys. At Walker’s request, Heidinger produced sexually explicit images and videos involving three boys, ages one, two and five years. Thereafter, she sent this material to Walker to view. Heidinger, again per Walker’s request, created images and videos that depicted her sexually abusing some of these same boys. In addition, Walker requested Heidinger to engage in similar conduct with three other children.
The matter came to law enforcement attention when Heidinger’s then husband discovered some of the images and videos on Heidinger’s cellphone and immediately reported the discovery to the McHenry County Sheriff’s Department.
The case was prosecuted by Assistant United States Attorney Gary Delorme and investigated by Homeland Security Investigations, North Dakota Bureau of Criminal Investigations, Minot Police Department, and McHenry County Sheriff’s Office.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by U.S. Attorney’s Offices throughout the nation, Project Safe Childhood, in conjunction with Internet Crimes Against Children Task Force (ICAC), help federal, state, and local law enforcement agencies enhance their investigative responses to offenders who use the Internet, online communications systems, or computer technology to sexually exploit children. The ICAC Program is a national network of 61 coordinated task forces engaging in proactive investigations, forensic investigations, and criminal prosecutions. Project Safe Childhood also helps to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Minneapolis Felon Pleads Guilty to Making Threats Against Hennepin County Government Officials, Illegal Possession of FirearmsRead the Press Release
MINNEAPOLIS – A Minneapolis man has pleaded guilty to making threats against Hennepin County employees and illegally possessing a firearm as a felon, announced U.S. Attorney Andrew M. Luger.
According to court documents, on June 24, 2021, the Hennepin County District Court issued an arrest warrant for Peter Robert Berry, 60, after he failed to appear in court for a hearing. Berry called an employee of Hennepin County Community Corrections to ask questions about his court appearance. During the call Berry became angry and began yelling and threatened to “shoot up the place.” That same day, Berry left a voice message for a Hennepin County Probation Officer in which Berry demanded a call back before he starts “killing everybody.” On June 25, 2021, Berry called a Hennepin County Service Center employee who informed him of the active warrant for his arrest due to his failure to appear in court. Upon learning about the warrant, Berry stated that he was going to “come down and kill everybody, all the judges, clerks, and deputies.” On June 29, 2021, Berry left a voice message for a Hennepin County Public Defender in which Berry expressed his dissatisfaction with the representation he received in his criminal case and threatened that people were going to die and stated that he knew where the public defender lived.
According to court documents, on July 10, 2020, and on April 7, 2021, Berry unlawfully possessed three firearms, including a Beretta .25 caliber semi-automatic pistol, a Smith and Wesson 9 mm pistol, and a Diamondback DB15 rifle. Because Berry has prior felony convictions in Hennepin, Dakota, and Ramsey Counties, he is prohibited under federal law from possessing firearms or ammunition at any time.
Berry pleaded guilty today before U.S. District Judge Eric C. Tostrud to one count of possessing a firearm as a felon and one count of interstate transmission of a threat. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the FBI, the Hennepin County Sheriff’s Office, and the Minneapolis Police Department.
Assistant U.S. Attorney Allison K. Ethen is prosecuting the case.
Man Who Acted as Russian Agent Sentenced to Federal Prison TermRead the Press Release
Hector Alejandro Cabrera Fuentes, 36, a Mexican citizen who had resided in Singapore and spent significant time in Russia, was sentenced yesterday in the Southern District of Florida to four years and one day in prison for acting within the United States on behalf of a foreign government without notifying the Attorney General.
According to court documents, since 2019, Fuentes acted under the direction and control of someone he believed to be a Russian government official. Instructed by this Russian official, Fuentes arranged for an intermediary to lease a unit in a residential building in Miami-Dade County where a U.S. person, who had previously provided information about the Russian government to the U.S. government, resided.
Furthermore, at the direction of the same Russian official, Fuentes traveled to Miami in February 2020 to obtain the license plate number and parking location of the U.S. person’s car to provide to the Russian official upon his next trip to Russia.
Fuentes’s travel companion, at his request, took a photo of the U.S. person’s car. A WhatsApp message from Fuentes’s travel companion to Fuentes contained a close-up photograph of the specified U.S. person’s car. The manner in which Fuentes communicated with the Russian government official and his undertakings in this case are consistent with the tactics of the Russian intelligence services for spotting, assessing, recruiting and handling intelligence assets and sources.
Fuentes had not notified the U.S. Attorney General, as required by law, that he was acting in the United States as an agent of the Russian government.
Fuentes pleaded guilty in February 2022. U.S. District Judge Donald M. Middlebrooks for the Southern District of Florida imposed the sentence, which included an order that the defendant be removed from the United States to Mexico promptly upon his release from confinement.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, and Director of Field Operations Vernon T. Foret of the U.S. Customs and Border Protection (CBP) Miami Field Office made the announcement.
FBI and CBP investigated the case.
Assistant U.S. Attorney Michael Thakur of the Southern District of Florida and Trial Attorney Matthew J. McKenzie of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.
Man Who Acted as Russian Agent Sentenced to Federal PrisonRead the Press Release
Miami, Florida – Hector Alejandro Cabrera Fuentes, 36, a Mexican citizen who had resided in Singapore, was sentenced yesterday in the Southern District of Florida to four years and one day in prison for acting within the United States on behalf of a foreign government without notifying the Attorney General.
Fuentes is a Mexican citizen who has spent significant time in Russia. According to court documents, since 2019, Fuentes acted under the direction and control of someone he believed to be a Russian government official. Instructed by this Russian official, Fuentes arranged for an intermediary to lease a unit in a residential building in Miami-Dade County where a U.S. person, who had previously provided information about the Russian government to the United States Government, resided.
Furthermore, at the direction of the same Russian official, Fuentes traveled to Miami in February 2020 to obtain the license plate number and parking location of the U.S. person’s car to provide this information to the Russian official upon his next trip to Russia.
Fuentes’s travel companion, at his request, took a photo of the U.S. person’s car. WhatsApp message from Fuentes’s travel companion to Fuentes contained a close-up photograph of the specified U.S. person’s car. The manner in which Fuentes communicated with the Russian government official and his undertakings in this case are consistent with the tactics of the Russian intelligence services for spotting, assessing, recruiting, and handling intelligence assets and sources.
Fuentes had not notified the United States Attorney General, as required by law, that he was acting in the United States as an agent of the Russian government.
Fuentes pled guilty to the charge in February. U.S. District Judge Donald M. Middlebrooks imposed the sentence, which included an order that the defendant be removed from the United States to Mexico promptly upon his release from confinement.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida; Matthew G. Olsen, Assistant Attorney General for National Security; George L. Piro, Special Agent in Charge, FBI, Miami Field Office; and Vernon T. Foret, Director of Field Operations, U.S. Customs and Border Protection (CBP), Miami Field Office, made the announcement.
FBI and CBP investigated the case.
Assistant U.S. Attorney Michael Thakur of the Southern District of Florida and Trial Attorney Matt McKenzie of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 20-cr-20129.
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Luzerne County Man Indicted on Firearms OffenseRead the Press Release
SCRANTON -The United States Attorney’s Office for the Middle District of Pennsylvania announced that Antonio Menzell Clark, age 36, of Ashley, Pennsylvania, was indicted yesterday by a federal grand jury on a firearm charge.
According to United States Attorney Gerard M. Karam, the indictment alleges that on January 12, 2022, Clark possessed a handgun when he was prohibited from possessing a firearm due to a prior felony conviction.
The case was investigated by the Bureau of Alcohol, Firearms, Tobacco and Explosives, the United States Marshal Service and the Luzerne County Drug Task Force. Assistant U.S. Attorney Jenny P. Roberts is prosecuting the case.
The maximum penalty under federal law for this offense is 10 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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Lorain Man Sentenced to More Than 14 and a Half Years in Prison for Possession with Intent to Distribute Fentanyl, Fentanyl Analogues, Heroin and CocaineRead the Press Release
Brandon J. Sharp, 34, of Lorain, Ohio, was sentenced to more than 14 and a half years in prison on Tuesday, June 21, 2022, by U.S. District Judge Donald C. Nugent after he was convicted at trial of four counts of possession with the intent to distribute controlled substances.
According to court documents and evidence presented at trial, on June 29, 2020, law enforcement officers with the Lorain Police Department received an anonymous tip regarding the location of various amounts of narcotics stored under the bumper of a vehicle. Police responded to the site and confirmed the presence of the drugs.
While police were investigating, a woman arrived at the scene and explained to officers that the vehicle was used by her boyfriend, Defendant Brandon Sharp, for work. Sharp later spoke to police via phone and confirmed that the vehicle belonged to his employer.
Law enforcement investigators then obtained and executed a search warrant for the vehicle. During the search, investigators seized various amounts of fentanyl, fentanyl analogues, heroin, cocaine and over $2,000 in U.S. currency. Investigators also discovered a cell phone linked to Sharp and various documents and pieces of mail bearing Sharp’s name, phone number and address in the vehicle.
Sharp was later arrested on December 28, 2020.
This case was investigated by the Lorain Police Department and the FBI. This case was prosecuted by Assistant U.S. Attorneys Robert J. Kolansky and Vanessa V. Healy.
This case is part of Operation Synthetic Opioid Surge (S.O.S.)., an initiative that seeks to reduce the supply of deadly synthetic opioids and to identify wholesale distribution networks and international and domestic suppliers in Lorain County.
Level 3 Registered Sex Offender who Extorted 11-Year-Old for Explicit Photos via Snapchat Pleads GuiltyRead the Press Release
BOSTON – A Lowell man pleaded guilty today in federal court in Boston to receiving child pornography he extorted from a minor over Snapchat.
Chayanne Nieves, 24, pleaded guilty to one count of receipt of child pornography. U.S. District Court Judge Indira Talwani scheduled sentencing for Sept. 21, 2022. Nieves was arrested and charged in August 2021, and has remained in custody since.
“Mr. Nieves committed a heinous crime that victimized a young, innocent child. For that, he now faces federal prison,” said United States Attorney Rachael S. Rollins. “The dangers of internet and social media anonymity remain prevalent, but my office is determination to protect the safety, innocence and wellbeing of our children. In collaboration with our law enforcement partners, my office will stop at nothing to identify and hold predators like this defendant accountable – regardless of where they try to hide. That is a promise.”
“Nieves, already a registered sex offender, harassed and threatened a child online, using fear to extort her—a scenario becoming all too common,” said Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston. “Cases like this are every parent’s nightmare, but with this plea, Nieves is off the streets. HSI continues to work tirelessly to uncover internet predators like Nieves and, with the help of our partners, keep our kids safe online.”
“This case serves as a reminder that predators continue to target and exploit our children online. It's important for parents to be active participants in their young children's online lives, to speak with children about the potential dangers present on the internet, and to alert the authorities to any potential suspicious or criminal conduct. The Vermont State Police commends the members of law enforcement who investigated and prosecuted this case. We are grateful for these partnerships across state lines and among local, state and federal agencies that help keep our communities and our corners of cyberspace that much safer for everyone, especially our children,” said Major Dan Trudeau, Commander of the Vermont State Police’s Criminal Division.
From around Nov. 30, 2020 until Dec. 3, 2020, Nieves communicated on Snapchat with an 11-year-old child in Vermont. During those communications, Nieves threatened and extorted the victim to send him nude photographs of themself. During a search of Nieves’s residence in Lowell, Nieves confirmed that the Snapchat account used to communicate with the child was his. Nieves is a Level 3 registered sex offender.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
Based on Nieves’s criminal history, the charge of receipt of child pornography provides for a sentence of at least 15 years and up to 40 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Rollins, HSI SAC Millhollin and Major Trudeau made the announcement today. Valuable assistance was provided by the Lowell Police Department. Assistant U.S. Attorney Charles Dell’Anno of Rollins’ Major Crimes Unit is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Laredo residents sent to prison for extortion schemeRead the Press Release
LAREDO, Texas – Two individuals have been ordered to federal prison for aiding and abetting in the transmission of messages threatening to extort money from another, announced U.S. Attorney Jennifer B. Lowery.
Hector Jose Lopez, 31, pleaded guilty Sept. 29, 2021, while Nancy Yvette Garcia, 33, admitted to the charges Oct. 14, 2021.
Today, U.S. District Judge Marina Garcia Marmolejo imposed a 96-month term of imprisonment for Lopez, while Garcia received 188 months. Garcia, also currently on supervised release for a 2018 conviction for conspiracy to transport aliens, received an additional four months which will be served concurrently to the current offense. Both must also serve three years of supervised release following their sentences. In handing down the prison terms, Judge Marmolejo noted that Lopez should make better choices if he wanted to live in the free world, further stating that he had no respect for the law or humanity.
On Jan. 26, 2021, a marijuana deal involving a 16-year-old male had gone awry. Shortly thereafter, Garcia and another individual took him to Lopez’s apartment. Garcia claimed they needed to keep him hostage in order to get their marijuana or money back. Lopez held him there in exchange for $500.
At the time of his plea, Lopez admitted he asked the victim for some of his login information stored on his phone which he then sent to Garcia via WhatsApp.
In the early morning hours of Jan. 27, 2021, someone posted photographs to the victim’s Facebook account showing visible injuries and referencing what happens to people who steal. The mother of the victim then received a message on Facebook Messenger accusing her son of stealing marijuana.
Shortly thereafter, she received a phone call from a Mexican phone number demanding $30,000 for the release of her son. Throughout the course of the day, the mother received text messages or phone calls asking about the status of the ransom and was told her son would be killed if the demand wasn’t met.
On Jan. 28, 2021, the victim managed to escape and contacted law enforcement.
Lopez and Garcia will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation with assistance from the Laredo Police Department. Assistant U.S. Attorney Brian Bajew prosecuted the case.
Kenyon Bookkeeper Sentenced to More Than 9 Years Prison for $881,000 Employer Embezzlement and Tax Fraud SchemeRead the Press Release
MINNEAPOLIS – A Kenyon woman was sentenced to 111 months in prison, three years of supervised release, and $1,058,777.18 in restitution for embezzling more than $881,000 from the owners of several Denny’s restaurant franchises around the Twin Cities and from a family-owned construction company in Rochester, announced United States Attorney Andrew M. Luger.
According to court documents, in 2014, Kimberly Sue Peterson-Janovec, 59, became the Director of Operations for MI5, Inc., a Denny’s franchisee that owned and operated eight Denny’s franchises in Minnesota and Wisconsin. In this role, Peterson-Janovec had extensive managerial oversight for all eight restaurants, including payroll, cash deposits, vendor and contractor billing, marketing, and coordinating reimbursements from Denny’s Corporate.
According to court documents, from April 2014 through July 2019, Peterson-Janovec used her position to embezzle funds from MI5 and Denny’s Corporate by generating and submitting false requests for vendor payments and then diverting those payments for her own use and benefit. Peterson-Janovec also manipulated the company’s payroll system to issue herself unauthorized compensation using the names of employees who no longer worked for the company. As part of the scheme, Peterson-Janovec falsified records, created fake email accounts, and generated fake email traffic in which she impersonated employees of various purported vendors. In total, Peterson-Janovec received approximately $336,000 in bogus vendor payments and approximately $20,000 in fraudulently issued payroll submissions using the identities of other people. In addition, at sentencing, the Court held Peterson-Janovec responsible for stealing an additional $181,000 in cash deposits from MI5.
According to court documents, in July 2019, MI5, Inc., discovered aspects of Peterson-Janovec’s fraud and terminated her employment. After her termination, in early 2020, Peterson-Janovec lied about her work experience to get another bookkeeping job with a family-owned construction company in Rochester, identified as Company 3. Peterson-Janovec started as its bookkeeper, earned Company 3’s trust, and eventually was promoted to its general manager. Peterson-Janovec used her position to devise and execute a similar fraud scheme on Company 3. She used her access to Company 3’s QuickBooks to issue herself numerous payments, and she did so in a manner that made the payments appear as if they were going to Company 3 vendors. This netted Peterson-Janovec another $350,000 in as little at 18 months.
In total, Peterson-Janovec stole more than $881,000 from her employers, which she used to finance her lifestyle and hobbies, including a substantial down payment on her personal residence. Peterson-Janovec also committed tax crimes during every year of her fraud scheme, which led to over $160,000 in unpaid taxes.
Peterson-Janovec was sentenced today in U.S. District Court before Chief Judge John R. Tunheim. In handing down the sentence, Judge Tunheim described Peterson-Janovec’s conduct as “brazen” and motivated by “greed,” and highlighted the need to protect the public from further criminal activity carried out by the defendant.
On February 22, 2022, Peterson-Janovec was convicted by a federal jury on 24 counts of fraud, aggravated identity theft, and tax crimes. Notably, Peterson-Janovec has a prior federal fraud conviction from 1998, when she embezzled more than $950,000 from another former employer.
This case was the result of an investigation conducted by the United States Postal Inspection Service, the Burnsville Police Department, and the Criminal Investigation Division of the IRS.
Assistant U.S. Attorneys Jordan L. Sing and Kimberly A. Svendsen prosecuted the case.
Justice Department Secures Agreement with Alaska Under National Voter Registration ActRead the Press Release
The Justice Department announced today that it has secured an agreement with the State of Alaska and state officials to resolve claims that driver license transactions did not consistently provide certain voter registration opportunities required by Section 5 of the National Voter Registration Act of 1993 (NVRA).
Section 5 of the NVRA, also known as the “motor voter” provision, requires covered states to provide voter registration opportunities for federal elections when people apply for or renew driver’s licenses or other identification documents through state motor vehicle offices. The NVRA also requires that changes of address submitted for driver’s license or identification document purposes update voter registration information unless the applicant opts out of the update.
The Justice Department’s investigation found that applications and renewals for Alaska’s driver’s licenses and identification documents did not consistently serve as voter registration applications for federal office as required by the NVRA. Likewise, the procedures by which citizens notify the state’s motor vehicle office that their address had changed did not serve as a notification of change of address for voter registration purposes.
Under the terms of the settlement, Alaska will fully integrate a voter registration opportunity into all applications for driver’s licenses and other identification documents. Alaska will also ensure that all change of address information submitted for driver’s licenses or state-issued identification purposes will be used to update voters’ address information unless a voter declines to update their voter registration. Alaska has also agreed to appoint a Division of Motor Vehicles NVRA coordinator and NVRA site coordinators for each Division of Motor Vehicles office.
“The ability to register to vote and to update voter registration information easily and conveniently is essential in a robust, inclusive democracy,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This agreement is part of our commitment to ensuring that eligible voters across Alaska have access to voter registration opportunities required by federal law. We will continue working to ensure that states and counties across the country are complying with the mandates of the National Voter Registration Act and other federal voting rights laws. We thank state officials for agreeing to undertake actions we deem necessary to achieve compliance with the mandates of the NVRA.”
“I commend our many state officials for their hard work and dedication in reaching this agreement,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “It is vital for every citizen in our democracy to have a full and fair opportunity to participate in the electoral process. This includes the ability of every citizen to register to vote and to update their registration information with the ease of access that the law requires.”
More information about the NVRA and other federal voting laws is available on the Department of Justice website at www.justice.gov/crt/about/vot/. Complaints under the federal voting rights laws may be reported to the Civil Rights Division at https://civilrights.justice.gov/.
Justice Department Finds Maine in Violation of ADA for Over-Institutionalization of Children with DisabilitiesRead the Press Release
On the 23rd anniversary of the landmark Supreme Court decision in Olmstead v. L.C., the Department of Justice announced today that it has concluded that Maine unnecessarily segregates children with mental health and/or developmental disabilities, in psychiatric hospitals, residential treatment facilities, and a state-operated juvenile detention facility. The Olmstead decision held that people with disabilities have a right to live and receive services in the most integrated setting appropriate to their needs — typically in their homes and communities instead of in institutions.
Disability Rights Maine, the protection and advocacy agency for people with disabilities in Maine, filed a complaint with the department on behalf of a group of children with disabilities, alleging that these children cannot access needed community-based services, resulting in their institutionalization or risk of institutionalization in violation of the Americans with Disabilities Act (ADA) and the Supreme Court’s decision in Olmstead. The department’s findings, detailed in a letter to Maine Governor Janet Mills and Attorney General Aaron Frey, follow a thorough investigation into the complaint and the State’s system of care for children with behavioral health needs.
Many children with disabilities in Maine, especially those in rural areas or with more intensive needs, are unable to live at home with their families due to a lack of community-based behavioral health services. These services can include assistance with daily activities, behavior management, and individual or family counseling. Community-based behavioral health services also include crisis services that can prevent a child from being institutionalized during a mental health crisis. Absent these services, Maine children with disabilities enter emergency rooms, come into contact with law enforcement, and remain in institutions when many of them could be at home if Maine put in place sufficient community-based services.
“Children with disabilities deserve the opportunity to live at home with the services they need and grow up in the community alongside their nondisabled peers,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “With the increase in children’s mental health needs during the pandemic, it is more important than ever to provide support to children and families. We look forward to bringing Maine into compliance with federal law and achieving a resolution that will benefit children with disabilities across the state.”
“Access to local community-based services for children with mental health and/or developmental disabilities is a critical need for families across Maine,” said U.S. Attorney Darcie N. McElwee for the District of Maine. “I hope that the violations identified by the Justice Department can be remedied so that these children and their families are able to obtain quality services in their own communities.”
The department’s investigation found a number of barriers to accessing children’s behavioral health services in the community, including lengthy waitlists, an insufficient provider network, inadequate crisis services, and a lack of support for foster care parents who provide specialized care to children with behavioral health needs. As a result, Maine children must enter in- and out-of-state facilities, or even the state-operated juvenile detention facility, Long Creek Youth Development Center, to receive behavioral health services.
This investigation was conducted by the Department of Justice’s Civil Rights Division Disability Rights Section with the assistance of the U.S. Attorney’s Office for the District of Maine. The full findings letter can be found at https://www.justice.gov/crt/disability-rights-cases.
The Justice Department’s statement commemorating the Olmstead anniversary can be found here. Additional information about the Civil Rights Division’s Olmstead enforcement is available on its website at https://www.ada.gov/olmstead/.
Huntington Man Sentenced to Prison for Fentanyl CrimeRead the Press Release
HUNTINGTON, W.Va. – Ian Wyatt Justice, 20, of Huntington, was sentenced to six years in prison, to be followed by four years of supervised release, for possession with intent to distribute 40 grams or more of fentanyl.
According to court documents and statements made in court, on March 16, 2021, law enforcement officers were conducting a drug investigation and observed Justice enter a Charleston Avenue residence in Huntington. The officers executed a search warrant at the residence on that date and Justice, who was present just prior to the search, was arrested. During the search, officers seized a number of items, including fentanyl, three firearms, and items used to prepare fentanyl for distribution. Justice admitted that he intended to distribute the fentanyl and that he had been selling fentanyl in Huntington in the months leading up to the search.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Huntington Police Department
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Joseph F. Adams prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-9.
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Grant County man facing drug and gun chargesRead the Press Release
ELKINS, WEST VIRGINIA – Austin Curtis Harman, of Petersburg, West Virginia, was indicted today on drug and firearms charges, United States Attorney William Ihlenfeld announced.
Harman, 22, was indicted on one count of “Possession with Intent to Distribute Methamphetamine” and one count of “Unlawful Possession of a Firearm.” Harman is accused of having methamphetamine in January 2022 in Grant County. Harman, a person prohibited from having a firearm because of a felony conviction, is also accused of having a 9mm pistol.
Harman faces up to 20 years of incarceration and a fine of up to $1,000,000 for the drug charge and faces up to 10 years of incarceration and a fine of up to $250,000 for the firearms charge. 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 Stephen D. Warner is prosecuting the case on behalf of the government. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Washington State Employment Security employee pleads guilty to stealing pandemic unemployment benefits for kickbacksRead the Press Release
Tacoma – A former employee of Washington State’s Employment Security Department pleaded guilty today in U.S. District Court in Tacoma to three federal felonies for his scheme to exploit his employment for personal enrichment and to fraudulently distribute at least $360,000 in pandemic-related unemployment benefits, announced U.S. Attorney Nick Brown. Reyes De La Cruz, III, 48, of Moses Lake, Washington, personally enriched himself by at least $130,000 with his scheme. De La Cruz was arrested September 24, 2021, in Moses Lake and has been in federal custody since his arrest.
“We remain committed to working with our law enforcement partners to prosecute those who used the cover of the pandemic to unlawfully enrich themselves,” said U.S. Attorney Brown. “In this case, De La Cruz’s betrayal of public trust during a time of national crisis is particularly egregious.”
According to records filed in the case, De La Cruz was hired as an intake agent in April 2020 to help the Employment Security Department (ESD) deal with the crush of filings for pandemic unemployment benefits. De La Cruz had previously worked for ESD, from 1996 to 2003.
Between July 3, 2020, and March 15, 2021, De La Cruz used his access to the ESD claims database to defraud the benefits system in multiple ways. In at least ten instances, De La Cruz accepted bribes in exchange for engineering benefit payments for his friends, family, or acquaintances by making false entries in the claims database. In many cases, the person did not qualify for benefits, but De La Cruz manipulated the claims database so that the claimants received lumpsum retroactive payments that sometimes amounted to tens of thousands of dollars. The claimants would then pay De La Cruz a portion of the lumpsum. The bribes ranged from $500-$6,500. In total, De La Cruz enriched himself nearly $21,000 through kickback payments.
In some instances, when claimants refused or resisted paying De La Cruz, he threatened to terminate the claim if they did not pay him.
De La Cruz filed at least four claims using other people’s personal information without authorization and then had the benefits paid to debit cards that were mailed to Moses Lake, Washington, addresses where De La Cruz could retrieve them. Even after his employment with ESD terminated on October 1, 2020, De La Cruz attempted to restart claims payments to these debit cards to take advantage of additional federal pandemic benefits. De La Cruz went so far as to impersonate a claimant in recorded phone calls with ESD and a bank. He impersonated another claimant in handwritten correspondence that he then faxed to ESD. In this way he defrauded ESD of more than $113,000.
Under the terms of the plea agreement, prosecutors will ask for no more than 75 months in prison when De La Cruz is sentenced on September 16, 2022.
“Reyes De La Cruz was hired by the Washington Employment Security Department to help process an unprecedented increase in pandemic-related unemployment insurance claims. Instead, he illegally enriched himself by diverting vital taxpayer resources away from those in need of unemployment benefits. Protecting the integrity of the unemployment insurance program remains one of our highest priorities, and we will continue to work with our law enforcement partners to safeguard the unemployment benefits for those who need it, especially during this critical time,” said Quentin Heiden, Special Agent-in-Charge of the U.S. Department of Labor, Office of Inspector General, Los Angeles Region.
The Employment Security Department uncovered evidence of fraud, terminated De La Cruz, and referred the case to the Department of Labor Office of Inspector General. The FBI joined the investigation.
Wire fraud that relates to a presidentially declared major disaster or emergency is punishable by up to 30 years in prison. Bribery of an agent receiving federal funds is punishable by up to 10 years in prison. Aggravated identity theft is punishable by a two-year sentence consecutive to any other sentence imposed in the case.
This case is being prosecuted by Assistant United States Attorneys Cindy Chang and Seth Wilkinson.
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.
Former Valdosta State Prison Supervisory Correctional Officer Pleads Guilty to Felony for Attempted Cover-Up of Assault on InmateRead the Press Release
VALDOSTA, Ga. – A former supervisory correctional officer at Valdosta State Prison pleaded guilty today in federal court for attempting to conceal an assault on an inmate.
Geary Staten, 31, pleaded guilty to misprision of a felony for attempting to conceal an assault on an inmate incarcerated at the facility before U.S. District Judge Hugh Lawson. Staten faces a statutory maximum three years in prison and a $250,000 fine. Sentencing is scheduled for Sept. 21. There is no parole in the federal system.
“It is important that corrections officers and their supervisors are held accountable for using unlawful, unnecessary, and unwarranted force against inmates, including those who fail to report such civil rights violations and take steps to cover them up,” said Assistant Attorney General Kristen Clarke. “The Civil Rights Division will continue to hold correctional officials accountable when they violate the civil rights of incarcerated individuals.”
“Many corrections officers do honorable work, but officers and their supervisors who turn a blind eye or even cover-up crimes against the people under their watch are committing a serious offense that our office will simply not ignore,” said U.S. Attorney Peter D. Leary. “Prisoners should serve their sentences without being assaulted or extorted; our office will work to uphold the civil rights of all people, including the incarcerated.”
“By violating his sworn oath as a corrections officer, Staten betrayed every honest, hardworking officer, and stooped to behaving like the criminals he was sworn to protect,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The abuse of inmates by prison staff will not be tolerated by the FBI and will always be pursued for prosecution.”
According to court documents and statements made in connection with the guilty plea, while Lieutenant Staten was on duty as a supervisory correctional officer at Valdosta State Prison (VSP), several VSP correctional officers unlawfully used force on inmate F.G. in violation of the inmate’s constitutional rights. Staten was aware of the assault but instead of reporting or otherwise notifying law enforcement authorities of these felony violations, Lt. Staten took steps to conceal the offense by (1) directing the involved officers (Officer Brian Ford, Officer Jamal Scott, and Sergeant Patrick Sharpe, all of whom have pleaded guilty to federal offenses in connection with the incident) not to write any report to VSP officials or any other Georgia Department of Corrections officials regarding the unlawful use of force; and (2) failing to write such a report himself, despite knowing such a report was required.
The case was investigated by FBI.
Assistant U.S. Attorney Michael Solis of the U.S. Attorney’s Office for the Middle District of Georgia and Trial Attorneys Katherine G. DeVar and Nicole Raspa of the Department of Justice’s Civil Rights Division are prosecuting the case.
Former Tallahassee Mayor and Gubernatorial Candidate and Associate Charged with Conspiracy, Wire Fraud, and Making False StatementsRead the Press Release
TALLAHASSEE, FLORIDA – A federal grand jury has returned a twenty-one count indictment against Andrew Demetric Gillum, 42, and Sharon Janet Lettman-Hicks, 53, both of Tallahassee, Florida. The indictment was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
The Indictment alleges that between 2016 and 2019, defendants Gillum and Lettman-Hicks conspired to commit wire fraud, by unlawfully soliciting and obtaining funds from various entities and individuals through false and fraudulent promises and representations that the funds would be used for a legitimate purpose. The Indictment further alleges the defendants used third parties to divert a portion of those funds to a company owned by Lettman-Hicks, who then fraudulently provided the funds, disguised as payroll payments, to Gillum for his personal use. Both defendants are charged with 19 counts of wire fraud. Gillum is also charged with making false statements to agents of the Federal Bureau of Investigation.
The initial appearance is scheduled for Wednesday, June 22, 2022, at 2:00 pm, at the United States Courthouse in Tallahassee in the Magistrate Judge’s Courtroom on the main floor.
The maximum terms of imprisonment for the offenses are as follows:
- 5 years: Making False Statements
- 20 years: Conspiracy to Commit Wire Fraud
- 20 years: Wire Fraud
The investigation was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Stephen M. Kunz and Andrew J. Grogan.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
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, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Former Prince George’s County Police Department Lieutenant Pleads Guilty to Federal Tax Evasion Charge for Failing to Report More Than $1.3 Million in Income from His Security BusinessRead the Press Release
Greenbelt, Maryland – Edward Scott Finn, age 48, of Dunkirk, Maryland, pleaded guilty today to a federal tax evasion charge. Finn is a former Lieutenant with the Prince George’s County Police Department and owned and operated Edward Finn Inc. (EFI), a private company.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement and other court documents, from approximately December 26, 1995 to April 26, 2021, Finn was a member of the Prince George’s County Police Department (PGPD). Members of the PGPD were allowed to work part-time outside employment in addition to their full-time duties, known as Secondary Law Enforcement Employment (SLEE). According to the plea agreement and court documents, from 2014 to 2021, Finn used EFI and employed off-duty law enforcement officers to provide security services to apartment complexes and other businesses, primarily in Prince George’s and Montgomery Counties, to manage and operate his SLEE business.
Finn admitted that he underreported a total of more than $1.3 million of EFI income on his 2014 through 2019 individual income tax returns. During that time frame, Finn deposited checks payable to EFI into personal bank accounts or non-EFI bank accounts over which Finn had signature authority. Finn also created false business expenses to lower his tax due by writing checks to relatives and friends for purported services performed; and used business funds to purchase a boat, a car, and other items for his personal use. This underreported income resulted in a total tax loss to the government of $367,765.
Finn admitted that on April 22, 2021, as federal agents announced their presence at his front door to execute a search warrant on his residence, Finn initiated the erasure and resetting of his cellphone. Finn then opened the front door to his residence and law enforcement recovered the phone in the master bedroom.
Finn faces a maximum sentence of five years in federal prison for tax evasion. As detailed in his plea agreement, Finn will also be required to pay restitution in the full amount of the loss, $367,765. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge Paul W. Grimm has scheduled sentencing for Finn on October 7, 2022 at 2:00 p.m.
United States Attorney Erek L. Barron commended the IRS-CI and the FBI and for their work in the investigation and thanked the Prince George’s County Police Department and the Prince George’s County State’s Attorney’s Office for their assistance. Mr. Barron thanked Assistant U.S. Attorney Thomas M. Sullivan, who is prosecuting this case.
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Former Postal Employee Charged with Embezzling the MailRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that PATRICK EZELL WILSON, age 51, of Bogalusa, Louisiana was charged on June 21, 2022 with embezzling the mail in a bill of information filed today in the Eastern District of Louisiana.
According to documents filed in federal court, PATRICK EZELL was employed by the United States Postal Service as a letter carrier in Bogalusa when he was apprehended stealing mail he was entrusted to handle for the Postal Service.
The maximum penalty for the offense is five years imprisonment and/or a fine of up to $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to the victim followed by up to three years of supervised release, and a $100 mandatory special assessment fee.
U.S. Attorney Evans reiterated that the bill of information 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 United States Postal Service, Office of the Inspector General in investigating this matter. Assistant United States Attorney Richard R. Pickens, II is in charge of the prosecution.
Former Head of Corporate Communications of $21 Billion Biopharmaceutical Company Admits Insider TradingRead the Press Release
NEWARK, N.J. – The former head of corporate communications for a biopharmaceutical company today admitted her role in an insider trading scheme, U.S. Attorney Philip R. Sellinger announced.
Lauren S. Wood, 33, of Washington, D.C., pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging her with securities fraud. Stemming from the same alleged conduct, Usama Malik, also of Washington, D.C., was previously charged in a three-count indictment with insider trading, securities fraud, and securities fraud conspiracy.
According to documents filed in this case and statements made in court:
From 2018 through October 2020, Malik was the chief financial officer (CFO) of a New Jersey-based biopharmaceutical company listed on the NASDAQ Stock Exchange. On April 6, 2020, the company publicly announced for the first time that its breast cancer drug – an antibody-based drug designed to treat certain breast cancer patients who had very limited treatment options beyond chemotherapy – had proven effective in pre-market clinical trials. In October 2020, another biopharmaceutical company acquired the company for which Malik worked for approximately $21 billion.
Malik was among the first, and one of the few, employees who received the material non-public information about the breast cancer drug before the public announcement. Within minutes of obtaining that information, Malik passed it along to Wood, who lived with Malik at the time and was formerly employed by the same company. Before April 6, 2020, and within hours of receiving the insider information from Malik, Wood placed an order for approximately 7,000 shares of the company’s stock, despite the fact that during the same time period the company’s stock was downgraded by financial experts. After the company announced that its cancer drug had proven effective in pre-market clinical trials, its stock price increased. After selling her shares, Wood more than doubled her investment, realizing gross profits of $213,618.
The securities fraud charge to which Wood pleaded guilty carries a potential penalty of 20 years in prison and a $5 million fine. Sentencing is scheduled for Nov. 21, 2022.
The U.S. Securities and Exchange Commission (SEC) also filed a civil complaint on Dec. 1, 2021 based on the same conduct.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Jesse Levine in Newark, with the investigation leading to the charges. He also thanked the SEC Enforcement Division, under the leadership of Director Gurbir S. Grewal, and the FBI, in the District of Columbia and the Eastern District of Virginia, for their assistance.
The government is represented by Assistant U.S. Attorney Joshua L. Haber, Chief of the Economic Crimes Unit.
The charges and allegations against Malik are merely accusations, and he is presumed innocent unless and until proven guilty.
Former Georgia Supervisory Correctional Officer Pleads Guilty to Felony for His Role in Attempting to Cover up Assault on an InmateRead the Press Release
Geary Staten, 31, a former supervisory correctional officer at Valdosta State Prison (VSP), pleaded guilty today in federal court to one count of misprision of a felony for his role in attempting to cover up an assault on an inmate incarcerated at the facility.
According to court documents and statements made in connection with the guilty plea, while Lieutenant Staten was on duty as a supervisory correctional officer at VSP, several VSP correctional officers unlawfully used force on inmate F.G. in violation of the inmate’s constitutional rights. Staten was aware of the assault but instead of reporting or otherwise notifying law enforcement authorities of these felony violations, Staten took steps to conceal the offense by (1) directing the involved officers (Officer Brian Ford, Officer Jamal Scott, and Sergeant Patrick Sharpe, all of whom have pleaded guilty to federal offenses in connection with the incident) not to write any report to VSP officials or any other Georgia Department of Corrections officials regarding the unlawful use of force; and (2) failing to write such a report himself, despite knowing such a report was required.
“It is important that corrections officers and their supervisors are held accountable for using unlawful, unnecessary, and unwarranted force against inmates, including those who fail to report such civil rights violations and take steps to cover them up,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “The Civil Rights Division will continue to hold correctional officials accountable when they violate the civil rights of incarcerated individuals.”
“Many corrections officers do honorable work, but officers and their supervisors who turn a blind eye or even cover-up crimes against the people under their watch are committing a serious offense that our office will simply not ignore,” said U.S. Attorney Peter D. Leary of the Middle District of Georgia. “Prisoners should serve their sentences without being assaulted or extorted; our office will work to uphold the civil rights of all people, including the incarcerated.”
“By violating his sworn oath as a corrections officer, Staten betrayed every honest, hardworking officer, and stooped to behaving like the criminals he was sworn to protect,” said Special Agent in Charge Keri Farley of FBI Atlanta. “The abuse of inmates by prison staff will not be tolerated by the FBI and will always be pursued for prosecution.”
Staten faces a maximum statutory penalty of up to three years in prison and a fine of up to $250,000. A sentencing hearing has been scheduled for Sept. 21.
Assistant Attorney General Clarke, U.S. Attorney Leary and FBI Atlanta Special Agent in Charge Farley made the announcement. The case was investigated by the FBI and a local task-force-officer partner, and was prosecuted by Trial Attorneys Katherine G. DeVar and Nicole Raspa of the Justice Department’s Civil Rights Division, with assistance from Assistant U.S. Attorney Michael Solis for the Middle District of Georgia.
Former Executive Director of Grayslake Chamber of Commerce Charged with Misappropriating $300,000Read the Press Release
CHICAGO — A former Executive Director of the Grayslake Area Chamber of Commerce and Industry in Grayslake, Ill., was indicted today on federal fraud charges for allegedly misappropriating at least $300,000 from the organization.
KAREN CHRISTIAN-SMITH served as the Chamber’s Executive Director from 2006 to 2019. From 2013 to 2019, Christian-Smith issued checks from the Chamber’s bank accounts to herself and deposited them into her personal accounts, according to the indictment returned in U.S. District in Chicago. She then spent the money for her own personal use and benefit, the indictment states.
Christian-Smith attempted to cover up the fraud by submitting false and misleading financial reports to the Chamber’s Board of Directors and false payroll reports to the Chamber’s accounting firm, the charges allege. She also filed with the IRS false and misleading tax returns that she knew substantially underreported the amount of money she had fraudulently paid herself from the Chamber’s bank accounts, the indictment states. As a result of the scheme, Christian-Smith fraudulently misappropriated at least $300,000 in funds belonging to the Chamber, the indictment alleges.
The indictment charges Christian-Smith, 56, of Round Lake Beach, Ill., with six counts of wire fraud. Arraignment in federal court in Chicago has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Phillip Perlini, Chief of the Grayslake Police Department. The government is represented by Assistant U.S. Attorney Morris Pasqual.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of wire fraud is punishable by up to 20 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Florida man admits to sex offender chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jason Lewis Bell, of Keystone Heights, Florida, has admitted to a failure to register charge, United States Attorney William Ihlenfeld announced.
Bell, 35, pleaded guilty today to one count of “Failure to Update Sex Offender Registration.” Bell, a person required to register as a sex offender, admitted to not updating his registration when he lived in Marion County from November 2020 to February 2021.
Bell 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 Sarah E. Wagner is prosecuting the case on behalf of the government. The U.S. Marshals Service investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Fentanyl Dealer Sentenced to 20 Years in Prison for Overdose DeathRead the Press Release
Miami, Florida – A South Florida fentanyl dealer whose product killed a man was sentenced to 20 years in federal prison today.
On May 19, 2021, 21-year-old Peterson Nozinord drove another man, age 27, to a motel in Lantana, Florida. Nozinord checked the man into a room by using Nozinord’s identification. Once inside, Nozinord provided the man with four fentanyl capsules. After a short time, Nozinord left the motel.
The next day, at approximately 7:30 a.m., the Lantana Police Department responded to the motel on a request for a welfare check on the victim. Upon entering the room, the responding officer discovered the man’s lifeless body slumped on the floor with a needle in his hand. The officer also observed on the dresser seven pills, four drug capsules, and a small white plastic baggie. The capsules were later examined by the Palm Beach County Sheriff’s Office and DEA Forensic Science Labs and were identified as a mixture of fentanyl, tramadol, xylazine, and cocaine. A review of motel security cameras showed that the victim was dropped off at the motel and checked in by an individual operating a black Honda.
After conducting his initial investigation at the scene, a Lantana police sergeant departed the area of the motel to head back to police headquarters. Shortly after leaving the parking lot of the motel, the sergeant observed the same vehicle that Nozinord used to transport the victim to the motel the previous evening. The sergeant observed the vehicle run through a stop sign almost causing an accident with another vehicle. The sergeant then conducted a motor vehicle stop on the black Honda.
During the stop, the sergeant observed that the Black Honda contained two occupants. Nozinord was riding as the front seat passenger. After the driver gave the police consent to search the vehicle, the sergeant located a backpack in the glove compartment that contained an assortment of narcotics, including 16 capsules of suspected fentanyl, six baggies of suspected cocaine, and 35 tablets of suspected Xanax. Nozinord’s identification and mail addressed to him were also in the bag, along with $1,515 in cash. The suspected fentanyl was later examined by the Palm Beach County Forensic Science Lab and determined to contain the same mixture of fentanyl, tramadol, xylazine, and cocaine as the capsules found in the victim’s motel room. Nozinord’s DNA was also found on the on a blue baggie and pill bottle which contained narcotics inside the backpack, and a white baggie found next to the fentanyl pills in the decedent’s motel room.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, Deanne L. Reuter, Special Agent in Charge, Drug Enforcement Administration, Miami Field Office, and Chief Sean Scheller, Lantana Police Department, announced the sentence imposed by U.S. District Judge Donald Middlebrooks.
The Drug Enforcement Administration, the Lantana Police Department, and the Palm Beach County Sheriff’s Office investigated the case. Assistant U.S. Attorneys Mark Dispoto and Shannon Shaw prosecuted the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
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Feds Charge 19 Defendants with Pandemic Fraud of over $24 MillionRead the Press Release
PHILADELPHIA - United States Attorney Jacqueline C. Romero, together with other federal law enforcement officials announced today charges against 19 defendants for defrauding federal programs funded by the CARES Act and designed to provide a financial safety net for Americans during the pandemic. Collectively these defendants sought to defraud the Paycheck Protection Program (PPP), the Economic Injury Disaster Loan (EIDL) program and the Pandemic Unemployment Assistance (PUA) program of over $24 million.
The Coronavirus Aid, Relief, and Economic Security Act, commonly called the CARES Act, was intended to provide emergency financial assistance to the millions of Americans suffering the economic effects of the COVID-19 pandemic.
- The PPP authorized banks to provide forgivable loans to small businesses for the specific purpose of enabling the businesses to meet payroll expenses and retain employees.
- Under the EIDL program, the Small Business Administration (SBA) provided low interest loans for small businesses to obtain financial relief due to any disruption or harm to their business resulting from the COVID-19 pandemic. The loan proceeds were required to be used on normal operating expenses, such as working capital and payroll.
- The PUA program provided emergency unemployment compensation to workers who were unemployed as a result of the pandemic but who were not eligible for regular unemployment compensation.
Each of the 19 defendants is alleged to have defrauded one or more of these programs. As alleged in 4 indictments and 7 informations, each defendant applied or conspired with others to apply for benefits even though they knew they were not eligible for the benefits. They each were responsible for submitting false applications to fraudulently obtain the benefits. They each succeeded in fraudulently obtaining emergency benefits or helping others to obtain emergency benefits. In some cases, the defendants are also alleged to have spent the emergency funds, not to make payroll or for other authorized business purposes, but instead spent the money on personal items.
Frank Hamilton, 52, of Simi Valley California; Michael Jones, 55, of Azusa, California; Kenny Tran, 38, of Diamond Bar, California: Tina Chen, 39 of Diamond Bar, California; Tim Park, 37, of Northridge, California; Peter An, 37, of Chatsworth California; Joe Greco, 42, of Simi Valley, California; Edwin Bonilla, 36, of Los Angeles, California are charged with conspiring to defraud the SBA and numerous financial institutions of over $9.4 million. These defendants submitted over 33 applications for PPP and EIDL loans seeking over $9.4 million in loans, $7 million of which were funded. From January 2018 through August 2021, Barrie Osborne (a co-conspirator previously charged who is now deceased), Frank Hamilton, Michael Jones, Kenny Tran, Tina Chen, Tim Park, Peter An, Joe Greco, and Edwin Bonilla used shelf corporations (which exist on paper but have no functioning business and no employees) to apply for over $9.4 million in SBA loans, including PPP loans and EIDL loans. After the conspirators obtained $7 million in loan payments, they took steps to transfer the funds among themselves in an effort to disguise the transfers as payroll payments. Part of the proceeds were used to trade in the stock market, and in addition, defendant Hamilton paid off his home mortgage; defendant Jones took luxury vacations and purchased a fleet of used vehicles.
Francis J. Battista, 37, of Aston, Pennsylvania, filed 19 fraudulent applications for PPP and EIDL loans in 2020 and 2021, seeking over $10 million in loans. Battista allegedly supported his fraudulent loan applications by submitting fake tax documents, bank records and payroll summaries. He succeeded in obtaining $8.4 million in loan funds, and he caused the funds to be spent on unauthorized purchases and debts and laundered a significant portion of the funds. He allegedly used emergency pandemic funds to purchase a Limited Edition CPO Range Rover Sport 4WD, to make a down payment for a real estate deal, to settle old business debts, and to engage in stock trading. The government has located and seized $6.3 million of those funds through forfeiture proceedings.
Resondoe Bradley, 44, Philadelphia, Pennsylvania, who ran a tax business and also worked as a contractor with the SBA processing EIDL loan applications during the pandemic, filed over 50 fraudulent EIDL loan applications and obtained approximately $3.4 million in funded loans. Two of Bradley’s clients have also been charged. Tamara Wheeler 50, Philadelphia Pennsylvania, filed a false EIDL application and obtained over $180,000 in loan proceeds. Ryan Killebrew, 31 Philadelphia Pennsylvania, filed a false EIDL application and obtained $125,000 in EIDL loan funds.
John Columbo, 53, Philadelphia, Pennsylvania, filed multiple fraudulent applications for EIDL and PPP loans worth over $700,000 and as a result he received over $550,000 in funds to which he was not entitled. Columbo allegedly obtained both EIDL and PPP funds by falsely stating the finances of companies, including the number of employees, the wages paid to employees, and the intended use of the emergency funds. To fraudulently increase the number of employees, he submitted a payroll schedule with false social security numbers for purported employees. To make other applications for emergency benefits, he allegedly used companies that had in fact closed all business and were defunct years before the pandemic, but which he falsely represented to be going concerns. He is also charged with obstruction of justice for filing false tax returns to make his loan applications appear to be truthful.
Lamar Ebron 35, Philadelphia, Pennsylvania, and Lamott Ebron, 32, of Philadelphia, Pennsylvania, are charged with filing fraudulent applications for PUA benefits in their own names, as well as the names of thirteen other persons, and obtained over $400,000 in PUA benefits. These defendants are also charged with filing fraudulent applications with the Philadelphia Housing Development Corporation to obtain benefits under the Renters Assistance Program, another federally funded program under the CARES Act. The Renters Assistance Program was meant to help renters unable to pay their rent due to loss of income caused by the pandemic. In their fraudulent applications, the defendants are alleged to have sought rental assistance in the names of multiple renters on a single property, listed different landlords for the same property, sometimes used their own names as tenant or landlord, or used the names of others.
Vincent Rotondi, 44, Langhorne, Pennsylvania, who was employed as a detective by the City of Philadelphia in the Philadelphia District Attorney’s Office, filed multiple claims for PUA benefits and obtained over $30,000 to which he was not entitled. In addition to filing fraudulent applications, Rotondi is alleged to have filed 40 false weekly certifications in which he reported that he was not working and received no income, despite the fact that he was working full-time during that period for the City of Philadelphia.
Steven Ball-Vaughn, 39, Oreland, Pennsylvania, filed multiple fraudulent applications for PPP and EIDL program loans, and obtained over $70,000 in benefits to which he was not entitled. Ball-Vaughn allegedly submitted fraudulent applications to three banks and, despite the requirement that the funds be used for business expenses, he used program funds for personal and unauthorized expenses, including at restaurants, theme parks, electronic stores and gambling sites.
Michael Daniels, 47, of Philadelphia, Pennsylvania, who was employed at the time of the offense by the City of Philadelphia as a constituent services representative for a member of Philadelphia City Council, was charged with theft of public money for taking over $27,000 worth of PUA benefits. Daniels allegedly certified repeatedly that he was unemployed and not receiving any income, while he was employed and being paid by the City of Philadelphia.
Tai Brown, 19, of Collingdale, Pennsylvania, was charged with theft of public money and the government is seeking forfeiture of $44,238 in PUA funds that are proceeds of the offense.
“Our office has been able to bring charges against these 19 defendants, who deliberately defrauded programs of over $24 million that were intended to help individuals who lost their jobs because of the pandemic and small businesses that were struggling to survive during the global pandemic,” said U.S. Attorney Jacqueline C. Romero. “Thanks to the hard work of our agency partners in the Covid Fraud Working Group of the Eastern District of Pennsylvania, we are protecting the integrity of our taxpayer funded programs from fraudsters, a priority for our office and our law enforcement partners.”
“The Covid pandemic has caused serious hardships for so many families and businesses,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “But then, you’ve got all the criminal opportunists who apparently looked at pandemic relief programs as their golden ticket. Together with our partners, the FBI continue to doggedly pursue anyone defrauding the federal government like this. You’ll be prosecuted to the fullest extent of the law, and that ‘easy money’ won’t seem so easy after all.”
“The charges announced today show IRS-CI’s commitment to defend the integrity of the pandemic relief programs,” said Yury Kruty, Special Agent in Charge of IRS-Criminal Investigation. “IRS-CI will continue to aggressively investigate those who schemed to defraud these programs that were intended to help struggling individuals and businesses.”
“An important part of the mission of the Office of Inspector General is to investigate allegations of fraud related to unemployment insurance programs. We will continue to work with the Pennsylvania Department of Labor and Industry and our law enforcement partners to investigate these types of allegations,” stated Syreeta Scott, Special Agent-in-Charge of the Philadelphia Region, U.S. Department of Labor, Office of Inspector General.
“Instead of using these government funds to help keep small businesses afloat and provide financial relief to those suffering from the COVID-19 pandemic, these individuals are alleged to have stolen the money for their own personal use and enrichment, taking it out of the hands of those who truly needed it,” said William S. Walker, Special Agent in Charge for Homeland Security Investigations, Philadelphia. “HSI is proud to join our partners in the Covid Fraud Working Group as we continue to focus our efforts on uncovering fraud schemes perpetrated during the pandemic.”
“Attempts to defraud the government, and ultimately our nation’s community members with legitimate businesses within our financial infrastructure, will not go unanswered for,” said U.S. Secret Service Philadelphia Field Office Special Agent in Charge Michael Centrella. “So long as efforts to exploit pandemic relief funds continue, so will Secret Service investigators and our partners ceaseless investigative work to ensure our national financial environment remains safe and secure.”
“This indictment demonstrates the commitment of the Treasury Inspector General for Tax Administration to investigate and bring to justice those who would corruptly manipulate and use IRS resources in order to exploit Federal programs for unlawful personal gain,” said J. Russell George, the Treasury Inspector General for Tax Administration. “We appreciate the efforts of the U.S. Department Justice and our law enforcement partners in this effort.
“Fraudsters that conspired to falsify information in order to access funds vital to the nation’s small businesses for personal gain will be brought to justice,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “OIG will continue to relentlessly root out fraud and protect the integrity of SBA’s programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
These cases were investigated by special agents of seven different federal agencies – FBI, Department of Labor Office of Inspector General, Homeland Security Investigations, IRS-Criminal Investigations, United States Secret Service, Small Business Administration Office of Inspector General, and U.S. Treasury Inspector General for Tax Administration. All of these agencies are members of the Covid Fraud Working Group of the Eastern District of Pennsylvania. The Working Group, begun in March 2020 and led by the U.S. Attorney’s Office, combines resources and expertise of nineteen federal agencies and the Pennsylvania Office of Attorney General to fight pandemic-related fraud. These cases are being prosecuted by AUSA Judy Smith; AUSA Nancy Potts, AUSA David Metcalf, AUSA Nancy Rue, AUSA Tim Lanni and Trial Attorneys David A. Stier and Patrick B. Gushue of the Criminal Division’s Money Laundering and Asset Recovery Section.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal Jury Convicts Hickory Man of Sexual Exploitation of A Minor and Possession of Child PornographyRead the Press Release
STATESVILLE, N.C. – A federal jury in Statesville has convicted Vincent Deritis, 33, of Hickory, N.C., of sexual exploitation of a minor and possession of child pornography, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Chief Thurman Whisnant of the Hickory Police Department join U.S. Attorney King in making today’s announcement.
According to filed court documents, trial evidence and witness testimony, between October 29, 2018, and March 17, 2019, Deritis secretly recorded a minor while the minor was exiting the shower. On April 3, 2019, law enforcement executed a search warrant at Deritis’s residence. A forensic analysis of electronic devices seized from Deritis’s home as well as his cloud storage account revealed that the defendant possessed images and videos that depicted the minor naked while exiting the shower, photos depicting the minor’s genitalia, and thousands of images of child pornography Deritis had downloaded from the internet. The jury convicted Deritis of three counts of production of child pornography and one count of possession of child pornography.
Deritis is currently in federal custody. A sentencing date has not been set. Each count of production of child pornography charge carries a minimum statutory sentence of 15 years and a maximum of 30 years in prison and a $250,000 fine. The charge of possession of child pornography carries a statutory penalty of no more than 20 years in prison and a $250,000 fine.
In making today’s announcement, U.S. Attorney King commended HSI and the Hickory Police Department for their investigation of the case.
Assistant United States Attorneys Cortney Randall and Nick J. Miller, of the U.S. Attorney’s Office in Charlotte, are prosecuting the case.
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 (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Federal Inmate Charged with Possessing A WeaponRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Hubert Carter, age 41, a federal prison inmate, was indicted yesterday by a federal grand jury for possessing contraband in prison.
According to United States Attorney Gerard M. Karam, the indictment alleges that on or about June 9, 2022, while an inmate at the Federal Correctional Institution, Schuylkill, Minersville, Pennsylvania, Carter possessed a 5.5 inch metal implement with a cloth handle capable of being used as a weapon.
The case was investigated by the Federal Bureau of Investigation (FBI) and the Federal Bureau of Prisons Special Investigative Service. Assistant United States Attorney Jeffery St John 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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Federal Indictment Charges CPA with Securities FraudRead the Press Release
CHARLOTTE, N.C. – A federal grand jury sitting in Charlotte has returned a criminal indictment charging Mac Wayne Billings, 48, of Raleigh, N.C., with securities fraud, for defrauding at least 19 victims of more than $3.6 million, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation, Charlotte Division, joins U.S. Attorney King in making today’s announcement.
According to allegations contained in the indictment, between 2012 and 2019, Billings engaged in securities fraud through his company, Alpha Finance Company (ALPHA), located in Sparta, North Carolina. The indictment alleges that Billings fraudulently obtained more than $3.6 million from at least 19 victims throughout Alleghany, Wilkes and Surry Counties, by soliciting them to invest in ALPHA via “debenture notes.” A debenture note is a type of debt instrument typically not backed by a collateral. As alleged in the indictment, Billings, who is a licensed North Carolina CPA, falsely promised ALPHA’s victim-investors that their money would be used to make high interest consumer loans from which the investors would receive interest payments. Contrary to his promises, Billings used little, if any, of the investors’ funds to make new consumer loans. Rather, Billings used some of the investors’ money to make payments to other investors and to pay himself over $1 million in salary and distributions from ALPHA.
The indictment further alleges that Billings used investment statements, emails and meetings to mislead and deceive victim-investors into believing that ALPHA was a profitable company and that the victims’ investments were safe. In this regard, Billings allegedly failed to disclose material information concerning ALPHA’s financial and business troubles to victim-investors, including that he had sold or mortgaged most of ALPHA’s assets to hard money lenders. Based on the fraudulent information provided by Billings, many of the victim-investors renewed and/or made additional investments with ALPHA, causing them to incur further financial losses.
Finally, lawsuits brought by the North Carolina Commissioner of Banks (NCCOB) and the North Carolina Attorney General’s Office alleged that Billings failed to comply with North Carolina laws governing consumer finance and retail installment loans. Billings defaulted on these lawsuits. Consequently, the NCCOB revoked ALPHA’s license due to non-compliance with North Carolina’s Consumer Finance Act. Courts in Alleghany and Wake Counties declared ALPHA’s loan null and void, leaving the investor-victims with no assets to recoup their losses.
The charges contained in the indictment are allegations and the defendant is innocent until proven guilty beyond reasonable doubt in a court of law.
The securities fraud charge carries a maximum prison term of 20 years and a $5 million fine. Billings’ initial appearance will be scheduled in federal court in Charlotte.
In making today’s announcement, U.S. Attorney King commended the FBI for their investigation of the case and thanked the U.S. Securities and Exchange Commission, the North Carolina Commissioner of Banks, and the North Carolina Attorney General’s Office for their cooperation.
Assistant U.S. Attorney Michael E. Savage of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Fayetteville Man Sentenced to 25 Years in Federal Prison for Drug TraffickingRead the Press Release
FAYETTEVILLE – A Fayetteville man was sentenced yesterday to 300 months in prison followed by five years of supervised release on one count of Aiding and Abetting the Possession with Intent to Distribute more than 500 grams of Methamphetamine. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court documents, In March of 2021, the Fourth Judicial District Drug Task Force (DTF) began investigating a drug trafficking organization operating within the Western District of Arkansas, Fayetteville Division. Through source reporting, investigators learned that Michael Scott Southerland, age 33, was the leader of the organization and was supplying narcotics to other members of the organization for distribution. As the investigation continued the DTF was able to make several purchases of methamphetamine from members of the organization.
On April 1, 2021, detectives with the DTF executed a search warrant at the residence of a co-conspirator. During execution of the warrant, detectives located over seven pounds of methamphetamine stored in safes for future distribution, as well as numerous firearms.
On May 18, 2021, detectives executed a search warrant at Southerland's residence, as well as the residence of one of his co-conspirators. The residences, which were adjacent to each other, were located near a school. During execution of the warrants, detectives located approximately 2.8 pounds of methamphetamine, numerous firearms, $10,366.00 in U.S. currency, and a drug ledger.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Fourth Judicial District Drug Task Force investigated the case.
Assistant U.S. Attorney David Harris prosecuted the case.
Eugene Man Sentenced for Illegally Importing and Exporting Live ScorpionsRead the Press Release
MEDFORD, Ore.—A Eugene, Oregon man who formerly resided in Southern Oregon was sentenced in federal court today for violating the Lacey Act by illegally importing and exporting hundreds of live scorpions.
Darren Dennis Drake, 39, was sentenced to two years’ federal probation, 250 hours of community service, and a $5,000 fine payable to the Lacey Act Reward Fund.
According to court documents, between September 4, 2017 and March 21, 2018, Drake imported and exported dozens of live scorpions from and to contacts in Germany without first obtaining an import-export license from the U.S. Fish and Wildlife Service (FWS). On one parcel intercepted by U.S. Customs and Border Protection (CBP), Drake falsely labeled the package contents as “chocolates.” Drake also mailed or received several hundred live scorpions from other U.S. states, including Michigan and Texas, in violation of federal mailing laws.
On February 23, 2022, Drake was charged by criminal information with conspiracy to violate the Lacey Act. On March 14, 2022, he waived indictment and pleaded guilty to the single charge.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the FWS Office of Law Enforcement with assistance from CBP and the U.S. Postal Inspection Service. It was prosecuted by John C. Brassell, Assistant U.S. Attorney for the District of Oregon.
The U.S. Fish and Wildlife Service is responsible for protecting America’s wildlife from poaching, illegal commercialization, and other kinds of wildlife crime. If you have information related to a wildlife crime, please call 1-844-FWS-TIPS (1-844-397-8477) or email [email protected].
Scorpion near ruler for size comparison. Scorpions in transit.Essex County Man Sentenced to Five Years in Prison for Role in Fentanyl Conspiracy, and Unlawful Possession of Firearm and AmmunitionRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 60 months in prison for his role in a fentanyl conspiracy, and unlawful possession of a firearm and ammunition, U.S. Attorney Philip R. Sellinger announced.
Jaqua Clayton, aka “Quay,” 23, of Newark, previously pleaded guilty via videoconference before U.S. district Judge Madeline Cox Arleo to an information charging him with one count of conspiracy to distribute fentanyl, one count of possession with intent to distribute fentanyl, and one count of possession of a firearm and ammunition by a convicted felon. Judge Arleo imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On March 26, 2021, law enforcement executed a search warrant at Clayton’s residence and recovered a loaded .40 caliber Taurus semi-automatic handgun loaded with 10 rounds of .40 caliber ammunition, and approximately $51,000 in cash. Clayton admitted that he had agreed with another individual to keep Clayton’s narcotics supply inside of the other individual’s apartment to avoid detection from law enforcement. Law enforcement officers obtained and executed a search warrant for the individual’s apartment in March 2021. The search revealed 2,116 glassine envelopes of fentanyl, as well as five plastic bags of unpackaged fentanyl, the total aggregate weight of which exceeded 400 grams. During the search, Clayton arrived and approached the entrance of the apartment. When he observed law enforcement, he fled from the area. Clayton has a prior felony conviction.
In addition to the prison term, Judge Arleo sentenced Clayton to three years of supervised release.
U.S. Attorney Sellinger credited special agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Jeffrey L. Matthews in Newark, with the investigation leading to today’s sentencing.
This investigation was part of the Newark Violent Crime Initiative (VCI). The Newark VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the sole purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA New Jersey Division, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole, Union County Jail, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, New Jersey Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Assistant U.S. Attorney Cassye Cole of the Criminal Division’s Organized Crime and Gangs Unit in Newark.
Elkhart Man Sentenced to 57 Months in PrisonRead the Press Release
SOUTH BEND – Shea Pletcher, 42 years old, of Elkhart, Indiana, was sentenced by United States District Court Judge Robert L. Miller, Jr. on his plea of guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Pletcher was sentenced to 57 months in prison followed by 2 years of supervised release.
According to documents in the case, in September of 2021, police in Elkhart responded to the scene of a possible break in. Once they arrived at the home, officers found Pletcher with a 20-gauge shotgun. Pletcher has an extensive criminal history, including at least 8 prior convictions, and any of his convictions for a felony offense prohibits him for possessing a firearm.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Elkhart Police Department and the St. Joseph County Police Department. The case was prosecuted by Assistant United States Attorney Frank E. Schaffer.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Eighteen Arrested on Federal Gun and Drug Charges as Part of a United States Marshals Service Led, Multi-Agency OperationRead the Press Release
Montgomery, Alabama – Eighteen individuals were indicted on federal gun and drug charges as part of a United States Marshals Service led, multi-agency operation to combat violent crime in Central Alabama’s River Region. Other participating agencies include: the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Alabama Law Enforcement Agency; the Drug Enforcement Administration; the Federal Bureau of Investigation; the Montgomery Police Department; the Montgomery County Sheriff’s Office; the Montgomery County District Attorney’s Office; the Alabama Bureau of Pardons and Paroles; and the United States Probation Office for the Middle District of Alabama.
Nationwide, gun crimes, gang activity, and shootings are on the rise. Law enforcement officers work every day to make our neighborhoods safer and our citizens more secure. Operations like this one, conducted from June 6th - 17th, are part of a combined effort to focus resources on violent offenders. Numerous state arrests were made during this operation as well.
As part of this operation, the following individuals from the Montgomery area were indicted on federal charges:
- Mario Aguilera, 38, for possession of a firearm by a convicted felon;
- Antonio Bailey, 39, for possession of a firearm by a convicted felon and possession of a controlled substance;
- Christopher Shay Barron, 45, for possession of a firearm by a convicted felon and possession of an unregistered firearm;
- Patrick Bass, 42, for possession of a firearm by a convicted felon, possession of a controlled substance with intent to distribute, and possession of a firearm in furtherance of a drug trafficking offense;
- Julius Calhoun, 27, for possession of a stolen firearm;
- Rodricko Davis, 30, for possession of a firearm by a convicted felon;
- Christopher Duncan, 39, for possession of a firearm by a convicted felon;
- Antwon Fisher, 38, for possession of a firearm by a convicted felon;
- Arthur Hamilton, 34, on three counts of possession of a firearm by a convicted felon;
- Deshunquez Harris, 27, for possession of a firearm by a convicted felon;
- Eric Hoskins, 27, for possession of a firearm by a convicted felon and possession of a controlled substance with intent to distribute;
- Willie Thomas Luckie, Jr., 56, for possession of ammunition by a convicted felon;
- Kendarius Powell, 23, for possession of a stolen firearm;
- Marcus Salter, 26, for possession of a stolen firearm;
- Tadarius Salter, 22, for possession of a stolen firearm;
- Adrian Fitzgerald Talley, III, 29, for possession of a firearm by a convicted felon;
- Jeremiah Trammer, 32, for possession of a firearm by a convicted felon and possession of a controlled substance; and
- Christopher Washington, 41, for possession of a firearm by a convicted felon.
An indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The possession of a firearm or ammunition by a convicted felon, possession of a stolen firearm, and possession of an unregistered firearm charges each carry a maximum sentence of 10 years in prison. Possession of a firearm in furtherance of a drug trafficking crime carries a minimum sentence of five years to be served consecutively to any other sentences. The maximum sentence for those charged with possession of a controlled substance with intent to distribute varies depending on the type of controlled substance, weight of the substance, and other factors specific to the charge. There is no parole in the federal system.
All federal cases are being prosecuted by the U.S. Attorney’s Office for the Middle District of Alabama pursuant to the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) initiative, a program in which U.S. Attorneys’ Offices work in partnership with federal, state, local, and tribal law enforcement to develop effective, locally based strategies to reduce violent crime and make neighborhoods safer for everyone. Recently, the Department of Justice reinvigorated PSN as part of its renewed focus on targeting armed violent criminals and gang members.
Eight Charged in $7 Million Loan Fraud SchemeRead the Press Release
Eight defendants were charged in the Eastern District of Pennsylvania today with scheming to fraudulently obtain more than $7 million in Paycheck Protection Program (PPP) loans, Economic Injury Disaster Loans (EIDL), and pre-pandemic Small Business Administration (SBA) loans.
According to court documents, beginning in or around January 2018, defendants Frank Hamilton, 52, of Simi Valley, California; Michael Jones, 55, of Azusa, California; Tina Chen, 39, of Diamond Bar, California; Kenny Tran, 38, of Diamond Bar, California; Tim Park, 37, of Northridge, California; Peter An, 37, of Chatsworth, California; Joseph Greco, 42, of Simi Valley, California; Edwin Bonilla, 36, of Los Angeles, California, and others allegedly conspired to apply for SBA, PPP, and EIDL loans on behalf of their respective businesses that were dormant companies or companies with limited business operations. In exchange for fees, Hamilton, Jones, and others made the businesses appear to be functioning companies with operations and employees by creating fake documents, including fake bank statements and fictitious tax documents for the businesses. One conspirator provided a script for other conspirators to use in calls with lenders. The conspirators allegedly obtained over $7 million in PPP, EIDL, and SBA loans.
Court documents further allege that the conspirators followed so-called “forgiveness plans” that directed them to transfer the fraud proceeds as purported payroll payments for each of the companies that obtained PPP funds. These “forgiveness plans” were designed to disguise the proceeds as payroll payments and make it appear that the loan recipient was meeting the SBA requirement that a percentage of the PPP funds be used for payroll, thus increasing the likelihood that the loan recipient would qualify for loan forgiveness. At Hamilton’s direction, Jones, Chen, Tran, Park, An, Greco, and Bonilla wired the disguised fraud proceeds to a bank account in the name of a dormant company Hamilton controlled.
Hamilton, Jones, Chen, Tran, Park, An, Greco, and Bonilla are each charged with conspiracy to commit wire fraud. If convicted, they each face up to 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania; Special Agent in Charge Amaleka McCall-Brathwaite of the SBA Office of Inspector General (SBA-OIG) Eastern Region; Special Agent in Charge Yury Kruty of IRS-Criminal Investigation (IRS-CI) Philadelphia Field Office; Special Agent in Charge William Walker of Homeland Security Investigations (HSI) Philadelphia Field Office; and Special Agent in Charge Jacqueline Maguire of the FBI’s Philadelphia Field Office made the announcement.
This case was investigated by the SBA-OIG, IRS-CI, HSI’s Philadelphia Field Office, and the FBI’s Philadelphia Field Office.
Trial Attorneys David A. Stier and Patrick B. Gushue of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Judy G. Smith of the U.S. Attorney’s Office for the Eastern District of Pennsylvania are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866 720 5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
An information is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Drug Trafficking Organization Leader Sentenced to 15 Years in PrisonRead the Press Release
PROVIDENCE – A twice-deported Dominican national living in Providence who led a drug-trafficking organization that imported millions of doses of Mexican-sourced cocaine and fentanyl was sentenced today in U.S. District Court in Providence to fifteen years in federal prison, announced United States Attorney Zachary A. Cunha.
Eighteen kilos of fentanyl, enough to yield 9,000,000 lethal does; nearly twenty kilograms of cocaine; and one kilogram of heroin were seized as a result of a DEA Rhode Island Drug Task Force and Rhode Island State Police High Intensity Drug Trafficking Areas (HIDTA) Task Force investigation into the drug trafficking activity of 47-year-old Juni Rafael Jimenez-Martinez.
The Organized Crime Drug Enforcement Task Force (OCDEFT) investigation, dubbed “Operation Seek and Destroy,” determined that Jimenez-Martinez attempted to insulate himself from the drug trafficking operation by using trusted friends and associates to carry out much of the organization’s day-to-day business, while he oversaw and directed the importation, transportation, storage, and distribution of kilos of drugs. Jimenez-Martinez coordinated the movement of the drugs through various U.S. cities, as well as their shipment into New York City, where they were stored. At Jimenez-Martinez’s direction, the drugs were later transported elsewhere for distribution, including into Rhode Island and Massachusetts. During the course of the investigation, law enforcement seized drug shipments in St. Louis, Maryland, New Jersey, and Rhode Island.
Jimenez-Martinez, convicted of drug trafficking in 2009 in federal court in the Southern District of New York and sentenced to 65 months of incarceration, has been detained in Rhode Island since his arrest in this matter on June 6, 2019. He pleaded guilty on October 6, 2021, to conspiracy to distribute and to possess with intent to distribute cocaine; possession with intent to distribute cocaine; and being an alien who reentered the United States illegally after having been removed.
Jimenez-Martinez was sentenced today by U.S. District Court Chief Judge William E. Smith to 180 months of incarceration to be followed by ten years of federal supervised release.
The case was prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
United States Attorney Cunha thanks the Massachusetts State Police; DEA Strike Force in Watertown, MA; DEA Annandale HIDTA Group in VA; and the DEA Westchester, NY, Resident Office for their assistance in this investigation.
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Distributing pornography results in federal prison time for Katy sex offenderRead the Press Release
HOUSTON – A 45-year-old man has been sent to federal prison following his conviction for a child pornography charge while on deferred adjudication for another similar offense, announced U.S. Attorney Jennifer B. Lowery.
Manuel Candia-Reuter pleaded guilty June 9, 2021.
Today, U.S. District Judge Gray H. Miller ordered Candia-Reuter to serve 180 months in prison to be immediately followed by 10 years of supervised release. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. Candia-Reuter is a registered sex offender and had been serving a deferred sentence for previous possession of child pornography.
The investigation began in March 2019, when authorities discovered Candia-Reuter had uploaded or distributed child pornography material via Skype.
Law enforcement executed a search warrant at Candia-Reuter’s residence July 12, 2019. At that time, Candia-Reuter admitted to distributing images of child pornography to another user on Skype.
Candia-Reuter also acknowledged he had been attending therapy sessions while on deferred adjudication for possession of child pornography. He relapsed and again began searching for child pornography.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation with assistance of the National Center for Missing and Exploited Children.
Assistant U.S. Attorneys Kimberly Ann Leo and Sherin Daniel prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Convicted Felon Charged for Selling Firearm and HeroinRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Troy Nix (29, Mount Dora) with possessing a firearm as a convicted felon and possessing heroin with the intent to distribute it. If convicted, Nix faces up to 10 years in federal prison for the firearm offense and up to 20 years in federal prison for the drug offense.
According to court records, on or about June 3, 2022, Nix sold a 9mm firearm and heroin to an undercover ATF agent. Nix then fled on foot when agents attempted to arrest him. He was apprehended several hours later. Nix has at least eight prior state felony convictions, including battery on a person 65 years of age or older, sale of cocaine, and fleeing to elude police. Because of his prior felony convictions, he is prohibited from possessing firearms or ammunition under federal law.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, U.S. Customs and Border Patrol, the Lake County Sheriff’s Office, and the Mount Dora Police Department. It is being prosecuted by Assistant United States Attorney Tyrie K. Boyer.
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.
Cherry Hill Gang Member Admits to Murdering a Rival Gang Member and Pleads Guilty to Conspiracy to Participate in a Racketeering EnterpriseRead the Press Release
Baltimore, Maryland- Deaven Cherry, age 35, of Baltimore, Maryland pleaded guilty yesterday to conspiracy to participate in a racketeering enterprise.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Commissioner Michael Harrison of the Baltimore Police Department; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
“Deaven Cherry played a significant role in the Hillside gang’s violence, including selling poisonous drugs and murdering a rival gang member. Now, he faces more than two decades in federal prison,” said U.S. Attorney, Erek L. Barron. “We hope this plea deters others who would ravage our communities.”
According to his guilty plea, Cherry was an associate of a group known as “Hillside” which operated in part of Cherry Hill in Baltimore, Maryland. Members of Hillside distributed powder and crack cocaine, heroin, oxycodone and marijuana, primarily in the Cherry Hill Shopping Center, in other locations throughout Cherry Hill, and in west and southwest Baltimore City. The members of Hillside used the proceeds of their narcotics sales to purchase firearms, to enrich themselves, and to further the activities of the organization, including narcotics trafficking. Hillside members also committed acts of robbery, and homicides, non-fatal shootings.
As stated in his plea agreement, Hillside members and associates have been in a long-running dispute with persons not part of the gang, including Up Da Hill (“UDH”), the Lakebrook Circle Boys, and others. Members and associates of Hillside have routinely engaged in acts of violence, including murder, directed at members of these rival organizations, or persons who happen to be located on territory controlled by these rival organizations. Cherry knew members of Hillside sold narcotics and committed violent acts against rival gangs or others who impeded on Hillside’s territory. Further, Cherry admitted that he participated in Hillside’s racketeering enterprise, including the murder of a UDH member (Victim 1) on May 22, 2010. In order to carry out the murder of Victim 1, Cherry discharged a 9mm semi-automatic pistol with an extended magazine and contained 21 rounds. Ballistic evidence confirmed that Cherry’s firearm was used to murder Victim 1.
In 2019, Hillside co-defendants Kevin Horsey, Caesar Rice, and Michael Evans, all of Baltimore, were sentenced to 20 years, 22 years, and 14 years in federal prison; respectively for conspiracy to participate in a racketeering enterprise. Co-defendants Keenan Lawson and Terell Luster were also sentenced to 23 years in federal prison.
Cherry and the government have agreed that, if the Court accepts the plea agreement, Cherry will be sentenced to 21 years in federal prison. U.S. District Judge George L. Russell, III, has scheduled sentencing for November 29, 2022, at 2:00 p.m.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
This case is also part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Erek L. Barron praised the ATF, the Baltimore County Police Department, and the Baltimore City Police Department for their work in the investigation and the U.S. Marshals Service for their assistance. Mr. Barron thanked Assistant United States Attorneys Patricia C. McLane and Brandon K. Moore, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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California Mortgage Lender Agrees to Pay More Than $1 Million to Resolve Fraud AllegationsRead the Press Release
Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that American Financial Network, Inc., a mortgage lender based in Brea, California, has agreed to pay $1,037,145 to resolve allegations that it improperly and fraudulently originated government-backed mortgage loans insured by the Federal Housing Administration (FHA), a component of the U.S. Department of Housing and Urban Development (HUD).
“FHA-backed mortgages are a critical resource for first-time homebuyers, moderate-income borrowers, and families who have suffered negative credit due to the pandemic or other events out of their control,” said U.S. Attorney Waldref. “By improperly originating ineligible mortgages, lenders take advantage of the limited resources of the FHA program and unfairly pass the risk of loss onto the public.”
Since at least December 2011, AFN has been a participant in FHA’s Direct Endorsement Program. Through this program, a lender such as AFN is authorized to originate and approve mortgage loans to be insured by FHA without any prior review or approval by FHA. Lenders such as AFN are responsible for carefully underwriting the mortgage to make sure that it meets all FHA requirements. Once a mortgage loan is insured by FHA, if the borrower defaults or is unable to repay the mortgage, the lender that holds the mortgage note can submit a claim for insurance benefits to FHA to cover its losses.
The settlement resolves allegations that between December 2011 and March 2019, AFN knowingly underwrote certain FHA mortgages and approved for insurance certain mortgages that did not meet FHA requirements or qualify for insurance, resulting in losses to the United States when the borrowers defaulted on those mortgages. The settlement further resolves allegations that AFN knowingly failed to perform quality control reviews that it was required to perform.
This case began in March 2019 when a whistleblower, a former loan processor with AFN, filed a qui tam complaint under seal in federal court in Spokane. When a whistleblower, or “relator,” files a qui tam complaint, the False Claims Act requires the United States to investigate the allegations and elect whether to intervene and take over the action or to decline to intervene and allow the relator to go forward with the litigation on behalf of the United States. The relator is generally able to then share in any recovery. Pursuant to the settlement agreement, the relator in this case will receive $228,172 of the settlement, and will also recover her attorney’s fees, expenses, and costs.
“Quality and affordable housing is a critical issue in Eastern Washington and across the nation,” said U.S. Attorney Waldref. “Protecting the resources that support families who dream of purchasing their first home makes our community stronger. I commend the exceptional investigative work by Veterans Affairs Office of Inspector General and HUD’s Office of Inspector General that holds accountable those who abuse housing programs.”
“HUD’s Office of Inspector General is committed to working with the Department of Justice and our law enforcement partners to ensure that federal programs designed to help our nation’s most vulnerable are not abused,” said Special Agent-in-Charge Scott Tanchak. “Today’s settlement demonstrates the Government’s commitment to protecting the integrity of HUD programs.”
“Investigations such as these help safeguard the integrity of the home loan approval process and protect vulnerable veterans from fraudulent lending practices,” said Special Agent in Charge Jason Root of the Department of Veterans Affairs Office of Inspector General’s Northwest Field Office. “The VA OIG thanks the U.S. Attorney’s Office for the Eastern District of Washington and HUD’s Office of Inspector General for their partnership in this joint investigation.”
The settlement was the result of a joint investigation conducted by the U.S. Attorney’s Office for the Eastern District of Washington, HUD’s Office of Inspector General, and the U.S. Department of Veterans Affairs, Office of Inspector General, Spokane Resident Office.
Assistant United States Attorneys Tyler H.L. Tornabene and Dan Fruchter and Special Assistant United States Attorney Frieda K. Zimmerman handled this matter on behalf of the United States. The claims resolved by the settlement are allegations only and there has been no determination of liability.
Brownsville man sentenced for trying to smuggle cocaine past CheckpointRead the Press Release
BROWNSVILLE, Texas – A 60-year-old Brownsville resident has been ordered to federal prison for possessing with intent to distribute 11.78 kilograms of cocaine, announced U.S. Attorney Jennifer B. Lowery.
Martin Munoz pleaded guilty Sept. 15, 2021.
Today, U.S. District Judge Rolando Olvera ordered him to serve a 70-month sentence to be immediately followed by five years of supervised release.
On March 13, 2020, Munoz arrived at the Border Patrol (BP) checkpoint located in Sarita driving a pickup truck.
At inspection, law enforcement opened the driver side door and immediately noticed a large duffel bag laying on the front passenger seat. They ultimately found 10 bundles wrapped in brown tape consistent with narcotics located inside the bag.
They contained a white powdery substance which later field tested positive for the properties of cocaine with a total combined weight of 11.78 kilograms.
Munoz has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations and Border Patrol conducted the investigation. Assistant U.S. Attorney David Coronado prosecuted the case.
Branson Man Pleads Guilty to Threatening Sheriff’s DepartmentRead the Press Release
SPRINGFIELD, Mo. – A Branson man pleaded guilty in federal court today to threatening over the internet to injure employees of the Los Angeles County, California, Sheriff’s Department.
Joshua L. Bippert, 27, pleaded guilty before U.S. District Judge M. Douglas Harpool to one count of transmitting a threat across state lines to injure another person.
By pleading guilty today, Bippert admitted that he communicated the threat over the internet to the sheriff’s department on Sept. 20, 2020. Bippert sent a private message in response to a social media post on the department’s Instagram account. The Instagram post documented the arrest of a felon in possession of a firearm. Bippert wrote: “Recently a couple of your officers arrested a man for owning a firearm. If you want more of your officers to end up like the two that got shot while sitting in their patrol car then go ahead and keep the charges. Release the man who did nothing wrong but keep his second amendment rights or there will be blood. This is a threat.” (sic) Bippert’s message presumably referred to the Sept. 12, 2020, ambush by a gunman on two sheriff’s deputies sitting in their patrol car.
The next day, Bippert commented on the sheriff’s department post: “for me, the most irritating part is living in the midwest and not on the border to California where I could take a nice short drive to water the tree of liberty.” (sic)
Investigators also saw a post from Bippert in which he tagged the sheriff’s department: “Forget the constitution. We need to end gun control by any means necessary. Yes I do mean violence.” (sic)
Under federal statutes, Bippert is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Casey Clark. It was investigated by the FBI, the Taney County, Mo., Sheriff’s Department, and the Los Angeles County, Calif., Sheriff’s Department.
Boston Man Sentenced for Cocaine DistributionRead the Press Release
BOSTON – A Boston man was sentenced yesterday in federal court in Boston for his role in a cocaine trafficking conspiracy.
Tarik Muhammad, 27, was sentenced by U.S. District Court Judge Richard G. Stearns to two years in prison and three years of supervised release. On June 3, 2022, Muhammad pleaded guilty to conspiracy to distribute and possess with intent to distribute cocaine.
Muhammad was charged in June 2020 along with 23 others as part of a multi-year investigation into a drug trafficking organization (DTO) comprised of Boston-based street gang members and associates. According to the charging documents, beginning in November 2018, law enforcement investigated drug trafficking activities in the Commonwealth Development in Brighton, formerly known as Fidelis Way, a multi-apartment public housing development. It is alleged that the defendants, through their drug trafficking activities, assumed control over multiple apartments, where they stored, cooked, packaged and sold drugs. As a result, their activities caused a blight of the development and reduced the quality of life of the other residents.
The investigation also targeted large-scale drug suppliers and their associates. It is alleged that the targets continued to distribute cocaine and cocaine base throughout the COVID-19 pandemic and shutdown.
Muhammad was identified as a drug distributor for the DTO. Intercepted calls between Muhammad and Kenji Drayton, one of the main suppliers and distributors within the DTO, revealed communication regarding coordinated meetup locations, which law enforcement surveilled. Subsequently, law enforcement stopped their vehicle and searched the occupants. While searching Muhammad, an object was found at the crease of Muhammad’s buttocks, at which time he was transported to the police station.
During the transport, Muhammad threw himself to the ground thrashing. Officers radioed these observations to the police station and upon arrival, Muhammad was found covered with white powder. A ripped plastic bag containing white residue was subsequently recovered from the outer area of Muhammad’s buttocks.
Muhammad is the eighth defendant to be sentenced in the case. Of the remaining defendants, 13 have pleaded guilty and are awaiting sentencing, three are pending trial and one defendant remains at large.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
First Assistant United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Douglas Bartlett, Acting U.S. Marshal for the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Boston Police Acting Commissioner Gregory Long made the announcement. Assistance in the investigation was provided by the Braintree, Cambridge, Canton, Randolph and Weymouth Police Departments; the Suffolk, Norfolk and Bristol County District Attorneys’ Offices; and the Suffolk, Plymouth and Norfolk County Sheriffs’ Offices. Assistant U.S. Attorneys Kaitlin R. O’Donnell and Timothy E. Moran, Chief of the Organized Crime & Gang Unit, prosecuted the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Billings man who used construction excavator to break into firearms dealer and steal guns sentenced to more than five years in prisonRead the Press Release
Click here for photo:
photo_of_excavator_damage_to_business.pdfBILLINGS — A Billings man who admitted to stealing firearms from a dealer after breaking into the business by using a construction excavator to tear a hole in the wall was sentenced today to five years and two months in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
Erik Stephen Deaner, 46, pleaded guilty in December 2021 to theft from a federal firearms dealer.
U.S. District Judge Susan P. Watters presided. Judge Watters also ordered $1,000 restitution.
The government alleged in court documents that on Oct. 21, 2021, Deaner stole firearms from Castle Arms, a federal firearms licensee located in Yellowstone County, by using a construction excavator to tear down a section of wall and door. The excavator had been taken from a nearby construction site. The excavator had been locked and no keys were missing, but the key was universal so anyone with the manufacturer’s key could potentially access the excavator. An investigation determined that five pistols and one antique rifle had been stolen and that Deaner had been in the business previously and had behaved oddly. Investigators went to Deaner’s home and arrested him on an outstanding warrant when he came outside. Deaner admitted to using the excavator to break into the business and to stealing the firearms. Deaner said he knew he was prohibited from possessing firearms but that he liked firearms. All of the stolen firearms were recovered from his garage.
Assistant U.S. Attorney Thomas K. Godfrey prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Yellowstone County Sheriff’s Office.
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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Berkeley County man facing firearms chargesRead the Press Release
ELKINS, WEST VIRGINIA – Eric Timothy Gray, of Inwood, West Virginia, was indicted today on firearms charges, United States Attorney William Ihlenfeld announced.
Gray, 54, was indicted today on four counts of “Unlawful Possession of a Firearm” and two counts of “False Statement During the Purchase of a Firearm.” Gray, a person prohibited from having a firearm because of prior felony convictions, is also accused of having multiple firearms in January 2020. He is also accused of falsifying forms to illegally purchase firearms in Berkeley County.
Gray faces up to 10 years of incarceration and a fine of up to $250,000 for each charge. 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 Kimberley D. Crockett is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Belton Man Sentenced for Crack Cocaine, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A Belton man has been sentenced in federal court for illegally possessing crack cocaine and firearms.
Keylan Williams posted this photo of himself with firearms and cash to his Instagram account.Keylan L. Williams, 19, was sentenced by U.S. District Judge Greg Kays on Tuesday, June 22, to six years and eight months in federal prison without parole.
On Dec. 28, 2021, Williams pleaded guilty to one count of possessing crack cocaine with the intent to distribute, and one count of being an unlawful user of a controlled substance in possession of firearms.
On Feb. 9, 2021, law enforcement officers executed a search warrant at the residence of Williams, who had just turned 18 years old a few days earlier and was a subject of interest in the investigations of an aggravated assault and an armed robbery that each occurred on Jan. 28, 2021.
When officers searched the residence, they found a loaded Springfield Armory 9mm semi-automatic handgun hidden in the rafters in the laundry room. They found a loaded Glock .40-caliber semi-automatic handgun hidden in the toilet tank in a bathroom. They found 61 individually-wrapped baggies of crack cocaine, which weighed a total of 16.87 grams, hidden in a living room vent, along with four magazines of ammunition.
Officers also found a factory gun case hidden in the insulation in the attic, but not the firearm, for a Glock handgun that had been reported stolen. They found a backpack in the hall closet that contained numerous pills, marijuana, ammunition, and a handgun holster. They found two baggies of marijuana in the living room beneath the couch. They found another backpack in an upstairs bedroom that contained marijuana and more pills. In a basement bedroom area, they found four more magazines and additional ammunition. More ammunition and a Sig Sauer magazine were found beneath the mattress.
A match was generated from the test fire of the seized Glock handgun through the National Integrated Ballistic Information Network (NIBIN). Forensic comparison of the shell casing fired from the Glock handgun by the crime laboratory matched a shell casing recovered from the investigation of a homicide that occurred in Kansas City, Mo., on Dec. 13, 2020.
Keylan Williams posted this photo of himself with firearms and cash to his Instagram account.Law enforcement investigators identified photographs of Williams, posted on his Instagram account, in which he has one or two Glock handguns next to him. One of the Glock handguns, which has a rubber aftermarket grip pulled over the factory grip, appears to be the same handgun seized by officers during the search of Williams’s residence. In two of the photographs that depict Williams with the firearms, he also has a large quantity of cash.
This was prosecuted by Assistant U.S. Attorney Trey Alford. It was investigated by the Kansas City, Mo., Police Department.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Baltimore Defense Attorney Sentenced to 57 Months in Federal Prison for Money Laundering ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge Liam O’Grady of the U.S. District Court for the Eastern District of Virginia, who presided over this case in the District of Maryland, today sentenced Kenneth Wendell Ravenell, age 63, of Monkton, Maryland, to 57 months in federal prison, followed by three years of supervised release for conspiracy to commit money laundering conspiracy charge. Ravenell was convicted of that charge on December 28, 2021, after a 16-day trial.
The sentence was announced by First Assistant United States Attorney for the District of Maryland Phil Selden; Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office. The United States Attorney has recused himself from this case.
The trial evidence proved that Ravenell received drug proceeds from clients and associates who engaged in drug trafficking. Evidence was presented that Ravenell also used bank accounts of the law firm to launder more than a million dollars; used the law firm’s bank accounts to receive drug payments and make payments to attorneys retained to represent other members of the conspiracy; and used the law firm’s bank accounts to make various investments on behalf of a drug trafficker client, concealing and misrepresenting the source of the funds and promoting the client’s unlawful activity. According to trial evidence, Ravenell also received substantial cash payments derived from drug sales as compensation for laundering money.
Specifically, the trial evidence demonstrated that from 2009 through 2014, Ravenell gave a drug dealer advice on how to launder the millions of dollars of cash that the dealer’s marijuana sales generated. Ravenell advised the drug dealer to set up businesses that generated cash themselves and make investments in real estate projects, which the drug dealer did, in order to launder drug proceeds. The drug dealer’s business activities were mainly in entertainment, where he organized concerts and other events. Drug proceeds were used to pay expenses, like renting venues, hiring entertainers, and purchasing food and alcohol for re-sale. Attendees to these events largely paid in cash for their tickets, which provided a second opportunity to launder money, namely, by mixing cash generated by marijuana sales with cash generated by ticket sales. Ravenell and the drug dealer discussed all aspects of these events and the drug dealer’s entertainment-related activities, including the use of drug proceeds to fund the events and the mixing of drug proceeds with ticket sales.
In 2011, the drug dealer was arrested and became a formal client of Ravenell’s and the law firm where he was a partner at that time. Between 2011 and 2014, the trial evidence showed that in addition to advising the drug dealer on how to launder money, Ravenell personally laundered his client’s drug proceeds using the firm’s attorney trust account. Ravenell accepted more than $1.8 million in drug proceeds and funds co-mingled with drug proceeds from entities and individuals associated with the drug dealer. Ravenell also directed the payment of more than $1.2 million of these drug proceeds from the law firm’s accounts to various projects and third parties to benefit his client. Ravenell’s purpose in accepting and disbursing these funds was to conceal the source of the funds as drug proceeds and promote his client’s on-going marijuana distribution activities.According to trial evidence in 2013, a client facing federal narcotics charges paid Ravenell more than $350,000 in drug proceeds through an associate of the client. Ravenell instructed the associate to convert the drug proceeds into money orders and other instruments to conceal the source of the funds. After Ravenell withdrew from the case, the client learned that Ravenell had only credited $187,000 to his case, not the more than $350,000 that the client had paid.
First Assistant United States Attorney Phil Selden commended the IRS-CI, the DEA, the Maryland Transportation Authority Police Department, the Phoenix (Arizona) Police Department, and the Arizona Financial Crimes Task Force for their work in the investigation. Mr. Selden thanked Assistant U.S. Attorneys Leo J. Wise and Zachary Ray, and Special Assistant U.S. Attorney Derek Hines, who prosecuted the case.
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Armed Career Criminal Sentenced to 15 Years in Federal Prison for Illegal Gun PossessionRead the Press Release
INDIANAPOLIS – Corey Thomas, 33, of Indianapolis, was sentenced to fifteen years in federal prison after pleading guilty to possessing a firearm as a convicted felon.
According to court documents, on November 21, 2020, officers from the Indianapolis Metropolitan Police Department (IMPD) responded to a domestic disturbance call involving a gun. Officers spoke with a woman who said Thomas was armed with a shotgun, had threatened to kill her, and that Thomas had left the residence in a black Jeep. Officers also discovered that Thomas had an outstanding warrant for armed robbery in Marion County. IMPD officers later located Thomas in possession of a loaded 20-gauge shotgun, sitting in a parking lot of a liquor store. Thomas is prohibited from lawfully possessing firearms or ammunition due to multiple prior felony convictions, including four separate armed robbery convictions. Because of his prior convictions, Thomas is an Armed Career Criminal under federal law and subject to enhanced penalties for illegally possessing a firearm.
“Time and again, we have seen that domestic violence by people with illegal access to firearms is a precursor to murder in the home and mass violence in public,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “The serious sentence imposed here shows that violent, illegally armed criminals will face serious consequences in federal court. Our prosecutors will work closely with the ATF, IMPD, and other law enforcement partners to investigate and prosecute these offenders and make our communities and homes safer.”
“The defendant in this case has a history of violent acts, including armed robbery and domestic violence,” stated Daryl S. McCormick, Special Agent in Charge of ATF’s Columbus Field Division. “We know that it is a few individuals who cause a large share of the violence we see. ATF and our partners at IMPD will continue to focus on those who are using guns to cause harm and remove them from our community.”
“This is yet another example of the value our federal partners bring to fighting violent crime in Indianapolis,” said IMPD Chief Randal Taylor. “I am grateful for the work our detectives, federal investigators, and federal prosecutors put into this case as well as their continued collaboration.”
The Indianapolis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case. The sentence was imposed by U.S. District Judge Sarah Evans Barker following Thomas’s guilty plea. As part of the sentence, Judge Barker ordered that Thomas be supervised by the U.S. Probation Office for five years following his release from prison
U.S. Attorney Myers thanked Assistant U.S. Attorney Adam Eakman who prosecuted this case.
This case was brought as part of the LEATH Initiative (Law Enforcement Action to Halt Domestic Violence), named in honor of Indianapolis Metropolitan Police Department (IMPD) Officer Breann Leath, who was killed in the line of duty while responding to a domestic disturbance call. A partnership among the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the IMPD, and the U.S. Attorney’s Office for the Southern District of Indiana, the LEATH Initiative focuses federal, state, and local law enforcement resources on domestic violence offenders who illegally possess firearms.
This case is also 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.