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Thursday 28 April 2022
Tracy Man Charged with Distribution and Possession of Child Pornography and Being a Felon in Possession of AmmunitionRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Wayne Lee Hauzer, 57, of Tracy, charging him with distribution and possession of child pornography and being a felon in possession of ammunition, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Hauzer used the Kik messaging application to communicate with an undercover FBI agent whom he believed to be a 13-year-old girl, and sent the undercover agent a video of child pornography. Hauzer also possessed additional images of child pornography. In addition, Hauzer possessed 35 rounds of 9 mm caliber ammunition in a closet near a firearm without a serial number, which is known as a “ghost gun.” Hauzer is prohibited from possessing firearms or ammunition after having been convicted of felonies, including the enticement of a minor and distribution of child pornography.
This case is the product of an investigation by the Federal Bureau of Investigation and the FBI Child Exploitation and Human Trafficking Task Force (CEHTTF) with assistance from the Tracy Police Department. Assistant U.S. Attorney Shelley D. Weger is prosecuting the case.
If convicted, Hauzer faces a maximum statutory penalty of 40 years in prison, a $250,000 fine, and potentially a lifetime of supervised release. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Thrice-Convicted Rhode Island Businessman Sentenced for Pocketing Employee Federal Withholding TaxesRead the Press Release
PROVIDENCE – A Rhode Island businessman convicted of misusing more than a half-million dollars in employment taxes collected from his employees to finance his own personal expenditures, including rent payments on a luxury home and fess for online dating services, has been sentenced to nearly three years in federal prison, announced United States Attorney Zachary A. Cunha.
Steven M. Allard, 60, of North Scituate, owner and operator of BR Steel Corporation in Burrillville and Greystone Iron Corporation in Smithfield, previously admitted in court that from at least 2017 through 2018, he failed to turn over to the IRS more than $570,000 in federal employment taxes and FICA payments withheld from his employees. Instead, Allard used the money to pay for personal expenditures including the purchase of more than $216,000 in “credits” to an online dating website, RussianBrides.com, and $93,000 in rent payments for a luxury home in Scituate.
Allard pleaded guilty on September 20, 2020, to willful failure to collect or pay over taxes. He was sentenced today by U.S. District Court Chief Judge John J. McConnell, Jr., to 33 months in federal prison to be followed by three years of federal supervised release; and pay $625,186.29 restitution to the IRS.
This case marks the third federal conviction and sentencing of Allard in U.S. District Court in Rhode Island. In 2009, Allard pleaded guilty to tax evasion and bankruptcy fraud and was sentenced to 30 months in prison. In that matter, Allard admitted that from March 2005 to July 2006, he diverted for his own use $1.6 million dollars due the IRS; and that he made false statements about real estate holdings in a bankruptcy filing in 2005. Prior to that, Allard was found guilty by a jury at trial of accepting kickbacks from public employees and was sentenced to 10 months in federal prison.
Allard’s most recent federal case was prosecuted by Assistant U.S. Attorney Sandra R. Hebert.
The matter was investigated by the Internal Revenue Service Criminal Investigation, the FBI, and the U.S. Department of Labor Employee Benefits Security Administration.
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Texas Man and Arkansas Woman Arrested for Running Illegal Money Transmitting BusinessRead the Press Release
BOSTON – A Texas man and an Arkansas woman were arrested today in connection with allegedly operating a money transmitting business that laundered the proceeds of online investment fraud schemes.
Charles Ochi, 27, of Grand Prairie, Texas, and Danielle Liggins, 32, of Little Rock, Ark., were charged with one count of conspiracy to conduct an unlicensed money transmitting business. Ochi and Liggins were arrested this morning in the Northern District of Texas and the Western District of Arkansas, respectively, and will appear in federal court in Boston at a later date.
According to the charging document, Ochi met Liggins in Texas through a dating website and convinced Liggins to help him run a cryptocurrency company, even though Liggins did not know anything about cryptocurrency. It is alleged that Ochi and Liggins used two sham companies to transmit proceeds of Ponzi-style investment fraud schemes based in Nigeria. Specifically, the schemes purported to offer trading and Bitcoin investing services when, in fact, investor funds were stolen and later victims’ investments were used to pay purported returns to earlier investors.
To conduct the scheme, Liggins allegedly opened bank accounts at Ochi’s direction and used sham businesses, Global Prime and Liggins Starflexx Commercial, to receive money from investing victims, which she either withdrew or mailed to individuals designated by Ochi using cashier’s checks. For each transaction, Ochi paid Liggins about $1,000. Liggins and Ochi allegedly transmitted fraud proceeds from at least three online investment fraud schemes, with victims in Massachusetts, California, Florida and Canada. Ochi and Liggins did not hold money transmitting licenses in Texas, nor were they registered as money transmitters as required by federal law.
The charge of conspiracy to operate an unlicensed money transmitting business provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the value of the laundered funds, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Jennifer De La O, Director of Field Operations of U.S. Customs and Border Protection, Boston Field Office made the announcement today. Valuable assistance was provided by the Division of Enforcement at the Commodity Futures Trading Commission. Assistant U.S. Attorney Kriss Basil of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Tampa Man Who Brandished Firearm While Driving Pleads Guilty to Possessing A Firearm and Ammunition as A Convicted FelonRead the Press Release
Tampa, Florida –United States Attorney Roger B. Handberg announces that Karey Tyrone Taylor, II (42, Tampa) has pleaded guilty to possessing a firearm and ammunition as a convicted felon. Taylor qualifies for an increased penalty under the Armed Career Criminal Act. He faces a maximum penalty of life in federal prison. A sentencing date has not yet been set.
According to court documents, on January 2, 2021, Taylor brandished a firearm at a woman while they were driving in adjacent lanes on East Fowler Avenue in Tampa. Units from the Tampa Police Department (TPD) subsequently located Taylor’s car at a nearby gas station. After apprehending Taylor, TPD discovered a black handgun in the driver’s side door pocket of Taylor’s car. The handgun had one round of ammunition in the chamber and 14 rounds of ammunition in an extended magazine. Taylor had previously been convicted of several felony offenses, including a conviction for possession of a firearm as a convicted felon and convictions for multiple serious drug offenses, and is therefore prohibited from possessing firearms or ammunition.
This case was investigated by the Tampa Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Risha Asokan.
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.
Tallahassee Man Convicted of Sex Trafficking of A MinorRead the Press Release
TALLAHASSEE, FLORIDA – A federal jury in Tallahassee convicted Tyron Columbia Watson, 39, of Tallahassee, Florida of two counts of Sex Trafficking of a Minor Under the Age of 14. The guilty verdict, returned yesterday, at the conclusion of a three-day trial, was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
“The jury’s verdict provides justice for this child victim and affirms our commitment to the protection of our most vulnerable,” said U.S. Attorney Coody. “Through concerted efforts like Operation Stolen Innocence we will continue to work tirelessly with our law enforcement partners to investigate and prosecute those who prey upon our children.”
“Operation Stolen Innocence was part of the Tallahassee Police Department’s collective commitment to dismantle sexual exploitation in our community,” said Chief Lawrence Revell. “We are pleased to see another offender found guilty of their crimes against those most vulnerable in our community. The continuous arrests resulting from this operation are a true testament to the diligent work of our investigators and every agency we have worked with in this mission.”
“The successful federal prosecution of this child predator is a testament to the partnership, dedication and commitment of HSI, the Tallahassee Police Department, and the Northern District of Florida U.S. Attorney’s Office, to aggressively protect our most vulnerable victims, the children in our communities,” said HSI Jacksonville Assistant Special Agent in Charge K. Jim Phillips.
Watson faces a mandatory minimum term of fifteen years imprisonment to Life imprisonment, a $250,000 fine, and a maximum term of Life on supervised release.
This conviction was the result of a collaborative investigation by the Tallahassee Police Department and Homeland Security Investigations as part of Operation Stolen Innocence, a multi-agency coordinated effort by the United States Marshals Service, the Florida Department of Law Enforcement, the Leon County Sheriff’s Office, and the Office of State Attorney, Second Judicial Circuit, to combat human trafficking in the Tallahassee area. First Assistant United States Attorney Michelle Spaven and Special Assistant United States Attorney Khari James prosecuted this case.
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.
Strongsville Man Charged with Defrauding SNAP Program and Theft of Public MoneyRead the Press Release
Acting U.S. Attorney Michelle M. Baeppler announced that a federal grand jury returned a four-count indictment charging Sleiman Awada, 54, of Strongsville, Ohio, with stealing public funds and with participating in a conspiracy to defraud the Supplemental Nutrition Assistance Program (SNAP) program.
According to the indictment, the defendant worked with others at a convenience store on Warrensville Center Road in Warrensville Heights, Ohio. This convenience store was registered with the U.S. Department of Agriculture Food and Nutrition Service (USDA-FNS) to participate in the SNAP program and receive benefit payments. The indictment alleges that from May 2019 through September 2020, the defendant and others directed certain individuals to use their SNAP benefits to purchase items at other stores only to be resold in the Warrensville Heights convenience store at a profit.
In one example, it is alleged that the defendant met with an individual at the convenience store and provided that person with $150.000 in exchange for $389.37 worth of products that the defendant knew had been acquired outside of the convenience store and purchased with SNAP benefits.
The indictment also alleges that during this time, the defendant was fraudulently receiving benefits through Medicaid, Social Security, and SNAP. Though the defendant worked at the convenience store, he failed to disclose that work when applying for benefits. The defendant also created fictitious paystubs indicating that the defendant’s wife worked for and received payment from the convenience store. It is alleged that the defendant knew this to be untrue and failed to disclose his own work at the store in order to receive government benefits to which he was not entitled, including SNAP, Medicaid, and Social Security disability benefits.
In total, the defendant is accused of receiving more than $215,000 in Medicaid benefits, $100,000 in SNAP benefits, and more than $200,000 in disability insurance benefits.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it is the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the court after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offenses, and the characteristics of the violation.
In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
This case was investigated by the Federal Bureau of Investigation, the United States Department of Agriculture Office of Inspector General, the Social Security Administration Office of Inspector General, the Internal Revenue Service Criminal Investigation Division, and the Health and Human Services Office of Inspector General. This case is being prosecuted by Assistant U.S. Attorney Segev Phillips.
Springfield Man Pleads Guilty to Distribution of FentanylRead the Press Release
BOSTON – A Springfield man pleaded guilty yesterday in federal court in Worcester to drug trafficking charges involving fentanyl.
Juan Jimenez, 48, pleaded guilty to one count of conspiracy to distribute 40 grams or more of fentanyl and two counts of possession with intent to distribute and distribution of 40 grams or more of fentanyl. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Sept. 15, 2022. Jimenez was charged in May 2021 and subsequently indicted in June 2021.
On multiple occasions in May 2021, Jimenez sold fentanyl to an undercover agent. Specifically, on May 12, 2021, Jimenez met the undercover officer at a parking lot in Sturbridge where he provided the agent with a package containing almost 50 grams of fentanyl. During the meeting, Jimenez expressed to the agent that he did not want to have “that much” on him and therefore intended to bring another individual to future meetings to handle transactions. On May 19, 2021, Jimenez drove himself and another individual to the same parking lot to meet with the undercover agent. There, Jimenez sent his accomplice to provide the agent with a package containing 50 grams of fentanyl.
The charge of conspiracy to distribute 40 grams or more of fentanyl provides for a sentence of up to 40 years in prison, at least four years of supervised release and a fine of $5 million. The charges of possession with intent to distribute and distribution of 40 grams or more of fentanyl provide for a sentence of at least 10 years and up to life in prison, eight years of supervised release and a fine of up to $8 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Southbridge Police Chief Shane Woodson; and Sturbridge Police Chief Earl Dessert made the announcement today. Assistant U.S. Attorney Kristen M. Noto of Rollins’ Worcester Branch Office is prosecuting the case.
Slidell Resident Sentenced to 120 Months for Conspiring to Distribute Five Kilograms or More of Cocaine, 280 Grams or More of Crack, and 1.5 Kilograms or More of HeroinRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that U.S. District Court Judge Wendy B. Vitter today sentenced KENDRICK DEMOURELLE, age 40, a resident of Slidell, Louisiana, to 120 months of imprisonment, five years of supervised release, and $300 in mandatory special assessment fees for conspiring to distribute cocaine, crack, and heroin, and for the illegal use of phones in furtherance of drug trafficking, in violation of 21 U.S.C. §§ 841(a)(1), (b)(1)(B), 843(b), and 846. DEMOURELLE plead guilty on November 2, 2021.
According to court records, the United States is seeking to forfeit approximately $120,308.00, two vehicles, and two properties acquired by DEMOURELLE with suspected drug proceeds which have been seized in connection with the investigation. DEMOURELLE and four others, Joseph Brown, Lionel Cooley, Kevin Gray, and Blake Monroe, conspired to sell illegal narcotics in New Orleans, including using a broken-down yellow school bus in the ‘Goose’ neighborhood in New Orleans East as a stash house. All five were indicted in February 2020. A seized GMC Sierra pickup truck used by Lionel Cooley contained nearly two kilograms of cocaine and 430 grams of crack.
As part of his guilty plea, DEMOURELLE agreed that he was responsible for at least 5 kilograms of cocaine, at least 280 grams of crack, and at least 1.5 kilograms of a mixture or substance containing a detectable amount of heroin, through his own conduct and the reasonably foreseeable conduct of his co-conspirators.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration, Jefferson Parish Sheriff’s Office, Hammond Police Department, New Orleans Police Department, and Slidell Police Department in investigating this matter. Assistant United States Attorney David Howard Sinkman is in charge of the prosecution.
Sioux City Man Who Distributed over 90 Pounds of Methamphetamine Sentenced to Federal PrisonRead the Press Release
A Sioux City man who sold large quantities of methamphetamine and cocaine around Sioux City was sentenced April 28, 2022 to more than 20 years in federal prison. Isidro Jaramillo, age 41, from Sioux City, received the prison term after a November 17, 2021, guilty plea to conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine.
Evidence showed that beginning in 2019 Jaramillo started selling approximately 40 pounds of meth per month in the Siouxland area. By December 2019, he stored over two pounds of cocaine, 68 pounds of marijuana, and 28 pounds of methamphetamine in a co-conspirator’s basement and coordinated the sale of the drugs, which originated from Mexico, over the course of a few months. In March of 2021, Jaramillo sold 6 pounds of methamphetamine to an undercover law enforcement officer for $10,000. During a subsequent search of Jaramillo’s residence, agents located approximately 3 pounds of methamphetamine and the $10,000 in cash used to purchase the 6 pounds of methamphetamine. Jaramillo was previously convicted in the United States District Court for the District of Nebraska of conspiracy to distribute methamphetamine.
Jaramillo was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Jaramillo was sentenced to 250 months’ imprisonment. He must also serve a 10-year term of supervised release after the prison term. There is no parole in the federal system.
Jaramillo is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Ron Timmons and was investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-04021.
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Seal Cove Man Sentenced to 70 Years for Multiple Child Pornography OffensesRead the Press Release
BANGOR, Maine: A Seal Cove man was sentenced today in federal court for three counts of production of child pornography, one count of transportation of child pornography and one count of possession of child pornography, U.S. Attorney Darcie N. McElwee announced.
U.S. District Judge Lance E. Walker sentenced Keegan Richardson, 28, to 70 years in prison and a lifetime of supervised release. He was also ordered to pay $29,000 in restitution. Richardson pleaded guilty on October 4, 2021.
“These cases shock the conscience,” Judge Walker said in handing down the sentence. “It is impossible to overstate the harm the defendant has inflicted on [these children] and, by extension, to an unknown degree, on the community at large. What is just punishment for terrorizing [these children] and marketing that terrorism to strangers over the internet?”
According to court records, on July 6, 2020, Richardson entered a private internet chat group and began communicating with an undercover FBI agent. This chat group was known to the agent as a place where people met, discussed and traded original child sexual abuse material of underage children and links to child pornography. Richardson confirmed that he had access to a female minor and shared multiple sexually explicit images of the minor with the agent. A search warrant was obtained for Richardson’s residence and phone, and he was arrested. Investigators later learned that he had access to two additional minors. On his phone, a forensic examiner found multiple sexually explicit images of the three minors that Richardson had taken with his phone. Additional child sexual abuse material involving different minors was also discovered.
The FBI, the Hancock County Sheriff’s Office, the Maine State Police, and the Maine Drug Enforcement Agency investigated the case.
“Holding those who engage in child exploitation enterprises and create child sexual abuse material accountable is and will remain a top priority for the Justice Department, the FBI and our office,” McElwee said. “Keegan Richardson not only preyed on children, he callously violated three children who trusted him, causing lasting and profound damage. I can think of no greater violation, and I commend the FBI for their quick action to protect those children from further harm.”
Project Safe Childhood: 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 Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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*Corrected 04/29/22: U.S. District Judge Lance E. Walker was incorrectly listed as “U.S. District Judge Lawrence E. Walker” in the original press release dated 04/28/22. The press release has been updated with the correct information.
Schenectady Man Sentenced for Drug ConvictionRead the Press Release
ALBANY, NEW YORK – James King, age 33, of Schenectady, New York, was sentenced today to 78 months in prison for possessing and intending to distribute methamphetamine.
The announcement was made by United States Attorney Carla B. Freedman; Special Agent in Charge Frank A. Tarentino III, U.S. Drug Enforcement Administration (DEA), New York Division; New York State Police Superintendent Kevin P. Bruen; and Matthew Scarpino, Acting Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
As part of his guilty plea, King admitted that between February and March 2021, he sold methamphetamine twice and possessed methamphetamine with intent to distribute on March 17, 2021. In total, King admitted to selling more than 150 grams of methamphetamine.
Chief United States District Judge Hon. Glenn T. Suddaby also imposed a term of 4 years of supervised release to follow the term of incarceration.
This case was investigated by DEA, the New York State Police, and HSI, with assistance from the Schenectady Police Department and the Guilderland Police Department, and was prosecuted by Assistant U.S. Attorney Alexander P. Wentworth-Ping.
Salamanca Man Arrested on Multiple Child Pornography Charges Including Production, Receipt and PossessionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Robert Calkins, Jr., 37, of Salamanca, NY, was arrested and charged by criminal complaint with production, receipt, and possession of child pornography. The charges carry a mandatory minimum penalty of 15 years in prison, lifetime supervised release, and a $250,000 fine.
Assistant U.S. Attorney David J. Rudroff, who is handling the case, stated that according to the complaint, in April 2020, the New York State Police (NYSP) began an investigation after receiving multiple reports from the National Center for Missing and Exploited Children (NCMEC) referencing Calkins as the subject of activity and material involving suspected child pornography. In September 2020, NYSP investigators executed a search warrant at Calkins’ E. Jefferson Street residence in Salamanca, seizing four cell phones and an SD card. A forensic analysis recovered thousands of images and videos of suspected child pornography on the phones and SD card. Some of the images depict a minor female whom Calkins had contact with. Also recovered were sexually explicit Facebook Messenger conversations between Calkins and what is believed to be a 16-year-old minor female.
The complaint is the result of an investigation by the New York State Police, under the direction of Major Eugene Staniszewski, and Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Matthew Scarpino.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Robert Lenard Booth Convicted of Defrauding Investors of Nearly $2 MillionRead the Press Release
Damian Williams, United States Attorney for the Southern District of New York, announced today that ROBERT LENARD BOOTH, a/k/a “Trevor Nicholas,” was found guilty on all counts of a three-count Indictment that charged him with defrauding victim investors in countries around the world and laundering the proceeds of the fraud. The verdict followed a six-day jury trial in Manhattan Federal Court before U.S. District Judge Jed S. Rakoff.
U.S. Attorney Damian Williams said: “Robert Lenard Booth stole his victims’ lifesavings and moved the money around the world to hide his elaborate fraud. He thought he could get away with it. Today the jury showed him he was wrong.”
According to the Indictment and the evidence at trial:
From at least June 2019 through August 2021, BOOTH ran, and conspired with others to run, a boiler room operation that impersonated Manhattan-based brokerage firms and sold investors nearly $2 million in securities that they never received. To deceive investors, BOOTH and his co-conspirators created fake identities and false and misleading webpages, email addresses, and phone numbers. On phone calls with investors, BOOTH and others pretended to be licensed brokers, lied, and used high-pressure tactics to pitch stocks for American companies. They followed up by sending the victims false paperwork to confirm the alleged stock purchases and trades.
The victims were directed to wire payments—sometimes hundreds of thousands of dollars—to shell company accounts in New York, Hong Kong, and Singapore. The funds were laundered and distributed to BOOTH and his co-conspirators.
BOOTH was convicted of conspiracies to commit securities fraud, wire fraud and money laundering. He faces a maximum sentence of 45 years in prison and a maximum fine of $500,000 or twice the gross gain or gross loss from the offense.
Formerly a resident of Brooklyn, New York, BOOTH, 68, relocated overseas and spent years operating his scheme from Thailand and Panama. In August 2021, BOOTH flew from Thailand into JFK International Airport and was arrested on arrival. Pending trial, BOOTH resided in Brooklyn, where he lived until his conviction today. Judge Rakoff revoked his bail and remanded him following the conviction.
Mr. Williams praised the outstanding investigative work of the Special Agents of the United States Attorney’s Office, Homeland Security Investigations, and the Internal Revenue Service, Criminal Investigation and their partnership with the J5. The J5 works together to gather information, share intelligence and conduct coordinated operations against transnational financial crimes. The J5 includes the Australian Taxation Office, the Canadian Revenue Agency, the Dutch Fiscal Information and Investigation Service, Her Majesty's Revenue and Customs from the U.K. and IRS-CI from the U.S.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Andrew Jones, Jane Y. Chong, and Andrew Thomas are in charge of the prosecution.
Retired Jacksonville School Teacher Pleads Guilty to Possessing Videos and Images Depicting the Sexual Abuse of ChildrenRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announced that Michael Paul Gillis (64, Jacksonville) has pleaded guilty to possessing computer media containing images and videos depicting the sexual abuse of young children. He faces up to 20 years in federal prison and a potential lifetime term of supervised release. Gillis was arrested by FBI agents on February 2, 2022, and has been detained since that time. His sentencing hearing has not yet been scheduled.
According to court documents and information provided in open court, FBI agents were investigating individuals who were using a particular online file-sharing network to receive and share child pornography. The investigation revealed that Gillis, a retired public-school teacher, had accessed this network from his residence.
On February 2, 2022, FBI agents executed a search warrant at Gillis’s home. Gillis, who was home at the time, admitted that he had been accessing child sexual abuse materials using the internet for at least the past 15 years, that he had viewed materials depicting children as young as 3 years old, and that he currently had “a couple hundred” contraband videos on his computer. Gillis also admitted that he viewed child sexual abuse materials while working as a teacher and would fantasize about touching children inappropriately but claimed that he never acted on it. During the execution of the search warrant, FBI personnel seized several computers belonging to Gillis that contained at least 2,000 images and 210 videos depicting infants, toddlers, and other young children being sexually abused.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney D. Rodney Brown. The forfeiture of assets is being handled by Assistant United States Attorney Mai Tran.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Recidivist Sex Offender Sentenced to 20 Years in Prison for Attempted Enticement of 12-Year-Old and 9-Year-Old Girls and Attempted Receipt of Child PornographyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that STEVE ROSADO, a registered sex offender, was sentenced today by the Honorable Jed S. Rakoff to 20 years in prison for attempting to entice two minor girls to engage in illegal sexual activity, and for attempting to receive child pornography after having been previously convicted of sex offenses involving minors. ROSADO was arrested in December 2020 and pled guilty to the charges in November 2021.
U.S. Attorney Damian Williams said: “Steve Rosado tried to – and in some cases, did – prey on the most defenseless members of our community. He attempted to engage in repeated sexual activity with multiple children, some of whom he believed to be as young as 9 years old, even after having been twice before convicted of sex offenses and required to register as a sex offender. Crimes like this can have devastating and lasting effects on minor victims, and I once again thank the FBI and the NYPD for their work in investigating and arresting Rosado before he could harm any others.”
According to public court filings:
On November 29, 2020, an undercover FBI agent (the “UC”), posing as the mother of a 12-year-old girl and a 9-year-old girl, initiated a series of conversations with ROSADO, then 41 years old, via an online messaging service. The UC and ROSADO later exchanged telephone numbers, and they proceeded to communicate over the next week via the online messaging service, text message, and lengthy telephone conversations that were recorded by the UC.
In hundreds of text messages, and hours of calls, ROSADO repeatedly expressed, in graphic and unambiguous terms, his desire to engage in repeated sexual activity with both children – including both oral and vaginal sex – as part of their “new routine together.” To help alleviate any concerns the UC might have regarding ROSADO having sexual relations with her young children, ROSADO provided the UC with his recent test results for COVID-19 and HIV, and he discussed what he and the UC could do if he were to impregnate one of the children.
The UC and ROSADO arranged to meet at a bar in Manhattan on the evening of December 7, 2020, with the understanding that they would return to the UC’s apartment afterward and ROSADO would then engage in sexual activity with the children. On the evening in question, ROSADO met the UC at the agreed-upon location. After the two of them left the bar and began walking toward the UC’s purported apartment, law enforcement arrested ROSADO. ROSADO was at the time in possession of gifts for the children – including dolls and a stuffed animal – and an overnight bag containing, among other things, lubricant.
That same day, law enforcement seized multiple electronic devices belonging to ROSADO. Subsequent searches of those devices by law enforcement, pursuant to search warrants, revealed that ROSADO had for weeks been communicating online with several other individuals who purported to be minors – some purporting to be as young as 13 years old – in an ongoing effort not only to receive child pornography, but also to persuade the young victims to move to New York to live with him, so that he could engage in sexual activity with them, impregnate them, and eventually engage in sexual activity with their future children. ROSADO’s electronic devices further revealed that during this same period, ROSADO was engaged in an ongoing sexual relationship with a 16-year-old female victim.
At the time he committed the aforementioned offenses, ROSADO was a registered sex offender, having twice before been convicted of sex offenses involving minors. In 2004, ROSADO was convicted of possessing a sexual performance by a child, in violation of New York State Penal Law § 263.16; and in 2005, ROSADO was convicted of four counts of rape in the second degree, in violation of New York State Penal Law § 130.30(1), four counts of rape in the third degree, in violation of New York State Penal Law § 130.25(2), and two counts of endangering the welfare of a child, in violation of New York State Penal Law § 260.10(1). The 2004 conviction arose out of ROSADO’s stalking and attempted kidnapping of a 13-year-old female victim he met online, and the 2005 conviction arose out of ROSADO’s having had sexual intercourse approximately 24 times with a 14-year-old female victim. As a result of his prior convictions, ROSADO was incarcerated from December 2005 to October 2013.
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In addition to his prison term, ROSADO, 42, of the Bronx, New York, was sentenced to lifetime supervised release.
Mr. Williams praised the outstanding investigative work of the FBI-NYPD Child Exploitation and Human Trafficking Task Force.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Jonathan L. Bodansky, Jane Y. Chong, and Elinor L. Tarlow are in charge of the prosecution.
Readout of Deputy Attorney General Lisa O. Monaco’s Trip to New York CityRead the Press Release
This week, Deputy Attorney General (DAG) Lisa O. Monaco traveled to New York City for a series of engagements that highlighted the department’s efforts to root out corporate crime, reduce violence and reform the Bureau of Prisons (BOP).
On Tuesday, DAG Monaco visited the U.S. Attorney’s Office for the Eastern District of New York (EDNY), where she met with U.S. Attorney Breon Peace and his leadership team. She received an update on the investigation into the recent mass shooting on the New York Subway in Brooklyn, and she commended the case team for their hard work. The DAG also chaired a roundtable discussion with federal and local law enforcement leaders on violent crime, and she answered questions from the EDNY office during an all-hands meeting.
Also on Tuesday, DAG Monaco visited the Metropolitan Detention Center (MDC) in Brooklyn to observe its operation and integration of inmates from the Metropolitan Correctional Center in Manhattan. The DAG made the decision to close that facility following a visit last year. At the MDC in Brooklyn, she met with BOP staff, heard about their efforts to improve facility operations and thanked them for their commitment to BOP’s dual mission of providing safe, humane custody while also preparing individuals for a return to society.
On Wednesday morning, DAG Monaco participated in a moderated discussion as the keynote address at the New York City Bar Association’s 10th Annual White Collar Crime Institute. The DAG warned that the department is seeing a growing overlap between corporate crime and national security, in areas such as terrorist group financing, money laundering to evade sanctions and cybercrime. In the course of her conversation, the DAG reiterated that the Department of Justice is committed to enforcing the sweeping sanctions imposed on Russia in response to its unprovoked invasion of Ukraine and stressed that it is critically important for financial institutions and international corporations alike to pay close attention to these sanctions.
From there, the DAG went to the U.S. Attorney’s Office for the Southern District of New York (SDNY), where she joined the U.S. Attorney and other law enforcement leaders to announce the unsealing of charges against four individuals for the multibillion-dollar collapse of Archegos Capital Management. In her remarks, the DAG stressed that the Department of Justice’s first priority in corporate criminal matters is unambiguously “to prosecute the individuals who commit and profit from corporate malfeasance — including when those individuals occupy the C-Suite.”
The DAG also met with U.S. Attorney Damian Williams and his leadership team, and she received a series of case briefings from SDNY personnel. Her visit to SDNY concluded with an all-hands meeting, where she addressed an office-wide gathering and fielded questions. In her remarks to the office, she thanked the women and men of SDNY for their hard work on behalf of the citizens throughout the district.
Finally, on Wednesday afternoon, the DAG met with NYPD Commissioner Keechant Sewell. She discussed the work of the Department of Justice to combat violent crime and gun trafficking and thanked the Commissioner for the work of the NYPD, and for the vital partnerships among state, local and federal law enforcement that are essential to keeping our communities safe. The DAG also acknowledged the recent, tragic shootings of NYPD officers and the sacrifices made by law enforcement around the country every day.
The DAG returned to Washington this morning.
Previously convicted felon pleads guilty to firearms possessionRead the Press Release
ALBUQUERQUE, N.M. – Richard “Sky” Kuykendall, 42, of Albuquerque, pleaded guilty today in federal court to being a felon in possession of a firearm and ammunition. Kuykendall will remain in custody pending sentencing, which has not been scheduled.
A federal grand jury indicted Kuykendall on June 9, 2021. According to the plea agreement and other court records, on May 12, 2021, Kuykendall was present at the scene of a gun fight in Albuquerque. After that gun fight, Kuykendall possessed a Beretta 9mm pistol.
Prior to the offense, Kuykendall, who is originally from Gloucester, Massachusetts, had been convicted of larceny, conspiracy to commit larceny, receiving or transferring a stolen motor vehicle, unlawful taking of a vehicle, forgery and identity theft. As a previously convicted felon, Kuykendall cannot legally possess a firearm or ammunition.
By the terms of the plea agreement, Kuykendall faces 18 months in prison.
The FBI investigated this case with assistance from the Albuquerque Police Department. Assistant U.S. Attorneys Paul Mysliwiec and Samuel Hurtado are prosecuting the case.
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Phoenix Man Sentenced to 12 Years for Smuggling Firearms and Drug TraffickingRead the Press Release
PHOENIX, Ariz. – Pedro Adan Sevilla, 25, of Phoenix, Arizona, was sentenced on Monday by U.S. District Judge Scott H. Rash to 12 years in prison for his role in smuggling firearms and munitions from the United States into Mexico and for drug trafficking. Sevilla previously pleaded guilty to Conspiracy to Smuggle Goods from the United States, Possession with Intent to Distribute Fentanyl and Possession of a Firearm During and in Relation to a Drug Trafficking Crime.
Sevilla’s co-defendant, Francisco Dario Mora, 28, of Tucson, Arizona, was previously sentenced on April 29, 2021 to five years in prison for his role in the smuggling activity. On Monday, Judge Rash also issued a Final Order of Forfeiture for the value of the firearms and munitions in the amount of $32,663.48 against both defendants and ordered $12,970 cash forfeited against Sevilla.
In September 2019, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) initiated an investigation into firearms purchased by Mora and Sevilla that were recovered in Mexico by Mexican law enforcement officials. ATF agents discovered that from June 2019 through September 2019, Mora and Sevilla conspired to export 40 firearms to Mexico, including AK-type rifles and AR-type pistols, 25,000 rounds of ammunition, and 760 AK-type and AR-type magazines. During this time frame, Mora purchased at least 19 firearms, one of which was recovered in Zapopan, Jalisco, Mexico just 27 days after he purchased it. Sevilla purchased at least 21 firearms, two of which were recovered in Mexico a short time after they were purchased. Mora and Sevilla spent approximately $45,000 for the firearms and ammunition and crossed into Mexico from the United States on several dates to the deliver the firearms and munitions.
On November 13, 2019, ATF agents executed search warrants on residences and vehicles tied to Mora and Sevilla in Tucson and Phoenix. During the search of Sevilla’s Phoenix residence, agents located a safe in Sevilla’s bedroom where they found 19 grams of cocaine and 11.9 pounds of fentanyl pills. Agents also located a bag inside Sevilla’s bedroom that contained six bags of fentanyl pills, an AR-type pistol with a loaded magazine, $12,970 cash, and a digital narcotics scale.
ATF conducted the investigation in this case, with assistance from the United States Border Patrol and Homeland Security Investigations. Assistant U.S. Attorney Serra M. Tsethlikai, District of Arizona, Tucson, handled the prosecution .
CASE NUMBER: CR-19-3289-SHR-MSA
RELEASE NUMBER: 2022-055_Sevilla# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Pharmacy Owner Pleads Guilty in Health Care Fraud and Kickback SchemeRead the Press Release
A New York man pleaded guilty today to conspiracy to commit health care fraud and unlawfully spending the proceeds of his $6.8 million fraud.
According to court documents, Robert John Sabet, 46, of Brooklyn, the owner of two New York City pharmacies, conspired to bill Medicare and Medicaid for expensive prescription drugs that were not needed by patients, were dispensed in connection with kickbacks, or, in some cases, not dispensed at all. As part of the conspiracy, Sabet and others paid kickbacks and bribes to customers to convince them to fill prescriptions at his pharmacies, and paid customers cash in exchange for the ability to bill Medicare and Medicaid for over-the-counter health care-related products on their behalf. Sabet used proceeds of the scheme to purchase luxury items, such as a 2020 Porsche Taycan worth over $250,000.
Sabet pleaded guilty to conspiracy to commit health care fraud and committing unlawful financial transactions. He is scheduled to be sentenced on July 29 and faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Breon Peace for the Eastern District of New York; Special Agent in Charge Scott J. Lampert of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Office of Investigations, New York Regional Office; Special Agent in Charge Thomas Fattorusso of IRS-Criminal Investigation (IRS-CI), New York; and Acting Medicaid Inspector General Frank T. Walsh Jr. of the New York State Office of the Medicaid Inspector General (OMIG) made the announcement.
HHS-OIG, IRS-CI, and OMIG investigated the case.
Trial Attorney Miriam Glaser Dauermann of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Brendan King for the Eastern District of New York are prosecuting the case.
Panola County Men Sentenced for Federal Drug Trafficking CrimesRead the Press Release
TYLER, Texas – Three brothers and another man, all from Carthage, have been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Lavara Geray Hinton, 39, pleaded guilty on July 22, 2021; Perry Cornelius Hinton, 42, pleaded guilty on May 6, 2021; Alex Christopher Hinton, 41, pleaded guilty on May 19, 2021; and David Wayne Anderson, 41, pleaded guilty on July 22, 2021--all to conspiring to distribute methamphetamine. Lavara Hinton was sentenced to 120 months in federal prison, Perry Hinton was sentenced to 64 months in federal prison, Alex Hinton was sentenced to 120 months in federal prison, and David Anderson was sentenced to 120 months in federal prison today by U.S. District Judge J. Campbell Barker.
According to information presented in court, the Hinton brothers, Anderson, and other co-conspirators purchased bulk methamphetamine from various suppliers and distributed it to mid-level dealers and retail customers in the Panola County area. Lavara Hinton would accept firearms in trade for methamphetamine and would later sell the firearms. Lavara Hinton sold more than 600 grams of pure methamphetamine and 33 firearms to confidential informants working with law enforcement. Perry and Alex Hinton assisted Lavara Hinton by coordinating bulk methamphetamine purchases from their suppliers and also sold methamphetamine to their own customer bases. Anderson purchased methamphetamine from Lavara Hinton for personal use and for further distribution to his own customers.
The Hinton brothers, Anderson, and two others whose cases remain pending were indicted by a federal grand jury on Sep. 17, 2020, and charged with federal drug trafficking and firearms violations.
This effort is part of an Organized Crime Drug Enforcement Task Force (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.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, the Panola County Sheriff's Office, the Gregg County Sheriff's Office, and prosecuted by Assistant U.S. Attorney D. Ryan Locker.
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Panamanian National Guilty of East Texas Drug Trafficking ViolationsRead the Press Release
SHERMAN, Texas – A Panamanian national has pleaded guilty to drug trafficking violations during his federal trial in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Jorge Albeiro Silva-Salazar, 53, pleaded guilty to conspiracy to manufacture and distribute five kilograms or more of cocaine for distribution into the United States and manufacturing and distributing five kilograms or more of cocaine for distribution into the United States. Silva-Salazar changed his plea to guilty on April 26, 2022, in the middle of the second day of his federal trial, before U.S. District Judge Amos L. Mazzant, III.
According to information presented in court, Silva-Salazar, aka Don Guillermo, is a Panamanian-based cocaine broker who utilized couriers to transport cocaine shipments from Colombia into Panama for further distribution to the United States. Airplanes, go-fast boats, semi-tractor trailer trucks, and passenger vehicles were used to transport most of the cocaine shipments.
“The coordination between the Eastern District of Texas and Republic of Panama is a premier example of law enforcement not only crossing borders, but continents, to keep our communities safer,” said U.S. Attorney Brit Featherston. “We are grateful to the Panamanian prosecutors, law enforcement officers and forensic chemists who work alongside our own federal agents and prosecutors to ensure justice prevails.”
“While thousands of miles away, the cocaine trafficking activity Mr. Silva-Salazar affected the lives of many people living in our East Texas neighborhoods,” said Eduardo A. Chávez, Special Agent in Charge of the DEA Dallas Field Division. “DEA offices both here in Dallas and in Panama are committed to ensuring justice is served and are continually working with our foreign counterparts to achieve our mutual goals of safety and security for our neighborhoods, whether in Sherman, Texas, or Panama City, Panama.”
A federal grand jury returned an indictment charging Silva-Salazar with federal drug trafficking violations on August 9, 2017. He faces up to life in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing 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 U.S. Probation Office.
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.
This case was investigated by the U.S. Drug Enforcement Administration and the Panama National Police and prosecuted by Assistant U.S. Attorney Colleen Bloss.
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Owner of Pharmacies in Brooklyn and Queens Pleads Guilty in Health Care Fraud and Kickback SchemeRead the Press Release
BROOKLYN, NY – Earlier today, in federal court in Brooklyn, Robert John Sabet, the owner of Brooklyn Chemists in Gravesend, Brooklyn, and Lucky Care Pharmacy in Flushing, Queens, pleaded guilty before United States Magistrate Judge Vera M. Scanlon to conspiracy to commit health care fraud and unlawfully spending the proceeds of his $6.8 million fraud. When sentenced, Sabet faces up to 10 years in prison.
Kenneth A. Polite, Jr., Assistant Attorney General of the Justice Department’s Criminal Division; Breon Peace, United States Attorney for the Eastern District of New York; Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General, New York Regional Office (HHS-OIG); Thomas Fattorusso, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI); and Frank T. Walsh, Jr., Acting Medicaid Inspector General, New York State Office of the Medicaid Inspector General (OMIG), announced the guilty plea.
According to court documents, Sabet conspired to bill Medicare and Medicaid for expensive prescription drugs that were not eligible for reimbursement because they were not needed or not dispensed, and because they were dispensed in connection with kickbacks. As part of the conspiracy, Sabet and others paid kickbacks and bribes to customers to convince them to fill prescriptions at his pharmacies, and paid customers cash in exchange for the ability to bill Medicare and Medicaid for over-the-counter health care-related products on their behalf. Sabet used proceeds of the scheme to purchase luxury goods and a 2020 Porsche Taycan worth over $250,000.
The case is being prosecuted by Trial Attorney Miriam L. Glaser Dauermann of the Justice Department’s Fraud Section. Assistant United States Attorney Brendan King of the Eastern District of New York’s Asset Recovery Section, is handling forfeiture matters. The case was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York.
The Defendant:
ROBERT JOHN SABET
Age: 46
Brooklyn, New YorkE.D.N.Y. Docket No.: 21-CR-140 (EK)
Old Town Man Pleads Guilty to Being a Felon in Possession of a FirearmRead the Press Release
BANGOR, Maine: An Old Town man pleaded guilty in federal court today to being a felon in possession of a firearm, U.S. Attorney Darcie N. McElwee announced.
According to court records, in October 2021, a concerned citizen saw William Abney, 57, in possession of an AK-47 style rifle in the living room of Abney’s Old Town residence and notified the police. Based on this and other information, a search warrant was executed at Abney’s residence. During the execution of the search warrant, Abney admitted that he possessed an AK‑47. In Abney’s room, law enforcement found an AK-47 under the mattress and an AK-47 magazine full of ammunition. Abney has a 1999 conviction in U.S. District Court in Bangor for being a felon in possession of a firearm.
Abney faces up to 10 years in prison and a $250,000 fine. He also faces up to three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Bureau of Alcohol, Tobacco, Firearms and Explosives; the Old Town Police Department and the Brewer Police Department investigated the case. The Penobscot County District Attorney’s Office also assisted with the case.
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New York Man Sentenced to 24 Years in Prison for Attempting to Entice Minor to Have SexRead the Press Release
CAMDEN, N.J. – A New York man was sentenced today to 24 years in prison for attempting to entice a minor and traveling from New York to New Jersey to meet an individual, whom he believed was a 13-year-old girl, to engage in sexual activity, U.S Attorney Philip R. Sellinger announced.
Eduardo Silva, 44, of Bronx, New York, previously pleaded guilty via videoconference before U.S. District Judge Renée Marie Bumb to an information charging him with one count of coercion and enticement of a minor and one count traveling with the intent to engage in illicit sexual conduct with a minor. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
On Sept. 5, 2020, Silva, while using an online social media application, sent a message to an individual he believed was an underage girl, but who was in fact an undercover federal agent. Silva asked whether the minor was “into older guys” and over the next several days sent a series of explicit online communications and text messages, discussing his intent to travel to meet the minor and engage in sexual activity with her. On Sept. 23, 2020, Silva was arrested when he traveled from the Bronx to a motel in Bordentown, New Jersey, intending to meet a 13-year-old girl for sex.
In addition to the prison term, Judge Bumb sentenced Silva to lifetime supervised release.
U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, Cherry Hill Office, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to today’s sentencing. He also thanked the Burlington County Prosecutor’s Office, under the direction of Prosecutor Scott A. Coffina, and the Bordentown Township Police Department, under the direction of Chief of Police Brian Pesce, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Ray Mateo of the U.S. Attorney’s Office, Opioid Abuse Prevention and Enforcement Unit in Newark.
New York Man Pleads Guilty to Armed Bank RobberyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on April 27, 2022, Michael Muse, age 44, of Brooklyn, New York, pleaded guilty before U.S. District Court Judge Malachy E. Mannion to the charge of armed bank robbery.
According to United States Attorney John C. Gurganus, Muse committed armed robbery of the ESSA Bank, located in Middle Smithfield Township, Monroe County, on September 16, 2021. During the robbery Muse pointed what appeared to be a firearm (later discovered to be an air pistol) at the bank tellers. Muse stole approximately $9,031.
Judge Mannion ordered that a presentence investigation take place. Sentencing will be scheduled at a later date.
The charge against the defendant resulted from an investigation conducted by the Pennsylvania State Police and the FBI Safe Streets Task Force. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Under federal law, Muse faces a maximum sentence of up to twenty-five years in prison, 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.
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National Crime Victims’ Rights WeekRead the Press Release
BIRMINGHAM, Ala. – U.S. Attorney Prim F. Escalona joins the Department of Justice and communities nationwide in observing National Crime Victims’ Rights Week, April 24-30. This year’s theme “Rights, Access, Equity, for all Victims,” emphasizes the importance of helping crime survivors by enforcing federal victim’s rights, expanding access to services, and ensuring equity and inclusion for all.
“This week we reflect on our responsibilities to crime victims in our communities and renew our commitment to enforcing victims’ rights and providing victim services,” U.S. Attorney Escalona said. “Working together with community partners, we are better able to serve victims of crime and support them through the healing process.”
Over the past year, the U.S. Attorney’s Office for the Northern District of Alabama has provided direct services to over 900 crime victims. We also worked alongside community partners to raise awareness and host trainings and events for community members and law enforcement focused on human trafficking and opioids. Our office continues to maintain pivotal partnerships with One Place Metro Birmingham Family Justice Center, One Place of the Shoals, North Alabama Human Trafficking Task Force, Cullman County Human Trafficking Task Force, Agency for Substance Abuse Prevention, and the Vicarious Trauma Initiative Team. These partnerships are key to expanding access to services and enabling crime victims to find the justice they seek, in whatever form that might take.
The Justice Department’s Office for Victims of Crime (OVC) leads communities throughout the country in their annual observances of National Crime Victims’ Rights Week (NCVRW), during which victim advocacy organizations, community groups, and state, and local agencies traditionally host rallies, candlelight vigils, and other events to raise awareness of victims’ rights and services. For more information about this year’s NCVRW and how to assist victims in your own community, please visit the National Crime Victims’ Rights Week website.
The following event will be held in our local area to commemorate NCVRW 2022:
- NCVRW Candlelight Vigil hosted by the Jefferson County District Attorney’s Office, Bessemer Division on Thursday, April 28, 2022, beginning at 6 p.m. at Perfecting Reconciliation Church, 1723 3rd Avenue North, Bessemer.
Morgan City Man Pleads Guilty in Staged Automobile Collision SchemeRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced today that DAVID BROWN (“BROWN”), age 50, of Morgan City, pled guilty on April 27, 2022 to Count One (1) of his indictment, charging him with Conspiracy to Commit Mail Fraud in violation of Title 18, United States Code, Section 371. By pleading guilty to Count 1, the defendant faces a maximum penalty of five (5) years’ imprisonment; a term of supervised release of up to three (3) years; and a fine of up to $250,000.00, as well as a mandatory special assessment fee of $100.00. Today’s guilty plea brings the total number of defendants convicted in Operation Sideswipe to 37.
According to court documents, BROWN falsely claimed that he was a passenger in a car that was struck by a tractor-trailer on May 11, 2017. In fact, the defendant conspired with Damian Labeaud (“Labeaud”), Mario Solomon (“Solomon”), and others to intentionally collide with a tractor-trailer in the area of Chef Menteur Highway and Downman Road in New Orleans. After the intentional collision, BROWN falsely informed NOPD officers at the scene that he had been driving the vehicle and that the tractor-trailer was at fault. BROWN also filed a fraudulent lawsuit and lied in a deposition. This scheme caused the insurance company for the tractor-trailer to pay over $140,000.00 in settlement funds for the May 11, 2017 collision. The Honorable Jane Triche Milazzo set sentencing in this matter for July 27, 2022.
The U.S. Attorney’s Office would like to acknowledge the assistance of the Federal Bureau of Investigation, the Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Maria M. Carboni; Brian M. Klebba, Chief of the Financial Crimes Unit; Assistant U.S. Attorney Edward Rivera; and Assistant U.S. Attorney Brandon S. Long.
Money Courier for Large-Scale Fentanyl Trafficking Ring Sentenced to More than 9 Years in Federal PrisonRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that DOMINGO GUZMAN, 45, last residing in Waterbury, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 114 months of imprisonment, followed by four years of supervised release, for his role in a fentanyl trafficking ring, and for violating the conditions of his supervised release that followed a prior federal conviction.
According to court documents and statements made in court, in July 2019, the DEA’s Hartford Task Force began investigating a Mexican-based drug trafficking organization that was distributing fentanyl and heroin in Connecticut. The investigation revealed that members of the organization were receiving kilogram-quantities of narcotics, primarily fentanyl, from a source of supply, and then distributing the drug to various narcotics traffickers who sold the drug to street-level distributors. Guzman collected narcotics proceeds on behalf of members of this organization. A money broker in Brooklyn, New York, assisted in laundering the narcotics proceeds before they were transferred to leaders of the drug trafficking organization. Between August and October 2019, investigators seized more than $200,000 in cash from members of the drug trafficking organization.
Members of the organization used several locations to store, process and package fentanyl for street stale, including office space on Pratt Street in Hartford, an apartment in the Asylum Hill neighborhood in Hartford, and an apartment in New Britain. On March 13, 2020, investigators searched an apartment on South Street in West Hartford that a co-defendant of Guzman used to process, package and store narcotics, and seized approximately 1.5 kilograms of fentanyl and approximately 500 wax folds of the drug.
Guzman and several co-defendants were arrested on April 28, 2020. On that date, investigators seized approximately $100,000 in cash, a firearm, several thousand wax folds of suspected fentanyl, and numerous items used in the processing and packaging of narcotics.
Guzman has been detained since his arrest.
On June 3, 2020, a grand jury returned an indictment charging Guzman and nine others with narcotics distribution and money laundering offenses. On November 22, 2021, Guzman pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 40 grams or more of fentanyl.
Guzman’s criminal history includes state drug convictions for drug, firearm, larceny and other offenses, and a federal conviction for operating an extensive cocaine and heroin trafficking enterprise out of a previous residence in Bridgeport. Guzman was sentenced to 188 months of imprisonment for his prior federal conviction, was released from prison in August 2019, and was on supervised release at the time of his arrest for his conduct in this case.
The DEA’s Hartford Task Force includes personnel from the DEA Hartford Resident Office, the Connecticut State Police, and the Bristol, Hartford, East Hartford, Enfield, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. Agencies assisting the investigation include the DEA New York Organized Crime Drug Enforcement Task Force (“OCDETF”) Strike Force and the New York Police Department.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Milwaukee Woman Federally Indicted for Purchasing a Firearm for Another PersonRead the Press Release
United States Attorney Richard G. Frohling announced on April 27, 2022, that a Milwaukee woman was indicted for purchasing a firearm for another person and making a false statement to a firearm’s dealer. Marquita A. Hale, (age: 26), was charged with making a false statement to a federally licensed firearms dealer in connection with the purchase of a firearm on June 17, 2021, which false statement was intended or likely to deceive the firearms dealer about whether to proceed with the sale. In particular, the indictment charged that Ms. Hale falsely indicated on a standard form that she would possess the firearm after the sale, when in fact, she knew she was buying the firearm for another person.
“The United States Attorney’s Office remains committed to working with our federal, state, local, and tribal partners to improve the safety of all of our communities,” stated U.S. Attorney Frohling. “This includes working together to hold individuals accountable who ‘straw purchase’ and supply firearms for others – including individuals who are prohibited from possessing firearms under state or federal law.”
“The Milwaukee Police Department (MPD) appreciates the hard work and effort from the ATF, the U.S. Attorney’s Office and MPD members that have been collaborating on this and other firearms investigations. Gun violence is an issue that is affecting our community and it is everyone’s responsibility to keep guns away from individuals that are prohibited from possessing a firearm,” said Milwaukee Police Chief Jeffrey Norman.
If convicted, Ms. Hale faces up to ten years in prison and three years of supervised release, plus up to a $250,000 fine.
This matter has been investigated by the Milwaukee Police Department and the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney Stephen A. Ingraham.
The public is cautioned that an indictment is merely a charge and the defendant is presumed innocent until and unless proven guilty.
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For further information contact:
Public Information Officer [email protected]
(414) 297-1700
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Mescalero man pleads guilty to domestic assaultRead the Press Release
ALBUQUERQUE, N.M. – Lance Cojo, 36, of Mescalero, New Mexico, and an enrolled member of the Mescalero Apache Tribe, pleaded guilty on April 26 in federal court to one count of assault of an intimate or dating partner resulting in substantial bodily injury and one count of assault of an intimate or dating partner by strangling. Cojo will remain in custody pending sentencing, which has not been scheduled.
In his plea agreement, Cojo admitted that on Dec. 31, 2021, on the Mescalero Apache Reservation, in Otero County, Mexico, he assaulted a victim, identified in court records as Jane Doe, by stomping on her foot, hitting her in the head multiple times, biting her cheek, and burning her on her right shoulder with a pipe used for smoking drugs. Cojo also grabbed Jane Doe by the throat to strangle her. The following day, Cojo continued to assault Jane Doe, hitting her in the head and kicking her in the back multiple times and strangling her.
Cojo’s assault resulted in serious injuries to Jane Doe, who is also a member of the Mescalero Apache Tribe. Jane Doe was taken to a medical center for her injuries where she was treated for a collapsed lung, fractured ribs, bruising to both eyes, face, neck and ribs.
By the terms of the plea agreement, Cojo faces two years in prison followed by three years of supervised release.
The Bureau of Indian Affairs investigated this case. Assistant U.S. Attorney Matilda McCarthy Villalobos is prosecuting the case.
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Manchester Man Charged with Illegal Gun PossessionRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Manchester Police Chief William Darby today announced that a federal grand jury in Bridgeport has returned an indictment charging ELLIOTT OTERO, 32, of Manchester, with unlawful possession of a firearm by a felon.
The indictment was returned under seal on April 20, 2022. Otero appeared yesterday before U.S. Magistrate Judge Robert A. Richardson in Hartford and entered a plea of not guilty. He has been detained since his arrest on related state charges on February 25, 2022.
As alleged in the indictment, on February 25, 2022, Otero possessed a loaded Smith & Wesson M&P 380 Shield pistol.
It is further alleged that Otero’s criminal history includes state felony convictions for firearm, robbery and larceny offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
If convicted of the charge, Otero faces a maximum term of imprisonment of 10 years.
U.S. Attorney Boyle stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by Federal Bureau of Investigation Connecticut Violent Crime Task Force and the Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorney Katherine E. Boyles.
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.
Man Who Spent A Year Distributing Child Pornography Sentenced to 20 Years in Federal PrisonRead the Press Release
Miami, Florida – A 31-year-old Miami man was sentenced yesterday in Miami federal court to 20 years in prison followed by 50 years of supervised release for distributing child pornography over the course of one year.
Gross spent a year on a social media messenger application, chatting and sharing videos and images of children being sexually abused. In the chats, Gross boasted about his sexual exploits with young girls, asked for explicit videos of young girls having sex, and sent a picture of his penis to ask if a young girl could “handle” it. During trial, he took to the witness stand and lied about his actions and signing a statement confessing to his actions, among other things, which caused an obstruction of justice enhancement to be applied at sentencing.
In addition to his 20-year prison sentence, Gross will be placed on supervised release for 50 years. A restitution hearing will be held in a few months to determine what he will have to pay the victims.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI Miami, announced the sentence imposed by U.S. District Judge Paul C. Huck.
FBI Miami - in particular FBI Miami’s Child Exploitation Task Force -, and the Miami Dade Human Trafficking Unit investigated the case, which was prosecuted by Assistant United States Attorneys Joseph Egozi and Abbie D. Waxman.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about the Project Safe Childhood initiative and for information regarding Internet safety, please visit www.justice.gov/psc.
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 21-cr-20532.
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Luzerne County Man Pleads Guilty to Methamphetamine TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Michael Marchese, age 30, of Swoyersville, Luzerne County, pleaded guilty on April 28, 2022, before U.S. District Court Judge Robert D. Mariani, to the charge of conspiracy to distribute more than fifty grams of methamphetamine.
According to United States Attorney John C. Gurganus, Marchese admitted to conspiring with other individuals to distribute methamphetamine in the Luzerne County area in 2020. The charges stem from an investigation in May 2020 in which police obtained a search warrant for a residence where Marchese was residing in Swoyersville and seized crystal methamphetamine, a scale, drug packing materials, and $2245 in U.S. Currency.
The investigation was conducted by the Luzerne County Drug Task Force, the Kingston Police Department and the Bureau of Alcohol, Tobacco and Firearms (ATF). Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The charge carries a mandatory minimum sentence of five years in prison, up to a maximum sentence of forty years in prison, 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.
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Louisiana Man Guilty of East Texas Federal Firearms ViolationsRead the Press Release
TYLER, Texas – A Baton Rouge man has been convicted of federal firearms violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Marland Henry Gibson, 52, was convicted of being a felon in possession of a firearm following a two-day trial before U.S. District Judge J. Campbell Barker.
According to information presented in court, on March 20, 2021, Gibson was stopped for speeding on Interstate-20 in Gregg County. During the traffic stop, it was determined Gibson had an outstanding warrant for failing to appear in Marion County, Indiana on a charge of unlawful possession of a firearm by a serious violent felon. Gibson was arrested on the warrant and a subsequent search of the vehicle revealed not only a handgun hidden in a compartment behind the vehicle’s dashboard, but a suitcase in the rear of the vehicle containing the following items:
- a 144 Tactical LLC, model PS 15, 300 Blackout, multi caliber, handgun with magazine;
- six (6) .45 caliber cartridges;
- thirty (30) assorted .223/300 caliber cartridges;
- two (2) extended P-mag magazines containing ammunition;
- twenty-seven (27) .300 caliber cartridges;
- forty (40) .223/300 caliber cartridges;
- a Springfield XD magazine containing ammunition;
- six (6) .45 caliber cartridges;
- a box containing forty-seven (47) .45 caliber, Federal brand, cartridges; and
- a box containing forty-six (46) .45 caliber, Winchester brand, cartridges.
Further investigation revealed Gibson is a convicted felon and prohibited by federal law from owning or possessing firearms or ammunition.
Gibson was indicted by a federal grand jury on June 17, 2021. He faces up to 10 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing 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 U.S. Probation Office.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Texas Department of Public Safety and the Gregg County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Jim Noble.
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Las Vegas woman guilty of fraud and money laundering chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Shelly Anne Leipham, of Las Vegas, Nevada, was found guilty by a federal jury today of fraud charges, United States Attorney William Ihlenfeld announced.
After a three-day trial, Leipham, 66, was found guilty of three counts of “Wire Fraud,” five counts of “Mail Fraud,” and three counts of “Money Laundering.” Leipham called an elderly victim living in Harrison County and claimed the victim won one million dollars. Leipham defrauded the victim of nearly $25,000 by directing the victim to send that amount to her over the course of a two-year period by mail and wire.
“Sweepstakes schemes like this continue to be a problem and the victims are often senior citizens,” said U.S. Attorney Ihlenfeld. “We will seek a long prison sentence for Ms. Leipham and anyone else like her who preys upon older West Virginians.”
The government is also seeking a money judgment in the amount of $336,402.
Leipham is facing up to 20 years of incarceration and a fine of up to $250,000 for each of the wire fraud and mail fraud counts. She’s facing up to 20 years of incarceration and a fine of up to $500,000 for each of the money laundering counts. 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. Attorneys Sarah E. Wagner and Andrew R. Cogar are prosecuting the case on behalf of the government. The Internal Revenue Service, the West Virginia State Police, and the Harrison County Sheriff’s Office investigated.
This case is being prosecuted as a part of the Department of Justice Elder Fraud Initiative. Since the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) was signed into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors.
Chief U.S. District Judge Thomas S. Kleeh presided.
La Joya residents sentenced for fraud schemesRead the Press Release
McALLEN, Texas – The former mayor of La Joya and two others have been ordered to federal prison for wire fraud, announced U.S. Attorney Jennifer B. Lowery.
Former mayor Jose Adolfo Salinas, 83, pleaded guilty July 19, 2021, while his daughter - Frances Salinas De Leon, 54 - and Ramiro Alaniz, 40, both admitted to their guilt June 17, 2021. All are from La Joya
Today, U.S. District Judge Randy Crane sentenced Salinas to 33 months in prison, while his daughter was ordered to serve a 39-month-term of imprisonment. Alaniz received nine months. All must also serve three years of supervised release following their sentences. At the hearing, the court heard additional information concerning the financial damage the fraud schemes had caused.
In assessing the financial loss, Judge Crane considered additional relevant conduct including property Salinas had sold to the City of La Joya at an inflated rate as well as De Leon’s theft from the La Joya Housing Authority while she was acting as the interim executive director. Judge Crane noted how the case demonstrates the culture of corruption that existed in La Joya at the time of the schemes, adding that while public office is for service and self-sacrifice, Salinas used his position to benefit himself and his family financially.
“Rio Grande Valley residents rightfully expect elected leaders to remain ethical and trustworthy while serving the community,” said FBI Special Agent in Charge Oliver E. Rich Jr. “This sentencing demonstrates the FBI’s firm commitment to address public corruption and hold corrupt officials accountable.”
Salinas entered his plea in relation to a public relations contract his daughter had drafted and brokered with the city on behalf of another individual. She was, in turn, to receive some of the proceeds resulting from that deal. De Leon was not a city employee, but used her relationship with Salinas to get the contract approved so she could receive a significant amount of the contract’s proceeds. Salinas used his authority to approve and city funds to pay for the contract.
Additionally, Le Leon admitted to wire fraud in connection with loans received for a children’s day care project. During 2017, the La Joya Economic Development Corporation, which her father headed, provided approximately $341,000 in loans to De Leon and other individuals to pay for the construction of the project. De Leon stole some of the funds and also received kickbacks from some of the subcontractors.
De Leon hired Alaniz as a general contractor. He also received kickbacks from the project.
All were permitted to remain on bond pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI, Department of Housing and Urban Development - Office of the Inspector General (OIG) and U.S. Department of Agriculture - OIG conducted the investigation. Assistant U.S. Attorneys Sarina S. DiPiazza, Roberto Lopez Jr. and James Sturgis prosecuted the case.
Kentucky Man Facing Federal Charges for Defrauding Former Evansville EmployerRead the Press Release
EVANSVILLE – On April 21, 2022, a federal grand jury in the Southern District of Indiana returned an indictment charging James H. Cox, 44, of Robards, Kentucky, with ten counts of wire fraud. The indictment was unsealed late yesterday following the defendant’s arrest.
According to court documents, Cox was formerly employed as the Parts Manager for a business located in Evansville. Cox was responsible for ordering parts and logging them into inventory. From approximately 2016 to 2020, Cox is alleged to have defrauded his employer by ordering parts that the business did not need, stealing the parts, selling them on eBay, and retaining the proceeds from the sales for his own personal benefit. Cox did not disclose to eBay or potential buyers that the products listed for sale were stolen.
If convicted, Cox faces up to 20 years’ imprisonment, three years’ supervised release, and a $250,000 fine on each count. Actual sentences are determined by a federal district court judge and are typically less than the maximum penalties. The defendant was ordered detained in the custody of the United States Marshal pending a hearing scheduled for Friday, April 29, 2022.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, Herbert Stapleton, Special Agent in Charge of the FBI Indianapolis Field Office, and Andrew M. Campion, Acting Special Agent in Charge of the USSS Indianapolis Field Office made the announcement.
The Federal Bureau of Investigation and United States Secret Service are investigating the case. The Vanderburgh County Sheriff’s Office also provided valuable assistance.
U.S. Attorney Myers thanked Assistant United States Attorney Matthew Miller, who is prosecuting this case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law
Jacksonville Sexual Predator Sentenced to 35 Years for Using Hidden Camera to Produce and Possess Child Sexual Abuse Videos and ImagesRead the Press Release
Jacksonville, Florida – Chief United States District Judge Timothy J. Corrigan has sentenced James Thomas Butler II (41, Jacksonville) to 35 years in federal prison for the production, attempted production, and possession of videos and images depicting the sexual abuse of a minor child. Butler was also ordered to serve a 25-year term of supervised release. A federal jury had found Butler guilty in December 2021. Butler was arrested on October 2, 2018, and has been detained since his arrest.
In 2001, Butler was convicted of attempted capital sexual battery and lascivious molestation of minor children in Jacksonville, and since then he has been registered and designated as a sexual predator.
According to court documents and evidence and testimony admitted during the trial, on May 2, 2018, FBI agents and other law enforcement officers executed a search warrant at a residence in Jacksonville where Butler and several other registered sex offenders lived. During an interview with law enforcement, FBI agents obtained a smart phone from Butler. A forensic examination of Butler’s smart phone revealed that it contained sexually explicit videos and images of a minor child that appeared to have been filmed using a camera concealed in a bedroom. Through further investigation, law enforcement was able to identify this child as well as the residence located in north Florida where the camera was concealed. On October 2, 2018, FBI agents and personnel executed a federal search warrant at this residence and discovered that Butler had installed a tiny internet-enabled camera device in an air vent in the child’s bedroom. Butler had wired this hidden camera into the house’s electrical system through the attic and was able to control this camera remotely over the internet using an app on his smart phone, collecting videos, and creating customized, lascivious screenshots of the child. A forensic review of Butler’s smart phone revealed that it contained at least 65 videos and 35 screenshots that depicted the child in various stages of undress.
This case was investigated by the Federal Bureau of Investigation, the Jacksonville Sheriff’s Office, and the Duval County School Police Department. It was prosecuted by Assistant United States Attorney D. Rodney Brown. The forfeiture of assets is being handled by Assistant United States Attorney Mai Tran.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Jacksonville Methamphetamine Dealers Sentenced to Federal PrisonRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced three Jacksonville men to federal prison for their roles in a conspiracy to distribute methamphetamine. Steven Ray McWhorter (49) was sentenced to 11 years and 4 months, Christopher Douglas Green (48) was sentenced to 10 years, and Kevin Joseph DeWitt (50) was sentenced 3 years and 1 month. A fourth individual, Michael Brandon Voght (28, Jacksonville), was charged in the same indictment and was sentenced to 1 year and 6 months for possessing a firearm as a convicted felon. The Court also ordered McWhorter to forfeit $21,000, two firearms, and ammunition, which were used to facilitate and/or were proceeds of McWhorter’s drug trafficking activities. Each of the defendants had previously pleaded guilty.
According to court documents, from June to November 5, 2020, McWhorter, Green, and DeWitt worked together to distribute methamphetamine. Specifically, McWhorter distributed 500 grams or more of methamphetamine, while Green and Witt distributed 50 grams of more of methamphetamine. Several controlled purchases of methamphetamine were made during the investigation. In addition, law enforcement made a controlled purchase of a 12-gauge shotgun from Voght. Voght had previously been convicted of a felony and is therefore prohibited from possessing a firearm under federal law.
This case was investigated by the Jacksonville Sheriff’s Office, the Florida Highway Patrol, the Hillsborough County Sheriff’s Office, the Nassau County Sheriff’s Office, the Drug Enforcement Administration, and the Bureau of Alcohol Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorneys Beatriz Gonzalez and Ashley Washington. The forfeiture of assets was handled by Assistant United States Attorney Mai Tran.
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.
Honduran national admits to deadly smuggling incidentRead the Press Release
LAREDO, Texas - A 26-year-old Honduran man has pleaded guilty to transporting undocumented aliens resulting in a death, announced U.S. Attorney Jennifer B. Lowery.
Darwuin Sai Kabrera-Garsia pleaded guilty to smuggling three non-U.S. citizens resulting in the death of one.
On Nov. 9, 2021, Kabrera-Garsia acted as a brush guide to smuggle three non-U.S. citizens from Mexico into the United States. Kabrera-Garsia and the group crossed Texas Highway 83. At that time, an oncoming SUV struck an individual of the group. She died at the scene.
U.S. District Judge Diana Saldana will impose sentencing at a future date. If convicted, Kabrera-Garsia faces up to life in federal prison and a possible $250,000 maximum fine.
Kabrera-Garsia has been and will remain in custody pending that hearing.
Homeland Security Investigations conducted the investigation with the assistance of Border Patrol and the Laredo Police Department. Assistant U.S. Attorneys Matthew Isaac and Anthony G. Brown are prosecuting the case.
Hartford Man Pleads Guilty to Possessing Firearm While on Federal Supervised ReleaseRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that ANDRE HUDSON, 43, of Hartford, pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to unlawful possession of a firearm by a felon. Hudson also admitted that he violated the conditions of his supervised release from a prior federal conviction.
According to court documents and statements made in court, on September 8, 2021, a Connecticut State Police trooper stopped a vehicle that Hudson was driving at a high rate of speed. At the time of the traffic stop, Hudson possessed a loaded Kel-Tec, Model P-11 9mm pistol and a distribution quantity of marijuana. Hudson was arrested at that time.
Hudson’s criminal history includes a 2007 federal conviction in Connecticut for distributing crack cocaine, for which he was sentenced to 108 months of imprisonment, and a 2019 federal conviction in Vermont for distributing crack and heroin, for which he was sentenced to 30 months of imprisonment and an additional 24 months of imprisonment for violating the conditions of his supervised release in the Connecticut case. In June 2020, Hudson was granted compassionate release from prison due to the coronavirus pandemic. He was on supervised release at the time of his arrest in September 2021.
Judge Meyer scheduled sentencing for July 28, at which time Hudson faces a maximum term of imprisonment of 10 years for the firearm offense, and up to two years of imprisonment for violating the conditions of his supervised release.
Hudson is released on bond in home confinement while awaiting sentencing.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.
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.
Gary Man Sentenced to 63 Months in PrisonRead the Press Release
HAMMOND- Michael Thedford, 29 years old, of Gary, Indiana, was sentenced by United States District Court Judge James T. Moody on his plea of guilty to possessing an unregistered machinegun, announced United States Attorney Clifford D. Johnson.
Thedford was sentenced to 63 months in prison followed by 3 years of supervised release
According to documents in the case, on March 21, 2019, law enforcement executed a search warrant at Thedford’s residence and recovered narcotics, five loaded firearms with high capacity magazines, and hundreds of rounds of ammunition. Also recovered was a Glock firearm that contained a conversion device also known as a “Glock Switch” that converted the semi-automatic firearm to a fully automatic weapon. This weapon was required to be registered in the National Firearms Registration and Transfer Records in accordance with the National Firearms Act but was not.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case was prosecuted by Assistant United States Attorneys Caitlin M. Padula and Kevin Wolff.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Four Men Convicted in New Orleans Murder for HireRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that LOUIS AGE JR., age 73, and LOUIS’ son, LOUIS AGE III, a/k/a “Big Lou”, age 51, RONALD WILSON a/k/a “Tank”, age 47, and STANTON GUILLORY a/k/a “Nan-Nan”, age 27, all from New Orleans, were found guilty yesterday after a three-week jury trial before United States District Judge Barry W. Ashe. They were found guilty of various violations, including conspiracy to commit murder for hire, murder for hire, and other related offenses along with lying to a federal agent.
Milton Womack was shot and killed on July 27, 2012. On August 17, 2017, a federal grand jury returned a superseding indictment charging LOUIS AGE JR., LOUIS AGE III, a/k/a “Big Lou”, RONALD WILSON a/k/a “Tank”, and STANTON GUILLORY a/k/a “Nan-Nan” with a variety of crimes related to an alleged plot to murder Milton Womack. These crimes were committed both to retaliate against and prevent Mr. Womack from testifying in a federal health care fraud trial and from cooperating with law enforcement about the health care fraud as well as other crimes, including the use of fire to commit mail fraud.
AGE JR. was also charged and convicted of crimes related to an alleged plot against another witness. Additionally, AGE JR. was charged and convicted of making false statements to federal agents. AGE III was also charged and convicted of making false statements to federal agents.
LOUIS AGE JR., LOUIS AGE III, a/k/a “Big Lou”, RONALD WILSON a/k/a “Tank”, and STANTON GUILLORY a/k/a “Nan-Nan” all face a mandatory life sentence. Sentencing will be held before United States District Judge Barry W. Ashe on August 4. 2022.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter. Assistant United States Attorneys Elizabeth Privitera, David Haller, Brandon Long and Ted Carter are in charge of the prosecution.
Former Department of Unemployment Assistance Employee Sentenced to 42 Months in Prison for COVID-19 Fraud SchemeRead the Press Release
BOSTON – A former employee of the Massachusetts Department of Unemployment Assistance (DUA) was sentenced yesterday for conspiring to misuse her position in an effort to obtain Pandemic Unemployment Assistance (PUA) funds through fraudulent claims, including claims using identities she stole.
Tiffany Pacheco, a/k/a Tiffany Tavery, 36, formerly of New Bedford, was sentenced by U.S. District Court Judge Indira Talwani to 42 months in prison and three years of supervised release. The defendant was also ordered to pay restitution in the amount of $199,555 and forfeiture of $17,181. On Aug. 30, 2021, she pleaded guilty to six counts of wire fraud, one count of conspiracy to commit wire fraud and one count of aggravated identity theft.
Tiffany Pacheco was hired by the DUA in April 2020, shortly after her release from federal prison following a conviction for aggravated identity theft. While employed by DUA, Tiffany Pacheco abused her position and access to the PUA claim system to submit fraudulent claims using stolen identity information and to submit fraudulent PUA claim information on behalf of herself and her husband, Arthur Pacheco, who was incarcerated in Texas until Sept. 4, 2020, and thus ineligible for PUA funds. Tiffany Pacheco also induced a friend to continue her scheme after she was caught, charged and detained.
“Ms. Pacheco violated the public’s trust by egregiously abusing her position as a DUA employee to perpetrate a fraud scheme that stole personal information from innocent victims and stole money from hardworking taxpayers,” said United States Attorney Rachael S. Rollins. “COVID-related assistance is intended to help hardworking American workers most affected by the pandemic. To take from these funds is to take from those experiencing legitimate hardship and genuine need. Adding insult to injury, Ms. Pacheco’s job at DUA presented an opportunity for new beginnings following her previous felony conviction. However, she ruined that opportunity by engaging in criminal behavior and refusing to change. Now she will be held responsible.”
“Pacheco abused her privileged access to the personal information of Massachusetts residents seeking unemployment assistance. She stole identities and manipulated records in the Pandemic Unemployment Assistance computer system in a scheme to enrich herself and her husband without regard for the lives of those whose identities were impacted or for the funds that should have gone to those in legitimate need,” said Matthew Millhollin, Special Agent in Charge for the Homeland Security Investigations’ New England Field Office.
“Tiffany Pacheco, while employed at the Commonwealth of Massachusetts, Department of Unemployment Assistance (DUA), engaged in a scheme to defraud the Department of Unemployment Assistance by applying for and receiving Pandemic Unemployment Assistance that she was not entitled to, using her own identity, her husband's identity, and at least two stolen identities she accessed through DUA records. Pacheco abused her position at DUA by taking action on claims, including her husband's claim, to secure just under $200,000 in stolen benefits. The Office of Inspector General remains committed to protecting the integrity of the unemployment insurance program, particularly against those who attempt to use their positions of trust to enrich themselves at the expense of taxpayers,” said Special Agent-in-Charge Jonathan Mellone, U.S. Department of Labor, Office of Inspector General.
Tiffany Pacheco abused her employment-related access to DUA’s online PUA claim system to submit and make changes to claims for five individuals. For two of these claims, she used personal identifying information (PII) obtained by virtue of her job at DUA, while other claims used PII that she had obtained independently. Tiffany Pacheco also used her access to the PUA claim system to make unauthorized eligibility determinations to prompt the payment of benefits and to increase the amount of payments. The total loss associated with the fraudulent claims Tiffany Pacheco submitted using stolen PII is $159,922.
In June 2020, PUA claims submitted for Tiffany Pacheco and her husband reflected 2019 income of $0 and no dependents. In July 2020, via her employment with DUA, Tiffany Pacheco obtained access to the PUA computer system, and later changed claim information for herself and Arthur Pacheco in order to increase the amount of PUA funds they would receive. For example, Tiffany Pacheco increased the amount of 2019 income for her and Arthur Pacheco to more than $240,000 and increased the number of their dependents to seven. Tiffany Pacheco further used her access to the PUA system to verify the increased 2019 income on both claims without the required income verification documents.
In November 2020, Arthur Pacheco called DUA and falsely denied that he had been incarcerated during the timeframe leading up to September 2020, and that he was only incarcerated for approximately one month. Tiffany Pacheco also spoke with DUA and misrepresented the period of time in which Arthur Pacheco had been incarcerated.
Additionally, Tiffany Pacheco instructed Donna Wasson – a friend who resided in Texas – to use the DUA customer portal to access PUA claims for two of the fraudulent claims Tiffany Pacheco had submitted using stolen PII. Tiffany Pacheco further instructed Wasson to pose as a claimant and directed Wasson to a Google Drive account that contained the images of driver’s licenses and other documents under certain stolen identities. As a result, Wasson accessed unemployment claims under multiple stolen identities to fraudulently obtain benefits to which she was not entitled.
In September 2020, a search of the New Bedford apartment where Tiffany and Arthur Pacheco resided uncovered various tools of identity fraud, including an ID laminator, 100 blank ID cards, 68 hologram overlays, 150 card lamination sheets and 649 sheets of blank checks. Law enforcement also seized approximately $17,000 cash and a notebook that contained the personal identifying information of various individuals. In addition, a driver’s license recovered during the search matched the name of a victim Tiffany Pacheco used to submit another fraudulent PUA claim. On Sept. 23, 2020, DUA terminated Tiffany Pacheco’s employment.
On Nov. 18, 2021, Arthur Pacheco was sentenced by Judge Talwani to one year in prison and three years of supervised release. Arthur Pacheco was also ordered to pay restitution and forfeiture in the amount of $7,491. On March 8, 2022, Wasson was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to 18 months in prison and two years of supervised release. Wasson was also ordered to pay restitution and forfeiture in the amount of $5,437.
U.S. Attorney Rollins, HSI SAC Millhollin and DOL OIG SAC Mellone made the announcement today. The New Bedford Police Department, Massachusetts Parole Board and Massachusetts Department of Unemployment Assistance, Program Integrity Unit provided valuable assistance with the investigation. Assistant U.S. Attorney William Abely, Chief of Rollins’ Criminal Division and Assistant U.S. Attorney Dustin Chao, Chief of Rollins’ Public Corruption and Special Prosecutions Unit, prosecuted the case. The investigation was conducted by Homeland Security’s Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized field investigative group comprised of personnel from various local, state, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes.
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 DMV Employee Pleads Guilty to Conspiracy to Receive Bribes to Alter Records in DMV Database in SacramentoRead the Press Release
SACRAMENTO, Calif. — Shawana Denise Harris, 52, of Rancho Cucamonga, pleaded guilty today to conspiracy to commit bribery, to commit unauthorized access of a computer, and to commit identity fraud, which resulted in unqualified drivers receiving their California commercial driver’s licenses (CDLs), U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Nov. 16, 2017, Harris was charged with conspiring to receive bribes as a DMV employee in Rancho Cucamonga for accessing and altering records in the DMV’s database in Sacramento. During the scheme, Harris altered records to show that applicants for California CDLs had passed the required tests when, in truth, they had not done so, and in some cases had not even taken the tests. In so doing, this caused the DMV to issue permits and completed California CDLs despite the applicants not having taken or passed those tests.
This case is the product of an investigation by the California Department of Motor Vehicles, Office of Internal Affairs; the Federal Bureau of Investigation; Homeland Security Investigations; and the Department of Transportation, Office of Inspector General. Assistant U.S. Attorneys Rosanne L. Rust and Christopher S. Hales are prosecuting the case.
Harris is scheduled to be sentenced on July 28, 2022, by U.S. District Judge Troy L. Nunley. Harris faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Chicago-Area Tax Preparer Charged with False Returns and Wire FraudRead the Press Release
In an indictment unsealed today, a federal grand jury in Chicago charged a former Illinois tax preparer with filing false returns for clients, filing false returns on her own taxes, and wire fraud.
According to the indictment, from 2014 to 2019, Erica Early, formerly of Robbins and Richton Park, prepared income tax returns for her clients that included false education expenses and business income, in an effort to secure refunds from the IRS for the clients that they were not entitled to receive. Early, who was employed by the U.S. Postal Service at the time, allegedly charged clients $1,000 or more for each return. Early also allegedly falsified her personal income tax returns for 2014 through 2018, claiming education credits she knew she was not eligible to receive.
If convicted, Early faces a maximum penalty of three years for each count of filing false tax returns and helping clients file false tax returns, and 20 years in prison for each count of wire fraud. She also faces a period of supervised release and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney John R. Lausch Jr. for the Northern District of Illinois made the announcement.
IRS-Criminal Investigation is investigating the case.
Assistant Chief Matthew J. Kluge and Trial Attorney Boris Bourget of the Tax Division are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Assistant Controller Charged with Embezzling over $3 Million from Pennsylvania-Based Metal Salvage CompanyRead the Press Release
PHILADELPHIA –United States Attorney Jennifer Arbittier Williams announced that Tammy Simpson, 49, of Pocono Lake, PA, was charged by Indictment with wire fraud and filing false tax returns. These charges stem from the defendant’s employment with Metal Traders, Inc., d/b/a Triad Metals International (“Triad”), where she worked as the Assistant Controller for fourteen years.
The Indictment alleges that between 2012 and when she was terminated in October 2019, Simpson used her position at Triad to steal company money and use it to pay personal expenses charged to her credit cards and to make payments on personal loans. She allegedly did so by paying her personal credit card bills and loan payments with electronic transfers from the company’s business checking account. The defendant is also alleged to have kept credit cards from employees who had left the company and used them to charge personal expenses including airfare and other entertainment expenses for her family and friends, and to pay her personal tax liabilities and those of other individuals for whom she prepared tax returns. None of these payments or transfers were for legitimate business expenses of her employer. The Indictment further alleges that Simpson failed to report the money stolen from the company as income on her tax returns for tax years 2015 through 2018.
The Indictment seeks forfeiture of $3,199,192.68, which represents the total amount of money Simpson allegedly embezzled from her now former employer.
“This defendant allegedly swindled almost more than three million dollars from her former employer over the better part of a decade,” said U.S. Attorney Williams. “Instead of doing the right thing and performing her job honestly as the assistant controller for this company, she took advantage of her position and chose the greedy path. Our Office will continue to work with our law enforcement partners to protect innocent individuals and businesses from being victimized by financial fraud.”
“Tammy Simpson’s company entrusted her with key accounting duties,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Little did they know their longtime employee would take full advantage of that trust, allegedly diverting and using millions of dollars of the business’s money as her own. The FBI will diligently investigate and hold accountable anyone engaged in such egregious financial fraud.”
“No matter how it’s earned, all income must be reported,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty. “Simpson stands accused of treating Triad’s bank account as her personal bank account, supporting her lifestyle and that of her friends and family. This indictment should reassure those who play by the rules that IRS Criminal Investigation and its law enforcement partners will investigate anyone suspected of similar conduct.”
If convicted, Simpson faces a maximum possible sentence of 172 years in prison, three years of supervised release, a $2,400,000 fine and a $1200 special assessment.
The case was investigated by the Federal Bureau of Investigations and the Criminal Investigation Office of the Internal Revenue Service. It is being prosecuted by Assistant United States Attorney MaryTeresa Soltis
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Five Members of Violent Chester, PA Drug Gang Plead Guilty to Multiple Narcotics and Firearm OffensesRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Issac Barrett, 35; Kaleaf Gilbert, 30; Darnell Bell, 31; Terrance Womack, 35; and Jamar Bright, 33; all of Chester, PA, pleaded guilty this week before United States District Court Chief Judge Juan R. Sanchez to charges including conspiracy to distribute crack, cocaine and heroin, as well as related narcotics and gun offenses.
In October 2019, two dozen defendants were arrested pursuant to parallel Indictments of rival drug gangs that operated for years in and around the city of Chester, Delaware County: the “William Penn” drug trafficking group, which controlled the territory surrounding the Chester Housing Authority’s William Penn Homes, and their rivals the “3rd Bone” drug trafficking group, which held power in the area of 3rd and Lamokin Streets. This week, the remaining five William Penn defendants pleaded guilty, wrapping up the years-long investigation and prosecution, and ending this violent drug gang’s reign of terror in the greater Chester community. The defendants will be sentenced in August 2022, when defendants Barrett and Gilbert will face at least 15 years in prison due to the statutory mandatory minimum penalties on their drug and gun convictions.
As established during their plea hearings, defendant Issac Barrett served as the group’s source of supply, ensuring that his co-conspirators had a constant stock of crack, heroin, and cocaine, which his co-conspirators would then sell to their customer base of drug addicts. Co-defendant Kaleaf Gilbert managed a shared “trap phone” or drug phone, which the group, including co-defendants Bell and Womack, used to provide their joint customer base with around-the-clock access to crack and other controlled substances.
Not only did the William Penn defendants poison the Chester community with dangerous narcotics, they also used violence and threats of violence in furtherance of their drug trafficking crimes, including against the rival 3rd Bone gang. In February 2019, a dispute between the two gangs came to a head in an exchange of gunfire between Barrett and Gilbert and three 3rd Bone members in the parking lot of a downtown Chester bar, which resulted in the shooting and hospitalization of one of the rival gang members. Subsequent wiretapped calls with Gilbert’s phone revealed Gilbert attempting to get rid of the gun used in the shooting by throwing it on the roof of an adjacent building, trying to hide his bullet-ridden car, and cavalierly talking about the shooting and potential paralysis of the 3rd Bone member. Texts recovered from Barrett’s phone showed him placing a $15,000 bounty on a rival gang member whom he suspected was responsible for the shooting.
“These defendants and their co-conspirators in the William Penn gang, together with the defendants in 3rd Bone, terrorized the Chester community for years with their drug dealing and associated violence,” said U.S. Attorney Williams. “Barrett sourced and supplied dangerous narcotics, and Gilbert managed the distribution ‘business’ through a cell phone, a business which eventually led to a violent shooting. Thanks to the efforts of investigators at the FBI and DEA, the 3rd Bone and William Penn drug operations have been permanently shut down, making the streets safer and improving the quality of life for the Chester community.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated jointly by the Federal Bureau of Investigations and the Drug Enforcement Administration, working closely the Chester City Police Department, and is being prosecuted by Assistant United States Attorneys Matthew T. Newcomer and Meaghan A. Flannery.
Federal Jury Finds Boone County Man Guilty in Connection with Damage to Energy FacilityRead the Press Release
CHARLESTON, W.Va. – After two days of trial, a federal jury convicted a Boone County man today of attempting to damage the property of an energy facility, identified as a known mine located across Boone and Lincoln counties.
Evidence at trial revealed Brandon Beverly, 46, of Whitesville, helped to steal specialized mine equipment from the known mine in May and June 2019, resulting in more than $5,000 in damage.
Beverly is scheduled to be sentenced on July 28, 2022, and faces a maximum penalty of five years in prison, three years of supervised release and a $250,000 fine.
“I commend the West Virginia State Police and Lt. A.S. Perdue as well as the Federal Bureau of Investigation for their work on this case,” said United States Attorney Will Thompson. “I also applaud Assistant United States Attorneys Kathleen Robeson and Nowles Heinrich and the trial team for securing a guilty verdict. There is an extensive history of such wrongdoing in the Southern District, and this prosecution shows it won’t be tolerated. These crimes harm not just these facilities but the people who work at them.”
Senior United States District Judge John T. Copenhaver, Jr. presided over the jury trial.
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. 2:21-cr-260.
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Federal Jury Convicts Clackamas Man for Armed Robbery of PubRead the Press Release
PORTLAND, Ore.—On April 27, 2022, a federal jury in Portland found a Clackamas, Oregon man guilty for robbing a local public house at gunpoint and making off with five cartons of cigarettes.
Dustin Lee Henderson, 40, was found guilty of interfering with commerce with threats or violence; possessing a firearm in furtherance of, and using and carrying a firearm during and in relation to, a crime of violence; and illegally possessing a firearm as a convicted felon.
According to court documents, on November 22, 2019, Henderson robbed the Lighthouse Pub, a public house and deli located on 82nd Avenue in Clackamas. In video surveillance of the robbery, Henderson was seen handing the pub clerk a bag and taking five cartons of cigarettes. The pub’s owner chased Henderson through a parking lot when Henderson discharged a single round from his firearm, prompting the owner to stop the chase. Law enforcement later recovered a .22 caliber cartridge case near the site of the shooting.
Law enforcement later observed Henderson in a nearby mobile home lot and arrested him. Investigators executed a state search warrant on a mobile home where Henderson resided and recovered the stolen cigarette cartons, clothes worn by Henderson during the robbery, and a .22 pistol. A DNA analysis later linked Henderson to the seized firearm.
On January 22, 2020, a federal grand jury in Portland returned a three-count indictment charging Henderson with interfering with commerce with threats or violence, possessing a firearm in furtherance of a crime of violence, and illegally possessing a firearm as a convicted felon.
Henderson faces a maximum sentence of life in prison with a 10-year mandatory minimum sentence, a $250,000 fine and five years of supervised release.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) with assistance from Oregon State Police and the Clackamas County Sheriff’s Office. Assistant U.S. Attorneys Cassady Adams, Craig Gabriel, and Suzanne Miles prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.