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31 May 2022
Former Middle School Paraprofessional Charged in Child Sextortion SchemeRead the Press Release
MINNEAPOLIS – A Coon Rapids man has been charged in a sextortion scheme that targeted minors through social media and an online gaming forum, announced U.S. Attorney Andrew M. Luger.
According to court documents, Glen Robert Anderson, 24, previously worked as a middle school paraprofessional in special education. Anderson used multiple internet applications and social media accounts for email, file sharing, and chatting with minors, including Snapchat and Grindr. Anderson also owned and administered an online gaming forum. To participate in the forum, users were required to submit an application, which included the age of the user. As Anderson knew, many of the users were minors. Between April 1, 2016, through August 20, 2021, Anderson used his position as the forum administrator to groom minors to produce child pornography and engage in sexual activity with him, including by providing minors with in-game perks, privileges, and other gifts. For example, Anderson coerced a 13-year-old victim to engage in sexually explicit acts for the purpose of producing images and videos. Anderson later threatened to release those sexually explicit images if the victim did not respond to Anderson’s demands.
Anderson is charged with two counts of production of child pornography, one count of enticement of a minor, and one count of interstate communications with intent to extort. If convicted, Anderson faces a minimum statutory penalty of 15 years in prison. He will make his initial appearance in U.S. District Court before Judge Patrick J. Schiltz at a later date.
This case is 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 U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. Click on the “resources” tab for information about Internet safety education.
This case is the result of an investigation conducted by the FBI, the Anoka County Sheriff's Office, the Erie County (Ohio) Sheriff's Office, with assistance from the Minnesota Bureau of Criminal Apprehension and Waterloo Regional Police Service in Ontario, Canada.
Assistant U.S. Attorney Miranda E. Dugi is prosecuting the case.
The charges contained in the information are merely accusations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former CEO Indicted for Misleading Investors about COVID-19 Rapid Test KitsRead the Press Release
An indictment was returned today by a federal grand jury in New Jersey, charging the former chief executive officer of a publicly-traded health care company (referred to in the indictment as Company-1) with two counts of securities fraud for his alleged participation in a scheme to mislead investors about Company-1’s procurement of COVID-19 rapid test kits in the early days of the COVID-19 pandemic.
According to court documents, Marc Schessel, 62, of Greenwich, Connecticut, caused Company-1 to issue multiple public statements claiming that Company-1 was buying and reselling at least 48 million COVID-19 test kits, despite knowing that such statements were false and misleading. Specifically, in early April 2020, Schessel executed a supply agreement with an Australian company (the Supply Company) to obtain two million COVID-19 test kits per week for six months beginning on April 24, 2020. The agreement was based on the Supply Company’s representations that it had the U.S. Food and Drug Administration’s (FDA) permission to distribute COVID-19 tests in the United States and was already distributing COVID-19 tests. Contemporaneously, Schessel received a purchase order from a U.S.-based company that planned to purchase the weekly shipments of two million COVID-19 test kits from Company-1.
Despite learning new information on or about April 11, 2020, that called into question whether the Supply Company had COVID-19 tests to sell to Company-1 that could be distributed in the United States, Schessel caused Company-1 to issue a press release on April 13, 2020, in which it announced the purchase order for 48 million COVID-19 rapid test kits. Following this press release, Schessel received additional information that further called into question Company-1’s arrangements for the COVID-19 test kits. Despite learning facts that cast significant doubt on the status of the COVID-19 test kit deals, Schessel repeatedly confirmed the status and terms of those arrangements on numerous occasions between approximately April 13, 2020, and April 17, 2020. In the wake of these announcements, Company-1’s share price surged, rising by over 400%, from approximately $2.25 to an intraday high of $14.88. As a result of this scheme, investors lost at least $116 million.
“Schessel allegedly took advantage of the COVID-19 crisis as an opportunity to scam investors and manipulate the market,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Today’s indictment reinforces our commitment to rooting out schemes that have exploited the pandemic and holding accountable those who have prioritized greed during an unprecedented public health emergency.”
“As alleged in the indictment, Marc Schessel exploited the scarcity of COVID-19 tests at the outset of the pandemic to defraud investors and artificially increase his company’s stock price,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “His alleged fraud cost investors millions of dollars in losses.”
“It is unacceptable to fraudulently capitalize on a national health emergency,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI, in tandem with our law enforcement partners, will continue to investigate anyone who undermines public safety and will bring those who commit fraud to justice.”
Schessel is charged with two counts of securities fraud. If convicted, he faces a total maximum penalty of up to 45 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI’s Newark Division is investigating the case.
Acting Principal Assistant Chief Justin Weitz and Trial Attorneys Lucy Jennings and Spencer Ryan of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Lauren Repole and Sean Sherman for the District of New Jersey are prosecuting the case.
The Fraud Section uses the Victim Notification System (VNS) to provide victims with case information and updates related to this case. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing [email protected]. To learn more about victims’ rights, please visit: https://www.justice.gov/criminal-vns/victim-rights-derechos-de-las-v-ctimas.
An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former CEO Indicted for Misleading Investors About COVID-19 Rapid Test KitsRead the Press Release
NEWARK, N.J. – The former chief executive officer of a publicly traded health care company was charged in an indictment filed today with two counts of securities fraud in connection with his alleged participation in a scheme to mislead investors about the company’s procurement of COVID-19 rapid test kits in the early days of the pandemic, U.S. Attorney Philip R. Sellinger, District of New Jersey, and Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division announced.
Marc Schessel, 62, of Greenwich, Connecticut, is charged by indictment with two counts of securities fraud. He is scheduled to make his initial court appearance June 7, 2022, in Newark federal court.
“As alleged in the indictment, Marc Schessel exploited the scarcity of COVID-19 tests at the outset of the pandemic to defraud investors and artificially increase his company’s stock price,” U.S. Attorney Sellinger said. “His alleged fraud cost investors millions of dollars in losses.”
“Schessel allegedly took advantage of the COVID-19 crisis as an opportunity to scam investors and manipulate the market,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Today’s indictment reinforces our commitment to rooting out schemes that have exploited the pandemic and holding accountable those who have prioritized greed during an unprecedented public health emergency.”
“It is a different type of profiteer who tries to benefit from a national disaster such as a weather event or a pandemic,” FBI Acting Special Agent in Charge Michael Messenger said. “This defendant allegedly took advantage of the public’s angst and panic over a deadly virus and put forward false information to drive up his bottom line. The FBI is committed to fighting fraud and protecting the public at all times, but especially when our country is in the midst of a crisis.”
According to documents filed in this case and statements made in court:
Schessel caused his company to issue multiple public statements claiming that it was buying and reselling at least 48 million COVID-19 test kits, despite knowing that such statements were false and misleading. In early April 2020, Schessel executed a supply agreement with an Australian company to obtain 2 million COVID-19 test kits per week for six months, beginning on April 24, 2020. The agreement was based on the Australian company’s representations that it had the appropriate permissions from the U.S. Food and Drug Administration (FDA) and was already distributing COVID-19 tests. Contemporaneously, Schessel received a purchase order from a U.S.-based company that planned to purchase the weekly shipments of 2 million COVID-19 test kits from Schessel’s health care company.
Despite learning new information on April 11, 2020, that called into question whether the Australian company had COVID-19 tests to sell to Schessel’s company that could be distributed in the United States, Schessel caused his company to issue a press release on April 13, 2020, in which it announced the purchase order for 48 million COVID-19 rapid test kits. Following this press release, Schessel received additional information that further called into question his company’s arrangements for the COVID-19 test kits. Despite learning facts that cast significant doubt on the status of the COVID-19 test kit deals, Schessel repeatedly confirmed the status and terms of those arrangements on numerous occasions between April 13, 2020, and April 17, 2020. In the wake of the April 13 announcement, the health care company’s share price surged, rising by over 400 percent from approximately $2.25 per share to an intraday high of $14.88. per share. As a result of this scheme, investors lost at least $116 million.
The first count of securities fraud is punishable by a maximum of 20 years in prison and the second count of securities fraud is punishable by a maximum of 25 years in prison.
U.S. Attorney Sellinger and Assistant Attorney General Polite credited special agents of the FBI, under the direction of Acting Special Agent in Charge Messenger, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Sean Sherman and Lauren Repole of the District of New Jersey, and Acting Principal Assistant Chief Justin Weitz and Trial Attorneys Lucy Jennings and Spencer Ryan of the Criminal Division’s Fraud Section.
The Fraud Section uses the Victim Notification System (VNS) to provide victims with case information and updates related to this case. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing [email protected]. To learn more about victims’ rights, please visit: https://www.justice.gov/criminal-vns/victim-rights-derechos-de-las-v-ctimas.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Father and son sentenced to prison for money laundering and illegal marijuana businessRead the Press Release
Seattle – A father and son who ran a multimillion-dollar illegal marijuana business in Monroe, Washington, were each sentenced to five-year prison terms today, on drug and money laundering charges, announced U.S. Attorney Nick Brown. Kenneth Warren Rhule, 28, was sentenced to five years in prison for conspiracy to manufacture and distribute marijuana and laundering monetary instruments. Kenneth John Rule, 47, was sentenced to five years in prison for conspiracy to manufacture and distribute marijuana. U.S. District Judge John C. Coughenour noted the size of the enterprise, and the presence of firearms justified the five-year prison terms.
“Not only did this pair produce and distribute marijuana products on the dark web, in violation of the state’s regulatory scheme, they also illegally laundered immense amounts of bitcoin that their enterprise earned,” said U.S. Attorney Nick Brown. “When law enforcement moved in there were more than a dozen firearms – some loaded and ready to be used to protect their drug trade.”
Kenneth W. Rhule first came to the attention of law enforcement for his money laundering activity. In April 2o18, law enforcement became aware that someone with the screen name “Gimacut93” was operating an unlicensed bitcoin exchange business. At various locations–primarily Starbucks coffee shops–in Western Washington, Kenneth W. Rhule met repeatedly with an undercover agent posing as a criminal who needed to launder funds. Through their conversations the undercover agent made it seem they were laundering money related to human trafficking activities. Rhule agreed to exchange bitcoin for cash apparently knowing the cash was the proceeds of criminal activity. In fact, Rhule offered the undercover agent advice on virtual currency and how to hide the source of the funds. Rhule asked the agent no questions as required under the “know your customer” rule. Altogether, Rhule exchanged $142,000 worth of bitcoin for cash with the undercover agent.
Even as he was engaged in the operation of the unlicensed financial exchange business, Rhule and his father Kenneth J. Rhule, were operating a marijuana products business that had no license with the State of Washington and paid no taxes to the state. The facility, based in Monroe, Washington, manufactured hash oil and other marijuana products using the names HerbinArtisans, Heady.Watr, and KlearKrew, among others. Electronic messages reviewed in the case indicate the Rhules sold various marijuana products for cash or cryptocurrency to customers nationwide.
The investigation revealed that the Rhules made over $13 million is sales from their business with a net profit of $2.5 million.
In asking for prison time for both men, prosecutors noted that they worked to subvert the state regulatory scheme. “…[T]he state has set up a regulatory framework to serve many important purposes, including ensuring the safety of those who produce and consumer marijuana products. The state is also, of course, entitled to tax the marijuana industry. Yet the defendants ignored all this. Perhaps, as is so often true in fraud cases, they were motivated by simple greed. But in running their business in this way, they put a lot of people at risk, and disadvantaged others in the industry who chose to play by the rules.”
The case was investigated by Homeland Security Investigations and the Drug Enforcement Administration, with valuable assistance from state and local law enforcement agencies.
The case was prosecuted by Assistant United States Attorneys Philip Kopczynski, Casey Conzatti, and Krista Bush.
Monroe facility Monroe facilityFBI Impersonator Sentenced to 5 Years in Prison for Impersonating a Federal Officer, Wire Fraud, and StalkingRead the Press Release
FRESNO, Calif. — Ivan Isho, 44, of Peoria, Arizona, was sentenced today by U.S. District Judge Dale A. Drozd to five years in prison for wire fraud, false impersonation of a federal officer, and stalking, U.S. Attorney Phillip A. Talbert announced.
On March 4, 2022, a federal jury found Isho guilty of the charges.
According to court documents and evidence presented at trial, in 2016 and 2017, Isho pretended to be an FBI Special Agent and falsely represented to his victims, members of the Assyrian community in Ceres, that he could help them obtain visas for their family members living outside the United States. He displayed fake FBI credentials and a gun to aid his misrepresentations to his victims. They paid him thousands of dollars, including by means of interstate wire transmission, and provided him with copies of personal family documents. However, Isho had no ability to obtain and never helped to obtain visas for the victims’ family members. Isho was never employed in any capacity by the FBI.
Additionally, between April 2017 and April 2018, Isho held himself out as an FBI Special Agent to a female victim whom he harassed by means of repeated phone calls and threatening and harassing voicemail messages to both the victim and her husband.
Isho testified at trial, claiming he only possessed the fake FBI credentials as part of a Halloween costume, despite recordings in evidence of the defendant’s voicemails claiming to be with the FBI received in the months of April 2017 and August 2017. He further admitted to threatening the stalking victim with abusive language and various threats.
At sentencing, Judge Drozd found that Isho’s false testimony at trial amounted to obstruction of justice.
This case was the product of an investigation by the FBI. Assistant U.S. Attorney Laura Jean Berger prosecuted the case.
El Departamento de Justicia llega a un acuerdo con un franquiciado de McDonald’s que resuelve unas acusaciones de discriminación relacionada con la inmigraciónRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con Sutherland Management Company, cuyo nombre comercial es McDonald’s, un franquiciado radicado en California que opera cuatro locales de McDonald’s por la zona de San Diego. El acuerdo resuelve unas acusaciones de que la compañía había discriminado a no ciudadanos de los EE. UU. a la hora de comprobar su permiso para trabajar en los Estados Unidos.
«Según las leyes federales, los empleadores no pueden discriminar a los trabajadores y pedirles más documentos de los que sean necesarios o pedirles documentos específicos, para probar que tienen permiso para trabajar, debido a su estatus de ciudadanía, estatus migratorio o nacionalidad de origen», afirmó Kristen Clarke, la Fiscal Federal Auxiliar de la División de Derechos Civiles. «Los empleados –tanto ciudadanos de los EE. UU. como no ciudadanos de los EE. UU– tienen el derecho a elegir los documentos válidos y aceptables que desean presentar para probar que tienen permiso para trabajar. «La División de Derechos Civiles seguirá luchando contra la discriminación ilícita por motivos de ciudadanía, estatus migratorio o nacionalidad de origen. Aguardamos con interés la colaboración de Sutherland Management Company para asegurar el cumplimiento con este acuerdo y las leyes federales pertinentes».
La investigación del Departamento comenzó después de que un no ciudadano de los EE. UU. se quejó de que Sutherland Management Company se había negado a aceptar su documentación válida que demostraba su permiso para trabajar y exigía que les facilitara otro documento. La investigación del Departamento reveló que, de forma habitual, la compañía discriminaba a trabajadores no ciudadanos de los EE. UU., principalmente a residentes permanentes legales, al pedirles que presentasen documentos específicos expedidos por el Departamento de Seguridad Nacional para demostrar su permiso para trabajar en los Estados Unidos. Por otra parte, la investigación reveló que Sutherland Management Company se negó a permitir que el trabajador que se había quejado comenzara a trabajar hasta no presentar la documentación necesaria. Según las leyes federales, todo empleado tiene el derecho a elegir la documentación válida que desea presentar para demostrar que cuenta con permiso para trabajar en los Estados Unidos.
La disposición antidiscriminatoria de la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) prohíbe que los empleadores pidan más documentos de los que sean necesarios –o que especifiquen el tipo de documentación que un trabajador debe presentar– para demostrar su permiso para trabajar, debido a la ciudadanía, estatus migratorio o nacionalidad de origen del trabajador.
Conforme el acuerdo, Sutherland Management Company pagará una sanción civil a los Estados Unidos que asciende a $40,000, emitirá pagos retroactivos al trabajador que se había quejado por concepto de salario perdido, revisará sus políticas de empleo para garantizar el cumplimiento de las mismas con la disposición antidiscriminatoria de la INA y capacitará a sus empleados que sean responsables de verificar el permiso de los trabajadores para trabajar en los Estados Unidos.
La Sección de Derechos de Inmigrantes y Empleados de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. La ley prohíbe la discriminación por motivos de estatus migratorio o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; prácticas documentales injustas y represalias e intimidación.
Para aprender más sobre la labor de la IER y cómo conseguir ayuda, vea este vídeo corto. Aprenda más sobre cómo los empleadores pueden evitar la discriminación por motivos de estatus de ciudadanía en el sitio web de la IER. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su estatus migratorio, ciudadanía o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected]; inscribirse a un seminario en línea gratuito; o visitar los sitios web de la IER en inglés o español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery.
Dallas Man Sentenced to Federal Prison for Sex Trafficking ChildrenRead the Press Release
PLANO, Texas – A Dallas man has been sentenced to 20 years in federal prison for sex trafficking of children in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Laderrick Dedemon Smith, also known as “Freeway,” 22, pleaded guilty on August 24, 2021, to sex trafficking of children and was sentenced to 240 months in federal prison by U.S. District Judge Sean D. Jordan on May 26, 2022.
According to information presented in court, in April 2020, HSI and the Arlington Police Department, with the assistance of the Tarrant County Sheriff's Office, rescued a minor victim who had been sex trafficked by Smith, including during the COVID pandemic lockdown. Through investigation, officers learned that Smith had trafficked the minor victim, and others, out of a hotel room in Plano, within the Eastern District of Texas. Smith placed ads on sites with photographs of the minor victims and offered them for sex. Smith communicated with prospective buyers, set rates, and arranged for the commercial sex acts. Smith also installed a tracking device on the minor victim's cell phone so that the minor could not leave the hotel, obtain food, or seek medical treatment without his knowledge. In sentencing Smith, the district court found that Smith kept the minor victim in his custody, care, and supervisory control, and that Smith unduly influenced the minor victim to engage in commercial sex through fear of bodily injury. The Court ultimately sentenced Smith to a total term of imprisonment of 20 years, to be followed by a term of supervised release of 15 years, during which time Smith will be required to register as a sex offender.
“Protecting children from predators like Smith is one of our top priorities,” said U.S. Attorney Brit Featherston. “I’m proud of the work our partners at the North Texas Trafficking Task Force do hunting for those who prey on children. He who harms a child will suffer the wrath of law enforcement and will be arrested and prosecuted to the fullest extent of the law.”
“Child sex trafficking is one of the most deviant crimes we investigate in our agency,” said acting Special Agent in Charge Christopher Miller, HSI Dallas. “The work of our law enforcement partners of the North Trafficking Task Force has proven to be invaluable in removing these dangerous predators from our communities, while at the same time providing much needed assistance to those victimized by their perpetrators.”
This case was investigated by Homeland Security Investigations-led North Texas Trafficking Task Force and the Arlington Police Department and prosecuted by Assistant U.S. Attorney Marisa Miller.
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Cleveland Career Criminal Sentenced to 15 Years in Prison for Illegal Possession of a FirearmRead the Press Release
First Assistant U.S. Attorney Michelle M. Baeppler announced that Leandre D. McFarland, 33, of Cleveland, was sentenced on Monday, May 23, 2022, to 15 years in prison by U.S. District Judge Sara Lioi after McFarland pleaded guilty to being a felon in possession of a firearm.
According to court documents, on January 8, 2020, authorities with the Ohio Adult Parole Authority conducted a home visit of Defendant McFarland who, at the time, was on parole after serving a 12-year prison sentence. Upon arrival, authorities encountered McFarland and searched a room he was known to occupy after discovering marijuana in the room. During the search, officers obtained a loaded firearm in a pocket connected to McFarland’s bed. McFarland later admitted to owning the weapon and stated that he needed it for protection. The firearm was reported stolen from a vehicle in Steubenville, Ohio.
McFarland is prohibited from possessing a firearm due to multiple previous convictions of aggravated robbery, felonious assault and kidnapping in the Cuyahoga County Common Pleas Court. McFarland qualified as an Armed Career Criminal during sentencing due to prior felony convictions for violent offenses committed on separate occasions.
This case was investigated by the FBI, Cleveland Police and the Ohio Adult Parole Authority. This case was prosecuted by Assistant U.S. Attorney Scott C. Zarzycki.
California Man Sentenced to 10 Years in Federal Prison for Trafficking MethamphetamineRead the Press Release
BOISE – A California man was sentenced to 10 years in federal prison for possession of methamphetamine with intent to distribute.
According to court records, on May 25, 2021, Raul Garcia, 41, of Woodland, California, was found in possession of nearly four pounds of methamphetamine during a traffic stop in Nampa, Idaho. Garcia admitted to possessing the methamphetamine with the intent to distribute it to other people.
Garcia has a criminal history spanning two decades and includes Idaho and California convictions for grand theft, domestic violence, possession of a controlled substance with the intent to deliver, injury to a child, and assault.
Senior U.S. District Judge Bill R. Wilson, from the Eastern District of Arkansas, sitting by designation, also ordered Garcia to serve five years of supervised release following his prison sentence. Garcia pleaded guilty to the charge on February 23, 2022.
U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the cooperative efforts of the Nampa Police Department and Treasure Valley Metro Violent Crimes Task Force, which led to charges.
This case was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit www.treasurevalleypartners.org.
This case was investigated by Treasure Valley Metro Violent Crimes Task Force. The Task Force is comprised of federal, state, and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Ada County Sheriff’s Office; Boise Police Department; Caldwell Police Department; Canyon County Sheriff’s Office; Meridian Police Department; Nampa Police Department; and Idaho Department of Correction.
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Colorado Man Sentenced to 18 Months in Federal Prison and Ordered to Pay over $350,000 in Restitution for Failing to Pay Employment TaxesRead the Press Release
United States Attorney Bob Murray announced today that CURTIS ALAN PERRY, of Windsor, Colorado, was sentenced on 12 counts of failure to account for and pay trust fund taxes. He appeared before United States District Court Judge Nancy D. Freudenthal on May 23, 2022. The court sentenced Perry to 18 months’ imprisonment followed by 3 years of supervised release and ordered Perry to pay $356,280.37 in restitution and a $1,200 special assessment.
Between 2013 and 2016, Curtis Perry operated an ammunition-manufacturing-and-sales business in Laramie, Wyoming, which made and marketed ammunition under the Ammo Kan brand. Although he withheld federal taxes from his employees’ paychecks, Perry did not pay those taxes to the Internal Revenue Service. Instead, Perry used the unpaid employment taxes to support himself and his business. Following indictment, Perry pled guilty to 12 counts of tax evasion. The sentencing judge found that Perry also evaded federal excise taxes on ammunition sales. The total tax loss to the United States government caused by Perry was approximately $356,280.
“Employment tax evasion results in the loss of tax revenue to the U.S. government and the loss of future Social Security and Medicare benefits for those employees,” said United States Attorney Bob Murray. “Each year, the vast majority of Wyoming businesses follow the tax laws and pay their fair share. Those who willfully evade such obligations should fully expect to be held accountable for their criminal conduct. Thanks to our partners at the IRS Criminal Investigation Division and the Alcohol and Tobacco Tax and Trade Bureau for their investigative efforts in this case.”
“The sentence handed down today is a direct reflection of the seriousness of Mr. Perry’s crimes,” said Andy Tsui, Special Agent in Charge, IRS Criminal Investigation Denver Field Office. “Not only is Perry guilty of crimes against the federal government, but he also attempted to obstruct the IRS’s investigation. These actions will not be tolerated, and the judge’s ruling sends a clear message to others that may believe they are above the law.”
This case was investigated by the Internal Revenue Service Criminal Investigation’s Denver Field Office, and Alcohol and Tobacco Tax and Trade Bureau. United States Attorney Eric J. Heimann prosecuted the case at sentencing.
Case No. 20-cr-00126-NDF
Burlington Man Sentenced for Possession with Intent to Distribute Cocaine BaseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on May 31, 2022, Hussein Mubarak, 21, of Burlington, Vermont, was sentenced by U.S. District Judge Christina Reiss to 10 months’ imprisonment and a 3-year term of supervised release for possession with intent to distribute cocaine base.
As Mubarak admitted in his guilty plea hearing, the Burlington Police Department encountered him on May 14, 2021, when Mubarak was found to possess two plastic bags containing cocaine base in his pants pocket. Mubarak further admitted that the quantity of cocaine base found in his pants pocket was consistent with distribution and not personal use. As described in court records, when Burlington Police Department officers arrested Mubarak on September 5, 2021, Mubarak possessed a semiautomatic handgun. As a result of this federal felony conviction, Mubarak will now be prohibited from obtaining or possessing firearms.
United States Attorney Nikolas P. Kerest commended the efforts of the Bureau of Alcohol, Tobacco, Firearms & Explosives as well as the Burlington Police Department in the investigation and prosecution of Mubarak. Assistant U.S. Attorney Andrew C. Gilman was the prosecutor on the case. Mubarak was represented by Assistant Federal Public Defender Sara M. Puls.
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. https://www.justice.gov/psn
Boone County Man Sentenced to 280 Months for Fentanyl TraffickingRead the Press Release
COVINGTON, Ky.— A Florence, Ky., man, William Freddy Jackson, 43, was sentenced to 280 months in federal prison on Tuesday, by U.S. District Judge David Bunning, after pleading guilty to possession with intent to distribute 40 grams or more of fentanyl, with a prior conviction for a serious drug felony.
According to Jackson’s plea agreement, he was the subject of a domestic violence call to law enforcement, on January 24, 2021. Law enforcement then found Jackson in possession of 45.8 grams of fentanyl. Jackson admitted to possession the fentanyl with the intent to distribute it.
Jackson had previously been convicted of two serious drug felonies. Jackson was convicted of possession with intent to distribute crack cocaine on two separate occasions.
Jackson pleaded guilty in February 2022.
Under federal law, Jackson must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for eight years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Kent Kleinschmidt, Special Agent in Charge, DEA, Detroit Filed Office; and Chief Tom Grau, Florence Police Department, jointly announced the sentence.
The investigation was conducted by the DEA and Florence Police Department. The United States was represented by Assistant U.S. Attorney Anthony Bracke.
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Berkeley County man admits to drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Ronald Craig Fletcher, of Bunker Hill, West Virginia, has admitted to selling methamphetamine, United States Attorney William Ihlenfeld announced.
Fletcher, also known as “Ronnie Fletcher,” 53, pleaded guilty today to one count of “Possess with Intent to Distribute Eutylone.” Fletcher admitted having eutylone, also known as “boot,” in May 2021 in Morgan County.
Fletcher faces up to 20 years of incarceration and a fine of up to $1 million. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives; Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative; and the Northwest Virginia Regional Drug and Gang Task Force investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Armed Drug Trafficker Sentenced to Life in Federal Prison for Murder, Gun, and Drug ChargesRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced Sydni Frazier, a/k/a Sid, Junior Boss, and Perry, age 28, of Baltimore, Maryland, to life in federal prison on charges of possession of a firearm in furtherance of a drug trafficking crime resulting in death, conspiracy to distribute more than 100 grams of heroin, possession with intent to distribute heroin and fentanyl, and possession of firearms by a felon. A federal jury convicted Frazier on March 3, 2020.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Commissioner Michael Harrison of the Baltimore Police Department; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
According to the evidence presented at Frazier’s six-day trial, between at least 2014 and 2017, Frazier conspired with others, including members and associates of the MMP gang, to distribute narcotics. For many years, MMP controlled the drug trade in large swaths of Northwest Baltimore City and neighboring Baltimore County, including Forest Park, Windsor Mill, Gwynn Oak, Howard Park, and Woodlawn. The gang’s drug shop in the 5200 block of Windsor Mill Road was particularly lucrative due to its close proximity to Interstate 70, and it frequently attracted drug customers driving from Western Maryland and neighboring states.
The evidence presented at trial established that on August 10, 2016, Frazier and his co-conspirators kidnapped, robbed, and murdered Ricardo Johnson in order to enrich themselves and their drug trafficking conspiracy. The victim was abducted at approximately 2:30 am as he was returning home to his apartment in the 1100 block of West Lanvale Street in Baltimore. Less than four hours later, the victim’s body was discovered in the back of a stolen minivan parked next to the light rail tracks in the 2200 block of Kloman Street. Johnson had been bound by the wrists and ankles, blindfolded, and shot over twenty times. There was partially burned flammable material sticking out of the gas tank of the van, indicating that the killers had attempted to set the van on fire before departing the scene.
Less than twelve hours after Johnson’s body was found, members of the Baltimore Police Department (BPD) attempted to stop Frazier for riding an illegal dirt bike in the 2100 block of Tucker Lane. Frazier fled and was able to get away, but in the process of fleeing, he abandoned the dirt bike as well as a backpack and gloves he had been wearing. The backpack contained two cell phones belonging to Frazier and two loaded 9mm caliber handguns. Both guns were a ballistic match to the 9mm caliber casings recovered from the murder scene. In addition, the BPD DNA and Serology laboratory determined that Frazier’s DNA profile matched DNA from the insides of the gloves, and the victim’s DNA profile matched DNA from the outsides of the gloves. Frazier illegally possessed the two loaded 9mm firearms, as he was prohibited from possessing firearms or ammunition due to previous felony convictions.
With today’s sentencing, all twenty-six defendants charged in this case have been convicted and sentenced, with the gang leader, Dante Bailey, also being sentenced to life in prison, and most of the other defendants receiving between 14 and 30 years in federal prison.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Erek L. Barron praised the ATF, the Baltimore City and Baltimore County Police Departments, and the Baltimore City and Baltimore County State’s Attorney’s Offices for their work in the investigation and prosecution. Mr. Barron thanked Assistant United States Attorneys Christina Hoffman and Christopher M. Rigali, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Armed Career Criminal Sentenced to Seventeen Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Kathryn Kimball Mizelle today sentenced Samuel Storey (43, Sarasota) to 17 years in federal prison for unlawful possession of a firearm by a felon. The court also ordered Storey to forfeit a Smith & Wesson Bodyguard semi-automatic firearm and seven rounds of ammunition related to the offense. Storey had pleaded guilty on December 3, 2021.
According to court documents, on August 22, 2020, Storey got into altercation with a customer at a convenience store in Sarasota County, during which Storey pointed a firearm at the customer. Storey left the store shortly after the altercation and officers from the Sarasota Police Department responded to the store. Storey returned to the store as the officers were beginning the investigation. One of the officers detained Storey and found a loaded Smith & Wesson firearm in Storey’s pocket during a pat down search. Storey was previously convicted of multiple felonies, including felon in possession of a firearm and ammunition and selling and possessing with the intent to deliver cocaine. He is therefore prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Sarasota Police Department. It was prosecuted by Assistant United States Attorney Charlie D. Connally.
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.
29 May 2022
Justice Department Statement on the Mass Shooting at Robb Elementary School in Uvalde, TXRead the Press Release
The U.S. Department of Justice today released the following statement from spokesman Anthony Coley:
“At the request of Uvalde Mayor Don McLaughlin, the U.S. Department of Justice will conduct a Critical Incident Review of the law enforcement response to the mass shooting in Uvalde, Texas, on May 24.
“The goal of the review is to provide an independent account of law enforcement actions and responses that day, and to identify lessons learned and best practices to help first responders prepare for and respond to active shooter events. The review will be conducted with the Department’s Office of Community Oriented Policing.
“As with prior Justice Department after-action reviews of mass shootings and other critical incidents, this assessment will be fair, transparent, and independent. The Justice Department will publish a report with its findings at the conclusion of its review.”
Cincinnati Man Convicted of Assaulting and Brandishing Firearm at Federal Task Force OfficersRead the Press Release
Louisville, KY – After a week-long trial, a federal jury sitting in Louisville, Kentucky, convicted John F. Johnson, also known as Grand Master Jay, on both counts of an indictment that charged him with assaulting a federal task force officer and brandishing a firearm in relation to a crime of violence.
According to court documents and evidence presented at trial, John F. Johnson, 59, on the evening of September 4, 2020, forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with a federally deputized task force officer who was performing official duties, when Johnson aimed a rifle at him. Johnson brandished an AR-15 platform rifle and tactical flashlight at two federally deputized Task Force Officers. Both are detectives with the Louisville Metropolitan Police Department.
Based on the two counts of conviction, Johnson faces a penalty of not less than 7 years in prison. There is no parole in the federal system. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing is scheduled on August 22, 2022, at 11:00am.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky made the announcement.
Assistant U.S. Attorneys Joshua Judd and Joe Ansari prosecuted the case with the assistance of paralegal Adela Alic.
The Federal Bureau of Investigation and the Louisville Metropolitan Police Department investigated the case.
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28 May 2022
Lexington Man Convicted of Possessing Stolen Trade SecretRead the Press Release
BOSTON – A Lexington man was convicted on Thursday, May 26, 2022 of possessing a stolen trade secret, the first-ever conviction following a criminal trial of this kind in the District of Massachusetts.
Haoyang Yu, 43, was convicted following a month-long jury trial of possessing the prototype design of a microchip, known as the HMC1022A, which was owned and developed by Analog Devices, Inc. (ADI), a semiconductor company headquartered in Wilmington. The chip is used in aerospace and defense applications. U.S. Senior District Court Judge William G. Young scheduled sentencing for Sept. 15, 2022.
From 2014 to 2017, Yu worked at ADI, where he designed microchips used by the communications, defense and aerospace industries. As a result of his work, Yu had access to ADI’s present and future microchip designs, including their schematic files, design layout files and manufacturing files.
While he was an ADI employee, Yu started his own microchip design firm, Tricon MMIC, LLC, and used the stolen HMC1022A design to manufacture a knock-off version of ADI’s chip. Yu began selling his version of HMC1022A prior to ADI’s release of its chip. ADI cooperated fully in the government’s investigation.
The jury acquitted Yu of other counts of possessing stolen trade secrets, wire fraud, immigration fraud, and the illegal export of controlled technology.
The charge of possessing stolen trade secrets provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael Rollins; James Brigham, Acting Special Agent in Charge of the Department of Commerce, Office of Export Enforcement, Boston Field Office; Matthew B. Millhollin, Special Agent in Charge of the Homeland Security Investigations in Boston; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Michael Wiest, Special Agent in Charge of the Naval Criminal Investigative Service, Northeast Field Office made the announcement. U.S. Customs and Border Protection, Coast Guard Investigative Service, Defense Criminal Investigative Service, Massachusetts State Police, Lexington Police Department and Hingham Police Department provided assistance with the investigation. Assistant U.S. Attorneys Amanda Beck, Jason A. Casey, John A. Capin of Rollins’ National Security Unit are prosecuting the case.
27 May 2022
York County Man Sentenced for Bankruptcy FraudRead the Press Release
HARRISBURG—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Christopher Gambrill, age 46, of Windsor, Pennsylvania, was sentenced yesterday to 3 years of probation by United States District Court Judge Jennifer P. Wilson for concealing assets during a bankruptcy proceeding. Gambrill was also ordered to pay a $7,200 fine.
According to United States Attorney John C. Gurganus, Gambrill previously admitted that in 2016 and 2017, while he was a petitioner in a bankruptcy proceeding, he fraudulently concealed a $125,000 inheritance from the bankruptcy trustee and creditors. Gambrill’s bankruptcy petition was ultimately dismissed, and none of his debts were discharged.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Carlo D. Marchioli prosecuted the case.
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Woman Sentenced to 15 Months in Federal Custody for Interfering with Southwest Airlines Flight AttendantRead the Press Release
SAN DIEGO – Vyvianna M. Quinonez of Sacramento was sentenced in federal court today to 15 months in federal custody for interfering with a Southwest Airlines flight attendant. In addition, U.S. District Court Judge Todd W. Robinson ordered Quinonez to pay $25,981.57 in restitution and a $7,500 fine and imposed three years of supervised release. While on supervised release, Quinonez will be prohibited from flying on commercial aircraft and must participate in anger management classes or counseling, among other conditions.
Last year, Quinonez pleaded guilty to one count of interference with flight crew members and attendants, admitting that she assaulted a flight attendant by punching her in the face and head with a closed fist and grabbing her hair.
According to admissions in her plea agreement, on May 23, 2021, Quinonez was a passenger aboard Southwest Airlines Flight 700 from Sacramento International Airport to San Diego International Airport. During the flight’s final descent, Quinonez failed to comply with federal rules and regulations. She was not wearing her seat belt, pulled her tray table down, and was not wearing her facemask properly. Court documents state that Quinonez failed to comply when a flight attendant instructed her to fasten her seatbelt. A short time later, another flight attendant instructed Quinonez to fasten her seat belt and stow her tray table for her own safety and wear her mask correctly. Quinonez did not comply and talked back to the flight attendant while shouting profanities.
The plea agreement states Quinonez began filming the flight attendant on her cellphone and pushed the flight attendant. Quinonez admitted she stood up and intentionally assaulted the flight attendant. The assault was captured on video by another passenger sitting a few rows ahead of Quinonez. Several passengers attempted to stop Quinonez by grabbing at her clothing and arms. Court documents state that the passenger sitting directly in front of Quinonez told investigators that she believed she “softened the blows” by grabbing Quinonez’s arm. A male passenger sitting nearby jumped between Quinonez and the flight attendant, instructing Quinonez to sit down.
The flight attendant was taken to the hospital and sustained several injuries. Three of the flight attendant’s teeth were chipped, resulting in two teeth later being replaced by crowns. The flight attendant’s left eye was bruised and swollen; she sustained a cut under her left eye, requiring three stitches; and she had a bruise in the shape of fingers on her right forearm. Due to the assault, the flight attendant was not able to perform her normal safety and customer service duties.
In a letter filed with the court, the Vice President of Inflight Operations for Southwest Airlines stated that Quinonez “created a situation onboard Flight 700 that jeopardized the entire flight and created an unsafe environment.” She explained that Quinonez’s “actions negatively impacted our workgroup beyond description . . . causing fear to come permanently into the workplace.” The letter concluded, “Southwest hopes that the ultimate sentence imposed in this matter will serve as a deterrent for others who may contemplate engaging in similar dangerous behavior aboard our aircraft.”
“Violence on aircraft endangers the lives of all onboard,” said U.S. Attorney Randy Grossman. “Attacks on flight crew members, who perform vital jobs to ensure passenger safety, will not be tolerated. We will pursue criminal charges against those who violate the law both at the airport and aboard aircraft while in flight.” Grossman commended the prosecution team, the agents and officers from FBI and San Diego Harbor Police, as well as the Transportation Security Administration and the Federal Aviation Administration for their excellent work on this case.
“Today’s sentence should send a very strong message to air travelers - the FBI will vigorously pursue anyone who assaults or interferes with flight crews,” said FBI Special Agent in Charge Stacey Moy. “I want to thank the Port of San Diego Harbor Police, the San Diego Airport Authority, the Federal Aviation Administration, the Transportation Security Administration, Southwest Airlines, and the United States Attorney’s Office for their collaboration and partnership in bringing this case to a resolution.”
If you believe you are a victim or a witness to a crime occurring aboard an aircraft, immediately report it to the FBI (https://www.fbi.gov/tips or call 1-800-CALL-FBI).
DEFENDANT Case Number 21-CR-2816-TWR
Vyvianna M. Quinonez Age: 29 Sacramento, CA
SUMMARY OF CHARGES
Interference with Flight Crew Members and Attendants – Title 49, U.S.C., 46504
Maximum penalty: Twenty years in prison and $250,000 fine
INVESTIGATING AGENCIES
Federal Bureau of Investigation
San Diego Harbor Police
Transportation Security Administration
Federal Aviation Administration
Wilkes-Barre Man Sentenced to 164 Months’ Imprisonment for Fentanyl TraffickingRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that David Torres, age 33, of Wilkes-Barre, Pennsylvania, was sentenced on May 26, 2022, to 164 months’ imprisonment to be followed by a 5-year term of supervised release, by United States District Court Judge Robert D. Mariani, for trafficking in fentanyl.
According to United States Attorney John C. Gurganus, on December 13, 2019, Torres possessed with intent to distribute 45 grams of fentanyl, which corresponds to approximately 1,800 doses of the potentially lethal substance. A search warrant executed at Torres’ home also uncovered an unlawfully possessed firearm.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Wilkes-Barre Police Department. Assistant United States Attorney Jeffery St John prosecuted the case.
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 also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Watervliet Felon Pleads Guilty to Unlawful Possession of a FirearmRead the Press Release
ALBANY, NEW YORK – Calvin Strong, age 30, of Watervliet, New York, pled guilty today to unlawfully possessing a firearm, announced United States Attorney Carla B. Freedman and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
As part of his guilty plea Strong admitted that on November 23, 2021, he possessed a Glock .40 caliber handgun and 15 rounds of ammunition in his residence. Strong’s prior felony convictions, including federal convictions for unlawfully possessing a firearm as a felon, and possessing and intending to distribute cocaine, cocaine base and heroin, prevented him from lawfully possessing the handgun.
Strong faces a maximum term of imprisonment of 10 years, a maximum fine of $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Sentencing is scheduled for September 26, 2022 before Senior United States District Judge Frederick J. Scullin, Jr.
This case was investigated by ATF with assistance from the United States Probation Office for the Northern District of New York, the U.S. Marshals Service, and the Watervliet Police Department, and is being prosecuted by Assistant U.S. Attorney Rick Belliss.
Washington State Man Indicted After Escape from Federal Prison CampRead the Press Release
PORTLAND, Ore.—A federal indictment was unsealed today charging an Edmonds, Washington man for escaping from a satellite prison camp at the Federal Correctional Institute (FCI) in Sheridan, Oregon.
Andrew Cain Kristovich, 38, has been charged with one count of escaping from custody.
According to court documents, in the early morning hours of April 25, 2022, correctional officers at FCI Sheridan, a federal prison located in Yamhill County, Oregon, discovered that Kristovich was missing from his assigned bunk. Kristovich was serving a 60-month sentence after being convicted in the Western District of Washington for conspiring to distribute controlled substances and unlawfully using a controlled substance in possession of a firearm.
Later, on April 25, 2022, law enforcement officers were dispatched to a residence in Vancouver, Washington for a welfare check. The officers met a female who reported that Kristovich had told her he was getting released from prison and asked her to pick him up. After the woman picked him up, Kristovich sexually and physically assaulted her and then fled with her vehicle. On April 27, 2022, the woman’s vehicle was found locked and abandoned in a retail parking lot in Edmonds, Washington.
On May 14, 2022, a U.S. Marshals Fugitive Task Force arrested Kristovich in Carson City, Nevada. Kristovich was found in possession of a semi-automatic rifle.
Kristovich made his initial appearance in federal court in the District of Oregon today before U.S. Magistrate Judge Jolie A. Russo. He was ordered detained pending further court proceedings.
If convicted, Kristovich faces a maximum sentence of five years in federal prison, three years’ supervised release, and a fine of $250,000.
Kristovich also faces Washington State felony charges in Clark County Superior Court for second degree rape, second degree assault, second degree robbery, and theft of a motor vehicle.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case is being investigated by the Clark County Sheriff’s Office, the U.S. Marshals Service, and the FBI. It is being prosecuted by Ashley R. Cadotte, Assistant U.S. Attorney for the District of Oregon.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Domestic violence is a serious crime that includes both physical and emotional abuse. It is frequently hidden from public view. Many survivors suffer in silence, afraid to seek help or not knowing where to turn. The traumatic effects of domestic violence also extend beyond the abused person, impacting family members and communities.
If you or someone you know are in immediate danger, please call 911.
If you need assistance or know someone who needs help, please contact the National Domestic Violence Hotline at 1-800-799-SAFE (7233). Many communities throughout the country have developed support networks to assist survivors in the process of recovery.
Vernon Man Admits Illegal Gun PossessionRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that RONDELL CHAMBERS, 31, of Vernon, pleaded guilty today in Hartford federal court to unlawful possession of a firearm and ammunition by a felon.
According to court documents and statements made in court, on October 17, 2020, Hartford Police stopped a vehicle in which Chambers was a passenger in order to arrest Chambers on outstanding warrants. When Chambers stepped out of the vehicle, he dropped a satchel containing a loaded Bersa Firestorm .40 caliber pistol. Chambers was arrested and the firearm was seized.
Chambers’ criminal history includes multiple state felony convictions for drug and gun 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.
Chambers is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on September 22, at which time Chambers faces a maximum term of imprisonment of 10 years.
Chambers is released on a $150,000 bond pending sentencing.
This matter is being investigated by the Federal Bureau of Investigation’s Violent Crimes Task Force and the Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorneys Elena L. Coronado and David Sheldon.
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.
Virgin Islands Port Authority Officer Charged with Cocaine Possession at Henry E. Rohlsen AirportRead the Press Release
St. Croix, USVI – United States Attorney Delia L. Smith announced that Wayne Jeffers, 52, of St. Croix, appeared today before Magistrate Judge Emile A. Henderson, III for an initial appearance stemming from his May 20, 2022, arrest on charges of Conspiracy to Possess with Intent to Distribute Cocaine and Possession with Intent to Distribute Cocaine. Jeffers faces a minimum sentence of ten (10) years in prison and a maximum fine of $10 million if convicted.
According to court documents, in the early morning hours of May 11, 2022, Jeffers, a Virgin Islands Port Authority Officer at the Henry E. Rohlsen Airport on St. Croix, placed a suitcase containing twelve (12) brick-shaped objects onto the driver’s side floor of a ladder truck on the ramp of the airport. The suitcase was seized later that morning and the brick-shaped objects tested positive for cocaine. The approximate weight of the cocaine is 12.6 kilograms.
This case is being investigated by Homeland Security Investigations and U.S. Customs and Border Protection. It is being prosecuted by Assistant United States Attorney Daniel H. Huston. 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.
United States Attorney Smith reminds the public that a criminal complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Virgin Islands Port Authority Officer Charged with Cocaine Possession at Henry E. Rohlsen AirportRead the Press Release
St. Croix, USVI – United States Attorney Delia L. Smith announced that Wayne Jeffers, 52, of St. Croix, appeared today before Magistrate Judge Emile A. Henderson, III for an initial appearance stemming from his May 20, 2022, arrest on charges of Conspiracy to Possess with Intent to Distribute Cocaine and Possession with Intent to Distribute Cocaine. Jeffers faces a minimum sentence of ten (10) years in prison and a maximum fine of $10 million if convicted.
According to court documents, in the early morning hours of May 11, 2022, Jeffers, a Virgin Islands Port Authority Officer at the Henry E. Rohlsen Airport on St. Croix, placed a suitcase containing twelve (12) brick-shaped objects onto the driver’s side floor of a ladder truck on the ramp of the airport. The suitcase was seized later that morning and the brick-shaped objects tested positive for cocaine. The approximate weight of the cocaine is 12.6 kilograms.
This case is being investigated by Homeland Security Investigations and U.S. Customs and Border Protection. It is being prosecuted by Assistant United States Attorney Daniel H. Huston. 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.
United States Attorney Smith reminds the public that a criminal complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
U.S. Attorney’s Office Provides Update on Federal Prosecutions and Ongoing Strategies to Combat Violent Crime in ChicagoRead the Press Release
CHICAGO — With the summer months approaching, John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, today provided an update on federal prosecutions and strategies to combat violent crime in Chicago and the surrounding area.
“Anyone thinking of engaging in gun violence or trafficking dangerous narcotics in Chicago this summer needs to know that a federal prosecution could await them,” said U.S. Attorney Lausch. “A primary goal of our office is to reduce violent crime, and we will continue to use every available federal law enforcement tool to keep people safe this summer and beyond.”
The centerpiece of the Department of Justice’s violent crime reduction efforts continues to be Project Safe Neighborhoods (PSN). Through PSN, a broad spectrum of stakeholders works together to identify the most pressing violent crime problems and develop comprehensive solutions to address them. PSN is an evidence-based program that focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs to pursue lasting reductions in crime.
The U.S. Attorney’s Office in Chicago also participates in a Department of Justice cross-jurisdictional strike force, led locally by U.S. Attorney Lausch, to disrupt illegal firearms trafficking and reduce gun violence. As part of the Chicago firearms trafficking strike force, the U.S. Attorney’s Office collaborates with the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and other federal, state, and local law enforcement partners in the Northern District of Illinois and across the country to help stem the supply of illegally trafficked firearms and to identify patterns, leads, and potential suspects in violent gun crimes. The Chicago strike force’s efforts have been substantially enhanced by the Chicago Police Department’s (CPD’s) Gun Investigations Team.
“Firearms traffickers and straw purchasers enable violence,” said U.S. Attorney Lausch. “The cross-jurisdictional strike force has increased collaboration with our federal, state, and local law enforcement partners and enhanced our longstanding efforts to hold accountable individuals or groups who illegally traffic firearms into Chicago.”
In addition to a sustained focus on prosecutions of federal firearm offenses, the U.S. Attorney’s Office endeavors to disrupt violent crime by seeking pre-trial detention for defendants who pose a danger to the community and pursuing appropriate prison sentences to deter dangerous individuals from continuing to cause violence in their communities.
Following up on activities most recently reported in November of last year, the U.S. Attorney’s Office remains active in fighting violent crime through enforcement actions, prosecutions, and community partnerships, as illustrated by the examples below from the past six months.
Enforcement Actions and Prosecution Activity
The U.S. Attorney’s Office works closely with U.S. law enforcement agencies, including ATF, Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), Homeland Security Investigations (HSI), Postal Inspection Service (USPIS), Internal Revenue Service Criminal Investigation Division (IRS-CI), and U.S. Marshals Service (USMS), to investigate and prosecute a variety of violent crimes. State and local partners in this effort include CPD, Illinois State Police (ISP), Illinois Department of Corrections (IDOC), Cook County State’s Attorney’s Office, Cook County Sheriff’s Office, Rockford Police Department (RPD), and other police departments throughout northern Illinois.
The primary focus of these collaborative law enforcement efforts is to investigate and prosecute gangs and other groups of individuals who work in concert to commit violent crimes, including murders, attempted murders, robberies, carjackings, drug trafficking, and firearms trafficking. In addition, these enforcement efforts also identify for potential federal prosecution individual offenders who drive violence.
Firearm and violent crime investigations in Chicago have also been bolstered by an important tool from ATF – the National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. Federal, state, and local law enforcement in Chicago have used NIBIN extensively to help solve violent crimes and prosecute trigger-pullers and other gun offenders.
Racketeering and Gang-Related Prosecutions
“Combating the unacceptable level of gang violence in Chicago has been and will continue to be a top priority in our office,” said U.S. Attorney Lausch.
- A member of a violent Chicago street gang was sentenced to 35 years in federal prison for engaging in a pattern of racketeering activity that included the murder of a rival gang member. LUIS CONTRERAS, of Chicago, admitted that the murder was committed to further the purposes of the Latin Saints, a criminal organization whose members engaged in drug dealing and violence on Chicago’s South Side. ATF, HSI, and CPD led the investigation.
Firearm Trafficking and Firearm Theft Prosecutions
“We are using every available federal law enforcement tool to continue to bring impactful cases that hold firearms traffickers accountable and reduce violent crime in Chicago,” said U.S. Attorney Lausch.
- DEVON DOW, of Chicago, was charged with trafficking individually manufactured “ghost guns” in Chicago. Dow allegedly sold seven “ghost guns” to an undercover law enforcement officer on the city’s South Side. The firearms were considered “ghost guns” because they contained no identifiable serial number and had been manufactured from parts collected from various sources. HSI and CPD led the probe.
- Five men were indicted for allegedly trafficking guns from St. Louis to Chicago. The charges accuse ROBERT NARUP, of Washington, Mo., of buying firearms at gun shows throughout the United States and illegally selling them to JEROME BOYKIN, of St. Louis, Mo. Boykin then allegedly brought the guns to Chicago and sold them to ROGELIO MANCERA, of Schaumburg, Ill., in exchange for marijuana. The charges accuse Mancera, RODOLFO ORTEGA of Chicago, and HECTOR CHACON of Chicago, with selling the guns on the streets of Chicago. ATF and CPD’s Gun Investigations Team led the probe, with assistance from the U.S. Attorney’s Office for the Eastern District of Missouri.
- A federal jury convicted JOSEPH GHANDOUR, of Glenview, Ill., of illegally selling a “ghost gun” to a convicted felon in a suburban Chicago grocery store parking lot. Unbeknownst to Ghandour, the felon to whom he sold the rifle was cooperating with law enforcement. FBI investigated.
- A man was indicted on firearm charges for allegedly straw purchasing 27 handguns from suburban Chicago stores. MATTHEW JAMAAL JOHNSON, of Dolton, Ill., allegedly falsely certified on federal forms that he was the actual buyer, when, in reality, Johnson purchased the guns on behalf of another individual. ATF and CPD led the probe.
Carjacking and Other Violent Crime Prosecutions
- A federal jury convicted a central Illinois man in the murder of McHenry County Sheriff’s Deputy Jacob Keltner and the attempted murder of three other federal law enforcement officers. Keltner, who was serving as a Special Deputy U.S. Marshal, was fatally wounded on March 7, 2019, when law enforcement attempted to execute a warrant for FLOYD E. BROWN’s arrest at a Rockford hotel. Brown fired multiple shots at a Deputy U.S. Marshal and two Special Deputy U.S. Marshals who were attempting to take Brown into custody. Brown then jumped out of a hotel window and fired a shot that fatally struck Special Deputy Keltner. FBI led the murder investigation, with assistance from ATF, U.S. Marshals Service, McHenry County Sheriff’s Office, Rockford Police Department, Winnebago County Sheriff’s Office, Bloomington Police Department, Loves Park Police Department, Lincoln Police Department, Logan County Sheriff’s Office, and ISP.
- ANGELO STANTON, of Chicago, was sentenced to 28 years in federal prison for violently robbing more than a dozen Chicago stores. Stanton carried out takeover-style heists in which he pointed a handgun at employees and demanded cash from the register or safe. He fired shots in five heists, wounding two store employees. The probe was led by FBI and CPD, with assistance from ISP and the Cook County Sheriff’s Office.
- A federal judge sentenced two men to federal prison for stealing expensive watches and jewelry at gunpoint from a jewelry store in Hinsdale, Ill. TOBIAS DIGGS, of Chicago, and JOSHUA MCCLELLAN, of Oak Lawn, Ill., took more than $400,000 in merchandise, including watches by Frederique Constant, Patek Phillipe, and Tudor. FBI investigated, with assistance from the Hinsdale Police Department, Oak Lawn Police Department, FBI’s Cellular Analysis Survey Team (CAST), and the Felony Investigation Assistance Team (FIAT), a multi-jurisdictional law enforcement task force in the western suburbs of Chicago.
- AARON CLARK, of Chicago, was sentenced to 22 years in prison for his role in robberies that targeted cell phone stores in the suburbs of Chicago. Clark brandished a gun during the heists and threatened to shoot store employees. ATF and CPD led the probe, with assistance from the Calumet City Police Department, Peotone Police Department, Cook County State’s Attorney’s Office, and Will County State’s Attorney’s Office.
- OCIE BANKS, JR., of Berwyn, Ill., was charged with robbing cell phone stores in the Chicago suburbs. Banks allegedly brandished a firearm in three robberies and one attempted robbery. FBI investigated.
- JAMAR JARVIS, of Chicago, was sentenced to ten years in prison for carjacking a vehicle at gunpoint in the city’s Edgewater neighborhood. FBI and CPD investigated, with assistance from the Cook County State’s Attorney’s Office.
Illegal Possession of Firearms Prosecutions
“Any felon thinking about picking up a gun in Chicago this summer should expect to be prosecuted to the fullest extent of the law and face the possibility of going to federal prison for a long time,” said U.S. Attorney Lausch.
- Three convicted felons involved in an exchange of gunfire in a store parking lot in a Chicago suburb were indicted on federal firearm violations. The trio had previously been convicted of felony offenses and were prohibited by federal law from possessing firearms. ATF led the investigation, with assistance from the Calumet City Police Department, U.S. Marshals Service, South Suburban Major Crimes Task Force, South Suburban Emergency Response Team, Cook County Sheriff’s Office, and Illinois State Police.
- Convicted felon CIPRIANO RIVERA, of Villa Park, Ill., was sentenced to nine years in federal prison for illegally possessing a loaded handgun near an alley in Chicago’s West Town neighborhood. ATF and CPD conducted the investigation.
- WILLIE WARE, of Riverdale, Ill., and KEVON REED, of Chicago, were arrested after being charged with illegally possessing firearms on a CTA train car. FBI and CPD investigated, with assistance from ATF.
- LAVOYCE BAYS, of Markham, Ill., was sentenced to more than eight years in prison for illegally possessing a firearm and ammunition, and shooting a man at a gas station after a dispute. ATF and the Markham Police Department investigated.
- TERRANCE WEATHERSBY, of Chicago, was sentenced to more than seven years in prison for illegally possessing a loaded handgun equipped with a high-capacity magazine on a street in Chicago’s Austin neighborhood. ATF and CPD investigated.
- A felon was sentenced to seven years in prison for illegally possessing a loaded semiautomatic handgun at a block party on the South Side of Chicago. ANTHONY CARR, of Chicago, tossed the gun into a large outdoor tent before Chicago Police officers apprehended him. CPD and ATF investigated.
- BERNARD HARVEY, JR., of Indianapolis, Ind., pleaded guilty to a firearm charge, admitting to illegally possessing a semi-automatic rifle at a Veterans Affairs hospital in Chicago. FBI and CPD investigated, with assistance from the VA Police Department.
- KEYZOE WILLIAMS, of Chicago, was arrested for allegedly illegally possessing a loaded machine gun in Chicago. Williams possessed a handgun equipped with a conversion device, also known as an “auto sear” or “Glock switch,” which turned the firearm into a machine gun capable of automatically firing more than one shot with a single trigger pull. ATF investigated, with assistance from ISP, CPD, Willowbrook Police Department, DuPage County State’s Attorney’s Office, and DuPage Metropolitan Emergency Response and Investigations Team.
Significant Drug Trafficking Prosecutions
The U.S. Attorney’s Office targets traffickers who bring illegal drugs into Illinois from other states or countries, with a focus on organizations or individuals who use guns, violence, and threats of violence to protect and promote their illegal businesses. The U.S. Attorney’s Office works directly with state’s attorney’s offices in Cook County and throughout the district to ensure that individuals trafficking drugs are charged with appropriate offenses in either federal or state court.
Public safety is also being threatened by unprecedented levels of opioid misuse and overdose. Opioids are a class of highly addictive drugs that includes heroin, fentanyl, and prescription painkillers such as oxycodone and hydrocodone. U.S. Attorney Lausch in November 2019 created an Opioid Task Force for the purpose of combatting the growing number of unlawful distributions of controlled substances fueling the nation’s opioid crisis. This effort includes prosecuting the leaders of traditional drug trafficking organizations, as well as rogue health care providers, pharmacists, and others who contribute to the misuse of opioids. “We are actively attacking the opioid crisis from all investigative and prosecutorial angles,” said U.S. Attorney Lausch.
- ADÁN CASARRUBIAS SALGADO, of Guerrero, Mexico, was extradited from Mexico on a federal indictment charging him with distributing heroin in the Chicago area in 2014 and laundering hundreds of thousands of dollars in proceeds. DEA investigated.
- Ten alleged members or associates of a Chicago street gang were charged with conspiring to distribute heroin and cocaine on the West Side of Chicago. The investigation, led by HSI and CPD, used undercover and covert surveillance operations and resulted in the seizure of multiple kilograms of suspected heroin, some of which was laced with fentanyl, and cocaine, as well as four rifles, four handguns, a MAC-10 submachine gun, a shotgun, and more than 450 rounds of ammunition. This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation.
- A central Illinois man was sentenced to 16 years in federal prison for attempting to traffic cocaine in Chicago. TEKOA Q. TINCH, of Bloomington, Ill., attempted to buy a kilogram of cocaine from an undercover law enforcement officer in the city’s Little Village neighborhood. DEA, ATF, and CPD led the investigation.
- A federal grand jury charged GILBERTO ALMANZA, of North Chicago, Ill., with distributing approximately 46 kilograms of cocaine to an individual who, unbeknownst to Almanza, was cooperating with law enforcement. Police later conducted a court-authorized search of Almanza’s residence and discovered approximately two kilograms of cocaine and a loaded handgun, the charges allege. DEA conducted the probe.
- A federal jury convicted a suburban Chicago man of laundering illegal narcotics proceeds on behalf of drug traffickers in Mexico. HUAZHI HAN, of North Riverside, Ill., schemed with an individual in Mexico to facilitate the receipt of more than $1 million in narcotics proceeds in the United States. DEA investigated, with assistance from IRS-CI, CPD, HSI, and the U.S. Department of Treasury, Financial Crimes Enforcement Network.
- A man was arrested after law enforcement seized fentanyl and a “pill press” from his suburban Chicago residence. TROY CLARK, of Calumet City, Ill., also allegedly possessed other equipment that can be used to manufacture counterfeit pills, including a funnel, metal press, and dye pieces. DEA, USPIS, and CPD led the probe, with assistance from the Calumet City Police Department.
- An inmate in a state prison in Arizona was charged with brokering the sale of fentanyl and methamphetamine in Illinois. MANUEL GARCIA allegedly coordinated with a buyer outside of the prison to purchase methamphetamine and fentanyl for delivery to the Chicago area. DEA investigated.
Community Partnerships
The PSN program continues to invest resources in violence-prevention initiatives.
The PSN Chicago Task Force, which includes members from the U.S. Attorney’s Office, CPD, ATF, IDOC, Cook County State’s Attorney’s Office, and academic researchers, is designed to address gun violence in certain neighborhoods in Chicago with the highest violent crime rates through aggressive prosecution of violent offenders, using all available federal statutes. The task force, which in 2018 expanded to include the city of Rockford, establishes a working relationship between the U.S. Attorney’s Office, CPD, Cook County State’s Attorney’s Office, RPD, and Winnebago County State’s Attorney’s Office.
The PSN Task Force dedicates federal grant funds to support crime prevention programs that are aligned with law enforcement’s strategy to address gun violence. Currently, PSN grant funds support Camp Hope, a crime prevention program in Rockford for at-risk juveniles who have experienced or witnessed domestic violence; Choose to Change, a program created by Children’s Home & Aid and Youth Advocate Programs in Chicago to engage youth who are heavily impacted by violence and trauma by connecting them with intensive advocate and wraparound support services and trauma-informed therapy; and Readi Chicago’s Reentry Program, a pilot program in Chicago jointly developed by Heartland Alliance and IDOC to provide both pre-release and post-release services for those returning home from prison to reduce gun violence and recidivism among returning citizens.
Members of the U.S. Attorney’s Office have also participated in offender notification meetings and youth outreach forums. Even during the current COVID-19 pandemic, these meetings and forums are still being held, including in a virtual environment, to maintain the outreach to former offenders. Offender notification meetings provide an opportunity for individuals who have been convicted of a state or federal offense to make an informed choice not to engage in further criminal activity. Researchers at Arizona State University found that the forums in Chicago have a positive influence on the offenders’ perception of police and help create an understanding that criminal activity results in a higher risk to return to prison. Researchers at Yale University found that ex-offenders who attend an offender notification meeting in Chicago are 30% less likely to commit a new offense than those who did not attend a meeting. The quarterly youth forums assist teenagers to identify a path beyond criminal activity. The youth forums are conducted in partnership with CPD, the Cook County Juvenile Temporary Detention Center, and local social service agencies.
Two-Time Bank Robber Sentenced to 48 Months in CustodyRead the Press Release
SAN DIEGO – Eric Tyler Oxenham was sentenced in federal court today to 48 months in prison for robbing two San Diego banks in 2021 and violating the conditions of supervised release arising out of a prior conviction for felon in possession of a firearm. Oxenham received a sentence of 41 months on the bank robberies and 18 months on the supervised release revocation, with 7 months to run consecutive to the bank robbery sentence, for a total of 48 months.
Oxenham pleaded guilty on February 2, 2022, admitting that he robbed the banks by presenting demand notes that threatened the tellers. He was apprehended by police officers after he fled the second robbery.
In his plea agreement, Oxenham admitted that, on September 24, 2021, he entered the California Bank and Trust, located at 1024 Graves Avenue in El Cajon, approached a teller and passed a demand note to the teller, which read, “Put 50’s and 100’s in the bag.” The teller provided Oxenham with approximately $432.00. Oxenham left the bank on foot, and ultimately fled the scene in a white rental car.
Oxenham also admitted that, on September 30, 2021, he entered a U.S. Bank, located at 610 W. Washington Street in San Diego, approached a teller, and presented the teller with a demand note. The note read, in sum and substance, “This is a robbery. Put the money in the envelope.” In response to Defendant’s demands, the victim bank teller provided Defendant with approximately $1,608.00 before Defendant then left the bank on foot.
Investigators used nearby residential surveillance footage to identify the getaway vehicle, and ultimately Oxenham, who was arrested pursuant to a warrant on October 27, 2021.
“Bank robberies are serious crimes that undermine the banking system and strike fear in bank staff and customers,” said U.S. Attorney Randy Grossman. “Thanks to our law enforcement partners, justice was served in this case and our community is safer.” Grossman commended the prosecutors, FBI agents and San Diego Police Department officers who handled this matter.
“The San Diego FBI's Violent Crimes Task Force is committed to combatting violence on our streets and keeping our communities safe,” said FBI Special Agent in Charge Stacey Moy. “This sentence should serve as notice to anyone who believes they are free to commit crime without consequences - the FBI and our partners at the San Diego Police Department and the San Diego County Sheriff’s Department will utilize all available investigative resources to bring criminals to justice.”
DEFENDANT Case Number 22mj300
Eric Tyler Oxenham Age: 27 Campo, CA
SUMMARY OF CHARGES
Interference with Commerce by Robbery – Title 18, U.S.C., Section 1951(a)
Maximum penalty: 20 years’ imprisonment and $250,000 fine
AGENCY
Federal Bureau of Investigations
San Diego Police Department
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
This case is the result of the ongoing efforts of the Violent Crime and Human Trafficking (VCHT) Section. Formed in 2019, the VCHT is tasked with leading collaborations between federal and local law enforcement in the investigation and prosecution of cases involving violent crimes, firearms and gang cases; sex trafficking and child exploitation; civil rights, and labor trafficking. The VCHT Section oversees the Southern District of California Coordinators for Project Safe Neighborhoods, Human Trafficking, and Project Safe Childhood. The VCHT Section also provides federal prosecutors to the downtown San Diego Violent Crimes Task Force-Gang Group, the North County Gang Task Force, and the East County Gang Task Force.
Two Wilmington Men Sentenced to Decades in Prison for Federal Stalking and Kidnapping ConvictionsRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced today that U.S. District Court Judge Joshua D. Wolson sentenced Ryan Bacon, 37, to thirty years in prison and Michael Pritchett, 37, to twenty-five years in prison. Bacon and Pritchett had each pleaded guilty to federal stalking, kidnapping, and firearms charges.
According to court documents, Bacon and Pritchett, along with other co-conspirators, were engaged in a public feud with M.S., a former friend of Bacon. The feud began when Bacon—who released rap songs under the moniker “Buck 50”—published a song that was construed as publicly labeling M.S. a “rat” or “snitch.” That feud resulted in violence between Bacon and his associates and M.S. and his associates.
In May and June 2017, Bacon, Pritchett, and others actively searched for M.S. in an attempt to kill him. On June 6, 2017, in their pursuit of M.S., Bacon, Pritchett, and co-conspirators kidnapped M.S.’s girlfriend, Keyonna Perkins, and held her at gunpoint. Perkins was then forced into the trunk of two separate cars, while the defendants and others used her phone to locate M.S. Bacon, Pritchett, and others finally located M.S. and fired multiple shots, but failed to hit him. Following that shooting, Perkins was forced into the trunk of a car and driven by Bacon and another co-conspirator to Elkton, Maryland where she was murdered.
Pritchett and a co-conspirator, meanwhile, continued their pursuit of M.S. after the first failed shooting. They located M.S. at Probation & Parole Offices in New Castle, and waited for M.S. to leave Probation & Parole and get into a white sedan. Pritchett and a co-conspirator then followed the white sedan into Wilmington until M.S. got out of the car. Pritchett then drove alongside M.S., while the co-conspirator reached out the front passenger window of Pritchett’s truck and fired multiple shots at M.S. While the shots missed M.S., one of the bullets ripped through an SUV and struck a six-year-old boy in the head, causing the child severe and permanent injuries.
“The defendants’ June 6 crime spree unfolded across multiple police jurisdictions and two separate states. The investigation required careful and ongoing collaboration between numerous law enforcement agencies, and we thank all federal, state, and local law enforcement who came together to help hold the defendants accountable for their crimes,” said U.S. Attorney Weiss. “My office will continue to work with our law enforcement partners to investigate and prosecute individuals, like the defendants, who commit crimes that display a shocking disregard for human life.”
“In an act of retribution, these men not only kidnapped and killed a woman, they opened fire in the middle of a busy street, when kids were getting out of school; forever changing the life of one six-year-old boy as he was shot while riding in the backseat of his mom’s car. Rest assured the FBI, and our law enforcement partners, will continue to pursue those who seek to terrorize our communities and hurt innocent people,” said Thomas J. Sobocinski, Special Agent in Charge of the FBI Baltimore Field Office.
Assistant U.S. Attorneys Jesse S. Wenger and Christopher L. de Barrena-Sarobe prosecuted the case. This case was investigated by FBI's Delaware Violent Crime and Safe Streets Taskforce, with assistance from the Wilmington Police Department, New Castle County Police Department, Delaware State Police, and Elkton Police Department.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 1:18-cr-75.
Two Grand Junction Men Indicted for Fentanyl DeathsRead the Press Release
Grand Junction – The United States Attorney’s Office for the District of Colorado announces Mark Harold and Junior Anthony Highline have been indicted in separate cases on charges of distributing fentanyl resulting in death.
Both men were arrested and made their initial appearance in federal court in Grand Junction on Monday, May 25, 2022, where they were advised by a Federal Magistrate Judge of the charges pending against them.
Distribution of fentanyl resulting in death carries a potential penalty of no less than 20 years and up to life in prison, a fine of up to $1,000,000, and at least three years of supervised release.
The charges in the indictments are allegations. The defendants are presumed innocent until proven guilty beyond a reasonable doubt.
These cases were investigated by the DEA, Western Colorado Drug Task Force, Mesa County Sheriff’s Office, and the Grand Junction Police Department. Assistant U. S. Attorney Jeremy Chaffin is handling the prosecution for both cases.
Case Numbers: 22-cr-00165 Mark Harold and 22-cr-00164 Junior Anthony Highline.
Tuba City Man Sentenced to 262 Months for Second Degree MurderRead the Press Release
PHOENIX, Ariz. – On Wednesday, Kristopher Lionel Goldtooth, 38, of Tuba City, Arizona, was sentenced by Senior U.S. District Judge David G. Campbell to 262 months in prison, followed by five years of supervised release. Goldtooth previously pleaded guilty to one count of second degree murder.
On April 24, 2019, Goldtooth intentionally shot the victim in the face with a shotgun, killing him. The murder took place on the Navajo Nation Indian Reservation, where Goldtooth is an enrolled tribal member.
The FBI and the Navajo Nation Department of Criminal Investigation conducted the investigation in this case. Assistant U.S. Attorneys Ryan Powell and Amy Chang, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-19-08108-PCT-DGC
RELEASE NUMBER: 2022-084_Goldtooth# # #
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.Three Remaining Defendants Plead Guilty for Their Roles in Extensive Health Care Fraud Conspiracy to Defraud Medicaid Home Care ProgramRead the Press Release
PITTSBURGH, Pa. – Three residents of the Pittsburgh area pleaded guilty in federal court today for their roles in defrauding the Pennsylvania Medicaid program, United States Attorney Cindy K. Chung announced today.
Arlinda Moriarty, 53, of Cranberry, Pennsylvania, her sister Daynelle Dickens, 47, of Pittsburgh, and their uncle Tony Brown, 64, also of Pittsburgh, pleaded guilty to one count each of conspiracy to commit health care fraud and health care fraud before United States District Judge Cathy Bissoon. Moriarty also pleaded guilty to one count of engaging in a scheme to conceal material facts in a health care matter and one count of aggravated identity theft.
According to admissions made in connection with the defendants’ guilty pleas, between January 2011 and April 2017, Moriarty, Dickens, and Brown were associated with four related entities controlled by Moriarty—Moriarty Consultants, Inc. (MCI), Activity Daily Living Services, Inc. (ADL), Everyday People Staffing, Inc. (EPS), and Coordination Care, Inc. (CCI). Dickens owned CCI, and Brown was an employee of MCI. MCI, ADL, and CCI were approved under the Pennsylvania Medicaid program to offer certain services to qualifying Medicaid recipients (“consumers”), including personal assistance services (PAS), service coordination, and non-medical transportation, among other services. EPS nominally performed back-office functions for MCI, ADL, and CCI.
Between January 2011 and April 2017, MCI, ADL, and CCI, collectively, received more than $87,000,000 in Medicaid payments based on claims submitted for home health services, with PAS payments accounting for more than $80,000,000 of the total amount. During that time, Moriarty admitted orchestrating a wide-ranging conspiracy to defraud Medicaid for the purpose of obtaining millions of dollars in illegal Medicaid payments through the submission of fraudulent claims for services that were never provided to the consumers identified on the claims, or for which there was insufficient or fabricated documentation to support the claims.
The defendants admitted that the conspiracy and fraud scheme were carried out in a variety of ways. For example, co-conspirators fabricated timesheets to reflect the provision of in-home PAS care that, in fact, they never provided to the consumers identified on timesheets. Members of the conspiracy also paid kickbacks to consumers in exchange for their participation in the scheme. Indeed, Brown admitted paying kickbacks to his then-son-in-law in connection with the submission of fraudulent Medicaid claims stating that Brown had provided in-home care for the son-in-law, when, in fact, he had not. As part of the conspiracy, co-conspirators also caused the submission of
Medicaid claims in the name of “ghost” employees for PAS care that never occurred.Moriarty and Dickens also admitted causing the periodic bulk submission of fraudulent Medicaid claims for so-called “unused” hours—i.e., excess hours of care that consumers had not needed and therefore should not have been billed. Finally, Moriarty admitted that during the course of audits of MCI, ADL, and CCI, she directed the fabrication of various documents for submission to state authorities in an effort to conceal the Medicaid fraud scheme. Among other things, co-conspirators fabricated PAS timesheets, criminal history checks for attendants, child-abuse clearance forms for attendants, and certain consumer affidavits to ensure that files requested as part of the audits appeared complete. During the conspiracy, Moriarty and Dickens received payments from the Moriarty-related companies totaling approximately $1,660,000 and $1,071,000, respectively.
In connection with their guilty pleas, Moriarty, Dickens, and Brown have agreed to pay restitution of $8,700,000, $1,000,000, and $43,113.02, respectively.
A total of 16 defendants were charged in connection with the health care fraud conspiracy and scheme, and 15 have now pleaded guilty. The remaining defendant died during the pendency of the case.
The conspiracy and health care fraud charges each carry a maximum total sentence of not more than 10 years in prison, a fine of $250,000, or both. The concealment of material facts in relation to a health care matter charge carries a maximum total sentence of not more than five years in prison, a fine of $250,000, or both. The aggravated identity theft charge carries a mandatory sentence of two years in prison to run consecutively with any sentence imposed on any other charge and a fine of no more than $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendants.
Judge Bissoon scheduled sentencing hearings for Moriarty, Dickens, and Brown on September 28, 2022.
Assistant United States Attorney Eric G. Olshan and Special Assistant United States Attorney Edward Song are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Pennsylvania Office of the Attorney General – Medicaid Fraud Control Unit, Internal Revenue Service – Criminal Investigation, U.S. Department of Health and Human Services – Office of Inspector General, and United States Postal Inspection Service conducted the investigation of the defendants.
Three Men Indicted in District of Columbia on Federal Charges Involving Drug Trafficking Organization Based in Puerto RicoRead the Press Release
WASHINGTON – Three alleged members of a drug trafficking organization based in Puerto Rico have been indicted in the District of Columbia, following an investigation into shipments of cocaine from San Juan for distribution in the Washington, D.C. area. Two of the defendants face an additional charge stemming from a murder, related to the drug trafficking, that took place in Puerto Rico.
The announcement was made by U.S. Attorney Matthew M. Graves and Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division.
Rey Rivera Ruiz, 39, of San Juan, Puerto Rico, the alleged leader, was indicted on May 26, 2022, in a superseding indictment returned by a grand jury in the U.S. District Court for the District of Columbia. He is charged with one count of conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine, and one count of continuing criminal enterprise, for his leadership and supervisory role in the drug trafficking organization.
Additionally, Jann Jousten Aponte Rivera, 26, and Michael Gabriel Hernandez Rivera, 20, both of San Juan, Puerto Rico, were indicted on one count of conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine, one count of continuing criminal enterprise -- causing the intentional death of Shantay Butler, 44 -- and one count of causing the death through the use of a firearm during and in relation to a drug trafficking offense.
If convicted, the defendants face a mandatory-minimum term of 20 years imprisonment and a maximum term of life imprisonment or death. The indictment also includes a forfeiture allegation seeking all proceeds of the alleged crimes. On April 1, 2021, the defendants were originally indicted in a one-count indictment with conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine. The defendants will be arraigned on the charges on a date to be determined by the Court.
According to the government’s evidence, in the fall of 2019, Rivera Ruiz, who was assisted by Aponte Rivera and Hernandez Rivera, and several other individuals, shipped kilogram quantities of cocaine from San Juan to the Washington, D.C. area, via the U.S. Postal Service. Once the kilograms arrived in the Washington, D.C. area, a local drug trafficker distributed the kilograms in the community.
Additionally, the Puerto Rico drug trafficking organization’s members allegedly traveled from San Juan to the Washington, D.C. area to collect drug proceeds, and then surreptitiously traveled on commercial airliners to return the proceeds to Ruiz Rivera and others.
According to the government’s evidence, during the course of the drug conspiracy, Ruiz Rivera and his members shipped between 50 kilograms and 150 kilograms of cocaine to the local drug trafficking organization. The charged drug trafficking conspiracy began around October 2019, and ended in April of 2021, when Ruiz Rivera, Aponte Rivera, and Hernandez Rivera, and another individual were originally indicted. Ruiz Rivera, Aponte Rivera, and Hernandez Rivera have remained in custody since their April 2021 arrests. Members of the local drug trafficking organization have previously been charged for their role in the drug trafficking scheme.
The murder took place on Oct. 14, 2020. At that time, the local drug trafficker owed several thousands of dollars to the Puerto Rico drug trafficking organization and was ordered to pay for several kilograms of cocaine which did not arrive in the Washington, D.C. area. In October of 2020, the local drug trafficker met Aponte Rivera and Hernandez Rivera in a desolate part of Levittown, Puerto Rico. Ms. Butler was in the passenger seat of the vehicle driven by the local drug trafficker. Both Aponte Rivera and Hernandez Rivera pulled out firearms and opened fired on the local drug trafficker and his vehicle. Ms. Butler was shot and died shortly after the shooting, and the local drug trafficker was shot multiple times, but survived.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
This case is being investigated by the FBI’s Washington Field Office. Assistance is being provided by the U.S. Postal Inspection Service, the U.S. Postal Service Office of Inspector General, the Montgomery County, Maryland Police Department, the Frederick County, Maryland Police Department, and the Puerto Rico Police Department’s Homicide Division.
The case is being prosecuted by Assistant U.S. Attorney David Henek and Anthony Scarpelli, of the Violence Reduction and Trafficking Offenses Section of the U.S. Attorney’s Office for the District of Columbia. Assistance was provided by former Assistant U.S. Attorney Rachel Fletcher.
Three Kentucky Correctional Officers Indicted for Assaulting Inmates and Attempting to Cover it UpRead the Press Release
Three federal correctional officers — two officers and a lieutenant — have been indicted by a federal grand jury in London, Kentucky, for their respective roles in assaults against two inmates and subsequent cover-ups, announced Assistant Attorney General Kristen Clarke of the Department of Justice’s Civil Rights Division; U.S. Attorney Carlton S. Shier for the Eastern District of Kentucky; Special Agent in Charge William J. Hannah of the Department of Justice Office of the Inspector General’s Chicago Field Office; and Special Agent in Charge Jodi Cohen of FBI Louisville.
Officers Samuel Patrick, 41, and Clinton Pauley, 40, were indicted for assaulting one inmate and attempting to cover it up, and Lieutenant Kevin Pearce, 37, was also indicted for helping cover up that assault. Officer Pauley was also charged with assaulting a second inmate and attempting to cover up that assault.
The indictment alleges that, on April 29, 2021, defendants Patrick and Pauley, who were officers at the U.S. Penitentiary-Big Sandy, physically assaulted an inmate, identified in the indictment as C.T., violating that inmate’s constitutional rights. The indictment also alleges that the assault resulted in bodily injury, and that defendants Patrick and Pauley, as well as a supervisory officer, Lieutenant Pearce, attempted to cover up the assault by writing false reports. The indictment also charges defendants Patrick and Pearce with witness tampering based on their efforts to pressure a fellow correctional officer to write an untruthful report that omitted the assault.
The indictment further alleges that, on March 26, 2021, defendant Pauley physically assaulted a different inmate, identified in the indictment as N.D., who was being escorted away from the prison’s lieutenants’ office at Big Sandy, and that the assault resulted in bodily injury. The indictment also charges that defendant Pauley attempted to cover up the assault of N.D. by writing a false report.
The maximum penalties for the charged crimes are 10 years of imprisonment for the assault offenses, and 20 years of imprisonment for each of the witness tampering and false report offenses.
The Office of the Inspector General and the FBI conducted the investigation. Assistant U.S. Attorney Zachary Dembo for the Eastern District of Kentucky is prosecuting the case in partnership with Trial Attorney Thomas Johnson of the Civil Rights Division.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Three Big Sandy Employees Indicted for Civil Rights ViolationsRead the Press Release
LONDON, Ky.- Three Bureau of Prisons employees of the United States Penitentiary Big Sandy, located in Inez, Ky., were indicted on Thursday, for federal civil rights violations.
A federal grand jury sitting in London, Ky., returned an indictment charging the following individuals: Samuel J. Patrick, 41, of West Van Lear, Ky.; Clinton L. Pauley, 40, of Ironton, Ohio; and Kevin C. Pearce, Jr., 37, of Inez, Ky. The defendants have been charged with violating an individual’s rights under the color of law and of falsifying records to impede an investigation.
The indictment alleges that on April 29, 2021, Patrick and Pauley assaulted an inmate, in the lieutenant’s office of USP Big Sandy. After Pearce and a subordinate BOP employee witnessed the assault, Pearce asked that employee to write an untruthful report, omitting the assault. It is also alleged that Patrick pressured that employee to submit to Pearce’s demand.
The indictment also alleges that Pearce wrote a memorandum that documented the false account of the officers’ interactions with the inmate who was assaulted; that stated another employee was present in the office with the victim; and that stated the victim left the office without incident, omitting the assault. Patrick and Pauley are also alleged to have written memos to cover up the assault.
The indictment further alleges that Pauley previously assaulted another inmate on March 26, 2021, while the inmate was being escorted away from the lieutenants’ office of USP Big Sandy and that he subsequently wrote a false incident report to cover up that assault.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Kristen Clarke, Assistant Attorney General, Department of Justice’s Civil Rights Division; William J. Hannah, Special Agent in Charge, Department of Justice Office of the Inspector General, Chicago Field Office; and Jodi Cohen, Special Agent in Charge, FBI, Louisville Field Office, announced the indictment.
The investigation preceding the indictment was conducted by the DOJ OIG and the FBI. The case is being handled by Assistant U.S. Attorney Zach Dembo and Trial Attorney Thomas Johnson of the Civil Rights Division.
A date for Patrick, Pauley, and Pearce to appear in court has not yet been scheduled yet. For the deprivation of rights charges, they each face a maximum of 10 years per, and for the falsification of records charges, they each face 20 years for each count. However, any sentence following a conviction would be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
Any indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which government must prove guilt beyond a reasonable doubt.
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Texas Man Sentenced to Ten Years in Prison for Fake Investment Fraud SchemeRead the Press Release
WASHINGTON – Sean T. Johnson, also known as Shawn Johnson, 42, of Dallas, Texas, has been sentenced to 10 years in prison for carrying out a six-year fraud scheme in which he tricked victims into investing with him in ventures that did not exist, and lied to victims about his professional background, his contacts with celebrities, and his personal net worth, in order to induce them to invest in the scheme.
The announcement was made by U.S. Attorney Matthew M. Graves, and Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division.
Johnson pleaded guilty in November 2019 to one count of wire fraud and one count of aggravated identity theft in the U.S. District Court for the District of Columbia. He was sentenced on May 26, 2022, by the Honorable Richard J. Leon. Following his prison term, Johnson will be placed on four years of supervised release. The judge also ordered Johnson to pay restitution to the victims but will decide the precise amount of restitution at a later date.
From September 2012 through October 2018, Johnson conned numerous unsuspecting victims out of money by posing as a wealthy investor and businessman. While Johnson varied his approach based upon the personality, gender, and lifestyle of the victim, the scam almost always began with the defendant flashing money near the victim, name-dropping celebrity friends who were investors in his ventures, talking up his business acumen, and offering to “help” his friends become wealthy, like him.
To entice victims, Johnson wore expensive designer clothes, talked constantly about his wealth, and bragged about owning expensive houses and condominiums. To add legitimacy to his scheme, he created “promissory notes” to document victims’ investments. The promissory notes detailed how much the person invested and when and how much money Johnson promised to return to them. With almost every victim, Johnson claimed to have an assistant whose identity he appropriated from a former co-worker, and he used fake accounts in this fake assistant’s name to communicate with his victims and lend credibility to his fake business ventures. In total, Johnson swindled his victims from all over the country out of over $1 million. He spent these illegal proceeds on lavish personal expenditures, such as luxury vehicles, designer clothing, alcoholic beverages at nightclubs, tickets to sporting events, and gambling at casinos.
More than a dozen victims submitted victim impact statements to the court in which they described the devastating emotional and financial consequences of the defendant’s misconduct. Most victims lost the entirety of their savings, ruined their credit, and/or were forced into foreclosure or bankruptcy as a result of the scheme.
Johnson was arrested in October 2018. He has been in custody since.
In announcing the sentencing, U.S. Attorney Graves and Special Agent in Charge Jacobs commended the work of those who investigated the case from the FBI’s Washington Field Office and the assistance of the victims who came forward to report the defendant’s fraud scheme. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Amanda Rohde and Victim/Witness Advocate Yvonne Bryant.
Finally, they commended the work of Assistant U.S. Attorney Kathryn Rakoczy and former Assistant U.S. Attorney David Misler, who prosecuted the matter.
Tampa Multi-Convicted Felon Sentenced to Federal Prison for Possession of A Loaded FirearmRead the Press Release
Tampa, Florida – U.S. District Judge William F. Jung has sentenced James Williams, III (29, Tampa) to nine years and two months in federal prison following conviction for one count of being a felon in possession of a firearm. He was also ordered to forfeit the firearm and serve three years of supervised release. Williams had pleaded guilty on March 2, 2022.
According to facts presented in court, on May 5, 2021, Tampa Police Department (TPD) Officers were conducting an undercover narcotics operation. While conducting surveillance, police observed Williams drive up to the target house in a black BMW, with expired registration, and go inside. Officers had prior contact with Williams and knew that his drivers’ license had been suspended. Shortly thereafter, the officers saw Williams leave the residence and get back in the BMW and drive away. He was the sole occupant of the car. TPD officers conducted a traffic stop on the BMW and arrested Williams for driving while his license was suspended.
During the initial contact, police immediately detected a strong odor of marijuana coming from inside Williams’ vehicle. Officers also observed a leafy substance on and around the driver’s seat and the center console of the car. During a search of the vehicle, officers found a small plastic baggie with marijuana inside Williams’ front, left pants pocket, and a fabric backpack on the front passenger seat of the vehicle, next to where Williams had been sitting. Inside of the backpack was a brown jar containing marijuana, a larger clear plastic baggie filled with a large quantity of marijuana, a half-filled box of unused clear sandwich sized baggies, and a black and stainless-steel digital scale with marijuana residue on it. The marijuana weighed in at approximately 220.8 grams.
In addition, police also located a black semi-automatic FN Herstal model Five-Seven 5.7x28mm caliber pistol on the floor, at the base of the driver’s seat. The pistol, which was easily accessible to Williams, was loaded with 19 rounds in the magazine, and 1 live round in the chamber. Forensic analysis later confirmed that DNA obtained from Williams matched DNA found on the firearm. Subsequent investigation revealed photos of Williams posing with the firearm on his social media accounts. The firearm had been reported stolen eight months prior to being recovered from Williams. At the time of the incident, Williams had been convicted of multiple felonies, including resisting an officer with violence, possession of forged credit cards, possession of marijuana, and being a felon in possession of a firearm. Therefore, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Craig Gestring.
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.
Steven A. Russell to be New Acting U.S. AttorneyRead the Press Release
Career prosecutor Steven A. Russell has been named the Acting United States Attorney to take over following the retirement of Interim United States Attorney Jan W. Sharp. Russell’s appointment will be effective on May 28, 2022.
Russell, a 1982 graduate of the University of Nebraska College of Law, has been with the United States Attorney’s Office since 1985. Prior to joining the U.S. Attorney’s Office, Russell worked in private practice and as a Deputy Hall County Attorney. Russell is originally from Richmond, Indiana. During his tenure with the Department of Justice, Russell has handled a wide variety of cases, both civil and criminal, and currently serves as the District of Nebraska’s First Assistant United States Attorney. Russell will serve until a new U.S. Attorney is appointed by the President.
Springfield Man Indicted for Sex Trafficking a MinorRead the Press Release
BOSTON – A Springfield man has been indicted by a federal grand jury for a sex trafficking offense involving a minor.
Carlos Casillas, 48, was indicted on one count of sex trafficking of a minor. Following an initial appearance in federal court in Springfield on May 23, 2022 before U.S. District Court Magistrate Judge Katherine A. Robertson, Casillas was released on conditions pending a further hearing which is scheduled for June 23, 2022.
According to the indictment, on or about Sept. 3, 2021 in West Springfield, Casillas caused a child under the age of 18 to engage in a commercial sex act.
On Feb. 10, 2022, Casillas was arrested on charges in Springfield District Court of aggravated rape of a child and enticing a child.
Members of the public who believe they, or someone they know, may be a victim of this crime should contact [email protected].
If you or someone you know may be impacted or experiencing commercial sex trafficking, please visit https://polarisproject.org/ for information and resources.
The charge of sex trafficking of a minor provides for a sentence of at least 10 years in prison, five years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; Hampden County District Attorney Anthony D. Gulluni; Hampden County Sheriff Nicholas Cocchi; and West Springfield Police Chief Ronald Campurciani made the announcement today. Assistant U.S. Attorney Catherine G. Curley of Rollins’ Springfield Branch Office is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
South Florida Caretaker Who Stole Hundreds of Thousands from Elderly Couple Pleads Guilty to Federal CrimesRead the Press Release
Miami, Florida – Yesterday, in federal district court in Fort Pierce, Sherri Lynn Smith, 52, admitted that she committed bank fraud and aggravated identity theft when she used the private financial information of two seniors in her care to steal the couple’s money.
Smith worked as a caretaker for the Broward County elderly couple from 2016 through 2019. Smith had access to the victims’ bank accounts to assist them with paying their monthly bills. She used that access to embezzle approximately $300,000 out of the victims’ bank accounts without their knowledge or consent. Smith accomplished this by forging a victim’s signature on several checks made payable to herself, her family members, and her creditors. Smith also transferred money electronically from the victims’ bank accounts to her own and made electronic payments from the victims’ accounts to numerous credit card accounts belonging to Smith and her husband.
United States District Court Judge Thomas Barber, a visiting judge from the Middle District of Florida, will sentence Smith at 1:00 p.m. on August 26, in Fort Pierce. Smith faces a maximum prison sentence of 30 years on the bank fraud charge and two years on each of the aggravated identity theft counts, for a total possible sentence of 34 years.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI Miami, made the announcement.
FBI Miami investigated the case. Assistant U.S. Attorney Stacey Bergstrom is prosecuting it. Assistant U.S. Attorney Mitchell Hyman is handling asset forfeiture.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. The mission of the Department’s Elder Justice Initiative is to support and coordinate the Department’s enforcement and programmatic efforts to combat elder abuse, neglect and financial fraud and scams that target our nation’s seniors. To learn more visit https://www.justice.gov/elderjustice. The public is encouraged to report victimization and suspected fraud schemes by calling the National Elder Fraud Hotline at 1-833-FRAUD 11 (1-833- 372-8311).
You may find related court documents and information 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-14023.
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Shiprock man arraigned for assault in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Raydell Billy, 31, of Shiprock, New Mexico, and an enrolled member of the Navajo Nation, was arraigned in federal court today on a two-count indictment charging him with conspiracy to commit assault with a dangerous weapon and assault with a dangerous weapon with the intent to do bodily harm. Billy will remain in custody pending trial, which has not been scheduled.
A grand jury indicted Raydell Billy and co-defendants Raynorma Billy and Alvin White on May 24. According to the indictment and other court records, on April 11, Raynorma allegedly drove Raydell and White to a residence at South Side Non-profit Housing in Shiprock with the intent to assault a victim, identified as John Doe. After they entered the residence, Raynorma allegedly prevented the other occupants of the residence from intervening while Raydell and White assaulted John Doe. The indictment alleges that White threatened John Doe with a machete and both Raydell and White allegedly beat John Doe with their fists.
The alleged assault occurred on the Navajo Nation.
White was arrested on April 24 and made an initial appearance in court on April 28. White appeared for a preliminary and detention hearing on May 2 and will remain in custody pending trial. White is scheduled for arraignment on May 31.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Raydell, Raynorma and White each face up to five years in prison for conspiracy and up to ten years in prison for assault with a dangerous weapon with the intent to do bodily harm.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Department of Criminal Investigations. Assistant United States Attorney Mark Pfizenmayer is prosecuting the case.
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Second Man Pleads Guilty to Scheme to Attack Democratic Headquarters in SacramentoRead the Press Release
SAN FRANCISCO – The second of two California men pleaded guilty today to a conspiracy to destroy by fire or explosive a building affecting interstate commerce in a scheme to attack the Democratic Headquarters in Sacramento, announced U.S. Attorney Stephanie M. Hinds, Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, and Special Agent in Charge Sean Ragan of the FBI’s San Francisco Field Office.
Ian Benjamin Rogers, 46, of Napa, and Jarrod Copeland, 38, previously of Vallejo, were indicted on July 21, 2021, in connection with a plan to attack targets they associated with Democrats after the 2020 Presidential election. Today, Rogers pleaded guilty to the conspiracy charge in United States District Court. Rogers also pleaded guilty to additional weapons violations, including one count of possession of unregistered destructive devices, and one count of possessing an illegal machine gun. Copeland previously pleaded guilty to the conspiracy charge and an additional count of destruction of records.
According to the plea agreements entered at the time of their guilty pleas, Rogers and Copeland admitted that they conspired together between November 2020 and January 2021 to destroy the John L. Burton Democratic Headquarters in Sacramento. Rogers and Copeland admitted that they discussed plans to attack the building with cans of gasoline, including by throwing gas cans through the front windows of the building and igniting the gasoline to burn down the building.
Documents filed by the government describe that in November 2020, Rogers told Copeland that he would “hit the enemy in the mouth” by using Molotov cocktails and gasoline to attack targets associated with Democrats, including the Governor’s Mansion and the Democratic Headquarters Building in Sacramento. According to court documents, Rogers and Copeland went on to discuss potentially getting labeled as “domestic terrorists,” with Rogers describing a “hope [their] actions will make others to get involved.” The indictment describes that in late December 2020, Copeland told Rogers he contacted an anti-government militia group to gather support for the movement and in January 2021, Rogers stated to Copeland “I want to blow up a democrat building bad.” Copeland agreed, saying, “I agree” and “Plan attack.” They agreed to start with the Democratic Headquarters in Sacramento and to “see what happens.”
Rogers admitted in his plea agreement to viewing the building on the internet and sending a map of the location to Copeland. The men also admitted to discussing the building’s proximity to a fire department and certain law enforcement in devising their plan, using that information to refine the method of attack to ensure they caused the greatest damage to the building while allowing their escape without detection. Rogers and Copeland also discussed waiting until after the presidential inauguration on Jan. 20, 2021, before carrying out the attack. As described in the indictment, Rogers wrote to Copeland, “after the 20th we go to war.”
According to court documents, on Jan. 15, 2021, law enforcement officers searched Rogers’s home and business and seized a cache of weapons, including 45 to 50 firearms, thousands of rounds of ammunition, and five pipe bombs. Rogers admitted in his plea agreement that he had constructed the pipe bombs and anticipated using them against the property of those whose political views differed from his, including the Democratic Headquarters building in Sacramento. He further admitted that he possessed at least three fully automatic machine guns and considered using one of them in the attack on the building.
In addition, Copeland admitted in his plea agreement that after he learned of Rogers’s Jan. 15 arrest, he notified a militia group to which he belonged and, in response to instruction from them, destroyed evidence to prevent law enforcement from finding the evidence.
Rogers and Copeland each face a maximum statutory sentence of 20 years imprisonment, a three-year term of supervised release, and a $250,000 fine for the conspiracy charge. In addition, Rogers faces a maximum of 10 years in prison for the weapons charges and Copeland faces a maximum of 20 years in prison for the destruction of evidence charge. Any sentence will be determined only after considering the U.S. Sentencing Guidelines and other statutory factors. Rogers also faces numerous state charges arising out of his possession of the pipe bombs and machine guns, and his possession of assault rifles prohibited under California law, and he is being prosecuted for those offenses by the Napa County District Attorney’s Office.
Rogers’s sentencing is scheduled for September 30, 2022. Copeland’s sentencing, also pending before U.S. Senior District Judge Charles R. Breyer in San Francisco, has not yet been scheduled. Rogers has remained in continuous custody since his arrest on Jan. 15, 2021; he was transferred from state to federal custody in January 2022. Copeland has remained in federal custody since his arrest on July 14, 2021.
Assistant U.S. Attorneys Frank Riebli and Eric Cheng of the Northern District of California are prosecuting the case, with assistance from Trial Attorney David Cora of the National Security Division’s Counterterrorism Section. The FBI’s San Francisco Field Office is investigating the case, with valuable assistance provided by the FBI Sacramento Field Office and Napa County Sheriff’s Department.
School and Owner Pay over $1 Million to Resolve Allegations of Attempts to Improperly Influence the School's Student Loan Default RateRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that CAREER TRAINING SPECIALISTS, LLC, doing business as STONE ACADEMY, and its owner, MARK SCHEINBERG, have paid more than $1 million to resolve allegations that they violated the federal False Claims Act by concealing a series of money order payments made by Scheinberg to prevent certain loans from being counted in Stone Academy’s student loan default rate, and for failing to disclose Stone Academy’s actual, higher default rate to the U.S. Department of Education.
Stone Academy is a for-profit school with campuses in East Hartford, Waterbury and West Haven that awards career diplomas in various medical fields, and it participates in federal student loan and grant programs under Title IV of the Higher Education Act of 1965. One measure that determines an institution’s eligibility to participate in Title IV programs is the institution’s “cohort default rate” (“CDR”), which is the percentage of the institution’s federal student loan borrowers who default (or are deemed to default) within a specified time after entering repayment status. If an institution’s CDR is too high – an indicator that too many of an institution’s graduates are unable to repay their student loans – the institution faces administrative consequences that may include termination of eligibility to participate in certain Title IV programs. For purposes of calculating an institution’s CDR, a borrower is considered to be in default if an institution – or an institution’s owner, agent or affiliated individual – makes a payment to prevent a borrower’s default on a loan included in a cohort.
This settlement resolves allegations that, between February 2015 and March 2019, Scheinberg and Stone Academy mailed 154 small, direct payments to loan servicers on behalf of 102 students in attempts to prevent those students from defaulting on their loans and being counted in Stone Academy’s CDR. The payments were made with money orders purchased and filled out by Scheinberg without the students’ knowledge or consent, and in a manner intended to conceal the fact that these payments were made by Scheinberg and Stone Academy. Stone Academy then failed to disclose to the Department of Education its actual, higher CDR reflecting the deemed default of numerous borrowers given Scheinberg’s concealed payments.
In addition to making payment of $1,023,950, plus interest, under a civil settlement agreement, Stone Academy and Scheinberg also entered into an administrative agreement with the Department of Education in which Scheinberg agreed to cease involvement and participation in the operations, and divest direct ownership, of both Stone Academy and another for-profit school, Creative Workforce LLC, doing business as Paier College of Art. The administrative agreement also governs Scheinberg’s agreed-to retirement from Goodwin University and the University of Bridgeport.
“The cohort default rate is an important metric that students can use to research whether a school provides a valuable education because it can show whether the degree they would earn will help them find employment that allows them to stay current on their student loans,” said U.S. Attorney Avery. “Educational institutions – especially private, for-profit schools – that attempt to hide high student loan default rates from the Education Department and their students not only risk forfeiting their and their students’ eligibility to receive federal funds, but they risk federal enforcement by our office and our investigative agency partners.”
“Today’s settlement is a result of the work and effort of the Office of Inspector General and the Department of Justice to protect and maintain the integrity of federal student aid programs,” said Terry Harris, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Eastern Regional Office. “We will continue to work together to ensure that federal student aid funds are used as required by law. America’s taxpayers and students deserve nothing less.”
This investigation was conducted by the U.S. Department of Education – Office of Inspector General and the U.S. Postal Inspection Service. This matter was prosecuted by Assistant U.S. Attorney Sarah Gruber with the assistance of Auditor Susan N. Spiegel, along with assistance from the U.S. Department of Education’s Office of General Counsel and Federal Student Aid.
San Luis Obispo Man Sentenced to Nearly 2 Years in Federal Prison for Bribing County Supervisor and Filing False Income Tax ReturnsRead the Press Release
LOS ANGELES – A San Luis Obispo man was sentenced today to 22 months in federal prison for paying a county supervisor approximately $32,000 in bribes – most of them in cash – in exchange for the supervisor’s votes and influence on other votes affecting his cannabis business interests.
Helios Raphael Dayspring, a.k.a. “Bobby Dayspring,” 36, was sentenced by United States District Judge André Birotte Jr. Dayspring has paid the restitution order of $3,438,793 to the IRS in this case.
In October 2021, Dayspring pleaded guilty to one count of bribery and one count of subscribing to a false income tax return.
Dayspring owned, operated, and had a controlling interest in multiple farms that grew cannabis in San Luis Obispo County. He also had ownership interests in businesses that sold marijuana to the public, including in Grover Beach. To further his interests in the farms that grew cannabis in San Luis Obispo County, Dayspring began paying bribes to a San Luis Obispo County supervisor in the fall of 2016 and continued doing so through November 2019.
In total, Dayspring paid the late Third District supervisor multiple bribes in cash and money orders totaling $32,000. In exchange, the supervisor voted on matters affecting Dayspring’s farms, including voting multiple times in favor of legislation that permitted Dayspring’s farms to operate before it had obtained final permitting approvals.
In addition to bribing the San Luis Obispo County supervisor, Dayspring attempted to bribe the then-mayor of Grover Beach in exchange for two dispensary licenses in that city. The attempted $100,000 bribe took place during a dinner meeting in September 2017. The mayor did not respond to the offer, and Dayspring did not end up paying the bribe.
Dayspring also substantially underreported his personal income on his federal tax returns for the years 2014 through 2018, which resulted in the IRS losing more than $3.4 million in tax revenue. For example, for the tax year 2018, Dayspring falsely reported his taxable income as $1,262,894, when in fact his income was greater than $6.5 million.
Dayspring “had one goal: build a cannabis empire,” prosecutors wrote in a sentencing memorandum. “To accomplish that goal, he would not let anything get in his way, including the law.”
The FBI and IRS Criminal Investigation investigated this matter.
Assistant United States Attorney Thomas F. Rybarczyk of the Public Corruption and Civil Rights Section prosecuted this case.
San Antonio Man Sentenced for Arson of Travis County Political Party OfficeRead the Press Release
AUSTIN – A San Antonio man was sentenced today to 72 months in prison for arson.
According to court documents, on September 29, 2021, Ryan Taylor Faircloth, 31, threw a Molotov cocktail through the window of the Travis County Democratic Party office in downtown Austin, causing a fire. Faircloth admitted to targeting the political party office because he opposed positions he believed to be taken by the Democratic Party. A good Samaritan was able to extinguish the fire before 911 responders arrived.
On January 10, 2022, Faircloth pleaded guilty to one count of arson. In addition to the prison sentence, Faircloth was ordered to pay $12,472.84 in restitution and a $5,000 fine.
“Violence in the political process is unacceptable,” said U.S. Attorney Ashley C. Hoff. “We all must respect the rule of law. Those who commit acts of violence or destroy property for a political or ideological agenda will be held accountable for their crimes. My office will continue to investigate and bring to justice anyone who uses violent acts to harm, intimidate or coerce their fellow citizens participating in the political process.”
"Those who commit violence for any ideological agenda will be held accountable for their actions," said FBI San Antonio Special Agent in Charge Oliver E. Rich Jr.
The FBI Joint Terrorism Task Force, with assistance from the Austin Police and Fire Departments, investigated the case.
Assistant U.S. Attorneys G. Karthik Srinivasan and Michael C. Galdo prosecuted the case.
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St. Croix Man Charged with Possession of an Unlicensed FirearmRead the Press Release
St. Croix, USVI – United States Attorney Delia L. Smith announced today that an Information was filed charging Rionel Allembert, 21, of St. Croix, with possession of an unlicensed firearm and possession of a firearm with a school zone. If convicted, Allembert faces up to five years in prison.
According to court documents, on September 28, 2021, members of the Virgin Islands Police Department located a Taurus 9mm handgun in a ditch at #21 Anna’s Hope, St. Croix. DNA testing later revealed the presence of Allembert’s DNA on the firearm. Allembert did not have a license to possess the firearm which was located approximately 290 feet from the Church of God of Holiness Academy, a preschool.
This case is being investigated by the Virgin Islands Police Department and members of the High Intensity Drug Trafficking Area (HIDTA) Task Force are investigating, and Assistant United States Attorney Daniel H. Huston is prosecuting the case.
This case is part of the Department of Justice’s Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is a nationwide initiative that brings together federal, state, local and tribal law enforcement officials, prosecutors, and community leaders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. For more information on the Department of Justice’s Project Safe Neighborhoods, please see: https://www.justice.gov/psn.
United States Attorney Smith reminds the public that a criminal complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
St. Croix Man Charged with Possession of an Unlicensed FirearmRead the Press Release
St. Croix, USVI – United States Attorney Delia L. Smith announced today that an Information was filed charging Rionel Allembert, 21, of St. Croix, with possession of an unlicensed firearm and possession of a firearm with a school zone. If convicted, Allembert faces up to five years in prison.
According to court documents, on September 28, 2021, members of the Virgin Islands Police Department located a Taurus 9mm handgun in a ditch at #21 Anna’s Hope, St. Croix. DNA testing later revealed the presence of Allembert’s DNA on the firearm. Allembert did not have a license to possess the firearm which was located approximately 290 feet from the Church of God of Holiness Academy, a preschool.
This case is being investigated by the Virgin Islands Police Department and members of the High Intensity Drug Trafficking Area (HIDTA) Task Force, and Assistant United States Attorney Daniel H. Huston is prosecuting the case.
This case is part of the Department of Justice’s Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is a nationwide initiative that brings together federal, state, local and tribal law enforcement officials, prosecutors, and community leaders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. For more information on the Department of Justice’s Project Safe Neighborhoods, please see: https://www.justice.gov/psn.
United States Attorney Smith reminds the public that a criminal complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Richmond Man Pleads Guilty to $1 Million Paycheck Protection Program Fraud SchemeRead the Press Release
RICHMOND, Va. – A Richmond man pleaded guilty today to defrauding the Paycheck Protection Program (PPP) of over $1 million in funds intended for small businesses affected by the COVID-19 Pandemic.
According to court documents, from April 2020 to April 2021, Moe Ayemen Mathews, 51, with the assistance of his co-conspirator, submitted at least 38 fraudulent PPP loan applications to financial institutions for businesses the conspirators claimed to own and operate. In their first draw PPP applications, the conspirators falsely certified that the information and supporting documentation provided was true and accurate when, in fact, the applications contained false statements, false certifications, and fabricated tax documents. For instance, the conspirators repeatedly inflated or fabricated the average monthly payroll and number of employees working for their purported businesses, and they submitted fabricated tax documents to substantiate the false information provided in their PPP applications. Once their fraudulent applications were approved, the conspirators did not use the funds in accordance with the program’s requirements.
Additionally, after their first draw PPP applications were approved and funded, the conspirators submitted fraudulent second draw PPP applications predicated on their fraudulently-obtained first draw PPP loans. When submitting the second draw PPP applications for their purported businesses, the conspirators concealed the fact that they had intentionally and knowingly submitted false and misleading first draw PPP applications. Once these second-draw applications were approved, the conspirators used the loan proceeds contrary to the program’s requirements.
Mathews is scheduled to be sentenced on October 7. He faces a maximum penalty of 30 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; Hannibal “Mike” Ware, Inspector General of the Small Business Administration (SBA); and Jay N. Lerner, Inspector General of the Federal Deposit Insurance Corporation (FDIC), made the announcement after Senior U.S. Districy Judge Henry E. Hudson accepted the plea.
The U.S. Attorney’s Office for the Eastern District of Virginia expresses its appreciation to the Virginia State Corporation Commission for their assistance with this investigation.
Assistant U.S. Attorney Kashan Pathan is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:22-cr-44.
Retired Massachusetts State Trooper Sentenced in Overtime Abuse InvestigationRead the Press Release
BOSTON – A retired Massachusetts State Police Trooper was sentenced yesterday in federal court in Boston in connection with overtime abuse at the Massachusetts State Police (MSP).
Daren DeJong, 60, of Uxbridge, was sentenced by U.S. District Court Senior Judge Mark L. Wolf to two years of probation, with the first six months to be served in home confinement. DeJong was also ordered to pay a fine of $5,500 and restitution in the amount of $14,062. In January 2019, DeJong pleaded guilty to one count of embezzlement from an agency receiving federal funds.
DeJong, who is retired, was a Trooper assigned to Troop E, which is responsible for enforcing criminal law and traffic regulations along the Massachusetts Turnpike, Interstate I-90. DeJong received overtime pay for hours that he either did not actually work at all, or shifts in which he departed one to seven hours early.
The conduct involves overtime pay for selective enforcement initiatives, including the Accident and Injury Reduction Effort program (AIRE) and the “X-Team” initiative. Both initiatives are intended to reduce accidents, crashes, and injuries on I-90 through an enhanced presence of MSP Troopers and targeting vehicles traveling at excessive speeds. DeJong was required to work the entire duration of the shifts – either four or eight hours – and truthfully report the date, time and sector of deployment on the citations issued during the shift. DeJong concealed the fraud by submitting citations that were issued outside the overtime shift, altered the citations to create the appearance that citations were issued during the overtime shift, and/or submitted citations that were never issued and never took place.
Trooper DeJong earned $200,416 in 2016, which included approximately $68,394 in overtime, of which more than $14,000 was attributable to AIRE and X-Team shifts that DeJong either left early or did not show up for.
In 2015 and 2016, MSP received annual benefits from the U.S. Department of Transportation in excess of $10,000, which were funded pursuant to numerous federal grants.
DeJong is the eighth and final defendant to be sentenced in the case involving MSP Troop E overtime abuse.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Christopher A. Scharf, Special Agent in Charge of the U.S. Department of Transportation’s Office of Inspector General made the announcement. Assistant U.S. Attorneys Dustin Chao and Mark Grady of Rollins’ Criminal Division prosecuted the case.
Putnam County Commissioner Facing Child Pornography ChargesRead the Press Release
NASHVILLE – A Putnam County Commissioner was charged yesterday with possession, receipt, and distribution of child pornography, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
Jimmy Ray Neal, 57, of Baxter, Tennessee, was arrested at his home, after FBI and Homeland Security Investigations agents executed a search warrant. Neal was transported to Nashville and appeared before a U.S. Magistrate Judge late yesterday.
A criminal complaint obtained yesterday alleges that Neal was identified as an administrator of a group in the Kik app in which images of child pornography were viewed and shared with other users. Specifically, the images depicted naked pre-pubescent females with the focus on the genital area.
This long-running investigation by the FBI began in July 2021, and after the arrest of an Oklahoma man on child pornography charges, other users in the Kik app group were identified, including “tennesseemaster,” later identified as Jimmy Ray Neal.
A preliminary and detention hearing is set for Tuesday, May 31, 2022, at 2 p.m.
If convicted, Neal faces a mandatory minimum of five years, and up to 20 years in prison.
This case is being investigated by the FBI and Homeland Security Investigations. Assistant U.S. Attorney Monica Morrison is prosecuting the case.
The charges are merely accusations. The defendant is presumed innocent until proven guilty in a court of law.
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