Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
26 May 2022
Woman Arrested in Rancho Cordova Sentenced to over 7 Years in Prison for Identity Theft and Bank Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Candice Nicole Freitas, 34, formerly of Martinez, was sentenced today by U.S. District Judge Troy L. Nunley to seven years and 10 months in prison for bank fraud, aggravated identity theft, and possession of reproduced U.S. Postal Service keys, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between April and August 2018, Freitas and her co-defendant Cody Cannon committed a fraud scheme in which they used counterfeit U.S. Postal Service keys to open residential mailboxes, typically in large apartment complexes, and steal hundreds of pieces of U.S. mail throughout Northern California. From the stolen mail, Freitas and Cannon harvested financial information, credit and debit cards, government-issued IDs, and personally identifiable information (PII). They also defrauded banks by using the stolen bankcards to purchase goods and withdraw cash from ATMs in at least Vacaville, Folsom, Rocklin, and Rancho Cordova.
In August 2018, Freitas and Cannon were arrested at their motorhome, which was parked in a hotel parking lot in Rancho Cordova. During a search of the motorhome, law enforcement found hundreds of pieces of stolen mail, checks, and bankcards, as well as documents containing the PII of dozens of identity-theft victims. Law enforcement also found stolen and counterfeit government-issued IDs, including at least 20 California driver’s licenses and two U.S. passports. The U.S. Postal Inspection Service has identified over 1,500 victims of mail and identity theft associated with these offenses.
This case was the product of an investigation by the U.S. Postal Inspection Service, the Sacramento County Sheriff’s Department, the Folsom Police Department, and the Vacaville Police Department. Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
In October 2019, Cannon was sentenced to four years and nine months in prison for his involvement in this scheme.
Washington woman sentenced to 52 months in prison for cyberstalking and harassing Montana man, public officialsRead the Press Release
MISSOULA — A Washington woman who was convicted by a jury of cyberstalking a Montana man and Montana public officials by hacking the man’s email and sending harassing and threatening communications was sentenced today to 52 months in prison, to be followed by three years of supervised release, U.S. Attorney Leif M. Johnson said.
Kathy Ann Hendrickson, also known as Kathy Thorberg, 60, of Walla Walla, Washington, was convicted on Feb. 16 of cyberstalking following a three-day trial.
U.S. District Judge Donald W. Molloy presided.
In court documents and at trial, the government presented evidence that Hendrickson met the victim, identified as John Doe, on a dating website sometime in 2015 or 2016. The two communicated online and eventually met in person on several occasions at John Doe’s residence in Trout Creek. John Doe ended the relationship and then suspected Hendrickson of stealing his personal information. Hendrickson started harassing John Doe as early as May 2018 when, using an anonymous email account, sent him an email stating, “I’m going to bring you down.”
Hendrickson also hacked into John Doe’s account, using a password she stole from his address book, and sent threatening emails, including death threats, to herself and to Sanders County Commissioners and another county employee. Hendrickson also used John Doe’s email address to send a threatening email to then-Governor Steve Bullock in another attempt to subject John Doe to law enforcement scrutiny.
Court documents further alleged that Hendrickson not only used a fake email account to harass victims, but also used a burner phone. While Hendrickson’s real phone contained incriminating evidence, the burner phone was not recovered during the investigation.
Assistant U.S. Attorney Timothy J. Racicot prosecuted the case, which was investigated by the FBI.
XXX
Washington State man pleads guilty to hate crime in connection with arson at Capitol Hill barRead the Press Release
Seattle – Kalvinn Garcia, 25, of Sedro Woolley, Washington, pleaded guilty today to one count of committing a hate crime for the Feb. 24, 2020, arson at Queer/Bar, a nightclub and event space in Seattle, Washington. Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Nick Brown for the Western District of Washington and Special Agent in Charge Donald M. Voiret for the FBI Seattle Field Office made the announcement.
According to documents filed in connection with the plea, Garcia set fire to the contents of a dumpster in the alley directly behind Queer/Bar on February 24, 2020. Garcia was arrested only minutes after setting the fire. Garcia admitted to law enforcement that he set the fire and that he targeted Queer/Bar because it angered him to see a sign that said “queer.” He also told officers, “I think it’s wrong that we have a bunch of queers in our society.” A few weeks after the incident, Garcia told a stranger that his intent in setting the fire was to trap and hurt the people inside.
“The defendant targeted the patrons inside Queer/Bar, a known safe space for the LGBTQI+ community,” said Assistant Attorney General Clarke. “Hate crimes have no place in our society today and we stand ready to use our federal civil rights laws to hold perpetrators accountable. All people deserve to feel safe and secure living in their communities, regardless of their sexual orientation or gender identity.”
“Mr. Garcia endangered countless people who he did not know, and who were simply trying to live their lives, solely because of his own hatred,” said U.S. Attorney Brown. “We must stand up to this hate at every opportunity, to demonstrate to our community that acting on hate will not be tolerated.”
“Mr. Garcia’s hateful act endangered and spread fear in the LGBTQ+ community and caused damage to this business establishment,” said Special Agent in Charge Voiret, of the FBI Seattle Field Office. “Fortunately, our partners at the Seattle Police Department were able to respond quickly to this arson. This case shows our commitment to investigating civil rights violations with our partners.”
Garcia faces a maximum sentence of ten years of imprisonment and a $250,000 fine. Sentencing in front of U.S. District Judge John C. Coughenour is scheduled for September 20, 2022.
The case was investigated by FBI and the Seattle Police Department. The case is being prosecuted by Assistant United States Attorney Rebecca Cohen and Trial Attorney Angie Cha of the Civil Rights Division.
Washington Man Pleads Guilty to Committing Hate Crime for Arson at Seattle NightclubRead the Press Release
Kalvinn Garcia, 25, of Sedro Woolley, Washington, pleaded guilty to one count of committing a hate crime for the Feb. 24, 2020, arson at Queer/Bar, a nightclub and event space in Seattle, Washington. Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Nick Brown for the Western District of Washington and Special Agent in Charge Donald M. Voiret for the FBI Seattle Field Office made the announcement.
According to documents filed in connection with the plea, Garcia set fire to the contents of a dumpster in the alley directly behind Queer/Bar on Feb. 24, 2020. Garcia was arrested only minutes after setting the fire. Garcia admitted to law enforcement that he set the fire and that he targeted Queer/Bar because it angered him to see a sign that said “queer.” He also told officers, “I think it’s wrong that we have a bunch of queers in our society.” A few weeks after the incident, Garcia told a stranger that his intent in setting the fire was to trap and hurt the people inside.
“The defendant targeted the patrons inside Queer/Bar, a known safe space for the LGBTQI+ community,” said Assistant Attorney General Clarke. “Hate crimes have no place in our society today and we stand ready to use our federal civil rights laws to hold perpetrators accountable. All people deserve to feel safe and secure living in their communities, regardless of their sexual orientation or gender identity.”
“Garcia endangered countless people who he did not know and who were simply trying to live their lives, solely because of his own hatred,” said U.S. Attorney Brown. “We must stand up to this hate at every opportunity, to demonstrate to our community that acting on hate will not be tolerated.”
“Garcia’s hateful act endangered and spread fear in the LGBTQ+ community and caused damage to this business establishment,” said Special Agent in Charge Voiret. “Fortunately, our partners at the Seattle Police Department were able to respond quickly to this arson. This case shows our commitment to investigating civil rights violations with our partners.”
Garcia faces a maximum sentence of 10 years of imprisonment and a $250,000 fine.
The case was investigated by FBI and the Seattle Police Department. The case is being prosecuted by Assistant U.S. Attorney Rebecca Cohen and Trial Attorney Angie Cha of the Civil Rights Division.
Virginia Man Sentenced for Passing Counterfeit U.S. CurrencyRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on May 25, 2022, Dale Richard Estep II, age 35, of Colonial Beach, Virginia, was sentenced by U.S. District Court Judge Sylvia H. Rambo to two years of probation, four of those months on home confinement, for passing counterfeit U.S. currency.
According to U.S. Attorney John C. Gurganus, Estep passed counterfeit currency at the Sheetz, Sunoco, and Rutters gas stations along the I-81 and US 15 corridors in Adams, Cumberland, Franklin, and York Counties between May 12-14, 2019.
Judge Rambo ordered Estep to pay restitution in the amount of $3,300 as follows:
- $2,650 to Sheetz, Claysburg, PA;
- $500 to Sunoco A+, Dillsburg, PA; and
- $150 to Rutters, Dillsburg, PA.
The case was investigated by the United States Secret Service, Harrisburg Office. Assistant U.S. Attorney Christian T. Haugsby prosecuted the case.
# # #
Verzatec Abandons Proposed Acquisition of Crane Composites Following Justice Department Suit to BlockRead the Press Release
The Department of Justice announced today that Grupo Verzatec S.A. de C.V. (Verzatec) has abandoned its proposed acquisition of Crane Composites (Crane), a wholly-owned subsidiary of Crane Co. The proposed transaction would have eliminated intense competition between Verzatec and its biggest competitor, Crane, allowing Verzatec to dominate the industry and harm American businesses.
On March 17, the department filed suit to block the transaction in the U.S. District Court for the Northern District of Illinois. The complaint alleged that the proposed $360 million transaction would harm competition in production and sale of pebbled fiberglass reinforced plastic (FRP) wall panels, whose product and performance characteristics make it the wall covering of choice for many restaurants, grocery stores, hospitals and convenience stores across the United States. The trial was scheduled for Oct. 4. As a result of Verzatec and Crane’s decision to terminate their transaction agreement, the United States has filed a joint stipulation of dismissal.
“Verzatec’s proposed acquisition of Crane was a brazen attempt to eliminate its main rival and establish a monopoly in this market. This case further demonstrates the Justice Department’s resolve to file and litigate suits to block unlawful and anticompetitive mergers under both the Clayton Act and as illegal monopolization under the Sherman Act,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “I would like to recognize the tremendous efforts of our staff who investigated and litigated the case so strongly and applaud them for this excellent result on behalf of American businesses.”
As a result of the abandonment, building supply distributors and home-improvement retailers across the nation will continue to benefit from the head-to-head competition between the companies, as will the many American businesses that use pebbled FRP in applications where low cost, durability and sanitary performance are paramount.
Verzatec is a privately held Mexican corporation with its headquarters in Monterrey, Mexico. Verzatec and its subsidiary Stabilit America Inc. produce and sell building materials and wall coverings, including pebbled FRP wall panels, in the United States under several business units, including Glasteel, Marlite and Nudo.
Crane Company is a Delaware corporation headquartered in Stamford, Connecticut. Crane Company’s wholly-owned subsidiary Crane Composites Inc. manufactures and sells pebbled FRP wall panels in the United States under several brand names, including Glasbord and Sequentia.
U.S. Soldier Indicted in Romance SchemeRead the Press Release
TOPEKA, KAN. – A federal grand jury in Topeka indicted a U.S. Army service member for allegedly participating in a scheme to fraudulently obtain approximately $149,476 from at least 25 individuals.
According to court documents, Innocent N. Ugwu, 24, of Fort Riley, Kansas, is charged with five counts of wire fraud, five counts of laundering monetary instruments, and one count of procurement of citizenship or naturalization unlawfully. From an unknown date until January 2021, Ugwu is accused of conspiring with others to defraud money from individuals in the United States using false pretenses and promises, and the omission of material facts to carry out romance, advance fee and other fraudulent schemes.
The U.S. Secret Service and the Department of Defense, Defense Criminal Investigative Service are investigating the case.
Special U.S. Assistant Attorney Robin Graham and U.S. Assistant Attorney Christine Kenney are prosecuting the case.
OTHER INDICTMENTS
Daniel Cardiel-Ramirez, 31, of Wichita is charged with one count of possession with intention to distribute a controlled substance and one count of possession of a firearm by an illegal alien. The Drug Enforcement Administration (DEA) is investigating the case. Special Assistant U.S. Attorney Katie Andrusak is prosecuting the case.
Chelsea Pulse, 27, of Junction City is charged with one count of embezzlement of the mail, two counts of theft of the mail, and one count of delay of mail. The U.S. Postal Service is investigating the case. Assistant U.S. Attorney Sara Walton is prosecuting the case.
Jeremias Sanchez, 27, an inmate of U.S. Penitentiary Leavenworth, is charged with one count of possession contraband in prison. The U.S. Marshals Service is investigating the case. Assistant U.S. Attorney Greg Hough is prosecuting the case.
James Shaughnessy, 20, is charged with one could of sexual exploitation of a minor- production of child pornography. Homeland Security Investigations (HSI) is investigating the case. Assistant U.S. Attorney Sara Walton is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
U.S. Attorney’s Office secures agreement in race discrimination lawsuit involving Atlanta-based property owners and management companyRead the Press Release
ATLANTA - The U.S. Attorney’s Office announced that the U.S. District Court for the Northern District of Georgia has approved a consent decree resolving the department’s Fair Housing Act lawsuit alleging race discrimination in housing by the owners and manager of two rental properties in Cedartown, Georgia. The defendants are Crimson Management LLC; Benefield Housing Partnership (doing business as Cedartown Commons); and Cedartown Housing Associates (doing business as Cedarwood Village).
“Access to housing opportunities remains unequal for African-American housing applicants all too often,” said U.S. Attorney Ryan K. Buchanan. “My office will continue to devote resources to eradicate this injustice and we will continue to hold housing providers accountable for racial discrimination in violation of the Fair Housing Act.”
“It is unacceptable that race discrimination in housing persists in our nation more than a half-century after President Johnson signed the Fair Housing Act into law,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This Justice Department is committed to vigorously enforcing our civil rights laws by holding housing providers responsible when they perpetuate racial segregation or otherwise engage in prohibited discrimination.”
The lawsuit, filed in May 2020, alleged that the defendants steered Black housing applicants who are elderly or have a disability away from Cedarwood Village, a predominantly white housing complex, to Cedartown Commons, a housing complex that is inferior in appearance, location and amenities to Cedarwood Village. Most residents of Cedartown Commons are Black. The lawsuit further alleged that the defendants subjected Black residents who are elderly or have a disability to less favorable rental terms, conditions and privileges as compared to similarly situated white tenants. The defendants’ policies allegedly perpetuated segregation at the two properties.
This case was jointly litigated by attorneys of the U.S. Attorney’s Office for the Northern District of Georgia and the Justice Department’s Civil Rights Division. Under the court-approved decree, the defendants are required to pay $83,000 in damages to three former tenants who were allegedly harmed as a result of the defendants’ racial steering; pay a civil penalty to the United States; implement nondiscriminatory policies and procedures; complete fair-housing training; and submit periodic reports to the Justice Department.
The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability, and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. Individuals may report sexual harassment or other forms of housing discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-800-896-7743, e-mailing the Justice Department at [email protected], or submitting a report online at https://civilrights.justice.gov/. Individuals may also report such discrimination by contacting the Department of Housing and Urban Development at 1-800-669-9777 or by filing a complaint online at https://www.hud.gov/fairhousing/fileacomplaint.
Assistant U.S. Attorney Aileen Bell-Hughes, Civil Rights Enforcement Coordinator, handled this matter for the U.S. Attorney’s Office for the Northern District of Georgia.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
U.S. Attorney’s Office Settles ADA Claim with Suburban Chicago Salon over Alleged HIV DiscriminationRead the Press Release
The United States Attorney’s Office for the Northern District of Illinois today announced that, as part of a continued effort to enforce the Americans with Disabilities Act (ADA), it has reached a settlement with Faux Ever Beauty in Countryside, Ill., to resolve claims that the salon discriminated against a potential client with HIV.
The U.S. Attorney’s Office found that Faux Ever Beauty discriminated against a person with HIV when the salon’s owner unlawfully refused to perform an eyebrow microblading procedure due to the person’s HIV status. The investigation revealed that Faux Ever Beauty’s actions were not consistent with current medical knowledge. Moreover, an individual’s HIV status is not a legitimate or lawful reason to refuse to treat a patient seeking services.
Under the terms of the settlement agreement and consistent with penalties available under the ADA, Faux Ever Beauty paid $4,500 to the victim of discrimination. In addition, the owner of Faux Ever Beauty must attend training on the requirements of the ADA, implement an anti-discrimination policy, and report to the U.S. Attorney’s Office any time a person is not accepted as a patient due to a medical condition – with a written justification for the decision. The U.S. Attorney’s Office waived the civil fine in recognition of Faux Ever Beauty’s cooperation during the investigation.
“Salons and other businesses should understand that individuals seeking physical services should not be excluded based on HIV,” said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois. “This settlement should send a clear message that individuals living with HIV are entitled to the same services as everyone else.”
Title III of the ADA prohibits public accommodations, such as salons, medical offices, and tattoo parlors, from excluding people with disabilities, including people with HIV, from enjoying goods, services, privileges, facilities, and advantages provided. For more information regarding the Department of Justice’s efforts to combat discrimination, please visit the official ADA government website. To learn more about the obligations of public accommodations under federal disability rights statutes, call the Department of Justice’s toll-free ADA information line at 800-514-0301, 800-514-0383 (TTY).
Assistant U.S. Attorneys Patrick Johnson and Valerie R. Raedy represented the government during the Faux Ever Beauty investigation and settlement.
U.S. Attorney to Present Award to the 19th Annual Project Safe Neighborhoods Logo Contest WinnerRead the Press Release
Columbia, South Carolina --- U.S. Attorney Corey F. Ellis will be at Fairfield Magnet School for Science and Math this Friday, May 27, 2022, at 8:30am, for their Awards Day program in order to present awards to the 19th Annual Project Safe Neighborhoods (PSN) Logo Contest Overall Winner/3rd-5th grade category winner, along with the winner in the K-2nd grade division and several honorable mentions all from that school. He’ll be accompanied by John “JJ” Jones, Executive Director of the South Carolina Law Enforcement Officers’ Association (SCLEOA) and the South Carolina Chiefs Association.
Award winners from Fairfield Magnet School for Science and Math are:
Winner K–2nd grade Division
Mason Cordona
Winner 3rd–5th grade Division/ OVERALL WINNER
Layla McMillan
Honorable Mentions
K-2nd grade Division
Kyngston Turner
3rd – 5th grade Division
Zedrick Curabo
Brianna Lanier
6th – 8th grade Division
Christon Simons
The winning entries were chosen by a select group of young leaders at the South Carolina Department of Juvenile Justice who act as role models for the other youth throughout the entire department. SCLEOA and the South Carolina Sheriffs’ Association provided $50.00 awards to each division winner; and the overall winner received an additional $50.00 award. Awards have already been presented to the other age category winners. All students who participated received a Certificate of Appreciation for their submissions.
The annual logo contest is a long-running part of the district’s PSN program and an important prevention initiative that has proven to be an effective way to engage our students in meaningful conversation about preventing gun crimes amongst our young people and ensuring a safe learning atmosphere for our children. PSN focuses on reducing violent crime in our communities through prevention, enforcement, and reentry initiatives.
View this year’s winning submissions and learn more about the contest at http://www.justice.gov/usao/sc/programs/logowinners.html.
###
U.S. Attorney Talbert Announces Greater Fresno Hate Crimes Task Force, Building on 20+ Years of Greater Sacramento Hate Crimes Task ForceRead the Press Release
FRESNO, Calif. — U.S. Attorney Phillip A. Talbert announced today the first in-person convening of the Greater Fresno Hate Crimes Task Force, which seeks to directly connect federal, state, and local law enforcement with diverse communities in order to build trust and encourage the reporting of hate crimes and hate incidents.
One of the most valuable and sustained efforts undertaken by the U.S. Attorney’s Office for the Eastern District of California is the Greater Sacramento Hate Crimes Task Force, which was first convened in 1999 following the “Summer of Hate” crimes that included the murder of a gay couple in Shasta County and arson attacks on Jewish synagogues in Sacramento. In April 2021, using the Sacramento-based Hate Crimes Task Force as a model, the U.S. Attorney’s Office launched the Greater Fresno Hate Crimes Task Force to serve the southern part of the district.
Both the Greater Sacramento Hate Crimes Task Force and Greater Fresno Hate Crimes Task Force connect many diverse community leaders and organizations with the federal, state, and local law enforcement agencies that serve them. Represented groups include African American, Asian American, LatinX, LGBTQ+, Jewish, Muslim, Sikh, interfaith groups, and many other communities. As part of this effort, training is also provided to help community members and organizations report hate crimes and to provide crisis response and security training.
On May 26, U.S. Attorney Talbert, leadership from the U.S. Attorney’s Office, law enforcement partners, and community leaders and members met to discuss updates on hate crimes and other issues of concern in the Fresno region. The meeting included a roundtable-style open discussion, giving attendees the opportunity to ask questions, share concerns, and provide an update on relevant projects and opportunities to collaborate. U.S. Attorney Talbert also announced that in response to recent attacks, crisis response and active shooter training will be provided again to houses of worship and other community groups in both Sacramento and Fresno.
“Acts of hate and racism have no place in our community and will not be tolerated,” said U.S. Attorney Talbert. “We want to ensure that all those who call this region their home feel safe regardless of their race, ethnic origin, color, religion, gender, sexual orientation, or disability. Prosecuting hate crimes continues to be a top priority for our office and our law enforcement partners, and our Hate Crimes Task Forces remain active. We commend the community leaders and members of our Sacramento and Fresno Hate Crimes Task Forces for their partnership and commitment to stopping hate crimes. If you see something, say something by contacting law enforcement so that we can do everything we can to help stop hate crime and protect the community.”
If you are a victim of a hate crime and are in immediate danger, call 911 first. Once you are safe, also report the hate crime to the FBI by calling 1-800-CALL-FBI (225-5324) or 916-746-7000. This FBI tip line offers language translation services in many languages spoken in our region, including Spanish, Chinese, Korean, Tagalog, and Vietnamese. When calling, be prepared to provide basic information — the who, what, when, where, and why. Tips can be made anonymously.
U.S. Attorney Dena J. King Announces the Winners of the 6th Annual "Do the Write Thing" Writing Challenge in AshevilleRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Dena J. King announced the winners of the 6th Annual “Do the Write Thing” (DtWT) writing challenge, during an award ceremony held this evening in Asheville.
The Do the Write Thing Challenge is a program of the National Campaign to Stop Violence, which seeks to encourage middle school students to express the impact of violence in their lives through writing, and empower students to become catalysts for positive change by sharing their ideas on ways to reduce youth violence.
“Now more than ever, we must provide children with opportunities to express the impact and trauma violence has caused in their young lives,” said U.S. Attorney King, who chairs the DtWT committee in Asheville. “It is equally important for us adults to really listen, with our ears and our hearts, to the ideas and solutions young people have to offer on how to curb violence in our communities. I want to congratulate the winners, the finalists, and all the students who participated in the writing challenge, and thank the parents, guardians, teachers, and school administrators for supporting and encouraging students to express themselves through the written word. Violence reduction is one of the highest priorities of the Department of Justice, and prevention is an important component of an effective crime reduction strategy. I am looking forward to partnering with our schools and our community to develop pathways for positive change.”
A total of 603 essays written by middle school students attending Asheville Middle School and Buncombe County Schools were submitted for consideration. Of the 12 finalists recognized at this evening’s ceremony, Maggie Agan, an 8th grader with Asheville Middle School, and Bear Farmer, an 8th grader with Valley Springs Middle School, were announced as this year’s overall contest winners and were designated as National DtWT Ambassadors. As National Ambassadors, Maggie and Bear, their parents/guardians and the teachers who submitted their essays will be invited to participate in the “Do the Write Thing Challenge National Recognition Week” in Washington, D.C., in July. During this all-expense-paid trip, Maggie and Bear will have an opportunity to visit national monuments and have their works placed in the Library of Congress.
During this evening’s ceremony, U.S. Attorney King also thanked the Asheville Police Department, the Buncombe County Sheriff’s Office, the Asheville Housing Authority, and the SPARC Foundation for partnering with the U.S. Attorney’s Office to form the DtWT committee. U.S. Attorney King also recognized the teachers, school administrators, counselors, parents, guardians, and caregivers for their dedication in this important endeavor, and thanked them for supporting the students’ efforts and helping them reach their full potential.
For more information on the National Do the Write Thing program please visit http://www.dtwt.org.
Two More New Orleans Area Defendants Sentenced for Conspiring to Stage Automobile Collisions in Order to Defraud Insurance and Trucking CompaniesRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced today that on May 25, 2022 DONIESHA GIBSON (“GIBSON”), age 31, of New Orleans, Louisiana and ERICA LEE THOMPSON (“ERICA LEE”), age 47, of Harvey, Louisiana, were sentenced for Conspiracy to Commit Wire Fraud, in violation of Title 18, United States Code, Section 371, arising out of staged automobile collisions with tractor-trailers occurring in New Orleans.
According to documents filed in federal court, GIBSON and ERICA LEE, along with their co-conspirators and others, beginning in approximately as early as 2015 and continuing through the present, conspired to commit wire fraud in connection with staged accidents, including two that occurred on October 15, 2015, and September 6, 2017. Thus far, the total number of defendants convicted in “Operation Sideswipe” is thirty-seven (37).
GIBSON admitted to being a passenger in a staged accident on October 15, 2015. On that day, her former co-defendant intentionally drove a 2014 Dodge Avenger owned by GIBSON into a Hotard bus while traveling on the I-10 near the flyover of the I-510. GIBSON retained an attorney and thereafter made a claim for damages. The total settlement for the Hotard bus accident was approximately $677,500.00.
ERICA LEE admitted that on September 6, 2017, on the I-10 near the Almonaster exit, she was a passenger in a 2015 RAV4 being driven by their former co-defendant, when he intentionally crashed into a tractor-trailer owned by Averitt Express. ERICA LEE retained counsel and made a claim for damages. The total settlement for the Averitt accident was $30,000.
In total, the victim trucking, bus, and insurance companies paid out approximately $707,500.00 for these two fraudulent claims orchestrated by the defendants and others.
United States District Judge Sarah S. Vance sentenced GIBSON to seventeen (17) months incarceration, followed by a three(3) year term of supervised release, restitution in the amount of $677,500.00, and a $100.00 mandatory special assessment fee. THOMPSON was sentenced to three (3) years probation, restitution in the amount of $121,076.75, 100 hours of community service, and a $100.00 mandatory special assessment fee.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Federal Bureau of Investigation, Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit; Assistant U.S. Attorney Edward J. Rivera; Assistant U.S. Attorney Maria Carboni; and Assistant U.S. Attorney Brandon Long.
Two Honduran citizens suspected of conspiring to transport illegal aliens from Canada into the United States appear in courtRead the Press Release
GREAT FALLS — Two men from Honduras appeared in court today on immigration-related charges after U.S. Border Patrol agents arrested them and detained others following a suspected illegal border crossing from Canada into Montana, near Sweetgrass, U.S. Attorney Leif M. Johnson said.
Jorge Orellana-Banegas, 23, and his uncle, Jose Eugenio Banegas-Torres, 38, both Honduran citizens, had initial appearances on criminal complaints accusing each of illegal transport of aliens and conspiracy to transport aliens.
A criminal complaint is only an accusation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
U.S. Magistrate Judge John T. Johnston presided. Both defendants were detained pending further proceedings.
The government alleged in court documents that at 11:45 p.m. on May 22, a group of eight individuals illegally crossed into the United States from Canada west of Sweetgrass. Border Patrol agents observed the group walk through an area known as “Buckley Coulee” and get into a 2021 Nissan Armada that was parked on Loop Road. An agent drove toward the vehicle to attempt an immigration stop and activated his lights and siren as the Nissan increased speed. The Nissan drove off the road and into Buckley Coulee and then went through a fence before stopping. All of the vehicle’s occupants got out and ran in multiple directions although an agent identified himself and gave commands in English and Spanish to stop. Agents chased the occupants on foot and caught five of the individuals. Agents searched the area for four outstanding individuals but did not find them.
Five of the individuals who were caught were transported to the Sweetgrass Border Patrol Station for processing. Four of the individuals claimed to be citizens of Mexico and one was a Honduran citizen.
The next day, a Border Patrol agent responded to a call of a suspicious person walking and hitch hiking south of Sunburst and located Orellana, who was transported to the Sweetgrass Station.
The government further alleged that an investigation determined Orellana was the driver and that his uncle, Banegas-Torres, was the smuggling guide. In all, six suspects were transported to the Sweetgrass Border Patrol Station for processing. Three other suspects in the crossing have not been located.
The U.S. Attorney’s Office is prosecuting the case, which was investigated by the U.S. Border Patrol.
PACER case reference. 22-mj-37 and 22-mj-38.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
XXX
Two El Salvadoran Men Sentenced for Transporting an Illegal AlienRead the Press Release
Gulfport, Miss. – Two El Salvadoran nationals were sentenced for the federal felony offense of unlawful transportation of an alien within the United States, announced U.S. Attorney Darren J. LaMarca, Special Agent in Charge David Denton of Homeland Security Investigations in New Orleans, and Chief Patrol Agent Jason E. Schneider of the U.S. Border Patrol’s New Orleans Sector.
Jairo Levi Rivera-Ayala, 27, and Herberth Anton Rodriguez-Ayala, 34, were each sentenced to 15 months in federal prison. Both Rivera-Ayala and Rodriguez-Ayala had previously pled guilty to the unlawful transportation of an alien within the U.S.
The defendants were also sentenced to three-year terms of supervised release (TSR) to begin after completion of their prison sentences. Finally, after completion of their sentences, both men are subject to U.S. Department of Homeland Security proceedings to remove them from the United States. While their TSRs would be non-reporting while residing outside the U.S., if either man were to unlawfully return to the U.S. during the three-year TSR, he could receive additional prison time for violating the TSR in addition to separate prosecution for unlawful return after removal
According to court documents, Rivera-Ayala and Rodriguez-Ayala were arrested on September 14, 2021, on Interstate 10 (eastbound) in Harrison County. A Harrison County Sheriff’s Deputy conducted a vehicle stop of an SUV and identified the driver as Jairo Levi Rivera-Ayala. Rivera-Ayala’s brother, Herberth Anton Rodriguez-Ayala, was the front seat passenger, and later was identified as a co-driver. The vehicle also contained ten additional passengers for a total of twelve persons in a vehicle designed, and with seatbelts, for only seven people.
The U.S. Border Patrol responded to the scene and determined that all twelve occupants of the SUV were illegally present in the United States.
The case was investigated by the U.S. Border Patrol, Homeland Security Investigations, and the Harrison County Sheriff’s Department.
Assistant U.S. Attorney Stan Harris was the prosecutor for the case.
Two Defendants Charged with Prison-Based Unemployment Insurance FraudRead the Press Release
ALBANY, NEW YORK – Ivis Jorge, age 44, formerly an inmate at the Riverview Correctional Facility in Ogdensburg, New York, and Pamela Febo, age 38, of Keansburg, New Jersey, were arraigned today on an indictment alleging a fraud scheme to obtain unemployment insurance benefits, including COVID-19 pandemic-related benefits, from programs administered by the New York State Department of Labor (NYSDOL).
The announcement was made by United States Attorney Carla B. Freedman; Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); Anthony J. Annucci, Acting Commissioner of the New York State Department of Corrections and Community Supervision (NYSDOCCS); and NYSDOL Commissioner Roberta Reardon.
The indictment alleges a conspiracy to submit a fraudulent unemployment insurance claim to NYSDOL using Jorge’s personal identifying information. Febo allegedly submitted the application at Jorge’s direction in October 2020 and continued to re-certify Jorge’s benefits eligibility each week for approximately four months knowing that Jorge was incarcerated, and not “able and available to start work immediately.” NYSDOL paid more than $27,000 in benefits on the claim. The charges in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
Jorge, who remains subject to incarceration by New York State, waived a detention hearing and United States Magistrate Judge Daniel J. Stewart ordered him detained in federal custody pending trial. Febo was ordered released.
Both defendants are charged with conspiracy to commit mail fraud and wire fraud, as well as substantive wire fraud counts. The charges carry a maximum term of 20 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The case is being investigated by the FBI, the NYSDOCCS Office of Special Investigations, and the NYSDOL Office of Special Investigations. The case is being prosecuted by Assistant U.S. Attorney John T. Chisholm.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Twelve Defendants Sentenced for Tax Felonies and Immigration Crimes after Major Undercover OperationRead the Press Release
FLORENCE, SOUTH CAROLINA — Twelve Defendants across seven construction-related companies have been sentenced for employment tax fraud felonies and crimes related to hiring unauthorized aliens in the largest criminal Internal Revenue Service (IRS) operation in the history of the Pee Dee region.
The convictions are the first to come from an expansive multi-year undercover investigation in the Myrtle Beach area and throughout the South Carolina coast led by the IRS and Homeland Security Investigations (HSI).
The operation targeted those in the construction industry who used unlicensed check cashers to facilitate under-the-table cash payments to employees, many of whom were unauthorized aliens. The check cashers would also provide certificates of insurance falsely stating that the employees were covered under workers’ compensation insurance. These off-the-book payments defrauded the United States out of applicable employment taxes on the employees. At least $15 million in checks were cashed by these Defendants, resulting in millions of dollars of total losses to the Government. Based on the investigation, at least tens of millions of dollars of tax losses have occurred throughout the South Carolina coast because of similar schemes.
“These Defendants stole money from South Carolina taxpayers, they stole opportunities from those in the construction industry who did the right thing, and they stole safety from the workers who labored on jobsites without insurance,” said U.S. Attorney Corey F. Ellis. “This successful prosecution was only possible because of the tireless and dedicated investigative efforts of IRS and HSI, as well as the work of our local partners. The Defendants in this case, none of whom had criminal records before this investigation, are all now convicted felons. Several face potential deportation, several have lost their homes and face financial ruin, and many will never be able to return to the work they spent their lives pursuing. This case should be a message to businesses and individuals who try to get ahead by breaking the law: it is not worth it because we are watching you and we will prosecute you.”
“Unscrupulous businesses who willfully skirt their tax and legal workforce obligations must be held to account,” said IRS CI Special Agent in Charge Donald “Trey” Eakins. “Employers who deliberately deflect these obligations undermine what is owed to the U.S. Government in payroll taxes and other fees, in addition to creating an unfair economic advantage over law-abiding business owners who play by the rules.”
“Criminals that exploit U.S. labor and tax laws for profit take advantage of not only the workers, but they also steal revenue from the Government, while also creating an unfair business advantage over their competitors,” said Special Agent in Charge Ronnie Martinez, who oversees HSI operations in North Carolina and South Carolina. “Thanks to the great work done by our agents along with our state, local and federal partners we were able to stop this criminal organization from defrauding the Government and hurting the local economy.”
Evidence presented to the court showed that beginning around late 2018, IRS and HSI began jointly investigating the practice of illegal check cashing within the construction industry in the Myrtle Beach area and in other regions along the South Carolina coast. In approximately 2019, various IRS undercover agents embedded themselves in the Myrtle Beach area and recorded multiple interactions with the various defendants’ companies.
Specifically, certain construction companies would use check cashers so that they could hire unauthorized aliens and avoid paying employment taxes on their workers. To facilitate the scheme, a member of the construction company would meet with an unlicensed check casher in places like parking lots for retail stores or coffee shops. The construction company would give the check casher a business check in a certain amount made out to a company the check casher had created, and the check casher would give the construction company representative a bag of cash that would be used to pay the employees. In exchange for their services, the check casher held back a fee of approximately three percent.
To make it appear like the employees had valid insurance on job sites, the check casher would also provide a certificate of workers’ compensation insurance that was not actually valid for any of the construction company’s employees. The parties agreed that the check casher would, on paper, claim to be a subcontractor who provided the employees and provided insurance. However, the parties knew that the check casher provided no other services or employees to the construction company. The check casher only provided a way to hide the true nature of the scheme, to allow the construction company to hire unauthorized aliens, and to pay workers with untaxed cash.
Chief United States District Judge R. Bryan Harwell sentenced each of the Defendants to five years’ probation, with all but one sentenced to home confinement. Further, the Court ordered each Defendant to pay restitution as a result of the tax losses they caused the Government. The Court imposed the probation sentences largely because the Defendants admitted guilt early, agreed to assist authorities, paid collectively nearly a million dollars toward the approximately $3 million dollars owed to the IRS in restitution, and agreed as a condition of probation to make monthly payments – in most cases substantial payments – until the IRS is made whole. The following Defendants from the respective companies were sentenced in the case:
Daniel Lavoie Construction Services (4:21-cr-00585)
- Daniel A. Lavoie, 49, of Conway: Five years’ probation, 18 months home confinement with location monitoring, and $293,402.50 in restitution
- Enrique R. Reyes, 48, of Conway: Five years’ probation, 18 months home confinement with location monitoring, and $293,402.50 in restitution
Duran Masonry (4:21-cr-00584)
- Walter A. Duran, 45, of Myrtle Beach: Five years’ probation, 21 months home confinement with location monitoring, and $976,076.08 in restitution
- Lisa Caulley Sellers, 57, of Myrtle Beach: Five years’ probation, eight months home confinement with location monitoring, and $488,038.04 in restitution
Extreme Siding (4:21-cr-00595)
- Ming Xue Nan, 52, of Myrtle Beach: Five years’ probation, 14 months home confinement with location monitoring, and $173,712.43 in restitution
- Katherine L. Welker, 39, of Myrtle Beach: Five years’ probation, eight months home confinement with location monitoring, and $173,712.43 in restitution
Master Homes Calabash (4:21-cr-00581)
- Josafa P. Neto, 43, of Myrtle Beach: Five years’ probation, 18 months home confinement with location monitoring, and $209,847.07 in restitution
- Marylany Hardman Levino, 36, of Myrtle Beach: Five years’ probation and $209,847.07 in restitution
Metro Concrete Finishers (4:21-cr-00594)
- Saul Prieto, 56, of Myrtle Beach: Five years’ probation, nine months home confinement with location monitoring, and $74,868.50 in restitution
- Martha E. Zarate, a/k/a Martha E. Prieto, 54, of Myrtle Beach: Five years’ probation, nine months home confinement with location monitoring, and $74,868.50 in restitution
Master Homes Design Center (4:21-cr-00582)
- Marcos Caetano De Almeida, 45, of Myrtle Beach: Five years’ probation, 21 months home confinement with location monitoring, and $298,816.52 in restitution
Paint By Numbers (4:21-cr-00583)
- Johanna A. Carpio, 38, of Myrtle Beach: Five years’ probation, 14 months home confinement with location monitoring, and $131,449.69 in restitution
Each of the twelve Defendants previously pleaded guilty to an Information charging them with one felony count of conspiracy to defraud the United States and one misdemeanor count of unlawful employment of aliens.
This case was investigated by IRS and HSI, with assistance from the Myrtle Beach Police Department. Assistant U.S. Attorneys Derek A. Shoemake and Carrie Fisher prosecuted the case.
###
Tulsa Man Sentenced to 12 Years in Federal Prison for CarjackingRead the Press Release
A 21-year-old Tulsa man who took part in a violent but unsuccessful carjacking was sentenced Thursday in federal court, announced U.S. Attorney Clint Johnson.
U.S. District Judge Billy Roy Wilson sentenced Dwight Vernon Leleux to 144 months in federal prison followed by five years of supervised release. The defendant was further ordered to pay the victim $3, 229.09 in restitution for medical costs, to be paid jointly and severally with his co-defendant, Waylon Richard Goss.
“Dwight Leleux will spend 12 years in federal prison for his brazen acts of violence in our community,” said U.S. Attorney Clint Johnson. “This Project Safe Neighborhoods prosecution is the result of close collaborative work between FBI agents, Tulsa police officers, and federal prosecutors who are all committed to reducing violent crime.”
"The FBI and our law enforcement partners are firmly committed to protecting neighborhoods from senseless, unprovoked crimes like Leleux's violent carjacking attempt," said Special Agent in Charge Edward Gray of the FBI Oklahoma City Field Office. "Today's sentence demonstrates that we won't tolerate this sort of criminal behavior here in Tulsa, nor anywhere throughout the state of Oklahoma."
On Dec. 8, 2021, Leleux pleaded guilty to carjacking and carrying, using, and brandishing a firearm during and in relation to a crime of violence.
Leleux admitted that he and another individual used force when they attempted to carjack a Honda CR-V on March 5, 2021.
According to court documents, Leleux and his accomplice, Waylon Richard Goss, requested and received a ride from the victim. While in the back seat, Leleux first told Goss that he planned to rob the victim and showed Goss a .380 caliber semiautomatic pistol he was carrying in his waistband.
Once they stopped at the intended location, Leleux opened the driver’s door, pointed the firearm at the victim, hit him in the head and face with the firearm and his fists, and grabbed him by the throat. He demanded the victim hand over the vehicle, but the victim refused. Leleux and Goss then pulled the victim from the vehicle and continued assaulting him.
The victim was able to fight off his attackers and get back into the CR-V. Leleux then discharged his firearm at the vehicle’s right front tire as the victim drove away. The victim suffered significant cuts and swelling to his face and head and sought medical attention.
Goss, 20, of Tulsa, previously pleaded guilty to carjacking and was sentenced to 33 months in federal prison followed by three years of supervised release.
This case was prosecuted as part of Project Safe Neighborhoods. This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Judge Wilson is a visiting judge from the Eastern District of Arkansas. The FBI and Tulsa Police Department conducted the investigation, and Assistant U.S. Attorney David D. Whipple prosecuted the case.
Trinitarios Gang Member Sentenced to 11 Years in Prison for Trafficking Multiple Guns, Ammunition, Cocaine and FentanylRead the Press Release
BOSTON – A member of the Trinitarios street gang was sentenced today in federal court in Boston in connection with trafficking firearms, ammunition, cocaine and fentanyl in the Greater Lawrence area.
Arismendy Gil-Padilla, a/k/a “Flow”, 32, of Methuen, was sentenced by U.S. District Court Judge Denise J. Casper to 11 years in prison and six years of supervised release. On Feb. 2, 2022, Gil-Padilla pleaded guilty to two counts of being a felon in possession of a firearm, two counts of possession with intent to distribute and distribution of cocaine and one count of possession with intent to distribute and distribution of 40 grams or more of fentanyl and cocaine.
Gil-Padilla was indicted in November 2019 as part of a federal sweep targeting federal and state offenders, including members and associates of the Trinitarios street gang, in the Greater Lawrence area.
The Trinitarios is a street gang originating in the New York area with increased presence in Lawrence and the surrounding communities. According to court documents, many Trinitarios members are involved in a broad range of illegal activities including, but not limited to, firearms and drug trafficking as well as violent crimes undertaken to protect the interests of the gang and its members.
During the investigation, Gil-Padilla was identified as a member of the Trinitarios. On eight separate occasions between April and August 2018, Gil-Padilla sold 16 guns (four of which were reported stolen), ammunition, cocaine and fentanyl to a cooperating witness. Specifically, Gil-Padilla sold a cooperating witness two handguns and ammunition for $1,800 and approximately 55.7 grams of cocaine hydrochloride for another $1,800; 28.1 grams of cocaine hydrochloride for $900 and seven guns, including one that was stolen and one with a large capacity magazine, for $5,340; and 48.7 grams of fentanyl for $1,100 and 55.9 grams of cocaine hydrochloride for $1,800. Gil-Padilla sold a cooperating witness seven additional firearms (three of which were stolen) and ammunition, a laser sight and 97.8 grams of fentanyl and 28 grams of cocaine over five separate occasions between April and May 2018. Gil-Padilla is prohibited from possessing firearms and ammunition due to a 2014 conviction for distributing controlled substances that was punishable by more than one year in prison.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; Essex County District Attorney Jonathan W. Blodgett; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Commissioner Carol Mici of the Massachusetts Department of Corrections; and Lawrence Police Chief Roy P. Vasque made the announcement. Assistant U.S. Attorney Carol Head, Chief of Rollins’ Asset Recovery Unit, prosecuted the case.
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.
Trafficker sent to federal prison for distributing meth out of homeRead the Press Release
CORPUS CHRISTI, Texas – A 40-year-old Kingsville resident has been ordered to federal prison following her conviction of possession with intent to distribute over 120 grams of pure meth, announced U.S. Attorney Jennifer B. Lowery.
Aarika Wilson pleaded guilty Dec. 1, 2021.
Today, U.S. District Judge Drew B. Tipton sentenced Wilson to 120 months imprisonment to be followed by five years of supervised release. In handing down the sentence, the court noted Wilson had possession of a firearm during the commission of the drug trafficking offense.
On July 10, 2021, authorities executed a search warrant at Wilson’s residence in Bishop. At that time, officers located approximately three ounces of meth. Additionally, they found a firearm near the concealed narcotics.
Wilson has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Administration Enforcement conducted the investigation with the assistance of the Nueces County District Attorney’s Office-Criminal Interdiction Unit and Nueces County Precinct 3 Constable’s Office. Assistant U.S. Attorneys Christopher Marin and Reid Manning prosecuted the case.
Three Individuals Plead Guilty to Federal Gun CrimesRead the Press Release
BECKLEY, W.Va. – Three individuals pleaded guilty today to federal charges involving the straw purchases of multiple firearms.
Michelle Grim, 51, of Eccles, and Megan Bickford, 34, of Oak Hill, each pleaded guilty to making false statements in the acquisition of firearms. Bickford’s husband, Brandon Lawson, 32, of Oak Hill, pleaded guilty to transferring a firearm to an out-of-state resident.
According to court documents and statements made in court, Grim and Bickford each admitted to lying on a Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Federal Firearms Transaction Records Form 4473, or ATF Form 4473. In making separate firearms purchases, Grim and Bickford each certified that they were the buyer of the firearm on the form when each knew they were purchasing firearms for someone else.
Grim admitted to lying on an ATF Form 4473 when she purchased a Taurus, G3C, 9mm pistol in Beckley on November 5, 2020, and further admitted to carrying out at least 17 straw purchases. Bickford admitted to lying on an ATF Form 4473 when she purchased a IWI, Model Jericho 941, 9mm pistol in Rainelle on November 2, 2020, and further admitted to carrying out at least 54 straw purchases throughout 2020.
Lawson admitted to transferring a Ruger, Model LC9S, 9mm pistol to the out-of-state resident in Beckley on March 11, 2021. Lawson further admitted to aiding and abetting Bickford in the illegal purchase of firearms during 2020 and 2021.
Bickford and Lawson are scheduled to be sentenced on September 23, 2022, and Grim on September 30, 2022. Each faces up to five years in prison, three years of supervised release and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the ATF for conducting the investigation.
United States District Judge Frank W. Volk presided over the hearings. Assistant United States Attorney Negar M. Kordestani is prosecuting the cases.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 5:22-cr-78, 5:22-cr-79, and 5:22-cr-80.
###
Three Indicted in Auglaize County DeathRead the Press Release
First Assistant U.S. Attorney Michelle M. Baeppler announced that a federal grand jury returned a six-count indictment charging Amanda Hovanec, Anthony Theodorou and Anita Green with participating in a conspiracy that led to the death of an individual known to the Grand Jury as T.H. on or about April 24, 2022, in Auglaize County, Ohio.
Defendants Hovanec and Theodorou are charged with conspiracy to import a controlled substance, importation of a controlled substance, conspiracy to possess with intent to distribute a controlled substance and distribution of a controlled substance. Each of the five counts in the indictment against Defendants Hovanec and Theodorou carries a sentencing penalty enhancement due to the death of an individual as a result of the use of the controlled substance. Defendant Green is charged with one count of accessory after the fact.
According to the indictment, in or around February 2022 and continuing through March 2022, Defendants Hovanec and Theodorou conspired together to import Etorphine (M99), a Schedule I or II controlled substance, into the United States. The indictment states that on April 24, 2022, as a result of the importation and distribution of the M99 controlled substance, Hovanec and Theodorou allegedly caused the death of T.H.
The indictment further alleges that on or about April 24, 2022, continuing through April 28, 2022, Defendant Green, knowing that Defendants Hovanec and Theodorou had allegedly caused the death of T.H. by means of distribution of a controlled substance, assisted the two in order to hinder and prevent their apprehension, trial and punishment.
An indictment is only a charge and is not evidence of guilt. The defendants are entitled to a fair trial in which it is the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendants’ sentence will be determined by the court after a review of factors unique to this case, including prior criminal record, if any, role in the offenses, and the characteristics of the violation.
In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
This case was investigated by the Toledo FBI, Auglaize County Sheriff’s Office, Northwest Ohio Safe Streets Task Force, Ohio BCI, Wapakoneta Police Department, St. Mary’s Police Department and the Grand Lake Task Force. This case is being prosecuted by Assistant U.S. Attorneys Michael J. Freeman and Alissa M. Sterling.
Tax Preparer, Husband Sentenced for Defrauding IRS Out of $3.3 MillionRead the Press Release
The owners of a Duncanville tax preparation business were sentenced to a combined five and a half years in federal prison for defrauding the IRS out of more than $3.3 million, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Valencia Janee Mack, 40, and her former husband, Rodney Lamond Bowman, 47, pleaded guilty in fall 2021 to conspiracy to defraud the United States. Mr. Bowman was sentenced on May 19 by U.S. District Judge Jane J. Boyle to 36 months imprisonment; Ms. Mack was sentenced Thursday to 30 months imprisonment. The pair was ordered jointly and severally liable for $210,442 in restitution.
“Return preparer fraud is like a contagious disease: It affects not only the preparer, but their own clients and the tax-paying public,” said Christopher J. Altemus, Jr., Special Agent in Charge, IRS Criminal Investigation, Dallas Field Office. “Ms. Mack and Mr. Bowman wreaked havoc on our nation’s tax system and, as a result, will serve jail time. I hope this outcome sends a strong message that tampering with the integrity of our tax system will result in jail time."
According to court filings, from January 2015 through April 2019, Ms. Mack owned and operated Phase US Tax Services, where she and Mr. Bowman knowingly prepared and filed fraudulent client tax returns with the IRS.
The false tax returns reported fictitious Schedule C losses and Schedule A itemized deductions, intended to cause the IRS to pay fraudulent refunds.
The false Schedule Cs included purported losses from travel businesses Phase 4 Global (a real business based in Decatur, Alabama) or PlanNet (a real business based in Atlanta, Georgia), to reduce clients’ total income and entitle them to larger refunds from the IRS.
The clients were not legitimate employees, contractors, or franchisees of Phase 4 Global or PlanNet. Moreover, neither of these entities knew that Mack falsely claimed business expenses associated their companies on client tax returns.
Mr. Bowman and Ms. Mack hid the false Schedule C losses that were included on client tax returns by, among other things, omitting relevant pages in the paper copy of the tax returns they provided to clients.
Ms. Mack and Mr. Bowman provided fraudulent documentation clients who were being audited by the IRS, including fake mileage logs and other documents that appeared to substantiate the false business expenses in the fraudulent Schedule Cs. The pair instructed their clients to send these fraudulent documents to the IRS.
Ms. Mack further admitted that she fraudulently filed her 2014 personal tax return, failing to report any income or expenses from Phase US Tax Services and that she failed to file her personal tax return for tax years 2015, 2016, 2017, and 2018, despite earning income from Phase US Tax Services.
The couple shared in the benefits of the tax fraud by splitting the preparation fees deposited into the Phase US Tax Services business account.
The IRS Criminal Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Douglas Brasher prosecuted the case.
Taos man appears in court facing charges arising from domestic violence in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Richard Mascarenas, 36, of Taos, New Mexico, and an enrolled member of the Pueblo of Taos, made an initial appearance in federal court on May 25 facing charges of kidnapping, aggravated sexual abuse, assault resulting in serious bodily injury, and strangulation of an intimate partner. Mascarenas will remain in custody pending a preliminary and detention hearing scheduled for May 27.
The alleged offenses occurred on the Taos Pueblo.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Mascarenas faces up to 10 years in prison for assault resulting in serious bodily injury and strangulation of an intimate partner and up to life in prison for kidnapping and aggravated sexual abuse.
The Santa Fe Resident Agency of the FBI Albuquerque Field Office and the Taos Pueblo Department of Public Safety investigated this case. Assistant United States Attorney Novaline D. Wilson is prosecuting the case.
# # #
Suburban Houston man pleads guilty to transporting child inside plastic binRead the Press Release
CORPUS CHRISTI, Texas – A 22-year-old Stafford resident has admitted to illegally transporting a minor non-U.S. citizen within the country, announced U.S. Attorney Jennifer B. Lowery.
Fernando Jaramillo admitted he knew the minor was illegally present in the United States.
On March 9, Jaramillo arrived at the checkpoint near Sarita. At initial inspection, authorities noticed a plastic bin filled with clothes laying on the back seat of Jaramillo’s vehicle. A K-9 alerted authorities, after which they conducted a search of the vehicle.
At that time, the clothes in the plastic bin jolted upwards. Authorities opened the plastic bin and discovered a small female child who they later determined was unlawfully present in the United States.
The investigation revealed the minor was traveling with her mother within the United States. Earlier that day, unknown individuals had taken them to a store and separated them. The minor did not know Jaramillo, but he put her inside the plastic bin and told her she would be in there for about 45 minutes. He also instructed her to not make any noise. She remained inside of the bin until law enforcement found her.
U.S. District Judge Nelva G. Ramos will impose sentencing Aug. 23. At that time, Jaramillo faces up to five years in federal prison and a possible $250,000 maximum fine.
Jaramillo was permitted to remain on bond pending that hearing.
Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Molly K. Smith is prosecuting the case.
St. Paul Man Pleads Guilty in Illegal Gun Buying ConspiracyRead the Press Release
ST. PAUL, Minn. – A St. Paul man has pleaded guilty for his role in a firearms straw purchasing conspiracy, announced United States Attorney Andrew M. Luger.
According to court documents, between May 11, 2021, and October 17, 2021, Gabriel Lee Young-Duncan, 27, participated in a conspiracy to illegally purchase multiple firearms, one of which was used in the Seventh Street Truck Park Bar shooting on October 10, 2021. Young-Duncan and his co-conspirator agreed to work together to illegally acquire firearms by making false statements to Federal Firearms Licensees (FFLs) throughout the Twin Cities. Specifically, the co-conspirator would purchase the firearms, stating on the ATF Form 4473 that the co-conspirator was the actual buyer, and then transfer the firearms to Young-Duncan, who would keep the firearms, or further transfer them to third parties.
According to court documents, Young-Duncan and his co-conspirator worked together to illegally obtain at least 25 firearms, including four Glock 9mm semiautomatic pistols and two Mossberg 9mm semiautomatic pistols.
Young-Duncan pleaded guilty yesterday to one count of conspiracy to make false a statement in the purchase of a firearm, before U.S. District Court Judge Kate M. Menendez. No sentencing date has been set.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the St. Paul Police Department.
Assistant U.S. Attorney Thomas Calhoun-Lopez is prosecuting the case.
###
Southern California Woman Indicted for Knife Assault on a Camper in Sequoia National ParkRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Sarah E. Meenahan, 28, of Manhattan Beach, charging her with assault with a dangerous weapon, unauthorized use of a motor vehicle, and failure to obey a lawful command, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on May 16, 2022, Meenahan entered a camper van in Sequoia National Park and attempted to stab the occupant. The occupant was able to subdue Meenahan before she could stab him, and Meenahan fled the camper van. Meenahan was driving a vehicle that had been taken from a repair shop – neither the repair shop nor the owner gave anyone permission to drive the vehicle. When National Park Service rangers encountered her and tried to arrest her, she refused to comply with commands, and was only taken into custody after rangers deployed a taser.
This case is the product of an investigation by the National Park Service. Assistant U.S. Attorneys Kimberly A. Sanchez and Michael G. Tierney are prosecuting the case.
If convicted of assault with a dangerous weapon, Meenahan faces a maximum statutory penalty of 10 years in prison and a fine of up to $250,000. If convicted of unauthorized use of a motor vehicle, Meenahan faces a maximum statutory penalty of a year in jail and a fine of up to $5,000. If convicted of failure to obey a lawful command, Meenahan faces a maximum statutory penalty of six months in jail or a fine of up to $5,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
South Holland, Illinois, Man Sentenced to 30 months in Prison for Possession of a Firearm by a FelonRead the Press Release
SPRINGFIELD, Ill. – A South Holland, Illinois, man, Alfredo Swain, 48, of the 15000 block of Elm Street, was sentenced on May 23, 2022, by U.S. District Judge Sue E. Myerscough, to 30 months’ imprisonment, to be followed by three years of supervised release, for possession of a firearm by a felon.
At the sentencing hearing, the government presented evidence that Swain was riding as the tail car behind a group of motorcyclists. After a car tried to pass the group unsuccessfully, Swain pointed a firearm with an extended magazine at the other car alarming the passengers. A passenger in the car alerted authorities. Troopers from the Illinois State Police District 9 patrol division responded and were able to recover a loaded semi-automatic firearm with an extended magazine from Swain’s car.
Swain was indicted on the federal charge of felon in possession of a firearm on May 5, 2021, and has been detained since his first court appearance. He pleaded guilty to the charge on January 18, 2022.
The statutory penalties for possession of a firearm by a felon are up to 10 years in prison, up to three years of supervised release, and up to a $250,000 fine.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Illinois State Police investigated the case. Assistant United States Attorney Sarah E. Seberger represented the government in the prosecution.
The case against Swain was brought as part of the Department of Justice’s Project Safe Neighborhoods (PSN) initiative. The Department’s renewed commitment to Project Safe Neighborhoods establishes four fundamental principles to guide efforts to reduce violent crime:
1) build trust and legitimacy within communities; 2) invest in community-based prevention and intervention programs; 3) target enforcement and priorities to focus resources on identifying, investigating, and prosecuting the most significant drivers of gun violence and other violent crime; and, 4) measure results with the goal to reduce the level of violence in our communities and not to increase the number of arrests and prosecutions as if they were ends in themselves.
South Bend Man Sentenced to 108 Months in PrisonRead the Press Release
SOUTH BEND – Kelvin Franklin, 39 years old, of South Bend, Indiana, was sentenced by United States District Court Chief Judge Jon E. DeGuilio on his plea of guilty to conspiracy to distribute methamphetamine, announced United States Attorney Clifford D. Johnson.
Franklin was sentenced to 108 months in prison followed by 3 years of supervised release.
According to documents in the case, in May of 2019, Franklin agreed with others to obtain methamphetamine from California. Franklin flew out to California with cash and was present when 15 kilograms of methamphetamine were delivered. The methamphetamine was subsequently loaded into a car that was stopped by law enforcement while it was enroute to the Midwest.
This case was investigated by the Drug Enforcement Administration and Federal Bureau of Investigation with the assistance of the Mishawaka Police Department, St. Joseph County Drug Investigations Unit, Indiana State Police, and Missouri State Police. This case was prosecuted by Assistant United States Attorney Joel Gabrielse.
South Bay Resident Charged with Smuggling and Exporting American Aviation Technology to Beijing UniversityRead the Press Release
SAN FRANCISCO – The United States Attorney’s Office today unsealed a criminal complaint charging Jonathan Yet Wing Soong with smuggling and violating export control laws by allegedly secretly funneling sensitive aeronautics software to a Beijing university, announced United States Attorney Stephanie M. Hinds; Federal Bureau of Investigation Special Agent in Charge Sean Ragan; Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement (BIS), Special Agent in Charge John D. Masters; Defense Criminal Investigative Service (DCIS) Special Agent in Charge Bryan D. Denny. Soong made his initial appearance to face the charges in federal court earlier today before U.S. Magistrate Judge Joseph C. Spero.
The allegations against Soong, 34, of San Jose, were set out in a complaint filed May 23, 2022, and unsealed earlier today. According to the complaint, Soong was employed by Universities Space Research Association (USRA) between April 2016 and September 2020 as a program administrator. USRA is a nonprofit corporation contracted by the National Aeronautics and Space Administration (NASA) to, among other things, distribute domestically and internationally sensitive aeronautics-related software developed through the Army’s Software Transfer Agreement (STA) program. As USRA’s STA program administrator, Soong was responsible for overseeing certain software license sales, conducting export compliance screening of customers, generating software licenses, and, on occasion, physically exporting software.
Soong is alleged to have been trained in and been aware of export compliance rules which, among other things, restrict sales and exports to certain entities. As relevant to this case, the complaint describes rules that restrict sales of certain technology to entities on the U.S. Department of Commerce Entity List (Entity List), a list with associated regulations that are maintained by the Department of Commerce pursuant to federal statutory and presidential directive. The Entity List and associated regulations prohibit export without a license of certain technology with commercial and potential military applications to entities and individuals whose activities have been found to be contrary to U.S. national security or foreign policy interests. The complaint alleges Soong unlawfully and without a license exported and facilitated the sale and transfer of software to an entity on the Entity List—Beijing University of Aeronautics and Astronautics (BUAA), which is also known as Beihang University. According to the complaint, Beihang University was added to the Entity List due to the University’s involvement in People’s Republic of China military rocket systems and unmanned air vehicle systems. Given its inclusion on the Entity List, BUAA is prohibited from receiving certain items without a license. The complaint alleges Soong used an intermediary in hopes that the illegal transfer would not be detected.
At issue in the case is a software package that is marketed for the development of unmanned aircraft. The Army flight-control software packages, referred to in the complaint as CIFER, performed as a tool to allow a user to develop a dynamic model of an aircraft based on collective flight test data. The package could be used to analyze and design aircraft control systems. According to the complaint, in April 2017, Soong became aware that BUAA was on the Entity List and nonetheless arranged to sell and transfer the CIFER software package to BUAA. Soong ultimately exported directly to Beihang University in July 2018. The complaint alleges that Soong arranged to sell the CIFER software package to Beijing Rainbow Technical Development Ltd., as an intermediary for the purchase to disguise BUAA’s involvement, as Soong knew that BUAA could not receive this technology without a license from the Department of Commerce. The complaint describes how Soong arranged for the intermediary to receive the CIFER program package, and ultimately Soong arranged to have the passcodes for the CIFER software package forwarded to Beihang University with payment coming from Beijing Rainbow.
A criminal complaint merely alleges that crimes have been committed. All defendants, including Soong, are presumed innocent until proven guilty beyond a reasonable doubt.
Soong is charged with violating International Emergency Economic Powers Act (IEEPA), in violation of 50 U.S.C. §§ 1701–1707, and smuggling, in violation of 18 U.S.C. § 554. The IEEPA violation carries a statutory maximum penalty of 20 years in prison and a $1,000,000 fine. The smuggling count carries a statutory maximum penalty of 10 years in prison and a $250,000 fine. In addition, as part of any sentence handed down after conviction, the court may order restitution, and up to three years of supervised release. However, any sentence after conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Soong’s next scheduled appearance is set for June 2, 2022, before U.S. Magistrate Judge the Honorable Laurel Beeler.
Assistant United States Attorney Barbara Valliere of the United States Attorney’s Office’s Special Prosecutions Section is prosecuting the case with the assistance of Maddi Wachs and Kathy Tat. The prosecution is the result of an investigation by the BIS, DCIS, and the FBI with assistance from the NASA Office of Inspector General; U.S. Army Criminal Investigation Division; the U.S. Army Counterintelligence; and the Department of Homeland Security, Homeland Security Investigations.
Solano County Hells Angels Motorcycle Club Members Indicted for Illegal Possession of FirearmsRead the Press Release
SACRAMENTO, Calif. — An investigation into a brutal beating at the Vallejo chapter clubhouse of the Hells Angels Motorcycle Club has led to two members of the club being charged for illegal firearm possession, U.S. Attorney Phillip A. Talbert announced.
A federal grand jury returned a one-count indictment today against Dennis Killough Jr., 51, of Vacaville, charging him with being a felon in possession of two different firearms. And in a separate case, Jaime Alvarez, 51, of Vallejo, was charged today with being a felon in possession of a firearm.
According to court documents, in October 2021, two different victims—both of whom were members of a different motorcycle club that is considered a “puppet” (or subordinate) club of the Hells Angels—were beaten by Killough, Alvarez, and other club members based on perceived infractions of the Hells Angels’ rules.
According to court documents, on Dec. 8, 2021, law enforcement searched Killough’s home and found two firearms, including a Taurus G2C 9 mm pistol with an obliterated serial number and a Taurus PT 745 Pro handgun. Killough has several prior felony convictions—including previous firearm convictions—which prohibit him from possessing any firearms.
According to court documents, on Dec. 8, 2021, a search warrant executed at Alvarez’s home found several firearms, including a Glock 27 .40 SW caliber handgun. Alvarez has several prior felony convictions—including a prior conviction for possessing a dangerous weapon—which prohibit him from possessing any firearms.
These cases are the product of investigations by the Solano County District Attorney’s Office, the Solano County Sheriff’s Office, the Vacaville Police Department, the Vallejo Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Aaron D. Pennekamp and Jason Hitt are prosecuting the case.
If convicted, Killough and Alvarez face a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Sixth Street Drugs Agrees to Pay $1.5 Million to Resolve Allegations That It Filled Illegitimate Controlled Substances PrescriptionsRead the Press Release
The pharmacy will also be subject to a three-year Memorandum of Agreement with the Drug Enforcement Administration
GRAND RAPIDS – Sixth Street Drugs, Inc., a Munson Healthcare subsidiary located in Traverse City, Michigan, has agreed to pay $1.5 million to the United States and enter into a three-year Memorandum of Agreement with the Drug Enforcement Administration (DEA) to resolve allegations that it violated the Controlled Substances Act (CSA) by filling numerous prescriptions for controlled substances despite red flags that the prescriptions were not valid.
Under the CSA and DEA regulations, for a prescription to be effective, it must be issued for a legitimate medical purpose by an individual practitioner acting in the usual course of his professional practice. Pharmacies and pharmacists have a responsibility not to fill an invalid prescription and are prohibited from dispensing pursuant to an invalid prescription. When the circumstances around a prescription raise a red flag—a reasonable suspicion that the prescription is not valid—the pharmacist must conduct a further inquiry to ensure the prescription is valid. The CSA provides significant penalties, currently up to $72,683.00 for each such violation.
The government began investigating Sixth Street Drugs based on information that it was an outlier in a number of categories relating to schedule II controlled substances, including its quantities of oxycodone, hydrocodone, morphine, and amphetamine. Following an administrative inspection in 2019, DEA alleged that Sixth Street Drugs failed to identify and resolve numerous red flags before filling prescriptions. Among other things, DEA contended that Sixth Street Drugs:
- filled hundreds of prescriptions that resulted in patients receiving dangerous drug cocktails (such as opioids with benzodiazepines, muscle relaxants, and/or stimulants);
- filled prescriptions that resulted in patients receiving extraordinarily high opioid doses that far exceeded federal dosage guidance;
- filled prescriptions for hundreds of individuals who were traveling long distances to receive prescriptions and to fill them at Sixth Street Drugs;
- filled prescriptions for many patients who had prescriptions from numerous prescribers and used multiple pharmacies (physician-shopper and pharmacy-shopper patients);
- filled prescriptions for patients of several providers who issued suspicious prescriptions and have since been sanctioned by state and federal authorities;
- provided early refills of opioid prescriptions on hundreds of occasions; and
- lacked appropriate written policies and procedures relating to dispensing controlled substances.
As part of the settlement, Sixth Street Drugs entered into a three-year Memorandum of Agreement with DEA that, among other things, prescribes Sixth Street Drugs’ drug-handling responsibilities, mandates external controlled substance audits, and requires Sixth Street Drugs to institute a broad- based educational program focused on preventing drug diversion. In reaching this settlement, the government recognized the substantial steps Munson Healthcare took in response to DEA’s investigation to address problems relating to Sixth Street Drugs’ handling of controlled substances.
“Prescription drug abuse and diversion—and the overprescribing that often enables them—have caused tremendous damage throughout the Western District of Michigan,” said U.S. Attorney Mark Totten. “My office will continue to investigate and hold accountable those who fail to live up to their legal responsibilities and contribute to this crisis, including pharmacies and physicians.”
Kent R. Kleinschmidt, DEA Acting Special Agent in Charge for the Detroit Field Division, stated, “careless behavior and negligence allow for substances to be diverted and sold on the black market with no measure of accountability. This is the type of reckless behavior that fuels the opioid epidemic gripping the nation. DEA is committed to pursuing anyone who doesn’t live up to their obligations in safeguarding controlled substances.”
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Western District of Michigan and the DEA. The case was investigated by the DEA Grand Rapids District Office Tactical Diversion Squad. The United States was represented by Assistant U.S. Attorney Ryan Cobb.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
###
Silver Spring Man Sentenced to 17 Years in Federal Prison for Soliciting and Paying for the Production of Child PornographyRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel today sentenced Patrick Lawrence Wood, age 35, of Silver Spring, Maryland, to 17 years in federal prison, followed by lifetime supervised release for conspiracy to produce child pornography. Wood admitted that he paid co-conspirators in the Philippines to procure images and videos of children under the age of 12 engaged in sexually explicit conduct requested by Wood. Judge Hazel ordered that, upon his release from prison, Wood will be required to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge Selwyn Smith of Homeland Security Investigations (HSI) Baltimore; and Chief Marcus Jones of the Montgomery County Police Department.
According to his guilty plea, Wood used a social media platform to solicit the production of child pornography and used various digital money transfer services to send payment to co-conspirators in exchange for images and videos depicting children engaged in sexually explicit conduct, as requested by Wood.
As detailed in Wood’s plea agreement, the social media platform sent a Cybertipline Report to the National Center for Missing and Exploited Children, about a user who had requested, and subsequently paid, another user to create sexually explicit images of a prepubescent male and female and send them via the platform’s private message function. Law enforcement identified Patrick Wood as the user and executed a search warrant at Wood’s residence, seizing a laptop computer, desktop computer, two cellular phones and two tablets.
A search of Wood’s social media accounts and the seized electronic devices revealed that Wood communicated with three co-conspirators in the Philippines to procure images and videos of minors engaged in sexual conduct. Those communications occurred over various digital platforms. Wood routinely paid a co-conspirator for access to videos and images of minors engaged in sexually explicit conduct, including via live feeds involving a child engaged in the specific sexual conduct requested by and paid for by Wood. Images and videos of at least five minor male and female victims, all under the age of 12, engaging in sexual conduct were electronically sent during online chat sessions from co-conspirators in the Philippines to Wood, at Wood’s request, and in exchange for payment by Wood. During the four years prior to Wood’s arrest, he paid more than $40,000 to co-conspirators in the Philippines in exchange for the production of child pornography.
In addition, the investigation revealed that sexually explicit images and videos of at least eight minor male victims 14 to 17 years old were electronically sent to Wood at his request from locations in the United States during online chat sessions. At least one of those minor victims was also paid by Wood, in the form of gift cards and new clothes, for producing sexually explicit images requested by Wood.
In addition to the images and videos of child pornography identified on Wood’s social media and cloud-based storage accounts, the forensic examination of the devices seized from Wood’s home revealed over 150 images and five videos of child pornography. The forensic analysis also showed screenshots of a ticket confirmation for Wood to travel to Manila, Philippines for two weeks, but investigators confirmed that Wood did not ultimately travel there and cancelled the ticket.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Erek L. Barron commended HSI and the Montgomery County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Timothy F. Hagan, who prosecuted the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
# # #
Schenectady Father and Son Indicted for Cocaine ConspiracyRead the Press Release
ALBANY, NEW YORK – Jeffrey C. Civitello Sr., age 50, and Jeffrey C. Civitello Jr., age 22, both of Schenectady, New York, have been indicted for trafficking kilograms of cocaine.
The announcement was made by United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division.
The Civitellos are charged with conspiring with other men, including two New Jersey men indicted last year, to traffic more than 5 kilograms of cocaine to Schenectady in March and April 2021. The Civitellos are also each charged with possessing and intending to distribute more than 500 grams of cocaine on March 31, 2021, and with attempting to possess with intent to distribute more than 5 kilograms of cocaine on April 2, 2021. The charges in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
If convicted on all charges, each man faces at least 10 years and up to life in prison, as well as at least 5 years of post-imprisonment supervised release. The indictment also seeks a money judgment against the Civitellos in the amount of $600,000. 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.
Jeffrey Civitello Sr. was arraigned today before United States Magistrate Judge Daniel J. Stewart; a detention hearing is scheduled for June 3, 2022.
Jeffrey Civitello Jr. will be arraigned at a later date. He has been in custody since October 21, 2021, when he was arrested by the DEA in Schenectady on unrelated charges of possessing firearms in furtherance of a drug trafficking crime, and possessing and intending to distribute marijuana. Those charges are also merely accusations. The defendant is presumed innocent unless and until proven guilty.
This case is being investigated by the DEA’s Capital District Drug Enforcement Task Force, which includes DEA Special Agents and investigators from state and local police agencies, including the Saratoga Springs Police Department, the Saratoga County Sheriff’s Office, the Washington County Sheriff’s Office, the Columbia County Sheriff’s Office, and the New York State Police. The case is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Repeat Offender Sentenced to Prison Following Third Drug Related ConvictionRead the Press Release
A man with a prior federal drug conviction was sentenced May 25, 2022 to five years in federal prison.
Gary Alan Happel, age 60, from Ladora, Iowa, received the prison term after an October 15, 2021 guilty plea to possession with intent to distribute methamphetamine.
At the guilty plea, Happel admitted that, in January 2021, he was in possession of methamphetamine that he intended to distribute to others. Happel was driving a vehicle and was stopped for speeding. Officers recovered over a half pound of methamphetamine on his person. Happel has a prior federal conviction from 1997 for conspiring to manufacture, distribute, and possess with intent to distribute methamphetamine and a conviction in 2010 for possession with intent to distribute a controlled substance in Utah.
Happel was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Happel was sentenced to 60 months’ imprisonment and fined $20,000. He must also serve a ten-year term of supervised release after the prison term. There is no parole in the federal system. Happel is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated by the Iowa Division of Narcotics Enforcement, the Iowa State Patrol, and the Drug Enforcement Administration.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-cr-37.
Follow us on Twitter @USAO_NDIA.
Rensselaer County Man Pleads Guilty to Drug and Firearm ChargesRead the Press Release
ALBANY, NEW YORK – Justin Micheli, age 34, of Schodack, New York, pled guilty today to possessing a firearm in furtherance of a drug trafficking crime.
The announcement was made by United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division.
As part of his guilty plea, Micheli admitted that on March 16, 2021, he possessed cocaine base, marijuana and assorted pills with the intent to distribute them. He also possessed a loaded semi-automatic pistol made from component parts without a serial number, also known as a “ghost gun,” to protect his drugs and drug proceeds. Micheli also admitted to posting videos of his firearm on social media in furtherance of his drug trafficking activities.
On May 9, 2022, Micheli pled guilty to possessing ammunition as a convicted felon and to possession with intent to distribute a controlled substance.
Sentencing is scheduled for October 14, 2022, before United States District Judge Mae A. D’Agostino in Albany, at which time Micheli faces at least 10 years and up to life in prison, a fine of up to $5 million, and a term of post-imprisonment supervised release of at least 4 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statutes the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the DEA and is being prosecuted by Assistant United States Attorney Alexander Wentworth-Ping. The case was prosecuted to indictment by Assistant United States Attorney Ashlyn Miranda.
Registered Nurse Pleads Guilty to Tampering with Patients’ Pain MedicationRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Mark Totten announced today that Alison Renee Marshall, 45, of Sturgis, Michigan, pled guilty in the United States District Court in Lansing, Michigan, to a charge of tampering with a consumer product, specifically vials of liquid fentanyl at the hospital where she worked.
According to court documents, Marshall, a registered nurse who previously was employed in the interventional radiology unit of a hospital in Kalamazoo, Michigan, removed liquid fentanyl and replaced it with saline solution in July and August of 2020. On August 20, 2020, another nurse working in the interventional radiology unit recognized that a 72-year-old cancer patient undergoing a percutaneous chest tube placement procedure did not receive the expected pain relief from the liquid fentanyl that was administered at the outset of the procedure. A subsequent investigation by the hospital’s staff pharmacist revealed that several vials of fentanyl in the unit’s automated medication dispensing machines had caps that appeared glued back on the vials. Hospital records revealed that Marshall checked out doses of fentanyl for patients 14 times from in July and August of 2020 but then canceled the transactions and purportedly returned the fentanyl back into the interventional radiology unit’s inventory. FDA laboratory examination of the vials with the glued caps revealed needle punctures consistent with tampering, and laboratory testing demonstrated that the vials were substantially diluted, containing 3% or less of the amount of reported fentanyl.
On August 24, 2020, Marshall met with hospital representatives and admitted diverting fentanyl for her own use by removing vials of injectable fentanyl from the medication dispensing machines, extracting the fentanyl using syringes, replacing the medication with saline, gluing the plastic tampering caps back onto the vials, and returning the vials back into the unit’s medication dispensing machines. At a plea hearing before the United States District Judge Hala Y. Jarbou, Marshall acknowledged that by removing the fentanyl, refilling the vials with saline solution, and returning the vials to the hospital inventory, she acted with reckless disregard that a patient would be placed in danger of death or bodily injury and exhibited extreme indifference to such risk.
U.S. Attorney Mark Totten stated, “Patients entering a hospital must have confidence they will receive the treatment they are promised.” He continued, “Marshall violated that trust and exposed vulnerable patients to possible infection and unnecessary pain and suffering. Today’s guilty plea brings us one step closer to accountability and sends a message to other would-be offenders that we will not sit back when they violate patients’ trust.”
“Patients rely on the knowledge that they will receive FDA-approved medications to manage their pain,” said Special Agent in Charge Lynda M. Burdelik, FDA Office of Criminal Investigations, Chicago Field Office. “We will continue to pursue and bring to justice healthcare professionals who jeopardize patients’ health by tampering with their pain medications.”
Marshall’s sentencing is scheduled for September 21, 2022. Marshall faces a maximum of 10 years in federal prison. The Court will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by the U.S. Food and Drug Administration, Office of Criminal Investigations.
###
Queens Man Sentenced to 51 Months in Prison for Defrauding Pharmaceutical ManufacturerRead the Press Release
Earlier today, in federal court in Central Islip, Arkadiy Khaimov was sentenced by United States District Judge Joan M. Azrack to 51 months in prison for defrauding a pharmaceutical manufacturer of approximately $7.2 million by submitting fraudulent claims under the manufacturer’s Co-pay Coupon Program. As part of the sentence, Khaimov was ordered to forfeit approximately $489,000 as proceeds involved in the fraudulent scheme and to pay restitution of approximately $7.2 million. In August 2020, Khaimov pleaded guilty to conspiracy to commit mail and wire fraud.
Breon Peace, United States Attorney for the Eastern District of New York, announced the sentencing.
“Khaimov selfishly stole from a program that was intended to reduce the cost of a medication to uninsured individuals and those in need of financial assistance, who were suffering from a serious and potentially life-threatening disease,” stated United States Attorney Peace. “Today’s sentence sends a message that incarceration and significant financial penalties are the criminal justice system’s remedies for those who would abuse such beneficial programs to benefit themselves.”
Mr. Peace expressed his appreciation to the Federal Bureau of Investigation, New York Field Office, the United States Postal Inspection Service and Internal Revenue Service-Criminal Investigation for their exemplary work on the case.
The pharmaceutical manufacturer, referred to in the indictment as “John Doe Company 1,” established the Co-pay Coupon Program to reimburse pharmacies for dispensing a prescription medication, which was described as a “priceless breakthrough” and potential “cure” for a serious and possibly deadly disease, to the uninsured and those in need of financial assistance. Between February 2017 and July 2018, Khaimov and his co-conspirators used the computers of pharmacies they operated in Queens and Manhattan to submit claims for approximately $7.2 million in reimbursements under the Co-pay Coupon Program for medications that the pharmacies never actually dispensed. In some cases, Khaimov and his co-conspirators fraudulently used the credentials of a Nassau County-based physician to submit the false claims.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Bradley T. King, Madeline O’Connor and Department of Justice Trial Attorney Andrew Estes are in charge of the prosecution.
The Defendant: ARKADIY KHAIMOV (also known as “Alex”)
Age: 39
Forest Hills, QueensE.D.N.Y. Docket No. 20-CR-267 (JMA)
Previously Convicted Sex Offender Sentenced to 15 Years in Federal Prison for Receipt of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Paul Anthony Philip III, age 38, of Millersville, Maryland to 15 years in federal prison, followed by a lifetime of supervised release, for receipt of child pornography. As part of his sentence, the Court has ordered Philip to pay $9,000 in restitution. Judge Blake also ordered that, upon his release from prison, Philip must continue to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (“SORNA”).
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement, Philip was previously convicted of possession of child pornography in the United States District Court for the District of Maryland in 2015. As a result of his conviction, Philip was sentenced to 48 months imprisonment followed by 15 years of supervised release. The conditions of Philip’s supervised release prohibited him from using any computers or internet-capable devices without the approval of the United States Probation and Pretrial Services. He was also forbidden from installing activity monitoring software or hardware.
After Philip’s release from federal custody in January 2019, Philp signed a monitoring agreement in which he agreed to waive any expectations of privacy from the probation officer and the computer monitoring software. Further, Philip agreed that he would not view, subscribe to, download, or transmit any content in any medium, in violation of state or federal laws or in violation of his conditions of his supervised release. He was then given a prepaid phone that was approved by the U.S. probation officer that contained monitoring software.
On five separate instances in 2021, Philip failed to report for sex offender treatment including mental health and substance abuse therapy sessions, as required by the conditions of his supervised release. Further, Philip’s probation officer (USPO) contacted the manger of his sober living residence and was informed that Philip did not comply with the rules and polices of his sober living house and often utilized smart devices. Upon inspection of Philip’s bedroom, the USPO discovered an unauthorized tablet under Philip’s pillow. The tablet was then confiscated by the USPO.
On April 12, 2021, the USPO asked Philip if there was any child pornography on the unauthorized tablet. Philip declined to answer any questions regarding the tablet. The next day, the USPO confiscated Philip’s USPO-approved cell phone. Ultimately, Philip falsely informed the USPO that he had not viewed images of child pornography.
As stated in his guilty plea, Philip’s tablet and cell phone were searched pursuant to federal search warrants and were found to contain numerous images of child pornography including approximately 282 images and 206 videos depicting the sexual abuse of children, including an infant.
Examination of the data stored on Philip’s tablet showed that the device was logged into an email account created in February 2021. The same email account received an email from a website widely used by individuals to view child pornography. The email confirmed Philip’s registration of an account on a child pornography website under the username “live4kidlove”. Philip used the same email account to distribute and receive links to files depicting the sexual abuse of children in exchange for other images of child pornography.
United States Attorney Erek L. Barron praised the FBI for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
# # #
Postal Service Mail Carrier Arrested on Federal Complaint Alleging Scheme to Fraudulently Obtain Nearly $800,000 in Jobless BenefitsRead the Press Release
LOS ANGELES – Federal authorities this morning arrested a United States Postal Service (USPS) mail carrier and a Santa Clarita Valley man for allegedly scheming to steal approximately $800,000 in unemployment insurance (UI) funds by using false claims of COVID-related job losses and stealing UI debit cards from the U.S. mail.
Stephen Glover, 32, of Palmdale, who worked at the Valencia post office, and Travis McKenzie, 26, of Valencia, who lived on Glover’s mail delivery route, are expected to make their initial court appearances this afternoon in United States District Court in downtown Los Angeles. A criminal complaint filed on May 13 and unsealed after today’s arrests charges Glover and McKenzie with one count of mail fraud.
According to the affidavit in support of the criminal complaint, from August 2020 to February 2021, Glover and McKenzie fraudulently obtained debit cards issued by the California Employment Development Department (EDD), which administers the state’s unemployment insurance program. The debit cards were issued based on applications for pandemic-related unemployment benefits submitted using approximately 50 stolen identities and containing false statements claiming COVID-related job losses, the affidavit states. The EDD debit cards were issued in the names of victims, some of whom had never resided in, worked in, or even visited California. Glover and McKenzie allegedly split the cash withdrawn using the EDD debit cards, some of which had balances exceeding $30,000.
The scheme allegedly involved more than 50 fraudulent claims to EDD, which resulted in EDD issuing cards that had approximately $798,733 in funds in those names, of which at least $318,771 has been withdrawn from the debit cards.
Glover also allegedly stole mail containing more than $20,000 in personal and business checks belonging to others.
Law enforcement executed search warrants at Glover’s, McKenzie’s, and Glover’s girlfriend’s residences in the spring of 2021, during which they found more than 200 pieces of stolen and EDD-related mail, including more than 15 EDD debit cards, according to the affidavit. In addition to defrauding the California EDD, Glover and McKenzie’s scheme also fraudulently obtained debit cards from the Virginia Employment Commission, the affidavit alleges.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of the mail fraud offense alleged in the complaint, Glover and McKenzie would each face a statutory maximum sentence of 20 years in federal prison.
The United States Department of Labor Office of Inspector General, the United States Postal Service Office of Inspector General, the California Employment Development Department Investigations, and the Los Angeles County Sheriff’s Department investigated this matter.
Assistant United States Attorney Charles E. Pell of the Santa Ana Branch Office is prosecuting this case.
Pittsburgh Felon Pleads to Illegally Possessing a PistolRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a charge of possession of a firearm by a convicted felon, United States Attorney Cindy K. Chung announced today.
Tyrell Johnson, age 32, of the Bon Air section of the City of Pittsburgh, pleaded guilty to one count before Senior United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that on August 13, 2020, the defendant possessed a loaded 9mm caliber Taurus pistol while traveling as a passenger in a vehicle. The defendant had four prior felony drug convictions for possession with the intent to deliver controlled substances at the time of the offense.
Judge Schwab scheduled sentencing for October 12, 2022, at 11:30AM. The law provides for a total sentence of up to life in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court ordered that the defendant remain detained.
Assistant United States Attorney Jonathan D. Lusty is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pittsburgh Bureau of Police conducted the joint investigation that led to the prosecution of Tyrell Johnson.
Peoria Man Sentenced to Nine Months in Prison for “Straw Purchase” of a FirearmRead the Press Release
PEORIA, Ill. – A Peoria, Illinois, man, Dontarius S. Dixon, 29, of the 2800 block of West Larchmont Lane, was sentenced today to nine months’ imprisonment, to be followed by three years of supervised release, for making a false statement during the purchase of a firearm.
At the sentencing hearing, the government presented evidence that Dixon falsified documents by stating that he was the actual buyer of a firearm when in fact he was buying the Glock model 19x 9mm for a convicted felon. The felon, an acquaintance of Dixon’s, approached Dixon and asked him to make the purchase because Dixon had a valid Illinois Firearm Owner’s Identification Card. Dixon was told which handgun to buy and was provided with $1,200 to purchase both the gun for his friend and one for himself. Dixon purchased the Glock 19x, as well as a Glock 43x 9mm for himself, from The Tac Shack, a Federal Firearms Licensee (FFL), on September 3, 2020. He took possession of the guns on September 11, 2020, and delivered the Glock 19x over to the felon, a documented street gang member, the same day.
The very next day, September 12, 2020, Peoria Police recovered the Glock 19x from a vehicle outside the Dream Night Club in Peoria, Illinois. The handgun was in possession of the documented street gang member and was accompanied by an extended magazine, several additional magazines, ammunition, and a speed loader.
The government further established that on September 28, 2020, Peoria Police were called to West Farmington Road in Peoria, in response to a shooting. Police then located Dixon who reported that he was shot by a male who fled on foot. During a later interview on October 7, 2020, Dixon admitted to agents of the ATF that he had lied to police about the shooting and, in fact, had accidentally shot himself in the leg with Glock 43x that he purchased, then threw the gun in a bush off Farmington Road. The firearm was later recovered by the ATF.
Also at the hearing, U.S. District Judge James Shadid found Dixon had put others at great risk by putting guns in the hands of individuals who couldn’t lawfully possess them. Judge Shadid emphasized that straw purchasers have no control over how the guns are used once they leave their hands, and in Dixon’s case, the gun was found in a car outside a nightclub with ammunition and an extended magazine within a day of purchase.
Dixon was indicted in August 2021 and pleaded guilty in February 2022. He was released on bond with conditions since indictment.
The statutory penalties for making a false statement during the purchase of a firearm are no more than 10 years imprisonment, followed by up to 3 years supervised release and up to a $250,000 fine.
The ATF and Peoria Police Department investigated the case. Assistant U.S. Attorney Ronald L. Hanna represented the government in the prosecution.
The case against Dixon was brought as part of The Department of Justice’s Project Safe Neighborhoods initiative. The Department’s renewed commitment to Project Safe Neighborhoods establishes four fundamental principles to guide efforts to reduce violent crime: 1) build trust and legitimacy within communities; 2) invest in community-based prevention and intervention programs; 3) target enforcement and priorities to focus resources on identifying, investigating, and prosecuting the most significant drivers of gun violence and other violent crime; and, 4) measure results with the goal to reduce the level of violence in our communities and not to increase the number of arrests and prosecutions as if they were ends in themselves.
ATF’s campaign “Don’t Lie for the Other Guy” is a part of PSN aimed at reducing firearm “straw purchases”, the illegal purchase of a firearm by one person for another, and to educate would-be straw purchasers of the penalties of knowingly participating in an illegal firearm purchase. More information about the campaign can be found at: www.dontlie.org.
Paterson Police Sergeant Convicted of Conspiracy to Violate Civil Rights and Filing False Police ReportRead the Press Release
NEWARK, N.J. – A federal jury convicted a Paterson Police Department sergeant today of conspiring to violate civil rights and filing a false police report, U.S. Attorney Philip R. Sellinger announced.
Michael Cheff, 51, of Oakland, New Jersey, was convicted following a five-day trial before U.S. District Judge Katharine S. Hayden on one count of conspiracy to deprive persons of civil rights and one count of falsification of a police report.
According to documents filed in this case and evidence at trial:
Eudy Ramos, Daniel Pent, Jonathan Bustios, Matthew Torres, and Frank Toledo were police officers with the Paterson Police Department. Cheff, who was a sergeant, supervised their activities and approved their reports and other paperwork related to arrests and seizures of money, narcotics, and firearms. Ramos, Pent, Bustios, Torres, and Toledo, while on official duty, violated the civil rights of individuals in Paterson. They stopped and searched motor vehicles without any justification and stole cash and other items from the occupants. They also illegally stopped and searched individuals in buildings or on the streets of Paterson and seized cash from them. They concealed their activities by submitting to Cheff false reports that omitted, or falsified, their illegal activities. Cheff signed off on those false police reports and routinely received a portion of these stolen monies from some of these officers.
On Nov. 14, 2017, Cheff joined Bustios, Ramos, and Torres in stealing cash from an apartment in Paterson. Bustios, Ramos, and Torres stopped and arrested an individual in Paterson. The officers went to the individual’s apartment and were joined by Cheff. After the arrested individual was coerced to sign a consent to search form, and while the arrested individual was handcuffed in a police car, Cheff, Bustios, and Ramos went to search the individual’s apartment. After obtaining consent to search the apartment by lying to the individual’s mother, Cheff, Bustios, and Ramos then searched the individual’s room and located a safe inside the room. Cheff took money and narcotics from the safe and put the money in his pocket. Cheff handed a small portion of the money stolen from the safe to Bustios and told Bustios to log it into evidence. Cheff also approved a police report that falsely stated that the officers had recovered $319 from on top of a shelf in the individual’s room.
Later that day, Bustios and Toledo exchanged text messages discussing Cheff’s theft of money. Bustios said, among other things, that Cheff “got us for over a stack today,” that “there was a safe” and that Cheff “grabbed the cash.” According to the individual whose apartment was searched, the safe contained approximately $2,700, and all of it was missing after the search was completed.
The conspiracy to violate civil rights charge carries a maximum penalty of 10 years in prison. The false records charge carries a maximum penalty of 20 years in prison. The maximum fine for each count is $250,000. Sentencing will be scheduled at a later date. Ramos, Pent, Bustios, Torres, and Toledo previously pleaded guilty and are awaiting sentencing.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Michael Messenger in Newark, with the investigation leading to today’s conviction. He also thanked the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, for its assistance.
The government is represented by Assistant U.S. Attorney Jihee G. Suh, Deputy Chief of the Special Prosecutions Division, and Assistant U.S. Attorney Thomas S. Kearney of the Special Prosecutions Division.
Owner and Employees of Monmouth County Marine Equipment and Servicing Company Charged with Defrauding U.S. Department of DefenseRead the Press Release
TRENTON, N.J. – Three Monmouth County, New Jersey, individuals were indicted today for their role in a years-long scheme to defraud the U.S. Department of Defense (DoD) by providing military equipment parts that were not authorized under the governing contracts, U.S. Attorney Philip R. Sellinger announced.
Linda Mika, 70, and Paul Mika, 74, both of Jackson, New Jersey, and Kenneth Mika, 50, of Ewing, New Jersey, are charged by indictment with one count of conspiracy to commit wire fraud and five counts of wire fraud in connection with the scheme. Kenneth Mika was additionally charged with two counts of making false statements.
According to documents filed in this case:
From at least March 2016 through April 2020, the Mikas conspired with each other and others to defraud the DoD and one of its combat logistic support arms, the Defense Logistics Agency (DLA), by engaging in a pattern of unlawful product substitution. Paul Mika was the founder and owner of Monmouth Marine Engines Inc. (Monmouth Marine), a maritime equipment and servicing facility, which, as an approved federal contractor, also entered into contracts with DLA to supply DoD contracting entities with replacement hardware for DoD’s military branches. Linda Mika, Paul Mika’s wife, and Kenneth Mika, Paul and Linda Mika’s son, were employees of Monmouth Marine.
The Mikas, on behalf of Monmouth Marine, obtained contracts with the DoD by falsely claiming that the military parts they contracted to provide would be exact products furnished by authorized manufacturers or suppliers. Once awarded the contracts, however, the Mikas sourced non-conforming substitute parts at a significantly reduced cost to fill the contracts. They did this to maximize their profit margin while also suppressing fair competition in the bidding of federal contracts. Upon receipt by Monmouth Marine, the non-conforming parts were then shipped to DLA in packaging disguising the parts’ identities in an effort by the Mikas to deceive DLA and its unwitting downstream purchasers.
During an audit of Monmouth Marine conducted in February 2020, Kenneth Mika falsely stated to DLA auditors that Monmouth Marine had been authorized by certain representatives of the Defense Contract Management Agency to substitute parts under DLA contracts. Kenneth Mika repeated these false representations to FBI and Defense Criminal Investigation Service agents in July 2020.
Each count of conspiracy to commit wire fraud and wire fraud is punishable by a maximum penalty of 20 years in prison and a maximum $250,000 fine. Each count of making false statements is punishable by a maximum penalty of five years in prison and a maximum $250,00 fine.
U.S. Attorney Sellinger credited special agents of and the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty; and special agents of the FBI, under the direction of Acting Special Agent in Charge Michael Messenger with the investigation leading to today’s indictment.
The government is represented by Assistant U.S. Attorney Eric A. Boden of the U.S. Attorney's Office Criminal Division in Trenton.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Orleans Parish Woman Sentenced to Nine Years in Federal Prison for Credit Card Conspiracy and Identity TheftRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that LAKISHA WILLIAMS, age 41, of New Orleans, was sentenced today to nine years in prison by U.S. District Judge Barry W. Ashe for charges stemming from her participation in a credit card fraud ring that operated in the New Orleans area. WILLIAMS had previously pleaded guilty to four counts of the third superseding indictment: conspiracy to commit access device fraud, possession of fifteen or more counterfeit or unauthorized access devices, possession of device-making equipment, and aggravated identity theft.
According to court documents, WILLIAMS and her co-defendants engaged in a scheme to obtain merchandise and cash from stores through fraud. The defendants obtained stolen credit and debit card information, encoded it onto cards, and then used that information to purchase merchandise at stores. The defendants would then return the items at a different store of the same chain, but they would deceive store workers to have the chargeback credited to their own bank accounts.
Court documents also detail how WILLIAMS took flights with other co-conspirators to perform fraudulent transactions in various cities in the United States, including Charleston, South Carolina; Chicago, Illinois; Ft. Lauderdale, Florida; Nashville, Tennessee; St. Louis, Missouri; Richmond, Virginia; and Charlotte, North Carolina. WILLIAMS had pleaded guilty and admitted to causing losses between $150,000.00 and $250,000.00 through her own conduct and that of her co-conspirators.
For conspiracy to commit access device fraud, Judge Ashe sentenced WILLIAMS to 60 months in prison and three years of supervised release. As to the charge of possession of fifteen or more counterfeit or unauthorized access devices, Judge Ashe sentenced WILLIAMS to 84 months in prison and three years of supervised release. For the charge of possession of device making equipment, Judge Ashe sentenced WILLIAMS to 84 months in prison and three years of supervised release. All these sentences were ordered to run concurrently. For aggravated identity theft, Judge Ashe sentenced WILLIAMS to a mandatory two-year term in prison to be served consecutively to her other sentences, as well as a term of supervised release of one year to run concurrently with the other terms of supervised release. WILLIAMS was also required to pay a mandatory special assessment fee of $100 per count. A restitution hearing to receive any evidence of additional restitution was set by Judge Ashe for August 4, 2022.
“Today’s sentencing demonstrates that those, like Ms. Williams, who engage in fraudulent schemes that prey on the finances of innocent victims and businesses within our community will be held accountable.” said Leslie Pichon, U.S. Secret Service New Orleans Special Agent in Charge.
U.S. Attorney Evans praised the agencies that contributed to this conviction, which represents a coordinated effort of federal and state law enforcement authorities within the Louisiana Financial Crimes Task Force. The Task Force includes representatives from the U.S. Secret Service, U.S. Postal Inspection Service, Louisiana Attorney General’s Office, Jefferson Parish Sheriff’s Office, New Orleans Police Department, Covington Police Department, Hammond Police Department, Kenner Police Department, Louisiana State Police, Mandeville Police Department, Slidell Police Department, St. Bernard Parish Sheriff’s Office, St. John The Baptist Sheriff’s Office, St. Tammany Parish Sheriff’s Office, Tangipahoa Parish Sheriff’s Office, St. Tammany Parish District Attorney’s Office, Homeland Security Investigations, U.S. State Department, Internal Revenue Service, Social Security Administration-Office of Inspector General, and the Defense Criminal Investigative Service. U.S. Attorney Evans also thanked the Franklin (TN) Police Department, the Mobile Police Department, the Gulfport Police Department, the Minnetonka (MN) Police Department, the Jefferson Parish District Attorney’s Office, and the Orleans Parish District Attorney’s Office for their assistance. Assistant United States Attorneys Matthew R. Payne and K. Paige O’Hale are in charge of the prosecution.
Orleans Parish Man Sentenced for Conspiracy to Commit Mail Fraud OffenseRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced today that TYREE JOHNSON (“JOHNSON”), age 23, a resident of Orleans Parish, was sentenced on May 25, 2022 for conspiracy to commit mail fraud in violation of 18 U.S.C. § 371. The Honorable Ivan Lemelle sentenced JOHNSON to five years probation, a $100 mandatory special assessment fee, and payment of $178,409.00 in restitution.
According to the court documents, JIMMIE JAMES (“JAMES”) conspired with JOHNSON, an employee of United Parcel Service (UPS), to steal shipments of Apple iPhones from the UPS Customer Service Center where JOHNSON worked. JOHNSON would over-label boxes of iPhones destined for AT&T Mobility stores with a shipping label provided to him by JAMES. These shipping labels would cause the boxes of iPhones to be redirected to JAMES’s home or that of an unidentified co-conspirator living in Chalmette. As a reward for over-labeling the packages, JAMES paid JOHNSON at least $3,500 through the Zelle payment application.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant U. S. Attorney Spiro G. Latsis is in charge of the prosecution.
Omaha Man Sentenced to More Than 8 Years for Methamphetamine and a Firearm ChargesRead the Press Release
United States Attorney Jan Sharp announced that Brandon Morrison, 39, of Omaha, Nebraska, was sentenced today in federal court in Omaha for possessing with intent to distribute methamphetamine and carrying a firearm in relation to a drug trafficking crime. United States District Court Judge Brian C. Buescher sentenced Morrison to a total of 97 months’ imprisonment with the firearm charge carrying a consecutive 60-month sentence. After completing his term of imprisonment, Morrison will be required to serve a 3-year term of supervised release as there is no parole in the federal system.
On January 29, 2020, Morrison was stopped by Omaha Police after he was seen driving a car with no license plates. As officers approached Morrison’s car, they detected the odor of marijuana. Morrison was asked to exit the car and officers began searching, finding a firearm in the trunk. Morrison then fled from the scene. Morrison was caught. A search of the trunk revealed approximately 13 grams of methamphetamine.
This case was investigated by the Omaha Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Omaha Man Sentenced in Methamphetamine Distribution ConspiracyRead the Press Release
United States Attorney Jan Sharp announced that Michael Allison, 52, was sentenced on May 26, 2022, in federal court in Omaha, Nebraska, for conspiracy to distribute and possess with intent to distribute methamphetamine. Senior United States District Judge Joseph F. Bataillon sentenced Allison to 168 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a 5-year term of supervised release.
Omaha Police Department (OPD) officers acted upon information about Allison’s codefendant, Gregory Neemann. On March 13, 2020, OPD officers stopped Neeman’s car in anticipation of serving a search warrant at his residence in Omaha. When he was stopped, Neemann was in possession of methamphetamine and $2,363 in drug proceeds. Neeman’s residence was then searched.
Using information developed during the investigation of Neemann, officers began to focus on Allison. Allison was arrested after delivering 2 pounds of methamphetamine to a cooperating individual. A search of Allison’s residence yielded 28 additional ounces of methamphetamine (approximately 793 grams) and $54,327.00. All of the cash seized was forfeited as drug proceeds.
Neeman was sentenced on March 11, 2022, to 180 months’ imprisonment.
This case was investigated by the Omaha Police Department.
Omaha Man Sentenced for Producing Child PornographyRead the Press Release
United States Attorney Jan Sharp announced that Phillip D. Gonzales, 33, of Omaha, Nebraska, was sentenced on May 25, 2022, by United States District Judge Brian C. Buescher to 180 months’ imprisonment. After his release from prison, he will begin a 5-year term of supervised release and will be required to register as a sex offender. Gonzales pled guilty in February 2022 to producing child pornography.
In about September 2020, a 16-year-old female who had run from home met Gonzales and his co-defendant in Omaha. Gonzales and the minor developed a relationship. The minor also engaged in prostitution. Gonzales took a series of photographs and videos of the minor female depicting, among other things, the minor female performing oral sex and posing lasciviously. The images were recovered after the Omaha Police Department conducted a traffic stop of Gonzales and the minor female and learned she was being trafficked.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Federal Bureau of Investigation and the Omaha Police Department.
Oelwein Man with Extensive Criminal History Sentenced to Federal Prison for Selling DrugsRead the Press Release
A man who conspired to deal methamphetamine was sentenced May 25, 2022, to more than 15 years in federal prison.
David Alan Tafolla, age 55, from Oelwein, Iowa, received the prison term after a November 9, 2021 guilty plea to conspiracy to distribute a controlled substance.
In a plea agreement, Tafolla admitted that he was involved in drug trafficking from October 2020 to May 2021. Tafolla admitted selling methamphetamine on four occasions during April and May 2021. Law enforcement officers searched Tafolla’s home in May 2021 and recovered methamphetamine, marijuana, and $36,473 in cash that represented drug proceeds. Tafolla has previous convictions in more than twenty cases including assaults, going armed with intent, burglary, violations of no contact orders, and stalking.
Tafolla was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Tafolla was sentenced to 188 months’ imprisonment. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system. Tafolla is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Devra Hake and Assistant United States Attorney Emily K. Nydle and investigated by the Iowa Division of Narcotics Enforcement, Oelwein Police Department, Iowa State Patrol, and Iowa Division of Intelligence.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-cr-02044.