Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 14 April 2022
Houstonian set to appear in court for multiple money laundering chargesRead the Press Release
HOUSTON – A federal grand jury has returned an eight-count indictment against a 29-year-old Houston man in relation to a money laundering scheme, announced U.S. Attorney Jennifer B. Lowery.
Baudelaire Idriss Tchouala is set to make his initial appearance today before U.S. Magistrate Judge Yvonne H. Ho at 2 p.m. Authorities took him into custody yesterday.
Tchouala is charged with two counts of conspiracy to commit money laundering, three counts of money laundering and three counts of engaging in monetary transactions in property derived from specified unlawful activity.
According to the indictment, Tchouala owned B.T & Sons which had several bank accounts. From July 1 through Nov. 5, 2018, he allegedly conspired with others to commit money laundering. He withdrew money from his bank accounts that were the proceeds of wire fraud, according to the charges.
If convicted, he faces up to 20 years for the conspiracy to commit and committing money laundering, while the other charges carry a possible 10-year-term of imprisonment.
The FBI conducted the investigation. Assistant U.S. Attorney Rodolfo Ramirez is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Hardy County woman sentenced for drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – Barbara Ann Thomas, of Moorefield, West Virginia, was sentenced today to 151 months of incarceration for a drug charge, United States Attorney William Ihlenfeld announced.
Thomas, 49, pleaded guilty in December 2021 to one count of “Possession with Intent to Distribute Methamphetamine.” Thomas admitted to having methamphetamine in August 2019 in Grant County.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative; the West Virginia State Police; and the Grant County Sheriff’s Office investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Hardy County man sentenced for role in drug trafficking operationRead the Press Release
ELKINS, WEST VIRGINIA – Richard Allan Howell, of Moorefield, West Virginia, was sentenced today to 130 months of incarceration for his role in a drug distribution operation, United States Attorney William Ihlenfeld announced.
Howell, 43, pleaded guilty in October 2021 to one count of “Possession with Intent to Distribute Methamphetamine.” Howell admitted to having methamphetamine, also known as “crystal meth” or “ice,” in October 2018 in Hardy County.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, and the Moorefield Police Department investigated. The task force consists of the FBI, the West Virginia State Police, the Grant County Sheriff’s Office, the Hardy County Sheriff’s Office, the Hardy County Sheriff’s Office, the Mineral County Sheriff’s Office, and the Keyser Police Department.
Chief U.S. District Judge Thomas S. Kleeh presided.
Find the related case here: https://www.justice.gov/usao-ndwv/pr/hardy-county-man-appears-drug-charges
Gypsy Joker Outlaw Motorcycle Club Members Sentenced to Life in Prison for Kidnapping, Torturing, and Murdering Former Club MemberRead the Press Release
PORTLAND, Ore.—Two members of the Gypsy Joker Outlaw Motorcycle Club (GJOMC) were sentenced to life in federal prison today for kidnapping, torturing, and murdering a former club member.
GJOMC Portland clubhouse president Mark Leroy Dencklau, 61, of Woodburn, Oregon and Portland clubhouse member Chad Leroy Erickson, 51, of Rainier, Oregon, received the life sentences after being convicted at trial in December 2021 of murder in aid of racketeering; kidnapping in aid of racketeering, resulting in death; kidnapping resulting in death; and conspiracy to commit kidnapping, resulting in death. Additionally, Dencklau was found guilty of racketeering conspiracy.
“Mark Dencklau and Chad Erickson will rightfully serve the rest of their lives in federal prison. These men prided themselves in using violence to intimidate others and increase their power and influence among club members and rivals. Organized violent crime has no place in Oregon and will not be tolerated. Today’s sentences were years in the making and required a dedicated and coordinated law enforcement effort. We are grateful to all the law enforcement agencies who participated in bringing these men to justice and exposing the Gypsy Jokers as the ruthless, violent gang they are,” said Scott Erik Asphaug, U.S. Attorney for the District of Oregon.
“The heinous nature of these crimes truly warrant these life sentences,” said ATF Seattle Field Division Special Agent in Charge Jonathan T. McPherson. “ATF has vigorously investigated, and will continue to investigate, these outlaw motorcycle gangs when they perpetrate criminal acts.”
According to court documents and trial testimony, the GJOMC is a hierarchical criminal organization wherein members and associates maintain their position and status in the organization by participating in, directly or indirectly, various acts of violent racketeering activity including murder, kidnapping, robbery, extortion, narcotics trafficking, and witness tampering. Since the 1980s, the club has been active in several states including Oregon and Washington and, until recently, operated six clubhouses in the Pacific Northwest. The club also has international chapters in Germany, Australia, and Norway.
From 2003 until his arrest, Dencklau served as the president of the club’s Portland chapter. The GJOMC also oversaw several support clubs in Oregon and Washington including the Road Brothers Northwest Motorcycle Club, Solutions Motorcycle Club, Northwest Veterans Motorcycle Club, High-Side Riders, and the Freedom Fellowship Motorcycle Club. Support club members conducted criminal activities in support of the GJOMC and served as a source of new members and revenue for the club.
On July 1, 2015, the body of Robert Huggins, an estranged member of the GJOMC Portland chapter, was found lying in a field in Clark County, Washington. Huggins’ body was badly beaten, and he appeared to have been tortured prior to his death. Huggins was previously stripped of his club membership for allegedly stealing from the club and, after breaking into Dencklau’s Woodburn residence, tying up Dencklau’s girlfriend and stealing multiple firearms. In the days and weeks following this robbery, Dencklau directed GJOMC members to find Huggins.
Several government witnesses testified at trial to Dencklau, Erickson, and their co-defendants’ roles in the revenge kidnapping, torture, and murder of Huggins. On the evening of June 30, 2015, Dencklau and others kidnapped Huggins from a residence in Portland and transported him to a rural property in Southwest Washington. Over the course of several hours, Huggins was severely beaten and tortured. He sustained numerous injuries to his head and face, including a fractured skull; lacerations to his chest and torso; and removed nipples. A local medical examiner ruled that Huggins’ death was caused by multiple blunt and sharp force injuries.
On June 28, 2018, a federal grand jury in Portland returned a four-count indictment charging Dencklau; Earl Deverle Fisher, 48, of Gresham, Oregon; and Tiler Evan Pribbernow, 40, of Portland, with murder in aid of racketeering; kidnapping in aid of racketeering, resulting in death; kidnapping resulting in death and conspiracy to commit kidnapping, resulting in death.
Later, on November 29, 2018, Dencklau; Fisher; Erickson; Kenneth Earl Hause, 64, of Aumsville, Oregon; Ryan Anthony Negrinelli, 36, of Gresham, Oregon; and Joseph Duane Folkerts, 61, of Battleground, Washington, were charged by superseding indictment with racketeering conspiracy.
In December 2021, the federal jury who convicted Dencklau and Erickson acquitted Erickson and Hause, the GJOMC national president, of racketeering conspiracy.
On April 12, 2022, after previously pleading guilty, Pribbernow was sentenced to 140 months in federal prison. Fisher, Negrinelli, and Folkerts have also pleaded guilty and are awaiting sentencing.
U.S. Attorney Asphaug and Special Agent in Charge McPherson made the announcement.
This case was investigated by the Portland Police Bureau and ATF, with assistance from the U.S. Marshals Service, IRS-Criminal Investigation, the Clark County Sheriff’s Office, Oregon State Police, and the Oregon and Washington State Crime Labs. Leah K. Bolstad and Steven T. Mygrant, Assistant U.S. Attorneys for the District of Oregon, prosecuted the case with Damaré Theriot, Trial Attorney for the Criminal Division’s Organized Crime and Gang Section.
This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the District of Oregon’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement, community organizations, and local community leaders to prevent and deter future criminal conduct.
This prosecution is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the U.S. by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Great Falls meth trafficker sentenced to four years in prisonRead the Press Release
GREAT FALLS — A Great Falls man who admitted to distributing methamphetamine in the community was sentenced today to four years in prison, to be followed by three years of supervised release, U.S. Attorney Leif M. Johnson said.
Mark Edwin Abresch, 63, pleaded guilty in October 2021 to possession with intent to distribute meth.
Chief U.S. District Judge Brian M. Morris presided.
In court documents, the government alleged that Abresch distributed meth in the Great Falls community between September 2020 and April 2021. In a two-week period from the end of March to the beginning of April 2021, Abresch distributed more than 89 grams of meth in four controlled buys.
Assistant U.S. Attorneys Jessica A. Betley and Kalah A. Paisley prosecuted the case, which was investigated by the FBI and Great Falls Police Department.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
XXX
Grand Jury Indicts Cheektowaga Man on Multiple Charges Including Sex TraffickingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that a federal grand jury has returned an indictment charging James Fox, 38, of Cheektowaga, NY, with two counts of sex trafficking by coercion, distribution of heroin causing serious bodily injury, distribution of heroin and crack cocaine, using and maintaining a drug-involved premises, and possession of a firearm in furtherance of drug trafficking crimes. The charges carry a mandatory minimum penalty of 25 years in prison and a maximum of life in prison.
Assistant U.S. Attorneys Nicholas T. Cooper and Aaron J. Mango, who are handling the case, stated that according to the indictment and a previously filed complaint, between 2019, and May 2020, Fox is accused of coercing Victim 1, using force and threats, to engage in a commercial sex act. Between 2018, and 2021, Fox is accused of coercing Victim 2, also using force or threats of force, to engage in a commercial sex act. In addition, on March 3, 2020, Fox is accused of selling heroin to another individual, which resulted in serious bodily injury.
On February 3, 2022, investigators executed a search warrant at Fox’s residence on Beach Road in Cheektowaga, NY, during which they seized, among other items, a loaded shotgun; additional rounds of ammunition; Narcan; two electrical tasers; and a stun gun. The Government alleges that Fox frequently used his residence to distribute illegal narcotics and solicit prostitutes who were addicted to heroin and crack cocaine, and that Fox provided the prostitutes with illegal narcotics in exchange for sex acts.
The indictment is a result of an investigation by Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Matthew Scarpino, the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, the Lancaster Police Department, under the direction of Chief William Karn. Jr. and Cheektowaga Police Department, under the direction of Chief Brian Gould.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
# # # #
Gangster Disciples Gang Member with Armed Robbery Conviction is Sentenced to Prison for Illegally Possessing Loaded GunRead the Press Release
VALDOSTA, Ga. – A gang member recently released from prison for armed robbery when he was arrested in possession of a loaded Glock semi-automatic pistol during an investigation into an alleged gunfire incident was sentenced to prison on a federal weapons charge.
Xavier Rashad Brooks, 31, of Valdosta, was sentenced to serve 100 months in federal prison to be followed by three years of supervised release by U.S. District Judge Hugh Lawson on Wednesday, April 13, after he pleaded guilty to possession of a firearm by a convicted felon. This sentence will run consecutively to any term of imprisonment which may be imposed in a pending charge in Brooks County, Georgia, Superior Court. There is no parole in the federal system.
“Violent offenders who repeatedly disrupt the peace in the Middle District of Georgia face the possibility of federal prosecution when they are taken into custody illegally possessing guns,” said U.S. Attorney Peter D. Leary. “We are focusing enforcement on the most violent offenders in an effort to make our communities safer and reduce crime.”
“This sentence makes it very clear that criminals who repeatedly break the law and continue to possess illegal firearms, will be held accountable with lengthy prison terms,” said Phillip Wislar, Acting Special Agent in Charge of FBI Atlanta. “Our partnership with local law enforcement agencies, like the Remerton Police Department and the Valdosta Police Department, make these arrests possible and ultimately make our communities safer.”
According to court documents and other evidence, on Oct. 15, 2020, a Remerton Police Department (RPD) officer saw a vehicle matching the description of an SUV reportedly involved in a firearm discharge event. Brooks, who was recently released from prison after serving a ten-year sentence for armed robbery, was walking toward the car with another individual. When Brooks saw the officer, he walked around the corner of a building and then came back and stopped behind the vehicle. Brooks was non-compliant when the officer asked him to show his hands, and he ducked behind the vehicle. The officer began to retreat for cover when Brooks reappeared and showed his hands. Brooks then fled the scene and was arrested days later in the same area. Officers found a loaded Glock 9mm semiautomatic pistol with a magazine at the spot next to the SUV where Brooks ducked from police. Brooks has a prior felony armed robbery conviction in the Superior Court of Lowndes County, Georgia, and was released from incarceration in July 2020. Brooks is a verified member of the Gangster Disciples gang.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Remerton Police Department, the Valdosta Police Department and the FBI.
Assistant U.S. Attorney Robert McCullers prosecuted the case for the Government.
Fort McCoy Man Indicted for Attempting to Entice A 12-Year-Old Child to Engage in Sexual ActivityRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces that a grand jury has returned an indictment charging Jorge Mojocoa (69, Fort McCoy) with attempted enticement of a minor to engage in sex. Mojocoa faces a mandatory minimum penalty of 10 years, and up to life, in federal prison, and a potential life term of supervised release. Mojocoa is being held in federal custody pending trial.
According to court documents, on March 30 and March 31, 2022, Mojocoa utilized emails, phone calls, and text messages to engage in conversations with an undercover agent who was posing online as the guardian of a 12-year-old child. On March 30, 2022, Mojocoa advised the agent that he wished to have sex with the “child” and negotiated to pay $60 for oral sex. On March 31, 2022, Mojocoa arrived at an agreed upon location with cash, candy for the “child,” and lubricant. He was arrested by law enforcement at that time.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Homeland Security Investigations, the United States Secret Service, the Marion County Sheriff’s Office, the Ocala Police Department, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney Tyrie K. Boyer.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Water District General Manager Indicted for $25 Million Water Theft and Tax ViolationsRead the Press Release
FRESNO, Calif. — A federal grand jury returned a five-count indictment today against Dennis Falaschi, 75, of Aptos, California, charging him with conspiracy, theft of government property, and filing false tax returns, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Falaschi was the general manager for a public water district in Fresno and Merced Counties near the communities of Dos Palos, Firebaugh, and Los Banos. He exploited a leak in the Delta-Mendota Canal and engineered a way to steal over $25 million in federally owned water.
According to court documents, in 1992, Falaschi was informed that an old, abandoned drain turnout near milepost markers 94.57 and 94.58 on the Delta-Mendota Canal was leaking water from the Delta-Mendota Canal into a parallel canal that the water district controlled. The drain was connected to a standpipe on the bank of the Delta-Mendota Canal that used a gate and valve to redirect water from the Delta-Mendota Canal into the water district’s canal. The gate had been cemented closed years earlier. The cement had since cracked and water was coming through it.
Thereafter, Falaschi instructed an employee to install a new gate inside the standpipe so that the site could be opened and closed on demand. He later instructed the employee to install a lid with a lock on top of the standpipe and an approximate two-foot elbow pipe off the valve of the standpipe that angled down 90 degrees into the water district’s canal. The lid concealed the theft because it prevented people from seeing that the gate inside the standpipe was functional. The elbow pipe further concealed and expedited the theft because it enclosed the water flow from the Delta-Mendota Canal into the water district’s canal and was installed in such a way that it was generally submerged under the water.
Falaschi subsequently instructed employees to use the site to steal federal water from the Delta-Mendota Canal on multiple occasions until the site was discovered in April 2015. He used the proceeds of the theft to pay himself and others exorbitant salaries, fringe benefits, and personal expense reimbursements.
Additionally, Falaschi is charged with filing false tax returns in 2015 through 2017. According to court records, he failed to report over $900,000 in income to the Internal Revenue Service that he received from private water sales.
The case is the product of an investigation by the U.S. Department of the Interior’s Office of Inspector General, the IRS-Criminal Investigation, and the Federal Bureau of Investigation. Assistant U.S. Attorney Joseph Barton is prosecuting the case.
If convicted of theft of government property, Falaschi faces a maximum penalty of 10 years in prison and a fine up to $250,000. If convicted of conspiracy, he faces a maximum penalty of five years in prison and a fine up to $250,000. If convicted of the tax charges, he faces a maximum penalty of three years in prison and a fine up to $250,000. 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.
Former University of Michigan Professor Sentenced on Charges of Child Exploitation of a MinorRead the Press Release
DETROIT – A former University of Michigan professor was sentenced today to 5 years in federal prison after having pleaded guilty in November 2021 to one count of transporting a minor girl across state lines with the intent to engage in sexual conduct, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by Acting Special Agent in Charge James C. Harris, III, Homeland Security Investigations (HSI).
Sentenced was Stephen Shipps, 69, of Ann Arbor, Michigan. In sentencing Shipps, United States District Judge Denise Page Hood also ordered Shipps to pay restitution to his victim in the amount of $120,000.00.
According to court records, from 1989 to 2019, Shipps was employed by the University of Michigan School of Music, Theatre, and Dance as a violin professor. Shipps was also the director of the Strings Preparatory Program, which offered instruction to young musicians ranging from elementary school through high school-age. Shipps retired from the University of Michigan in February 2019. In addition, Shipps served on the faculties of Indiana University, the North Carolina School of the Arts, the University of Nebraska – Omaha, and the Banff Centre in Canada. He also taught students at summer music programs in the Czech Republic, Germany, and the United Kingdom.
According to court records, from February and March of 2002, as well as in June and July of 2002, Shipps knowingly transported a minor girl, who was under 18 years old, across state lines, and Shipps intended to engage in sexual activity with her.
“I want to commend the brave young women who, after many years, found the courage to come forward and expose the abuse they suffered at the hands of Shipps,” stated U.S. Attorney Ison. “I also want to thank the prosecutors and law enforcement officials who worked tirelessly to bring justice in this case.”
“It is my hope that today’s sentencing can bring some closure to Shipps’ victims and sends a powerful message to others in positions of trust that if you prey on the vulnerable you will be held accountable for your actions,” said HSI Detroit acting Special Agent in Charge James C. Harris III. “I am proud of the agents who worked tirelessly on this investigation to ensure that justice was served.”
This case was investigated by agents of HSI with the assistance of the University of Michigan Police Department. Assistant U.S. Attorney Sara Woodward prosecuted this case.
Former UBS Financial Advisor Pleads Guilty to Defrauding over $5 Million Dollars from His UBS ClientsRead the Press Release
Miami, Florida – German Nino, a former UBS Financial Advisor, has pled guilty in federal court in Miami to defrauding over $5 million from a family who maintained several accounts at UBS.
As part of his change of plea, from about 2012, and continuing to 2020, Nino, a resident of Broward County, was a financial advisor working at a branch office of UBS Financial Services Inc. in Miami. Nino oversaw and managed UBS investment accounts for various customers, including three victims who were related and who had various investment accounts at UBS. Nino was the financial advisor assigned to oversee and manage the victims’ money in the accounts.
From about May 2014 to February 2020, Nino made a total of 62 unauthorized transfers from three UBS accounts belonging to the victims, which totaled $5,833,218.59. To accomplish the wire fraud scheme, Nino made materially false and fraudulent statements to his victims and concealed and omitted material facts including misrepresenting the true performance, balance, and rate of return of the accounts he managed; forging the signature of his clients on documents purporting to authorize transfers out of the accounts; preparing a fraudulent land purchase contract and forging a victim’s signature on the land purchase contract to make it appear that the victim was purchasing land in Colombia by using money from the victim’s account; removing one of the victim’s email from the victim’s UBS email account profile so that the victim would not receive email notifications from UBS about unauthorized transfers; and preparing fraudulent UBS account statements and client review statements, which falsely inflated the balance and value of the victims’ accounts.
Nino is scheduled for sentencing on June 21, 2022, before U.S. District Judge Donald L. Graham. He faces up to 60 years imprisonment.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI Miami, made the announcement.
FBI Miami investigated the case. Assistant U.S. Attorney Deric Zacca is prosecuting it. Assistant U.S. Attorney Emily Stone is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-20020.
###
Former Postal Employee Admits Fraud in Connection with Unemployment Insurance BenefitsRead the Press Release
NEWARK, N.J. – A former U.S. Postal Service USPS employee today admitted that he conspired to fraudulently obtain unemployment insurance benefits, U.S. Attorney Philip R. Sellinger announced.
Ross Clayton, 31, of Irvington, New Jersey, pleaded guilty by videoconference before U.S. District Judge Julien X. Neals to an information charging him with conspiring to commit wire fraud.
According to documents filed in the case and statements made in court:
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. The CARES Act created a new temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA), which provided unemployment insurance benefits for individuals who were not eligible for other types of unemployment (the self-employed, independent contractors, gig economy workers). The CARES Act also created a new temporary federal program called Federal Pandemic Unemployment Assistance (FPUC) that provided an additional $600 weekly benefit to those eligible for PUA and regular unemployment insurance benefits.
Clayton was a USPS employee. Clayton took unemployment insurance benefits-related mail, including debit cards, from a USPS location in New Jersey and used that mail to obtain unemployment insurance benefits to which he was not entitled.
The charge of conspiring to commit wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits to Stokes or twice the gross loss suffered by the victims. Sentencing is scheduled for Sept. 7, 2022.
U.S. Attorney Sellinger credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Jonathan Mellone in Manhattan; and postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Postal Inspector in Charge Damon Wood, Philadelphia Division, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
Former Nassau County Executive Edward Mangano and His Wife Linda Mangano Sentenced for Corruption and Related ChargesRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Edward Mangano, the former Nassau County Executive, and his wife Linda Mangano were sentenced by United States District Judge Joan M. Azrack to 12 years, and 15 months’, imprisonment, respectively, following their convictions after a seven-week trial. Edward Mangano was convicted of multiple counts of accepting bribes and kickbacks in exchange for official government action, and for conspiracy to obstruct justice. Linda Mangano was also convicted of conspiracy to obstruct justice, obstruction of justice and making false statements to Federal Bureau of Investigation (FBI) agents in connection with her employment by Long Island restaurateur Harendra Singh. Edward Mangano was also ordered to pay a $20,000 fine.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, FBI, New York Field Office (FBI), announced the sentences.
“Edward Mangano, as County Executive, gave Nassau residents widespread corruption and dishonesty instead of truth and integrity. Linda Mangano took affirmative steps to mislead a federal investigation to keep her husband in power and to maintain their way of life,” U.S. Attorney Peace stated. “Today’s sentence should send a strong, unambiguous message to any public official willing to place their personal interest above the public’s, and to those inner circle members who corruptly attempt to protect them from prosecution: my Office will employ all resources at its disposal to investigate, prosecute, and convict you in order to restore the public’s faith in our elected officials.”
Mr. Peace thanked the FBI and the Internal Revenue Service Criminal Investigation for their work on the case.
The evidence at trial established that between January 2010 and February 2015, Edward Mangano engaged in schemes to solicit and receive bribes and kickbacks from Singh. In return for the cash and personal benefits he received, Mangano, who served as Nassau County Executive from January 2010 to December 2017, performed official actions to benefit Singh in connection with his businesses.
The Town of Oyster Bay (TOB) Loan Scheme
Several weeks after Edward Mangano took office as Nassau County Executive in January 2010, he urged TOB Supervisor to help Singh obtain financing in order to make required capital improvements at TOB Beach and The Woodlands at the TOB golf course, by authorizing the TOB to indirectly guarantee four bank loans totaling approximately $20 million. Mangano used his official position to ensure that the TOB backed the loans. In April 2010, Singh hired Linda Mangano for a sham job as the purported Director of Marketing for Singh’s businesses. Shortly thereafter, the TOB indirectly guaranteed the first of four personal loans to Singh related to the beach and the golf course. Singh paid for five vacations, hardwood flooring, a custom-made office chair, a massage chair and a watch for the Manganos, as well as over $450,000 in total for Linda Mangano’s no-show job.
Obstruction of Justice
Edward and Linda Mangano conspired to obstruct a federal grand jury investigation when they schemed with Singh to fabricate examples of work never performed by Linda Mangano at the Water’s Edge, in an attempt to thwart a grand jury investigation. On May 20, 2015 and May 22, 2015, Linda Mangano made false statements to the FBI and federal prosecutors about the work she claimed to have performed for Singh.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Catherine M. Mirabile, Christopher Caffarone and former Eastern District Assistant United States Attorney Lara Treinis Gatz are in charge of the prosecution. Assistant United States Attorney Madeline O’Connor is responsible for the forfeiture of assets.
The Defendants:
EDWARD MANGANO
Age: 60
Bethpage, New YorkLINDA MANGANO
Age: 59
Bethpage, New YorkE.D.N.Y. Docket No. 16-CR-540 (S-2) (JMA)
Former Hotel Senior Analyst Admits Role in Embezzlement SchemeRead the Press Release
NEWARK, N.J. – A former hotel employee of a nationwide hotel chain today admitted his role in a scheme to embezzle over $300,000 from the company, U.S. Attorney Philip R. Sellinger announced.
Marco Alvarez, 46, of Bloomfield, New Jersey, pleaded guilty by videoconference before U.S. District Judge Esther Salas to an information charging him with one count of wire fraud.
According to documents filed in this case and statements made in court:
As senior analyst for strategic sourcing for a national hotel chain, Alvarez was responsible for administering the company’s corporate credit card program. He was authorized to approve applications for credit cards and to access account information for such credit cards. From April 2014 through January 2020, Alvarez embezzled funds from the hotel through the unauthorized use of the hotel’s corporate credit cards to purchase goods and services. Alvarez admitted that he knowingly opened and used corporate credit cards to make $317,582 in unauthorized personal purchases and attempted to conceal them by transferring credits owed to the hotel to these credit cards to offset the unauthorized charges made.
The charge of wire fraud carries a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, or twice the gross profits or loss, whichever is greatest. Sentencing is scheduled for Sept. 21, 2022.
U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Postal Inspector in Charge Damon Wood, Philadelphia Division; and special agents of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Fatime Meka Cano of the U.S. Attorney’s Office Government Fraud Unit in Newark.
Former Health Care Staffing Executive Convicted of Obstructing FTC Investigation into Wage-Fixing AllegationsRead the Press Release
Today, a Texas man was convicted of obstructing a Federal Trade Commission (FTC) investigation, following an eight-day trial in the Eastern District of Texas.
“Lying to federal agencies is a crime, plain and simple,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “And, as the court’s rulings in this case make clear, so is wage fixing. When obstruction affects the federal government’s investigations into labor market collusion and impedes our ability to protect workers, we will use all the tools available to prosecute all of these crimes to the full extent of the law.”
“Wage fixing causes tremendous harm to countless hardworking Americans,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI will continue to work closely with our law enforcement partners to uncover this type of corruption and bring to justice anyone who is responsible or who obstructs our investigations into this conduct.”
Evidence introduced at trial showed that Neeraj Jindal obstructed an FTC investigation in 2017 into an alleged illegal agreement to fix rates paid to therapists for treating home health agency patients in the Dallas/Fort Worth, Texas, area. At the time, Jindal was the owner of a Texas-based therapist staffing company providing in-home physical therapy services.
The obstruction offense carries a statutory maximum penalty of five years imprisonment and a $250,000 fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jindal was found not guilty on two other counts charged in the same indictment. John Rodgers, his co-defendant, was found not guilty on the three charges against him included in the indictment.
In November 2021, in denying a motion to dismiss, the court held that “price-fixing agreements — even among buyers in the labor market — have been per se illegal for years.” The court observed: “When the price of labor is lowered, or wages are suppressed, fewer people take jobs, which always or almost always tends to restrict competition and decrease output.” (internal citations omitted).
The Antitrust Division’s Washington Criminal I Section prosecuted the case, which was investigated with the FBI’s International Corruption Unit, with support from the U.S. Attorney’s Office for the Eastern District of Texas.
The charges in this case were brought in connection with the Antitrust Division’s ongoing commitment to prosecute anticompetitive conduct affecting American labor markets. Anyone with information on market allocation or price fixing by employers should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
Federal Grand Jury Indicts Thirteen for Conspiracy to Distribute Methamphetamine in the Owensboro AreaRead the Press Release
Owensboro, Kentucky – A federal grand jury in Louisville, Kentucky returned a superseding indictment on April 5, 2022, charging 13 Kentucky residents with running large scale drug trafficking operations in the Owensboro area of Kentucky.
According to court documents unsealed in federal court this week, the following defendants are charged with engaging in two conspiracies to distribute methamphetamine in Daviess County, Kentucky and elsewhere:
- Prince Northington (37, of Owensboro)
- Barri B. Brown (35, of Hopkinsville)
- Andrew Derington (33, of Owensboro)
- Trenton Brown (27, of Owensboro)
- Ryan Bean (36, of Owensboro)
- Christopher Vasquez (39, of Owensboro)
- Brittany Swihart (34, of Owensboro)
- Christopher Williams (40, of Owensboro)
- Avery Green (25, of Owensboro)
- Cedric Swanagan (35, of Owensboro)
- Nicole Toliver (27, of Owensboro)
- Courtland Reed (30, of Louisville)
- Birdie Lawless (28, of Owensboro)
Each of the defendants is charged with conspiracy to possess with the intent to distribute methamphetamine. Barri B. Brown is also charged with possession of a firearm by a prohibited person. Green and Toliver are also each charged with possession with the intent to distribute methamphetamine. The indictment was unsealed today during initial proceedings before U.S. Magistrate Judge H. Brent Brennenstuhl of the U.S. District Court for the Western District of Kentucky. If convicted, the defendants face a mandatory minimum penalty of 10 years and maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky made the announcement.
The Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Federal Bureau of Investigation (FBI), the Owensboro-Daviess County Appalachia High Intensity Drug Trafficking Area (AHIDTA) Task Force, the Department of Homeland Security, the Owensboro Police Department, the Daviess County Sheriff’s Office, the Kentucky State Police, the McLean County Sheriff’s Office, and the Vanderburgh County Sheriff’s Office are investigating the case.
Assistant U.S. Attorney Frank Dahl is prosecuting 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 www.justice.gov/OCDETF.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Ed Buck Sentenced to 30 Years in Federal Prison for Providing Methamphetamine to Two Victims Who Suffered Fatal OverdosesRead the Press Release
LOS ANGELES – Edward Buck, a businessman and long-time figure of West Hollywood politics, was sentenced today to 360 months in federal prison for providing fatal doses of methamphetamine to two men who died at his apartment after he injected them with the drug.
Buck, 67, was sentenced by United States District Judge Christina A. Snyder. A restitution hearing in this case is scheduled for May 16.
At the conclusion of a nine-day trial in July 2021, a federal jury found Buck guilty of two counts of distribution of methamphetamine resulting in death, four counts of distribution of methamphetamine, one count of maintaining a drug-involved premises, and two counts of enticement to travel in interstate commerce for prostitution.
Beginning no later than 2011 and continuing through September 2019, Buck engaged in a pattern of “party and play,” in which he solicited men – some of whom were homeless or struggling with drug addiction – to consume narcotics that he provided and perform sexual activities at his apartment, a ritual that prosecutors argued was “more than a fetish – it was a lethal and unchecked pattern of reckless disregard for human life.”
In these party-and-play sessions, Buck distributed drugs, including methamphetamine, GHB (the “date rape” drug), and clonazepam. In some instances, Buck injected victims with drugs intravenously in a practice known as “slamming.”
He exploited the wealth and power balance between himself and his victims by offering them money to use drugs.
Buck solicited his victims in various ways, including using social media platforms, dating and escort websites, or via referrals from his prior victims, to whom he offered finder’s fees.
Once the men were at his apartment, Buck prepared syringes containing methamphetamine, sometimes personally injecting the victims with or without their consent. Buck also injected victims with more narcotics than they agreed to take, and sometimes he injected victims while they were unconscious. At trial, victims described how Buck put sedatives in their drinks or in the injections, causing them to lose consciousness or control over their bodies. While they were unconscious, Buck sexually assaulted his victims.
On two occasions, Buck’s party-and-play fetish turned lethal. Buck killed Gemmel Moore with a lethal dose of methamphetamine on July 27, 2017, and then he killed Timothy Dean with a lethal dose of methamphetamine on January 7, 2019.
These deaths failed to deter him from continuing to distribute methamphetamine, and Buck continued distributing the drug to additional victims, including a man who overdosed twice in Buck’s apartment but survived after receiving immediate medical treatment.
Buck also enticed individuals to travel to California from other states for the purpose of engaging in prostitution through party-and-play sessions. Buck purchased a plane ticket for Moore, who had moved to Texas, so Moore could travel to Los Angeles in July 2017 to party and play at Buck’s apartment. In September 2018, Buck similarly purchased a plane ticket for another victim to fly from Iowa to Los Angeles.
Buck has been in federal custody in this case since his arrest in September 2019.
“This defendant preyed upon vulnerable victims – men who were drug-dependent and often without homes – to feed an obsession that led to death and misery,” said United States Attorney Tracy L. Wilkison. “Mr. Buck continues to pose a clear danger to society, as evidenced by him continuing to lure men to his apartment, even after he killed two men with lethal methamphetamine injections. The sentence imposed today will protect other potential victims and hopefully will bring some solace to the families of two men who needlessly died in Mr. Buck’s apartment.”
“We fight every day, with every drug-related case, to bring justice to the victims and their families,” said DEA Los Angeles Field Division Special Agent in Charge Bill Bodner. “Individuals who knowingly distribute lethal drugs and use them to prey on vulnerable victims will be relentlessly pursued and held accountable. Today’s sentencing illustrates the tireless efforts by investigators and prosecutors to hold predators responsible for their actions.”
“Ed Buck preyed on young black males who were vulnerable, isolated and were often fighting addiction,” said Kristi K. Johnson, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The evidence showed that Buck, in addition to causing the death of two men, also degraded his victims with racial slurs and exploited their circumstances, including homelessness and addiction, to indulge his sexual proclivities. This sentence will effectively remove a predator and hopefully deliver a degree of justice to the families of the victims.”
“As the Sheriff of Los Angeles County, I stand with the victims of crime,” said Los Angeles County Sheriff Alex Villanueva. “This has been a long and very thorough investigation which began with our Los Angeles County Sheriff’s Department Homicide Bureau. Investigators worked tirelessly to put together a fileable case which was ultimately presented to the United States Attorney’s Office. Collectively, Homicide Bureau, with the support of the Organized Crime Drug Enforcement Task Force, and in partnership with the Drug Enforcement Administration and the FBI, the investigation continued. I am especially thankful to the prosecuting Assistant United States Attorneys for their commitment to seek justice for the victims and their families.”
The Drug Enforcement Administration’s Los Angeles Field Division, the FBI and the Los Angeles County Sheriff’s Department investigated this matter.
Assistant United States Attorneys Chelsea Norell of the Violent and Organized Crime Section and Lindsay Bailey of the International Narcotics, Money Laundering, and Racketeering Section prosecuted this case.
East Chicago Man Sentenced to 21 Months in PrisonRead the Press Release
HAMMOND- Marcus Wise, 26 years old, of East Chicago, Indiana, was sentenced by United States District Court Judge Philip P. Simon on his plea of guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Wise was sentenced to 21 months in prison followed by 2 years of supervised release.
According to documents in the case, on August 8, 2020, Wise was stopped by law enforcement in East Chicago, Indiana. At the time, Wise possessed a loaded .380 caliber pistol with an obliterated serial number, and had a prior felony conviction for burglary.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives/High Intensity Drug Trafficking Area Task Force and the East Chicago Police Department. This case was prosecuted by Assistant U.S. Attorney Nicholas J. Padilla.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Dubuque Man Pleads Guilty to Escape from Waterloo FacilityRead the Press Release
A Dubuque man who escaped from the Waterloo Residential Facility where he was in custody for a 2006 drug case pled guilty today in federal court in Cedar Rapids.
Dennis Morris Brown, age 63, from Dubuque, Iowa, was convicted of one count of escape from federal custody.
In a plea agreement, Brown admitted that, in 2006, he was convicted of a federal drug offense and was sentenced to 210 months’ imprisonment and a six-year term of supervised release. Brown had his supervised release revoked in 2021, and, as a new condition of supervised release, he had to serve up to 90 days in a residential reentry center. On March 20, 2022, he was in still serving his 90-day placement in the Waterloo Residential Reentry Facility when he signed out of the facility to go to church and did not return as required. On March 24, 2022, Brown turned himself into the Waterloo Police Department as an escapee.
Sentencing before United States District Court Judge Linda R. Reade will be set in conjunction with a supervised release revocation hearing after a presentence report is prepared. Brown remains in custody of the United States Marshal pending sentencing. Brown faces a possible maximum sentence of 5 years’ imprisonment, a $250,000 fine, and 3 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Patrick Reinert and was investigated by United States Marshals Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 22-CR-2018 and 06-CR-1028.
Follow us on Twitter @USAO_NDIA
Denham Springs Woman Charged with Making and Subscribing False Tax ReturnsRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced that a federal grand jury has returned a three-count indictment charging Lakeisha Grayer, age 40, of Denham Springs, Louisiana, with making and subscribing false tax returns.
The indictment alleges that, on multiple occasions from 2016 to 2018, Grayer made and filed false tax returns for her business by knowingly underreporting the business’s gross receipts for tax years 2015, 2016, and 2017.
This matter is being investigated by the Internal Revenue Service and is being prosecuted by Assistant United States Attorney Harley Ferguson.
NOTE: An indictment is an accusation by a grand jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Dark Web User Known as “the Bull” Admits Guilt and Is Sentenced in Insider Trading SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that APOSTOLOS TROVIAS, a/k/a “The Bull,” pled guilty and was sentenced earlier today to time served, following approximately eleven months in custody, in connection with his scheme to solicit and sell confidential, pre-release earnings, deal, and other information regarding public companies.
According to the allegations in the Indictment, Complaint, statements made in court, and court filings:
Since at least in or about December 2016, APOSTOLOS TROVIAS, who identified himself by the pseudonym “The Bull,” had used websites on the Dark Web and encrypted messaging services to solicit and sell confidential, non-public information about publicly traded companies (“Inside Information”) to enrich himself. TROVIAS’s scheme consisted of multiple related efforts to obtain and monetize confidential nonpublic business information, including the sale of pre-release earnings reports and deal information misappropriated from publicly traded companies.
Further, in or about 2020, TROVIAS took steps to design and build a website to facilitate the purchase and sale of material, non-public information for use in stock trading (the “Inside Information Auction Site”). TROVIAS planned to use the Inside Information Auction Site to enrich himself by charging membership fees and commissions from individuals using the Inside Information Auction Site to engage in the unlawful trade of Inside Information.
* * *
TROVIAS, 30, of Athens, Greece, had been arrested in the Republic of Peru in May 2021 and arrived in the United States by extradition on March 25, 2021. TROVIAS was ordered to pay forfeiture in the amount of $6,700.
Mr. Williams praised the outstanding work of the FBI. Mr. Williams further thanked the U.S. Securities and Exchange Commission and the Internal Revenue Service for their cooperation and assistance in this investigation.
The prosecution of this case is being overseen by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Matthew Podolsky and Andrew Thomas are in charge of the case.
Columbia Woman Sentenced for Meth TraffickingRead the Press Release
JEFFERSON CITY, Mo. – A Columbia, Mo., woman was sentenced in federal court today for methamphetamine trafficking after she received a large package of methamphetamine shipped from California to distribute locally.
Cassiopeia Marie Blaise, 37, was sentenced by U.S. District Judge Stephen R. Bough to eight years in federal prison without parole.
Blaise pleaded guilty on Aug. 31, 2021, to possessing methamphetamine with the intent to distribute. Co-defendant Bryan Patton Tullous, 39, of Columbia, was sentenced on Feb. 11, 2022, to 10 years and 11 months in federal prison without parole after pleading guilty to participating in a conspiracy to distribute methamphetamine.
On April 26, 2019, law enforcement officers intercepted a package from California that had been shipped to the residence shared by Tullous and Blaise. The package contained approximately 5.6 pounds of methamphetamine in five individual packages that weighed approximately one pound (453 grams) each, for a total of 2.209 kilograms of methamphetamine. Officers conducted surveillance of the residence as the package was delivered to the front porch. Both Tullous and Blaise were outside; Blaise retrieved the package and took it inside the residence while Tullous was in a neighbor’s yard. Officers took both of them into custody and executed a search warrant of the residence. Officers found the opened package hidden under clothing at the foot of the bed in the master bedroom.
Officers also found a dozen firearms in various areas of the residence, including a loaded Smith & Wesson .380-caliber pistol laying near the package in the bedroom. In a safe in the garage, officers found a Mossberg .22-caliber rifle, a Snake Charmer 410 shotgun, a Browning .223-caliber rifle, a Bear River .38-caliber revolver, and a Charter Arms .38-caliber revolver. The Snake Charmer 410 shotgun had the stock cut off, making it useable as a pistol grip-type weapon.
Tullous admitted that he ordered the package and paid $12,000 for the methamphetamine.
This case was prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the East Central Drug Task Force, the Drug Enforcement Administration, the Missouri State Highway Patrol and the Columbia, Mo., Police Department.
Citrus County Convicted Felon Sentenced to Two Years for Falsifying Federal Firearm PaperworkRead the Press Release
Ocala, Florida – Senior United States District Judge Gregory A. Presnell has sentenced Darrell Pierre Hopkins (54, Dunnellon) to 24 months in federal prison for making a materially false statement in connection with the purchase of firearms and knowingly causing a licensed gun dealer to maintain false information in its official records. Hopkins entered a guilty plea to the charges on February 2, 2022. He had been indicted on December 15, 2021.
According to the evidence introduced in court, on or about November 23, 2021, Hopkins entered a federally licensed firearm dealer in Crystal River, Florida, and attempted to purchase two handguns. While completing the mandatory firearm transaction paperwork, Hopkins certified that he had not previously been convicted of a felony. A criminal background check, however, revealed that Hopkins had been previously convicted of robbery, conspiracy to deal cocaine, and intimidation. His purchase was denied. When subsequently confronted by law enforcement, Hopkins admitted that he was the person who had attempted to unlawfully purchase the firearms. As a convicted felon, Hopkins is prohibited from possessing firearms or ammunition under federal law.
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.
This case was investigated by the Citrus County Sheriff’s Office, the Florida Department of Law Enforcement, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Chester County Man Sentenced to over 2 ½ Years for Stealing Pandemic Unemployment Assistance Funds While IncarceratedRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Kenneth L. Huggins, Jr., 25, of Coatesville, PA, was sentenced to two years and nine months in prison, and three years of supervised release by United States District Judge Gerald J. Pappert for filing a fraudulent application for pandemic unemployment compensation while he was imprisoned on a state drug trafficking sentence, thus making him ineligible to receive those benefits.
On March 27, 2020, the CARES ACT was enacted and created the Pandemic Unemployment Assistance (“PUA”) program, to provide unemployment benefits to workers who lost their jobs because of the COVID-19 pandemic and who were ineligible for other unemployment compensation.
In December 2021, the defendant pleaded guilty to charges of mail fraud and conspiracy to commit mail fraud stemming from this scheme to file false PUA claims. Beginning in July 2020, Huggins abused the emergency benefit program by arranging to have his mother (co-defendant Patrice Hawthorne) and cousin (co-defendant Dashona Lawrence) submit a fraudulent PUA claim on his behalf. At the time, Huggins was an inmate at Chester County Prison in West Chester, PA, and he had been incarcerated there since before the pandemic began. Huggins also attempted to convince his co-defendants to file fraudulent PUA applications for two of his fellow inmates (who were also ineligible for benefits because they were not unemployed as a result of the pandemic) and planned to keep the vast majority of any funds paid to those inmates for himself. In total, Huggins fraudulently obtained nearly $13,000 in PUA benefits.
“Pandemic Unemployment Assistance funds are intended to help working Americans continue to pay their bills and make ends meet, even when hours and wages have dropped dramatically due to the pandemic,” said U.S. Attorney Williams. “Thieves who attempt to take these funds are taking advantage of others’ misfortune – ripping them off while also ripping off all taxpayers who fund the program. Huggins fraudulently obtained thousands of dollars in funds that could have helped struggling individuals.”
“The job losses from COVID-19 were fast and furious in 2020,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “So many people lost their livelihoods and needed help fast. The Pandemic Unemployment Assistance program was enacted as a safety net, not an ATM for prison inmates seeking easy money. Kenneth Huggins stole thousands of taxpayer dollars to which he knew he wasn’t entitled. Anyone considering doing the same should know this: the FBI is committed to finding and locking up criminals willfully defrauding the federal government.”
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigations, and the U.S. Department of Labor Office of the Inspector General, and is being prosecuted by Assistant United States Attorney Jessica Rice.
Charleston Man Sentenced for Fentanyl Drug CrimesRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced today to five years in prison, to be followed by four years of supervised release, for two counts of possession with intent to distribute fentanyl.
According to court documents and statements made in court, Terrence Ramsey, 36, admitted that law enforcement seized approximately 26 grams fentanyl from the room in a home where he was residing when they arrested him on February 9, 2021. The arrest was on a federal warrant arising from a November 7, 2020, incident on Charleston’s West Side. A 911 call reported a passed-out driver in a stopped vehicle. Responding officers found Ramsey passed out inside a gold Toyota Camry. Ramsey admitted that when he was asked to exit the car, he attempted to flee and in doing so dropped a baggie containing 47 grams of a heroin and fentanyl mixture from the pocket of his hooded sweatshirt.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Charleston Police Department and the United States Marshals Service.
United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Negar M. Kordestani prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-00027.
###
Charleston Man Sentenced for Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced today to six months in prison for being a felon in possession of a firearm.
According to court documents, Emmanuel Lamont Covington, 30, pawned a stolen Bond Arms Texas Defender, .45/.410-caliber Derringer pistol at a Charleston pawn shop on June 23, 2020.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Covington admitted that he knew he was prohibited from possessing a firearm because of his 2015 felony conviction in Kanawha County Circuit Court for conspiracy to distribute heroin.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorneys Julie M. White and Ryan A. Keefe prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-00128.
###
Charleston Man Charged with Possession of Child Sexual Abuse MaterialRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Daniel Blow, 39, of Charleston, Vermont was arrested yesterday during the execution of a search warrant at his residence. Blow was charged today by criminal complaint with possession of child pornography, also referred to as child sexual abuse material. Blow is scheduled to appear tomorrow before United States Magistrate Judge Kevin J. Doyle.
According to court records, a social media company reported to the National Center for Missing and Exploited Children (NCMEC) that a user had uploaded 41 files of suspected child sexual abuse material. NCMEC referred the tip to the Vermont Internet Crimes Against Children Task Force. Records from the social media company provided IP address information for the user which corresponded to the residence of Daniel Blow in Charleston. A check of Blow’s criminal history revealed a prior felony conviction in New York State for possessing a sexual performance by a child less than 16 years of age. Agents with Homeland Security Investigations conducted additional investigation and obtained a federal search warrant for Blow’s residence. During the execution of the search warrant, a Vermont State Police forensic examiner discovered images of child sexual abuse material on Blow’s cellular phone and his desktop computer. On a small video recording device, agents discovered a covertly recorded video of a teenage child changing clothes, with Blow visible at the beginning of the video while hiding the camera, and at the end of the video while retrieving the camera. In addition, agents seized multiple rifles and shotguns from Blow’s residence, including an M-4 style Colt rifle.
The United States Attorney’s Office emphasizes that a criminal complaint contains allegations only and that Blow is presumed innocent until and unless convicted of a crime. Due to his prior conviction, Blow faces a sentence of between 10 and 20 years of imprisonment on the current charges.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of Homeland Security Investigations, the Vermont Internet Crimes Against Children Task Force, and the Vermont State Police. He also thanked the Orleans County Sheriff’s Department for their assistance in the search of Blow’s residence and his subsequent arrest.
The prosecutor is Assistant United States Attorney Jonathan Ophardt. Blow is represented by the Federal Public Defender.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and Child Exploitation Obscenity Section, Criminal Division (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Canton Man Arrested for Sex Trafficking a MinorRead the Press Release
BOSTON – A Canton was arrested yesterday in connection with sex trafficking a minor.
Keion Rowell, 23, was indicted on one count of sex trafficking of a child and one count of conspiracy to commit sex trafficking of a minor. Following an initial appearance in federal court in Boston today before U.S. District Court Magistrate Judge Marianne B. Bowler, Rowell was detained pending an arraignment and detention hearing scheduled for April 19, 2022.
“We believe that this defendant preyed on, groomed, and advertised a vulnerable 15-year-old girl, a child, for commercial sex – profiting off his exploitation,” said United States Attorney Rachael S. Rollins. “This case is an unfortunate reminder that sex trafficking knows no limits. It can reach any community and target victims of all ages. My office and our law enforcement partners remain diligent in our efforts to prevent the targeted exploitation and harming of our most vulnerable.”
“The facts alleged in this case are gut-wrenching. No person, let alone a child, should ever be treated as a commodity, and sold for sex, but Keion Rowell is accused of doing exactly that,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Child sex traffickers often prey upon our community’s most vulnerable minors – runaways, foster kids, children who face difficult circumstances – promising their young victims that they will receive care and support when that couldn’t be further from the truth. Their sole focus is on exploiting them for their own personal gain which is why FBI Boston’s Child Exploitation – Human Trafficking Task Force will continue to do everything it can to ensure children recovered from this kind of exploitation receive the services they need to move forward with their lives, and their traffickers are brought to justice.”
According to the indictment, on Jan. 28, 2021, agents recovered a 15-year-old girl who had been reported missing approximately 10 to 14 days previously after she left her home in a suburb of Boston. It is alleged that the victim’s phone contained nude and revealing photos of the victim, online advertisements for commercial sex that included pictures of the victim, as well as Venmo and Cash App accounts registered to Rowell. Rowell allegedly opened an online “Meet Me” account for the victim that advertised commercial sex with the victim and instructed the victim on how much she should charge. It is further alleged that the Rowell required the victim to engage in commercial sex acts multiple times and took the proceeds.
Members of the public who believe they may be a victim of this alleged crime should contact [email protected].
The charge of sex trafficking of a child provides for a mandatory minimum sentence of 10 years and up to life in prison, five years of supervised release and a fine of $250,000. The charge of conspiracy to commit sex trafficking of a child provides for a sentence of up to life in prison, five years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Rollins and FBI SAC Bonavolonta made the announcement today. Valuable assistance was provided by the Boston and Randolph Police Departments and the Massachusetts State Police. Assistant U.S. Attorney Evan Gotlob of Rollins’ Civil Rights Enforcement Team is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Canadian Man Charged with Eluding Inspection at the Peace BridgeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Pawel Aleksander Grodkowski, 53, of Fort Erie, Ontario, Canada, was arrested and charged by criminal complaint with eluding examination or inspection by immigration officers. The charge carries a maximum penalty of six months in prison.
Assistant U.S. Attorney Charles M. Kruly, who is handling the case, stated that according to the complaint, at 8:50 a.m., on April 14, 2022, Grodkowski was observed on a security video monitor kneeling down on the pedestrian walkway on the U.S. side of Peace Bridge Port of Entry. Two Customs and Border Protection officers approached Grodkowski and noticed a pair of wire cutters protruding from a bag he was carrying. Grodkowski was escorted to secondary for further inspection and subsequently arrested. Security video showed Grodkowski climbing a security fence and cutting three separate stands of barbed wire. A search of Grodkowski’s bag recovered a pair of wire cutters.
The complaint further states that Grodkowski also entered the U.S. in a similar fashion in August and September of 2021. Wire cutters were also discovered on the Peace Bridge pedestrian walkway by CBP officers during those months.
The complaint is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
# # # #
California Parents Sentenced in College Admissions CaseRead the Press Release
BOSTON – Two Silicon Valley parents were sentenced today in federal court in Boston in connection with their involvement in the college admissions case.
Gregory Colburn, M.D., 65, and Amy Colburn, 53, of Palo Alto, Calif., were each sentenced by U.S. District Court Judge Nathaniel M. Gorton to eight weeks in prison, one year of supervised release, 100 hours of community service and ordered to pay a fine in the amount of $12,500. On Dec. 7, 2021, the Colburns pleaded guilty to one count each of conspiracy to commit mail and wire fraud and honest services mail and wire fraud.
The Colburns conspired with William “Rick” Singer and others to defraud The College Board by agreeing to cheat on their son’s SAT exam. As part of the scheme, the Colburns paid Singer $25,000 in the form of purported donations to Singer’s sham charity, the Key Worldwide Foundation. In exchange, Singer bribed Igor Dvorskiy, a corrupt test administrator, to allow Mark Riddell, a corrupt test “proctor,” to secretly correct the Colburns’ son’s SAT exam answers to obtain a fraudulently inflated score.
On April 8, 2022, Riddell was sentenced to four months in prison and two years of supervised release. Riddell was also ordered to pay a $1,000 fine and forfeit $239,449. Singer and Dvorskiy previously pleaded guilty and are awaiting sentencing.
Gregory Colburn and Amy Colburn are the 33rd and 34th parents to be sentenced in the college admissions case.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Mark Deckett, Resident Agent in Charge of the Department of Education, Office of Inspector General made the announcement today. Assistant U.S. Attorneys Stephen E. Frank, Kristen A. Kearney, Ian J. Stearns and Leslie Wright of Rollins’ Securities, Financial & Cyber Fraud Unit prosecuted the case.
California Man Pleads Guilty to Interstate Transmission of Threats Against Local United States CongressmanRead the Press Release
PENSACOLA, FLORIDA – Eugene Huelsman, 59, of Thousand Oaks, California, pled guilty today to one count of transmission of a threat in interstate commerce. The plea was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
During the plea hearing, Huelsman admitted that, on January 9, 2021, he telephoned United States Congressman Matthew Gaetz’s congressional district office in Pensacola. When no one answered, Huelsman left a profanity laced voicemail threatening to kill Congressman Gaetz. This included threatening to “put a bullet in” Congressman Gaetz and members of his family.
The United States Capitol Police were contacted when the threat was made, which triggered security protocols related to the victim. The investigation revealed this was not the first time Huelsman made threats involving political figures. Huelsman had previously been investigated for threatening a member of a former President’s family via social media.
Sentencing is currently set for June 30, 2022, at 1:00 p.m., at the United States Courthouse in Pensacola before the Honorable United States District Judge T.K. Wetherell, II. Huelsman faces up to five years’ imprisonment and a $250,000 fine.
The case was investigated by the United States Capitol Police and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys David L. Goldberg and Lazaro P. Fields.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
California Man Arrested for Sexually Exploiting a ChildRead the Press Release
BOSTON – A California man was arrested this morning and charged with surreptitiously filming an 11-year-old Massachusetts girl changing in her bedroom in March 2021.
Jacob Guerrero, 23, of Woodland, Calif., was charged with one count of sexually exploiting a child. Guerrero was arrested this morning in California and will appear in federal court in the Eastern District of California this afternoon. He will appear in federal court in Boston at a later date.
According to the charging document, on or about March 17, 2021, Guerrero recorded a video of an unclothed 11-year-old girl while she changed in her bedroom at her home in Norfolk, Mass. Guerrero allegedly climbed to the top of a garage attached to the victim’s home and stood just outside the victim’s second floor bedroom window as she changed. In the two weeks leading up to that recording, it is further alleged that Guerrero conducted surveillance of the victim’s home and made notes on his phone regarding the time of day that the victim and her siblings arrived home, showered and changed clothes each night. Guerrero allegedly recorded similar notes for several other Massachusetts homes.
According to the charging document, this case arose following an investigation into allegations that Guerrero, while dressed in a wig and women’s clothing, attempted to surreptitiously record minor females in bathrooms and changing rooms at the Wrentham Outlets using pen cameras affixed to his shoes.
Members of the public who have questions, concerns, or information regarding this case should call 617-748-3274.
The charge of sexually exploiting a child provides for a mandatory minimum sentence of at least 15 years and up to 30 years in prison, at least five years and up to a lifetime of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Wrentham Police Chief William McGrath made the announcement today. Special assistance was provided by the Norfolk District Attorney’s Office. Assistant U.S. Attorney Mark Grady, Deputy Chief of Rollins’ Major Crimes Unit, is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Caldwell Police Lieutenant Indicted on Federal Civil Rights Charges for Using Excessive Force During an ArrestRead the Press Release
BOISE – A federal grand jury in Boise returned a superseding indictment on April 13, 2022, charging Joseph Alan Hoadley, 42, a Lieutenant with the Caldwell Police Department, with using excessive force against an arrestee and writing a false report about his use of force against that arrestee.
The superseding indictment alleges that on March 30, 2017, Hoadley, a ranking Lieutenant and Police Officer with the Caldwell Police Department, deprived a person of their right to be free from the use of unreasonable force during arrest when Hoadley struck the person, who is identified in the superseding indictment only as B.H., resulting in bodily injury to B.H. The superseding indictment further alleges that Hoadley falsified records to cover up the misconduct.
Hoadley is scheduled to be arraigned on the charges on April 19, 2022, at 1:00 p.m., before U.S. Magistrate Judge Raymond E. Patricco, at the U.S. Courthouse in Boise, Idaho.
If convicted, Hoadley faces a maximum penalty of ten years in federal prison for the deprivation-of-rights offense and a maximum penalty of twenty years in federal prison for the false-report offense.
U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the efforts of the Federal Bureau of Investigation, which led to charges. If members of the public have information concerning these crimes or wish to report a similar crime, they should contact the Federal Bureau of Investigation at (208) 344-7843.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
###
Buffalo Man Already Charged with Selling Drugs That Led to A Death Indicted on New Charges of Sex Trafficking MinorsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that a federal grand jury has returned an indictment charging Steven Gonzalez a/k/a Steven Hernandez, a/k/a Steve, a/k/a Stevie, a/k/a Unc, 43, of Buffalo, NY, with conspiracy to commit sex trafficking, sex trafficking of a minor, sex trafficking by coercion, conspiracy to distribute controlled substances, and possession with intent to distribute and distribution of controlled substances. The charges carry a mandatory minimum penalty of 15 years in prison and a maximum of life.
Assistant U.S. Attorneys Joshua A. Violanti, Misha A. Coulson, and Joseph M. Tripi, who are handling the case stated that according to the indictment, between 2012, and March 2015, Gonzalez conspired with others to coerce, with use of force or threats of force, two minors identified as A.N. and B.E., to engage in sex trafficking. In addition, between 2006 and November 2018, Hernandez is accused of conspiring with others to sell controlled substances, including marijuana, heroin, cocaine, and crack cocaine.
Gonzalez was previously indicted in May 2020, on charges of distribution of heroin, fentanyl, and acetyl fentanyl causing death; conspiracy to possess with intent to distribute heroin, fentanyl, and acetyl fentanyl; possessing with intent to distribute heroin; and using and maintaining a drug involved premises. Those charges remain pending.
The indictment is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia, and the Drug Enforcement Administration, under the direction of Acting Special Agent-in-Charge Timothy Foley, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
# # # #
Brooklyn Man Arrested for Arson of Rash NightclubRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging John Lhota with the April 3, 2022 arson of Rash, a bar and nightclub in Bushwick frequented by members of the LGBTQ+ community. Lhota was arrested yesterday and will make his initial appearance this afternoon before United States Magistrate Judge Roanne L. Mann.
Breon Peace, United States Attorney for the Eastern District of New York; John B. DeVito, Special Agent-in-Charge, U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and Laura Kavanagh, Acting Commissioner, New York City Fire Department (FDNY), announced the arrest and charge.
“As alleged, Lhota deliberately set fire to a bar and nightclub patronized by members of the LGBTQ+ community, seriously injuring two of its employees, and endangering all present including the tenants of the building as well as the first responders who battled the blaze for approximately one hour,” stated United States Attorney Peace. “This Office strongly condemns such acts of violence, and will vigorously prosecute this case. The victims, and all LGBTQ+ New Yorkers, should be able to enjoy their nights out in peace and without fear of such a dangerous attack.”
Mr. Peace praised the Special Agents, Fire Marshals and Detectives of the Arson and Explosives Task Force for their outstanding investigative work on the case.
“Arson is a violent crime that impacts all New Yorkers. The prompt investigation leading to the arrest of Lhota demonstrates the commitment of the Arson and Explosive (A&E) Task Force to rapidly apprehend and bring to justice those who violently attack members of our community. ATF and its partners at FDNY and NYPD hope for the quick and full recovery of the victims,” stated Special Agent-in-Charge DeVito.
“This was a brazen act of arson that seriously injured two people, placed the lives of residents and dozens of Firefighters in grave danger, and struck fear throughout an entire community,” said Acting Fire Commissioner Laura Kavanagh. “I commend our Fire Marshals for their outstanding work alongside members of the NYPD and ATF to apprehend this dangerous individual.”
As set forth in the complaint, on the evening of April 3, 2022, Lhota was captured on security video purchasing a red gas canister at a service station and filling it with gasoline. Lhota then proceeded to Rash, located on the ground floor of a multi-story building at 941 Willoughby Avenue, where he allegedly poured gasoline over the floor of the bar. The video showed Lhota tossing a lit cigarette on the floor, but the gasoline did not ignite. Lhota then used a cigarette lighter to ignite the gasoline, causing an explosion and a fire. The floors above Rash contain residential apartments. Firefighters responded to the location and extinguished the blaze. Two employees of Rash were injured and required hospitalization. The building sustained heavy damage due to the fire. Security video captured Lhota fleeing the burning nightclub.
The charge in the complaint is an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted, Lhota faces a mandatory minimum sentence of 7 years’ imprisonment, and a maximum of 40 years’ imprisonment.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney John O. Enright is in charge of the prosecution.
The Defendant:
JOHN LHOTA
Age: 24
Brooklyn, New YorkE.D.N.Y. Docket No. 22-MJ-408
Bronx Man Sentenced to over Nine Years in Prison for Coordinating Armed Home Invasion RobberyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that OSCAR RIOS, a/k/a “Oski,” was sentenced to 115 months in prison for his coordination of an August 29, 2020 armed home invasion robbery in the Bronx, New York. RIOS pled guilty to one count of conspiracy to commit Hobbs Act robbery on October 6, 2021 before U.S. District Judge John P. Cronan, who imposed today’s sentence.
RIOS’s co-defendants, SHAWN GARCIA, a/k/a “Ralph Porter,” and SUTHA TAYLOR, a/k/a “Sutha Colon,” carried out the robbery and also pled guilty to conspiracy to commit Hobbs Act robbery. GARCIA and TAYLOR were previously sentenced to 96 months and 121 months in prison, respectively.
U.S. Attorney Damian Williams said: “Oscar Rios coordinated a violent home invasion robbery that resulted in one victim being shot and another victim being threatened at gunpoint. The sentences imposed in this case send a clear message that those who plan and carry out such violent crimes will pay a heavy price.”
According to public filings and statements made in court:
On or about August 29, 2020, RIOS orchestrated an armed home invasion robbery of an apartment in the Bronx, New York (the “Apartment”), which co-defendants GARCIA and TAYLOR, along with a third co-conspirator (“CC-3”), carried out. Shortly before the robbery took place, RIOS communicated with other uncharged co-conspirators to lure a resident (“Victim-1”) out of the Apartment. Once RIOS learned that Victim-1 was about to leave, he informed GARCIA and TAYLOR via text message to commit the robbery.
When Victim-1 opened the door to the Apartment, GARCIA, TAYLOR, and CC-3 ran into the Apartment and physically assaulted Victim-1, including by striking Victim-1 in the head several times with at least one firearm. During this time, RIOS remained in a nearby building to serve as a lookout. While the assault on Victim-1 was in progress, another resident of the Apartment (“Victim-2”) was thrown into the bathroom and ordered to remain there. Victim-1 was then shot in the buttocks. After the shooting, one of the robbers placed a dark garment over Victim-2’s head and demanded to know where Victim-1 kept his safe, which contained proceeds from Victim-1’s marijuana sales. Shortly thereafter, RIOS texted GARCIA and TAYLOR to inform them that the area was clear for them to flee. GARCIA, TAYLOR, and CC-3 then fled the Apartment, stealing a safe with cash proceeds from Victim-1’s marijuana sales, as well as other items found in the Apartment.
As a result of the assault and shooting, Victim-1 was hospitalized for several days.
* * *
In addition to the prison term, RIOS, 28, of the Bronx, New York, was sentenced to three years of supervised release.
Mr. Williams praised the outstanding investigative work of the ATF and NYPD, in particular, the Strategic Patterned Armed Robbery Technical Apprehension (“SPARTA”) Task Force, which is composed of agents and officers of the ATF and the NYPD.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney David J. Robles is in charge of the prosecution.
Bloomington Man Sentenced to 30 Months in Prison for Illegal Possession of a FirearmRead the Press Release
PEORIA, Ill. – A Bloomington, Illinois, man, Jose Luis Arizmendi-Romero, 33, of the 800 block of East Wood Street, was sentenced today to 30 months’ imprisonment for possessing a firearm as an undocumented immigrant.
According to court documents, Bloomington Police, knowing there was an outstanding arrest warrant against Arizmendi-Romero, attempted a traffic stop on June 23, 2021. Arizmendi-Romero backed his car into a police car and then sped away, eventually crashing his car. He later returned to his residence, and police obtained a search warrant. The search uncovered a 9-millimeter handgun and 52 rounds of 9-millimeter ammunition along with drug paraphernalia.
At the sentencing hearing, U.S. District Court Judge James E. Shadid noted the danger inherent in the possession of firearms combined with drug activity. Judge Shadid also found that Arizmendi-Romero obstructed justice when he fled from officers and that his reckless flight created a substantial risk of serious injury.
Arizmendi-Romero was indicted on the federal charge of possession of a firearm by an alien illegally in the United States in October 2021 and pleaded guilty to the charge in December 2021. He has been in the custody of the U.S. Marshals since his indictment.
The statutory penalties for the offense are up to 10 years’ imprisonment and up to three years of supervised release, along with forfeiture of the handgun.
The Bloomington Police Department and the U.S Immigration and Customs Enforcement Homeland Security Investigations investigated the case with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Keith Hollingshead-Cook represented the government in the prosecution.
The case against Arizmendi-Romero 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.
Alabama Man Charged with Defrauding Jefferson County Retirement PlanRead the Press Release
BIRMINGHAM, Ala. – An Alabama man has been charged with devising a scheme to defraud Jefferson County’s retirement plan, announced U.S. Attorney Prim F. Escalona, Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr.
An information filed today in United States District Court charges GARY DEAN GIBBS, JR., 52, with one count of wire fraud. According to the information, Gibbs’ father was a former employee of Jefferson County, Alabama, who was receiving benefits from The General Retirement System for Employees of Jefferson County (“GRS”). GRS is a retirement plan that provides benefits to retired and disabled employees of Jefferson County, Alabama. The information alleges that, beginning in September 2017 and continuing until February 2022, Gibbs concealed his father’s death from GRS and collected money from GRS to which he was not entitled. According to the information Gibbs used his father’s personal identifiers and forged his father’s signature on documents submitted to GRS to further his scheme. Additionally, the information alleges that Gibbs assumed his father’s identity during telephone calls with a GRS employee.
According to a plea agreement, also filed today, Gibbs agreed to plead guilty to the information. The plea agreement states that Gibbs collected approximately $132,646.12 to which he was not entitled.
The maximum penalty for wire fraud is 20 years in prison and a $250,000 fine.
The FBI investigated the case along with the Jefferson County Sheriff’s Office. Assistant United States Attorney George Martin is prosecuting the case.
An information contains only charges. A defendant is presumed innocent unless and until proven guilty.
Acoma Pueblo man pleads guilty to failure to update sex offender registrationRead the Press Release
ALBUQUERQUE, N.M. – Eric Chino, 39, of Albuquerque, and an enrolled member of the Acoma Pueblo, pleaded guilty today in federal court to failing to update his registration as a sex offender. Chino will remain in custody pending sentencing, which has not been scheduled.
A federal grand jury indicted Chino on April 14, 2021. According to the plea agreement and other court records, Chino pleaded guilty on March 12, 2015, to sexually assaulting an Acoma Pueblo woman on June 24, 2012, on the Acoma Pueblo in Cibola County, New Mexico. On June 17, 2015, Chino was sentenced to three years in prison. His sentence also required him to register as a sex offender.
In his plea agreement today, Chino acknowledged that he was aware of the requirement to register as a sex offender. Chino admitted that from Oct. 26, 2019, through Jan. 5, 2021, he failed to update his registration as required by law.
By the terms of the plea agreement, Chino faces 15 months in prison.
The United States Marshals Service investigated this case with assistance from U.S. Probation and Pretrial Services. Special Assistant United States Attorney Chelsea N. Van Deventer is prosecuting the case.
# # #
Wednesday 13 April 2022
Youngstown Man Sentenced to More Than 21 Years in Prison After Pleading Guilty to Sexual Exploitation of a ChildRead the Press Release
Acting U.S. Attorney Michelle M. Baeppler announced that Andrew Samuel Davis Strickland, 27, of Youngstown, Ohio, was sentenced on Tuesday, April 12, 2022, by U.S. Judge Patricia A. Gaughan to more than 21 years, or 262 months, in prison and ten years of supervised release after Strickland pleaded guilty to sexual exploitation of a child.
“This defendant engaged in reprehensible behavior and perpetrated unspeakable crimes against the most vulnerable of victims,” said Acting U.S. Attorney Michelle M. Baeppler. “This lengthy sentence reflects our commitment to protecting vulnerable victims and punishing individuals who engage in this type of conduct.”
“Coercing and threatening children through social media and further, the sexual exploitation of a child, is callous and repulsive,” said FBI Special Agent in Charge Eric B. Smith. “The cooperative efforts among federal, state, and local partners made it possible to bring a devious predator to justice. The FBI will continue to work collaboratively to combine our resources and share our expertise to identify those who commit these appalling crimes.”According to court documents, in July of 2019, law enforcement officials began an investigation into Strickland after learning that Strickland coerced two minors into engaging in and filming a sexually explicit encounter.
Court documents state that Strickland met one of the victims through Facebook and coerced the victim into providing sexually explicit images. After receiving the images, Strickland then threatened to send the images to the victim’s family members if the victim did not give in to his demands. Additionally, Strickland coerced the victim into engaging in and recording a sexual encounter, which was perpetrated on a second minor victim. Strickland then sent the recording to other members of the first victim’s family.
According to court records, the victim complied with Strickland’s demands out of fear that Strickland would harm the victim or the victim’s family members.
This case was investigated by the Trumbull County Sheriff’s Office, the Federal Bureau of Investigation, Ohio Bureau of Criminal Investigation-Crimes Against Children and the Mahoning Valley Violent Crimes Task Force. This case was prosecuted by Assistant United States Attorneys Michael A. Sullivan and Yasmine T. Makridis.
Woman Sentenced to More Than 18 Years in Prison for her Role in Dothan Truck Bombing Targeting a Former BoyfriendRead the Press Release
Montgomery, Alabama – On Tuesday, April 12, 2022, Ashley Nicole Haydt, 36, from Taylor, Alabama, was sentenced to 220 months in federal prison for her role in instigating a Dothan truck bombing that targeted a former boyfriend and father to one of her children, announced U.S. Attorney Sandra J. Stewart. Following her prison sentence, Haydt will serve three years of supervised release. There is no parole in the federal system.
According to court records and evidence presented at her trial, in 2017, Haydt worked at Wiregrass Rehabilitation Center in Dothan with Sylvio Joseph King. The two became friends and Haydt told King about the troubled relationship she was having with her long-time boyfriend and father of her unborn child. Haydt was distraught because her boyfriend would not agree to marry her and that he ultimately ended their relationship. In June 2017, their child was born, and the ex-boyfriend filed for custody soon after. The jury saw numerous texts from Haydt to King during this time where she villainized her ex-boyfriend and she repeatedly expressed concern over losing custody of her infant child. Haydt told King that her life would be better if the ex-boyfriend were out of the picture. Those texts continued for several weeks until Haydt suggested they begin using an alternate app called Snapchat to communicate. One of the principal features of Snapchat is that pictures and messages are usually only available for a short time before they become inaccessible to their recipients.
With Haydt’s ongoing encouragement to eliminate her ex-boyfriend, King began to purchase materials needed to construct a pipe bomb. Haydt provided King with her ex-boyfriend’s address and, in the early morning hours of October 23, 2017, King placed the explosive device in the ex-boyfriend’s work truck that was parked at his home. King detonated the bomb while the ex-boyfriend was driving to work. Shrapnel from the device was blasted into the ex-boyfriend’s back and hip area, but thanks to the actions of a passing motorist and first responders, he survived. After the explosion, King sent Haydt a message that read, “boom, I felt that from 120 feet away.”
Law enforcement quickly became suspicious of Haydt’s involvement in the crime. Haydt gave numerous conflicting statements during multiple interviews and, when agents checked her cell phone, they discovered she had deleted text messages she exchanged with King the day of the bombing and before. She had also deleted the Snapchat app. However, significant evidence of their prior communications remained on King’s phone. King also testified during the trial confirming Haydt’s involvement. After the four-day trial, the jury found Haydt guilty of conspiracy, malicious use of an explosive, and concealing the commission of a felony. King was sentenced on November 4, 2021, to 108 months in prison for his role in the bombing.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Houston County Sheriff’s Office, the Dothan Police Department, and the Alabama Law Enforcement Agency (ALEA), with assistance from the Federal Bureau of Investigation (FBI) and the Alabama Fire Marshal’s Office. Assistant United States Attorneys Brandon W. Bates and B. Chelsea Phillips prosecuted the case.
Woman Pleads Guilty to Pandemic Related FraudRead the Press Release
ABINGDON, Va. – A Southwest Virginia woman, who collaborated with more than 30 others in a scheme to cheat the government out of more than $499,000 in unemployment benefits, pleaded guilty this week to one count of conspiracy to defraud the government, one count of conspiracy to commit mail fraud, and one count of conspiracy to obstruct justice.
According to court documents, over the course of nine months, Veronica Mullins, 48, of Pound, VA, conspired with Leelynn Danielle Chytka, Gregory Tackett, Jeffery Tackett, and others to commit fraud against the United States in connection with the filing of fraudulent claims for pandemic unemployment benefits on behalf of at least 37 individuals via the Virginia Employment Commission [VEC] website, with a total actual loss to the United States of at least $499,000.
Specifically, in June 2020, Mullins approached Chytka and asked her for help with filing for fraudulent unemployment benefits. In addition to illegally attempting to gain unentitled benefits for herself, Mullins also provided the personally identifiable information for other individuals, including those of her children, each of whom was also ineligible to receive pandemic-related benefits. When questioned by investigators, Mullins lied about her knowledge of the larger scheme and her role in it.
United States Attorney Christopher R. Kavanaugh of the Western District of Virginia, Special Agent-in-Charge Syreeta Scott, Philadelphia Regional Office, U.S. Department of Labor - Office of Inspector General, and Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service – Criminal Investigation Washington, D.C., Field Office made the announcement.
Chytka, the mastermind behind the scheme, was sentenced to nine years in prison.
To date, the following co-conspirators have been sentenced as part of the investigation:
- Jimmy Barnette- 24 months
- George Buckles- 30 months
- Joshua Carroll- 24 months
- Darrell Davis- 18 months
- Melinda Davis – 18 months
- Misty Evans – 12 months
- Eugene Grizzle- 12 months
- Ryan Grizzle – 5 months
- Melissa Hayes – 24 months
- Jacob Hicks – 30 months
- Timothy Hileman- 30 months
- Ajay Johnson – 30 months
- John C. Johnson Jr. – 18 months
- Randall Johnson – 24 months
- Jared Mitchell – 24 months
- Curtis E. Mullins – 12 months
- Eric B. Mullins – 30 months
- Steven J. Mullins – 27 months
- Patrick Payne – 24 months
- Jeremy Short – 27 months
- Gregory Tackett – 108 months
- Jeffery Tackett – 102 months
- Larry Whited – 18 months
- Jeffrey Wiseman – 24 months
The Department of Labor - Office of the Inspector General, the Internal Revenue Service – Criminal Investigation Washington, D.C., Field Office, the Norton Police Department, and the Russell County Sheriff’s Office investigated the case.
Assistant United States Attorneys Daniel J. Murphy and Lena L. Busscher are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Wilson Man Sentenced to More Than 9 Years in Prison for Armed Robbery and Shooting During One-Day Crime SpreeRead the Press Release
RALEIGH, N.C. – A Wilson man was sentenced today to 110 months in prison after stealing a firearm, robbing a man at gunpoint, and shooting at another man all on one day. On September 2, 2021, Gregory Antawn Joyner pled guilty to Possession of a Firearm as a Convicted Felon.
According to court documents and other information presented in court, on the morning of September 25, 2020, the Wilson Police Department received information from an eyewitness who observed Joyner, 32, steal a loaded .40 caliber semi-automatic handgun with an extended magazine from a parked vehicle on Emory Street in Wilson, North Carolina.
That afternoon, as Wilson Police were investigating the firearm theft from Emory Street, they received a call of an armed robbery at the Jubair Mart on Tarboro Street in Wilson. After interviewing witnesses, Wilson Police reviewed the store’s surveillance footage, which showed Joyner robbing a man of $20 at gunpoint and threatening to kill him. Joyner fled the store on foot.
Several hours after the robbery, Wilson Police officers responded to a Shots Fired call on Dewey Street. When officers arrived, they observed Joyner still at the scene. Joyner was armed and again attempted to flee. Ultimately, Wilson Police officers detained Joyner and placed him into custody. On Joyner’s person, officers recovered the stolen .40 caliber handgun. The extended magazine was loaded with 20 rounds of ammunition. Officers also recovered a spent shell casing.
Multiple witnesses on scene informed police they observed Joyner initiate an armed struggle with a male victim. During this struggle, Joyner discharged his firearm at the male victim, but did not strike him. Joyner attempted to fire a second shot, but the gun jammed and failed to eject the round. At that point, another witness joined the struggle to subdue Joyner and assisted in wrestling the gun away from Joyner. The first male victim successfully secured the firearm from Joyner and attempted to leave in his vehicle. Joyner jumped onto the victim’s vehicle and refused to let go as the victim drove off. Eventually, the victim tossed the handgun back out the window to Joyner, who let go of the vehicle and retrieved the firearm. Joyner attempted to flee the area moments before Wilson Police arrived and apprehended him.
U.S. Attorney Easley commented: “Gregory Joyner was a one-man crime wave. The sentence the Court imposed today was just and fair. Every day that Joyner spends in federal prison is a safer day for the people of Wilson. The United States Attorney’s Office for the Eastern District of North Carolina stands ready to assist our local law enforcement partners in protecting the community from violent offenders like Joyner.”
Michael F. Easley, Jr., United States Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Wilson Police Department investigated the case and Assistant U.S. Attorney Aakash Singh prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:21-CR-160-BO.
Wildasin to Remain as U.S. AttorneyRead the Press Release
NASHVILLE – Under the provisions of federal statutes governing the filling of vacancies for the position of United States Attorney, Mark H. Wildasin was sworn in today by Chief U.S. District Judge Waverly D. Crenshaw, Jr. as the U.S. Attorney for the Middle District of Tennessee, effective April 25, 2022. 28 U.S.C. § 546, and the Vacancies Reform Act, establish provisions for filling the position of U.S. Attorney, absent a nomination by the President and a Senate-confirmed appointment. Mr. Wildasin will remain the U.S. Attorney until the Senate confirms his successor.
Mr. Wildasin was previously appointed by Attorney General Merrick B. Garland to be the United States Attorney on December 26, 2021, after serving as the Acting United States Attorney since November 7, 2021. The appointment by the Attorney General expires on April 24, 2022.
“I am honored to have the opportunity to continue to serve as the U.S. Attorney for the Middle District of Tennessee,” said U.S. Attorney Wildasin. “For the past 16 years I have had the distinct privilege of working alongside some of the nation’s most dedicated public servants and I look forward to continuing to lead this office in our mission of seeking justice for our citizens.”
Mr. Wildasin previously served as the Chief of the Civil Division in the United States Attorney’s Office since January 2006 and has been responsible for defending and prosecuting cases and managing all civil litigation in which the United States or one of its agencies is a party in the Middle District of Tennessee, including affirmative civil enforcement, defensive litigation, bankruptcy, asset forfeiture, immigration, and collections.
In addition to his work as the Civil Chief, from 2009 to 2011 and 2019 to 2021, Mr. Wildasin was appointed to the Civil Chiefs’ Working Group, which advises and reports to the Attorney General’s Advisory Committee on issues relevant to Civil Assistant United States Attorneys throughout the country.
Mr. Wildasin was a member of the Standby Component of the State Department’s Civilian Response Corps (CRC) from 2009 to 2011. The CRC was created to implement the United States’ whole of government approach to stabilization and reconstruction missions. As a CRC Standby member, Mr. Wildasin obtained training in stabilization and conflict resolution to support security and justice in host nations emerging from conflict.
From October 2011 through September 2012, Mr. Wildasin was detailed through the Office of the Deputy Attorney General as an Attorney Advisor in the Office of the Justice Attaché in the United States Embassy in Baghdad, Iraq, to work on Rule of Law issues, including assisting in the prosecution of terror suspects in U.S. interest cases, training Iraqi judges and police inspectors on the newly enacted anti-Human Trafficking Law, working on land reform issues, and otherwise liaising with the Iraqi Ministry of Justice, Iraqi judiciary, and European Union counterparts.
Mr. Wildasin is a graduate of Duke University and Vanderbilt University School of Law. Immediately after law school, he was a law clerk for United States District Judge Thomas A. Higgins in the Middle District of Tennessee. Prior to joining the United States Attorney’s Office, Mr. Wildasin practiced law in San Francisco with Coudert Brothers and in Nashville with Waller Lansden Dortch & Davis.
He previously served as the Attorney General appointed United States Attorney in 2017.
# # # # #
Waterbury Heroin Distributor Sentenced to 18 Months in Federal PrisonRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that KEON COUNCIL, 44, of Waterbury, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 18 months of imprisonment, followed by three years of supervised release, for distributing heroin.
According to court documents and statements made in court, in May 2020, the DEA New Haven Task Force and Waterbury Police Department began an investigation into a drug trafficking organization that was distributing large amounts of heroin, cocaine and crack in the Waterbury area. The investigation included court-authorized wiretaps on multiple phones used by members of the organization, physical surveillance, controlled purchases of narcotics, and motor vehicle stops that resulted in the seizure of drugs. In November and December 2020, Council was intercepted multiple times on a wiretap ordering distribution quantities of heroin from James Grant, also known as “Bobo,” “Bo,” and “Jimbo,” Council then sold the drugs to his own customers.
On March 1, 2021, a federal grand jury in New Haven returned an indictment charging Council, Grant and 15 others. On December 10, 2021, Council pleaded guilty to one count of conspiracy to distribute heroin.
Council has been detained since his arrest on March 3, 2021. On that date, law enforcement executed seven search warrants and seized approximately 40,000 bags of suspected heroin, 350 grams of cocaine and 50 grams of crack cocaine, and nine firearms
Grant pleaded guilty and awaits sentencing.
This investigation has been conducted by the Drug Enforcement Administration New Haven Task Force and the Waterbury Police Department. The DEA New Haven Task Force includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, Connecticut State Police and the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Patrick F. Caruso and Brendan Keefe through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
U.S. Attorney Boyle thanked the State’s Attorney’s Office for the Judicial District of Waterbury for its close cooperation in investigating and prosecuting this matter.
Ulster County Dentist Pleads Guilty to Fraudulently Acquiring and Obtaining OxycodoneRead the Press Release
ALBANY, NEW YORK – Vivian Letizia, age 63, of Stone Ridge, New York, pled guilty today to acquiring and obtaining a controlled substance by misrepresentation, fraud, deception, or subterfuge. The announcement was made by United States Attorney Carla B. Freedman and Timothy Foley, Acting Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division.
In pleading guilty, Letizia admitted that, on December 16, 2019, she fraudulently submitted a prescription for oxycodone for one of her dentistry patients using that patient’s name and date of birth. Letizia then obtained that oxycodone from a pharmacy in Woodstock, New York, for her own consumption. At the time Letizia submitted the prescription to the pharmacy, she knew that she was not treating this patient and that she intended to personally consume the oxycodone.
At sentencing on August 25, 2022, Letizia faces up to 4 years in prison, a supervised release term of up to 1 year, and a maximum fine of $250,000. 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.
By pleading guilty, Letizia also agreed to surrender her New York State medical license. She also agreed that she would be prohibited from re-applying for a DEA registration number that would allow her to write prescriptions authorizing the dispensation of controlled substances for legitimate medical purposes.
This case was investigated by the DEA Albany District Office’s Tactical Diversion Squad, and the New York State Department of Health, Bureau of Narcotic Enforcement, and is being prosecuted by Assistant U.S. Attorney Ashlyn Miranda.
Assistant U.S. Attorney Christopher Moran, of the Civil Division, also assisted in the investigation.
US Attorney Darcie N. McElwee: Updated federal firearms definition will expand our ability to reduce violent crimeRead the Press Release
PORTLAND, Maine: In response to the announcement of the “Frame or Receiver” Final Rule this week, U.S. Attorney Darcie N. McElwee issued the following statement:
“One year ago, the Department of Justice committed to addressing the growing concern of ghost guns and their increasing role in violent crime. These weapons, often assembled from kits, generally do not contain serial numbers and are sold without background checks, making them difficult to trace and easy to acquire by criminals.
This week, following an extensive public comment period, the Department announced the “Frame or Receiver” Final Rule, which modernizes the definition of a firearm. Including privately made firearms in the definition of what constitutes a federal firearm expands our ability to enforce federal law and assist our state and local law enforcement partners in keeping Maine streets safe.
Those who sell and use these weapons to commit crimes in Maine should know ATF and the U.S. Attorney’s Office are prepared to take action. Prosecuting gun crimes - including those involving ghost guns - in order to reduce violent crime is a top priority of my office.”
# # #
Two arraigned in $3 million COVID Unemployment Insurance Benefits schemeRead the Press Release
ATLANTA - Rowlando Hatter Jr., and Clyde Anthony Parker Jr., have been arraigned on federal charges of conspiracy to commit mail and wire fraud, mail fraud, and aggravated identity theft. They allegedly participated in a scheme to use stolen identities to fraudulently apply for Unemployment Insurance (“UI”) Benefits in multiple states during the COVID-19 pandemic.
“The defendants allegedly regarded these benefits as means to steal money at a time when many legitimately relied on Unemployment Insurance Benefits during the COVID-19 pandemic,” said U.S. Attorney Kurt R. Erskine. “This type of fraud diverts CARES Act funds away from those it is intended for – those who need the money to make ends meet each month.”
“An important mission of the Office of Inspector General is to investigate allegations of fraud related to the unemployment insurance program. We will continue to work with our law enforcement partners to investigate these types of allegations,” stated Mathew Broadhurst, Special Agent in Charge, Atlanta Region, U.S. Department of Labor Office of Inspector General.
“This case is another example of criminals trying to take advantage of a bad situation for their benefit. Hatter and Parker’s alleged scheme took desperately needed money from people struggling during the COVID pandemic,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “This isn’t a victimless crime, every time a fraudster like this steals money, legitimate applicants are unable to get those funds to help themselves and their families.”
“The alleged actions of the defendants to defraud a government program designed to provide financial assistance is criminally reprehensible,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “Postal Inspectors and our law enforcement partners will aggressively go after bad actors who utilized the COVID-19 pandemic as an opportunity to commit fraud for their own financial gain.”
According to U.S. Attorney Erskine, the charges, and other information presented in court: The U.S. Department of Labor, Employment and Training Administration oversees the Federal-State Unemployment Insurance Program, which provides unemployment benefits to eligible workers who are unemployed through no fault of their own as determined under state law and who meet other state eligibility requirements. On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act was designed to mitigate the economic effects of the COVID-19 pandemic in a variety of ways. One of the provisions provided for temporary benefits for individuals who exhausted their entitlement to regular UI payments, as well as coverage for individuals who were not eligible for regular UI payments and were self-employed or had limited recent work history.
Between about July 1, 2020, and continuing through October 5, 2020, Hatter, 31, of Smyrna, Georgia, and Parker, 31, of Oak Park, Michigan, caused fraudulent applications for UI benefits to be submitted electronically to workforce agencies in various states, including California, Georgia, and Michigan. The applications fraudulently listed the names, Social Security numbers, and other personal identifying information of individuals without their knowledge and consent.
After claims were approved, the state workforce agencies paid the benefits by depositing the funds onto debit cards issued through the approving state workforce agency. The debit cards were mailed to residential addresses and P.O. Boxes located at addresses in Smyrna, Georgia and in Michigan that were controlled by Hatter and Parker. After receiving the debit cards, both Hatter and Parker withdrew the UI funds, in part, through ATM cash withdrawals.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the U.S. Department of Labor – Office of Inspector General, U.S. Homeland Security Investigations, and U.S. Postal Inspection Service. Special assistance was provided by the Federal Bureau of Investigation – Sacramento, California.
Assistant U.S. Attorneys Tracia M. King and Thomas J. Krepp are prosecuting the case.
This case was sponsored by the Georgia Unemployment Insurance Task Force. The Task Force is comprised of federal and state agencies throughout Georgia that are dedicated to combat COVID-related Unemployment Insurance Benefits Fraud.
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.
Two Sentenced for Conspiring with State Contractor in Multi-million Dollar Unemployment Fraud SchemeRead the Press Release
DETROIT - A couple from Detroit was sentenced today for their role in a multi-million dollar unemployment insurance fraud scheme aimed at defrauding the State of Michigan and the U.S. Government of funds earmarked for unemployment assistance during the COVID19 pandemic, announced United States Attorney Dawn N. Ison.
Joining in the announcement were Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General, Special Agent in Charge John Marengo, US Secret Service, Acting Special Agent in Charge Felicia George, US Postal Inspection Service, Special Agent in Charge James A. Tarasca , Federal Bureau of Investigation, Special Agent in Charge Sarah Kull, Internal Revenue Service-Criminal Investigation and Juila Dale, Director of the Michigan Unemployment Insurance Agency.
Johnny Richardson, 27, was sentenced to 97 months in federal prison and Micahia Taylor, 28, was sentenced to 30 months in federal prison. In sentencing the defendants, United States District Judge Bernard A. Friedman also ordered Richardson and Taylor to pay restitution in the amount of $683,555.
According to court records, Richardson and Taylor conspired with Brandi Hawkins—a former contract employee for the State of Michigan Unemployment Insurance Agency, to fraudulently release government funds that were intended to support individuals who lost their jobs during the COVID-19 pandemic. Richardson and Taylor both pleaded guilty conspiracy to commit wire fraud and conspiracy to commit money laundering in 2021.
Richardson and Taylor, either themselves or through others, filed dozens of fraudulent unemployment claims in Michigan and across at least four other states. Some of the claims filed by Richardson and Taylor used their own personal identifying information. Other claims were filed using stolen identities. Richardson and Taylor then provided Hawkins information on these claims, and Hawkins subsequently used her insider access to fraudulently release payment. The conspiracy resulted in the fraudulent disbursement of at least $683,555.
Hawkins was sentenced in October 2021 to 58 months in federal prison and was ordered to pay restitution in the amount of $3,793, 186 which represented the amount of fraudulently disbursed funds for which Hawkins received as a result of her actions.
“The defendants in this case used the COVID-19 pandemic to line their pockets with government funds earmarked to help those in need,” stated U.S. Attorney Ison. “My office is committed to rooting out and holding responsible those who exploited this crisis for their own personal gain.”
“At a time when thousands of people across Michigan were out of work because of the pandemic, these defendants were stealing benefits that should have gone to those trying to sustain their families,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Division. “We thank our state and federal partners for their efforts to investigate unemployment insurance fraud.”
“Today’s sentencings demonstrate the collaborate efforts of many federal and state agencies,” stated USSS Special Agent in Charge Marengo. “The USSS and our law enforcement partners will continue to protect our nation’s financial infrastructure against criminals who try to enrich themselves from COVID Relief disaster funds.”
“UIA investigators use the many tools at their disposal to identify the web of deceit that bad actors use to steal money that is intended for hard-working residents of Michigan who face difficult times through no fault of their own,” said Julia Dale, Director of the Michigan Unemployment Insurance Agency. “We won’t rest in our pursuit of criminals. We leverage our partnerships with local law enforcement, financial institutions, internet service providers, businesses and others to make sure bad actors face full justice for their breach of the public trust.”
This case was prosecuted by Assistant United States Attorney Timothy Wyse. The investigation was conducted jointly by the Department of Labor, Office of Inspector General, United States Secret Service, Internal Revenue Service - Criminal Investigation, Federal Bureau of Investigation, the U.S. Postal Inspection Service and the Unemployment Insurance Agency, Michigan Department of Labor and Economic Opportunity
Two Plead Guilty in Nationwide Rideshare and Delivery Account Fraud SchemeRead the Press Release
BOSTON – Two Brazilian nationals pleaded guilty on Monday, April 11, 2022, in connection with a nationwide conspiracy to open fraudulent driver accounts with rideshare and delivery service companies.
Guilherme da Silveira, 29, of Revere, and Priscila Barbosa, 35, of Saugus, pleaded guilty to one count each of conspiracy to commit wire fraud. Barbosa also pleaded guilty to one count of aggravated identity theft. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencings for both defendants on Aug. 4, 2022.
In May 2021, da Silveira and Barbosa were charged along with 17 co-defendants with conspiracy to commit wire fraud by using stolen identities and falsified documents to create fraudulent driver accounts for rent or sale to individuals who might not otherwise qualify to drive for the rideshare or delivery services.
According to the charging documents, the defendants allegedly used victims’ identifying information to apply for driver accounts with the rideshare and delivery companies – enabling them to pass the companies’ required background checks and create driver accounts in victims’ names. The defendants allegedly obtained victims’ names, dates of birth, driver’s license information and or Social Security numbers from co-conspirators and other sources, including sites on the Dark Net. The defendants and co-conspirators also obtained driver’s license images directly from victims, by photographing victims’ licenses while completing an alcohol delivery through one of the services or while exchanging information with victims following vehicle accidents, some of which defendants or co-conspirators intentionally caused in order to obtain license information. As a result of the scheme, Internal Revenue Service Forms 1099 were generated in victims’ names for income that conspirators earned from the rideshare and delivery companies.
In connection with the scheme, Barbosa and da Silveira obtained driver’s licenses and Social Security numbers that they and their co-conspirators procured from the DarkNet and other sources. They then used these stolen identifiers to create and apply for numerous fraudulent accounts with the rideshare and delivery companies and supplied these identifiers to other co-conspirators who also created fraudulent accounts.
To circumvent facial recognition technology utilized by rideshare and delivery companies as a security measure, Barbosa edited victims’ driver’s license images to display photos of the drivers renting or buying the fraudulent accounts. In total, Barbosa admitted to creating over 2,000 fraudulent rideshare accounts.
Barbosa and da Silveira also advertised fraudulent driver accounts for rent and purchase to potential drivers, including via WhatsApp chat groups targeted to Brazilian nationals living in the United States. Barbosa and da Silveira managed the fraudulent accounts they rented out, specifically by collecting rental payments and troubleshooting issues that arose. Additionally, Barbosa and da Silveira used fraudulent driver accounts to exploit referral bonus programs offered by the rideshare and delivery companies and used “bots” and GPS “spoofing” technology to increase the income earned from the companies. Barbosa and da Silveira each received over approximately $791,000 and $570,000, respectively, from the scheme in the form of rental payments from individuals driving under these accounts and payments from the companies generated with these accounts.
Sixteen of the defendants have been arrested in connection with the conspiracy and three remain at large. Barbosa and da Silveira are the fifth and sixth defendants to plead guilty in the case, respectively. If you believe that you may be a victim of the allegations in this case, please visit: https://www.justice.gov/usao-ma/victim-and-witness-assistance-program/us-v-wemerson-dutra-aguiar-and-us-v-priscila-barbosa-et-al.
The charge of conspiracy to commit wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss from the offense, whichever is greater. The charge of aggravated identity theft provides for a sentence of at least two years in prison to be served consecutive to any other sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Valuable assistance was provided by the Massachusetts State Police; the Concord, Lexington, Plymouth, Wilmington, Marlborough and Village of Rye Brook (N.Y.) Police Departments; U.S. Customs and Border Protection; U.S. Postal Inspection Service and the National Crime Insurance Bureau. Assistant U.S. Attorneys Kristen A. Kearney and David M. Holcomb of Rollins’ Securities, Financial & Cyber Fraud Unit are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.