Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Monday 11 April 2022
Nigerian Man Extradited to the United States from the United Kingdom to Face Multiple Fraud and Money Laundering Charges in Bismarck, NDRead the Press Release
BISMARCK: Interim United States Attorney Nicholas W. Chase announced, that on April 11, 2022, Kolawole Bamidele Akande, a/k/a Patric Elis Ferguson, a/k/a David Louis Wallace, a/ka/ Ramos Joseph Hogan made an initial appearance in the United States District Court for the District of North Dakota on charges of 1) Conspiracy to Commit Bank Fraud; 2) Conspiracy to Commit Wire Fraud; 3) Conspiracy to Commit Mail Fraud; 4) Conspiracy to Commit Money Laundering; 5) Mail Fraud; and 6) Money Laundering.
Akande appeared at this hearing in Bismarck, ND, after being extradited from the United Kingdom. The court ordered Akande be detained pending trial.
As alleged in the Indictment, the defendant participated in a complicated computer intrusion scheme targeting a Dickinson, ND company which was allegedly defrauded out of approximately $348,000.00. The defendant, and other codefendants, fraudulently obtained checks from the Dickinson company through the mail and deposited these checks in fraudulently obtained accounts in financial institutions located within the State of Texas. Once the funds from these checks were available for withdrawal and transfer, the defendant, and other codefendants, withdrew and transferred the funds to conceal and disguise their nature, location, source, and ownership.
The United States District Court for the District of North Dakota previously sentenced:
• Co-Defendant Olawale Sule a/k/a Brand King Mohammed, a/k/a John Thomas, on February 17, 2021, to serve two years’ imprisonment and payment of restitution on a charge of Conspiracy to Commit Bank Fraud.
• Co-Defendant Oluwafemi Elijah Olasode, on September 7, 2021, to time served imprisonment and payment of restitution on a charge of Misprision of Felony.
An Indictment is an accusation and notice of charges. The defendant is presumed innocent under the law.
Link for Prior Press Release Unsealing Indictment is located below:
https://www.justice.gov/usao-nd/pr/federal-grand-jury-indicts-nigerian-nationals-multiple-fraud-schemes-against-dickinson-nd
This case is being investigated by the Federal Bureau of Investigation; United States Postal Inspection Service; Homeland Security Investigations, and the United States Attorney’s Office in the Northern District and Eastern District of Texas, and is being prosecuted by Assistant United States Attorney Jonathan J. O’Konek
The Justice Department’s Office of International Affairs provided valuable assistance in securing Kolawole Bamidele Akande’s arrest and extradition.
# # # #
New Jersey man sentenced for role in drug trafficking ringRead the Press Release
MARTINSBURG, WEST VIRGINIA – Braheem Sallie, of Camden, New Jersey, was sentenced today to 60 months of incarceration for his role in a drug conspiracy that spanned several states, United States Attorney William Ihlenfeld announced.
After a three-day trial in October 2021, Sallie was found guilty of one count of “Conspiracy to Possess with Intent to Distribute and to Distribute 100 Grams or More of Heroin and 40 Grams or More of Fentanyl,” one count of “Unlawful Use of Communication Facility,” and one count of “Aiding and Abetting Travel Act – Distribution of Proceeds.” Sallie worked with others to distribute 100 grams or more of heroin and 40 grams or more of fentanyl from June 2019 to November 2019 in Berkeley and Jefferson Counties and elsewhere.
Co-conspirators in West Virginia would wire money for drug payments to Sallie and another in Camden, New Jersey. This trafficking ring involved multiple trips by West Virginia co-conspirators to Camden, New Jersey to obtain large amounts of heroin and fentanyl that were distributed and intended to be redistributed in West Virginia. This case involved nearly 100 grams of fentanyl and more than 137 grams of heroin.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Assistant U.S. Attorney Lara Omps-Botteicher and Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, prosecuted the cases on behalf of the government. The FBI; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms & Explosives; and the Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, investigated. The Berkeley County Prosecuting Attorney’s Office assisted.
U.S. District Judge Gina M. Groh presided.
Find the related press release here: https://www.justice.gov/usao-ndwv/pr/25-charged-six-state-drug-conspiracy-involving-heroin-fentanyl-cocaine
New Haven Man Sentenced to Federal Prison for Narcotics Distribution OffenseRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that DARRYL RUSSELL, 33, of New Haven, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 27 months of imprisonment, followed by three years of supervised release, for distributing heroin, cocaine and crack.
According to court documents and statements made in court, on March 13, 2021, New Haven Police encountered James Lee as he was sitting in a car at a gas station. The car had fled from police on March 8. A search of Lee’s person revealed $3,815 and a search of the car revealed $3,443. Officers then found a hidden compartment in the vehicle’s center counsel that contained heroin, crack and cocaine packaged for distribution, and a loaded 9mm handgun.
On the morning of April 5, 2021, a New Haven Police detective traveling in an unmarked police cruiser in the area of Orange Street and Wall Street identified another car that had fled from West Haven Police during an attempted traffic stop on April 1. The detective followed the car to a location of Brown Street, where he observed occupants of the vehicle engage in what appeared to be street-level drug transactions, and then to a location on Elm Street. On Elm Street, Lee, who had been released on bond, and Russell exited the car and entered a building. Lee was arrested after he exited the building. Russell ignored commands not to leave the scene but was apprehended a short distance away after he was found hiding in a trash can. A search of their car revealed heroin, crack and cocaine packaged for distribution, and more than $2,000 in cash.
Russell has been detained since May 21, 2021. On that date, he possessed additional narcotics packaged for distribution and more than $1,000 in cash. On September 14, 2021, he pleaded guilty to possession with intent to distribute, heroin, cocaine and cocaine base (“crack”).
Lee pleaded guilty to the same charge and, on February 14, 2022, he was sentenced to 46 months of imprisonment.
This matter was investigated by the New Haven Police Department and the Federal Bureau of Investigation. The was prosecuted by Assistant U.S. Attorney Nathaniel J. Gentile.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Morgantown woman sentenced for tax fraudRead the Press Release
CLARKSBURG, WEST VIRGINIA – Diann Carol Clark, of Morgantown, West Virginia, was sentenced today to five years of probation, with the first six months on home confinement, for a payroll tax fraud charge, United States Attorney William Ihlenfeld announced.
Clark, 59, pleaded guilty in November 2021 to one count of “Willful Failure to Collect or Pay Over Employment Tax.” Clark was employed by Alpha Associates, Inc. in Morgantown. Clark was an office manager and bookkeeper at Alpha Associates, where she managed payroll between 2014 and 2018. Clark was responsible for collecting and paying over to the IRS Social Security, Medicare, and income taxes withheld from the wages of Alpha Associates employees. Despite knowing the firm withheld these payroll taxes from its employees’ paychecks, Clark did not pay over approximately $1,900,000, in such taxes to the IRS.
Assistant U.S. Attorney Danae DeMasi-Lemon and Trial Attorney Kevin Schneider of the Justice Department’s Tax Division prosecuted the case on behalf of the government. The IRS investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Middletown Man Sentenced to over 8 Years of Federal Prison for Selling Methamphetamine and Fentanyl and Illegally Possessing AmmunitionRead the Press Release
WILMINGTON, Del. – A Middletown man was sentenced on April 6, 2022 to 97 months in prison for possessing methamphetamine and fentanyl with intent to distribute, as well as possession of ammunition by a person prohibited.
Leon Ransom, 31, was arrested by the Drug Enforcement Administration (“DEA”) after multiple sales of methamphetamine and a separate sale of fentanyl to a DEA confidential source. Following a search of the home in which Ransom was living, the DEA found almost four additional ounces of crystal methamphetamine, over two ounces of fentanyl, three ounces of cocaine, two scales, cutting agents, and a box of ammunition. The methamphetamine sold and possessed by Ransom was chemically tested by the DEA and found to be 100% pure.
David C. Weiss, U.S. Attorney for the District of Delaware made the announcement after sentencing by U.S. District Judge Maryellen Noreika. U.S. Attorney Weiss commented, “Methamphetamine and fentanyl are two of the deadliest drugs plaguing our streets today. Peddling these poisons endangers the safety of our community. My office will continue to seek significant prison sentences for those who profit from illegal drug sales.”
“As U.S. Attorney Weiss said, illicit fentanyl and methamphetamine are two street drugs that have had a disproportionately destructive effect on our communities,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “That Ransom was selling distribution quantities of both and had gun ammunition shows how dangerous his criminal conduct was.”
Assistant U.S. Attorney Alexander Ibrahim prosecuted the case, which was investigated by the DEA.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 1:21-cr-69-MN.
Mattoon Sex Offender Sentenced to over 38 Years in Prison for Child Enticement and Sex Trafficking CrimesRead the Press Release
URBANA, Ill. – A Mattoon, Illinois, man, Christopher Ohm, 35, of the 2500 block of Moultrie Ave., was sentenced today to 458 months’ (38 years and two months) imprisonment for enticement of a minor, sex trafficking of a minor, and receipt and possession of child pornography.
According to court documents, law enforcement identified Ohm after he met with a 13-year-old minor through a popular dating application, Grindr. Ohm arranged to meet the minor for sexual activity at an abandoned railroad track in Janesville, Illinois, and offered the minor money if the minor agreed. The minor escaped from Ohm’s vehicle, and Ohm was arrested shortly afterwards when he tried to meet the minor again at a cemetery. When law enforcement reviewed the contents of Ohm’s phone, they learned that Ohm tried to meet another minor, a 15-year-old, in a park in Bloomington, Illinois, in July 2020, also using Grindr. In addition, law enforcement found a tablet that Ohm discarded at the cemetery where he was arrested that contained thousands of images and videos of child pornography.
Ohm was previously convicted of transportation of child pornography and in September 2012, was sentenced to serve almost 10 years in prison. Ohm was released from the Bureau of Prisons in September 2019, and was serving a term of supervised release when he was arrested by Cumberland County officials in September 2020 in relation to the instant offense.
A federal grand jury charged Ohm with one count of enticement of a minor, one count of sex trafficking of a minor, and one count of commission of a sex offense as a registered sex offender in November 2020, and Ohm was transferred to the custody of the U.S. Marshals service, where he has remained. In January 2021, the federal grand jury added counts involving the second minor and the child pornography materials located on Ohm’s tablet. The grand jury returned a superseding indictment charging Ohm with one count of enticement of a minor, one count of receipt of child pornography, and one count of possession of child pornography. Ohm pleaded guilty in October 2021 to the seven-count superseding indictment.
Senior U.S. District Judge Michael Mihm emphasized his concern that the public be protected from from Ohm, calling him “a dangerous person.” Judge Mihm sentenced Ohm to 36 years and eight months’ imprisonment, for the 2020 offenses, and a consecutive 18 months’ imprisonment for violating the terms of his supervised release. Following his release from the Bureau of Prisons, Ohm will serve the remainder of his natural life term on supervised release.
“HSI will continue to do everything it can to protect the most vulnerable members of our community,” said HSI Chicago Special Agent in Charge Angie Salazar. “Ohm’s reprehensible actions underscore the importance of talking with our children about the dangers they could encounter online.”
“Offenders who repeatedly victimize children have shown by their actions that are unwilling or unable to conform to the bounds of the law, and today’s sentence reflects the need to remove dangerous child sex offenders from the community,” said Assistant U.S. Attorney Elly M. Peirson. “We appreciate the swift attention that our law partners gave to the investigation of this recidivist offender.
U.S Immigration and Customs Enforcement Homeland Security Investigations and the Cumberland County Sherriff’s Office conducted the investigation. Assistant U.S. Attorney Elly Peirson represented the government in this prosecution.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Manteno Man Sentenced to over Seven Years in Prison for Child Pornography CrimesRead the Press Release
URBANA, Ill. – A Manteno, Illinois, man, Mark C. Devries, 43, of the 200 block of Raven Dr., was sentenced today to 87 months’ (seven years, three months) imprisonment for distribution and possession of child pornography.
Devries was arrested in September 2021 after a federal grand jury returned an indictment charging him with child pornography crimes committed in May through August 2018. Devries has remained in the custody of the U.S. Marshals Service since his arrest.
Senior U.S. District Judge Michael Mihm sentenced Devries to the 87 months’ imprisonment and also imposed a 10-year term of supervised release of supervised release. Devries pleaded guilty in November 2021 to the three-count indictment.
This case was investigated by the Federal Bureau of Investigation’s Field Offices in Springfield, Illinois, and Salt Lake City, Utah. Assistant U.S. Attorney Elly Peirson represented the government in this prosecution.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Man Pleads Not Guilty to Involuntary Manslaughter and AssaultRead the Press Release
United States Attorney Dennis R. Holmes announced that a South Dakota man has been indicted by a federal grand jury for two counts of Involuntary Manslaughter and one count of Assault Resulting in Serious Bodily Injury.
Moses Runs Against, age 38, was indicted on February 17, 2022. He appeared before U.S. Magistrate Judge Daneta Wollmann on April 8, 2022, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction for each Involuntary Manslaughter charge is eight years in federal prison and/or a $250,000 fine, three years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. As to the charge of Assault Resulting in Serious Bodily Injury, the maximum penalty is 10 years in federal prison and/or a $250,000 fine, three years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Runs Against killing two females by operating a motor vehicle while under the intoxicating influence of alcohol on January 22, 2022, near Manderson, South Dakota. Two other females were also seriously injured in the accident.
The charges are merely accusations and Runs Against is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Oglala Sioux Tribe Department of Public Safety and the Federal Bureau of Investigation. Assistant U.S. Attorney Megan Poppen is prosecuting the case.
Runs Against was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for June 14, 2022.
Macon County Man Sentenced to over Eight Years in Prison for Child Pornography CrimesRead the Press Release
URBANA, Ill. – A Decatur, Illinois, man, Justin Rotramel, 38, of the 400 block of Timber Dr., was sentenced today to 102 months’ (eight years and six months) imprisonment for possession of child pornography.
Rotramel was arrested in November 2020 after a federal grand jury returned an indictment charging him with possession of child pornography in April 2020. Rotramel was initially remanded to the custody of U.S. Marshal’s Service, but upon reconsideration was released on bond in March 2021 in light of certain extenuating circumstances. Rotramel’s bond was revoked in June 2021, and he was again remanded to the custody of the U.S. Marshal’s Service, where he has remained.
Senior U.S. District Judge Michael Mihm sentenced Rotramel to the 102 months imprisonment, to be followed by 10 years of supervised release. In addition, Rotramel was ordered to pay $12,000 in restitution to a victim of the child pornography images he possessed. Rotramel pleaded guilty in November 2021 to the single-count indictment.
This case was investigated by the Macon County Sheriff’s Office, with the cooperation of the Macon County State’s Attorney. Assistant U.S. Attorney Elly Peirson represented the government in this prosecution.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
MS-13 Gang Associate Convicted of Racketeering and the Murders of Four Young Men in a Central Islip Park in 2017Read the Press Release
A federal jury in Central Islip returned a guilty verdict today against Leniz Escobar, an associate of the Leeward Locos Salvatruchas (“Leeward”) and Brentwood Locos Salvatruchas (“Brentwood”) cliques of La Mara Salvatrucha, also known as the MS-13, a transnational criminal organization. Escobar was convicted of racketeering, including predicate acts of murder, conspiracy to murder rival gang members, and obstruction of justice; and murder in aid-of racketeering, in connection with her participation in the April 11, 2017 murders of Justin Llivicura, Michael Lopez, Jorge Tigre and Jefferson Villalobos. The verdict followed a four-week trial before United States Circuit Judge Joseph F. Bianco. When sentenced, Escobar faces up to life in prison.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Rodney K. Harrison, Commissioner, Suffolk County Police Department (SCPD), announced the verdict.
“With today’s verdict, Escobar has been held responsible for the crucial role that she willingly played in orchestrating one of the most vicious and senseless mass murders in the district in memory,” stated United States Attorney Peace. “The defendant showed utter disregard for human life by leading the victims into a killing field, to their slaughter, to enhance her stature with her fellow cold-blooded murderers within the MS-13 gang. It is my hope that Escobar’s conviction will bring some measure of closure to the relatives of the victims and serve as a warning to other gang members that this Office, together with our law enforcement partners, will not rest until everyone responsible for these murders is held accountable and the MS-13 no longer poses a danger to our district.”
Mr. Peace expressed his thanks to the members of the FBI’s Long Island Gang Task Force for their outstanding work on the case.
“As proven at trial, Ms. Escobar played a crucial role in a heinous and senseless crime, the 2017 slayings of four young men believed by MS-13 to be members of a rival gang. Subsequent to the murders she continued to demonstrate her callous disregard for human life when she boasted about her role in the killings to enhance her stature within the gang. While nothing can bring the victims back, it is our hope that today’s verdict can bring their families a measure of comfort, knowing justice has been served,” stated FBI Assistant Director-in-Charge Driscoll.
“Today’s verdict sends a clear message that those who associate with a gang will be held accountable for their involvement with gang activity,” stated SCPD Commissioner Harrison. “Escobar showed a complete disregard for human life and put her allegiance to the gang ahead of the rule of law. I applaud all those involved from the Suffolk County Police Department, the FBI and our partners in law enforcement for their hard work and dedication to justice.”
The evidence at trial proved that on the evening of April 11, 2017, Escobar, also known as “Diablita,” and a co-conspirator, Keyli Gomez, lured five young men, including the four murder victims, to a park in Central Islip where they were attacked by members of the MS-13. The MS-13 members believed the victims to be members of a rival gang, at least two of whom had disrespected the MS-13 by posting photos on social media in which they wore certain items and flashed hand signs that signified membership in the MS-13 gang. Escobar and Gomez showed the gang-related photos to members of the MS-13, who confirmed the young men did not belong to MS-13, and it was decided that the victims would be killed. Gomez testified at the trial that she and Escobar drove with the victims to the park, led them to a predetermined wooded area, and sent the MS-13 members text-messages notifying them of their arrival. The MS-13 members and associates proceeded to the designated location and encircled the victims under the cover of darkness. One of the intended victims immediately fled and was able to escape. Llivicura, Lopez, Tigre and Villalobos were surrounded by MS-13 members, who attacked them with machetes, knives, an axe, and wooden clubs. After the attack, the MS-13 members dragged the victims’ bodies to a more secluded spot in the woods, piled them up, and then fled. The victims’ bodies were discovered the following evening.
In the days following the murders, Escobar bragged to other MS-13 members about her role in the killings and, in recorded calls with her boyfriend, who was a high-ranking member of the Brentwood clique, discussed the attack in detail. Using barely coded language, and referring to the victims who were killed, she said, “four individuals took the train and who knows when they’ll be back, got me?” Escobar then shared how that plan went awry when one person escaped, adding “But one of them, one of them managed to still be here on the map” and “he knows stuff about me.” In a separate call, Escobar told her boyfriend that she was “happy for this to happen.” Of the four victims, she said they were “never coming back . . . somewhere else . . . seeing the light . . . no more . . . out of here . . . not on the map.”
Additionally, Escobar destroyed evidence of her involvement in the murders by disposing of a sweatshirt stained with the blood of a victim, tossing her cellular phone from a moving vehicle when she was being followed by the police, and falsely telling detectives that she and Gomez were victims of a random robbery in the park on the night of the murders. Gomez pleaded guilty to racketeering charges in connection with the murders and is awaiting sentencing.
More than a dozen MS-13 members and associates have been charged in connection with the April 11, 2017 murders.
Today’s conviction is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent, transnational criminal organization. The MS-13’s leadership is based in El Salvador, Honduras, Guatemala and Mexico, but the gang has thousands of members across the United States. With numerous branches, or “cliques,” the MS-13 is the most violent criminal organization on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults. Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 60 murders in the Eastern District of New York, resulting in the convictions of dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, which is comprised of agents and officers of the FBI, SCPD, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation Office, Suffolk County Sheriff’s Office, the New York State Police, the Hempstead Police Department, the Rockville Centre Police Department and the New York State Department of Corrections and Community Supervision.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Paul G. Scotti, Justina L. Geraci and Megan E. Farrell are in charge of the prosecution.
The Defendant:
LENIZ ESCOBAR
Age: 22
Islip Terrace, New YorkE.D.N.Y. Docket No. 21-CR-101 (JFB)
Lowery appointed U.S. AttorneyRead the Press Release
HOUSTON – Jennifer B. Lowery has taken the oath of office to remain as chief federal law enforcement officer for the Southern District of Texas (SDTX).
“I am extremely grateful to the district judges for allowing me to continue to serve the SDTX and our community,” said Lowery. “It is an honor and a privilege to be the U.S. Attorney (USA). I take pride in our office and the work it does in support of our law enforcement partners, our mutual mission to protect our citizens and hold accountable those who commit federal crimes. Likewise, I am blessed to work alongside the dedicated employees in this district who are devoted to public service and to our office’s core values of professionalism, ethics and civility.”
Lowery was first appointed Acting USA Feb. 22, 2021, upon the resignation of former USA Ryan K. Patrick. Attorney General Merrick Garland then appointed Lowery to be the interim USA Dec. 26 and was to serve in that role for 120 days. The district judges in the U.S. District court for the SDTX then voted to appoint Lowery as U.S. Attorney until the appointment and qualification of a successor to the SDTX as provided by law.
Chief U.S. District Judge Lee H. Rosenthal administered the oath of office April 7.
Lowery joined the SDTX in 2008, but has been with the Department of Justice since 2000. She first served as a Special Assistant U.S. Attorney and then an Assistant U.S. Attorney (AUSA) in the Eastern District of Texas. During this time, she was detailed to Washington D.C. and New York, New York, as a hearing officer for the 9/11 Victims’ Compensation Fund. She later worked in Washington D.C. in the Office of the Deputy Attorney General and Executive Office for US Attorneys, in both their Counsel to Director’s Office and General Counsel’s Office.
While with the SDTX, Lowery has served as AUSA in the Major Offenders, Fraud and Organized Crime Drug Enforcement Task Force Sections. She has also held the titles of First Assistant USA, Executive AUSA, criminal chief, deputy criminal chief of the Program Fraud Section, acting deputy criminal chief of the Major Fraud Section, senior litigation counsel and ethics advisor.
Prior to her federal service, Lowery was an Assistant Criminal District Attorney in the Jefferson County District Attorney’s Office for eight years where she prosecuted hundreds of cases, including four capital murders. She served as a grand jury attorney, drug intake lawyer, drug diversion lawyer, misdemeanor chief and attorney and felony attorney.
Lowery holds a B.A. from Texas State University (formerly Southwest Texas State University) and a J.D. from South Texas College of Law in Houston.
Lowery was honored to have her mother, niece, mentor, members of the judiciary and bar and various employees of the SDTX in attendance as she took the oath of office.
Pursuant to Vacancy Reform Act, the second in the chain of command, generally the First USA, automatically begins serving as Acting USA upon exit of a presidentially-appointed USA and serves for up to 300 days. If a new USA is not in place by that time, the Attorney General has the authority to name an interim USA to serve for up to 120 days. At that time, if no one has been presidentially-appointed to that position, the district judges vote to name someone as USA until the appointment and qualification of a successor as provided by law.
The SDTX is among the busiest in the nation. With more than 200 attorneys, the office serves more than nine million people in 43 counties from Houston to the Mexican border and prosecutes more federal criminal cases than most other districts. The SDTX currently comprises seven divisions with federal district courts in Houston, Galveston, Victoria, Corpus Christi, Brownsville, McAllen and Laredo.
Long Haul Truck Driver Sentenced for Transporting Children to Engage in Sexual ActivityRead the Press Release
EL PASO – Today an El Paso man was sentenced to life in prison for sexual exploitation of a minor.
According to court documents, Travis Wayne Vavra, 60, was a long-haul truck driver who advertised free amusement park passes and cross-country trips for boys to explore the United States. As a result of the advertisement, Vavra transported a minor in his tractor trailer from the El Paso, Texas area to different states, including New Mexico, Missouri, Arizona, California, Wisconsin, Illinois, Nebraska, Maryland, Oklahoma, and Louisiana from May 2015 to June 2019. Vavra sexually assaulted the minor during these cross-country trips that began when the victim was nine years old. Vavra had also previously molested two other victims. On the date of his arrest, Vavra posted another flyer for parents and boys advertising these free cross-country trips. Vavra was found to be in possession of child sexual abuse material on his phone at the time of his arrest.
On June 29, 2021, a federal jury found Vavra guilty of one count of transportation of minors with intent to engage in criminal sexual activity and one count of possession of a visual depiction involving the sexual exploitation of a minor. Vavra has remained in federal custody since his arrest on December 6, 2019.
“Our office is committed to vigorously prosecuting cases against individuals who prey upon the most vulnerable among us – children,” said U.S. Attorney Ashley C. Hoff. “We, along with our law enforcement partners, strive to protect our communities from these sexual predators and bring justice to victims of these heinous crimes so that they can begin the healing process.”
“From suspicious flyers posted in store windows to reports of sexual abuse, the investigation involving Vavra showed how concerned citizens came together to stop a predator from destroying the innocence of additional young boys and assist in providing closure to the victims of his previous sexual assaults,” said Jeffrey R. Downey, FBI El Paso Special Agent in Charge. “We cannot protect our community alone. The FBI is thankful to those citizens who came forward to voice their suspicions. The FBI along with our partners assigned to the El Paso Crimes Against Children and Human Trafficking task force remain committed to the most vulnerable members of El Paso, the children.”
The FBI investigated the case.
Assistant U.S. Attorneys Sarah Valenzuela and Richard Watts prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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.
###
Lawton Man Sentenced to 120 Months in Federal Prison for a Lawton Bank Robbery Involving a Fake BombRead the Press Release
OKLAHOMA CITY – Last Friday, a federal judge sentenced JOHN SCOTT BROOKS, 39, of Lawton, to serve 120 months in federal prison for a Lawton bank robbery involving a fake bomb, announced United States Attorney Robert J. Troester.
On June 3, 2020, a federal grand jury returned a two count Indictment against Brooks. Count 1 charged Brooks with bank robbery and Count 2 charged him with making a bomb threat. According to evidence presented at trial in April 2021, Brooks pulled up to the drive-through teller lane at the Southwest Oklahoma Federal Credit Union, located at 6714 West Gore Boulevard, Lawton, Oklahoma, on March 23, 2020, and he placed a fake bomb and demand note in the teller drawer. He immediately held up a device displaying timer, which was counting down. After the teller provided Brooks with bank proceeds, he took the fake bomb and drove away.
Evidence at trial further showed that Brooks attempted to get away with the robbery by creating a cover story, which included altering the appearance of his vehicle, erasing electronic information from his cell phone, and driving to another bank and then to Wichita Falls, Texas, so he could tell law enforcement he was somewhere else at the time of the robbery. Evidence at trial included testimony from the bank teller, bank surveillance footage of the robbery, a bank robbery list found at Brooks’ residence, and a vehicle image comparison analysis performed by an FBI forensic examiner, which showed Brooks changed the appearance of his vehicle immediately after the robbery. Additionally, multiple witnesses testified that they recognized Brooks in the still photo of the surveillance footage taken from the robbery.
The trial lasted two days, and the jury deliberated approximately two hours before finding Brooks guilty of one count of bank robbery.
At the sentencing, U.S. District Court Judge Scott Palk sentenced Brooks to serve 120 months in federal prison. In support of his sentence, Judge Palk cited, among other things, the serious nature of the offense, Brooks’ criminal history, and the impact the robbery had on the teller. Judge Palk also ordered Brooks to serve five years of supervised release when released from federal prison. Brooks has been detained in federal custody since April 3, 2020.
This case was the result of an investigation by the Federal Bureau Investigation’s Oklahoma City Field Office and the Lawton Police Department. Assistant U.S. Attorneys Wilson D. McGarry and Stan West prosecuted the case.
Reference is made to public filings for more information.
Laredo man sentenced for attempting to smuggle assault rifles into MexicoRead the Press Release
LAREDO, Texas – A 29-year-old local man has been sent to prison following his conviction of being a felon in possession of a firearm, announced U.S. Attorney Jennifer B. Lowery.
Manual Dominquez, Laredo, pleaded guilty Aug. 12, 2021.
Today, U.S. District Judge Diana Saldana ordered he serve 87 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the Judge noted Dominguez’s violent criminal history, the cache of weapons and ammunition in his home and the fact he was attempting to smuggle high-powered rifles into Mexico.
Dominquez was taken into custody following an undercover operation in May 2021. Someone in Mexico had sent him to pick up two Barrett .50 caliber rifles at a Home Depot parking lot. Upon arrival, Dominguez inspected the firearms and provided three stacks of $9,900, wrapped in rubber bands.
Dominguez loaded the first firearm into the back seat of his car, at which time he was taken into custody. Authorities conducted a search at his residence where they found more firearms and over 6,000 rounds of ammunition.
The rifles were intended to go to members of the Cartel De Norte, a violent drug cartel in Mexico.
Dominguez was previously convicted in Webb County of aggravated assault with a deadly weapon. As such, he is prohibited from possessing firearms or ammunition per federal law.
He was permitted to remain on bond and voluntarily report to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives; Homeland Security Investigations and the Laredo Police Department conducted the investigation. Assistant U.S. Attorneys Anthony J. Evans and Brandon Bowling prosecuted the case.
Kennewick WA man Sentenced to over 11 Years in Federal PrisonRead the Press Release
Yakama, Washington – Chief U.S. District Judge Stanley Bastian has sentenced Jesus B. Zavala-Alvarez, 28, of Kennewick, Washington, to 135 months in federal prison for his role in guarding a stash house, where the Drug Enforcement Administration (D.E.A.) seized over 8 pounds of methamphetamine, 64 ounces of liquid methamphetamine and 19,000 deadly fentanyl-laced pills, along with a loaded firearm. Zavala-Alvarez was also sentenced to serve five years on federal supervision if he is allowed to remain in the United States. Zavala-Alvarez’s drug trafficking organization operated primarily out of the Tri-Cities area, which includes Kennewick, Pasco, and Richland, Washington.
According to information disclosed during court proceedings, DEA Tri-Cities and the Tri-City METRO Drug Task Force identified a transnational drug trafficking organization operating in and around the Tri-Cities. DEA agents identified Zavala-Alvarez during an investigation into two of his codefendants – Daniel Hernandez and Jessie Mendoza. During the investigation, Zavala-Alvarez delivered two pounds of methamphetamine as part of a controlled buy. This led agents to Zavala-Alvarez’s residence in Kennewick, Washington. Upon the execution of a federal search warrant at Zavala-Alvarez’s residence in April 2020, agents seized a large stash of narcotics, which included over 19,000 fentanyl-laced pills. Hernandez and Mendoza were later arrested and found to be in possession of more than 20,000 fentanyl-laced pills, approximately 5 pounds of methamphetamine, and several ounces of heroin. Hernandez and Mendoza were also in possession of multiple firearms.
At the sentencing proceedings in the case, Chief Judge Bastian noted Zavala-Alvarez’s substantial role in the organization, including that he was entrusted to safe keep a large cache of drugs, while armed with a loaded firearm. Chief Judge Bastian also acknowledged that this was Zavala-Alvarez’s first felony offense, but because of the seriousness of the case, imposed a sentence of 135 months in federal custody.
U.S. Attorney Vanessa R. Waldref commended the law enforcement team who investigated the case, leading to the prosecution of Zavala-Alvarez and his co-defendants. She stated, “Fentanyl is a poison being pumped into our communities at an unprecedented rate with devastating effects. Even trace amounts in a fentanyl-laced pill can kill a person. I am grateful to for the state, federal, and local law enforcement officers who work together on a daily basis to identify the large-scale suppliers of this dangerous drug. Through these joint efforts to curb the distribution of fentanyl, we are building safer and stronger communities in Eastern Washington.”
“The Zavala-Alvarez’s drug trafficking organization was flooding our city streets with their methamphetamine and poisonous fentanyl-laced counterfeit pills, marketed as legitimate prescription pills to unsuspecting victims of the Tri-Cities community,” said Frank A. Tarentino III, Special Agent-in-Charge DEA Seattle Field Division. “Our neighborhoods are under siege from the criminal drug networks who use guns and violence to push these fake pills to the most vulnerable people in our communities. The drug and gun evidence seized in this investigation are examples of the link between violence and drug trafficking, which is responsible for causing the most harm in the United States. With the assistance of our law enforcement partners and the community, we will continue to drive down the overdoses and violence that are negatively impacting the people of Tri-Cities and their quality of life.”
This case was prosecuted under the Organized Crime Drug Enforcement Task Force (OCDETF) program. The OCDETF program provides supplemental federal funding to the federal and state agencies involved in the investigation of drug-related crimes.
This case was investigated by the DEA Tri-Cities Office, Border Patrol, the Tri-City METRO Drug Task Force, Kennewick Police Department, Richland Police Department, and Pasco Police Department. This case was prosecuted by Stephanie Van Marter, Assistant United States Attorney for the Eastern District of Washington.
Kennewick Drug Trafficker and Sureno Gang Member Sentenced to 10 Years in Federal PrisonRead the Press Release
Yakima, Washington – Chief U.S. District Judge Stanley Bastian has sentenced David Reyes, 30, of Kennewick, Washington, to 120 months in federal prison for possession with intent to distribute methamphetamine, fentanyl, and heroin. As part of the sentence, Chief Judge Bastian also imposed a period of five-years’ federal supervised release. Reyes’s drug trafficking activities occurred primarily in the Tri-Cities area (Kennewick, Pasco, and Richland, Washington).
According to information disclosed during court proceedings, Reyes was arrested on drug trafficking charges in March 2021. At that time, the Washington Department of Corrections (“DOC”) was supervising Reyes for multiple convictions in Washington state court. During a March 11, 2021 search of Reyes’s home, DOC officers seized approximately 350 grams of methamphetamine, a number of fentanyl-laced pills, and 280 grams of heroin inside a sweatshirt, which was in Reyes’s bedroom. DOC also recovered a digital scale and several thousands of dollars in U.S. Currency. Reyes is a known member of the Sureno Gang. He goes by the moniker, “Lil’ Monster.”
“The seamless partnership of the Federal Bureau of Investigation, the Pasco Police Department, and Washington Department of Corrections lead directly to the apprehension of this Sureno Gang Member, who was distributing deadly narcotics while on state supervision,” U.S. Attorney Waldref stated. “These types of federal, state, and local partnerships, coupled with community engagement, are necessary to rid our communities of this dangerous poison, thereby making our communities safer and stronger.” U.S. Attorney Waldref continued, “Today’s sentence will remove Mr. Reyes from our community for 10 years, sending a powerful signal that our office continues to vigorously prosecute those who distribute deadly narcotics in Eastern Washington.”
“The fact that Mr. Reyes previously served time in prison was no deterrent to reoffending.” said Special Agent in Charge Donald M. Voiret of the FBI’s Seattle Field Office. “This sentence will keep him from distributing drugs into our communities for the next decade. I want to thank our investigators and partners on the Southeast Washington Safe Streets Task Force for their work on this case.”
This case was prosecuted under the Organized Crime Drug Enforcement Task Force (OCDETF) program. The OCDETF program provides supplemental federal funding to the federal and state agencies involved in the investigation of drug-related crimes. This OCDETF investigation is being conducted by the Federal Bureau of Investigation’s
Safe Streets Task Force in Tri-Cities Washington, Pasco Police Department, and Washington Department of Corrections.
This case was prosecuted by Caitlin A. Baunsgard, Assistant United States Attorney for the Eastern District of Washington.
Justice Department Secures Agreement with CVS Pharmacy Inc., to Make Online COVID-19 Vaccine Registration Accessible for People with DisabilitiesRead the Press Release
The Justice Department and the U.S. Attorney’s Office for the District of Rhode Island today announced a settlement agreement with CVS Pharmacy Inc., under the Americans with Disabilities Act (ADA) that will eliminate barriers preventing people with certain disabilities from getting information about COVID-19 vaccinations and booking vaccination appointments online. CVS is the country’s largest retail pharmacy, with nearly 10,000 locations. Today’s resolution is the department’s fifth agreement on the critical issue of COVID-19 vaccination website accessibility, following settlement announcements with Rite Aid Corporation, Hy-Vee Inc., The Kroger Co. and Meijer Inc.
The department found that CVS’s COVID-19 vaccine registration portal, currently located at https://www.cvs.com/immunizations/covid-19-vaccine, was not accessible to people with certain disabilities, including those who use screen reader software or have trouble using a mouse. For instance, the types of vaccine appointments offered (which included influenza, pneumonia, and others, in addition to the COVID-19 vaccine) were not read audibly to screen reader users at the beginning of the scheduling process. Further, on the page where users pick a time for their appointment, screen reader users were told that all available times were “checked,” even though the user had not made any selection. Additionally, people who use the “Tab” key instead of a mouse to navigate websites were not able to navigate past a request for insurance information in the registration process.
“Now more than ever, we must ensure web accessibility for people with disabilities seeking access to critical needs and services,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We are working aggressively to identify and remove barriers that prevent people with disabilities from privately and independently securing potentially life-saving COVID-19 vaccines. We will continue to work towards the ADA’s promise of equal access during the ongoing global pandemic.”
“While web accessibility is always important, when it comes to critical health services like COVID-19 vaccination, making sure that everyone — regardless of disability — can access information and care is essential,” said U.S. Attorney Zachary A. Cunha for the District of Rhode Island. “This office is committed to vigorously enforcing the ADA to eliminate unnecessary barriers that stand in the way of lifesaving care.”
Under today’s settlement, CVS will conform web content about the COVID-19 vaccine, including the forms for scheduling an appointment to get the vaccine, to the Web Content Accessibility Guidelines (WCAG), Version 2.1, Level AA. WCAG is a set of voluntary industry guidelines for making information on a website accessible to users with disabilities. CVS also must regularly test the pages of its website that include vaccine scheduling and information about the COVID-19 vaccine, and quickly fix any problems that keep people with disabilities from being able to use these pages.
This matter was handled jointly by the Disability Rights Section of the Civil Rights Division and the U.S. Attorney’s Office for the District of Rhode Island. Title III of the ADA requires public accommodations like drugstores to provide individuals with disabilities with full and equal enjoyment of goods and services, such as vaccines. The ADA also requires public accommodations to ensure effective communication with people with disabilities, including by using auxiliary aids and services like accessible technology.
For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA information line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. ADA complaints may be filed online at www.ada.gov/complaint. Anyone in the District of Rhode Island may also report civil rights violations directly to the U.S. Attorney’s Office for the District of Rhode Island at https://www.justice.gov/usao-ri-civil-rights-enforcement or (401) 709-5000.
Justice Department Announces New Rule to Modernize Firearm DefinitionsRead the Press Release
Today, the Department of Justice announced that it has submitted to the Federal Register the “Frame or Receiver” Final Rule, which modernizes the definition of a firearm. Once implemented, this rule will clarify that parts kits that are readily convertible to firearms are subject to the same regulations as traditional firearms. These regulatory updates will help curb the proliferation of “ghost guns,” which are often assembled from kits, do not contain serial numbers, and are sold without background checks, making them difficult to trace and easy to acquire by criminals.
“One year ago, the Department committed to address the proliferation of ghost guns used in violent crimes,” said Attorney General Merrick B. Garland. “This rule will make it harder for criminals and other prohibited persons to obtain untraceable guns, will help ensure that law enforcement officers can retrieve the information they need to solve crimes, and will help reduce the number of untraceable firearms flooding our communities. I commend all our colleagues at the ATF who have worked tirelessly over the past 12 months to get this important rule finalized, and to do it in a way that respects the rights of law-abiding Americans.”
The rule goes into effect 120 days from the date of publication in the Federal Register, and once implemented, will address the proliferation of these un-serialized firearms in several ways. These include:
- To help keep guns from being sold to convicted felons and other prohibited purchasers, the rule makes clear that retailers must run background checks before selling kits that contain the parts necessary for someone to readily make a gun.
- To help law enforcement trace guns used in a crime, the rule modernizes the definition of frame or receiver, clarifying what must be marked with a serial number – including in easy-to-build firearm kits.
- To help reduce the number of unmarked and hard-to-trace “ghost guns,” the rule establishes requirements for federally licensed firearms dealers and gunsmiths to have a serial number added to 3D printed guns or other un-serialized firearms they take into inventory.
- To better support tracing efforts, the rule requires federal firearms licensees, including gun retailers, to retain records for the length of time they are licensed, thereby expanding records retention beyond the prior requirement of 20 years. Over the past decade, ATF has been unable to trace thousands of firearms – many reportedly used in homicides or other violent crimes – because the records had already been destroyed. These records will continue to belong to, and be maintained by, federal firearms licensees while they are in business.
As the final rule explains, from January 2016 to December 2021, ATF received approximately 45,240 reports of suspected privately made firearms recovered by law enforcement, including in 692 homicide or attempted homicide investigations. The chart below demonstrates the total annual numbers of suspected PMFs recovered by law enforcement over the past six years:
Today’s announcement marks one year since the Attorney General directed the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) to issue a proposed rule within 30 days that would address the proliferation of unmarked firearms increasingly being used in crimes. On May 7, 2021, the Department of Justice issued a notice of proposed rulemaking, and during the 90-day open comment period, the ATF received more than 290,000 comments, the highest number of comments submitted to a proposed rule in ATF’s history. Today’s announcement is also the latest in a series of steps the department has taken to address violent crime and gun violence.
The final rule, as submitted to the Federal Register, can be viewed here: https://www.atf.gov/rules-and-regulations/definition-frame-or-receiver
To learn more about the rulemaking process, please see: https://www.federalregister.gov/uploads/2011/01/the_rulemaking_process.pdf
For more information, see the attached fact sheet.
Justice Department Announces New Rule to Modernize Firearm DefinitionsRead the Press Release
WASHINGTON – Today, the Department of Justice announced that it has submitted to the Federal Register the “Frame or Receiver” Final Rule, which modernizes the definition of a firearm. Once implemented, this rule will clarify that parts kits that are readily convertible to firearms are subject to the same regulations as traditional firearms. These regulatory updates will help curb the proliferation of “ghost guns,” which are often assembled from kits, do not contain serial numbers, and are sold without background checks, making them difficult to trace and easy to acquire by criminals.
“One year ago, the Department committed to address the proliferation of ghost guns used in violent crimes,” said Attorney General Merrick B. Garland. “This rule will make it harder for criminals and other prohibited persons to obtain untraceable guns, will help ensure that law enforcement officers can retrieve the information they need to solve crimes, and will help reduce the number of untraceable firearms flooding our communities. I commend all our colleagues at the ATF who have worked tirelessly over the past 12 months to get this important rule finalized, and to do it in a way that respects the rights of law-abiding Americans.”
The rule goes into effect 120 days from the date of publication in the Federal Register, and once implemented, will address the proliferation of these un-serialized firearms in several ways. These include:
1. To help keep guns from being sold to convicted felons and other prohibited purchasers, the rule makes clear that retailers must run background checks before selling kits that contain the parts necessary for someone to readily make a gun.
2. To help law enforcement trace guns used in a crime, the rule modernizes the definition of frame or receiver, clarifying what must be marked with a serial number – including in easy-to-build firearm kits.
3. To help reduce the number of unmarked and hard-to-trace “ghost guns,” the rule establishes requirements for federally licensed firearms dealers and gunsmiths to have a serial number added to 3D printed guns or other un-serialized firearms they take into inventory.
4. To better support tracing efforts, the rule requires federal firearms licensees, including gun retailers, to retain records for the length of time they are licensed, thereby expanding records retention beyond the prior requirement of 20 years. Over the past decade, ATF has been unable to trace thousands of firearms – many reportedly used in homicides or other violent crimes – because the records had already been destroyed. These records will continue to belong to, and be maintained by, federal firearms licensees while they are in business.
As the final rule explains, from January 2016 to December 2021, ATF received approximately 45,240 reports of suspected privately made firearms recovered by law enforcement, including in 692 homicide or attempted homicide investigations. The chart below demonstrates the total annual numbers of suspected PMFs recovered by law enforcement over the past six years:
Today’s announcement marks one year since the Attorney General directed the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) to issue a proposed rule within 30 days that would address the proliferation of unmarked firearms increasingly being used in crimes. On May 7, 2021, the Department of Justice issued a notice of proposed rulemaking, and during the 90-day open comment period, the ATF received more than 290,000 comments, the highest number of comments submitted to a proposed rule in ATF’s history. Today’s announcement is also the latest in a series of steps the department has taken to address violent crime and gun violence.The final rule, as submitted to the Federal Register, can be viewed here: https://www.atf.gov/rules-and-regulations/definition-frame-or-receiver
To learn more about the rulemaking process, please see: https://www.federalregister.gov/uploads/2011/01/the_rulemaking_process.pdf -->Jefferson County woman sentenced for drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Kia Johnson, of Ranson, West Virginia, was sentenced today to six months of incarceration for a drug charge, United States Attorney William Ihlenfeld announced.
Johnson, 25, pleaded guilty in October 2020 to one count of “Aiding and Abetting Unlawful Use of Communication Facility.” Johnson admitted to using a phone to help distribute Phencyclidine (PCP) in September 2019 in Berkeley and Jefferson Counties.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Gina M. Groh presided.
Jamestown Woman Pleads Guilty to Drug ConspiracyRead 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 Antasia Babcock, 28, of Jamestown, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of acetyl fentanyl; 50 grams or more of methamphetamine; 400 grams or more of fentanyl; and 500 grams or more of cocaine. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorneys Joshua A. Violanti and Misha Coulson, who are handling the case, stated that Babcock conspired with others, including co-defendant Jun Martinez, to sell cocaine, methamphetamine, and heroin in the Jamestown area. Martinez arranged to receive the narcotics via mail from a source out of state. In mid-September 2020, Martinez traveled out of state to acquire more narcotics in-person and was pulled over by an Illinois State Police Trooper. During a search of his vehicle, law enforcement officers recovered approximately 6,359 grams of methamphetamine, 3,157 grams of fentanyl, 2,241 grams of cocaine, and marijuana products. While Martinez was detained on Illinois state charges, Babcock continued the narcotics distribution in Jamestown. On October 16, 2020, investigators executed a search warrant the Wescott Street residence that Babcock shared with Martinez and recovered methamphetamine, drug paraphernalia, a plastic packaging sealer machine, a drug ledger, and approximately $62,255 in U.S. currency.
Jun Martinez was previously convicted and is awaiting sentencing.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The plea is the result of an investigation by the Jamestown Metro Drug Task Force, under the direction of Jamestown Police Chief Timothy Jackson, and the Drug Enforcement Administration, under the direction of Acting Special Agent-in-Charge Timothy Foley, New York Field Division.
Sentencing is scheduled for September 21, 2022, before Judge Sinatra.
# # # #
Illegal alien sentenced for drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Lucio Javier Escobedo Fernandez, a Mexican national, was sentenced today to 63 months of incarceration for a drug charge, United States Attorney William Ihlenfeld announced.
Fernandez, 28, pleaded guilty in November 2021 to one count of “Conspiracy to Distribute Methamphetamine.” Fernandez admitted to working with others to distribute methamphetamine from March 2018 to August 2020 in Monongalia County and elsewhere.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Mon Metro Drug Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Illegal Possession of Drugs Sends Two Men to Federal PrisonRead the Press Release
SHREVEPORT/LAFAYETTE, La. - United States Attorney Brandon B. Brown announced that two defendants have been sentenced on federal charges in the Western District of Louisiana.
Chief United States District Judge S. Maurice Hicks, Jr. sentenced David Williams, 51, of Shreveport, to 110 months (9 years, 2 months) in prison, followed by 5 years of supervised release, for conspiracy to distribute and possess with intent to distribute methamphetamine. Williams was charged with eight other defendants in a drug trafficking conspiracy. On September 19, 2019, law enforcement agents investigating the case were conducting a wiretap on the phone of one of Williams’ co-defendants. During the call, Williams agreed to meet the co-defendant at a gas station and park in the back. Agents observed Williams arrive and get into the co-defendant’s vehicle for a short time. A trooper with Louisiana State Police conducted a traffic stop of Williams’ vehicle. Inside the vehicle, agents located a hidden compartment under the center console and inside were two plastic baggies containing methamphetamine with a gross weight of 89.7 grams and a small bag of marijuana. Agents intercepted another call on September 24, 2019 wherein Williams informed his co-defendant that he had been caught with the narcotics. Williams pleaded guilty to the charge on March 30, 2021.
This case was investigated by the DEA, ATF, Shreveport Police Department, Caddo Parish Sheriff’s Office, Greenwood Police Department, and Louisiana State Police. The case was prosecuted by Assistant U.S. Attorneys Tennille Gilreath and Allison Duncan.
In Lafayette, Louisiana, United States District Judge David C. Joseph sentenced Keelan Elaire, 25, of Lafayette, to 75 months (6 years, 3 months) in prison, followed by 3 years of supervised release, for illegal possession of controlled substances. Agents with the U.S. Drug Enforcement Administration (DEA) and the Lafayette Narcotics Unit began an investigation into drug trafficking activities in Lafayette. On September 30, 2021, law enforcement officers executed a search warrant at Elaire’s residence and inside the residence found a 9mm pistol and ammunition. In addition, agents found approximately 30 grams of fentanyl packaged in small baggies in a manner consistent with street-level narcotics sales, and a large amount of cash inside vehicles belonging to Elaire and his girlfriend. A second search warrant was executed at another residence where Elaire lived and agents found approximately 650 grams of a mixture or substance containing fentanyl, three m-30 pills believed to contain fentanyl stamped into counterfeit pills, and a money counter. Elaire admitted to agents that the fentanyl and cash belonged to him.
The case was investigated by the DEA and Lafayette Police Department Narcotics Unit and prosecuted by Assistant U.S. Attorneys Robert C. Abendroth and John W. Nickel.
# # #Huntington Man Pleads Guilty to Federal Gun CrimeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on December 30, 2021, officers with the Huntington Police Department observed a vehicle at the 3rd Avenue Speedway. The officers observed the driver and a passenger of the vehicle smoking marijuana.
The passenger, Jonathan Lee Sturkey, 37, was asked to step out of the vehicle. Sturkey admitted to the officers that he had a firearm. Officers retrieved a Smith & Wesson .38-caliber revolver from Sturkey’s left coat pocket. Sturkey was aware that he was prohibited from possessing a firearm because of his 2011 felony drug conviction in U.S. District Court for the Southern District of West Virginia.
Sturkey is scheduled to be sentenced on July 18, 2022, and faces up to 10 years in prison.
United States Attorney Will Thompson made the announcement and commended the Huntington Police Department for conducting the investigation.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Stephanie S. Taylor is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-21.
###
Hocking County couple charged federally with producing child pornographyRead the Press Release
COLUMBUS, Ohio – Two Logan, Ohio, individuals have been transferred to federal custody on charges alleging they created child pornography of at least three minor children, one as young as three-to-four years of age.
Robert Gemienhardt, 36, and Carrie Daniels, 41, each appeared in U.S. District Court on April 8.
According to court documents, the National Center for Missing and Exploited Children (NCMEC) received a tip from Kik messenger regarding Gemienhardt’s alleged online child exploitation activities. The Ohio Internet Crimes Against Children (ICAC) Task Force and the Hocking County Sheriff’s Office then began investigating the allegations.
Subsequent search warrants executed by the Hocking County Sherriff’s Office, in conjunction with the FBI, revealed that Gemienhardt and Daniels were acting together and allegedly produced child pornography through the grooming and sexual abuse of minor victims. It is alleged that Daniels also distributed images of the sexual abuse to Gemienhardt. In addition to the images Gemienhardt received from Daniels, Gemienhardt also possessed more than 1,100 images of child pornography.
Gemienhardt and Daniels were originally arrested on local charges in early March 2022.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Hocking County Sheriff Lanny E. North announced the charges. Assistant United States Attorney Emily Czerniejewski is representing the United States in this case.
Criminal complaints merely contain allegations, and defendants are presumed innocent unless proven guilty in a court of law.
# # #
Henry County Woman Sentenced to 13 Years for Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – A Blairstown, Missouri, woman was sentenced in federal court today for her role in a conspiracy to distribute substantial quantities of methamphetamine in the Henry County, Mo., area.
Vita P. Hurt, 67, was sentenced by U.S. District Judge Greg Kays to 13 years and two months in federal prison without parole.
On Aug. 11, 2021, Hurt pleaded guilty to participating in a conspiracy to distribute more than five kilograms of methamphetamine from March 1, 2015, to June 11, 2019. Hurt admitted that she obtained methamphetamine from various sources and distributed it in the Blairstown area. She reported dealing in quantities of more than 500 grams of methamphetamine.
Law enforcement officers searched Hurt’s residence on June 11, 2019, and found two plastic bags that contained 4.77 grams of methamphetamine in her purse. Officers found a jar in Hurt’s bedroom that contained 175.31 grams of a liquid that contained methamphetamine; Hurt said the jar contained acetone that she used to clean methamphetamine.
This case was prosecuted by Assistant U.S. Attorney Byron H. Black. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Missouri State Highway Patrol.
Harrison County man sentenced to 14 years for child pornography chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Randy McKinley, of Bridgeport, West Virginia, was sentenced today to 168 months of incarceration for a child pornography charge, United States Attorney William Ihlenfeld announced.
McKinley, 58, pleaded guilty in November 2021 to one count of “Possession of Child Pornography.” McKinley admitted to having child pornography with children under the age of 12 in October 2020 in Harrison County.
McKinley was also ordered to pay $15,000 in restitution to the victims and victims assistance funds.
Assistant U.S. Attorney Danae DeMasi-Lemon prosecuted the case on behalf of the government. The Bridgeport Police Department, the West Virginia State Police, and the Harrison County Sheriff’s Office investigated
Chief U.S. District Judge Thomas S. Kleeh presided.
Great Falls meth trafficker sentenced to 54 months in prisonRead the Press Release
GREAT FALLS – A Great Falls woman who admitted to working with others to bring approximately seven pounds of methamphetamine from Las Vegas, Nevada, back to Montana for distribution was sentenced today to 54 months in prison, to be followed by four years of supervised release, said U.S. Attorney Leif M. Johnson said.
Ashley Nicole Rico, 34, pleaded guilty in October 2021 to conspiracy to distribute methamphetamine.
Chief U.S. District Judge Brian M. Morris presided.
The government alleged in court documents that Rico pooled money with co-defendants and traveled with them to Las Vegas, Nevada, to buy meth. Rico waited while co-defendants went to the source and purchased the meth and then traveled back to Montana with them. Law enforcement intervened before Rico received her portion of the meth. Law enforcement seized approximately seven pounds of meth. Officers ultimately stopped a vehicle being driven by co-defendant Lillian Lapier and found about 3.6 pounds of meth in the trunk. Law enforcement also executed a search warrant on the Helena residence of co-defendant, Rhonda Lapier, and located three, one-pound bags of meth and $6,132 in a bedroom. Officers stopped another suspect vehicle, driven by Rico, who was arrested on a state warrant. Rico admitted to distributing meth in Great Falls and that she and others had traveled to Las Vegas, picked up meth there and had contributed $1,000 to the deal. Seven pounds of meth is the equivalent of approximately 25,368 doses.
Assistant U.S. Attorney Ethan R. Plaut prosecuted the case, which was investigated by the Russell Country Drug Task Force, the Missouri River Drug Task Force, FBI, Great Falls Police Department, Cascade County Sheriff’s Office and Lewis & Clark County Sheriff’s Office.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
XXX
Fresno Man Sentenced to over 11 Years in Prison for Receipt and Distribution of Child PornographyRead the Press Release
FRESNO, Calif. — Steven Dale Jones, 43, of Fresno, was sentenced today to 11 and a half years in prison by U.S. District Judge Dale A. Drozd for receipt and distribution of child pornography, U.S. Attorney Phillip A. Talbert announced.
The sentence imposed includes a term of supervised release of 20 years during which Jones’s access to minors, computers, and the internet will be restricted. He will also be required to register as a sex offender. The court has scheduled a hearing for June 27, 2022, to address restitution to victims.
According to court documents, Jones was detected by law enforcement investigators when he was sharing numerous child pornography files on a BitTorrent file-sharing network in December 2016. He admitted to investigating agents that he had used file-sharing programs for several years to obtain child pornography. He admitted in court, when pleading guilty, that between January 2012 and April 2017, he used a BitTorrent program and the TOR network to search for and download thousands of images of child pornography.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney David Gappa and Child Exploitation and Obscenity Section Trial Attorneys Alicia Bove and Nadia Prinz prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Fourth Defendant Pleads Guilty in Scheme to Employ Homeless Individuals to Cash Bogus Business ChecksRead the Press Release
PROVIDENCE, R.I. – A fourth Georgia man charged in federal court in Rhode Island with participating in a long-running scheme to entice homeless and transient individuals in the Providence area to cash counterfeit business checks in return for cash payments pled guilty today to conspiracy to commit bank fraud, announced United States Attorney Zachary A. Cunha.
Cortavious Benford, 28, of Atlanta, GA, pled guilty today; Austin Weaver, 26, of Decatur, GA, pled guilty on April 6; Jalen Ronald Stanford, 28, of East Point, GA, pled guilty on March 10; and Michael Williams, 27, of East Point, GA, pled guilty on July 7, 2021.
Benford, Weaver, and Stanford are awaiting sentencing; Williams was sentenced by U.S. District Chief Judge John J. McConnell, Jr., on February 16, 2022, to 41 months in federal prison to be followed by 3 years of federal supervised release. A defendant’s sentence is determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
According to charging documents, homeless and other individuals enlisted by the four men were provided a bogus business check in their name and driven to financial institutions in Rhode Island, Massachusetts, Connecticut, Maine, and elsewhere. The bogus business checks had been created by members of the conspiracy using stolen banking information of actual businesses. The individuals recruited by the conspirators were instructed on how to enter the bank, cash the check using their own Rhode Island ID card or driver’s license for identification, and then return to the vehicle with the cash. Upon their return, a member of the conspiracy paid them between $100 and $200.
Two members of the conspiracy, Michael Williams and Cortavious Benford, were arrested on February 5, 2021, after they recruited and drove a homeless person to a Providence bank. They threatened to injure him if he failed to provide them with all of the check’s proceeds. Despite the threat, once inside the bank, the man pointed out the vehicle parked outside of the bank as containing individuals who provided him with a counterfeit check. Providence Police located the vehicle a short distance away and arrested Williams and Benford. They were in possession of $12,000 in cash.
A court-authorized search of a Providence residence by Providence Police and the United States Secret Service resulted in the seizure of a computer, which had a program used to design and print checks; a printer; blank check stock; and an envelope containing stolen checks and approximately $5,000 in cash. Several completed fraudulent checks were found on the computer.
Jalen Ronald Stanford was arrested on February 25, 2021; Austin Weaver was arrested on March 3, 2021.
The investigation determined that members of the conspiracy attempted to cash approximately $677,687 worth of counterfeit checks throughout the New England region, causing losses to financial institutions of approximately $480,000.
The cases are being prosecuted by Assistant U.S. Attorney Lee H. Vilker.
###
Former Portland Gang Member Sentenced to Federal Prison for Illegal Firearm PossessionRead the Press Release
PORTLAND, Ore.—A former member of Portland’s Hoover Criminal Gang was sentenced to federal prison today for illegally possessing a firearm as a convicted felon.
Javontae Nabien Gibson, 28, of Portland, was sentenced to 36 months in federal prison and three years’ supervised release.
According to court documents, as part of a federal racketeering investigation of the Hoover Criminal Gang, law enforcement obtained photos Gibson, a convicted felon, was posting online as advertisements for the sale of firearms and drugs. In August 2020, investigators executed a search warrant on Gibson’s northeast Portland apartment. They found and seized six handguns, two rifles, more than a dozen magazines, hundreds of rounds of ammunition, and approximately $5,000 in cash.
On August 19, 2020, a federal grand jury in Portland returned an indictment charging Gibson with illegally possessing a firearm as a convicted felon. On November 15, 2021, he pleaded guilty to the single charge.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the Portland Police Bureau, Multnomah County Sheriff’s Office, Gresham Police Department, and FBI. It was prosecuted by the U.S. Attorney’s Office for the District of Oregon.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Former Managing Partner of Manhattan Investment Advisory Firm Sentenced to 12 Years for Defrauding Investors in an over $120 Million Ponzi-Like SchemeRead the Press Release
Damian Williams, United States Attorney for the Southern District of New York, announced that DAVID HU, former managing partner and chief investment officer of the Manhattan-based investment advisory firm International Investment Group (“IIG”), was sentenced today to 12 years in prison for his role in an over $120 million scheme to defraud IIG’s clients and investors. HU pled guilty in January 2021 to investment adviser fraud, securities fraud, and wire fraud offenses. U.S. District Judge Alvin K. Hellerstein announced today’s sentence, which will be formally imposed following the conclusion of forfeiture and restitution proceedings in the case.
U.S. Attorney Damian Williams said: “David Hu shirked his fiduciary responsibilities and defrauded IIG funds and investors for more than a decade. Hu’s lies caused millions of dollars of losses. Hu mismarked millions of dollars of loan assets, falsified paperwork to create fake loans, sold overvalued and fake loans, used the proceeds from those sales to pay off earlier investors, and falsified paperwork to deceive auditors and avoid scrutiny. Today’s sentence sends the message that brazen fraud does not pay and will be appropriately punished.”
According to the Information and based on statements made and documents filed in federal court in this case:
Background of IIG
HU and co-conspirator MARTIN SILVER founded IIG in 1994. HU was a managing partner and the chief investment officer of IIG. IIG, an SEC-registered investment adviser, provided investment management and advisory services, including for three private funds that it operated: (1) the IIG Trade Opportunities Fund N.V. (“TOF”); (2) the IIG Global Trade Finance Fund, Ltd. (“GTFF”); and (3) the IIG Structured Trade Finance Fund, Ltd. (“STFF”). IIG also advised the Venezuela Recovery Fund (“VRF”), a fund that managed the remaining assets of a failed Venezuelan bank (VRF, together with TOF, GTFF, and STFF, the “IIG Funds”). In March 2018, IIG reported to the SEC that it had approximately $373 million in assets under management.
IIG advertised itself as specializing in global trade financing, particularly in providing trade finance loans to small and medium-sized businesses. IIG’s principal investment advisory strategy, including with respect to the IIG Funds, was investing in trade finance loans that it also originated. Trade finance loans are used by small and medium-sized companies, typically exporters and importers, to facilitate international trade. IIG’s purported expertise was in trade finance loans to borrowers located in Central or South America, and in a variety of industries, with a stated focus on “soft commodities,” such as coffee, agriculture, fishing, and other food products. IIG’s trade finance loans were purportedly secured by collateral, such as the underlying traded goods, assets held by the borrowers, or expected payments by third parties.
Investments in TOF, STFF, and GTFF were marketed by IIG to institutional investors, such as pension funds, hedge funds, and insurers. In offering memoranda and communications with investors, IIG advertised strict risk controls, such as promises to use diligence to carefully select borrowers or issuers with trusted management and marketable assets, and portfolio concentration limits based on borrower, developing country, and industry.
IIG purported to value the trade finance loans in the IIG Funds on a regular basis. IIG and, in turn, HU, received a performance fee with respect to the IIG Funds, as well as a management fee, which was calculated as a percentage of the assets under management held in the Funds.
The Scheme
From approximately 2007 to 2019, HU conspired to defraud investors in IIG-managed funds by: (i) overvaluing distressed loans held by the IIG Funds, (ii) falsifying paperwork to create a series of fake loans that were classified, fraudulently, as positively performing loans, and to otherwise hide losses, (iii) selling overvalued and fake loans to a collateralized loan obligation trust and new private funds established and advised by IIG, and (iv) using the proceeds from those fraudulent sales to generate liquidity required to pay off earlier investors in a Ponzi-like manner.
The scheme HU participated in involved, among other things:
- Mismarking the value of multiple loans that had, in reality, defaulted (the “Defaulted Loans”).
- Mismarking multiple loans that were distressed (the “Distressed Loans”). These Distressed Loans included, for example, loans for which the borrowers had missed multiple scheduled payments.
- Creating fictitious loans in order to hide the losses resulting from the Defaulted Loans, including from auditors reviewing TOF’s financials, by removing the Defaulted Loans from the TOF portfolio and replacing them with tens of millions of dollars in fictitious loans to purported borrowers in foreign countries (the “Fake Loans”).
- Using a collateralized loan obligation trust (the “CLO Trust”) to create liquidity through investments in fraudulent loans.
- Using the CLO Trust and Panamanian shell entities to cover up losses. Specifically, HU caused the creation of shell entities domiciled in Panama (“Panamanian Shell Entities”) that were controlled by an IIG nominee. Then, HU caused the CLO Trust to enter into fake loan transactions with the Panamanian Shell Entities. HU caused the creation of fake promissory notes and other paperwork to conceal the fraudulent nature of the loans to the Panamanian Shell Entities. Finally, under the guise of the fake loan transactions with the Panamanian Shell Entities, the CLO Trust disbursed funds that HU diverted to TOF in order to pay off TOF’s various debts and obligations.
- Generating liquidity by selling fraudulent loans to two new private IIG managed funds: GTFF and STFF. A foreign institutional investor provided $70 million as the seed investment for GTFF, and, later, $130 million as the seed investment for STFF.
- Inducing a retail mutual fund to invest in a fictitious $6 million loan. Specifically, in or about December 2012, IIG became an investment adviser to an open-ended mutual fund marketed to retail investors (the “Retail Fund”). As an investment adviser to the Retail Fund, IIG made investment recommendations, including recommendations that the Retail Fund invest in trade finance loans originated by IIG. In or about February 2017, a borrower (the “Argentine Borrower”) had failed to pay the principal on an approximately $6 million loan (“Loan-1”) in which the Retail Fund had invested and which was nearing its maturity date. In or about March 2017, HU caused approximately $6 million to be transferred into an account associated with the Argentine Borrower from the account of a different borrower (“Borrower-1”), and further directed the funds from Borrower-1’s account to pay off the debt owed by the Argentine Borrower to the Retail Fund. To replace the funds from Borrower-1’s account that were used to make it appear as though the Argentine Borrower had repaid its debt to the Retail Fund, HU fraudulently induced the Retail Fund to invest in a new, fake $6 million loan to the Argentine Borrower (the “New Loan”). HU then directed that the proceeds from the fraudulently induced New Loan be transferred into Borrower-1’s account, effectively reimbursing the account for the earlier $6 million transfer to the Retail Fund. To further conceal the fraudulent nature of the New Loan, HU caused the creation of forged documents to make it appear as though the New Loan was a legitimate loan to the Argentine Borrower.
* * *
In addition to the prison sentence, HU, 64, of West Orange, New Jersey, was ordered to serve three years of supervised release. The Court also announced that it would impose restitution to victims and forfeiture of the proceeds of the offenses, with the amounts to be determined at a later date.
SILVER pled guilty to investment adviser fraud, securities fraud, and wire fraud offenses in April 2021 and his sentencing is pending.
Mr. Williams praised the investigative work of the FBI and also thanked the U.S. Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Drew Skinner, Negar Tekeei, and Alex Rossmiller are in charge of the prosecution.
Former Indiana State Senator Pleads Guilty to Federal Campaign Finance Violation and Making False Statements to the FBIRead the Press Release
INDIANAPOLIS – Darryl Brent Waltz, 48, of Greenwood, Indiana, pled guilty in federal court today to two felonies: making and receiving conduit contributions, and making false statements to the Federal Bureau of Investigation. Waltz faces up to five years in prison for each offense. He will be sentenced by U.S. District Court Judge James R. Sweeney II at a later date.
The announcement was made by Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, Kenneth A. Polite, Jr., Assistant Attorney General for the Criminal Division of the U.S. Department of Justice, and Steven D’Antuono, Assistant Director in Charge of the FBI’s Washington Field Office.
Trial for the other individual charged in the case, John S. Keeler, is scheduled to begin on April 18, 2022. Mr. Keeler is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Federal Official Sentenced to Prison for Contract Bribery Conspiracy and Tax FraudRead the Press Release
LAS VEGAS – A former official with the U.S. Bureau of Reclamation (USBR) was sentenced today to two years and six months in prison for his role in a bribery scheme involving a federal contract and committing $1.5 million in tax fraud.
Frederick J. Leavitt, 50, of Henderson, Nev., pleaded guilty in October 2019 to one count of conspiracy to commit honest services fraud and one count of conspiracy to defraud the United States. In addition to imprisonment, U.S. District Judge Andrew P. Gordon ordered Leavitt to pay restitution in the amount of $704,002.
According to court documents, Leavitt had been employed by the USBR as Director of the Financial Management Office for the Lower Colorado Region, which includes the Hoover Dam. From about February 2015 through about February 2016, Leavitt and co-conspirator Dustin M. Lewis — a certified public accountant employed by L.L. Bradford & Company, an accounting firm in Las Vegas — devised and executed a scheme to defraud the United States. Leavitt had been assigned to a selection committee that awarded government contracts to perform auditing services for USBR programs. As part of the honest services fraud conspiracy, Lewis paid more than $150,000 in bribes to Leavitt, which they agreed to conceal. In exchange, Leavitt steered an audit contract to L.L. Bradford.
In a separate tax fraud conspiracy, Leavitt and Lewis worked together to file fraudulent tax forms for tax year 2013, on behalf of six business entities that claimed over $11,000,000 collectively in false business deductions. As a result, they caused a tax loss to the IRS in excess of $1.5 million.
Co-conspirator Lewis pleaded guilty in January 2020. He is scheduled to be sentenced on August 18, 2022.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
This case was investigated by the FBI, the Internal Revenue Service – Criminal Investigation, and the Office of Inspector General for the Department of Interior. Assistant U.S. Attorney Steven Myhre and Tax Division Trial Attorney Patrick Burns are prosecuting the case.
###
Former Department of Homeland Security Employee Convicted of Scheme to Defraud the United StatesRead the Press Release
A former Acting Branch Chief of the Information Technology Division of the U.S. Department of Homeland Security (DHS-OIG) was convicted today by a jury of multiple federal charges stemming from the theft of proprietary software and sensitive databases from the U.S. government.
Murali Y. Venkata, 56, of Aldie, Virginia, was convicted of conspiracy to defraud the U.S. government, theft of government property, wire fraud, aggravated identity theft, and obstruction. Venkata, along with co-conspirators Charles K. Edwards, who previously served as the Acting Inspector General of DHS-OIG, and Sonal Patel, another official at DHS-OIG, executed a scheme to steal confidential and proprietary software from the government along with the personally identifying information (PII) of hundreds of thousands of federal employees. Venkata worked for DHS-OIG from June 2010 until he was placed on administrative leave in October 2017 following the charges in this case, including serving for a period as an Acting Branch Chief in the Information Technology Division. Before he joined DHS-OIG, Venkata worked at the U.S. Postal Service’s Office of Inspector General (USPS-OIG). At both agencies, Venkata had access to software systems, including one used for case management and other systems holding PII of federal employees.
Edwards pleaded guilty in January 2022 and Patel pleaded guilty in April 2019 to stealing property from the U.S. government for the purpose of developing a commercial version of a case management system to be offered for sale to government agencies. Venkata was convicted for his role in the conspiracy, which included exfiltrating proprietary source code and sensitive databases from DHS-OIG facilities, as well as assisting Edwards in setting up three computer servers in Edwards’s residence so that software developers in India could access the servers remotely and develop the commercial version of the case management system.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Matthew M. Graves for the District of Columbia, Inspector General Joseph V. Cuffari of DHS-OIG, and Inspector General Tammy Whitcomb of USPS-OIG made the announcement.
Senior Litigation Counsel Victor R. Salgado and Trial Attorney Celia Choy of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Christine M. Macey, of the Fraud, Public Corruption, and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia prosecuted the case. Assistant U.S. Attorney David B. Kent, also of the Fraud, Public Corruption, and Civil Rights Section for the District of Columbia, provided significant assistance in the investigation of this matter.
Former Department of Homeland Security Employee Convicted of Scheme to Defraud the United StatesRead the Press Release
WASHINGTON - A former Acting Branch Chief of the Information Technology Division of the U.S. Department of Homeland Security (DHS-OIG) was convicted today by a jury of multiple federal charges stemming from the theft of proprietary software and sensitive databases from the U.S. government.
Murali Y. Venkata, 56, of Aldie, Virginia, was convicted of conspiracy to defraud the U.S. government, theft of government property, wire fraud, aggravated identity theft, and obstruction. Venkata, along with co-conspirators Charles K. Edwards, who previously served as the Acting Inspector General of DHS-OIG, and Sonal Patel, another official at DHS-OIG, executed a scheme to steal confidential and proprietary software from the government along with the personally identifying information (PII) of hundreds of thousands of federal employees.
Venkata worked for DHS-OIG from June 2010 until he was placed on administrative leave in October 2017 following the charges in this case, including serving for a period as an Acting Branch Chief in the Information Technology Division. Before he joined DHS-OIG, Venkata worked at the U.S. Postal Service’s Office of Inspector General (USPS-OIG). At both agencies, Venkata had access to software systems, including one used for case management and other systems holding PII of federal employees.
Edwards pleaded guilty in January 2022 and Patel pleaded guilty in April 2019 to stealing property from the U.S. government for the purpose of developing a commercial version of a case management system to be offered for sale to government agencies. Venkata was convicted for his role in the conspiracy, which included exfiltrating proprietary source code and sensitive databases from DHS-OIG facilities, as well as assisting Edwards in setting up three computer servers in Edwards’s residence so that software developers in India could access the servers remotely and develop the commercial version of the case management system.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Matthew M. Graves for the District of Columbia, Inspector General Joseph V. Cuffari of DHS-OIG, and Inspector General Tammy Whitcomb of USPS-OIG made the announcement.
Senior Litigation Counsel Victor R. Salgado and Trial Attorney Celia Choy, of the Criminal Division’s Public Integrity Section, and Assistant U.S. Attorney Christine M. Macey, of the Fraud, Public Corruption, and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia, prosecuted the case. Assistant U.S. Attorney David B. Kent, also of the Fraud, Public Corruption, and Civil Rights Section for the District of Columbia, provided significant assistance in the investigation of this matter.
Former Controller Charged with Stealing $2.3 Million from EmployerRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man was charged with embezzling over $2.3 million from a New York-based company where he had been the controller since 2001, U.S. Attorney Philip R. Sellinger announced today.
Gerard Beauzile, 61, of South Plainfield, New Jersey, is charged by indictment with 10 counts of wire fraud. He appeared by videoconference today before U.S. Magistrate Judge James B. Clark, III, and was released on $200,000 unsecured bond.
According to documents filed in this case and statements made in court:
From 2001 through February 2021, Beauzile worked as controller, heading a New York-based company’s accounting department. On a monthly basis, from 2014 through December 2020, Beauzile issued company checks to himself, and deposited those checks into his personal bank account at bank branches in New York, near his employer’s headquarters.
Over the course of the scheme, Beauzile issued approximately 140 checks to himself totaling in excess of $2.3 million, which he used for his own benefit. Beauzile hid his scheme by failing to enter some of the checks into the victim company’s accounting system; causing checks to appear as though they were made payable to vendors when, in fact, Beauzile issued them to himself; changing the vendors invoices to correspond with the accounting of those checks; and falsifying the victim company’s bank account statements.
Each count of wire fraud is punishable by a maximum penalty of 20 years in prison and a maximum $250,000 fine.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George Crouch in Newark, with the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorney Blake Coppotelli of the Economic Crimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed to be innocent unless and until proven guilty.
Former Chief Operating Officer of Davis Bio-Pesticide Company Sentenced to 2 Years in Prison for Conspiracy to Commit Mail, Wire, and Securities FraudRead the Press Release
SACRAMENTO, Calif. — Hector Absi, 51, of Las Vegas, Nevada, was sentenced today to two years in prison for conspiracy to commit mail fraud, wire fraud, and securities fraud, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Absi is the former head of the sales department of Marrone Bio Innovations Inc. (MBI), a company headquartered in Davis that produces “bio-based” pesticides. Absi also served as MBI’s Chief Operating Officer from January 2014 until his resignation in August 2014. MBI is a publicly traded company; its stock trades on the NASDAQ exchange under the ticker symbol “MBII.” As a publicly traded company, it is required to file quarterly and annual reports with the Securities and Exchange Commission (SEC). In its reports, MBI stated that it recorded revenue in accordance with generally accepted accounting principles (GAAP).
On Oct. 17, 2019, Absi pleaded guilty conspiracy to commit mail fraud, wire fraud, and securities fraud. According to his plea agreement, in order to increase sales, Absi sold MBI products to customers with side agreements that offered “inventory protection” under which MBI agreed to either repurchase the product from the customer or continue the date by which the customer would need to make full payment for the product. Under GAAP, revenue from sales that include such agreements cannot be recognized on the company’s books at the time of the sales. Between March 2013 and July 2014, Absi conspired with at least one other MBI employee to misrepresent to MBI’s accounting department, its external auditors, and the investing public that MBI had made no sales under such terms. By concealing the practice, Absi caused MBI to report a doubling of its revenue in 2013 in comparison to 2012. Absi also conspired to backdate the delivery of certain shipments of MBI’s products to enhance MBI’s reported revenues for the quarter. Absi received a performance-based bonus and exercised stock options during a time when MBI’s inflated revenue figures were being reported.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Lee S. Bickley prosecuted the case.
A restitution hearing is scheduled for June 13, 2022.
Former Caltrans Contract Manager Pleads Guilty to Bid Rigging and BriberyRead the Press Release
A former contract manager for the California Department of Transportation (Caltrans) pleaded guilty today for his role in a bid-rigging and bribery scheme involving Caltrans improvement and repair contracts.
According to a plea agreement filed today in the U.S. District Court for the Eastern District of California in Sacramento, Choon Foo “Keith” Yong and his co-conspirators engaged in a conspiracy, from early 2015 through late 2019, to thwart the competitive bidding process for Caltrans contracts to ensure that companies controlled by Yong’s co-conspirators submitted the winning bid and would be awarded the contract. Yong is also charged with accepting bribes while working for Caltrans, a California state agency that receives significant federal funding. Yong received the bribes in the form of cash payments, wine, furniture and remodeling services on his home. The total value of the payments and benefits Yong received exceeded $800,000. In addition to his guilty plea, Yong agreed to pay restitution and cooperate with the ongoing investigation.
“Today’s guilty plea is the first in the Antitrust Division’s ongoing investigation into bribery and bid rigging at Caltrans,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Given the Infrastructure Investment and Jobs Act’s $1.2 trillion authorization and the critical role of transportation infrastructure in our nation, rooting out bid-rigging schemes that cheat the competitive bidding process remains a top priority for the division and its Procurement Collusion Strike Force partners.”
Yong received more than $800,000 of bribes in the form of cash payments, wine, furniture, and remodeling services on his home.Yong is scheduled to be sentenced on Aug. 22 by U.S. District Judge Kimberly J. Mueller. For the bid-rigging conspiracy, Yong faces a maximum statutory penalty of 10 years of incarceration and a fine of up to $1 million or twice the gross pecuniary gain or twice the gross pecuniary loss resulting from the offense. For bribery concerning programs receiving federal funds, Yong faces a maximum statutory penalty of 10 years of incarceration and a fine of up to $250,000 or twice the gross pecuniary gain or twice the gross pecuniary loss resulting from the offense. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and U.S. Sentencing Guidelines.
Today’s guilty plea is the first to result from a joint investigation being conducted by the Antitrust Division’s San Francisco office, the U.S. Attorney’s Office for the Eastern District of California, and the FBI’s Sacramento Field Office as part of the Justice Department’s Procurement Collusion Strike Force (PCSF).
In November 2019, the Department of Justice created the Procurement Collusion Strike Force (PCSF), a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government – federal, state and local. In fall 2020, the Strike Force expanded its footprint with the launch of PCSF: Global, designed to deter, detect, investigate and prosecute collusive schemes that target government spending outside of the United States. To learn more about the PCSF, or to report information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to defense-related spending.
Former Caltrans Contract Manager Pleads Guilty to Bid Rigging and BriberyRead the Press Release
A former contract manager for the California Department of Transportation (Caltrans) pleaded guilty today for his role in a bid-rigging and bribery scheme involving Caltrans improvement and repair contracts.
According to a plea agreement filed today in the U.S. District Court for the Eastern District of California in Sacramento, Choon Foo “Keith” Yong and his co-conspirators engaged in a conspiracy, from early 2015 through late 2019, to thwart the competitive bidding process for Caltrans contracts to ensure that companies controlled by Yong’s co-conspirators submitted the winning bid and would be awarded the contract. Yong is also charged with accepting bribes while working for Caltrans, a California state agency that receives significant federal funding. Yong received the bribes in the form of cash payments, wine, furniture and remodeling services on his home. The total value of the payments and benefits Yong received exceeded $800,000. In addition to his guilty plea, Yong agreed to pay restitution and cooperate with the ongoing investigation.
“Today’s guilty plea is the first in the Antitrust Division’s ongoing investigation into bribery and bid rigging at Caltrans,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Given the Infrastructure Investment and Jobs Act’s $1.2 trillion authorization and the critical role of transportation infrastructure in our nation, rooting out bid-rigging schemes that cheat the competitive bidding process remains a top priority for the division and its Procurement Collusion Strike Force partners.”
Yong received more than $800,000 of bribes in the form of cash payments, wine, furniture, and remodeling services on his home.
Yong is scheduled to be sentenced on Aug. 22 by U.S. District Judge Kimberly J. Mueller. For the bid-rigging conspiracy, Yong faces a maximum statutory penalty of 10 years of incarceration and a fine of up to $1 million or twice the gross pecuniary gain or twice the gross pecuniary loss resulting from the offense. For bribery concerning programs receiving federal funds, Yong faces a maximum statutory penalty of 10 years of incarceration and a fine of up to $250,000 or twice the gross pecuniary gain or twice the gross pecuniary loss resulting from the offense. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and U.S. Sentencing Guidelines.
Today’s guilty plea is the first to result from a joint investigation being conducted by the Antitrust Division’s San Francisco office, the U.S. Attorney’s Office for the Eastern District of California, and the FBI’s Sacramento Field Office as part of the Justice Department’s Procurement Collusion Strike Force (PCSF).
In November 2019, the Department of Justice created the Procurement Collusion Strike Force (PCSF), a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government – federal, state and local. In fall 2020, the Strike Force expanded its footprint with the launch of PCSF: Global, designed to deter, detect, investigate and prosecute collusive schemes that target government spending outside of the United States. To learn more about the PCSF, or to report information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to defense-related spending.
Former Alabama Correctional Sergeant Sentenced for Assaulting InmatesRead the Press Release
Montgomery, Alabama – The Justice Department today announced that Ulysses Oliver Jr., 47, a former Alabama Department of Corrections Sergeant, was sentenced in federal court to 30 months of imprisonment, to be followed by three years of supervised release. There is no parole in the federal system. Oliver previously pleaded guilty to assaulting two inmates at ADOC’s Elmore Correctional Facility.
According to court documents, on Feb. 16, 2019, Oliver went to an observation room holding the two inmate victims, who were handcuffed and sitting quietly. Oliver pulled the first victim from the observation room into an adjacent hallway, where he struck the victim multiple times with his fists and feet, and then used his collapsible baton to strike the victim approximately nineteen times. After assaulting the first victim, Oliver returned to the observation room and pulled the second victim into the hallway. Oliver kicked the second victim and used his baton to strike the victim approximately ten times. During the assaults, the victims were handcuffed behind their backs, did not resist, and posed no threat. Afterward, Oliver returned to the observation room where the victims were being held and shoved the tip of his baton into the face of one of the victims, lacerating the victim’s face. Oliver assaulted the victims as punishment because he believed that the victims had brought contraband into the facility. Oliver assaulted the victims in the presence of, or within earshot of, other ADOC correctional officers, who did not intervene to prevent the assaults.
Two other former corrections officers have pleaded guilty in connection with this incident, and a third was convicted at trial. Former ADOC correctional officers Bryanna Mosley and Leon Williams pleaded guilty in May and July 2019, respectively, to failing to intervene to stop the assaults. Another officer, former ADOC correctional lieutenant Willie Burks, who was the shift commander during the Feb. 16, 2019 incident, was convicted by a federal jury on July 21, 2021, of failing to intervene to stop Oliver from assaulting the second inmate.
“The Constitution forbids cruel and unusual punishment, which includes malicious uses of force by correctional officers,” said Assistant Attorney General Kristen Clarke of the Civil Rights Division. “The Department of Justice will hold to account officers who brutalize incarcerated persons.”
“The actions of Mr. Oliver and his co-defendants run completely counter to the responsibilities and trust given to correctional officers,” said U.S. Attorney Sandra J. Stewart for the Middle District of Alabama. “Oliver knew that the use of force in this case was unnecessary and excessive, and so did the other officers involved. While I fully support the difficult and dangerous jobs that these officers undertake each day, my office remains committed to holding those that ignore their oaths accountable.”
"Corrections officers are expected to safeguard the civil rights of prisoners,” stated Special Agent in Charge Paul Brown with the FBI’s Mobile Division. “These officers ignored their duties and must be held to account for their actions. The FBI will continue to work with our law enforcement partners to investigate violations of people’s civil rights."
“The ADOC has zero tolerance for violence within its facilities, including excessive use-of-force by staff. Excessive use-of-force is not acceptable under any circumstances, and preventing these incidents is a high priority for the Department,” said Chief Law Enforcement Officer Arnaldo Mercado of the Alabama Department of Corrections Law Enforcement Services Division. “When an allegation of excessive force is made, or an incident of such nature is reported or discovered, the Department conducts a thorough investigation. Employees who are found to have violated the highest standards of law enforcement, to which the ADOC is steadfastly committed, will be referred for prosecution and the LESD will support prosecution to the full extent of the law.”
This case was investigated by the FBI’s Mobile Division and ADOC’s Law Enforcement Services Division. Assistant U.S. Attorney Eric Counts of the Middle District of Alabama and Trial Attorney David Reese of the Civil Rights Division prosecuted the case.
Folsom Man Pleads Guilty to Scheme Involving the Sale of Stolen MacBooksRead the Press Release
SACRAMENTO, Calif. — Philip James, 35, of Folsom, pleaded guilty today to transporting stolen property interstate, U.S. Attorney Phillip A. Talbert announced.
According to court documents, from October 2015 through June 2020, James purchased almost 1,000 stolen Apple MacBooks from multiple individuals, including Cory Beck, Eric Castaneda, and Jonas Jarut. After purchasing the MacBooks, James generally resold and shipped them from Folsom to buyers located outside California.
Beck worked in the information technology department at an electric vehicle and clean energy company based in Palo Alto, “Company 1.” Beginning in October 2015, Beck stole new MacBooks from Company 1 and sold them to James. In total, James purchased at least 100 MacBooks that Beck stole from Company 1.
Eric Castaneda’s sister, Patricia Castaneda, worked in the School of Humanities and Sciences at a private university in Stanford, California, “University 1.” Beginning in February 2016, Patricia Castaneda stole new MacBooks from University 1 and gave them to Eric Castaneda to sell to James. In total, James purchased from Eric Castaneda at least 800 MacBooks that Patricia Castaneda stole from University 1.
Jarut worked as a database administrator in the Graduate School of Education at a public university in Berkeley, “University 2.” Beginning in March 2019, Jarut stole new MacBooks from University 2 and sold them to James. In total, James purchased at least 90 MacBooks Jarut stole from University 2.
As part of his plea agreement, James agreed to pay restitution as follows: $2,283,155 to University 1; $256,485 to Company 1; and $209,057 to University 2.
This case is a product of an investigation by the IRS-Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorney Matthew Thuesen is prosecuting the case.
Chief U.S. District Judge Kimberly J. Mueller is scheduled to sentence James on July 25, 2022. Jarut faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the court’s discretion after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
In separate cases, Eric Castaneda, Patricia Castaneda, Beck, and Jarut pleaded guilty for their roles in the scheme.
Federal Officials Unveil Two Indictments Charging 14 People with Illegally Trafficking 400 Firearms into PhiladelphiaRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams, Bureau of Alcohol, Tobacco, Firearms and Explosives Philadelphia Field Division Special Agent in charge Matt Varisco announced federal charges in two separate interstate firearms trafficking cases at a press conference held at Philadelphia ATF Headquarters today. Both cases involve individuals illegally trafficking firearms from states in the southern United States into Philadelphia, a large northeastern city, a fact pattern which is known as the ‘iron pipeline.’ Taken together, both trafficking conspiracies are alleged to be responsible for illegally putting approximately 400 firearms on the streets.
In the first case, captioned United States v. Norman, et al, the following 11 defendants have been charged by Indictment with conspiracy to deal firearms without a license and to make a false statement to a federally licensed firearms dealer:
- Fredrick Norman, 25, of Atlanta, GA;
- Brianna Walker a/k/a “Mars, 23, of Atlanta, GA;
- Charles O’Bannon a/k/a “Chizzy,” 24, of Villa Rica, GA;
- Stephen Norman, 23, of Villa Rica, GA;
- Devin Church a/k/a “Lant,” 24, of Villa Rica, GA;
- Kenneth Burgos a/k/a “Peppito,” 23, of Philadelphia, PA;
- Edwin Burgos a/k/a “Rock,” 29, of Philadelphia, PA;
- Roger Millington, 25, of Philadelphia, PA;
- Ernest Payton, 30, of Philadelphia, PA;
- Roselmy Rodriguez, 22, of Philadelphia, PA; and
- Brianna Reed, 21, of Shippensburg, PA.
Additionally, defendants Edwin Burgos and Kenneth Burgos were each charged with dealing firearms without a license.
In the second case, captioned United States v. Ware, et al, the following three people have been charged by Indictment with conspiracy to deal firearms without a license and to make a false statement to a federally licensed firearms dealer:
- Muhammad Ware a/k/a “Moo,” 26, of Myrtle Beach, SC;
- Haneef Vaughn a/k/a “Neef,” 25, of Philadelphia, PA; and
- Jabreel Vaughn a/k/a “Breely,” 20, of Elkins Park, PA.
Additionally, defendant Muhammad Ware is charged with dealing firearms without a license.
United States v. Norman, et al:
Beginning in October 2020, ATF Special Agents identified multiple firearms which were recovered in the Philadelphia area as having been originally purchased in Georgia. The short time frame between the firearms’ purchase in Georgia and subsequent recovery in Philadelphia (known as a short “time to crime” period) indicated that the weapons may have been trafficked into the city.
According to the Indictment, subsequent investigation showed that over the course of six months, the conspiracy led by defendant Norman allegedly purchased nearly 300 firearms from dealers in and around Atlanta, and transported the firearms to Philadelphia for distribution and sale on the black market in exchange for approximately $116,000.
United States v. Ware, et al:
Beginning in March 2020, ATF Special Agents identified multiple firearms which were recovered in Philadelphia as having been originally purchased in South Carolina. Agents subsequently learned about a number of additional firearms recovered in Philadelphia with short “time to crime” periods that indicated they may have been trafficked into the city, just as in Norman, et al.
According to the Indictment, the recovered firearms were concentrated in a particular area of Philadelphia and were originally purchased near Myrtle Beach, SC. Subsequent investigation showed that defendant Ware had allegedly purchased several of the recovered firearms, and conspired and communicated with defendants Haneef Vaughn and Jabreel Vaughn, and others about the purchase, transportation and sale on the black market of over 100 illegal firearms.
“When I announced the All Hands On Deck initiative in April 2021, I vowed that our Office would do all we could to stop the violence ravaging our city and support the Philadelphia Police Department in its work,” said U.S. Attorney Williams. “Earlier this year, the Justice Department announced strategies to fight violent crime, including cracking down on firearms trafficking and the ‘iron pipeline’ – the illegal flow of guns sold in mostly southern states, transported up the East Coast, and found at crime scenes in northeastern cities like ours. The two indictments announced today, charging fourteen people with iron pipeline firearms trafficking conspiracies, show that we are aggressively focused on this work.”
“Preventing the illegal use and trafficking of firearms is a central focus of ATF's strategy to combat violent crime and protect our communities,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “Illegally purchased firearms often end up in the hands of violent offenders and affect communities near and far. Ensuring firearms traffickers are aggressively investigated and swiftly brought to justice will remain a top priority for our firearms trafficking task force. And this collaborative effort between all of our law enforcement counterparts is a prime example of such.”
In Norman, et al: If convicted of all charges, Edwin Burgos and Kenneth Burgos face a statutory maximum penalty of 10 years in prison. All other defendants face a statutory maximum penalty of 5 years in prison.
In Ware, et al: If convicted of all charges, defendant Ware faces a statutory maximum penalty of 10 years in prison. Defendants Haneef Vaughn and Jabreel Vaughn each face a statutory maximum penalty of 5 years in prison.
These cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The Norman, et al case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives Philadelphia, Atlanta, and Harrisburg Field Offices, the Philadelphia Police Department, the Pennsylvania State Police, Homeland Security Investigations, and the U.S. Marshals, and is being prosecuted by Assistant United States Attorney Priya T. De Souza.
The Ware, et al case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and is being prosecuted by Assistant United States Attorney Mark Miller and Special Assistant United States Attorney Martin Howley.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal Jury Convicts Stearns County Man for his Role in Meth Distribution ConspiracyRead the Press Release
MINNEAPOLIS – A federal jury convicted a Stearns County man of conspiring to distribute methamphetamine while incarcerated, announced U.S. Attorney Andrew M. Luger.
Following a five-day trial before Senior U.S. District Judge David S. Doty, Robert Edward Maloney, Jr., 39, was convicted on April 8, 2022, of a single count of conspiring to distribute methamphetamine. A sentencing hearing will be scheduled at a later time.
According to the evidence presented at trial, in spring 2019, Maloney, while incarcerated in a Minnesota state prison, coordinated with others outside the prison to sell methamphetamine. While Maloney was incarcerated, he communicated with his co-conspirators via jail calls. Law enforcement agents obtained recordings of Maloney’s jail calls, which revealed Maloney’s direction and coordination, including arranging meetings and discussing methamphetamine prices and quantities.
This case was the result of an investigation conducted by the FBI Safe Streets Task Force, the Minnesota Bureau of Criminal Apprehension, the Cannon River Drug & Violent Offender Task Force, the Paul Bunyan Drug Task Force, and the Minnesota Department of Corrections.
This case was tried by Assistant U.S. Attorneys Bradley M. Endicott and Joseph S. Teirab.
Federal Indictment Charges Suburban Chicago Man with Trafficking Cocaine and Illegally Possessing Loaded GunRead the Press Release
CHICAGO — A federal grand jury has indicted a suburban Chicago man for allegedly trafficking cocaine and illegally possessing a loaded handgun.
An indictment returned in U.S. District Court in Chicago charges GILBERTO ALMANZA, 44, of North Chicago, Ill., with two counts of distribution of a controlled substance, one count of possession of a controlled substance with the intent to deliver, and one count of possessing a firearm in furtherance of drug-trafficking activities.
The charges in the indictment carry a mandatory minimum sentence of 15 years in federal prison and a maximum of life. Almanza is currently detained in federal custody. Arraignment is set for Friday at 1:30 p.m. before U.S. District Judge Matthew F. Kennelly.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Robert J. Bell, Special Agent-in-Charge of the Chicago Field Division of the DEA. The government is represented by Assistant U.S. Attorneys Megan DeMarco and A.J. Dixon.
According to the indictment and a criminal complaint previously filed in the case, Almanza distributed approximately 46 kilograms of cocaine on Sept. 2, 2021. The delivery occurred in a restaurant parking lot in Bolingbrook, Ill., the charges allege. Unbeknownst to Almanza, the individual to whom Almanza delivered the cocaine was cooperating with law enforcement, the charges allege.
A second drug deal allegedly occurred last month at Almanza’s residence. Another individual surreptitiously cooperating with law enforcement bought approximately half a kilogram of cocaine from Almanza, the charges allege. Law enforcement conducted a court-authorized search of Almanza’s residence on March 17, 2022, and discovered approximately two kilograms of cocaine and the loaded handgun, the charges allege.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Eugene Felon Sentenced to Federal Prison for Illegal Firearm PossessionRead the Press Release
EUGENE, Ore.—A Eugene man on supervised release for a drug trafficking conviction was again sentenced to federal prison today after threatening to shoot at an apartment and then driving to the apartment with a loaded assault rifle.
Billy Lynn Brosowske, 48, was sentenced to 120 months in federal prison and three years’ supervised release.
According to court documents, on February 11, 2020, Brosowske sent a series of threatening messages to a person he knew. Brosowske threatened to shoot at the person’s apartment if Brosowske’s ex-girlfriend was found to be inside. In one message, Brosowske admitted to knowing there were young children in the apartment who could be placed in “harms (sic) way.”
Officers from the Eugene Police Department responded immediately and located Brosowske’s truck near the apartment. Officers searched the truck pursuant to a state search warrant and located a loaded assault rifle with a chambered round and its safety turned off. Law enforcement arrested Brosowske two weeks later in The Dalles, Oregon, and he was taken into federal custody for violating his federal supervised release after a previous drug trafficking conviction.
On August 20, 2020, a federal grand jury in Eugene returned an indictment charging Brosowske with illegally possessing a firearm as a convicted felon. On November 10, 2021, he pleaded guilty to the single charge.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Eugene Police Department. It was prosecuted by Jeffrey Sweet and Will McLaren, Assistant U.S. Attorneys for the District of Oregon, in close coordination with Erik Hasselman, Senior Prosecutor for the Lane County District Attorney’s Office, who is prosecuting Brosowske for state crimes arising from this incident.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
East St. Louis Man Sentenced to 17 Years in Prison for Distribution of Methamphetamine and Money LaunderingRead the Press Release
BENTON, Ill. – Martin Cooper, 31, of East St. Louis, Illinois, was sentenced to 210 months in
prison on Thursday, April 7, 2022, for his role in a Conspiracy to Distribute Methamphetamine and
Money Laundering. The offenses occurred in St. Clair County and throughout the Southern District of
Illinois. Cooper pleaded guilty to both charges in October 2021. The United States Postal
Inspection Service initiated an investigation in January 2019, after noticing numerous
suspicious packages being sent to and from addresses in East St. Louis, Illinois, and Phoenix,
Arizona. During the investigation, agents learned that Jose Angulo shipped packages containing
methamphetamine to the East St. Louis area to Martin Cooper.According to court documents, Cooper admitted to receiving narcotics from Jose and
Steven Angulo in 2019 and acknowledged a package containing over two kilograms of methamphetamine
destined for an address in East St. Louis was for him. Cooper also admitted to transferring money
to the Angulos via Walmart, and by mailing currency and money orders to them.Jose Angulo was sentenced on March 24, 2022, to 30 years in prison for Conspiracy to Distribute
Methamphetamine, Money Laundering and Distribution of Methamphetamine.The investigation was conducted by the United States Postal Inspection Service, the
Drug Enforcement Administration, and the Internal Revenue Service-Criminal Investigation.
The case was prosecuted by Assistant United States Attorney Laura Reppert.EOIR Announces Appointment of Mary Cheng as Deputy DirectorRead the Press Release
FALLS CHURCH, VA – The Executive Office for Immigration Review (EOIR) today announced the appointment of Mary Cheng as the agency’s Deputy Director. Judge Cheng has served EOIR since 2009, including as a Deputy Chief Immigration Judge for the past five years.
“Judge Cheng brings a welcome combination of experience and expertise, preparing her for certain success as EOIR’s deputy director,” EOIR Director David L. Neal said. “Her experience on the immigration bench, her expertise as a managing judge, and her appreciation for the view from both counsels’ tables perfectly position her to help lead the agency to a reinvigorated commitment to our mission and to public service.”
As Deputy Director, Judge Cheng will assist Director Neal in supervising and managing all EOIR components, and developing and implementing agency policies and short- and long-term strategies.
Since April 2021, Judge Cheng has served as the Regional Deputy Chief Immigration Judge for the Eastern Region at EOIR. She previously served as a Deputy Chief Immigration Judge from 2017 to 2021, and she was the Acting Principal Deputy Chief Immigration Judge from August 2020 to February 2021. Judge Cheng has also served in the New York Immigration Court both as an Assistant Chief Immigration Judge from 2015 to 2017, and as an Immigration Judge from 2009 to 2015. Before joining EOIR, she served as Assistant Chief Counsel for the Department of Homeland Security, Immigration and Customs Enforcement, from 2002 to 2009; and before that, she practiced immigration law in New York from 2000 to 2002. Judge Cheng received her Bachelor of Arts from New York University and a Juris Doctor from the New York Law School. She is a member of the New York State Bar.
Drug Dealing Trio Sentenced to Federal PrisonRead the Press Release
Ocala, Florida – Senior U.S. District Judge John Antoon II has sentenced Keson Viason Evans, Jr. (30, Eustis) to 11 years and 10 months in federal prison for conspiracy to distribute controlled substances. On December 17, 2021, Judge Antoon sentenced co-defendant George Randolph Morris, Jr. (31, Umatilla) to 10 years of imprisonment and co-defendant Demitric Jovante Blue (25, Ocala) to 7 years and 3 months of imprisonment. All three were convicted following their guilty pleas for the same offense.
According to court documents, Evans, Morris, and Blue conspired with one another between May 11 and 20, 2021, to distribute methamphetamine and fentanyl. An informant, working with the Drug Enforcement Administration placed an order to purchase 1.4 kilograms of methamphetamine and 3 kilograms of fentanyl from Morris. Evans was the source of supply for the fentanyl and Blue was the source of supply for the methamphetamine. When all three men showed up on May 20, 2021, to deliver the drugs to the informant in Leesburg, DEA agents arrested them and seized the drugs.
This case was investigated by the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Michael P. Felicetta.
Detroit Man Sentenced to Prison for Distributing FentanylRead the Press Release
HUNTINGTON, W.Va. – A Detroit man was sentenced today to one year and three months in federal prison, to be followed by three years of supervised release, for the distribution of fentanyl.
According to court documents, Martez D. Foy, 29, admitted he sold approximately 5.2 grams of fentanyl to a confidential informant on March 10, 2021. He also admitted to selling approximately 5.1 grams of fentanyl to a confidential informant on April 13, 2021. Both sales occurred in Huntington.
United States Attorney Will Thompson made the announcement and commended the Drug Enforcement Administration (DEA) and the Cabell County Sheriff’s Office for conducting the investigation.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Courtney L. Cremeans prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00222.
###