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10 May 2022
DEA Recognizes First Ever National Fentanyl Awareness DayRead the Press Release
WASHINGTON – In an effort to save lives, DEA is proud to join “Song for Charlie” and many of our valued public health, non-profit, and law enforcement partners in recognizing the first ever National Fentanyl Awareness Day. This day is an effort to educate individuals around the dangerous threat that fentanyl poses to the safety, health, and national security of the American people.
To mark National Fentanyl Awareness Day, DEA released a video announcement from DEA Administrator Anne Milgram stressing the dangers of fentanyl and the need for urgent action.
“Fentanyl is killing Americans at unprecedented rates,” said Milgram. “On this first-ever National Fentanyl Awareness Day, please help save lives by making sure you talk with your friends and family about the dangers of this deadly drug.”
Fentanyl is a synthetic opioid that is approximately 50 times more potent than heroin and 100 times more potent than morphine. It is inexpensive, widely available, and highly addictive. Drug traffickers are increasingly mixing fentanyl with other illicit drugs—in powder and pill form—to drive addiction and create repeat customers. Many people who are overdosing and dying don’t even know that they are taking fentanyl.
The Centers for Disease Control and Prevention estimates that in the United States, nearly 107,000 people died as the result of a drug overdose in the 12-month period ending November 2021. Sixty-six percent of overdose deaths involved synthetic opioids such as fentanyl.
DEA has created a special exhibit for its museum, The Faces of Fentanyl, to commemorate the lives lost from fentanyl poisoning. If you would like to submit a photo of a loved one lost to fentanyl, please submit their name and photo to [email protected], or post a photo and their name to social media using the hashtag #NationalFentanylAwarenessDay.
For more information on the dangers of fentanyl, visit www.DEA.gov/fentanylawareness.
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Cybercriminal Charged with Unauthorized Computer Intrusion, Securities Fraud, Wire Fraud and Other CrimesRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Idris Dayo Mustapha, a citizen of the United Kingdom, with computer intrusion, securities fraud, money laundering, bank fraud and wire fraud, among other offenses. The charged crimes stem from a variety of alleged criminal conduct between 2011 and 2018 in which Mustapha gained access to U.S.-based computers, including email servers and computers belonging to U.S. financial institutions, in order to steal money from online bank accounts and securities brokerage accounts. Mustapha was arrested in the United Kingdom in August 2021 and the United States is seeking his extradition to the Eastern District of New York.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“As alleged in the complaint, the defendant was part of a nefarious group that caused millions of dollars in losses to victims by engaging in a litany of cybercrimes, including widespread hacking, fraud, taking control of victims’ securities brokerage accounts, and trading in the name of the victims,” stated United States Attorney Peace. “Protecting residents of the Eastern District and financial institutions from cybercriminals is a priority of this Office.”
"Cyber crimes are insidious because the criminals lurk in places most people don't see, and many don't understand. Taking over victims' email accounts and then stealing millions of dollars are just some of the crimes we allege Mustapha committed over the course of many years. Using digital platforms for banking and investing are now part of our everyday life, and the FBI is focused on making these tools safe from criminals like Mustapha,” stated Assistant Director-in-Charge Driscoll.
As charged in the criminal complaint, starting in 2011, Mustapha and his co-conspirators engaged in a long-running scheme to steal money through a variety of computer intrusions and frauds.
In one part of the scheme, Mustapha and his co-conspirators allegedly obtained login information for victims’ securities brokerage accounts through various methods. The conspirators then used their access to those accounts to steal money and conduct trades to their own benefit. Initially, conspirators accessed the victims’ brokerage accounts and transferred money from those accounts to other accounts under their control. After financial institutions began to block those unauthorized transfers, Mustapha and his co-conspirators accessed other victims’ brokerage accounts and placed unauthorized stock trades within those accounts while simultaneously trading profitably in the same stocks from accounts that they controlled. For example, on or about April 16, 2016, Mustapha and a co-conspirator exchanged electronic chat messages in discussing this unauthorized trading. During the exchange, Mustapha’s co-conspirator announced access to the computers of a brokerage firm and questioned whether to engage in unauthorized trading or simply to wire money out of the brokerage account. Mustapha wrote back: “better to go trade up and down and [] not direct fraud wire.” Additionally, as part of the scheme, Mustapha flew to New York in June 2015 and opened an account at a U.S. financial institution in New Jersey; Mustapha and his co-conspirators later transferred approximately $104,000 from a brokerage account used to conduct unauthorized trading to Mustapha’s U.S. bank account.
In another part of the scheme, Mustapha and his co-conspirators allegedly obtained login information for victims’ email accounts and accessed those accounts without authorization to obtain financial and personal identifying information about their victims. The conspirators then contacted the victims’ financial institutions—by phone and by email messages —requesting that the victims’ financial institutions wire money from the victims to overseas bank accounts that the conspirators controlled. For example, in May 2013, Mustapha and his co-conspirators obtained $50,000 from an investment account that belonged to U.S. victims, and Mustapha directed the transfer of those funds to a series of bank accounts controlled by the conspirators. In April 2013, Mustapha and his co-conspirators attempted to defraud a victim located in the Eastern District of New York by obtaining control over the victims’ email account and using it to send written instructions—which falsely appeared to have been signed by the victim—to transfer $225,000 from one of the victim’s accounts, but the victim’s financial institution rejected the transfer request.
As a result of these schemes, Mustapha and his co-conspirators realized financial gains while causing losses of more than $5 million to financial institutions, including brokerage firms.
If convicted, the defendant faces up to 20 years’ imprisonment for each of the money laundering and wire and securities fraud charges, and a mandatory consecutive two-year sentence for the charge of aggravated identity theft.
The government’s case is being handled by the Office’s National Security and Cybercrime Section and Business and Securities Fraud Section. Assistant United States Attorneys David K. Kessler, Alexander F. Mindlin, Sarah M. Evans and Jonathan E. Algor are in charge of the prosecution. The Justice Department’s Office of International Affairs is also providing substantial assistance.
The Defendant:
IDRIS DAYO MUSTAPHA
Age: 32
United KingdomE.D.N.Y. Docket No. 17-M-367
Colorado Springs Man Sentenced to 30 years in Federal Prison for Child Pornography Production and PossessionRead the Press Release
Denver – The United States Attorney’s Office for the District of Colorado announces that Brandon Gandy, 34 years old, of Colorado Springs was sentenced to 30 years in federal prison for production and possession of child pornography.
According to an earlier plea agreement, the defendant came to law enforcement’s attention after an internet service provider submitted multiple CyberTipline Reports to the “National Center for Missing and Exploited Children” between October 2018 and October 2019. The reports detailed the user uploading sexually explicit pictures depicting minors to the internet. Investigators tracked the user to a Colorado Springs address.
On March 4, 2021, investigators searched the address for child pornography. The defendant was present at the home when the search warrant was executed. Investigators did a forensic review of the defendant’s cell phone on scene and discovered that the defendant had been creating sexually explicit pictures of a minor victim. The minor victim was identified. Additional forensic examination of the defendant’s phone and review of his Google Photos account revealed that he had created numerous images and videos depicting his sexual abuse and exploitation of the minor victim over the course of one year. The defendant admitted the minor was under the age of 12 at the time he produced the child pornography images and videos.
In addition to the 30 years in prison, the defendant will serve a 10 year term of supervised release and is ordered to pay a $20,000 special assessment pursuant to the Amy, Vicky, and Andy Child Pornography Victim Assistance Act (AVAA).
“The details of this case are disturbing, and we commend our partners in law enforcement for their detailed investigation that put a stop to the defendant’s sick and outrageous conduct,” said United States Attorney Cole Finegan. “This lengthy prison sentence sends a message to the community that we will track down and prosecute anyone victimizing the young and vulnerable.”
“Our agents work night and day to keep Colorado free from people like Gandy who seek to abuse and exploit children,” said Ryan L. Spradlin, Special Agent in Charge, HSI Denver. “Today’s sentence highlights the commitment our investigators, prosecutors from the United States Attorney’s Office and law enforcement partners have to the children in our community.”
The Honorable Judge Daniel D. Domenico presided over the case and sentenced the defendant on May 10, 2022.
This case was investigated by Homeland Security Investigations (HSI) and the Colorado Springs Police Department’s Internet Crimes Against Children (ICAC) Task Force. Assistant United States Attorney Alecia L. Riewerts prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
Case #21-cr-00096-DDD
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Clarksburg man admits to role in firearms conspiracyRead the Press Release
CLARKSBURG, WEST VIRGINIA – John Freeman, III, of Clarksburg, West Virginia, has admitted to his role in a firearms trafficking conspiracy, United States Attorney William Ihlenfeld announced.
Freeman, 44, pleaded guilty today to one count of “Aiding and Abetting the False Statement in Connection with the Acquisition of Firearms.” Freeman admitted to working with another to illegally purchase a .40 caliber pistol and a 9mm pistol from a firearms dealer in November 2020 in Marion County.
Freeman faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Charleston Man Indicted for Felon in Possession of a FirearmRead the Press Release
CHARLESTON, SOUTH CAROLINA — A federal grand jury returned a single count indictment against Dontrell Lamar Watson, age 33, of Charleston, for possessing a firearm and ammunition with a prior felony conviction.
The indictment alleges that on December 9, 2021, Dontrell Watson knowingly possessed a Taurus 9mm pistol and 9mm ammunition after having been previously convicted of a crime punishable by imprisonment for more than one year. Additional evidence suggests Dontrell Watson knew he was federally prohibited from possessing a firearm and ammunition.
Watson faces a maximum penalty of ten years for this charge. He is currently detained pending trial.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant U.S. Attorney Chris Lietzow is prosecuting the case.
U.S. Attorney Corey F. Ellis stated that all charges in the indictment are merely accusations and that defendants are presumed innocent unless and until proven guilty.
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Charleston Man Indicted for Distributing Fentanyl Resulting in the Death, Detained After Contested Bond HearingRead the Press Release
CHARLESTON, SOUTH CAROLINA — A federal grand jury indicted Hasib Muqsit-Rivers, 21, of Charleston, for distributing fentanyl resulting in the death of another and four additional narcotics distributions on subsequent dates. Muqsit-Rivers has been detained following a contested bond hearing in federal court in Charleston.
The indictment follows an investigation by the Drug Enforcement Administration (DEA) and the Charleston Police Department. Charleston Police Department officers and DEA agents arrested Muqsit-Rivers, and he appeared in Court upon his request for a bond. After a contested hearing, United States Magistrate Judge Molly H. Cherry ordered Muqsit-Rivers detained without bond pending resolution of the federal charges against him.
During the hearing, a DEA special agent alleged that Muqsit-Rivers distributed a quantity of fentanyl on November 1, 2020 to a 24-year old woman in Charleston following a Halloween party. According to the special agent, the distribution was captured on home surveillance camera. The victim was later found deceased from an overdose with a blood toxicity analysis showing high levels of fentanyl. Subsequently, the special agent alleged that Muqsit-Rivers distributed crack cocaine and cocaine on four separate dates following the distribution that resulted in the death of the victim.
According to information presented to the court, at the time of the arrest, Muqsit-Rivers was out on bond for a pending armed robbery state court charge. As a result of the federal charge, Muqsit-Rivers faces a mandatory minimum term of imprisonment of 20 years and a maximum term of imprisonment of life, a fine of $1,000,000, and court-ordered minimum term of supervision for three years to follow any term of imprisonment.
The case was investigated by DEA and the Charleston Police Department. Assistant U.S. Attorneys Elle E. Klein and Jane B. Taylor of the Columbia office are prosecuting the case.
U.S. Attorney Corey F. Ellis stated that all charges in the indictment are merely accusations and that defendants are presumed innocent unless and until proven guilty.
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Butte nurse admits diverting drugsRead the Press Release
MISSOULA — A Butte woman today admitted she diverted drugs while working as a nurse at a Butte hospital, U.S. Attorney Leif M. Johnson said.
Nichole Lynn Zinda, 37, pleaded guilty to unlawfully obtaining a controlled substance as charged in an indictment. Zinda faces a maximum of four years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge Kathleen L. DeSoto presided. Sentencing was set for Aug. 24 before U.S. District Judge Dana L. Christensen. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Zinda was released pending further proceedings.
The government alleged in court documents that a hospital in Butte notified the Drug Enforcement Administration that Zinda, a registered nurse working on the post-operation floor, was discovered diverting hydromorphone cartridges in September 2020. The hospital reviewed Zinda’s records, which showed an abnormally high number of transactions by Zinda regarding oxycodone and hydromorphone as compared to other nurses working on the same floor. Zinda was pretending to “waste” or dispose of the hydromorphone or was giving it to patients but then cancelling the orders in the system. Zinda was placed on administrative leave on Oct. 2, 2020 after providing a urine analysis and was terminated four days later after the test was positive for hydromorphone as well as oxycodone/oxymorphone. Zinda told investigators that she took hydromorphone from the hospital to prevent her from getting sick when she didn’t have any pills. When she diverted the drugs, she would store them in her pocket.
The U.S. Attorney’s Office is prosecuting the case, which was investigated by the DEA, Montana Division of Criminal Investigation and St. James Hospital.
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Box Elder man sentenced to 78 months in prison for witness tampering in attempted murder investigation on Rocky Boy’s Indian ReservationRead the Press Release
GREAT FALLS — A Box Elder man who admitted to intimidating and threatening a witness who would testify against him regarding his involvement in a kidnapping and attempted murder on the Rocky Boy’s Indian Reservation was sentenced today to 78 months in prison, to be followed by three years of supervised release, U.S. Attorney Leif M. Johnson said.
Leon Houle, 37, pleaded guilty in January to witness tampering as charged in a superseding information.
Chief U.S. District Judge Brian M. Morris presided.
The government alleged in court documents that on March 17, 2019, by Houle’s command, Dakota Houle, Houle’s brother, shot the victim, identified as John Doe, in the back as the victim attempted to run from his would-be killers. The Houle brothers, along with two women, lured John Doe to a residence where they planned to rob him of methamphetamine and kill him. The Houle brothers beat John Doe with weapons when he arrived, robbed him at gunpoint, forced him to remove his shoes and told him they were taking him to the mountains to kill him. The brothers forced John Doe into his own car as pleaded for his life. Leon Houle drove the vehicle, with John Doe in the front passenger seat and Dakota Houle directly behind the victim in the rear passenger seat with a shotgun in his hand. When the vehicle slowed near a cattle guard, John Doe jumped out of the moving car and tried to run through the snow. The government further alleged that Leon Houle told Dakota Houle to “Shoot him!” Dakota Houle shot the victim in the back of the head. Believing John Doe was dead, the Houle brothers and others fled on foot. John Doe survived and suffered severe and permanent injuries. Leon Houle continues to deny involvement in the kidnapping and shooting of John Doe.
Leon Houle was indicted on five felony charges related to the shooting. While in custody on the charges, Leon Houle made statements to another person, identified as John Doe II, about the crimes and then contacted various individuals in an attempt to influence or prevent John Doe II’s testimony. The government further alleged that after pleading guilty in January, Leon Houle continued to threaten and harass witnesses by making threatening gestures, including throat-cutting and trigger-pulling gestures, to the witnesses.
Dakota Houle previously was sentenced to more than 14 years in prison for conviction on assault with intent to commit murder and other crimes in the case.
Assistant U.S. Attorneys Jared C. Cobell and Lori Harper Suek prosecuted the case, which was investigated by the FBI and Chippewa Cree Law Enforcement Services.
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Boulder Health System, Physician Assistant, and Nurse Practitioner Agree to Resolve Investigation into Improper Prescribing of OpioidsRead the Press Release
DENVER –The U.S. Attorney’s Office for the District of Colorado announces that Boulder Community Health, a not-for-profit health system in Boulder, Colorado, Christopher Kreider (a Physician Assistant), and Bonnie Wilensky (a Nurse Practitioner), have agreed to resolve allegations relating to improper opioid prescribing at the Mapleton Pain Clinic in Boulder. The allegations are that Kreider and Wilensky wrote prescriptions for opioids in dosages, at frequencies, and in combinations with other substances that were outside the course of their professional practice. As a result, these prescriptions were not valid under State law and not covered by the Medicare Part D program. BCH will pay $350,000. Kreider has agreed to have his practice supervised for the next two years and to complete 60 hours of continuing education regarding the prescribing of controlled substances, addiction, and alternatives to opioids for pain management. Wilensky has agreed not to prescribe any controlled substances for a period of two years.
Boulder Community Health owned the Mapleton Pain Clinic, a multi-disciplinary clinic treating patients with chronic pain that operated in Boulder. Boulder Community Health closed the Mapleton Pain Clinic in March 2017. The United States alleges that, while employed at the Mapleton Pain Clinic, Kreider and Wilensky regularly wrote prescriptions for opioids at high dosages and in dangerous combinations with other controlled substances (such as benzodiazepines and muscle relaxants), ignoring indications of patient substance use disorder, misuse and abuse of prescriptions, and mental health issues. The United States also contends that Boulder Community Health, by its ownership of the Mapleton Pain Clinic, failed to properly supervise its employees’ prescribing practices and implement appropriate controls to prevent the improper prescribing of addictive opioid medications and other controlled substances.
“Medical professionals are required to follow proper professional practices when they prescribe opioids and other potentially dangerous drugs, and their employers are responsible for properly supervising those professionals,” said U.S. Attorney Cole Finegan. "When professionals violate the rules, our office will pursue them and their employers.”
"By improperly prescribing opioids, health care providers put the health and safety of their patients at risk and undermine critical measures to address the opioid epidemic,” said Curt L. Muller, Special Agent in Charge with the U.S. Department of Health and Human Services, Office of the Inspector General. “HHS-OIG will continue working with our law enforcement partners to hold accountable those who exploit patient addiction for personal gain.”
The claims resolved by the settlement are allegations only; there has been no determination of liability.
This case was handled by Assistant United States Attorneys Marcy E. Cook and Jessica E. Matthews.
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Bennington Man Charged with Unlawful Possession of a FirearmRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Gavin Wilcox, 31, of Bennington, Vermont was arraigned today on an indictment that alleges Wilcox unlawfully possessed a firearm on March 31, 2022. At today’s hearing, U.S. Magistrate Judge Kevin J. Doyle ordered Wilcox detained pending trial.
According to court records, Bennington Police Department investigators were attempting to locate a gray sedan on March 31, 2022. During surveillance at a local business, a detective observed Gavin Wilcox exit a silver Subaru Forester and walk to another grey sedan while carrying a backpack. The detective knew Wilcox to have an active arrest warrant. When officers apprehended Wilcox, he dropped 11 baggies of suspected heroin from his hand. A search warrant was obtained for Wilcox’s backpack, during the execution of which detectives located a loaded Smith & Wesson Model 386 .357 magnum Pro Series revolver. Wilcox’s criminal history includes felony offenses and a misdemeanor conviction for domestic violence which prohibited Wilcox from possessing firearms under federal law.
The United States Attorney’s Office emphasizes that an indictment contains allegations only and that Wilcox remains presumed innocent until and unless he is convicted of a crime. Wilcox faces a maximum sentence of 10 years of imprisonment for unlawfully possessing a firearm.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of the Bennington Police Department and Homeland Security Investigations.
The prosecutor is Assistant United States Attorney Jonathan Ophardt. Wilcox is represented by Kevin Henry, Esq.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. See https://www.justice.gov/psn for more information.
Bennettsville Man Sentenced to More than 18 Years in Federal Prison for Firearms CrimeRead the Press Release
FLORENCE, SOUTH CAROLINA — Matthew Joshua Tolson, 33, of Bennettsville, was sentenced to more than 18 years in federal prison after pleading guilty to possessing a firearm in furtherance of drug trafficking.
“One of the largest threats to our community is firearms-related crime, and this office is dedicated to doing everything it can to protect the citizens of South Carolina from those who use firearms to break the law,” said U.S. Attorney Ellis. “Our team, including our local and federal law enforcement partners, worked tirelessly to bring this defendant, an armed lifelong criminal, to justice.”
“Recovering a firearm from a prohibited individual and putting a drug trafficker out of business is a double win for the community,” said Brian Mein, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division. “Through a collaborative effort, we’ve helped take a dangerous career criminal off the street.”
“Mr. Tolson has a violent history, and was involved in numerous firearms-related incidents,” said Chief David Lane of the City of Dillon Police Department. “Bringing Mr. Tolson to justice will make the Dillon community safer. My department is very thankful for the hard work of all the agencies involved.”
Evidence presented to the Court showed that, on the afternoon of July 20, 2021, officers with Dillon Police Department attempted to stop a purple Dodge Charger driven by Tolson. Tolson did not stop, and instead led law enforcement officers on a high-speed chase through downtown Dillon. The chase ended when Tolson drove his car onto the Dillon City and County Complex lawn, crashing into the Dillon Police Department sign. When officers approached the Charger, they located a loaded .40 caliber Glock pistol with a 50-round drum magazine in Tolson’s lap. In his pocket, Tolson had nearly 24 grams of crack cocaine, divided among several baggies, and approximately $300 in cash. At the time of this incident, Tolson had multiple prior felony convictions, which prohibited him from legally possessing a firearm or ammunition.
United States District Judge Sherri A. Lydon sentenced Tolson to 226 months in federal prison, to be followed by a five-year term of court-ordered supervision. There is no parole in the federal system.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by ATF and the Dillon Police Department. Assistant U.S. Attorney Katherine Flynn is prosecuting the case.
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Armour Man Sentenced for Threatening CommunicationsRead the Press Release
United States Attorney Alison Ramsdell announced that an Armour, South Dakota, man convicted of threatening communications was sentenced on May 9, 2022, by U.S. District Judge Karen E. Schreier.
Larry Lee Grueschow, age 65, was sentenced to two years of probation and ordered to pay $100 to the Federal Crime Victims Fund.
Grueschow was indicted for threatening communications by a federal grand jury on August 3, 2021. He pled guilty on February 2, 2022.
On or about the 11th day of June 2020, Grueschow did transmit in interstate commerce, from the State of South Dakota to Washington, D.C., a telephone communication to a member of Congress. The telephone communication contained a threat to injure the member of Congress and others.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Arizona Man Caught with over 5 Kilograms of Cocaine in IowaRead the Press Release
Scott Pride, 69, from Tucson, AZ, plead guilty May 5, 2022, in federal court in Sioux City to possession with intent to distribute cocaine.
At the plea hearing, evidence showed that on January 16, 2022, law enforcement conducted a traffic stop, based on a speeding violation, of a 2011 Silver Lexus IS registered to and operated by Pride. After suspecting possible drug trafficking, a police K-9 was deployed and alerted to the odor of a controlled substance within the vehicle. Officers conducted a search of the vehicle and located five heat-sealed, brick-type packages containing over 5 kilograms of cocaine.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Pride remains in custody of the United States Marshal pending sentencing. Pride faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 40 years’ imprisonment, a $5,000,000 fine, and at least four years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4006. Follow us on Twitter @USAO_NDIA.
Albany Felon Pleads Guilty to Illegally Possessing FirearmRead the Press Release
ALBANY, NEW YORK – Stephen Calderon, age 42, of Albany, pled guilty today to illegally possessing a rifle as a felon.
The announcement was made by United States Attorney Carla B. Freedman and John B. DeVito, Special Agent in Charge of the New York Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
As part of his plea, Calderon admitted that on December 19, 2018, he knowingly possessed a Norinco SKS 7.62x39 caliber rifle in the city of Albany. Two prior felony convictions, both for driving with a suspended license as a habitual offender in Florida, prevented Calderon from legally possessing the firearm.
Calderon faces up to 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years when he is sentenced by Senior United States District Judge Thomas J. McAvoy.
A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by ATF. This case is being prosecuted by Assistant U.S. Attorney Joshua R. Rosenthal.
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.
9 May 2022
Washington Man Sentenced to Six Years on Fentanyl ChargesRead the Press Release
United States Attorney Bob Murray announced today that DIEGO J. AGUILAR-VALDOVINOS, age 29 of Federal Way, Washington, was sentenced for possession with intent to distribute fentanyl before United States District Court Judge Alan B. Johnson on April 21, 2022. He received 75 months’ imprisonment followed by 3 years of supervised release and was ordered to pay $500 in restitution and a $100 special assessment.
On July 27, 2021, a Wyoming Highway Patrol trooper stopped the defendant for speeding on Interstate 80, east of Cheyenne, Wyoming. Subsequent investigation revealed the defendant had approximately 24 pounds of fentanyl in the trunk of his rental car.
This crime was investigated by the Wyoming Highway Patrol, the Wyoming Division of Criminal Investigation, and the Drug Enforcement Administration. The case was prosecuted by Assistant United States Attorney Margaret M. Vierbuchen.
Case Number: 0:21-cr-00110-ABJ
Vanessa Roberts Avery Sworn in as United States AttorneyRead the Press Release
New Haven – Vanessa Roberts Avery, 47, of West Hartford, was sworn in today as the United States Attorney for the District of Connecticut by Chief U.S. District Judge Stefan R. Underhill in New Haven. President Joe Biden nominated Ms. Avery to serve as U.S. Attorney on January 26, 2022, and the U.S. Senate confirmed her nomination on April 27, 2022.
“It is an honor to return to this office, in the city where I was raised, to serve as Connecticut’s U.S. Attorney,” said U.S. Attorney Avery. “I look forward to working with the many talented members of this office, as well as our dedicated law enforcement partners, to enforce federal criminal and civil laws, protect our communities, and ensure justice for all who live in our state.”
Prior to her appointment as U.S. Attorney, Ms. Avery served as the Associate Attorney General and Chief of the Division of Enforcement and Public Protection at the Connecticut Office of the Attorney General. Since January 2019, she led the affirmative litigation and investigations on behalf of the State of Connecticut in the areas of antitrust, opioids, government program fraud, consumer protection, child protection, environment, energy, finance, privacy and cybersecurity, and civil rights. Ms. Avery served on the Attorney General’s Litigation Management Committee, represented the Attorney General on the Connecticut Bar Association Policing Task Force, and led the COVID-19 Fraud Task Force in coordination with the U.S. Attorney’s Office, Federal Bureau of Investigation and Chief State’s Attorney’s Office.
From 2014 to 2019, Ms. Avery was an Assistant U.S. Attorney in the Civil Division in this District, prosecuting a variety of complex civil fraud cases under the False Claims Act, asset forfeiture cases, environmental violations, civil rights matters, and defending Bivens and medical malpractice cases.
From 2006 to 2014, Ms. Avery was a litigation attorney at McCarter & English LLP, where she focused on business and financial litigation, intellectual property, trust and probate, and product liability cases. From 2003 to 2005, Ms. Avery was a Trial Attorney with the U.S. Department of Justice in the Commercial Litigation Branch of the Civil Division in Washington, D.C. From 1999 to 2003, she was an attorney in the Hartford Trial Group at Cummings & Lockwood LLC.
Ms. Avery is a graduate of Yale University and the Georgetown University Law Center. She is a New Haven native and a graduate of the New Haven Public Schools.
The U.S. Attorney’s Office is charged with enforcing federal criminal laws in Connecticut and representing the federal government in civil litigation. As U.S. Attorney, Ms. Avery supervises a staff of approximately 68 Assistant U.S. Attorneys and approximately 57 staff members at offices in New Haven, Hartford and Bridgeport.
Ms. Avery is the 54th U.S. Attorney for the District of Connecticut, an office that was established in 1789.
Vancouver, Washington, resident charged with multiple counts of illegal firearms possession – some firearms are ‘ghost guns’Read the Press Release
Tacoma – A Brazilian National with multiple convictions for domestic violence assault, was arrested Friday on eight counts for illegal possession of firearms, announced U.S. Attorney Nick Brown. Joao Ricardo DeBorba, 46, of Vancouver, Washington, remains detained at the Federal Detention Center in SeaTac pending further court proceedings.
According to the criminal complaint, DeBorba entered the United States on a tourist visa in 1999. DeBorba overstayed the visa and allegedly falsified documents to work in the U.S. and to acquire firearms. In April 2019, while purchasing firearms in Portland and Lebanon, Oregon, and Lacey, Washington, DeBorba entered false information on government forms stating he was a U.S. citizen. Shortly after the first three gun purchases, DeBorba was arrested for drunken driving and was found to have a Glock pistol.
Despite that arrest, DeBorba continued to purchase firearms: a rifle in Gresham, Oregon, and a revolver in Vancouver, Washington, again providing false information about his citizenship on required forms.
In November 2019, DeBorba was arrested for domestic violence assault. DeBorba was served with a “No Contact” order and was instructed to surrender all of his firearms. On November 16, 2019, DeBorba was arrested for violating the no contact order and 20 firearms were seized from his residence.
In January 2022, DeBorba was convicted in a second case of domestic violence assault. He was again informed that he could not possess firearms.
Last week, law enforcement served a search warrant at DeBorba’s residence and seized 5 firearms: 3 AR-15 style rifles with no serial numbers or manufacturers marks and two handguns – one without any serial number or manufacturers mark. The firearms, so-called “ghost guns,” appear to have been manufactured from parts ordered online.
In addition to the guns, DeBorba had a large amount of ammunition, a workbench with firearms parts and tools, firearms silencers, magazines, and various gun cases.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Illegal firearms possession is punishable by up to 10 years in prison and a $250,000 fine.
The case is being investigated by the FBI, with assistance from the Vancouver Police Department, U.S. Immigration and Customs Enforcement (ICE), the Bureau of Alcohol, Firearms & Explosives (ATF), and the Social Security Office of Inspector General (SSA-OIG).
The case is being prosecuted by Assistant United States Attorney Max Shiner.
deborba_complaint.pdf FBI photo Guns seizedTwo Owners of Tony Luke’s Philadelphia Cheesesteak Restaurant Plead Guilty to Tax ConspiracyRead the Press Release
Two owners of a popular South Philadelphia cheesesteak restaurant pleaded guilty today to conspiring to defraud the IRS.
According to court documents and statements made in court, Anthony Lucidonio Sr., 82, and his son, Nicholas Lucidonio, 55, both of New Jersey, owned and operated Tony Luke’s, a cheesesteak and sandwich restaurant located in South Philadelphia. In an indictment returned on July 24, 2020, both were charged with a 10-year conspiracy to defraud the IRS by concealing more than $8 million in business receipts from the IRS, providing incomplete information to their accountant and causing their accountant to file false tax returns with the IRS that understated business receipts and income as well by engaging in a payroll tax scheme.
As part of their plea, the Lucidonios admitted to conspiring to evade employment taxes by paying employees a portion of their salaries “off the books” in cash. Anthony and Nicholas also admitted they caused their accountant to prepare and file with the IRS fraudulent quarterly employment tax returns that understated the actual wages paid to their employees and the taxes due.
Anthony and Nicholas Lucidonio are scheduled to be sentenced at a later date, and both men face a maximum sentence of five years in prison for conspiring to defraud the United States. They also face a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Jennifer Williams for the Eastern District of Pennsylvania made the announcement.
IRS-Criminal Investigation is investigating the case.
Assistant Chief John Kane of the Tax Division and Assistant U.S. Attorney Richard Barrett for the Eastern District of Pennsylvania are prosecuting the case.
Two Owners of Tony Luke’s Philadelphia Cheesesteak Restaurant Plead Guilty to Conspiracy to Defraud the IRSRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Anthony Lucidonio, Sr., 84, of Philadelphia, PA, and Nicholas Lucidonio, 56, of New Jersey, pleaded guilty today before United States District Court Judge Gerald McHugh to charges related to their conspiracy to defraud the United States for the purpose of impeding, impairing, or obstructing the Internal Revenue Service in the assessment and collection of employment taxes. The defendants, who were indicted in July 2020, are owners of Tony Luke’s, a cheesesteak and sandwich restaurant located in South Philadelphia. In pleading guilty, the defendants admitted to participating in a tax fraud scheme to evade payroll taxes between 2006 and 2016.
According to evidence summarized at today’s hearing, the defendants paid a significant number of their employees and partially “off-the-books.” To avoid withholding and paying over to the IRS employment taxes of the “off-the-books” amount, defendants gave their employees paychecks that reflected a portion of the employees’ hourly wages with the required taxes withheld. However, the wages the defendants paid and reported in this fashion represented only a portion of the true hours the employees worked. The Lucidonios then directed their employees to endorse their paychecks and give them back to the defendants and their restaurant managers. In exchange for return of the endorsed payroll checks, defendants provided their employees envelopes containing cash. This process allowed the defendants to understate the hours each employee worked. The scheme caused Tony Luke’s accountant to substantially understate the wages paid to the employees, and subsequently, the payroll taxes due to the United States.
According to a plea memorandum filed with the court, the government intends to prove at the defendants’ sentencing hearing that the government lost between $550,000 and $1.5 million as a result of the defendants’ scheme.
“This tax fraud scheme victimized honest taxpayers in two ways: first, by hiding the restaurant’s revenue from the IRS and second, by avoiding employee payroll taxes,” said U.S. Attorney Williams. “Tony Luke’s is an iconic brand in our region, but that is no excuse or explanation for the fraud these defendants perpetrated. We will continue to work with our law enforcement partners to investigate and prosecute these types of crimes.”
“While they successfully misled their accountant, they could not do the same when it came to the IRS,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty. “Cases like this underscore the expertise IRS Special Agents possess and their ability to track down unreported wages paid to employees. Today, Anthony Lucidonio Sr. and Nicholas Lucidonio have taken a step in the right direction by admitting their guilt and accepting responsibility for their actions.”
The case was investigated by the Criminal Investigative Division of the Internal Revenue Service, and is being prosecuted by Trial Attorney John N. Kane of the Tax Division of the Department of Justice, and Assistant United States Attorney Richard P. Barrett.
Two Mexican Nationals Charged with Hostage Taking, Transportation of Illegal Aliens, and Firearms OffensesRead the Press Release
TUCSON, Ariz. – Last week, a federal grand jury in Tucson returned an eight-count indictment against Mexican Nationals Olegario Lares-De La Rosa, 29, and Ivan Heriberto Borboa-Ruiz, 28, for Conspiracy to Commit Hostage Taking, Hostage Taking, Conspiracy to Commit Transportation of Illegal Aliens for Profit, Transportation of Illegal Aliens for Profit, and Prohibited Possessors of Firearms and Ammunition.
The indictment alleges that from a date unknown until April 8, 2022, Lares-De La Rosa and Borboa-Ruiz conspired together to detain two undocumented noncitizens in order to compel family members to pay money as a condition for their release. The initial complaint further alleges that a relative of the undocumented noncitizens was contacted by a male who said they would be held until $8,000 per person was paid in cash. The undocumented noncitizens were released after payment was made at a Home Depot parking lot. Lares-De La Rosa and Borboa-Ruiz were later arrested and found in possession of firearms.
A conviction for the crime of Conspiracy to Commit Hostage Taking carries a maximum penalty of life imprisonment, a $250,000 fine, or both. The remaining charges each carry a maximum penalty of 10 years, a $250,000 fine, or both.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
Homeland Security Investigations conducted the investigation in this case. Assistant U.S. Attorney Serra M. Tsethlikai, District of Arizona, Tucson, is handling the prosecution.
CASE NUMBER: CR-22-00974-TUC-JGZ
RELEASE NUMBER: 2022-061_Lares-De La Rosa# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Two Men Sentenced for COVID-19 Relief Fraud SchemeRead the Press Release
Two Florida men were sentenced Friday for leading a nationwide scheme to defraud the Paycheck Protection Program (PPP) for millions of dollars in loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
The U.S. District Court for the Northern District of Ohio sentenced Phillip J. Augustin, 53, of Coral Springs, to 78 months in prison, and James Stote, 56, of Hollywood, to 120 months in prison. Stote and Augustin each pleaded guilty to conspiracy to commit wire fraud on Dec. 14, 2021.
According to court documents, Augustin and Stote obtained a fraudulent PPP loan for Augustin’s company, Clear Vision Music Group LLC, using falsified documents. After submitting that application, Stote and Augustin immediately began trying to illicitly obtain larger PPP loans for themselves and their associates. Stote and Augustin recruited additional PPP loan applicants and prepared and submitted fraudulent loan applications for them in exchange for a share of the loan proceeds. Augustin used his network of business contacts as a manager for professional football players to recruit loan applicants. The applications they submitted for these loans relied on fake payroll numbers, falsified IRS forms, and phony bank statements. Stote submitted or facilitated at least 79 fraudulent loan applications worth at least $35 million. Among those loans, Augustin was responsible for at least 34 fraudulent loan applications worth at least $15 million.
In addition to his prison sentence, Stote was ordered to serve three years of supervised released and pay more than $10.1 million in restitution and more than $1.1 million in forfeiture. Augustin was ordered to serve three years of supervised released and pay more than $5.9 million in restitution and more than $272,000 in forfeiture.
In total, 25 people have been charged for their participation in this scheme in the Northern District of Ohio, Southern District of Florida, and Middle District of North Carolina.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Michelle M. Baeppler for the Northern District of Ohio; Special Agent in Charge Bryant Jackson of the IRS-Criminal Investigation (IRS-CI) Cincinnati Field Office; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Interim Special Agent in Charge Philip E Frigm Jr. of the FBI’s Cleveland Field Office; and Special Agent in Charge Sharon Johnson of the SBA’s Office of Inspector General (SBA-OIG) Central Region made the announcement.
The IRS-CI, FBI, and SBA-OIG are investigating the cases.
Trial Attorney Philip Trout of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Elliot Morrison for the Northern District of Ohio prosecuted this case.
Since the inception of the CARES Act, the Fraud Section has prosecuted over 150 defendants in more than 95 criminal cases and has seized over $75 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Two Huntington Men Sentenced to Prison for Roles in Multi-State Drug RingRead the Press Release
HUNTINGTON, W.Va. – Two Huntington men were sentenced to prison today for their roles in a multi-state drug trafficking organization (DTO) that distributed large amounts of methamphetamine, cocaine, fentanyl and other illegal drugs in the Huntington area.
Edward Shane Midkiff, 35, was sentenced to three years and one month for distribution of methamphetamine. Mark Anthony Chandler, 31, was sentenced to four years and four months for possession with intent to distribute cocaine. Each prison sentence will be followed by three years of supervised release.
According to court documents and statements made in court, Midkiff admitted that a confidential informant contacted him on January 12, 2021, to arrange a methamphetamine purchase. Midkiff directed the informant to the 500 block of 4th Avenue in Huntington to complete the transaction. At that location, Midkiff met with the informant in a vehicle and sold the informant methamphetamine.
Chandler admitted to receiving approximately one-half kilogram of cocaine from a co-defendant, William Raeshaun Byrd, in Huntington on June 30, 2021. Chandler was subsequently transporting the cocaine to another location when a deputy with the Cabell County Sheriff’s Office initiated a traffic stop of Chandler’s vehicle. Chandler fled from the stop and was arrested on a later date. During the stop, the deputy seized the cocaine as well a 9mm pistol that Chandler left in the vehicle. Chandler admitted that he intended to distribute the cocaine.
All 18 individuals indicted have pleaded guilty in the case, the result of a long-term investigation that disrupted the DTO and its distribution of fentanyl, methamphetamine, oxycodone, heroin, cocaine and cocaine base, also known as “crack.” Law enforcement seized more than 47 pounds of fentanyl, 6.5 pounds of methamphetamine, 4.5 pounds of cocaine, 2 pounds of heroin, 14 firearms and $335,000.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Southern West Virginia TOC-West Task Force. The Southern West Virginia TOC-West Task Force consists of the Cabell County Sheriff’s Office, the Hurricane Police Department and the Marshall University Police Department with support from the West Virginia State Police, the Drug Enforcement Administration (DEA) and the Violent Crime and Drug Task Force West. The Ohio Highway Patrol, the Kentucky State Police, and the FBI and DEA in Columbus, Ohio also assisted in the investigation.
United States District Judge Robert C. Chambers imposed the sentences. Assistant United States Attorneys Joseph F. Adams and Courtney L. Cremeans prosecuted the case.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
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-109.
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Third Man Charged in Connection with Plot to Kill Haitian PresidentRead the Press Release
Miami, Florida – A Haitian citizen was extradited from Jamaica to the United States on Friday to face criminal charges in the Southern District of Florida related to his alleged involvement in the assassination of the former President of Haiti, Jovenel Moïse, on July 7, 2021.
Joseph Joel John, 51, made his initial federal court appearance today at 2:00 p.m., before United States Magistrate Judge Lauren Louis, who sits in Miami.
John is charged with conspiring to commit murder or kidnapping outside the United States and providing material support resulting in death, knowing or intending that such material support would be used to prepare for or carry out the conspiracy to kill or kidnap. This is the third individual in U.S. custody to be charged in the United States for his role in the assassination plot. The other men charged are Mario Antonio Palacios, 43, and Rodolphe Jaar, 49, who were both arrested earlier this year.
As alleged in the complaint, which was unsealed today, John and others – including approximately 20 Colombian citizens and a number of dual Haitian-American citizens – participated in a plot to kidnap or kill the Haitian President. As alleged, John was present when a co-conspirator (“Co-Conspirator #1”) secured the signature of a former Haitian judge on a written request for assistance to further the arrest and imprisonment of President Moïse, as well as purporting to provide Haitian immunity for such actions. According to the complaint, on June 28, 2021, Co-Conspirator #1, a dual Haitian-American citizen, traveled from Haiti to the United States in furtherance of the conspiracy and provided other individuals with the document, and flew from Florida back to Haiti on July 1, 2021, to participate in the operation against the president.
As alleged in the complaint, while the plot initially focused on conducting a kidnapping of the Haitian President as part of a purported arrest operation, it ultimately resulted in a plot to kill the President. The complaint alleges that on July 7, 2021, various co-conspirators entered President Moïse’s residence in Haiti with the intent and purpose of killing him, and in fact the President was killed.
As alleged in the complaint, John helped to obtain vehicles and attempted to obtain firearms to support the operation against the president. It is also alleged that John attended a meeting with certain co-conspirators on or about July 6, 2021, after which many of the co-conspirators embarked on the mission to kill President Moïse.
Co-conspirator #1 was subsequently arrested by Haitian authorities and remains in custody in Haiti. John was arrested in Jamaica pursuant to the United States’ provisional arrest request to the Government of Jamaica for John’s extradition. On April 28, the Minister of Justice of Jamaica signed the order granting the extradition request, resulting in John’s arrival in Miami last week. John is currently in the custody of United States law enforcement.
If convicted of the charges in the complaint, John faces a maximum sentence of life imprisonment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Juan Antonio Gonzalez for the Southern District of Florida, Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
The FBI is investigating the case with other law enforcement partners, with valuable assistance provided by Homeland Security Investigations.
Assistant U.S. Attorneys Andrea Goldbarg and Walter Norkin for the Southern District of Florida are prosecuting the case, with assistance from National Security Division Trial Attorneys Frank Russo, Jessica Fender, and Emma Ellenrieder. The Justice Department’s Office of International Affairs provided valuable assistance.
A criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
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Third Man Charged in Connection with Plot to Kill Haitian PresidentRead the Press Release
A Haitian citizen was extradited from Jamaica to the United States on Friday to face criminal charges in the Southern District of Florida related to his alleged involvement in the assassination of the former President of Haiti, Jovenel Moïse, on July 7, 2021.
Joseph Joel John, 51, made his initial court appearance this afternoon before U.S. Magistrate Judge Lauren Louis, who sits in Miami.
John is charged with conspiring to commit murder or kidnapping outside the United States and providing material support resulting in death, knowing or intending that such material support would be used to prepare for or carry out the conspiracy to kill or kidnap. John is the third individual to be charged and arrested in the United States for his role in the assassination plot. The other men charged are Mario Antonio Palacios, 43, and Rodolphe Jaar, 49, who were both arrested earlier this year.
As alleged in the complaint, which was unsealed today, John and others – including approximately 20 Colombian citizens and a number of dual Haitian-American citizens – participated in a plot to kidnap or kill the Haitian President. As alleged, John was present when a co-conspirator (Co-Conspirator #1) secured the signature of a former Haitian judge on a written request for assistance to further the arrest and imprisonment of President Moïse, as well as purporting to provide Haitian immunity for such actions. According to the complaint, on June 28, 2021, Co-Conspirator #1, a dual Haitian-American citizen, traveled from Haiti to the United States in furtherance of the conspiracy and provided other individuals with the document, and flew from Florida back to Haiti on July 1, 2021, to participate in the operation against the president.
As alleged in the complaint, while the plot initially focused on conducting a kidnapping of the Haitian President as part of a purported arrest operation, it ultimately resulted in a plot to kill the President. The complaint alleges that on July 7, 2021, various co-conspirators entered President Moïse’s residence in Haiti with the intent and purpose of killing him, and in fact the President was killed.
As alleged in the complaint, John helped to obtain vehicles and attempted to obtain firearms to support the operation against the president. It is also alleged that John attended a meeting with certain co-conspirators on or about July 6, 2021, after which many of the co-conspirators embarked on the mission to kill President Moïse.
Co-conspirator #1 was subsequently arrested by Haitian authorities and remains in custody in Haiti. John was arrested in Jamaica pursuant to the United States’ provisional arrest request to the Government of Jamaica for John’s extradition. On April 28, the Minister of Justice of Jamaica signed the order granting the extradition request, resulting in John’s arrival in Miami last week. John is currently in the custody of U.S. law enforcement.
If convicted of the charges in the complaint, John faces a maximum sentence of life imprisonment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida and Special Agent in Charge George Piro of the FBI’s Miami Field Office made the announcement.
The FBI is investigating the case with other law enforcement partners, with valuable assistance provided by HSI.
Assistant U.S. Attorneys Andrea Goldbarg and Walter Norkin for the Southern District of Florida are prosecuting the case, with assistance from National Security Division Trial Attorneys Frank Russo, Jessica Fender and Emma Ellenrieder. The Justice Department’s Office of International Affairs provided valuable assistance.
A criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Third Defendant in ‘Grandparent Scam’ Network Pleads Guilty to RICO ConspiracyRead the Press Release
A third member of a network that operated and facilitated a large-scale “grandparent scam” pleaded guilty to racketeering conspiracy.
According to charges announced in August 2021, Anajah Gifford, 23, of North Hollywood, California, was a member of a network of individuals who, through extortion and fraud, induced elderly Americans across the United States to pay thousands to tens of thousands of dollars each to purportedly help their grandchild or other close family relative. Members of the network contacted elderly Americans by telephone and impersonated a grandchild, other close relative or friend of the victim. They falsely convinced the victims that their relatives were in legal trouble and needed money to pay for bail, for medical expenses for car accident victims, or to prevent additional charges from being filed. The defendants and their co-conspirators then received money from victims via various means (including in-person pickup, mail and wire transfer) and laundered the proceeds, including through cryptocurrency.
“The Department of Justice’s Consumer Protection Branch will pursue and prosecute individuals who target older Americans by preying on their concern for loved ones,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s Civil Division. “We are grateful to our partners at the U.S. Attorney’s Office for the Southern District of California and the FBI for their work in advancing the department’s efforts to combat organized elder fraud, and for the assistance the San Diego County District Attorney’s Office provided with this investigation.”
“This was a despicable scam that packed an emotional punch for its elderly victims,” said U.S. Attorney Randy Grossman of the Southern District of California. “It’s heartless to tell grandparents they must pay tens of thousands of dollars to rescue their beloved grandchildren from terrible trouble. These are serious crimes and there should be serious penalties.” Grossman thanked the prosecution team, state and federal law enforcement agency partners, and the Department of Justice’s Consumer Protection Branch for their excellent work on this case.
“These guilty pleas are a prime example of the collaboration and coordination among our local, state, and federal partners who make up San Diego’s Elder Justice Task Force, and the great work being done to protect our elderly population,” said Special Agent in Charge Suzanne Turner of the FBI San Diego Field Office. “The task force is committed to aggressively pursuing criminal organizations who prey on our senior citizens, and we will utilize all available investigative means to bring them to justice. I would also like to thank the FBI’s Los Angeles Field Office for their continued support in this case.”
Gifford pleaded guilty to conspiracy under the Racketeer Influenced and Corrupt Organizations (RICO) Act. She is scheduled to be sentenced on August 5. She faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Three co-defendants remain pending for trial. Two additional defendants have been charged but remain at large.
The case was investigated by the FBI’s San Diego Field Office, North County Resident Agency, with critical assistance from investigators of the San Diego County District Attorney’s Office.
Trial Attorneys Lauren M. Elfner and Wei Xiang with the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Oleksandra Johnson of the Southern District of California are prosecuting the case.
The department’s extensive and broad-based efforts to combat elder fraud seeks to halt the widespread losses seniors suffer from fraud schemes. The best method for prevention, however, is by sharing information about the various types of elder fraud schemes with relatives, friends, neighbors and other seniors who can use that information to protect themselves.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud, and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. ET. English, Spanish and other languages are available.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.
Texas man sentenced for sending obscene material to a minorRead the Press Release
MARTINSBURG, WEST VIRGINIA – Marcus Moreno, of LaVilla, Texas, was sentenced today to 84 months of incarceration for sending inappropriate pictures to a minor, United States Attorney William Ihlenfeld announced.
Moreno, 28, pleaded guilty in September 2021 to one count of “Transfer of Obscenity to Minor.” Moreno began communicating with a minor located in Berkeley County, West Virginia, via social media applications such as Snapchat, KIK, WhatsApp, and the minor’s school email accounts. The victim’s parents turned over her phone to investigators. Forensics revealed thousands of text messages, chats, and video communications between the victim and Moreno, dating from October 2018 to January 2019, when the victim was 15 years old. The investigation further revealed thousands of images of child pornography of the victim and obscene pornographic images of Moreno.
In May 2019, during execution of a search warrant Moreno gave a voluntary statement to agents saying he met the victim online in a chat room when she had just turned 14. Three weeks after that first conversation, they began online dating. Though never meeting in person, he told investigators he planned to marry the victim when she turned 18. He admitted to sending obscene images of himself to the victim. During the search of his home, the FBI found thousands of other graphic files and video files of the victim on several flash drives and devices.
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.
Assistant U.S. Attorney Kimberley D. Crockett prosecuted the case on behalf of the government. The FBI and the West Virginia State Police investigated.
U.S. District Judge Gina M. Groh presided.
Texas and Maryland Women Arrested for COVID-19 Relief FraudRead 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 Brandie S. Williams, 41, of Dallas, Texas, and Brittany L. Herbert, 35, of Brandywine, Maryland, were arrested and charged by criminal complaint with one count of conspiracy to commit bank fraud and one count of bank fraud. The charges carry a maximum penalty of 30 years in prison and a $250,000 fine.
Assistant U.S. Attorney Laura A. Higgins, and Cory E. Jacobs and Jennifer L. Bilinkas of the Criminal Division’s Fraud, who are handling the case, stated according to the complaint, between May 2020 and June 2021, Williams and Herbert conspired with Adam Arena and Amanda Gloria, and others, to fraudulently obtain and misuse multiple COVID-19 Paycheck Protection Program (PPP) emergency relief loans, including:
• Williams, Herbert, and Gloria worked together to fraudulently obtain a $290,000 loan for William’s business, Beyond the Next Level, Inc. After receiving the PPP loan, Williams did not use the funds for legitimate business-related purposes. For instance, she transferred $10,000 into bank accounts of Amanda Gloria’s daughters, $11,953.10 to a business account controlled by Amanda Gloria, and $21,953.10 to an account controlled by co-defendant Herbert.
• Williams, Herbert, and Gloria and Arena worked together to fraudulently obtain a loan for approximately $954,000 for Arena's business, ADA Auto Group. After the PPP loan proceeds were transferred into an account controlled by Arena, he conducted a series of financial transactions, including for his own personal benefit, for Gloria's benefit, and for the benefit of others.
• Williams, Herbert, and Gloria worked together to fraudulently obtain at least 42 additional loans for at least 31 entities owned by other individuals, requesting a total of approximately $10,200,000. This resulted in Herbert and Gloria personally receiving at least approximately $383,000. The defendants submitted false and fraudulent documents to support the loan applications, including falsified payroll expenses, fraudulent bank records, and fabricated federal tax filings.
Adam Arena and Amanda Gloria were previously convicted and are awaiting sentencing.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
The Fraud Section leads the Department of Justice’s prosecution of fraud schemes that exploit the CARES Act. In the months since the CARES Act was passed, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real-estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/cares-act-fraud.
Anyone with general information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The criminal complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent in Charge Thomas Fattorusso; the United States Postal Inspection Service, Boston Division, under the direction of Inspector-in-Charge Ketty Larco-Ward; and the Social Security Administration Office of Inspector General, under the direction of Special Agent-in-Charge Sharon B. MacDermott, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Springfield, Illinois, Man Sentenced to 96 months in Prison for Attempted Enticement of a Minor and Use of Interstate Facilities to Attempt to Transmit Information about a MinorRead the Press Release
SPRINGFIELD, Ill. – A Springfield, Illinois, man, Matthew Wetzel, 37, of the 800 block of East Edward Street, was sentenced on May 5, 2022, to 96 months in prison for attempted enticement of a minor and use of interstate facilities to attempt to transmit information about a minor.
At the sentencing hearing before United States District Judge Sue Myerscough, the government presented evidence that on or about August 27 and August 28, 2020, Wetzel knowingly attempted to persuade, induce, and entice an individual whom he believed had not attained the age of 18 years to engage in sexual activity. On those same dates, Wetzel also knowingly used a facility and means of interstate commerce, the internet and a cellular telephone, with the intent to transmit the name and address of another individual who had not attained the age of 16, and he did so with the intent to entice, encourage, offer, and solicit that person to engage in sexual activity.
Wetzel was indicted in September 2020 and pleaded guilty in November 2021. He was taken into the custody of the United States Marshals after the sentencing hearing.
The prosecution was the result of an investigation by the Federal Bureau of Investigation, Springfield Office, with the assistance of the Sangamon County Sheriff’s Office; U.S. Immigration and Customs Enforcement Homeland Security Investigations; the Springfield Police Department; and the Illinois State Police. Assistant U.S. Attorney Tanner K. Jacobs represented the government in the 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.
Southern California Center for Autistic Children Pays $650,000 to Resolve Allegations of Fraudulent BillingRead the Press Release
Assistant U. S. Attorney Dylan M. Aste (619) 546-7621
NEWS RELEASE SUMMARY – May 9, 2022
SAN DIEGO – Prism Behavioral Solutions has paid $650,000 to resolve allegations that it billed the state’s Medicaid Program, known as Medi-Cal, for services to autistic children without actually providing care to the children, according to a settlement agreement signed by Prism Behavioral Solutions, the United States, and the State of California.
Prism Behavioral Solutions provides treatment to children diagnosed with autism and other related disorders through therapy called Applied Behavioral Analysis. Prism Behavioral Solutions maintains a corporate address in Woodland Hills, California, and provides medical services to patients in Southern California. The United States and the State of California alleged that Prism Behavioral Solutions violated the federal False Claims Act and the California False Claims Act by knowingly submitting false claims to Medi-Cal for medical services that Prism Behavioral Solutions did not perform from September 2016 through December 2019. According to a whistleblower’s complaint, this included Prism Behavioral Solutions billing Medi-Cal for cancelled appointments.
“Billing government health care programs for services not rendered negatively impacts the entire health care system,” said U.S. Attorney Randy S. Grossman. “This settlement shows our continuing commitment to protect the integrity of government health care programs and other taxpayer-funded programs. We commend the whistleblower in this case for coming forward, and the team of federal and state agency partners and Assistant U.S. Attorneys for their work on this case.”
This settlement resolves the allegations in a former Prism Behavioral Solutions employee’s whistleblower lawsuit filed under the qui tam provisions of the False Claims Act, which permit private individuals to sue for false claims on behalf of the government and to share in a recovery. The civil lawsuit was filed in the Southern District of California and is captioned United States and the State of California, ex rel. Mason v. Prism Autism Foundation, 19-CV-0043-W (BLM). As part of this settlement, the whistleblower will receive $130,000.
“Prism had the important responsibility of supporting and caring for children and young adults with autism spectrum disorders,” said Attorney General Rob Bonta. “Instead of fulfilling its obligation to the families under its care, Prism is alleged to have filed false claims and misused state taxpayer money. These allegations are shameful and these families deserved respect and dignity, not to be used to cheat state resources. I am grateful to the U.S. Attorney’s Office for their involvement in this investigation, which helped bring justice to these families and California taxpayers. My office will continue to hold accountable bad actors who hurt the health and well-being of Californians.”
The resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
This matter was handled by Assistant U.S. Attorney Dylan M. Aste of the U.S. Attorney’s Office for the Southern District of California; the Office of Inspector General for the U.S. Department of Health and Human Services; and the California Department of Justice, Division of Medi-Cal Fraud and Elder Abuse.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
South Florida Political Campaign Consultant Charged with Defrauding Covid-19 Relief ProgramRead the Press Release
Miami, Florida – Federal prosecutors have charged 42-year-old Royal Palm Beach, Florida resident Omar Smith with lying on a coronavirus relief loan application and fraudulently obtaining more than two hundred thousand dollars intended to help small businesses financially survive the Covid-19 pandemic.
According to the information filed today in federal district court in Fort Lauderdale, in June 2020, Smith applied for a $212,500 forgivable, federally-guaranteed Paycheck Protection Program (PPP) loan on behalf of A Star For I, Inc., a Florida company that he owned. It is alleged that to justify the requested loan amount, Smith claimed in the on-line loan application, and through supporting fraudulent payroll tax forms, that his company employed 30 people and spent an average of $85,000 each month on payroll. In fact, A Star For I, Inc had zero employees and no payroll expenses. A bank in Utah approved A Star For I, Inc.’s PPP loan application based on the lies and wired $212,500 to the company’s bank account in Florida, says the information.
Once the money hit the bank account in July 2020, Smith spent the next few months creating a paper trail to make it appear as if A Star For I, Inc. in fact had employees and was spending the PPP money on legitimate, approved expenses, it is alleged. According to the information, Smith issued checks from the company bank account made out to others who did little or no work for A Star For I, Inc.
The information charges Smith with conspiring to commit bank fraud and wire fraud. If convicted, he faces up to 30 years in prison and a fine of up to $1 million.
Smith has worked on political campaigns in South Florida.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI Miami, announced the charges.
FBI Miami investigated this case. Assistant U.S. Attorney Jeffrey Kaplan is prosecuting it.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law designed to provide emergency financial assistance to millions of Americans who suffered financially from the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses through the Paycheck Protection Program (PPP).
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
An information is merely an allegation and a defendant are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-80074.
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South Carolina Man Charged in Connection with Transporting Minor to Engage in Criminal Sexual ActivityRead the Press Release
TUCSON, Ariz. – Last week, a federal grand jury in Tucson returned a two-count indictment against Timothy Mikell Schultheis, aka Jackson Oden, 24, of South Carolina, charging Transportation of a Minor with Intent to Engage in Criminal Sexual Activity and Travel with Intent to Engage in Illicit Sexual Conduct.
The indictment alleges that on or about March 20, 2022, Schultheis knowingly transported Jane Doe, a 12-year-old minor, in interstate commerce by taking her from the state of Arizona to the state of South Carolina, with intent to engage in criminal sexual activity. The indictment further alleges that Schultheis traveled in interstate commerce from Arizona to South Carolina for the purpose of engaging in illicit sexual conduct with the minor.
According to the complaint filed last month, the 12-year-old was reported missing after she left her home on the morning of March 20, 2022 and did not return. The minor’s Facebook account revealed communications with 24-year-old Schultheis, including his plan to travel from South Carolina and pick up the child in Safford, and his intention to engage in sexual conduct with her. When Schultheis was arrested at his apartment in South Carolina on March 30, 2022, Jane Doe was found in the apartment.
A conviction for the crime of Transportation of a Minor with Intent to Engage in Criminal Sexual Activity carries a mandatory minimum penalty of 10 years imprisonment and a maximum penalty of life imprisonment. A conviction for the crime of Travel with Intent to Engage in Illicit Sexual Activity carries a maximum penalty of 30 years imprisonment.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The FBI in Sierra Vista and the Graham County Sheriff’s Department conducted the investigation in this case. Assistant U.S. Attorneys Carin Duryee and Raquel Arellano, District of Arizona, Tucson, are handling the prosecution.
CASE NUMBER: CR-22-00973-TUC-RM
RELEASE NUMBER: 2022-062_Schultheis# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Sacramento Man Pleads Guilty to COVID-19 Relief Fraud, Embezzlement, and Unemployment FraudRead the Press Release
SACRAMENTO, Calif. — Aaron Ashcraft, 42, of Sacramento, pleaded guilty today to one count of wire fraud and one count of bank fraud in a scheme to defraud the Paycheck Protection Program of over $1.2 million in COVID-19 relief loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, U.S. Attorney Phillip A. Talbert announced.
The CARES Act was enacted on March 29, 2020, to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of forgivable loans to small businesses for job retention and certain other expenses, through the Paycheck Protection Program.
According to court documents, Ashcraft carried out the fraud scheme between May 2020 and April 2021. As part of his scheme, Ashcraft submitted to SBA-approved lenders at least seven fraudulent Paycheck Protection Program loan applications in the names of purported businesses. In the applications, Ashcraft falsely represented that each of the purported businesses had employees and monthly payroll expenses. To support the Paycheck Protection Program loan applications, Ashcraft submitted fabricated records including Internal Revenue Service forms, checking account statements, and payroll summaries. In total, Ashcraft requested over $1.2 million in Paycheck Protection Program loans and obtained approximately $920,000.
In addition to Paycheck Protection Program fraud, Ashcraft admitted that, from September 2017 through June 2020, he embezzled at least approximately $780,000 from his former employer—a street-sweeping company in Sacramento. Ashcraft held multiple positions at the company, including chief financial officer. As chief financial officer, Ashcraft had access to the company’s business credit card accounts. Without authorization, Ashcraft used those accounts to pay for personal expenses.
Finally, Ashcraft admitted to defrauding the Maine Department of Labor. According to his plea agreement, in July 2020, Ashcraft applied for Pandemic Unemployment Assistance, falsely claiming that he lived in Maine and was unable to work due to COVID-19. To support his application, Ashcraft submitted falsified IRS forms in which he represented that, in 2019, he operated a business in Maine that received over $160,000 in income and made a net profit of over $66,000. In total, Ashcraft fraudulently obtained unemployment compensation of over $58,000.
As part of his plea agreement, Ashcraft agreed to pay restitution as follows:
- A total of $919,598 to three SBA-approved lenders;
- $45,979 to the SBA;
- $779,832 to his former employer; and
- $58,050 to the Maine Department of Labor.
This case is the product of an investigation by the Federal Bureau of Investigation, the Federal Deposit Insurance Corporation Office of Inspector General, and the Small Business Administration Office of Inspector General. Assistant U.S. Attorney Matthew Thuesen is prosecuting the case.
U.S. District Judge Kimberly J. Mueller is scheduled to sentence Ashcraft on Aug. 22, 2022. He faces up to 20 years in prison and a $250,000 fine for wire fraud and up to 30 years in prison and a $1 million fine for bank fraud. 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.
Rutland Man Charged with Convenience Store RobberiesRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Daniel Webster, 37, of Rutland, Vermont was arraigned by waiver today on a Superseding Indictment that alleges Webster committed two robberies that interfered with interstate commerce. The first robbery occurred on July 24, 2021, at the Mobil gas station located on South Main Street in Rutland. The second occurred on July 28, 2021, at the Mac’s convenience store in Fair Haven.
According to court records, Webster is accused of entering the Mobil gas station on the evening of July 24, 2021, approaching the cash register with a package of crackers, spraying a liquid at the clerk, and stealing cash from the register. A knife was recovered from the parking lot along the path of flight used by the robber. Webster is also accused of entering the Mac’s convenience store on the afternoon of July 28, 2021, brandishing a knife as he walked around the counter directly to the store’s safe, removing a money bag from the safe, and removing additional cash from the register drawer. Webster previously worked at the Mac’s convenience store and was familiar with the location of the safe and the operation of the store’s registers.
At today’s arraignment, not-guilty pleas on both robbery charges were entered on Webster’s behalf. Webster is also accused in a separate federal case of distributing cocaine base on two occasions in March of 2021, and previously entered not-guilty pleas to those charges. Webster is currently detained pending trial.
The United States Attorney’s Office emphasizes that an indictment contains allegations only and that Webster remains presumed innocent until and unless he is convicted of a crime. Webster faces a maximum sentence of 20 years of imprisonment on both robbery charges.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of the Rutland City Police Department, the Vermont State Police, the Vermont Forensic Laboratory, and the Federal Bureau of Investigation.
The prosecutor is Assistant United States Attorney Jonathan Ophardt. Webster is represented by Assistant Federal Public Defender Sara Puls.
Phoenix Man Sentenced to 10 Years for Series of Armed RobberiesRead the Press Release
PHOENIX, Ariz. – Jonathan Bastida-Delgado, 28, of Phoenix, Arizona, was sentenced last week by U.S. District Judge Dominic W. Lanza to 120 months in prison, followed by three years of supervised release. Bastida-Delgado previously pleaded guilty to two counts of Hobbs Act Robbery and one count of Using, Carrying, and Brandishing a Firearm during and in relation to a Crime of Violence.
In March 2020, authorities became aware of a series of armed robberies targeting businesses in Phoenix, Glendale and Buckeye, Arizona from late February through mid-March 2020. According to witnesses, the suspect in each robbery matched the same general physical description, wore a combination of the same clothing, and made similar types of threats to the victims. In each robbery, the suspect also used the same black and silver semiautomatic handgun. Working together, the FBI and local law enforcement identified and located Bastida-Delgado and took him into custody without incident on March 17, 2020.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The FBI Desert Hawk Violent Crime Task Force conducted the investigation in this case. Assistant U.S. Attorney Brian E. Kasprzyk, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-20-00589-PHX-DWL
RELEASE NUMBER: 2022- 063_Bastida-Delgado# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Passaic County Man Sentenced to 21 Months in Prison for Role in Stealing Employer’s Oral Care Formulas and Sending Them OverseasRead the Press Release
NEWARK, N.J. – A former research technician and scientist for a worldwide consumer products company that researched, developed, designed, manufactured, marketed, and sold oral care consumer products was sentenced today to 21 months in prison for his role in a wire fraud conspiracy, U.S. Attorney Philip R. Sellinger announced.
Muamer Reci, 58, of Haskell, New Jersey, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with one count of conspiracy to commit wire fraud. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
In August 2012, two individuals established a consumer hygiene and cleaning products company, Reci & Sons, which, in November 2015, established a subsidiary, Reci Enterprises, in Macedonia. Reci never disclosed the existence of Reci & Sons or Reci Enterprises to his employer.
A document dated July 31, 2016, and titled “Project Eurodent” was recovered from Reci’s work email account. The document (the Eurodent Business Plan) described a plan for Reci Enterprises to develop, manufacture, and sell a toothpaste named Eurodent. The Eurodent Business Plan listed as one of its objectives to “Launch Reci Enterprises research labs, and manufacturing complex to the public by fourth quarter of Year 2017.” The Eurodent Business Plan valued the business at roughly $2 million.
As the anticipated construction date for the manufacturing facility approached, Reci sent several emails to an individual at Reci & Sons attaching his employer’s proprietary toothpaste formulas for existing products and an unreleased toothpaste product, as well as proprietary laboratory procedures for the employer’s products. For example, on Aug. 9, 2017, Reci sent an email to someone stating: “[p]rint this [sic] formulas and file them.” Attached to the email were proprietary toothpaste formulas belonging to the employer, including formulas for a dry mouth toothpaste that the employer had not yet launched, and a children’s toothpaste marketed by the employer. The email also attached the formula for Reci Enterprises’ Eurodent toothpaste, which contained proprietary signature features of the employer’s existing product.
In addition to the prison term, Judge Cecchi sentenced Reci to three years of supervised release and ordered him to pay $188,384 in restitution.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Michael Messenger in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Ari B. Fontecchio of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
PH.D. Chemist Sentenced to 168 Months for Conspiracy to Steal Traded Secrets, Economic Espionage, Theft of Trade Secrets, and Wire FraudRead the Press Release
GREENEVILLE, Tenn. – On May 9, 2022, Dr. Xiaorong You, aka Shannon You, 59, of Lansing, Michigan was sentenced to serve 168 months in prison by the Honorable J. Ronnie Greer, U.S. District Judge in the United States District Court for the Eastern District of Tennessee. Following her imprisonment, the defendant was also ordered to serve three years of supervised release and pay a $200,000 fine.
In April 2021, following a thirteen-day trial, a federal jury convicted You of conspiracy to commit trade secret theft in violation of 18 U.S.C. § 1832(a)(5), conspiracy to commit economic espionage in violation of 18 U.S.C. § 1831(a)(5), possession of stolen trade secrets in violation of 18 U.S.C. § 1832(a)(3), economic espionage 18 U.S.C. § 1831(a)(3), and wire fraud in violation of 18 U.S.C. § 1343.
According to court documents and evidence presented at trial, You stole valuable trade secrets related to formulations for bisphenol-A-free (BPA-free) coatings for the inside of beverage cans. You was granted access to the trade secrets while working at The Coca-Cola Company in Atlanta, Georgia, and Eastman Chemical Company in Kingsport, Tennessee. The stolen trade secrets belonged to major chemical and coating companies, including Akzo-Nobel, BASF, Dow Chemical, PPG, Toyochem, Sherwin Williams, and Eastman Chemical Company, and cost nearly $120,000,000 to develop.
You stole the trade secrets to set up a new BPA-free coating company in China. You and her Chinese corporate partner, Weihai Jinhong Group received millions of dollars in Chinese government grants to support the new company. Documents and other evidence presented at trial, showed You’s intent to benefit not only Weihai Jinhong Group, but also the governments of China, the Chinese province of Shandong, and the Chinese city of Weihai, as well as her intent to benefit the Chinese Communist Party.
Until recently, BPA was used universally to coat the inside of cans and other food and beverage containers to help minimize flavor loss and prevent the container from corroding or reacting with the food or beverage contained therein. However, due to BPA’s potential health risks, companies began searching for BPA-free alternatives. As witnesses from the chemical and coating companies testified at trial, developing these BPA-free alternatives was a very complex, expensive and time-consuming process.
Evidence presented at trial showed that from December 2012 through Aug. 31, 2017, You was employed as Principal Engineer for Global Research at Coca-Cola, which had agreements with numerous companies to conduct research and development, testing, analysis, and review of various BPA-free technologies. Because of You’s extensive education and experience with BPA and BPA-free coating technologies, she was one of a limited number of Coca-Cola employees with access to BPA-free trade secrets belonging to Akzo-Nobel, BASF, Dow Chemical, PPG, Toyochem, and Sherwin Williams. From approximately September 2017 through June 2018, You was employed as a packaging application development manager for Eastman Chemical Company in Kingsport, Tennessee, where she was one of a limited number of employees with access to trade secrets belonging to Eastman.
“As the evidence at trial showed, the defendant stole valuable trade secrets and intended to use them to benefit not only a foreign company, but also the government of China,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today’s sentence reflects the seriousness of this offense, as well as the Department of Justice’s commitment to protect our nation’s security by investigating and prosecuting those who steal U.S. companies’ intellectual property.”
“When companies invest huge amounts of time and money to develop world-class technologies, only to have those technologies stolen, the results are devastating,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Here, the defendant intended not only to enrich herself and her China-based partners, but also the government of China. Crimes like the defendant’s threaten both victim companies and the economic security of the nation as a whole. This case should serve as a warning to those entrusted with valuable trade secrets: if you break the law, you will be punished.”
“Stealing trade secrets of U.S. companies for the benefit of the Chinese government will be vigorously prosecuted in the Eastern District of Tennessee, and today’s 14-year sentence reflects the seriousness of this defendant’s crimes,” said U.S. Attorney for the Eastern District of Tennessee Francis M. Hamilton III. “The corporate vigilance and subsequent cooperation with federal law enforcement that brought this defendant to justice is to be commended; our national security depends on it.”
“Stealing technology isn’t just a crime against a company,” said Acting Assistant Director Bradley S. Benavides of the FBI’s Counterintelligence Division. “It’s a crime against American workers whose jobs and livelihoods are impacted. Today’s sentencing is a reminder that the FBI and its partners will hold accountable those who break our laws and threaten our economic and national security.”
“Ingenuity, innovation, and perseverance are the time-honored trademarks of American business and entrepreneurship. In the current global state of commerce, corporations are forced to place an increased emphasis on the protection of trade secrets and intellectual property. The FBI will not sit by while any nation-state attempts to steal or incentivizes the theft of trade secrets from successful corporations. The FBI is committed to working with industry to hold those accountable who would attempt to steal technology or trade secrets at the cost of American businesses, their employees, and their livelihood,” said Joseph E. Carrico, Special Agent-in-Charge of the Knoxville office of the Federal Bureau of Investigation.
Assistant Attorney General Matthew G. Olsen of the National Security Division; Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; and U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee made the announcement.
The FBI’s Knoxville Field Office and Department of Homeland Security’s Homeland Security Investigation (HSI) investigated the case.
Former Assistant U.S. Attorney T.J. Harker of the Eastern District of Tennessee; Senior Counsel Matt Walczewski of the U.S. Department of Justice’s Criminal Division’s Computer Crime and Intellectual Property Section; and Trial Attorney Nic Hunter of the U.S. Department of Justice’s National Security Division’s Counterintelligence and Export Control Section prosecuted the case.
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Orange County Man Sentenced to 2½ Years in Federal Prison for Fraudulently Obtaining $1.5 Million in COVID-Relief LoansRead the Press Release
SANTA ANA, California – An Orange County man was sentenced today to 30 months in federal prison for fraudulently obtaining more than $1.5 million in Paycheck Protection Program (PPP) COVID-relief loans that he used for personal expenses and stock market trading.
William Nicoloff Jr., 51, of Mission Viejo, was sentenced by United States District Judge James V. Selna, who also ordered him to pay $1,554,063 in restitution. At today’s hearing, Judge Selna said Nicoloff’s conduct was “extremely troubling” because it “pervert[ed] a public program designed to help small businesses during a time of severe economic hardship.”
Nicoloff pleaded guilty in April 2021 to one count of bank fraud and one count of conducting an unlawful monetary transaction.
From April 2020 to June 2020, Nicoloff obtained six PPP loans by defrauding two banks. To obtain the loans, he submitted to the banks false documents on behalf of four companies he owned and controlled – including Stonecreek Capital Partners and David Capital LLC – as well as himself and another individual. The fraudulent documents included falsified bank records, phony lease agreements, altered incorporation records, fake IRS records and bogus employee information.
On the loan applications, Nicoloff falsely certified the number of employees and average monthly payrolls of the applicant companies and falsely claimed Nicoloff did not own other businesses.
Nicoloff also falsely represented that the PPP funds would be used to pay employees and other permissible business expenses, when, in fact, he intended to use and later used the PPP loan proceeds to fund personal living expenses and securities trading activity entirely unrelated to the businesses for which the PPP loans were obtained.
In total, Nicoloff fraudulently obtained $1,554,054 in PPP loans.
Nicoloff transferred $405,880 in proceeds from the David Capital loan to a separate brokerage account and engaged in securities trading as well as using some of the loan to pay off personal expenses. Nicoloff has agreed to forfeit $1,709,151, which includes the $1,554,063 he obtained from the PPP loans as well as $155,097 in proceeds he gained because of securities trading from the illicit loans. These funds were previously recovered by the government from seizures of Nicoloff’s accounts.
The Federal Reserve Board – Office of Inspector General; the U.S. Treasury Inspector General for Tax Administration; IRS Criminal Investigation; and the Small Business Administration – Office of Inspector General investigated this matter.
Assistant United States Attorney Scott Paetty of the Major Frauds Section prosecuted this case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Ohio Man Sentenced to Prison for Federal Gun and Drug CrimesRead the Press Release
HUNTINGTON, W.Va. – An Ohio man was sentenced today to two and one-half years in prison, to be followed by three years of supervised release, for attempted possession with intent to distribute suboxone and conspiracy to use a firearm in furtherance of a drug trafficking crime.
According to court documents and statements made in court, Jacob Benjamin Loper, 21, was an inmate at the Western Regional Jail on June 14, 2021, when he used recorded jail phone lines to speak with an individual outside of the jail. Loper instructed the individual to go to a residence at Marcum Terrace in Huntington to recover $1,500 worth of suboxone that belonged to Loper and was believed to be in the possession of another person. Loper consented to the individual carrying a firearm to retrieve the suboxone. Loper’s associate was unable to retrieve the suboxone from the residence. As Loper’s associate and another individual at the scene were driving away from the residence, a shootout occurred between them and an occupant of the residence. Subsequent to the shooting, Loper communicated via phone with the person believed to be in possession of the suboxone and threatened that if he did not receive his drugs or get paid for them, that shootings would keep happening.
United States Attorney Will Thompson made the announcement and commended the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Huntington Police Department, and the West Virginia Division of Corrections and Rehabilitation Investigations Unit.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Ryan A. Keefe prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-215.
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Montreal Man Sentenced to 30 Months’ Imprisonment for Leading A Sweepstakes and Lottery Fraud Targeting the ElderlyRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on May 4, 2022, Itcace Abramovici, age 72, of Montreal, Quebec, was sentenced to 30 months’ imprisonment by U.S. District Court Judge Christopher C. Conner following his conviction for conspiracy to commit mail and wire fraud. Judge Conner also ordered Abramovici to make restitution to victims in the amount of $461,886.49, and to serve one year of supervised release following his release from prison.
According to United States Attorney John C. Gurganus, Abramovici played a leadership role in a Montreal-based telemarketing and money laundering organization that targeted elderly victims in the United States, including those living in central Pennsylvania. Abramovici and his co-conspirators informed prospective victims that they had won a substantial amount of money in a lottery or sweepstakes and then directed those victims to send money in order to obtain their winnings. The victims’ payments were falsely characterized as taxes, customs fees, processing fees, and legal and insurance fees. None of the victims received any money, and many of their losses were substantial, with more than $460,000 in victim losses being attributed to Abramovici’s role in the fraud, and with losses to victims of the broader fraud at more than $1.3 million. As part of his guilty plea, Abramovici admitted to playing a leadership role in the scheme. The investigation that led to Abramovici’s prosecution identified at least 17 individual victims.
The case was investigated by the United States Postal Inspection Service – Harrisburg Office. Assistant U.S. Attorney Christian T. Haugsby prosecuted the case.
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Merrill Man Sentenced to 137 Months for Methamphetamine TraffickingRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that TJ Myers, 33, Merrill, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 137 months in prison for conspiracy to distribute 50 grams or more of methamphetamine. Myers pleaded guilty to this charge on January 26, 2022.
On June 8, 2020, an officer from the Merrill Police Department attempted a traffic stop of a Jeep Patriot driven by Myers. Myers stopped the vehicle and fled on foot. Officers searched the Jeep and found approximately 400 grams of methamphetamine inside the center console. The government’s investigation revealed that Myers had received the methamphetamine from his co-defendant, Levi Bagne, who lived in Arizona.
At the sentencing hearing, Judge Peterson described Myers’ criminal history as “unrelenting” and noted his multiple felony convictions for methamphetamine trafficking. Judge Peterson also concluded that a substantial sentence was warranted because Myers played a significant role in a large-scale drug trafficking organization. Judge Peterson also noted it was an aggravating factor that Myers had been released from prison for less than two months at the time of his arrest in Merrill.
Bagne has signed a plea agreement and has a plea hearing scheduled before Judge Peterson tomorrow.
The charge against Myers is the result of a joint investigation by the Central Wisconsin Narcotics Task Force, Drug Enforcement Administration, Lake Winnebago Area Metropolitan Unit, and Merrill Police Department. The investigation was conducted and funded by the Organized Crime Drug Enforcement Task Force (OCDETF), a multi-agency task force that coordinates long-term narcotics trafficking investigations. Assistant U.S. Attorney Aaron Wegner is handling the prosecution.
Members of Darrin Southall Drug Organization Sentenced in Federal CourtRead the Press Release
MOBILE, AL –Three members of Darrin Southall’s drug trafficking organization have been sentenced in federal court. Two of them will serve 10 years in federal prison and one of them will serve 5 years in federal prison.
According to court documents, Southall ran a continuing criminal enterprise involving the distribution of massive amounts of controlled substances in the Mobile, Alabama, area, and the laundering of drug proceeds through bank accounts and nominees. Sentenced on April 28 were Eric Alonzo Windham, also known as “Dumbo,” 49, of Prichard, Alabama; Terrance Santez Malik Watkins, also known as “YSD Capp,” 25, of Mobile; and Willie Demarcus Oliver, also known as “Ill Will,” 31 of Mobile. Watkins and Oliver entered guilty pleas to conspiracy to possess with intent to distribute more than five kilograms of cocaine during September of 2021, and Windham entered a guilty plea to the same charge in October of 2021. Court documents identified Oliver as a street dealer, implicated when he sold cocaine to an undercover informant. Watkins was identified as a large-scale dealer who supplied Oliver and others with cocaine for distribution and who acted as an enforcer for Southall. Windham was identified as a courier working for Southall, who drove drug money to Texas to pay for loads of cocaine and returned to Mobile with cocaine. According to evidence adduced at Windham’s sentencing hearing, his residence on Myrtlewood Boulevard in Prichard facilitated the drug distribution activity as a stash house and a location where kilograms from the cocaine loads were distributed to others.United States District Court Judge Kristi DuBose imposed a sentence of 10 years in Watkins and Windham’s cases. The judge imposed a sentence of 5 years in Oliver’s case. The judge further ordered that each defendant would also serve five years on supervised release following their imprisonment. As conditions of their supervision, each defendant will also undergo testing and treatment for drug and/or alcohol abuse, and they will be subject to a search of their persons and premises upon reasonable suspicion. No fine was imposed but the judge ordered that each defendant pay $100 in special assessments. Each defendant’s interest in a long list of seized property was ordered forfeited to the United States.
The case was investigated by the Mobile Police Department, the Mobile County Sheriff’s Office, the Department of Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Baldwin County Sheriff’s Office, the Alabama Law Enforcement Agency, the Saraland Police Department, the St. Tammany Parish, Louisiana, Sheriff’s Office, and the Drug Enforcement Administration. Assistant U.S. Attorney Gloria Bedwell prosecuted the case on behalf of the United States.
Massachusetts Man Sentenced to 7 Years for Federal Drug and Firearms ChargesRead the Press Release
BANGOR, Maine: A Dorchester, Massachusetts man was sentenced today in federal court for conspiring to distribute and possess with the intent to distribute 40 grams or more of fentanyl, being a felon in possession of a firearm, and aiding and abetting the straw purchase of firearms, U.S. Attorney Darcie N. McElwee announced.
U.S. District Judge Lance E. Walker sentenced Sergio Figueroa aka “Kash,” 26, to seven years in prison and four years of supervised release. Figueroa pleaded guilty on October 19, 2021.
According to court records, in April 2021, Figueroa conspired to distribute and possess with intent to distribute fentanyl. As part of the conspiracy, he used a residence in Bangor to store and distribute drugs. On April 21, 2021, agents with the U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency executed a search warrant at the Bangor residence. Upon searching Figueroa’s bedroom, agents found 80 grams of fentanyl and $1,680 in cash along with a loaded .380 caliber pistol. Figueroa was prohibited from possessing firearms and ammunition because of a prior Maine felony conviction.
Earlier, in a separate January 2020 incident, court records show that Figueroa arranged for a straw purchaser to buy two pistols for him from a federal firearm licensee in Androscoggin County. While purchasing the firearms, the straw purchaser responded “Yes” to a question on a Bureau of Alcohol, Tobacco, Firearms and Explosives form that asked whether the purchaser was the actual buyer of the firearms. In truth, the straw purchaser bought the firearms at Figueroa’s instruction, using money provided by Figueroa, and gave the firearms to Figueroa minutes after the sale. It is against federal law to aid and abet the provision of false information to federal firearm licensees when purchasing firearms from them.
The case was investigated by the U.S. Drug Enforcement Administration; the Maine Drug Enforcement Agency; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Lewiston Police Department.
Project Safe Neighborhoods: Project Safe Neighborhoods is a nationwide initiative that brings together federal, state, local and tribal law enforcement officials, prosecutors, community leaders and other stakeholders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. Project Safe Neighborhoods is coordinated by the U.S. Attorneys’ Offices in the 94 federal judicial districts throughout the 50 states and U.S. territories, and the program is customized to account for local violent crime problems and resources. Across all districts, Project Safe Neighborhoods follows four key design elements of successful violent crime reduction initiatives: community engagement, prevention and intervention, focused and strategic enforcement, and accountability.
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Maryland man sentenced for firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Todd Dwayne Mills, Jr., of Hagerstown, Maryland, was sentenced today to three years of probation for a firearms charge, United States Attorney William Ihlenfeld announced.
Mills, 24, pleaded guilty in November 2021 to one count of “False Statement During Purchase of Firearms.” Mills admitted to made false statements on forms to purchase two 9mm pistols in March 2021 in Berkeley County.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
U.S. District Judge Gina M. Groh presided.
Maryland man sentenced for drug traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Traun Renekki Musgrove, of Hagerstown, Maryland, was sentenced today to one year of probation for a drug charge, United States Attorney William Ihlenfeld announced.
Musgrove, 42, pleaded guilty in December 2021 to one count of “Unlawful Use of Communication Facility.” Musgrove admitted to using a phone to sell marijuana in June 2017 in Berkeley County.
Musgrove was also ordered to pay a $6,678 fine.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Gina M. Groh presided.
Maryland man sentenced for drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Kevin Joseph Young, of Baltimore, Maryland, was sentenced today to 72 months of incarceration for a drug charge, United States Attorney William Ihlenfeld announced.
Young, 56, pleaded guilty in November 2021 to one count of “Possession with Intent to Distribute 100 Grams or More of a Mixture and Substance Containing Phencyclidine (PCP).” Young admitted to having 100 grams or more of PCP in September 2019 in Jefferson County.
This case is the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally. 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.
Assistant U.S. Attorneys Lara Omps-Botteicher and Eleanor F. Hurney prosecuted the case 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.
U.S. District Judge Gina M. Groh presided.Maryland man sentenced for a firearms conspiracyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Dylan Michael Ward, of Hagerstown, Maryland, was sentenced today to six months of incarceration for a firearms conspiracy, United States Attorney William Ihlenfeld announced.
Ward, 23, pleaded guilty in December 2021 to one count of “Conspiracy.” Ward admitted to working with others to purchase and transport firearms illegally across state lines from West Virginia into Maryland. The crimes occurred in March and April of 2021 in Berkeley County and elsewhere.
Ward was also ordered to pay a fine of $13,356.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
U.S. District Judge Gina M. Groh presided.
Martinsburg man sentenced to 10 years for drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Dwayne Paige, of Martinsburg, West Virginia, was sentenced today to 120 months of incarceration for a drug charge, United States Attorney William Ihlenfeld announced.
Paige, 48, pleaded guilty in September 2021 to one count of “Distribution of Fentanyl and Heroin.” Paige admitted to selling heroin and fentanyl in December 2018 in Berkeley County.
Assistant U.S. Attorney Timothy D. Helman prosecuted the case on behalf of the government. The Washington County, Maryland Task Force investigated.
U.S. District Judge Gina M. Groh presided.
Madison Man Sentenced to 8 Years for Cocaine Trafficking and Illegal Gun PossessionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Arwin C. Lacy, 31, Madison, Wisconsin was sentenced today by U.S. District Judge James D. Peterson to 7 years in federal prison for possessing cocaine with the intent to distribute and possessing a firearm in furtherance of a drug trafficking crime. This prison term will be followed by 5 years of supervised release. Lacy pleaded guilty to this charge on January 11, 2022.
On June 18, 2020, Dane County Narcotics Task Force officers arrested Lacy in Madison, Wisconsin for a prior delivery of cocaine. During the arrest, Lacy told officers that he had a firearm in his right pants pocket. Officers found a loaded Glock 43 9mm handgun in that pocket. Officers located fourteen tied-off baggies of crack cocaine weighing a total of 7.8 grams, three tied-off baggies of heroin weighing a total of 0.7 grams, and $503 in cash in Lacy’s left pants pocket. Following Lacy’s arrest, officers searched his vehicle. Officers found $17,000 in cash, packages of designer marijuana, and four cell phones in a backpack. When interviewed by officers, Lacy admitted to selling cocaine for profit. Lacy was prohibited from possessing a firearm based on multiple prior felony convictions.
At the time of this event, Lacy was on federal supervision for cocaine trafficking. His supervision was revoked and he was ordered to serve 1 year in federal prison to run consecutively to the new federal sentence for a total of 8 years in prison.
At sentencing, Judge Peterson said Lacy’s conduct was dangerous and serious. He said drug trafficking is degrading to the community and possessing a gun while doing it amplifies the potential for violence. Judge Peterson noted that Lacy committed this crime while on federal supervision for a similar offense.
The charges against Lacy were the result of an investigation conducted by the Dane County Narcotics Task Force, Madison Police Department, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Steven P. Anderson prosecuted this case.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach involves collaboration by federal, state and local law enforcement agencies, prosecutors and communities to prevent and deter gun violence.
Local woman ordered to prison for aggravated identity theftRead the Press Release
HOUSTON – A 43-year-old Houston resident has been sent to prison following her conviction of using stolen personal information to obtain over $1,000, announced U.S. Attorney Jennifer B. Lowery.
Daneshia Shane Walton pleaded guilty Jan. 18.
Today, U.S. District Judge Andrew Hanen ordered Walton to serve 24 months in federal prison to be immediately followed by one year of supervised release. In handing down the sentence, the court noted Walton was still a young woman. He hoped the statement she made to the court prior to sentencing that she was no longer the same person who committed this crime was true.
At the time of her plea, Walton admitted that on July 5, 2013, she used a victim’s name, address and Social Security number to fraudulently obtain a Mastercard at a Marshalls department store located in Houston.
On that day, Walton then used the credit card to purchase two gift cards in the amount of $600 each.
Walton was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Secret Service conducted the investigation. Assistant U.S. Attorney John Braddock prosecuted the case.
Las Vegas Man Sentenced to Prison for COVID-19 Relief Fraud, Bank Fraud, and Money LaunderingRead the Press Release
LAS VEGAS – A Las Vegas man was sentenced today to 27 months in prison for perpetrating a scheme to defraud the Small Business Administration by fraudulently applying for an Economic Injury Disaster Loan (EIDL) of more than $100,000 using the name of his defunct business.
Kash King Fuller, aka Kenneth Calhoun Jr., 28, pleaded guilty in February 2022 to one count of wire fraud, two counts of bank fraud, and one count of money laundering. In addition to imprisonment, U.S. District Judge Jennifer A. Dorsey sentenced Fuller to three years of supervised release.
According to court documents, in March 2018, Fuller formed Generic Labor, LLC, a purported construction contracting company, which he later closed in 2019. In June 2020, Fuller fraudulently obtained $102,400 after submitting a falsified application for an EIDL in the name of his defunct company. Despite having legally changed his name to “Kash King Fuller,” he used his former name, “Kenneth Calhoun,” when identifying the owner of the company. After receiving the EIDL, Fuller attempted to conceal the scheme by depositing the funds into his personal bank account in a series of structured cash deposits intended to avoid bank reporting requirements. Fuller used the fraudulently obtained funds to pay for personal expenses, including financial trades and gambling.
Additionally, from January 2018 to November 2020, Fuller obtained credit cards, unsecured loans, and other lines of credit from banks. Upon obtaining the credit, Fuller made cash withdrawals and incurred other charges which he did not intend to pay. In total, he intended a loss of at least $56,560 in fraudulent credit charges.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.
This case was investigated by the FBI and Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Mina Chang prosecuted the case.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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