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Thursday 24 March 2022
South Side Man Sentenced to Prison for Role in DS44 Gang’s Drug ActivityRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 46 months’ imprisonment followed by a six-year term of supervised release on his conviction of violating federal drug laws, United States Attorney Cindy K. Chung announced today.
United States District Judge William S. Stickman imposed the sentence on Henry Johnson, age 31, formerly of the City’s South Side Flats neighborhood.
According to information presented to the court, the Greater Pittsburgh Safe Streets Task Force, led by the Federal Bureau of Investigation, initiated an investigation primarily targeting the Darccide/Smash 44, or DS44, neighborhood gang, and drug-trafficking activity in and around the South Side area of Pittsburgh. As part of these large-scale narcotics and firearms investigation, from approximately February 2019 through June 2019, the United States received authorization to intercept communications on nine telephones as part of the investigation, including the phone belonging to lead defendant Christopher Highsmith. During the investigation, the United States intercepted Henry Johnson over the tapped phone line of Christopher Highsmith.
Between March and April 2019, physical surveillance and intercepted communications revealed that Highsmith supplied Johnson with controlled substances for distribution. Additionally, on December 6, 2018, law enforcement responded to reports of drug trafficking at a hotel in West Homestead. Upon arrival, law enforcement observed the defendant throw two bags from his hotel balcony onto the parking lot. The bags contained 17 bricks of a fentanyl and heroin mixture, approximately 12 grams of cocaine base, and approximately six grams of cocaine. Some of the bricks bore the same stamp as other bricks seized in the investigation into the defendant’s co-conspirators. A search of the defendant incident to his arrest resulted in the seizure of $693.00 and a cellular phone. The phone contained texts indicative of drug trafficking.
Prior to imposing sentence, Judge Stickman stated “The Court cannot highlight enough the impact that the trafficking of these substances has upon our community.”
Assistant United States Attorney Brendan J. McKenna and Carolyn Bloch prosecuted this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Chung commended the agencies for the investigation leading to the successful prosecution of Johnson.
South African woman arrested at local airport for mailing controlled substances to Ohio inmatesRead the Press Release
COLUMBUS, Ohio – Federal agents arrested a South African woman this morning at John Glenn International Airport on federal charges alleging she mailed large amounts of K2 and Suboxone via mail into the United States. Inmates in Ohio jails were the end recipients of the packages.
Tanya Baird, 46, of South Africa, appeared in federal court at 3pm today.
According to an affidavit filed in support of a criminal complaint, Baird obtained K2 from China and saturated legal documents with the substance in South Africa before mailing the papers to the United States.
For example, in June 2021, Baird allegedly mailed at least eight packages each containing 30 pieces of saturated paper to an inmate in an Ohio prison.
It is alleged that another individual sometimes received packages from Baird containing legal privileged documents that were saturated in K2. The individual would then send the legal documents into Ohio Department of Rehabilitation and Correction facilities and collect proceeds from inmates. The proceeds were then allegedly sent to Baird via CashApp or PayPal.
In total, import records showed 69 packages being sent into the United States from June through August 2021, 34 of which were destined for the Southern District of Ohio. Multiple recipients of the packages from Baird had been in communication with or attended visits with current Ohio Department of Rehabilitation and Correction inmates.
“Today’s arrest would not have happened without the cooperation and professionalism of our law enforcement partners, especially with the FBI,” said DEA Acting Special Agent in Charge Kent Kleinschmidt. “Synthetic drugs are extremely dangerous because their use can lead to very erratic behavior and even death. They absolutely have no place in our society, but are especially problematic inside a correctional facility.”
Baird is charged with importing controlled substances, a federal crime punishable by up to 20 years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Kent Kleinschmidt, Acting Special Agent in Charge, Drug Enforcement Administration (DEA); J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and officials with the Ohio Department of Rehabilitation and Correction and U.S. Customs and Border Protection announced the charges. Assistant United States Attorney Michael J. Hunter is representing the United States in this case.
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Six Indicted in Northern New England Fentanyl Trafficking OperationRead the Press Release
BOSTON – Six individuals have been indicted by a federal grand jury in connection with a fentanyl trafficking operation that spanned across northern New England.
Randell Starlin Medina Rodriguez, 26, of Andover, Mass.; Williams Colon Sanchez, 26, or Lawrence, Mass.; Douglas Morris, 31, of Bangor, Maine; Robert Rodriguez Jr., 48, of Portland, Maine; and Cortney Moulton, 37, of West Bath, Maine, were charged with conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and 100 grams or more of p-Fluorofentanyl, a fentanyl analogue. Germania Amparo, 29, of Andover, Mass., was also charged with three counts of distribution and possession with intent to distribute fentanyl and six counts of distribution and possession with intent to distribute 40 grams or more of fentanyl. The defendants were arrested on Feb. 23, 2022.
According to court documents, beginning in mid-2021, the defendants conspired to deliver hundreds of grams of fentanyl throughout Massachusetts, New Hampshire and Maine. Specifically, Medina Rodriguez, Colon Sanchez and others allegedly served as Massachusetts-based dealers who delivered large quantities of fentanyl to wholesale customers such as Morris, Rodriguez Jr., and Moulton, who in turn would distribute those substances in Maine and/or New Hampshire. It is alleged that from March through July 2021, Amparo regularly delivered distribution-quantities of fentanyl to an undercover officer.
The charge of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and 100 grams or more of p-Fluorofentanyl, a fentanyl analogue, provides for a sentence of at least 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. The charge of distribution and possession with intent to distribute 40 grams or more of fentanyl provides for a sentence of no less than five years and up to 40 years in prison, at least four years of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division made the announcement. Assistant U.S. Attorneys Stephen Hassink and Lauren Graber of Rollins’ Narcotics & Money Laundering Unit are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Siskiyou Man Convicted of Bribery of a Public Official, Conspiracy to Commit Bribery, and Manufacturing More than 100 Marijuana PlantsRead the Press Release
On March 18, 2022, a federal jury convicted Chi Meng Yang, 36, of Montague, of bribery of a public official, conspiracy to commit bribery, and manufacturing more than 100 marijuana plants, U.S. Attorney Phillip A. Talbert announced.
According to evidence presented at trial, the charges arose from a four-month effort by Yang and Gaosheng Laitinen, Yang’s sister and co-defendant, to bribe Sheriff Jon Lopey, the elected sheriff of Siskiyou County, not to enforce a county ordinance banning outdoor marijuana grows.
On May 17, 2017, Yang met with Sheriff Lopey and offered a million-dollar donation to the charity of the sheriff’s choice in exchange for the sheriff’s “friendship” and help with a lobbying effort to legalize medical marijuana in Missouri. Yang, a Siskiyou County resident, also purported to represent a group of local cannabis farmers. Yang’s exact intentions were unclear, but Sheriff Lopey suspected that the mention of “friendship” implied some kind of improper law enforcement assistance. Sheriff Lopey called the FBI.
The FBI recorded the next meeting between Sheriff Lopey and Yang. In that meeting, Yang clarified that the donation could be paid to the Sheriff’s Office, or it could go to the sheriff himself—as Yang put it—“privately.” Yang added that he was growing marijuana on 10 plots of land, owned by members of his family, despite a Siskiyou County ordinance banning all outdoor grows. He offered the sheriff $5,000 per parcel for “protection,” with another $5,000 per parcel as a contribution to the sheriff’s re-election campaign. He offered to collect the money himself and to pay the sheriff in cash or a cashier’s check. Either way, he wanted it to be “private, discreet … anonymous.” He also made clear that what he wanted was “no enforcement” on the properties or the two water trucks that he used to water the grows.
Yang brought his sister, Gaosheng Laitinen, to the next meeting. Yang and Laitinen confirmed they wanted protection for their family’s marijuana grows. They offered to pay $1,000 per property up front, with the remaining $4,000 in protection fees and $5,000 in re-election money to be paid after the harvest, to guarantee the properties would not get raided before they could realize their profit.
In total, Yang met with Sheriff Lopey seven times. Together, Yang and Laitinen provided the sheriff with a list of eight properties that they wanted the sheriff not to raid. They paid $8,000—in envelopes of cash—as the initial protection payment for each of the eight properties. They also gave the sheriff cash bonuses totaling $2,500. The FBI caught all of these transactions on video.
Over time, Yang asked for favors outside the original protection scheme. He told the sheriff he wanted to add more marijuana plants to each property and to add greenhouses, which would allow him to grow throughout the year. He asked the sheriff to send his deputies to serve other growers with violation notices to get them to join the protection racket. At one point, Yang told Sheriff Lopey about a rival grower’s operation and suggested the sheriff “go out there and take care of it.” Yang also asked if the sheriff could influence other law enforcement agencies for Yang’s benefit. For example, Yang asked the sheriff if he could prevent the California Highway Patrol from enforcing the law against his water trucks, and he also asked for the sheriff’s help concerning a family member’s DUI arrest.
Eventually, FBI agents arrested Yang at a final meeting in Sheriff Lopey’s office on Aug. 31, 2017. Once Yang was in custody, the FBI gave a signal to eight teams of state and federal agents poised to search the eight “protected” properties. In total, agents eradicated 1,168 plants that were found on these eight properties.
This case is the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Bureau of Land Management, the Siskiyou Unified Major Investigations Team, the Shasta Interagency Narcotics Task Force, the North State Marijuana Investigation Team, and the Siskiyou County Sheriff’s Office. Assistant U.S. Attorneys James Conolly and Aaron Pennekamp are prosecuting the case. Assistant U.S. Attorneys Michael Beckwith, Kevin Khasigian, and Ross Pearson assisted in the prosecution.
A week before the trial was to begin, Gaosheng Laitinen pleaded guilty to conspiring to commit bribery and conspiracy to manufacture marijuana. She is scheduled to be sentenced on Aug. 23, 2022.
Yang is scheduled to be sentenced by U.S. District Judge John A. Mendez on June 28, 2022. Yang faces a maximum sentence of five years in prison and a $250,000 fine for conspiracy to commit bribery, up to 10 years in prison and a $250,000 fine for bribery of a public official, and a mandatory minimum sentence of five years and up to 40 years in prison and a $5 million fine for manufacturing more than 100 marijuana plants. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Sheldon Man Pleads Guilty to Illegal Possession of a FirearmRead the Press Release
Clinton Kreykes, 40, from Sheldon, Iowa, pleaded guilty on March 23, 2022, to possession of a firearm by a prohibited person.
At the plea hearing, Kreykes admitted that he was previously convicted of a felony offense, namely Burglary – 3rd degree, and was a methamphetamine user. Both prohibit a person from possessing a firearm. Evidence showed that on September 16, 2021, as part of Kreykes’ Iowa probation conditions, a compliance check was conducted at Kreykes’ camper in Sibley, Iowa. The probation officer located drug paraphernalia and Kreykes was arrested. A search warrant was then issued and executed on the camper when law enforcement located loose prescription pills, a small baggy of methamphetamine, a Mossberg 20-gauge shotgun, shotgun shells, and additional items related to drug use.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Kreykes remains in custody of the United States Marshal and will remain in custody pending sentencing. Kreykes faces a maximum sentence of 10 years’ imprisonment, a $250,000 fine, and up to three years of supervised release following any imprisonment.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case is being prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by Osceola County Sheriff’s Office and Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4078. Follow us on Twitter @USAO_NDIA.
Serial Armed Robber Sentenced to over 25 Years in Federal Prison for Violent Robberies of Local BusinessesRead the Press Release
INDIANAPOLIS – Irving Gomez, a/k/a John Mendez-Rodriquez, 29, of Indianapolis, was sentenced late yesterday to 303 months in federal prison after pleading guilty to committing three commercial robberies and brandishing a firearm during those crimes of violence.
According to court documents, on January 24, 2021, Gomez entered an O’Reilly’s Auto Parts store in Indianapolis, brandished a loaded rifle at the employees, and demanded money from the store’s safe and registers. After receiving the money, Gomez fled the business. The employees at the store recognized the robber as possibly being Irving Gomez, a former employee.
On February 6, 2021, Gomez entered a CVS in Indianapolis, brandished a rifle at an employee and demanded money from the cash register. Gomez hit the employee several times with the muzzle of the rifle when the employee did not immediately comply with his demands. The employee then opened the cash register drawer, and Gomez fled the store with the stolen money.
On March 1, 2021, Gomez returned to the same O’Reilly Auto Parts store in Indianapolis wearing the same clothing he wore during his previous robbery of the store. Gomez again brandished a rifle and demanded money from employees. During the robbery, an employee grabbed the rifle and pinned Gomez against a nearby wall, leading Gomez to lose control of the rifle. Gomez then grabbed a metal rod from the wall and struck the employee over the head multiple times. During the struggle Gomez brandished a pocketknife and attempted to stab the employee, but the employee was able to disarm Gomez. Gomez then threatened the employee by telling him that he would kill him and his family if he did not let him go. Officers from the Indianapolis Metropolitan Police Department arrived and took Gomez into custody.
Evidence was presented during the sentencing hearing that the defendant committed two additional robberies of CVS stores in the Indianapolis area on January 30 and February 20, 2021, and Gomez was ordered by the Court to pay restitution to those establishments.
“Mr. Gomez chose to engage in a series of violent attacks against innocent victims,” said U.S. Attorney Zachary A. Myers. “Along with our law enforcement partners, we will continue to concentrate our efforts on identifying and arresting those individuals that commit or threaten violence while engaging in this type of illegal activity. The serious sentence imposed today should send a message that violent offenders who disrupt the safety of our communities will be held accountable for their actions.”
“I would like to thank the IMPD officers, the Federal Bureau of Investigation, and the United States Attorney’s Office for getting Mr. Gomez off the streets of Indianapolis. A violent perpetrator is behind bars, and our community safer because of their due diligence and hard work,” said IMPD Chief Randal Taylor. “This case is just the latest example of the value our federal partners bring to fighting violent crime. May the affected families get the peace they deserve.”
The Indianapolis Metropolitan Police Department investigated the case. The Federal Bureau of Investigation provided valuable assistance. The sentence was imposed by U.S. District Judge James R. Sweeney II. As part of the sentence, Judge Sweeney II ordered that the defendant be supervised by the U.S. Probation Office for 5 years following his release from federal prison and was ordered to pay $4,325.00 in restitution, reflecting losses relating to five separate robberies.
U.S. Attorney Myers thanked Assistant U.S. Attorney Lawrence D. Hilton who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime.
San Marcos Man Charged with Austin Synagogue FireRead the Press Release
AUSTIN – Yesterday, a federal grand jury in Austin returned a three-count indictment charging Franklin Barrett Sechriest, 19, of San Marcos with crimes for the intentional fire set at a synagogue in Austin on October 31, 2021.
According to court records, Sechriest was seen on surveillance video carrying a five-gallon container and toilet paper toward the synagogue’s sanctuary. Moments later, multiple surveillance videos captured the distinct glow of a fire that appeared to come from the sanctuary. A security camera captured Sechriest jogging away from the direction of the sanctuary and fire towards the open driver’s side door of a vehicle.
During the search of Sechriest’s residence, agents found items similar to those seen on the surveillance videos, including similar clothing and a receipt for a five-gallon container similar to the one seen on video. Also found were various handwritten journals that contained statements related to the synagogue fire.
Sechriest has remained in federal custody since his arrest on November 12, 2021.
The indictment charges Sechriest with one count of Damage to Religious Property; one count of Use of Fire to Commit a Federal Crime; and one count of Arson. Sechriest faces a maximum 30 years in prison for the Damage to Religious Property count; a mandatory sentence of 10 years in prison to run consecutive to any other sentence on the Use of Fire count; and a maximum 20 years in prison for the Arson count.
Assistant United States Attorney Matthew Devlin and Trial Attorney Andrew Manns of the Department of Justice’s Civil Rights Division are prosecuting the case. The Federal Bureau of Investigation and Austin Fire Department are investigating the case.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
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Roswell man faces child pornography chargesRead the Press Release
ALBUQUERQUE, N.M. – Ricky L. Romero, 27, of Roswell, New Mexico, appeared in federal court on March 23 where he is charged with coercion and enticement of a minor and receiving child pornography. A federal grand jury indicted Romero on March 16.
According to the indictment and other court records, from March 4 to March 6, 2019, in Chaves County, New Mexico, Romero allegedly coerced a minor to produce child pornography and received videos and images of child pornography on his iPhone. Romero was a New Mexico State Police officer at the time the offenses were committed.
An indictment is only an allegation. A defendant is considered innocent unless and until proven guilty. If convicted, Romero faces a minimum of 10 years and up to life in prison.
The Roswell Resident Agency of the FBI’s Albuquerque Field Office investigated this case with assistance from the Chaves County Sheriff’s Office. Assistant United States Attorney Joni Autrey Stahl is prosecuting the case.
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Real Estate Consultant Pleads Guilty to Filing False Tax ReturnRead the Press Release
The district court accepted a Michigan man’s guilty plea today to filing a false individual income tax return with the IRS.
According to court documents, Steven A. Mills, formerly of East Lansing, was a real estate consultant who managed Mills Real Estate Consulting LLC. From 2012 to 2015, Mills Real Estate Consulting LLC received payments from third parties with whom Mills was conducting real estate transactions. Mills reported on his federal income tax returns only a portion of the payments he received. For example, on his 2014 federal income tax return, Mills did not report to the IRS approximately $356,100 in such payments made to Mills Real Estate Consulting LLC.
Mills is scheduled to be sentenced on June 14 and faces up to three years in prison for filing a false tax return. He also faces 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 Andrew B. Birge for the Western District of Michigan made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Kenneth Vert and Jeffrey McLellan of the Tax Division and Assistant U.S. Attorney Ron Stella for the Western District of Michigan are prosecuting the case.
Providence Woman Charged with Drug TraffickingRead the Press Release
A Providence woman was arrested and detained in federal custody after allegedly emerging onto her front porch to retrieve a UPS package shipped from California with more than two kilograms of fentanyl inside; she was also allegedly found to have more than a kilo of fentanyl and other indicia of drug trafficking stored in her bedroom closet.
Rosangeles Bueno, 40, is charged by way of a federal criminal complaint with conspiracy to distribute and possession with intent to distribute 400 grams or more of fentanyl; possession with intent to distribute 400 grams or more of fentanyl; and unlawful use of a communication facility (including the mails) to facilitate the distribution of a controlled substance.
It is alleged in charging documents that, on March 16, 2022, a Homeland Security Investigations (HSI) agent was made aware by UPS security of a suspicious package addressed to a Providence residence with an addressee name that appeared to be fictious. UPS reported that, since January, six packages with similar characteristics had been shipped to the same address. All six packages were addressed to individuals not associated with the residence.
According to charging documents, the package was opened by UPS security and found to contain a brick-like object stashed inside a speaker. A Warwick Police Department K9 examined the package and alerted to the presence of narcotics. The package was removed to HSI offices and was found to contain 2.33 kilograms of fentanyl.
On March 21, 2022, after agents removed the fentanyl from the package and replaced it with a substance similar in appearance to fentanyl, a HSI agent, posing as a UPS employee, delivered the package to the front porch of Bueno’s residence. A surveillance team allegedly observed Bueno exit the residence, check the surrounding area in an apparent effort to determine if law enforcement was present, then retrieve and carry the package to the rear of the building.
HSI task force officers executed a court-authorized search of the Bueno’s residence and located the package inside an abandoned vehicle at the rear of the building. Inside the residence, agents encountered Bueno, three juvenile children, a Certified Nursing Assistant, and another adult. From within Bueno’s bedroom, agents allegedly recovered approximately 1,180.61 grams of suspected fentanyl; 61.23 grams of cocaine; 11.15 grams of butyryl fentanyl; cutting agents; two hydraulic kilo presses; and numerous items used in the preparation and distribution of drugs.
Bueno made an initial appearance on Tuesday before U.S. District Court Magistrate Judge Patricia A. Sullivan and was ordered held in federal custody until a preliminary hearing scheduled to be held on Friday.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney Denise M. Barton.
The matter was investigated by Homeland Security Investigations, with the assistance of the DEA, Warwick Police Department, Newport Police Department, Central Falls Police Department, and Providence Police Department.
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Providence Man Pleads Guilty in Fraudulent Checks, Bank Fraud SchemeRead the Press Release
PROVIDENCE, R.I. – A Providence man who participated in a scheme to use stolen banking information to create fraudulent business checks and obtain hundreds of thousands of dollars in bank proceeds today pleaded guilty in federal court to conspiracy and bank fraud charges, announced United States Attorney Zachary A. Cunha.
Terrence Richardson, 30, pleaded guilty to conspiracy to commit bank fraud and twelve counts of bank fraud.
Appearing in U.S. District Court in Providence, Richardson admitted that, beginning in as early as April 2020, he conspired with others to create and deposit counterfeit checks drawn on the accounts of actual businesses. The counterfeit checks were typically deposited into the accounts of individuals, many of whom were solicited through Facebook, in exchange for a cash payment. Soon after the counterfeit checks were deposited the funds were rapidly withdrawn.
According to information presented to the court, numerous fraudulent checks created by members of the conspiracy were deposited and the funds were quickly withdrawn before the checks were deemed counterfeit. Some of the checks deposited were deemed fraudulent before any money was withdrawn. According to charging documents, Richardson executed schemes to deposit and withdraw funds represented by numerous counterfeit checks for between $2,824 and $60,322.
Richardson is scheduled to be sentenced by U.S. District Court Chief Judge John J. McConnell, Jr., on June 21, 2022.
The case is being prosecuted by Assistant U.S. Attorney Ly T. Chin.
The matter was investigated by the United States Postal Inspection Service, with the assistance of the FBI, United States Secret Service, Rhode Island State Police, and the Providence and Bethel CT, Police Departments.
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Previously Convicted Sex Offender Sentenced to 130 Months in Federal Prison for Possession of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Roy Edward Gibbs, age 66, of Frederick, Maryland to 130 months in federal prison, followed by 25 years of supervised release, for possession of child pornography. Judge Hollander also ordered that, upon his release from prison, Gibbs must continue to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James Mancuso of Homeland Security Investigations (HSI) Baltimore; Frederick County Sheriff Charles A. “Chuck” Jenkins; and Frederick County State’s Attorney J. Charles Smith.
According to his plea agreement, in July 2006, Gibbs was convicted in Montgomery County Circuit Court on four counts involving the sexual abuse of two prepubescent girls.
After serving his sentence for the sexual abuse convictions, Gibbs began downloading and distributing images and videos of child pornography using a peer-to-peer file-sharing software. Between August 2019 and November 2019, Gibbs repeatedly distributed child pornography to undercover law enforcement officers over a file-sharing network.
For example, in August 2019, a detective from the Frederick County Sheriff's Office determined that a device using an IP address associated with Gibbs's residence made 19 different files containing child pornography available for download. The detective was also able to establish a direct connection to Gibbs's tablet IP address and download seven packages of files containing child pornography, including prepubescent minor girls. Between November 4 and November 14, 2019, an FBI Special Agent in Dallas also downloaded a number of images depicting child pornography made available by Gibbs on the same file-sharing network.
As detailed in the plea agreement, on November 15, 2019, law enforcement agents executed a series of federal search warrants on Gibbs's residence and vehicles. Forensic examination of several electronic devices, including Gibbs’s tablet and its 32 MicroSD card, revealed at least 568 images of child pornography. Additionally, at least 45 images examined during the forensic review were identical to images downloaded by investigators over the file-sharing network after making direct connections to Gibbs's tablet. The forensic review of Gibbs’s tablet also revealed data shredding/deletion applications used by Gibbs to attempt to hide evidence of his distribution and possession of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Erek L. Barron commended HSI Baltimore, the Frederick County Sheriff’s Office, and the Frederick County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Barron thanked Assistant U.S. Attorney Paul A. Riley and Special Assistant U.S. Attorney Joyce R. King, Chief Counsel of the Frederick County State’s Attorney’s Office cross-designated to handle this case, who prosecuted the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Previously Convicted Baltimore Bank Robber Sentenced to 70 Months in Federal Prison for Committing Two Bank Robberies at the Same Bank Within One WeekRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Lloyd Phillip Simon, age 71, of Baltimore, Maryland to 70 months in federal prison, followed by five years of supervised release, for two 2019 bank robberies. Judge Blake also ordered Simon to pay restitution in the amount of $2,034.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his guilty plea, on August 13, 2019, Simon entered a building in Baltimore, Maryland that had a bank located in the atrium area of the building. As Simon approached the bank, he reached into a donation bin located in the atrium and took one of the donations placed there—a black backpack. Simon placed his black jacket and the backpack on a bench outside the bank. Simon then entered the bank, approached Bank Teller 1, who was in the process of counting money from the bank’s night drop, and demanded money, stating, “Give me that money. I have a gun. No dye packs.” Fearing for her safety, Bank Teller 1 gave Simon all of the money that she had been counting. Simon immediately left the bank, grabbing the black jacket and backpack. As he quickly walked away, Simon put the black jacket on to cover his white shirt. As Simon exited the facility, he took off his hat and glasses, allowing surveillance cameras to capture his face.
On August 19, 2019 Simon robbed the same bank. A video surveillance camera captured Simon entering the facility, wearing large glasses and a baseball cap to partially obscure his face. Simon went through a back corridor and did not immediately enter the bank. Instead, Simon sat on a bench outside of the bank and waited until the bank security guard left for a break. Simon then put on his glasses and entered the bank. Bank Teller 1 immediately recognized Simon from the previous robbery. She told Simon to wait in line, and then went to press the panic button. Simon approached Bank Teller 2, and stated “Give me all of your money, I want the big stuff!” Fearing for her safety, Bank Teller 2 gave him money, and Simon stated, “Hurry up, I’m not joking!” Bank Teller 2 then gave Simon more money and slipped a hidden GPS tracking device into a wad of cash. As Simon left the bank, he can be seen on surveillance video fanning through the money that he took from Bank Teller 2. Simon found the hidden GPS tracking device, removed it from the wad of cash and dropped the tracker on the floor of the bank as he left.
On August 28, 2019, investigators obtained and executed a search warrant at Simon’s apartment. Law enforcement recovered clothes that matched the clothing worn by Simon during the robberies, as well as a black backpack similar to the backpack Simon took from the donation bin. In addition, investigators recovered a single round of .357 ammunition in Simon’s kitchen cabinet.
On January 29, 2013, Simon was sentenced to 78 months in federal prison, after being convicted of bank robbery.
United States Attorney Erek L. Barron commended the FBI and the Baltimore Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Christine Duey and Mary W. Setzer, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Physician Sentenced to Prison for Health Care Fraud SchemeRead the Press Release
A Florida physician was sentenced today in the Southern District of Florida to two years in prison for a health care and wire fraud scheme involving the submission of false and fraudulent claims to both Medicare and a financial services company that offered consumer loans to patients for out-of-pocket medical expenses.
According to court filings and evidence presented during court proceedings, Mark Alan Zager, 72, of Miami, conspired with Dennis Nobbe, a now-deceased chiropractor and owner of Dynamic Medical Services, located in Hialeah, Florida, to defraud Medicare, individual patients, and a financial services company. Zager opened a merchant account in his own name and allowed Nobbe to use the account in exchange for paying kickbacks and bribes to Zager. Through the account, Nobbe routinely applied for loans on patients’ behalf, purportedly for services that would be rendered months in the future but were not provided.
According to court filings and evidence presented during court proceedings, from November 2019 through July 2020, Zager and Nobbe submitted more than $193,000 in false and fraudulent loan applications to a financial services company, resulting in that company paying out approximately $165,000. Additionally, Zager allowed Nobbe to submit claims to Medicare through Zager’s National Provider Number in exchange for kickbacks and bribes. Between December 2019 and July 2020, Zager and Nobbe submitted approximately $19,000 in false and fraudulent claims to Medicare.
Zager pleaded guilty on June 1, 2021 to one count of conspiracy to commit wire fraud and one count of health care fraud. Nobbe was charged with several federal crimes by criminal complaint on July 23, 2020, but he passed away on September 14, 2020, after which the complaint was dismissed, and he accordingly remains presumed innocent.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Special Agent in Charge George L. Piro of the FBI’s Miami Field Office; and Special Agent in Charge Omar Pérez Aybar of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) made the announcement.
The FBI’s Miami Field Office and HHS-OIG investigated the case.
Trial Attorney Patrick J. Queenan of the Criminal Division’s Fraud Section prosecuted the case. Assistant U.S. Attorney Sara Michele Klco forthe Southern District of Florida is handling the asset forfeiture aspects of this matter. The case was previously handled by Trial Attorney Sara M. Clingan of the Fraud Section.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who collectively have billed the Medicare program for more than $19 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.
Phoenix Man Sentenced to 10 Years for Selling Fentanyl that Led to Woman's DeathRead the Press Release
PHOENIX, Ariz. – Reyes Luis Holguin, 29, of Phoenix, Arizona, agreed this week to pay $6,103 in restitution to the family of a young mother whose life was taken by fentanyl she bought from Holguin in August 2019. In December 2021, U.S. District Judge Susan M. Brnovich sentenced Holguin to 10 years in prison, followed by five years of supervised release. Holguin previously pleaded guilty to Distribution of Fentanyl for selling the pills that led to the young woman’s death.
The victim communicated with Holguin via an online messaging application about the purchase of three “blues,” a common street term for fake prescription oxycodone pills that contain fentanyl. After consuming the pills, the victim overdosed and died. The victim was discovered the next morning by her mother. Holguin also sold 67 fentanyl pills to law enforcement and negotiated the future sale of an additional 100. At the time of his arrest, Holguin had a loaded firearm, more fake pills, and $2,285 in cash.
“These dangerous pills are flooding Arizona communities, and studies show that 40% contain a potentially lethal dose of fentanyl,” said U.S. Attorney Gary Restaino. “This sentence should serve as a warning message to sellers, and as a reminder of the need for compassion and creative solutions in protecting Arizonans from these pills. We are grateful to our partners at DEA and Phoenix PD for their vigilance in fentanyl investigations and prosecutions.”
The U.S. Drug Enforcement Administration and the Phoenix Police Department conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-19-01077-PHX-SMB
RELEASE NUMBER: 2022-031_Holguin# # #
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.Oxnard Man Charged in Federal Indictment Alleging He Illegally Imported Thousands of Endangered Reptiles into United StatesRead the Press Release
LOS ANGELES – A Ventura County man was charged today in a superseding indictment that alleges he illegally imported into the United States more than 1,700 reptiles – including 60 reptiles found hidden in his clothes last month at the United States-Mexico border.
Jose Manuel Perez, a.k.a. “Julio Rodriguez,” 30, of Oxnard, is charged with one count of conspiracy, nine counts of smuggling goods into the United States and two counts of wildlife trafficking. He is expected to be arraigned on March 28 in United States District Court in Los Angeles.
His sister, Stephany Perez, 25, also of Oxnard, is also charged in the indictment with conspiracy and will be directed to appear for an arraignment in the coming weeks.
The superseding indictment returned today adds allegations to an indictment originally filed on February 24. The new allegations include 14 overt acts in the conspiracy charge, including some accusing Jose Perez of crossing into the U.S. from Mexico by car at the San Ysidro Port of Entry on February 25 with approximately 60 reptiles – including dozens of lizards and four snakes – concealed inside his jacket pockets, pants pockets, groin area, and pant legs. After initially denying to customs officials that he had anything to declare, Perez later told them that “the animals were his pets,” the indictment alleges.
According to the indictment, from January 2016 to February 2022, the Perez siblings and their co-conspirators used social media to buy and to negotiate the terms of the sale and delivery of wildlife in the United States. The defendants allegedly advertised for sale on social media the animals smuggled from Mexico into the United States, posting photos and video that depicted the animals being collected from the wild.
The animals – which included Yucatan box turtles, Mexican box turtles, baby crocodiles and Mexican beaded lizards – allegedly were imported into the United States from Mexico and Hong Kong without obtaining permits required by an international treaty known as the Convention on the International Trade of Endangered Species of Wild Fauna and Flora (CITES).
For the animals allegedly smuggled from Mexico, co-conspirators would retrieve the wildlife from Cuidad Juarez International Airport in Mexico and eventually ship the animals by car to El Paso, Texas. Jose Perez paid his co-conspirators a “crossing fee” for each border crossing – the amount of which depended on the number of animals transported, the size of the package, and the risk of being detected by the authorities.
On other occasions, Jose Perez and a co-conspirator traveled to Mexico to purchase additional live animals that had been taken from the wild so that the animals could be smuggled into the United States, according to the indictment.
Once the animals had been shipped to the United States, they allegedly were transported to Perez’s then-residence in Missouri. But after he moved to California, the wildlife was shipped to his residence in Ventura County.
Stephany Perez allegedly assisted in the illegal wildlife smuggling business, particularly during two extended periods when her brother was incarcerated in the United States.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of all charges, the defendants would face a statutory maximum sentence of five years in federal prison for the conspiracy charge. Jose Perez would face a statutory maximum sentence of 20 years in prison for each smuggling count and five years in prison for each wildlife trafficking count. Jose Perez has been in federal custody since his arrest on February 25.
United States Fish and Wildlife Service investigated this matter. The United States Attorney’s Office for the Southern District of California, U.S. Customs and Border Protection, and Homeland Security Investigations provided substantial assistance.
Assistant United States Attorneys Matthew W. O’Brien and Brian R. Faerstein of the Environmental and Community Safety Crimes Section and Trial Attorney Gary Donner of the Environmental Crimes Section of the Justice Department’s Criminal Division are prosecuting this case.
Orange County Man Sentenced to Federal Prison for Child Pornography ViolationsRead the Press Release
BEAUMONT, Texas – An Orange, Texas man has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Joshua Welch, 50, pleaded guilty on Sep. 20, 2021, to production of child pornography and was sentenced to 240 months in federal prison today by U.S. District Judge Marcia A. Crone.
“Those who choose to harm a child will quickly find themselves the number one target of law enforcement,” said U.S. Attorney Brit Featherston. “No stone will be left un-turned to stop child predators. Our law enforcement partners are dedicated to protecting our most precious population. Thank you to those men and women who work tirelessly to make our community playgrounds and our virtual playgrounds a safe place for all children.”
According to information presented in court, in April 2021, federal agents in Beaumont received information from federal agents in Syracuse, NY, regarding an internet user who had uploaded images containing child pornography and sent them to another user. An investigation had determined the initial sender of the material was in Orange, Texas. On May 17, 2021, federal agents issued a search warrant at the residence in Orange and encountered Welch. Welch admitted to producing the child pornography images and downloading. He also admitted to visiting other internet websites to view images of child pornography. Welch was indicted by a federal grand jury on June 2, 2021.
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the 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.justice.gov/psc.
This case was investigated by Homeland Security Investigations and the Orange County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Rachel Grove.
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Operators of Key West Labor Staffing Company Plead Guilty to Tax Conspiracy and Immigration ChargesRead the Press Release
The operators of a Key West, Florida, labor staffing company, Phoenix ADB Services Inc., pleaded guilty today to tax and immigration crimes related to the operation of their business.
Former City of Key West Police Officer Igor Kasyanenko and Roman Riabov both pleaded guilty to one count of conspiring to defraud the United States and harbor aliens and induce them to remain in the United States. Mikus Berzins and Andrejs Kozlovs both pleaded guilty to one count of knowingly hiring 10 or more aliens who were not authorized to work in the United States.
According to court documents, from approximately 2014 to 2020 Berzins, Kasyanenko and Riabov owned and operated Phoenix ADB Services Inc. Kozlovs worked for the company from approximately 2016 to 2020. As part of their respective guilty pleas, all four men admitted to facilitating the employment of individuals in hotels, bars and restaurants in Key West and other locations, even though the employees were not authorized to work in the United States. In addition, all four men admitted they paid the workers without withholding Social Security, Medicare and income taxes from their wages, and then did not report those wages to the IRS. Kasyanenko and Riabov also admitted they encouraged workers to enter the United States and remain in the country, in violation of immigration laws.
All four defendants are scheduled to be sentenced on May 27. Kasyanenko and Riabov face a maximum penalty of five years in prison, a period of supervised release, restitution and monetary penalties. Berzins and Kozlovs face a maximum penalty of five years in prison, a period of supervised release and monetary penalties.
A federal district court judge will determine each defendant’s 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 Juan Antonio Gonzalez for the Southern District of Florida made the announcement.
U.S. Department of Homeland Security, Homeland Security Investigations, and IRS-Criminal Investigation are investigating the case.
Senior Litigation Counsel Sean Beaty and Trial Attorneys Jessica A. Kraft and Nicholas J. Schilling Jr. of the Tax Division and Assistant U.S. Attorney Chris Clark for the Southern District of Florida are prosecuting the case.
Omaha Woman Sentenced in Methamphetamine Distribution ConspiracyRead the Press Release
United States Attorney Jan Sharp announced Carla Colliers, 46, of Omaha, Nebraska, was sentenced today in federal court in Omaha for conspiracy to distribute and possession with intent to distribute methamphetamine. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Colliers to imprisonment for 186 months. There is no parole in the federal system. After her release from prison, she will begin a 10-year term of supervised release.
On September 9, 2020, Colliers sold one ounce of methamphetamine to a confidential source and on September 22, 2020, she sold two ounces of methamphetamine to a confidential source. On September 24, 2020, law enforcement searched Colliers’s downtown Omaha hotel room where they recovered numerous controlled substances including 599 grams of actual methamphetamine, 26 grams of psilocybin brownies, and 50 grams of crack cocaine. On November 12, 2020, law enforcement obtained a search warrant for Colliers’s residence located on Manderson Street in Omaha. Officers recovered 118 grams of methamphetamine and 20 grams heroin, and a large amount of currency.
Codefendant James Finley is currently scheduled for jury trial on April 19, 2022.
This case was investigated primarily by the Omaha Police Department.
North Texas Couple Sentenced to Federal Prison for Defrauding HomeownersRead the Press Release
SHERMAN, Texas – A Kaufman County man and his girlfriend have been sentenced to federal prison for fraud violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Tommy Ray Williams, 44, of Terrell, pleaded guilty on August 10, 2021, to conspiracy to commit wire fraud and was sentenced to 180 months in federal prison by U.S. District Judge Amos Mazzant on March 23, 2022. Whitney Jane Law, 33, of Point, Texas, pleaded guilty to a misprision of felony for her role in the scheme and was sentenced to 18 months in federal prison today by Judge Mazzant.
Williams and Law were also ordered to pay restitution jointly and severally in the amount of $820,900.00 to their victims, several of whom are elderly.
“The elderly are often the target of fraud and contractor fraud is a common avenue to take advantage of our greatest generation,” said U.S. Attorney Brit Featherston. “This is where old fashioned values come into play, watching out for our neighbors who, just maybe, are being taken advantage of. Before hiring someone to do work around your home, check out their business reputation. The FBI and United States Attorney's Office will continue to aggressively investigate and prosecute those unethical and immoral persons that have the audacity, through fraud schemes, to take advantage of vulnerable victims, residents of our community, and the elderly.”\
“The defendants are scammers that took more than money, they stole their victim’s sense of home. Their schemes demanded payment, destroyed property and left behind worry and regret,” said Dallas FBI Special Agent in Charge Matthew J. DeSarno. “We are confident that this investigation had a significant impact for our community, and we will continue to work with our partners to seek justice for victims of fraud.”
According to information presented in court, Williams was involved in a conspiracy in which the conspirators would receive remodel referrals from a third-party company and then contact the homeowner and arrange for a site inspection. Williams, alone or with others, would travel to the homeowner’s residence, discuss the types of remodeling work required, and provide a bid for services. On occasion Williams would have an associate of his do the preliminary site inspection and bid. Williams would require a large amount of money before the work began and often would require more funds immediately after the work began, blaming this on costs such as materials that had to be purchased. Williams would require that the homeowners write out checks payable to him, an associate, or to one of the business entities that they used. After the homeowner made their initial payments, individuals would appear at the house and begin demolition work, often destroying key parts of the home such as plumbing, flooring, sheetrock, walls, and roofing, and would sometimes begin installation or construction work. Soon after the work began, however, the work crews would stop coming to the residence and the renovation work would be left undone. The homeowners would try to contact Williams, who would sometimes respond but eventually stopped responding, and did not return their funds. Over the course of the scheme, more than 15 homeowners and a credit card processing company were defrauded of over $800,000. Law was charged in an information with misprision of a felony. The information alleges that she had actual knowledge of a commission of the felony, failed to notify authorities, and took at least one step to conceal the crime.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. 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 10am-6pm Eastern Time, Monday-Friday. English, Spanish, and other languages are available.
This case was investigated by the FBI Dallas, Frisco Resident Agency and prosecuted by the U.S. Attorney’s Office for the Eastern District of Texas.
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New Orleans Woman Pleads Guilty to Conspiring to Stage Automobile Accident in Order to Defraud Insurance and Trucking CompaniesRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced today that on March 23, 2022 ISHAIS PRICE (“PRICE”), age 41, of New Orleans, Louisiana, entered a plea of guilty today to Conspiracy to Commit Mail Fraud, in violation of Title 18, United States Code, Section 371, before United States District Court Judge Sarah S. Vance, arising out of a staged automobile accident with a tractor-trailer occurring in New Orleans.
According to today’s guilty plea, PRICE, along with her co-defendants, Doniesha Gibson (Gibson), of New Orleans, Louisiana; and Chandrika Brown (Brown), of Harvey, and a co-defendant driver conspired to commit mail fraud in connection with a staged accident with a co-defendant driver. Today’s guilty plea brings the total number of defendants convicted in “Operation Sideswipe” to thirty-two (32).
PRICE claimed that on October 15, 2015, she was a passenger in a 2014 Dodge Avenger owned and driven by Gibson that was hit by a Hotard bus while traveling on the I-10 near the flyover of the I-510. Also in the vehicle was defendant Brown. In truth, a co-defendant asked Gibson to recruit Brown and PRICE to ride along as a passenger and he then intentionally sought out a commercial vehicle to intentionally hit. After the staged accident, the co-defendant driver switched seats with Gibson, and they called the N.O.P.D. Gibson, along with the passengers, falsely stated that the Hotard bus illegally changed lanes and caused the accident. Thereafter, Brown, Gibson, PRICE, and the co-defendant driver each retained counsel and made demands against Hotard’s owner and insurer for personal injury damages. As a result of the claims, the insurer utilized the U.S. mails to send the settlement drafts to Brown, Gibson, PRICE, and the co-defendant driver’s counsel. The total settlement for the Hotard bus accident was approximately $677,500.
PRICE faces a maximum sentence of five (5) years of incarceration. Upon release from prison, PRICE also faces a term of supervised release of up to (3) three years, and/or a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to any person under Title 18, United States Code, Section 3571, and a mandatory $100 special assessment fee. Sentencing in this matter is scheduled for June 14, 2022, before United States District Judge Sarah S. Vance.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Federal Bureau of Investigation, Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit; Assistant U.S. Attorney Edward J. Rivera; Assistant U.S. Attorney Maria Carboni; and Assistant U.S. Attorney Brandon Long.
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Nevada Man Admits Money Laundering and Tax Offenses Related to BitClub Network Fraud SchemeRead the Press Release
NEWARK, N.J. – A Nevada man today admitted his role in laundering funds solicited for BitClub Network, a $722 million fraudulent cryptocurrency scheme, U.S. Attorney Philip R. Sellinger announced.
Gordon Brad Beckstead, 57, of Henderson, Nevada, pleaded guilty by videoconference before U.S. District Judge Claire C. Cecchi to an information charging him with one count of conspiracy to commit money laundering and one count of aiding in the preparation of a false tax return.
According to documents filed in this case and statements made in court:
From April 2014 through December 2019, the BitClub Network was a fraudulent scheme that solicited money from investors in exchange for shares of purported cryptocurrency mining pools and rewarded investors for recruiting new investors into the scheme. Matthew Brent Goettsche, BitClub Network’s creator and operator, and Silviu Catalin Balaci, Russ Albert Medlin, Jobadiah Sinclair Weeks, and Joseph Frank Abel, were charged by indictment in December 2019 in connection with the BitClub Network scheme.
Beckstead, a BitClub Network investor, admitted conspiring with Goettsche and others to launder funds earned by Goettsche through his operation of the BitClub Network. At the direction of Goettsche, Beckstead created and controlled various entities that were used by Beckstead, Goettsche, and others to shield Goettsche’s association with the BitClub Network and to disguise income derived by Goettsche through his operation of the BitClub Network.
Beckstead further admitted to controlling bank accounts associated with the entities and directing transfers to and from the accounts exceeding $50 million. Beckstead acknowledged that the transfers were designed to conceal the source of Goettsche’s income, disguise Goettsche’s ownership of certain property and assets paid for with BitClub Network proceeds, and to help Goettsche evade tax reporting requirements. Beckstead also admitted that he and others provided false and misleading information to financial institutions to conceal the source of Goettsche’s income.
Beckstead, a former CPA, also admitted to aiding at least two different tax preparers in the preparation of Goettsche’s false 2017 and 2018 federal tax returns. Beckstead provided the tax preparers with documents and records to assist in the preparation of the returns. Beckstead admitted that he and Goettsche knew the 2017 and 2018 tax returns were fraudulent in that they failed to report more than $60 million in total income earned by Goettsche through his operation of the BitClub Network. This allowed Goettsche to avoid paying more than $20 million in federal income taxes.
The money laundering conspiracy charge to which Beckstead pleaded guilty carries a maximum penalty of 20 years in prison and a fine of $500,000, or twice the value of the property involved in the transaction, whichever is greater. The tax charge to which Beckstead pleaded guilty carries a maximum penalty of three years in prison and a fine of $100,000. Sentencing is scheduled for Aug. 9, 2022.
U.S. Attorney Sellinger credited special agents and task force officers of the FBI Los Angeles Division’s West Covina Resident Agency, under the direction of Assistant Director in Charge Kristi K. Johnson; and special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark, who conducted this investigation under the initiative of the Joint Chiefs of Global Tax Enforcement, with the investigation leading to today’s guilty plea.
Anyone who believes they may be a victim of the BitClub Network may visit www.justice.gov/usao-nj/bitclub. Victims can find more information about the case, including a questionnaire for victims to fill out and submit.
The government is represented by Assistant U.S. Attorneys Anthony P. Torntore and Jamie L. Hoxie of the Cybercrime Unit, and Unit Chief Sarah Devlin and Assistant U.S. Attorney Joseph Minish of the Asset Recovery and Money Laundering Unit, of the U.S. Attorney’s Office in Newark.
Navajo man sentenced to 14 years in federal prison for sexual abuse of a minor in Indian CountryRead the Press Release
ALBUQERQUE, N.M. – Bryan Bull, 40, of Shiprock, New Mexico, and an enrolled member of the Navajo Nation, was sentenced on March 15 in federal court to 14 years in prison for aggravated sexual abuse of a minor in Indian Country.
Bull pleaded guilty on Aug. 30, 2021. According to the plea agreement and other court records, on June 3, 2019, Bull and Jeremiah Elijah Jim, 32, of Teec Nos Pos, Arizona, and an enrolled member of the Navajo Nation, used intimidation and force on then 14-year-old John Doe and sexually abused him. The abuse took place in Shiprock on the Navajo Nation.
Upon his release from prison, Bull will be subject to five years of supervised release and must register as a sex offender.
Jim pleaded guilty to sexual abuse of a minor and was sentenced on Oct. 27, 2021, to 24 years in prison and must register as a sex offender.
The Farmington Resident Agency of the FBI’s Albuquerque Field Office investigated this case with assistance from the Navajo Nation Police Department.
Narcotics Investigation Leads to the Indictment of Six Involved in A Poly-Drug Distribution NetworkRead the Press Release
CHARLOTTE, N.C. – A drug investigation led by the Western District’s Organized Crime Drug Enforcement Task Force (OCDETF) has resulted in the indictment of six members of a poly-drug trafficking organization (DTO), announced United States Attorney Dena J. King.
Brian Mein, Acting Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Johnny Jennings, of the Charlotte-Mecklenburg Police Department (CMPD), join U.S. Attorney King in making today’s announcement.
The indictment was returned on March 16, 2022, and was unsealed today after ATF and DEA agents and CMPD officers arrested five of the six men during an early morning round-up. The defendants named in the indictment are:
- Laricco Eugene Sherrill, Jr., 23, of Charlotte (arrested)
- Brian Clinton, 23, of Charlotte (arrested)
- Jakieran Harris, 22, of Charlotte (arrested)
- Sadarian Armstrong, 40, of Charlotte (arrested)
- Quentin Nathaniel Stowe, 27, of Charlotte (arrested)
- Marquez Maxwell, 22, of Charlotte (not arrested).
According to allegations contained in the indictment, beginning as early as January 2020, the DTO distributed fentanyl, methamphetamine, cocaine, cocaine base, and marijuana in Mecklenburg County and elsewhere. Over the course of the investigation law enforcement seized narcotics, firearms, ammunition, and over $63,650 in cash that is believed to be drug proceeds.
Each defendant is charged with conspiracy to distribute and to possess with intent to distribute narcotics and related drug offenses.
The charges contained in the indictment are allegations. The defendants are presumed innocent until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement U.S. Attorney King credited the ATF and CMPD’s OCDETF investigation which led to the indictment and thanked the DEA for their invaluable assistance in effectuating the arrests. OCDETF identifies, disrupts, and dismantles criminal organizations 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 United States Attorney Taylor G. Stout, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
Missouri Man Receives 35-year Federal Sentence for Attempted Sexual Exploitation of a MinorRead the Press Release
BENTON, Ill. – Jason Dominik Tyler Rodriquez, 38, of East Prairie, Missouri, was sentenced to a
total of 420 months in prison on Wednesday, March 23, 2022, after a federal jury found him guilty
in November of 2021 of trying to have sex with an 8-year-old girl and transporting child
pornography.According to court documents and evidence presented at trial, Rodriguez, formerly known as Jason
Tyler Smith, chatted online for four days on an online dating application and had a telephone
conversation with what he thought was a father willing to allow strangers to have sex with his
8-year-old daughter for $150. The purported father was actually an FBI agent. During the
conversations, Rodriguez indicated his interest in traveling to Marion, Illinois, from St.
Louis, Missouri, to meet the father and the purported victim and engage in sexual acts with her. On
March 26, 2020, Rodriguez left St. Louis, Missouri, where he was employed as a nurse, and arrived
at a business in Marion, Illinois. Law enforcement agents promptly arrested Rodriguez. After his
arrest, agents found $150 in cash on Rodriguez and an unopened bag of candy in his automobile.
Rodriguez had previously been told the 8-year-old would expect candy before having sex with him.
After his arrest, the agents also discovered Rodriguez had a cellphone in his possession with over
20,000 videos and pictures of child pornography.“Federal law enforcement conducts these sting operations so that would-be child molesters are
aggressively prosecuted after they take affirmative steps to abuse a child, but before they can do
immeasurable damage,” said United States Attorney Steven D. Weinhoeft.This case was brought as part of Project Safe Childhood, a nationwide initiative launched in
2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and
abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation
and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to
locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and
rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
For more information about internet safety education, please visit www.usdoj.gov/psc and click on
the tab “resources.”The Investigation was conducted by the Federal Bureau of Investigation - Springfield Division, and the United States Marshals Service.
Mississippi Man Sentenced for Violation of the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced today that on Wednesday, March 23, 2022 TRAVIS LEON MOORE, age 39, was sentenced in the United States District Court after pleading guilty to a one count indictment charging him with being a felon in possession of a firearm in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
MOORE was arrested by the Washington Parish Sheriff’s Office deputies after they were notified that he had threatened two individuals with a sawed-off shotgun. The notification stemmed from a domestic dispute that involved MOORE’s partner and her family member. Authorities retrieved the firearm after MOORE discarded the weapon out of a window. After his arrest, MOORE admitted that he possessed the firearm.
United States District Court Judge Ivan L.R. Lemelle imposed a sentence of 100 months in the federal Bureau of Prisons. Following his term of imprisonment, MOORE will be placed on supervised release for a period of 3 years. MOORE must pay a mandatory special assessment fee of $100.00. The court did not impose a fine.
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.
U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Washington Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Brittany L. Reed is in charge of the prosecution.
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Minneapolis Woman Pleads Guilty to Illegally Possessing a FirearmRead the Press Release
ST. PAUL, Minn. – A Minneapolis woman pleaded guilty to illegally possessing a firearm as a felon, announced Acting U.S. Attorney Charles J. Kovats.
According to court documents, on March 13, 2020, Rekita Tiara Harden, 32, was driving a vehicle on Interstate 35W in Carlton County. Harden was stopped by a Carlton County Sheriff’s Deputy for driving violations. Harden’s vehicle was searched, and the deputy recovered a Beretta, Model 90, .32 caliber semi-automatic pistol in Harden’s backpack. Because she has prior felony convictions in Hennepin County, including robbery, burglary, and assault, Harden is prohibited from possessing a firearm or ammunition at any time.
Harden pleaded guilty today before Senior U.S. District Judge Donovan W. Frank to one count of possessing a firearm as a felon. A sentencing hearing will be scheduled at a later date.
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 is the result of investigations conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Carlton County Sheriff’s Office.
Assistant U.S. Attorney David P. Steinkamp is prosecuting the case.
Mexican Man Sentenced to Prison for Illegally Reentering the United States After Being Deported Six TimesRead the Press Release
A man who illegally returned to the United States after being deported six times was sentenced today to ten months in federal prison.
Emilio Jimenez-Daniel, age 34, a citizen of Mexico illegally present in the United States and residing in Aurora, Colorado, received the prison term after a guilty plea on November 16, 2021, to one count of illegal reentry into the United States after having been deported.
At the guilty plea, Jimenez-Daniel admitted he had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. Jimenez-Daniel was deported in September 2003, October 2003, September 2004, May 2011, January 2013, and June 2018. Jimenez-Daniel was convicted in the Iowa District Court for Johnson County of Operating While Intoxicated, second offense, a felony, in February 2021. He was also convicted of Driving Under the Influence in Kansas and Driving Under the Influence in Colorado for offenses occurring in July and September 2009.
Jimenez-Daniel was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Jimenez-Daniel was sentenced to 10 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Jimenez-Daniel is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 21-CR-65.
Follow us on Twitter @USAO_NDIA.
McGregor Felon Sentenced to 10 Years in Prison for Possession of Stolen FirearmsRead the Press Release
ST. PAUL, Minn. – A McGregor man has been sentenced to 120 months in prison followed by three years of supervised release for illegally possessing stolen firearms. Acting U.S. Attorney Charles J. Kovats made the announcement after Senior U.S. District Judge Paul A. Magnuson sentenced the defendant.
According to court documents, on July 15, 2020, Vaundell Duwayne Kingbird, 32, sold a Hi-Point, Model 995, 9mm carbine rifle and a New England Firearm Company, Model SB1, 12-gauge shotgun, both with obliterated serial numbers, to an individual for $550. At the time of the sale, Kingbird was unaware that the individual who purchased the firearms was working with law enforcement. Both firearms had been reported stolen on May 29, 2020, from a residence near Kingbird’s home. Kingbird admitted to knowing the firearms were stolen.
On September 16, 2021, Kingbird pleaded guilty to one count of possession of a stolen firearm.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Mille Lacs Tribal Police Department, the Aitkin County Sheriff’s Office, and the Lakes Area Drug Investigations Division.
Assistant U.S. Attorney Deidre Y. Aanstad and Special Assistant U.S. Attorney Caleb Dogeagle prosecuted the case.
Manchester Man Sentenced to 45 Years in Prison for Sex Trafficking OffensesRead the Press Release
DES MOINES, IA – On March 23, 2022, Darrius Decnan Redd, age 33, of Manchester, was sentenced in federal court to 45 years in prison for sex trafficking an adult victim by force, fraud, and coercion; five years for facilitation of prostitution; and 40 years for distribution of a controlled substance to a person under the age of 21. The sentences are to run concurrently (i.e., at the same time). A jury unanimously convicted Redd of those crimes in September 2021.
According to evidence presented at the four and a half-day trial and court documents submitted for sentencing, Redd used deceptive and coercive tactics as well as physical force to compel a victim to engage in sex acts in exchange for money. Redd kept all the proceeds from the victim’s sex acts. Redd trafficked the victim in Iowa City, Cedar Rapids, Waterloo, Clive, and surrounding areas in March 2020. Redd also supplied the victim with a controlled substance and posted advertisements for paid sex acts with the victim and other women on an escort website.
Redd’s sex trafficking pursuits were not limited to one victim. Evidence at trial suggested Redd trafficked or attempted to traffic multiple women. Witnesses testified that Redd targeted vulnerable and broken women whom he could traffic and he had boasted about doing so for years. To recruit women for purposes of sex trafficking, Redd, among other things, plied the women with drugs, made video recordings of the women engaged in sex acts to use as blackmail, lied to the women about his intentions, and told the women that they owed him or others money.
At sentencing, United States District Court Judge Rebecca Goodgame Ebinger ruled that, during the commission of his crimes, Redd had raped two women. She found further Redd had physically restrained those women and he had abducted them against their will. She also noted Redd had failed to express any remorse for his actions and he had lied while testifying at trial.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This investigation was conducted by the Iowa Division of Criminal Investigation, Clive Police Department, University of Iowa Police Department, Iowa City Police Department, Manchester Police Department, Iowa Department of Corrections, and the Iowa Division of Narcotics Enforcement. The Des Moines Police Department and the Federal Bureau of Investigation participated in trial presentation. Assistant United States Attorneys Amy L. Jennings and Kyle J. Essley, along with Former Assistant United States Attorney Virginia Bruner, prosecuted the case with the assistance of Victim Witness Specialist Charlotte Kovacs.
Human trafficking is a crime involving the exploitation of youth under the age of 18 for commercial sex; the exploitation of adults for commercial sex through the use of force, fraud, or coercion; and the exploitation of any individual for compelled labor. Human trafficking does not require the transportation of individuals across state lines, or that someone is physically restrained. Signs that a person is being trafficked can include working excessively long hours, unexplained gifts, physical injury, substance abuse issues, running away from home, isolation from others, or having a person in their life controlling them or monitoring them closely. Victims particularly susceptible to being trafficked include those with criminal histories, a history of physical or sexual abuse, uncertain legal status, and dependency on controlled substances. Individuals who purchase sex from minors or from those who are otherwise exploited for commercial sex are also subject to prosecution for sex trafficking under federal law, if they knew or were in reckless disregard of the fact that they were under the age of 18, or that force, fraud, or coercion was used.
Anyone who suspects human trafficking is occurring, be it a minor engaging in paid sex acts, or anyone being coerced into prostitution or labor, is urged to call the National Human Trafficking Hotline at 1-888-373-7888.
Manchester Man Pleads Guilty to Bank FraudRead the Press Release
CONCORD - Robesteur St. Felix, 47, of Manchester, pleaded guilty on Monday in federal court to bank fraud, United States Attorney John J. Farley announced today.
According to court documents and statements made in court, between February and July of 2019, the defendant was involved in a scheme to defraud several financial institutions. The defendants in the scheme applied for and obtained multiple loans to purchase cars purportedly sold by Allied Imports, a Manchester car wholesaler, and Cap’s Auto Sales, a Manchester car retailer. St. Felix was the CEO of Cap’s Auto Sales. The sales were fraudulent because the defendants never owned or greatly inflated the value of the cars. In total, the defendants defrauded the financial institutions of several hundred thousand dollars.
St. Felix participated in the scheme by fabricating three purchase contracts which were used to apply for three fraudulent loans. On August 20, 2020, St. Felix entered into a consent order with the New Hampshire Banking Department in which he admitted to falsifying the purchase contracts for two of the vehicles in question.
St. Felix is scheduled to be sentenced on June 29, 2022.
A total of six defendants were charged in this case. Four defendants are awaiting trial and one has not yet been arrested.
“By submitting false documents to obtain fraudulent loans, the defendant participated in a substantial criminal scheme,” said U.S. Attorney Farley. “As this case demonstrates, we work closely with our law enforcement partners to identify and prosecute those who commit fraud. By working together, we strive to hold these criminals accountable for their unlawful conduct and seek justice for victims.”
“The U.S. Secret Service is committed to investigating complex fraud schemes in New Hampshire.” stated Timothy Benitez, Resident Agent in Charge of the U.S. Secret Service’s New Hampshire Office. “The success of this investigation is due to the collaboration between the U.S. Secret Service, New Hampshire Banking Department and the U.S. Postal Inspection Service.”
This matter was investigated by the United States Secret Service and U.S. Postal Inspection Service. The case is being prosecuted by Special Assistant U.S. Attorney Alexander S. Chen and Assistant U.S. Attorney Charles L. Rombeau.
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Man from El Paso pleads guilty to hostage takingRead the Press Release
ALBUQERQUE, N.M. – Jonathan Gonzalez, 35, of El Paso, Texas, pleaded guilty in federal court on March 18 to an indictment charging him with one count of conspiracy to take a hostage and two counts of hostage taking. Gonzales will remain in custody pending sentencing, which has not been scheduled.
A federal grand jury indicted Gonzales on July 21, 2021. According to the plea agreement and other court records, from April 1, 2021, to April 27, 2021, Gonzalez and his accomplices, Ricardo Arce, 41, of Chaparral, New Mexico, and Vicki Sowell, 36, of El Paso, took two victims hostage in Chaparral. The victims were identified in the plea agreement as B.M., a citizen and national of Georgia, and N.N.P.-C., a citizen and national of Honduras.
On April 4, 2021, B.M. entered the United States from Juarez, Mexico, into El Paso to meet with people who were part of an alien smuggling organization and paid them to transport him to New York where his family lives. They transported B.M. to Arce’s residence where Gonzalez held him hostage and threatened to injure and kill the him if they did not receive money for his release. On April 13, 2021, N.N.P.-C. entered the United States from Juarez and was also taken to Arce’s residence and held hostage by Gonzalez.
On April 25, 2021, B.M.’s family contacted law enforcement in Georgia. Georgian authorities then contacted the FBI, who helped recover the victim at a barbershop in the El Paso area on April 27, 2021. On the same day, law enforcement also secured the recovery of N.N.P.-C. at a pizza restaurant in El Paso.
Arce and Sowell pleaded guilty in September 2021 to one count of conspiracy to take a hostage and two counts of hostage taking. They remain in custody pending sentencing.
Gonzalez faces up to 15 years in prison.
The FBI El Paso Field Office investigated this case with assistance from the FBI Las Cruces Resident Agency, El Paso Police Department, Las Cruces Police Department, Otero County Sheriff's Office, Doña Ana County Sheriff's Office, U.S. Border Patrol El Paso Sector and Border Patrol El Paso Sector Special Operations Detachment BORTAC. Assistant U.S. Attorneys Matthew Ramirez and Rachel Feuerhammer are prosecuting the case.
Mahoning County Man Sentenced to Prison for Stealing More Than $172k in Retirement Insurance Benefits from the Social Security AdministrationRead the Press Release
Acting U.S. Attorney Michelle M. Baeppler announced that Marcus C. Williams, 52, of Campbell, Ohio, was sentenced on Thursday, March 24, 2022, by U.S. District Judge Christopher A. Boyko to 15 months in prison, three years of supervised release and ordered to pay $172,943 in restitution to the Social Security Administration (SSA) after Williams pleaded guilty to theft of government property.
“Stealing funds intended for a legitimate Social Security dependent is a guaranteed way to face prosecution and potential time in prison,” said Acting U.S. Attorney Michelle M. Baeppler. “Stealing Social security funds is not a victimless crime and has real consequences.”
“As a representative payee for his grandfather, a beneficiary of Retirement Insurance Benefits, Mr. Williams had a responsibility to report his grandfather’s death to SSA. However, Mr. Williams discarded that responsibility and instead falsely reported to SSA that his grandfather was alive so that Mr. Williams could use those stolen funds from SSA in excesses of more than $172,000 for his personal use,” said Gail S. Ennis, Inspector General for the Social Security Administration. “This sentence demonstrates that my office will continue to pursue those who commit Social Security fraud. I thank the U.S. Postal Inspection Services for joining us in this investigation. I also thank the U.S. Attorney’s Office and Special Assistant U.S. Attorney Jason White for holding Mr. Williams accountable.”
According to court documents, at the time of his death, the defendant’s grandfather received Retirement Insurance benefits from the SSA that were paid directly to the defendant as the representative payee. As a representative payee, Williams was responsible for ensuring that payments were used for the good of the beneficiary and was required to report to the SSA any changes in circumstances, including the death of the beneficiary.
Court documents state that from May 2008 to October 2019, Williams reported to the SSA that his grandfather was living, when he knew that to be untrue and used money intended for his grandfather for his own personal use.
In total, Williams stole $172,943 in Retirement Insurance benefits from the SSA.
This case was investigated by the Social Security Administration Office of the Inspector General. This case was prosecuted by Special Assistant United States Attorney Jason W. White.
Luzerne County Man Indicted for Drug Trafficking and Firearms OffensesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on March 22, 2022, Andre Johnson, Jr., age 28, a resident of Wilkes-Barre, Pennsylvania, was indicted by a federal grand jury for drug trafficking and firearms offenses, including possessing firearms in furtherance of a drug trafficking crime, and as a previously convicted felon.
According to United States Attorney John C. Gurganus, the indictment charges that on or about February 24, 2022, Johnson possessed with intent to distribute 40 grams and more of fentanyl, 50 grams and more of methamphetamine, and 28 grams and more of cocaine base (crack), all Schedule II controlled substances, as well as an unspecified amount of marijuana, a Schedule I controlled substance. It is further alleged that Johnson possessed multiple firearms in furtherance of a drug trafficking crime, as well as multiple firearms while knowing that he was a prohibited from possessing them due to prior felony convictions in Philadelphia County. Johnson is also charged with possessing stolen firearms.
This case was 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 charges stem from a joint investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the United States Marshals Service, the Wilkes-Barre City Police Department, and the Pennsylvania State Police. Assistant United States Attorney Michelle Olshefski is prosecuting the case.
The maximum penalty under federal law for the crimes charged in the Indictment is life imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Loves Park Investment Advisor Sentenced to More Than Four Years in Prison for Financial FraudRead the Press Release
ROCKFORD — A Loves Park, Ill., investment advisor has been sentenced to four years and four months in federal prison for financial fraud.
NASEEM SALAMAH, 41, fraudulently obtained a total of more than $968,000 from the accounts of three customers. Salamah told the customers that he needed to move the money to diversify their assets, when, in fact, Salamah deposited the money into a bank account that he controlled. Salamah then used the money for his own benefit and without the customers’ knowledge or consent.
In addition to the prison sentence, U.S. District Judge Iain D. Johnston on Wednesday ordered Salamah to pay restitution to the victims in the amount of $968,582.12.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The U.S. Securities and Exchange Commission, which filed a civil enforcement action against Salamah, provided valuable assistance. The government was represented by Assistant U.S. Attorney Scott R. Paccagnini.
Leader of a Methamphetamine Trafficking Organization Sentenced to 10 Years in Federal PrisonRead the Press Release
INDIANAPOLIS – Carl Lee, 45, of Indianapolis, was recently sentenced to 10 years in federal prison after pleading guilty to conspiracy to distribute methamphetamine and conspiracy to launder monetary instruments.
According to court documents, in June 2018, federal and local law enforcement were investigating the drug trafficking activities of Lee. Lee was selling large quantities of crystal methamphetamine in and around the Indianapolis area. Lee supplied roughly a pound of methamphetamine to various individuals who would then sell the drug to their customers. Between September 2016 and May 2018, Lee repeatedly utilized nominees to send the drug proceeds back to his California based source of supply. Lee was assisted in his drug trafficking activities by his brother, Lewis Thurman, who was charged separately, pled guilty, and was sentenced to 16 years in federal prison for his related drug trafficking activity.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Justin Campbell, IRS Criminal Investigation, Special Agent in Charge, Chicago Field Office made the announcement.
The Internal Revenue Service Criminal Investigation and the Carmel Police Department investigated this case. The Hamilton/Boone County Drug Task Force, the Indianapolis Metropolitan Police Department, the United States Postal Inspection Service, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives provided valuable assistance. The sentence was imposed by U.S. District Judge Jane Magnus-Stinson. As part of the sentence, Judge Magnus-Stinson ordered that the defendant be supervised by the U.S. Probation Office for 5 years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Michelle P. Brady who prosecuted this case.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Las Vegas Man Charged for Series of Armed RobberiesRead the Press Release
LAS VEGAS – A Las Vegas man made his initial appearance in federal court yesterday for allegedly robbing two banks and seven other businesses at gunpoint over a two-month period.
Alcede Molyer Melonson Jr. (61) was arrested on February 28, 2022. He is charged in a criminal complaint with seven counts of interference with commerce by robbery, two counts of bank robbery, and nine counts of brandishing a firearm during and in relation to a crime of violence. U.S. Magistrate Judge Daniel J. Albregts ordered Melonson to be held in custody pending a preliminary hearing scheduled for April 6, 2022.
According to allegations in the complaint, from December 26, 2021 to February 24, 2022, Melonson robbed three gas station convenience stores, two department stores, two pharmacies, and two banks in the Las Vegas area. During each robbery, Melonson demanded money from the cashier or teller while displaying a .357 caliber revolver. In total, Melonson obtained approximately $5,238 from the nine armed robberies.
Melonson has multiple prior felony convictions, including convictions for robbery and burglary. At the time of the alleged robbery spree in Las Vegas, he was on parole after serving a 25-year prison sentence for robbery in California.
The statutory maximum penalty is 20 years in prison for each count of interference with commerce by robbery, and 20 years in prison for each count of bank robbery. The statutory minimum penalty is seven years in prison for each count of brandishing a firearm during and in relation to a crime of violence. In addition to imprisonment, Melonson also faces a period of supervised release, a fine, and restitution.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Acting Special Agent in Charge W.M. Herrington for the FBI made the announcement.
This case was investigated by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Bianca Pucci is prosecuting the case.
A complaint is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Justice Department and Department of Homeland Security Issue Rule to Efficiently and Fairly Process Asylum ClaimsRead the Press Release
Today, the Department of Justice and the Department of Homeland Security (DHS) are issuing a rule to improve and expedite processing of asylum claims made by noncitizens subject to expedited removal, ensuring that those who are eligible for asylum are granted relief quickly, and those who are not are promptly removed.
The rule authorizes asylum officers within U.S. Citizenship and Immigration Services (USCIS) to consider the asylum applications of individuals subject to expedited removal who assert a fear of persecution or torture and pass the required credible fear screening. Currently, such cases are decided only by immigration judges within the Justice Department’s Executive Office for Immigration Review (EOIR).
Due to existing court backlogs, the process for hearing and deciding these asylum cases currently takes several years on average. When fully implemented, the reforms and new efficiencies will shorten the process to several months for most asylum applicants covered by this rule.
“This rule advances our efforts to ensure that asylum claims are processed fairly, expeditiously, and consistent with due process,” said Attorney General Merrick B. Garland. “It will help reduce the burden on our immigration courts, protect the rights of those fleeing persecution and violence, and enable immigration judges to issue removal orders when appropriate. We look forward to receiving additional input from stakeholders and the public on this important rule.”
“The current system for handling asylum claims at our borders has long needed repair,” said Secretary Alejandro N. Mayorkas. “Through this rule, we are building a more functional and sensible asylum system to ensure that individuals who are eligible will receive protection more swiftly, while those who are not eligible will be rapidly removed. We will process claims for asylum or other humanitarian protection in a timely and efficient manner while ensuring due process.”
Under the rule, individuals who receive a positive credible fear determination will receive a timely interview with an asylum officer to elicit all relevant and useful information about their asylum claim. Following an interview, USCIS will decide whether to grant asylum, and, if necessary, determine the applicant’s eligibility for withholding of removal or protection under the Convention Against Torture (CAT).
Any individual who is not granted asylum by USCIS will be referred for a removal proceeding before an immigration judge. The rule establishes streamlined procedures for these removal proceedings, designed to promote efficient resolution of the case.
The rule will not apply to unaccompanied children, and it will only apply to individuals who are placed into expedited removal proceedings on or after its effective date. The rule will be implemented in phases, starting with a limited number of individuals and subsequently expanding as the USCIS Asylum Division receives additional resources and builds capacity.
This rule modifies the NPRM’s proposal in response to public comments received following the notice of proposed rulemaking (NPRM) issued by DHS and the Department of Justice in August 2021. The rule will be effective 60 days after publication in the Federal Register. The Departments encourage further public comment on the rule during the 60-day comment period for the Departments to consider. Details for submitting public comments are in the rule.
Justice Department Files Voting Rights Lawsuit Against Galveston County, Texas to Challenge County Redistricting PlanRead the Press Release
The Justice Department announced today that it has filed a lawsuit under Section 2 of the Voting Rights Act against Galveston County, Texas, challenging the redistricting plan for its county governing body, known as the Commissioners Court. The plan was adopted by the county on Nov. 12, 2021, after release of the data from the 2020 Census. The complaint was filed in the U.S. District Court for the Southern District of Texas.
“This action is the latest demonstration of the Justice Department’s commitment to protecting the voting rights of all Americans, particularly during the current redistricting cycle,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “Our complaint alleges that Galveston County has violated Section 2 of the Voting Rights Act by devising a redistricting plan that dismantles the only district in which Black and Hispanic voters had the opportunity to elect a candidate of choice to the county’s governing body. We will continue to use all available tools to challenge voting discrimination in our country.”
“The U.S. Attorney’s Office for the Southern District of Texas is committed to protecting the voting rights of all of our citizens,” said U.S. Attorney Jennifer B. Lowery for the Southern District of Texas. “We are pleased to join the Civil Rights Division in bringing this important lawsuit under the Voting Rights Act.”
The United States’ complaint contends that the 2021 redistricting plan for the county’s governing body violates Section 2 because it has the discriminatory result of denying Black and Hispanic citizens an equal opportunity to participate in the political process and because the new map was adopted, in part with a discriminatory purpose. The complaint alleges that the county deliberately reconfigured the Commissioners Court’s sole, longstanding minority opportunity-to-elect district to eliminate Black and Hispanic voters’ opportunity to elect a representative of their choice. The complaint also alleges that over the course of the past three decades, Galveston County has on several occasions sought to diminish or eliminate electoral opportunities for the county’s Black and Hispanic voters.
The United States’ complaint asks the court to prohibit Galveston County from conducting elections under the challenged plan and to order Galveston County to devise and implement a new redistricting plan that complies with Section 2 of the Voting Rights Act.
More information about the Voting Rights Act and other federal voting laws is available on the Department of Justice’s website at https://www.justice.gov/crt/voting-section.
Complaints about discriminatory voting practices may be reported to the Civil Rights Division through the internet reporting portal at https://civilrights.justice.gov or by telephone at 1-800-253-3931.
For a list of the department’s actions to protect voting rights, click here.
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Iowa Man Sentenced to Another Term in Federal Prison for Drug TraffickingRead the Press Release
A man who conspired to distribute methamphetamine was sentenced on March 17, 2022, in federal court in Sioux City.
Dustin Joe Martinez, 33, from Sutherland, Iowa, pled guilty on October 21, 2021, to conspiracy to distribute methamphetamine. Martinez was previously convicted of conspiracy to distribute methamphetamine within 1,000 feet of a school and possession with intent to distribute methamphetamine on June 3, 2016, in the United States District Court for the Northern District of Iowa. Martinez was on federal supervised release for this offense beginning on January 16, 2016.
At the plea and sentencing hearings, evidence showed that from 2019 and through March 2021, Martinez and others distributed methamphetamine. On two separate occasions, in March of 2020 and March of 2021, Martinez was found in possession of approximately one ounce of methamphetamine which he intended to distribute.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Martinez was sentenced to 87 months’ imprisonment and must serve a term of five years of supervised release following imprisonment. Martinez was also sentenced to a consecutive term of 24 months’ imprisonment for violations of his previously imposed federal supervised release. Therefore, Martinez was sentenced to a total term of 111 months’ imprisonment. There is no parole in the federal system. Martinez remains in custody of the United States Marshal until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Iowa Division of Narcotics Enforcement, Spencer Police Department, O’Brien County Sheriff’s Office, and Iowa DCI Laboratory.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4032. Follow us on Twitter @USAO_NDIA.
Illegal possession of firearm sends Hamilton man to prison for more than two yearsRead the Press Release
MISSOULA — A Hamilton man was sentenced today to 27 months in prison followed by three years of supervised release after he admitted to illegally possessing a firearm after being found passed out in the driver’s seat of a running vehicle that was stopped at an intersection in Missoula, U.S. Attorney Leif M. Johnson said.
Andrew David Golie, 35, pleaded guilty in December 2021 to prohibited person in possession of a firearm and ammunition.
U.S. District Judge Dana L. Christensen presided.
The government alleged in court documents that in October 2020, Golie was on state probation for a 2012 felony conviction of tampering with witnesses and informants. On Oct. 1, 2020, at approximately 4 a.m., Missoula police officers found Golie passed out in the driver’s seat of a running car that was stopped at an intersection in Missoula. The officers smelled marijuana and saw an unholstered firearm on the passenger seat next to Golie. The firearm, a .45-caliber semi-automatic pistol, had a round loaded in the chamber and additional rounds of ammunition in the magazine. Officers also located two backpacks in the front passenger seat that contained methamphetamine and syringes.
Assistant U.S. Attorney Cyndee L. Peterson prosecuted the case, which was investigated by the FBI, FBI’s Montana Regional Violent Crime Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Missoula Police Department.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Ice Methamphetamine Dealer Sentenced to 78 Months in PrisonRead the Press Release
PEORIA, Ill. –A Pekin, Illinois, man, Sean E. Ward, 49, of the 2200 block of Court Street, was sentenced on March 22, 2022, to six-and-a-half years in prison, to be followed by five years of supervised release, for distribution of methamphetamine.
At Ward’s sentencing hearing, U.S. District Judge James E. Shadid found that Ward was responsible for distributing approximately 246.2 grams of methamphetamine. Judge Shadid noted that Ward’s criminal history was separated by periods of sobriety and that Ward appeared committed to working on his substance abuse and mental health issues.
At the sentencing hearing, the government presented evidence that Ward sold ice methamphetamine on three different occasions in the summer of 2021; the largest identified sale was 110.5 grams of pure methamphetamine, as confirmed by the Drug Enforcement Administration laboratory results.
Ward was indicted in August 2021 and pleaded guilty in October 2021. Ward has been in the custody of the U.S. Marshals since his arrest but was permitted to attend residential substance abuse treatment prior to his sentencing.
The statutory penalties for distribution of methamphetamine are not less than ten years and up to life imprisonment, not more than a $10 million dollar fine, and a minimum five-year to a maximum life term of supervised release. Ward was eligible for a lower sentence because he was sentenced pursuant to the “safety-valve” provision of 18 U.S.C. §3553(f).
The Pekin Police Department and the Drug Enforcement Administration investigated the case. Assistant U.S. Attorney Katherine G. Legge represented the government in the prosecution, with assistance of the Tazewell County State’s Attorney’s Office.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF)’s National Methamphetamine Strategic Initiative, spearheaded locally out of the Pekin Police Department. The primary goal of this initiative is to address methamphetamine trafficking and its attendant consequences by using a coordinated, multi-agency approach targeting the highest levels of drug trafficking leadership. 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
Houston, Texas, Man Convicted of Possession of Marijuana with Intent to DistributeRead the Press Release
SPRINGFIELD, Ill. – A federal jury returned a guilty verdict on March 23, 2022, against Muhammad Usama, 25, of the 13000 block of Bammel North Houston Road in Houston, Texas, for knowingly possessing 100 kilograms or more of a mixture and substance containing marijuana, a Schedule I controlled substance, with intent to distribute it. Sentencing for Usama has been scheduled for September 9, 2022, at the federal Courthouse in Springfield, Illinois.
Over three days of testimony, the government presented evidence to establish that Usama traveled from California across the country in a recreational vehicle full of almost 1000 pounds of marijuana. The trip was interrupted by law enforcement, who seized the marijuana and took Usama into custody in Jacksonville, Illinois.
Usama remains in the custody of the U.S. Marshals. At sentencing, Usama faces statutory penalties of up to 40 years imprisonment, up to a life term of supervised release, and up to a $5,000,000 fine.
The case investigation was conducted by the Department of Homeland Security, Drug Enforcement Administration, Illinois State Police, Morgan County Sheriff’s Department, South Jacksonville Police Department, and the Jacksonville Police Department. The Morgan County State’s Attorney’s Office also assisted in the case. Assistant U.S. Attorneys Matthew Z. Weir and Sarah E. Seberger represented the government at trial.
Houston man sent to prison for role in violent abductionRead the Press Release
HOUSTON – A 23-year-old Houston man has been ordered to federal prison for admitting his role in a brutal kidnapping of a woman from her residence in Katy, announced U.S. Attorney Jennifer B. Lowery.
Hipolito Gutierrez pleaded guilty Nov. 26, 2019.
Today, Judge Sim Lake sentenced Gutierrez to a 10-year-term of imprisonment to be immediately followed by five years of supervised release.
At the hearing, the court heard details of the violent abduction in which Gutierrez and Nico Namitle-Morales kidnapped the female victim at gunpoint from her vehicle as she drove into her garage. Gutierrez and Namilte-Morales transported the victim to Dallas and held her captive for three days while demanding ransom payments.
Gutierrez is the last man to be sentenced for his role in the crime. In December 2021, the court ordered Namitle-Morales to serve a 20-year sentence for his role as the main gunman and mastermind of the kidnapping.
Gutierrez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBIconducted the investigation with the assistance of the Harris County Sheriff’s Office and Texarkana Police Department. Assistant U.S. Attorney Matthew Peneguy prosecuted the case.
Helena man sentenced to prison for bank fraud in COVID-19 relief schemeRead the Press Release
GREAT FALLS – A Helena man who admitted lying in a scheme to receive more than $400,000 in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) for coronavirus relief aid and using the money instead for personal benefit was sentenced on March 23 to one year and one day in prison, to be followed by three years of supervised release, U.S. Attorney Leif M. Johnson said.
Kasey Jones Wilson, 29, pleaded guilty in November 2021 to bank fraud and to engaging in monetary transactions in property derived from specified unlawful activity.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris also ordered $125,000 restitution.
“Wilson tried to line his own pockets at the expense of small businesses that needed this federal aid to help make payroll and cover other expenses during a deadly pandemic. Such fraudsters will be fully investigated and prosecuted. I want to thank Assistant U.S. Attorney Colin M. Rubich, IRS Criminal Investigation, the FBI and all of our law enforcement partners for their work on this case,” U.S. Attorney Johnson said.
“This sentencing is a victory for American citizens and the business owners the Paycheck Protection Program was designed to help,” said Andy Tsui, IRS Criminal Investigation Special Agent in Charge. “Through our partnership with the U.S. Attorney’s Office and our federal law enforcement partners, IRS Criminal Investigation agents will continue to aggressively pursue individuals who try to exploit federal relief programs for their personal gain.”
In court documents, the government alleged that on June 28, 2020, Wilson applied to Valley Bank of Helena for a Paycheck Protection Program loan seeking $416,400 on behalf of Step Above Management LLC, an entity he and codefendant, Trevor Lanius-McLeod, controlled. The loan was granted, and funds were sent to an account that Wilson controlled. Lanius-McLeod has pleaded guilty to charges and is pending sentencing.
The PPP program, which is part of the federal Coronavirus Aid, Relief and Economic Security (CARES) Act, provided emergency assistance to small businesses for job retention and certain other expenses.
Wilson and Lanius-McLeod made numerous false statements on the PPP loan application. Without the false statements, Wilson and Lanius-McLeod would not have qualified for a PPP loan. The defendants falsely stated that Step Above Management had paid payroll taxes and had 34 employees. The company never paid payroll taxes and had no employees besides Wilson and Lanius-McLeod. Wilson also represented on the loan application that he had not been convicted of a felony within the last five years, when he had been convicted of a felony in 2016.
The government further alleged that in a promissory note, the defendants agreed to use the funds for business-related expenses. None of the loan money was used for these purposes. Instead, the proceeds were spent on various personal expenses. Most of the loan funds went to Lanius-McLeod. Wilson purchased several cashier’s checks from Valley Bank of Helena payable to Lanius-McLeod.
Assistant U.S. Attorney Colin M. Rubich prosecuted the case, which was investigated by the IRS-Criminal Investigation and FBI, with assistance from the U.S. Treasury Inspector General for Tax Administration and U.S. Secret Service.
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.
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Head of the Gulf Cartel indictedRead the Press Release
BROWNSVILLE, Texas – Jose Alfredo Cardenas-Martinez aka El Contador has been indicted in the Southern District of Texas on various charges related to his position as the head of the Cardenas family drug trafficking operation known as the Cartel del Golfo, announced U.S. Attorney Jennifer B. Lowery.
A federal grand jury sitting in Brownsville returned the nine-count indictment Nov. 10, 2021. Cardenas-Martinez is currently in custody in Mexico pending litigation on the U.S.’s extradition request.
According to the charges, Cardenas-Martinez, 42, has been the head of the Gulf Cartel aka Cartel del Golfo or CDG since 2015. He became CDG’s leader following the arrest and later conviction of Jorge Eduardo Costilla-Sanchez aka El Cos. Costilla-Sanchez was CDG’s leader following the arrest and conviction of Cardenas-Martinez’s uncle - Oziel Cardenas-Guillen. Cardenas-Guillen is currently in federal custody serving his sentence. Costilla-Sanchez was also convicted in the Southern District of Texas and is awaiting sentencing. The Gulf Cartel is headquartered in Matamoros, Tamaulipas, Mexico.
Cardenas-Martinez is charged in an international conspiracy to possess with intent to distribute meth, cocaine and fentanyl. The indictment also alleges he possessed with intent to distribute 50 grams or more of meth, five kilograms of cocaine and 400 grams or more of fentanyl.
As head of the CDG, Cardenas-Martinez allegedly coordinated the shipment of narcotics to the United States for illegal sale across the country. According to the charges, the conspiracy to transport cocaine, meth and fentanyl into the United States began in 2015 and continued through 2021.
“The arrest of Jose Alfredo Cardenas-Martinez serves a tough blow to the Gulf Cartel Organization,” said Drug Enforcement Administration (DEA) Special Agent in Charge Daniel C. Comeaux. “It is the culmination of a successful international drug investigation which should disrupt the Gulf Cartel’s ability to smuggle drugs into Texas and other communities.”
“Through the joint investigation from our office in Harlingen, in coordination with our Attaché in Mexico and other partners, we were able to gather significant evidence that was instrumental in the case against “El Contador,” said Special Agent in Charge Shane Folden of Homeland Security Investigations (HSI). “HSI and our law enforcement partners will continue to coordinate to dismantle any suspected transnational criminal organizations that threaten public safety.”
If convicted, Cardenas-Martinez faces up to life in prison and a possible $10 million fine. The indictment also includes a notice of forfeiture of any proceeds he made and property used to facilitate his drug trafficking business.
This prosecution is part of Organized Crime Drug Enforcement Task Force (OCDETF) investigation Cold Blooded. OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks.
The DEA and HSI conducted the joint investigation with the assistance of Border Patrol. The Justice Department’s Office of International Affairs also provided substantial assistance. Assistant U.S. Attorney Karen Betancourt is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Hartford Residents Charged with Trafficking Massive Quantity of FentanylRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that a federal grand jury in New Haven has returned an eight-count indictment charging ERASMO ROSARIO-HERNANDEZ, also known as “Wally Rosario,” 38, and WILY ARIAS DE LA CRUZ, 38, both citizens of the Dominican Republic last residing in Hartford, with multiple offenses related to the distribution of fentanyl, heroin and crack cocaine. Rosario is also charged with a firearm offense stemming from his possession of several assault rifles and other firearms.
As alleged in court documents and statements made in court, a DEA investigation identified Rosario and De La Cruz as members of a drug trafficking organization that has been trafficking in large quantities of fentanyl. In the early morning of March 11, 2022, investigators, in Hartford, stopped a car in which De La Cruz was a passenger and seized two compressed bricks of fentanyl with a total weight of more than one kilogram. Later in the morning, a court authorized search of Rosario’s residence on Magnolia Street in Hartford revealed approximately one kilogram of fentanyl, approximately 16,000 fentanyl pills disguised as 30 milligram oxycodone pills, three high-capacity magazine, and a bump stock device for an automatic rifle. After a narcotics-detection canine alerted to Rosario’s Mercedes that was parked outside of the residence, investigators searched the car and seized approximately 14 kilograms of fentanyl, approximately 1,000 bags of prepackaged fentanyl, approximately 16,000 fentanyl pills, approximately 75 grams of heroin, 41 grams of cocaine base, a kilogram press, four assault-style rifles, two handguns, ammunition, multiple false identification cards with Rosario’s photo, and approximately $66,000 in counterfeit U.S. currency.
Rosario and De La Cruz have been detained since March 11.
The indictment, which was returned on March 22, charges Rosario and De La Cruz with conspiracy to distribute, and to possess with intent to distribute, 400 grams or more of fentanyl, and with possession with intent to distribute 400 grams or more of fentanyl. Each of these offenses carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life. Rosario is also charged with offenses related to the distribution of heroin and cocaine base (“crack”), and with possession of firearms in furtherance of a drug trafficking crime. The firearm offense carries a mandatory consecutive prison term of at least five years.
“It is alleged that these defendants have been involved in a drug trafficking network that involved a massive amount of fentanyl and the production of thousands of fentanyl pills that could easily be mistaken for legitimate oxycodone pills,” said U.S. Attorney Boyle. “As fentanyl continues to be the leading cause of overdose deaths in Connecticut and around the country, we are determined to do everything to stop of the flow of this deadly drug into and around our state. This case represents one of the largest one-time seizures of fentanyl that we’ve seen in Connecticut, and I thank the DEA and its task force members for their excellent work. Their efforts in taking these dangerous drugs and guns off the streets have saved lives.”
“Fentanyl is causing deaths in record numbers and DEA’s top priority is to aggressively pursue anyone who distributes this poison in order to profit and destroy lives,” said DEA Special Agent in Charge Boyle. “Illegal drug distribution ravages the very foundations of our families and communities so every time we take fentanyl off the streets, lives are saved. This investigation demonstrates the strength of collaborative local, county and state law enforcement efforts in Connecticut and our strong partnership with the U.S. Attorney’s Office.”
U.S. Attorney Boyle stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the DEA’s Hartford Task Force, which includes personnel from the DEA Hartford Resident Office, the Connecticut State Police, and the Bristol, Hartford, East Hartford, Enfield, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Harrison County man sentenced for firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Chad Perkins, of Wallace, West Virginia, was sentenced today to 27 months of incarceration for a firearms charge, United States Attorney William Ihlenfeld announced.
Perkins, 34, pleaded guilty to one count of “Unlawful Possession of Firearm.” Perkins, a person prohibited from having a firearm because of prior convictions, admitted to having 41 rounds of .22 caliber ammunition in an AR conversion drum magazine in August 2021 in Harrison County.
Assistant U.S. Attorney Jennifer T. Conklin prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives and West Virginia State Police investigated.
U.S. District Judge Thomas S. Kleeh presided.
Hanover Man Admits to Using Ghost Gun to Shoot at United States Secret Service Security GuardsRead the Press Release
Greenbelt, Maryland – Jeremiah Peter Watson, age 24, of Hanover, Maryland, pleaded guilty yesterday to assault on a federal officer with a deadly or dangerous weapon; and using, carrying, and brandishing a firearm in relation to a violent crime.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge L.C. Cheeks of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Chief of Police Pamela A. Smith of the U.S. Park Police.
According to his guilty plea, on February 25, 2021, Watson drove to the entrance of a United States Secret Service facility, positioning his vehicle in a manner that blocked the driveway and prevented other drivers from passing through the entrance of the facility. When a security officer (Victim 1) approached Watson to ask him to move his vehicle, Watson became verbally combative and did not move his vehicle.
A second security officer (Victim 2) approached Watson and asked him to move his vehicle and informed him that if he did not move his vehicle, a United States Secret Service agent would arrest him. Watson continued to be combative towards the security. During the confrontation, Watson approached Victim 1 aggressively and lunged at Victim 2, putting his face within inches of Victim 2’s face.
When Watson lunged at Victim 2 and reached into his pocket, Victim 2 was startled and believed that Watson was armed. In response, Victim 2 began to pull out his firearm and Victim 1 sprayed pepper spray at Watson. Watson then retreated into his vehicle and drove away.
Before Watson drove away, the victims noted Watson’s distinctive colored cell phone case and license plate number. As Victim 1, Victim 2, another security guard (Victim 3) and a United States Secret Service agent (Victim 4), began to re-enter the facility building, the victims saw Watson’s vehicle return and saw a flash of a gunshot coming out of the driver-side window towards them. Watson did another U-turn and fired at least four additional shots before he drove away.
As stated in his guilty plea, United State Park Police officers responded to the scene where law enforcement recovered three 9mm ammunition shell casings and located a bullet fragment within a wall. Through the review of information associated with Watson’s license plate registration, law enforcement linked the vehicle to Watson’s Hanover, Maryland address and identified the vehicle at Watson’s residence later that night.
On February 26, 2021, law enforcement executed search warrants at Watson’s residence and recovered Watson’s cell phone, 9mm ammunition, two empty 9mm cartridge cases, and a privately made 9mm handgun without a serial number, also known as a “ghost gun”. Forensic examination concluded that the cartridge cases recovered from Watson’s vehicle had been fired from the recovered ghost gun and that the bullet fragment recovered from the scene was consistent with having been fired from the same ghost gun.
All four victims were acting in the course of their duties as federal officers or employees when Watson discharged his firearm at them.
Watson and the government have agreed that, if the Court accepts the plea agreement, Watson will be sentenced to 10 years in federal prison. U.S. District Judge Paula Xinis has scheduled sentencing for July 5, 2022, at 10:00 a.m.
United States Attorney Erek L. Barron commended the ATF and the U.S. Park Police for their work in the investigation and thanked the Federal Bureau of Investigation, and the United States Secret Service for their assistance. Mr. Barron thanked Assistant U.S. Attorney Elizabeth Wright, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visithttps://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Group sent to prison for attempted meth distributionRead the Press Release
LAREDO, Texas – Three Texas residents have been ordered to federal prison following their convictions of conspiracy to transport 30.1 kilograms of pure meth, announced U.S. Attorney Jennifer B. Lowery.
Jose Ramon Garcia, 41, and Jorge Armando Lozano, 39, both of Hebbronville, pleaded guilty July 16, 2020, while Rolando Cadena 46, Laredo, pleaded guilty Aug. 14, 2020.
Today, U.S. District Judge Diana Saldaña ordered Cadena to serve a 235-month-term of imprisonment, while Garcia and Lozano received respective terms of 97 and 135 months. They each must also serve five years of supervised release after their term of imprisonment.
In handing down the sentence, the court noted that all three were not young men with poor judgment or drug addictions, but instead had good jobs with no reason to participate in narcotics smuggling. At the hearing, Cadena claimed he had been coerced into pleading guilty and completely denied involvement in the crime. Judge Saldaña reviewed the evidence and said she had “no doubt” he was guilty.
The investigation revealed Cadena, Garcia and Lozano had been discussing the transportation of meth. Ultimately, Lozano coordinated the transfer of 22 bundles of meth from Cadena to Garcia in Laredo.
Garcia then traveled east towards Hebbronville. Authorities subsequently stopped him for a traffic violation near Oilton. At that time, Garcia admitted he was transporting narcotics to Dallas and indicated where they were hidden inside of his vehicle.
Previously released on bond, Cadena was taken into custody following the sentencing today where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Lozano and Garcia were permitted to voluntarily surrender in the near future.
Drug Enforcement Administration conducted the investigation with the assistance of the Webb County Constables Office. Assistant U.S. Attorneys Paul Harrison and April Ayers-Perez prosecuted the case.