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2 May 2022
Swiss Scientist Convicted by Federal Jury of Conspiracy to Steal Trade Secrets Belonging to GlaxoSmithKlineRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Gongda Xue, 52, formerly a resident of Allschwil, Switzerland, a legal permanent resident of Switzerland and citizen of China, was convicted after trial of charges related to his participation in a conspiracy to steal trade secrets from GlaxoSmithKline (GSK) pertaining to biopharmaceutical products under development from January 2010 to January 2016.
During the offense conduct, Gongda Xue worked as a scientist at the Friedrich Miescher Institute for Biomedical Research (“FMI”) in Switzerland, which is affiliated with Novartis. His sister, Yu Xue, worked as a scientist at GSK in Pennsylvania. Both the defendant and his sister conducted cancer research as part of their employment at these companies. Their research was sensitive and confidential. Consequently, GSK and FMI required Yu Xue and Gongda Xue respectively to sign confidentiality agreements as part of their employment. While the defendant performed basic research for publication in journals, the defendant’s sister performed research relating to GSK’s anti-cancer drugs under development. Evidence presented at trial showed that the defendant knew that GSK’s research could prove incredibly valuable, and that it was proprietary and confidential.
While working for their respective entities, the defendant and his sister betrayed their employers and shared confidential information for their own personal benefit. Gongda Xue created Abba Therapeutics AG in Switzerland and Yu Xue and her associates formed Renopharma, Ltd., in China. Both companies intended to develop their own biopharmaceutical anti-cancer products. Renopharma received direct funding and support from the government of China. Gongda Xue stole FMI research into anti-cancer products and sent that research to Yu Xue. Yu Xue, in turn, stole GSK research into anti-cancer products and sent that to Gongda Xue. Yu Xue also provided hundreds of GSK documents to her associates at Renopharma. Renopharma then attempted to re-brand GSK products under development as Renopharma products and attempted to sell them for billions of dollars. Renopharma’s own internal projections showed that the company could be worth as much as $10 billion based upon the stolen GSK data.
Fortunately, in January 2016, the FBI arrested Yu Xue and her Renopharma associates, seized e-mail accounts containing the stolen GSK data, and seized the funds in a Renopharma bank account in order to prevent Renopharma from achieving its goals and monetizing the stolen GSK information. Gongda Xue was charged in 2018 and extradited from Switzerland to the United States in December 2019.
Two former GSK employees, Yu Xue and Lucy Xi, have pleaded guilty for their roles in sending GSK trade secrets to Renopharma. Yu Xue's sister, Tian Xue, pleaded guilty to a money laundering conspiracy for agreeing to launder the substantial ill-gotten gains which Renopharma expected to receive. One of the directors of Renopharma, Tao Li, also pleaded guilty for his role in conspiring to steal GSK trade secrets. The other director of Renopharma, Yan Mei, is a fugitive who currently resides in China.
“This defendant illegally stole trade secrets to benefit companies controlled by himself and his sister, one of which were financed by the Chinese government,” said U.S. Attorney Williams. “The lifeblood of companies like GSK is its intellectual property, and when that property is stolen and transferred to a foreign country, it threatens thousands of American jobs and disincentivizes research and development. Such criminal behavior must be prosecuted to the fullest extent of the law.”
“When a company like GSK spends billions on research and development to bring new drugs to market, the theft of valuable trade secrets poses a significant operational threat,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “When those secrets are stolen on behalf of a global adversary, it also endangers the security of our nation and the stability of our economy. The FBI will continue to bring all our investigative resources to bear to hold accountable criminals like Xue and his codefendants who steal intellectual property to benefit themselves and the Government of China. Our relationships with private sector partners like GSK are critical to disrupting such costly activity and bringing those responsible to justice.”
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Robert J. Livermore and J. Jeanette Kang. Extradition assistance was provided by the U.S. Department of Justice, Office of International Affairs. The U.S. Attorney would also like to thank GlaxoSmithKline and Novartis for their extraordinary cooperation on this important investigation.
St. Louis man sentenced for unlawful possession of a firearm after domestic disputeRead the Press Release
ST. LOUIS – United States District Court Judge Matthew T. Schelp sentenced Marlin Tobius, Jr., to 65 months in federal prison today. Tobius previously pleaded guilty for unlawfully possessing firearms, which police uncovered while responding to a domestic-violence incident.
According to the plea agreement, on October 21, 2020, the St. Louis Metropolitan Police Department ("SLMPD") received a domestic-disturbance call from a woman who reported that her boyfriend had pointed a gun at her and threatened to kill her. The officers entered the home as Tobius exited the upstairs bathroom, and he was taken into custody. Officers then searched the bathroom and found a loaded 9mm Glock 17 GEN5 handgun with a large-capacity magazine. Additionally, officers recovered a similar 9mm Glock 17 GEN4 handgun, also loaded with a large-capacity magazine, on top of a dresser near the top of the stairs. Tobius was prohibited from possessing a firearm as a previously convicted felon. Tobius also admitted to obstructing justice by repeatedly calling the victim and pressuring to recant while he was in jail.
This case was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
The case was investigated by the St. Louis Metropolitan Police Department. The matter was prosecuted by Assistant United States Attorney Zachary Bluestone.
South Bay Man Pleads Guilty to Participating in a Multimillion-Dollar Real Estate Scam Involving Fake Open Houses at Not-for-Sale HomesRead the Press Release
LOS ANGELES – A South Bay man pleaded guilty today to a federal criminal charge for participating with his sister in a $6 million real estate scam that involved listing homes without the owners’ consent and collecting money from multiple would-be buyers for each of the not-for-sale homes.
Adolfo Schoneke, 44, of Torrance, pleaded guilty to one count of conspiracy to commit wire fraud.
United States District Judge R. Gary Klausner has scheduled an August 8 sentencing hearing, at which time Schoneke will face a statutory maximum sentence of 20 years in federal prison.
On April 4, Schoneke’s sister, Bianca Gonzalez, 39, a.k.a. Blanca Schoneke, pleaded guilty to the same criminal charge. Her sentencing hearing is scheduled for October 3.
According to court papers, from November 2013 to December 2016, Schoneke and Gonzalez, along with co-conspirators, operated real estate and escrow companies based in Cerritos, La Palma and Long Beach under a variety of names, including MCR and West Coast Realty Services. Schoneke, Gonzalez and other co-conspirators found properties that they would list for sale – even though they did not intend to sell them to anyone.
The properties were listed on real estate websites such as the Multiple Listing Service (MLS) and were marketed as below-market short sales opportunities. In some cases, the homes were marketed through open houses arranged by tricking homeowners into allowing their homes to be used.
Multiple offers were accepted for each of the not-for-sale properties, but the co-conspirators hid this fact from the victims and instead led each victim to believe that his or her offer was the only one accepted. The co-conspirators strung victims along – sometimes for years – by telling them closings were being delayed because lenders needed to approve the purported short sales.
At the co-conspirators’ direction, office workers opened bank accounts to hide the co-conspirators’ involvement in the fraud. Those accounts were used to receive down payments on the homes and other payments from victims who were convinced to transfer the full “purchase price” after receiving forged short sale approval letters. The co-conspirators directed the office workers to withdraw large amounts of cash from these accounts, which made the proceeds harder to trace.
Investigators estimate that several hundred victims collectively lost more than $6 million during the scheme.
A co-conspirator, Mario Gonzalez, 50, was charged in a related case and pleaded guilty in January 2019 to conspiracy to commit wire fraud. His sentencing is scheduled for October 3.
The FBI and the Federal Deposit Insurance Corporation, Office of Inspector General investigated this matter. The investigation was initiated by numerous complaints to the Long Beach Police Department and the Los Angeles County Sheriff’s Department, both of which provided substantial assistance during the federal investigation.
Assistant United States Attorney Kerry L. Quinn of the Major Frauds Section is prosecuting this case.
Soldier in training at Fort Gordon admits distributing child pornographyRead the Press Release
AUGUSTA, GA: A U.S. Army soldier in training at Fort Gordon awaits sentencing after admitting he distributed child pornography.
Joshua Gamble, 29, of Fort Gordon, pled guilty to Distribution of Child Pornography, said David H. Estes, U.S. Attorney for the Southern District of Georgia. The guilty plea subjects Gamble to a statutory minimum penalty of five years in prison, up to 20 years, along with substantial financial penalties and restitution, registration as a sex offender, and a significant period of supervised release after completion of his prison term. There is no parole in the federal system.
“Our vigilant law enforcement partners continue to identify and intercept online predators who engage in online exploitation of children,” said U.S. Attorney Estes. “We will be unrelenting in pursuing those who would victimize the most vulnerable among us.”
FBI agents investigating illegal distribution of child pornography via an Internet chat application arrested Gamble in in October on a complaint based on activity that took place on Aug. 10 and 11, 2021.
“A child is re-victimized every time pornographic images of that child are shared,” said Philip Wislar, Acting Special Agent in Charge of FBI Atlanta. “The FBI is always prepared to do everything in our power, with a sense of urgency, to protect innocent children from being exploited by predators.”
The case is being investigated by the FBI, and prosecuted for the United States by Assistant U.S. Attorney and Project Safe Childhood Coordinator Tara M. Lyons.
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 800-843-5678, or https://report.cybertip.org/.
Shasta County Couple Sentenced for Conspiring to Subject Mother and Her Two Daughters to Forced LaborRead the Press Release
Nery A. Martinez Vasquez, 54, and Maura N. Martinez, 54, both of Shasta Lake, California, were both sentenced today for conspiring to subject three victims to forced labor, a crime to which the defendants had previously pleaded guilty. Vasquez was sentenced to six and a half years in prison and Martinez was sentenced to three years in prison. Both defendants were also sentenced to three years of supervised release and a fine of $25,000. The couple was also required to pay $300,000 in restitution to seven total victims. Assistant Attorney General Kristen Clarke and U.S. Attorney Phillip A. Talbert made the announcement.
According to court documents, from September 2016 to February 2018, the defendants — who owned and operated a restaurant and janitorial service — used various coercive means to force their victims into working long hours of physically demanding work, seven days a week, for minimal to no pay. In August 2016, the defendants convinced the victims, a Guatemalan relative and her two minor daughters, ages 15 and 8, to come to the United States by falsely promising the victims a better life and arranging for them to enter the United States and overstay their temporary visitor visas. The defendants then conspired with each other to impose an inflated debt on the victims that they required the victims to pay back through working for them. When the adult victim complained and expressed an interest in leaving, the defendants threatened to have the victims arrested for overstaying their visas unless they continued working the same long hours, seven days a week, for little pay.
Similarly, the defendants kept the two minor victims working at their businesses instead of attending school by telling the victims that immigration authorities would find and arrest them if the minor victims attempted to go to school. The defendants housed the victims in a dilapidated, unheated trailer with no running water, and degraded and humiliated them in front of others. Finally, the defendants used force and threats of force to intimidate the victims. For instance, Nery Martinez Vasquez beat the children with a stick that had the children’s name and nickname written on it along with the phrase “what goes up, must come down.”
“These defendants used the promise of a better life to lure a mother and her children to travel to the United States, only to betray their familial relationship and exploit the victims’ precarious situation to cruelly oppress and degrade them, and to turn a profit off their backs,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Forced labor has no place in our civilized society. This sentencing makes clear our commitment to holding perpetrators accountable and our dedication to eradicating human trafficking.”
“These defendants exploited vulnerable victims, forcing them to work in their businesses, failing to pay wages, and depriving them of basic human rights,” said U.S. Attorney Phillip A. Talbert for the Eastern District of California. “Now they have been sentenced to years in prison and have paid hundreds of thousands of dollars in restitution to their victims. The U.S. Attorney’s Office continues its commitment to protect and defend vulnerable members of our society from human trafficking, and we appreciate the partnerships we have with the Civil Rights Division and the FBI that led to the result in this case.”
“We hope today’s sentencing will offer the victims confidence as they continue to reclaim their lives. Forced labor, a form of human trafficking, is of significant concern for the FBI, but is difficult to identify and investigate without cooperation of fearful victims who believe escape is not an option because of the lies they have been told by their exploiters,” said Special Agent in Charge Sean Ragan for the FBI Sacramento Field Division. “This case highlights how such crimes may occur in public view at a legitimate business yet go unnoticed. The FBI is deeply commitment to seeking justice for all victims of human trafficking — regardless of immigration status or background — to ensure victims receive the care and support they need to break free from their exploiters.”
This case is the product of an investigation by the FBI. Assistant U.S. Attorneys Katherine T. Lydon and Audrey Hemesath, and Trial Attorney Avner Shapiro of the Civil Rights Division prosecuted the case.
San Antonio Man Sentenced for Straw Purchase SchemeRead the Press Release
SAN ANTONIO – Charles Anthony Lecara, aka “Eric,” “Bloodhound,” 43, of San Antonio was sentenced today to 87 months in prison for aiding and abetting false statements in connection with firearm purchases.
According to court documents, between March and June 2018, Lecara conspired with others to purchase firearms by making false statements and representations to firearm dealers. The co-conspirators acted as straw purchasers, claiming the guns were purchased by them for their use. However, Lecara directed the conspirators on which firearms to purchase, focusing on firearms popular with Mexican cartels, and took possession of them shortly after they were purchased. In August 2018, numerous firearms purchased on Lecara’s behalf were recovered in a stash location in San Antonio along with a significant amount of crystal methamphetamine.
On January 13, 2022, Lecara pleaded guilty to three counts of aiding and abetting false statements in connection with the acquisition of firearms. Lecara has remained in federal custody since his arrest on July 22, 2021.
“This case illustrates why our office and law enforcement partners are committed to prosecuting those who violate federal firearms laws,” said U.S. Attorney Ashley C. Hoff. “Lying and buying schemes such as this endanger the public and offenders who sign on the dotted line should expect to do hard time.”
“The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) has no greater mission than keeping firearms out of the hands of criminals. This case not only demonstrates the lengths to which criminals will go to acquire firearms, but more importantly, ATF’s expertise and commitment to investigating such violations of federal law,” said ATF Special Agent in Charge Fred Milanowski. “In partnership with Homeland Security Investigations (HSI) and the United States Attorney’s Office, we will continue to work tirelessly to bring those who disregard the safety of our communities to justice.”
“By putting weapons smugglers behind bars, law enforcement disrupts the supply of firearms before they fall into the hands of violent drug cartels who pose a threat both here and abroad,” said Shane Folden, Special Agent in Charge, Homeland Security Investigations, San Antonio. “HSI will continue working with our federal law enforcement partners both domestic and international in this effort.”
The ATF and HSI, along with valuable assistance from the Texas Department of Public Safety, investigated the case.
Assistant U.S. Attorneys Joseph Lo Galbo, Eric Yuen and Karina O’Daniel prosecuted the case.
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.
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Ryan K. Buchanan sworn in as U.S. Attorney for the Northern District of GeorgiaRead the Press Release
ATLANTA – Ryan K. Buchanan has been sworn in as the U.S. Attorney for the Northern District of Georgia. U.S. District Judge Thomas W. Thrash, Jr., administered the oath of office in a private ceremony. President Joseph R. Biden, Jr., nominated Buchanan to be the U.S. Attorney on November 15, 2021. The U.S. Senate confirmed his nomination on April 27, 2022.
“I am honored to serve as U.S. Attorney for the Northern District of Georgia,” said U.S. Attorney Buchanan. “I am grateful to President Biden for the opportunity to lead a dynamic and talented team of public servants who are dedicated to the pursuit of justice and ensuring the safety of our community. I am also thankful for the recommendation and support of Senator Ossoff and Senator Warnock during the confirmation process. This office has a long tradition of working closely with our law enforcement and community partners, the defense bar, and the court in serving this district. I look forward to maintaining and strengthening those relationships.”
As the chief federal law enforcement official in the Northern District of Georgia, U.S. Attorney Buchanan oversees the investigation and litigation of all criminal and civil cases brought in the district on behalf of the United States. He leads a team of approximately 250 prosecutors and staff in its mission to enforce federal criminal law, advocate for the victims of crimes, and represent the United States’ interests in federal court.
U.S. Attorney Buchanan joined the Department of Justice in 2010 as an Assistant U.S. Attorney in the Northern District of Alabama. He has served as an Assistant U.S. Attorney in the Northern District of Georgia since 2013 and has held the positions of National Security and Anti-Terrorism Council Coordinator and Deputy Chief of the Violent Crime and National Security Section.
During his career, U.S. Attorney Buchanan successfully prosecuted cases involving foreign terrorist organizations and attempts by domestic terrorists to acquire weapons of mass destruction. He has also handled cases involving organized crime and racketeering, robbery, kidnapping, carjacking, exploitation of children, and other violent crimes.
Prior to joining the Department of Justice, U.S. Attorney Buchanan worked in private practice at McGuireWoods LLP. He also served as a law clerk to the Honorable Inge P. Johnson of the U.S. District Court for the Northern District of Alabama. Buchanan received his J.D. from Vanderbilt University Law School in 2005 and his B.S. from Samford University in 2001.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Rewards Offered for Capture and Conviction of Leaders of Honduran Drug Trafficking OperationRead the Press Release
Note: To download fugitive reward posters in English and Spanish, click on: Tito Montes Bobadilla, Herlinda Bobadilla, and Juan Carlos Montes Bobadilla.
Today, the U.S. Department of State announced a reward of up to $5 million each for information leading to the arrest and conviction of three Honduran nationals indicted in the Eastern District of Virginia on charges stemming from their roles as leading figures in a drug-trafficking operation.
On Oct. 8, 2015, a federal grand jury returned an indictment charging Tito Montes-Bobadilla, aka Alejandro Montes-Bobadilla or Pimpi, 32; Herlinda Bobadilla, aka Erlinda Ramos-Bobadilla or Chinda, 61; Juan Carlos Montes-Bobadilla, aka Mono, 35; Noe Montes-Bobadilla aka Ton, 38; and two others with conspiracy to distribute five kilograms or more of cocaine. The Department of State is offering $5 million for information leading to the arrest and/or conviction of Tito Montes-Bobadilla, Herlinda Bobadilla, or Juan Carlos Montes Bobadilla. The three Bobadillas are currently fugitives and are believed to be armed and dangerous.
According to court documents and allegations in the indictment, from 2006 until the date of the indictment, Juan Carlos Montes-Bobadilla, his mother Herlinda Bobadilla, and his brother Tito Montes-Bobadilla allegedly were leaders in the Montes-Bobadilla drug-trafficking organization (DTO), or “Los Montes,” one of the largest drug cartels in Honduras. Noe Montes-Bobadilla led the Montes DTO prior to his arrest and extradition to the United States in 2017. Noe Montes-Bobadilla’s brothers, Tito Montes-Bobadilla and Juan Carlos Montes-Bobadilla, allegedly led cells within the DTO with their own supply and distribution networks. Their mother, Herlinda Bobadilla, allegedly assisted her sons in the importation, transportation, and distribution of cocaine. Through these efforts, the Montes DTO allegedly distributed thousands of kilograms of cocaine destined for the United States.
The Montes DTO allegedly had its base of operations around Francia, Honduras, in the Department of Colón. The Montes DTO allegedly received shipments of cocaine via boats, clandestine aircraft, and even submarines by South American suppliers. Individual shipments allegedly carried hundreds of, and sometimes more than a thousand kilograms of cocaine. The Montes DTO allegedly worked closely with other drug-trafficking organizations to import the cocaine in Honduras and transport it north through Central America and Mexico to the United States.
After his extradition, Noe Montes-Bobadilla was convicted, and, in April 2019, sentenced to 37 years’ imprisonment on the drug-trafficking charge.
If you have information regarding this case, please contact the U.S. Drug Enforcement Administration (DEA) at +504-9452 4032 or +504-9430 7106, which can accept messages from the social messaging applications WhatsApp and Signal, or by email at [email protected]. If you are located outside of the United States, please contact the nearest U.S. Embassy or Consulate. If in the United States, please contact the local DEA office in your city.
Assistant U.S. Attorneys James L. Trump, Thomas W. Traxler, and Anthony Aminoff of the Eastern District of Virginia and Trial Attorneys Teresita Mutton and Douglas Meisel of the Criminal Division’s Narcotic and Dangerous Drug Section are prosecuting the case. The Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest and extradition of Noe Montes-Bobadilla.
This case is being investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) Operation Harpoon.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Rewards Offered for Capture and Conviction of Leaders of Honduran Drug Trafficking OperationRead the Press Release
ALEXANDRIA, Va. – Today the U.S. Department of State announced a reward of up to $5 million each for information leading to the arrest and conviction of three Honduran nationals indicted in the Eastern District of Virginia on charges stemming from their roles as leading figures in a drug-trafficking operation.
On October 8, 2015, a federal grand jury returned an indictment charging Tito Montes-Bobadilla, aka Alejandro Montes-Bobadilla or Pimpi, 32; Herlinda Bobadilla, aka Erlinda Ramos-Bobadilla or Chinda, 61; Juan Carlos Montes-Bobadilla, aka Mono, 35; Noe Montes-Bobadilla aka Ton, 38; and two others with conspiracy to distribute five kilograms or more of cocaine. The Department of State is offering $5 million for information leading to the arrest and/or conviction of Tito Montes-Bobadilla, Herlinda Bobadilla, or Juan Carlos Montes Bobadilla. The three Bobadillas are currently fugitives and are believed to be armed and dangerous.
According to court documents and allegations in the indictment, from 2006 until the date of the indictment, Juan Carlos Montes-Bobadilla, his mother Herlinda Bobadilla, and his brother Tito Montes-Bobadilla allegedly were leaders in the Montes-Bobadilla drug-trafficking organization (DTO), or “Los Montes,” one of the largest drug cartels in Honduras. Noe Montes-Bobadilla led the Montes DTO prior to his arrest and extradition to the United States in 2017. Noe Montes-Bobadilla’s brothers, Tito Montes-Bobadilla and Juan Carlos Montes-Bobadilla, allegedly led cells within the DTO with their own supply and distribution networks. Their mother, Herlinda Bobadilla, allegedly assisted her sons in the importation, transportation, and distribution of cocaine. Through these efforts, the Montes DTO allegedly distributed thousands of kilograms of cocaine destined for the United States.
The Montes DTO allegedly had its base of operations around Francia, Honduras, in the Department of Colón. The Montes DTO allegedly received shipments of cocaine via boats, clandestine aircraft, and even submarines by South American suppliers. Individual shipments allegedly carried hundreds of, and sometimes more than a thousand kilograms of cocaine. The Montes DTO allegedly worked closely with other drug-trafficking organizations to import the cocaine in Honduras and transport it north through Central America and Mexico to the United States.
After his extradition, Noe Montes-Bobadilla was convicted, and, in April 2019, sentenced to 37 years’ imprisonment on the drug-trafficking charge.
If you have information regarding this case, please contact the U.S. Drug Enforcement Administration (DEA) at +504-9452 4032 or +504-9430 7106, which can accept messages from the social messaging applications WhatsApp and Signal, or by email at [email protected]. If you are located outside of the United States, please contact the nearest U.S. Embassy or Consulate. If in the United States, please contact the local DEA office in your city.
Assistant U.S. Attorneys James L. Trump, Thomas W. Traxler, and Anthony Aminoff of the Eastern District of Virginia and Trial Attorneys Teresita Mutton and Douglas Meisel of the Criminal Division’s Narcotic and Dangerous Drug Section are prosecuting the case. The Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest and extradition of Noe Montes-Bobadilla.
This case is being investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) Operation Harpoon. 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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-290.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Rapid City Man Sentenced to Federal Prison for Illegal Possession of FirearmsRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Rapid City, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on April 28, 2022, by Judge Jeffrey L. Viken, U.S. District Court.
Seth Noll, age 29, was sentenced to 42 months in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Noll was indicted by a federal grand jury on July 22, 2021, and pleaded guilty on November 12, 2021. The charge stems from Noll, a previously convicted felon who is prohibited from possessing firearms, illegally possessing a Phoenix Arms, model HP22S, .22 Long Rifle caliber, semi-automatic pistol, a Davis Industries, model DM-22, .22 Long Rifle caliber, over-under derringer, and a Savage Arms Incorporated, .22 Long Rifle caliber, semi-automatic rifle, which were found after Noll came into contact with law enforcement in June 2021 in Rapid City.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Noll was immediately remanded to the custody of the U.S. Marshals Service.
Rapid City Man Charged with Illegal Possession of FirearmRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Possession of a Stolen Firearm.
Login Cook, age 19, was indicted on April 21, 2022. He appeared before U.S. Magistrate Judge Daneta Wollmann on April 29, 2022, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is 10 years in federal prison and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge stems from Cook knowingly possessing a stolen Glock 9mm semi-automatic pistol in December 2021 in Rapid City. The charge is merely an accusation and Cook is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.
Cook was detained pending trial. A trial date has not been set.
Randolph County man admits to drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – Richard Scott Connally, of Montrose, West Virginia, has admitted to a drug charge, United States Attorney William Ihlenfeld announced.
Connally, 33, pleaded guilty today to today on one count of “Possession with Intent to Distribute at Least Fifty Grams of Methamphetamine.” Connally admitted to having more than 50 grams of methamphetamine in October 2019 in Randolph County.
As a part of the plea agreement, Connally agreed to forfeit a 9mm pistol, 11 rounds of 9mm ammunition, and $940 cash.
Connally faces at least 10 years and up to life incarceration and a fine of up to $10 million. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen. D. Warner is prosecuting the case on behalf of the government. The Mountain Region Drug Task Force and the Randolph County Sheriff’s Office investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Prolific Philadelphia Meth Dealer Convicted at Trial of Multiple Drug OffensesRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Arthur Rowland, a/k/a “Bo,” 41, of Philadelphia, PA, was convicted after trial of multiple narcotics offenses, along with his earlier conviction for being a felon-in-possession of a firearm, arising from his participation in a large scale interstate methamphetamine distribution conspiracy.
In December 2018, the defendant was arrested pursuant to an Indictment charging him and four other individuals with conspiracy to distribute methamphetamine and related charges. Ultimately, a second Superseding Indictment charged Rowland and five others with participating in a methamphetamine distribution conspiracy that acquired hundreds of pounds of Mexican methamphetamine in Los Angeles, shipped the illegal narcotics back to the Philadelphia area for distribution here, and in turn transferred many thousands of dollars back to the California-based sellers to pay for that methamphetamine. In addition to the drug conspiracy, Rowland was also charged with possessing with intent to distribute about nine pounds of methamphetamine from packages that he had shipped to multiple Philadelphia-area locations, and with possessing two AK-47 style assault type weapons and a semi-automatic handgun while being a felon, and with using those same weapons in furtherance of his drug trafficking activities.
“Rowland and his co-conspirators shipped tons of drugs from one end of this country to the other through a large and sophisticated trafficking enterprise,” said U.S. Attorney Williams. “Today’s conviction demonstrates our Office’s commitment to taking down these types of criminal organizations and cutting off the supply of deadly drugs in order to keep our communities safe.”
“Arthur Rowland was part of a conspiracy that saw vast amounts of meth brought into and sold in the Philadelphia area,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “This conviction is a win for the FBI and all of our partners as we work together to get dangerous drugs and criminals off the street. The ultimate goal here is to eliminate the drug trade and concomitant gun violence plaguing so many communities.”
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorneys Paul Shapiro and Timothy Stengel.
Presque Isle Man Sentenced for Methamphetamine TraffickingRead the Press Release
BANGOR, Maine: A Presque Isle man was sentenced in federal court today for conspiring to distribute and possess with intent to distribute methamphetamine and for possessing methamphetamine with intent to distribute, U.S. Attorney Darcie N. McElwee announced.
U.S. District Judge Lance E. Walker sentenced Robert Poliero, a/k/a “Charlie,” 58, to 18 years in prison and five years of supervised release.
According to court records, between approximately July 2018 and May 2019, Poliero and others conspired to distribute and possess with intent to distribute methamphetamine. Poliero personally traveled to Georgia on at least two occasions to obtain methamphetamine. Once he transported the drugs back to Maine, he and his co-conspirators distributed them in Aroostook County.
On May 19, 2019, Poliero was returning from one such trip to Georgia with another person. Poliero intended to bring a large quantity of methamphetamine back to northern Maine for distribution. The Maine State Police stopped the vehicle in which Poliero was traveling. A search of the vehicle resulted in the seizure of approximately 6,100 grams of a mixture containing methamphetamine. While on federal bail for this offense, Poliero was arrested on a new aggravated drug trafficking charge prosecuted by the Aroostook County District Attorney’s Office.
The U.S. Drug Enforcement Administration, Homeland Security Investigations, the Maine Drug Enforcement Agency, and the Maine State Police investigated these cases with the assistance of multiple state and local law enforcement agencies.
The U.S. Attorney’s Office appreciates the assistance of the Aroostook County District Attorney’s Office with these cases.
Organized Crime Drug Enforcement Task Forces: This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Ponchatoula Man Sentenced in Federal Court for Attempted Enticement of a MinorRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced that U.S. District Judge Brian A. Jackson sentenced Jaime Aaron Sousa, age 28, of Ponchatoula, Louisiana, to 120 months in federal prison following his conviction for attempted enticement of a minor. The Court further sentenced Sousa to serve a period of five years supervised release, which includes sex offender registration requirements, following his term of imprisonment.
According to admissions made during his plea, in January 2021, Sousa utilized a social media application to communicate with and sexually pursue an individual whom he believed to be a 13-year-old girl. Throughout his communications, Sousa sent sexually explicit messages and photographs to the purported minor, he pressured the purported minor to send him sexually explicit photographs, and he coerced the purported minor to meet him to engage in sexual activity. Sousa then traveled to a location in Baton Rouge with the intent to engage in sexual activity with the purported minor, where he was ultimately arrested by federal and state law enforcement officials.
This matter was investigated by the Federal Bureau of Investigation, Homeland Security Investigations, the Louisiana Bureau of Investigations, Louisiana State Police, and the East Baton Rouge Parish Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Jamie A. Flowers Jr., who also serves as Chief of the Criminal Division.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
Ottawa County Man Sentenced for Sexually Abusing of a MinorRead the Press Release
TULSA, Okla. – A man who contacted Ottawa County authorities to report that he sexually abused a minor was sentenced Monday in federal court, announced U.S. Attorney Clint Johnson.
Jeremy Brandon Lawhorn, 39, was sentenced to 30 months in federal prison followed by 10 years of supervised release for the sexual abuse of a minor in Indian Country.
On Aug. 19, 2020, Lawhorn contacted the Ottawa County Sheriff’s Office to report that he needed to confess to a crime. After being informed of his Miranda rights, he told officers that on Aug. 14, 2020, he touched a 12-year-old minor in a sexual manner. He told officers that he touched the child under her shirt and sweatpants. He understood the contact was unwanted and said he felt sorry for what he’d done.
“Jeremy Lawhorn violated a child’s trust and innocence. Thankfully, the abuse was stopped and this victim was protected from further harm,” said U.S. Attorney Clint Johnson. “I am grateful for our law enforcement partners and victim advocates who investigate these difficult cases and offer critical support to victims every day in communities across northeastern Oklahoma.”
Lawhorn was originally charged in Ottawa County District Court, but in October 2021, the case was dismissed due to lack of jurisdiction. Lawhorn is a Cherokee Nation citizen, and the crime occurred within the boundaries of the Quapaw Nation reservation. The case was indicted in federal court on Dec. 6, 2021.
The FBI and Ottawa County Sheriff’s Office conducted the investigation. Assistant U.S. Attorney John E. Brasher prosecuted the case.
Newark Landlords Agree to Pay $430,000 to Settle Allegations of Collecting Excess Rent in Sparrow RunRead the Press Release
WILMINGTON, Del. – U.S. Attorney David C. Weiss announced today that landlords Goodfish Enterprises, LLC; Reliant Property Management Company; and Christopher Lukacs have agreed to pay $430,000 to resolve allegations that they violated the False Claims Act during their participation in the U.S. Department of Housing and Urban Development’s Housing Choice Voucher Program (HCVP), commonly known as “Section 8.” The HCVP is the federal government’s primary program for helping low-income families, the elderly, and the disabled to afford decent, safe, and sanitary housing in the private market.
Goodfish, Reliant, and Lukacs own more than 90 properties in the Sparrow Run housing development in Newark, Delaware, many of which have been leased to low-income residents receiving rental assistance through the HCVP. HCVP regulations require landlords to certify that they are not charging a higher rent to HCVP tenants than they charge to unassisted tenants in comparable housing units. In a lawsuit filed in December 2020, the United States alleged that, going back to at least January 2015, Goodfish, Reliant, and Lukacs had charged HCVP participants higher rents than unassisted tenants. The United States also alleged that Goodfish and Lukacs provided false information on HCVP forms regarding the rents they received from unassisted tenants to justify the inflated rents they sought to charge for HCVP rentals. As part of the settlement agreement, Reliant and Goodfish also agreed to reduce the rents being charged to certain current tenants.
“By illegally charging higher rents to residents receiving housing assistance than to residents who require no assistance, landlords overcharge the federal government and take money that should be used to help additional needy families,” said U.S. Attorney Weiss. “This settlement demonstrates that, together with our agency partners, my office will aggressively pursue those who attempt to profit by ignoring the laws that ensure that public money is not wasted.”
“The Department of Housing and Urban Development, Office of Inspector General is committed to working with the Department of Justice and our law enforcement and housing partners to ensure that federal funds intended to help low-income families are not wasted or misapplied,” said Special Agent-in-Charge Shawn Rice. “HUD OIG also commends the New Castle County Police and the New Castle County Housing Authority who provided assistance in this investigation. Today’s settlement demonstrates the Government’s commitment to protecting the integrity of HUD programs against fraud, waste, or abuse.”
This matter was investigated by the U.S. Department of Housing and Urban Development Office of Inspector General. The litigation was handled by Assistant U.S. Attorney Dylan J. Steinberg.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 20-cv-01722-RGA.
New York Man Involved in Burglary Ring Sentenced to 54 Months in Federal PrisonRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that DOUGLAS NOBLE, 28, of New York, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 54 months of imprisonment, followed by three years of supervised release, for his participation in the theft of millions of dollars in vehicles, phones, ATMs and other merchandise from numerous locations in Connecticut, New York and elsewhere.
According to court documents and statements made in court, Noble was a member of a theft ring that, between June 2020 and January 2021, primarily burglarized car dealerships and mobile phone stores in Connecticut and New York. From dealerships they stole vehicle key fobs and vehicles, and from mobile phone stores they stole cell phones, electronics and other merchandise. Conspiracy members also stole ATMs from check cashing businesses and burglarized video game stores.
Noble and his co-conspirators often burglarized multiple locations in one night and, on numerous occasions, escaped from police by engaging the police in high-speed chases that had to be terminated for safety reasons. Some of Noble’s co-conspirators also possessed firearms.
Members of the theft ring are suspected to have committed more than 180 burglaries and stolen more than $4 million in property.
On January 3, 2021, Noble was arrested on related state charges on Long Island after Nassau County Police responded to the scene of a burglary in progress. Noble was a passenger in a stolen Chevy Silverado that attempted to flee police and struck two cars before it came to a stop. Investigators found several stolen iPads and iPhones inside the vehicle, and a stolen ATM in the truck bed.
On February 16, 2021, Noble and three co-conspirators were charged in a 13-count superseding indictment. A fourth co-conspirator was subsequently charged.
Noble was arrested on March 22, 2021. On February 7, 2022, he pleaded guilty to one count of possession of stolen property.
Noble, who was living in the Bronx at time of his arrest and is currently residing in Brooklyn while released on a $100,000 bond, is required to report to prison on July 6.
This investigation is being conducted by the Federal Bureau of Investigation and Connecticut State Police, with the assistance of approximately 30 local police departments.
This case is being prosecuted by Assistant U.S. Attorneys Robert S. Ruff and Ray Miller.
New Jersey Man Pleads Guilty to Filing False Tax ReturnRead the Press Release
A New Jersey man pleaded guilty today to filing a false corporate tax return with the IRS.
According to court documents and statements made in court, Gabriel Ferrari, of Edison, owned Buses and Trucks Inc. (B&T), an automotive repair business located in Edison. Ferrari used B&T funds to pay for personal items, including gambling on horse races. He did not inform his tax preparer about the diverted corporate funds for tax years 2011 through 2014 and, as a result, B&T’s corporate tax returns and his personal income tax returns for each of these years were false.
Ferrari is scheduled to be sentenced on Sept. 14 and faces a maximum penalty of 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 made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorney Ann M. Cherry of the Tax Division and Assistant U.S. Attorney Andrew Trombly of the U.S. Attorney’s Office for the District of New Jersey are prosecuting the case.
Navajo man arraigned on charges of aggravated sexual abuse of a child in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Brandon Yazzie, 28, of Standing Rock, New Mexico, and an enrolled member of the Navajo Nation, was arraigned in federal court on April 28 on a four-count indictment charging him with three counts of aggravated sexual abuse and one count of abusive sexual contact. Yazzie will remain on conditions of release pending trial, which has not been scheduled.
A federal grand jury indicted Yazzie on April 12. According to the indictment and other court records, on at least two occasions between December 1, 2020, and January 31, 2021, Yazzie allegedly sexually abused the victim, identified in court records as Jane Doe, who was less than 12 years old. On one occasion, Yazzie allegedly engaged in and caused sexual contact with the victim. Yazzie allegedly committed the crimes at his father’s residence in Standing Rock on the Navajo Nation.
An indictment is only an allegation. A defendant is considered innocent unless and until proven guilty. If convicted, Yazzie faces up to life in prison for abusive sexual contact and a minimum of 30 years and up to life in prison for aggravated sexual abuse.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Avondale (Arizona) Police Department. Assistant United States Attorney Alexander F. Flores is prosecuting the case.
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Middlesex County Man Admits Filing False Corporate Tax ReturnRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey man today admitted to filing a false tax return on behalf of his company, U.S. Attorney Philip R. Sellinger, Acting Assistant Attorney General David A. Hubbert, and Acting Deputy Assistant Attorney General Stuart M. Goldberg announced.
Gabriel M. Ferrari, 64, of Edison, New Jersey, pleaded guilty by videoconference before U.S. District Judge Stanley R. Chesler to Count Four of an indictment that charged him with subscribing to a false tax return.
According to documents filed in this case and statements made in court:
Ferrari was the sole owner of Buses and Trucks Inc., an automotive repair business in Linden, New Jersey. In January 2015, Ferrari subscribed to and caused to be filed a corporate tax return for Buses and Trucks for tax year 2011. As Ferrari knew at the time, that return was false in that it understated Buses and Trucks’ gross receipts for tax year 2011. In fact, Ferrari had diverted Buses and Trucks’ gross receipts to pay personal expenses, including gambling on horse races, and did not report those diverted receipts on the Buses and Trucks 2011 corporate tax return.
The charge of subscribing to a false tax return carries a maximum potential penalty of three years in prison and a maximum fine of $250,000. Sentencing is set for Sept. 14, 2022.
U.S. Attorney Sellinger, Acting Assistant Attorney General Hubbert, and Acting Deputy Assistant Attorney General Goldberg credited special agents of IRS Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Andrew M. Trombly of the Cybercrime Unit in Newark and by Trial Attorney Ann M. Cherry of the Tax Division in Washington, D.C.
Michigan Man Sentenced to 22 and a Half Years in Prison for Production, Possession, Receipt and Distribution of Child PornographyRead the Press Release
Acting U.S. Attorney Michelle M. Baeppler announced that John David Lewis, 28, of Allen Park, Michigan, was sentenced on Friday, April 29, 2022, by U.S. District Judge Jeffrey J. Helmick to twenty-two and a half years in prison after Lewis pleaded guilty to production, possession, receipt and distribution of child pornography.
According to court documents, in June of 2020, undercover federal agents engaged in an online conversation with a user, later identified as Lewis, involved in a social media group that shared videos and images of child pornography. Court records state that the undercover agent engaged in a conversation with Lewis and, during this time, determined that Lewis had produced and distributed child pornography involving a six-month-old infant.
Authorities were later able to locate and arrest Lewis at a Toledo-area residence after obtaining a search warrant. According to court documents, Lewis admitted to investigators that he had viewed, produced, and distributed child pornography.
Lewis was also prosecuted and convicted of rape in the Lucas County Court of Common Pleas and is currently serving a 15 years to life state sentence.
This case was investigated by Homeland Security Investigations Detroit Field Division. This case was prosecuted by Assistant U.S. Attorneys Tracey Ballard Tangeman and Deyana F. Unis.
Martinsburg woman admits to role in drug trafficking and firearms conspiracyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Hope Clemons, of Martinsburg, West Virginia, has admitted to a firearms charge, United States Attorney William Ihlenfeld announced.
Clemons, 31, pleaded guilty today to one count of “False Statement During Purchase of Firearms.” Clemons admitted to falsifying a form to purchase firearms for someone else in October 2019 in Berkeley County.
Clemons faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The FBI; U.S. Marshals Service; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms, & Explosives; the West Virginia Air National Guard; the Eastern Panhandle Drug Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Harpers Ferry Police Department; and the Metropolitan Police Department of Washington, D.C. investigated. The EPDTF consists of the West Virginia State Police, Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office, Ranson Police Department, the Charles Town Police Department, and the Martinsburg Police Department.
U.S. Magistrate Judge Robert W. Trumble presided.
Married Couple Facing Federal Indictment for a Series of Fraud Schemes, Including Passport Fraud, Wire Fraud, and Bankruptcy FraudRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging Andrews Oduro Brown, a/k/a Andrews Oduro, age 39, and Charmaine Miesha Brown, age 43, both of Germantown, Maryland, for conspiracies to commit passport fraud and wire fraud, aggravated identity theft, bankruptcy fraud, and making false statements in a bankruptcy proceeding. The indictment was returned on April 28, 2022, and unsealed upon the arrest of the defendants.
The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge Mark Lewis of the U.S. Department of the State’s Diplomatic Security Service, Washington Field Office; and Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division.
As detailed in the indictment, Andrews Oduro Brown, a/k/a Andrews Oduro was a Ghanaian national who entered the United States in May 2013. Oduro married Charmaine Miesha Brown, a United States citizen, in January 2014 and in 2021, obtained legal permanent resident status in the United States through his marriage to Brown. During this time, Oduro and Brown resided together with Oduro’s two children, Child A and Child B, and four of Brown’s children, including Child C.
According to the five-count indictment, from December 2014 through April 2021, Oduro and Brown conspired to obtain United States passports for non-United States citizen family members who were not entitled to receive such passports, through the use of false statements and fraudulent identity documents. Once passports were issued on the basis of the false and fraudulent applications, Oduro and Brown arranged for the transportation of non-United States citizen family members to the United States using the fraudulently issued passports.
For example, on December 1, 2014, Brown allegedly submitted an application for a passport in the name of her son, Child C, but bearing the photograph of Child A. The indictment alleges that Child A later used the fraudulent passport to enter the United States illegally. On March 16, 2015, Oduro and Brown allegedly applied for a passport in the name of Child A and submitted a fraudulent Ghanaian birth certificate, falsely stating that Brown was Child A’s mother, in support of the application. The indictment alleges that on March 17, 2020, Oduro and Brown applied for a passport in the name of Child B and again submitted a fraudulent Ghanaian birth certificate in support of the application that falsely stating that Brown was Child B’s mother. On August 5, 2015, Oduro also allegedly submitted a passport application in the name of a United States citizen, but bearing the photograph of Oduro’s sibling, who is not a United States citizen.
According to the indictment, from August 2016 through April 2021, Oduro and Brown conspired to receive Child Care Subsidy Program payments to which they were not entitled. The Child Care Subsidy Program provided reimbursement to low-income families for childcare and direct payments to both professional and informal providers of childcare to low-income families. The indictment alleges that Brown and Oduro falsely reported to the State of Maryland that Individual F, a friend, was watching their children, when in truth and in fact, Oduro assumed Individual F’s identity to pose as a paid childcare provider to his own child and stepchildren. The indictment alleges that Oduro and Brown used the personally identifying information (PII) of Individual F, without the victim’s knowledge or permission, to receive approximately $95,320 in Child Care Subsidy Program payments to which they were not entitled.
Finally, the indictment alleges that on March 5, 2018, Oduro and Brown defrauded creditors and the bankruptcy trustee, by filing a fraudulent Chapter 7 bankruptcy petition using the name and partial social security number of Individual F seeking the discharge of over $80,000 in debts and tax obligations to the State of Maryland that Oduro incurred using the name and PII of Individual F. On June 21, 2018, Oduro appeared at the discharge hearing in the bankruptcy court and identified himself as Individual F, presenting a Pennsylvania driver’s license Oduro had fraudulently obtained in the name of Individual F. As a result of the fraudulent bankruptcy petition in the name of Individual F, the indictment alleges that Oduro and Brown cause the entry of an order discharging approximately $49,317 in debt that Oduro incurred in the name of Individual F.
If convicted, Oduro and Brown each face a maximum sentence of 5 years in federal prison for conspiracy to commit passport fraud; a maximum of 20 years in federal prison for conspiracy to commit wire fraud; a mandatory sentence of two years in federal prison, consecutive to any other sentence imposed, for aggravated identity theft; a maximum of 5 years in prison for bankruptcy fraud; and a maximum of 5 years in prison for false statements in bankruptcy. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Erek L. Barron commended the State Department’s Diplomatic Security Service, and the Social Security Administration Office of Inspector General for their work in the investigation. Mr. Barron thanked Special Assistant U.S. Attorney Michael F. Davio, who is prosecuting 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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Las Cruces man pleads guilty to production of child pornographyRead the Press Release
ALBUQUERQUE, N.M. – Sean Patrick Fosler, 28, of Las Cruces, New Mexico, pleaded guilty on April 28 in federal court to production of child pornography. Fosler will remain in custody pending sentencing, which has not been scheduled.
According to the plea agreement and other court records, on May 7, 2021, Fosler recorded a video of a then eight-year-old child engaged in sexually explicit conduct. Fosler also appears in the video engaged in sexual conduct. In the plea agreement, Fosler admitted that he used snapchat to send the video to person in Texas.
Fosler faces a minimum of 15 years and up to 30 years in prison.
Homeland Security Investigations (HSI) investigated this case with assistance from the New Mexico State Police and the El Paso Police Department. Assistant United States Attorney Marisa A. Ong is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, 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 http://www.justice.gov/psc/.
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Interim September 11th Victim Compensation Fund (VCF) Special Master Appointed Following Departure of Rupa BhattacharyyaRead the Press Release
The Justice Department announced today the appointment of August E. Flentje as the interim Special Master of the September 11th Victim Compensation Fund (VCF). Rupa Bhattacharyya resigned as Special Master on April 29. The VCF was created by Congress to compensate those who suffered personal injuries or died as a result of the terrorist attacks of September 11, 2001, and the rescue, recovery, and debris removal efforts undertaken in the aftermath of the attacks.
“I want to convey my sincere appreciation for Rupa’s 27 years of dedicated public service,” said Attorney General Merrick B. Garland. “I am especially grateful for her service as Special Master for the September 11th VCF. In her six years as Special Master, Rupa enhanced the efficiency of this vital program, helped it achieve permanent status, and garnered the support of the 9/11 community and Members of Congress.”
Bhattacharyya was appointed to the position of VCF Special Master by the Attorney General in July 2016. She is a career civil servant who has held numerous leadership positions within the Department of Justice and the Department of the Treasury.
Under Bhattacharyya’s leadership, the VCF has significantly reduced the time it takes to review and decide a claim, and has awarded over $8 billion in compensation to more than 35,000 responders and survivors who have become sick or died because of their exposure to 9/11 toxins. Bhattacharyya helmed the program when a bipartisan Congress reauthorized the VCF in 2019 to accept claims until 2090 and appropriated to it such funds as may be necessary to pay all eligible claims, thus ensuring both the program’s financial stability and that it would remain operational to assist victims of the 9/11 terror attacks for decades to come.
The Attorney General appointed Flentje as the VCF’s Special Master on an interim basis while a search for a permanent Special Master is conducted. Flentje is a career civil service attorney with the Department’s Civil Division and has managed several Civil Division components for temporary periods, including the Torts Branch, through which the Civil Division has provided administrative oversight of VCF operations.
The Department does not expect any interruption in VCF claim review or in the issuance of awards during this interim period.
Learn more information on the VCF at: https://www.vcf.gov.
Inmate sentenced to 9 years in prison for mailing threats to state & local government officials, judges, newspapersRead the Press Release
COLUMBUS, Ohio – An Ohio inmate was sentenced in federal court to 108 months in prison for writing at least 15 threatening letters containing powder. In some of the letters, he claimed the powder was anthrax or fentanyl or threatened the use of explosive devices.
Sean Heisa, 39, mailed threatening letters while incarcerated to various officials throughout the state of Ohio from July 2017 to July 2018.
Heisa mailed a letter to the city manager of Painesville in August 2017 and claimed powder contained within the envelope was anthrax. In the letter, Heisa described several things that were going to happen: “#1 – You are going to have trouble breathing; #2- You are going to die; #3 – You are going to become a martyr for a cause and an organization far bigger than yourself.”
Likewise, Heisa mailed a second letter that month to a magistrate judge in Whitehall, again claiming the powder contained within the letter was anthrax.
Heisa also threatened via letter officials within the Coshocton Municipal Courthouse, Franklin County Common Pleas Court and then-Ohio Attorney General Mike DeWine through threatened exposure to anthrax and the use of explosive devices.
Other letters threatened to injure recipients – including the former Ohio prisons director, the Columbus Dispatch, the Circleville Herald and The Ohio State University – by exposure to purported fentanyl.
For example, one letter to a Fairfield County Common Pleas Court judge who had presided over several hearings involving Heisa (involving robbery charges for which Heisa is now serving a combined 37-year sentence) stated: “This is enough Fentanyl to kill you and multiple coworker [sic]. You deserve a more painful death but this will do”.
Heisa had access to what he believed to be fentanyl in prison and knew that if he could send enough fentanyl that it could kill someone, which is why he referenced it in many of his letters. Heisa chose to ingest the substance instead of mailing it.
Heisa was charged federally in December 2018 and pleaded guilty in October 2019 to making false information or hoaxes and mailing threatening communications.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division announced the sentence imposed by Chief U.S. District Court Judge Algenon L. Marbley. Assistant United States Attorney Jessica W. Knight is representing the United States in this case.
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Illinois Man Pleads Guilty to Participating in Multimillion-Dollar Fraud and Money Laundering SchemesRead the Press Release
BIRMINGHAM, Ala. – Today, an Illinois man pleaded guilty to charges stemming from his participation in fraudulent business email compromise and account takeover schemes that targeted victims around the United States, including businesses in the Northern District of Alabama, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr.
Adetona Lala, 38, of Country Club Hills, Illinois, pleaded guilty before U.S. District Judge Anna M. Manasco to one count of conspiracy to commit wire fraud and bank fraud and one count of conspiracy to commit money laundering. As part of his plea agreement, the defendant also agreed to forfeit approximately $2,310,330.33. Lala’s guilty plea brings the total number of defendants who have pleaded guilty in the case to six.
According to court documents, from December 2017 through February 2020, Lala participated in a wide-ranging conspiracy that targeted dozens of victims with business email compromise, account takeover, and other fraud schemes. During the course of the conspiracy, Lala employed “field officers” who traveled across the country opening up fraudulent bank accounts designed to receive transfers from fraud victims. Many of these accounts were opened using fake names, false identification documents, and shell companies to avoid detection and hide the true identities of the members of the conspiracy controlling the accounts. This account-opening activity was planned and organized by Lala. He identified financial institutions for his co-conspirators to target, created shell companies used in the scheme, forged tax forms and utility bills that were used to open the fraudulent bank accounts, helped procure false identification documents from co-conspirators in Illinois and Nigeria, and facilitated his co-conspirators’ travel to financial institutions across the United States. Collectively, Lala and his co-conspirators attempted to defraud victims out of more than $9.5 million.
According to the plea agreement, after receiving proceeds from these fraud schemes, Lala and his co-conspirators moved the funds between accounts to disguise their origin and conceal their fraudulent nature and then either transferred the proceeds to accounts in Nigeria or used them to purchase cryptocurrency or automobiles that were shipped overseas.
The maximum punishment for conspiracy to commit bank and wire fraud is 30 years in prison and a $1,000,000.00 fine. The maximum penalty for conspiracy to commit money laundering is 20 years in prison and a fine of $500,000 or twice the value of the funds involved, whichever is greater.
The FBI investigated the case. Assistant U.S. Attorneys Edward J. Canter and Catherine L. Crosby are prosecuting the case. The Illinois Attorney General’s Office, the Metropolitan Nashville and Davidson County Attorney General’s Office, and the U.S. Attorney’s Offices for the Southern District of Indiana, the Middle District of Georgia, and the Eastern District of Wisconsin provided assistance in the investigation.
Huntington Man Sentenced for Fentanyl-related Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man was sentenced today to two and one-half years in prison, to be followed by three years of supervised release, for the distribution of heroin.
According to court documents and statements made in court, Eric Mashawn McNeely, Jr., 30, sold approximately 2.97 grams of heroin with the presence of fentanyl during a controlled buy in Huntington on February 28, 2019.
United States Attorney Will Thompson made the announcement and commended the investigative efforts of the Huntington Violent Crime and Drug Task Force and the Huntington Police Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Ryan A. Keefe prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00122.
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Hudson County Man Sentenced to 22 Years in Prison for Distributing Heroin and Fentanyl in Prison, Resulting in Inmate OverdoseRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man was sentenced today to 264 months in prison for his role in trafficking heroin and fentanyl into a New Jersey state prison, resulting in the overdose of one of the inmates, U.S. Attorney Philip R. Sellinger announced.
Noel Salgado, aka “Kuko,” 41, was previously convicted of one count of conspiracy to distribute and possess with intent to distribute heroin and fentanyl and one count of distribution and possession with intent to distribute heroin and fentanyl, which resulted in serious bodily injury, following a four-day trial before U.S. District Judge William J. Martini, who imposed the sentence today in Newark federal court.
According to the documents filed in this case and the evidence at trial:
While incarcerated at Bayside State Prison, Salgado directed associates to provide narcotics proceeds to him and his associates and to smuggle narcotics into prison to distribute to other inmates.
On Oct. 17, 2015, Salgado called an associate from prison to arrange for the purchase and smuggling into the prison of heroin and fentanyl. Another conspirator picked up the narcotics and smuggled them to Salgado on Oct. 18, 2015. The following day, an inmate to whom Salgado had distributed the narcotics was found unresponsive in his cell suffering from a drug overdose. The inmate stopped breathing on his own and remained unconscious for approximately 20 minutes before medical personnel administered Narcan to revive him. The inmate was hospitalized for two days.
In addition to the prison term, Judge Martini sentenced Salgado to three years of supervised release.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Michael Messenger, and investigators with the N.J. Department of Corrections, under the direction of Acting Commissioner Victoria L. Kuhn, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Christopher D. Amore and Elaine K. Lou of the U.S. Attorney’s Office in Newark.
Houlton Man Sentenced on Federal Drug ChargesRead the Press Release
BANGOR, Maine: A Houlton man was sentenced in federal court today on two counts of distributing methamphetamine, one count of distributing 50 grams or more of methamphetamine, and one count of possessing 500 grams or more of methamphetamine with intent to distribute, U.S. Attorney Darcie N. McElwee announced.
U.S. District Judge Lance E. Walker sentenced Derek Fitzpatrick, 31, to 10 years in prison and five years of supervised release.
According to court records, Fitzpatrick sold methamphetamine to a confidential informant on two occasions in August 2018. In September 2018, Fitzpatrick sold more than 50 grams of methamphetamine to the informant. On September 28, 2018, law enforcement officers executed search warrants at Fitzpatrick’s residence in Houlton and his garage in Littleton. Agents seized almost 2,000 grams of methamphetamine from the residence.
The U.S. Drug Enforcement Administration, Homeland Security Investigations and the Maine Drug Enforcement Agency investigated this case, with the assistance of the Aroostook County Sheriff’s Office, the Houlton Police Department and the Maine State Police.
Organized Crime Drug Enforcement Task Forces: This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
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Hobart Man Sentenced to 57 Months in PrisonRead the Press Release
HAMMOND- Bruce Leipart, 39 years old, of Hobart, Indiana, was sentenced by United States District Court Judge James T. Moody on his plea of guilty to being a felon in possession of firearms, announced United States Attorney Clifford D. Johnson.
Leipart was sentenced to 57 months in prison followed by 2 years of supervised release.
According to documents in the case, in October 2018, law enforcement recovered six firearms and multiple extended magazines from Leipart’s residence. Leipart’s criminal history revealed he had a prior felony conviction for a controlled substance offense, and as such, was prohibited from possessing a firearm or ammunition.
This case was investigated by the United States Drug Enforcement Administration with the assistance of the Porter County Sheriff’s Department. This case was prosecuted by Assistant United States Attorney Caitlin M. Padula.
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.
Hillsborough County Man Pleads Guilty to Conspiracy to Commit Wire FraudRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Kelbin Tejeda (32, Tampa) pleaded guilty today to one count of conspiracy to commit wire fraud. Tejeda faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Tejeda owned and managed a construction company which he registered with the State of Florida in November 2018. This company purported to supply construction services and labor to work for construction site contractors and contractors. In order to comply with Florida law, Tejeda’s company was required to secure and maintain adequate worker’s compensation insurance coverage. Providers of worker’s compensation insurance based their premiums and the amount of coverage they provided on the number of employees a company had and the total annual payroll of those employees. Tejeda’s company had agreements with contractors and subcontractors to use workers purported to be Tejeda’s employees at construction sites and these workers were often undocumented aliens who were actually working for and under the daily supervision and direction of the contractors. Tejeda or others would then regularly receive “payroll checks” from contractors that were cashed at various financial institutions to pay Tejeda’s purported “employees” and other related expenses.
During the time period charged in the criminal information, Tejeda falsely and fraudulently represented in insurance applications that his company had a very limited payroll and a very limited number of employees who worked on construction jobsites. Tejeda also falsely and fraudulently sent wire communications to numerous contractors representing that his company’s employees had full worker’s compensation coverage. In reality, Tejeda’s company received and cashed more than $18 million in checks from various construction contractors for these purported “employees.” This payroll figure far exceeded the very limited payroll figures that Tejeda had reported to his worker’s compensation insurance company. As a result, these employees of Tejeda’s company, who in reality were the employees of other entities, performed work on jobsites without adequate insurance coverage. In addition, the insurers lost premiums they would have charged had they been aware of the true number of workers their policies were thus being manipulated to cover.
As a result of these misrepresentations, Tejeda’s company also disclaimed responsibility for ensuring that jobsite workers were legally authorized to work in the United States and that required state and federal payroll taxes were being paid for these workers. The contractors who actually paid these workers’ wages and used their services were thus also able to avoid responsibility for those duties as well.
This case was investigated by Homeland Security Investigations and the State of Florida Department of Financial Services. It is part of an investigation by those agencies into the use of shell companies and “ghost” employees in the construction industry. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
Hartsville Man Sentenced to Nearly 8 Years in Federal Prison on Gun ChargeRead the Press Release
Florence, South Carolina --- Shannon Alexis Woodham, 40, of Hartsville has been sentenced to nearly 8 years in federal prison after pleading guilty to possessing a firearm and ammunition as a convicted felon.
Evidence presented to the court showed that on August 5, 2020, an officer with the Hartsville Police Department initiated a traffic stop on a car driven by Woodham. Upon approaching the car, the officer noticed an open Coors Light container in the car’s cup holder. Another officer who arrived on scene to assist, removed the container and noticed several small clear bags containing suspected drugs as well as what appeared to be alcohol inside the container. Several officers on scene also noticed the odor of marijuana while standing beside the car. During a search of the car, officers located a firearm with an extended magazine loaded with rounds of 9mm ammunition. During a search of Woodham’s person, an officer located a single 9mm bullet. Woodham is prohibited from possessing a firearm and ammunition due to his prior convictions for Possession of Cocaine 3rd Offense, Possession with Intent to Distribute Hydrocodone, and Possession with Intent to Distribute Cocaine.
United States District Judge Sherri A. Lydon sentenced Woodham to 92 months in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Hartsville Police Department.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant United States Attorney Lauren Hummel prosecuted the case.
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Hartford Man Sentenced to 27 Years in Federal Prison for Producing Child PornographyRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that RONALD DANIEL, 52, of Hartford, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 324 months of imprisonment, followed by 10 years of supervised release, for producing child pornography.
According to court documents and statements made in court, on at least two occasions in 2018, Daniel had sexual contact with a prepubescent female and took cellphone photos of his conduct. He also distributed some of these images, as well as other images and videos of child pornography, through the Kik mobile application under the username “letsgogetluv.”
Daniel has been detained since his arrest on related state charges on June 10, 2019. On February 24, 2021, he pleaded guilty in federal court to one count of production of child pornography.
This matter was investigated by Homeland Security Investigations (HSI), the Connecticut State Police and the Vernon Police Department. The case was prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
U.S. Attorney Boyle thanked the State’s Attorney’s Office for the Judicial District of Tolland for its close cooperation in investigating and prosecuting this matter.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Hardy County man admits to drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – Angel Luis Martinez-Rodriguez, of Moorefield, West Virginia, has admitted to a drug charge, United States Attorney William Ihlenfeld announced.
Martinez-Rodriguez, 37, pleaded guilty today to today on one count of “Possession with Intent to Distribute Cocaine-Aiding and Abetting.” Martinez-Rodriguez admitted to having cocaine in August 2021 in Hardy County.
Martinez-Rodriguez faces at up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen. D. Warner is prosecuting the case on behalf of the government. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, and the United States Postal Inspection Service investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Hammond Man Sentenced to 63 Months in PrisonRead the Press Release
HAMMOND- Charles Devon Byron Cook, 32 years old, of Hammond, Indiana, was sentenced by United States District Court Judge James T. Moody on his plea of guilty to being a felon in possession of ammunition, announced United States Attorney Clifford D. Johnson.
Cook was sentenced to 63 months in prison followed by 2 years of supervised release.
According to documents in the case, on July 15, 2020, law enforcement was dispatched to a disturbance and upon arrival, observed Cook toss a loaded 9mm semi-automatic pistol into a vehicle. Law enforcement recovered a loaded extended firearm magazine from Cook’s pocket. Cook’s criminal history indicates that he had previously been convicted of multiple felony offenses, including failing to register as a sex or violent offender, auto theft, carrying a handgun without a license, and felon in possession of a firearm. These convictions prohibited him for possessing a firearm or ammunition.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosive/Indiana High Intensity Drug Trafficking Area Task Force with assistance of the East Chicago Police Department. This case was prosecuted by Assistant United States Attorney Nicholas J. Padilla.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Gary Woman Ordered to Pay $192,659 in RestitutionRead the Press Release
HAMMOND-Elizabeth Harris, 40, of Gary, Indiana, was sentenced by United States District Court Judge James T. Moody on her plea of guilty to mail fraud, announced United States Attorney Clifford D. Johnson.
Harris was sentenced to 36 months’ probation with 12 months’ home detention and ordered to pay $192,659 in restitution to the Social Security Administration (SSA).
According to documents filed in the case, in March 2009, Elizabeth Harris became a Representative Payee for her father, who received benefits under the Social Security Disability Insurance Program, and later the Retirement Insurance Benefits Program. As a representative Payee, Harris was responsible for using the money for the benefit of her father and was required to report any change in circumstances to the SSA. Harris’ father died in September 2010, but she never reported his death to the SSA. She continued to fraudulently collect benefit to which her deceased father was not entitled, in the total sum of $192,659.
This case was investigated by the Social Security Administration, Office of the Inspector General. This case was prosecuted by Assistant United States Attorney Jennifer Chang and former Assistant United States Attorney Molly Kelley.
Fort Thompson Woman Indicted for Involuntary Manslaughter and Child AbuseRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Fort Thompson, South Dakota, woman has been indicted by a federal grand jury for Involuntary Manslaughter and Child Abuse.
Amber Touche, age 29, was indicted on April 12, 2022. She appeared before U.S. Magistrate Judge Mark A. Moreno on April 28, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 15 years in federal prison and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund on each count. Restitution may also be ordered.
The Indictment alleges that on June 10, 2021, in Big Bend, South Dakota, Touche unlawfully killed a human being by asphyxiation. The Indictment further alleges that Touche abused, exposed, tortured, tormented, and cruelly punished a child under the age of seven.
The charges are merely accusations and Touche is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Bureau of Indian Affairs – Office of Justice Services, Crow Creek Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Touche was released on bond pending trial. A trial date has not been set.
Former Insurance Agent Pleads Guilty to Defrauding Client of More Than a Million DollarsRead the Press Release
TUCSON, Ariz. – Koreasa M. Williams, 49, of Tucson, Arizona, pleaded guilty last week to defrauding an elderly annuity client of more than $1,300,000. Williams, formerly licensed in Arizona to sell life and health insurance, pleaded guilty to two counts of Wire Fraud, each of which carries a maximum penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for July 5, 2022, before United States District Judge Jennifer G. Zipps.
Williams admitted she engaged in two separate schemes to defraud her client. In the first scheme, Williams admitted to inducing her client to cash in several life insurance policies in order to invest the proceeds in annuities to be procured by Williams. Williams admitted that over a period of six months in 2019, she fraudulently convinced her client to give her $1,200,000. Instead of investing that money for her client, Williams used almost $900,000 to pay victims of a prior unrelated annuity fraud scheme in an attempt to avoid criminal charges. Williams subsequently pleaded guilty to wire fraud in that unrelated fraud scheme and was sentenced to 51 months in prison in December 2021. Williams used the remaining $300,000 to pay her attorney’s fees for the unrelated fraud scheme and to settle a civil suit brought by another client.
In the second scheme, Williams admitted to inducing her client to dissolve a charitable foundation and place more than $124,000 in an entity controlled by Williams. Williams was to hold the funds until a new entity could be established to receive the money that would then be used to care for her client’s disabled adult daughter. However, Williams never established the new entity and instead diverted more than $118,00 to her own use and benefit.
The FBI, Tucson Resident Agency, conducted the investigation in this case. Assistant U.S. Attorneys Wallace H. Kleindienst and Mary Sue Feldmeier, of the Financial Crimes and Public Corruption section of the U.S. Attorney’s Office, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-21-03136-TUC-JGZ
RELEASE NUMBER: 2022-057_Williams# # #
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.Former Grass Seed Company Employee Charged in Scheme to Defraud SimplotRead the Press Release
PORTLAND, Ore.—An Idaho man who formerly supervised order-fulfillment and warehousing operations for the Jacklin Seed Company, a Liberty Lake, Washington producer and marketer of grass seed and turfgrass, has been charged for his role in multiple schemes to defraud the J.R. Simplot Company and Jacklin, its former subsidiary.
Richard Dunham, 64, a resident of Hayden Lake, Idaho, has been charged by federal criminal information with two counts of conspiracy to commit wire fraud.
According to court documents, from 1997 until its sale in 2020, the J.R. Simplot Company, a major privately held supplier of agricultural products headquartered in Boise, Idaho, owned and operated Jacklin. During this time, much of Jacklin’s business operations, including a seed-blending and warehousing facility, were located in and around Albany, Oregon. Dunham, who supervised Jacklin’s Albany operations, had the authority to purchase grass seed from certain Oregon growers over others.
At some point between 2013 and 2015, Dunham, Jacklin general manager Christopher Claypool, 53, of Spokane, Washington, and others realized that growers’ preference for higher-yield grasses was creating substantial shortages of lower-yield varieties Jacklin had contracted to deliver to its customers. Dunham and Claypool recognized that these shortages would either cause Jacklin to fail to deliver on its existing contracts or require Jacklin to pay a premium to growers to acquire necessary inventory, substantially eroding company profits. The pair anticipated that either result would negatively affect their careers.
From January 2015 and continuing until at least the summer of 2019, Dunham and Claypool directed Jacklin employees, at the Albany facility and elsewhere, to fulfill customer orders with different varieties of grass seed than the customers had ordered, to conceal such substitutions from the customers, and to invoice the customers as though no substitutions had taken place. Together, they referred to this scheme as “getting creative.”
To conceal the unauthorized substitutions, Dunham and Claypool directed Jacklin employees to package the substitute seed varieties with false and misleading labels. They also directed employees to invoice the customers under the original terms of their contracts, notwithstanding the unauthorized substitutions. As a result of this scheme, Simplot refunded or credited more than $1.5 million to defrauded buyers.
During the same time, Dunham and Claypool also agreed to import mislabeled seeds from Moore Seeds, a Jacklin supplier based in Debolt, Alberta, Canada, to offset the shortage of one of Jacklin’s best-selling grass seed blends. In doing so, Dunham conspired with Raymond Walker, 60, a resident of Debolt and Moore’s managing director, to purchase a less expensive seed blend at above-market rates in exchange for Walker falsely labeling the seed as Jacklin’s premier blend and shipping it, under that false pretense, to Jacklin in Oregon.
In additional to the undisclosed seed substitutions, Dunham engaged in another scheme while employed with Jacklin. Beginning in April 2015, Dunham conspired with Gregory McCarthy, the owner of Ground Zero Seeds, a grass seed production and wholesale company based in Yamhill, Oregon that regularly did business with Jacklin. Dunham and McCarthy, who were longtime friends, agreed that Ground Zero would pay Dunham a per pound kickback for grass seed purchased by Jacklin. These kickbacks were built into the prices reflected on Ground Zero’s invoices to Jacklin and, between April 2015 and September 2019, caused Ground Zero is pay Dunham more than $191,789.
In facilitating their scheme, Dunham and McCarthy regularly corresponded by email, referring to Ground Zero’s kickbacks to Dunham as “shoes” or contributions to his “shoe fund.” To conceal their scheme, Dunham maintained an LLC through which he claimed to provide consulting and brokering services. Dunham negotiated kickbacks and fees from Ground Zero and other Jacklin suppliers through the LLC’s business checking account.
Dunham made his initial appearance in federal court today before U.S. Magistrate Judge Stacie F. Beckerman. He was released pending further court proceedings.
On July 7, 2021, Claypool was sentenced to three years in federal prison and three years’ supervised release after previously pleading guilty to conspiracy to commit wired fraud and money laundering.
On March 3, 2022, McCarthy was charged with conspiracy to commit wire fraud. He was arraigned on March 15, 2022 in Portland and released pending a two-day jury trial scheduled to begin on July 26, 2022.
In September 2021, in a separate criminal case, ProSeeds Marketing, Inc., a Willamette Valley grass seed distributor, pleaded guilty after knowingly concealing a scheme to defraud Jacklin. On November 29, 2021, the company was sentenced to a year of probation, a $5,000 fine, and more than $78,000 in restitution.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by IRS-Criminal Investigation and the U.S. Department of Agriculture Office of Inspector General. It is being prosecuted by Ryan W. Bounds, Assistant U.S. Attorney for the District of Oregon.
Florence Man Sentenced to over 5 Years in Federal Prison on Gun ChargeRead the Press Release
Florence, South Carolina --- Dominic Rakim Ellison, 34, of Florence, has been sentenced to over 5 years in federal prison after pleading guilty to possessing a firearm and ammunition as a convicted felon.
Evidence presented to the court showed that on May 1, 2020, a deputy with the Florence County Sheriff’s Office initiated a traffic stop on a car driven by Ellison. Upon approaching the car, the deputy noticed an odor of marijuana coming from the car and saw a plastic bag protruding from Ellison’s left pocket. The deputy searched the car and located a firearm loaded with 6 rounds of ammunition under the driver’s seat. Ellison is prohibited from possessing a firearm and ammunition due to his prior convictions for Burglary Second Degree and Armed Robbery.
United States District Judge Sherri A. Lydon sentenced Ellison to 63 months in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Florence County Sheriff’s Office.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant United States Attorney Lauren Hummel prosecuted the case.
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Filipino Seaman Pleads Guilty to Federal Charge for Fatally Stabbing Fellow Crewmember on Los Angeles-Bound Container ShipRead the Press Release
LOS ANGELES – A Philippines national who fatally stabbed a fellow crewmember on a container ship en route from Shanghai to Los Angeles pleaded guilty today to a federal criminal charge.
Michael Dequito Monegro, 43, a resident of The Philippines, pleaded guilty to one count of committing an act of violence against a person onboard a ship that is likely to endanger the safe navigation of the ship.
United States District Judge Dale S. Fischer has scheduled a September 12 sentencing hearing, at which time Monegro will face a statutory maximum sentence of life in federal prison.
According to his plea agreement, in September 2020, Monegro was working as a seaman aboard the MSC Ravenna, a 153,000-gross-ton Liberian-flagged container ship. On September 20, 2020, the Ravenna was approximately 80 nautical miles from Southern California, nearing the end of its two-week voyage from Shanghai to the Port of Los Angeles.
That morning, several crewmembers were in a dressing room on the ship’s upper deck, preparing for their shift and waiting for their direct supervisor to provide their work assignments for the day. Shortly after Monegro saw his direct supervisor in the hallway outside the locker room, Monegro began stabbing him with a knife while they were both in the hallway in full view of several crewmembers.
The victim grappled with Monegro and the two fell to the floor. Monegro then got on top of the victim and continued stabbing him. Monegro then removed a second knife from the victim’s coveralls and stabbed him with both knives.
Crewmembers attempted to intervene to stop Monegro, including throwing a trash can at him, but their actions were unsuccessful. Monegro admitted that he only stopped stabbing the victim when he became too tired to continue.
The ship’s captain, chief mate and chief engineer all arrived on scene during the incident, and the captain convinced Monegro to get off the victim, who died on the ship from multiple stab wounds.
Monegro was convinced by the captain to walk to a conference room. After continued discussions, Monegro placed the knives on the conference room table and was escorted to his cabin.
After the incident, Monegro was confined to a cabin and crewmembers were assigned to guard the door, so they were unable to perform their normal duties on the ship. Other crewmembers were traumatized by witnessing Monegro stab and kill the victim.
Federal agents arrested Monegro after the ship docked at the Port of Los Angeles on September 27, 2020. He has been in federal custody since his arrest.
The FBI and the United States Coast Guard Investigative Service investigated this matter.
Assistant United States Attorney Jeffrey M. Chemerinsky of the Violent and Organized Crime Section; Assistant United States Attorney Mark A. Williams, Chief of the Environmental and Community Safety Crimes Section; and Assistant United States Attorney Matthew W. O’Brien, also of the Environmental and Community Safety Crimes Section, are prosecuting this case.
Fairfax Man Sentenced to Federal Prison for Charges of Interfering and Assaulting Flight AttendantRead the Press Release
PENSACOLA, FLORIDA – Last week, Kameron C. Stone, 30, of Fairfax, Virginia, was sentenced to one year in federal prison for interfering with flight crew and assault by striking and wounding in special aircraft jurisdiction after pleading guilty on February 8, 2022. The sentence was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
“The safety and security of the traveling public and the professionals who provide this service are paramount,” stated U.S. Attorney Coody. “Given the swift actions of the flight attendant, passengers and a Deputy United States Marshal, an incredibly dangerous situation was averted. Perilous acts such as this will be investigated by our law enforcement partners and vigorously prosecuted by this office.”
On April 16, 2021, Stone boarded a flight departing from Dulles International Airport in Virginia bound for Pensacola International Airport. During the flight, passengers noticed Stone was behaving obnoxiously and smelled strongly of alcohol. A flight attendant warned Stone on several occasions about his behavior, which included pretending to shoot at passengers, refusing to remain seated or wear a seatbelt, and reaching for the cockpit door. As the flight began its final descent, Stone approached the front of the aircraft and tried to open the cabin and cockpit doors. A flight attendant attempted to prevent Stone from opening the doors and, as a result, Stone pushed her, grabbed her shoulders, and shoved her into the galley wall, injuring her in the process. During the altercation, Stone successfully breached the main cabin door to the external portion of the plane, triggering the alarm and causing the pilots to declare an emergency with the Federal Aviation Administration. The flight attendant prevented Stone from fully opening the door while three passengers, to include an off-duty Deputy United States Marshal, subdued Stone until landing.
FDLE Pensacola Regional Operations Center Special Agent in Charge Chris Williams said, “It is paramount that aviation employees and passengers can trust that the planes flying across our skies are safe and secure.” “I am proud of the work of our members and our federal partners in ensuring that Stone is held to account for his actions. I hope this case and prison sentence will serve as a warning to anyone who would threaten the safety of those who work or travel in our skies.”
Stone’s prison sentence will be followed by three years of supervised release. The court ordered Stone to pay all civil penalties assessed by the Transportation Security Administration, as well as a fine of $7,500.
This case was investigated by the Federal Bureau of Investigation, Florida Department of Law Enforcement, and the Pensacola Police Department. Assistant United States Attorney Jennifer H. Callahan prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Detroit Man Sentenced for Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – A Detroit man was sentenced today to six years and three months in prison, to be followed by five years of supervised release, for possession with intent to distribute 50 grams or more of methamphetamine.
According to court documents and statements made in court, Augustus Darryl Jones, Jr., 30, arranged to distribute methamphetamine to a confidential informant on November 10, 2021, in Huntington. The West Virginia State Police pulled Jones over while he was driving to make the drug transaction and seized 460 grams of methamphetamine from his vehicle. Jones admitted he possessed and intended to distribute the methamphetamine to the informant.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the West Virginia State Police and the Cabell County Sheriff’s Office.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Joseph F. Adams prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-242.
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Detroit Man Pleads Guilty to Fentanyl CrimeRead the Press Release
HUNTINGTON, W.Va. – A Detroit man pleaded guilty today to possession with intent to distribute fentanyl.
According to court documents and statements made in court, Bobby James Mitchell, 41, admitted that a Hurricane Police officer found 499 pills containing approximately 54 grams of fentanyl in Mitchell’s vehicle during a December 11, 2021, traffic stop on Interstate 64 in Hurricane. Mitchell admitted he intended to sell the fentanyl.
Mitchell is scheduled to be sentenced on August 15, 2022, and faces a maximum penalty of 20 years in prison, three years of supervised release and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the Drug Enforcement Administration (DEA) and the Hurricane Police Department for conducting the investigation.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Courtney L. Cremeans is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-71.
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Department of Justice Recognizes Environmental Crime Victim Assistance Team with Federal Service AwardRead the Press Release
SHREVEPORT, La. - United States Attorney Brandon B. Brown joins the Office for Victims of Crime, a component of the Justice Department’s Office of Justice Programs (OJP), in recognizing Assistant U.S. Attorney Earl M. Campbell and his fellow team members for receiving the Federal Service Award last week in Washington, D.C. Mr. Campbell serves as the Criminal Chief for the U.S. Attorney’s Office in the Western District of Louisiana.
The Office for Victims of Crime presented the Federal Service Award to the Environmental Crime Victim Assistance Team, a collaboration of the Environmental Protection Agency’s Office of Criminal Enforcement, Forensics and Training and the Justice Department’s Environmental and Natural Resources Division. This award recognizes the extraordinary efforts of federal agency personnel who lead initiatives and make contributions that impact victims of federal, tribal and military crimes, or promote victims’ rights and services nationally and internationally.
“Acts that degrade the environment exact a heavy toll on our planet, but we often forget that individual victims pay a high price as well, and are often left to suffer in silence,” said Amy L. Solomon, Principal Deputy Assistant Attorney General of OJP. “Those who commit these crimes do enormous damage that often goes undetected until injury and illness reach the point of personal crisis. The vigilance and resourcefulness of this dedicated team of professionals are worthy of our highest esteem and our deepest gratitude.”
Created in 2017, the Environmental Crime Victim Assistance Team identifies and supports victims of environmental injustices. Injuries from environmental crimes, such as widespread pollution and exposure to carcinogens, may not manifest for years after the crime, and even then, it is difficult to distinguish between external causes and underlying medical conditions. Until the creation of the program, there were no national protocols or dedicated federal resources to ensure that victims of environmental crimes were identified, notified and treated consistently nationwide.
The program created a decision tree to identify victims, a victim impact statement template tailored to environmental crimes, an investigation and prosecution checklist to ensure victims are considered and model charging language and jury instructions for certain victim and witness retaliation offenses. The team is also improving outreach to victims in overburdened communities and ensuring that investigations are structured to pursue remedies that guarantee adequate protection for those communities. Program accomplishments include establishing a national victim-witness coordinator position at EPA, hiring a victim-witness coordinator for ENRD’s Environmental Crimes Section, launching public webpages for outreach to victims of environmental crimes and developing national training.
"This outstanding team of advocates and attorneys exemplifies compassion in the pursuit of often elusive justice, giving hope to those whose communities have borne the burden of careless and criminal environmental practices,” said Kristina Rose, Director of the Office for Victims of Crime (OVC). “We owe these professionals an enormous debt of gratitude.”
Every April, OVC leads communities across the country in observing National Crime Victims’ Rights Week. President Ronald W. Reagan proclaimed the first Victims’ Rights Week in 1981, calling for greater sensitivity to the rights and needs of victims. This year’s observance took place last week, April 24-30, and featured the theme, “Rights, Access, Equity, for All Victims.”
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Darlington Man Sentenced to over 12 Years in Federal Prison on Drug ChargeRead the Press Release
Florence, South Carolina --- Cory Dewayne McNeal, 39, of Darlington, has been sentenced to over 12 years in federal prison after pleading guilty to possessing controlled substances with the intent to distribute those substances.
Evidence presented to the court showed that on April 17, 2020, a deputy with the Florence County Sheriff’s Office approached a car in the parking lot of a hotel in Florence, South Carolina. Cory McNeal was sitting in the driver’s seat. Upon approaching the car, the deputy noticed an odor of marijuana and saw marijuana remnants on McNeal’s pants. The deputy also saw a clear plastic bag that appeared to contain marijuana near the center console. Deputies searched the car and located a firearm, a digital scale, 0.44 gram of cocaine, 3.36 grams of crack cocaine, 4.44 grams of marijuana, 10 grams of fentanyl, 21.61 grams of heroin, 97 tablets containing 23.25 grams of methamphetamine, and an additional 5.04 grams of methamphetamine.
United States District Judge Sherri A. Lydon sentenced McNeal to 151 months in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Florence County Sheriff’s Office.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant United States Attorney Lauren Hummel prosecuted the case.
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Department of Justice Recognizes South Dakota Court-Appointed Special Advocate with Volunteer for Victims AwardRead the Press Release
WASHINGTON ― The Office for Victims of Crime, a component of the Justice Department’s Office of Justice Programs, presented the Volunteer for Victims Award to Linda Stambaugh, a Court-Appointed Special Advocate from Newell, South Dakota. The award honors individuals for their extraordinary and selfless efforts resulting in positive and lasting changes in the lives of crime victims.
“Ms. Stambaugh devoted countless hours to securing the safety and well-being of four young children, making the equivalent of a round-trip cross-country drive while their case was open to bring them to school, counseling, court proceedings and supervised visits with their parents,” said Amy L. Solomon, Principal Deputy Attorney General of OJP. “She demonstrated great compassion and incredible perseverance in her heroic work on behalf of these neglected siblings. It is a privilege to honor her volunteer service that went above and beyond.”
Ms. Stambaugh, a Court-Appointed Special Advocate for the Fourth Circuit Court of South Dakota, had only been working for nine days as a volunteer advocate when she received her first child abuse and neglect case. Four siblings between two and six years old had been found wandering the streets unsupervised on several occasions. They were placed in foster care while their parents tried to regain custody.
Ms. Stambaugh made 470 contacts on behalf of the children during the one-and-a-half years the case was open. She facilitated many visits, even transporting the children to sibling visits in two separate foster homes in two different communities so they could spend time together. She also drove the children to supervised visits with their parents, counseling sessions and school, logging more than 7,000 miles. She continued to work with the children and their parents to try to secure a successful reunification at the time of trial. When Stambaugh saw that the children were not thriving in the care of their parents, she effectively communicated this to the court, which ultimately found them a caring family, who adopted them together.
“Ms. Stambaugh was the one constant in these children’s lives during a period of tremendous change, loss, uncertainty and confusion,” said Kristina Rose, Director of OVC. “Her steadfast dedication and support helped stop the cycle of child abuse and neglect for these four children and put them in an environment where they can begin to safely heal and grow.”
Every April, OVC leads communities across the country in observing National Crime Victims’ Rights Week. President Ronald W. Reagan proclaimed the first Victims’ Rights Week in 1981, calling for greater sensitivity to the rights and needs of victims. This year’s observance is taking place April 24-30, and features the theme, “Rights, Access, Equity, for All Victims.”
Co-Conspirators Sentenced for Stealing over $1.8 Million in Fake Billing SchemeRead the Press Release
RALEIGH, N.C. – Three defendants were sentenced today for conspiracy to commit an offense against the United States in connection with a fraudulent invoicing scheme that targeted Baker Roofing Company (BRC). Defendants were ordered to pay restitution of $1,850,442 to the company and received the following sentences:
- George William Garven, of Clemson, South Carolina, was sentenced to 48 months in prison and three years of supervised release.
- Robert Andrew Helms, of Indian Trail, North Carolina, was sentenced to 12 months and one day in prison and three years of supervised release.
- William Russell Davis, of Waxhaw, North Carolina, was sentenced to 12 months and one day in prison and three years of supervised release.
“These defendants, all of whom are well-educated, successful businessmen, used their positions of privilege to enrich themselves at the victim’s expense,” commented United States Attorney Michael Easley. “Like many white collar offenders, their choices were not born of desperation, but of greed. They thought they were above the law—but today the law caught up with them. The U.S. Attorney’s Office and our law enforcement partners work tirelessly to ensure that those who cheat Eastern North Carolina businesses face consequences in federal court.”
According to court documents and other information presented in court, the victim, BRC, hired Garven in 2011 to serve as the Vice President and General Manager of its Charlotte branch office. In 2014, Helms and Davis partnered together to provide roofing subcontracting services to BRC through Davis’s business, R&K Davis Holdings (R&K). Between 2015 and 2020, R&K was used as a vehicle to fraudulently bill BRC for subcontracting work that was never performed. Among other things, Garven obligated BRC to pay R&K by generating fake invoices and subcontracts in R&K’s name. The criminal proceeds, were funneled into business bank accounts controlled by Helms and Davis and then disbursed to Garven in various forms, including gift cards and checks. The checks included fraudulent memo lines to make it appear they were related to legitimate business. Garven also directed Helms and Davis to use the embezzled funds to pay contractors to perform work on Garven’s residential properties. In furtherance of the scheme, Garven paid Helms and Davis each approximately $140,000 in cash.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Federal Bureau of Investigation, Charlotte Field Office, investigated the case. Assistant U.S. Attorney Adam F. Hulbig prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:21-CR-393-D.