Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Friday 18 March 2022
Lakewood Man Pleads Guilty to Federal Criminal Charge for Threatening to Bomb SBA Offices and Assault Agency EmployeesRead the Press Release
LOS ANGELES – A Lakewood man pleaded guilty today to a federal criminal charge for threatening to bomb Small Business Administration (SBA) offices and then, the following year, threatening to assault SBA employees in response to his inability to obtain COVID-19 emergency business loans.
Christopher Joseph Antoun, 30, pleaded guilty to one count of making threats by interstate communication. He has been in federal custody since his arrest in this case in November 2021.
Antoun owns Federal Student Loan Consulting LLC, a company he runs out of his Lakewood residence, according to court documents. In early 2020, Antoun attempted to obtain a COVID-19 Emergency Injury Disaster Loan (EIDL). These loans provide accessible and borrower-friendly capital to small businesses impacted by the COVID-19 pandemic. Antoun attempted to receive approval for an EIDL loan or an advance from the SBA, but was unsuccessful in these efforts, court documents state.
According to his plea agreement, on May 3, 2020, Antoun emailed the SBA and threatened to “start bombing every location” the SBA owned. On September 13, 2021, Antoun again sent an email threatening to injure SBA employees.
Despite law enforcement contacting Antoun and warning him that further threats to the SBA would result in criminal prosecution, Antoun continued to threaten SBA employees by email.
On November 12 and November 17, 2021, Antoun sent emails threatening to injure SBA employees. Specifically, on November 17, Antoun sent an email to several SBA employees threatening to injure them by “beating the skulls” of such employees with a baseball bat.
Antoun admitted in his plea agreement that he intended to threaten SBA employees and he knew that such language would be perceived as a true threat.
United States District Judge Fernando L. Aenlle-Rocha has scheduled a May 27 sentencing hearing, at which time Antoun will face a statutory maximum sentence of five years in federal prison.
The United States Department of Homeland Security’s Federal Protective Service investigated this matter.
Assistant United States Attorney Juan M. Rodríguez is prosecuting this case.
KC Man Pleads Guilty to Distributing Child Pornography over the InternetRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man who possessed an extensive collection of thousands of images and videos of child pornography pleaded guilty in federal court today to sharing child pornography over the internet.
Philip A. Kocher, 40, pleaded guilty before U.S. District Judge Howard F. Sachs to one count of distributing child pornography over the internet.
Law enforcement officers identified Kocher sharing child pornography on a peer-to-peer file-sharing network in August and December 2020.
On Jan. 22, 2021, FBI agents executed a search warrant at Kocher’s residence and seized a desktop computer and three hard drives, all of which contained child pornography. Investigators found roughly 3,800 files of child exploitive or child abuse images. More than 1,200 of those files were child pornography, which included depictions of infants, toddlers, bondage, and bestiality. Investigators also found an additional 17,000 files, much of which included child pornography.
Kocher admitted that he has been involved with child pornography for at least the past 15 years. He also admitted he had another collection of child pornography that was accidentally deleted a few years ago.
Under federal statutes, Kocher is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Kenneth W. Borgnino. It was investigated by the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Justice Department honors fifth annual Attorney General’s Award for Distinguished Service in Community PolicingRead the Press Release
ATLANTA - The Justice Department announced the recipients of the Fifth Annual Attorney General’s Award for Distinguished Service in Community Policing. This year’s awards recognize the exceptional work of 18 law enforcement officers and deputies from 12 jurisdictions across the country.
Attorney General Garland announced the award recipients in Atlanta, Georgia. Later, he attended a ceremony for three award recipients from the DeKalb County Police Department.
“The work of law enforcement has always been difficult—but perhaps no more so than in the recent past, as officers have faced a host of significant challenges. The officers and deputies receiving this year’s awards demonstrate how so many go above and beyond, even in the midst of trying circumstances,” he said. “Every day, thousands of people who work in law enforcement forge and maintain strong community ties that are essential for ensuring public safety. The recipients of this award represent quintessential examples of such critical efforts. It is an honor to recognize them.”
“Community policing depends on active engagement by law enforcement,” said U.S. Attorney Kurt Erskine. “The award recipients developed creative ways to reach out to youth in DeKalb County when the pandemic threatened to leave at-risk youth with no summer programs. It is through this kind of creative approach that we built trust with the citizens law enforcement serves.”
The Attorney General’s Award recognizes individual state, local, Tribal, and territorial police officers, deputies, and troopers for exceptional efforts in community policing. The awarded officers and deputies have demonstrated active engagement with the community in one of three areas: innovations in community policing, criminal investigations, or field operations. This year, the Department received 185 nominations from 145 agencies, recognizing a total of 347 individual officers, deputies, and troopers. There were 39 states represented in the nomination pool, covering state, local, campus, sheriff, and other agency types.
The work being honored this year reflects numerous examples of law enforcement officers working closely with the community to build trust, solve problems, reduce crime, and improve public safety.
The Department of Justice works closely with national law enforcement stakeholder groups during the award review period, taking advantage of their expertise and experience to determine the recipients in a competitive nomination process. The Department also works closely with its components, utilizing the breadth of knowledge within the Department to ensure a successful program that honors the exceptional service of our nation’s law enforcement officers and deputies.
Complete information on the Fifth Annual Attorney General’s Award for Distinguished Service in Community Policing can be found at https://www.justice.gov/ag/policing-award.
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
Justice Department Secures Agreement with Ohio to Protect the Rights of Military and Overseas Voters in Ohio Primary ElectionRead the Press Release
The Justice Department today announced an agreement between the department and the state of Ohio through its Secretary of State to help ensure that military service members, their family members, and U.S. citizens living overseas have an opportunity to participate fully in the upcoming May 3, 2022, federal primary election. The agreement is necessary to provide a remedy for a potential violation of the Uniformed and Overseas Citizens Absentee Voting Act (UOCAVA).
The agreement provides additional time for election officials in Ohio to receive and count absentee ballots from eligible UOCAVA voters, in order to ensure that such voters will have sufficient time to receive and submit their absentee ballots for the May 3, 2022, primary election. Under the agreement, UOCAVA ballots sent back will be accepted for an additional 10 days – until May 23 – so long as they are executed and sent by the close of the polls on May 3, and otherwise valid. The agreement also provides extended time for UOCAVA voters to vote, sign and transmit completed ballots through the close of polls on the election day for the May 3 election. The agreement also requires that election officials transmit ballots to UOCAVA voters by expedited means no later than April 5, 2022. The agreement provides that elections officials will send voters their ballots by email if requested by the voter, or by a form of express mail or other express delivery service if the voter requested that the ballot be sent by mail. The agreement also provides that the state will provide a means for voters to have expedited delivery for their voted ballots when returned to the county election boards, at the state’s expense. Under the terms of today’s agreement, Ohio will also provide notice of the remedial measures to the affected voters and reports to the department concerning the transmission and receipt of the UOCAVA ballots for the May 3 primary election.
“This agreement reflects the Justice Department’s deep commitment to protecting the right to vote for members of our armed forces deployed around the world, their families, and U.S. citizens overseas, and ensuring that these voters are afforded a meaningful opportunity to vote in all federal elections,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “I commend Ohio state officials, who worked with the department to achieve a resolution that will safeguard voting rights for the state’s military and overseas voters in the upcoming primary election.”
UOCAVA requires states to allow uniformed service voters, serving both overseas and within the United States, and their families, and U.S. citizens residing overseas to register to vote and to vote absentee for all elections for federal office. States are required to transmit absentee ballots to these voters, by mail or electronically at the voter’s option, no later than 45 days before each federal election.
The Supreme Court of Ohio required the post-decennial census districts for the Ohio General Assembly and Representative to Congress to be redrawn, and thus the districts for these offices were established much closer to the May 3, 2022, primary election than expected. In light of the delay in the ability to have ballots prepared due to the litigation, Ohio requested from the Department of Defense a hardship exemption, from UOCAVA’s 45-day advance transmission requirement for the May 3, 2022, primary election. On March 4, 2022, the application for a waiver was denied by the Department of Defense because Ohio’s original plan for sending UOCAVA ballots did not provide sufficient time for UOCAVA voters to receive, mark and return their ballots in time to have their votes counted.
Immediately following denial of the waiver by the Department of Defense, the Justice Department worked with Ohio officials to devise measures to remedy the anticipated UOCAVA violation. To implement the agreement on remedies reached with the department, Ohio enacted emergency legislation and the Secretary of State issued a directive to the county boards of elections.
More information about UOCAVA and other federal voting rights laws is available on the Department of Justice website at https://www.justice.gov/crt/uniformed-and-overseas-citizens-absentee-voting-act. Please report any complaints to the Civil Rights Division at 1-800-253-3931.
Justice Department Issues Web Accessibility Guidance Under the Americans with Disabilities ActRead the Press Release
The Department of Justice published guidance today on web accessibility and the Americans with Disabilities Act (ADA). It explains how state and local governments (entities covered by ADA Title II) and businesses open to the public (entities covered by ADA Title III) can make sure their websites are accessible to people with disabilities in line with the ADA’s requirements.
The guidance discusses a range of topics, including the importance of web accessibility, barriers that inaccessible websites create for some people with disabilities, when the ADA requires web content to be accessible, tips on making web content accessible and other information and resources. The guidance offers plain language and user-friendly explanations to ensure that it can be followed by people without a legal or technical background.
“We have heard the calls from the public on the need for more guidance on web accessibility, particularly as our economy and society become increasingly digitized,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “This guidance will assist the public in understanding how to ensure that websites are accessible to people with disabilities. People with disabilities deserve to have an equal opportunity to access the services, goods and programs provided by government and businesses, including when offered or communicated through websites.”
Finally, the guidance reviews the department’s ongoing work to advance website accessibility for people with disabilities through statements of interest and enforcement matters. For example, the department recently entered into numerous settlements with businesses — including Hy-Vee, Inc., The Kroger Co., Meijer, Inc., and Rite Aid Corporation to ensure that websites for scheduling vaccine appointments are accessible.
The full guidance is available here.
To learn more about the department’s disability rights work, please visit www.ADA.gov.
Justice Department Announces Expansion of Technical Assistance Services Offered to Law Enforcement Agencies Through the Collaborative Reform InitiativeRead the Press Release
Today, Attorney General Merrick B. Garland announced a new Collaborative Reform Initiative. Managed out of the Department’s Office of Community Oriented Policing Services (COPS Office), this initiative will be offering three different levels of assistance and expert services to state, local, and Tribal law enforcement partners nationwide. Each level of the initiative’s assistance is completely voluntary and provided at the request of law enforcement agencies. Attorney General Garland and Associate Attorney General Vanita Gupta unveiled the new initiative at the National Organization of Black Law Enforcement Executives (NOBLE) 2022 CEO symposium in Baton Rouge, Louisiana.
“The Justice Department recognizes how much is being asked of law enforcement officers every single day, and we are committed to providing them with the support they need to build the collaboration, trust, and legitimacy that is essential to public safety,” said Attorney General Garland. “The Department’s new Collaborative Reform Initiative will provide our law enforcement partners nationwide with the opportunity to request support from a suite of customizable, targeted tools that will shape their capacity to keep communities safe and foster community trust.”
“Extensive consultation with law enforcement, community groups, and civil rights organizations identified a real opportunity to expand technical assistance options for law enforcement agencies that need it – and want it,” said Associate Attorney General Gupta. “This new collaborative reform approach builds on our highly successful CRI-TAC program and draws on the expertise of our partners to support law enforcement agencies as they implement best practices in community policing.”
The initiative will consist of three programs designed to build trust between law enforcement agencies and the communities they serve; improve operational efficiencies and effectiveness; enhance officer safety and wellness; and develop and disseminate evidence-based, promising, and innovative public safety practices. This will be the first time in history that the COPS Office is managing and providing these various levels of assistance at the same time.
The new Collaborative Reform Initiative continuum will include:
- A continuation of the Collaborative Reform Initiative Technical Assistance Center (CRI-TAC). This is the first level of assistance – and the most targeted and discrete. Established in 2017, CRI-TAC provides a wide range of targeted technical assistance services. The Department’s COPS Office leads CRI-TAC. But CRI-TAC involves a coalition of support and expertise from 10 leading law enforcement stakeholder organizations. Through CRI-TAC’s “by the field, for the field” approach, the Department is able to facilitate customizable, short-term technical assistance on more than 60 topics. Those topics range from gun violence reduction and prevention, to officer safety and wellness, to community engagement. Subject matter experts from the field design tailored solutions in collaboration with each agency to address its individual needs. Technical assistance timelines are established at the pace of the requesting agency, ranging from three to six months. Last year, CRI-TAC worked with 171 law enforcement agencies. The new initiative will maintain CRI-TAC as its first level of support.
- An updated Critical Response program. A law enforcement agency experiencing a high-profile event or other special circumstance, and that determines it could use assistance, will be able to reach out to the COPS Office for help. Like CRI-TAC, this program is also customizable and provides flexible assistance to law enforcement agencies in a variety of ways. Once an agency connects with the Department of Justice, tools will be in place to offer support ranging from after-action reviews, to peer-to-peer exchanges, to data analysis and recommendations, to facilitating discussions with experts. The timeline for these engagements will vary depending on the needs and scope of the situation, but it will range anywhere from two weeks to nine months. As is the case with CRI-TAC, this program is completely voluntary and will be offered as a way for the Justice Department to support the work of its law enforcement partners. The initiative will maintain the Critical Response program as its second level of support.
- An updated Organizational Assessments program. Building on lessons learned from the initial Collaborative Reform model that launched in 2012 but ended in 2017, the third and most intensive piece of this new model will be our Organizational Assessments program. This program will offer the most intensive form of support, involving in-depth assessments on systemic issues. Under the new initiative, when an agency participates in the Organizational Assessments program, areas for reform will be addressed with timely, ongoing, and actionable guidance. Participating agencies will be provided with the technical assistance they need to accomplish reforms as they are identified. To help ensure transparency and accountability, the Department will also routinely report the status of its efforts to the public. This level of support is intensive; it is designed to transform a law enforcement agency’s operations and its relationship with the community. This program is a voluntary opportunity for an agency that knows it needs to make changes, and wants to make changes. The Department will prioritize offering this level third level of support to agencies that have a clear desire to engage with the model.
In the coming weeks, the COPS Office will be releasing open solicitations for experienced service providers to reestablish the Critical Response program and the Organizational Assessments program. CRI-TAC is currently operational and will continue to be a resource that is part of the continuum of services.
Additional information on these new programs can be found on the COPS website at https://cops.usdoj.gov/CRIprogram.
The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide. The only Department of Justice agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to agency for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served. The COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and Tribal law enforcement agencies to fund the hiring and redeployment of more than 135,000 officers.
Jury Convicts Man for a Shooting that Resulted in a Woman Being Struck by a BulletRead the Press Release
A federal jury today convicted a Tulsa man for taking part in a shooting that resulted in a woman being struck in the back of the head while she was driving, announced U.S. Attorney Clint Johnson.
Michael Sam, 21, was found guilty of Assault with Intent to Commit Murder in Indian Country, Assault With a Dangerous Weapon in Indian Country, Assault Resulting in serious bodily injury in Indian Country, and two counts of Carrying and Using a Firearm during and in Relation to a Crime of Violence.
“Sam sought to settle a score when he recklessly shot into a car, missed his intended target, and struck a woman who was eight months pregnant. Not only did he have little regard for the individuals in the car, but he also endangered residents living in nearby homes,” said U.S. Attorney Clint Johnson. “Through a continuing, robust partnership between the AFT and Tulsa Police Department, Sam and other criminals have been brought to justice for the violent gun crime they commit in Tulsa’s neighborhoods.”
On April 8, 2019, the woman drove her boyfriend to a drug deal, where he arranged to illegally purchase Xanax. Sam was one of several individuals in the dealer’s car. Sam and the boyfriend knew one another from school. The boyfriend knew Sam did not like him and tried to shake his hand, but Sam refused. The boyfriend purchased the Xanax then returned to the car with the victim.
When they drove away, the victim noticed the dealer’s car following them in the rearview mirror. When she turned into a residential neighborhood, shots were fired from the dealer’s vehicle. A bullet struck the rear windshield, causing it to shatter then strike the victim in the back of the head. The victim lost control of the vehicle and hit a mailbox before coming to a stop. The boyfriend saw the dealers car, which Sam was in, drive by the crashed vehicle.
Another bullet went into a house in the neighborhood and was stopped by a glass door. The woman who lived in that house was home at the time in her living room.
A witness called 911 to report the incident, and the victim was transported to the hospital. The victim was approximately eight months pregnant at the time of the incident. The victim’s unborn child was not harmed. As a result of her injuries, the victim’s vision was affected for a period of time, and she continues to suffer from seizures and headaches.
In court, Sam’s former girlfriend testified that she showed Sam a news report about the crime. After viewing the report, Sam told her that he and another individual had shot a pregnant woman, but the intended target was the woman’s boyfriend. She said he bragged about the shooting and pretended to be holding a gun.
At the crime scene, Tulsa police officers collected 13 spent shell casings from the street and a projectile was recovered from the victim at the hospital. Investigators determined that a .40 caliber firearm and .45 caliber firearm had been used in the shooting.
In a download of Sam’s Facebook account, investigators discovered messages in which Sam offered to sell a Glock .40 caliber pistol on April 11, 2019, just three days after the shooting. Also, a download of the cell phone belonging to Sam’s girlfriend revealed text messages from April 11, 2019, in which Sam told the woman to hide his guns in a child’s backpack in their apartment after she texted him that someone was at the door and she was concerned it was law enforcement.
On Jan. 13, 2020, law enforcement recovered a Glock Model 21, .45 caliber pistol during a traffic stop in Muskogee, Oklahoma. Forensic analysis showed that the pistol matched the cartridge casings recovered during the investigation into the Tulsa shooting. The driver, who was suspected of a separate crime, possessed the firearm but was not involved in the Tulsa shooting.
During testimony in court, an ATF Task Force Officer explained that criminals often trade, sell or dispose of firearms after they are used in high profile crimes in an effort to distance themselves from the guns and to hinder investigations. It was believed that Sam tried to do the same thing with the Glock .40 caliber pistol via Facebook just three days after the Tulsa shooting. The officer further said that the .45 caliber firearm was likely traded or sold sometime after the Tulsa shooting as well, which would explain why it was later found in Muskogee.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation, titled Operation Squeezed Out. The investigation centered on a firearms trafficking ring operating in the Northern District of Oklahoma and elsewhere.
OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
U.S. District Judge Daniel D. Crabtree, of the District of Kansas, presided over the trial. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Tulsa Police Department conducted the investigation. Assistant U.S. Attorney David A. Nasar and Nathan E. Michel are prosecuting the case.
Jennifer May-Parker Awarded Federal Bar Association Excellence Award, Assumes New Role as Chief Counsel for LitigationRead the Press Release
RALEIGH, N.C. – Michael Easley, U.S. Attorney for the Eastern District of North Carolina is pleased to announce that the Federal Bar Association, Eastern District of North Carolina Chapter, has awarded Assistant United States Attorney Jennifer P. May-Parker the 2022 Judge David Daniel Award for Excellence in the Legal Community. Today’s announcement coincides with May-Parker’s assumption of her new role as Chief Counsel for Litigation.
The Judge David Daniel Award for Excellence in the Legal Community was created by the Federal Bar Association in memory of Magistrate Judge Daniel to honor lawyers who exemplify integrity, commitment, and service to the legal community. The award honors one attorney each year who has shown a commitment to the legal profession, to the Eastern District of North Carolina, to the clients they serve, and to their community. To qualify, a nominee must practice in the Eastern District of North Carolina and exemplify the ideals of the legal profession and further the goals of equal justice under the law.
May-Parker has a lengthy record of success as a prosecutor and has shattered barriers in her career. She is the first woman, the first lawyer of color, and first federal prosecutor to receive this award. She began her legal career as an Assistant District Attorney in the New York City (Manhattan) District Attorney’s Office. She then served as an Assistant Attorney General in the Civil Environmental Division of the North Carolina Department of Justice. In 2013, May-Parker was nominated by President Barack Obama to serve as a United States District Judge in the Eastern District of North Carolina. This year will mark May-Parker’s 23rd with the U.S. Attorney’s Office for the Eastern District of North Carolina.
During her tenure in the Office, May-Parker has been a criminal trial attorney, an appellate attorney, the Chief of the Appellate Division, the First Assistant United States Attorney, the Diversity Chairperson, and a HOPE Court Team member. She has tried numerous cases to jury verdict, written hundreds of briefs (and reviewed hundreds more) and argued many cases before the Fourth Circuit Court of Appeals. May-Parker also served as a member of DOJ’s Appellate Chief’s Working Group, which provides advice to the Department on legal strategy and key issues.
May-Parker recently assumed the role of Chief Counsel for Litigation at the United States Attorney’s Office, a senior leadership role. In this role she will lead the Litigation Support and Victim-Witness Assistance Sections, lead the office’s training and mentorship programs for AUSAs, and take on special litigative projects in the areas of economic crimes and civil rights.
U.S. Attorney Easley stated, “We are all inspired by Jennifer’s accomplished career and dedication in serving others. Jennifer is always so willing to share her time, talent, and expertise to see justice done and to support her colleagues in the legal community. She is a great team player, and I am honored that she continues to work so hard for the people of Eastern North Carolina.”
Jackson County Man Sentenced for Violation of Lacey ActRead the Press Release
LONDON, Ky. — A McKee, Ky., man, Christopher Cool, 59, was sentenced to 15 months in federal prison on Friday, by U.S. District Judge Robert Wier, after pleading guilty to one count of violating the Lacey Act.
The Lacey Act makes it unlawful to commercialize and sell wildlife, in interstate commerce, if you know or should have known that the wildlife was taken, possessed, transported, or sold in a manner that is unlawful under the law or regulation of any state, the United States or a foreign country.
According to Cool’s plea agreement, in July 2020, the Kentucky Department of Fish and Wildlife and the United States Fish and Wildlife Service discovered that Cool had 246 Eastern Box Turtles at his residence, which he was intending to sell and ship to individuals outside of Kentucky. The commercialization and sale of these turtles is prohibited by Kentucky statue and regulation; and without a permit, a person is only allowed to possess five or fewer turtles for personal use. Further investigation revealed that between July 2019 and July 2020, Cool had sold 669 Eastern Box Turtles, which had been taken from the wild in Kentucky. Cool received an average of $100 a turtle.
In June 2021, U.S. Fish and Wildlife agents received reports from Pennsylvania and West Virginia wildlife officers indicating that Cool was selling and trafficking turtles in interstate commerce. According to information received, Cool was seen with over 125 Eastern Box Turtles while traveling through West Virginia. At the time, Cool admitted to others that he was bringing the turtles from Kentucky and was getting paid $200 a turtle, by out of state purchasers. Cool was arrested in McKee, on September 15, 2021.
Cool pleaded guilty to violating the Lacey Act in November 2021.
“The Lacey Act is an important tool for preserving our valuable wildlife resources,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “We appreciate the hard work and dedication of our law enforcement partners, both state and federal, without whom this prosecution could not have been possible and this threat to protected wildlife could have continued.”
“The U.S. Fish and Wildlife Service, Office of Law Enforcement, considers the illegal collection and commercialization of Eastern Box Turtles a high priority,” said Stephen Clark, Special Agent in Charge, U.S. Fish and Wildlife Service. “We will continue to work closely with our State partners and the United States Attorney’s Office to investigate and prosecute these important cases.”
Under federal law, Cool must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for two years. Cool is also required to complete 80 hours of community service.
U.S. Attorney Shier and Special Agent in Charge Clark jointly announced the sentencing.
The case was investigated by the United States Fish and Wildlife Service, Kentucky Department of Fish and Wildlife, West Virginia Department of Natural Resources, and Pennsylvania Game Commission. The United States was represented by Assistant U.S. Attorney Emily K. Greenfield.
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Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on March 17 was:
Stephanie Lynn Thomason, 51, of Seaback, Washington, on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, Thomason faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Thomason was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 22-13.
Sean James Sage, 40, of Billings, on charges of wire fraud, bank fraud and aggravated identity theft. If convicted of the most serious crime, Sage faces a maximum of 30 years in prison, a $250,000 fine and five years of supervised release on the bank fraud crime and a mandatory minimum two years in prison consecutive to any other punishment, a $250,000 fine and one year of supervised release on the aggravated identity theft crime. Sage was detained pending further proceedings. The Billings Police Department and Homeland Security Investigations investigated the case. PACER case reference. 21-88.
Appearing on March 15 was:
Jacob B Ramirez, 40, of Reed Point, on charges of attempted coercion and enticement. If convicted of the most serious crime, Ramirez faces a mandatory minimum 10 years in prison, a $250,000 fine and at least five years to life of supervised release. Ramirez was detained pending further proceedings. The FBI investigated the case. PACER case reference. 22-25.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Indiana Woman Pleads Guilty to Possessing NarcoticsRead the Press Release
JOHNSTOWN, Pa. – A former resident of Indiana, PA pleaded guilty in federal court to charges of violating federal narcotics laws, United States Attorney Cindy K. Chung announced today.
Ruby Gil, 31, pleaded guilty to the offense at Count One of the Indictment, and a lesser included offense at Count One of the Superseding Indictment and before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on or about October 9, 2020, Gil possessed with the intent to distribute 50 grams or more of a mixture and substance containing methamphetamine and a quantity of a mixture and substance containing a detectable amount of heroin and fentanyl. Further, from on or about April 19, 2019, to on or about July 2021, Gil conspired to possess with intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of cocaine, 5 grams or more of methamphetamine, and a quantity of a mixture and substance containing a detectable amount of fentanyl.
Judge Gibson scheduled sentencing for August 4, 2022, at 10:30 a.m. The law provides for a minimum sentence of 5 years in prison and a maximum of 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Arnold P. Bernard Jr. and Maureen Sheehan-Balchon are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Laurel Highlands Resident Agency and Homeland Security Investigations conducted the investigation leading to prosecution of Gil. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, Pennsylvania Office of the Attorney General, Pennsylvania State Police, Cambria County District Attorney’s Office, Indiana County District Attorney’s Office, Cambria County Sheriff’s Office, Cambria Township Police Department, Indiana Borough Police Department, Johnstown Police Department, Upper Yoder Township Police Department, Richland Police Department, Ferndale Police Department, Southwest Pennsylvania Safe Streets Task Force, Indiana County Drug Task Force, and other local law enforcement agencies.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Illegal Hunting Violations Result in Suspension of Hunting Privileges for Montz, Louisiana ManRead the Press Release
ALEXANDRIA, La. - United States Attorney Brandon B. Brown announced that Aaron St. Pierre, 27, of Montz, Louisiana, has been sentenced by United States Magistrate Judge Joseph H.L. Perez-Montes to 5 years of unsupervised probation and a $4,550 fine for hunting violations. St. Pierre’s hunting privileges were suspended for 5 years, and he is banned from all National Wildlife Refuges for the duration of his suspension period.
St. Pierre pleaded guilty on March 16, 2022 to several wildlife violations, including hunting in a closed area, unlawful taking of a Whitetail deer, use of trail cameras, distribution and hunting over bait, and litter in a National Wildlife Refuge. These charges stemmed from an investigation into illegal hunting activity in a closed area on Lake Ophelia National Wildlife Refuge in Avoyelles Parish, Louisiana, from December 2021 through January 2022.
This case was investigated by the U.S. Fish and Wildlife Service, Federal Wildlife Officers and Wildlife Canine Team, and was prosecuted by Assistant U.S. Attorney Robert F. Moody.
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Hartford Man Pleads Guilty to Federal Gun and Drug ChargesRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that FRANCISCO FRANCESCHINI, 28, of Hartford, pleaded guilty today in Hartford federal court to firearm possession and drug distribution offenses.
According to court documents and statements made in court, on April 8, 2021, a court-authorized search of Franceschini’s residence revealed a loaded 9mm handgun, a loaded .380 caliber handgun, and approximately 44 grams of crack cocaine.
Franceschini’s criminal history includes multiple state convictions for firearm and narcotics offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Franceschini pleaded guilty to one count of possession of a firearm by a felon, which carries a maximum term of imprisonment of 10 years, and one count of possession with intent to distribute cocaine base (“crack”), which carries a maximum term of imprisonment of 20 years. He has been detained since his federal arrest on September 23, 2021.
This investigation has been conducted by the FBI’s Connecticut Violent Crime Task Force and the Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney David T. Huang.
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.
Guatemalan National Indicted on International Cocaine TraffickingRead the Press Release
Assistant U.S. Attorney Kevin Mokhtari (619) 546-8402
NEWS RELEASE SUMMARY – March 18, 2022
SAN DIEGO – A federal grand jury indictment was unsealed in San Diego against Guatemalan national Axel Bladimir Montejo Saenz, aka “Mosh,” aka “Kraken.”
The indictment returned on November 1, 2018, charges Montejo Saenz with Conspiracy to Distribute Cocaine Intended for Unlawful Importation and Conspiracy to Distribute Cocaine on Board a Vessel. Montejo Saenz remains a fugitive.
Read the Indictment
The indictment alleges that the conspiracy continued up to and including November 2018 and involved the distribution of cocaine in the countries of Colombia, Ecuador, Guatemala, Costa Rica, El Salvador, Mexico and elsewhere.
“Today marks another important step in disrupting the corridor of illicit drug trafficking from Central America into the United States,” said U.S. Attorney Randy S. Grossman. “This complex, multi-agency investigation demonstrates the breadth of the Department’s mission to stop the flow of narcotics well before they reach our shores.” U.S. Attorney Grossman thanked the prosecution team, Homeland Security Investigations and the Drug Enforcement Administration for their excellent work on this case.
“This high-level indictment highlights the success of HSI’s collaborative efforts with the government of Guatemala and all of our foreign and domestic law enforcement partners. This partnership has resulted in significant seizures of narcotics, firearms and U.S. Currency from international cartels,” said Chad Plantz, Special Agent in Charge for HSI San Diego. “HSI is committed to bringing international drug trafficking cartel members to justice and to dismantling these criminal organizations.”
“DEA and our law enforcement partners are determined to bring members of transnational criminal organizations that inundate our country with cocaine to justice in the United States,” said DEA Special Agent in Charge Shelly S. Howe. “We will continue to work with our foreign partners to stop the importation of illicit drugs.”
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
DEFENDANT
Case Number 18cr4701-DMS
Axel Bladimir Montejo Saenz Age: 35 Huehuetenango, Guatemala
aka “Mosh,” aka “Kraken,”
aka “Gladiator,” aka “Baraja,”
aka “Solin,” aka “Ron Zacapa,”
aka “Captain Morgan,” aka “Corralejo”
SUMMARY OF CHARGES
International Conspiracy to Distribute Controlled Substances – Title 21, U.S.C., Section 959, 960, 963
Criminal Forfeiture – Title 21, U.S.C., Section 853Maximum Penalty: Life in prison and $10 million fine
Conspiracy to Distribute Cocaine on Board a Vessel Subject to the Jurisdiction of the United States –
Title 46, U.S.C., Sections 70503, 70506(b)
Criminal Forfeiture – Title 46, U.S.C., Section 70507(a)
Maximum Penalty: Life in prison and $10 million fineAGENCIES
Homeland Security Investigations (HSI)
Drug Enforcement Administration (DEA)
Customs and Border Protection (CBP)
U.S. Coast Guard
HSI Attaché Guatemala City, Guatemala
HSI Attaché Mexico City Mexico
Department of Justice’s Office of International Affairs
Department of Justice, Office of Enforcement Operations
Department of Justice, Organized Crime and Drug Enforcement Task Force (OCDETF)
Joint Task Force-Investigations (JTF-I)
Joint Interagency Task Force-South (JIATF-S)
U.S. Department of Treasury, Office of Foreign Asset Control (OFAC)
Four MS-13 Gang Members Convicted of Racketeering, Violent Crimes, and Drug DistributionRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted four Northern Virginia MS-13 gang members yesterday for drug distribution, racketeering, and their roles in two attempted murders in Prince William County in 2019.
According to court records and evidence presented during a three-week trial, Roberto Cruz Moreno, 22, of Woodbridge, and Marvin Torres, 21, of Manassas, were “chequeos,” which are soldiers, in the Guanacos Lil Cycos (GLCS) clique of MS-13; Kevin Perez Sandoval, 24, of Warrenton, was an “observacion,” which is a lower level soldier in the GLCS clique; and Jose Rosales Juarez, 27, of Manassas, was a “paro,” which is an entry level member of the GLCS clique.
In March 2019, Cruz Moreno picked up three other GLCS gang members and a victim identified as E.P.A. and drove them to an isolated wooded area in Bristow, where one GLCS gang member shot E.P.A. multiple times and another stabbed E.P.A. in the neck. They did this because GLCS gang members believed E.P.A. was disrespecting MS-13 and associating with a rival gang. Following the attempted murder, Cruz Moreno fled the scene with the three other GLCS participants and drove them to his residence. In April 2019, local law enforcement officers in Fairfax County found Cruz Moreno in possession of the same firearm used to shoot E.P.A and several grams of packaged cocaine in his vehicle, along with three other GLCS gang members traveling with him in the vehicle. Cruz Moreno had earlier that day been selling the cocaine on behalf of the clique.
In July 2019, Torres identified a victim, known as N.M.S., as a rival gang member in GLCS-controlled territory and provided photographs of N.M.S. to fellow gang members. On August 3 and 4, 2019, Rosales Juarez surveilled N.M.S. at a restaurant in Manassas, and discussed plans to kill N.M.S. with GLCS’ First Word, or leader, Andy Tovar, 32, of White Post. Tovar is considered to be one of the highest-ranking MS-13 members in the United States. On Aug. 12, 2019, Tovar granted permission to conduct the killing of N.M.S. That day, Perez Sandoval drove two members or associates of MS-13 to retrieve a firearm, then back to N.M.S.’s location where they shot him. Perez Sandoval then drove the associates from the scene of the shooting to Rosales Juarez’s residence. Rosales Juarez provided Perez Sandoval a different car to drive and rented a hotel room for the two other GLCS gang members involved in the attempted murder of N.M.S., in order to hinder law enforcement detection of those involved.
Prior to this trial, on February 4, Tovar pleaded guilty to each of the crimes with which he was charged in an indictment, including engaging in conspiracies to murder a victim identified as M.R.G. Tovar authorized GLCS gang members to kill M.R.G., and, on July 3, 2017, GLCS gang members traveled from Prince William County to Charlottesville to murder M.R.G because the GLCS clique believed M.R.G was a rival gang member. Following Tovar’s authorization, four GLCS gang members stabbed M.R.G to death over 140 times using knives and a machete before they dumped the victim’s body in a creek, burned his car, and fled back to Prince William County.
Tovar, Cruz Moreno, and Perez Sandoval each face a mandatory minimum sentence of 10 years and a maximum penalty of life in prison. Torres and Rosales Juarez each face a maximum sentence of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. Tovar will be sentenced on July 13, and Cruz Moreno, Perez Sandoval, Torres, and Rosales Juarez will be sentenced on August 31. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division; Tim Foley, Acting Special Agent in Charge of the Drug Enforcement Administration, New York Division; Colonel Sean Reeves, Chief of Albemarle County Police; Douglas W. Keen, Chief of Manassas City Police; Peter Newsham, Chief of Prince William County Police; Amy Ashworth, Commonwealth Attorney for Prince William County; and Kevin Davis, Chief of Fairfax County Police, made the announcement after U.S. District Judge Anthony J. Trenga accepted the verdict.
Assistant U.S. Attorneys Nicholas Murphy, Nicholas J. Patterson, and Amanda Lowe are prosecuting the case.
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. 1:20-cr-18.
Former Prison Case Manager Sentenced and Former Correctional Officer Pleads Guilty in Bribery Schemes to Smuggle Contraband to InmatesRead the Press Release
A North Carolina man was sentenced to nearly four years in prison for accepting bribes to smuggle drugs and other contraband into Caledonia Correctional Institution (now Roanoke River Correctional Institution), and another North Carolina man pleaded guilty to a similar scheme.
Ollie Rose III, 62, of Pleasant Hill, was sentenced on March 15 to 46 months in prison and ordered to forfeit $42,000. According to court documents, Rose worked as a case manager at Caledonia Correctional Institution, a state prison in Halifax County. Rose admitted to using his position to smuggle contraband — including marijuana, tobacco, and synthetic cannabinoids (K2) — into the prison for inmates in exchange for bribes totaling at least $42,000, paid in cash and via a mobile application, and that he sometimes also took a portion of the drugs he smuggled into the prison as payment. The scheme lasted from at least November 2018 through October 2020, when Rose was arrested.
Warren Reed, 38, of Scotland Neck, pleaded guilty on March 18 to extortion under color of official right. According to court documents, Reed worked as a correctional officer at Caledonia Correctional Institution. He admitted to using his position as a public official to smuggle contraband — including marijuana and cell phones — into the prison for inmates in exchange for bribes. Reed is scheduled to be sentenced on June 20, and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Special Agent in Charge Robert R. Wells of the FBI’s Charlotte Field Office made the announcement.The FBI investigated the case with significant assistance from the North Carolina Department of Public Safety.
Trial Attorneys Rebecca M. Schuman and Lauren E. Britsch of the Criminal Division’s Public Integrity Section are prosecuting the cases.
The cases are part of the Justice Department’s ongoing efforts to combat prison corruption. In addition to the above matter, the Public Integrity Section has obtained convictions against two other former North Carolina prison officials who smuggled contraband, including illegal narcotics, into Caledonia Correctional Institution in exchange for bribe payments. See United States v. Jeremy Chambers, No. 4:21-CR-00038 (E.D.N.C.); United States v. Kenneth Farr, No. 4:21-CR-00009 (E.D.N.C.). Separately, the Public Integrity Section has obtained convictions against several federal prison officials who smuggled contraband into Leavenworth Detention Center. See United States v. Willie Golden, Case No. 2:21-CR-20061 (D. Kan.); United States v. Janna Grier, Case No. 2:22-CR-20001 (D. Kan.); United States v. Jeane Arnette, Case No. 2:21-cr-20063 (D. Kan.); United States v. Cheyonte Harris, No. 2:21-CR-20054 (D. Kan.); United States v. Jacqueline Sifuentes, No. 2:21-CR-20053 (D. Kan.).
Former Postal Employee Pled Guilty to Unlawfully Opening the MailRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that TYRONE DILLING, age 27, of New Orleans, Louisiana pleaded guilty on March 17, 2022, to unlawfully opening the mail before the Honorable Barry W. Ashe, District Court Judge, Eastern District of Louisiana.
According to documents filed in federal court, TYRONE DILLING was employed by the United States Postal Service as a letter carrier in New Orleans when he was apprehended opening and tampering with the content of mail items he was entrusted to handle for the Postal Service.
The maximum penalty for the offense is five years imprisonment and/or a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to the victim followed by up to three years of supervised release, and a mandatory special assessment of one hundred dollars.
U.S. Attorney Evans praised the work of the United States Postal Service, Office of the Inspector General in investigating this matter. Assistant United States Attorney Richard R. Pickens, II is in charge of the prosecution.
Former Postal Employee Pleads Guilty to Unlawfully Opening the MailRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that TYRONE DILLING, age 27, of New Orleans, Louisiana pleaded guilty on March 17, 2022, to unlawfully opening the mail before the Honorable Barry W. Ashe, District Court Judge, Eastern District of Louisiana.
According to documents filed in federal court, TYRONE DILLING was employed by the United States Postal Service as a letter carrier in New Orleans when he was apprehended opening and tampering with the content of mail items he was entrusted to handle for the Postal Service.
The maximum penalty for the offense is five years imprisonment and/or a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to the victim followed by up to three years of supervised release, and a mandatory special assessment of one hundred dollars.
U.S. Attorney Evans praised the work of the United States Postal Service, Office of the Inspector General in investigating this matter. Assistant United States Attorney Richard R. Pickens, II is in charge of the prosecution.
Former Member of Springfield Latin Kings Chapter Sentenced to Five Years in Prison for Firearm OffenseRead the Press Release
BOSTON – A former member of the Springfield Chapter of the Massachusetts Almighty Latin King and Queen Nation (Latin Kings) was sentenced yesterday in federal court in Boston for a firearm offense.
Hector Adorno, a/k/a “King Gordo,” 36, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to five years in prison and three years of supervised release. On Sept. 1, 2021, Adorno pleaded guilty to being a felon in possession of ammunition.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
In May 2019, Adorno was wanted on assault charges. At the time of his arrest, Adorno was found in possession of a loaded firearm, located beside him at arm’s reach on a bedroom nightstand in his residence. Adorno was also on supervised release at the time for a serious federal drug conviction, for which he served 106 months, and was prohibited from possessing firearms and ammunition.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Adorno is the 47th defendant to be sentenced in the case.
The United States Attorney’s Office for the District of Massachusetts; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorney Philip A. Mallard of the Organized Crime & Gang Unit prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Employee Charged with Defrauding Apple, Money Laundering, and Tax CrimesRead the Press Release
SAN JOSE – A federal criminal case filed yesterday in the United States District Court for the Northern District of California charges Dhirendra Prasad with defrauding his former employer Apple, Inc. of millions of dollars and with money laundering and tax evasion, announced United States Attorney Stephanie M. Hinds and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge Mark H. Pearson.
The Information filed yesterday charges Prasad, 52, from Mountain House in San Joaquin County, with five crimes. In the first count, Prasad is charged with engaging in a conspiracy to commit wire and mail fraud from 2013 through January 2019. In the second and third counts, Prasad is charged with separate conspiracies to launder fraud proceeds. The fourth count charges Prasad with conspiring to evade a co-conspirator’s tax liabilities for several years, and the fifth count charges Prasad with evading his own income tax liabilities.
In a related case filing, the government alleges that Prasad was employed by Apple from December of 2008 through December of 2018. For most of that time, Prasad was a “buyer” in Apple’s Global Service Supply Chain and responsible for purchasing parts and services from vendors on Apple’s behalf. Prasad is alleged to have exploited his position by engaging in multiple different schemes to defraud Apple, including taking kickbacks, stealing parts, and causing Apple to pay for items and services it never received, resulting in a loss of more than $10,000,000. Prasad is also described as evading tax on the schemes’ proceeds, which he also laundered.
Prasad’s alleged co-conspirators are Robert Gary Hansen and Don M. Baker, both of whom reside in the Central District of California. Hansen and Baker both owned vendor companies that did business with Apple, and the charges allege they each conspired with Prasad to commit fraud and money laundering. Neither Hansen nor Baker were charged with Prasad, but they were each earlier charged in separate federal criminal cases also unsealed yesterday and they have both admitted their involvement.
In addition, the United States filed a civil forfeiture action related to the criminal charges against Prasad in federal court on September 24, 2021. In that suit, the United States seeks to forfeit five pieces of real property and a dozen financial accounts traced to Prasad’s crimes. Those assets – which have an estimated aggregate value of $5,000,000 – have been frozen or otherwise encumbered pursuant to a court-authorized seizure warrant. The civil forfeiture action remains pending.
Prasad is scheduled to make his initial appearance on the criminal charges in San Jose federal court before United States Magistrate Judge Susan van Keulen on March 24, 2022.
The Information charges Prasad with conspiracy to commit wire and mail fraud in violation of 18 U.S.C. § 1349. The maximum statutory sentence of imprisonment for a violation of 18 U.S.C. § 1349 is 20 years. Prasad is also charged with two counts of conspiracy to engage in money laundering in violation of 18 U.S.C. § 1956(h), and the maximum statutory sentence of imprisonment for each violation of 18 U.S.C. § 1956(h) is 20 years. The fourth count against Prasad charges a conspiracy to defraud the United States in violation of 18 U.S.C. § 371. The maximum statutory sentence of imprisonment for a violation of 18 U.S.C. § 371 is five years. Lastly, Prasad is charged with one count of tax evasion in violation of 26 U.S.C. § 7201, which carries a maximum statutory sentence of imprisonment of five years. Any sentence following a conviction would be imposed by a court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The charges contained in the criminal Information are only allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law.
Assistant United States Attorney Michael G. Pitman is prosecuting the case, with the assistance of Sahib Kaur. Assistant United States Attorney Karen D. Beausey is representing the United States in the civil forfeiture action, with the assistance of Brenda Lukaitis. The prosecution was the result of an investigation led by Internal Revenue Service, Criminal Investigation.
Former AEP Employee Sentenced on Federal Fraud and Tax ChargesRead the Press Release
ROANOKE, Va. – United States Attorney Christopher R. Kavanaugh announced that Gregory Thomas Holland, 64, of Roanoke, Virginia, and a former American Electric Power (AEP) employee, was sentenced today to 36 months in federal prison for wire fraud and filing false tax returns.
“For almost three decades, Gregory Holland was trusted to manage the accounts of American Electric Power customers. However, instead of living up to that trust, Holland betrayed it and stole more than $1.6 million dollars,” United States Attorney Christopher R. Kavanaugh said today. “Today’s sentence reflects the seriousness of Holland’s crimes and demonstrates that the prosecution of white-collar crime is one of my Office’s highest priorities. Our dedicated team is determined to work together with federal law enforcement to bring justice on behalf of the victims of fraud in Western District of Virginia.”
“Gregory Holland exploited his position of trust to enrich himself and spend his company’s money to support an excessive lifestyle while not reporting the stolen income to the IRS,” said Darrell Waldon, Special Agent in Charge of Internal Revenue Service-Criminal Investigation Washington D.C. Field Office. “Our special agents will continue to work with our law enforcement officers to follow the money trail and seek out those who don’t pay their fair share of taxes.”
According to court documents, Holland was employed at AEP for over 35 years and was responsible for managing AEP’s interests during customer bankruptcies, including filing claims on behalf of AEP as well as processing and collecting customer payments.
In 2001, unbeknownst to anyone else in the company, Holland opened a personal checking account using AEP’s name and address. Between May 2002 and January 2018, Holland admitted to depositing hundreds of checks intended for AEP into this account and used the money for numerous personal expenses, including membership dues at the Roanoke Country Club, lake house payments, car payments, clothing purchases.
In addition, Holland did not report any of this stolen income on his IRS Form 1040 Individual Income Tax Returns for tax years 2011 through 2017. The court determined today the total loss to AEP customers to be $1,616,591 with an additional $88,254 loss to the IRS.
The Internal Revenue Service-Criminal Investigation, the United States Secret Service, and the Virginia State Police investigated the case.
Assistant U.S. Attorney Michael Baudinet prosecuted the case.
Florida Resident Indicted for Possessing with Intent to Distribute 500 Grams or More of MethamphetamineRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced today that DANTE BOWMAN, age 22, and a resident of Lake Worth, Florida, was charged in a one count indictment by a federal grand jury with possession with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A).
According to the indictment, on October 19, 2021, BOWMAN possessed with intent to distribute methamphetamine. If convicted of Count One, BOWMAN faces a mandatory minimum sentence of 10 years and up to life imprisonment, a fine of up to $10,000,000, at least five years of supervised release following any term of imprisonment, and a $100 mandatory special assessment fee.
U.S. Attorney Evans reiterated that the indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was investigated by Homeland Security Investigations and the Louisiana State Police. The prosecution is being handled by Assistant United States Attorney David Howard Sinkman.
Final Two Defendants Convicted in Prison-Based Drug Trafficking RingRead the Press Release
WICHITA, KAN. – A federal jury convicted two Wichita men on charges related to an inmate-run drug trafficking ring headquartered from a prison cell in the Oklahoma State Penitentiary.
Following the presentation of court documents and evidence at trial, a jury found Kevin Lewis, 58, and Travis Vontress, 45, guilty of conspiracy to distribute methamphetamine, conspiracy to distribute heroin, conspiracy to distribute cocaine powder, maintaining drug involved premises, and unlawful use of a telephone in furtherance of drug trafficking,
A jury also convicted Lewis of conspiracy to distribute crack cocaine. Vontress was also found guilty of possession with intent to distribute powder cocaine, and possession of a firearm in furtherance of drug trafficking. Both men are scheduled for sentencing June 22.
Twenty-one defendants pled guilty to charges related to this case. They include Travis Knighten, 49, and Armando Luna, 43, both inmates at the Oklahoma State Penitentiary. Knighten served as the brains of the operation and while in prison, used cell phones to direct co-conspirators in Wichita in the distribution of methamphetamine, heroin, cocaine, and other illicit drugs. Knighten is serving a 90-year sentence for killing a prison guard in 1993. The other defendants, all of Wichita, are Richard Adams, 29, David Bell, 48, Frederick Collins, 49, Byron Fitchpatrick, 47, Eric Goodwin, 55, Dorzee Hill, 42, Santoria Hill, 53, Orlando Hogan, 46, Derek Hubbard, 46, Mario Ponds, 41, Otis Ponds, 43, Robert Richmond, 50, Kimberly Schmidtberger, 40, Shamtus Smallwood, 48, Kevin Walker, 56, Tia Ward, 42, Eddie Washington, 62, Trevor Wells, 41, and Dallas Williams, 40.
“This sophisticated criminal organization went to great lengths to conceal their illegal activities from law enforcement such as using code words for various narcotics and street names instead of actual names. These court convictions show that as criminals work to evade the law, there are prosecutors and law enforcement agencies working just as hard to bring them to justice,” said Duston Slinkard, U.S. Attorney – District of Kansas.
The FBI, Wichita Police Department, Drug Enforcement Administration (DEA), Sedgwick County Sheriff’s Office, Barton County Sheriff’s Office, U.S. Postal Service, Sedgwick County Regional Forensic Science Center, Homeland Security Investigations (HSI), U.S. Marshall Service, Alcohol, Tobacco, Firearms, and Explosives (ATF), and the Nebraska State Patrol investigated the case.
Assistant U.S. Attorney Matt Treaster and Special Assistant U.S. Attorney Katie Andrusak prosecuted the case.
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Fentanyl symposium to feature experts in enforcement, prevention, treatmentRead the Press Release
MORGANTOWN, WEST VIRGINIA – Fentanyl will be the focus of an event next week in Morgantown that will bring national experts to West Virginia to identify solutions to the substance abuse crisis.
Top officials from the Drug Enforcement Administration, the Centers for Disease Control & Prevention, and the U.S. Border Patrol will be featured at the West Virginia Fentanyl Symposium, to be held on March 24. The audience will be filled with prosecutors, sheriffs, and police chiefs from throughout the state.
Speakers at the event will include Raymond Donovan, Chief of Operations at the DEA, who will address the Mexican cartel threat to the United States. Dr. Grant Baldwin, head of overdose prevention for the CDC, will discuss his agency’s response to the current crisis. Best-selling author Ben Westhoff, who penned the book “Fentanyl, Inc.”, will share his research on the fentanyl factories in China. The complete agenda can be found at https://www.ahidta.org.
“Fentanyl is widely available, highly addictive and causing damage to West Virginia unlike any other drug ever has,” said William Ihlenfeld, United States Attorney for the Northern District. “It’s critical that we hear from the best and the brightest as we fine tune our approach to enforcement and prevention.”
“A tragic number of West Virginians are losing their lives to fentanyl-related overdose deaths, devastating families and communities,” said Will Thompson, U.S. Attorney for the Southern District. “The West Virginia Fentanyl Symposium provides a valuable opportunity for us to learn from law enforcement, prevention and treatment leaders and to further sharpen our “all hands on deck” response to the opioid epidemic.”
Drug task force commanders will participate in a separate track, to share best practices and new trends in drug trafficking, and to finalize a statewide fentanyl enforcement strategy.
The invitation-only event is sponsored by the Appalachia High Intensity Drug Trafficking Area with support from the U.S. Attorney’s Offices for the Northern and Southern Districts.
Federal Jury Convicts Cairo, Georgia, Man for His Role in 100+ Kilo Meth Distribution NetworkRead the Press Release
ALBANY, Ga. – A Southwest Georgia man was found guilty on all counts by a federal jury yesterday afternoon following a four-day trial resulting from an Organized Crime Drug Enforcement Task Force (OCDETF) investigation into an extensive drug trafficking organization responsible for distributing more than 100 kilograms of methamphetamine in the region.
Kentrail Brown, 31, of Cairo, Georgia, was convicted of conspiracy to possess with intent to distribute methamphetamine, distribution of methamphetamine, possession with intent to distribute methamphetamine and possession of a firearm in furtherance of drug trafficking on March 17, following a trial that began on March 14, before U.S. District Judge Leslie Abrams Gardner. Brown faces a minimum of ten years up to a maximum life imprisonment. There is no parole in the federal system.
“Kentrail Brown’s conviction concludes an extensive Organized Crime Drug Enforcement Task Force investigation that ultimately shut down a methamphetamine trafficking network centered in a small Southwest Georgia community. Brown, along with 15 co-defendants convicted in this case, have been held accountable for the grave harm caused by their criminal activities,” said U.S. Attorney Peter D. Leary. “The U.S. Attorney’s Office for the Middle District of Georgia and our law enforcement partners are using every tool at our disposal to make our region safer and hold repeat and violent criminals accountable.”
“The conviction of these defendants is an example of DEA’s effort to confront, engage and eliminate drug distribution networks,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “Because of the collaborative effort between DEA and its law enforcement partners, these defendants will spend well-deserved time in federal prison.”
“As this exhaustive investigation ends, we can assure citizens of Southwest Georgia that they are much safer because Brown and his co-defendants are off their streets,” said Philip Wislar, Acting Special Agent in Charge of FBI Atlanta. “The FBI would like to thank our federal, state and local law enforcement partners for all of their hard work and commitment to ending the opioid epidemic here in Georgia.”
“This conviction demonstrates the great work of law enforcement at all levels to investigate and prosecute the illegal distribution of methamphetamine, a dangerous drug that continues to wreak havoc on Georgia communities. The GBI remains committed to working with our local and federal partners in drug enforcement to address these types of crimes,” said GBI Director Vic Reynolds.
According to court documents and evidence presented at trial, agents conducted a wiretap investigation into the drug distribution activities of Brown and numerous co-defendants beginning in March 2019. The investigation revealed that Brown and his co-defendants were engaged in the distribution of methamphetamine in southwest Georgia. In all, more than 100 kilograms of methamphetamine are attributable to this organization.
The following co-defendants entered guilty pleas in this case and have been sentenced:
Phil Grim, 45 of Cairo, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and was sentenced to serve 120 months imprisonment to be followed by five years of supervised release;
James Levy Sapp, 40, of Cairo, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and was sentenced to serve 87 months imprisonment to be followed by five years of supervised release;
Mitchell Tomberlin, 49 of Whigham, Georgia, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and was sentenced to serve 60 months imprisonment to be followed by three years of supervised release; and,
R. Kevin Barrineau, 48 of Cairo, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and was sentenced to serve 57 months imprisonment to be followed by three years of supervised release;
The following co-defendants have entered guilty pleas and sentencings are scheduled for June 15-17:
Tobias Sanders, 32, Cairo, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and faces a maximum sentence of life in prison and a $10,000,000 fine;
Xavier Jordan, 33, of Cairo, pleaded guilty to possession with intent to distribute methamphetamine and faces a maximum sentence of life in prison and a $10,000,000 fine;
Joseph Jones aka Bae, 31, of Cairo, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and faces a maximum sentence of life in prison and a $10,000,000 fine;
David Donald, 37, of Cairo, pleaded guilty to possession with intent to distribute methamphetamine and faces a maximum sentence of life in prison and a $10,000,000 fine;
Orrie Bell, 35, of Cairo, pleaded guilty to possession with intent to distribute methamphetamine and faces a maximum sentence of life in prison and a $10,000,000 fine;
Richard Bond, 47, of Cairo, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and faces a maximum sentence of life in prison and a $10,000,000 fine;
Mike Thomas, 47, of Cairo, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and faces a maximum sentence of life in prison and a $10,000,000 fine;
Demorris Adams, 32, of Whigham, Georgia, pleaded guilty to distribution of methamphetamine and faces a maximum sentence of 40 years in prison and a $5,000,000 fine;
Dewayne Isom, 31, of Cairo, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and faces a maximum sentence of 20 years in prison and a $1,000,000 fine;
Nicholas Harden, 29, of Cairo, pleaded guilty to use of a communication facility in furtherance of a drug trafficking crime and faces up to four years in prison and a $250,000 fine; and
Shandrekia Mango, 34, of Cairo, pleaded guilty to misprision of a felony and faces up to three years in prison and a $250,000 fine.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/ocdetf.
The case was investigated by DEA, FBI, GBI, Grady County Sheriff’s Office and Thomas County Sheriff’s Office.
Assistant U.S. Attorney Leah McEwen prosecuted the case.
Federal Defendant Admits to Threatening U.S. Probation OfficerRead the Press Release
PROVIDENCE, R.I. – A Woonsocket man convicted in September 2011on drug trafficking and firearm charges admitted in U.S. District Court on Wednesday that, while serving a term of supervised release related to that conviction, he threatened a United States Probation Officer, announced United States Attorney Zachary A. Cunha.
Following his conviction in 2011, Jason Collymore, 41, was sentenced to 144 months of incarceration to be followed by five years of federal supervised release. On Wednesday, Collymore pleaded guilty to an information charging him with threatening of a federal officer with bodily harm with intent to impede, intimidate, or interfere with the federal officer while engaged in the performance of his official duties.
According to charging documents, in June 2021, a U.S. Probation Officer twice contacted Collymore to discuss his failure to attend counselling sessions as required by the court. After the second call, Collymore made several vulgar-filled and combative telephone calls to the Probation Officer. Collymore continued failing to attend the court-ordered counselling sessions.
During a subsequent telephone conversation between Collymore and his Probation Officer, and witnessed and recorded by the Probation Officer’s supervisor, Collymore threatened to appear at the court in person with the “whole gang” and physically harm the Probation Officer.
Collymore is scheduled to be sentenced on June 22, 2022. Threatening of a federal officer with bodily harm with intent to impede, intimidate, or interfere with the federal officer while engaged in the performance of his official duties is punishable by statutory penalties of up to six years in federal prison to be followed by a term of supervised release of three years. The defendant’s sentence will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
The case was prosecuted by Assistant U.S. Attorney Zechariah Chafee, Sandra R. Hebert, and Lauren S. Zurier.
The matter was investigated by the United States Marshals Service.
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Essex County Man Sentenced to 33 Months in Prison for Conspiring to Fraudulently Obtain More Than $700,000Read the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 33 months in prison for conspiring to fraudulently obtain more than $700,000, U.S. Attorney Philip R. Sellinger announced.
Jefferson Robert, 31, of Newark, previously pleaded guilty by videoconference before U.S. District Judge Julien X. Neals to an information charging him with conspiring to commit wire fraud. Judge Neals imposed the sentence by videoconference today.
According to documents filed in the case and statements made in court:
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. The CARES Act created a new temporary federal program unemployment insurance program called Pandemic Unemployment Assistance (PUA), which provides unemployment insurance benefits (UIB) for individuals who are not eligible for other types of unemployment (e.g., self-employed, independent contractors, gig economy workers). The CARES Act also created a new temporary federal program that provides an additional $600 weekly benefit to those eligible for PUA and regular UIB. The Washington State Employment Security Department (ESD) administers and manages the regular unemployment and PUA programs in the State of Washington.
Robert opened bank accounts with a fraudulent passport in another individual’s name. He and his conspirators then caused an application to be made to ESD for UIB in the name of a victim. In response, ESD caused UIB to be deposited into one of the fraudulent bank accounts. Robert and his conspirators: partook in business email scams, including causing a victim to transfer approximately $28,000 into one of the bank accounts; partook in romance scams, including causing a victim to make five deposits into one of the bank accounts totaling approximately $19,000; and fraudulently obtained money from the IRS by causing the IRS to transfer payments in four victims’ names into one of the bank accounts. Once the fraudulently obtained money was in the bank accounts, Roberts moved the money, including through the purchase of money orders. Robert and his conspirators caused more than $700,000 in losses.
In addition to the prison term, Judge Neals sentenced Robert to three years of supervised release and ordered him to pay restitution of $675,371.
U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Damon Wood, Philadelphia Division; special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Jonathan Mellone in New York; and special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
Drug Dealer Pleads Guilty to Federal Drug Charges After Eight Days of TrialRead the Press Release
Greenbelt, Maryland –Adebowale Ojo, age 38, of Damascus, Maryland, pleaded guilty late yesterday to conspiracy to distribute controlled substances and to distribution of controlled substances, after eight days of trial. Ojo admitted that he distributed cocaine, crack cocaine, and heroin, in Maryland and West Virginia.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Marcus Jones of the Montgomery County Police Department.
According to his guilty plea, during the course of the conspiracy from about May 2016 through July 2018, Ojo distributed controlled substances, including crack cocaine, cocaine, and heroin, to both users and street level dealers in Maryland, including Montgomery and Frederick Counties, as well as in West Virginia. At times, Ojo used other individuals to turn over the drugs to his customers after Ojo arranged the sale of the substances and to drive him to conduct sales and to meet his sources of supply.
As detailed in the plea agreement, between January and March 2018, an individual purchased drugs from Ojo on four separate occasions, at the direction of law enforcement. Ojo met the individual at a restaurant in Gaithersburg to conduct the transactions. Ojo admitted that he sold the individual a total of 25.66 grams of crack cocaine, 5.82 grams of cocaine, 2.16 grams of heroin, and four grams of heroin/fentanyl mixtures. Another individual purchased crack cocaine and heroin from Ojo in July 2018, at the direction of law enforcement. That individual went to Ojo’s apartment in Martinsburg, West Virginia, where Ojo cooked the crack cocaine, then sold 2.88 grams of crack cocaine to that individual, as well as 1.64 grams of heroin.
On November 28, 2018, Ojo was a back seat passenger in a vehicle that was stopped by a Maryland State Trooper near Frederick, Maryland. Ojo did not provide the Trooper with any identification, but did give his name. A query of the name revealed an outstanding warrant for his arrest. The Trooper also requested a drug detecting K-9 to scan the vehicle. The K-9 scan was positive. A subsequent search of Ojo’s person resulted in the discovery of a bag containing 13.82 grams of MDMA, also known as Molly and Ecstasy. Ojo admitted that he intended to distribute the MDMA.
Ojo and the government have agreed that, if the Court accepts the plea agreement, Ojo will be sentenced to between 11 and 20 years in federal prison. U.S. District Judge George J. Hazel has scheduled sentencing for Ojo on August 4, 2022, at 10:00 a.m.
United States Attorney Erek L. Barron commended the FBI and the Montgomery County Police Department for their work in the investigation and thanked the Maryland State Police for its assistance. Mr. Barron thanked Assistant U.S. Attorneys Jessica C. Collins and Kelly O. Hayes, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Disbarred Attorney Sentenced to Four Years for Conspiring to Commit Bankruptcy Fraud and Defrauding Clients of $1.3 MillionRead the Press Release
Tampa, Florida – U.S. District Judge Thomas Barber has sentenced James Lee Clark (61, Wilton Manors) to 48 months in federal prison for conspiracy to commit bankruptcy fraud and wire fraud. Clark had pleaded guilty on December 14, 2021.
According to court documents, from January 2010 through February 2017, Clark, who was a licensed attorney, conspired with his paralegal, Eric Liebman, to defraud mortgage creditors and guarantors holding notes on properties in foreclosure. Clark and Liebman falsely and fraudulently represented to distressed homeowners that they would negotiate with creditors and guarantors to prevent foreclosures in exchange for the homeowners’ execution of quitclaim or warranty deeds for the properties to an entity controlled by Liebman. Clark and Liebman also convinced the homeowners to pay rent or agree to sell their houses. In order to continue collecting ill-gotten rents and/or profit from the property sales, Clark filed fraudulent bankruptcy petitions in the names of the homeowners to prevent the mortgage creditors from lawfully foreclosing and taking title to the properties.
Additionally, from January 2012 to February 2017, Clark defrauded his clients out of approximately $1.3 million. As part of his practice, Clark acted as a trustee for clients and held their money in various bank accounts. Instead of using the funds for the purpose intended by his clients, Clark diverted the money into his law firm’s bank accounts, and used it for personal expenses, like gambling, travel, and automobiles.
Liebman previously pleaded guilty to conspiracy to commit bankruptcy fraud. He was sentenced to 15 months’ imprisonment.
This case was investigated by the Federal Housing Finance Agency – Office of Inspector General and the Federal Bureau of Investigation. The Office of the United States Trustee for the Middle District of Florida (Tampa Division) provided substantial investigative support. It was prosecuted by Special Assistant United States Attorney Chris Poor.
Departments of Justice and State Launch International Program to Support Women in Leadership Roles in CounterterrorismRead the Press Release
The Department of Justice’s International Criminal Investigative Training Assistance Program (ICITAP) and the Department of State’s Counterterrorism Bureau (DOS/CT) recently launched a new program to support women in leadership roles in counterterrorism.
The project, Engaging Multinational Police Women on Equality and Rights (EMPoWER), builds the capacity of women to combat terrorism by supporting them through leadership opportunities and inclusion in counterterrorism efforts. The EMPoWER Program conducted its first-ever regional symposium this week in Opatija, Croatia, drawing more than two dozen law enforcement participants from Albania, Bosnia-Herzegovina, Kosovo, Montenegro, North Macedonia, and Kenya.
“It is said that when it comes to terrorism, the world is small,” said ICITAP Director Gregory Ducot. “We recognize the need to increase the participation of women in counterterrorism law enforcement by educating leaders, creating opportunities for networking, and connecting with professional colleagues.”
“As leaders, we are supposed to listen to everyone around us,” said Samuel L. Pineda, Director of the Programs Office with DOS/CT. “We are supposed to empower people to be their best. And that’s what the EMPoWER Program is supposed to do: help us all become better through education, through support, and through operational networks that help us carry out our mission.”
“We hope that this is the first of many symposiums that not only help women to succeed in their role in the country-specific law enforcement agencies, but will also help U.S. counterterrorism efforts abroad,” said ICITAP Senior Law Enforcement Advisor – EMPoWER Lynn Holland.
The inaugural symposium in Croatia included executive law enforcement and counterterrorism subject matter experts, who provided weeklong advanced professional training.
Developing advanced training, providing mentorship programs, and offering insight into current trends in new technology are key elements for building the capacity of women engaged in combatting terrorism globally.
The EMPoWER Program plans to expand its initiatives in other regions, including Asia and Africa and the Middle East and serve as the beginning of the process of identifying and engaging up-and-coming leaders in the field of counterterrorism in their respective countries. Consecutively, this initiative will lead to the creation of regional task forces in which selected leaders will engage in international collaboration, strategic communication, and information sharing with U.S. government agencies, jointly working toward the goal of countering terrorism on the global platform.
To learn more about ICITAP, visit: https://www.justice.gov/criminal-icitap.
Council Bluffs Woman Sentenced to 15 Years’ Imprisonment for Methamphetamine and Firearm ChargesRead the Press Release
United States Attorney Jan Sharp announced that Angela Michelle Brown, 46, of Council Bluffs, Iowa, was sentenced on March 18, 2022, in federal court in Omaha, Nebraska, for conspiracy to possess with intent to distribute methamphetamine, and possession of a firearm during a drug trafficking crime. Chief United States District Court Judge Robert F. Rossiter, Jr. sentenced Brown to 10 years’ imprisonment on the drug charge and a consecutive 5 years on the gun charge. There is no parole in the federal system. After completing her term of imprisonment, Brown will begin a 5-year term of supervised release.
In October of 2017, Omaha Police Officers utilized a cooperating witness to buy gram quantities of methamphetamine from Brown at various Omaha locations. The cooperator conducted four buys over a year and a half. During each buy, Brown took the cooperator with her to buy from her source of supply of methamphetamine.
On April 16, 2021, officers arrested Brown on an arrest warrant. In her possession officers found approximately 50 grams of methamphetamine and a gun.
This case was investigated by the Omaha Police Department.
Correctional Officer Greg Mckenzie Indicted for Obstructing Investigation of Smuggling of Firearm into Metropolitan Correctional CenterRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Michael J. Driscoll, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Ryan T. Geach, Special Agent-in-Charge of the Department of Justice Office of the Inspector General New York Field Office (“DOJ-OIG”), announced today the unsealing of an indictment charging GREG MCKENZIE, a Bureau of Prisons correctional officer, with obstructing a federal investigation into the smuggling of a firearm into the Metropolitan Correctional Center (“MCC”). The loaded firearm was recovered from inside the MCC on March 5, 2020. MCKENZIE was arrested today and will be presented before Magistrate Judge Robert W. Lehrburger later today. The case has been assigned to U.S. District Judge P. Kevin Castel.
U.S. Attorney Damian Williams said: “Greg McKenzie is alleged to have obstructed justice by lying to federal agents investigating the smuggling of a firearm into the MCC in 2020. His alleged use of a prepaid cellphone to communicate secretly with an inmate from whose prison cell the firearm was recovered and subsequent false denials about those communications is a serious crime.”
FBI Assistant Director-in-Charge Michael J. Driscoll said: “McKenzie allegedly obstructed justice when he lied to federal investigators regarding his contact with a MCC inmate who last occupied a cell in which a loaded firearm was discovered. As a federal corrections officer, McKenzie was responsible for protecting the welfare of the inmates and his coworkers in the facility. Instead of fulfilling that duty, he chose to lie to the agents investigating a gravely serious violation of safety protocols. With today’s charges, he will be forced to face the consequences of his actions.”
DOJ-OIG Special Agent-in-Charge Ryan T. Geach said: “McKenzie’s alleged lying and obstruction of a federal investigation are serious offenses, especially because a loaded firearm in the hands of an inmate endangers not just the prison, but the entire community.”
According to the Indictment[1] unsealed today:
On or about March 5, 2020, a loaded .22 caliber firearm (the “Firearm”) was recovered from inside an MCC prison cell that had last been occupied by two inmates, including “Inmate-1.” Several weeks before the Firearm was recovered, Inmate-1 and his wife had each communicated by phone with a particular cellphone used by MCKENZIE (the “McKenzie Prepaid Cellphone”). However, when law enforcement agents interviewed MCKENZIE regarding the Firearm investigation, MCKENZIE falsely denied having any connection to the McKenzie Prepaid Cellphone.
Specifically, on January 30, 2020, MCKENZIE purchased the McKenzie Prepaid Cellphone from a store in lower Manhattan, just moments after having withdrawn approximately $120 in cash from a nearby ATM. The next day, MCKENZIE used the McKenzie Prepaid Cellphone to repeatedly exchange calls with Inmate-1 – who was using a contraband cellphone from within the MCC – and Inmate-1’s wife.
Meanwhile, cellphone location information revealed that the McKenzie Prepaid Cellphone frequently traveled between MCKENZIE’s Danbury, Connecticut residence and the MCC on dates and times consistent with MCKENZIE’s work schedule. On the evening of January 31, 2020, MCKENZIE and Inmate-1’s wife each briefly traveled to the same location in the Bronx at the same time, and MCKENZIE thereafter traveled directly to the MCC to begin a shift beginning at midnight on February 1, 2020, whereupon he was assigned to the very unit where Inmate-1 was housed and from where the Firearm was later recovered.
Surveillance video and call detail records further established that after beginning his February 1, 2020, shift, MCKENZIE and a colleague conducted a routine check of Inmate-1’s cellblock. Moments later, Inmate-1, using a contraband cellphone, called and then texted the McKenzie Prepaid Cellphone. Within minutes, MCKENZIE briefly returned to Inmate 1’s cellblock – this time alone – while appearing to carry an object under his left arm.
On November 4, 2021, two federal agents conducted a voluntary interview with MCKENZIE. During the interview, MCKENZIE falsely denied ownership, possession, and use of the McKenzie Prepaid Cellphone, and falsely denied ever using any prepaid cellphone to communicate with an MCC inmate or inmate’s associate.
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MCKENZIE, 35, of Danbury, Connecticut, is charged with one count of false statements, in violation of 18 U.S.C. § 1001(a)(2), which carries a maximum penalty of five years in prison, and one count of obstruction of justice, in violation of 18 U.S.C. § 1512(c)(2), which carries a maximum penalty of 20 years in prison.
Mr. Williams praised the outstanding work of the FBI, DOJ-OIG, Special Agents from the U.S. Attorney’s Office for the Southern District of New York, and the U.S. Customs and Border Protection in New York.
The prosecution of this case is being handled by the Office’s Public Corruption and Narcotics Units. Assistant United States Attorneys Aline R. Flodr, Jonathan E. Rebold, and Daniel H. Wolf are in charge of the prosecution, with assistance from Assistant United States Attorney Juliana N. Murray.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described therein should be treated as an allegation. The defendant is presumed innocent unless and until proven guilty.
Converse Man Sentenced for Trafficking MethamphetamineRead the Press Release
SHREVEPORT, La. - United States Attorney Brandon B. Brown announced that John Matthew Tatum, 45, of Converse, Louisiana, has been sentenced by United States District Judge Donald E. Walter to 63 months in prison, followed by 5 years of supervised release, for his involvement in a drug trafficking conspiracy in Sabine Parish between August 2020 and May 2021.
Tatum pleaded guilty on November 18, 2021 to a Bill of Information charging him with one count of conspiracy to possess with intent to distribute methamphetamine, following an investigation by agents with the Federal Bureau of Investigation (FBI) and Sabine Parish Sheriff’s Office.
On May 6, 2021, investigators executed a search warrant upon Tatum’s residence and located a safe containing approximately 413 net grams of pure methamphetamine. Also found in Tatum’s possession were 22 firearms, including a stolen handgun inside his vehicle, and cash proceeds from drug sales.
This case was investigated by the FBI and Sabine Parish Sheriff’s Office and was prosecuted by Assistant U.S. Attorneys Cadesby B. Cooper and Mike Shannon.
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Computer consultant sentenced to prison for access device fraud schemeRead the Press Release
ATLANTA – Kevin Kirton has been sentenced for running an access device fraud scheme that involved stealing over $600,000 in fraudulent tax refunds from the Internal Revenue Service.
“Kirton created technical ‘solutions’ to conduct his own fraud schemes and help others commit fraud,” said U.S. Attorney Kurt R. Erskine. “Every thief believes they have developed a new undetectable method to steal. As in this case, they will be caught, prosecuted, and face years in federal prison to contemplate their failed endeavor.”
“Kirton was part of a significant tax fraud scheme and his operation defrauded American taxpayers by using stolen identities to solicit the issuance of fraudulent tax refunds,” said Special Agent in Charge, James E. Dorsey, IRS. “This sentencing should serve as a warning to other would-be schemers. As tax filing season continues, those attempting similar thefts from the US Treasury should be aware, Special Agents of IRS – Criminal Investigation will continue the aggressive pursuit of anyone attempting to defraud America's tax system."
“As evidenced by the length of the prison sentence in this case, fraud is a pernicious crime, especially when it involves identity theft.” said U.S. Secret Service Special Agent in Charge Steven R. Baisel. “The Secret Service along with our federal partners will continue to aggressively investigate and bring to justice those attempting to compromise our financial infrastructure.”
“The egregious criminal conduct in this case resulted in the theft of both identities and tax refunds, and shows once again that crime does not pay,” stated Kyle A. Myles, Special Agent in Charge, Federal Deposit Insurance Corporation – Office of Inspector General (FDIC-OIG). “We continue to work together with our law enforcement partners to combat financial crime -- and its impact on our nation’s banks and financial institutions.”
According to U.S. Attorney Erskine, the charges and other information presented in court: Kevin Kirton created a computer program to file fraudulent federal income tax returns with the IRS. The computer program stored stolen identities and could be used to submit fraudulent tax returns in the names of stolen identities to the IRS, effectively automating stolen identity tax refund fraud. The computer program could be accessed remotely via the internet to prepare fraudulent tax returns. The resulting fraudulent tax refunds were deposited onto prepaid debit cards in the names of identity theft victims.
To help conceal the fraud activity, Kirton developed techniques to hide Internet Protocol addresses so the IRS could not trace a fraudulent tax return back to one particular origination point. Kirton also set up a bootleg phone system that he believed would not be susceptible to wiretaps to communicate with other criminals.
A search warrant was conducted at Kirton’s residence and law enforcement discovered, among other things, hundreds of prepaid debit cards in the names of identity theft victims and numerous fake driver’s licenses. Law enforcement also found a Treasury Inspector General for Tax Administration information booklet titled “Income and Withholding Verification Processes are Resulting in the Issuance of Potentially Fraudulent Tax Refunds.”
While Kirton’s case was pending and he was out on bond, he telephonically contacted an associate who was detained at the Robert A. Deyton Detention Facility, seeking to influence the testimony of a cooperator in his case. Recorded jail calls between Kirton and his jailed associate show that Kirton repeatedly sought to convey veiled threats to the cooperator through the jailed associate. Due to this conduct, Kirton’s bond was revoked and he was detained pending resolution of his case.
Kevin Kirton, 44, of Dallas, Georgia, was sentenced on March 14, 2022, to six years, nine months in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $629,551. On June 17, 2021, he pleaded guilty to access device fraud and aggravated identity theft.
This case was investigated by the Internal Revenue Service - Criminal Investigation, the U.S. Secret Service, and the Federal Deposit Insurance Corporation – Office of Inspector General.
Assistant U.S. Attorneys Samir Kaushal and Alana Black and Special Assistant U.S. Attorney Zack Howard prosecuted the case.
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.
Columbia Man, Moberly Woman Indicted for Armed Business, Bank RobberiesRead the Press Release
JEFFERSON CITY, Mo. – A Columbia, Missouri, man and a Moberly, Mo., woman have been indicted by a federal grand jury for their roles in a conspiracy to commit armed robbery at four business and two banks in six different cities.
Drake Adam Stockton-Kenney, 30, and Mary Catherine Sumpter, 28, were charged in an eight-count indictment returned under seal on Wednesday, March 16, by a federal grand jury in Jefferson City, Mo. The indictment was unsealed and made public today following Sumpter’s arrest.
The federal indictment alleges that Stockton-Kenney and Sumpter participated in an armed robbery conspiracy from Feb. 11 to Aug. 10, 2021. They allegedly stole at gunpoint $3,334 from Check into Cash in Moberly, Mo., on April 17, 2021; $297 from World Finance in Mexico, Mo., on May 4, 2021; $670 from Advance America in Marshall, Mo., on May 6, 2021; $200 from Check ‘n Go in Hannibal, Mo., on May 20, 2021; $8,690 from Alliant Bank in Pilot Grove, Mo., on June 2, 2021; and $22,027 from Alliant Bank in Boonville, Mo., on June 25, 2021.
In each of those six armed robberies, the indictment says, Stockton-Kenney brandished a firearm pointed directly at employees. They allegedly used physical restraints to immobilize employees of World Finance and Check ‘n Go during those robberies.
In addition to the conspiracy, Stockton-Kenney and Sumpter are charged together in one count of business robbery, related to the Advance America robbery on May 6, 2021, and two counts of bank robbery. The other three robberies occurred outside the Western District of Missouri.
Stockton-Kenney is also charged with three counts of brandishing a firearm during a crime of violence and one count of being a felon in possession of a firearm. Columbia police officers seized a Taurus 9mm pistol from Stockton-Kenney’s residence when he was arrested on Aug. 10, 2021, in an unrelated state case. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Stockton-Kenney has two prior felony convictions for burglary and prior felony convictions for tampering with a motor vehicle and robbery.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Boone County, Mo., Sheriff’s Department, the Booneville, Mo., Police Department, the Columbia, Mo., Police Department, the Cooper County, Mo., Sheriff’s Department, the Hannibal, Mo., Police Department, the Marion County, Mo., Sheriff’s Department, the Marshall, Mo., Police Department, the Mexico, Mo., Police Department, the Moberly, Mo., Police Department, the Pilot Grove, Mo., Police Department, the Missouri State Highway Patrol, the FBI, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Citizen of Mexico Residing in Bakersfield Sentenced to over 10 Years in Prison for Distributing Methamphetamine and FentanylRead the Press Release
Wilfredo Medina-Perez, 34, a native and citizen of Sinaloa, Mexico, residing in Bakersfield, was sentenced today to 10 years and five months in prison for distributing methamphetamine and fentanyl, U.S. Attorney Phillip A. Talbert announced.
According to court documents, from December 2018 to November 2019, Medina distributed approximately one pound of 100% pure methamphetamine and 8,078 counterfeit oxycodone pills containing fentanyl to an undercover agent. Medina was arrested on a federal criminal complaint filed on Nov. 22, 2019, and has remained in custody as a flight risk and danger to the community since that time. Medina pleaded guilty in December 2021.
Last week, one of Medina’s runners, Uriel Ivan Portillo, 35, also a native and citizen of Mexico, was sentenced to three years and four months in prison for distributing fentanyl. One of Medina’s customers, Rojelio Garcia, 49, of Bakersfield, was sentenced to time served for possessing fentanyl with the intent to distribute and placed on supervised release for three years.
This case was the product of an investigation by the Drug Enforcement Administration, the Southern Tri-County High Intensity Drug Trafficking Area Task Force, the Kern County Sheriff’s Department, and the Bakersfield Police Department. Assistant United States Attorneys Karen Escobar and Angela Scott prosecuted the case.
This effort was 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.
Chinle Man Sentenced to Nineteen Years for Killing of Navajo WomanRead the Press Release
PHOENIX, Ariz. – Sito Aeroplan Nalwood, 33, of Chinle, Arizona, was sentenced yesterday by U.S. District Judge Michael T. Liburdi to nineteen years in prison. Nalwood previously pleaded guilty to Voluntary Manslaughter.
On July 26, 2018, Nalwood attempted to take a bag from the victim by threatening her with a rifle. When the victim refused, Nalwood began firing shots around her. One of the shots hit the victim in the pelvis, which ultimately killed her. At the time he committed this crime, Nalwood was serving a term of supervised release, which had been imposed after Nalwood was convicted of an assault. The Court sentenced Nalwood to fifteen years in prison for voluntary manslaughter and an additional four years in prison for committing that crime while on supervised release.
Both Nalwood and the victim are members of the Navajo Nation, and the offense occurred in Chinle, on the Navajo Nation Indian Reservation.
The Federal Bureau of Investigation conducted the investigation in this case. Assistant U.S. Attorneys William G. Voit and Sharon K. Sexton, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-18-08328-MTL
RELEASE NUMBER: 2022-026_Nalwood# # #
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.Chinese national pleads guilty in money laundering schemeRead the Press Release
ATLANTA - Jianjie Liu has pleaded guilty to conspiracy to commit money laundering. Liu was charged in an 11-count indictment with money laundering conspiracy, nine counts of money laundering, and access device fraud. These charges stemmed from Liu’s role receiving money from victims of various telephone scams.
“Liu laundered hundreds of thousands of dollars from schemes that bilked elderly victims,” said U.S. Attorney Kurt R. Erskine. “Telephone scams regularly victimize the elderly and Liu played a pivotal role, receiving money directly from the victims.”
“This guilty plea demonstrates that my office will continue to pursue perpetrators of these malicious Social Security-related scams that prey upon unsuspecting people, especially the elderly, to deprive them of their assets and resources,” said Gail S. Ennis, Inspector General for the Social Security Administration. “I thank the Duluth Police Department for their assistance in this investigation and I thank the U.S. Attorney’s Office for prosecuting this case.”
According to U.S. Attorney Erskine, the charges and other information presented in court: in October 2019, Liu was arrested at a Walmart in Duluth, Georgia after she tried to purchase a suspicious number of gift cards. A search of her car found over 700 blank gift cards. A search of her phone revealed victim information. When contacted, the victims, most of whom were elderly, all reported that they had been victims of various telephone scams.
For example, an 89-year-old priest in Minnesota was victimized when a scammer, posing as an employee of an internet security company, offered him a $555 rebate. In order to get the rebate, the priest provided access to his bank account. The scammer pretended to mistakenly deposit $20,555 into the priest’s account. He asked the priest to return $20,000 by sending a $20,000 check to a bank account that Liu controlled.
In another scam, a 73-year-old woman in Washington was victimized when a scammer posing as a Facebook friend sent her a message telling her that she may qualify for a $150,000 government grant. The fake “friend” put her in touch with a scammer posing as a government agent. The purported ‘government agent’ advised the victim that she could only get the grant after she paid various fees. The victim sent three checks for $2,500, $4,000, and $4,500 to various addresses in the United States. She then purchased a $1,000 gift card and provided the PIN and access information to the fictitious government agent. The same day, Liu used the information from the gift card to purchase other gift cards in Louisiana.
In yet another scam, a 78-year-old man in South Carolina, was scammed when he received a call from someone claiming to be a police officer. The fictitious police officer told the victim that his grandson had been arrested and needed $9,000 in bail money. The victim sent a check for $9,000 to an address in Las Vegas. Later, the scammer called back and told him that his grandson had injured a police officer and the victim needed to pay the officer’s hospital bill. The victim then sent $5,000 to an account that Liu controlled.
The victims who sent Liu money lost hundreds of thousands of dollars. Liu personally received over $150,000. After Liu was indicted and was on pretrial release, she continued to receive money from scam victims. The court revoked her bond and detained her. Rather than appear in court, Liu fled the country and was on the run for approximately seven months. Liu was arrested at the Texas border while trying to re-enter the United States and is currently detained.
Jianjie Liu, 44, of Cypress, Texas, pleaded guilty to one count of conspiracy to commit money laundering. Sentencing is scheduled for June 16, 2022, at 9:00 a.m., before U.S. District Judge Eleanor L. Ross.
This case is being investigated by the Social Security Administration - Office of the Inspector General and Duluth Police Department.
Special Assistant U.S. Attorney Diane C. Schulman is prosecuting the case.
The U.S. Attorney’s Office for the Northern District of Georgia is part of the Department of Justice Transnational Elder Fraud Strike Force. The Strike Force focuses on investigating and prosecuting defendants associated with foreign-based fraud schemes that disproportionately affect American seniors. These include romance scams, phone scams, mass-mailing fraud schemes, and tech-support fraud schemes. For further information on these scams, see https://www.justice.gov/elderjustice/senior-scam-alert.
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.
Chicago Drug Dealer Who Flipped Car While Attempting to Flee from Police Sentenced to Federal PrisonRead the Press Release
A man who led Dubuque police on a high‑speed chase that ended with his car on its hood and his gun, heroin, fentanyl and cocaine in the snow was sentenced March 17, 2022, to four years in federal prison.
Richard Allen Roberts, age 39, from Chicago, Illinois, received the prison term after September 27, 2021 guilty pleas to one count of distributing crack near a playground and one count of being a felon in possession of a firearm.
In a plea agreement, Roberts admitted that he sold about a half gram of crack cocaine to a confidential informant near Jefferson Park in Dubuque on January 26, 2021. About a week later, police tracked Roberts’s car from Dubuque to Chicago. When he returned to Iowa on February 5, 2021, officers stopped the car after it crossed the bridge into Dubuque from Wisconsin. A narcotics K9 alerted to the odor of narcotics coming from Roberts’s vehicle. After an officer asked Roberts to get out of his car, Roberts put the car in gear and fled. During the subsequent chase, Roberts’ vehicle reached speeds in excess of 80 miles per hour and collided with a snowplow but kept going. Roberts eventually lost control of his car approximately 3.5 miles away in Illinois, flipping the car over into a snow‑filled median. When the car was turned back over, officers found a plastic bag containing about 32 grams of powder cocaine, 44 grams of crack cocaine, over 9 grams of heroin, 1.5 gram of heroin and fentanyl. Next to the bag was a Smith & Wesson 9mm pistol. Roberts had previously been convicted of 11 prior felony crimes in Illinois.
Roberts was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Roberts was sentenced to 48 months’ imprisonment. He must also serve a 6-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Roberts is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Dubuque Drug Task Force and prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 21‑CR‑1017‑CJW‑MAR.
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Celtic Cobra Team Honored with OCDETF National AwardRead the Press Release
Today, United States Attorney Chad E. Meacham presented the Organized Crime Drug Enforcement Task Forces National Award for Significant Contribution to Public Safety and Security to prosecutors and agents who worked Operation Celtic Cobra.
Celtic Cobra, which lasted from 2011 to 2019, led to the indictment of 60 individuals who trafficked drugs and laundered money for a number of drug cartels, including La Familia Drug Cartel, Los Caballeros Templarios, Cartel Nueva Generación de Jalisco, Los Zetas Cartel, Gulf Cartel, Puro Tango Blast Prison Gang, the Aryan Brotherhood of Texas, and Los Paisa’s Prison Gang.
At one point, undercover agents identified four people who used their positions of employment at the Dallas Fort Worth International Airport to bypass security to smuggle what they believed to be kilogram amounts of methamphetamine onto commercial airlines. At one point one defendant even agreed to smuggle inert explosives onto cross-country flights. These four defendants put the flying public at grave risk.
Over the course of the operation, the U.S Attorney’s Office, the Federal Bureau of Investigation’s Dallas Field Office, the Dallas Police Department, and the Internal Revenue Service Criminal Investigation Division seized approximately 50 firearms, $855,513.00 cash, $400,000.00 in real and personal property, 1,025 kilograms of methamphetamine, 12 kilos of cocaine, and 33 kilos of heroin.
All but three of the 60 defendants were captured; all 57 captured defendants pleaded guilty. One defendant received two life sentences in prison for drug trafficking and several defendants received maximum sentences for money laundering.
Award recipients included:
Assistant U.S. Attorney George LealAssistant U.S. Attorney John de la Garza
Assistant U.S. Attorney John Kull
FBI Special Agent Robert Benton
FBI Special Agent Joseph Mathews
The OCDETF program was established in 1982 in order to attack and reduce the supply of illegal drugs entering the United States and to diminish violence and other criminal activity associated with the drug trade. The OCDETF program works with federal, state, and local law enforcement agencies to identify, disrupt, and dismantle, drug traffickers and drug trafficking networks.
California Man Pleads Guilty to Misappropriating COVID-19 Relief FundsRead the Press Release
A California man pleaded guilty today in the Central District of California to stealing government funds designed to aid medical providers in the treatment of patients suffering from COVID-19. He also admitted to stealing additional government funds intended to help small businesses during the COVID-19 pandemic.
According to court documents, Gurgen Israyelyan, 39, of West Hills, admitted he owned Saint Christopher Hospice Inc. (SCH), a hospice agency in North Hollywood, which closed around September 2019. SCH, which was never operational during the COVID-19 pandemic, received approximately $89,162 designated for the medical treatment and care of COVID-19 patients. Israyelyan admitted he stole the funds by spending them for his personal use and by transferring them to family members, including a family member in Armenia, rather than using the funds in conjunction with pandemic relief efforts as required.
The charges against Israyelyan resulted from his intentional misuse of funds distributed from the Coronavirus Aid, Relief, and Economic Security (CARES) Act Provider Relief Fund, money specially apportioned by the CARES Act to help health care providers who were financially impacted by the COVID-19 pandemic to provide care to patients who were suffering from COVID-19, and to compensate providers for the cost of that care. These funds were critical to delivering relief to health care providers and maintaining access to medical care during the pandemic.
As part of his guilty plea, Israyelyan further admitted that he submitted, or caused to be submitted, five fraudulent Economic Injury Disaster Loan (EIDL) applications to the Small Business Administration (SBA) on behalf of SCH and four other entities that Israyelyan controlled: GMG Holdings LLC, Double G Ventures LLC, One Touch Assistants LLC, and G.I. Construction Group. As a result of the fraudulent EIDL applications, the SBA disbursed approximately $428,100 of EIDL funds to Israyelyan, all of which were proceeds that Israyelyan knew he was not entitled to and which Israyelyan used for his own personal benefit, contrary to EIDL requirements. The EIDL program, which was expanded under the CARES Act, was designed to provide loans to small businesses that suffered substantial economic injury from the COVID-19 pandemic.
Israyelyan pleaded guilty to three counts of theft of government property. He is scheduled to be sentenced on June 13 and faces up to 10 years in prison for each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; U.S. Attorney Tracy L. Wilkison for the Central District of California; Special Agent in Charge Timothy B. Francesca of the U.S. Department of Health and Human Services’ Office of Inspector General’s Los Angeles Regional Office; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; and Assistant Director Kristi Johnson of the FBI’s Los Angeles Field Office made the announcement.
Trial Attorney Chris Wenger and Senior Litigation Counsel Jim Hayes of the National Rapid Response Strike Force of the Criminal Division’s Fraud Section are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Birmingham Man Pleads Guilty to Drug and Gun ChargesRead the Press Release
BIRMINGHAM, Ala. – A Birmingham man pleaded guilty this week to drug and gun charges, announced U.S. Attorney Prim F. Escalona and Drug Enforcement Administration Assistant Special Agent in Charge Towanda Thorne-James.
LaMarcus Antonia Sills, Sr., 39, pleaded guilty before United States District Judge Abdul K. Kallon to charges that he possessed heroin with the intent to distribute, was a felon in possession of a firearm, and carried a firearm during and in relation to drug trafficking crime. Sentencing is scheduled for June 23, 2022.
According to the plea agreement, on July 16, 2020, Birmingham Police Officers had established a police checkpoint at the intersection of 29th Avenue North and 29th Street North, when a white Mercedes Benz came to a stop at the checkpoint. The driver, and sole occupant of the vehicle, was Sills. While speaking to Sills, officers detected the odor of marijuana coming from the vehicle and Sills admitted to officers that he had smoked a blunt earlier that day just outside the vehicle. During a search, Officers discovered a 9mm Sig Sauer pistol in Sills’ waistband. Officers searched the vehicle and found numerous plastic sandwich bags under the driver’s seat. In the backseat center arm rest, officers found a clear plastic sandwich bag containing marijuana, a plastic bag containing 30.79 grams of heroin, a small digital scale, and more empty sandwich bags.
Drug Enforcement Administration and Birmingham Police Department investigated the case. Assistant U.S. Attorney Darius Greene prosecuted the case.
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Beckley Man Enters Plea to Federal Drug CrimeRead the Press Release
BECKLEY, W.Va. – Eric Dale Mills, 45, of Beckley, pleaded guilty today to a federal drug crime.
According to court documents and statements made in court, on July 26, 2021, a Raleigh County Deputy Sheriff conducted a traffic stop on the car Mills was driving. Law enforcement officers searched the car and found over 50 grams of fentanyl and a small amount of methamphetamine. Officers also found small bags for packaging and scales. Mills admitted that he possessed the fentanyl and that he intended to distribute it.
Mills pleaded guilty to possession with intent to distribute 40 grams or more of a mixture or substance containing fentanyl and faces not less than five and up to 40 years in prison when he is sentenced on July 1, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Raleigh County Sheriff’s Department.
United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney Andrew D. Isabell is handling the prosecution.
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. 5:21-cr-00252.
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Baltimore Man Admits to Paying for International Video Chats Involving the Sexual Abuse of ChildrenRead the Press Release
Baltimore, Maryland – Steven Martin Bickling, age 48, of Baltimore Maryland, pleaded guilty yesterday to coercion and enticement of a minor.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his guilty plea, in 2018 Bickling visited a website that offered live chat rooms with Asian women. After hearing children in the background of chat rooms, Bickling asked a female performer to show her daughter nude for $50. After agreeing to Bickling’s request, the female performer posed her prepubescent daughter on video chat as Bickling masturbated. Bickling estimated that this conduct occurred 12 to 15 times within a two-year period. In at least one instance, Bickling masturbated during a video live chat involving a child that was approximately eight or nine years old. Bickling claimed that this occurred while he was drinking excessively.
As stated in his plea agreement, on August 19, 2020, Baltimore City detectives and members of the FBI Violent Crimes Against Children Task Force executed a search and seizure warrant at Bickling’s residence. Bickling was present at the time. During an interview with law enforcement, Bickling admitted that he possessed pornographic videos of children between five and twelve years of age saved on his laptop. Bickling also informed law enforcement that he paid for access to a restricted child pornography website.
A subsequent review of Bickling’s email account revealed numerous conversations in which Bickling solicited sexual images or videos of female children. For example, in an email communication on May 7, 2019, Bickling wrote “I like to rape young girls. Is that ok with you?”. On the same day, Bickling stated “I watch a lot of child prn . . . I like when they cry.” Additionally, in other chats dating as far back as 2018, Bickling solicited live video sessions of adult male relatives having sexual relations with their younger sisters or nieces.
As detailed in his plea agreement, a forensic analysis of the items seized from Bickling’s residence revealed a total of 21 images and 50 videos that depicted minors in sexually explicit conduct. The materials included depictions of prepubescent minors.
Bickling faces a minimum sentence of 10 years in prison and a maximum of life in prison, followed by up to a lifetime of supervised release, for coercion and enticement of a minor. U.S. District Judge Deborah L. Boardman has scheduled sentencing for August 10, 2022, at 10:00 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Erek L. Barron commended the FBI and the Baltimore Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Judson T. Mihok, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Baltimore Drug Dealer Sentenced to over Eight Years in Federal Prison for Gun Possession and Intent to Distribute Fentanyl, Cocaine, and HeroinRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Khalil Shaheed, age 28, of Baltimore, Maryland, today to 106 months in federal prison, followed by three years of supervised release, for intent to distribute controlled substances, possession of firearms in furtherance of drug trafficking, and possession of a firearm by a felon.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Division; Commissioner Michael Harrison of the Baltimore Police Department; Harford County Sheriff Jeffrey R. Gahler; and Carroll County Sheriff James DeWees.
According to his guilty plea, after the investigation of a fatal overdose victim in Harford County, Maryland, investigators examined the victim’s cell phone activity and noted that the victim purchased heroin from a contact labeled “T” on at least seven occasions. The last date the victim purchased heroin from “T” was on October 14, 2017, three days before the victim’s death. In the last conversation, “T” directed the victim to meet them in a Baltimore, Maryland grocery store bathroom.
As result of an investigation into an overdose, investigators began to conduct physical surveillance on Shaheed. On November 9, 2017, investigators watched Shaheed depart from his Baltimore, Maryland residence and travel to a gas station. Before parking the vehicle, Shaheed circled the parking lot, stopped at a gas pump, and then parked directly in front of the gas station store. Upon parking, Shaheed stood outside his vehicle, stood next to his car while appearing to look for someone. Minutes later, Shaheed entered the gas station and went directly to the bathroom while a detective followed him. As the detective entered the bathroom, Shaheed quickly exited the bathroom with another male subject. Shaheed proceeded to exit the store without making any purchases.
Believing that a drug deal had just occurred, law enforcement obtained a court order to install a GPS device on Shaheed’s vehicle.
As stated in his plea agreement, on November 16, 2017, investigators executed a search warrant on Shaheed’s residence and vehicle. As a result of the search warrants, officers discovered a 9mm handgun, cocaine, and heroin packaged for distribution in his vehicle. In his residence, officers found a .25 caliber handgun, $12,452.36 in cash, ammunition, and additional drugs. In total, law enforcement seized approximately 82 grams of cocaine, 55 grams of heroin and 7 grams of fentanyl. Additionally, officers seized a cellphone from Shaheed’s residence that was previously associated with the same number as the contact saved as “T” in the victim’s cell phone.
On November 6, 2019, a federal grand jury indited Shaheed on charges related to possession with intent to distribute controlled substances in November 2017, and possession of the firearms. An arrest warrant was issued based on these charges.
On November 20, 2019, federal investigators located Shaheed at his last residence and observed activity indicative of drug trafficking activity in plain view. Shaheed was arrested while officers executed a search warrant that resulted in the discovery of six bags of cocaine and a .25 caliber handgun.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Mr. Barron commended the DEA, the Baltimore County Police Department, the Harford County Sheriff’s Office, the Carroll County State’s Attorney’s Office, and the Carroll County Sheriff’s Office for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Kim Oldham and Special Assistant U.S. Attorney Jeffrey M. Hann, a cross-designated Baltimore City Assistant State’s Attorney, who are prosecuting this case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please https://www.justice.gov/usao-md/project-safe-neighborhoods-psn and https://www.justice.gov/usao-md/community-outreach.
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Bakersfield Resident Pleads Guilty to Fentanyl Distribution ConspiracyRead the Press Release
Adrian Rodriguez Cardenas, 21, of Bakersfield, pleaded guilty today to conspiracy to distribute fentanyl, U.S. Attorney Phillip A. Talbert announced.
On Feb. 4, 2022, co-defendant Keisean Rockmore, 27, of Bakersfield, pleaded guilty to possession with the intent to distribute fentanyl.
According to court documents, on Jan. 11, 2021, Cardenas negotiated with and sold to an undercover law enforcement officer counterfeit OxyContin/oxycodone pills containing fentanyl. Cardenas thereafter negotiated a second sale of pills to the undercover officer. On Jan. 19, 2021, Rockmore drove Cardenas and a third individual to a fast-food restaurant parking lot in Bakersfield to meet with and sell to the undercover officer 1,000 fentanyl-laced pills for the negotiated price of $2,900. During the meeting, when the undercover officer asked the vehicle occupants whether they had the pills, Rockmore motioned towards a bag on his lap and stated that he had it. At least one of the vehicle occupants possessed a firearm during the meeting, which he pointed at the undercover officer when a dispute arose during the transaction. Rockmore then fled in his vehicle with Cardenas and the third person to a nearby apartment complex, where they exited the vehicle and attempted to elude pursuing law enforcement officers. After law enforcement officers found and arrested Cardenas, Rockmore and the other person at the apartment complex, they discovered nearby a loaded firearm and more than 50 counterfeit OxyContin/oxycodone pills.
This case is the product of an investigation by the Drug Enforcement Administration and the Kern County Sheriff’s Office. Assistant U.S. Attorneys Christopher D. Baker and Justin J. Gilio are prosecuting the case.
Cardenas is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on June 17, 2022. Cardenas faces a mandatory five-year term in prison and a maximum term of 40 years in prison and a $5 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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.
Austin Man Sentenced for Defrauding Financing CompanyRead the Press Release
AUSTIN – Yesterday, an Austin man was sentenced to 24 months in prison for defrauding a financing company.
According to court documents, David Wayne Jenkins, 38, was the owner and president of Fukushu, Inc., doing business as Double D Services (Double D). In February 2015, Jenkins agreed to sell Double D’s accounts receivable to Momentum Capital (Momentum), an accounts receivable financing company, to receive payments on invoices to companies that Double D performed work for.
From October 28, 2015 through December 29, 2015, Jenkins devised a fraud scheme to obtain payments for work Double D never performed. Jenkins created 17 false and fraudulent Double D invoices and related work tickets for work he purportedly performed for Martin Marietta. Although none of the work was performed, Jenkins sought payment for $1,013,385 in invoices.
“We are committed to prosecuting those who try to swindle money from others,” said U.S. Attorney Ashley C. Hoff. “Criminals looking to make a quick buck can find themselves behind bars, just like this defendant.”
“Our office is committed to protecting businesses from theft and fraud schemes which threaten the stability of our local economy and to holding fraudsters accountable for their crimes,” said FBI San Antonio Division Acting Special Agent in Charge Jason Hudson.
On September 29, 2021, Jenkins pleaded guilty to one count of wire fraud. In addition to the prison sentence, Jenkins was ordered to pay $560,628.07 in restitution, the amount of loss Momentum suffered.
The FBI investigated the case.
Assistant U.S. Attorney Sharon Pierce prosecuted the case.
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Armed Drug Trafficker Sentenced to 18 Months in PrisonRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Darren Johnson, aka “Buck,” 40, of St. Albans, Vermont, was sentenced today to serve 18 months in prison after his conviction for distribution of cocaine base. Chief United States District Judge Geoffrey Crawford also ordered Johnson to serve a three-year term of supervised release after his incarceration. Johnson may face additional incarceration for a probation violation that is pending in Dorchester, Massachusetts.
According to court records, Johnson sold fentanyl-laced heroin and cocaine base to confidential informants in late 2019 and early 2020. Burlington Police arrested Johnson on March 20, 2020, seizing over $5,000 in cash and drug trafficking paraphernalia. Johnson was cited to appear in Chittenden County Superior Court but failed to appear, resulting in the issuance of an arrest warrant. On July 18, 2021, a Franklin County Sheriff’s Deputy conducted a traffic stop of a vehicle that was in the wrong lane of a road in St. Albans. Johnson was a passenger in the vehicle and was arrested due to his failure to appear. A search of Johnson’s person resulted in the seizure of over $8,000 in cash. A consent search of the vehicle resulted in the seizure of cocaine base and a Glock Model 45 9mm firearm. The investigation by the Franklin County Sheriff’s Department determined that Johnson had obtained the firearm from one of his drug customers.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of both the Burlington Police Department and Franklin County Sheriff’s Office, as well as the assistance of the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Assistant United States Attorney Jonathan A. Ophardt handled the prosecution. Johnson was represented by Assistant Federal Public Defender Sara Puls, Esq.
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 works 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. For more information, please visit https://www.justice.gov/psn.
Armed Billings meth trafficker sentenced to ten years in prisonRead the Press Release
BILLINGS — A Billings man who admitted to dealing methamphetamine from a motel room and to possessing firearms for protection was sentenced on March 16 to 10 years in prison to be followed by five years of supervised release, U.S. Attorney Leif M. Johnson said.
Eric Kendrick Buchanan, 44, of Billings, pleaded guilty in September 2021 to conspiracy to possess with intent to distribute meth.
U.S. District Judge Susan P. Watters presided.
The government alleged in court documents that in 2020, law enforcement learned that Buchanan was selling meth, often from a motel room in Billings, and that he carried a firearm. Agents arranged purchases of meth from Buchanan and also conducted several traffic stops of him. During a stop in October 2020, Buchanan possessed a 9mm firearm, a meth pipe and marijuana. Buchanan told officers he traded meth for the gun. In a November 2020 traffic stop of Buchanan, officers found two 9mm handguns. Buchanan told officers he had obtained the handguns and four ounces of meth to sell from an individual and had the guns for protection. In a December 2020 traffic stop, law enforcement found a 9mm pistol, ammunition and approximately $3,000 in cash. Buchanan told officers he was on his way to buy a pound of meth with the cash. When Buchanan was arrested in February 2021 on the indictment, he had $9,300 cash, which he explained was to pay for a pound of meth he had received the previous week.
Assistant U.S. Attorney Julie R. Patten prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Architects of $48 Million Dollar Medical Reimbursement Account Program Fraud Scheme SentencedRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that that DENIS J. JOACHIM, age 55, DONNA K. JOACHIM, age 55, residents of Covington, Louisiana, and their company, The Total Financial Group, Inc. (“TTFG”), having previously pled guilty, were sentenced on March 17, 2022 by United States District Judge Carl J. Barbier, for their roles in creating, marketing, and operating what it claimed to be a Medical Reimbursement Program. After characterizing their conduct as a “massive fraud scheme”, Judge Barbier sentenced DENIS J. JOACHIM to 97 months in prison, followed by 3 years of supervised release, and a $100 special assessment fee, DONNA K. JOACHIM to 12 months and 1 day in prison, followed by 3 years of supervised release, and a $100 special assessment fee, and TTFG to 1 year of probation and a $2,400 special assessment fee. As part of the guilty plea, the defendants have agreed to forfeit assets previously seized with a collective value of approximately $6,300,000. A hearing to determine the amount and apportionment of restitution was scheduled for June 9, 2022, at 9:30 am.
As a condition of their pleas, DENIS and DONNA JOACHIM also agreed to be barred from serving as consultants or advisors to any labor organization or employee benefit plan for a period of thirteen (13) years from the end of their terms of imprisonment. Additionally, TTFG’s Executive National Marketing Director, JOSEPH ANTHONY BORINO, is scheduled to be sentenced by United States District Judge Wendy B. Vitter on June 30, 2022.
According to court documents, TTFG was a Louisiana business incorporated by DENIS and DONNA JOACHIM with the Louisiana Secretary of State on about January 6, 2005, that was most recently located at 406 N. Florida Street, Covington, Louisiana. TTFG and its owners created and marketed a Medical Reimbursement Account program called “Classic 105.” Classic 105 claimed to be a multiple employer welfare arrangement that was marketed to employers as a supplemental benefits plan to reimburse their employees for medical expenses such as co-pays and deductibles. Participants in Classic 105 were required to have a primary health insurance plan unrelated to and in addition to Classic 105. Classic 105 claimed to be comprised of several components: a tax-exempt contribution of between $1,000 and $1,600 per month made by an employee (which reduced the employee’s taxable income), a loan from a lender back to the employee to make up for the contribution, an insurance policy payable to the lender at the employee’s death to repay the loan, and fees paid by the employee and the employer directly to TTFG. TTFG told prospective employer-clients that participants would never have to make out-of-pocket payments to repay the loan and that as a result of the tax savings, most participants would receive an increase in their net take home pay. TTFG also told prospective employer- clients that the contributions would be stored in a unique account for each employee-participant and that any money not used by the end of each calendar year would revert to TTFG. TTFG also charged employee-participants a fee of between $150 and $250 per month and the employer a fee of five percent of each employee’s contribution amount. At its peak, over 350 employer-clients and 4,400 employee-participants nationwide were enrolled in TTFG’s Classic 105 program. In total, TTFG took in not less than at least $25,543,340.70 in fees from the employer-clients and employee-participants.
In fact, TTFG never obtained a single loan or insurance policy for the Classic 105 program, and participants never made any actual contributions. Rather, TTFG arranged for the contribution, loan, and insurance policy to appear as a series of “paper transactions” that, in effect, did nothing more than reduce participants’ taxable wages and employers’ FICA payments improperly, without their knowledge of the impropriety. Consequently, TTFG and the JOACHIMS caused the underpayment of at least $23,343,442.70 in federal FICA taxes, as well as the underreporting and underpayment of personal federal income taxes, federal unemployment taxes, and state unemployment taxes—amounts for which the employer-clients and employee-participants may be individually responsible.
In truth, the only money actually paid to TTFG were the fees, which the JOACHIMS for personal expenses, including the purchase of a 26-foot boat, a 2016 Grand Design Solitude recreational trailer, a Chevrolet Corvette, a Jeep Wrangler, a Dodge Ram truck, a Mercedes-Benz CL 550 automobile, a GMC Yukon XL Denali, multiple CAN-AM Maverick 1000R off-road vehicles, jet skis, their Covington residence, real property located adjacent to their Covington residence, two (2) residences located in Madisonville, Louisiana, 40 acres of property in Bush, Louisiana, and 125 acres of property in Spring City, Tennessee.
The Court’s previous forfeiture orders were made part of the defendants’ sentences. Consequently, TTFG and the JOACHIMS have forfeited all right, title, and interest in the following assets to the United States of America: $791,304.83 from seized bank accounts, 2013 Chaparral Boat, 2014 Chevrolet Corvette, 2016 Jeep Wrangler, 2016 Dodge Ram 3500 Pickup Truck, 2012 Mercedes Benz CL550, 2016 GMC Yukon XL Denali, 2016 Can-Am Maverick 1000R Turbo XDS, 2016 Can-Am Outlander 1000R XMR, 2016 Grand Design Reflection Recreational Trailer, (2) 2016 Sea-Doo RXT-X-300 Jet Skis, 2015 Sea-Doo GTX-LTD IS 260, (3) Boat Trailers, 23185 Highway 1084, Covington, LA, 26169 Highway 40, Bush, LA, acreage in Rhea County, Tennessee, and 41 Rue Du Sud, Madisonville, LA.
“The defendants targeted unsuspecting employers luring them into this fraudulent scheme that caused severe tax issues for both employers and their employees,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Schemes such as these have a profound effect on their victims, not only by the monies lost in the scheme, and the time and effort to repair the adverse effects of the fraudulent plot, but also by stoking public distrust. Our office, along with our investigative partners, remains committed to investigate these crimes and prosecute all those that are intent in defrauding the American public."
"This sentencing demonstrates the steadfast work of the FBI and our partners in bringing to justice individuals like Mr. Dennis Joachim and Mrs. Donna Joachim who engage in fraudulent schemes that impact our health care programs,” said, Douglas A. Williams, FBI New Orleans. "We thank our partners at United States Attorney's Office Eastern District of Louisiana, Internal Revenue Service - Criminal Division, Department of Labor Office of Inspector General, and the Employee Benefits Security Administration, for their collaborative efforts in disrupting criminal actors who cause damage to the American healthcare system.”
“The Total Financial Group, Inc. and its’ owner Denis and Dona Joachim, fraudulently used a multiple employee welfare arrangement plan to defraud participants and unjustly enrich themselves in complete disregard of the fiduciary duty they owed to the plan employers and their workers. The successful prosecution of these defendants reinforces the OIG’s continued commitment to working with our partner federal agencies to safeguard American workers from organizations and individuals engaged in these types of illicit fraud schemes,” said Special Agent-in-Charge Steven Grell of the U.S. Department of Labor, Office of Inspector General, Dallas Region.
"Defendants illegally enriched themselves at the expense of hard-working employees and their employers, and today they were held accountable,” said Mark Underwood, Acting Regional Director for the U. S. Department of Labor Employee Benefit Security Administration. “This case demonstrates how federal agencies work together to vigorously enforce criminal violations committed against employee benefit plans and their participants.”
“The defendants sentenced today share one trait in common – greed,” said Special Agent in Charge James E. Dorsey, IRS Criminal Investigation, Atlanta Field Office. “Their desire for money, power and material items, drove them to perpetrate crimes against our tax system and prey upon many of the vulnerable in our society. Thanks to the financial expertise and diligence of IRS-CI special agents, who worked side-by-side with other federal and state law enforcement officers to uncover these schemes, these criminals now face the consequences of their actions.”
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation; the United States Department of Labor – Office of Inspector General and Employment Benefits Security Administration, and the Internal Revenue Service – Criminal Investigations and expressed appreciation for the support provided by Senior Trial Attorney Rebecca Pyne, Department of Justice, Organized Crime and Gang Section, Labor-Management Racketeering Unit. Assistant United States Attorneys Jordan Ginsberg, Chief of the Public Corruption Unit, Maria M. Carboni, and Andre Lagarde were in charge of the prosecutions.