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Thursday 10 March 2022
Las Vegas Police Officer Charged in Casino RobberyRead the Press Release
LAS VEGAS – A Las Vegas Metropolitan Police Department (LVMPD) officer made his initial appearance in federal court today for allegedly robbing a casino.
Caleb Mitchell Rogers (33) was arrested on February 27, 2022. He is charged in a criminal complaint with one count of interference with commerce by robbery and one count of brandishing a firearm during and in relation to a crime of violence. U.S. Magistrate Judge Elayna J. Youchah scheduled a preliminary hearing for March 24, 2022.
According to allegations in the complaint, on February 27, 2022, Rogers entered a Las Vegas casino. He ran toward two employees in the sportsbook area and yelled: “Get away from the money. I’ve got a gun. I will shoot you!” Rogers climbed over the counter and shoved one of the employees to the floor, before grabbing money and placing it into a bag.
Rogers fled when the employees triggered an alarm. As Rogers ran toward the parking garage, a casino security officer tackled him. Rogers drew a revolver and, with his finger on the trigger, threatened: “I’m going to shoot you!” Security officers were able to disarm Rogers and restrain him until LVMPD officers arrived. The officers arrested Rogers and seized his firearm. Checking the revolver’s serial number, officers learned that it belonged to the LVMPD.
The criminal complaint further alleges that: (a) on November 12, 2021, Rogers robbed a casino in the western part of Las Vegas (obtaining approximately $73,810); and (b) on January 6, 2022, he robbed a casino in North Las Vegas (obtaining approximately $11,500).
The statutory maximum penalty is 20 years in prison for interference with commerce by robbery, and life imprisonment for brandishing a firearm during and in relation to a crime of violence.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Acting Special Agent in Charge W.M. Herrington for the FBI made the announcement.
This case was investigated by the FBI and the LVMPD. Assistant U.S. Attorney Dan Cowhig is prosecuting the case.
A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Las Vegas Man Pleads Guilty to Committing COVID Relief Fraud While on Pretrial ReleaseRead the Press Release
LAS VEGAS – A Las Vegas man pleaded guilty yesterday to participating in a scheme to defraud the Small Business Administration and a Paycheck Protection Program (PPP) lender while he was on pretrial release, by filing fraudulent loan applications seeking over $100,000 in loans guaranteed by the Small Business Administration under the Coronavirus Aid, Relief, and Economic Security Act.
Keyawn Lloyd Cook Jr. (27) pleaded guilty to one count of wire fraud. U.S. District Judge Gloria M. Navarro scheduled sentencing for June 8, 2022. Cook faces a statutory maximum penalty of 30 years in prison.
According to court documents and admissions made in court, Cook — while on pretrial release for an attempted robbery charge — submitted at least five fraudulent loan applications over a 15-month period for Economic Injury Disaster Loan (EIDL) funding and for PPP funding. As part of the fraudulent scheme, Cook submitted loan applications in the names of multiple fake businesses claiming to operate in various industries. Cook falsely claimed to have between nine and 12 employees in applications for EIDL funding and, in his PPP application, he falsely claimed gross revenues of $50,000 by a non-existent barber shop. In fact, these businesses were non-existent and had no such employees or revenue. Cook sought to fraudulently obtain over $100,000 in COVID relief funds for which he was not eligible.
In a separate case, Cook was sentenced yesterday to five years in prison for an attempted robbery of an armored car employee during a delivery to a bank in 2019.
Christopher Chiou, Acting U.S. Attorney for the District of Nevada; W.M. Herrington, Acting Special Agent in Charge of the FBI’s Las Vegas Field Office; Weston King, Special Agent in Charge of the Small Business Administration Office of the Inspector General’s (SBA OIG) Western Region Office; Albert Childress, Special Agent in Charge of the IRS-Criminal Investigation (IRS-CI); and Cory Nootnagel, Acting Special Agent in Charge, Western Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection (FRB-OIG) made the announcement.
This case was investigated by the FBI, SBA OIG, IRS-CI, and FRB-OIG. Assistant U.S. Attorneys Jessica Oliva and Kimberly Frayn are prosecuting the case.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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La Crosse Man Charged with Producing, Distributing & Receiving Child PornographyRead the Press Release
MADISON, WIS. – A La Crosse, Wisconsin man is charged with child exploitation crimes in an indictment returned yesterday by a federal grand jury sitting in Madison. The charges are announced by Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin.
The indictment charges Harry L. Euler, 45, with two counts of producing child pornography, two counts of receiving child pornography, and one count of distributing child pornography. The indictment alleges that these activities took place in May of 2021.
The indictment was unsealed following Euler’s arrest today in La Crosse. Euler made an initial appearance in U.S. District Court in Madison today and remains in federal custody pending a trial date in July.
If convicted, Euler faces a mandatory minimum of 15 years in prison and a maximum penalty of 30 years in prison on each production charge and a mandatory minimum of 5 years in prison and a maximum penalty of 20 years on the other charges. Each charge also carries a mandatory minimum of 5 years and a maximum term of life on supervised release. The charges against him are the result of an investigation by the Wisconsin Department of Justice Division of Criminal Investigation; U.S. Immigration and Custom Enforcement’s Homeland Security Investigations; and the La Crosse Police Department. Assistant U.S. Attorney Elizabeth Altman is handling the prosecution.
You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Killeen Man Found Guilty of Carjacking and Armed RobberiesRead the Press Release
WACO – Today a federal jury convicted Darius Letrayal King, 29, of Killeen for carjacking and armed robberies of area Killeen stores.
According to court documents and evidence presented at trial, King, along with his codefendant Corey Labon Jackson, 51, of Killeen committed armed robberies in January 2020 of a 7-Eleven and a Family Dollar store. King drove Jackson to the stores and Jackson robbed the stores at gun point. On January 3, 2020, King also committed carjacking, taking a vehicle at gunpoint from an acquaintance.
King was found guilty of one count of Carjacking; three counts of Brandishing a Firearm During the Commission of a Crime of Violence; two counts of Interference with Commerce by Robbery; and one count of Possession of a Firearm by a Convicted Felon. King faces up to 15 years in prison on the Carjacking count; a mandatory seven-year sentence to run consecutive to any other sentence received on each of the Brandishing of a Firearm counts; up to 20 years in prison on the Interference with Commerce counts; and up to 10 years in prison on the Possession of a Firearm by a Convicted Felon count.
On February 22, 2022, Jackson pleaded guilty to one count of Interference with Commerce by Robbery and one count of Brandishing a Firearm During the Commission of a Crime of Violence. Jackson faces up to 20 years in prison on the Interference with Commerce count and a mandatory seven-year sentence to run consecutive on any other sentence for the Brandishing of a Firearm count.
U.S. Attorney Ashley C. Hoff of the Western District of Texas and FBI Acting Special Agent in Charge Jason Hudson made the announcement.
The FBI, with invaluable assistance from the Temple Police Department and the Killeen Police Department’s Violent Crime Unit, is investigating the case.
Assistant U.S. Attorney Mark Frazier is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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KC Man Sentenced for Shooting Female Z-Trip Driver 26 Times During RobberyRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man has been sentenced in federal court for the armed robbery of a female Z-Trip driver whom he shot approximately 26 times with a rifle from the back seat.
Derron D. Nevels, 21, was sentenced by U.S. District Judge Howard F. Sachs on Wednesday, March 9, to 13 years in federal prison without parole.
On Aug. 27, 2021, Nevels pleaded guilty to one count of robbery and one count of discharging a firearm during a violent crime.
Nevels was picked up by a Z-Trip driver on Wabash Avenue in Kansas City, Mo., on the evening of Dec. 4, 2018. The Z-Trip taxi in which the crime was committed is equipped with interior and exterior cameras. The cameras show Nevels getting into the rear passenger seat at approximately 8 p.m. The Z-Trip driver took him to Benton Avenue in Kansas City, Mo.
When they arrived at the destination, they waited in the vehicle for somebody to bring out the fare. When a second suspect approached the vehicle, Nevels held a Smith and Wesson Military & Police .22-caliber rifle up to the victim’s head and demanded she give him everything. The victim attempted to explain that Nevels was being recorded, to which Nevels responded, “I don’t care; give me everything.” Nevels also appeared to be taking a photo or video with his cell phone.
The victim turned toward the back seat and grabbed onto the rifle, and a struggle ensued. The second suspect hit the victim in the face, then reached around the driver’s seat and began striking the victim in the back and the back of the victim’s head. The victim released Nevels’ rifle and then Nevels leaned back in his seat, chambered a live round, and opened fire on the victim from close range. Nevels fired approximately 26 times into the victim. Nevels and his accomplice then ran from the scene.
About 10 minutes later, Nevels and another suspect returned to the victim’s vehicle to retrieve a cell phone Nevels had left behind when he fled from the scene of the earlier robbery and assault. Nevels can be heard on the Z-Trip vehicle’s video asking the victim if she is okay. The victim indicates she has been shot. Nevels asked the victim if she had called the police. He got into the rear driver’s side of the taxi and picked up the cell phone, then left the scene.
When police officers arrived, the victim was transported to an area hospital in critical condition. According to court documents, she continues to suffer from her serious and debilitating injuries inflicted by Nevels.
Investigators used cell phone and Facebook data to identify Nevels and the distinctive rifle he used in the robbery. On Dec. 10, 2018, Nevels was seen getting onto a bus near Prospect Avenue and Swope Parkway. Nevels was arrested when he got off the bus at 11th Street and Grand Avenue. Nevels was carrying the loaded rifle hidden in his waistband with the barrel going down his right pant leg. The rifle was later positively identified as the weapon used to shoot the Z-Trip driver during the robbery.
Co-defendants Bailee Anna Maria Prieto, 21, of Kansas City, Kansas, and Melani Yitzel Collazo Jimenez, also known as “Mel,” 24, of Kansas City, Mo., have each pleaded guilty to being accessories after the fact to the robbery. Prieto was sentenced on Nov. 23, 2021, to three years in federal prison without parole. Jimenez was sentenced on Nov. 18, 2021, to two years and six months in federal prison without parole.
Prieto used or allowed her phone to be used to order the Z-Trip that was robbed. Prieto disposed of her phone after the robbery to avoid the police searching it.
Jimenez went to the scene to help Nevels retrieve his telephone from the Z-Trip where he left it after the robbery and shooting. Jimenez provided her apartment for Nevels, Prieto, and others to stay the night after the robbery.
Neither Prieto nor Jimenez reported anything to law enforcement. The two of them communicated with and were associated with Nevels and others, before, during, and after the robbery and shooting.
This case was prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Kansas City, Mo., Police Department and the FBI.
Project Safe Neighborhoods
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.
Justice Department and Federal Trade Commission to Hold Joint Spring Enforcers SummitRead the Press Release
The Justice Department’s Antitrust Division and the Federal Trade Commission (FTC) will cohost a Spring Enforcers Summit on April 4. Assistant Attorney General Jonathan Kanter and FTC Chair Lina M. Khan, as well as senior staff from both agencies, will facilitate discussions on modernizing merger guidelines and interagency collaboration. The summit will be held in a hybrid format, with international enforcers and state Attorneys General participating both in-person and virtually. Throughout the day, the agencies will livestream several panel discussions and interviews to the public. The Enforcers Summit agenda and viewing instructions are available at https://www.justice.gov/atr/events/spring-2022-enforcers-summit.
“This summit provides a great opportunity for enforcers across the country and world to gather together and learn from each other,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Hearing from our international and state counterparts will help us to ensure that our enforcement practices and guidelines reflect modern market realities.”
“Mounting evidence of high concentration across markets and a variety of consequent harms have prompted a broad reassessment of our antitrust enforcement tools and frameworks,” said FTC Chair Lina M. Khan. “As we seek to update our approach to match economic realities, learning from and collaborating with our state and international enforcement partners will best equip us to tackle challenges and chart the right path ahead.”
The Enforcers Summit will include conversations about merger enforcement as well as discussions on how to work with industry regulators as part of a whole of government approach to competition policy. These discussions will inform the agencies’ joint public inquiry on modernizing merger guidelines. As the Antitrust Division and FTC work to revise their joint merger guidelines, the agencies are encouraging input from a wide range of stakeholders and are holding listening sessions throughout the spring to hear from members of the public. This summit will provide a valuable opportunity to gather both international and domestic perspectives on how U.S. merger reform can help us meet the challenges and realities of the modern economy.
Justice Department Announces Director for COVID-19 Fraud EnforcementRead the Press Release
Today, the Justice Department announced the appointment of a Director for COVID-19 Fraud Enforcement to lead the department’s criminal and civil enforcement efforts to combat COVID-19 related fraud, along with the latest results of criminal and civil enforcement actions that include alleged fraud related to over $8 billion in pandemic relief.
Effective immediately, Associate Deputy Attorney General Kevin Chambers will serve as the Director for COVID-19 Fraud Enforcement. Mr. Chambers will lead Justice Department efforts that to date have resulted in criminal charges against over 1,000 defendants with alleged losses exceeding $1.1 billion; the seizure of over $1 billion in Economic Injury Disaster Loan proceeds; and over 240 civil investigations into more than 1,800 individuals and entities for alleged misconduct in connection with pandemic relief loans totaling more than $6 billion.
“The Justice Department remains committed to using every available federal tool — including criminal, civil, and administrative actions — to combat and prevent COVID-19 related fraud,” said Attorney General Merrick B. Garland. “We will continue to hold accountable those who seek to exploit the pandemic for personal gain, to protect vulnerable populations, and to safeguard the integrity of taxpayer-funded programs.”
“As our thousands of COVID-19 fraud investigations demonstrate, our message to those who seek to line their own pockets and benefit from the suffering of so many Americans is: your crimes are not and will not be forgotten,” said Deputy Attorney General Lisa O. Monaco.
“I look forward to this new role and to supporting the excellent work of the department’s prosecutors and trial attorneys since the very beginning of the pandemic,” said Mr. Chambers. “We are receiving an extraordinary amount of data from our state workforce agency partners. This data holds the key to identifying and prosecuting certain types of fraud, including unemployment insurance fraud. Our Strike Teams will enhance the department’s existing efforts and will include analysts and data scientists to review data, agents to investigate the cases, and prosecutors and trial attorneys to bring charges and try the cases. Again, this is on top of the great work our folks in the field are already doing.”
Mr. Chambers plans to focus on large-scale criminal enterprises and foreign actors who sought to profit at the expense of the American people. This will include establishing Strike Teams to prepare for the next phase in the Justice Department’s efforts to fight pandemic fraud.
In March 2020, Congress passed a $2.2 trillion economic relief bill known as the Coronavirus Aid, Relief, and Economic Security (CARES) Act designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. Anticipating the need to protect the integrity of these taxpayer funds and to otherwise protect Americans from fraud related to the COVID-19 pandemic, the Department of Justice immediately stood up multiple efforts dedicated to identifying, investigating, and prosecuting such fraud. Leveraging data analysis capabilities and partnerships developed through its vast experience combatting economic crime and fraud on government programs, the Justice Department’s response to COVID-19 related fraud serves as a model for proactive, high-impact white-collar crime enforcement, and demonstrates our agility in responding to new and emerging threats. This rapid and nationwide response enabled the Justice Department to quickly ensure accountability for wrongdoing and sent a forceful message of deterrence during an ongoing crisis. The multifaceted and multi-district approach to enforcement during this national health emergency continues and is expected to yield numerous additional criminal and civil enforcement actions in the coming months.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts.
The Justice Department’s efforts to combat COVID-19 related fraud schemes have proceeded on numerous fronts, including cases and investigations involving the Paycheck Protection Program (PPP), Economic Injury Disaster Loan (EIDL) program, Unemployment Insurance (UI) programs, and COVID-19 health care fraud enforcement.
These cases involve the Criminal Division’s Fraud Section, U.S. Attorneys’ Offices across the United States, and the department’s Civil Division. They reflect a degree of reach, coordination, and expertise that is critical for enforcement efforts against COVID-19 related fraud to have a meaningful impact and is also emblematic of the Justice Department’s response to criminal wrongdoing.
Prominent among the department’s efforts have been cases involving PPP and EIDL fraud. Across the department, including the Criminal Division’s Fraud Section and U.S. Attorneys' Offices, approximately 500 defendants have been charged in over 340 cases with alleged intended losses of over $700 million.
Relatedly, the department has seized over $1 billion in EIDL loan proceeds, primarily through the work of the U.S. Attorney’s Office for the District of Colorado and their partners at the U.S. Secret Service.
Due to the COVID-19 pandemic, up to $860 billion in federal funds have been appropriated for UI benefits through September 2021. Early investigation and analysis indicate that international organized criminal groups have targeted these funds by using stolen identities to file for UI benefits. Domestic criminals, ranging from identity thieves to violent street gangs to prison inmates, have also committed UI fraud. In response, the department established the National Unemployment Insurance Fraud Task Force, a prosecutor-led, multi-agency task force with representatives from more than eight different federal law enforcement agencies to coordinate those efforts. U.S. Attorneys’ Offices around the country have worked with law enforcement partners to investigate and arrest those responsible for committing UI fraud. Since the start of the pandemic, over 430 defendants have been charged and arrested for federal offenses related to UI fraud.
The unprecedented pace and tempo of these efforts is made possible only through the diligent work of a wide range of Justice Department partners, including the Criminal Division’s Fraud Section and Money Laundering and Asset Recovery Section, the Civil Division’s Commercial Litigation Branch (Fraud Section) and Consumer Protection Branch, U.S. Attorneys’ Offices throughout the country, and law enforcement partners from the FBI; U.S. Secret Service; IRS-Criminal Investigation; Defense Criminal Investigative Service; Homeland Security Investigations; U.S. Postal Inspection Service; the Offices of Inspectors General from the Small Business Administration, Department of Labor, Department of Homeland Security, Social Security Administration, Federal Deposit Insurance Corporation, Department of Health and Human Services, Department of Veterans Affairs, Federal Housing Finance Agency and Federal Reserve Board; Food and Drug Administration’s Office of Criminal Investigations; Treasury Inspector General for Tax Administration; Financial Crimes Enforcement Network; Special Inspector General for Pandemic Relief; Pandemic Response Accountability Committee; OCDETF Fusion Center and OCDETF’s International Organized Crime Intelligence and Operations Center.
For further information on the Criminal Division’s enforcement efforts on PPP fraud, including court documents from significant cases, visit the following website: https://www.justice.gov/criminal-fraud/ppp-fraud. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. For further information on the Civil Division’s enforcement efforts, visit the following website: https://www.justice.gov/civil.
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.
*The subheadline has been updated to reflect a change from $7 billion to $8 billion in pandemic relief. (March 10, 2022)
Jury Convicts Armed Drug Trafficker Caught in Nash County OperationRead the Press Release
ELIZABETH CITY, N.C. – A federal jury convicted an Orangeburg, South Carolina man on Tuesday on charges of distribution of heroin and fentanyl, along with associated firearms violations including possession of a firearm in furtherance of a drug trafficking crime and possession of a firearm by a convicted felon.
According to court records and evidence presented at trial, Anthony Cyquan Herring, 40, was stopped by Nash County Sheriff Keith Stone on I-95 southbound for speeding. Sheriff Stone smelled marijuana coming from the SUV, which other Deputies confirmed. The ensuing search of Herring’s SUV resulted in Deputies finding over thirty-six grams of heroin and fentanyl, fifty grams of cocaine, marijuana, distribution paraphernalia, $2,200.00 cash, and a loaded firearm. Deputies discovered Herring’s young children in the back of the SUV, sleeping and urinating in bottles as their dad drove through the night from Connecticut on the way to Myrtle Beach, South Carolina.
Herring faces a guideline range of 360 months to life imprisonment when sentenced in June 2022.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge Terrence W. Boyle accepted the verdict. The Nash County Sheriff’s Office investigated the case and Assistant U.S. Attorney J.D. Koesters and Special Assistant United States Attorney Tyler Lemons is prosecuting the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.5:20-cr-00347-BO-1.
Judge sentences Webster Groves man to 10 years in federal prison for receipt of child pornographyRead the Press Release
ST. LOUIS – Jonathan Wells, age 39, of Webster Groves, Missouri, appeared before United States District Court Judge Stephen R. Clark on today’s date. Based on a previous plea of guilty, Wells was sentenced to 10 years in federal prison for the receipt of child pornography followed by a lifetime of supervised release and a $5000.00 assessment to the Justice for Victims of Trafficking fund.
According to court documents, on or about November 29, 2019, and January 4, 2020, Wells uploaded from the internet, ninety-four (94) image files of child pornography to an editing software program called "Adobe."
Adobe Systems Inc. reported Well's download of child pornography to the National Center for Missing and Exploited Children on or about December 2, 2019, and January 6, 2020. Law enforcement obtained a search warrant for Well’s residence and determined that Wells possessed numerous items of child sexual abuse material that he had downloaded from the internet. Specifically, Wells possessed over twenty-three thousand (23,000) images of child pornography on his Lenovo Tower computer that had been downloaded from the internet.
This case was investigated by the Saint Louis County Police Department and the Federal Bureau of Investigation.
Judge sentences St. Louis man to 10 years in federal prison for possession of child pornographyRead the Press Release
ST. LOUIS – David Whitener, age 30, of St. Louis, Missouri, appeared before United States District Court Judge Ronnie L. White on today’s date. Based on a previous plea of guilty, Whitener was sentenced to 10 years in federal prison for possession of child pornography as a prior offender to be followed by a lifetime of supervised release.
According to court documents, Whitener was convicted in 2016, in the Circuit Court of St. Louis for promoting child pornography and possession of child pornography and was sentenced to five (5) years in the Missouri Department of Corrections. On or about September 23, 2019, Whitener uploaded via the internet ten (10) videos and seven (7) images depicting child sexual abuse to a social media application.
Law enforcement executed a search warrant at the residence of Whitener, located in the City of St. Louis. The search revealed Whitener to have possessed a cellular telephone that contained seventeen (17) videos and hundreds of images of child sexual abuse depicting child pornography involving minors. Whitener also possessed a Dropbox internet-based cloud storage account in which he knowingly stored and possessed forty-five (45) videos and twenty-one (21) images of child pornography.
This case was investigated by Homeland Security Investigations.
Judge sentences St. Louis County man for robbery and weapon violationsRead the Press Release
ST. LOUIS – Collis Lee, age 25, of St. Louis County, Missouri, appeared before United States District Court Judge Henry E. Autrey on today’s date. Based on a previous plea of guilty, Lee was sentenced to 135 months in federal prison for the armed robbery of O’Reilly Auto Parts store in Jennings, Missouri.
According to the plea agreement, Lee and a co-defendant entered the O’Reilly Auto Parts store on Jennings Station Road on December 5, 2020, with guns and announced a robbery. With the robbers’ attention on the two employees, an O’Reilly’s customer fled the store, went to an adjacent store, and asked employees there to call 911. Meanwhile, Lee and his co-defendant proceeded to force the clerks to open as many cash registers as they could. During the robbery, Lee pistol-whipped the clerk several times.
While this was going on, police were responding to the 911 call. Because the St. Louis County SWAT team happened to be on patrol in the area, many police vehicles were nearby, and four police vehicles were in the O’Reilly’s parking lot before Lee even left the store. As Lee entered a getaway car to flee, witnesses began pointing officers to the suspects. With Lee driving the sedan he fled the parking lot while being pursued by police. Lee lost control of the sedan while attempting to make a right hand turn at high speeds. The car drove over the median and t-boned the second car of a three-car funeral convoy. The car into which he crashed was a funeral limousine transporting grieving family members to a funeral home for a funeral service scheduled that morning. Five of the individuals in that limousine were injured in the accident.
This case was investigated by the Saint Louis County Police Department.
Iowa City Man Sentenced to Federal Prison for Marijuana and Firearm ChargeRead the Press Release
DAVENPORT, Iowa – An Iowa City man, Antonio Deshawn Russell, age 35, was sentenced today to 144 months in prison for Possession with Intent to Distribute Marijuana and Prohibited Person in Possession of a Firearm. Following his prison term, Russell was ordered to serve three years of supervised release. He was also ordered to immediately pay a $200 Special Assessment to the Crime Victims’ Fund.
Law enforcement identified Russell in November 2020 when Iowa City Police Officers responded to a shots-fired incident. In December 2020, officers executed a search warrant at Russell’s residence, where they located a nine-millimeter Taurus handgun with an obliterated serial number, 57 grams of marijuana, a digital scale, and two cell phones. The cell phones contained evidence of drug trafficking.
In February 2021, Coralville police were dispatched to a shots-fired incident and Russell was observed fleeing from the location in a vehicle at a high rate of speed. An officer stopped Russell and observed indicia of intoxication on him when he fled again at a high rate of speed. The officer pursued Russell again and observed Russell crash his vehicle into a light pole. Russell threw a loaded and stolen firearm out of the passenger window. Russell was a convicted felon and ineligible to possess firearms.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Iowa City Police Department and the Coralville Police Department investigated the case.
Illinois Woman Sentenced to 21 Months for Bank FraudRead the Press Release
BOISE – An Illinois woman was sentenced to 21 months in federal prison for bank fraud.
According to court records, Abbi L. Sullivan, 22, of Normal, Illinois, traveled to Idaho with at least three co-defendants in May 2020. On May 6, 2020, Sullivan cashed counterfeit checks at two First Interstate Bank branches in the Treasure Valley. The counterfeit checks had the logo and business information for the company accountholder along with a forgery of the account owner’s signature. The checks were payable to Sullivan. Sullivan presented her Illinois identification card to cash the counterfeit checks. Sullivan falsely told the bank teller that she sold some property to the company whose name appeared on the check. In addition to the checks in Idaho, Sullivan traveled with other co-conspirators to other states, including California, Ohio, and Massachusetts, to cash and attempt to cash counterfeit checks.
Senior U.S. District Judge B. Lynn Winmill also ordered Sullivan to serve five years of supervised release following her prison sentence and to pay $20,209.66 in restitution.
Co-defendants Jakara B. Edwards, 24, and Tatyana A. Love, 21, both of Chicago, pleaded guilty on October 19, 2021, to bank fraud. Edwards and Love are scheduled to be sentenced on June 27, 2022.
U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the cooperative efforts of the Federal Bureau of Investigation, Ada County Sheriff's Office, Boise Police Department, Garden City Police Department, Meridian Police Department, Nampa Police Department, Chicago Police Department, Ellisville Police Department, Fort Atkinson Police Department, Gahanna Police Department, Johnson Creek Police Department, Montgomery Township Police Department, Normal Police Department, Peoria County Sheriff’s Office, Redwood City Police Department, San Mateo County Sheriff’s Office, Sioux Falls Police Department, Social Security Administration Office of the Inspector General, Stockton Police Department, Waltham Police Department, and the Wellesley Police Department, which led to charges.
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Idaho Falls Man Sentenced to over 10 Years in Federal Prison for Possessing Child PornographyRead the Press Release
POCATELLO – An Idaho Falls man was sentenced to 121 months in federal prison for possession of child pornography.
According to court records, on October 22, 2019, law enforcement received an investigative lead that Robert Neil Curran, 27, was using Twitter to distribute child pornography. The account’s identifying information led law enforcement to Curran’s phone number.
Curran was later arrested by his parole officer for unauthorized access to the internet and was interviewed on November 19, 2019, in relation to his Twitter usage. After waiving his Miranda rights, he admitted to viewing and receiving child pornography on Twitter. Curran possessed over 1,600 images of child pornography.
Chief U.S. District Judge David C. Nye also ordered Curran to serve fifteen years of supervised release following his prison sentence. Curran pleaded guilty to the charges on September 29, 2021.
U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the cooperative efforts of Homeland Security Investigations in Idaho Falls, the Idaho Internet Crimes Against Children Task Force, and the Idaho Falls Police Department, which led to charges.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Ice Methamphetamine Dealer Sentenced to Thirty Years in Federal PrisonRead the Press Release
ROCK ISLAND, Ill. – A Marshalltown, Iowa, man, Michael James Grommet, 37, was sentenced on March 9, 2022, to 360 months’ imprisonment, to be followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute at least 50 grams of actual methamphetamine.
At the sentencing hearing, the government established that Grommet worked with associates to distribute over seven kilograms of ice methamphetamine in both Illinois and Iowa. The government detailed Grommet’s criminal history, which included over twenty criminal convictions.
Also at the hearing, Chief U.S. District Judge Sara Darrow discussed the seriousness of Grommet’s “major distribution” offense, describing the “extreme physical and mental destruction” methamphetamine has on the community. Judge Darrow stated that Grommet posed “the most severe risk to recidivate” she had seen “in a long time” with “absolutely no regard for other individuals.”
Grommet was convicted following a jury trial in August 2021. Grommet’s co-defendant, Buddy Hal Gunter, who also went to trial, will be sentenced on March 16, 2022.
The statutory penalties for conspiracy to distribute and possess with intent to distribute at least 50 grams of actual methamphetamine are a mandatory minimum term of ten years and up to life in prison, up to a $10 million fine, and at least five years and up to a life term of supervised release.
“As the Court made clear, individuals who make a career out of trafficking highly-addictive, community-devastating drugs will be held accountable,” said Assistant U.S. Attorney Alyssa Raya. “The United States Attorney’s Office and our law enforcement partners will continue to remove these dealers from the streets to keep our communities safe.”
The case investigation was conducted by the Rock Island Police Department, the Iowa Division of Narcotics Enforcement, and the Drug Enforcement Administration, with assistance from the Tri-County Drug Enforcement Task Force and the Bremer County, Iowa, Sheriff’s Office. Assistant U.S. Attorneys Raya and Jennifer Mathew represented the government in the prosecution.
Hyattsville Man Sentenced to Three Years in Federal Prison for Bank Fraud Conspiracy That Intended to Cause a Loss of More Than $4.1 MillionRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Oyekanmi Oworu, age 35, of Hyattsville, Maryland to three years in federal prison, followed by four years of supervised release, for conspiracy to commit bank fraud and aggravated identity theft.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Andrew McKay of the Treasury Inspector General for Tax Administration
According to his guilty plea, between February 2017 and July 2020, Oworu conspired with co-defendant Babtunde Ajibawo, age 55, of Essex, United Kingdom and others to fraudulently obtain checks made out to legitimate businesses, then fraudulently register shell companies to obtain state business certificates in the identical or similar name of the legitimate businesses to which the checks were made payable. The conspiracy also used the Internal Revenue Service’s (IRS) Modernized Internet Employer Identification Number (EIN) online portal and the fraudulently obtained social security numbers of real individuals to obtain an EINs for the fraudulent business.
Specifically, on February 7, 2017, Oworu opened a bank account at a victim financial institution in the name of a real individual and deposited a stolen check made payable to a legitimate business for $265,168.20. Oworu subsequently withdrew the proceeds.
Additionally, on November 20, 2018, Oworu opened a bank account at a victim financial institution in a similar name of a legitimate business using the means and identification of A.S., a real individual. After opening the account, Oworu deposited a stolen check made payable to the legitimate business for $58,713.50.
Further, as detailed in the Superseding Indictment, Oworu and his co-conspirators attempted to conceal their criminal actions and evade law enforcement by relocating the fraud scheme to other jurisdictions. A substantial part of a fraudulent scheme was committed from outside the United States, specifically Nigeria.
In total, Oworu and his co-conspirators intended to cause a loss of at least $4.1 million to victim businesses, caused an actual loss of at least $756,175.30, and compromised the identifying information of more than 50 individual victims.
Co-defendant Ajibawo pled guilty to conspiracy to commit bank fraud and was sentenced to four years of federal prison on December 8, 2021.
United States Attorney Erek L. Barron commended the Treasury Inspector General for Tax Administration for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Mary W. Setzer and Judson T. Mihok, who prosecuted the case.
For more information on fraud and how to report instances of fraud, including identity theft, please visit https://www.justice.gov/usao-md/report-fraud.
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Hooksett Man Receives Prison Sentence for Attempting to Send Obscene Material to a MinorRead the Press Release
CONCORD - Stuart Adams, 61, of Hooksett, was sentenced to 12 months and one day in federal prison for attempted transfer of obscene material to a minor, United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in August, 2020, the Federal Bureau of Investigation (FBI) received information pertaining to a mobile application that allows users to exchange materials over the internet. The information provided that a particular user, later identified as Adams, expressed interest in and was attempting contact with underage females. Adams established contact with an undercover FBI agent (UC) with an online persona portraying a 13-year-old girl. The two maintained contact throughout the month of October 2020.
On October 19, 2020, Adams sent the UC sexually explicit pictures and a video of himself and engaged the UC in a sexually explicit conversation. A federal search warrant was executed at Adams’ home and many electronic devices were seized. Forensic review revealed Adams was engaged in sexually-oriented chats with numerous minor females. Adams denied ever meeting in person anyone he has chatted with online.
Adams previously pleaded guilty on November 23, 2021.
“The defendant’s conduct in this case was appalling,” said U.S. Attorney Farley. “By seeking out young females for sexual conversations and sending explicit photographs to an individual that he believed to be a 13-year girl, the defendant engaged in unacceptable and illegal behavior. Although this case is a painful reminder to parents of the dangers that lurk on the internet, it also demonstrates our ongoing commitment to working with the FBI and our other law enforcement partners to identify and prosecute the predators who seek to use the internet to exploit children.”
“Stuart Adams admitted to sending sexually explicit images of himself to underage girls over the course of several years and while today’s sentence doesn’t erase the harm he inflicted upon his victims, it does hold him accountable for engaging in criminal conduct,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “This case is another example of how easy it is for young people to become victims, and how the FBI’s Child Exploitation-Human Trafficking Task Force will do everything it can to protect them from predators.”
This matter was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Kasey Weiland.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Hollywood Executive Agrees to Plead Guilty to Fraud and Money Laundering Charges for Stealing Money from COVID Relief ProgramRead the Press Release
LOS ANGELES – The former chief executive of Aviron Pictures has agreed to plead guilty to federal fraud and money laundering charges, admitting that he applied for and received $1.7 million in loans under the Paycheck Protection Program (PPP) for Aviron entities when the entire operation was being shuttered as a result of his embezzlement.
In a plea agreement filed today in United States District Court, William Sadleir, 67, of Beverly Hills, agreed to plead guilty to one count of bank fraud and one count of money laundering. Sadleir is scheduled to formally enter the guilty pleas on March 16.
Sadleir filed bank loan applications that fraudulently sought more than $1.7 million dollars in forgivable PPP loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. According to court documents, Sadleir obtained the loans for three Aviron entities by falsely representing that the funds would be used to support payroll expenses for 33 employees at each company, when in fact the entities were no longer operational.
Within days of the loans being funded on May 1, 2020, Sadleir transferred nearly $1 million to his personal checking account.
Sadleir “expended a substantial amount of the fraudulent loan proceeds on utility bills, mortgage expenses, and his personal attorney, among other things,” he admitted in his plea agreement. Sadleir “did not use any of the fraudulent loan proceeds to pay employees of the Aviron companies.”
Following the discovery of the fraudulent loan applications, federal agents seized $308,058 of fraudulent loan proceeds from an Aviron account, and Sadleir returned $1,122,090 to the bank that funded the loans. As a result of the fraudulent PPP loan scheme, the SBA suffered losses of $282,566. In his plea agreement, Sadleir agreed to pay full restitution.
Once he pleads guilty to the two offenses, Sadleir will face a statutory maximum sentence of 50 years in federal prison. Prosecutors have agreed to recommend that whatever sentence is imposed should run concurrent with a sentence to be imposed in a pending case in the Southern District of New York. Sadleir is scheduled to be sentenced in the New York case on May 10 after he pleaded guilty in January to wire fraud for misappropriating more than $25 million that had been invested in Aviron.
The Los Angeles case was investigated by the FBI, the SBA’s Office of Inspector General, and the Federal Deposit Insurance Corporation’s Office of Inspector General.
Assistant United States Attorney Gregory Bernstein of the Major Frauds Section is prosecuting this case.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Justice 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.
Grant County man sentenced for firearms chargeRead the Press Release
ELKINS, WEST VIRGINIA – Jeremiah Lincoln Seib, of Petersburg, West Virginia, was sentenced today to five years of probation for a firearms charge, United States Attorney William Ihlenfeld announced.
Seib, 42, pleaded guilty in September 2021 to one count of “Unlawful Possession of a Firearm.” Seib, a person prohibited from having firearms because of a robbery conviction, admitted to having a .380 caliber semi-automatic pistol in December 2020 in Grant County.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. District Judge Thomas S. Kleeh presided.
Grand Jury indicts former St. Louis school principal and co-conspirator in murder for hire plotRead the Press Release
ST. LOUIS – A federal grand jury indicted Cornelius M. Green and Phillip J. Cutler on March 9, 2022, for conspiracy to commit murder for hire and murder for hire that resulted in the death of Jocelyn Peters and her unborn child in 2016.
The indictment alleges that Green and Cutler had a longstanding and close friendship and Green, already legally married to another was involved in an ongoing romantic relationship with Jocelyn Peters. In 2015, Ms. Peters became pregnant, with Green being the father of the unborn child.
Beginning at an exact time unknown but including February 29, 2016, through October 11, 2016, within the Eastern District of Missouri and elsewhere, Green devised a plan to murder Peters and her unborn child. Part of that plan was that Green offered cash to Cutler for the murder of Peters and her unborn child.
It is alleged on or about March 7, 2016, Green sent a package via United Parcel Service containing $2500.00 to Cutler, who accepted the package at an address in Oklahoma. As part of the conspiracy, it is alleged that Cutler traveled to St. Louis on March 21, 2016, staying at a residence occupied by Green. The next day, Green traveled to Chicago, Illinois allegedly to distance himself from the homicide.
It was further part of the conspiracy that on or about March 24, 2016, Cutler traveled to the area of 4236 W. Pine in Green’s 2013 Kia Optima, unlawfully entered Jocelyn Peters’ apartment, Unit #201, found Peters in her bed, shot her with a .380 caliber firearm in the head while using a potato as a silencer to muffle the sound of the shot.
Green and Cutler were both charged for a variety of crimes related to the murder of Peters and her unborn child by the St. Louis Circuit Attorney’s Office and are currently incarcerated awaiting trial.
Charges set forth in the indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the St. Louis Metropolitan Police Department and the Federal Bureau of Investigation. The case is being prosecuted in cooperation with the St. Louis Circuit Attorney’s Office.
Gang Member Sentenced for 2009 Murder of 17-Year-OldRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that JOHNNY NUNEZ GARCIA, a/k/a “Superior,” was sentenced today to 200 months in prison for the June 5, 2009 gang-related murder of 17-year-old Jonathan Ruiz in the Bronx, New York. Today’s sentence is in addition to the 124 months in prison that NUNEZ GARCIA has already served on a prior sentence for related narcotics and firearms offenses. NUNEZ GARCIA was sentenced by U.S. District Judge Andrew L. Carter, Jr. NUNEZ GARCIA previously pled guilty to murdering Ruiz as part of NUNEZ GARCIA’s participation in the Dominicans Don’t Play (“DDP”) gang.
U.S. Attorney Damian Williams said: “Today’s sentence shows that senseless gang violence will be met with severe consequences. Johnny Nunez Garcia participated in the horrific murder of Jonathan Ruiz, who was only 17 years old when he died. For this crime and others, Nunez Garcia will spend 27 years in federal prison.”
According to the allegations contained in the Superseding Information, prior charging instruments and other filings in this case, and statements during court proceedings:
NUNEZ GARCIA was a member of the “Elder Family” set of the DDP gang—an enterprise that distributed crack cocaine and other drugs, and carried out shootings, robberies, and other acts of violence, on and around Elder Avenue in the Bronx, New York. On June 5, 2009, members of the DDP gang attended a party and got into an altercation with individuals they understood to be members of the rival Trinitarios gang. These suspected rivals—who included Jonathan Ruiz—fled down the street, but NUNEZ GARCIA and his accomplices pursued them in a car. Once the DDPs caught up with Ruiz, one of the DDP members exited the car and shot Ruiz from a distance, causing Ruiz to fall wounded to the ground. NUNEZ GARCIA then ran over to the wounded Ruiz, stood over him, and shot him again. NUNEZ GARCIA left Ruiz to bleed out from his injuries.
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In addition to the prison term, NUNEZ GARCIA, 31 of the Bronx, New York, was sentenced to five years of supervised release.
Mr. Williams praised the outstanding work of the New York City Police Department.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Frank Balsamello and Adam Hobson are in charge of the prosecution.
Four Los Angeles Residents Indicted for Operating Illegal Gambling Business and Conspiring to Launder MoneyRead the Press Release
SACRAMENTO, Calif. — A three-count indictment was unsealed yesterday charging four defendants in connection with an illegal gambling business and conspiracies to launder the proceeds of the illegal gambling business, U.S. Attorney Phillip A. Talbert announced.
The indictment charges Los Angeles residents Gal Yifrach, 35, with operating an illegal gambling business and conspiracy to commit money laundering; Nick Shkolnik, 39, with operating an illegal gambling business; and Shalom Ifrah, 32, and Schneur Zalman Getzel Rosenfeld, 33, with conspiracy to commit money laundering.
According to court documents, Yifrach, Shkolnik, and Yosef Yitzchak Beshari, who was charged elsewhere, conducted an illegal gambling business involving video slot machines and devices and bets, in the Eastern District of California and elsewhere. Yifrach and Ifrah conspired to launder the proceeds of the illegal gambling business in multiple ways, including by exchanging the cash for checks, exchanging the cash for casino chips, and conducting cash exchanges of no more than $10,000 at banks to avoid transaction reporting requirements. Rosenfeld is charged with conspiring with Beshari to launder the proceeds of the illegal gambling business in multiple ways, including by providing checks, direct deposits of purported salary, and a wire transfer to an escrow company, all in exchange for cash from the gambling business.
All four defendants were arrested yesterday. Yifrach and Ifrah have been detained pending trial. Shkolnik and Rosenfeld have been released subject to pretrial supervision and other conditions.
This case is the product of an investigation by the Federal Bureau of Investigation and the California Department of Justice – Bureau of Gambling Control. Assistant U.S. Attorney Miriam R. Hinman is prosecuting the case.
If convicted, Yifrach and Shkolnik each face a maximum statutory penalty of five years in prison and a $250,000 fine for conducting an illegal gambling business. In addition, Yifrach, Ifrah, and Rosenfeld each face a maximum statutory penalty of 20 years in prison and a $500,000 fine, or twice the value of the monetary instrument or funds involved, whichever is greater, for conspiracy to commit money laundering. The indictment also seeks the forfeiture of assets, including over $500,000 in U.S. Currency and three real estate properties in Los Angeles. Any sentence, however, would 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. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Founders of Crypto ICO Sentenced to Combined 8 Years in Prison for Tax Evasion After Raising $24 Million from InvestorsRead the Press Release
The owners of a cryptocurrency company have been sentenced to a combined 8 years in federal prison for tax evasion, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Bitqyck founders Bruce Bise, 61, and Samuel Mendez, 65, were charged with tax evasion in August 2021. Mr. Bise pleaded guilty on Sept. 9, 2021 and was sentenced on March 7, 2022 to 50 months in federal prison; Mr. Mendez pleaded guilty on October 12, 2021 and was sentenced this afternoon to 50 months in prison. U.S. District Judge Jane J. Boyle ordered the men jointly and severally liable for $1.6 million apiece.
According to plea papers, Mr. Bise and Mr. Mendez admitted that Bitqyck raised approximately $24 million from more than 13,000 investors. Instead of fulfilling their promises to these investors, the defendants used Bitqyck funds on personal expenses, including casino trips, cars, luxury home furnishings, art, and rent.
“Crypto actors are required to pay their fair share of taxes, just like everyone else,” said U.S. Attorney Chad Meacham. “Not only did these defendants shirk their tax obligations, they lied to investors and made off with their millions. Anyone else contemplating such a scheme should know that the Justice Department and its law enforcement partners have a sharp eye on the cryptocurrency space, and we will not let criminal behavior slide.”
“These criminals committed this scheme to thoroughly deceive and defraud stakeholders and the taxpaying public by cheating cryptocurrency investors,” said Special Agent in Charge Christopher J. Altemus Jr., Dallas Field Office. “The IRS-Criminal Investigation Dallas Field Office is proud to be part of the team that is bringing them to justice and will continue to pursue those who unjustly enrich themselves by not paying their taxes.”
In marketing materials, the pair promoted the company’s cryptocurrency, Bitqy, as a way for “those individuals who missed out on Bitcoin” to get rich. They held their initial coin offering, or ICO, in 2016. (An ICO is a process in which a company attempts to raise capital by selling a new cryptocurrency, which investors may purchase in the hope that the value of the cryptocurrency will increase.) In an attempt to legitimize Bitqy tokens – and to avoid scrutiny over selling unregistered securities – the company characterized the cryptocurrency as an “earned gift” that rewarded consumers for certain internet purchases.
A white paper posted on the Bitqyck website promised investors that each Bitqy token came with 1/10th of a share of Bitqyck common stock. Mr. Bise and Mr. Mendez admitted, however, that they never actually distributed shares to token holders nor embedded the shares within the Ethereum Smart Contract. The only shares of common stock Bitqyck issued were to Bise and Mendez, who collectively owned 100% of Bitqyck’s common stock.
About nine months after launching Bitqy, Mr. Bise and Mr. Mendez began marketing another token, BitqyM, arbitrarily priced at $1. They claimed buying the token allowed investors to join “Bitcoin mining operations,” by paying to power a Bitqyck Bitcoin mining facility in Washington state. In reality, Mr. Bise and Mr. Mendez admitted in plea papers, no such mining facility ever existed. Unbeknownst to investors, the defendants contracted with an overseas third-party company in an attempt to mine the Bitcoin they’d promised to investors.
(Bitcoin mining involves solving complex mathematical problems in order to verify transactions on a public ledger, known as the Blockchain. The problems require computing power, which in turn requires a significant amount of electricity.)
Mr. Bise and Mr. Mendez profited from Bitqyck by diverting income from the company for their personal use at their shareholders’ expense. From 2016 to 2018, Mr. Bise and Mr. Mendez raked in roughly $4.68 million and $4.48 million, respectively.
“By misrepresenting unregistered securities to investors who were lured with the appeal of owning shares of interest in a new and exciting marketplace, the defendants took advantage of unsuspecting individuals and defrauded them out of millions of dollars,” said Ryan L. Korner, Special Agent in Charge of IRS-CI’s Los Angeles Field Office. “Today’s sentencing saw justice served not only on the investors of cryptocurrency, but also on honest, hard-working American taxpayers who choose to pay their fair share of income taxes, rather than enriching themselves by evading their tax-paying responsibilities as both Mr. Bise and Mr. Mendez have done.”
Taxpayers transacting in virtual currency are required by law to report those transactions on their tax returns. For 2016 and 2017, Mr. Bise underreported his income to the IRS, resulting in a tax loss of $371,278. For that same period, Mr. Mendez also underreported his income to the IRS, resulting in a tax loss of $311,155. In 2018, Bitqyck failed to file any corporate tax returns at all despite netting more than $3.5 million from investors. The total tax loss joint and severally to the United States government between Mr. Bise and Mr. Mendez is more than $1.6 million dollars.
The defendants’ guilty pleas came on the heels of a civil settlement with the Securities & Exchange Commission (SEC), in which Bitqyck agreed to pay an $8.3 million penalty to resolve claims that it defrauded investors and operated an unregistered digital asset exchange. As part of that settlement, Mr. Bise and Mr. Mendez agreed to pay disgorgement and penalties of $890,254 and $850,022, respectively.
The Internal Revenue Services’ Criminal Investigations Divisions in Dallas and Los Angeles conducted the investigation. Assistant U.S. Attorney Sid Mody is prosecuting the case.
Former State Highway Patrol Officer Pleads Guilty to Selling Firearms Without a LicenseRead the Press Release
GREENSBORO, N.C. - A Browns Summit man pleaded guilty today to unlawfully transporting and dealing in firearms.
Timothy Jay Norman, age 47, pleaded guilty to dealing in firearms without a license, a violation of Title 18, United States Code, Sections 922(a)(1)(A), 923(a), and 924(a)(1)(D).
According to court-filed documents, beginning in January 2021, the Federal Bureau of Investigation (FBI) learned that Norman was selling firearms to various persons, including a convicted felon, while employed as a North Carolina State Highway Patrol (NCSHP) trooper. During the investigation, the FBI learned that Norman held out for sale, using the convicted felon as a “middleman,” various firearms, which included decommissioned NCSHP service weapons: Sig Sauer P226 .357 semi-automatic pistols; Arma Lite, AR-15 5.56mm semi-automatic rifles, and Beretta, Model 1201FP, 12-gauge shotguns. Thereafter, law enforcement agencies conducted three successful controlled purchase operations.
Specifically, on or about May 12, 2021, law enforcement, using a confidential human source, purchased a decommissioned Sig Sauer P226 .357 semi-automatic pistol, with the NCSHP badge engraved on top of the slide, in a case with two magazines, for $1,600 from Norman. On or about June 8, 2021, agencies, using a source, purchased a Beretta 12-gauge shotgun and an Arma Lite AR-15 semi-automatic rifle, one magazine, one soft black case, and one 50-round drum magazine from Norman at his home in Browns Summit, for $3,200. Finally, on or about June 24, 2021, law enforcement conducted a third successful controlled firearms evidence purchase from Norman, wherein Norman sold a NCSHP Sig Sauer P226 .357 semi-automatic pistol from his patrol car to a source at a closed gas station. Norman received $2,000 in FBI case funds in exchange for the decommissioned weapon. As to all of these firearms, records from the Federal Firearms Licensee (“the FFL”) where Norman purchased them establish that Norman made a significant profit as a result of the various transactions. The records also showed that Norman had purchased thirty-six firearms from the FFL since January 1, 2021.
On July 7, 2021, investigating agencies executed a search warrant on Norman’s home and seized thousands of rounds of ammunition and over fifty firearms. In Norman’s patrol car, they found two more firearms (neither of which was NCSHP-issued), including one AR-15 rifle that Norman purchased from the FFL earlier that year. There was also an envelope with over $2,000 in cash, which included FBI buy money from one of the controlled buy operations referenced above.
Sentencing is scheduled to take place on June 2, 2022, at 9:30 am in Greensboro Courtroom Number Three before the Honorable Catherine C. Eagles. At sentencing, Norman faces a maximum sentence of five years in prison, a period of supervised release of up to three years, and monetary penalties.
Sandra J. Hairston, U.S. Attorney for the Middle District of North Carolina, made the announcement. Agents with the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, North Carolina State Bureau of Investigation, and North Carolina State Highway Patrol-Internal Affairs Division investigated the case. The case is being prosecuted by Assistant U.S. Attorneys JoAnna G. McFadden and John M. Alsup.
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Former Sheriff of Franklin County, Arkansas Sentenced to Four Years in Prison for Assaulting Two People in CustodyRead the Press Release
Former Franklin County, Arkansas, Sheriff Anthony Boen, 51, was sentenced today to four years in prison, followed by two years of supervised release and a $4,800 fine for assaulting two individuals in his custody. After a six-day trial in August 2021, a jury in the Western District of Arkansas convicted Boen of two counts of deprivation of rights under color of law.
Evidence presented at trial established that Boen used unreasonable force to punish pretrial detainees on two separate occasions. On Dec. 3, 2018, Boen struck a detainee multiple times in the head with a closed fist while the detainee was sitting on the floor and shackled to a bench inside the Franklin County Jail. Several minutes later, Boen returned to the detainee’s cell and struck him in the head again, then spit on him. On Nov. 21, 2018, Boen slammed a detainee onto the floor and ripped his hair during an interrogation. Both detainees suffered bodily injury as a result of Boen’s actions. During the subsequent investigation of these offenses, Boen contacted officers who witnessed his assaults and pressured them not to provide truthful information to investigators.
“No one is above the law, especially high-ranking law enforcement officers who have a duty to uphold the Constitution and protect individuals in their custody,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The defendant abused his power as sheriff by assaulting the people he was sworn to protect and pressuring his subordinates to cover up his crimes. The Justice Department will continue to vigorously prosecute law enforcement officials who violate people’s civil rights.”
“Anthony Boen swore an oath to support the U.S. Constitution and the State of Arkansas Constitution,” said U.S. Attorney David Clay Fowlkes of the Western District of Arkansas. “His actions clearly violated not only the civil rights of these individuals but also the trust of the people of Franklin County. Cases like this are very important to our office because they involve the most personal and basic of civil rights: the rights to be protected and unharmed while in the custody of law enforcement officers. Today’s sentencing shows that justice will prevail in cases where a person’s civil rights are violated. We will continue to vigorously pursue cases involving the violation of basic civil rights that should be afforded to everyone.”
"When former Sheriff Boen brutally assaulted individuals in his custody and violated their civil rights, it impacted all Arkansans and their trust in authorities," said Special Agent in Charge James A. Dawson of the FBI’s Little Rock Field Office. “The FBI is committed to maintaining the public's trust in law enforcement. With today's sentencing of Mr. Boen, our community knows we will aggressively investigate and bring to justice any law enforcement officer who would violate the rights of their fellow Americans."
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Brandon T. Carter and Civil Rights Division Trial Attorney Michael J. Songer.
Related court documents may be found on the Public Access to Electronic Records website at www.pacer.gov.
Former Sheriff of Franklin County, Arkansas Sentenced to 4 Years in Federal Prison for Assaulting Two People in CustodyRead the Press Release
FAYETTEVILLE – Former Franklin County, Arkansas, Sheriff Anthony Boen, 51, was sentenced today to 48 months in prison, followed by two years of supervised release, for assaulting two individuals in his custody. After a six-day trial in August 2021, a jury in the Western District of Arkansas convicted Boen of two counts of deprivation of rights under color of law.
Evidence presented at trial established that Boen used unreasonable force to punish pretrial detainees on two separate occasions. On Dec. 3, 2018, Boen struck a detainee multiple times in the head with a closed fist while the detainee was sitting on the floor and shackled to a bench inside the Franklin County Jail. Several minutes later, Boen returned to the detainee’s cell and struck him in the head again, then spit on him. On Nov. 21, 2018, Boen slammed a detainee onto the floor and ripped his hair during an interrogation. Both detainees suffered bodily injury as a result of Boen’s actions. During the subsequent investigation of these offenses, Boen contacted officers who witnessed his assaults and pressured them not to provide truthful information to investigators.
“Anthony Boen swore an oath to support the United States Constitution and the State of Arkansas Constitution,” said U.S. Attorney David Clay Fowlkes of the Western District of Arkansas. “His actions clearly violated not only the civil rights of these individuals but also the trust of the people of Franklin County. Cases like this are very important to our office because they involve the most personal and basic of civil rights: the rights to be protected and unharmed while in the custody of law enforcement officers. Today’s sentencing shows that justice will prevail in cases where a person’s civil rights are violated. We will continue to vigorously pursue cases involving the violation of basic civil rights that should be afforded to everyone.”
“No one is above the law, especially high-ranking law enforcement officers who have a duty to uphold the Constitution and protect individuals in their custody,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The defendant abused his power as sheriff by assaulting the people he was sworn to protect and pressuring his subordinates to cover
up his crimes. The Justice Department will continue to vigorously prosecute law enforcement officials who violate people’s civil rights.”
"When former Sheriff Boen brutally assaulted individuals in his custody and violated their civil rights, it impacted all Arkansans and their trust in authorities," said FBI Little Rock Special Agent in Charge James A. Dawson. "The FBI is committed to maintaining the public's trust in law enforcement. With today's sentencing of Mr. Boen, our community knows we will aggressively investigate and bring to justice any law enforcement officer who would violate the rights of their fellow Americans."
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Brandon T. Carter and Civil Rights Division Trial Attorney Michael J. Songer.
Former San Jose State University Director of Sports Medicine Charged with Sexually Assaulting Female Student-AthletesRead the Press Release
Scott Shaw, 54, the former Director of Sports Medicine and athletic trainer at San Jose State University, has been charged today with civil rights violations for engaging in sexual misconduct with female student-athletes under the guise of treating them for their injuries.
The charges allege that between 2017 and 2020, Shaw violated the civil rights of four students who played on women’s athletics teams by touching their breasts and buttocks without their consent and without a legitimate purpose. Shaw, as a state employee for the California State University system, is further alleged to have acted under color of law when he sexually assaulted the victims.
Shaw faces a maximum of six years in prison if convicted of all counts. However, 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.
Shaw will appear to face the charges in U.S. District Court in San Jose on a date that has not yet been set.
Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division, U.S. Attorney Stephanie Hinds of the Northern District of California and Special Agent in Charge Craig D. Fair of the FBI made the announcement.
The case is being prosecuted by Assistant U.S. Attorney Michael Pitman of the Northern District of California and Special Litigation Counsel Fara Gold of the Criminal Section of the Justice Department’s Civil Rights Division. This case is being investigated by the FBI San Francisco Field Office.
Anyone with information should contact the FBI at 510-808-2600.
A charging information is merely a formal accusation of criminal conduct, and the defendant is presumed innocent unless proven guilty.
Former San Jose State University Director of Sports Medicine Charged with Sexually Assaulting Female Student-AthletesRead the Press Release
SAN JOSE – Scott Shaw, 54, the former Director of Sports Medicine and athletic trainer at San Jose State University, has been charged today with civil rights violations for engaging in sexual misconduct with female student-athletes under the guise of treating them for their injuries.
The charges allege that between 2017 and 2020, Shaw violated the civil rights of four students who played on women’s athletics teams by touching their breasts and buttocks without their consent and without a legitimate purpose. Shaw, as a state employee for the California State University system, is further alleged to have acted under color of law when he sexually assaulted the victims.
Shaw faces a maximum of six years in prison if convicted of all counts. However, 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.
A charging information, as filed here, is merely a formal accusation of criminal conduct. As with any defendant, Shaw is presumed innocent unless proven guilty.
Shaw is scheduled to appear to face the charges in U.S. District Court in San Jose on March 15, 2022, before United States Magistrate Judge Susan Van Keulen.
United States Attorney Stephanie Hinds of the Northern District of California, Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division, and Special Agent in Charge Craig D. Fair of the FBI made the announcement.
The case is being prosecuted by Assistant U.S. Attorney Michael Pitman of the Northern District of California and Special Litigation Counsel Fara Gold of the Criminal Section of the Justice Department’s Civil Rights Division. This case is being investigated by the FBI San Francisco Field Office.
Anyone with information should contact the FBI at 510-808-2600.
Former Resident of Bergen County Sentenced to 29 Months in Prison for $1.5 Million Investment Fraud SchemeRead the Press Release
NEWARK, N.J. – A former New Jersey resident was sentenced today to 29 months in prison for his role in an investment scheme through which he fraudulently obtained more than $1.52 million from at least three families from 2017 through 2019, U.S. Attorney Philip R. Sellinger announced.
Matthew Benjamin, 54, formerly of Englewood, New Jersey, and now of New York, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with one count of wire fraud and one count of securities fraud. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From May 2017 through August 2019, Benjamin falsely represented to at least three families that his company, Clear Solutions Group LLC, had lucrative contracts to purchase closeout or excess cosmetic inventory from a company, which he would then resell at a mark-up to a second company. Benjamin told the victims that he had access to these closeout goods through his contacts in the cosmetics and fragrance industry, which he purportedly made through his work at his family’s cosmetic wholesale and distribution business prior to starting Clear Solutions Group. Benjamin induced the victims to provide him with money to purchase the inventory from the first company and promised significant profits in return. Instead of investing the money as he promised, Benjamin misappropriated the investors’ money for his own use and benefit.
Benjamin provided the victims with falsified documents, including fake purchase orders, invoices, promissory notes and bank records showing inflated assets of Clear Solutions Group. To lull victims and induce them to continue investing, Benjamin provided them with documents that purported to detail the investors’ profits.
Benjamin misrepresented to certain investors that portions of their profits on the investment contracts were being reinvested in additional deals to purchase and sell cosmetics, which in turn would generate more profits. From time to time, Benjamin made payments to the investors that were purportedly their profits on certain cosmetics contracts.
In reality, Benjamin misappropriated the investors’ money by making payments to other investors in Clear Solutions Group, which were characterized as those investors’ profits from the nonexistent cosmetic contracts, thereby enabling Benjamin to continue to perpetuate his fraudulent scheme and funding Benjamin’s lifestyle, including paying for car and house rental payments, food, international travel, legal fees, technology equipment, and summer camp tuition for his family members.
In addition to the prison term, Judge Cecchi sentenced Benjamin to three years of supervised release and ordered forfeiture of $1.53 million and restitution of $909,539.
The U.S. Securities and Exchange Commission has filed a civil complaint against Benjamin based on allegations underlying the securities fraud charge.
U.S. Attorney Sellinger credited 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 Jennifer S. Kozar and Catherine R. Murphy, Chief of the Economic Crimes Unit of the U.S. Attorney’s Office.
Former Columbia Police Chief Indicted by Federal Grand Jury for Stealing Drug MoneyRead the Press Release
Bowling Green, Kentucky – A federal grand jury in Bowling Green, Kentucky returned an indictment today charging the former Columbia, Kentucky Chief of Police with stealing over $25,000 from the city of Columbia, Kentucky.
According to court documents, between February 2020 and February 2021, Jason D. Cross, 44, of Columbia, stole over $25,000 from the police department evidence locker and the city’s drug purchase fund.
Cross is charged with one count of violating Title 18, United States Code, Section 666(a)(1)(A), which makes it a federal offense for a city employee to steal more than $5,000 from a city that received over $10,000 in federal assistance in a calendar year. The defendant made his initial court appearance today before U.S. Magistrate Judge H. Brent Brennenstuhl of the U.S. District Court for the Western District of Kentucky. If convicted, he faces a maximum statutory penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky made the announcement.
The Kentucky State Police are investigating the case and Assistant U.S. Attorney David Weiser is prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Former Canadian Government Employee Extradited to the United States to Face Charges for Dozens of Ransomware Attacks Resulting in the Payment of Tens of Millions of Dollars in RansomsRead the Press Release
Tampa, FL – A Canadian man was extradited yesterday from Canada to the United States on an indictment returned in the Middle District of Florida that charges him with conspiracy to commit computer fraud and wire fraud, intentional damage to a protected computer, and transmitting a demand in relation to damaging a protected computer arising from his alleged participation in a sophisticated form of ransomware known as NetWalker. NetWalker ransomware has targeted dozens of victims all over the world, including companies, municipalities, hospitals, law enforcement, emergency services, school districts, colleges, and universities. Attacks have specifically targeted the healthcare sector during the COVID-19 pandemic, taking advantage of the global crisis to extort victims.
According to court documents, Sebastien Vachon-Desjardins, 34, of Gatineau, Quebec, Canada, from April through December 2020, conspired to and did intentionally damage a protected computer and transmit a ransom demand in connection with doing so. The indictment also alleges that the United States intends to forfeit more than $27 million, which is alleged to be traceable to proceeds of the offenses. The defendant will make his initial appearance today in federal court in Tampa before U.S. Magistrate Judge Julie S. Sneed.
“As exemplified by the seizure of cryptocurrency by our Canadian partners, we will use all legally available avenues to pursue seizure and forfeiture of the alleged proceeds of ransomware, whether located domestically or abroad,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The department will not cease to pursue and seize cryptocurrency ransoms, thereby thwarting the attempts of ransomware actors to evade law enforcement through the use of virtual currency.”
“Ransomware is a multi-billion-dollar criminal enterprise that transcends physical and political boundaries. International collaboration is essential to identify the perpetrators of these sophisticated schemes,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “This case illustrates effective international law enforcement cooperation directed at identifying cybercriminals, holding them accountable for their alleged criminal actions, and recovering funds allegedly stolen from their victims.”
“This investigation is yet another example of the outstanding work conducted by the Tampa FBI Cyber program, the Middle District of Florida, the FBI’s Cyber Division, and our law enforcement partners around the world,” said Acting Special Agent in Charge Sanjay Virmani of the FBI’s Tampa Field Office. “It is also a reminder that the FBI continues to work tirelessly to identify, locate, and apprehend those who would prey upon the innocent and bring about justice for the citizens of the United States.”
Vachon-Desjardins was extradited to the United States pursuant to the extradition treaty between the United States and Canada. Pursuant to a request submitted by U.S. authorities, Canadian law enforcement officers arrested Vachon-Desjardins in Gatineau, Quebec, on Jan. 27, 2021, and executed a search warrant at Vachon-Desjardins’s home in Gatineau. During the search, officers discovered and seized 719 Bitcoin, valued at approximately $28,151,582 as of today’s date, and $790,000 in Canadian currency.
The FBI’s Tampa Field Office is investigating the case.
Trial Attorney Sonia V. Jimenez of the Justice Department’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Carlton C. Gammons and Suzanne Nebesky of the U.S. Attorney’s Office for the Middle District of Florida are prosecuting the case. The Justice Department’s Office of International Affairs provided valuable assistance in securing Vachon-Desjardin’s arrest and extradition. The U.S. Marshals Service transported Vachon-Desjardins from Canada to the United States.
The investigation benefited from law enforcement cooperation by the Royal Canadian Mounted Police, Ontario Provincial Police, Gatineau Police Service, and National Cybercrime Coordination Unit.
An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Canadian Government Employee Extradited to the United States to Face Charges for Dozens of Ransomware Attacks Resulting in the Payment of Tens of Millions of Dollars in RansomsRead the Press Release
A Canadian man was extradited yesterday from Canada to the United States on an indictment returned in the Middle District of Florida that charges him with conspiracy to commit computer fraud and wire fraud, intentional damage to a protected computer, and transmitting a demand in relation to damaging a protected computer arising from his alleged participation in a sophisticated form of ransomware known as NetWalker. NetWalker ransomware has targeted dozens of victims all over the world, including companies, municipalities, hospitals, law enforcement, emergency services, school districts, colleges, and universities. Attacks have specifically targeted the healthcare sector during the COVID-19 pandemic, taking advantage of the global crisis to extort victims.
According to court documents, Sebastien Vachon-Desjardins, 34, of Gatineau, Quebec, Canada, from April through December 2020, conspired to and did intentionally damage a protected computer and transmit a ransom demand in connection with doing so. The indictment also alleges that the United States intends to forfeit more than $27 million, which is alleged to be traceable to proceeds of the offenses. The defendant will make his initial appearance today in federal court in Tampa before U.S. Magistrate Judge Julie S. Sneed.
“As exemplified by the seizure of cryptocurrency by our Canadian partners, we will use all legally available avenues to pursue seizure and forfeiture of the alleged proceeds of ransomware, whether located domestically or abroad,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The department will not cease to pursue and seize cryptocurrency ransoms, thereby thwarting the attempts of ransomware actors to evade law enforcement through the use of virtual currency.”
“Ransomware is a multi-billion-dollar criminal enterprise that transcends physical and political boundaries. International collaboration is essential to identify the perpetrators of these sophisticated schemes,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “This case illustrates effective international law enforcement cooperation directed at identifying cybercriminals, holding them accountable for their alleged criminal actions, and recovering funds allegedly stolen from their victims.”
“This investigation is yet another example of the outstanding work conducted by the Tampa FBI Cyber program, the Middle District of Florida, the FBI’s Cyber Division, and our law enforcement partners around the world,” said Acting Special Agent in Charge Sanjay Virmani of the FBI’s Tampa Field Office. “It is also a reminder that the FBI continues to work tirelessly to identify, locate, and apprehend those who would prey upon the innocent and bring about justice for the citizens of the United States.”
Vachon-Desjardins was extradited to the United States pursuant to the extradition treaty between the United States and Canada. Pursuant to a request submitted by U.S. authorities, Canadian law enforcement officers arrested Vachon-Desjardins in Gatineau, Quebec, on Jan. 27, 2021, and executed a search warrant at Vachon-Desjardins’s home in Gatineau. During the search, officers discovered and seized 719 Bitcoin, valued at approximately $28,151,582 as of today’s date, and $790,000 in Canadian currency.
The FBI’s Tampa Field Office is investigating the case.
Trial Attorney Sonia V. Jimenez of the Justice Department’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Carlton C. Gammons and Suzanne Nebesky of the U.S. Attorney’s Office for the Middle District of Florida are prosecuting the case. The Justice Department’s Office of International Affairs provided valuable assistance in securing Vachon-Desjardin’s arrest and extradition. The U.S. Marshals Service transported Vachon-Desjardins from Canada to the United States.
The investigation benefited from law enforcement cooperation by the Royal Canadian Mounted Police, Ontario Provincial Police, Gatineau Police Service, and National Cybercrime Coordination Unit.
An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Five Members of Violent Criminal Enterprise Arrested in Cocaine Trafficking ConspiracyRead the Press Release
BOSTON – Five members of a violent criminal enterprise were arrested and charged today in connection with a drug trafficking conspiracy that distributed large amounts of cocaine and cocaine base (crack cocaine) throughout Western Massachusetts.
“These defendants are alleged to have inundated Western Massachusetts with cocaine and crack cocaine – fueling violence and capitalizing on the devastating opioid and drug crises,” said United States Attorney Rachael S. Rollins. “Today, thanks to the exceptional work by a multitude of dedicated law enforcement agencies, this violent criminal enterprise has been brought to its knees. Our investigation demonstrates the strength of collaboration among state, local, and federal law enforcement and the invaluable positive impact that work can have on safety in our communities. My office will continue to partner with law enforcement, medical experts and community organizations to reclaim our impacted neighborhoods.”
“Today’s arrests have dismantled a violent criminal enterprise headed by Vincente Gonzalez which we believe is responsible for flooding the streets of western Massachusetts with cocaine and crack cocaine while using firearms, force, and intimidation to protect their turf,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “This case is just one example of how the FBI’s Western Massachusetts Gang Task Force is working with our law enforcement partners to stop the senseless violence that is a blight on our neighborhoods, and to make them safer places to live and raise a family.”
“I would like to thank the brave and hardworking men and women of the Holyoke Police Department, FBI Gang task Force, ATF, DEA, US Marshals, Massachusetts State Police, and the Hampden County Sheriffs for their dedication to duty and to the citizens of Holyoke. Today's search warrants will significantly damage the narcotic sales taking place in Holyoke. The criminals that were arrested today along with their operations being grounded to a halt, will have a great impact on the quality of life for Holyoke citizens. The narcotic sales from these locations brought gun violence to our streets, endangered the children of Holyoke and increased the opiate abuse within our City,” said Holyoke Police Chief David Pratt. “I am aware there is more hard work to be done but I am confident in the success of Holyoke due to the cooperation between our citizens and law enforcement
Springfield Police Superintendent Cheryl C. Clapprood stated, “I’d like to thank our federal partners at the U.S. Attorney’s Office and FBI, our Springfield Police Firearms Investigation Unit and Warrant Apprehension Unit for their work in taking numerous illegal firearms and illicit drugs off the street in both Springfield and Holyoke Thursday morning. By sharing intelligence and having a dedicated Springfield Police Officer in the FBI Task Force we are able to work together across the region to combat senseless gun violence. The results of this Gang Task Force investigation puts a dent in the illegal drug trade across western Massachusetts and sends a clear message to the individuals possessing illegal firearms. We fully support and are thankful for the U.S. Attorney’s Offices’ efforts to address and reduce gun violence in our community.”
The following individuals were arrested and charged by criminal complaint with conspiracy to distribute cocaine and cocaine base:
- Vicente Gonzalez, 41, of Springfield;
- Brigham Ocasio-Rosario, 44, of Springfield;
- Miguel Burgos, 45, of Holyoke;
- Khristy Guzman, 37, of Holyoke; and
- Willie Watkins, 42, of Springfield;
According to court documents, investigators identified Gonzalez to be the leader of a violent criminal enterprise operating in Hampden County. During the investigation, controlled purchases and intercepted communications between Gonzalez and his co-conspirators revealed that, beginning in or about July 2021, the defendants allegedly prepared and trafficked large amounts of cocaine and crack cocaine in the Holyoke and Springfield areas.
In furtherance of the trafficking activity, the investigation revealed that the enterprise used violence and threats of violence to control Gonzalez’s territory in Holyoke. For example, court documents allege that in July 2021, Gonzalez, Ocasio and other co-conspirators attempted a violent armed kidnapping at the enterprise’s drug sale location in Holyoke. During the incident, Gonzalez and Ocasio allegedly brandished and pointed firearms at the victim and, after the victim fled the building, chased and attempted to detain the victim with their firearms.
Today, investigators seized approximately 400 grams of cocaine, cocaine base, 12 firearms, ammunition, drug proceeds and drug packaging materials.
The charge of conspiracy to distribute cocaine and cocaine base provides for a sentence of up to 20 years in prison, up to a lifetime of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Rollins, FBI SAC Bonavolonta, Holyoke PD Chief Pratt and Springfield PD Superintendent Clapprood made the announcement today. The investigation was led by the Federal Bureau of Investigation’s Western Massachusetts Gang Task Force. Valuable assistance was provided by the Massachusetts State Police’s Commonwealth Interstate Narcotics Reduction Enforcement Team (CINRET) and the Hampden District Attorney’s Office’s Strategic Action and Focused Enforcement (SAFE) Unit. Assistant U.S. Attorney Neil L. Desroches of Rollins’ Springfield Branch Unit is prosecuting the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Federal Jury Convicts Pryor Man of Sexually Abusing Two of his ChildrenRead the Press Release
TULSA, Okla. – A Pryor man was convicted Thursday in federal court for repeatedly sexually abusing two of his daughters for approximately 10 years, announced U.S. Attorney Clint Johnson. In 2020 when the two victims were adults, they came forward to report the abuse.
A federal jury found Keith Duane Parnell, 49, guilty of three counts of aggravated sexual abuse of a minor under 12 in Indian Country and four counts of sexual abuse of a minor in Indian Country.
“For years, Keith Parnell violated the trust and innocence of two children,” said U.S. Attorney Clint Johnson. “This week, a federal jury evaluated the evidence and convicted Parnell of these grievous crimes. I am thankful for the jury’s service and for the exemplary work done in this case by the Pryor Police Department, FBI, and federal prosecutors Reagan Reininger and Chantelle Dial.”
“The details of this case are stomach-turning and serve as a prime example of how children can be victimized in the safety of their own homes,” said Edward Gray, Special Agent in Charge of the FBI Oklahoma City Division. “We must do better as adults in protecting innocent children because even one being victimized by a predator is too many. A first step in helping someone who may be a victim: Call 1-800-CALL-FBI if you, or someone you know, has suffered sexual abuse.”
Parnell began sexually abusing the two minor victims at approximately 5 years of age. The victims described Parnell as a good dad who was trusted and was always “nice about the sexual abuse.” Over the next ten years, the abuse escalated and included Parnell repeatedly forcing the victims to perform oral sex on him and also penetrating the victims’ genitals with his penis and fingers. Neither child knew the other was also being abused. They had hoped by enduring the abuse, they were protecting their siblings. As a teenager, one of the victims tried to tell a relative about the sexual abuse. A witness for the prosecution, who was there the night the disclosure occurred, corroborated the victim’s account. At trial, the victim testified that multiple relatives told her it was too late for police to do anything and that it was a family embarrassment, eventually resulting in her recanting the allegations.
The two victims struggled to cope with the abuse they endured from Parnell, and as teenagers, each attempted suicide. Neither victim reported the abuse to authorities until they were adults.
Often in cases of child sexual abuse, victims may not come forward when they are young to disclose the abuse. Victims may not report for various reasons that may include: feelings of shame, fear of being blamed, fear of their abuser, fear of the break-up of their family, fear of others not believing them, pressure from others not to report the crimes, or they may look up to their abuser.
In August 2020, one of the victims described in detail the abuse both victims endured as children in a Facebook post. A Pryor Police detective was alerted about the post, began an investigation into the allegations, and interviewed the two victims and others.
In closing, the defense called into question the victims’ motives and surmised the claims were lies and mudslinging made up in an attempt to get back at Parnell due to a recent rift that was forming between Parnell and one of the victims. He also questioned why they did not go to authorities and why they maintained a relationship with their abuser.
Prosecutors argued in closing statements that the victims could be believed-- that their first sexual experiences, starting at the age of five, were sexual assaults committed by their own father. They stated that much of the victims’ testimony was corroborated by witnesses for both the defense and prosecution. Prosecutors further described a home in chaos where the victims did not feel safe and lived in constant fear of losing their family or being punished. They were afraid of their parents but also afraid to lose their siblings, the parents they did have, and their home. Prosecutors stated the victims’ accounts were credible and asked the jury to find Parnell guilty.
The FBI and Pryor Police Department conducted the investigation. Assistant U.S. Attorneys Reagan V. Reininger and Chantelle D. Dial are prosecuting the case.
Federal Jury Convicts Indianapolis Man of Drug Trafficking and Firearm Related OffensesRead the Press Release
INDIANAPOLIS – Following a federal trial, a jury convicted Demetrius Jackson, 26, of Indianapolis, of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute marijuana, possession of a firearm in furtherance of drug trafficking, and unlawful possession of a firearm by a previously convicted felon.
According to court documents and evidence presented at trial, in late January of 2021, federal agents learned that Jackson was trafficking in methamphetamine and was willing to sell a firearm to another drug dealer. Jackson has numerous prior felony convictions, including battery resulting in bodily injury, and is not legally able to possess a firearm. The jury returned its verdict late Tuesday.
Agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and officers with the Indiana Crime Guns Task Force (ICGTF) executed a search warrant at Jacksons residence. Investigators seized a loaded handgun, a rifle, approximately eight pounds of marijuana, and more than $10,000 in U.S. currency. Further investigation into the matter by the ATF reveled that Jackson had been distributing methamphetamine to individuals in Indianapolis since at least October 2020.
Jackson will be sentenced by Chief U.S. District Judge Tanya Walton-Pratt at a later date and faces a mandatory 15 years up to life in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana and ATF Acting Special Agent in Charge for the Columbus Field Division, Timothy Canon, made the announcement.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Indianapolis Metropolitan Police Department investigated the case. The U.S. Drug Enforcement Administration also provided valuable assistance.
U.S. Attorney Myers thanked Assistant U.S. Attorney Michelle P. Brady who prosecuted this case.
This case was brought as part of the Indiana Crime Guns Task Force (ICGTF). ICGTF is partnership of law enforcement officers and analysts from several central Indiana law enforcement agencies in Boone, Hamilton, Hancock, Hendricks, Marion, Morgan, Johnson, and Shelby counties. In cooperation with state, local, and federal partners, ICGTF collaborates to address violent crime through a comprehensive strategy including innovative approaches to locating suspects and evidence related to violent crimes and illegal possession of firearms.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime.
Federal Inmate Pleads Guilty to Assaulting Federal OfficerRead the Press Release
RALEIGH, N.C. – An Arizona man pled guilty yesterday to assaulting a federal law enforcement officer at the Federal Medical Center in Butner, North Carolina (“FMC Butner”).
According to court documents, Michael Anthony Mata, 47, an inmate at FMC Butner at the time of the offense, struck the law enforcement officer in the face after the officer told him he was in an unauthorized area and asked him to return to his assigned housing unit. As a result of the contact, the officer suffered a fracture to his left orbital wall and required further medical care.
Mata pled guilty to the sole count of the Superseding Indictment, 18 U.S.C. § 111(a)(1) and (b), and faces a maximum penalty of up to 20 years in prison when sentenced in the June 2022 term of court.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after United States Magistrate Judge Robert T. Numbers, II accepted the plea. The Federal Bureau of Prisons is investigating the case and Special Assistant U.S. Attorney Mallory Brooks Storus is prosecuting the case.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-cr-00507-BR.
Farley Man Charged with Producing, Distributing Child PornographyRead the Press Release
KANSAS CITY, Mo. – A Farley, Missouri, man has been charged in federal court with producing and distributing child pornography.
Andrew J. McCardie, 35, was charged in a criminal complaint filed in the U.S. District Court in Kansas City, Mo., on Monday, March 7, with one count of producing child pornography and one count of distributing child pornography over the internet.
Following a detention hearing today, McCardie will remain in federal custody without bond until his trial.
According to an affidavit filed in support of the federal criminal complaint, an FBI online covert employee from the Atlanta, Georgia, field office was in contact with McCardie on the Kik messaging application. McCardie allegedly claimed to be sexually abusing multiple children. During the chat, the affidavit says, McCardie claimed he had been producing child pornography at others’ request for a couple of years.
On March 5, 2022, McCardie allegedly sent the FBI employee two videos that depicted child sexual abuse. McCardie claimed that one of the videos, which appear to depict him sexually abusing a child, was taken the same day. He also sent a screen shot as evidence that it was a live video taken with the Kik application and previously sent to another Kik user.
On March 6, 2022, law enforcement officers executed a search warrant at McCardie’s residence. The entry team attempted to take control of McCardie near the entrance of the residence but he resisted, initially holding a firearm as officers entered. McCardie was brought out into the yard, where he continued to resist before being handcuffed and placed under arrest. According to the affidavit, McCardie attempted to hide his iPhone in the bedroom closet, but officers found the phone and seized it in order to conduct a forensic investigation.
The charges contained in this complaint 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 Assistant U.S. Attorney Kenneth W. Borgnino. It is being 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."
Essex County Man Sentenced to 108 Months in Prison for Mortgage and Securities Fraud SchemesRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 108 months in prison for conspiring to obtain mortgage loans to finance the sale of properties to unqualified buyers, securities fraud by inducing a victim into investing over $1.2 million into real estate companies under false pretenses, and violation of supervised release, Attorney for the United States Vikas Khanna announced.
Maurice Bethea, 54, of Newark, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of bank fraud conspiracy and one count of securities fraud. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From May 2009 through June 2012, Bethea and others recruited buyers to purchase multi-unit residential properties owned by Westinghouse Redevelopment Act Inc., a company Bethea controlled. Bethea and his conspirators used false information about the buyers’ assets and income to support fraudulent mortgage loan applications to a mortgage company. They falsified the buyers’ loan application by boosting liquid assets. Bethea and his conspirators transferred cash from Westinghouse’s and others’ accounts to the buyers’ bank accounts and falsified documents to hide the transfers. After the loans were approved, Bethea and his conspirators caused the return of the funds to Westinghouse. When it came time to close the transactions, Bethea and his conspirators defrauded the mortgage company by hiding that Westinghouse and others, not the buyers, provided the cash to close the transactions. Ultimately, the buyers were not able to repay the loans, which resulted in losses to several financial institutions.
From April 2017 through May 2018, Bethea deceived an individual into investing in Bethea’s real estate companies. Bethea told the victim that he would invest his money in companies that Bethea owned and that were in the business of buying foreclosed homes, renovating the homes, and then reselling the properties. Bethea falsely promised the victim that Bethea would pay him a 12 percent return on his investment and $10,000 each time one of Bethea’s companies sold a property. In reality, Bethea took the victim’s $1.27 million investment, spent the money for other purposes, and then lied to the victim about Bethea’s failure to make monthly interest payments and the condition of the properties under Bethea’s control.
The 108-month sentence imposed today includes a 21-month sentence for violation of supervised release; Bethea was on supervised release for an earlier conviction at the time he committed the counts he pleaded guilty to in this case. In addition to the prison term, Judge Wigenton sentenced Bethea to five years of supervised release. Restitution will be determined at a later date.
Attorney for the United States Khanna credited special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak; special agents of the U.S. Department of Housing & Urban Development, Office of Inspector General, Mid-Atlantic Region, under the direction of Special Agent in Charge Shawn Rice; 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 the sentencing.
The government is represented by Assistant U.S. Attorneys Andrew M. Trombly of the Cybercrime Unit and Ari B. Fontecchio of the Special Prosecutions Division in Newark, and Special Assistant U.S. Attorneys Kevin V. Di Gregory and Charlie L. Divine of the Federal Housing Finance Agency, Office of Inspector General.
Essex County Man Arrested for Distributing Child PornographyRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man employed as a food services worker in a high school was arrested today for distributing images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced.
Ezra W. Saphire, 29, of West Orange, New Jersey, is charged by complaint with one count of distribution of child pornography. He had his initial appearance by videoconference before U.S. Magistrate Judge André M. Espinosa and was released on home confinement with electronic monitoring.
According to documents filed in this case and statements made in court:
Saphire was employed as a food services contractor at a high school in East Hanover, New Jersey. From June 9, 2021, through Jan. 22, 2022, law enforcement conducted undercover online sessions using a publicly-available peer-to-peer (P2P) software application program, a method of communication available to Internet users through the use of special software that allows users to trade digital files through a worldwide network that is formed by linking computers together. Law enforcement officers used P2P software to download 1,014 video files and 659 image files containing images of child sexual abuse through the IP address associated with Saphire’s residence. These files included multiple visual depictions of pre-pubescent children being sexually abused by adults.
The count of distributing child pornography carries a mandatory minimum term of five years in prison and a maximum term of 20 years in prison and a fine of $250,000, or twice the gross gain or loss caused by the offense.
U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to today’s charges. He also thanked the West Orange Police Department and the East Hanover Police Department for their assistance with the investigation.
The government is represented by Assistant U.S. Attorney Hayden M. Brockett of the Health Care Fraud Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
EDVA Announces Grant Funding for Project Safe Neighborhood InitiativesRead the Press Release
ALEXANDRIA, Va. – Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia (EDVA), announced today the availability of $535,653 in grant funding for Project Safe Neighborhood (PSN) initiatives.
“Addressing violent crime is among my top priorities, and it is where EDVA is focusing significant effort. We are collaborating closely with our local, state, and federal partners on violence prevention and working to build trust and a stronger feeling of safety in the communities we serve,” said U.S. Attorney Jessica Aber. “We recognize that to make a dent in violent crime we need an all-hands effort from the community. Law enforcement cannot solve this problem alone. It is with this in mind that I am pleased to announce the availability of grant funding for organizations and local and state agencies.”
EDVA has focused additional resources on its PSN program in the last year. On August 31, 2021, the Acting U.S. Attorney for EDVA announced the assignment of two federal prosecutors specifically assigned to coordinate PSN efforts in each of the district’s four geographic Divisions. In addition to the efforts of over 40 experienced prosecutors throughout the district, these coordinators are focused on chronic offenders, gangs, and firearms traffickers, as well as on engaging with community partners to seek prevention and intervention opportunities.
This change is part of the reassessment and retooling of EDVA’s strategy to address the most pressing violent crime problems with three principles in mind: fostering trust and legitimacy through increased community engagement; a heightened focus and attention on prevention and intervention; and strategic enforcement through enhanced multi-agency, multi-jurisdiction, proactive investigations.
Guided by those principles, EDVA’s new PSN strategy sets a number of goals to reduce violent crime:
- Engage, collaborate, and invite community stakeholders to share responsibility in efforts to reduce violent crime.
- Build trust between law enforcement and the community through effective communication, regular interaction, and the support and protection of crime victims.
- Reduce accessibility and possession of handguns among minors.
- Reduce re-offending and break the cycle of re-victimization.
- Disrupt and dismantle the region’s most organized and violent gangs.
- Identify chronic violent offenders responsible for a disproportionate level of violent crime.
- Work with citizens in neighborhoods most impacted by violent crime on harm reduction strategies.
Last fall, in an effort to enhance EDVA’s collaboration with local, state, and community partners, the U.S. Attorney’s office formed a Grant Committee to help identify and allocate grant funds to programs and initiatives that support EDVA’s PSN violence reduction strategy. The PSN Grant Committee had its inaugural meeting on December 7, 2021, met again on January 28, 2022, and consistent with EDVA’s strategic emphasis, the Committee is currently focused on three regions—Richmond, Newport News, and Norfolk—but will evaluate grant applications from across the Eastern District.
The U.S. Attorney and the PSN Grant Committee encourage organizations and local and state agencies whose programs support our PSN goals within the district to apply for grant assistance by visiting the Virginia Department of Criminal Justice Services website at https://www.dcjs.virginia.gov/grants/programs/fy-2022-project-safe-neighborhoods-psn-grant-solicitation. Please submit proposals and budgets by April 15, 2022.
On December 9, 2021, as part of a nationwide effort to expand PSN, the U.S. Department of Justice announced $17.5 million in additional grant funding to support PSN efforts nationwide, including $247,745 for EDVA.
“We look forward to putting this grant money to good use in the new year and remain optimistic that with the help of the community we can reduce violent crime. Everyone deserves to feel safe in their towns and cities—as Virginians and Americans, we owe that to each other,” said U.S. Attorney Jessica Aber.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Dover Man Sentenced to 72 Months for Fentanyl TraffickingRead the Press Release
CONCORD - Dylan Greene, 40, of Dover, was sentenced to 72 months in federal prison for possession of fentanyl with intent to distribute, United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on June 11, 2020, a Dover police officer observed Greene conduct what appeared to be a drug transaction between two buildings in Dover. Greene was subsequently stopped for a traffic violation. The officer learned Greene had a warrant for theft and he was arrested. During a search incident to the arrest, the officer located 20 grams of fentanyl in Greene’s possession.
On September 15, 2020, law enforcement officers received information that Greene would be traveling from Hampton to Dover transporting drugs. After observing Greene and another male interact in Hampton and then depart in a truck, officers made a traffic stop. A later search of the truck pursuant to a search warrant yielded approximately 361 grams of fentanyl, $2,190 in cash, and various items indicative of drug trafficking, including drug ledgers.
“Despite fentanyl’s deadly impact in our state, heartless drug dealers continue to sell this dangerous drug in our communities,” said U.S. Attorney Farley. “Drug traffickers who choose to do business in New Hampshire should understand that there will be significant penalties for their unlawful conduct. We are working closely with our law enforcement partners to protect public safety by holding drug dealers responsible for their crimes.”
“Dylan Greene will now spend the next six years behind bars after being caught red-handed trafficking fentanyl, furthering the scourge of opioids in our communities, for his own personal profit,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “This case is a testament to the strength of our law enforcement partnerships in New Hampshire and illustrates how there really is no such thing as a routine traffic stop.”
This matter was investigated by the Dover Police Department and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Aaron Gingrande.
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District of Columbia Man Sentenced to 70 Months in Prison for Conspiracy to Distribute Narcotics and Use FirearmsRead the Press Release
WASHINGTON – Andre Nickens, 22, of Washington D.C., was sentenced today to 70 months in federal prison for his role in an ongoing conspiracy to distribute narcotics and a related conspiracy to possess firearms in furtherance of drug trafficking.
The announcement was made by U.S. Attorney Matthew M. Graves, Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division, and Charlie J. Patterson, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Nickens is one of more than a dozen individuals arrested as part of a joint FBI/ATF investigation which resulted in the seizure of more than 34 pounds of marijuana, 16 firearms, and more than $270,000 in cash.
Nickens, who used the street nickname “Dreco,” pleaded guilty in November 2021, in the U.S. District Court for the District of Columbia, to one count of conspiracy to distribute more than 100 kilograms of marijuana, as well as oxycodone and codeine. As part of his plea agreement, Nickens admitted to participating in a separate conspiracy to use, carry, and possess firearms and to serving in a leadership role of both conspiracies. He was sentenced by the Honorable Amy Berman Jackson. Following his prison term, Nickens will be placed on four years of supervised release.
According to the government’s evidence, beginning in approximately June 2018, and continuing through April 2021, Nickens and his co-conspirators maintained drug-dealing territory on Trenton Place SE in the Congress Heights neighborhood of Washington, D.C. – a territory they defended by carrying, and discharging, firearms at perceived rivals. As part of his role in the conspiracy, Nickens distributed narcotics in street-level transactions and served as an armed defender of the co-conspirators’ drug-dealing territory. Nickens encouraged his co-conspirators to pool their money and buy as many firearms as possible for use in defending their territory, and admitted to having participated in shootings in defense of the co-conspirators’ territory.
Nickens was arrested on April 22, 2021. He has been detained ever since.
In announcing the sentence, U.S. Attorney Graves, Special Agent in Charge Jacobs, and Special Agent in Charge Patterson commended the work of those who investigated the case from the FBI and ATF. They also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Genevieve de Guzman, Kim Hall, and Teesha Tobias. Finally, they commended the work of Assistant U.S. Attorney James B. Nelson, who investigated and prosecuted the case, with help from Assistant U.S. Attorney Kaitlin Vaillancourt and former Assistant U.S Attorney Christopher Berridge.
Departments of Justice and Labor Strengthen Partnership to Protect WorkersRead the Press Release
The Justice Department’s Antitrust Division and the Labor Department signed a memorandum of understanding (MOU) today to strengthen the partnership between the two agencies to protect workers from employer collusion, ensure compliance with the labor laws and promote competitive labor markets and worker mobility. The objectives of the President’s Executive Order on Promoting Competition in the American Economy will be supported by this continued partnership.
“Protecting competition in labor markets is fundamental to the ability of workers to earn just rewards for their work, to live out the American dream, and to provide for their families,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “By cooperating more closely with our colleagues in the Department of Labor, we can share enforcement information, collaborate on new policies, and ensure that workers are protected from collusion and unlawful employer behavior. Protecting the right of workers to earn a fair wage is core to the work of both our agencies, and it will continue to receive extraordinary vigilance from the Antitrust Division.”
“Anticompetitive practices harm both workers and high road employers,” said Solicitor of Labor Seema Nanda. “The Department of Labor looks forward to collaborating with the Antitrust Division to ensure there is a level playing field in the labor market and that workers receive their fair pay. Through this partnership, we will work together to tackle unlawful behavior that we are seeing across industries – including misclassification and wage fixing. This is an important moment in recognizing that protecting competition protects workers. Working with the Justice Department to root out these unscrupulous practices will help us empower workers and improve job quality.”
The Departments of Justice and Labor share an interest in promoting competitive labor markets. Both agencies are charged with protecting workers who have been harmed or may be at-risk of being harmed by anticompetitive and unlawful conduct, including through the use of business models designed to evade legal accountability and business practices, such as illegal agreements to fix wages or inappropriate use of noncompete agreements, that cause direct harm to employees.
The MOU signed today by Assistant Attorney General Kanter and Solicitor Nanda announced new steps the two agencies will take to strengthen this partnership. Through greater coordination in information sharing, enforcement activity and training, the two agencies will maximize the enforcement of federal laws, including worker protection laws under the Labor Department’s jurisdiction and the antitrust laws enforced by the Justice Department’s Antitrust Division. In particular, this MOU will allow the two agencies to refer cases of potentially illegal activity to each other, as appropriate, and to coordinate on policy, strategy and training.
This announcement follows the Department of Treasury releasing a report March 7 highlighting how lack of competition affects workers’ wages and opportunities. The MOU is a further step for the departments in addressing some of the challenges highlighted in the report.
The Labor Department is responsible for protecting and empowering workers through enforcing and administering standards on wage and hour, mine safety, workplace-related benefits, occupational safety and health, and whistleblower protection. The Justice Department is charged with promoting and protecting competition by enforcing the antitrust laws of the United States.
Information about possible antitrust violations or potential anticompetitive activity should be reported to the Antitrust Division Citizen Complaint Center. To learn more about how to seek whistleblower protection under the Criminal Antitrust Anti-Retaliation Act, please go to https://www.whistleblowers.gov/complaint_page.
Denton County Man Sentenced to 45 Years in Federal Prison for Child Pornography ViolationsRead the Press Release
PLANO, Texas – A Lewisville man has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Aliyah George Simpson, 26, pleaded guilty on June 2, 2021, to five counts of production of child pornography and one count of transportation of child pornography and was sentenced to 540 months in federal prison today by U.S. District Judge Sean D. Jordan.
According to information presented in court, in the fall of 2020, members of HSI and the Flower Mound Police Department were investigating an individual using an online cloud storage service to transport files of child pornography. As part of that investigation, investigators served a search warrant at Simpson's residence, during which they seized several items of digital equipment. Through a forensic investigation, agents located a number of images and videos of a child identified as Victim 1, a minor who had not attained the age of 10-years old. Agents also located messages with other minors in a social media application, in which Simpson induced the teens to engage in sexually explicit conduct, film that conduct, and then send the recordings to him.
As part of his plea agreement, Simpson admitted to abusing Victim 1 on multiple occasions. Specifically, while Victim 1 was sleeping or unconscious, Simpson sexually abused the child and recorded the abuse on cellular telephones that he owned. Simpson has also admitted to persuading, inducing, and enticing two other minors, known as Victim 2 and Victim 3, to film themselves engaged in sexually explicit conduct and to send him the recordings. Simpson was indicted by a federal grand jury on October 15, 2020.
“This office, joined by our local, state and federal law enforcement partners, will always work tirelessly and spare no expense to detect, arrest and prosecute anyone who chooses to harm a child,” said U.S. Attorney Brit Featherston. “In fact, to those who commit these evil acts, you are our priority. We appreciate those dedicated men and women of law enforcement who make it their mission to protect the children of our communities.”
“HSI works relentlessly with our law enforcement partners at all levels to ensure child predators face justice for their unspeakable crimes,” said Christopher Miller, acting Special Agent in Charge HSI Dallas. “This lengthy sentence reaffirms our commitment to protecting the innocence of our most vulnerable from sexual abuse and exploitation.”
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by Homeland Security Investigations and the Flower Mound Police Department and prosecuted by Assistant U.S. Attorney Marisa Miller.
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Danville Man Sentenced to Ten Years in Prison for Drug Trafficking and the Unlawful Use of FirearmsRead the Press Release
URBANA, Ill. – A Danville, Illinois, man, Deandre Smith, 35, was sentenced on March 8, 2022, to a combined term of 120 months in the Bureau of Prisons for convictions including distribution of fentanyl, distribution of methamphetamine, possession of fentanyl with the intent to distribute, carrying a firearm during and in relation to a drug trafficking crime, and possession of a firearm by a felon.
A grand jury in the Central District of Illinois returned an indictment charging Smith with aforementioned offenses in August 2020. Smith pled guilty to four of the counts in June 2021, but elected to go to trial on the charge that he carried a firearm during and in relation to a drug trafficking crime.
During the two-day jury trial in September 2021, the United States presented evidence of Smith’s involvement in drug trafficking. Following two drug purchases from Smith by a confidential source, law enforcement arrested Smith at Dale’s Tavern in Danville on February 3, 2020. During the arrest, officers found 23 packages of fentanyl in one of Smith’s jacket pockets, and a digital scale and a loaded Smith & Wesson handgun in the other pocket. Smith insisted at the time that he was selling heroin, but later testing showed he was selling the far more potent fentanyl. Following a short deliberation, a jury convicted Smith of carrying a firearm during and in relation to his fentanyl trafficking crime.
At the sentencing, U.S. District Judge Michael M. Mihm agreed with the jury that Smith was carrying a gun to further his drug trade. Judge Mihm sentenced Smith to concurrent 60-month terms of imprisonment on the four counts involving drug trafficking and possession of a firearm by a felon and a consecutive 60-month term of imprisonment for carrying a firearm during and in relation to a drug trafficking crime.
The Vermilion Metropolitan Enforcement Group investigated the case with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives; Illinois State Police; Danville Police Department; and Vermilion County Sheriff’s Department. Assistant U.S. Attorneys Bryan Freres and William Lynch represented the government in the prosecution, in coordination with Vermilion County State’s Attorney Jacqueline Lacy.
Couple Pleads Guilty to Conspiracy to Commit Wire Fraud and Conspiracy to Impede and Defraud the IRSRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Guillermo Inamagua (56, Davenport) and Mayra Velasquez (34, Apopka) have pleaded guilty to one count of conspiracy to commit wire fraud and one count of conspiracy to defraud the United States. Each faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Inamagua and Velasquez each owned and managed a construction company which they had registered with the State of Florida. Inamagua’s company was named First Construction and Velasquez’s company was named Best Construction. These companies purported to supply construction services and a labor force to work for construction contractors. As such, each company was required to secure and maintain adequate worker’s compensation insurance coverage in order to comply with Florida law. The providers of worker’s compensation insurance based the premiums they charged and the amount of coverage they provided on the number of employees a company had and the total annual payroll of those employees. Inamagua’s and Velasquez’s companies each had agreements with contractors and subcontractors to use workers purported to be their company’s employees at construction sites. These workers were often undocumented aliens who were actually working for and under the daily supervision and direction of the contractors. Inamagua and Velasquez or others would regularly receive “payroll checks” from these contractors that were cashed at various financial institutions to pay the purported “employees” of either Best or First Construction.
During the time periods charged in their respective criminal informations, Inamagua and Velasquez each falsely and fraudulently represented in insurance applications that their company had very limited payroll and a very limited number of employees that worked on construction jobsites. They also caused the transmission of false and fraudulent wire communications to numerous contractors representing that their companies’ employees had full worker’s compensation coverage. In reality, Inamagua’s company received and cashed more than $18 million in checks from various construction contractors for his purported employees. This payroll figure far exceeded the very limited payroll figures that Inamagua had reported to his worker’s compensation insurance company. Velasquez’s company received and cashed more than $7 million in checks from various construction contractors for her purported employees. This payroll figure far exceeded the very limited payroll figures that Velasquez had reported to her worker’s compensation insurance company. As a result, these employees performed work on jobsites without adequate insurance coverage. In addition, the insurers lost premiums they would have charged had they been aware of the true number of workers their policies were being manipulated to cover.
As a result of these misrepresentations, Best and First Construction also disclaimed responsibility for ensuring that jobsite workers were legally authorized to work in the United States and that required state and federal payroll taxes were being paid for these workers. Thus, the contractors who actually paid these workers’ wages and used their services were also able to avoid responsibility for those duties as well. Over the course of this conspiracy, Inamagua’s misrepresentations caused a loss to the IRS of approximately $4,673,571 in unpaid payroll taxes. Velasquez’s misrepresentations caused a loss to the IRS in the amount of approximately $1,769,000.
These two cases are part of a series of prosecutions related to similar construction industry-related fraud in the Tampa Bay area. This case was investigated by the Internal Revenue Service – Criminal Investigation and the State of Florida Department of Financial Services – Division of Investigative and Forensic Services. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
Council Bluffs Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Jan Sharp announced that Vance Campbell, 38, of Council Bluffs, Iowa, was sentenced today to 15 years’ imprisonment for conspiracy to distribute and possess with intent to distribute 50 grams or more of actual methamphetamine with one prior serious drug felony by Senior United States District Judge Joseph F. Bataillon. Following his release from prison, Campbell will serve 10 years on supervised release. There is no parole in the federal system.
Officers observed Campbell at a gas station in Omaha and were aware that he had a warrant. Officers made contact with Campbell and arrested him. A K-9 indicated to the odor of narcotics on Campbell’s vehicle and after a subsequent search, officers found 189 grams of actual methamphetamine and $4,189 in United States currency.
Campbell had a prior serious drug felony conviction for conspiracy to distribute and possession with intent to distribute methamphetamine in the District of Nebraska in 2003, which he served 168 months in federal prison. As a result of this prior conviction for a serious drug felony, he faced a statutory minimum sentence of 15 years.
This case was investigated by the Omaha Police Department.
Cooperación en Procuración de Justicia entre Estados Unidos y México Lleva a Captura de Traficantes de PersonasRead the Press Release
WASHINGTON – La extensa cooperación bilateral entre Estados Unidos y México llevó a la Fiscalía General de la República (FGR) a realizar un operativo de procuración de justicia significativo y desmantelar a una prolífica organización transnacional de traficantes de personas que operaba en Nogales, Sonora, y a lo largo de la frontera entre Estados Unidos y México.
Esta organización de traficantes de personas es presuntamente responsable del contrabando ilegal de un gran número de individuos de México, Centroamérica y Sudamérica al estado de Arizona y a otros lugares a lo largo de Estados Unidos. La operación de procuración de justicia incluyó seis órdenes de arresto en México para los coordinadores de contrabando: Arturo Tienda-Garcia conocido como “Tuercas,” Jose Guadalupe Tienda-Garcia conocido como “Pantera”, Gilberto Escalante-Osuna conocido como “Mochomo”, Uriel Cruz-Tienda conocido como “Quiqui,” Cristal Tolentino-Hernandez, y Alfonso Sotelo-Contreras conocido como “Pájaro.”
“El Procurador General estableció la Fuerza de Tarea Conjunta Alfa en respuesta a la amenaza de las redes transnacionales de tráfico de personas, y esta operación es un gran ejemplo de su impacto,” aseguró el Procurador General Adjunto General Kenneth A. Polite Jr. de la División Criminal del Departamento de Justicia. “La Fuerza de Tarea Conjunta Alfa utiliza los recursos procesales y de investigación del departamento, así como a sus aliados en procuracion de justicia, para detectar a traficantes de personas y mejorar la coordinación y los esfuerzos transnacionales de procuración de justicia para combatir de una mejor manera a las organizaciones criminales.”
“La seguridad fronteriza debe enfocarse en el incremento de la cooperación entre vecinos y menos en la edificación de barreras entre naciones, y más sobre el incremento de la cooperación entre vecinos,” dijo el Fiscal estadounidense Gary Restaino del Distrito de Arizona. “Esta operación es un gran ejemplo de lo que se puede lograr cuando autoridades de Estados Unidos y México trabajan juntas a lo largo de la frontera. Por años, estos individuos han violado las leyes de Estados Unidos y México con impunidad, y su aprehensión hará que los ciudadanos de ambos países se encuentren más seguros.”
“HSI-Phoenix agradece la colaboración con HSI-CDMX y su alianza con el gobierno de México,” dijo el Agente Especial al Mando Scott Brown de HSI-Phoenix. “Estos esfuerzos conjuntos demuestran el compromiso de ambas naciones de no dejar que las fronteras se conviertan en muros en lo que se refiere a la confrontación del crimen organizado transnacional que impacta de forma negativa a nuestras dos naciones.”
Autoridades de Estados Unidos proporcionaron apoyo a la Fiscalía General de la República a través de la coordinación bajo la Fuerza de Tarea Conjunta Alfa, que fue establecida por el Procurador General Merrick B. Garland en junio de 2021 para utilizar los recursos de investigación y procuración del Departamento de Justicia, en alianza con el Departamento de Seguridad Nacional (DHS), y mejorar los esfuerzos de procuración de justicia de Estados Unidos contra los peligrosos grupos de traficantes de personas que operan en México, Guatemala, El Salvador, y Honduras. La Fuerza de Tarea se enfoca en trastocar y desmantelar las redes de contrabando y tráfico de personas que abusan, explotan, y ponen en peligro a migrantes, representan una amenaza para la seguridad nacional, o están inmiscuidos en el crimen organizado.
La Oficina del Fiscal Federal del Distrito de Arizona también ha procesado a otros cordinadores y operadores, dentro de EE.UU., con nexos a la organización de contrabando de personas, incluyendo a Benjamín Gallegos, Amalia González-Lara, Sergio Vázquez-Flores, Macario Ulises Barragán-Cisneros, Jaziel Tienda-Ibarra, Daniel García-Salgado, César Bermeo-Díaz, Isamar Chaparro-Vizcarra, y Oswaldo Tienda-Castro. Estos nueve individuos han sido condenados por los delitos de conspiración para transportar y albergar a personas extranjeras en situación irregular para fines de lucro. Otros supuestos dirigentes de esta organización han sido imputados por un gran jurado federal por cargos de contrabando de extranjeros incluyendo Enrique Villalobos-López y Ian Esteban Serrano. Para más información sobre casos particulares, consulte los números de casos que se muestran a continuación:
CR-21-1322-TUC-SHR-BGM (Gallegos)
CR-21-0613-TUC-RCC-JR (Gonzalez-Lara/Vazquez-Flores)
CR-21-2672-TUC-SHR-MSA (Barragan-Cisneros)
CR-21-1882-TUC-JAS-MSA (Tienda-Ibarra)
CR-21-1615-TUC-JAS-MSA (Garcia-Salgado)
CR-21-1245-TUC-JCH-BGM (Bermeo-Diaz)
CR-21-0869-TUC-RCC-BGM (Chaparro-Vizcarra/Serrano)
CR-21-1038-TUC-SHR-LCK (Tienda-Castro)
CR-21-1323-TUC-RM-LCK (Villalobos-Lopez)
HSI-Nogales coordinó las investigaciones en Estados Unidos, trabajando junto a la Agencia de Aduanas y Protección Fronteriza. El apoyo de HSI-CDMX, así como la ayuda de la Unidad de Investigaciones Criminales Transnacionales de HSI (TCIU)-México, fueron cruciales para la coordinación entre las agencias de procuración de justicia de Estados Unidos y México. El Departamento de Justicia, incluyendo la Oficina del Fiscal del Distrito de Arizona en Tucson, la Sección de Derechos Humanos y Enjuiciamientos Especiales de la División Criminal, y la Oficina de Asuntos Internacionales, proporcionaron apoyo significativo en esta materia.
En Ingles
Convicted Murderer Sentenced to 25 Years in Federal Prison for the Armed Robbery of a Carmel BankRead the Press Release
INDIANAPOLIS – Gary Tinsley, 47, of Indianapolis, was sentenced to 25 years in federal prison after being found guilty following a jury trial for armed bank robbery, brandishing a firearm in furtherance of a crime of violence, possession with intent to distribute marijuana, possession with intent to distribute methamphetamine, carrying a firearm during and in relation to a drug trafficking crime, and unlawful possession of a firearm by a convicted felon.
According to court documents and evidence presented a trial, on May 13, 2019, Tinsley and his accomplice entered the Stock Yards Bank & Trust in Carmel armed with a firearm. They provided a demand note to the teller announcing a robbery, zip tied the tellers, and stole approximately $67,000 in U.S. currency. Further investigation and evidence collected at the bank later identified Tinsley as one of the robbery suspects and the owner of a vehicle matching the description of the getaway car during the bank robbery.
On September 17, 2019, Tinsley exited his residence and left in his vehicle. Tinsley was stopped by police a short time later and was in possession of three loaded handguns, and five additional fully loaded magazines. Tinsley was also in possession of marijuana and methamphetamine at the time of the stop. Tinsley is prohibited from possessing a firearm due to a prior felony conviction for murder in Marion County, Indiana in January 1993.
A search warrant was executed at Tinsley’s residence and five additional firearms were seized, along with zip ties and clothing used in the robbery, and an additional amount of marijuana.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana and FBI Indianapolis Special Agent in Charge Herbert J. Stapleton made the announcement.
The Federal Bureau of Investigations Indiana Violent Crime Task Force investigated the case. The Carmel Police Department and the Indiana State Police also provided valuable assistance. The sentence was imposed by U.S. District Judge James P. Hanlon. As part of the sentence, Judge Hanlon ordered that the defendant be supervised by the U.S. Probation Office for 5 years following his release from federal prison. Tinsley was also ordered to pay $67,455.15 in restitution.
U.S. Attorney Myers thanked Assistant U.S. Attorneys Lawrence D. Hilton and Lindsay E. Karwoski who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime.
Convicted Felon Pleads Guilty to New Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Jason David Willis, 47, of Gasport, NY, pleaded guilty to receipt of child pornography following a prior conviction before Senior U.S. District Judge William M. Skretny. The charge carries a mandatory minimum penalty of 15 years in prison, a maximum of 40 years, and a $250,000 fine.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that in 2011, Willis was sentenced to serve 132 months in prison following his conviction on a federal child pornography charge. On May 18, 2021, an acquaintance of Willis’ brought his iPhone to the Niagara County Sheriff’s Office and stated that contained child pornography. The following day, on May 19, 2021, a U.S. Probation Officer searched the iPhone and observed two videos in the “recently deleted” folder on the phone that were produced by Willis on October 24 and October 28, 2020. Both videos depicted explicit images of a 17-year-old minor female. Further review of the iPhone revealed internet history for at least one website containing child pornography.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, the Niagara County Sheriff’s Office, under the direction of Sheriff Michael Felicetti, and the U.S. Probation Department, under the direction of Chief Probation Officer Timothy C. Englerth.
Sentencing is scheduled for June 15, 2022, at 9:00 a.m. before Judge Skretny.
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