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20 April 2022
Cameron Man Pleads Guilty to Bank Fraud SchemeRead the Press Release
WILMINGTON, N.C. A Cameron man pleaded guilty in federal court today to a charge of bank fraud arising out of a scheme to defraud financial institutions in the Eastern District of North Carolina and elsewhere.
According to court documents and information presented at the hearing, Edward Wheeler is a staff sergeant assigned to Pope Army Airfield. From January 2019 to September 2021, Wheeler defrauded multiple financial institutions by filing account fraud claims that were themselves fraudulent. To execute the scheme, Wheeler opened bank accounts and conducted financial transactions for his personal benefit. The transactions included: EFT and wire transfers to accounts Wheeler held with other banks; purchases of cryptocurrency; purchases of gold and other precious metals, and purchases of goods from Amazon and Ebay.
After the transactions were completed, Wheeler filed fraud claims with the banks wherein Wheeler falsely stated that the transactions were unauthorized, knowing that he had conducted the transactions himself and for his own benefit. Through the filing of the fraud claims, Wheeler induced the banks to refund his accounts with provisional credits in the amount of the claimed loss. After the accounts were refunded, Wheeler promptly transferred the funds to other accounts so that the money could not be recouped by the victim banks. Wheeler executed or attempted to execute the scheme against at least six financial institutions.
Wheeler pleaded guilty to bank fraud and faces a maximum penalty of 20 years in prison when sentenced during the August 2022 term of court.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement. The Defense Criminal Investigative Service and the United States Air Force Office of Special Investigations are investigating the case and Assistant U.S. Attorney Toby Lathan is prosecuting the case.
A copy of this press release is located on our website.
Calvert County Armed Career Criminal Sentenced to 15 Years in Federal Prison for Illegal Possession of a FirearmRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Earl Leroy Griffin, Jr., age 45, of Sunderland, Maryland, yesterday to 15 years in federal prison, followed by five years of supervised release, for being a felon in possession of a firearm. A federal jury convicted Griffin of that charge on December 17, 2021, which qualified him for armed career criminal status and enhanced sentencing guidelines.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Division; Calvert County Sheriff Mike Evans; and Calvert County State’s Attorney Robert Harvey.
According to the evidence presented at his four-day trial, on September 5, 2019, law enforcement executed a search warrant at Griffin’s residence and on his vehicle as part of a drug investigation. In Griffin’s locked vehicle, law enforcement recovered a stolen .40 caliber handgun, loaded with 14 rounds of ammunition; powder cocaine, crack cocaine, and marijuana; and three Maryland driver’s licenses bearing Griffin’s name and photo. The vehicle was registered to Griffin. When he was searched incident to his arrest, Griffin had the keys to his vehicle and $1,870 in cash in his pockets.
Griffin had four previous felony drug convictions and knew that as a result, he was prohibited from possessing a firearm and ammunition.
The jury acquitted Griffin on charges of possession with intent to distribute controlled substances and possession of a firearm in furtherance of drug trafficking.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Erek L. Barron commended the DEA, the Calvert County Sheriff’s Office, and the Calvert County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Barron thanked Assistant U.S. Attorneys Michael Morgan and Timothy F. Hagan, Jr., who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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California Parent Sentenced in College Admissions CaseRead the Press Release
BOSTON – The owner of a warehousing company for the shipping industry was sentenced today in federal court in Boston for his involvement in the college admissions case.
I-Hsin “Joey” Chen, 67, of Newport Beach, Calif., was sentenced by U.S. District Court Judge Nathaniel M. Gorton to nine weeks in prison, one year of supervised release, 100 hours of community service and was ordered to pay a fine in the amount of $75,000. On Dec. 15, 2021, Chen pleaded guilty to one count of wire fraud and honest services wire fraud.
Chen conspired with William “Rick” Singer and others to defraud ACT, Inc. by agreeing to cheat on his son’s ACT exam. Specifically, in early 2018, after hiring Singer as a college counselor for his son and agreeing to the testing scheme, Chen got approval for his son to receive multiple day testing accommodations through his son’s high school counselor. Such accommodations allowed for his son’s testing location to be moved to a testing center in West Hollywood that Singer “controlled” through bribes to Igor Dvorskiy, a corrupt test administrator. There, Dvorskiy allowed Mark Riddell, a corrupt test “proctor,” to secretly correct Chen’s son’s ACT exam answers to obtain a fraudulently inflated score. In exchange, Chen paid Singer $75,000 disguised as a business consulting fee paid by Chen’s company to Singer’s for-profit business, The Key.
On April 8, 2022, Riddell was sentenced to four months in prison and two years of supervised release. Riddell was also ordered to pay a $1,000 fine and forfeit $239,449. Singer and Dvorskiy previously pleaded guilty and are awaiting sentencing.
Chen is the 35th parent to be sentenced in the college admissions case.
Case information, including the status of each defendant, is available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Terry Harris, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Eastern Regional Office, made the announcement today. Assistant U.S. Attorneys Stephen E. Frank, Kristen A. Kearney, Ian J. Stearns and Leslie Wright of Rollins’ Securities, Financial & Cyber Fraud Unit prosecuted the case.
Broward Wildlife Dealer and Company Sentenced in Scheme to Harvest and Sell Florida TurtlesRead the Press Release
Miami, Florida – A federal district judge in Miami has sentenced Michael Van Nostrand, 55, of Davie, Florida and Strictly Reptiles, Inc., a company also located in Davie, for their roles in a scheme to unlawfully enrich themselves and others by smuggling illegally-harvested Florida turtles out of the United States and into China, Japan, and other places.
According to court records, from approximately April 2017 through April 2019 the defendants and their co-conspirators established a network of “collectors” to capture specimens of various wild fresh-water turtles within the State of Florida. They then marketed and sold the turtles as “captive bred” to both domestic and international customers to provide the appearance the turtles were legally obtained. In text messages, Van Nostrand repeatedly exhorted his suppliers to acquire more of the principal species: Florida three-stripe mud turtles (Kinosternon baurii) for his company. To complete the scheme and evade detection, the coconspirators would falsely mark required federal export declarations with a code denoting the turtles were captive bred, rather than wild caught.
An investigation conducted by the Florida Fish & Wildlife Conservation Commission and the U.S. Fish & Wildlife Service documented the illegal acquisition and sale of approximately 3,500 of Florida fresh-water turtles.
Michael Van Nostrand was sentenced to a term of imprisonment of seven months, followed by a term of supervised release of three years, the first year of which will be served in home confinement. In addition, the Court ordered Van Nostrand to immediately pay a $100,000 fine to the Lacey Act Reward Fund and restricted Van Nostrand’s freedom to engage in the wildlife trade during the period of supervised release. During the sentencing hearing, the Court cited Van Nostrand’s compromised health (which was the subject of several filings and courtroom arguments) as the sole reason for not imposing a higher sentence. Strictly Reptiles, Inc. was sentenced to a term of five years’ probation, a fine of $150,000 also payable immediately to the Lacey Act Reward Fund, and oversight by an independent monitor/auditor, to be selected and appointed with the court’s approval.
The Lacey Act Reward Fund is a Congressionally authorized fund available to pay for the care, treatment, and rehabilitation of wildlife pending their disposition at the conclusion of civil and criminal matters and to compensate witnesses and cooperators in criminal investigations.
In pleadings and courtroom statements, the government noted that significant pressure is being placed on native species – especially turtles and tortoises - throughout the United States to satisfy the black-market pet trade, and that the United States is facing the specter of some species becoming extinct in the wild because of illegal poaching activities. The State of Florida has restricted the commercialization of wild-caught turtles since 2009 as part of its conservation effort.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida and David Pharo, Acting Special Agent in Charge, U.S. Fish & Wildlife Service, Office of Law Enforcement, SAC Office Atlanta, GA announced the sentence imposed by U.S. District Judge Kathleen M. Williams.
The U.S. Fish & Wildlife Service investigated this case, with the cooperation of the Florida Fish & Wildlife Conservation Commission. Assistant U.S. Attorney Thomas Watts-FitzGerald is prosecuting the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-20495-Williams.
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Broome County Man Pleads Guilty to Failing to Disclose His Email Address to the Sex Offender RegistryRead the Press Release
SYRACUSE, NEW YORK – Thomas E. Cargill, age 56, of Endicott, New York, pled guilty today in federal court in Binghamton to one felony count of failing to register and update his registration as a sex offender after it was discovered that he had an e-mail address that he had not disclosed to the New York State Division of Criminal Justice Services as required by the Sex Offender Registration and Notification Act (“SORNA”), announced United States Attorney Carla B. Freedman and David L. McNulty, United States Marshal for the Northern District of New York.
In pleading guilty, Cargill admitted that from November 5, 2016, through November 13, 2021, he failed to register a Google email address he created on September 24, 2016, as required by SORNA.
Cargill was required to register as a sex offender because of his federal conviction in 2008 for possession of child pornography.
In addition to his plea to failure to register and update a registration as a sex offender, Cargill also admitted today that this conduct violated the terms of supervised release previously imposed after his 2008 conviction.
Sentencing is scheduled for August 24, 2022 before Senior United States District Thomas J. McAvoy. In addition to any punishment for violating the terms of his supervised release, Cargill faces a maximum sentence of 10 years in prison, a fine of up to $250,000.00, and a term of supervised release of at least 5 years and up to life on the sex offender registration offense. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the United States Marshals Service and is being prosecuted by Assistant United States Attorney Geoffrey J. L. Brown as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc
Bogalusa Man Sentenced After Pleading Guilty to Violating the Federal Controlled Substances and Federal Gun Control ActsRead the Press Release
NEW ORLEANS, LOUISIANA – JA’VONTAY OWENS, age 28, a resident of Bogalusa, Louisiana, was sentenced by U.S. District Judge Jane Triche Milazzo, announced U.S. Attorney Duane A. Evans. The Court imposed concurrent seventy-two (72) month sentences as to Counts 1-2 and a consecutive sixty (60) month sentence as to Count 3 followed by four (4) years of supervised release. The Court ordered OWENS to pay a total of $300 in mandatory special assessment fees. OWENS plead guilty to a three-count indictment charging him with Possession with Intent to Distribute Five (5) Grams or More of Methamphetamine, a Quantity of Cocaine Base (“Crack”), and a Quantity of Heroin, in violation of Title 21, United States Code, Sections 841(a)(1), (b)(1)(B), and (b)(1)(C) (Count 1), Felon in Possession of a Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2) (Count 2), and Possession of a Firearm in Furtherance of a Drug Trafficking Crime, in violation of Title 18, United States Code, Section 924(c)(1)(A) (Count 3).
According to court documents, on September 26, 2020, Washington Parish Sheriff’s Office Deputies executed a traffic stop on a vehicle driven by OWENS on Highway 21 in Bogalusa, Louisiana. Deputies immediately smelled marijuana on OWENS and placed him under arrest. While searching OWENS pursuant to his arrest, deputies retrieved approximately twenty-seven (27) grams of methamphetamine from OWENS’s underwear. As the deputies searched OWENS’s vehicle, they located approximately five (5) grams of cocaine base and less than one (1) gram of heroin under the driver’s seat of the vehicle. In the rear driver side door of the vehicle, deputies located a loaded black Glock, Model 19, nine millimeter, semi-automatic pistol.
OWENS is a previously convicted felon and was aware of his felon status prior to possession of the firearm.
This case was investigated by the federal Bureau of Alcohol, Tobacco, Firearms and Explosives and the Washington Parish Sheriff’s Office. The prosecution was handled by Assistant United States Attorney André Jones.
Billings man admits trafficking crime after law enforcement seize 10 pounds of meth from vehicleRead the Press Release
BILLINGS — A Billings man suspected of breaking into the Drug Enforcement Administration’s garage and entering his impounded vehicle from which agents had seized approximately 10 pounds of methamphetamine admitted to a trafficking crime today, U.S. Attorney Leif M. Johnson said.
Anthony Jacob Johnson, 43, pleaded guilty to possession with intent to distribute meth. Johnson faces a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. A sentencing date will be set before U.S. District Judge Dana L. Christensen. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Johnson was detained pending further proceedings.
The government alleged in court documents that in January 2021, Montana Division of Criminal Investigation agents began investigating co-defendant, Stacie Thein, for meth distribution. Thein has pleaded not guilty to charges. The investigation led to Johnson as Thein’s source. Agents determined that Johnson traveled to Colorado in March and again in April 2021. Upon Johnson’s return to Montana, a Montana Highway Patrol trooper conducted a traffic stop of Johnson’s vehicle. A search warrant was served on the vehicle, and agents located 10 vacuumed sealed bricks of meth. The bricks totaled approximately 10.39 pounds of meth, which is the equivalent of about 37,653 doses. The next day, the DEA discovered a large hole in a garage door at its facility. Evidence showed that Johnson had gone to the facility the night before, cut a large hole in the garage and entered his seized vehicle while it was in DEA’s custody. Johnson admitted to agents that he was distributing large amounts of meth he obtained from a source in Denver, Colorado.
Assistant U.S. Attorney Julie R. Patten is prosecuting the case, which was investigated by the DEA and Montana Division of Criminal Investigation.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Bennington County Man Faces Federal Firearms ChargesRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Logan Foster, 30, of Arlington, Vermont, has been indicted and arrested on two federal firearms offenses involving the alleged unlawful purchase and possession of a 9mm pistol in January 2021. On April 19, 2022, Foster appeared in U.S. District Court in Burlington for an arraignment and pleaded not guilty to the charges. U.S. Magistrate Judge Kevin J. Doyle granted the government’s motion for detention and ordered Foster detained until trial.
The indictment contains two counts. The first count alleges that on January 22, 2021, Foster filled out an ATF Form 4473 to purchase a SCCY 9mm pistol from a firearms dealer and falsely stated both that he was the actual purchaser of the firearm and that he was not an unlawful user of controlled substances. The second count alleges Foster then possessed this firearm while being an unlawful user of controlled substances. According to court records, the government also alleges that Foster exchanged the firearm for drugs with a Springfield, Massachusetts area drug dealer. The firearm was recovered from a crime scene in Holyoke, Massachusetts approximately six months after Foster’s transfer of it.
The indictment is an accusation only and that the defendant is presumed innocent until and unless proven guilty. If convicted, Foster faces a maximum sentence of ten years imprisonment and three years of supervised release, which would follow any sentence of imprisonment. The actual sentence will be determined with reference to the Federal Sentencing Guidelines.
This case is being investigated by the Department of Homeland Security (Homeland Security Investigations), the Bennington Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The United States is represented by Assistant U.S. Attorney Joseph Perella. Foster is represented by Peter Langrock, Esq.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. https://www.justice.gov/psn
Baden Man with Prior Conviction for Child Porn Possession Indicted AgainRead the Press Release
PITTSBURGH - A resident of Baden, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of possession of child pornography, United States Attorney Cindy K. Chung announced today.
The one-count Indictment named Andrew Kincaid, age 34, as the sole defendant.
According to U.S. Probation Officers, on or about March 16, 2021, a federal probation compliance inspection discovered explicit content on a computer in violation of federal law and the conditions of Kincaid’s supervised release. In 2009, Kincaid pleaded guilty to one count of possession of materials depicting the sexual exploitation of a minor and was sentenced to 36 months in prison and a term of supervised release of 10 years. Since his release from federal prison, Kinkaid has violated his terms of release on at least four occasions by engaging in child pornography-related conduct.
The law provides for a maximum total sentence of not more than 20 years in prison, a fine, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brian W. Castello is prosecuting this case on behalf of the government.
Following the inspection by U.S. Probation, Homeland Security Investigations conducted the investigation leading to the Indictment in this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States 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.justice.gov/psc .
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Albuquerque investment broker pleads guilty to mail and wire fraud and failure to file tax returnsRead the Press Release
ALBUQUERQUE, N.M. – Richard Kessler, 50, of Albuquerque, pleaded guilty on April 18 in federal court to one count each of mail fraud and wire fraud and four counts of failure to file tax returns.
Kessler was a financial advisor and investment broker who did business as Guardian Group Investments, LLC. According to the plea agreement and other court records, Kessler used his position to induce several individuals to entrust their retirement savings to him. During the period from February to August 2016, Kessler fraudulently convinced four victims to entrust him with a total of $121,267. Although Kessler had represented that he would place that money in retirement accounts for the benefit of those individuals, Kessler instead deposited their funds in his business bank account, which is specifically prohibited by New Mexico securities regulations. Kessler subsequently converted the victims’ retirement funds to his own purposes. Kessler used the fraudulently obtained money to pay for his personal expenditures and to make payments to earlier victims of his scheme. In his plea agreement, Kessler admitted that he devised and executed this scheme with the intent to defraud the investors.
Kessler failed to file federal income tax returns for tax years 2014 through 2017. Kessler’s failure to file tax returns and pay federal income taxes resulted in an aggregate tax liability of $82,627 for those four years, not including any penalties or interest.
Kessler faces up to 44 years in prison. A sentencing date has not been scheduled.
IRS Criminal Investigation investigated this case. Assistant U.S. Attorney Timothy S. Vasquez is prosecuting the case.
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Arapahoe Man Charged with Kidnapping and AssaultRead the Press Release
United States Attorney Bob Murray announced today that ELVIN WAYNE MCCLAIN, 30, of Arapahoe, Wyoming, was charged with kidnapping, assault with a dangerous weapon with intent to do bodily harm and assault resulting in serious bodily injury. McClain appeared for an arraignment hearing on April 14, 2022, before Federal District Court Magistrate Judge Kelly H. Rankin and pleaded not guilty to the charges. A trial has been set for June 21, 2022.
McClain faces up to life imprisonment, five years of supervised release, up to a $750,000 fine, and a $300 special assessment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This crime is being investigated by the Federal Bureau of Investigation. Assistant United States Attorney Michael J. Elmore is prosecuting the case.
An indictment merely contains allegations, and every defendant is presumed innocent unless and until proven guilty.
Case No. 22-CR-00013-NDF
8 defendants from Ohio, Nevada, California charged in methamphetamine conspiracyRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged eight individuals with conspiring to distribute 500 grams or more of methamphetamine, a crime punishable by at least 10 years and up to life in prison.
It is alleged the defendants shipped multiple pounds of methamphetamine to Columbus from California and Las Vegas via the United States Postal Service.
To date, the government has seized at least 50 kilograms, or approximately 110 pounds, of methamphetamine as part of this case. The quantity of narcotics seized has an approximate street value of $1.5 million.
Law enforcement officials have also seized three firearms, fentanyl and marijuana.
The indictment was returned on April 12 and the case was unsealed today.
Those charged include:
Name
Age
Residence
Wesley Durell Johnson
38
Las Vegas, Nevada
Deysuan Shalee Wells
39
Columbus, Ohio
Tiauna Christine Castro
32
Las Vegas, Nevada
Mohamed Ahmed Hussein
34
Moreno Valley, California
Ronnie Bert White
63
Columbus, Ohio
Autumn K. Jordan
40
Columbus, Ohio
Cierra Sade Stratton
33
Columbus, Ohio
Terrell D. Harris
59
Columbus, Ohio
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Lesley Allison, Inspector in Charge, United States Postal Inspection Service, Pittsburgh Division, announced the charges. Assistant United States Attorney Timothy D. Prichard is representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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11 Defendants Plead Guilty in $300 Million Healthcare FraudRead the Press Release
Just two months after being charged, all 11 defendants implicated in the $300 million Spectrum/Reliable healthcare fraud have pleaded guilty, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Ten defendants, including two medical doctors, were indicted February 9. An eleventh defendant was charged on March 16.
Six of the original ten defendants – Laredo-based internal medicine doctor Eduardo Canova, family medicine doctor Jose Maldonado, nurse practitioner Keith Wichinski, Reliable Labs cofounder Abraham Phillips, marketing firm owner Juan David Rojas, and marketing employee Laura Ortiz – filed plea papers on February 11, just two days after being indicted. The final defendant – Reliable Labs cofounder Biby Kurian – filed plea papers on April 6 and entered her plea on April 13.
“The swift resolution of this case is a testament to both our office and to the investigative agencies that worked diligently to ensure our case was airtight,” said U.S. Attorney Chad Meacham. “We cannot allow physicians’ judgement to be clouded by financial considerations.”
“This proactive investigation identified an illegal kickback conspiracy that resulted in substantial evidence and a guilty plea from each defendant,” said Dallas FBI Special Agent in Charge Matthew J. DeSarno. “I commend our partners and the Northern District of Texas for their meticulous work in unraveling the schemes perpetrated by these defendants, and for their work to protect American taxpayers and the integrity of our healthcare system.”
According to court documents, the founders of several lab companies, including Unified Laboratory Services, Spectrum Diagnostic Laboratory, and Reliable Labs LLC, paid kickbacks to induce medical professionals to order medically unnecessary lab tests, which they then billed to Medicare and other federal healthcare programs.
The medical professionals -- including Dr. Canova, Dr. Maldonado, and Mr. Wichinski – accepted the bribes and ordered millions of dollars’ worth of tests.
Meanwhile, Unified, Spectrum, and Reliable disguised the kickbacks as legitimate business transactions, including as medical advisor agreement payments, salary offsets, lease payments, and marketing commissions.
The labs, through marketers, paid doctors hundreds of thousands of dollars for “advisory services” which were never performed in return for lab test referrals. They also paid portions of the doctors’ staff’s salaries and a portion of their office leases, contingent on the number of lab tests they referred each month. In some instances, lab marketers even made direct payments to the provider’s spouse. (When the labs threatened one provider that payments would cease if he didn’t refer more tests, he immediately increased his lab referrals, averaging approximately 20 to 30 referrals per day.)
Knowing they could disguise additional kickbacks using a provider-ownership model, the founder of Spectrum and Unified, Jeffrey Madison, convinced the co-founders of Reliable to convert Reliable into a physician-owned lab. Reliable offered physicians ownership opportunities only if those physicians referred an adequate number of lab tests. In some cases, they made advance disbursement payment to physicians in an effort to appease the physician and ensure he would not send samples to other labs.
As a result of these kickbacks, laboratories controlled by the defendants were able to submit more than $300 million in billing to federal government healthcare programs.
In plea papers, Dr. Maldonado admitted he received more than $400,000 in kickbacks for ordering more than $4 million worth of lab tests; Dr. Canova admitted he received more than $300,000 in kickbacks for ordering more than $12 million worth of lab tests.
Defendants’ pleas are as follows:
• Jeffrey Paul Madison, founder of Unified Laboratory Services and Spectrum Diagnostic Laboratory – conspiracy to pay and receive healthcare kickbacks and a substantive count of paying and receiving healthcare kickbacks (two counts)
• Mark Christopher Boggess, chief operating officer for Spectrum and Unified – misprison (concealment) of a felony
• Biby Ancy Kurian, co-founder of Reliable Labs, LLC – conspiracy to pay kickbacks
• Abraham Phillips, co-founder of Reliable Labs, LLC – conspiracy to pay kickbacks
• Dr. Jose Roel Maldonado, family medicine doctor based in Laredo – conspiracy to solicit and receive illegal kickbacks
• Dr. Eduardo Carlos Canova, internal medicine specialist based in Laredo – conspiracy to solicit and receive illegal kickbacks
• Keith Allen Wichinski, board-certified nurse practitioner based in San Antonio – conspiracy to solicit or receive kickbacks
• David Michael Lizcano, owner of DCLH, a marketing firm engaged by Unified, Spectrum, and Reliable – conspiracy to pay and receive healthcare kickbacks and a substantive count of paying and receiving healthcare kickbacks (two counts)
• Laura Ortiz, sister of David Lizcano and employee at his marketing firm – conspiracy to pay and receive healthcare kickbacks
• Juan David Rojas, owner of Rojas & Associates, another marketing firm engaged by Unified, Spectrum, and Reliable – conspiracy to pay and receive healthcare kickbacks
• Sherman Kennerson, investor in Unified (charged via criminal information) – conspiracy to pay kickbacks
Under the applicable statutes, Mr. Madison and Mr. Lizcano face up to 15 years each in federal prison. Mr. Kennerson, Ms. Ortiz, Mr. Phillips, Ms. Kurian, Dr. Maldonado, Dr. Canova, Mr. Wichinski, and Mr. Rojas face up to five years; Mr. Boggess faces up to three years.
“The expeditious resolution of this matter is a testament to the thorough investigation and valuable collaboration between investigative partners and prosecutors,” said Miranda L. Bennett, Special Agent in Charge for the Office of Inspector General of the U.S. Health and Human Services. “We will continue working with our partners to protect federal health care programs and the beneficiaries who depend on these programs for treatment and care.”
“As the investigative arm of the DoD Office of Inspector General, the Defense Criminal Investigative Service (DCIS) and our colleagues work hard to hold accountable those who undermine Federal health care programs such as TRICARE, “said Acting Special Agent in Charge Gregory P. Shilling of the DCIS Southwest Field Office. "Safeguarding TRICARE not only protects our warfighters, their families, and retirees, but it also preserves valuable taxpayer resources."
The Federal Bureau of Investigation’s Dallas Field Office – Fort Worth Resident Agency conducted the investigation with the assistance of the U.S. Department of Health and Human Services’ Office of Investigations, the Defense Criminal Investigative Service (DCIS), and the Veterans Affairs’ Office of Inspector General. Assistant U.S. Attorney P.J. Meitl is prosecuting the case.
19 April 2022
“Diamond Enterprise” Boss Sentenced to 51 Months in Prison in Connection with Criminal Acts Including Racketeering, Threats, Money Laundering, Fraud, and GamblingRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that ABDURAMAN ISENI, a/k/a “Diamond” was sentenced to 51 months in prison, based on his leadership of a multi-year racketeering enterprise from in or about 2017 through 2020, and criminal offenses related to threats, money laundering, bank fraud, false statements to a bank, and illegal gambling. ISENI committed these offenses despite two prior federal convictions in the Southern District of New York for racketeering and money laundering. ISENI previously pled guilty before U.S. District Judge Andrew L. Carter, who imposed today’s sentence.
U.S. Attorney Damian Williams said: “Serving more than a decade in federal prison should have demonstrated to Abduraman Iseni the consequences of serious crimes. But instead, after his release he went back to racketeering, threats, money laundering, and other offenses. Today’s sentence should send a message that this Office will make every effort to hold dangerous, recidivist felons to account.”
According to the Indictment, public court filings, and statements made in court:
ISENI oversaw a racketeering enterprise referred to in the Indictment as the “Diamond Enterprise”. The Diamond Enterprise was an organized criminal group operating under ISENI’s direction. ISENI offered his protection, connections, and substantial influence in the criminal underworld to other members of the racketeering enterprise, in exchange for a share of their illegal profits. The Diamond Enterprise thrived in part on the revenues generated by a network of illegal gambling parlors – “Sports Café,” “Friendly Café,” and “Oasis Café” – located throughout Brooklyn, that hosted underground poker games and hosted illegal sports books. Some of these revenues, in turn, were laundered through a series of bank accounts in an effort to conceal and facilitate the Enterprise’s continued operations.
In addition to the Enterprise’s operations, ISENI separately admitted to threatening a victim with physical violence, including an incident where he held a fork close to a co-defendant’s eye and threatened to jab it in, and a host of additional crimes, including money laundering, bank fraud conspiracy, and making false statements to a bank for the purpose of inducing the bank to release funds to which ISENI was not entitled.
Prior to this more recent conduct, Iseni was twice convicted of federal offenses in the Southern District of New York – a 1996 conviction for racketeering and a 2012 conviction for money laundering – and served over a decade in federal prison.
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In addition to his prison term, ISENI, 56, of Staten Island, was sentenced to three years of supervised release. He was also ordered to forfeit $349,000 and to pay a $5,000 fine.
Mr. Williams praised the outstanding work of FBI New York’s Balkans and Middle East Organized Crime Squad, the FBI’s Newark Office, the United States Customs and Border Protection, the Department of State Diplomatic Security Service, the Small Business Administration Office of the Inspector General, the Social Security Administration Office of the Inspector General, the New York State Liquor Authority, and the New York City Police Department, for their investigative efforts and ongoing support and assistance with the case.
The prosecution of this case is being overseen by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Samuel L. Raymond and David R. Felton are in charge of the case.
“Bored Dude” indicted for attempting to sexually assault nine-year-oldRead the Press Release
McALLEN, Texas – A 19-year-old man residing in San Juan has been indicted on charges of attempted coercion and enticement of a child, announced U.S. Attorney Jennifer B. Lowery.
Originally charged by criminal complaint, a federal grand jury returned the single-count indictment against Jorge Eduardo Naranjo today. He is expected to appear before a U.S. magistrate judge on the indictment in the near future.
According to the complaint, Naranjo began communicating via Kik with someone he thought had a nine-year-old child. Naranjo operated multiple accounts on the site with the username “Bored Dude,” distributed files of child pornography and requested to meet the individual’s “little,” according to the charges.
Naranjo allegedly exchanged multiple messages clarifying his intent to engage in criminal sexual activity with the child. Naranjo traveled to a McAllen hotel and planned to do so, according to the charges. Law enforcement took him immediately into custody upon his arrival.
At his detention hearing following the filing of the criminal complaint, Naranjo was found to be a danger to community and ordered him into custody pending future criminal proceedings.
The FBI conducted the investigation.
Assistant U.S. Attorney Devin V. Walker is prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Yankton Man Sentenced for Possession of Child PornographyRead the Press Release
United States Attorney Dennis R. Holmes announced that a Yankton, South Dakota, man convicted at a jury trial of Possession of Child Pornography was sentenced on April 18, 2022, by U.S. District Judge Karen E. Schreier.
Matthew Carter, age 31, was sentenced to 180 months in federal prison, followed by five years of supervised release, $13,000 in restitution, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Carter was indicted by a federal grand jury on May 4, 2021.
The conviction stemmed from an incident in January 2021, when Carter was in jail and called his dad and directed him to retrieve some property that Carter hid above the ceiling tile in his bathroom. An officer listening to the jail call went to Carter’s residence and found a computer hard drive above the ceiling tile. Forensic examination of the hard drive revealed 60 video files containing child pornography.
This case was investigated the Yankton Police Department, the South Dakota Division of Criminal Investigation, and Homeland Security Investigations. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Carter was immediately turned over to the custody of the U.S. Marshals Service.
West Tennessee Man Sentenced to 15 Years for Gun CrimeRead the Press Release
Memphis, TN- Oscar Goodwin, 35, has been sentenced to 180 months in federal prison for being a felon in possession of a firearm. Joseph C. Murphy Jr., United States Attorney, announced the sentence today.
According to information presented in court, on July 10, 2019, Tennessee Bureau of Investigation (TBI) agents discovered a Zastavia AK 7.62 x 39 short rifle during the search of a residence in Memphis regarding an ongoing investigation of drive-by shootings in Tipton and Fayette counties. The rifle was discovered in a black/white Air Jordan backpack in the front room of the residence. A male subject at the residence, later identified as Oscar Goodwin, Jr., advised being the owner of the rifle.
Fired casings from the shooting scenes appear to match the weapon found. Evidence proved that the defendant was involved in the Tipton and Fayette County shootings and possessed the AK rifle.
Further investigation revealed that Goodwin had been convicted of multiple violent felonies and was on probation for aggravated burglary out of Fayette County at the time of this crime. As a result of his felony convictions, he is prohibited by federal law from possessing firearms and ammunition.
On April 13, 2022, United States District Judge Mark S. Norris sentenced Goodwin to 180 months in federal prison to be followed by three years’ supervised release. There is no parole in the federal system.
The Tennessee Bureau of Investigation and the Shelby County Sheriff’s Office investigated this case.
Special Assistant United States Attorney Sean Hord prosecuted this case on behalf of the government. SAUSA Hord is currently assigned from the 25th Judicial District Attorney’s Office.
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Waterbury Man Pleads Guilty to Federal Gun ChargeRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that CARLTON FOX, 37, of Waterbury, pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to possession of firearm in furtherance of a drug trafficking crime.
According to court documents and statements made in court, in June 2021, Waterbury Police made two controlled purchases of heroin and one controlled purchase of fentanyl from Fox. On June 18, 2021, investigators conducted a court-authorized search of a Waterbury hotel room where Fox was staying and seized a loaded .22 caliber handgun; distribution quantities of heroin, fentanyl and crack cocaine; items used to process and package narcotics for street sale; and $3,980 in cash.
At sentencing, which is not scheduled, Fox faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of life.
Fox is detained pending sentencing.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Waterbury Police Department. The case is being prosecuted by Assistant U.S. Attorney Marc H. Silverman.
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.
Union County Man Admits Committing Wire Fraud and Making False Reports and Statements to and for HUDRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man today admitted committing wire fraud and making false reports and statements to and for the U.S. Department of Housing and Urban Development (HUD), U.S. Attorney Philip R. Sellinger announced.
Shenandoah Adams Sr., aka “Shane Adams Sr.,” 56, of New Providence, New Jersey, pleaded guilty before U.S. District Judge Esther Salas to one count of an indictment charging him with wire fraud and an information charging him with one count of making false reports and statements to and for HUD.
According to documents filed in this case and statements made in court:
Adams was a principal of Adams Property Management and Investment Group LLC (Adams Property Management), which purchased property on Hilton Street in East Orange, New Jersey in 2014. The following year, Adams arranged for a close associate to obtain a $153,562 loan from a mortgage lender to purchase the Hilton Street property from Adams Property Management. After the associate’s mortgage payments on the Hilton Street property became substantially in arrears, Adams arranged for the associate to sell the property to another associate for $255,000. The closing on that sale commenced on May 31, 2016; as of that date, the total amount to pay off the first associate’s mortgage was $210,565, including interest and fees. On June 1, 2016, Adams and the first associate had a telephone conversation with the mortgage servicer for the associate’s lender, during which Adams made false and fraudulent statements to induce the lender to reduce the payoff amount. The lender agreed to reduce the associate’s payoff amount to $190,000. At Adams’s direction, the associate cashed the check for the amount of the reduction – $20,665 – and delivered the cash proceeds to Adams.
Adams also was a principal of VH Electrical and Plumbing LLC. On March 11, 2015, Adams, on behalf of VH, entered into a contract with the Orange Public Library to replace the Library’s HVAC/chiller unit for $49,000. The project was funded by a HUD Community Development Block Grant to the library and Orange. Adams sent a library representative documentation to give the false impression that Adams was taking steps to order a replacement chiller. Adams received $40,000 from the library, but did not replace the library’s chiller.
The charge of wire fraud carries a maximum potential penalty of 20 years in prison and a maximum $250,000 fine. The charge of making false reports and statements to HUD carries a maximum potential penalty of one year in prison and a maximum potential fine of $100,000. Sentencing is scheduled for Sept. 29, 2022.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Cari Fais, Chief of the Opioid Abuse Prevention and Enforcement Unit, and Assistant U.S. Attorneys J Fortier Imbert and Sara F. Merin of the U.S. Attorney’s Office’s Special Prosecutions Division.
Two Charged with Possession with Intent to Distribute a Controlled SubstanceRead the Press Release
United States Attorney Dennis R. Holmes announced that a Fort Pierre, South Dakota, woman and an Eagle Butte, South Dakota, man have been indicted by a federal grand jury for Possession with Intent to Distribute a Controlled Substance.
Regina Maynard, age 30, and Larry Chavez, age 25, were indicted on April 12, 2022. Maynard appeared before U.S. Magistrate Judge Mark A. Moreno on April 14, 2022, and Chavez appeared before U.S. Magistrate Judge Mark A. Moreno on April 15, 2022. Both pled not guilty to the Indictment.
The maximum penalty upon conviction is a minimum of 10 years and up to life in custody and/or a $10,000,000 fine, a minimum of five years and up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The indictment alleges that on February 7, 2022, in Stanley County, South Dakota, Maynard and Chavez knowingly and intentionally possessed with the intent to distribute 50 grams or more of methamphetamine.
The charge is merely an accusation and Maynard and Chavez are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force, the South Dakota Division of Criminal Investigation, and the Stanley County Sheriff’s Office. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Chavez was released on conditions and Maynard was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Twice-Convicted Felon Sentenced for Possession of Firearms and NarcoticsRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to 5 years in prison for illegally possessing a firearm after being convicted of a felony.
According to court documents, on October 4, 2019, an officer with the Henrico Police department conducted a traffic stop of a vehicle driven by Quan Nguyen, 29, at a motel known as a hotspot for narcotics trafficking. After a trained narcotics K-9 alerted to the odor of narcotics on Nguyen’s vehicle, officers searched the car and found a loaded semi-automatic pistol and cocaine. Officers also obtained a search warrant for Nguyen’s room at the motel. A search of Nguyen’s hotel room turned up cocaine, a digital scale, packaging materials, marijuana, and another loaded semi-automatic pistol. Nguyen’s fingerprint matched a fingerprint recovered from the loaded pistol in the hotel room.
Nguyen was previously sentenced in 2016 to 28 months’ imprisonment by the same Court following his conviction for possession of a firearm by a convicted felon.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Charlie J. Patterson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division, made the announcement after sentencing by Senior U.S. District Judge John A. Gibney, Jr.
Assistant U.S. Attorneys Kenneth R. Simon, Jr. and Stephen W. Miller prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:20-cr-124.
Toledo Man Sentenced to Nine Years in Prison After Pleading Guilty to Distributing Fentanyl SubstanceRead the Press Release
Acting U.S. Attorney Michelle M. Baeppler announced that Bryan Mays, 33, of Toledo, was sentenced on Thursday, April 14, 2022, by U.S. Judge Jeffrey J. Helmick to nine years in prison and three years of supervised release after Mays pleaded guilty to distributing fentanyl.
“Fentanyl continues to plague our communities and steal our beloved ones at an alarming rate,” said Acting U.S. Attorney Michelle M. Baeppler. “Anyone who chooses to contribute to this epidemic by dealing deadly narcotics can expect to find themselves in prison.”
“Drug trafficking cases remain one of the highest priorities of the FBI,” said Cleveland FBI Special Agent in Charge Eric B. Smith. “Whether one individual or a network of criminals, this case reflects the common goal and valuable partnership the FBI holds with law enforcement agencies to mitigate the distribution of illegal drugs and make our communities safer.”
“This conviction and sentencing should serve notice to individuals who choose to sell this poison on Toledo’s streets that we will use every available resource and partnership to bring these folks to justice,” said Toledo Police Chief George Kral. “I value our local, county, and federal partners and look forward to continuing our mission to keep this city safe.”
According to court documents, Toledo Police Officers began an investigation into the death of an individual from a drug overdose on December 30, 2018. As a result of the investigation, police determined that Defendant Bryan Mays distributed a substance containing fentanyl to the individual.
This case was investigated by the Toledo Police Department and the FBI. This case was prosecuted by Assistant U.S. Attorney Michael J. Freeman and Robert N. Melching.
Three Sioux Falls Men Charged for Roles in Bank Fraud & Money Laundering ConspiraciesRead the Press Release
United States Attorney Dennis R. Holmes announced today that three men from Sioux Falls, South Dakota, have been indicted by a federal grand jury for their roles in bank fraud and money laundering conspiracies.
Antyon Hamilton Hogan Jr., age 24, Marvin Antuon Williams, age 31, and Giovanni Hamilton, age 23, were indicted on April 5, 2022. Each initially appeared before U.S. Magistrate Judge Veronica L. Duffy on April 7, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 30 years in custody for Bank Fraud Conspiracy, 20 years in custody for Money Laundering Conspiracy, and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution and forfeiture may also be ordered.
According to the Indictment, in 2020 and continuing until April 2022, Hogan, Williams, and Hamilton conspired and agreed with others to knowingly conduct and attempt to conduct bank fraud and financial transactions affecting interstate and foreign commerce. Specifically, the three co-conspirators knowingly conspired to execute and attempt to execute a scheme and artifice to defraud financial institutions throughout the Sioux Falls area and elsewhere, including, but not limited to, First Premier Bank, Wells Fargo Bank, Levo Credit Union, First National Bank, First Bank and Trust, U.S. Bank, American Bank and Trust, American State Bank, Navy Federal Credit Union, Pima Federal Credit Union, JP Morgan Chase, and Security National Bank of South Dakota. These defendants, as alleged, schemed to obtain money, funds, and other property owned by, and under the custody and control of, the aforementioned financial institutions, by means of false or fraudulent pretenses, representations, and promises.
After obtaining funds through fraud, the three co-conspirators and others engaged in depositing, transferring, wiring, and withdrawing currency and funds at financial institutions, which involved the proceeds of specified unlawful activity – that is, the bank fraud identified above. These defendants knew that the transactions were designed in whole or in part to conceal and disguise the nature, location, source, ownership, or control of the proceeds of the fraud scheme. While conducting and attempting to conduct such financial transactions, it is alleged that Hogan, Williams, and Hamilton knew that the property involved in the financial transactions represented the proceeds of some form of unlawful activity.
The charges are merely accusations, and Hogan, Williams, and Hamilton are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Internal Revenue Service Criminal Investigation, Homeland Security Investigations, Sioux Falls Police Department, U.S. Postal Service, and the South Dakota Highway Patrol. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Hogan and Williams were remanded to the custody of the U.S. Marshals Service pending further proceedings and trial. Hamilton was released on bond. A trial date of June 14, 2022, has been set.
Texas man charged for smuggling 107 aliens in trailerRead the Press Release
LAREDO, Texas – A 29-year-old resident of Elkhart has been indicted for conspiring to transport over 100 non-U.S. citizens, announced U.S. Attorney Jennifer B. Lowery.
A federal grand jury returned the two-count indictment against Daniel Chavez. He was originally charged by criminal complaint. He is expected to appear before U.S. Magistrate Judge Diana Song Quiroga on the indictment in the near future.
According to the complaint, on March 30, Chavez arrived at the Border Patrol (BP) checkpoint on I-35 while driving a tractor trailer. At inspection, a K-9 allegedly alerted authorities to the trailer. Law enforcement opened it found 107 individuals later determined to be undocumented aliens, according to the charges.
If convicted, Chavez faces up to 10 years in federal prison and a $250,000 maximum possible fine.
Homeland Security Investigations conducted the investigation with the assistance of BP. Assistant U.S. Attorney David Fawcett is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Texas couple who stole over $4 million from Georgia company sentenced to more than six years in prisonRead the Press Release
ATLANTA – April and James Thompson have each been sentenced for mail fraud after stealing over $4 million from Forest Investment Associates (“FIA”), an Atlanta-based company that provides timberland investment advisory and management services for institutional timberland investors.
“The defendants were able to engage in this fraud for so long only because the victim trusted them,” said U.S. Attorney Kurt R. Erskine. “We will aggressively prosecute those who exploit their insider knowledge and the trust of others to steal.”
“The negative impact of white-collar fraud is far-reaching, and the FBI constantly works to hold fraudsters accountable and protect businesses from further damages,” said Philip Wislar, Acting Special Agent in Charge of FBI Atlanta. “The Thompsons chose self-interest and greed rather than to make an honest living, and for that they will spend significant time in prison.”
According to U.S. Attorney Erskine, the charges, and other information presented in court: April Thompson worked in Texas for Kingwood Forestry Services (“Kingwood”), which is a natural resource consulting firm that provides a variety of forestry services to landowners. FIA contracted with Kingwood to retain contractors to provide field services on behalf of FIA’s clients, such as clearing land, road grading, or other services, subject to an agreed upon annual budget. After the work was completed, Kingwood would send invoices to FIA for the work performed by the contractors. FIA, in turn, paid the invoices directly to the contractors. At Kingwood, April Thompson was responsible for managing the submission of invoices to and requesting payment from FIA.
Between approximately May 2011 and April 2019, April Thompson submitted over 400 fraudulent invoices totaling more than $4 million to FIA for work that her husband, James Thompson, had allegedly performed at FIA timber properties. Not one of these invoices was true. James Thompson never worked as contractor for FIA or Kingwood and had never performed work on any FIA timber property. After April Thompson submitted the invoices, FIA mailed checks to the Thompsons in Texas, which they deposited into bank accounts they jointly controlled. The Thompsons used the stolen money for their own personal benefit, including to operate James Thompson’s trucking businesses, support his race car hobby, purchase silver and gold coins, install a pool at their home, and even treat themselves and friends to a Hawaiian vacation.
In addition to the criminal charges against the Thompsons, FIA had separately filed a civil suit against them in the U.S. District Court for the Eastern District of Texas (“Texas court”). As part of the civil litigation, the Texas court appointed a Receiver to manage and control the Thompsons’ finances, which included granting him full access and control over their bank accounts, as well as the authority to take custody, control, and possession of their property, and authority to determine their reasonable and necessary living expenses. The Texas court also required that the Thompsons respond promptly and truthfully to all requests for information and documents from the Receiver.
The Texas court twice found the Thompsons in contempt for violating its orders, including after they had both pleaded guilty in Georgia. The Texas court found that that they had willfully disregarded its orders related to the preservation of assets by withholding, concealing, or otherwise failing to provide truthful information to the Receiver. The Thompsons likewise failed to make complete financial disclosures to the U.S. Probation Office in advance of their sentencings, including hiding the existence of a bank account in which they were receiving their salaries and failing to account for how thousands of dollars of cash had been spent in the months leading up to their sentencings.
April Thompson, 44, and James Thompson, 49, both of Maud, Texas, were each sentenced by U.S. District Judge Eleanor L. Ross to six years and eight months in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $5,143,209. They were originally charged by a federal grand jury in September 2019 with conspiracy to commit mail fraud and multiple counts of mail fraud. On December 1, 2021, April Thompson pleaded guilty to eleven counts of mail fraud. James Thompson pleaded guilty to one count of mail fraud on January 13, 2022.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorneys Tal C. Chaiken, Alex R. Sistla, and Thomas J. Krepp prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Supervisor of Drug Trafficking Organization Pleads GuiltyRead the Press Release
BOSTON – A supervisor of a Boston-area drug trafficking organization (DTO) pleaded guilty today to his role in a cocaine and cocaine base (crack cocaine) trafficking conspiracy.
Arthur Hodges, 36, formerly of Brighton, pleaded guilty to conspiracy to distribute and possess with intent to distribute cocaine and cocaine base. U.S. District Court Judge Denise J. Casper scheduled sentencing for Aug. 10, 2022.
Hodges was charged with 23 others in June 2020 as part of Operation Snowfall, which ultimately resulted in charges against two different drug trafficking conspiracies from November 2018 and June 2020.
According to the charging documents, beginning in November 2018, law enforcement investigated a DTO for which Hodges was both a supervisor and a drug distributor. The DTO was comprised of Boston-based street gang members and associates in the Commonwealth Development in Brighton, formerly known as Fidelis Way, a multi-apartment public housing development. It is alleged that the DTO assumed control over multiple apartments, where they stored, cooked, packaged and sold drugs – most of which was cocaine or crack cocaine – which the DTO supplied to customers, wholesalers and distributors. As a result, the DTO caused a blight on the development and reduced the quality of life for other residents. As the investigation continued, law enforcement ultimately identified another DTO operating within the Boston area and targeted its large-scale drug suppliers and their associates.
Hodges oversaw a number of the Fidelis Way-related DTO members who were responsible for the packaging, selling, storing and distribution of drugs to, or collection of proceeds from, drug customers, drug runners, or other drug distributors and suppliers. Hodges distributed between approximately 280 and 840 grams of crack cocaine during the course of his participation in the Fidelis Way DTO.
Hodges is the third defendant to plead guilty in the Fidelis Way-related drug conspiracy. The remaining defendants have pleaded not guilty and are awaiting trial.
The charge of conspiracy to distribute and to possess with intent to distribute cocaine provides for a sentence of up to 20 years in prison, at least three years and 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 statutes which govern the determination of a sentence in a criminal case.
First Assistant United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Douglas Bartlett, Acting U.S. Marshal for the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Boston Police Acting Commissioner Gregory Long made the announcement. Assistance with the investigation was provided by the Braintree, Cambridge, Canton, Randolph and Weymouth Police Departments; the Suffolk, Norfolk and Bristol County District Attorneys’ Offices; and the Suffolk, Plymouth and Norfolk County Sheriffs’ Office. Assistant U.S. Attorneys Kaitlin R. O’Donnell and Timothy E. Moran of the Organized Crime & Gang Unit are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Summerset Man Indicted on Child Pornography ChargesRead the Press Release
United States Attorney Dennis R. Holmes announced that a Summerset, South Dakota, man has been indicted by a federal grand jury for Receipt of Child Pornography and Possession of Child Pornography.
Caleb Cook, age 23, was indicted on March 17, 2022. He appeared before U.S. Magistrate Judge Daneta Wollmann on April 13, 2022, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is a mandatory minimum of five up to 20 years in federal prison and/or a $250,000 fine, mandatory minimum of five years up to lifetime supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
Cook was federally indicted following a Cybertip from the National Center of Missing and Exploited Children. The charges relate to Cook receiving and possessing child pornography between September 2016 and December 2021, at Summerset. The charges are merely an accusation and Cook is presumed innocent until and unless proven guilty.
The investigation is a joint effort between the Internet Crimes Against Children taskforce, Homeland Security Investigations, South Dakota Division of Criminal Investigation, Rapid City Police Department, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Cook was detained pending trial. A trial date has been set for June 21, 2022.
Statement from Attorney General Merrick B. Garland on the 27th Anniversary of the Oklahoma City BombingRead the Press Release
Attorney General Merrick B. Garland issued the following statement today, commemorating the 27th anniversary of the Oklahoma City Bombing, which took place April 19, 1995, in Oklahoma City, Oklahoma:
“Every year on this day, we remember those who were killed when a domestic terrorist bombed the Alfred P. Murrah Federal Building in Oklahoma City, taking the lives of 168 people, including 19 children, and seriously injuring hundreds of others.
“And every year on this day, we commemorate the strength of the Oklahoma City community that came together in the face of that loss.
“The Justice Department apprehended, prosecuted, and convicted the men responsible for the bombing of the Murrah Federal Building. As we did, we never forgot the victims, in whose memories we worked.
“Twenty-seven years later, the Justice Department remains vigilant in the face of the threat of domestic terrorism. We believe that the time to address threats of violence is before the violence occurs, so we are putting our resources into disrupting terrorist plots. We also remain committed to holding accountable those who perpetrate such attacks, which are aimed at rending the fabric of our democratic society and driving us apart.
“Today, as we remember Oklahoma City, we must stand together against the kind of hatred that leads to tragedies like that one. Today, we are also reminded of the grace and resilience demonstrated by the Oklahoma City community, which refused to allow hate and division to win.”
Springfield Man Sentenced for Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man who confessed to trading 150 firearms for illegal drugs was sentenced in federal court today for illegally possessing a firearm.
Kyle M. Vaughn, 26, was sentenced by U.S. District Judge M. Douglas Harpool to seven years in federal prison without parole.
On Oct. 5, 2021, Vaughn pleaded guilty to one count of being a felon in possession of a firearm.
A Greene County, Mo., sheriff’s deputy was conducting surveillance at a residence on Sept. 26, 2019. The deputy saw Vaughn, whom he knew was a convicted felon, arrive at the apartment with his girlfriend. Vaughn had two backpacks, camouflage body armor, and a Diamondback Firearms AR-15-type rifle.
When deputies searched the apartment, they found a loaded Walther semi-automatic firearm in a holster on the kitchen table. In the two backpacks that Vaughn was carrying, deputies found a disassembled American Arms .22-caliber handgun, a rifle scope, a full box of .223-caliber ammunition, and drug paraphernalia.
According to court documents, Vaughn admitted that he used methamphetamine earlier that day and recently sold six to nine ounces of methamphetamine. Vaughn also admitted that he frequently traded guns with other felons in exchange for drugs. Vaughn admitted that he had been in possession of approximately 150 firearms during his drug dealings.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Vaughn has an extensive criminal history for possessing illegal drugs and drug paraphernalia, several instances of driving while intoxicated, assault and leaving the scene of an accident that arose from a DWI, tampering with a victim, felony domestic violence, unlawful use of a firearm, and traffic violations. At the time of this offense, Vaughn was under a criminal sentence and under court supervision for three different criminal cases in Greene County, Mo.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the Springfield, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
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.
Six indicted for cocaine trafficking following searchRead the Press Release
McALLEN, Texas – Several men are facing up to life in prison for their alleged roles on a cocaine trafficking conspiracy, announced U.S. Attorney Jennifer B. Lowery.
Today, a federal grand jury returned a multi-count indictment against Mexican citizens Oscar Obed Manzanares, 22, Jose Bernardo Gonzalez-Gomez, 55, and Jose Santiago Luna-Duran, 45; Arlando Garcia-Garcia, 40, and Martin Vela-Alanis, 58, both legal permanent residents of Edinburg; and Martin Adrusbel Vela, 35, Edinburg. Vela-Alanis was additionally indicted for allegedly being a felon in possession of a firearm.
Originally charged by criminal complaint, they are expected to appear for their arraignments before a U.S. magistrate judge in the near future.
The charges allege that on March 22, Manzanares traveled into the United States from Mexico in a GMC and park at a local business in McAllen. Luna-Duran then took the vehicle to a property in Edinburg, according to the charges.
There, authorities allegedly observed individuals exchange items between the GMC and a Ford pickup truck. The charges allege Luna-Duran then brought the GMC back to Manzanares at the nearby business, while Garcia-Garcia took the Ford and continued on to a separate residence where he removed a large duffel bag from the truck.
Vela and Vela-Alanis allegedly resided on the property. Garcia-Garcia and Gonzalez-Gomez were also present, according to the charges.
Law enforcement executed a search warrant at the residence where they recovered a duffel bag containing 15 bundles of a white powdery substance, according to the charges. The bundles allegedly field tested positive for cocaine and had a weight of approximately 15 kilograms. The charges also allege they found over $90,000 and a black and gold Colt Model 1911 pistol.
At the same time, Luna-Duran allegedly returned to the business where authorities ultimately detained him as well as Manzanares. A K-9 search of the vehicle resulted in the discovery of bulk cash amounting to over $238,000, according to the charges.
If convicted, each man faces up to life in prison as well as a possible $10 million.
Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection Air and Marine Operations and the Hidalgo County Sheriff’s Office, and police departments in Hidalgo, Mission, McAllen, Alton, Palmview and Pharr. Assistant U.S. Attorney Peter Brostowin is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Sex Offender Sentenced to 188 Months’ Imprisonment for Receipt of Child Sexual Abuse MaterialRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Sean Guillette, 57, of Burlington, Vermont was sentenced today to 188 months’ imprisonment by Judge Christina Reiss in United States District Court. Today’s sentencing proceeding followed Guillette’s guilty plea in October 2021 to receiving child pornography, also referred to as child sexual abuse material. Judge Reiss also imposed a 16-year term of supervised release to begin after Guillette’s release from prison and ordered Guillette to pay a total of $12,000 in restitution to four victims who were depicted in the images that Guillette received.
According to court records, Guillette sought and downloaded dozens of images and a video of child sexual abuse material on various occasions between November 2018 and April 2019. After Guillette had an encounter with officers from the Burlington Police Department in April 2019, Guillette attempted to remotely delete these materials. Analysis of a cell phone and online account belonging to Guillette revealed images of sexual abuse of children ranging in ages from infant to teenager.
Guillette has multiple prior State of Vermont convictions for lewd and lascivious conduct with a child and has previously served 17 years in jail. These prior offenses included two convictions for groping young girls in public places. Despite having access to treatment for sex offenders while in custody, Guillette failed to complete the treatment and was terminated from the program. Then, in June 2019, after getting out of jail after serving the 17-year sentence, Guillette approached a young girl in a store and groped her.
Nikolas P. Kerest, United States Attorney, commended the investigatory efforts of Homeland Security Investigations, the Vermont Internet Crimes Against Children Task Force, and the Burlington Police Department. The prosecutors are Assistant U.S. Attorneys Nicole Cate and Nate Burris. Guillette is represented by Devin McLaughlin, Esq.
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 Child Exploitation Obscenity Section, Criminal Division (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.
Scituate Resident Sentenced to Federal Prison for Possessing, Distributing Child PornographyRead the Press Release
PROVIDENCE, R.I. – A Scituate man who shared sexually explicit images of prepubescent girls online with an undercover federal law agent he thought to be the parents of a 13-year-old girl has been sentenced to five years in federal prison, announced United States Attorney Zachary A. Cunha.
David C. Duquette, 54, pleaded guilty on November 29, 2021, to possession of child pornography and distribution of child pornography. He was sentenced today by U.S. District Court Chief Judge John J. McConnell, Jr., to 60 months of incarceration to be followed by eight years of federal supervised release.
According to charging document, in February 2019, a Homeland Security Investigations agent engaged in a series of online exchanges with Duquette, posing as both the mother and father of a 13-year-old girl. In those exchanges, Duquette admitted that, in the past, he communicated online with young teenage girls, and that some of them shared sexually explicit images. The agent suggested he too shared an interest in viewing child pornography. Duquette sent him two sexually explicit images depicting prepubescent girls.
Duquette was arrested on April 17, 2019. His cellphone was found to contain approximately 1,400 images of child pornography.
The case was prosecuted by Assistant U.S. Attorney Terrence P. Donnelly.
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Sacramento Felon Pleads Guilty to Illegal Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — Marcus Lawrence Weber, 26, of Sacramento, pleaded guilty today to being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on March 16, 2022, Weber had four pending felony arrest warrants when officers located him driving in Roseville. When they tried to pull him over to arrest him, Weber led them on a car chase. Eventually, Weber stopped his car and fled on foot, wearing a black ski mask. He ran into a creek bed, where he dropped a Ruger 5.7 firearm and was eventually arrested. The firearm was loaded with an extended magazine and had a round in the chamber. Weber is prohibited from possessing firearms or ammunition because he has previously been convicted of felony offenses.
This case is the product of an investigation by the Sacramento Police Department, the Sacramento County District Attorney’s Office, the Placer County Sheriff’s Office, and the Placer County District Attorney’s Office, with the assistance of the Federal Bureau of Investigation’s Safe Streets Task Force and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.
Weber is scheduled to be sentenced on Aug. 2, 2022. He faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. 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.
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.
Rochester School Bus Driver Arrested, Charged with Sexually Abusing A 13 Year Old on A Bus and Witness TamperingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that Tomas Rosario, 74, of Rochester, NY, was arrested and charged by criminal complaint with attempted receipt of child pornography, possession of child pornography, and attempted tampering with a witness. The charges carry a mandatory minimum penalty of five years in prison and a maximum of 20 years.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that according to the complaint, on March 11, 2022, the Rochester Police Department received a report of a sexual assault of a 13-year-old female (Minor Victim). Subsequent investigation determined that the Minor Victim was allegedly touched inappropriately by her school bus driver, later identified as Rosario. A review of surveillance video captured on cameras installed on the school van shows Rosario having inappropriate sexual discussions with the Minor Victim on the way to and from school. The Minor Victim and Rosario are the only occupants in the van. Rosario also the drove the Minor Victim past his residence and told her that if there comes a day when she does not want to go to school, he could provide her with his phone number so that Minor Victim could call him. Rosario then gave the Minor Victim a piece of paper with his phone number written on it. Rosario also told the Minor Victim not to tell anyone about their conversation. During the ride home from school, Rosario directed the Minor Victim to do something sexually inappropriate. The Minor Victim reminds Rosario about the camera inside the vehicle. Rosario then inappropriately touches the Minor Victim multiple times. Rosario tells the Minor Victim again not to tell anyone because he could have a big problem. A few days after this sexual assault occurred, Rosario encountered the Minor Victim in a convenience store and again warned her not to tell anyone. This encounter was captured by the store’s security cameras.
On April 13, 2022, the Rochester Police Department obtained a warrant to search Rosario’s cell phone, during which investigators recovered images of child pornography.
Members of the public who have information regarding this case are asked to call the FBI at 1-585-546-2220.
The complaint is the result of an investigation by the Rochester Police Department, under the direction of Interim Police Chief David Smith, the Federal Bureau of Investigation, Child Exploitation Task Force, under the direction of Agent-in-Charge Stephen Belongia, and the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Rochester Man Wanted on an Outstanding Warrant in Texas Arrested on Charges of Distribution and Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that Joseph Perez, of Rochester, NY, was arrested and charged by criminal complaint with distribution of child pornography and possession of child pornography involving a prepubescent minor. The charges carry a maximum penalty of 20 years in prison.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that in December 2020, the National Center for Missing and Exploited Children (NCMEC) received a cybertip from Twitter, Inc. that an individual, later identified as Perez, uploaded four images of suspected child pornography to Twitter. Subsequently, in March 2021, NCMEC received a cybertip from Instagram indicating that Perez uploaded one file of suspected child pornography. On November 5, 2021, the New York State Police executed a search warrant at Perez’s Avenue D residence and recovered several electronic devices were seized. A forensic analysis found approximately 125 videos of child pornography on a cellular telephone. At the time of his arrest, investigators discovered that there is an active warrant for Perez’s arrest out of Potter County, Texas, where he was charged with Indecency with a Child/Sexual Contact.
The complaint is the result of an investigation by Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Matthew Scarpino, the New York State Police, under the direction of Major Eugene Staniszewski, and the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Registered Sex Offender Faces Mandatory Minimum 10 Years in Prison After Pleading Guilty to Possession of Child PornographyRead 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 Matthew Bald, 40, of Lockport, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to possession of child pornography involving a prepubescent minor by a person having a prior conviction for sexual abuse, aggravated sexual abuse, or abusive sexual contact involving a minor or ward. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of 20 years, and a $250,000 fine.
Assistant U.S. Attorney David J. Rudroff, who is handling the case, stated that in November 2011, Bald was convicted in Niagara County Court of Sexual Abuse in the First Degree and sentenced to serve six months in prison and 10 years’ probation. On December 15, 2020, while still on probation, Bald possessed more than 600 images of child pornography on a laptop computer. Some of the images of child pornography depicted prepubescent minors.
The plea is the result of an investigation by Homeland Security investigations, under the direction of Acting Special Agent-in-Charge Matthew Scarpino, the New York State Police, under the direction of Major Eugene Staniszewski, the Niagara County Probation Department, under the direction of Director John Cicchetti, and the National Center for Missing and Exploited Children.
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Recidivist Fraudster Indicted in Connection with at Least $40 Million Ponzi Scheme, SBA Loan Fraud, and Another Fraud SchemeRead the Press Release
Damian Williams, United States Attorney for the Southern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (FBI), announced the indictment of FRANKLIN RAY for conspiracy to commit wire fraud, wire fraud, and aggravated identity theft, in connection with various fraud schemes relating to his operation of a trucking business known as CSA Business Solutions LLC. RAY, who was previously convicted of wire fraud and bank fraud in the Eastern District of Michigan and was released from prison in 2010, and a co-defendant, JOSEPH WINGET, were arrested in connection with certain of these schemes pursuant to a criminal complaint in early March.
U.S. Attorney Damian Williams said: “We allege Ray used his purported trucking companies as vehicles for fraud, including by submitting fraudulent applications for small business loans during the Covid-19 pandemic, and by fleecing investors into giving him tens of millions of dollars to participate in a business that was a scam. Ray knew that his actions were illegal, having been convicted of similar crimes more than a decade ago. Ray may not learn a lesson from his latest actions, but he will face justice for them.”
FBI Assistant Director-in-Charge Michael J. Driscoll said: “As we allege today, Mr. Ray, who was previously convicted of federal wire and bank fraud charges, operated a Ponzi scheme that defrauded hundreds of investors of more than $40 million. Mr. Ray was even bold enough to continue his alleged activity subsequent to his most recent arrest. Today's charges will force him - yet again - to face the consequences of his illegal activity in the federal criminal justice system.”
As alleged in the Indictment and previously filed Complaint:[1]:
Beginning in at least June 2021, FRANKLIN RAY began to offer investors an opportunity to invest in his trucking and logistics company, CSA Business Solutions LLC (the “Truck Investment Scheme”). Specifically, RAY and the investors entered into contracts pursuant to which, for each $20,000 contributed by the investor, CSA Business Solutions LLC would procure and operate a truck in its trucking business. RAY told investors that the trucks would perform delivery services for a multinational e-commerce company and/or a multinational shipping company, and that the investors would be entitled to 77% of the net income of the trucks. After the investors purchased the rights to trucks from CSA Business Solutions LLC, RAY sent them falsified spreadsheets at regular intervals, purporting to show the performance of their trucks during the relevant period. In truth and fact, CSA Business Solutions LLC operated few trucks and had minimal revenues from trucking activities. Instead, investors in the Truck Investment Scheme received payments from new investments into the scheme or from other sources. RAY ultimately induced approximately 275 investors to purchase over 2,000 trucks, totaling at least $40 million in fraudulent investments.
RAY is also charged with carrying out fraudulent schemes to obtain over $1.9 million in government-guaranteed loans designed to provide relief to small businesses during the COVID-19 pandemic on behalf of CSA Business LLC and another Michigan-based trucking company (the “SBA Loan Fraud Schemes”). In connection with the SBA Loan Fraud Schemes, RAY submitted false information and forged documents to the SBA and commercial lenders. RAY claimed that these businesses engaged in significant trucking business, but they had minimal revenues and trucking activity. A co-defendant, JOSEPH WINGET, is charged with participating in one of the SBA Loan Fraud Schemes, on behalf of CSA Business Solutions LLC, resulting in $1.1 million in fraudulently obtained loans.
Finally, RAY is charged with fraudulently inducing a New York City based real estate company to pay a $175,000 deposit in order to pay for startup costs associated with setting up a joint venture between the company and CSA Business Solutions LLC (the “Joint Venture Fraud”). RAY induced the company to enter into the Joint Venture by misrepresenting CSA Business Solutions LLC and his own personal business experience. RAY spent the funds on personal expenses, including private airplane trips. The Joint Venture was never formed.
RAY and WINGET were arrested in early March 2022, and a CSA Business Solutions LLC bank account was seized at that time. After his arrest, RAY continued to operate the Truck Investment Scheme. RAY misled investors about why he did not make expected payments after his arrest and hid the fact of his arrest and the seizure of the bank account. During this period, RAY caused the opening of new bank accounts on behalf of CSA Business Solutions LLC and continued to solicit and accept investor funds for trucks that did not exist.
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RAY, 50, of Canton, Michigan, is charged with conspiracy to commit wire fraud, four counts of wire fraud, and two counts of aggravated identity theft. The conspiracy to commit wire fraud and three counts of wire fraud each carry a maximum sentence of 20 years in prison. One of the wire fraud counts relates to a fraud affecting a financial institution, and therefore carries a maximum sentence of 30 years in prison. The charges for aggravated identity theft each carry an additional mandatory consecutive two-year sentence.
WINGET, 70, of Imlay City, Michigan, is charged with conspiracy to commit wire fraud and one count of wire fraud, each of which carries a maximum sentence of 20 years in prison, and one count of aggravated identity theft, which carries an additional mandatory consecutive two-year sentence.
Mr. Williams praised the outstanding investigative work of the FBI.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Matthew Weinberg is in charge of the prosecution.
If you believe you have been a victim of the schemes described above, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact Wendy Olsen-Clancy, the Victim Witness Coordinator at the United States Attorney’s Office for the Southern District of New York, at 866-874-8900 or [email protected].
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and Complaint and the description of the Indictment and Complaint set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
Raytown Man Sentenced for Enticing a Minor for SexRead the Press Release
KANSAS CITY, Mo. – A Raytown, Mo., man was sentenced in federal court today for enticing a 15-year-old victim to engage in illegal sexual activity.
Nathaniel Hibdon, 31, was sentenced by U.S. District Judge Gary A. Fenner to 10 years in federal prison without parole. The court also ordered Hibdon to pay a $5,000 special assessment under the Justice for Victims of Trafficking Act. Hibdon will be required to register as a sex offender upon his release from prison and will be subject to federal and state sex offender registration requirements, which may apply throughout his life.
On Sept. 2, 2021, Hibdon pleaded guilty to one count of enticing a minor to engage in illegal sexual activity.
Hibdon admitted that he met the 15-year-old victim on the Grindr application and communicated with him via Facebook Messenger. On at least two occasions in September 2018, Hibdon traveled to Kansas City, Kansas, to pick up the minor victim and bring him to Missouri to engage in illegal sexual activity. Law enforcement was alerted by a series of CyberTips made by Facebook to the Western Missouri Cyber Crimes Task Force.
This case was prosecuted by Assistant U.S. Attorney David A. Barnes. It was investigated by the Western Missouri Cyber Crimes Task Force and Homeland Security Investigations.
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."
Rapid City Man Sentenced for Prohibited Person in Possession of a FirearmRead the Press Release
United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man convicted of Prohibited Person in Possession of a Firearm was sentenced on April 18, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Benny Bacon, age 56, was sentenced to 26 months in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Bacon was indicted by a federal grand jury on February 8, 2021. He pled guilty on January 27, 2022.
The conviction stems from an incident on November 19, 2020, in Todd County, South Dakota, during a traffic stop when law enforcement located a pistol, ammunition, and drug paraphernalia in Bacon’s vehicle. Bacon is a felon and an unlawful user of a controlled substance making him a prohibited person.
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.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services, Northern Plains Safe Trails Drug Enforcement Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Meghan Dilges prosecuted the case.
Bacon was immediately turned over to the custody of the U.S. Marshals Service.
Portland Housekeeper Pleads Guilty to Wire Fraud after Stealing Covid-Relief FundsRead the Press Release
PORTLAND, Ore.—A Portland area housekeeper pleaded guilty today for perpetrating a scheme to steal funds intended to help small businesses during the COVID-19 pandemic.
Kimberly Aralene Wells, 40, a resident of Portland, pleaded guilty to one count of wire fraud.
According to court documents, by the summer of 2020, after Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide emergency financial assistance to millions of Americans suffering the economic effects of the COVID-19 pandemic, Wells devised a scheme to defraud the Small Business Administration (SBA) by fraudulently applying for CARES Act-authorized Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL) using a fictitious shell company.
To perpetrate her scheme, Wells used her fictitious company, Kim’s Cleaning Inc., to apply for PPP loans from Itria Ventures LLC, an online commercial lending platform based in New Jersey. In her loan applications, Wells falsely claimed her business posted gross annual receipts of more than $600,000 and maintained an average monthly payroll of more than $19,000. In reality, Wells’ company existed in name only and had no employees.
As a result of her misrepresentations, in February 2021, Itria disbursed nearly $49,000 in PPP funds to Wells. Wells in turn used the funds to pay for various personal expenses, including travel and gambling. Between July 2020 and May 2021, Wells also submitted three fraudulent EIDL applications that were denied by SBA.
On November 11, 2021, a federal grand jury in Portland returned a three-count indictment charging Wells with wire fraud.
Wells faces a maximum sentence of 20 years in prison, a $250,000 fine and three years of supervised release. She will be sentenced on August 8, 2022 before U.S. District Court Judge Michael H. Simon.
As part of her plea agreement, Wells has agreed to pay $51,457 in restitution to Itria and SBA.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the U.S. Treasury Inspector General for Tax Administration (TIGTA), the SBA Office of Inspector General, and the FBI. Assistant U.S. Attorney Ryan W. Bounds is prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’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.
Pittsburgh Man Pleads to Producing and Attempting to Produce Child Sexual Exploitation MaterialsRead the Press Release
PITTSBURGH - A former resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a charge of production and attempted production of material depicting the sexual exploitation of a minor, United States Attorney Cindy K. Chung announced today.
Anthony Cerasi, age 47, pleaded guilty to one count before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that on April 13, 2021, Cerasi employed and used a minor to engage in sexually explicit conduct for the purpose of producing a video recording of such conduct.
Judge Schwab scheduled sentencing for Aug. 30, 2022, at 9:30 AM. The law provides for a total sentence of not less than 15 years but not more than 30 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the Court ordered that Cerasi remain detained.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
The FBI Pittsburgh Child Exploitation and Human Trafficking Task Force, including the Federal Bureau of Investigation and the Pittsburgh Bureau of Police, conducted the investigation that led to the prosecution of Cerasi.
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.justice.gov/psc.
Pine Ridge Man Charged with Three MurdersRead the Press Release
United States Attorney Dennis R. Holmes announced that a Pine Ridge, South Dakota, man has been indicted by a federal grand jury for three counts of First Degree Murder, three counts of Discharge of a Firearm During a Crime of Violence, and one count of Possession of Ammunition by a Prohibited Person.
Elijah West, age 24, was indicted on January 20, 2022. He appeared before U.S. Magistrate Judge Daneta Wollmann on April 15, 2022, and pleaded not guilty to the Indictment.
The penalty upon conviction is mandatory life in federal prison and/or a $250,000 fine, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges stem from West killing three people by shooting them near Wounded Knee, South Dakota, in January 2022. The charges are merely an accusation and West is presumed innocent until and unless proven guilty.
The investigation is being conducted by Federal Bureau of Investigation and the Oglala Sioux Tribe Department of Public Safety Criminal Investigation Division. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.
West was detained pending trial. A trial date has been set for June 21, 2022.
Pine Ridge Brothers Found Not Guilty in Federal CourtRead the Press Release
United States Attorney Dennis R. Holmes announced that two Pine Ridge, South Dakota, men were acquitted of Second Degree Murder following a federal jury trial in Rapid City, South Dakota. The verdict was returned on April 15, 2022.
Antoine Joey Makes Good, a/k/a Joey Makes Good, age 35, and Vinnie Makes Good, age 33, were indicted by a federal grand jury on December 8, 2020.
The charge related to the murder of a male individual at Kyle, South Dakota, on November 1, 2020. The investigation was conducted by the Oglala Sioux Tribe Department of Public Safety and the Federal Bureau of Investigation. The U.S. Attorney's Office prosecuted the case.
Pierre Woman Indicted for Assaulting Federal OfficersRead the Press Release
United States Attorney Dennis Holmes announced that a Pierre, South Dakota, woman has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
Barbara McGhee, age 24, was indicted on April 13, 2021. She appeared before U.S. Magistrate Judge Mark A. Moreno on April 15, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to eight years in federal prison and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on March 29, 2021, in Lower Brule, South Dakota, McGhee physically assaulted correctional officers as they were attempting to relocate her to another area of the jail.
The charge is merely an accusation and McGhee is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, Lower Brule Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
McGhee was released on bond pending trial. A trial date has not been set.
Owner of Counseling Agency and Supervising Manager Sentenced on Healthcare and Wire Fraud ChargesRead the Press Release
SHREVEPORT, La. - United States Attorney Brandon B. Brown announced that Marty T. Johnson and Keesha Dinkins were both sentenced today by United States District Judge Donald E. Walter in connection with a healthcare fraud and wire fraud scheme they were involved in.
Johnson, 59, of Shreveport, was sentenced to 60 months in prison, followed by 1 year of supervised release. Dinkins, 45, of Bossier City, was sentenced to 24 months in prison, followed by 1 year of supervised release. In addition, Johnson and Dinkins were ordered to jointly pay restitution in the amount of $3,500,000.
On October 26, 2021, Johnson and Dinkins each entered guilty pleas in connection with the case. Johnson pleaded guilty to a Bill of Information charging him with conspiracy to commit healthcare fraud and wire fraud. Dinkins pleaded guilty to a Bill of Information charging her with misprision of a felony charge of healthcare fraud. Johnson and Dinkins each admitted to defrauding the Medicaid Program out of $3.5 million.
According to information presented to the court, Johnson owned and operated Positive Change Counseling Agency (Positive Change) located in Shreveport, Louisiana, from January 2013 to January 2018. Keesha Dinkins was a manager and supervisor at Positive Change. Positive Change provided mental health rehabilitation and related services to Medicaid beneficiaries in the Caddo and Bossier Parish areas. From 2014 to January 2018, Johnson submitted and caused to be submitted fraudulent claims for mental health rehabilitation and non-emergency transportation services on behalf of Positive Change. Dinkins knew that Johnson submitted these fraudulent claims which she and Johnson both knew were not performed or rendered. These fraudulent claims resulted in Positive Change receiving payments from Medicaid to which it was not entitled.
Johnson admitted to paying individuals money to enroll with Positive Change, increasing the capacity for Positive Change to bill Medicaid for services that were not rendered. Johnson instructed employees, and Dinkins supervised those employees, at Positive Change to create false client files to conceal from Medicaid and insurance company auditors and inspectors that it had not performed the services related to its previously submitted claims which had already been reimbursed by Medicaid. In order to create these false client files, sections from different client documents were physically cut to create inserts which were glued into blank client log templates. These templates with the glued inserts were then photocopied to create the appearance of legitimate documents. Johnson and Dinkins supervised and knowingly and willfully instructed the employees that were creating these false client files to place the false and fictitious photocopied, cut and pasted, documents into the client files. Johnson and Dinkins knew that these false client files were used to conceal from Medicaid officials that Positive Change did not render the services in the claims submitted by it and paid by Medicaid.
In addition, Johnson knowingly caused Positive Change to use Medicaid recipients’ names and identification information without their knowledge or consent to submit fraudulent claims for mental health rehabilitation and non-emergency transportation.
The case was investigated by the U.S. Department of Health and Human Services–Office of Inspector General, Louisiana State Attorney General’s Office-Medicaid Fraud Control Unit, and Federal Bureau of Investigation. Assistant U.S. Attorney Earl M. Campbell prosecuted the case.
If you have any information pertaining to this or any other type of Medicaid fraud, please contact the U.S. Department of Health and Human Services–Office of Inspector General at 1-800-HHS-TIPS (1-800-447-8477) or the Louisiana Medicaid Fraud Hotline at 1-800-488-2917.
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Orange County Woman Found Guilty of Federal Charges in Murder of Man Shot on Boat and Whose Body Was Recovered in OceanRead the Press Release
SANTA ANA, California – A San Juan Capistrano woman was found guilty by a federal jury today of criminal charges in connection with the October 2019 murder of a man whose body was found floating in the Pacific Ocean with bullet and blunt force trauma wounds.
Sheila Marie Ritze, 42, was found guilty of two felonies: one count of second-degree murder within in the special maritime and territorial jurisdiction of the United States, and one count of making false statements to federal investigators.
At her sentencing hearing, which is expected in the coming months, Ritze will face a statutory maximum sentence of life in federal prison.
According to evidence presented at her 12-day trial, Ritze went out on her boat with Hoang Xuan Le, 40, a.k.a. “Wayne,” and “Wangsta,” of Fountain Valley, where they murdered the victim, who owed Le a debt. On October 15, 2019, in connection with a late-night lobster-fishing trip, Ritze and Le took the victim to Ritze’s boat, which was docked at Dana Point Harbor.
Around midnight, Ritze drove her boat out into the Pacific Ocean with Le and the victim on board. Le shot the victim on the boat, the victim went overboard, and Ritze and Le left the victim to die in the ocean, where he drowned. Le and Ritze then returned to Dana Point Harbor.
The victim’s body was recovered from the Pacific Ocean several miles northwest of Oceanside on October 16, 2019. The San Diego County Medical Examiner’s Office determined that he was a homicide victim who drowned after being shot and who had suffered blunt force trauma.
During a December 2019 interview with federal investigators, Ritze told a series of lies, including when she falsely said she had never met the victim prior to the fatal October 15, 2019, boat trip. Ritze and the victim had been in Las Vegas together 11 days prior to the murder.
At the conclusion of a 17-day trial in December 2021, a federal jury found Le guilty of first-degree murder within the special maritime and territorial jurisdiction of the United States, conspiracy to commit murder, and using a firearm in furtherance of a crime of violence. In February 2022, Le pleaded guilty to eight narcotics-related felonies, including distribution of cocaine and methamphetamine.
Le faces a mandatory sentence of life in federal prison at his June 27 sentencing hearing.
The Coast Guard Investigative Service and the FBI investigated this matter.
Assistant United States Attorneys Gregory S. Scally and Gregory W. Staples of the Santa Ana Branch Office are prosecuting this case.
Olean Man Pleads Guilty to CyberstalkingRead 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 Luke Marshall Wenke, 29, of Olean, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to cyberstalking. The charges carry a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorneys Charles M. Kruly and David J. Rudroff, who are handling the case, stated that between January 23 and January 24, 2022, Wenke threatened to injure an individual identified as R.G. in Minnesota. R.G. is a criminal defense attorney who represents an acquaintance of Wenke’s in a criminal matter in the District of Minnesota. Beginning in September 2020, Wenke grew dissatisfied with the representation that R.G. provided to the acquaintance, and began to harass and threaten R.G. Between September 22, 2020, and January 24, 2022, Wenke sent R.G. more than 76 emails, a voicemail, made two phone calls to R.G.’s law firm, and attempted to visit R.G.’s law firm in-person on one occasion, in addition to numerous fake internet reviews of R.G.’s law firm. Several of the communications referenced Wenke’s possession of firearms, and/or his familiarity with explosives.
On January 23, 2022, Wenke sent R.G. an email in which he stated, among other things, “They say men respect each other after a fight. I will gladly take a steel chair to your face until I get what I want here. You don’t respect me. . . but you will.” On January 24, 2022, Wenke sent another email to R.G. in which he stated, among other things, “This fight will happen, do not fear and do not worry. Do not cross certain lines. Oh boy do I have work to do tomorrow.” That same day, Wenke sent another email and attached a photo depicting an aerial view of R.G.’s residence.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia and the Olean Police Department, under the direction of Chief Ron Richardson.
Sentencing is scheduled for August 18, 2022, at 10:00 a.m. before Judge Sinatra.
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Ogle County Man Sentenced to Nearly Four Years in Federal Prison for Bank RobberyRead the Press Release
ROCKFORD — An Ogle County man was sentenced today to nearly four years in federal prison for robbing a bank in Rochelle, Ill.
RODNEY BEESE, 64, of Rochelle, Ill., admitted in a plea agreement that on July 6, 2021, he entered Central Bank Illinois, 340 May Mart Dr., approached the teller counter, and presented a note demanding $20’s, $50’s, and $100’s from the drawer. Beese received $100 in cash from the teller and then left the bank.
U.S. District Judge Iain D. Johnston imposed a 46-month prison sentence after a hearing in federal court in Rockford.
The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government was represented by Assistant U.S. Attorney Robert S. Ladd.
Odessa Man Charged for Suspicious Device HoaxRead the Press Release
MIDLAND – An Odessa man was charged last week on a federal criminal complaint for his alleged involvement in a hoax concerning the Ector County Courthouse.
According to court documents, on April 7, 2022, David Paul Finnegan, 37, left a suspicious device at the front steps of the Ector County Courthouse. The device consisted of a large PVC pipe containing miscellaneous objects. It was held together with black tape and had a wristwatch taped to it. The Odessa Police Department Explosives Ordinance Disposal (EOD) team was called out to examine the device. After the EOD technicians rendered it safe, they determined the device did not contain explosives.
Further investigation revealed Finnegan was scheduled to be sentenced at the courthouse the day he planted the device. As a result of its discovery, the Ector County Courthouse had to be evacuated and shut down to the public for much of the day, causing various court proceedings to be postponed, including Finnegan’s sentencing.
Finnegan is charged with one count of perpetrating a hoax. If convicted, he faces up to five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Finnegan had his initial appearance today before United States Magistrate Judge Ronald Griffin.
U.S. Attorney Ashley C. Hoff of the Western District of Texas and FBI Special Agent in Charge Jeffrey R. Downey, El Paso Office, made the announcement.
The FBI, with valuable assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the Ector County Sheriff’s Office; Odessa Police Department; and the Texas Department of Public Safety, is investigating the case.
Assistant U.S. Attorney John Fedock is prosecuting the case.
A criminal complaint is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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North Dakota Man Indicted on Child Sexual Exploitation ChargesRead the Press Release
PITTSBURGH, PA. A resident of Williston, North Dakota, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal child exploitation laws, United States Attorney Cindy K. Chung announced today.
The six-count Indictment named Nicholas Nesdahl, age 27, as the sole defendant.
According to the Indictment, in October 2021, Nesdahl is alleged to have produced and attempted to produce material depicting the sexual exploitation of a minor and received and attempted to receive material depicting the sexual exploitation of a minor.
The law provides for a maximum total sentence of 30 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert C. Schupansky is prosecuting this case on behalf of the government.
The Department of Homeland Security/Homeland Security Investigations conducted the investigation leading to the Indictment in this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States 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.justice.gov/psc.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.