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Tuesday 8 March 2022
Pittsburgh Man Indicted on Drug and Gun Law ViolationsRead the Press Release
PITTSBURGH, PA—A resident of Pittsburgh, PA has been indicted by a federal grand jury in Pittsburgh on charges of violating federal drug laws and gun laws, United States Attorney Cindy K. Chung announced today.
The two-count Indictment named Ryan Moore-Daniels, 37 of the City’s Beechview neighborhood, as the sole defendant.
According to Indictment presented to the court, on December 9, 2021, the defendant, Ryan Moore-Daniels, did knowingly, intentionally and unlawfully possess with intent to distribute a quantity of a mixture and substance containing a detectable amount of cocaine, a Schedule II controlled substance. Additionally, on the same date, Moore-Daniels, knowingly possessed a firearm, in furtherance of a drug trafficking crime for which he may be prosecuted.
The law provides for a maximum total sentence of 25 years in prison, a fine of $1,250,000 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 Katherine C. Jordan is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, Pennsylvania Office of Attorney General, Internal Revenue Service, City of Pittsburgh Bureau of Police, Pennsylvania State Police, New Castle Police Department, Allegheny County Police Department, Robinson Township Police Department, Monessen Police Department conducted the investigation leading to the Indictment in this case.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pine Ridge Man Pleads Not Guilty to Sexual Abuse of a MinorRead 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 Sexual Abuse of a Minor and Abusive Sexual Contact.
Howard Blue Bird, age 44, was indicted on November 18, 2021. He appeared before U.S. Magistrate Judge Daneta Wollmann on March 2, 2022, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is 15 years in federal prison and/or a $250,000 fine, up to life of supervised release, and a $200 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Blue Bird knowingly engaging in a sexual act with a minor in 2018 near Porcupine, South Dakota.
The charges are merely accusations and Blue Bird is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Oglala Sioux Tribe Department of Public Safety and the Federal Bureau of Investigation. Assistant U.S. Attorney Heather Sazama is prosecuting the case.
Blue Bird was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for May 10, 2022.
Pikeville Man Sentenced for Wire Fraud and Healthcare FraudRead the Press Release
PIKEVILLE, Ky.- Eugene Sisco, III, 36, of Pikeville, Ky., was sentenced Tuesday to serve 125 months in prison by U.S. District Judge Robert E. Wier, after a jury convicted him in November 2021 of wire fraud and health care fraud.
According to the trial evidence, Sisco operated several medication assisted treatment (“MAT”) clinics in Pike, Floyd, and Harlan Counties that offered treatment to patients suffering from opioid addiction. These clinics were enrolled as providers in the Kentucky Medicaid program, and under Kentucky law were required to bill that insurance program for MAT services rendered to Medicaid patients. The evidence demonstrated that Sisco deceived patients into paying $200-$300 per month in cash for treatment at his clinics, despite having Medicaid insurance, by falsely claiming his clinics were not eligible to bill Medicaid for certain services they provided. The evidence at trial showed that the cash payments from patients totaled around $5 million between May 2016 and October 2019, most of it from Medicaid beneficiaries for whom the services should have cost nothing. At the same time, Sisco caused his clinics to bill Medicaid for MAT services, receiving millions in reimbursements from that program as well.
The jury also found that Sisco engaged in a health care fraud scheme, by causing his laboratory, Toxperts, LLC, to bill for medically unnecessary urine drug testing of samples collected from patients at his clinics. The physician witnesses at trial testified that they did not order this urine drug testing, and that some of it was done at Sisco’s direction for billing purposes, as opposed to any medical reason. Sisco is not a doctor or medical professional. At sentencing, Judge Wier found that this fraud caused a loss of more than $2 million to the Medicaid and Medicare programs.
Under federal law, Sisco must serve 85 percent of his prison sentence. In addition, Sisco was ordered to pay $5.7 million in restitution. Sisco will be under the supervision of the U.S. Probation Office for three years, following his release from prison.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent in Charge, FBI, Louisville Field Office; Daniel Cameron, Attorney General of Kentucky; and Col. Phillip Burnett, Jr., Commissioner, Kentucky State Police; announced the sentence.
The investigation was conducted by FBI, KSP, and the Office of the Attorney General, Office of Medicaid Fraud and Abuse. The United States was represented in the case by Assistant U.S. Attorney Paul McCaffrey.
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Pharmacy Owner Convicted of Unlawfully Dispensing 1.5 Million Doses of Controlled SubstancesRead the Press Release
A federal jury in the Southern District of Texas convicted a Texas pharmacy owner yesterday for unlawfully distributing controlled substances and laundering money from his now-shuttered pharmacies.
According to court documents and evidence presented at trial, Clint Carr, 32, of Cypress, co-owned and operated CC Pharmacy in Houston, and CC Pharmacy 2 and CC Pharmacy 3 in the Austin area with co-conspirator Dustin Curry. In just 18 months, Carr, Curry and their co-conspirators unlawfully distributed over 1.5 million dosage units of controlled substances, including over 1.1 million pills of oxycodone and hydrocodone. Trial evidence showed that CC Pharmacy unlawfully dispensed controlled substances — mostly oxycodone and hydrocodone — in bulk for cash, based on mostly forged or stolen prescriptions brought in by drug couriers posing as staff of long-term care facilities. CC Pharmacy brought in over $5.5 million from the unlawful sale of these controlled substances, cash proceeds which Carr and his co-conspirators structured to avoid reporting requirements. Evidence at trial showed that Carr used these drug proceeds to finance a lavish lifestyle, including the down payment on a $100,000 Ford pickup truck.
“Carr’s conviction is a reminder that the Department of Justice will hold accountable those who have helped fuel the country’s opioid epidemic,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “This includes pharmacy owners who have effectively poisoned our communities.”
“This case is another example of the DEA’s continued commitment to combat our nation’s opioid crisis to reduce the diversion of controlled substances that drives drug overdose deaths and violent crime in our communities,” said Special Agent in Charge Daniel C. Comeaux of the Drug Enforcement Administration (DEA), Houston Division. “This conviction is a credit to the tireless work of our investigators and prosecutors to make our communities safer.”
Carr was convicted of one count of conspiracy to unlawfully distribute and dispense controlled substances, four counts of unlawfully distributing and dispensing controlled substances, one count of conspiracy to launder monetary instruments, and two counts of engaging in monetary transactions in property derived from specified unlawful activity. He faces a maximum total penalty of up to 140 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing is scheduled for May 27.
To date, five other co-conspirators, including Curry, have pleaded guilty to unlawfully distributing controlled substances.
DEA Houston, including the DEA Austin Resident Office, investigated the case.
Trial Attorneys Devon Helfmeyer and Courtney Chester of the Criminal Division’s Fraud Section are prosecuting the case. Assistant U.S. Attorney Kristine Rollinson of the Southern District of Texas is handling forfeiture.
Owners and Operators of Online Cryptocurrency Companies Indicted for Defrauding InvestorsRead the Press Release
An 11-count indictment was unsealed today in federal court in Brooklyn charging Dwayne Golden, Gregory Aggesen, and Marquis Demacking Egerton, the owners and operators of the web-based virtual currency companies EmpowerCoin, ECoinPlus and Jet-Coin, with conspiracy to commit wire fraud and money laundering, and related substantive counts, in connection with a sophisticated scheme to steal assets from investors. Golden, Aggesen and William White were also charged with conspiracy to obstruct justice, obstructing justice and tampering with evidence. The defendants were arrested this morning and will be arraigned in the Eastern District of New York at a later date.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI) announced the arrests and charges.
“As alleged, the defendants engaged in a sophisticated scheme that preyed on unsuspecting investors nationwide with false promises of guaranteed returns and virtual currency trading opportunities. When the companies collapsed and their criminal conduct was about to be exposed, the defendants attempted to cover their tracks and destroy evidence,” stated United States Attorney Peace. “The scams may have been online and virtual, but these charges are very real. This Office is committed to protecting the public from criminals who view cryptocurrency as a new frontier to perpetrate old fashioned crimes of fraud and money laundering.”
Mr. Peace also thanked the Commodity Futures Trading Commission for their assistance in this matter.
“Whether we’re dealing with virtual currency or cold-hard cash, schemers continue to capitalize on investors’ best intentions and pocket their ill-gotten gains,” stated FBI Assistant Director-in-Charge Driscoll. “As alleged, those charged today defrauded their victims and generated more that $40 million for their own benefit. This office remains committed to rooting out fraud in all its forms.”
According to the indictment, between April 2017 and August 2017, Golden, Aggesen, and Egerton, together with others, operated a series of web-based virtual currency companies known as EmpowerCoin, ECoinPlus and Jet-Coin. The websites for EmpowerCoin, ECoinPlus and Jet-Coin fraudulently promised investors and potential investors guaranteed fix returns on virtual currency investments. They falsely promised investors and potential investors that these returns were made possible through overseas virtual currency trading operations. Investors and potential investors were encouraged to invest in the companies with either cash or Bitcoin. In reality, the assets were used to repay other investors or simply stolen, including by Golden, Aggesen and Egerton. Golden maintained exclusive access to the Bitcoin and often siphoned Bitcoin funds off the top before paying any investors. The companies collapsed shortly after receiving the investors’ assets, without having engaged in trading activity. In total, EmpowerCoin, ECoinPlus and Jet-Coin received more than $40 million from investors.
The indictment further alleges that, from July 2017 to the present, Golden, Aggesen and White conspired to obstruct a Federal Trade Commission (“FTC”) investigation and a federal criminal grand jury investigation into the fraudulent schemes. Golden, Aggesen and White allegedly destroyed evidence, and White, on Aggesen’s behalf, provided false and misleading information to the FTC and in response to a federal grand jury subpoena.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face up to 20 years in prison.
If you were an EmpowerCoin.com, ECoinPlus.com and/or Jet-Coin.com customer and would like to file a complaint, please visit www.iC3.gov. Please reference “EmpowerCoin,” “ECoinPlus” or “Jet-Coin” in your complaint.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Alixandra E. Smith, Catherine M. Mirabile and Nick M. Axelrod are in charge of the prosecution, with the assistance of Assistant United States Attorney Claire Kedeshian of the Office’s Asset Recovery Section who is handling forfeiture matters.
The Defendants:
DWAYNE GOLDEN
Age: 57
Harrisburg, PennsylvaniaGREGORY AGGESEN
Age: 58
Stanfordville, New YorkMARQUIS DEMACKING EGERTON (also known as “Mardy Eger”)
Age: 58
Washington, North CarolinaWILLIAM WHITE
Age: 54
Harrisburg, PennsylvaniaE.D.N.Y. Docket No. 21-CR-88 (MKB)
Owner of Rust Rare Coin Sentenced to 19 Years in Prison for Running Fraudulent Silver Trading ProgramRead the Press Release
SALT LAKE CITY – Gaylen Dean Rust, 62, of Layton, was sentenced to 19 years in federal prison by a U.S. District Court Judge on Tuesday, after being convicted of conspiracy to commit wire fraud, conspiracy to commit money laundering, and securities fraud. Rust was ordered to pay over $153 million dollars to the 568 victims of his criminal scheme, and an order of forfeiture in the same amount was entered against Rust for all money and assets owned by Rust and traceable to the criminal scheme. Rust has been ordered to report to federal prison on Wednesday, March 9, 2022.
In the plea agreement with federal prosecutors, Rust admitted that he was the owner and operator of Rust Rare Coin, Inc. (RRC) in Utah, from 2002 until 2018, and that he had previously worked as the manager of the business. Rust admitted that beginning in 2008, he began a scheme to defraud investors by inducing them to invest in RRC's fraudulent “silver trading program.” However, Rust’s “silver trading program” operated as a Ponzi scheme. Rust admitted to selling investments in the fraudulent program to approximately 500 investors located throughout the United States in amounts totaling $225 million dollars. Rust admitted that he paid out money from later investors to earlier investors to create the impression that his “silver trading program” was profitable and to keep the scheme operating.
Rust carried out the fraudulent scheme by explaining to victims that RRC's silver trading program was a lucrative investment that involved the buying and selling of actual silver bullion; that 100% of investor funds would be used to buy actual silver; that all the silver bullion purchased would be stored at Brinks Global Services in Salt Lake City or Los Angeles; and, that RRC was storing almost $80 million dollars of silver bullion at Brinks.
Rust further told investors that all of the silver trades were conducted through an RRC account at HSBC Bank; that profit generated in trades would be used to repurchase a larger amount of silver at a lower price, thereby continually increasing the amount of silver for investors; and, that by using algorithms, the silver trading program had never experienced a losing month, much less a losing year, and that the worst year had generated a 12 percent return, and that the average rate of return was 20 percent to 25 percent per year.
However, Rust had little to no silver stored at Brinks; Rust had not stored silver bullion at Brinks since 2016, and no meaningful investor funds were ever used to purchase silver bullion during the scheme; RRC had no mechanism to generate meaningful returns on silver trading; and HSBC Bank had never maintained an account on behalf of RRC. Rust diverted nearly all investor funds to other businesses, personal uses, and to making payments to previous investors. Rust also admitted that in January of 2016, he opened three personal accounts at Zions bank and used these accounts to launder approximately $18 million dollars from the fraudulent trading scheme.
“We hope that a 19-year prison sentence and an order to pay over $153 million dollars sends a message to the community that the U.S. Attorney’s Office is committed to prosecuting financial crimes,” said United States Attorney Andrea T. Martinez. “Those who defraud their family, friends, and associates out of their hard-earned savings will be held accountable. Unfortunately, the reality of these cases is that victims’ money is nearly always spent by the perpetrator of the crime or paid out to other victims. This should be a stark reminder to all Utahns that it is imperative to vet your financial advisor or anyone who attempts to persuade you to invest in their business or financial dealings.”
“Gaylen Rust betrayed the trust of his hundreds of clients, many of them his own family, friends and members of his church. For years, he lived his life on their hard-earned money,” said Special Agent in Charge Dennis Rice of the Salt Lake City FBI. “Mr. Rust’s deceit has now caught up to him and he will face the consequences for his fraudulent actions. The FBI encourages anyone looking to invest to do their due diligence and be wary of promises of investment returns that seem too good to be true.”
“IRS-Criminal Investigation specializes in finding and exposing financial fraud. Our agents working with our law enforcement partners continually strive to put a stop to this kind of fraud and send a message to those who may be considering defrauding others,” said IRS-Criminal Investigation Special Agent in Charge Albert Childress. “This case was a significant fraud in the community and left an impact affecting hundreds of lives. Through the efforts of our agents combined with those of our law enforcement partners, we have been able to bring some measure of justice.”
“The actions of Mr. Rust represent some of the biggest consumer harm we’ve seen,” said Department of Commerce Executive Director Margaret Busse. “Ponzi schemes absolutely destroy trust in the investment industry. Without trust, individuals aren’t willing to participate in future opportunities and that affects our entire economy.”
"We're proud to have been able to partner with the U.S. Attorney's office and other agencies in uncovering this awful scam,” said Division of Securities Director Jason Sterzer. “The most common sign that an investment is a scam is an offer of high returns with little or no risk. Education remains the best defense against securities fraud.
Assistant U.S. Attorneys Jacob Strain, Carl LeSueur, and Tyler Murray in Salt Lake City prosecuted the case. Securities Investigator Elizabeth Blaylock of the Utah Division of Securities and Special Agents Jason Henrikson and James Malpede (retired) of the FBI investigated the case along with agents on the FBI’s White Collar Task Force, including Special Agent Jeff Kirkwood of IRS-Criminal Investigation. Related civil cases were filed by the Securities Exchange Commission, the Commodity Futures Trading Commission, and the Utah Attorney General’s Office.
Out of state man pleads guilty to possessing over 53 kilos of methRead the Press Release
LAREDO, Texas – A 31-year-old Phoenix, Arizona, man has admitted he attempted to bring $242,325 worth of narcotics into the country via a Laredo-area port of entry, announced U.S. Attorney Jennifer B. Lowery.
Jose Correjudo-Trinidad, 31, pleaded guilty to possession with intent to distribute 53.5 kilograms of meth.
As part of his plea, Correjudo-Trinidad admitted that on Dec. 15, 2021, he attempted to drive a vehicle through the Border Patrol (BP) checkpoint located on Texas State Highway 16 near Hebbronville. At that time, authorities searched inside his trunk and found a large speaker box, which Correjudo-Trinidad admitted did not work. Further inspection yielded approximately 14.7 kilograms of crystal meth, 39.15 kilograms of liquid meth and nearly 300 rounds of ammunition.
Correjudo-Trinidad admitted he had been recruited to transport the drugs from McAllen to Dallas in exchange for $12,000. He purchased the ammunition for himself and planned on smuggling it to Mexico.
The combined meth had a total weight of 53.5 kilograms with an approximate value of $242,325.
Sentencing will be set for a later date before U.S. District Judge Marina Garcia Marmolejo. At that time, Correjudo-Trinidad faces up to life in prison and a possible $10 million fine.
He has been and will remain in custody pending that hearing.
The Drug Enforcement Administration conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney Paul A. Harrison is prosecuting the case.
Northborough Nurse Pleads Guilty to Tampering with Liquid MorphineRead the Press Release
BOSTON – A registered nurse pleaded guilty today in federal court in Worcester in connection with tampering with morphine prescribed to a nursing home resident in her care.
Gwen Rider, 42, of Northborough, pleaded guilty to one count of tampering with a consumer product and one count of obtaining a controlled substance by fraud and deception. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Aug. 15, 2022. Rider was arrested and indicted in April 2021.
Rider was a registered nurse employed by a Worcester County nursing home. From approximately 11:00 p.m. on Nov. 6, 2020 until 7:00 a.m. the following morning, Rider was on duty in a unit specializing in care for residents suffering from dementia. During her shift and while entrusted with the care of a resident suffering from dementia, Rider tampered with a bottle of morphine sulfate prescribed to the patient by removing some of the morphine and adding water to the remaining supply. Morphine sulfate is a Schedule II controlled substance under federal law. A nurse on a subsequent shift administered the adulterated morphine to a patient before the tampering was discovered.
The charge of tampering with a consumer product provides for a sentence up to 10 years in prison, up to three years of supervised release and a fine of $250,000. The charge of obtaining a controlled substance by fraud and deception provides for a sentence of up to four years in prison, up to one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Rachael S. Rollins; Jeffrey Ebersole, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations; Margret R. Cooke, Commissioner of the Massachusetts Department of Public Health; and Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General made the announcement today. Valuable assistance was also provided by the Northborough Police Department. Assistant U.S. Attorney John T. Mulcahy and Kristen M. Noto of Rollins’ Criminal Division are prosecuting the case.
New York Man Arrested at the Cyril E. King Airport with Carry-On Suitcase Containing 3.8 Kilograms of Marijuana Pleads Guilty in Federal CourtRead the Press Release
ST. THOMAS, USVI – United States Attorney Gretchen C.F. Shappert announced today that Christopher Turnbull of New York pleaded guilty Tuesday, March 8, 2022, to possession with intent to distribute marijuana.
According to court documents, U.S. Customs and Border Protection (CBP) officers were conducting screenings of arriving passengers at the Cyril E. King Airport on November 11, 2020, when Turnbull disembarked an American Airlines flight from Charlotte, NC. He was selected for inspection. Upon searching a black carry-on suitcase in Turnbull’s possession, officers discovered approximately eight different sealed packages containing a green leafy substance that tested positive for the presence of marijuana. The packages weighed approximately 5 kilograms. A laboratory exam confirmed the presence of approximately 3.8 kilograms of marijuana.
Turnbull, who originally departed from the Ronald Reagan National Airport in Washington, D.C., claimed that while he was waiting at the gate for his connecting flight in Charlotte, N.C, an unknown man approached him and offered him $15,000 to transport the black carry-on suitcase to St. Thomas.
Turnbull is scheduled to be sentenced by a federal district court judge on June 23, 2022.
The Department of Homeland Security-Homeland Security Investigations and CBP investigated the case. It is being prosecuted by Assistant United States Attorney Kyle Payne and is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
New Orleans Man Indicted for Violations of the Federal Gun Control Act, the Controlled Substances Act, and Possession of Body ArmorRead the Press Release
NEW ORLEANS, LOUISIANA – SIDNEY SIMON, age 37, a resident of New Orleans, was charged on March 4, 2022 in a five-count indictment by a federal grand jury for being a felon in possession of a firearm, possessing a firearm after being convicted of a misdemeanor crime of domestic violence, possessing body armor after being convicted of a violent felony, possessing with the intent to distribute marijuana, and possessing a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Duane A. Evans.
If convicted of being a felon in possession of a firearm, SIMON faces a maximum term of imprisonment of ten (10) years, a fine of up to $250,000, and up to three (3) years of supervised release following any term of imprisonment.
If convicted of possessing a firearm after being convicted of a misdemeanor crime of domestic violence, SIMON faces a maximum term of imprisonment of ten (10) years, a fine of up to $250,000, and up to three (3) years of supervised release following any term of imprisonment.
If convicted of possessing body armor after being convicted of a violent felony, SIMON faces a maximum term of imprisonment of three (3) years, a fine of up to $250,000, and up to one (1) year of supervised release following any term of imprisonment.
If convicted of possessing with the intent to distribute marijuana, SIMON faces a maximum term of imprisonment of five (5) years, a fine of up to $1,000,000, and at least two (2) years of supervised release following any term of imprisonment.
If convicted of possessing a firearm in furtherance of a drug trafficking crime, SIMON faces a minimum term of imprisonment of five (5) years, and a maximum term of imprisonment of life, to be served consecutively to all other charges, a fine of up to $250,000, and up to five (5) years of supervised release following any term of imprisonment. SIMON must also pay a $100 mandatory special assessment fee for each charge.
U. S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
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.
The case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. The case is being prosecuted by Assistant U. S. Attorney Mike Trummel.
New Mexico Man Sentenced for Travel with Intent to Engage in Illicit Sexual Conduct with MinorRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Matthew Engelhardt, 33, of Roswell, New Mexico, was sentenced today by U.S. District Judge James Peterson to 51 months in prison for traveling from New Mexico to Wisconsin with the intent to engage in illicit sexual conduct with minor. This term of imprisonment is to be followed by 20 years of supervised release. Engelhardt pleaded guilty to this charge on December 6, 2021.
In April 2019, an undercover officer posing as a 14-year-old girl received a Facebook Messenger message from Engelhardt asking her to be his girlfriend. Later in the initial conversation, Engelhardt asked “the girl” whether she would have sex with him.
Over the next two years, conversations continued on and off. In April 2021, Engelhardt told the undercover persona that he would be coming to Wisconsin to visit his sister at the end of June and asked if she would see him. The two arranged to meet at a retail store in Janesville, Wisconsin to have sex in the bathroom.
On June 30, 2021, undercover officers saw Engelhardt leave a motel in Janesville and run to the retail store where he was arrested. Agents found a condom in his pocket.
Judge Peterson indicated that a sentence of more than four years was sufficient to ensure the defendant knew that what he did was wrong.
The charge against Engelhardt was the result of an investigation conducted by the Wisconsin Department of Justice Division of Criminal Investigation, Janesville Police Department, and U.S. Immigration and Custom Enforcement’s Homeland Security Investigations. Assistant U.S. Attorney Elizabeth Altman prosecuted this case.
New Jersey Man Pleads Guilty to Making Threatening Interstate Communications to Black Maryland Woman and Her FamilyRead the Press Release
Michael Marotta, 26, of Sewell, New Jersey, pleaded guilty today to making threatening interstate communications. Marotta admitted that he used an anonymizing text message service to threaten physical harm to a Black woman and her family in Maryland.
According to Marotta’s plea agreement, on April 14, 2020, Marotta used an anonymizing mobile phone application to send a threatening message to a Black Maryland woman. In the message, Marotta used racial epithets to describe the Maryland woman and her family, and he threatened to come to their home and do physical harm. As detailed in the plea agreement, Marotta wrote, among other things, “I know where you live now, I’m coming to rape your family” and “eat my bullets.” As detailed in his plea agreement, Marotta claims he does not know the recipient-victim of the message, nor does the recipient-victim know Marotta.
“The vile threats issued by this defendant have no place in civilized society,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “The department, and specifically the Civil Rights Division, will use all tools at our disposal to ensure that people who interfere with the rights of others will be brought to justice.”
“We at the U.S. Attorney’s Office take seriously our obligation to protect the civil rights of all individuals,” said U.S. Attorney Erek L. Barron of the District of Maryland. “We will not tolerate racially based threats and will prosecute such crimes to the fullest extent of the law.”
“The FBI takes threats of violence seriously,” said Special Agent in Charge Thomas J. Sobocinksi of the FBI’s Baltimore Field Office. “We encourage anyone who believes their civil rights were violated to report it to their local police department or FBI field office.”
Marotta faces a maximum sentence of five years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge Stephanie A. Gallagher has scheduled sentencing for Marotta on May 25.
Assistant U.S. Attorney Michael Cunningham the District of Maryland and Trial Attorney Thomas Johnson of the Justice Department’s Civil Rights Division are prosecuting the case.
New Jersey Man Pleads Guilty to Making Threatening Interstate Communications to Black Maryland Woman and Her FamilyRead the Press Release
Baltimore, Maryland – Michael Marotta, age 26, of Sewell, New Jersey, pleaded guilty today to making threatening interstate communications. Marotta admitted that he used an anonymizing text message service to threaten physical harm to a Black woman and her family in Maryland.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Assistant Attorney General Kristen M. Clarke of the U.S. Department of Justice’s Civil Rights Division; and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
“We at the U.S. Attorney’s Office take seriously our obligation to protect the civil rights of all individuals,” said United States Attorney for the District of Maryland Erek L. Barron. “We will not tolerate racially based threats and will prosecute such crimes to the fullest extent of the law.”
“The vile threats issued by this defendant have no place in civilized society,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “The department, and specifically the Civil Rights Division, will use all tools at our disposal to ensure that people who interfere with the rights of others will be brought to justice.”
“The FBI takes threats of violence seriously,” said Thomas J. Sobocinksi, Special Agent in Charge of the FBI Baltimore Field Office. “We encourage anyone who believes their civil rights were violated to report it to their local police department or FBI field office.”
According to Marotta’s plea agreement, on April 14, 2020, Marotta used an anonymizing mobile phone application, to send a threatening message to a Black Maryland woman. In the message, Marotta used racial epithets to describe the Maryland woman and her family, and he threatened to come to their home and do physical harm. As detailed in the plea agreement, Marotta wrote, among other things, that “I know where you live now, I’m coming to rape your family” and “eat my bullets.” As detailed in his plea agreement, Marotta claims he does not know the recipient-victim of the message, nor does the recipient-victim know Marotta.
Marotta faces a maximum sentence of five years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge Stephanie A. Gallagher has scheduled sentencing for Marotta on May 26, 2022.
United States Attorney Erek L. Barron and Assistant Attorney General Kristen M. Clarke commended the FBI for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Michael Cunningham and Trial Attorney Thomas Johnson of the Justice Department’s Civil Rights Division, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office and its Civil Rights Unit, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/civil-rights.
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New Jersey Doctor Convicted of Multimillion-Dollar Health Care FraudRead the Press Release
A federal jury convicted a New Jersey rheumatologist today for defrauding Medicare and other health insurance programs by billing for services that patients never received.
According to court documents and evidence presented at trial, Alice Chu, 64, of Fort Lee, owned and operated a rheumatology practice in Clifton. From 2010 through 2019, Chu billed Medicare and other health insurance programs for expensive infusion medication that her practice never purchased. Chu also fraudulently billed millions of dollars for allergy services that patients never needed or received.
Chu was convicted of one count of conspiracy to commit health care fraud and five counts of health care fraud. She is scheduled to be sentenced on July 14 and faces a maximum penalty of 10 years in prison for each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Special Agent in Charge George M. Crouch Jr. of the FBI’s Newark Field Office; Special Agent in Charge Scott J. Lampert of the Department of Health and Human Service Office of the Inspector General (HHS-OIG); and Special Agent in Charge Patrick J. Hegarty of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DOD-OIG) made the announcement.
The FBI, HHS-OIG and DOD-OIG investigated the case.
Acting Assistant Chief Rebecca Yuan and Trial Attorney Nicholas Peone of the Justice Department’s Fraud Section are prosecuting the case.
New Haven Residents Charged with Trafficking Cocaine and FentanylRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that WILLIE FRANCO, 33, and DANIELLA FOX, 31, both of New Haven, were arrested yesterday and charged with conspiracy to possess with intent to distribute cocaine and fentanyl.
As alleged in a criminal complaint, the U.S. Postal Inspection Service’s Narcotics and Bulk Cash Trafficking Task Force and Drug Enforcement Administration have been investigating Franco and Fox’s narcotics trafficking activities since 2021. On March 2, 2022, investigators intercepted a USPS parcel destined for an address in East Haven associated with Franco and Fox. A court-authorized search of the parcel revealed approximately one kilogram of cocaine and one kilogram of fentanyl. Investigators also identified other suspicious parcels, which originated in Arizona and California, that had been mailed to the address, and another address associated with Franco and Fox, since July 2021.
On March 7, 2022, law enforcement made a controlled delivery of the intercepted parcel to the East Haven address. Franco and Fox, who were waiting in a car that was parked on the street, were arrested after Fox retrieved the package. A subsequent search of Franco and Fox’s New Haven residence resulted in the seizure of approximately one kilogram of fentanyl, a quantity of crack cocaine, digital scales and other narcotics packaging paraphernalia, a loaded Glock .40 pistol with an obliterated serial number, a drum extended magazine for a high-capacity rifle, a bulletproof vest, ammunition, and more than $300,000 in cash.
Franco and Fox appeared yesterday before U.S. Magistrate Judge Robert M. Spector in New Haven and were ordered detained.
If convicted of the charge, Franco and Fox face a maximum term of imprisonment of 20 years.
U.S. Attorney Boyle stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This ongoing investigation is being conducted by the U.S. Postal Inspection Service’s Narcotics and Bulk Cash Trafficking Task Force and the Drug Enforcement Administration, with assistance from the New Haven Police Department, East Haven Police Department and Connecticut State Police. The Task Force includes members from the U.S. Postal Inspection Service, the U.S. Postal Service – Office of the Inspector General, the Connecticut Army National Guard, and the Hartford, New Britain, Meriden and Town of Groton Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Tara E. Levens and Konstantin Lantsman.
New Hampshire Man Pleads Guilty to Drug and Firearm OffensesRead the Press Release
BOSTON – A New Hampshire man pleaded guilty today in federal court in Boston to drug and firearm offenses.
Brandon Ortiz, 25, of Manchester, N.H., pleaded guilty to possession with intent to distribute fentanyl and cocaine, and one count of possession of a firearm after being convicted of a misdemeanor crime of domestic violence. U.S. District Court Judge Richard G. Stearns scheduled sentencing for July 27, 2022.
On June 6, 2019, law enforcement responded to a 911 call about a motor vehicle incident involving a firearm. During the investigation, officers seized fentanyl, cocaine, a loaded semi-automatic pistol and ammunition from Ortiz. Ortiz is prohibited from possessing a firearm and ammunition due to a prior 2018 domestic violence conviction.
The charge of possession with intent to distribute fentanyl and cocaine provides for a sentence of up to 20 years in prison, at least three years of supervised release and a fine of $1 million. The charge of possession of a firearm after being convicted of a misdemeanor crime of domestic violence provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Rachael S. Rollins; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Essex County District Attorney Jonathan W. Blodgett; and Lawrence Police Chief Roy P. Vasque made the announcement. Assistant U.S. Attorney Philip C. Cheng of Rollins’ Organized Crime & Gang Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Nampa Man Pleads Guilty to Federal Firearms ViolationRead the Press Release
BOISE – A Nampa man pleaded guilty to unlawful possession of a firearm.
According to court records, on June 29, 2021, during arrest on an outstanding warrant, David Valdez, 40, of Nampa, was found in possession of a loaded 9mm caliber pistol. At the time of the arrest, Valdez was prohibited from possessing firearms due to a 2018 felony conviction for possession of a controlled substance.
Valdez is scheduled to be sentenced on June 1, 2022. He faces a maximum penalty of ten years in federal prison, up to three years of supervised release, and a maximum fine of $250,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the cooperative efforts of the Middleton Police Department and the Treasure Valley Metro Violent Crimes Task Force, which led to charges. The Task Force is comprised of federal, state, and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Ada County Sheriff’s Office; Boise Police Department; Caldwell Police Department; Canyon County Sheriff’s Office; Meridian Police Department; Nampa Police Department; and Idaho Department of Correction.
This case was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit www.treasurevalleypartners.org.
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Mountain Home Man Sentenced to over 24 Years for Distributing and Possessing Child PornographyRead the Press Release
BOISE – A Mountain Home man was sentenced to 292 months in federal prison for distribution and possession of child pornography.
According to court records, the Federal Bureau of Investigation (FBI) determined that Matthew Eric Cairns, 39, of Mountain Home, was a member of several social media groups where child pornography was being discussed or shared. The FBI determined that Cairns was the administrator of one of the groups, which gave him the authority to create rules of conduct for the group, remove members from the group, and facilitate discussions. While participating in one of the groups, Cairns shared a link to a file folder containing numerous files of child pornography, including a video depicting a toddler engaged in sexually explicit conduct.
The FBI obtained a federal search warrant for Cairns’ residence in Mountain Home to search for evidence of the possession of child pornography. When the FBI executed the search warrant, Cairns attempted to conceal his cellphone in an air conditioning vent in his bedroom. The FBI seized the cellphone and located over 500 images and 48 videos of child pornography. The FBI also located evidence that Cairns had been communicating online with a 10-year-old child and had requested that she send him explicit videos of herself. The FBI located several videos of child pornography depicting the 10-year-old child on Cairns’ cellphone.
Senior U.S. District Judge B. Lynn Winmill also ordered Cairns to serve ten years of supervised release following his prison sentence and to pay $18,000 in restitution to victims in the images he possessed. Judge Winmill also ordered Cairns to forfeit the cellphone that was used to commit the offense. As a result of the conviction, Cairns will be required to register as a sex offender.
U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the cooperative efforts of the FBI, United States Marshals Service, and the Mountain Home Police Department, which led to charges. “The collaboration between city and federal partners in this case shows our joint commitment to protecting Idaho’s children and holding predators accountable to the full extent of the law,” said Gonzalez.
"Our children should be protected, not preyed on by criminals like Matthew Cairn," said Special Agent in Charge Dennis Rice of the Salt Lake City FBI. "He not only helped proliferate this deplorable crime but subjected young victims to emotional and physical harm that they may never get over in their lifetime. The well-deserved sentence should send a strong message to those who sexually exploit children that the FBI and our law enforcement partners will track down and prosecute these criminals to fullest extent."
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Mission Woman Sentenced for Assaulting a Federal OfficerRead the Press Release
United States Attorney Dennis R. Holmes announced that a Mission, South Dakota, woman convicted of Assaulting, Resisting, and Impeding a Federal Officer was sentenced on March 7, 2022, by U.S. Magistrate Judge Mark A. Moreno.
Carlianna Erickson, a/k/a Carlianna Erickson-Redday, age 25, was sentenced to nine months in federal prison, followed by one year of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $25.
Erickson was indicted by a federal grand jury on June 8, 2021. She pled guilty on January 31, 2022.
The conviction stemmed from an incident that occurred on May 4, 2021, in Todd County, South Dakota. On that date, Erickson assaulted a corrections officer at the Rosebud Sioux Tribe Adult Correctional Facility.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Erickson was immediately turned over to the custody of the U.S. Marshals Service.
Minneapolis Man Sentenced to Prison for Impersonating an FBI Agent, Lying to Victim about a Fake Terrorism InvestigationRead the Press Release
MINNEAPOLIS – A Minneapolis man has been sentenced to 10 months in prison followed by one year of supervised release for impersonating a federal officer. Acting U.S. Attorney Charles J. Kovats made the announcement after U.S. District Judge Eric C. Tostrud sentenced the defendant.
According to court documents, on July 24, 2017, Bernard Holmes, 67, pretended to be a Special Agent of the Federal Bureau of Investigation (FBI). Holmes spoofed his telephone number to make it appear that he was calling his victim from the FBI’s Minneapolis Field Office. Holmes provided the victim with a fake name, “FBI Special Agent John Tidwell,” and a fake FBI badge number. Holmes falsely stated that he was investigating terrorism-related conduct involving the victim's household, including terrorism evidence that supposedly originated from a computer and IP address at the victim's house. In his fake capacity, Holmes asked questions of the victim using highly charged words, like “ISIS,” “terroristic,” and the “Patriot Act,” in furtherance of the supposed terrorism investigation.
On October 20, 2021, Holmes pleaded guilty to one count of impersonating a federal officer.
This case was the result of an investigation conducted by the FBI and the Bloomington Police Department.
Assistant U.S. Attorney Matthew S. Ebert prosecuted the case.
Memphis Man Pleads Guilty to Calling-in a Bomb Threat and Being a Felon in Possession of a FirearmRead the Press Release
Memphis, TN- Christopher Cobb, 33, pled guilty to communicating a threat against a federal agency and being a felon in possession of a firearm. Joseph C. Murphy Jr., United States Attorney, announced the guilty plea today.
According to information presented in court, on the afternoon of April 22, 2021, Christopher Cobb called the United States Social Security Administration ("SSA") office in Memphis, Tennessee to inquire about the status of his claim. Cobb became irate when the official informed him that his claim had been denied and he would need to file an appeal. The call was terminated by the SSA when Cobb began irate and began using profanity. Several minutes later, Cobb called back and threatened to "blow up" the social security building the next day.
A search of the defendant’s home revealed a M-1 rifle and ammunition. After being advised of and waiving his Miranda rights, Cobb admitted to making the threat and to also possessing the M-1 rifle and ammunition.
Cobb was previously convicted for aggravated assault, convicted felon in possession of a firearm, failure to appear in a felony case and robbery. As a result of his prior felony convictions, Cobb is prohibited by federal law from possessing firearms and ammunition.
On March 2, 2022, Cobb pled guilty to communicating a threat and to being a felon in possession of a firearm. Sentencing is set for June 9, 2022, before United States District Judge Thomas L. Parker where he faces up to ten years in federal prison. There is no parole in the federal system.
"The safety of our citizens and communities is a top priority of HSI and threats against government facilities must be taken seriously," said HSI Nashville Special Agent in Charge Jerry C. Templet, Jr. "The investigative efforts of our agents in this case, working with their law enforcement partners, resulted in a guilty plea by this convicted felon and seizure of his illegally possessed firearms and ammunition."
This case was investigated by the Social Security Administration Office of the Inspector General and Homeland Security Investigations.
Assistant United States Attorneys Greg Wagner and Steven Hall are prosecuting this case on behalf of the government.
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Medical Services Contractor Pays $930,000 to Settle False Claims Act Allegations Relating to Medical Services Contracts at State Department and Air Force Facilities in Iraq and AfghanistanRead the Press Release
Comprehensive Health Services LLC (CHS), located in Cape Canaveral, Florida, has agreed to pay $930,000 to resolve allegations that it violated the False Claims Act by falsely representing to the State Department and the Air Force that it complied with contract requirements relating to the provision of medical services at State Department and Air Force facilities in Iraq and Afghanistan. This is the Department of Justice’s first resolution of a False Claims Act case involving cyber fraud since the launch of the department’s Civil Cyber-Fraud Initiative, which aims to combine the department’s expertise in civil fraud enforcement, government procurement and cybersecurity to combat new and emerging cyber threats to the security of sensitive information and critical systems.
CHS is a provider of global medical services that contracted to provide medical support services at government-run facilities in Iraq and Afghanistan. Under one of the contracts, CHS submitted claims to the State Department for the cost of a secure electronic medical record (EMR) system to store all patients’ medical records, including the confidential identifying information of United States service members, diplomats, officials and contractors working and receiving medical care in Iraq. The United States alleged that, between 2012 and 2019, CHS failed to disclose to the State Department that it had not consistently stored patients’ medical records on a secure EMR system. When CHS staff scanned medical records for the EMR system, CHS staff saved and left scanned copies of some records on an internal network drive, which was accessible to non-clinical staff. Even after staff raised concerns about the privacy of protected medical information, CHS did not take adequate steps to store the information exclusively on the EMR system.
The State Department and Air Force contracts also required CHS to provide medical supplies, including controlled substances, that were approved by the U.S. Food and Drug Administration (FDA) or European Medicines Agency (EMA) and manufactured in accordance with federal quality standards. The United States alleged that, between 2012 and 2019, CHS falsely represented to the State Department and Air Force that certain substances provided under those contracts were approved by the FDA or EMA. CHS lacked a Drug Enforcement Agency license necessary for exporting controlled substances from the United States to Iraq. CHS obtained controlled substances by having CHS physicians based in Florida send letters requesting that a South African physician prescribe the controlled substances. A South African shipping company then received controlled substances that were not approved by the FDA or EMA and sent them to CHS in Iraq, where CHS supplied the unapproved controlled substances to patients under the State Department and Air Force contracts.
“This settlement demonstrates the department’s commitment to use its civil enforcement tools to pursue government contractors that fail to follow required cybersecurity standards, particularly when they put confidential medical records at risk,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to ensure that those who do business with the government comply with their contractual obligations, including those requiring the protection of sensitive government information.”
“Protecting the health and safety of servicemembers, diplomats, and other government employees working abroad is of utmost importance,” said U.S. Attorney Breon Peace for the Eastern District of New York. “The defendants were required to maintain personal health information securely and provide only approved pharmaceuticals to patients. This settlement serves notice to federal contractors that they will be held accountable for conduct that puts private medical records and patient safety at risk. We are grateful for the support of our colleagues in the Middle District of Florida, the State Department and the Air Force for their assistance in investigating these important claims.”
“Government contractors should never disregard their obligations when providing medical care to members of the military,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “We thank our colleagues in the Eastern District of New York, as well as the investigative agencies who supported this effort, for their steadfast pursuit of this important investigation.”
“This settlement demonstrates the commitment State Department, Office of Inspector General, Special Agents have to protect the safety, well-being, and personal information of State Department personnel,” said Special Agent in Charge Elisabeth “Elli” Kaminsky of the U.S. Department of State OIG, Office of Investigations. “Our hope is that this outcome will send a clear message that cutting corners on State Department contracts has significant consequences.”
“The Department of the Air Force Office of Special Investigations (OSI) is undeterred in its approach to hunting down fraud within our Foreign Military Sales programs and ensuring the offenders are held accountable,” said Special Agent in Charge Nicholas J. Groesbeck of OSI Procurement Fraud Detachment 4, Wright-Patterson AFB, OH. “We applaud the complainant for coming forward, which allowed our joint partners to protect the governments procurement process and carry out the warfighting mission.”
The civil settlement includes the resolution of two actions brought under the qui tam or whistleblower provisions of the False Claims Act against CHS. Under the qui tam provisions of the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of the settlement if the government takes over the case and reaches a monetary agreement with the defendant. The qui tam cases are captioned United States ex rel. Lawler v. Comprehensive Health Servs., Inc. et al., Case No. 20-cv-698 (E.D.N.Y.), and United States ex rel. Watkins et al. v. CHS Middle East, LLC, Case No. 17-cv-4319 (E.D.N.Y.).
The investigation and resolution of this matter illustrates the government’s emphasis on combatting cyber-fraud. On October 6, 2021, the Deputy Attorney General announced the department’s Civil Cyber-Fraud Initiative, which aims to hold accountable entities or individuals that put U.S information or systems at risk by knowingly providing deficient cybersecurity products or services, knowingly misrepresenting their cybersecurity practices or protocols, or knowingly violating obligations to monitor and report cybersecurity incidents and breaches. Information on how to report cyber fraud can be found here.
The resolutions obtained in this matter were the result of a coordinated effort between the Fraud Section of the Commercial Litigation Branch of the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Eastern District of New York, the U.S. Attorney’s Office for the Middle District of Florida, the U.S. Department of State Office of Inspector General and the U.S. Air Force.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Medical Services Contractor Pays $930,000 to Settle False Claims Act Allegations Relating to Medical Services Contracts at State Department and Air Force Facilities in Iraq and AfghanistanRead the Press Release
Comprehensive Health Services LLC (CHS), located in Cape Canaveral, Florida, has agreed to pay $930,000 to resolve allegations that it violated the False Claims Act by falsely representing to the State Department and the Air Force that it complied with contract requirements relating to the provision of medical services at State Department and Air Force facilities in Iraq and Afghanistan. This is the Department of Justice’s first resolution of a False Claims Act case involving cyber fraud since the launch of the department’s Civil Cyber-Fraud Initiative, which aims to combine the department’s expertise in civil fraud enforcement, government procurement and cybersecurity to combat new and emerging cyber threats to the security of sensitive information and critical systems.
CHS is a provider of global medical services that contracted to provide medical support services at government-run facilities in Iraq and Afghanistan. Under one of the contracts, CHS submitted claims to the State Department for the cost of a secure electronic medical record (EMR) system to store all patients’ medical records, including the confidential identifying information of United States service members, diplomats, officials and contractors working and receiving medical care in Iraq. The United States alleged that, between 2012 and 2019, CHS failed to disclose to the State Department that it had not consistently stored patients’ medical records on a secure EMR system. When CHS staff scanned medical records for the EMR system, CHS staff saved and left scanned copies of some records on an internal network drive, which was accessible to non-clinical staff. Even after staff raised concerns about the privacy of protected medical information, CHS did not take adequate steps to store the information exclusively on the EMR system.
The State Department and Air Force contracts also required CHS to provide medical supplies, including controlled substances, that were approved by the U.S. Food and Drug Administration (FDA) or European Medicines Agency (EMA) and manufactured in accordance with federal quality standards. The United States alleged that, between 2012 and 2019, CHS falsely represented to the State Department and Air Force that certain substances provided under those contracts were approved by the FDA or EMA. CHS lacked a Drug Enforcement Agency license necessary for exporting controlled substances from the United States to Iraq. CHS obtained controlled substances by having CHS physicians based in Florida send letters requesting that a South African physician prescribe the controlled substances. A South African shipping company then received controlled substances that were not approved by the FDA or EMA and sent them to CHS in Iraq, where CHS supplied the unapproved controlled substances to patients under the State Department and Air Force contracts.
“This settlement demonstrates the department’s commitment to use its civil enforcement tools to pursue government contractors that fail to follow required cybersecurity standards, particularly when they put confidential medical records at risk,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to ensure that those who do business with the government comply with their contractual obligations, including those requiring the protection of sensitive government information.”
“Protecting the health and safety of servicemembers, diplomats, and other government employees working abroad is of utmost importance,” said U.S. Attorney Breon Peace for the Eastern District of New York. “The defendants were required to maintain personal health information securely and provide only approved pharmaceuticals to patients. This settlement serves notice to federal contractors that they will be held accountable for conduct that puts private medical records and patient safety at risk. We are grateful for the support of our colleagues in the Middle District of Florida, the State Department and the Air Force for their assistance in investigating these important claims.”
“Government contractors should never disregard their obligations when providing medical care to members of the military,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “We thank our colleagues in the Eastern District of New York, as well as the investigative agencies who supported this effort, for their steadfast pursuit of this important investigation.”
“This settlement demonstrates the commitment State Department, Office of Inspector General, Special Agents have to protect the safety, well-being, and personal information of State Department personnel,” said Special Agent in Charge Elisabeth “Elli” Kaminsky of the U.S. Department of State OIG, Office of Investigations. “Our hope is that this outcome will send a clear message that cutting corners on State Department contracts has significant consequences.”
“The Department of the Air Force Office of Special Investigations (OSI) is undeterred in its approach to hunting down fraud within our Foreign Military Sales programs and ensuring the offenders are held accountable,” said Special Agent in Charge Nicholas J. Groesbeck of OSI Procurement Fraud Detachment 4, Wright-Patterson AFB, OH. “We applaud the complainant for coming forward, which allowed our joint partners to protect the governments procurement process and carry out the warfighting mission.”
The civil settlement includes the resolution of two actions brought under the qui tam or whistleblower provisions of the False Claims Act against CHS. Under the qui tam provisions of the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of the settlement if the government takes over the case and reaches a monetary agreement with the defendant. The qui tam cases are captioned United States ex rel. Lawler v. Comprehensive Health Servs., Inc. et al., Case No. 20-cv-698 (E.D.N.Y.), and United States ex rel. Watkins et al. v. CHS Middle East, LLC, Case No. 17-cv-4319 (E.D.N.Y.).
The investigation and resolution of this matter illustrates the government’s emphasis on combatting cyber-fraud. On October 6, 2021, the Deputy Attorney General announced the department’s Civil Cyber-Fraud Initiative, which aims to hold accountable entities or individuals that put U.S information or systems at risk by knowingly providing deficient cybersecurity products or services, knowingly misrepresenting their cybersecurity practices or protocols, or knowingly violating obligations to monitor and report cybersecurity incidents and breaches. Information on how to report cyber fraud can be found here.
The resolutions obtained in this matter were the result of a coordinated effort between the Fraud Section of the Commercial Litigation Branch of the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Eastern District of New York, the U.S. Attorney’s Office for the Middle District of Florida, the U.S. Department of State Office of Inspector General and the U.S. Air Force.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Massachusetts Man Pleads Guilty to Firearms ConspiracyRead the Press Release
CONCORD - Edwin Quezada, 33, of Lawrence, Massachusetts pleaded guilty in federal court to conspiracy to transfer firearms to an out-of-state resident by unlicensed persons, United States Attorney John J. Farley announced today.
According to court documents and statements made in court, a New Hampshire resident agreed to sell firearms to a resident of Massachusetts. Quezada agreed to act as an intermediary for the Massachusetts resident. On multiple occasions, Quezada traveled to New Hampshire to pick up firearms to deliver to the Massachusetts resident. None of the individuals involved were licensed importers, manufacturers, dealers or collectors of firearms. As part of the scheme, Guzman obtained at least six handguns.
Quezada is scheduled to be sentenced on June 15, 2022.
“To protect citizens from violent crime, it is important to enforce federal laws regarding firearms,” said U.S. Attorney Farley. “Those who seek to buy guns unlawfully often are planning to use them to commit crimes. In our effort to protect public safety and prevent violence, we are working closely with our law enforcement partners to identify and prosecute those who participate in unlawful gun trafficking.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorney Debra Walsh.
The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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Marstons Mills Man Sentenced for Child PornographyRead the Press Release
BOSTON – A Marstons Mills man was sentenced today in federal court in Boston on charges of distributing, receiving and possessing child pornography.
Steven Carme, 33, was sentenced by U.S. District Court Judge Richard G. Stearns to 63 months in prison and five years of supervised release. On Nov. 3, 2021, Carme pleaded guilty to one count of distribution of child pornography, one count of receipt of child pornography and one count of possession of child pornography involving a prepubescent minor and a minor who had not attained 12 years of age.
Between Feb. 2, 2017 and Feb. 5, 2019, Carme downloaded and distributed numerous image and video files depicting child pornography via peer-to-peer file sharing software. During a search of Carme’s residence, a laptop and an external hard drive were seized. Forensic review of the external hard drive revealed approximately 7,881 images and 616 videos of child pornography. During an onsite interview at his residence, Carme admitted that the laptop and hard drive were his and that he downloaded, stored and distributed child pornography.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Barnstable Police Chief Matthew Sonnabend made the announcement today. Assistant U.S. Attorney Elianna J. Nuzum of Rollins’ Major Crimes Unit prosecuted the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Manderson Man Sentenced to 10 Years in Federal PrisonRead the Press Release
United States Attorney Dennis R. Holmes announced that a Manderson, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on March 3, 2022, by Judge Jeffrey L. Viken, U.S. District Court.
James Shawn Jumping Eagle, age 46, was sentenced to 10 years in federal prison, followed by five years of supervised release, and ordered to pay $100 in special assessments to the Federal Crime Victims Fund.
Jumping Eagle was indicted for the charge by a federal grand jury on March 2, 2021, and pleaded guilty on April 7, 2021.
The conviction stemmed from Jumping Eagle failing to register as a sex offender as required by federal law between February 9, 2021, and February 20, 2021. Jumping Eagle had previously been convicted of a sex offense in federal court, which required him to register for the rest of his life.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Heather Sazama prosecuted the case.
Jumping Eagle was immediately turned over to the custody of the U.S. Marshals Service.
Methamphetamine Ring Sentenced for Drug Conspiracy Across the State of WyomingRead the Press Release
United States Attorney Bob Murray announced today that the United States District Court for the District of Wyoming has sentenced four defendants charged in a drug distribution case. ROLAND BRAUBURGER, 42, of Cheyenne Wyoming; KIRSTEN KAY SARRATT, 26 of Cheyenne Wyoming; HENRY GUITIEREZ III, 36, incarcerated at Wyoming Medium Correctional Institute in Torrington, Wyoming; and JOHN OLIVER CLARK, 43, of Casper, Wyoming were all convicted and sentenced related to their involvement in a conspiracy to distribute methamphetamine.
In the fall of 2020, law enforcement became aware of Roland Brauburger’s distribution of controlled substances in multiple Wyoming cities. Through the cooperative work of the Federal Bureau of Investigation and Wyoming Division of Criminal Investigation on the Safe Trails Task Force, the investigation soon revealed that Brauburger, accompanied by his wife Kirsten Sarratt, made regular trips trafficking narcotics mainly in Cheyenne, Casper, Riverton, the Wind River Reservation, and Green River. As his operation continued, Brauburger enlisted the help of Henry Gutierrez and John Clark. Brauburger was also charged with possession of a firearm in furtherance of a drug trafficking crime.
The United States Attorney’s Office for the District of Wyoming prosecuted four individuals involved in the scheme, including: Brauburger, sentenced to 180 months of imprisonment; Sarratt, sentenced to 70 months of imprisonment; Gutierrez sentenced to 71 months and 8 days of imprisonment; and Clark, sentenced to 77 months of imprisonment.
“This case demonstrates our commitment to stopping the flow of methamphetamines into our communities, especially those with vulnerable populations who face addiction,” said United States Attorney Bob Murray. “Our strategy is to reduce the availability of methamphetamine throughout Wyoming by using a prosecutor-led, multi-agency approach to combat drug trafficking. We do this by targeting suspicious activity, using top-notch investigative work and tirelessly pursuing tips from the local community.”
"The case involving Roland Brauburger is a prime example of local, state and federal law enforcement working in unison towards a common goal of reducing illegal narcotics in Wyoming,” said Interim Director of Wyoming Division of Criminal Investigation Forrest Williams. “In 2020, Wyoming DCI became members of the Safe Trails Task Force (STTF) and works hand in hand with the FBI on narcotics cases that have a nexus to the Wind River Indian Reservation. With this partnership, Wyoming DCI remains dedicated to curbing the flow of illegal narcotics throughout Wyoming and the Wind River Indian Reservation."
“Today’s sentences are a direct result of the dedicated work of the FBI and our federal, state, local and tribal partners to combat criminal organizations that distribute methamphetamine, fentanyl and other dangerous drugs in our communities,” said Special Agent in Charge Michael Schneider. “The Rocky Mountain Safe Trails Task Force will continue to investigate and prosecute individuals and groups who attempt to further the scourge of drugs and violence in the areas we serve. The FBI thanks the Green River Police Department, the Wyoming Division of Criminal Investigation, and the U.S. Attorney's Office for their diligence and collaboration.”
This crime was investigated by the Federal Bureau of Investigation and the Wyoming Division of Criminal Investigation’s Safe Trails Joint Task Force, Green River Police Department. The United States was represented by Assistant United States Attorney Christyne M. Martens.
This case was brought as part of Project Safe Neighborhoods (PSN), a nationwide initiative that brings together federal, state, local, and tribal law enforcement officials, prosecutors, community leaders, and other stakeholders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN so that it is built on newly articulated core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results of our efforts.
Case Number: 0:21-cr-00075-SWS
Latin Dragon Nation Member Sentenced to 420 Months in Prison on Conviction for Racketeering Conspiracy Including MurderRead the Press Release
HAMMOND- Justin Anaya, 21, of Chicago, Illinois, was sentenced by United States District Court Judge Philip P. Simon following his guilty plea to conspiracy to participate in racketeering activity as a member of the Latin Dragon Nation street gang, announced United States Attorney Clifford D. Johnson.
Anaya was sentenced to 420 months in prison followed by 2 years of supervised release.
According to documents in the case, Anaya had been a member of the Latin Dragon Nation (LDN) since 2017. As a member of the gang, Anaya conspired to conduct and participated in the affairs of the LDN street gang. As part of his involvement in the gang, he participated with other LDN members in the shootings of suspected rival gang members and associates. Specifically, in July of 2017, Anaya, along with another Latin Dragon member, stole a car in Hammond, Indiana. The next day, Anaya, accompanied by another Latin Dragon member, drove the stolen car through a rival gang neighborhood in Chicago, Illinois. The other Latin Dragon member shot at a vehicle occupied by suspected rival gang members resulting in the death of a minor child who was in the vehicle. In November of 2017, in Chicago, Illinois, Anaya was in a vehicle with other Latin Dragon members chasing another vehicle. Anaya fired several shots at the occupants of the other vehicle and fatally shot a man who was in that vehicle. In addition to participating in criminal assaults, Anaya’s also participated in the LDN’s illegal drug and firearms trafficking activities.
“As this case demonstrates, this Office will vigorously prosecute persons who conduct illegal activities on behalf of criminal street gangs,” said United States Attorney Clifford D. Johnson. “I thank all of our federal and state law enforcement partners who worked with this office on this case as, in my view, this joint effort has increased public safety for Northern District of Indiana citizens.”
“As a member of a violent street gang, the defendant terrorized the streets of Northwest Indiana and participated in senseless murders,” said FBI Indianapolis Special Agent in Charge Herb Stapleton. “The 35-year sentence reflects the seriousness of these crimes and sends a clear message that the FBI and our law enforcement partners will disrupt and dismantle these gangs and hold these criminals accountable for their violent acts.”
“Working closely with our local, state and federal partners is the most effective way to investigate and prosecute violent crime,” said ATF Special Agent in Charge Kristen de Tineo. “I commend the diligence and commitment of each officer, agent and prosecutor who worked on this important case.”
The matter was investigated by the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Chicago Police Department Criminal Enterprise Unit; the Cook County Sheriff’s Office; the Bartlett Police Department; the Hammond Police Department; the East Chicago Police Department; the Merrillville Police Department; the Hobart Police Department; the Lake County Sheriff’s Department; and the Calumet City Police Department, with assistance from the Lake County, Indiana Prosecutor’s Office, the Cook County, Illinois State’s Attorney’s Office, the Indiana Department of Corrections, and the Illinois Department of Corrections. This case was prosecuted by Assistant U.S. Attorneys Kevin F. Wolff and Michael J. Toth, with prior assistance from former Hammond Assistant U.S. Attorney Joseph A. Cooley.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Las Vegas Attorney Charged with Assaulting Federal OfficersRead the Press Release
LAS VEGAS – A Las Vegas attorney made his initial appearance in federal court today for allegedly assaulting three FBI Special Agents with a firearm when they attempted to interview him at his home.
Matthew Wade Beasley (49) was arrested on March 4, 2022. He is charged with one count of assault on a federal officer with a deadly weapon. U.S. Magistrate Judge Elayna J. Youchah scheduled a preliminary hearing for March 22, 2022.
According to allegations in the criminal complaint, on March 3, 2022, FBI Special Agents went to a house in northwest Las Vegas to interview Beasley as part of an ongoing investigation. When agents knocked on the glass front doors, Beasley appeared with part of his body obscured. After an agent pulled back his suit jacket to show his FBI badge, Beasley then stepped into complete view with a gun pointed at his own head. When agents instructed Beasley to drop the gun, Beasley instead pointed it at the agents in a sweeping motion — causing one or more agents to discharge their firearm and striking Beasley.
The statutory maximum penalty is 20 years in prison for assault on a federal officer with a deadly weapon.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Acting Special Agent in Charge W.M. Herrington for the FBI made the announcement.
This case was investigated by the FBI. Assistant U.S. Attorneys Tony Lopez and Eric Schmale are prosecuting the case.
A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Kankakee, Illinois, Woman Sentenced to 14 Months in Prison for Theft of Social Security BenefitsRead the Press Release
URBANA, Ill. – A Kankakee, Illinois, woman, Sharrie McInnis, 49, of the 1100 block of East Merchant Street, was sentenced on March 7, 2022, to 14 months of imprisonment, to be followed by three years of supervised release, for theft of public money.
The government previously stated at McInnis’s change-of-plea hearing that McInnis had been claiming Title II Child-In-Care benefits for a grandchild that was not actually in her care. The total fraudulent benefits received amounted to $22,849.
At the sentencing hearing, U.S. District Judge Colin S. Bruce found that McInnis received additional improper Social Security payments under other titles, resulting in a total of $98,701.74 in overpayments. Judge Bruce ordered McInnis to pay full restitution to the Social Security Administration.
McInnis previously pleaded guilty to the one-count indictment in the case in October 2021. The statutory penalties for a violation of 18 U.S.C. § 641 are up to 10 years of imprisonment and up to three years of Supervised Release.
“Maintaining the integrity of the Social Security benefit system is critically important for the welfare of all who have paid into it,” said Assistant U.S. Attorney William J. Lynch, who represented the government in the prosecution.
“Ms. McInnis schemed to fraudulently obtain Social Security benefits. Her sentence demonstrates the commitment by our investigators and the U.S. Attorney’s Office to uphold the integrity of SSA’s programs by aggressively pursuing those who intend to defraud SSA,” said Andrew Boockmeier, Special Agent in Charge of the Social Security Administration’s Office of the Inspector General, Chicago Field Division, which investigated the case. “I thank the U.S. Attorney’s Office for prosecuting this case.”
Kankakee County Man Sentenced to Eight Years in Prison for Child Enticement CrimesRead the Press Release
URBANA, Ill. – A Kankakee County, Illinois, man, Joshua Koenig, 29, of the 200 block of South Randolph Street in Bradley, Illinois, was sentenced today to 96 months’ imprisonment for one count of attempted enticement of a minor and two counts of attempted receipt of child pornography.
According to court documents, law enforcement identified Koenig when he attempted to meet two separate individuals whom he believed to be minors on a popular dating application. Senior U.S. District Judge Michael M. Mihm sentenced Koenig to the eight-year term of imprisonment, to be followed by 10 years of supervised release. Koenig pleaded guilty in November 2021 to the three-count indictment.
In March 2020, a federal grand jury charged Koenig by indictment following his February 2020 arrest pursuant to a criminal complaint. Koenig has remained in the custody of the U.S. Marshals Service since his arrest.
Koenig was arrested February 14, 2020, as part of an FBI operation conducted in Kankakee County. The operation was conducted with the assistance of the Bradley Police Department, the Kankakee County Sheriff’s Office, and the Kankakee Area Metropolitan Enforcement Group. Assistant U.S. Attorney Elly Peirson represented the government in this prosecution.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ 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 www.projectsafechildhood.gov.
KC Man Sentenced to 17 Years for Crack Cocaine TraffickingRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man who twice fled from police officers was sentenced in federal court today for possessing crack cocaine to distribute.
Eldon M. Cox, 38, was sentenced by U.S. District Judge Greg Kays to 17 years in federal prison without parole. Cox was sentenced as an career offender due to his prior felony convictions for drug trafficking and violent crimes.
On Aug. 11, 2021, Cox pleaded guilty to two counts of possessing crack cocaine with the intent to distribute. Cox admitted that he was stopped twice by Kansas City police officers while he was in possession of crack cocaine that he intended to distribute.
On Sept. 3, 2017, Cox was passed out in the back seat of a Chevrolet parked at a gas station on Truman Road in Kansas City, Mo. The driver’s side door was open and there was a Bohnmische Waffenfabrik/FNH .40-caliber handgun, which officers later learned had been stolen, inside the car. Officers searched the Chevrolet and found a bag with 5.52 grams of crack cocaine and a bag of 1.3 grams of cocaine in the compartment next to the driver’s door handle.
On Sept. 24, 2018, a Kansas City police motorcycle officer attempted to stop Cox near 7th Street and Benton Boulevard. Cox began to flee in his vehicle down 7th Street, but only made it approximately 50 yards before his vehicle was stopped. Cox reversed the vehicle as the officer approached, driving toward the officer, who had to move to avoid being hit. Cox jumped from the car while it was moving. The vehicle continued unmanned across Benton Boulevard, hit a handicap sign, and struck a gas meter, causing a leak that required evacuation of the block. The officer chased Cox into the parking lot behind 613 Benton Boulevard, and ultimately into an alley. The officer saw Cox pull a Taurus .40-caliber semi-automatic handgun from his front waistband along with several baggies and try and throw the baggies and the firearm over a fence. The baggies struck the top of the fence and fell straight down. The gun struck the roadway and slid into the middle of the street.
The officer caught Cox, but Cox resisted and got away. By this point, other officers had arrived and, with the help of a helicopter, tracked Cox to an apartment complex’s rear stairs and arrested him. Officers retrieved the firearm Cox had thrown into the street. Officers also found 34 baggies of crack cocaine. Officers also found two baggies of powder cocaine in Cox’s car. Cox had $2,276 in his pants pocket.
In addition to these incidents, to which Cox pleaded guilty, Kansas City police officers and the U.S. Marshals Service were surveilling Cox on April 24, 2019, seeking to arrest him on the warrant in this case. They found Cox, but he again tried to flee.
Cox was outside the vehicle when officers approached and surrounded him. Rather than surrendering, Cox ran back into the driver’s seat, put the car in reverse, and struck a marshal’s vehicle. When Cox was unable to move the marshal’s vehicle, he fled on foot, but was captured shortly into his flight. On the floor of the front passenger seat was a Glock .40-caliber handgun with an extended magazine.
This case was prosecuted by Assistant U.S. Attorneys Sean T. Foley and Sarah J. Rasalam. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
KC Man Sentenced for Robbing Family at GunpointRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man was sentenced in federal court today for robbing a family at gunpoint in their home.
Cameron E. Scott, 20, was sentenced by U.S. District Judge Greg Kays to seven years and three months in federal prison without parole.
On June 2, 2021, Scott pleaded guilty to one count of robbery and one count of using a firearm during a crime of violence. Co-defendant Chase M. Murphy, 20, of Kansas City, Mo., has also pleaded guilty and awaits sentencing.
Scott and Murphy (along with an unidentified third man) robbed a group of three juveniles and four adults at gunpoint on March 22, 2020. The three men forced their way into a residence in the 8100 block of Wayne Avenue in Kansas City, Mo., and pointed firearms at multiple victims (mostly members of the same family). They held one of the victims at gunpoint while demanding money and marijuana.
The three men stole $450, marijuana, a rifle and a Taurus 9mm semi-automatic pistol then left the residence. Officers saw a car matching the description a witness gave of the robbers’ vehicle. Three men got out of the vehicle and ran into a residence in the 9200 block of Indiana Avenue in Kansas City, Mo. Soon afterward, the driver of the vehicle returned to the car and left. Officers attempted to follow the vehicle but lost sight of it. Scott and Murphy were seen leaving from the back of the residence. When officers announced themselves, they fled into a wooded area. A short time later, Scott and Murphy were seen walking in the tree line near 93rd Street and Grandview Road. Officers tried to approach them, but they fled on foot again. Officers gave chase and ultimately found Scott and Murphy hiding in a creek bed.
Officers searched the residence on Indiana Avenue. In the attic, they found a black suitcase with a Taurus 9mm semi-automatic pistol (which matched the description of the firearm taken during the robbery) and a Smith and Wesson .40-caliber semi-automatic pistol.
In a separate and unrelated case, Murphy also pleaded guilty to one count of robbery. Murphy admitted that he robbed the Taco Bell at 5925 Independence Ave., Kansas City, Mo., on May 28, 2019. A brick was thrown through the drive-through window of the Taco Bell, shattering the glass. Murphy and another person, both carrying handguns, entered the restaurant through the broken window. They pointed their guns at the heads of two employees and ordered one to open the cash register. They took $300 from the register and fled through the broken window.
These cases are being prosecuted by Assistant U.S. Attorney Ashleigh A. Ragner. They were investigated by the Kansas City, Mo., Police Department, the Raytown, Mo., Police Department and the FBI.
Operation LeGend
Operation LeGend is a federal partnership with local law enforcement to address the increase in homicides and violent crime in Kansas City, Mo., in 2020. The operation honors the memory of four-year-old LeGend Taliferro, one of the youngest fatalities during a record-breaking year of homicides and shootings. Additional federal agents were assigned to the operation from the FBI, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service.
KC Man Sentenced for Illegal Firearm Used in Fatal Shooting at ZooRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man was sentenced in federal court today for illegally possessing the firearm he accidentally fired in a fatal shooting at the Kansas City Zoo.
Anthony R. Meneses, 29, was sentenced by U.S. District Judge Greg Kays to four years in federal prison without parole.
On Aug. 9, 2021, Meneses pleaded guilty to being a felon in possession of a firearm.
According to an affidavit filed in support of the federal criminal complaint, Kansas City police officers were called to the scene of an accidental shooting in a parking lot at 6800 Zoo Drive, Kansas City, Mo., on Aug. 9, 2020. The victim, identified in court documents as “J.S.,” had been shot while he was sitting in the driver’s seat of a 2005 Toyota Camry, which was occupied by three other persons.
Meneses was sitting behind the driver’s seat; there was another passenger in the back seat and in the front passenger seat. Meneses grabbed the gun, a Glock 9mm pistol, from the back pocket of the driver’s seat when the gun accidentally fired. The bullet traveled though the driver’s seat, striking J.S. in the chest.
J. S. was transported to Research Medical Center where he was later pronounced deceased.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Meneses has prior felony convictions for tampering with a motor vehicle and burglary.
This case was prosecuted by Assistant U.S. Attorney Bradley K. Kavanaugh. It was investigated by the Kansas City, Mo., Police Department, the FBI, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Operation LeGend
Operation LeGend is a federal partnership with local law enforcement to address the increase in homicides and violent crime in Kansas City, Mo., in 2020. The operation honors the memory of four-year-old LeGend Taliferro, one of the youngest fatalities during a record-breaking year of homicides and shootings. Additional federal agents were assigned to the operation from the FBI, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service.
John Barksdale Charged with Cryptocurrency Securities Fraud in Connection with Sale of Ormeus CoinRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Ricky Patel, Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced today that JOHN ALBERT LOAR BARKSDALE was arrested abroad on conspiracy, securities fraud, and wire fraud charges. The charges arise from a scheme perpetrated by BARKSDALE to sell a cryptocurrency token called Ormeus Coin (asset symbol “ORME”) through false representations regarding the size, value, and purported profitability of Ormeus Coin’s cryptocurrency mining assets. In particular, through a series of marketing materials designed to sell Ormeus Coin, BARKSDALE and others falsely represented, among other things, that Ormeus Coin was secured by a $250 million cryptocurrency mining operation, which would have been one of the largest such operations in the world, and that its mining revenues exceeded $5 million on a monthly basis.
U.S. Attorney Damian Williams said: “As alleged, John Barksdale perpetrated a scheme to sell the cryptocurrency Ormeus Coin to investors around the world through a web of lies, which he spread through in-person roadshows, social media, and even a jumbotron in Times Square. Among other allegedly false statements he made, Barksdale lied that Ormeus Coin was secured by a $250 million cryptocurrency mining operation that had revenues exceeding $5 million per month, when in fact Ormeus’s mining operations never approached such a value or had such revenues. Together with our law enforcement partners here and abroad, we will work tirelessly to prosecute those who commit frauds against the public in connection with the sale of cryptocurrencies.”
Acting HSI New York Special Agent in Charge Ricky J. Patel: “As alleged, Barksdale operated like a traveling salesman and peddled lies, overstatements, and misrepresentations regarding a cryptocurrency called Ormeus Coin, which resulted in duping thousands of investors throughout the world and took in over $70 million. The men and women of HSI will not allow fraudsters to sell dreams of inflated and unrealistic revenues to innocent investors with the goal of lining their own pockets. By leveraging federal and international partnerships, Barksdale is now facing prosecution in the Southern District of New York for his alleged criminal acts.”
According to the Indictment unsealed in Manhattan federal court:[1]
From in or about 2017 through at least in or about October 2021, BARKSDALE and his relative (“CC-1”) perpetrated a scheme to sell Ormeus Coin, an ERC-20 compliant smart contract-based token on the Ethereum blockchain, through false representations. Ormeus Coin was offered to investors throughout the world, including in the United States and the Southern District of New York, through enrollment packages sold by Ormeus Global, a multi-level marketing company controlled by BARKSDALE and CC-1, various digital currency exchanges, and directly from BARKSDALE and his associates.
Through a series of white papers, in-person roadshows, online webinars and videos, social media platforms, and other marketing materials approved by BARKSDALE and CC-1, BARKSDALE and CC-1 falsely represented, among other things, that Ormeus Coin was a digital money system secured by a $250 million cryptocurrency mining operation, which would have been one of the largest such operations in the world. In order to backstop the false representations regarding the size and value of cryptocurrency mining assets that purportedly secured the value of Ormeus Coin, BARKSDALE, among other things: (i) approved marketing materials that falsely depicted photos of a purported Ormeus Coin mining facility; (ii) deceptively referenced an “Ormeus Reserve Vault” (“ORV”) that stored over 3,000 Bitcoin purportedly derived from Ormeus Coin’s mining operations, which was represented as securing the value of Ormeus Coin; and (iii) falsely stated that Ormeus Coin’s mining revenues exceeded $5 million on a monthly basis. For example, on or about February 9, 2018, Ormeus Coin ran an advertisement on a jumbotron in Times Square in Manhattan, New York, which proclaimed, in a caption above a giant ORME symbol, “$250 Million Cryptocurrency Mining Farm Revealed in Legal Audit by Ormeus Coin.” On or about February 12, 2018, a photograph of the Times Square advertisement was posted to Ormeus Global’s Twitter account with the caption “Live from New York City, Ormeus Coin Advertising its $250 million Cryptocurrency Mining Farm in Times Square, Manhattan!” In truth, Ormeus’s mining operations never approached a value close to $250 million and never produced revenues exceeding one million dollars in any month, and the Bitcoin stored in the “Ormeus Reserve Vault” belonged to a third party.
Numerous investors purchased enrollment packages through Ormeus Global and purchased Ormeus Coin through digital currency exchanges or directly from BARKSDALE and his associates. Investors made these purchases based at least in part on BARKSDALE’s false representations regarding the size, value, and purported profitability of the cryptocurrency mining assets controlled by Ormeus Global and Ormeus Coin, as well as the purported security that the ORV provided to the value of Ormeus Coin. Through this scheme, from in or about June 2017 through at least in or about April 2018, Ormeus Global raised at least approximately $70 million from the sale of enrollment packages to more than 8,000 investors around the world. From in or about June 2017 through at least in or about October 2021, Ormeus Coin was sold to at least approximately 12,000 investors, including at least 200 U.S.-based investors. At its peak, Ormeus Coin had a market capitalization of approximately $52 million in or about January 2018.
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BARKSDALE, 40, is charged with one count of conspiracy to commit securities fraud, one count of securities fraud, one count of conspiracy to commit wire fraud, and one count of wire fraud. Conspiracy to commit securities fraud carries a maximum sentence of five years in prison. All other charges each carry a maximum sentence of 20 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Any individuals who believe they may have been the victim of the alleged crimes perpetrated in connection with Ormeus Global or Ormeus Coin can contact HSI at https://www.ice.gov/webform/ice-tip-form or [email protected].
Mr. Williams praised the outstanding investigative work of HSI and USPIS, and thanked the United States Securities and Exchange Commission, which today filed a parallel civil action, for its assistance. Mr. Williams also thanked the U.S. Department of Justice’s Office of International Affairs of the Department’s Criminal Division, the U.S. Department of State, and the U.S. Marshals Service, who all provided significant assistance in this investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Sarah Lai, Sagar Ravi, and Olga I. Zverovich are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Jacksonville Man Sentenced to More Than Three Years in Federal Prison for Possessing Firearms While Subject to A Domestic Violence InjunctionRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Andrew Carl Fulda (44, Jacksonville) to 37 months in federal prison for possessing firearms while he was subject to a domestic violence injunction. The Court also ordered Fulda to forfeit two rifles, a carbine, two pistols, two revolvers, nine silencers, and 4,435 rounds of ammunition. Fulda had pleaded guilty on November 16, 2021.
According to court documents, in September 2021, a Special Agent for the Bureau of Alcohol, Tobacco, Firearms and Explosives received information that Fulda may be possessing firearms despite being prohibited by a domestic violence injunction. The agent verified Fulda’s prohibited status by reviewing the injunction, which informed Fulda that it would be a federal criminal felony offense for him to possess firearms or ammunition while subject to the injunction. The agent also observed that, in April 2020, Fulda had executed an affidavit attesting that he had turned over all of his firearms to the Jacksonville Sheriff’s Office (JSO). The agent also obtained records showing that Fulda had registered multiple silencers in the National Firearms Registration and Transfer Record but had not surrendered the silencers to JSO.
Upon further investigation, the agent identified a residence where Fulda had moved his firearms safe and obtained a federal search warrant for the residence. Upon executing the search warrant, the agent located the firearms safe, which contained multiple handguns and a silencer that was not registered to Fulda. Also in the room with the firearms safe were an unregistered short-barreled rifle, additional firearms and silencers, and more than 4,000 rounds of ammunition.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Laura Cofer Taylor.
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.
Indictment returned for smuggling nearly 80 in trailerRead the Press Release
LAREDO, Texas – A 52-year-old legal permanent resident of North Carolina has been charged with human smuggling, announced U.S. Attorney Jennifer B. Lowery.
Today, a federal grand jury returned the three-count indictment against Aurelio Barajas-Pulido. He was originally charged by criminal complaint. He is expected to appear for his arraignment in the near future before U.S. Magistrate Judge Diana Song Quiroga.
The complaint alleges that on Feb. 8, Barajas-Pulido attempted to drive a tractor trailer through the Interstate Highway 35 checkpoint in Laredo. Upon arrival, he allegedly displayed suspicious behavior. A K-9 then alerted authorities to the presence of concealed humans, according to the charges.
Upon further inspection, law enforcement discovered 80 undocumented citizens in the trailer including three unaccompanied minors, one of whom was pregnant, according to the charges. All were allegedly determined to be in the United States illegally.
If convicted, Barajas-Pulido faces up to 10 years in federal prison and a possible $250,000 maximum fine. He could also lose his status to reside in the United States.
Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Matthew Isaac 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.
Iowa Man Pleads Guilty to Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Bob Murray announced today that NATHAN RUSSELL CATES, age 41, of Missouri Valley, Iowa pleaded guilty to possession with intent to distribute 500 grams or more of methamphetamine. Cates appeared for a change of plea hearing before United States District Court Nancy D. Freudenthal on June 20, 2022. Sentencing is set for May 16, 2022.
Cates faces a maximum sentence of 10 years to life in prison, five years to life of supervised release, up to $10 million in fines and a $100 special assessment. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This crime was investigated by the Drug Enforcement Administration, Wyoming Highway Patrol and Wyoming Division of Criminal Investigation. Assistant United States Attorney Margaret M. Vierbuchen is prosecuting the case.
Case No. 21-cr-00101-NDF
Huntington Woman Pleads Guilty to Federal Methamphetamine and Fentanyl ChargeRead the Press Release
HUNTINGTON, W.Va. – A Huntington woman pleaded guilty today to a federal methamphetamine and fentanyl charge.
According to the plea agreements and statements made in court, Erica Antoinette Kirker, 35, admitted that on April 5, 2021 she possessed approximately 1.2 pounds of methamphetamine, 138 grams of fentanyl, and over $84,000 in cash at her residence on 3rd Avenue in Huntington. Kirker placed the items in a vehicle and parked the vehicle in a parking garage in downtown Huntington. Investigators conducted a search of the vehicle on that date and seized the methamphetamine, fentanyl, and cash. Kirker admitted that she intended to sell the drugs and that the currency constituted proceeds from prior drug sales.
Kirker pleaded guilty to possession with intent to distribute 50 grams or more of methamphetamine and 40 grams or more of fentanyl and faces a mandatory minimum of 10 years and up to life in federal prison when she is sentenced on June 21, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Southern West Virginia TOC-West Task Force. The Southern West Virginia TOC-West Task Force consists of the Cabell County Sheriff’s Department, the Hurricane Police Department, and the Marshall University Police Department, with support from the West Virginia State Police, the Drug Enforcement Administration (DEA) and the Violent Crime and Drug Task Force West. The Ohio Highway Patrol, the Kentucky State Police, and the FBI and DEA in Columbus, Ohio also assisted in the investigation.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorneys Joseph F. Adams and Courtney L. Cremeans are handling the prosecution.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00109.
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Hartford Man Sentenced to 42 Months in Prison for Gun Possession and Drug Distribution OffensesRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that GLADSTONE BENJAMIN, JR., 30, of Hartford, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 42 months of imprisonment, followed by three years of supervised release, for drug distribution and firearm possession offenses.
According to court documents and statements made in court, in April 2019, Hartford Police made two controlled purchases of marijuana from Benjamin at his Collins Street residence. On April 23, 2019, investigators conducted a court-authorized search of Gladstone’s residence and found a loaded Taurus 9mm handgun with an extended clip; two loaded Taurus .45 caliber handguns; a loaded semiautomatic handgun that did not contain a make, model or serial number stamp; a Remington Arms 12 gauge shotgun with an unreadable serial number; more than 1,000 rounds of loose and boxed ammunition, and distribution quantities of heroin and marijuana.
Benjamin’s criminal history includes state felony convictions for firearm and drug offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On February 8, 2021, Benjamin pleaded guilty to one count of possession with intent to distribute heroin and marijuana, and one count of possession of a firearm by a convicted felon.
On February 26, 2021, Benjamin, who was released on bond, was arrested by Hartford Police after they found him in a car with two firearms. He has been detained since his arrest, and his state charges are pending.
This investigation was conducted by the FBI’s Northern Connecticut Gang Task Force and the Hartford Police Department. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The case was prosecuted by Assistant U.S. Attorney Anastasia E. King and Konstantin Lantsman.
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.
Hartford Man Sentenced to 42 Months in Prison for Gun Possession and Drug Distribution OffensesRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that GLADSTONE BENJAMIN, JR., 30, of Hartford, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 42 months of imprisonment, followed by three years of supervised release, for drug distribution and firearm possession offenses.
According to court documents and statements made in court, in April 2019, Hartford Police made two controlled purchases of marijuana from Benjamin at his Collins Street residence. On April 23, 2019, investigators conducted a court-authorized search of Gladstone’s residence and found a loaded Taurus 9mm handgun with an extended clip; two loaded Taurus .45 caliber handguns; a loaded semiautomatic handgun that did not contain a make, model or serial number stamp; a Remington Arms 12 gauge shotgun with an unreadable serial number; more than 1,000 rounds of loose and boxed ammunition, and distribution quantities of heroin and marijuana.
Benjamin’s criminal history includes state felony convictions for firearm and drug offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On February 8, 2021, Benjamin pleaded guilty to one count of possession with intent to distribute heroin and marijuana, and one count of possession of a firearm by a convicted felon.
On February 26, 2021, Benjamin, who was released on bond pending sentencing, was arrested by Hartford Police after they found him in a car with two firearms. He has been detained since his arrest, and his state charges are pending.
This investigation was conducted by the FBI’s Northern Connecticut Gang Task Force and the Hartford Police Department. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The case was prosecuted by Assistant U.S. Attorney Anastasia E. King and Konstantin Lantsman.
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.
Gloucester County Man Admits Trafficking and Unlawfully Possessing FirearmsRead the Press Release
CAMDEN, N.J. – A Gloucester County, New Jersey, man with five prior felony convictions today admitted to unlawfully possessing and conspiring to sell multiple firearms, U.S. Attorney Philip R. Sellinger announced.
Dylan Ianncelli, 28, of Pitman, New Jersey, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information charging him with one count of conspiring to make false statements in obtaining firearms and to illegally engage in the business of dealing in firearms, as well as one count of possession of firearms by a convicted felon.
According to documents filed in this case and statements made in court:
Ianncelli and his conspirator, Jessy Hill, agreed to purchase firearms in Georgia and transport them for resale in New Jersey. On Aug. 12, 2021, Hill purchased 11 firearms from a licensed dealer in Georgia. Hill falsely indicated during the purchase that she was the actual buyer/transferee of the firearms even though she was purchasing the firearms for others. Ianncelli and Hill drove a car containing the firearms from Georgia to Mantua, New Jersey, where the car was stopped by law enforcement officers the following morning. Officers recovered from the car the 11 firearms purchased by Hill the prior day, as well as ammunition and a 12th firearm with a defaced serial number that Hill purchased a week earlier.
The count of being a felon in possession of a firearm carries a maximum potential penalty of up to 10 years in prison. The charge of conspiracy carries a maximum potential penalty of up to five years in prison. Each count carries a maximum fine of $250,000. Sentencing is scheduled for July 12, 2022.
Hill is charged by complaint with the same conspiracy. The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. Attorney Sellinger credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the leadership of Special Agent in Charge Jeffrey L. Matthews, with the investigation leading to today’s guilty plea. He also thanked the New Jersey State Police, the Mantua Township Police Department, and the Gloucester County Prosecutor’s Office for their assistance on this investigation.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.
Germantown Man Facing Federal Gun and Drug ChargesRead the Press Release
Greenbelt, Maryland – A federal criminal complaint has been filed charging Dwight Luis Clarke, age 31, of Germantown, Maryland, for federal charges of being a felon in possession of a firearm, distribution of controlled substances, and possession of a firearm in furtherance of a drug trafficking crime. According to the criminal complaint affidavit, Clarke sold crack cocaine and a heroin/fentanyl mixture, as well as seven firearms, including five privately manufactured firearms, known as “ghost guns.” The criminal complaint was filed on March 4, 2022, and Clarke was arrested on March 7, 2022. Upon his arrest, law enforcement seized another apparent semi-automatic privately made firearm from Clarke’s person. Clarke had his initial appearance in U.S. District Court in Greenbelt yesterday and U.S. Magistrate Judge Charles B. Day ordered that Clarke be detained pending trial.
The criminal complaint was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge L.C. Cheeks, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Chief Marcus Jones of the Montgomery County Police Department; and Chief Victor Brito of the Rockville City Police Department.
According to the affidavit filed in support of the criminal complaint, early in 2022, Clarke was identified as an individual involved in the distribution of narcotics and firearms. Clarke allegedly sold narcotics and firearms to an undercover law enforcement officer (the UC) in Montgomery County, Maryland on three occasions in February. During those three meetings, Clarke allegedly sold the UC approximately 46.87 grams of crack cocaine; several gel caps of a suspected heroin/fentanyl mixture; two semi-automatic privately made firearms (ghost guns); one Smith & Wesson .22 caliber semi-automatic AR style pistol; one Walther .380 caliber semi-automatic pistol; one 33 round extended magazine loaded with one 9mm caliber cartridge; one AR style extended magazine loaded with three .22 caliber cartridges; and one ammunition box, containing 95 .22LR caliber cartridges.
As detailed in the affidavit, in a fourth meeting at the end of February, Clarke and the UC allegedly communicated via phone calls and text messages and Clarke agreed to sell three fully assembled Glock-type ghost guns for a total of $3,000. Law enforcement observed Clarke get out of his car at the meeting location carrying a white bag that appeared to contain a heavy object that allegedly resembled a firearm. The affidavit alleges that Clarke entered the front passenger seat of the UC’s vehicle and after a short conversation, exited the vehicle without the bag. A short time later, law enforcement recovered three plastic shopping bags from the vehicle, each containing a clear gallon-sized Ziploc bag. Each Ziploc bag contained a privately manufactured 9mm caliber semi-automatic pistol bearing no serial number.
The affidavit alleges that during the investigation, Clarke and the UC had a conversation, during which the UC told Clarke that he was unable to purchase a gun at a gun store due to a prior felony conviction. Clarke allegedly told the UC that he could not go into a gun store for the same reason.
If convicted, Clarke faces a maximum sentence of 10 years in federal prison for being a felon in possession of firearms and ammunition; a maximum of 20 years in federal prison for distribution of controlled substances; and a mandatory minimum of five years and a maximum of life in federal prison for possession of a firearm in furtherance of a drug trafficking crime. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
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. PSN, an evidence-based program proven to be effective at reducing violent crime, is the centerpiece of the Department of Justice’s violent crime reduction efforts. 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 ATF, the Montgomery County Police Department, and the Rockville City Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Timothy F. Hagan and Special Assistant U.S. Attorney Patrick Kibbe, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Georgia man sentenced to two decades in prison for production of child pornographyRead the Press Release
BRUNSWICK, GA: A Wayne County, Ga., man has been sentenced to 20 years in prison after admitting he produced and possessed hundreds of images of child pornography.
Casey Causey, 40, of Jesup, Ga., was sentenced to 240 months in prison after pleading guilty to Production of Child Pornography, said David H. Estes, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge Lisa Godbey Wood also ordered Causey to pay $91,800 in restitution to victims, and to serve 15 years of supervised release and register as a sex offender after completion of his prison term. There is no parole in the federal system.
“Sexual exploitation of vulnerable children is a vile crime, and our office will relentlessly pursue such predators,” said U.S. Attorney Estes. “This prison sentence protects our community and holds Casey Causey accountable for his horrific acts.”
Causey was identified after a cyber tip from the National Center for Missing and Exploited Children led agents from Homeland Security Investigations to a Jesup residence where Causey lived. During a search of Causey’s room in March 2021, agents seized multiple electronic devices containing hundreds of images and videos of child pornography.
“Identifying and arresting predators like Causey, who not only victimize innocent children, but also showcase those horrific images for others to see, are a one of the highest priorities for our office,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Everyone in the community can feel safer knowing that this criminal will no longer be able to exploit children.”
This investigation took place under the umbrella of the U.S. Department of Justice’s Project Safe Childhood (PSC), a nationwide initiative to combat the epidemic of child sexual exploitation and abuse, and was led by the Savannah Office of Homeland Security Investigations. The case was prosecuted for the United States by Assistant U.S. Attorneys Jennifer J. Kirkland and Project Safe Childhood Coordinator Tara M. Lyons.
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 800-843-5678, or https://report.cybertip.org/.
Georgia Bar Owner Pleads Guilty to Tax EvasionRead the Press Release
A Georgia bar owner pleaded guilty today to tax evasion.
According to court documents and statements made in court, James Stafford, 44, engaged in a scheme to evade taxes he and others owed on income earned from bars in Statesboro and Milledgeville, Georgia. Stafford was nominally the sole owner of Chrysha Inc., which operated a bar in Statesboro, and BGRG Inc., which operated a bar and a restaurant in Milledgeville. In practice, however, both companies had multiple partners with varying percentages of ownership.
Stafford provided false information to an accountant who prepared the companies’ 2014 corporate tax returns. Specifically, he underreported gross receipts and omitted cash distributions made to the true partners. As a result, Stafford caused false corporate tax returns to be filed with the IRS. By filing false corporate tax returns, Stafford also enabled the true owners of the bars and restaurant to evade their respective individual income tax liabilities. Additionally, Stafford underreported his own income on his 2014 individual tax return filed with the IRS.
Stafford is scheduled to be sentenced at a later date and faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney David Estes for the Southern District of Georgia made the announcement.
IRS-Criminal Investigation and the FBI are investigating the case.
Assistant Chief David Zisserson and Trial Attorney Casey Smith of the Tax Division, and the U.S. Attorney’s Office for the Southern District of Georgia, are prosecuting the case.
Gastonia Man Is Sentenced to 15 Years on Drug and Gun ChargesRead the Press Release
CHARLOTTE, N.C. – Kyle Williamson Auten, 37, of Gastonia, North Carolina, was sentenced today to 180 months in prison and five years of supervised release on drug and gun charges, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Vincent C. Pallozzi, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Joseph D. Ramey of the Gaston County Police Department join U.S. Attorney King in making today’s announcement.
According to filed documents and today’s sentencing hearing, on February 17, 2020, officers with the Gaston County Police Department learned that Auten was staying at a hotel in Gastonia and had an outstanding arrest warrant. Officers effectuating the warrant arrived at Auten’s room, where they observed a firearm in plain view. In addition to the firearm, law enforcement recovered from the room narcotics, including methamphetamine and marijuana, cash, digital scales, and other drug paraphernalia. From Auten’s vehicle, law enforcement recovered a rifle, ammunition and more narcotics. Law enforcement also determined that the vehicle Auten was driving was stolen.
On June 1, 2021, Auten pleaded guilty to possession with intent to distribute methamphetamine and possession of a firearm by a convicted felon. Auten is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King commended the ATF and the Gaston County Police Department for their investigation of the case and thanked the Rutherford County Sheriff’s Office for their invaluable assistance.
Assistant U.S. Attorney Christopher Hess prosecuted the case.
Granite City Man Sentenced to 10 Years for Illegal Possession of FirearmsRead the Press Release
EAST ST. LOUIS, Ill. – Benny Davis, 37, of Granite City, Illinois, was sentenced in federal court
on Monday, March 7, 2022, to 10 years in prison for possessing firearms while being a convicted
felon. Davis was also ordered to serve three years of supervised release upon his release from
prison.
According to court documents and statements made in court, Davis was a passenger in a vehicle that
was stopped by the Hartford Police Department for traffic infractions. Police officers discovered a
rifle, three shotguns and a stolen handgun during a search of the vehicle. The recovered firearms
were all loaded at the time of the traffic stop. The officers also obtained videos of Davis firing
the guns the day prior to his arrest. Davis admitted to being a convicted felon at the
time of his arrest which prevented him from legally possessing firearms or ammunition.This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the
Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to
be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together
to identify the most pressing violent crime problems in the community and develop comprehensive
solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most
violent offenders and partners with locally based prevention and reentry programs for lasting
reductions in crime.The investigation was conducted by the Hartford Police Department and the Bureau of
Alcohol, Tobacco, Firearms & Explosives.
The case was prosecuted by Assistant United States Attorney Christopher Hoell.Gillette Man Pleads Guilty to Wire Fraud and Tax ViolationsRead the Press Release
United States Attorney Bob Murray announced today that DAVID A. JACKSON, a/k/a GERALD DAVID JACKSON, a/k/a GERALD D. RODERICK-JACKSON, of Gillette, Wyoming pleaded guilty to charges of wire fraud, willful failure to collect or pay over tax, and filing a false tax return. Jackson appeared for a change of plea hearing before United States District Court Judge Nancy D. Freudenthal on February 23, 2022. Sentencing has been set for May 16, 2022.
Wire fraud carries a maximum penalty of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. Willful failure to collect or pay over tax carries a maximum penalty of up to five years in prison, up to three years of supervised release, and a fine of up to $10,000. False statement on a tax return carries a maximum penalty of up to three years in prison, up to one year of supervised release, and a fine of up to $100,000. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by the Internal Revenue Service – Criminal Investigation and the Gillette Police Department. Assistant United States Attorney Margaret M. Vierbuchen is prosecuting the case.
Case No. 21-cr-00087-NDF
Gillette Man Pleads Guilty to Wire Fraud and Tax ViolationsRead the Press Release
United States Attorney Bob Murray announced today that DAVID A. JACKSON, a/k/a GERALD DAVID JACKSON, a/k/a GERALD D. RODERICK-JACKSON, of Gillette, Wyoming pleaded guilty to charges of wire fraud, willful failure to collect or pay over tax, and filing a false tax return. Jackson appeared for a change of plea hearing before United States District Court Judge Nancy D. Freudenthal on February 23, 2022. Sentencing has been set for May 16, 2022.
Wire fraud carries a maximum penalty of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. Willful failure to collect or pay over tax carries a maximum penalty of up to five years in prison, up to three years of supervised release, and a fine of up to $10,000. False statement on a tax return carries a maximum penalty of up to three years in prison, up to one year of supervised release, and a fine of up to $100,000. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by the Internal Revenue Service – Criminal Investigation and the Gillette Police Department. Assistant United States Attorney Margaret M. Vierbuchen is prosecuting the case.
Case No. 21-cr-00087-NDFGillette Man Pleads Guilty to Wire Fraud and Tax ViolationsRead the Press Release
United States Attorney Bob Murray announced today that DAVID A. JACKSON, a/k/a GERALD DAVID JACKSON, a/k/a GERALD D. RODERICK-JACKSON, of Gillette, Wyoming pleaded guilty to charges of wire fraud, willful failure to collect or pay over tax, and filing a false tax return. Jackson appeared for a change of plea hearing before United States District Court Judge Nancy D. Freudenthal on February 23, 2022. Sentencing has been set for May 16, 2022.
Wire fraud carries a maximum penalty of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. Willful failure to collect or pay over tax carries a maximum penalty of up to five years in prison, up to three years of supervised release, and a fine of up to $10,000. False statement on a tax return carries a maximum penalty of up to three years in prison, up to one year of supervised release, and a fine of up to $100,000. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by the Internal Revenue Service – Criminal Investigation and the Gillette Police Department. Assistant United States Attorney Margaret M. Vierbuchen is prosecuting the case.
Case No. 21-cr-00087-NDF