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11 April 2022
Kennewick WA man Sentenced to over 11 Years in Federal PrisonRead the Press Release
Yakama, Washington – Chief U.S. District Judge Stanley Bastian has sentenced Jesus B. Zavala-Alvarez, 28, of Kennewick, Washington, to 135 months in federal prison for his role in guarding a stash house, where the Drug Enforcement Administration (D.E.A.) seized over 8 pounds of methamphetamine, 64 ounces of liquid methamphetamine and 19,000 deadly fentanyl-laced pills, along with a loaded firearm. Zavala-Alvarez was also sentenced to serve five years on federal supervision if he is allowed to remain in the United States. Zavala-Alvarez’s drug trafficking organization operated primarily out of the Tri-Cities area, which includes Kennewick, Pasco, and Richland, Washington.
According to information disclosed during court proceedings, DEA Tri-Cities and the Tri-City METRO Drug Task Force identified a transnational drug trafficking organization operating in and around the Tri-Cities. DEA agents identified Zavala-Alvarez during an investigation into two of his codefendants – Daniel Hernandez and Jessie Mendoza. During the investigation, Zavala-Alvarez delivered two pounds of methamphetamine as part of a controlled buy. This led agents to Zavala-Alvarez’s residence in Kennewick, Washington. Upon the execution of a federal search warrant at Zavala-Alvarez’s residence in April 2020, agents seized a large stash of narcotics, which included over 19,000 fentanyl-laced pills. Hernandez and Mendoza were later arrested and found to be in possession of more than 20,000 fentanyl-laced pills, approximately 5 pounds of methamphetamine, and several ounces of heroin. Hernandez and Mendoza were also in possession of multiple firearms.
At the sentencing proceedings in the case, Chief Judge Bastian noted Zavala-Alvarez’s substantial role in the organization, including that he was entrusted to safe keep a large cache of drugs, while armed with a loaded firearm. Chief Judge Bastian also acknowledged that this was Zavala-Alvarez’s first felony offense, but because of the seriousness of the case, imposed a sentence of 135 months in federal custody.
U.S. Attorney Vanessa R. Waldref commended the law enforcement team who investigated the case, leading to the prosecution of Zavala-Alvarez and his co-defendants. She stated, “Fentanyl is a poison being pumped into our communities at an unprecedented rate with devastating effects. Even trace amounts in a fentanyl-laced pill can kill a person. I am grateful to for the state, federal, and local law enforcement officers who work together on a daily basis to identify the large-scale suppliers of this dangerous drug. Through these joint efforts to curb the distribution of fentanyl, we are building safer and stronger communities in Eastern Washington.”
“The Zavala-Alvarez’s drug trafficking organization was flooding our city streets with their methamphetamine and poisonous fentanyl-laced counterfeit pills, marketed as legitimate prescription pills to unsuspecting victims of the Tri-Cities community,” said Frank A. Tarentino III, Special Agent-in-Charge DEA Seattle Field Division. “Our neighborhoods are under siege from the criminal drug networks who use guns and violence to push these fake pills to the most vulnerable people in our communities. The drug and gun evidence seized in this investigation are examples of the link between violence and drug trafficking, which is responsible for causing the most harm in the United States. With the assistance of our law enforcement partners and the community, we will continue to drive down the overdoses and violence that are negatively impacting the people of Tri-Cities and their quality of life.”
This case was prosecuted under the Organized Crime Drug Enforcement Task Force (OCDETF) program. The OCDETF program provides supplemental federal funding to the federal and state agencies involved in the investigation of drug-related crimes.
This case was investigated by the DEA Tri-Cities Office, Border Patrol, the Tri-City METRO Drug Task Force, Kennewick Police Department, Richland Police Department, and Pasco Police Department. This case was prosecuted by Stephanie Van Marter, Assistant United States Attorney for the Eastern District of Washington.
Kennewick Drug Trafficker and Sureno Gang Member Sentenced to 10 Years in Federal PrisonRead the Press Release
Yakima, Washington – Chief U.S. District Judge Stanley Bastian has sentenced David Reyes, 30, of Kennewick, Washington, to 120 months in federal prison for possession with intent to distribute methamphetamine, fentanyl, and heroin. As part of the sentence, Chief Judge Bastian also imposed a period of five-years’ federal supervised release. Reyes’s drug trafficking activities occurred primarily in the Tri-Cities area (Kennewick, Pasco, and Richland, Washington).
According to information disclosed during court proceedings, Reyes was arrested on drug trafficking charges in March 2021. At that time, the Washington Department of Corrections (“DOC”) was supervising Reyes for multiple convictions in Washington state court. During a March 11, 2021 search of Reyes’s home, DOC officers seized approximately 350 grams of methamphetamine, a number of fentanyl-laced pills, and 280 grams of heroin inside a sweatshirt, which was in Reyes’s bedroom. DOC also recovered a digital scale and several thousands of dollars in U.S. Currency. Reyes is a known member of the Sureno Gang. He goes by the moniker, “Lil’ Monster.”
“The seamless partnership of the Federal Bureau of Investigation, the Pasco Police Department, and Washington Department of Corrections lead directly to the apprehension of this Sureno Gang Member, who was distributing deadly narcotics while on state supervision,” U.S. Attorney Waldref stated. “These types of federal, state, and local partnerships, coupled with community engagement, are necessary to rid our communities of this dangerous poison, thereby making our communities safer and stronger.” U.S. Attorney Waldref continued, “Today’s sentence will remove Mr. Reyes from our community for 10 years, sending a powerful signal that our office continues to vigorously prosecute those who distribute deadly narcotics in Eastern Washington.”
“The fact that Mr. Reyes previously served time in prison was no deterrent to reoffending.” said Special Agent in Charge Donald M. Voiret of the FBI’s Seattle Field Office. “This sentence will keep him from distributing drugs into our communities for the next decade. I want to thank our investigators and partners on the Southeast Washington Safe Streets Task Force for their work on this case.”
This case was prosecuted under the Organized Crime Drug Enforcement Task Force (OCDETF) program. The OCDETF program provides supplemental federal funding to the federal and state agencies involved in the investigation of drug-related crimes. This OCDETF investigation is being conducted by the Federal Bureau of Investigation’s
Safe Streets Task Force in Tri-Cities Washington, Pasco Police Department, and Washington Department of Corrections.
This case was prosecuted by Caitlin A. Baunsgard, Assistant United States Attorney for the Eastern District of Washington.
Justice Department Secures Agreement with CVS Pharmacy Inc., to Make Online COVID-19 Vaccine Registration Accessible for People with DisabilitiesRead the Press Release
The Justice Department and the U.S. Attorney’s Office for the District of Rhode Island today announced a settlement agreement with CVS Pharmacy Inc., under the Americans with Disabilities Act (ADA) that will eliminate barriers preventing people with certain disabilities from getting information about COVID-19 vaccinations and booking vaccination appointments online. CVS is the country’s largest retail pharmacy, with nearly 10,000 locations. Today’s resolution is the department’s fifth agreement on the critical issue of COVID-19 vaccination website accessibility, following settlement announcements with Rite Aid Corporation, Hy-Vee Inc., The Kroger Co. and Meijer Inc.
The department found that CVS’s COVID-19 vaccine registration portal, currently located at https://www.cvs.com/immunizations/covid-19-vaccine, was not accessible to people with certain disabilities, including those who use screen reader software or have trouble using a mouse. For instance, the types of vaccine appointments offered (which included influenza, pneumonia, and others, in addition to the COVID-19 vaccine) were not read audibly to screen reader users at the beginning of the scheduling process. Further, on the page where users pick a time for their appointment, screen reader users were told that all available times were “checked,” even though the user had not made any selection. Additionally, people who use the “Tab” key instead of a mouse to navigate websites were not able to navigate past a request for insurance information in the registration process.
“Now more than ever, we must ensure web accessibility for people with disabilities seeking access to critical needs and services,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We are working aggressively to identify and remove barriers that prevent people with disabilities from privately and independently securing potentially life-saving COVID-19 vaccines. We will continue to work towards the ADA’s promise of equal access during the ongoing global pandemic.”
“While web accessibility is always important, when it comes to critical health services like COVID-19 vaccination, making sure that everyone — regardless of disability — can access information and care is essential,” said U.S. Attorney Zachary A. Cunha for the District of Rhode Island. “This office is committed to vigorously enforcing the ADA to eliminate unnecessary barriers that stand in the way of lifesaving care.”
Under today’s settlement, CVS will conform web content about the COVID-19 vaccine, including the forms for scheduling an appointment to get the vaccine, to the Web Content Accessibility Guidelines (WCAG), Version 2.1, Level AA. WCAG is a set of voluntary industry guidelines for making information on a website accessible to users with disabilities. CVS also must regularly test the pages of its website that include vaccine scheduling and information about the COVID-19 vaccine, and quickly fix any problems that keep people with disabilities from being able to use these pages.
This matter was handled jointly by the Disability Rights Section of the Civil Rights Division and the U.S. Attorney’s Office for the District of Rhode Island. Title III of the ADA requires public accommodations like drugstores to provide individuals with disabilities with full and equal enjoyment of goods and services, such as vaccines. The ADA also requires public accommodations to ensure effective communication with people with disabilities, including by using auxiliary aids and services like accessible technology.
For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA information line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. ADA complaints may be filed online at www.ada.gov/complaint. Anyone in the District of Rhode Island may also report civil rights violations directly to the U.S. Attorney’s Office for the District of Rhode Island at https://www.justice.gov/usao-ri-civil-rights-enforcement or (401) 709-5000.
Justice Department Announces New Rule to Modernize Firearm DefinitionsRead the Press Release
Today, the Department of Justice announced that it has submitted to the Federal Register the “Frame or Receiver” Final Rule, which modernizes the definition of a firearm. Once implemented, this rule will clarify that parts kits that are readily convertible to firearms are subject to the same regulations as traditional firearms. These regulatory updates will help curb the proliferation of “ghost guns,” which are often assembled from kits, do not contain serial numbers, and are sold without background checks, making them difficult to trace and easy to acquire by criminals.
“One year ago, the Department committed to address the proliferation of ghost guns used in violent crimes,” said Attorney General Merrick B. Garland. “This rule will make it harder for criminals and other prohibited persons to obtain untraceable guns, will help ensure that law enforcement officers can retrieve the information they need to solve crimes, and will help reduce the number of untraceable firearms flooding our communities. I commend all our colleagues at the ATF who have worked tirelessly over the past 12 months to get this important rule finalized, and to do it in a way that respects the rights of law-abiding Americans.”
The rule goes into effect 120 days from the date of publication in the Federal Register, and once implemented, will address the proliferation of these un-serialized firearms in several ways. These include:
- To help keep guns from being sold to convicted felons and other prohibited purchasers, the rule makes clear that retailers must run background checks before selling kits that contain the parts necessary for someone to readily make a gun.
- To help law enforcement trace guns used in a crime, the rule modernizes the definition of frame or receiver, clarifying what must be marked with a serial number – including in easy-to-build firearm kits.
- To help reduce the number of unmarked and hard-to-trace “ghost guns,” the rule establishes requirements for federally licensed firearms dealers and gunsmiths to have a serial number added to 3D printed guns or other un-serialized firearms they take into inventory.
- To better support tracing efforts, the rule requires federal firearms licensees, including gun retailers, to retain records for the length of time they are licensed, thereby expanding records retention beyond the prior requirement of 20 years. Over the past decade, ATF has been unable to trace thousands of firearms – many reportedly used in homicides or other violent crimes – because the records had already been destroyed. These records will continue to belong to, and be maintained by, federal firearms licensees while they are in business.
As the final rule explains, from January 2016 to December 2021, ATF received approximately 45,240 reports of suspected privately made firearms recovered by law enforcement, including in 692 homicide or attempted homicide investigations. The chart below demonstrates the total annual numbers of suspected PMFs recovered by law enforcement over the past six years:
Today’s announcement marks one year since the Attorney General directed the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) to issue a proposed rule within 30 days that would address the proliferation of unmarked firearms increasingly being used in crimes. On May 7, 2021, the Department of Justice issued a notice of proposed rulemaking, and during the 90-day open comment period, the ATF received more than 290,000 comments, the highest number of comments submitted to a proposed rule in ATF’s history. Today’s announcement is also the latest in a series of steps the department has taken to address violent crime and gun violence.
The final rule, as submitted to the Federal Register, can be viewed here: https://www.atf.gov/rules-and-regulations/definition-frame-or-receiver
To learn more about the rulemaking process, please see: https://www.federalregister.gov/uploads/2011/01/the_rulemaking_process.pdf
For more information, see the attached fact sheet.
Justice Department Announces New Rule to Modernize Firearm DefinitionsRead the Press Release
WASHINGTON – Today, the Department of Justice announced that it has submitted to the Federal Register the “Frame or Receiver” Final Rule, which modernizes the definition of a firearm. Once implemented, this rule will clarify that parts kits that are readily convertible to firearms are subject to the same regulations as traditional firearms. These regulatory updates will help curb the proliferation of “ghost guns,” which are often assembled from kits, do not contain serial numbers, and are sold without background checks, making them difficult to trace and easy to acquire by criminals.
“One year ago, the Department committed to address the proliferation of ghost guns used in violent crimes,” said Attorney General Merrick B. Garland. “This rule will make it harder for criminals and other prohibited persons to obtain untraceable guns, will help ensure that law enforcement officers can retrieve the information they need to solve crimes, and will help reduce the number of untraceable firearms flooding our communities. I commend all our colleagues at the ATF who have worked tirelessly over the past 12 months to get this important rule finalized, and to do it in a way that respects the rights of law-abiding Americans.”
The rule goes into effect 120 days from the date of publication in the Federal Register, and once implemented, will address the proliferation of these un-serialized firearms in several ways. These include:
1. To help keep guns from being sold to convicted felons and other prohibited purchasers, the rule makes clear that retailers must run background checks before selling kits that contain the parts necessary for someone to readily make a gun.
2. To help law enforcement trace guns used in a crime, the rule modernizes the definition of frame or receiver, clarifying what must be marked with a serial number – including in easy-to-build firearm kits.
3. To help reduce the number of unmarked and hard-to-trace “ghost guns,” the rule establishes requirements for federally licensed firearms dealers and gunsmiths to have a serial number added to 3D printed guns or other un-serialized firearms they take into inventory.
4. To better support tracing efforts, the rule requires federal firearms licensees, including gun retailers, to retain records for the length of time they are licensed, thereby expanding records retention beyond the prior requirement of 20 years. Over the past decade, ATF has been unable to trace thousands of firearms – many reportedly used in homicides or other violent crimes – because the records had already been destroyed. These records will continue to belong to, and be maintained by, federal firearms licensees while they are in business.
As the final rule explains, from January 2016 to December 2021, ATF received approximately 45,240 reports of suspected privately made firearms recovered by law enforcement, including in 692 homicide or attempted homicide investigations. The chart below demonstrates the total annual numbers of suspected PMFs recovered by law enforcement over the past six years: Today’s announcement marks one year since the Attorney General directed the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) to issue a proposed rule within 30 days that would address the proliferation of unmarked firearms increasingly being used in crimes. On May 7, 2021, the Department of Justice issued a notice of proposed rulemaking, and during the 90-day open comment period, the ATF received more than 290,000 comments, the highest number of comments submitted to a proposed rule in ATF’s history. Today’s announcement is also the latest in a series of steps the department has taken to address violent crime and gun violence.
The final rule, as submitted to the Federal Register, can be viewed here: https://www.atf.gov/rules-and-regulations/definition-frame-or-receiver
To learn more about the rulemaking process, please see: https://www.federalregister.gov/uploads/2011/01/the_rulemaking_process.pdf -->Jefferson County woman sentenced for drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Kia Johnson, of Ranson, West Virginia, was sentenced today to six months of incarceration for a drug charge, United States Attorney William Ihlenfeld announced.
Johnson, 25, pleaded guilty in October 2020 to one count of “Aiding and Abetting Unlawful Use of Communication Facility.” Johnson admitted to using a phone to help distribute Phencyclidine (PCP) in September 2019 in Berkeley and Jefferson Counties.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Gina M. Groh presided.
Jamestown Woman Pleads Guilty to Drug ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Antasia Babcock, 28, of Jamestown, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of acetyl fentanyl; 50 grams or more of methamphetamine; 400 grams or more of fentanyl; and 500 grams or more of cocaine. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorneys Joshua A. Violanti and Misha Coulson, who are handling the case, stated that Babcock conspired with others, including co-defendant Jun Martinez, to sell cocaine, methamphetamine, and heroin in the Jamestown area. Martinez arranged to receive the narcotics via mail from a source out of state. In mid-September 2020, Martinez traveled out of state to acquire more narcotics in-person and was pulled over by an Illinois State Police Trooper. During a search of his vehicle, law enforcement officers recovered approximately 6,359 grams of methamphetamine, 3,157 grams of fentanyl, 2,241 grams of cocaine, and marijuana products. While Martinez was detained on Illinois state charges, Babcock continued the narcotics distribution in Jamestown. On October 16, 2020, investigators executed a search warrant the Wescott Street residence that Babcock shared with Martinez and recovered methamphetamine, drug paraphernalia, a plastic packaging sealer machine, a drug ledger, and approximately $62,255 in U.S. currency.
Jun Martinez was previously convicted and is awaiting sentencing.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The plea is the result of an investigation by the Jamestown Metro Drug Task Force, under the direction of Jamestown Police Chief Timothy Jackson, and the Drug Enforcement Administration, under the direction of Acting Special Agent-in-Charge Timothy Foley, New York Field Division.
Sentencing is scheduled for September 21, 2022, before Judge Sinatra.
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Illegal alien sentenced for drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Lucio Javier Escobedo Fernandez, a Mexican national, was sentenced today to 63 months of incarceration for a drug charge, United States Attorney William Ihlenfeld announced.
Fernandez, 28, pleaded guilty in November 2021 to one count of “Conspiracy to Distribute Methamphetamine.” Fernandez admitted to working with others to distribute methamphetamine from March 2018 to August 2020 in Monongalia County and elsewhere.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Mon Metro Drug Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Illegal Possession of Drugs Sends Two Men to Federal PrisonRead the Press Release
SHREVEPORT/LAFAYETTE, La. - United States Attorney Brandon B. Brown announced that two defendants have been sentenced on federal charges in the Western District of Louisiana.
Chief United States District Judge S. Maurice Hicks, Jr. sentenced David Williams, 51, of Shreveport, to 110 months (9 years, 2 months) in prison, followed by 5 years of supervised release, for conspiracy to distribute and possess with intent to distribute methamphetamine. Williams was charged with eight other defendants in a drug trafficking conspiracy. On September 19, 2019, law enforcement agents investigating the case were conducting a wiretap on the phone of one of Williams’ co-defendants. During the call, Williams agreed to meet the co-defendant at a gas station and park in the back. Agents observed Williams arrive and get into the co-defendant’s vehicle for a short time. A trooper with Louisiana State Police conducted a traffic stop of Williams’ vehicle. Inside the vehicle, agents located a hidden compartment under the center console and inside were two plastic baggies containing methamphetamine with a gross weight of 89.7 grams and a small bag of marijuana. Agents intercepted another call on September 24, 2019 wherein Williams informed his co-defendant that he had been caught with the narcotics. Williams pleaded guilty to the charge on March 30, 2021.
This case was investigated by the DEA, ATF, Shreveport Police Department, Caddo Parish Sheriff’s Office, Greenwood Police Department, and Louisiana State Police. The case was prosecuted by Assistant U.S. Attorneys Tennille Gilreath and Allison Duncan.
In Lafayette, Louisiana, United States District Judge David C. Joseph sentenced Keelan Elaire, 25, of Lafayette, to 75 months (6 years, 3 months) in prison, followed by 3 years of supervised release, for illegal possession of controlled substances. Agents with the U.S. Drug Enforcement Administration (DEA) and the Lafayette Narcotics Unit began an investigation into drug trafficking activities in Lafayette. On September 30, 2021, law enforcement officers executed a search warrant at Elaire’s residence and inside the residence found a 9mm pistol and ammunition. In addition, agents found approximately 30 grams of fentanyl packaged in small baggies in a manner consistent with street-level narcotics sales, and a large amount of cash inside vehicles belonging to Elaire and his girlfriend. A second search warrant was executed at another residence where Elaire lived and agents found approximately 650 grams of a mixture or substance containing fentanyl, three m-30 pills believed to contain fentanyl stamped into counterfeit pills, and a money counter. Elaire admitted to agents that the fentanyl and cash belonged to him.
The case was investigated by the DEA and Lafayette Police Department Narcotics Unit and prosecuted by Assistant U.S. Attorneys Robert C. Abendroth and John W. Nickel.
# # #Huntington Man Pleads Guilty to Federal Gun CrimeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on December 30, 2021, officers with the Huntington Police Department observed a vehicle at the 3rd Avenue Speedway. The officers observed the driver and a passenger of the vehicle smoking marijuana.
The passenger, Jonathan Lee Sturkey, 37, was asked to step out of the vehicle. Sturkey admitted to the officers that he had a firearm. Officers retrieved a Smith & Wesson .38-caliber revolver from Sturkey’s left coat pocket. Sturkey was aware that he was prohibited from possessing a firearm because of his 2011 felony drug conviction in U.S. District Court for the Southern District of West Virginia.
Sturkey is scheduled to be sentenced on July 18, 2022, and faces up to 10 years in prison.
United States Attorney Will Thompson made the announcement and commended the Huntington Police Department for conducting the investigation.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Stephanie S. Taylor is prosecuting the case.
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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-21.
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Hocking County couple charged federally with producing child pornographyRead the Press Release
COLUMBUS, Ohio – Two Logan, Ohio, individuals have been transferred to federal custody on charges alleging they created child pornography of at least three minor children, one as young as three-to-four years of age.
Robert Gemienhardt, 36, and Carrie Daniels, 41, each appeared in U.S. District Court on April 8.
According to court documents, the National Center for Missing and Exploited Children (NCMEC) received a tip from Kik messenger regarding Gemienhardt’s alleged online child exploitation activities. The Ohio Internet Crimes Against Children (ICAC) Task Force and the Hocking County Sheriff’s Office then began investigating the allegations.
Subsequent search warrants executed by the Hocking County Sherriff’s Office, in conjunction with the FBI, revealed that Gemienhardt and Daniels were acting together and allegedly produced child pornography through the grooming and sexual abuse of minor victims. It is alleged that Daniels also distributed images of the sexual abuse to Gemienhardt. In addition to the images Gemienhardt received from Daniels, Gemienhardt also possessed more than 1,100 images of child pornography.
Gemienhardt and Daniels were originally arrested on local charges in early March 2022.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Hocking County Sheriff Lanny E. North announced the charges. Assistant United States Attorney Emily Czerniejewski is representing the United States in this case.
Criminal complaints merely contain allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Henry County Woman Sentenced to 13 Years for Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – A Blairstown, Missouri, woman was sentenced in federal court today for her role in a conspiracy to distribute substantial quantities of methamphetamine in the Henry County, Mo., area.
Vita P. Hurt, 67, was sentenced by U.S. District Judge Greg Kays to 13 years and two months in federal prison without parole.
On Aug. 11, 2021, Hurt pleaded guilty to participating in a conspiracy to distribute more than five kilograms of methamphetamine from March 1, 2015, to June 11, 2019. Hurt admitted that she obtained methamphetamine from various sources and distributed it in the Blairstown area. She reported dealing in quantities of more than 500 grams of methamphetamine.
Law enforcement officers searched Hurt’s residence on June 11, 2019, and found two plastic bags that contained 4.77 grams of methamphetamine in her purse. Officers found a jar in Hurt’s bedroom that contained 175.31 grams of a liquid that contained methamphetamine; Hurt said the jar contained acetone that she used to clean methamphetamine.
This case was prosecuted by Assistant U.S. Attorney Byron H. Black. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Missouri State Highway Patrol.
Harrison County man sentenced to 14 years for child pornography chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Randy McKinley, of Bridgeport, West Virginia, was sentenced today to 168 months of incarceration for a child pornography charge, United States Attorney William Ihlenfeld announced.
McKinley, 58, pleaded guilty in November 2021 to one count of “Possession of Child Pornography.” McKinley admitted to having child pornography with children under the age of 12 in October 2020 in Harrison County.
McKinley was also ordered to pay $15,000 in restitution to the victims and victims assistance funds.
Assistant U.S. Attorney Danae DeMasi-Lemon prosecuted the case on behalf of the government. The Bridgeport Police Department, the West Virginia State Police, and the Harrison County Sheriff’s Office investigated
Chief U.S. District Judge Thomas S. Kleeh presided.
Great Falls meth trafficker sentenced to 54 months in prisonRead the Press Release
GREAT FALLS – A Great Falls woman who admitted to working with others to bring approximately seven pounds of methamphetamine from Las Vegas, Nevada, back to Montana for distribution was sentenced today to 54 months in prison, to be followed by four years of supervised release, said U.S. Attorney Leif M. Johnson said.
Ashley Nicole Rico, 34, pleaded guilty in October 2021 to conspiracy to distribute methamphetamine.
Chief U.S. District Judge Brian M. Morris presided.
The government alleged in court documents that Rico pooled money with co-defendants and traveled with them to Las Vegas, Nevada, to buy meth. Rico waited while co-defendants went to the source and purchased the meth and then traveled back to Montana with them. Law enforcement intervened before Rico received her portion of the meth. Law enforcement seized approximately seven pounds of meth. Officers ultimately stopped a vehicle being driven by co-defendant Lillian Lapier and found about 3.6 pounds of meth in the trunk. Law enforcement also executed a search warrant on the Helena residence of co-defendant, Rhonda Lapier, and located three, one-pound bags of meth and $6,132 in a bedroom. Officers stopped another suspect vehicle, driven by Rico, who was arrested on a state warrant. Rico admitted to distributing meth in Great Falls and that she and others had traveled to Las Vegas, picked up meth there and had contributed $1,000 to the deal. Seven pounds of meth is the equivalent of approximately 25,368 doses.
Assistant U.S. Attorney Ethan R. Plaut prosecuted the case, which was investigated by the Russell Country Drug Task Force, the Missouri River Drug Task Force, FBI, Great Falls Police Department, Cascade County Sheriff’s Office and Lewis & Clark County Sheriff’s Office.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Fresno Man Sentenced to over 11 Years in Prison for Receipt and Distribution of Child PornographyRead the Press Release
FRESNO, Calif. — Steven Dale Jones, 43, of Fresno, was sentenced today to 11 and a half years in prison by U.S. District Judge Dale A. Drozd for receipt and distribution of child pornography, U.S. Attorney Phillip A. Talbert announced.
The sentence imposed includes a term of supervised release of 20 years during which Jones’s access to minors, computers, and the internet will be restricted. He will also be required to register as a sex offender. The court has scheduled a hearing for June 27, 2022, to address restitution to victims.
According to court documents, Jones was detected by law enforcement investigators when he was sharing numerous child pornography files on a BitTorrent file-sharing network in December 2016. He admitted to investigating agents that he had used file-sharing programs for several years to obtain child pornography. He admitted in court, when pleading guilty, that between January 2012 and April 2017, he used a BitTorrent program and the TOR network to search for and download thousands of images of child pornography.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney David Gappa and Child Exploitation and Obscenity Section Trial Attorneys Alicia Bove and Nadia Prinz prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Fourth Defendant Pleads Guilty in Scheme to Employ Homeless Individuals to Cash Bogus Business ChecksRead the Press Release
PROVIDENCE, R.I. – A fourth Georgia man charged in federal court in Rhode Island with participating in a long-running scheme to entice homeless and transient individuals in the Providence area to cash counterfeit business checks in return for cash payments pled guilty today to conspiracy to commit bank fraud, announced United States Attorney Zachary A. Cunha.
Cortavious Benford, 28, of Atlanta, GA, pled guilty today; Austin Weaver, 26, of Decatur, GA, pled guilty on April 6; Jalen Ronald Stanford, 28, of East Point, GA, pled guilty on March 10; and Michael Williams, 27, of East Point, GA, pled guilty on July 7, 2021.
Benford, Weaver, and Stanford are awaiting sentencing; Williams was sentenced by U.S. District Chief Judge John J. McConnell, Jr., on February 16, 2022, to 41 months in federal prison to be followed by 3 years of federal supervised release. A defendant’s sentence is determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
According to charging documents, homeless and other individuals enlisted by the four men were provided a bogus business check in their name and driven to financial institutions in Rhode Island, Massachusetts, Connecticut, Maine, and elsewhere. The bogus business checks had been created by members of the conspiracy using stolen banking information of actual businesses. The individuals recruited by the conspirators were instructed on how to enter the bank, cash the check using their own Rhode Island ID card or driver’s license for identification, and then return to the vehicle with the cash. Upon their return, a member of the conspiracy paid them between $100 and $200.
Two members of the conspiracy, Michael Williams and Cortavious Benford, were arrested on February 5, 2021, after they recruited and drove a homeless person to a Providence bank. They threatened to injure him if he failed to provide them with all of the check’s proceeds. Despite the threat, once inside the bank, the man pointed out the vehicle parked outside of the bank as containing individuals who provided him with a counterfeit check. Providence Police located the vehicle a short distance away and arrested Williams and Benford. They were in possession of $12,000 in cash.
A court-authorized search of a Providence residence by Providence Police and the United States Secret Service resulted in the seizure of a computer, which had a program used to design and print checks; a printer; blank check stock; and an envelope containing stolen checks and approximately $5,000 in cash. Several completed fraudulent checks were found on the computer.
Jalen Ronald Stanford was arrested on February 25, 2021; Austin Weaver was arrested on March 3, 2021.
The investigation determined that members of the conspiracy attempted to cash approximately $677,687 worth of counterfeit checks throughout the New England region, causing losses to financial institutions of approximately $480,000.
The cases are being prosecuted by Assistant U.S. Attorney Lee H. Vilker.
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Former Portland Gang Member Sentenced to Federal Prison for Illegal Firearm PossessionRead the Press Release
PORTLAND, Ore.—A former member of Portland’s Hoover Criminal Gang was sentenced to federal prison today for illegally possessing a firearm as a convicted felon.
Javontae Nabien Gibson, 28, of Portland, was sentenced to 36 months in federal prison and three years’ supervised release.
According to court documents, as part of a federal racketeering investigation of the Hoover Criminal Gang, law enforcement obtained photos Gibson, a convicted felon, was posting online as advertisements for the sale of firearms and drugs. In August 2020, investigators executed a search warrant on Gibson’s northeast Portland apartment. They found and seized six handguns, two rifles, more than a dozen magazines, hundreds of rounds of ammunition, and approximately $5,000 in cash.
On August 19, 2020, a federal grand jury in Portland returned an indictment charging Gibson with illegally possessing a firearm as a convicted felon. On November 15, 2021, he pleaded guilty to the single charge.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the Portland Police Bureau, Multnomah County Sheriff’s Office, Gresham Police Department, and FBI. It was prosecuted by the U.S. Attorney’s Office for the District of Oregon.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Former Managing Partner of Manhattan Investment Advisory Firm Sentenced to 12 Years for Defrauding Investors in an over $120 Million Ponzi-Like SchemeRead the Press Release
Damian Williams, United States Attorney for the Southern District of New York, announced that DAVID HU, former managing partner and chief investment officer of the Manhattan-based investment advisory firm International Investment Group (“IIG”), was sentenced today to 12 years in prison for his role in an over $120 million scheme to defraud IIG’s clients and investors. HU pled guilty in January 2021 to investment adviser fraud, securities fraud, and wire fraud offenses. U.S. District Judge Alvin K. Hellerstein announced today’s sentence, which will be formally imposed following the conclusion of forfeiture and restitution proceedings in the case.
U.S. Attorney Damian Williams said: “David Hu shirked his fiduciary responsibilities and defrauded IIG funds and investors for more than a decade. Hu’s lies caused millions of dollars of losses. Hu mismarked millions of dollars of loan assets, falsified paperwork to create fake loans, sold overvalued and fake loans, used the proceeds from those sales to pay off earlier investors, and falsified paperwork to deceive auditors and avoid scrutiny. Today’s sentence sends the message that brazen fraud does not pay and will be appropriately punished.”
According to the Information and based on statements made and documents filed in federal court in this case:
Background of IIG
HU and co-conspirator MARTIN SILVER founded IIG in 1994. HU was a managing partner and the chief investment officer of IIG. IIG, an SEC-registered investment adviser, provided investment management and advisory services, including for three private funds that it operated: (1) the IIG Trade Opportunities Fund N.V. (“TOF”); (2) the IIG Global Trade Finance Fund, Ltd. (“GTFF”); and (3) the IIG Structured Trade Finance Fund, Ltd. (“STFF”). IIG also advised the Venezuela Recovery Fund (“VRF”), a fund that managed the remaining assets of a failed Venezuelan bank (VRF, together with TOF, GTFF, and STFF, the “IIG Funds”). In March 2018, IIG reported to the SEC that it had approximately $373 million in assets under management.
IIG advertised itself as specializing in global trade financing, particularly in providing trade finance loans to small and medium-sized businesses. IIG’s principal investment advisory strategy, including with respect to the IIG Funds, was investing in trade finance loans that it also originated. Trade finance loans are used by small and medium-sized companies, typically exporters and importers, to facilitate international trade. IIG’s purported expertise was in trade finance loans to borrowers located in Central or South America, and in a variety of industries, with a stated focus on “soft commodities,” such as coffee, agriculture, fishing, and other food products. IIG’s trade finance loans were purportedly secured by collateral, such as the underlying traded goods, assets held by the borrowers, or expected payments by third parties.
Investments in TOF, STFF, and GTFF were marketed by IIG to institutional investors, such as pension funds, hedge funds, and insurers. In offering memoranda and communications with investors, IIG advertised strict risk controls, such as promises to use diligence to carefully select borrowers or issuers with trusted management and marketable assets, and portfolio concentration limits based on borrower, developing country, and industry.
IIG purported to value the trade finance loans in the IIG Funds on a regular basis. IIG and, in turn, HU, received a performance fee with respect to the IIG Funds, as well as a management fee, which was calculated as a percentage of the assets under management held in the Funds.
The Scheme
From approximately 2007 to 2019, HU conspired to defraud investors in IIG-managed funds by: (i) overvaluing distressed loans held by the IIG Funds, (ii) falsifying paperwork to create a series of fake loans that were classified, fraudulently, as positively performing loans, and to otherwise hide losses, (iii) selling overvalued and fake loans to a collateralized loan obligation trust and new private funds established and advised by IIG, and (iv) using the proceeds from those fraudulent sales to generate liquidity required to pay off earlier investors in a Ponzi-like manner.
The scheme HU participated in involved, among other things:
- Mismarking the value of multiple loans that had, in reality, defaulted (the “Defaulted Loans”).
- Mismarking multiple loans that were distressed (the “Distressed Loans”). These Distressed Loans included, for example, loans for which the borrowers had missed multiple scheduled payments.
- Creating fictitious loans in order to hide the losses resulting from the Defaulted Loans, including from auditors reviewing TOF’s financials, by removing the Defaulted Loans from the TOF portfolio and replacing them with tens of millions of dollars in fictitious loans to purported borrowers in foreign countries (the “Fake Loans”).
- Using a collateralized loan obligation trust (the “CLO Trust”) to create liquidity through investments in fraudulent loans.
- Using the CLO Trust and Panamanian shell entities to cover up losses. Specifically, HU caused the creation of shell entities domiciled in Panama (“Panamanian Shell Entities”) that were controlled by an IIG nominee. Then, HU caused the CLO Trust to enter into fake loan transactions with the Panamanian Shell Entities. HU caused the creation of fake promissory notes and other paperwork to conceal the fraudulent nature of the loans to the Panamanian Shell Entities. Finally, under the guise of the fake loan transactions with the Panamanian Shell Entities, the CLO Trust disbursed funds that HU diverted to TOF in order to pay off TOF’s various debts and obligations.
- Generating liquidity by selling fraudulent loans to two new private IIG managed funds: GTFF and STFF. A foreign institutional investor provided $70 million as the seed investment for GTFF, and, later, $130 million as the seed investment for STFF.
- Inducing a retail mutual fund to invest in a fictitious $6 million loan. Specifically, in or about December 2012, IIG became an investment adviser to an open-ended mutual fund marketed to retail investors (the “Retail Fund”). As an investment adviser to the Retail Fund, IIG made investment recommendations, including recommendations that the Retail Fund invest in trade finance loans originated by IIG. In or about February 2017, a borrower (the “Argentine Borrower”) had failed to pay the principal on an approximately $6 million loan (“Loan-1”) in which the Retail Fund had invested and which was nearing its maturity date. In or about March 2017, HU caused approximately $6 million to be transferred into an account associated with the Argentine Borrower from the account of a different borrower (“Borrower-1”), and further directed the funds from Borrower-1’s account to pay off the debt owed by the Argentine Borrower to the Retail Fund. To replace the funds from Borrower-1’s account that were used to make it appear as though the Argentine Borrower had repaid its debt to the Retail Fund, HU fraudulently induced the Retail Fund to invest in a new, fake $6 million loan to the Argentine Borrower (the “New Loan”). HU then directed that the proceeds from the fraudulently induced New Loan be transferred into Borrower-1’s account, effectively reimbursing the account for the earlier $6 million transfer to the Retail Fund. To further conceal the fraudulent nature of the New Loan, HU caused the creation of forged documents to make it appear as though the New Loan was a legitimate loan to the Argentine Borrower.
* * *
In addition to the prison sentence, HU, 64, of West Orange, New Jersey, was ordered to serve three years of supervised release. The Court also announced that it would impose restitution to victims and forfeiture of the proceeds of the offenses, with the amounts to be determined at a later date.
SILVER pled guilty to investment adviser fraud, securities fraud, and wire fraud offenses in April 2021 and his sentencing is pending.
Mr. Williams praised the investigative work of the FBI and also thanked the U.S. Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Drew Skinner, Negar Tekeei, and Alex Rossmiller are in charge of the prosecution.
Former Indiana State Senator Pleads Guilty to Federal Campaign Finance Violation and Making False Statements to the FBIRead the Press Release
INDIANAPOLIS – Darryl Brent Waltz, 48, of Greenwood, Indiana, pled guilty in federal court today to two felonies: making and receiving conduit contributions, and making false statements to the Federal Bureau of Investigation. Waltz faces up to five years in prison for each offense. He will be sentenced by U.S. District Court Judge James R. Sweeney II at a later date.
The announcement was made by Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, Kenneth A. Polite, Jr., Assistant Attorney General for the Criminal Division of the U.S. Department of Justice, and Steven D’Antuono, Assistant Director in Charge of the FBI’s Washington Field Office.
Trial for the other individual charged in the case, John S. Keeler, is scheduled to begin on April 18, 2022. Mr. Keeler is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Federal Official Sentenced to Prison for Contract Bribery Conspiracy and Tax FraudRead the Press Release
LAS VEGAS – A former official with the U.S. Bureau of Reclamation (USBR) was sentenced today to two years and six months in prison for his role in a bribery scheme involving a federal contract and committing $1.5 million in tax fraud.
Frederick J. Leavitt, 50, of Henderson, Nev., pleaded guilty in October 2019 to one count of conspiracy to commit honest services fraud and one count of conspiracy to defraud the United States. In addition to imprisonment, U.S. District Judge Andrew P. Gordon ordered Leavitt to pay restitution in the amount of $704,002.
According to court documents, Leavitt had been employed by the USBR as Director of the Financial Management Office for the Lower Colorado Region, which includes the Hoover Dam. From about February 2015 through about February 2016, Leavitt and co-conspirator Dustin M. Lewis — a certified public accountant employed by L.L. Bradford & Company, an accounting firm in Las Vegas — devised and executed a scheme to defraud the United States. Leavitt had been assigned to a selection committee that awarded government contracts to perform auditing services for USBR programs. As part of the honest services fraud conspiracy, Lewis paid more than $150,000 in bribes to Leavitt, which they agreed to conceal. In exchange, Leavitt steered an audit contract to L.L. Bradford.
In a separate tax fraud conspiracy, Leavitt and Lewis worked together to file fraudulent tax forms for tax year 2013, on behalf of six business entities that claimed over $11,000,000 collectively in false business deductions. As a result, they caused a tax loss to the IRS in excess of $1.5 million.
Co-conspirator Lewis pleaded guilty in January 2020. He is scheduled to be sentenced on August 18, 2022.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
This case was investigated by the FBI, the Internal Revenue Service – Criminal Investigation, and the Office of Inspector General for the Department of Interior. Assistant U.S. Attorney Steven Myhre and Tax Division Trial Attorney Patrick Burns are prosecuting the case.
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Former Department of Homeland Security Employee Convicted of Scheme to Defraud the United StatesRead the Press Release
A former Acting Branch Chief of the Information Technology Division of the U.S. Department of Homeland Security (DHS-OIG) was convicted today by a jury of multiple federal charges stemming from the theft of proprietary software and sensitive databases from the U.S. government.
Murali Y. Venkata, 56, of Aldie, Virginia, was convicted of conspiracy to defraud the U.S. government, theft of government property, wire fraud, aggravated identity theft, and obstruction. Venkata, along with co-conspirators Charles K. Edwards, who previously served as the Acting Inspector General of DHS-OIG, and Sonal Patel, another official at DHS-OIG, executed a scheme to steal confidential and proprietary software from the government along with the personally identifying information (PII) of hundreds of thousands of federal employees. Venkata worked for DHS-OIG from June 2010 until he was placed on administrative leave in October 2017 following the charges in this case, including serving for a period as an Acting Branch Chief in the Information Technology Division. Before he joined DHS-OIG, Venkata worked at the U.S. Postal Service’s Office of Inspector General (USPS-OIG). At both agencies, Venkata had access to software systems, including one used for case management and other systems holding PII of federal employees.
Edwards pleaded guilty in January 2022 and Patel pleaded guilty in April 2019 to stealing property from the U.S. government for the purpose of developing a commercial version of a case management system to be offered for sale to government agencies. Venkata was convicted for his role in the conspiracy, which included exfiltrating proprietary source code and sensitive databases from DHS-OIG facilities, as well as assisting Edwards in setting up three computer servers in Edwards’s residence so that software developers in India could access the servers remotely and develop the commercial version of the case management system.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Matthew M. Graves for the District of Columbia, Inspector General Joseph V. Cuffari of DHS-OIG, and Inspector General Tammy Whitcomb of USPS-OIG made the announcement.
Senior Litigation Counsel Victor R. Salgado and Trial Attorney Celia Choy of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Christine M. Macey, of the Fraud, Public Corruption, and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia prosecuted the case. Assistant U.S. Attorney David B. Kent, also of the Fraud, Public Corruption, and Civil Rights Section for the District of Columbia, provided significant assistance in the investigation of this matter.
Former Department of Homeland Security Employee Convicted of Scheme to Defraud the United StatesRead the Press Release
WASHINGTON - A former Acting Branch Chief of the Information Technology Division of the U.S. Department of Homeland Security (DHS-OIG) was convicted today by a jury of multiple federal charges stemming from the theft of proprietary software and sensitive databases from the U.S. government.
Murali Y. Venkata, 56, of Aldie, Virginia, was convicted of conspiracy to defraud the U.S. government, theft of government property, wire fraud, aggravated identity theft, and obstruction. Venkata, along with co-conspirators Charles K. Edwards, who previously served as the Acting Inspector General of DHS-OIG, and Sonal Patel, another official at DHS-OIG, executed a scheme to steal confidential and proprietary software from the government along with the personally identifying information (PII) of hundreds of thousands of federal employees.
Venkata worked for DHS-OIG from June 2010 until he was placed on administrative leave in October 2017 following the charges in this case, including serving for a period as an Acting Branch Chief in the Information Technology Division. Before he joined DHS-OIG, Venkata worked at the U.S. Postal Service’s Office of Inspector General (USPS-OIG). At both agencies, Venkata had access to software systems, including one used for case management and other systems holding PII of federal employees.
Edwards pleaded guilty in January 2022 and Patel pleaded guilty in April 2019 to stealing property from the U.S. government for the purpose of developing a commercial version of a case management system to be offered for sale to government agencies. Venkata was convicted for his role in the conspiracy, which included exfiltrating proprietary source code and sensitive databases from DHS-OIG facilities, as well as assisting Edwards in setting up three computer servers in Edwards’s residence so that software developers in India could access the servers remotely and develop the commercial version of the case management system.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Matthew M. Graves for the District of Columbia, Inspector General Joseph V. Cuffari of DHS-OIG, and Inspector General Tammy Whitcomb of USPS-OIG made the announcement.
Senior Litigation Counsel Victor R. Salgado and Trial Attorney Celia Choy, of the Criminal Division’s Public Integrity Section, and Assistant U.S. Attorney Christine M. Macey, of the Fraud, Public Corruption, and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia, prosecuted the case. Assistant U.S. Attorney David B. Kent, also of the Fraud, Public Corruption, and Civil Rights Section for the District of Columbia, provided significant assistance in the investigation of this matter.
Former Controller Charged with Stealing $2.3 Million from EmployerRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man was charged with embezzling over $2.3 million from a New York-based company where he had been the controller since 2001, U.S. Attorney Philip R. Sellinger announced today.
Gerard Beauzile, 61, of South Plainfield, New Jersey, is charged by indictment with 10 counts of wire fraud. He appeared by videoconference today before U.S. Magistrate Judge James B. Clark, III, and was released on $200,000 unsecured bond.
According to documents filed in this case and statements made in court:
From 2001 through February 2021, Beauzile worked as controller, heading a New York-based company’s accounting department. On a monthly basis, from 2014 through December 2020, Beauzile issued company checks to himself, and deposited those checks into his personal bank account at bank branches in New York, near his employer’s headquarters.
Over the course of the scheme, Beauzile issued approximately 140 checks to himself totaling in excess of $2.3 million, which he used for his own benefit. Beauzile hid his scheme by failing to enter some of the checks into the victim company’s accounting system; causing checks to appear as though they were made payable to vendors when, in fact, Beauzile issued them to himself; changing the vendors invoices to correspond with the accounting of those checks; and falsifying the victim company’s bank account statements.
Each count of wire fraud is punishable by a maximum penalty of 20 years in prison and a maximum $250,000 fine.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George Crouch in Newark, with the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorney Blake Coppotelli of the Economic Crimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed to be innocent unless and until proven guilty.
Former Chief Operating Officer of Davis Bio-Pesticide Company Sentenced to 2 Years in Prison for Conspiracy to Commit Mail, Wire, and Securities FraudRead the Press Release
SACRAMENTO, Calif. — Hector Absi, 51, of Las Vegas, Nevada, was sentenced today to two years in prison for conspiracy to commit mail fraud, wire fraud, and securities fraud, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Absi is the former head of the sales department of Marrone Bio Innovations Inc. (MBI), a company headquartered in Davis that produces “bio-based” pesticides. Absi also served as MBI’s Chief Operating Officer from January 2014 until his resignation in August 2014. MBI is a publicly traded company; its stock trades on the NASDAQ exchange under the ticker symbol “MBII.” As a publicly traded company, it is required to file quarterly and annual reports with the Securities and Exchange Commission (SEC). In its reports, MBI stated that it recorded revenue in accordance with generally accepted accounting principles (GAAP).
On Oct. 17, 2019, Absi pleaded guilty conspiracy to commit mail fraud, wire fraud, and securities fraud. According to his plea agreement, in order to increase sales, Absi sold MBI products to customers with side agreements that offered “inventory protection” under which MBI agreed to either repurchase the product from the customer or continue the date by which the customer would need to make full payment for the product. Under GAAP, revenue from sales that include such agreements cannot be recognized on the company’s books at the time of the sales. Between March 2013 and July 2014, Absi conspired with at least one other MBI employee to misrepresent to MBI’s accounting department, its external auditors, and the investing public that MBI had made no sales under such terms. By concealing the practice, Absi caused MBI to report a doubling of its revenue in 2013 in comparison to 2012. Absi also conspired to backdate the delivery of certain shipments of MBI’s products to enhance MBI’s reported revenues for the quarter. Absi received a performance-based bonus and exercised stock options during a time when MBI’s inflated revenue figures were being reported.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Lee S. Bickley prosecuted the case.
A restitution hearing is scheduled for June 13, 2022.
Former Caltrans Contract Manager Pleads Guilty to Bid Rigging and BriberyRead the Press Release
A former contract manager for the California Department of Transportation (Caltrans) pleaded guilty today for his role in a bid-rigging and bribery scheme involving Caltrans improvement and repair contracts.
According to a plea agreement filed today in the U.S. District Court for the Eastern District of California in Sacramento, Choon Foo “Keith” Yong and his co-conspirators engaged in a conspiracy, from early 2015 through late 2019, to thwart the competitive bidding process for Caltrans contracts to ensure that companies controlled by Yong’s co-conspirators submitted the winning bid and would be awarded the contract. Yong is also charged with accepting bribes while working for Caltrans, a California state agency that receives significant federal funding. Yong received the bribes in the form of cash payments, wine, furniture and remodeling services on his home. The total value of the payments and benefits Yong received exceeded $800,000. In addition to his guilty plea, Yong agreed to pay restitution and cooperate with the ongoing investigation.
“Today’s guilty plea is the first in the Antitrust Division’s ongoing investigation into bribery and bid rigging at Caltrans,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Given the Infrastructure Investment and Jobs Act’s $1.2 trillion authorization and the critical role of transportation infrastructure in our nation, rooting out bid-rigging schemes that cheat the competitive bidding process remains a top priority for the division and its Procurement Collusion Strike Force partners.”
Yong received more than $800,000 of bribes in the form of cash payments, wine, furniture, and remodeling services on his home.Yong is scheduled to be sentenced on Aug. 22 by U.S. District Judge Kimberly J. Mueller. For the bid-rigging conspiracy, Yong faces a maximum statutory penalty of 10 years of incarceration and a fine of up to $1 million or twice the gross pecuniary gain or twice the gross pecuniary loss resulting from the offense. For bribery concerning programs receiving federal funds, Yong faces a maximum statutory penalty of 10 years of incarceration and a fine of up to $250,000 or twice the gross pecuniary gain or twice the gross pecuniary loss resulting from the offense. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and U.S. Sentencing Guidelines.
Today’s guilty plea is the first to result from a joint investigation being conducted by the Antitrust Division’s San Francisco office, the U.S. Attorney’s Office for the Eastern District of California, and the FBI’s Sacramento Field Office as part of the Justice Department’s Procurement Collusion Strike Force (PCSF).
In November 2019, the Department of Justice created the Procurement Collusion Strike Force (PCSF), a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government – federal, state and local. In fall 2020, the Strike Force expanded its footprint with the launch of PCSF: Global, designed to deter, detect, investigate and prosecute collusive schemes that target government spending outside of the United States. To learn more about the PCSF, or to report information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to defense-related spending.
Former Caltrans Contract Manager Pleads Guilty to Bid Rigging and BriberyRead the Press Release
A former contract manager for the California Department of Transportation (Caltrans) pleaded guilty today for his role in a bid-rigging and bribery scheme involving Caltrans improvement and repair contracts.
According to a plea agreement filed today in the U.S. District Court for the Eastern District of California in Sacramento, Choon Foo “Keith” Yong and his co-conspirators engaged in a conspiracy, from early 2015 through late 2019, to thwart the competitive bidding process for Caltrans contracts to ensure that companies controlled by Yong’s co-conspirators submitted the winning bid and would be awarded the contract. Yong is also charged with accepting bribes while working for Caltrans, a California state agency that receives significant federal funding. Yong received the bribes in the form of cash payments, wine, furniture and remodeling services on his home. The total value of the payments and benefits Yong received exceeded $800,000. In addition to his guilty plea, Yong agreed to pay restitution and cooperate with the ongoing investigation.
“Today’s guilty plea is the first in the Antitrust Division’s ongoing investigation into bribery and bid rigging at Caltrans,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Given the Infrastructure Investment and Jobs Act’s $1.2 trillion authorization and the critical role of transportation infrastructure in our nation, rooting out bid-rigging schemes that cheat the competitive bidding process remains a top priority for the division and its Procurement Collusion Strike Force partners.”
Yong received more than $800,000 of bribes in the form of cash payments, wine, furniture, and remodeling services on his home.
Yong is scheduled to be sentenced on Aug. 22 by U.S. District Judge Kimberly J. Mueller. For the bid-rigging conspiracy, Yong faces a maximum statutory penalty of 10 years of incarceration and a fine of up to $1 million or twice the gross pecuniary gain or twice the gross pecuniary loss resulting from the offense. For bribery concerning programs receiving federal funds, Yong faces a maximum statutory penalty of 10 years of incarceration and a fine of up to $250,000 or twice the gross pecuniary gain or twice the gross pecuniary loss resulting from the offense. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and U.S. Sentencing Guidelines.
Today’s guilty plea is the first to result from a joint investigation being conducted by the Antitrust Division’s San Francisco office, the U.S. Attorney’s Office for the Eastern District of California, and the FBI’s Sacramento Field Office as part of the Justice Department’s Procurement Collusion Strike Force (PCSF).
In November 2019, the Department of Justice created the Procurement Collusion Strike Force (PCSF), a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government – federal, state and local. In fall 2020, the Strike Force expanded its footprint with the launch of PCSF: Global, designed to deter, detect, investigate and prosecute collusive schemes that target government spending outside of the United States. To learn more about the PCSF, or to report information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to defense-related spending.
Former Alabama Correctional Sergeant Sentenced for Assaulting InmatesRead the Press Release
Montgomery, Alabama – The Justice Department today announced that Ulysses Oliver Jr., 47, a former Alabama Department of Corrections Sergeant, was sentenced in federal court to 30 months of imprisonment, to be followed by three years of supervised release. There is no parole in the federal system. Oliver previously pleaded guilty to assaulting two inmates at ADOC’s Elmore Correctional Facility.
According to court documents, on Feb. 16, 2019, Oliver went to an observation room holding the two inmate victims, who were handcuffed and sitting quietly. Oliver pulled the first victim from the observation room into an adjacent hallway, where he struck the victim multiple times with his fists and feet, and then used his collapsible baton to strike the victim approximately nineteen times. After assaulting the first victim, Oliver returned to the observation room and pulled the second victim into the hallway. Oliver kicked the second victim and used his baton to strike the victim approximately ten times. During the assaults, the victims were handcuffed behind their backs, did not resist, and posed no threat. Afterward, Oliver returned to the observation room where the victims were being held and shoved the tip of his baton into the face of one of the victims, lacerating the victim’s face. Oliver assaulted the victims as punishment because he believed that the victims had brought contraband into the facility. Oliver assaulted the victims in the presence of, or within earshot of, other ADOC correctional officers, who did not intervene to prevent the assaults.
Two other former corrections officers have pleaded guilty in connection with this incident, and a third was convicted at trial. Former ADOC correctional officers Bryanna Mosley and Leon Williams pleaded guilty in May and July 2019, respectively, to failing to intervene to stop the assaults. Another officer, former ADOC correctional lieutenant Willie Burks, who was the shift commander during the Feb. 16, 2019 incident, was convicted by a federal jury on July 21, 2021, of failing to intervene to stop Oliver from assaulting the second inmate.
“The Constitution forbids cruel and unusual punishment, which includes malicious uses of force by correctional officers,” said Assistant Attorney General Kristen Clarke of the Civil Rights Division. “The Department of Justice will hold to account officers who brutalize incarcerated persons.”
“The actions of Mr. Oliver and his co-defendants run completely counter to the responsibilities and trust given to correctional officers,” said U.S. Attorney Sandra J. Stewart for the Middle District of Alabama. “Oliver knew that the use of force in this case was unnecessary and excessive, and so did the other officers involved. While I fully support the difficult and dangerous jobs that these officers undertake each day, my office remains committed to holding those that ignore their oaths accountable.”
"Corrections officers are expected to safeguard the civil rights of prisoners,” stated Special Agent in Charge Paul Brown with the FBI’s Mobile Division. “These officers ignored their duties and must be held to account for their actions. The FBI will continue to work with our law enforcement partners to investigate violations of people’s civil rights."
“The ADOC has zero tolerance for violence within its facilities, including excessive use-of-force by staff. Excessive use-of-force is not acceptable under any circumstances, and preventing these incidents is a high priority for the Department,” said Chief Law Enforcement Officer Arnaldo Mercado of the Alabama Department of Corrections Law Enforcement Services Division. “When an allegation of excessive force is made, or an incident of such nature is reported or discovered, the Department conducts a thorough investigation. Employees who are found to have violated the highest standards of law enforcement, to which the ADOC is steadfastly committed, will be referred for prosecution and the LESD will support prosecution to the full extent of the law.”
This case was investigated by the FBI’s Mobile Division and ADOC’s Law Enforcement Services Division. Assistant U.S. Attorney Eric Counts of the Middle District of Alabama and Trial Attorney David Reese of the Civil Rights Division prosecuted the case.
Folsom Man Pleads Guilty to Scheme Involving the Sale of Stolen MacBooksRead the Press Release
SACRAMENTO, Calif. — Philip James, 35, of Folsom, pleaded guilty today to transporting stolen property interstate, U.S. Attorney Phillip A. Talbert announced.
According to court documents, from October 2015 through June 2020, James purchased almost 1,000 stolen Apple MacBooks from multiple individuals, including Cory Beck, Eric Castaneda, and Jonas Jarut. After purchasing the MacBooks, James generally resold and shipped them from Folsom to buyers located outside California.
Beck worked in the information technology department at an electric vehicle and clean energy company based in Palo Alto, “Company 1.” Beginning in October 2015, Beck stole new MacBooks from Company 1 and sold them to James. In total, James purchased at least 100 MacBooks that Beck stole from Company 1.
Eric Castaneda’s sister, Patricia Castaneda, worked in the School of Humanities and Sciences at a private university in Stanford, California, “University 1.” Beginning in February 2016, Patricia Castaneda stole new MacBooks from University 1 and gave them to Eric Castaneda to sell to James. In total, James purchased from Eric Castaneda at least 800 MacBooks that Patricia Castaneda stole from University 1.
Jarut worked as a database administrator in the Graduate School of Education at a public university in Berkeley, “University 2.” Beginning in March 2019, Jarut stole new MacBooks from University 2 and sold them to James. In total, James purchased at least 90 MacBooks Jarut stole from University 2.
As part of his plea agreement, James agreed to pay restitution as follows: $2,283,155 to University 1; $256,485 to Company 1; and $209,057 to University 2.
This case is a product of an investigation by the IRS-Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorney Matthew Thuesen is prosecuting the case.
Chief U.S. District Judge Kimberly J. Mueller is scheduled to sentence James on July 25, 2022. Jarut faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the court’s discretion after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
In separate cases, Eric Castaneda, Patricia Castaneda, Beck, and Jarut pleaded guilty for their roles in the scheme.
Federal Officials Unveil Two Indictments Charging 14 People with Illegally Trafficking 400 Firearms into PhiladelphiaRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams, Bureau of Alcohol, Tobacco, Firearms and Explosives Philadelphia Field Division Special Agent in charge Matt Varisco announced federal charges in two separate interstate firearms trafficking cases at a press conference held at Philadelphia ATF Headquarters today. Both cases involve individuals illegally trafficking firearms from states in the southern United States into Philadelphia, a large northeastern city, a fact pattern which is known as the ‘iron pipeline.’ Taken together, both trafficking conspiracies are alleged to be responsible for illegally putting approximately 400 firearms on the streets.
In the first case, captioned United States v. Norman, et al, the following 11 defendants have been charged by Indictment with conspiracy to deal firearms without a license and to make a false statement to a federally licensed firearms dealer:
- Fredrick Norman, 25, of Atlanta, GA;
- Brianna Walker a/k/a “Mars, 23, of Atlanta, GA;
- Charles O’Bannon a/k/a “Chizzy,” 24, of Villa Rica, GA;
- Stephen Norman, 23, of Villa Rica, GA;
- Devin Church a/k/a “Lant,” 24, of Villa Rica, GA;
- Kenneth Burgos a/k/a “Peppito,” 23, of Philadelphia, PA;
- Edwin Burgos a/k/a “Rock,” 29, of Philadelphia, PA;
- Roger Millington, 25, of Philadelphia, PA;
- Ernest Payton, 30, of Philadelphia, PA;
- Roselmy Rodriguez, 22, of Philadelphia, PA; and
- Brianna Reed, 21, of Shippensburg, PA.
Additionally, defendants Edwin Burgos and Kenneth Burgos were each charged with dealing firearms without a license.
In the second case, captioned United States v. Ware, et al, the following three people have been charged by Indictment with conspiracy to deal firearms without a license and to make a false statement to a federally licensed firearms dealer:
- Muhammad Ware a/k/a “Moo,” 26, of Myrtle Beach, SC;
- Haneef Vaughn a/k/a “Neef,” 25, of Philadelphia, PA; and
- Jabreel Vaughn a/k/a “Breely,” 20, of Elkins Park, PA.
Additionally, defendant Muhammad Ware is charged with dealing firearms without a license.
United States v. Norman, et al:
Beginning in October 2020, ATF Special Agents identified multiple firearms which were recovered in the Philadelphia area as having been originally purchased in Georgia. The short time frame between the firearms’ purchase in Georgia and subsequent recovery in Philadelphia (known as a short “time to crime” period) indicated that the weapons may have been trafficked into the city.
According to the Indictment, subsequent investigation showed that over the course of six months, the conspiracy led by defendant Norman allegedly purchased nearly 300 firearms from dealers in and around Atlanta, and transported the firearms to Philadelphia for distribution and sale on the black market in exchange for approximately $116,000.
United States v. Ware, et al:
Beginning in March 2020, ATF Special Agents identified multiple firearms which were recovered in Philadelphia as having been originally purchased in South Carolina. Agents subsequently learned about a number of additional firearms recovered in Philadelphia with short “time to crime” periods that indicated they may have been trafficked into the city, just as in Norman, et al.
According to the Indictment, the recovered firearms were concentrated in a particular area of Philadelphia and were originally purchased near Myrtle Beach, SC. Subsequent investigation showed that defendant Ware had allegedly purchased several of the recovered firearms, and conspired and communicated with defendants Haneef Vaughn and Jabreel Vaughn, and others about the purchase, transportation and sale on the black market of over 100 illegal firearms.
“When I announced the All Hands On Deck initiative in April 2021, I vowed that our Office would do all we could to stop the violence ravaging our city and support the Philadelphia Police Department in its work,” said U.S. Attorney Williams. “Earlier this year, the Justice Department announced strategies to fight violent crime, including cracking down on firearms trafficking and the ‘iron pipeline’ – the illegal flow of guns sold in mostly southern states, transported up the East Coast, and found at crime scenes in northeastern cities like ours. The two indictments announced today, charging fourteen people with iron pipeline firearms trafficking conspiracies, show that we are aggressively focused on this work.”
“Preventing the illegal use and trafficking of firearms is a central focus of ATF's strategy to combat violent crime and protect our communities,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “Illegally purchased firearms often end up in the hands of violent offenders and affect communities near and far. Ensuring firearms traffickers are aggressively investigated and swiftly brought to justice will remain a top priority for our firearms trafficking task force. And this collaborative effort between all of our law enforcement counterparts is a prime example of such.”
In Norman, et al: If convicted of all charges, Edwin Burgos and Kenneth Burgos face a statutory maximum penalty of 10 years in prison. All other defendants face a statutory maximum penalty of 5 years in prison.
In Ware, et al: If convicted of all charges, defendant Ware faces a statutory maximum penalty of 10 years in prison. Defendants Haneef Vaughn and Jabreel Vaughn each face a statutory maximum penalty of 5 years in prison.
These cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The Norman, et al case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives Philadelphia, Atlanta, and Harrisburg Field Offices, the Philadelphia Police Department, the Pennsylvania State Police, Homeland Security Investigations, and the U.S. Marshals, and is being prosecuted by Assistant United States Attorney Priya T. De Souza.
The Ware, et al case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and is being prosecuted by Assistant United States Attorney Mark Miller and Special Assistant United States Attorney Martin Howley.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal Jury Convicts Stearns County Man for his Role in Meth Distribution ConspiracyRead the Press Release
MINNEAPOLIS – A federal jury convicted a Stearns County man of conspiring to distribute methamphetamine while incarcerated, announced U.S. Attorney Andrew M. Luger.
Following a five-day trial before Senior U.S. District Judge David S. Doty, Robert Edward Maloney, Jr., 39, was convicted on April 8, 2022, of a single count of conspiring to distribute methamphetamine. A sentencing hearing will be scheduled at a later time.
According to the evidence presented at trial, in spring 2019, Maloney, while incarcerated in a Minnesota state prison, coordinated with others outside the prison to sell methamphetamine. While Maloney was incarcerated, he communicated with his co-conspirators via jail calls. Law enforcement agents obtained recordings of Maloney’s jail calls, which revealed Maloney’s direction and coordination, including arranging meetings and discussing methamphetamine prices and quantities.
This case was the result of an investigation conducted by the FBI Safe Streets Task Force, the Minnesota Bureau of Criminal Apprehension, the Cannon River Drug & Violent Offender Task Force, the Paul Bunyan Drug Task Force, and the Minnesota Department of Corrections.
This case was tried by Assistant U.S. Attorneys Bradley M. Endicott and Joseph S. Teirab.
Federal Indictment Charges Suburban Chicago Man with Trafficking Cocaine and Illegally Possessing Loaded GunRead the Press Release
CHICAGO — A federal grand jury has indicted a suburban Chicago man for allegedly trafficking cocaine and illegally possessing a loaded handgun.
An indictment returned in U.S. District Court in Chicago charges GILBERTO ALMANZA, 44, of North Chicago, Ill., with two counts of distribution of a controlled substance, one count of possession of a controlled substance with the intent to deliver, and one count of possessing a firearm in furtherance of drug-trafficking activities.
The charges in the indictment carry a mandatory minimum sentence of 15 years in federal prison and a maximum of life. Almanza is currently detained in federal custody. Arraignment is set for Friday at 1:30 p.m. before U.S. District Judge Matthew F. Kennelly.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Robert J. Bell, Special Agent-in-Charge of the Chicago Field Division of the DEA. The government is represented by Assistant U.S. Attorneys Megan DeMarco and A.J. Dixon.
According to the indictment and a criminal complaint previously filed in the case, Almanza distributed approximately 46 kilograms of cocaine on Sept. 2, 2021. The delivery occurred in a restaurant parking lot in Bolingbrook, Ill., the charges allege. Unbeknownst to Almanza, the individual to whom Almanza delivered the cocaine was cooperating with law enforcement, the charges allege.
A second drug deal allegedly occurred last month at Almanza’s residence. Another individual surreptitiously cooperating with law enforcement bought approximately half a kilogram of cocaine from Almanza, the charges allege. Law enforcement conducted a court-authorized search of Almanza’s residence on March 17, 2022, and discovered approximately two kilograms of cocaine and the loaded handgun, the charges allege.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Eugene Felon Sentenced to Federal Prison for Illegal Firearm PossessionRead the Press Release
EUGENE, Ore.—A Eugene man on supervised release for a drug trafficking conviction was again sentenced to federal prison today after threatening to shoot at an apartment and then driving to the apartment with a loaded assault rifle.
Billy Lynn Brosowske, 48, was sentenced to 120 months in federal prison and three years’ supervised release.
According to court documents, on February 11, 2020, Brosowske sent a series of threatening messages to a person he knew. Brosowske threatened to shoot at the person’s apartment if Brosowske’s ex-girlfriend was found to be inside. In one message, Brosowske admitted to knowing there were young children in the apartment who could be placed in “harms (sic) way.”
Officers from the Eugene Police Department responded immediately and located Brosowske’s truck near the apartment. Officers searched the truck pursuant to a state search warrant and located a loaded assault rifle with a chambered round and its safety turned off. Law enforcement arrested Brosowske two weeks later in The Dalles, Oregon, and he was taken into federal custody for violating his federal supervised release after a previous drug trafficking conviction.
On August 20, 2020, a federal grand jury in Eugene returned an indictment charging Brosowske with illegally possessing a firearm as a convicted felon. On November 10, 2021, he pleaded guilty to the single charge.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Eugene Police Department. It was prosecuted by Jeffrey Sweet and Will McLaren, Assistant U.S. Attorneys for the District of Oregon, in close coordination with Erik Hasselman, Senior Prosecutor for the Lane County District Attorney’s Office, who is prosecuting Brosowske for state crimes arising from this incident.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
East St. Louis Man Sentenced to 17 Years in Prison for Distribution of Methamphetamine and Money LaunderingRead the Press Release
BENTON, Ill. – Martin Cooper, 31, of East St. Louis, Illinois, was sentenced to 210 months in prison on Thursday, April 7, 2022, for his role in a Conspiracy to Distribute Methamphetamine and
Money Laundering. The offenses occurred in St. Clair County and throughout the Southern District of
Illinois. Cooper pleaded guilty to both charges in October 2021. The United States Postal
Inspection Service initiated an investigation in January 2019, after noticing numerous suspicious packages being sent to and from addresses in East St. Louis, Illinois, and Phoenix, Arizona. During the investigation, agents learned that Jose Angulo shipped packages containing methamphetamine to the East St. Louis area to Martin Cooper.According to court documents, Cooper admitted to receiving narcotics from Jose and
Steven Angulo in 2019 and acknowledged a package containing over two kilograms of methamphetamine destined for an address in East St. Louis was for him. Cooper also admitted to transferring money to the Angulos via Walmart, and by mailing currency and money orders to them.Jose Angulo was sentenced on March 24, 2022, to 30 years in prison for Conspiracy to Distribute
Methamphetamine, Money Laundering and Distribution of Methamphetamine.The investigation was conducted by the United States Postal Inspection Service, the
Drug Enforcement Administration, and the Internal Revenue Service-Criminal Investigation.
The case was prosecuted by Assistant United States Attorney Laura Reppert.EOIR Announces Appointment of Mary Cheng as Deputy DirectorRead the Press Release
FALLS CHURCH, VA – The Executive Office for Immigration Review (EOIR) today announced the appointment of Mary Cheng as the agency’s Deputy Director. Judge Cheng has served EOIR since 2009, including as a Deputy Chief Immigration Judge for the past five years.
“Judge Cheng brings a welcome combination of experience and expertise, preparing her for certain success as EOIR’s deputy director,” EOIR Director David L. Neal said. “Her experience on the immigration bench, her expertise as a managing judge, and her appreciation for the view from both counsels’ tables perfectly position her to help lead the agency to a reinvigorated commitment to our mission and to public service.”
As Deputy Director, Judge Cheng will assist Director Neal in supervising and managing all EOIR components, and developing and implementing agency policies and short- and long-term strategies.
Since April 2021, Judge Cheng has served as the Regional Deputy Chief Immigration Judge for the Eastern Region at EOIR. She previously served as a Deputy Chief Immigration Judge from 2017 to 2021, and she was the Acting Principal Deputy Chief Immigration Judge from August 2020 to February 2021. Judge Cheng has also served in the New York Immigration Court both as an Assistant Chief Immigration Judge from 2015 to 2017, and as an Immigration Judge from 2009 to 2015. Before joining EOIR, she served as Assistant Chief Counsel for the Department of Homeland Security, Immigration and Customs Enforcement, from 2002 to 2009; and before that, she practiced immigration law in New York from 2000 to 2002. Judge Cheng received her Bachelor of Arts from New York University and a Juris Doctor from the New York Law School. She is a member of the New York State Bar.
Drug Dealing Trio Sentenced to Federal PrisonRead the Press Release
Ocala, Florida – Senior U.S. District Judge John Antoon II has sentenced Keson Viason Evans, Jr. (30, Eustis) to 11 years and 10 months in federal prison for conspiracy to distribute controlled substances. On December 17, 2021, Judge Antoon sentenced co-defendant George Randolph Morris, Jr. (31, Umatilla) to 10 years of imprisonment and co-defendant Demitric Jovante Blue (25, Ocala) to 7 years and 3 months of imprisonment. All three were convicted following their guilty pleas for the same offense.
According to court documents, Evans, Morris, and Blue conspired with one another between May 11 and 20, 2021, to distribute methamphetamine and fentanyl. An informant, working with the Drug Enforcement Administration placed an order to purchase 1.4 kilograms of methamphetamine and 3 kilograms of fentanyl from Morris. Evans was the source of supply for the fentanyl and Blue was the source of supply for the methamphetamine. When all three men showed up on May 20, 2021, to deliver the drugs to the informant in Leesburg, DEA agents arrested them and seized the drugs.
This case was investigated by the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Michael P. Felicetta.
Detroit Man Sentenced to Prison for Distributing FentanylRead the Press Release
HUNTINGTON, W.Va. – A Detroit man was sentenced today to one year and three months in federal prison, to be followed by three years of supervised release, for the distribution of fentanyl.
According to court documents, Martez D. Foy, 29, admitted he sold approximately 5.2 grams of fentanyl to a confidential informant on March 10, 2021. He also admitted to selling approximately 5.1 grams of fentanyl to a confidential informant on April 13, 2021. Both sales occurred in Huntington.
United States Attorney Will Thompson made the announcement and commended the Drug Enforcement Administration (DEA) and the Cabell County Sheriff’s Office for conducting the investigation.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Courtney L. Cremeans prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00222.
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Declaración del Fiscal de los Estados Unidos Breon Peace sobre United States v. Leniz EscobarRead the Press Release
“Soy Breon Peace, el Fiscal de los Estados Unidos para el Distrito Este de Nueva York.
Hoy hace cinco años, el 11 de abril de 2017, la acusada, Leniz Escobar, atrajo a cinco jóvenes a un parque no muy lejos de la corte federal en Central Islip, Long Island.
Esos cinco jóvenes, en la plenitud de la vida, no tenían idea de que Escobar los estaba llevando a la muerte—a un campo de exterminio donde miembros de la pandilla MS-13 esperaban al acecho, armados con machetes, un hacha, cuchillos, ramas y un cincel.
Uno de los jóvenes se las arregló para escapar y vivió para contar su historia a un jurado federal. Sus cuatro amigos no fueron tan afortunados. Los secuaces de Escobar los machetearon y golpearon hasta matarlos. Una de las víctimas del asesinato quedó tan desfigurado que solo pudo ser identificado a través de registros dentales.
Hoy, en el quinto aniversario de ese trágico asesinato en masa, un jurado federal ha hecho justicia con Escobar.
Nuestros sentimientos están con las familias de las víctimas. Sabemos que el veredicto no borra el dolor con el que despiertan cada mañana y que siempre llevarán con ustedes. Pero esperamos que este día les provea un poco de consuelo.
Mi oficina (la fiscalía de los Estados Unidos) y todos nuestros colegas agentes del orden en la fuerza de tarea contra pandillas del FBI en Long Island, no descansaremos hasta que cada uno de los miembros y asociados de la pandilla MS-13 responsables por este horrendo crimen respondan por él.
Estoy muy agradecido por mi asombroso equipo - fiscales Paul Scotti, Justina Geraci y Megan Farrell, paralegal Shernita Moore-Glasgow, junto a los agentes especiales del FBI y a los detectives del condado de Suffolk, quienes hicieron un gran trabajo en este importante caso.
Finalmente, quiero agradecer al jurado. Vinieron de todas partes de nuestro distrito al tribunal por tres semanas durante una pandemia. Estaban comprometidos a servir, a hacer justicia, y eso es exactamente lo que hicieron.”
El video de la declaración esta aquí.
Decatur Woman Sentenced to Probation for Theft of Government PropertyRead the Press Release
URBANA, Ill. – A Decatur, Illinois, woman, Deborah G. Lake, also known as Deborah G. Mitchell and Deborah O’Neill, 70, of the 4800 block of Evergreen Court, has been sentenced to 12 months of probation for theft of government property. Lake was formerly of Kankakee County, Illinois.
According to the plea agreement, Lake worked as a bookkeeper for the Grundy, Livingston, and Kankakee County Workforce Board, which oversees and sets policy for workforce development and training programs for those counties. Lake created checks payable to herself for fraudulent invoices and embezzled over $33,000 from the Workforce Board. Lake pleaded guilty to the four-count indictment in November 2021.
At the hearing, Senior U.S. District Court Judge Michael M. Mihm found that Lake abused a position of public trust in committing these crimes. Lake was also ordered to pay $33,302.44 in restitution to the Workforce Board.
The statutory penalties for theft of government property are up to ten years imprisonment, up to three years of supervised released, and up to a $250,000 fine.
The U.S. Department of Labor, Office of Inspector General investigated the case. Assistant U.S. Attorney Elly M. Peirson represented the government in the prosecution.
DOJ and Skagit County health clinic resolve False Claims Act investigation over the use of imported birth control medicationsRead the Press Release
Seattle – The U.S. Department of Justice today reached a settlement with Skagit Family Health Clinic of Mount Vernon, Washington, over the importation of birth control medications that were unlawfully imported from a foreign source and not approved by the Food and Drug Administration (FDA). Under the terms of the settlement, the clinic will pay a total of $120,000 to the state and federal governments for false claims the clinic filed with state or federal medical programs.
“FDA approval is a critical way for government medical programs to ensure patients get appropriate medicines and devices,” said U.S. Attorney Nick Brown. “We don’t have evidence that any patients were harmed from these unapproved medications, but government programs cannot pay for clients to take such a risk.”
The prelitigation settlement, claims the clinic imported and billed for the medications between 2015 and 2020. The clinic submitted claims for the birth control medications to the Washington State Medicaid Program. Of the $120,000 settlement paid by the clinic, nearly $72,000 will go to Washington State, while just over $48,000 will to the federal government for its share of the medical costs.
DOJ settled the matter on behalf of the Department of Health and Human Services Office of the Inspector General (HHS-OIG), the Washington State Attorney General’s Office and the Washington State Health Care Authority.
Charleston Woman Pleads Guilty to Firearm and Drug Trafficking CrimeRead the Press Release
CHARLESTON, W.Va. – A Charleston woman pleaded guilty today to one count of possession of a firearm in furtherance of a drug trafficking crime.
According to court documents and statements made in court, Lettia Harris, 30, admitted to selling a firearm and approximately 0.6 grams of cocaine base, also known as “crack,” to a confidential informant at her Charleston residence on November 14, 2018.
Harris is scheduled to be sentenced on July 11, 2022, and faces a mandatory minimum sentence of five years and up to life in prison.
United States Attorney Will Thompson made the announcement and commended the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Charleston Police Department for their investigation.
United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Alex Hamner is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-117.
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Charleston Man on Federal Supervised Release Sentenced for Drug Crime Involving FentanylRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced today to a total of three years and 11 months in federal prison for possession with intent to distribute fentanyl and cocaine base, also known as “crack,” and supervised release violations.
According to court documents and statements made in court, law enforcement officers executed a search warrant at the Charleston residence of Donavan Hardison, 31, on January 4, 2021. During the search, officers found approximately 2.826 grams of fentanyl on Hardison and approximately 3.672 grams of crack cocaine in his vehicle. Hardison admitted that he intended to distribute both controlled substances. Hardison was on supervised release at the time as the result of two prior federal convictions.
Hardison was sentenced to two years and nine months for possession with intent to distribute fentanyl and crack cocaine. He received a consecutive sentence of one year and two months for violating the terms of his supervised release.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Charleston Police Department, the Metropolitan Drug Enforcement Network Team (MDENT), the Putnam County Sheriff’s Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Drug Enforcement Administration (DEA).
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Nick Miller prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 2:21-cr-00130; 2:18-cr-00040; and 2:15-cr-00135.
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Cadillac Businessman Sent to Prison for Tax EvasionRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Douglas Arvin Horning, 56, of Cadillac, was sentenced to 20 months in prison for tax evasion by the Honorable Paul L. Maloney, United States District Judge. He was also ordered to pay $977,983 in restitution and to serve three years on supervised release following incarceration.
According to the plea agreement and other public records, prior to his guilty plea, Horning had not filed an individual tax return since 2008 or a corporate tax return since 2006 for his software company Perfect Professionals, Inc., doing business as Compass Technologies. He had not paid any individual or corporate taxes during that time. Horning also failed to pay all of the required “trust fund” taxes withheld from his employees’ paychecks. Horning concealed income by routing it through a second company—even after that company was dissolved by the State of Michigan—failing to disclose the company’s bank account to the IRS when required to do so, and not including that income on the Forms W-2 he issued to himself through Perfect Professionals. He likewise received unreported income by paying personal expenses using Perfect Professionals’ bank account.
“As Tax Day approaches, the Court’s sentence is an important reminder of the duty we as citizens and other taxpayers owe to each other and the government to file returns and pay legally required taxes,” said U.S. Attorney Birge. “Concealing assets from the IRS or otherwise evading these obligations can and will result in criminal prosecution.”
“The license to run a business is not a license to avoid paying taxes or collecting your employees’ withholding and not paying it over to the IRS,” said Special Agent in Charge Sarah Kull, IRS Criminal Investigation, Detroit Field Office. “Horning’s misconduct, hiding income and blatant disregard of tax laws, cheats all Americans, who pay their fair share of taxes.”
This case was investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Justin M. Presant.
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Butte woman admits stealing more than $600,000 from victim under her guardianshipRead the Press Release
MISSOULA — A Butte woman accused of embezzling more than $600,000 from a woman who was under her guardianship and using the money to buy a house on Canyon Ferry, a vehicle and other items admitted to fraud charges today, U.S. Attorney Leif M. Johnson said.
Debra Gean Roeber, 66, pleaded guilty to wire fraud and to money laundering as charged in an information during an initial appearance hearing. Roeber faces a maximum of 20 years in prison, a $250,000 fine and three years of supervised release on the wire fraud count.
U.S. Magistrate Judge Kathleen L. DeSoto presided. A sentencing date was set for Aug. 10 before U.S. District Judge Dana L. Christensen. The court will determine a sentence after considering the U.S. Sentencing Guidelines and other sentencing factors. Roeber was released pending further proceedings.
The government alleged in court documents that Roeber was a guardian and had power of attorney for the victim, identified as Jane Doe, who was unable to care for herself or her financial needs without assistance because she was blind. Roeber served as a fiduciary for Jane Doe. From about January 2017 until June 2020, Roeber allegedly embezzled approximately $681,549 from Jane Doe. Bank records showed that Roeber used Jane Doe’s money to purchase a home and shop on Canyon Ferry, construction costs, vehicles, furniture and a pontoon boat, none of which was authorized. When interviewed by agents, Roeber admitted she took advantage of Jane Doe “a lot,” including lying to the victim about her finances, and that she stole from Jane Doe. Jane Doe is now deceased.
Assistant U.S. Attorney Ryan G. Weldon is prosecuting the case, which was investigated by the FBI and IRS Criminal Investigation.
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Bristol, Tennessee Woman Sentenced to 13 Years for Role in Large-Scale Meth Trafficking ConspiracyRead the Press Release
ABINGDON, Va. – A Tennessee woman, who was part of a conspiracy that trafficked methamphetamine from Mexico into Southwest Virginia, was sentenced last week to 156 months in federal prison.
Jessica Nicole Kent, 35, of Bristol, TN, pleaded guilty in September 2021 to one count of conspiring to distribute 50 grams or more of methamphetamine.
According to court documents, Kent conspired with Joshua Desorcy, the ringleader responsible for coordinating the importation of massive shipments of methamphetamine from sources of supply in Mexico to accomplices in Atlanta, Georgia and Houston, Texas. Desorcy directed Kent and other co-conspirators to make numerous trips to Atlanta and Houston to bring back the methamphetamine for further distribution in Southwest Virginia.
In pleading guilty, Kent admitted to not only making those trips to Atlanta to pick up the drugs, but also routinely selling various amounts of both methamphetamine and heroin throughout Southwest Virginia.
In February 2022, Desorcy was sentenced to 40 years in prison for his role in the conspiracy.
U.S. Attorney Christopher R. Kavanaugh of the Western District of Virginia, Charlie J. Patterson, Special Agent in Charge of ATF’s Washington Field Division, and Special Agent in Charge Jarod Forget of DEA’s Washington Division made the announcement.
The Drug Enforcement Administration as well as the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Assistant U.S. Attorney Daniel J. Murphy is prosecuting the case.
Bradenton Man Sentenced to 18 Months for Manufacturing Counterfeit CurrencyRead the Press Release
Tampa, Florida – U.S. District Judge Virginia Hernandez Covington has sentenced Anthony Wayne Smith (58, Bradenton) to 18 months in federal prison for manufacturing counterfeit currency. The Court also ordered Smith to forfeit a firearm and ammunition found during a search of his house. Smith had pleaded guilty on January 14, 2022.
According to the plea agreement, Smith manufactured U.S. Federal Reserve notes at his home in Bradenton. During the execution of a search warrant at Smith’s residence, law enforcement officers recovered, among other things, a large quantity of counterfeit notes hidden throughout the residence, texturized printing paper, and printers. Additionally, Smith’s laptop computer contained digital images of U.S. Federal Reserve notes that had been used in the production and manufacture of counterfeit currency.
This case was investigated by the United States Secret Service, the Manatee County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney David W.A. Chee.
Billings man admits attempted coercion, enticement of minor for sex in undercover investigationRead the Press Release
BILLINGS — A Billings man accused of trying to coerce and entice a girl he believed to be a minor into engaging in sexual activity during an undercover investigation admitted to charges on April 7, U.S. Attorney Leif M. Johnson said today.
Jason Robert Kroepelin, 32, pleaded guilty to attempted coercion and enticement. Kroepelin faces a mandatory minimum 10 years to life in prison, a $250,000 fine and five years to life of supervised release.
U.S. District Judge Susan P. Watters presided. Judge Watters set sentencing for Aug. 17. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other sentencing factors. Kroepelin was detained pending further proceedings.
In court documents, the government alleged that in late October 2021, Kroepelin posted an advertisement on the internet seeking a young female for sexual purpose. In response, an undercover FBI employee, using a fictitious persona, contacted Kroepelin about a young girl, also fictitious, who was available.
Kroepelin and the undercover employee exchanged messages, engaged in sexually explicit conversation about the fictitious girl and agreed to meet at a property in Billings. Kroepelin also contacted a social media account purportedly belonging to the fictitious girl and sent a picture of himself. On Oct. 28, Kroepelin was arrested when he arrived at an agreed upon location in Billings. Kroepelin had condoms and lubricant in his pocket and a cellular phone showing his communication with the undercover employee.
The U.S. Attorney’s Office is prosecuting the case, which was investigated by the FBI, Homeland Security Investigations, Billings Police Department, Yellowstone County Sheriff’s Office and the Eastern Montana High Intensity Drug Trafficking Area Task Force.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative, which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.
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Berkeley County man sentenced for role in drug conspiracyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Brandon Eugene Corbin, of Inwood, West Virginia, was sentenced today to 70 months of incarceration for his role in a drug conspiracy that spanned several states, United States Attorney William Ihlenfeld announced.
Corbin, 36, pleaded guilty in November 2021 to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin, Fentanyl, and Cocaine Base.” Corbin admitted to working with others to distribute controlled substances from January to September 2019 in Berkeley and Jefferson Counties and elsewhere.
Corbin was a frequent re-distributor of drugs supplied to him by another in the conspiracy. During the investigation, he sold heroin, fentanyl, cocaine base, and PCP to his own customers in the Eastern Panhandle of West Virginia. During a traffic stop that occurred in September 2019, he was found with more than 18 grams of fentanyl.
This case is the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
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.
Assistant U.S. Attorney Lara Omps-Botteicher and Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, prosecuted the case on behalf of the government. The FBI; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms & Explosives; and the Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Gina M. Groh presided.
Find the related case here: https://www.justice.gov/usao-ndwv/pr/25-charged-six-state-drug-conspiracy-involving-heroin-fentanyl-cocaine
Berkeley County man sentenced for drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – James T. Cogle, of Martinsburg, West Virginia, was sentenced today to 15 months of incarceration for a drug charge, United States Attorney William Ihlenfeld announced.
Cogle, 53, pleaded guilty in November 2021 to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine Base and Cocaine Hydrochloride.” Cogle admitted to working with others to distribute drugs from July 2018 to June 2021 in Jefferson County and elsewhere.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The FBI; U.S. Marshals Service; Homeland Security Investigations; the West Virginia Air National Guard; the Eastern Panhandle Drug Task Force, a HIDTA-funded initiative; the West Virginia State Police, the DEA Task Force Montgomery County, Maryland; and the Frederick, Maryland, HIDTA group investigated. The EPDTF consists of the West Virginia State Police; Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office; Ranson Police Department, the Charles Town Police Department; and the Martinsburg Police Department.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
U.S. District Judge Gina M. Groh presided.
Belgrade construction company co-owner admits failing to pay $2.8 million in employee, employer taxesRead the Press Release
MISSOULA — The co-owner of H & H Earthworks, Inc., a Belgrade-based construction company that does commercial site-development work in four states, admitted to failing to pay the IRS approximately $2.8 million in employee and employer taxes, and instead, spent some of the money on personal expenses, including recreational and motorsport vehicles, U.S. Attorney Leif M. Johnson said today.
Melissa Lynne Horner, 42, of Bozeman, pleaded guilty on April 8 to one count of failure to truthfully account for and pay over withholding and F.I.C.A. taxes, a felony, and one count of failure to file employer’s quarterly return and pay tax, a misdemeanor, during an arraignment and plea change hearing. Horner faces a maximum of five years in prison, a $250,000 fine and three years of supervised release on the felony charge. Horner was charged in a 34-count information.
A plea agreement reached by the parties calls for the government to seek the dismissal of 32 remaining counts and for Horner to be responsible for total restitution of $2,878,522 if the court accepts the agreement at sentencing.
U.S. Magistrate Judge Kathleen L. DeSoto presided. Sentencing was set for Aug. 10 before U.S. District Judge Dana L. Christensen. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Horner was released pending further proceedings.
“As the financial executive for Earthworks, Horner withheld nearly $3 million from employee wages to cover payroll, Medicare and Social Security taxes. Rather than pay over those amounts to the IRS as required by law, Horner spent the money on personal expenses like motorcycles, a motor home, and home renovations. As the deadline for filing tax returns approaches, the public should be aware that people like Horner who willfully violate the tax laws will be investigated and charged with felony tax crimes that can result in significant penalties including prison time, fines, and restitution,” U.S. Attorney Johnson said.
“Payroll tax evasion is not just a crime against the United States Government, but also a crime impacting the employees of Earthworks as it results in the reduction of their benefits.” said Andy Tsui, IRS Criminal Investigation Special Agent in Charge, Denver Field Office. “IRS Criminal Investigation will vigorously pursue anyone who collects these taxes and uses these funds for their own personal gain."
In court documents filed in the case, the government alleged that H & H Earthworks, Inc., is a Belgrade-based family business co-founded in 2004 by Horner, who is responsible for the financial portion of the business. Earthworks is a full-service commercial site-development firm whose projects include schools, shopping centers, hospitals and residential subdivisions in Montana, North Dakota, Wyoming and Idaho. The company employed between 20 and 60 employees during 2014 through 2019.
For approximately five years, beginning in March 2014 through 2019, Horner had Earthworks pay hundreds of thousands of dollars of expenditures for her personal benefit while, at the same time, it failed to pay over to the IRS payroll tax required to be withheld from Earthworks’ employees’ paychecks. Horner spent more than $100,000 to purchase and maintain personal motorsport vehicles, including dirt bikes and snowmobiles, $90,000 to a real estate title company in Bozeman, at least $50,000 on personal home renovations and $20,000 for a motorhome.
The government further alleged that Horner withdrew Federal Insurance Contribution Act (FICA) taxes from the wages paid to Earthworks employees and failed to pay over the trust fund taxes to the IRS. Horner also failed to pay over Earthworks’ portion of the FICA taxes (Social Security and Medicare taxes). In addition, Horner failed to file quarterly Forms 941, Employer’s Quarterly federal tax returns, prior to being notified of the criminal investigation. Horner subsequently filed the delinquent forms; however, she has not paid any of the outstanding tax liability for them. Horner knew she was required to account for and pay over the employment taxes and file the quarterly Forms 941 and willfully chose to violate this obligation.
Assistant U.S. Attorney Karla E. Painter is prosecuting the case, which was investigated by the IRS Criminal Investigation.
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Baltimore Police Detective Convicted on Federal Charges of Conspiracy to Deprive Civil RightsRead the Press Release
Baltimore, Maryland – A federal jury today convicted Robert Hankard, age 45, of Baltimore, Maryland, of multiple federal crimes for providing a BB gun that he knew would be planted on a suspect, falsely testifying to a federal grand jury about his role in the BB gun planting, falsifying an application for a search warrant and an arrest report in a second incident where drugs were planted on a suspect, that he falsely testified to a federal grand jury in a federal investigation, and falsifying an application for a search warrant and subsequent police report related to the search of an apartment.
The conviction was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
“Today’s conviction further demonstrates this office’s continuing commitment to protect the civil rights of all Marylanders, including from egregious instances of police misconduct,” said United States Attorney Erek L. Barron. “I commend the outstanding work of Assistant United States Attorneys Leo J. Wise and Christopher M. Rigali, in obtaining this guilty verdict and recognize the FBI Special Agents and Task Force Officers who conducted this investigation. Criminals who work in police agencies violate the faith of the community and they unfairly tarnish the reputations of the many honorable officers who work to protect us every day.”
“As evidenced by the jury's guilty verdict, the actions of Mr. Hankard were not only harmful to the individuals he swore under oath to protect, but they also undermined public trust and confidence in law enforcement,” said FBI Special Agent in Charge Thomas J. Sobocinski. “The FBI will not tolerate those who abuse their positions of authority and is committed to rooting out public corruption and civil rights violations at all levels. We appreciate all our law enforcement partners who have assisted on this case.”
According to the trial evidence, Hankard has been a member of the Baltimore Police Department (BPD) since 2007 and was promoted to detective on March 20, 2014. In 2014 and 2015, Hankard served on a Special Enforcement Section (SES) unit assigned to the BPD’s Western District. On the evening of March 26, 2014, Hankard, who was not on duty that day, received a call from his partner, who advised him that Sergeant W.J. had been “hemmed up” in something and asked Hankard if he had any “toys” or “replicas.” Hankard understood that his partner was asking for a BB gun or air soft gun so that it could be planted on a suspect. Hankard advised that he did have a BB gun. Hankard’s partner came to Hankard’s house and Hankard provided him with the BB gun, which was subsequently planted at the scene of the arrest of D.S., whom Sergeant W.J. had run over after chasing D.S. No guns or drugs were recovered from D.S. at the time of his arrest, but drugs were recovered from D.S. at the hospital, where he had been taken in the custody of the Baltimore Police officers. D.S. was charged with possession, use, and discharge of a gas or pellet gun, for the BB gun that was planted at the scene of D.S.’s arrest, and a number of drug offenses. D.S. was detained on those charges until at least April 2, 2014, and the charges were dismissed on January 16, 2015.
The trial evidence showed that on March 2, 2015, Hankard and other officers arrested I.R. in the 5100 block of Falls Road in Baltimore City. Hankard and other officers took I.R.’s keys and went to Apartment A at 15 Cross Keys Road, which I.R. had been seen leaving earlier that day. I.C. lived in Apartment A with her daughter. Hankard used one of the keys that had been taken from I.R. to open the door to Apartment A and Hankard and other officers entered the apartment, which was not occupied at that time. Once inside, Hankard searched a bag that he found inside a closet, which contained gel caps of heroin, two digital scales, and other drug paraphernalia. Hankard had not obtained a search warrant prior to entering the apartment or searching the bag. Hankard then left the apartment and returned to BPD to prepare a search warrant for Apartment A. Several BPD officers remained inside Apartment A and one of those officers called I.C. and asked her to return, which she voluntarily did. I.C. then waited inside the apartment with the officers.
On the evening of March 2, 2015, Hankard appeared before a judge in the Circuit Court for Baltimore City and swore out the search warrant that he had prepared after entering Apartment A, in which Hankard allegedly falsely claimed that the “exterior” of Apartment A was secured, not disclosing that he and other detectives had entered Apartment A prior to obtaining a search warrant. Nor did Hankard disclose that he had opened a bag containing gel caps with heroin, scales, and other paraphernalia prior to preparing a search warrant. After obtaining the warrant, Hankard returned to the apartment where the other officers were waiting with I.C. During the execution of the search warrant, the bag that Hankard had previously searched was seized along with its contents and I.C. was arrested. I.R. was ultimately charged with drug offenses related to their seizure. Following the execution of the search warrant, the evidence showed that Hankard authored official BPD reports which contained similar false statements.
Witnesses testified that on September 24, 2015, Hankard arrested D.B., a target in a drug investigation, as he sat in his pick-up truck in a motel parking lot. According to trial testimony, after removing D.B. from the vehicle, Hankard and his partner searched the vehicle, but no drugs were found. Other officers on the scene then went into the room where D.B. had been staying and found a woman, B.J., a large quantity of heroin that had not yet been packaged for distribution, and a small quantity of cocaine that had already been packaged for distribution. The officers had not obtained a search warrant before entering the room. After learning that no drugs had been found in the truck, another officer, with Hankard’s permission, planted some of the cocaine found in the motel room in D.B.’s truck, in order to justify the arrest of D.B. and B.J. and the entry into the motel room.
According to the evidence, Hankard subsequently wrote a search warrant for the motel room, which contained several false statements, including that his partner had “observed in plain view, a clear tied bag, that contained small zip lock bags (with red dice logo) of suspected cocaine (after opening the clear bag, it revealed 10 ziplock bags total)” in D.B.’s truck; that D.B. was seen throwing the package of suspected cocaine to the floor of the vehicle; that after making sure the motel room card key worked, detectives had secured the room pending a search warrant; and that Hankard “believes there is addition suspected controlled dangerous substances (CDS)” in the motel room.
As detailed in trial testimony, after the search warrant was obtained and executed at the motel room, Hankard prepared a false incident report, which was approved by his partner as the “officer-in-charge” at the time of the arrests, even though the SES unit’s Sergeant was on the scene at the time.
Further, the evidence showed that on February 13, 2019, Hankard falsely testified before a federal grand jury by stating that he had not provided the BB gun to his partner on March 26, 2014.
Hankard faces a maximum sentence of five years in federal prison for conspiracy to commit offenses against the United States; a maximum of 10 years in federal prison for conspiracy to deprive civil rights; a maximum of 20 year in federal prison for each of two counts of falsification of records in a federal investigation; and a maximum of five years in federal prison for false declarations before a grand jury. U.S. District Judge Catherine C. Blake has not scheduled a date for sentencing. Hankard remains released under the supervision of U.S. Pretrial Services.
United States Attorney Erek L. Barron commended the FBI for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Leo J. Wise and Christopher M. Rigali, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to report civil rights violations, please visit https://www.justice.gov/usao-md and https://www.justice.gov/usao-md/civil-rights.
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