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Wednesday 2 March 2022
Burlington Man Sentenced to Federal Prison for Drug ChargesRead the Press Release
DAVENPORT, Iowa – A Burlington man, Tony Williams, age 33, was sentenced yesterday in federal court to 15 years in prison for Distribution of Methamphetamine. Williams was ordered to serve five years of supervised release to follow his prison term. He was also ordered to pay a $300 Special Assessment to the Crime Victims’ Fund.
According to court documents, an undercover officer purchased methamphetamine from Williams on three occasions. On one of the occasions, the officer observed a pistol in Williams’ waistband. When law enforcement attempted to perform a traffic stop on Williams, he fled and led officers on a vehicle and foot pursuit. Williams was eventually taken into custody and a loaded pistol was located in the area where Williams had led officers on the chase.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Burlington Police Department, Des Moines County Sheriff’s Office, Drug Enforcement Administration, Iowa Division of Narcotics Enforcement, and Southeast Iowa Narcotics Taskforce investigated the case. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Bettendorf Man Sentenced to 50 Years for Child Pornography ChargesRead the Press Release
DAVENPORT, Iowa – Justin Treanton, age 37, of Bettendorf, was sentenced on February 28, 2022, to 30 years in federal prison for the production of child pornography and 20 years in prison for the possession of child pornography, with the sentences run consecutively for a total of 50 years in federal prison. After serving his prison sentence, Treanton will be under federal supervised release for the rest of his life and required to register as a sex offender.
This case came to light after Treanton sent child pornography, which he had produced through the hands-on sex abuse of a four-year-old child, to an undercover police officer in New Zealand. The child pornography was traced back to Treanton in Bettendorf. When law enforcement executed a search warrant on Treanton’s cell phone they located other images of child pornography portraying infants and toddlers and violence.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Homeland Security Investigations, Iowa Division of Criminal Investigations, Bettendorf Police Department, and the Scott County Sheriff’s Office.
This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the U.S. Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nation-wide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children. Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
Bellefonte Woman Sentenced to 18 Months’ Imprisonment for Conspiracy to Commit Wire and Mail FraudRead the Press Release
WILLIAMSPORT- The United States Attorney’s Office for the Middle District of Pennsylvania announced that on March 1, 2022, Mildred Hoy, 62, of Bellefonte, PA, was sentenced to 18 months’ imprisonment by U.S. District Court Chief Judge Matthew W. Brann for her participation in a wire and mail fraud conspiracy.
According to United States Attorney John C. Gurganus, Hoy pleaded guilty before Chief Judge Brann in May 2021 to a charge of conspiracy to commit wire and mail fraud. The conspiracy to defraud involved victims sending money to Hoy in the belief that they had won the lottery and needed to remit fees to cover taxes. Hoy then sent cash to others in the conspiracy and converted cash into Bitcoin and deposited it in the bank accounts of other coconspirators. Hoy’s participation in the conspiracy defrauded victims of $489,000 dollars.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Geoffrey W. MacArthur prosecuted the case.
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Attorney General Merrick B. Garland Announces Launch of Task Force KleptoCaptureRead the Press Release
Today, Attorney General Merrick B. Garland announced the launch of Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions, and economic countermeasures that the United States has imposed, along with allies and partners, in response to Russia’s unprovoked military invasion of Ukraine. Task Force KleptoCapture will ensure the full effect of these actions, which have been designed to isolate Russia from global markets and impose serious costs for this unjustified act of war, by targeting the crimes of Russian officials, government-aligned elites, and those who aid or conceal their unlawful conduct.
“The Justice Department will use all of its authorities to seize the assets of individuals and entities who violate these sanctions,” said Attorney General Merrick B. Garland. “We will leave no stone unturned in our efforts to investigate, arrest, and prosecute those whose criminal acts enable the Russian government to continue this unjust war. Let me be clear: if you violate our laws, we will hold you accountable.”
“To those bolstering the Russian regime through corruption and sanctions evasion: we will deprive you of safe haven and hold you accountable,” said Deputy Attorney General Lisa O. Monaco. “Oligarchs be warned: we will use every tool to freeze and seize your criminal proceeds.”
Task Force KleptoCapture will be run out of the Office of the Deputy Attorney General and staffed with prosecutors, agents, analysts, and professional staff across the Department who are experts in sanctions and export control enforcement, anticorruption, asset forfeiture, anti-money laundering, tax enforcement, national security investigations, and foreign evidence collection. It will leverage all the Department’s tools and authorities against efforts to evade or undermine the economic actions taken by the U.S. government in response to Russian military aggression. The mission of the Task Force will include:
- Investigating and prosecuting violations of new and future sanctions imposed in response to the Ukraine invasion, as well as sanctions imposed for prior instances of Russian aggression and corruption;
- Combating unlawful efforts to undermine restrictions taken against Russian financial institutions, including the prosecution of those who try to evade know-your-customer and anti-money laundering measures;
- Targeting efforts to use cryptocurrency to evade U.S. sanctions, launder proceeds of foreign corruption, or evade U.S. responses to Russian military aggression; and
- Using civil and criminal asset forfeiture authorities to seize assets belonging to sanctioned individuals or assets identified as the proceeds of unlawful conduct.
The Task Force will be fully empowered to use the most cutting-edge investigative techniques — including data analytics, cryptocurrency tracing, foreign intelligence sources, and information from financial regulators and private sector partners — to identify sanctions evasion and related criminal misconduct.
Arrests and prosecution will be sought when supported by the facts and the law. Even if defendants cannot be immediately detained, asset seizures and civil forfeitures of unlawful proceeds — including personal real estate, financial, and commercial assets — will be used to deny resources that enable Russian aggression. Where appropriate, information gathered through Task Force investigations will be shared with interagency and foreign partners to augment the identification of assets that are covered by the sanctions and new economic countermeasures.
Task Force KleptoCapture will complement the work of the transatlantic task force announced by the President and leaders of the European Commission, France, Germany, Italy, the United Kingdom, and Canada on Feb. 26, which has a mission to identify and seize the assets of sanctioned individuals and companies around the world.
Task Force KleptoCapture will be led by a veteran corruption prosecutor assigned to the Deputy Attorney General’s Office from the U.S. Attorney’s Office for the Southern District of New York. This prosecutor has a long and successful track record of investigating Russian organized crime and recovering illicit assets. The Task Force leadership will include Deputy Directors from both the National Security and Criminal Divisions, and more than a dozen attorneys from these divisions, as well as the Tax Division, Civil Division, and U.S. Attorneys’ Offices across the country.
The Task Force will include agents and analysts from numerous law enforcement agencies, including the FBI; U.S. Marshals Service, U.S. Secret Service; Department of Homeland Security–Homeland Security Investigations; IRS–Criminal Investigation; and the U.S. Postal Inspection Service.
The Task Force is authorized to investigate and prosecute any criminal offense related to its mission, including conspiracy to defraud the United States by interfering in and obstructing lawful government functions; money laundering; false statements to a financial institution; bank fraud; and various tax offenses. The maximum penalty under several of these authorities is 20 years in prison.
Associate of Gambino Organized Crime Family Sentenced to 10 Years in Prison for Arson in QueensRead the Press Release
Earlier today, in federal court in Brooklyn, Peter Tuccio, an associate of the Gambino organized crime family of La Cosa Nostra, was sentenced by United States District Judge LaShann DeArcy Hall to 10 years’ imprisonment for his involvement in setting a car on fire to extract extortion payments. The Court also ordered Tuccio to pay more than $75,000 in restitution. Tuccio pleaded guilty in January 2021 to using fire to commit one or more felonies.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the sentence.
“Today, Tuccio pays a steep price for the dangerous actions he took to extort payments to the mob,” stated United States Attorney Peace. “No residents or businesses should have to operate under the threat of violence or intimidation from organized crime. Let Tuccio serve as an example that this behavior will not be tolerated.” Mr. Peace thanked the New York City Fire Department’s Bureau of Fire Investigation for their outstanding work on the case.
“The primary mission of the NYPD and our law enforcement partners is to arrest, prosecute, and send away with meaningful prison sentences those who instill fear in New Yorkers through their criminal actions,” stated NYPD Commissioner Sewell. “With today’s sentence, the result of our efforts is tangible. I thank our colleagues at the FBI and the Eastern District of New York for their dedication in helping us hold accountable anyone who commits violence in order to spread fear, especially when it’s in the form of organized crime.”
As alleged in court filings, in 2015, a businessman who had been extorted for years by a captain in the Gambino crime family (referred to in court filings as “Co-Conspirator 1”), began avoiding Co-Conspirator 1 in an effort to stop making his annual extortionate payment. On December 3, 2015, Tuccio and his co-conspirators observed the businessman leave a smoke shop in Howard Beach and drive away in his 2014 Mercedes Benz. They followed the businessman at a high rate of speed through the streets of Queens and confronted him outside a pizzeria, where Tuccio asked about Co-Conspirator 1 by name and complimented the businessman’s car. Tuccio and his co-conspirators schemed to set the businessman’s car on fire as a message to the businessman that he had to continue making payments to Co-Conspirator 1. Later that night, the businessman heard a loud noise and saw that his car was on fire outside of his residence. After the arson, the businessman made additional payments to Co-Conspirator 1.
The government’s case is being handled by the Office’s Organized Crime & Gangs Section. Assistant United States Attorneys Nadia E. Moore, Nicholas J. Moscow and Lindsey R. Oken are in charge of the prosecution.
The Defendant:
PETER TUCCIO
Age: 29
Howard Beach, New YorkE.D.N.Y. Docket No. 18-CR-610 (S-1) (LDH)
Arkansas Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Dennis R. Holmes announced that a Bella Vista, Arkansas, man convicted of Failure to Register as a Sex Offender was sentenced on February 28, 2022, by U.S. District Judge Karen E. Schreier.
Jeffrey Alan Mosal, age 45, was sentenced to 30 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Mosal was indicted by a federal grand jury on April 6, 2021. He pled guilty on November 30, 2021.
The conviction stems from Mosal failing to register as a sex offender as required by federal law between January 30, 2020, and April 6, 2021. Mosal had previously been convicted of a sex offense in U.S. Circuit Court, District of Arkansas, which required him to register for 25 years.
This case was investigated by the U.S. Marshals Service and the Sioux Falls Police Department. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Mosal was immediately turned over to the custody of the U.S. Marshals Service.
Tuesday 1 March 2022
Woman Sentenced for Taking Part in a Robbery that Resulted in the Victim being StabbedRead the Press Release
A 24-year-old Sand Springs woman who aided her boyfriend in a 2018 robbery was sentenced Tuesday in federal court, announced U.S. Attorney Clint Johnson.
“Tori Lasley knowingly took part in a planned robbery and consequently will be incarcerated for seven years,” said U.S. Attorney Clint Johnson. “Federal prosecutors and our partners at the FBI and Tulsa Police Department will vigorously pursue and hold accountable individuals who commit violent crime within our community.”
U.S. District Judge Claire V. Eagan sentenced Tori Lynn Lasley to seven years in federal prison followed by three years of supervised release.
Lasley pleaded guilty on Nov. 3, 2021, to robbery in Indian Country. In her plea agreement, Lasley admitted that she aided Peyton Drew Keele, 32, of Tryon, in robbing the victim on May 28, 2018. She stated that they went to the victim’s apartment, and once inside, Keele stabbed the victim in the leg so the two defendants could take items of value from the victim and his home. Lasley admitted that she knew what Keele was going to do and intentionally participated in the robbery.
According to court documents, the victim was suffering from a stab wound to the leg when officers responded to the scene. The victim reported that Keele, also known as “Duck,” and his girlfriend Lasley had entered his apartment under the ruse of returning a cell phone they had previously stolen from him.
Keele then demanded to know where the money was that the victim’s wife had recently won while gambling. The victim indicated he no longer had the money, and Keele stabbed him in the leg. The couple then stole numerous items belonging to the victim. As he was leaving, Keele told the victim, “No hard feelings.” Items stolen included jewelry, a wallet, a cell phone, an antique revolver and the victim’s car.
During the investigation, officers discovered Lasley had been arrested while driving a vehicle without a valid driver’s license. A vehicle inventory was conducted prior to the vehicle being towed. That inventory listed multiple items that were known to have been taken during the robbery.
Lasley is a citizen of the Seminole Nation, and the crime occurred within the boundaries of the Muscogee Nation reservation.
The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Thomas E. Buscemi is prosecuting the case.
Wheeling woman admits to drug conspiracyRead the Press Release
WHEELING, WEST VIRGINIA – Melissa Joann Hibbitts, of Wheeling, West Virginia, has admitted to her involvement in a drug trafficking conspiracy, United States Attorney William Ihlenfeld announced.
Hibbitts, age 35, pleaded guilty today to one count of “Conspiracy to Distribute and Possess with the Intent to Distribute Cocaine Base, Cocaine Hydrochloride, Methamphetamine, and Heroin.” Hibbitts admitted to working with others to sell cocaine base, also known as “crack,” cocaine hydrochloride, also known as “coke,” and methamphetamine from June 2019 to August 2021 in Ohio County and elsewhere, including the Southern District of Ohio.
Hibbitts faces up to 20 years of incarceration and a fine of up to $1,000,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, which includes the Drug Enforcement Administration, West Virginia State Police, the Ohio County Sheriff’s Office, and the Wheeling Police Department, investigated. The Belmont County Sheriff’s Office and the St. Clairsville Police Department assisted.
U.S. Magistrate Judge James P. Mazzone presided.
Vicksburg Man Sentenced to 34 months in Federal Prison for Possessing a Firearm as a Convicted FelonRead the Press Release
Jackson, Miss. – A Vicksburg man was sentenced to 34 months in federal prison for possessing a firearm as a convicted felon, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation in Mississippi.
According to court documents, on November 15, 2019, Vicksburg Police officers and FBI Task Force officers apprehended Hakeem Burnett, 31, in Vicksburg pursuant to a warrant for violating the Hinds County, Mississippi Drug Court program. Burnett was in possession of a firearm at the time he was apprehended. Burnett has previous convictions for house burglary and possessing a firearm as a convicted felon.
The FBI and Vicksburg Police Department investigated the case.
Assistant U.S. Attorney Bert Carraway prosecuted the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent
crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Utica Man Sentenced to 10 Years in Federal Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
Jackson, Miss. – A Utica man was sentenced to 120 months in federal prison for possession with intent to distribute methamphetamine, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation in Mississippi.
According to court records, on August 12, 2020, Dennis Mitchell, 40, sold 208 grams of methamphetamine to an individual.
Mitchell pled guilty on October 29, 2021, to possession with intent to distribute methamphetamine.
The case is the result of an extensive investigation, dubbed “Operation Hailstorm” targeting illegal drug trafficking in the Jackson area. The Operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The case was investigated by the Federal Bureau of Investigation, the Mississippi Bureau of Narcotics and the Jackson Police Department.
The case was prosecuted by Assistant United States Attorney Keesha Middleton.
United Kingdom Citizens Indicted in Brooklyn Federal Court for Multi-Million Dollar Loan SchemeRead the Press Release
An indictment was filed yesterday in federal court in Brooklyn charging Stephen Burton and James Wellesley, both citizens of the United Kingdom, with wire fraud conspiracy, wire fraud and money laundering conspiracy in connection with a scheme perpetrated through their company, Bordeaux Cellars, the trade name for two private limited companies, Bordeaux Cellars, Limited and Bordeaux Cellars London Ltd., registered, respectively, in Hong Kong and London, England. Wellesley was arrested on February 4, 2022 in the United Kingdom and Burton remains at large.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“Unlike the fine wine they purported to possess, the defendants’ repeated lies to investors did not age well. As alleged, these defendants duped investors by offering them an intoxicating investment opportunity collateralized by valuable bottles of fine wine that turned out to be too good to be true,” stated United States Attorney Peace. “This Office and our law enforcement partners will work to protect investors from deceptive schemes and ensure that loans that are financed with investor funds are not stolen by fraudsters.” Mr. Peace also thanked Internal Revenue Service Criminal Investigation for their work on the case.
“Burton and Wellesley, as alleged, lied to their victims to get them to invest in what ended up being a nearly $100 million scheme. Today’s indictment brings their criminal activity to light and reminds other like-minded criminals that illegal investment fraud schemes won’t be overlooked,” stated FBI Assistant Director-in-Charge Driscoll.
The indictment alleges that from at least June 2017 and continuing through February of 2019, the defendants posed as executives of a company called Bordeaux Cellars. The defendants solicited investors, including residents of the Eastern District of New York, at investor conferences held in the United States and overseas. The defendants claimed to investors that Bordeaux Cellars brokered loans between investors and high-net-worth wine collectors that would be fully collateralized by high-value collections of wine. The defendants promised that investors would receive regular interest payments from the borrowers, and that Bordeaux Cellars would keep custody of the wine pledged as collateral while the loans were outstanding. As alleged, these representations were false, the “high-net-worth wine collectors” did not actually exist and Bordeaux Cellars did not maintain custody of the wine purportedly securing the loans. Instead, the defendants used incoming loan proceeds to make fraudulent interest payments to investors and for their own personal expenses. Burton is a fugitive. Anyone with information related to his whereabouts is asked to contact the FBI by calling 1-800-CALL-FBI or by visiting tips.fbi.gov
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face up to 20 years in prison.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Lauren Elbert is in charge of the prosecution.
The Defendants:
STEPHEN BURTON
Age: 57
United KingdomJAMES WELLESLEY
Age: 55
United KingdomE.D.N.Y. Docket No. 22-CR-79 (PKC)
Two Florida Men Charged with $11 Million Medicare Fraud Scheme to Traffic in Prescriptions for Medical EquipmentRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Scott J. Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General (“HHS-OIG”) New York Regional Office announced today the arrest of ZACHARY S. SEID and ANTHONY CRACCHIOLO on charges of conspiracy, health care fraud, wire fraud, and unlawfully receiving kickbacks in connection with Medicare. As alleged in an Indictment unsealed today in Manhattan federal court, SEID and CRACCHIOLO, ran companies dedicated to illegally buying and selling prescriptions for durable medical equipment (“DME”) such as leg, arm, and back braces, and then using those prescriptions to file fraudulent Medicare claims for more than $11 million, as well as selling such prescriptions to other DME supply companies, so that those companies in turn could also file fraudulent Medicare claims. The case has been assigned to U.S. District Judge John P. Cronan. SEID and CRACCHIOLO, who were arrested this morning in Florida, will be presented tomorrow before magistrate judges in the Southern District of Florida.
U.S. Attorney Damian Williams said: “Medicare is an invaluable taxpayer-funded program dedicated to providing affordable health care to beneficiaries over 65 or with disabilities, not to enriching those who would defraud the program by buying and selling false prescriptions.”
HHS-OIG Special Agent in Charge Scott J. Lampert said: “These allegations describe a greed-fueled scheme that undermined our health care system and the people it serves. Such scams threaten patient health, waste taxpayer funds, and drive up healthcare costs for all of us. Working closely with our law enforcement partners, we will continue to aggressively root out health care fraud and bring criminals to justice.”
As alleged in the Indictment:[1]
From at least July 2019 through at least October 2020, SEID and CRACCHIOLO engaged in a scheme to defraud Medicare in at least three ways. First, SEID and CRACCHIOLO illegally paid kickbacks of more than $565,000 to purchase fraudulent DME prescriptions, including prescriptions “signed” by doctors who never in fact signed or authorized those prescriptions and were unaware that their names and identities were being so used. These DME prescriptions were for such equipment as braces for ankles, knees, elbows, wrists, and backs. Second, SEID and CRACCHIOLO unlawfully received more than $425,000 in kickbacks, reselling some of these prescriptions to DME suppliers, so that those suppliers in turn could fraudulently bill Medicare for the DME. Finally, in about May and June 2020, SEID and CRACCHIOLO acquired five of their own fraudulent DME supply companies, and used the bogus prescriptions to file more than $11 million in fraudulent Medicare claims, seeking payment to the DME suppliers that SEID and CRACCHIOLO controlled.
Together, SEID and CRACCHIOLO sold to multiple DME supply companies, and established control over at least five DME supply companies of their own, which they used to submit their fraudulent Medicare claims. Those companies were: 1 Medical Supplies Corp., Ameri Med Supplies Corp., One Medical Health Supplies Corp., Sun Med Equip Corp., and Sunrise Med Service Group Corp. In addition, Seid owned a company called Seid Services, Inc., while Cracchiolo owned a company called Dataco.
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SEID, 35, of Boynton Beach, Florida, and CRACCHIOLO, 42, of Parkland, Florida, are each charged in four counts with conspiracy to commit health care fraud and wire fraud, health care fraud, wire fraud, and receiving kickbacks in violation of the Anti-Kickback Statute. The conspiracy and wire fraud counts each carry a maximum potential prison sentence of 20 years; the health care fraud count carries a maximum potential prison sentence of 10 years; and the count charging violation of the Anti-Kickback statute carries a maximum potential prison sentence of five years. The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the investigative work of HHS-OIG.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney David Raymond Lewis is in charge of the prosecution.
The allegations contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Two Executives of Chicago-Area Non-Profit Organization Charged with Misappropriating $1.8 MillionRead the Press Release
CHICAGO — Two executives of a Chicago-area non-profit organization have been indicted on federal fraud charges for allegedly misappropriating more than $1.8 million in funds intended to support the charity’s work with underprivileged youth.
TONY BELL served as executive director of the Center for Community Academic Success Partnerships, and BARBARA HARRIS was a CCASP project manager. The non-profit organization received government grants and other funds to provide after-school programs to elementary and secondary schools in the Chicago area. The government grants included funds from the 21st Century Community Learning Centers Program, a federal program offering financial support to community centers that provide academic enrichment opportunities. The 21st Century program issued grants to its local administrator, the Illinois State Board of Education, which in turn disbursed the funds to CCASP.
An indictment returned Monday in U.S. District Court in Chicago alleges that Bell, Harris, and others from 2012 to 2017 fraudulently obtained and misappropriated at least $1.8 million in the federal funds. Bell, Harris, and their associates allegedly transferred approximately $1.3 million of the fraud proceeds to bank accounts they controlled, and they used approximately $436,536 to pay down Bell’s credit card balances. The pair and their associates also used approximately $130,372 of the fraud proceeds to write numerous checks made payable to Community Partners, an unincorporated entity which the defendants fraudulently claimed was a subcontractor to CCASP, the indictment states. Bell and Harris subsequently negotiated the Community Partners checks for cash or used them to purchase money orders at a currency exchange in Dolton, Ill., according to the indictment.
The indictment charges Bell, 61, of Matteson, Ill., and Harris, 52, of South Holland, Ill., with conspiracy, money laundering, and wire fraud. Arraignments in U.S. District Court in Chicago have not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; John F. Woolley, Special Agent-in-Charge of the U.S. Department of Education Office of Inspector General’s Midwestern Regional Office; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Justin Campbell, Special Agent-in-Charge of IRS Criminal Investigation in Chicago. The Illinois Office of Executive Inspector General provided valuable assistance. The government is represented by Assistant U.S. Attorney Philip Fluhr.
The public is reminded that an indictment is not evidence of guilt. The defendants are 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.
Tucker Man Sentenced to over 37 Years in Federal Prison for Sexual Assault and Murder of ChildRead the Press Release
Jackson, Miss. – A Tucker man was sentenced today to 450 months in federal prison for the sexual assault and murder of a child on the Choctaw Indian Reservation, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation’s Jackson Field Office.
According to court documents, Brett K. Hickman, 28, of Tucker, sexually assaulted and murdered a 2-year-old female on June 8, 2019, in the Tucker Community of the Choctaw Indian Reservation.
Hickman pled guilty in U.S. District Court on July 13, 2021, before U.S. District Judge David Bramlette.
The Federal Bureau of Investigation and the Choctaw Police Department investigated the case.
Assistant U.S. Attorney Kevin J. Payne prosecuted the case.
Three Former Correctional Officers Sentenced to Federal Prison for Violating Civil Rights of an Inmate During an AssaultRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced three former Hamilton Correctional Institution Annex officers for violating the civil rights of an inmate. Coty Michael Wiltgen (32, Live Oak) was sentenced to 37 months in federal prison, followed by two years of supervised release; Ethan Burkett (25, Valdosta, GA) was sentenced to 31 months in federal prison, followed by one year of supervised release, and William Story Shackelford (25, Valdosta, GA) was sentenced to 25 months in federal prison, followed by 1 year of supervised release. Wiltgen, Burkett, and Shackelford were ordered to surrender to their facility of designation no later than 2:00 p.m. on April 28, 2022.
On June 4, 2021, June 9, 2021, and July 22, 2021, Shackelford, Wiltgen, and Burkett, respectively, had pleaded guilty to violating the civil rights of an inmate.
According to court documents, on March 3, 2020, Burkett, Wiltgen, and Shackelford, on-duty correctional officers at the Hamilton Correctional Institution Annex (HCI) in Jasper, Florida, struck an inmate multiple times while the inmate was handcuffed and lying on the ground. Specifically, Wiltgen, and Shackelford escorted the victim to an outdoor area at HCI and assaulted the victim following an earlier altercation involving the victim and Burkett. The victim had pushed Burkett off his path while he was chasing after another inmate. After pushing Burkett and walking away, the victim was sprayed with pepper spray by Wiltgen. The victim laid down on the floor, showed no signs of resistance, and was handcuffed by Wiltgen. Wiltgen and Shackelford then escorted the cooperative and compliant victim outside of the facility, and out of camera view, and made the victim fall to the ground. Wiltgen kicked the victim in the face approximately 15 times while he was face down on the ground. Wiltgen was also observed calling the victim a racial epithet and spitting on the victim. Shackelford held the victim on the ground with his knee in the victim’s back to keep him from moving and struck the victim in the side. When Burkett arrived outside, he went up to the victim and hit him twice with an open hand to the upper back and punched the victim. The victim was screaming during the assault and was knocked unconscious by Wiltgen kicking him. This assault lasted approximately one to two minutes. Burkett, Wiltgen, and Shackelford knew that the use of force was unnecessary and excessive, counter to their training and completely unjustified at the time that they used, and watched others use, force against the victim. As a result of the assault, the victim suffered several injuries.
This case was investigated by the Florida Department of Corrections – Office of Inspector General and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Ashley Washington.
Tacoma woman sentenced to 5 years in prison for arson at downtown Seattle protestRead the Press Release
Seattle –A 26-year-old Tacoma, Washington, woman was sentenced today in U.S. District Court in Seattle to 5 years in prison for arson for burning five Seattle P0lice vehicles parked around Sixth and Pine in downtown Seattle on Saturday, May 30, 2020, announced U.S. Attorney Nick Brown. Margaret Aislinn Channon was arrested June 11, 2020, following an investigation by the FBI, ATF, and Seattle Police Department. At the sentencing hearing U.S. District Judge John C. Coughenour said Channon’s conduct had done “tremendous damage to Black Lives Matter in Seattle.”
“The right to protest, gather, and call out injustices is one of the dearest and most important rights we enjoy in the United States,” said U.S. Attorney Nick Brown. “Indeed, our democracy depends on both exercising and protecting these rights. But Ms. Channon’s conduct was itself an attack on democracy. She used the cover of lawful protests to carry out dangerous and destructive acts, risking the safety of everyone around her and undermining the important messages voiced by others.”
According to records filed in the case, Channon appears in videos from a protest in downtown Seattle wearing distinctive clothing and showing tattoos on her hands and arms. Channon is captured on video using fire and aerosol cans to light five Seattle Police Department vehicles on fire. She is also shown entering various stores and stealing clothing. She admitted smashing the window at the Verizon Store and entering a sandwich shop and destroying the electronic cash register. Investigators identified Channon based on her clothing, tattoos, and information from her various social media accounts.
Channon’s most dangerous conduct was the arson of the vehicles using an aerosol can as a blowtorch. As prosecutors noted in their sentencing memo, “hundreds of people were standing in the vicinity of the police cars that Channon burned, some only a few feet away. All of them were in harm’s way if one of the vehicles had exploded.”
“This case is an example of the FBI’s commitment to investigating domestic terrorism cases, no matter what their motivations may be," said Donald M. Voiret, Special Agent in Charge of the Seattle Field Office. "The FBI believes in the peaceful expression of free speech, and Channon committed acts of violence and destruction, endangered other people, and distracted from and escalated demonstrations.”
“It should be clear that lawful protests do not include the use of violent actions such as breaking store windows and committing theft and arson,” said ATF Seattle Field Division Special Agent in Charge Jonathan T. McPherson. “We will vigorously investigate anyone who turns to arson and violence against our citizens, businesses and cities. This sentence is clearly warranted and should send a message that this behavior will never be tolerated.”
Under the terms of the plea agreement, Channon is responsible for restitution. Channon will be on three years of supervised release following her prison term.
The case was investigated by the FBI, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), and the Seattle Police Department.
The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
Suspect in Burglary at Poway Weapons & Gear Charged with Federal Firearms OffensesRead the Press Release
Assistant U. S. Attorneys Joseph Orabona (619) 546-7951 or Elizabet Brown (619) 546-8921
NEWS RELEASE SUMMARY – March 1, 2022
SAN DIEGO – Jaime Angel Zamora was arraigned today in federal court on charges involving theft of firearms from the premises of Poway Weapons & Gear, a federal firearms licensee, and felon in possession of firearms.
According to a federal complaint unsealed today, in the early morning hours of November 21, 2021, Zamora and another suspect burglarized Poway Weapons & Gear in Poway by prying open the side door of the business and stealing approximately 12 firearms from the premises.
“The United States Attorney’s Office and our law enforcement partners in the Southern District of California are committed to enforcing federal firearms laws,” said U.S. Attorney Randy Grossman. Grossman thanked the prosecution team, the ATF, San Diego Police Department, San Diego County Sheriff’s Department and San Diego County Probation Department for their excellent work on this case.
“ATF remains committed to reducing gun crime and to making our communities safer,” said Bureau of Alcohol, Firearms and Explosives (ATF) Los Angeles Field Division Special Agent in Charge Monique Villegas. “ATF works with its local, state and federal partners to stop the flow of guns being used in crimes, by targeting these individuals to prevent, interrupt, and reduce violence. Successful arrests and prosecutions are the result of effective partnerships.”
“This case is a fine example of deputies in the field and the Sheriff's Crime Laboratory working together," said Acting San Diego County Sheriff Kelly Martinez. “We join our federal law enforcement partners in their commitment to bring those who commit gun crimes to justice.”
According to the complaint, Zamora and the other suspect attempted to make entry into the business through a window, but the metal bars prevented their entry. Surveillance video showed the suspects gaining access to the gunsmith office and carrying out multiple firearms from the business. During the commission of the burglary, surveillance video showed Zamora (“Suspect #1”) wearing gloves, a dark hoodie, a light hat underneath the hoodie, a light face mask, light khaki pants, and white shoes, according to court records. The other suspect (“Suspect #2”) was wearing gloves, a dark hoodie, a light hat, a dark face mask, light khaki pants, and black shoes. Both suspects were carrying a pry tool in hand as they approached the store.
According to the complaint, the suspects used a stolen white Ford Econoline van during the commission of the burglary. Surveillance video showed that the van had several unique features – front end damage, no front plate, and a roof rack. Law enforcement officials later recovered the van, which had been abandoned after the burglary in San Diego. Inside the van, officers found a Poway Weapons & Gear bag, a black flashlight, a blue bandana, and a brown beanie.
According to the complaint, the Sheriff’s lab conducted a DNA analysis and found that the brown beanie recovered from the stolen van had a very strong inclusive DNA profile for Zamora.
According to court records, Zamora and the other suspect allegedly stole five semi-automatic pistols and seven semi-automatic rifles from Poway Weapons & Gear.
According to the complaint, in December 2021, law enforcement officers searched Zamora’s residence and found items consistent with the burglary at the Poway Weapons & Gear, such as blue and white bandanas, white shoes, black and gray gloves, a dark ski mask, and a blue jacket. While officers did not recover any of the firearms from the burglary, they did find two firearms in a vehicle where Zamora was an occupant, including a privately-made-firearm, also known as a “ghost gun.” Zamora was subsequently arrested and held in state custody on criminal charges.
On February 17, 2022, a sealed complaint and an arrest warrant were filed against Zamora in federal court. Zamora was arrested today on the federal charges, transferred from state custody to federal custody, and appeared in federal court this afternoon. He was ordered detained without bond at today’s hearing.
This case is part of the Department of Justice’s nationwide commitment to reduce gun crimes known as Project Safe Neighborhoods, or PSN. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders works together to identify the most pressing violent crime problems in the community and develops 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.
DEFENDANT Case Number 22MJ0603
Jaime Angel Zamora Age: 34 San Diego, CA
SUMMARY OF CHARGES
Theft of Firearms from the Premises of a Federal Firearms Licensee – Title 18, U.S.C., Section 922(u)
Maximum penalty: Ten years in prison, $250,000 fine, and forfeiture of all firearms/ammunition
Felon in Possession of a Firearm – Title 18, U.S.C., Section 922(g)(1)
Maximum penalty: Ten years in prison, $250,000 fine, and forfeiture of all firearms/ammunition
AGENCIES
Bureau of Alcohol, Tobacco, Firearms and Explosives
San Diego County Sheriff’s Department
San Diego Police Department
San Diego County Probation Department
*The charges and allegations contained in a complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Project Safe Neighborhoods (PSN) is a nationwide commitment to reduce gun crime in American communities by networking with existing local programs that target these issues and provide these programs with additional tools necessary to be successful. PSN has operated as the U.S. Department of Justice’s primary initiative focused on reduction of gun crime since May of 2001. PSN is a collaborative effort between federal, state, and local law enforcement and prosecutors.
Suburban Chicago Businessman Admits Swindling Hospital in Connection with Attempted Purchases of Personal Protective EquipmentRead the Press Release
CHICAGO — A suburban Chicago businessman pleaded guilty today to a federal fraud charge for swindling $2.5 million from a hospital that paid him for scarce personal protective equipment in the early weeks of the COVID-19 pandemic.
DENNIS W. HAGGERTY, JR., 45, of Burr Ridge, Ill., pleaded guilty to one count of wire fraud, which is punishable by up to 20 years in federal prison, and one count of money laundering, which is punishable by up to ten years. U.S. District Judge John F. Kness set sentencing for May 25, 2022.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorney L. Heidi Manschreck.
Haggerty and two business partners in March 2020 formed a company called At Diagnostics Inc. to sell personal protective equipment. The company reached an agreement with a hospital in Iowa to sell 500,000 N95 respirator masks for $2.495 million. Haggerty created an invoice to reflect the agreement and to instruct the hospital on where to wire the payment. Based on the invoice, the hospital on March 31, 2020, wired the money to a bank account that Haggerty falsely claimed was an At Diagnostics account but which was actually the account of a different business solely controlled by Haggerty.
Haggerty admitted in a plea agreement that he spent part of the money for his own personal benefit, including purchasing two Maserati automobiles and a Land Rover sport-utility vehicle, paying nearly $189,000 to credit card companies, withdrawing more than $147,000 in cash, and paying $20,000 to a personal friend. Haggerty further admitted that At Diagnostics never delivered the masks, and when questioned about it by the hospital he falsely claimed that the bank had no record of the hospital’s payment being received. When his business partners also questioned Haggerty about the whereabouts of the money, Haggerty altered a bank statement to make it appear as if the hospital’s funds had not been received.
Haggerty admitted in the plea agreement that he engaged in similar conduct with a hospital based in Illinois. After reaching an agreement with that hospital to sell one million N95 masks for nearly $4.5 million, the hospital requested that an initial payment be sent to an escrow account instead of the account Haggerty provided. When At Diagnostics failed to fulfill the hospital’s order, the money in escrow was returned. The Illinois hospital, however, later inadvertently wired more than $933,000 to Haggerty’s account in connection with a second order for 500,000 N95 masks that were never delivered. Haggerty admitted in the plea agreement that he spent some of this money for his own personal use and did not return any of it.
Statesville Man Who Robbed Two Convenience Stores on the Same Day at Gunpoint Is Sentenced to More Than 11 Years in PrisonRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell sentenced Anthony Dwayne Turner Jr., 23, of Statesville, N.C. to 135 months in prison and three years of supervised release for robbing two convenience stores at gunpoint, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Turner’s co-defendant, Xavier Lamar Poteat, 21, also of Statesville, was sentenced to three years in prison and two years of supervised release for his role in the robbery.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Chief Ron Campurciani of the Mooresville Police Department, and Chief Josh Watson of the Troutman Police Department join U.S. Attorney King in making today’s announcement.
According to court documents and today’s sentencing hearing, on October 9, 2020, at approximately 2:30 a.m., Turner and Poteat walked into a BP convenience store located in Iredell County. Upon entering, Turner walked up to the store clerk while Poteat waited by the door. Turner then pointed a firearm at the store clerk and demanded money. The store clerk emptied both registers, gave the money to Turner and the two men fled the scene. Court documents show that, on the same day at approximately 3:40 a.m., Turner and Poteat entered a Circle K convenience store also located in Iredell County. Poteat again waited by the front door while Turner approached the store clerk, pointed a gun at him and demanded cash from the register. The clerk obeyed and the two men fled the scene. Law enforcement responding to the robbery located Turner and Poteat’s vehicle and the two men were arrested shortly thereafter. Over the course of the arrest, law enforcement found two firearms inside the vehicle. According to court records, Turner has previous felony convictions and he is prohibited from possessing a firearm.
On October 21, 2021, Turner pleaded guilty to robbery of a business affecting interstate commerce, or “Hobbs Act” robbery, and use, carry and brandishing of a firearm in furtherance of a crime of violence. Poteat pleaded guilty to Hobbs Act robbery.
In making today’s announcement, U.S. Attorney King thanked the FBI, the Mooresville Police Department and the Troutman Police Department for their investigation.
Assistant U.S. Attorney Lambert Guinn of the U.S. Attorney’s Office in Charlotte prosecuted the case.
St. Louis man pleads guilty to distribution of a controlled substance related to overdose death investigationRead the Press Release
ST. LOUIS – United States District Court Judge John A. Ross accepted a plea of guilty from Markquis Bryant on today’s date for the crime of distribution of a controlled substance related to an overdose death. Judge Ross set sentencing for June 14, 2022.
According to the plea agreement, Bryant knowingly and intentionally distributed a controlled substance on or about March 6, 2020, within the Eastern District of Missouri. The investigation began on March 7, 2020, when officers with the Florissant Police Department were dispatched to a residence to investigate a fatal narcotics overdose. Investigators were able to determine that the victim had purchased the fentanyl which caused the overdose from Bryant on March 6, 2020.
Investigators then conducted an undercover operation in which fentanyl was purchased from Bryant at his residence in the 5300 block of Queens Avenue in St. Louis, Missouri. On March 26, 2020, a federal search warrant was executed by the Drug Enforcement Administration and the Florissant Police Department, with assistance from the St. Louis Metropolitan Police Department. While executing the search warrant, law enforcement located five (5) firearms, including a Glock .45 caliber semi-automatic pistol, a Sig Sauer .40 caliber semi-automatic pistol, a Rohm GMBH .22 magnum caliber revolver, a Mossberg International, .22 LR caliber firearm, and an Intratec AB-10 Model .9 mm caliber firearm, as well as an extended magazine. Also seized were large quantities of suspected heroin, fentanyl, and crack cocaine.
The case was investigated by the Florissant Police Department, St. Louis Metropolitan Police Department and the Drug Enforcement Administration.
Springfield Man Sentenced for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Missouri man was sentenced in federal court today after law enforcement officers seized more than two kilograms of methamphetamine from his residence.
Walter M. Terrell, 37, was sentenced by U.S. District Judge M. Douglas Harpool to 13 years in federal prison without parole.
On Sept. 1, 2021, Terrell pleaded guilty to one count of conspiracy to distribute methamphetamine in Greene and Cass counties from May 10 to Nov. 8, 2018. Terrell admitted that he made multiple trips to Texas to acquire kilogram quantities of methamphetamine, which he distributed to others, including co-defendants Christopher Iavolo, 43, and Xlyona Sharp, 38, both of Springfield.
Springfield police officers executed a search warrant at Terrell’s residence on Sept. 5, 2018. Officers found a blue duffle bag next to the couch that contained three bags with a total of 2.625 kilograms of methamphetamine. Terrell, who admitted he recently returned from Texas with a little more than three kilograms of methamphetamine, told officers he usually paid $8,000 to $9,000 for each kilogram of methamphetamine. Officers also seized $12,000 from the residence and $2,600 found in Terrell’s front pocket. Terrell has forfeited to the government the total $14,600 that was seized.
Terrell’s role in the drug-trafficking conspiracy occurred while he was on bond for a state charge of possessing a stolen firearm.
Terrell is the fourth and final defendant to be sentenced in this case.
Sharp was sentenced on Nov. 30, 2021, to seven years in federal prison without parole after pleading guilty to her role in the drug-trafficking conspiracy. Sharp also pleaded guilty to possessing a firearm in furtherance of a drug-trafficking crime.
Iavolo was sentenced on Jan. 6, 2022, to six years in federal prison without parole after pleading guilty to his role in the drug-trafficking conspiracy. Iavolo also pleaded guilty to possessing firearms in furtherance of a drug-trafficking crime.
On Nov. 6, 2018, law enforcement officers executed a search warrant at Iavolo’s residence. Iavolo had a loaded Beretta .32-caliber semi-automatic pistol tucked inside the back of his pants. When officers searched a bedroom, they found a Masterpiece Arms 9mm semi-automatic pistol with an extended high capacity magazine in between the bed’s box spring and mattress. Underneath the bed, they found a loaded HK .22-caliber semi-automatic rifle, a loaded Romarm 7.62x39mm semi-automatic rifle, and a rifle case that contained two loaded Glock 9mm semi-automatic handguns, a loaded Cobra .380-caliber semi-automatic pistol, a loaded Star .45-caliber semi-automatic pistol, a loaded Jennings 9mm semi-automatic pistol, numerous handgun magazines, ammunition, a large knife, a rifle scope, and handgun holsters.
Officers also found a safe inside the bedroom closet that contained 33.37 grams of methamphetamine. The bag appeared as if there was once much more methamphetamine inside of it based upon the amount of residue. There was also a metal scoop inside the bag.
Co-defendant Michael D. Johnson was sentenced on Dec. 1, 2021, to seven years and three months in federal prison without parole. Johnson pleaded guilty to possessing methamphetamine with the intent to distribute.
This case was prosecuted by Assistant U.S. Attorney Jessica R. Sarff. It was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Springfield, Mo., Police Department and the Pleasant Hill, Mo., Police Department.
San Antonio Man Sentenced for Fraud SchemeRead the Press Release
SAN ANTONIO – A San Antonio man was sentenced today to 18 months in prison for a fraud scheme and tax evasion.
According to court documents, from 2007 to 2016, Edward C. Wagner, 60, was the owner and operator of the companies Pharmacogenetics, EcoChem, Leaf 23 and Nutrecs. Wagner promoted and sought investments in these companies from people in Nevada, Texas and Florida. However, Wagner never took steps to get any of the ventures off the ground and none of the companies ever did any amount of significant business. Wagner raised $645,743 from investors and used the money for his own personal use.
Also, from 2007 through 2010, Wagner accrued a total of $744,186 in unpaid taxes and penalties based on taxable income of $1,410,112. Wagner intentionally disguised his actual income by hiding his sources, using nominee financial institution accounts, dealing extensively in cash and cashier’s checks, and creating a false loan document. Wagner also failed to file income tax returns for calendar years 2013 through 2016.
In addition to the prison term, Wagner was ordered to pay $76,733 in restitution for the fraud victims and $1,088,258.03 in restitution to the Internal Revenue Service. On October 12, 2021, Wagner pleaded guilty to one count of Wire Fraud and one count of Tax Evasion.
“Our office remains firmly committed to identifying and prosecuting those who seek to enrich themselves through fraud, whether through false representations to deprive others of money, evading their fair share of taxes, or, as in this case, both,” said U.S. Attorney Ashley C. Hoff.
“Fraudsters, such as Edward Carl Wagner, who create elaborate investment schemes that have no purpose other than to mislead and deceive others while also trying to hide their ill-gotten gains from the Internal Revenue Service, run the very high risk of prosecution. No matter what the source of income, even illegal income is taxable!” said Ramsey E. Covington, Special Agent-In-Charge of the Houston Field Office of IRS Criminal Investigation (IRS-CI). “Today’s sentencing is a reminder to all would be fraud scheme and/or tax evading criminals that you will get caught and you will go to jail.”
The IRS-CI investigated the case.
Assistant U.S. Attorney William R. Harris prosecuted the case.
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Sacramento County Man Sentenced to 10 Years in Prison for Armed Robbery of a U.S. Mail Carrier and Bank FraudRead the Press Release
SACRAMENTO, Calif. — Damian Deleal, 33, of Carmichael, was sentenced today to 10 years and one month in prison for armed robbery of a U.S. mail carrier and bank fraud, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in March 2018, Deleal conspired with others, including Jacey Powell to rob a U.S. mail carrier of a postal service key that could open numerous residential cluster mailboxes in Sacramento County. Deleal conspired to obtain the key so he and his co-conspirators – including Jacey Powell, Brandon Moses, and Loren Patrick – could steal bankcards, checks, and other financial instruments from the mail.
On March 9, 2018, in South Sacramento, an unnamed co-conspirator robbed a mail carrier at gunpoint and forced the victim to hand over a postal service key. During the next few days, Deleal, Powell, Moses, and Patrick used the key to steal mailed bankcards and checks. They then attempted to use these items to purchase goods and obtain cash.
Powell and Deleal further conspired to claim reward money offered for information relating to the robbery and the stolen postal service key. In executing this plan, they planted the stolen key on Moses while he was sleeping in his car and called the U.S. Postal Service to report Moses’ location and inquire about the reward. After receiving this tip, investigators worked quickly to make arrests and learned that Deleal orchestrated the conspiracy and related crimes.
“Prosecuting robberies like this one is important to promote respect for the law and provide just punishment,” said U.S. Attorney Talbert. “Mail carriers play an important part in the everyday workings of our country’s mail system, economy, and critical infrastructures. They should be able to do their jobs without the fear of being robbed or assaulted.”
“This sentence demonstrates clearly that Postal Inspectors do not tolerate violence directed at USPS employees and criminal exploitation of the U.S. Mail,” said Rafael Nuñez, Inspector in Charge of the U.S. Postal Inspection Service San Francisco Division. “I want to thank the U.S. Attorney’s Office for the Eastern District of California for prosecuting this serious case, as well as our law enforcement partners for their crucial assistance.”
This case was the product of an investigation by the U.S. Postal Inspection Service, the Sacramento County Sheriff’s Department, and the Sacramento Police Department. Assistant U.S. Attorney Robert J. Artuz prosecuted the case.
Moses, Patrick, and Powell pleaded guilty to federal charges and were sentenced in the following related cases in this district: U.S. v. Patrick, 2:18-cr-79 (two months in prison), U.S. v. Moses, 2:18-cr-90 (two years and 10 months in prison), and U.S. v. Powell, 2:18-cr-83 (two years in prison).
Saint Louis Man Sentenced to 96 Months for Drug and Gun OffensesRead the Press Release
EAST ST. LOUIS, Ill. – Deandre Young, 43, of St. Louis, Missouri, was sentenced today to 96 months
imprisonment by Judge David Dugan in federal court in East St. Louis, Illinois. Young plead guilty
on October 7, 2021, to one count of aiding and abetting a co-defendant’s possession with intent to
distribute methamphetamine and one count of possession of a firearm in furtherance of a drug
trafficking offense.As part of the guilty plea, Young acknowledged that on March 11, 2021, he aided and abetted his
co-defendant’s intended distribution of methamphetamine to a customer at a gas station
in Fairview Heights, Illinois, before being arrested by DEA agents. Young was in possession of a
firearm at the time of his arrest.This case was investigated by the Drug Enforcement Administration.
This matter was prosecuted by Assistant United States Attorney Daniel T. Kapsak.Readout of Justice Department Leadership Meeting with FAMMRead the Press Release
Yesterday, Attorney General Merrick B. Garland, Deputy Attorney General Lisa O. Monaco and Associate Attorney General Vanita Gupta met virtually with members of FAMM and a number of individuals and their families who have been impacted by the federal criminal justice system. Department leadership had an opportunity to hear personal stories about how the new earned time credit rule and home confinement policies have changed lives.
The meeting focused on the positive real-world impact of the finalization of the First Step Act Time Credit Rule, and the recent memorandum by the Office of Legal Counsel (OLC) concerning home confinement, as well as the need for Congress to pass the EQUAL Act. The department has strongly urged Congress to pass the EQUAL ACT, which would reduce the disparity between crack cocaine and powder cocaine sentences from 18:1 to 1:1.
The Attorney General emphasized that meetings like these are “vitally important” to help department leadership understand how its “policies on paper affect people and their communities.”
During her remarks, Deputy Attorney General Monaco spoke about the importance of implementing the First Step Act and the Time Credit Rule and praised the work of FAMM. She noted that “as of this month, thousands of people are returning to their communities having put in the work to do so.”
In Associate Attorney General Gupta’s opening remarks, she reiterated the importance of hearing from individuals directly impacted by the criminal justice system and shared that the department provided written testimony to the Senate Judiciary Committee in support of the EQUAL Act in June 2021, saying, “the current sentencing differential between crack and powder cocaine is not based in evidence and yet has caused significant harm in particular to communities of color. It’s past time to correct this.”
Prison sentence wraps up prosecution of middle Georgia drug trafficking conspiracyRead the Press Release
SAVANNAH, GA: With a sentence handed down in U.S. District Court, the final defendant in a drug trafficking conspiracy joins more than two dozen people sent to prison for distributing methamphetamine and cocaine in middle Georgia.
Donnie Edmonds, a/k/a “Hotboy,” 37, of Vidalia, Ga., was sentenced to 151 months in federal prison after pleading guilty to Conspiracy to Possess with Intent to Distribute, and to Distribute, Methamphetamine and Cocaine, said David H. Estes, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge R. Stan Baker also ordered Edmonds to serve three years of supervised release after completion of his prison sentence. There is no parole in the federal system.
“Operation Ace in the Hole is an outstanding example of multiple law enforcement agencies working together to target addictive drugs, gang violence and illegal firearms in the Southern District,” said U.S. Attorney Estes. “It is a credit to the meticulous work of these agencies that every single defendant admitted guilt and is being held accountable. This office will be relentless in pursuit of illegal drugs and violent crime in this District.”
Operation Ace in the Hole, an Organized Crime Drug Enforcement Task Force (OCDETF) investigation, was initiated in August 2018 in response to increasing levels of gang violence and drug-related activities in the Vidalia area.
In June 2019, investigators executed search warrants at eight houses used for stashing or distributing illegal drugs in Atlanta and Vidalia, seizing more than two kilos of cocaine, four kilos of marijuana, half a kilo of methamphetamine, more than two kilos of MDMA (“Ecstasy”), multiple pints of Codeine, 600 grams of Xanax, pill presses, and surveillance equipment. The drugs were hidden in such items as children’s backpacks and baby-formula bottles. Investigators also seized 20 firearms, including a fully automatic machine gun and several assault-style rifles, along with a trove of gang-related documents and nearly $50,000 in cash.
The investigation culminated in a sealed, 61-count federal indictment returned in January 2020 with 26 defendants charged.
The operation’s name, “Ace in the Hole,” was derived from the alias of Justin Adams, a/k/a “Ace,” 41, of Vidalia, who previously was sentenced to 165 months in prison after pleading guilty in the conspiracy. Adams was a regional leader in the Gangster Disciples criminal street gang, and conspired with the primary supplier of the organization’s narcotics, Deltinaud Toussaint, a/k/a “Black,” a/k/a “Tino,” a/k/a “Tino Black,” 45, of Vidalia. Toussaint also pled guilty in the conspiracy and is serving a sentence of 240 months in prison.
Edmonds was a mid-level drug dealer in the organization, buying “crack” cocaine and “ice”-grade methamphetamine from Toussaint for resale to individual users and street-level drug dealers. Like many of the defendants in the conspiracy, Edmonds has a long criminal history, including convictions for drug sales and possession.
Each of the 26 defendants charged in the indictment pled guilty to felony charges, and all have now been sentenced.
“The epidemic of opioids and gun violence is not just limited to the big cities as it affects all communities across our nation” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “The net result of Operation Ace in the Hole is that our communities will be safer as these violent drug traffickers are headed to Federal prison.”
“This drug dealer received a very significant sentence because of his role in the distribution of large quantities of illegal drugs across Middle Georgia,” said Robert J. Murphy, the Special Agent in Charge of the Drug Enforcement Administration (DEA) Atlanta Field Division. “The DEA and its multi-level law enforcement partners are committed to making communities safer by targeting violent criminal enterprises that wreak havoc on our society.”
“This sentencing ends an exhaustive investigation that stopped a conspiracy that was compounding the opioid epidemic and plaguing the streets of our community with crime,” said Philip Wislar, Acting Special Agent in Charge of FBI Atlanta. “The FBI would like to thank our federal, state, and local law enforcement partners who meticulously worked with us on this case. They should be proud of the results and know that the citizens in our neighborhoods are safer today because of their hard work and determination.”
“We are committed to working with our partners to get dangerous guns and drugs off the streets,” said Vic Reynolds, Director of the Georgia Bureau of Investigation (GBI). “We will not allow gangs to continue to terrorize neighborhoods with hardworking citizens that want to raise their families in a safe environment.”
The OCDETF case was investigated by the ATF, the DEA, the FBI, the GBI, the Georgia Department of Community Supervision, the Toombs County Sheriff’s Office, the Lyons Police Department, the Oconee Drug Task Force, and the Liberty County Sheriff’s Office, and is being prosecuted for the United States by Assistant U.S. Attorney E. Greg Gilluly Jr.
Previously Deported Alien Sentenced to Time-Served for Illegal Re-EntryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on February 28, 2022, Jose Angel Robles-Alvarez, age 38, was sentenced to time served of 33 days’ imprisonment and one year of supervised release, by United States District Court Judge Christopher C. Conner for illegal re-entry of a previously deported alien.
According to United States Attorney John C. Gurganus, Robles-Alvarez pleaded guilty to having illegally reentered the United States sometime after his last removal in October 2015. After illegally reentering the United States after that time, he was located on September 3, 2020, in Adams County, Pennsylvania, after an arrest which resulted in a DUI conviction. It is expected he will be removed to Mexico at the completion of his sentence.
This matter was investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO) and was prosecuted by Assistant United States Attorney Joanne M. Sanderson.
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Perry County Man Sentenced to 120 Months for Armed Methamphetamine TraffickingRead the Press Release
LONDON, Ky.— A Hazard, Ky., man, Eric Edward Shuffler, 40, was sentenced to 120 months in federal prison on Tuesday, by U.S. District Judge Claria Horn Boom, after pleading guilty to methamphetamine trafficking and possession of a firearm in furtherance of drug trafficking.
According to Shuffler’s plea agreement, on August 4, 2020, law enforcement stopped Shuffler and he was found to have a loaded 9mm handgun in the backseat of his car, along with a black bag that contained ammunition, 210 grams of methamphetamine, digital scales, and $3,051 in cash. Shuffler admitted that he intended to distribute the methamphetamine and he carried the firearm for his protection in his drug trafficking activities.
Shuffler pleaded guilty to the charges in October 2021.
Under federal law, Shuffler must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for life.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky, and Jodi Cohen, Special Agent in Charge, FBI, Louisville Filed Office, jointly announced the sentence.
The investigation was conducted by the FBI. The United States was represented by Assistant U.S. Attorney Nick Rabold.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprhensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Owner of car dealership pleads guilty to defrauding financing companyRead the Press Release
ATLANTA - Muneeb Syed, a/k/a Ed Syed, has pleaded guilty to charges that he fraudulently obtained auto financing in connection with his used car businesses.
“We expect businesses to operate lawfully,” said U.S. Attorney Kurt R. Erskine. “Instead, this defendant took advantage of a legitimate car financing plan, resulting in his federal conviction on fraud charges.”
“Syed used deceit and fraud to obtain loans that he was not entitled to receive,” said Philip Wislar, Acting Special Agent in Charge of FBI Atlanta. “His guilty plea is a reminder that the FBI remains dedicated to investigating these types of crimes and bringing the offenders to justice.”
According to U.S. Attorney Erskine, the charges and other information presented in court: Muneeb Syed owned Georgia Luxury Cars, LLC, a Marietta used car dealership, as well as other dealerships in Georgia and Alabama. Georgia Luxury Cars had a floor plan financing agreement with Alphera Financial Services, a division of BMW Financial Services NA, LLC, and other financing companies. Floor plan financing allows a dealership to borrow money from a lender to purchase inventory. The company is obligated to repay the lender upon the sale of the cars. Georgia Luxury Cars could request financing directly using an on-line system that relied upon the information provided by Georgia Luxury Cars. Syed utilized this floor plan financing to obtain cars. He purchased cars in a variety of ways, including through auctions. Generally, if Georgia Luxury Cars bought a car at auction, the financing company would pay the auction company directly for the car, and Georgia Luxury Cars owed the financing company under the floor plan agreement.
Beginning in September 2019, Syed began to obtain fraudulent floor plan loans through two different methods. First, Syed falsely claimed to have purchased multiple cars through various auctions. In reality, Syed never purchased these cars but still received funds from BMWFS to which he was not entitled. He did this for over 25 cars and fraudulently received over $1.6 million.
Second, Syed obtained floor plan financing from multiple companies for the same car. That is, he submitted the same car to two or more different financing companies, receiving financing from each company. He did this for approximately 30 cars, fraudulently receiving over $700,000.
Sentencing for Muneeb Syed, 46, of Atlanta, Georgia, is scheduled for June 15, 2022, at 10:00 a.m. before U.S. District Judge Mark H. Cohen. Syed pleaded guilty to wire fraud.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Christopher J. Huber, Deputy Chief of the Complex Frauds Section, is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Opelika Man Sentenced for Being a Felon in Possession of a FirearmRead the Press Release
Montgomery, Alabama – Today, U.S. Attorney Sandra J. Stewart announced that Hyram Franklin Patton, a 38-year-old man from Opelika, Alabama, was sentenced to 57 months in prison for being a felon in possession of a firearm. In addition to his prison sentence, Patton was ordered to serve three years of supervised release. There is no parole in the federal system.
According to court records, on January 26, 2019, an Alabama State Trooper was patrolling Hwy. 51 in Opelika when he observed a black Ford Mustang cross the centerline and initiated a traffic stop. When the Trooper approached the vehicle, he made contact with the female driver and asked her to step out of the car to check for impairment, she complied. The Trooper observed a man in the in the passenger seat and when he attempted to identify him, the man gave conflicting information about his name. During this process, the Trooper noticed that the passenger was reaching around behind the seat in a suspicious manner and asked for him to exit the vehicle in case he might be reaching for a weapon. The vehicle was then searched and a 9mm handgun was found in the pocket on the back of the seat. The Trooper was finally able to positively identify the passenger as Hyram Franklin Patton, who had an outstanding felony warrant out of Macon County. Patton eventually admitted the gun belonged to him. Patton also has previous felony convictions and is prohibited from possessing firearms. Patton was arrested on the scene and the driver was issued a traffic citation and released.
Patton was indicted by a federal grand jury for being a felon in possession of a firearm on January 15, 2021. He pleaded guilty to that charge on May 4, 2021 and was sentenced on February 25, 2022.
The Alabama Law Enforcement Agency and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated this case. Assistant United States Attorney Brandon Bates prosecuted the case.
Ohio man admits to drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Reuben Jahmell Dauntez Donald, of Akron, Ohio, has admitted to a drug charge, United States Attorney William Ihlenfeld announced.
Donald, 36, pleaded guilty today to one count of “Distribution of Methamphetamine Within 1,000 Feet of a Protected Location.” Donald admitted to selling methamphetamine in October 2021 near Jensen Playground on Wheeling Island.
Donald faces at least one and up to 40 years of incarceration and fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Ohio man admits to drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Andre Duana Bundy, of Youngstown, Ohio, has admitted to a drug charge, United States Attorney William Ihlenfeld announced.
Bundy, 39, pleaded guilty today to one count of “Distribution of 50 Grams or More of Methamphetamine.” Bundy admitted to selling 50 grams or more of methamphetamine in August 2021 in Hancock County.
Bundy faces at least 10 years and up to life incarceration and fine of up to $10,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Shawn M. Adkins and Clayton J. Reid are prosecuting the case on behalf of the government. The Hancock-Brooke-Weirton Drug Task Force, a HIDTA-funded initiative; the Drug Enforcement Administration Wheeling; the Drug Enforcement Administration Youngstown; and the Ohio Highway Patrol investigated. The Marshall County Drug Task Force, a HIDTA-funded initiative; the Ohio Valley Drug Task Force, a HIDTA-funded initiative; and the Mahoning County, Ohio Sheriff’s Office assisted in the investigation.
U.S. Magistrate Judge James P. Mazzone presided.
New York Man Sentenced to 12 Years’ Imprisonment for $1.3 Million Fraud SchemeRead the Press Release
WILLIAMSPORT- The United States Attorney’s Office for the Middle District of Pennsylvania announced that on February 28, 2022, Horace Henry. age 45, of New York, was sentenced to 12 years’ imprisonment by U.S. District Court Chief Judge Matthew W. Brann for organizing a scheme to defraud Sprint of $1.3 million that used stolen personal identification information of 390 victims, in 14 states, to fraudulently order over 1,600 iPhones.
According to United States Attorney John C. Gurganus, Henry previously pleaded guilty before Chief Judge Brann to charges of conspiracy to commit mail fraud and aggravated identity theft. Henry and his co-conspirators executed a scheme to defraud Sprint through fraudulent cell phone service contracts that were created using the stolen personal identification information of 390 identity theft victims, resulting in bogus orders for 1,630 iPhone XR cell phones. According to evidence presented at the sentencing, as a result of the fraud scheme approximately 892 iPhones were shipped to locations throughout the United States, including Centre, Northumberland, Montour, and Mifflin Counties. The fraud and identity theft scheme caused Sprint to incur actual and attempted losses totaling approximately $1,338,247. Henry and his co-defendants used shipment tracking numbers to determine when packages containing iPhones were scheduled for delivery, traveled from New York to the individual victims’ residences in Pennsylvania and other states, and retrieved the packages at the delivery locations, or directly from delivery persons using counterfeit identification documents bearing the personal identification information of the individual victims and photos of the conspirators.
In addition to the 12-year prison term, Chief Judge Brann also ordered Henry to serve a three-year term of supervised release upon release from custody, and pay restitution in the amount of $705,803 for cell phones shipped, but not recovered.
Henry was born in Jamaica and resided in New York at the time of the offense. He was previously deported and illegally re-entered the United States without permission. Henry’s co-defendants, Andrew Herdsman and George Bobb, entered guilty pleas and have been sentenced. Federal and state investigators arrested Herdsman in Centre County on January 25, 2019, after he had picked up fraudulently ordered cell phones, during a joint federal and state investigation conducted with the assistance of Sprint’s fraud management unit. On July 26, 2019, Delaware State Police investigators arrested Henry and Bobb in Delmar, Delaware as a result of information from Sprint indicating multiple fraudulent cell phone orders to locations in Delaware and Maryland. Another co-defendant Ian Thompson was arrested on a warrant issued following federal indictment, and he entered a guilty plea on February 17, 2022 and is presently awaiting sentencing.
The case was investigated by Homeland Security Investigations (HSI), the Pennsylvania State Police, the Pennsylvania Attorney General’s Office, and the Spring Township Police Department, Patton Township Police Department, State College Police Department, and the Delaware State Police and Maryland State Police, with the support, cooperation and assistance of Sprint and Sprint Fraud Management. Assistant U.S. Attorney George J. Rocktashel is prosecuting the case.
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Missouri Man receives 50-year Sentence after Trial for Sexual Exploitation of a MinorRead the Press Release
BENTON, Ill. – A Jefferson County, Missouri, man was sentenced to a total of 600 months in prison
on Friday, February 25, 2022, after a federal jury found him guilty in October of 2021 for
arranging to have sex with a minor, traveling to pick her up in Belleville, Illinois, and producing
sexually explicit images of her.According to court documents and evidence presented at trial, Earl G. Rice, Jr., 63, chatted online
via a dating application with a teenage girl. Rice quickly indicated his interest in
traveling to Belleville, Illinois, from Dittmer, Missouri, to meet the victim and engage in sexual
acts with her. On Valentine’s Day of 2018, Rice arrived with alcohol, condoms, and a candle to take
the victim to a nearby motel. Rice engaged in sexual acts with the victim and produced sexually
explicit images of the teen girl on his cell phone. Belleville Police Department apprehended Rice
at the scene of the crime.“Serious crimes deserve serious punishment, and we are very satisfied with the 50-year sentence
imposed on Earl Rice. Nothing could be more important than keeping children safe from
sex offenders,” said United States Attorney Steven D. Weinhoeft. “This case is another reminder
for parents to be vigilant about their kids’ online activity and to monitor the apps on their
phones.”“While this sentence ensures that Rice will never again subject another child to sexual abuse and
exploitation, it will not erase the devastating and long-term impact for the victim,” said Special
Agent in Charge David Nanz of the FBI Springfield Field Office. “The FBI remains steadfast in our
dedication to identify, investigate and arrest those who seek to harm children. If you suspect a
child is or could become a victim of a sexual predator, don’t hesitate to contact
local law enforcement or the FBI.”Belleville Police Department conducted the investigation, along with support from the
Illinois State Police, and FBI-Springfield and Saint Louis Divisions.The case was prosecuted by Assistant U.S. Attorneys Ali Burns and Karelia Rajagopal.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006
by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation
and Obscenity Section, Project Safe Childhood marshals federal, state, and local
resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to
identify and rescue victims. For more information about Project Safe Childhood,
please visit www.usdoj.gov/psc. For more information about i ternet safety education,
please visit www.usdoj.gov/psc and click on the tab “resources.”
Million dollar smuggler sent to prisonRead the Press Release
McALLEN, Texas – A 36-year-old Rio Grande City man has been ordered to federal prison for conspiracy to possess with intent to distribute more than five kilograms of cocaine and bulk cash smuggling, announced U.S. Attorney Jennifer B. Lowery.
Oziel J. Rodriguez pleaded guilty Nov. 15, 2021.
Today, U.S. District Judge Randy Crane ordered Oziel J. Rodriguez to serve a total 180-month sentence to be immediately followed by five years of supervised release. At the hearing, the court heard evidence Rodriguez was involved in recruiting at least three other individuals to participate in a drug trafficking organization. In handing down the sentence, the court noted the extensive nature of the drug trafficking organization and Rodriguez’s leadership role in it.
Rodriguez utilized the three individuals to transport at least 30 kilograms of cocaine from Sept. 20, 2019, through June 7, 2020, from the Rio Grande Valley through the checkpoints in South Texas. Evidence gathered during the investigation also revealed that recruited individuals made approximately 50 other trips for the purpose of transporting controlled substances.
In addition to transporting narcotics, Rodriguez also facilitated and coordinated the transportation of drug proceeds to the Rio Grande Valley from northern cities in the United States and the delivery of proceeds to Mexico. On June 7, 2020, law enforcement seized approximately $265,000 of drug proceeds in Jim Wells county. In addition, they later seized $838,481 in drug proceeds from Rodriguez as he attempted to smuggle the proceeds to Mexico.
Rodriguez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility in the near future.
The FBI and Drug Enforcement Administration conducted the investigation with the assistance of Homeland Security Investigations, U.S. Customs and Border Protection and the Jim Wells County Sheriff’s Office. Assistant U.S. Attorney Roberto Lopez Jr. is prosecuting the case.
The plea is a result of Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed Operation Bacon’s Law. OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States. It uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Mexican National Sentenced for Transporting Unaccompanied Minor from MexicoRead the Press Release
DEL RIO – A Mexican national was sentenced today to 33 months in prison for illegally transporting an unaccompanied child from Mexico.
According to evidence presented at trial, on July 30, 2019, Victor Manuel Monsivais, 67, was apprehended at 1 a.m. in an HEB parking lot in south San Antonio transporting an unaccompanied 8-year-old child from Mexico. Monsivais intended to give the child back to another person involved in smuggling the child from Mexico into the United States. Special agents with Homeland Security Investigations (HSI), as well as officers from the San Antonio Police Department, were waiting for Monsivais at the HEB based on investigative intelligence about the intended exchange.
On August 19, 2021, Monsivais was found guilty by a federal jury in Del Rio of one count of illegal alien transportation in violation of Section 1324 of Title 8 of the United States Code.
“Today’s sentence reflects the unwavering commitment of our office and that of our valued partners as we continue to work together to vigorously enforce federal law and protect our communities,” said U.S. Attorney Ashley C. Hoff. “I am especially thankful for the determined efforts that went into rescuing the minor child in this case.”
“This sentence serves as an appropriate punishment for Monsivais’ role in the smuggling event. Without law enforcement intervention he would have handed over the child to a stranger, potentially exposing the child to significant danger,” said Shane Folden, Special Agent in Charge, HSI San Antonio. “This case is a glaring reminder that human smugglers are driven by greed and have no regard for the health and well-being of their human cargo. HSI is committed to aggressively targeting smuggling organizations and human smugglers who continually victimize people for profit.”
Co-defendants Elida Kassandra Moreno, 28, a United States citizen and Nery Uriostegui-Dominguez, 28, a Mexican national, pleaded guilty to bringing in and harboring aliens and conspiracy to bringing in and harboring aliens. Moreno was sentenced to 36 months in prison and a $1,000 fine on February 20, 2021. Uriostegui was sentenced to 18 months in prison on April 1, 2020.
HSI with assistance from the San Antonio Police Department investigated the case.
Assistant U.S. Attorneys Joshua Banister and Holly Pavlinski prosecuted the case.
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Man Indicted for Frac Sand Ponzi SchemeRead the Press Release
MIDLAND – Last week a federal grand jury in Midland returned an indictment charging a Keller, Texas man with operating a Ponzi scheme.
According to court documents, Marco Perez, Jr., aka Sully Perez, 41, is the founder and director of Permian Basin Proppants, Inc. (PBP), a company headquartered in Midland that sells proppants such as sand for fracking operations. Between 2017 and 2022, Perez allegedly used PBP to perpetuate a Ponzi scheme by soliciting investor money based on misrepresentations. During this time, Perez took in over $11 million through the scheme. He used most of the funds for his own personal benefit, buying luxury vehicles, property and vacations.
According to the indictment, Perez offered victims the opportunity to fund or invest in PBP transactions. However, the representations Perez allegedly made were based on false and misleading promises, such as promising victims that their investments would be used to purchase frac sand at a discount and then be resold at a profit to fracking operations in and around the Permian Basin. Investors also were promised they would receive back their entire investment plus an additional return. Perez rarely used the investment money to purchase frac sand or complete promised transactions. Instead, he is accused of diverting significant amounts of investor money to pay for his personal expenses and to keep the scheme running, such as by making payments to prior PBP investors.
Perez is charged with 12 counts of Wire Fraud and six counts of Engaging in Monetary Transactions in Property Derived from Specified Unlawful Activity. The defendant is scheduled for a detention hearing next week before U.S. Magistrate Judge Ronald C. Griffin of the U.S. District Court for the Western District of Texas. If convicted, he faces up to 20 years in prison on each of the wire fraud counts and up to 10 years in prison on each of the money laundering counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ashley C. Hoff of the Western District of Texas; FBI Special Agent in Charge Jeffrey R. Downey, El Paso Division; and U.S. Securities and Exchange Commission (SEC) Regional Director David Peavler, Fort Worth Office, made the announcement.
The FBI and SEC are investigating the case.
Assistant U.S. Attorneys John A. Fedock and Fidel Esparza are prosecuting the case.
If you feel you have been a victim of a fraud scheme, contact the FBI at tips.fbi.gov or call 800-CALL-FBI.
An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Madison County Woman Sentenced to 12 Years for $1.6 Million FraudsRead the Press Release
CHARLOTESVILLE, Va. – A Madison County woman was sentenced today to 12 years in prison for perpetrating a scheme in which she stole more than $1.6 million from victims while purporting to have terminal cancer, vast wealth, and connections to celebrities.
Christine Favara Anderson, 51, pleaded guilty in July 2021 to three counts of mail fraud and eight counts of wire fraud. In addition to her prison sentence, Anderson was also ordered to pay $1,615,557.91 in restitution to her victims.
“This defendant spun a web of lies and fraud so varied and extensive, it defies simple summary. At bottom, Anderson stole $1.6 million from victims who had placed their trust in her, and then she invented false excuses – like feigned importance, frozen bank accounts, and terminal illness – so she could hold onto these proceeds without repayment.” United States Attorney Christopher R. Kavanaugh said today. “When victims of the Western District of Virginia suffer from extensive fraud such as this, my Office will always partner with our federal, state and local law enforcement partners to pursue those who perpetrate these crimes and hold them to account for their conduct.”
“Ms. Anderson created elaborate lies about having terminal cancer, vast wealth, and connections to celebrities to gain the trust of her clients and commit her criminal activities. With this guilty plea, Ms. Anderson has finally accepted responsibility for her actions and learned the price of such brazen conduct. Those who were manipulated and suffered losses because of her deceit will see justice served,” Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Division said. “FBI Richmond appreciates the partnership of the Madison County Sheriff’s Office and the Western District of the United States Attorney’s Office during this investigation. If you suspect fraud, please report it to tips.fbi.gov or to your local FBI office.”
According to court documents, Anderson owned and operated the publishing companies known as “Christine F. Anderson Publishing and Media” from 2014 through 2017, and “Sage Wisdom Publishing” from 2017 through 2020. Anderson took money from book authors but later failed to pay those authors their royalties as owed and did not provide products and services as negotiated. In addition, Anderson often falsely claimed to have been diagnosed with cancer in order to delay payments to book authors, while also purporting to maintain vast personal wealth and connections to celebrities.
When authors failed to receive the royalty payments they were owed, Anderson made elaborate excuses for the delays, including claiming to be busy working with the White House on the State of the Union address.
In addition to the book publishing scam, Anderson also admitted to orchestrating a real estate scheme where she signed contracts for expensive real estate, provided multiple false proofs of her own funds, but then was unable to provide the earnest money deposits. Often, Anderson would sign checks for earnest money deposits knowing she did not have the funds and the checks would never clear. She convinced other individuals to loan her money for these real estate transactions knowing that she could not and would not ever repay them. Anderson’s excuses for her inability to pay the earnest money deposits and the loans included her false claims of a cancer diagnosis, freezes on her bank accounts, and other ruses.
In April 2005, Anderson was indicted in the Northern District of Illinois for securities fraud. In June 2009, after a plea of guilty, the district court there ordered her to pay $155,000 in restitution. In July 2020, Anderson communicated with the Department of Justice’s Financial Litigation Unit regarding her ability to pay that restitution, and in doing so, made several false statements
The Federal Bureau of Investigation and the Madison County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Kate Rumsey and Madison County Deputy Commonwealth’s Attorney Wade Gelbert are prosecuting the case.
La Crosse Man Sentenced to 9 Years for Methamphetamine Trafficking & Gun PossessionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Nickolas S. Fitzpatrick, 50, La Crosse, Wisconsin was sentenced today by Chief U.S. District Judge James D. Peterson to 9 years in federal prison for possessing methamphetamine with intent to distribute and being a felon in possession of a firearm. This prison term will be followed by 3 years of supervised release. Fitzpatrick pleaded guilty to these charges on October 26, 2021.
On April 3, 2021, La Crosse police officers attempted to locate Fitzpatrick due to multiple active arrest warrants. Officers found Fitzpatrick at a La Crosse motel and arrested him following a brief foot chase. After being placed in handcuffs, Fitzpatrick told the officers that he had a gun on him. Officers searched Fitzpatrick and found a Walther P22 handgun, four baggies of methamphetamine, and a pocket scale, all in a purse wrapped around his body. Officers found another bag of methamphetamine in Fitzpatrick’s coat pocket. In total, Fitzpatrick possessed over 60 grams of methamphetamine.
Fitzpatrick was prohibited from legally possessing a firearm due to multiple prior felony convictions. He was on state extended supervision for delivering heroin at the time of this incident. His criminal history includes convictions involving drug trafficking, weapon possession, and violence.
At sentencing, Judge Peterson highlighted the quantity of methamphetamine involved and Fitzpatrick’s prior history with weapons. Judge Peterson expressed concern that Fitzpatrick is capable of dangerous and violent conduct and the sentence ordered was necessary to protect the community.
The charges against Fitzpatrick were the result of an investigation conducted by the La Crosse Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The La Crosse County District Attorney’s Office assisted in the case. Assistant U.S. Attorney Steven P. Anderson prosecuted this case.
KC Man Sentenced for Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man who has been involved in several shootings was sentenced in federal court today for illegally possessing firearms.
Zecheriah D. Stewart, 24, was sentenced by U.S. District Judge Howard F. Sachs to nine years in federal prison without parole.
On Jan. 20, 2021, Stewart pleaded guilty to two counts of being a felon in possession of firearms. Stewart admitted that he was in possession of a Glock .40-caliber pistol with an extended clip with 22 rounds of ammunition when he was pulled over by police officers on May 21, 2019. Stewart had a felony probation violation warrant for his arrest and was taken into custody. The firearm had been reported stolen.
Stewart also admitted that he was a passenger in an Infinity FX35 SUV, which officers attempted to stop on Oct. 11, 2019. The Infinity fled from officers, crossed a lane of traffic, sped, disregarded stop signs, and drove erratically until it crashed. Officers placed Stewart, the driver, and another passenger in custody. Officers found a Glock 9mm pistol with an extended magazine inside the vehicle and another Glock 9mm pistol about 15 feet from the vehicle.
According to court documents, in addition to these instances, Stewart was involved in at least two shootings. In the first instance, Stewart was the driver of a vehicle and parked at a gas station in Kansas City, Mo. A passenger in Stewart’s vehicle shot another man and attempted to steal his ATV. In the second instance, Stewart participated in a gunfight at the Discount Smoke & Convenience Store in Raytown, Mo., in which a person was killed. Stewart, who was wounded in the gunfight, fled to a nearby laundromat. Officers found his .45-caliber pistol in a laundry basket.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Stewart has prior felony convictions for assault (for shooting someone) and two counts of tampering with a motor vehicle.
This case was prosecuted by Assistant U.S. Attorney Sean T. Foley. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Jury Convicts Two in $499,000 Unemployment SchemeRead the Press Release
ABINGDON, Va. – A federal jury convicted a pair of Southwest Virginia residents yesterday who conspired with at least thirty others in a scheme to defraud the government of more than $499,000.
Wesley William Hickman, 25, of Big Stone Gap, VA, and Marissa Leann Kiser, 27, of St. Paul, VA, were each convicted of conspiracy to defraud the United States, fraud in connection with emergency benefits, conspiracy to commit mail fraud, mail fraud in connection with emergency benefits, and aggravated identity theft.
According to court documents and evidence presented at trial, Hickman and Kiser conspired with Leelynn Danielle Chytka, Gregory Marcus Elmer Tackett, Jeffery Ryan Tackett, and others to commit fraud against the United States in connection with the filing of fraudulent claims for pandemic unemployment benefits. At the time of his involvement in the scheme, Hickman was incarcerated at the Southwest Virginia Regional Jail and was not entitled to pandemic unemployment assistance. However, Hickman and other jail inmates provided their personal information to Jeffrey Tackett for the purpose of filing fraudulent claims. Kiser provided her personal information to her friend Chytka, who was the ringleader of this widespread conspiracy, for the purpose of filing a fraudulent claim on her behalf.
Over the course of nine months, members of the conspiracy filed fraudulent claims with the Virginia Employment Commission on behalf of at least 37 individuals, with a total actual loss to the United States of at least $499,000. Hickman and Kiser will be sentenced later this summer.
U.S. Attorney Christopher R. Kavanaugh of the Western District of Virginia; Syreeta Scott, Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General and Acting Special Agent in Charge is Darrell J. Waldon of the Internal Revenue Service- Criminal Investigation made the announcement.
The Department of Labor - Office of the Inspector General, the Internal Revenue Service – Criminal Investigation Washington, D.C., Field Office, the Norton Police Department, and the Russell County Sheriff’s Office investigated the case.
Assistant United States Attorneys Daniel J. Murphy and Michael Baudinet prosecuted the case.
Jury Convicts Man of Possession with Intent to Distribute MethRead the Press Release
A man who possessed, with the intent to distribute, methamphetamine was convicted by a jury on February 25, 2022, after a 4-day trial in federal court in Sioux City.
Carmelo Valdez Romero, 35, from Sioux City, Iowa, was convicted of possession with intent to distribute methamphetamine. The verdict was returned following about three hours of jury deliberations.
The evidence at trial showed that on March 17, 2020, Valdez Romero and others possessed with intent to distribute about 20 pounds of methamphetamine. Valdez Romero aided others in the removal of 20 one-pound packages of methamphetamine hidden in the gas tank of a rental vehicle which had traveled from California to rural Dickinson County, Iowa, with the methamphetamine for further re-distribution. Specifically, in a machine shed on the property, Valdez Romero removed the rear seats of the vehicle, removed the fuel pump, as well as other equipment attached to the gas tank and physically helped another retrieve the methamphetamine from the two-part gas tank. During the execution of a search warrant at the property, law enforcement agents seized 15 pounds of methamphetamine from a safe inside the machine shed, and five more pounds of methamphetamine being driven away from the property, including one pound of methamphetamine from the vehicle operated by Valdez Romero. Agents also seized $700 from Valdez Romero and $900 from the other two vehicle occupants, all pre-serialized money used by agents earlier that day to purchase one pound of methamphetamine from Valdez Romero’s drug associate by confidential informants.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Valdez Romero remains in custody of the United States Marshal pending sentencing. Valdez Romero faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least five years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4051.
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Judge Orders Freon Smuggler to Pay $250,000Read the Press Release
A Fort Worth man who smuggled freon into the U.S. was ordered to pay a $250,000 fine, announced U.S. Attorney Chad E. Meacham.
Faiz Abdallahi, 56, pleaded guilty in October 2021 to the improper importation of a class II substance, a felony under the Federal Clean Air Act. He was sentenced Tuesday to three years’ probation by Senior U.S. District Judge Terry R. Means.
According to plea papers, Mr. Abdallahi admitted that he smuggled HCFC-22, also known as R-22 refrigerant gas – an ozone-depleting chemical colloquially called freon – into the U.S. without an authorized permit in 2017.
The U.S. Environmental Protection Agency would later phase out production of R-22, which can no longer be produced or imported as of 2020. Only recovered, recycled, or reclaimed supplies of R-22 are currently available, though consumers are not required to stop using R-22 air conditioners.
Mr. Abdallahi admits he arranged for Chinese R-22 to be delivered to the port of Long Beach California and then transported via rail to the Dallas/Fort Worth area disguised as R32 to avoid seizure by the US Customs and Border Protection. His co-conspirator, 53-year-old Severo Zamora, then re-packaged and sold the R-22 to Heating, Ventilation and Air Conditioning (HVAC) companies in the U.S. (Mr. Zamora pleaded guilty in January 2022 to being an accessory after the fact and was sentenced to six months’ probation.)
“The defendant’s intentional disregard for the environment included the illegal sale of hydrochlorflourocarbon-22 (R-22), a restricted substance which not only damages the ozone layer that protects people from the harmful effects of ultraviolet radiation, but also contributes to climate change,” said Todd “Tony” Adams, Assistant Special Agent in Charge of the EPA’s Southwest Area criminal enforcement program. “EPA and our federal partners continue to hold accountable companies and individuals that place public safety and the environment at risk.”
The investigation was conducted by the U.S. Environmental Protection Agency’s Criminal Investigation Division and Homeland Security Investigations. Assistant U.S. Attorney Douglas Allen prosecuted the case.
Jashawn Hunter Indicted for Firearms and Drug Trafficking OffensesRead the Press Release
The Office of the United States Attorney for the District of Vermont stated Jashawn Hunter, 34, of Hartford, Connecticut, was indicted on Thursday, February 24 by a federal grand jury with two charges of unlawful possession of firearms and one charge of possessing narcotics with intent to distribute them. Hunter is currently detained on related state charges. He has not yet been scheduled to appear in federal court. The government has moved for Hunter’s continued detention pending trial.
According to court records, Hunter was arrested following an investigation into a brutal beating that occurred in St. Johnsbury in September 2021. Hunter had been staying at the victim’s residence to conduct drug trafficking activities. When Hunter learned that the victim no longer wanted Hunter to stay there, Hunter beat the victim with a revolver and with his fists. The victim, who suffered a fractured cheekbone and received stitches for his injuries, ultimately escaped out a bathroom window. Approximately a week later, law enforcement located Hunter, who threw a bag he had been carrying before he was apprehended. Within the bag were approximately 4.7 grams of fentanyl, approximately 32 grams of cocaine base, a scale, and a Smith and Wesson .45 caliber handgun. Law enforcement also recovered the gun Hunter is believed to have used in the beating: a Smith and Wesson .38 caliber revolver. Hunter is prohibited from possessing firearms due to his criminal history.
The United States Attorney’s Office emphasizes that an indictment contains allegations only and that Hunter remains presumed innocent until and unless he is convicted of a crime. If convicted, Hunter faces up to 20 years imprisonment on the drug trafficking count and up to 10 years imprisonment on each firearms count. Any actual sentence would be determined by the Court with reference to the advisory Federal Sentencing Guidelines and the United States Code.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of the Vermont State Police and St. Johnsbury Police Department and collaboration with the Caledonia County State’s Attorney’s Office in this matter. “The United States Attorney’s Office remains focused on apprehending violent criminals and keeping our communities safe. We will continue to collaborate with our local, state, and federal law enforcement partners to both address potential violence before it occurs and to hold individuals accountable for criminal conduct with firearms.”
The United States is represented in this matter by Assistant U.S. Attorneys Eugenia A.P. Cowles and Nicole P. Cate. Attorney information for defendant Hunter is not yet available.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. See https://www.justice.gov/psn
Inmate indicted for assault chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Billy Moore, a former inmate at USP Hazelton in Bruceton Mills, West Virginia, was indicted today on an assault charge, United States Attorney William Ihlenfeld announced.
Moore, 24, was indicted today on one count of “Assault of a Correctional Officer Involving Physical Contact.” Moore is accused of assaulting a corrections officer in March 2021 at USP Hazleton.
Moore is facing up to eight years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Christopher L. Bauer is prosecuting the case on behalf of the government. The Bureau of Prisons investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Indiana Real Estate Developer and Property Manager Admits Ponzi Scheme to Defraud Investors of Millions of DollarsRead the Press Release
NEWARK, N.J. – A property developer and manager from Indiana today admitted his role in a scheme to defraud real estate investors, U.S. Attorney Philip R. Sellinger announced.
Herbert Whalen, aka “Bert Whalen,” 47, of Indianapolis, Indiana, pleaded guilty by videoconference before U.S. District Judge Madeline Cox Arleo to the first count in an indictment, charging him with conspiracy to commit wire fraud
“The defendant preyed upon innocent victims’ desire to improve their own financial position through what they thought were sound investments,” U.S. Attorney Sellinger said. “Working with our partners at the FBI, we were able to discover his illegal activity and ensure that he will now face justice for his crimes. Combatting investment fraud remains one of our highest priorities, and this conviction sends a clear message that such conduct will be punished.”
“Investment fraud schemes take many forms and as long as there are trusting people, looking for what seems like a good way to protect and grow their money, these fraudsters will continue to strike,” Special Agent in Charge George M. Crouch Jr. said. “The FBI is constantly on watch for thieves who paint their schemes as golden opportunities to build on your wealth when, in fact, they are only building theirs using your hard-earned money. The best protection is still prevention: do your homework and check multiple websites like FBI, SEC, and FINRA, to confirm legitimacy; don’t believe the hype – if it sounds too good to be true, it probably is; and view any seemingly great opportunity through the lens of skepticism. Lastly, if you suspect fraud, report it to tips.fbi.gov.”
According to documents filed in this case and statements made in court:
From August 2016 to July 2018, Whalen, who operated Oceanpointe Property Management in Indianapolis, engaged in a scheme to obtain money from real estate investors by misrepresenting and concealing the poor condition of properties managed by Oceanpointe and by creating fake leases for unoccupied Oceanpointe properties. Investors were promised that, after repairs and rehabilitations were completed, and tenants rented the properties, investors would receive copies of the leases and begin to receive rent payments as their return on investment. In reality, many Oceanpointe properties were not repaired and rehabilitated, and were not ready for occupancy. To conceal this fact from victim investors, Whalen and a conspirator directed Oceanpointe employees to draft fake leases, making it appear to investors that Oceanpointe properties were rented, when, in fact, the properties remained vacant. Whalen instructed Oceanpointe employees to place fake tenant names on leases to send to Oceanpointe investors.
When investors attempted to view the properties that they had purchased, Whalen directed Oceanpointe employees to cover the windows to conceal the poor condition of the properties and the fact that the properties remained vacant. Whalen and others commingled tenant rent payments and selected which investors would be paid from the pool of funds in order to silence investors who voiced concerns and evade detection of the fraud. In order to prevent investors from leaving Oceanpointe and exposing the fraudulent conduct, Whalen directed an Oceanpointe employee to create a false identity and falsely claim, on an online real estate message forum, that the Oceanpointe employee was an investor with Oceanpointe and another company, and that Oceanpointe had addressed all of the concerns regarding the investment property. These misrepresentations and others led to millions of dollars in losses to investors, which Whalen used to, among other things, fund his lifestyle.
The charge of conspiracy to commit wire fraud carries a maximum potential punishment of 20 years in prison and a fine of up to $250,000, or twice the gross loss or gain caused by the offense. Sentencing is scheduled for July 14, 2022.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Carolyn Silane of the Economic Crimes Unit and Ari B. Fontecchio of the Special Prosecutions Division in Newark.
Illinois Man Sentenced for Robbery of Retail Store in Lake DeltonRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Cortez Thurmond, 29, Gurnee, Illinois, was sentenced today by Chief U.S. District Judge James D. Peterson to 8 ½ years in federal prison for robbery of a retail store in Lake Delton, Wisconsin. Thurmond pleaded guilty to this charge on October 20, 2021.
On July 28, 2020, Thurmond and his co-defendant Deon Brown robbed the Alpha Red Studio in Lake Delton. A few minutes later, and less than a mile away, Thurmond and Brown robbed Gifts of the World retail store. Video surveillance from Gifts of the World showed Thurmond and Brown taking money from the store and customers. During the robbery, Brown carried a firearm with an extended magazine and struck a customer in the back of the head with it.
At the time of the robberies, Thurmond was on active state supervision in Illinois for a felony burglary conviction. At the sentencing hearing, Judge Peterson noted that Thurmond had an extensive criminal history including prior convictions for home invasion and burglary. Judge Peterson also noted that he had a duty to protect the public from Thurmond’s “really dangerous offenses.”
Brown pleaded guilty on January 26, 2022 to robbing Gifts of the World with Thurmond. Brown will be sentenced by Judge Peterson on April 20, 2022.
Thurmond and Brown also face federal charges in the Eastern District of Wisconsin, where a grand jury returned an indictment charging Thurmond and Brown with conspiring to rob various commercial establishments in Racine and Kenosha. This indictment was returned by the grand jury on January 11, 2022. With regard to these charges, you are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
The charges against Thurmond and Brown were a result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lake Delton Police Department, and the Racine Police Department. Assistant U.S. Attorney Aaron Wegner handled the prosecution.
Huntington Man Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pleaded guilty today to the distribution of cocaine base, also known as “crack.”
According to court documents, Deandre Antonio Ziegler, 31, who is also known as “Little D,” admitted to distributing cocaine base, also known as “crack,” to an undercover informant on five different occasions in July and August 2020.
Ziegler pleaded guilty to distribution of cocaine base and faces up to 20 years in prison when he is sentenced on June 6, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Cabell County Sheriff’s Department Drug Unit and the FBI’s Southern West Virginia Transnational Organized Crime (TOC) West Task Force.
United States District Judge Robert C. Chambers presided over the hearing. Assistant U.S. Attorney Courtney L. Cremeans 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. 3:21-cr-00017.
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Houston Livestock Show and Rodeo to undergo ADA compliance reviewRead the Press Release
HOUSTON – The U.S. Attorney’s Office will conduct a compliance review of the Houston Livestock Show and Rodeo (HLSR) to evaluate accessibility for disabled individuals planning to attend the event, announced U.S. Attorney Jennifer B. Lowery.
The collaborative review stems from complaints the HLSR violated the Americans with Disabilities Act of 1990 (ADA). The allegations include failing to provide accessible parking, accessible seating and accessible routes. The review will be conducted under Title III of the ADA which prohibits private places of public accommodation to discriminate against individuals with disabilities. It will take place over a three-day period during the week of March 7. An accessibility expert will conduct the compliance review, along with representatives from the US Attorney’s Office (USAO) and the HLSR.
Since its beginning in 1932, the HLSR’s website states it has committed more than $550 million to Texas youth and education, including $27 million to scholarships, junior show exhibitors, educational program grants and graduate assistantships. It reports to be one of the largest scholarship providers in the country.
The HLSR also reports that in 2019, it generated a total economic impact of $227 million and total economic activity of $391 million in Greater Houston. Over 2.5 million people attended the Houston Rodeo in 2019.
This year, the HLSR will run from Feb. 28-March 20.
The USAO for the Southern District of Texas is committed to vigorously enforcing the ADA and welcomes public comments or complaints. To file a comment or complaint, or to learn more about the ADA, individuals can contact the U.S. Attorney's Office for the Southern District of Texas at (713) 567-9140 or via email.
Assistant U.S. Attorney (AUSA) Elizabeth Karpati and Executive AUSA Keith Wyatt are handling the matter.
Harrison County man indicted for firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Robert Lee Starkey, Jr., of Mount Clare, West Virginia, was indicted today on a firearms charge, United States Attorney William Ihlenfeld announced.
Starkey, 28, was indicted today on one count of “Unlawful Possession of Firearm.” Starkey, a person prohibited from having a firearm because of previous convictions, is accused of having semi-automatic pistol in July 2021 in Taylor County.
Starkey is facing up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah E. Wagner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives and the Taylor County Sheriff’s Office investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.