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Tuesday 1 March 2022
Hanover Man Sentenced to 15 Years in Federal Prison for Distribution of Fentanyl, Cocaine, and Marijuana Shipped Through the Mail from California to MarylandRead the Press Release
Baltimore, Maryland – U.S. District Judge Stephanie A. Gallagher today sentenced Dwight Antonio Pitts, age 47, of Hanover, Maryland, to 15 years in federal prison, followed by five years of supervised release, for his participation in a drug distribution conspiracy involving large amounts of fentanyl, cocaine, and marijuana, shipped through the U.S. Mail from California to Maryland. Pitts admitted that during his participation in the conspiracy, it was foreseeable that he and the other conspirators distributed approximately 8.5 kilograms of fentanyl; approximately 150 kilograms of cocaine; and approximately 50 kilograms of marijuana.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Superintendent Colonel Woodrow W. Jones III of the Maryland State Police (MSP); Postal Inspector in Charge Greg L. Torbenson of the U.S. Postal Inspection Service (USPIS) - Washington Division; and Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration (DEA), Baltimore District Office.
According to his guilty plea, since November 2019, the MSP, the DEA, and the USPIS were investigating a drug trafficking conspiracy involving Pitts, Michael Fisher (a.k.a. Mark Wilson), and others, that was distributing fentanyl, cocaine, and marijuana in the Baltimore/Washington Metropolitan areas. Investigators used court-authorized wiretaps to intercept calls and other communications between Pitts, Fisher, and other conspirators in which they discussed drug distribution with each other and with other individuals. Investigators also conducted surveillance of drug transactions conducted by both Pitts and Fisher.
During the conspiracy, Pitts and Fisher traveled to California multiple times to obtain kilograms of cocaine and fentanyl. Once in possession of the narcotics, Pitts or Fisher used the U.S. Mail to ship the narcotics back to Maryland for distribution.
Between May and August 2020, U.S. postal inspectors interdicted several parcels from the mail, including two parcels bound for an address in Hyattsville, Maryland that was leased by Pitts. On August 13, 2020, a search warrant was authorized for the two parcels. Law enforcement recovered more than two kilograms of cocaine from one parcel and more than two kilograms of fentanyl from the other parcel. Investigators obtained video surveillance from the El Segundo Branch Post Office, from which the parcels had been mailed. The video showed Pitts at the post office at the time the parcels were mailed.
On August 13, 2020, investigators obtained consent to search Co-Conspirator 2’s residence in Los Angeles after watching Fisher transfer a box containing approximately $190,020 in cash to Co-Conspirator 2’s car. Law enforcement recovered from the residence two duffle bags containing approximately 30 kilograms of cocaine, along with two additional duffle bags that contained more than $193,980 in narcotics proceeds, not including the approximately $190,020 Fisher provided to Co-Conspirator 2 earlier that day.
On August 17, 2020, law enforcement executed search warrants at the six locations in Maryland associated with Pitts and Fisher and at a residence in Las Vegas, Nevada. Investigators seized 15 firearms—6 firearms from locations associated with Pitts and 9 firearms from locations associated with Fisher—along with kilogram quantities of cocaine, fentanyl, and marijuana. In total, during the investigation law enforcement seized approximately 35 kilograms of cocaine, approximately 6.5 kilograms of fentanyl, and approximately 50 kilograms of marijuana. In addition, investigators seized approximately $1,501,308, which Pitts admitted was proceeds from the sale of narcotics.
As detailed in the plea agreement, additional evidence, including evidence seized from searches on cellular phones of conspirators and CCTV footage, showed that between July 2019 and August 2020, the conspiracy was responsible for mailing approximately 121 parcels from Los Angeles area Post Offices to locations in Maryland.
Co-defendant Michael Fisher, age 47, of Laurel, Maryland, pleaded guilty to the same charges and is awaiting sentencing.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States 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 overdose crisis continues to devastate our state and local communities. If you believe you may need substance use disorder treatment or recovery services, please call 1800-662-HELP (4357). You may also visit the website for United States Attorney’s Office for the District of Maryland for further information and resources on opioid awareness here.
United States Attorney Erek L. Barron commended the MSP, USPIS, and DEA for their work in the investigation and recognized the Los Angeles Police Department, the Los Angeles and Las Vegas DEA, and the USPIS Phoenix Division-Las Vegas, Nevada for their assistance. Mr. Barron thanked Assistant U.S. Attorney Anatoly Smolkin, and Special Assistant U.S. Attorney Christopher J. Romano, who prosecuted the case.
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Former Family Practitioner Sentenced to Prison for Illegally Dispensing Drugs and Health Care FraudRead the Press Release
PITTSBURGH, PA - A former physician who operated private family practices in Perryopolis, Pennsylvania, and Mount Pleasant, Pennsylvania, has been sentenced in federal court to 18 months’ incarceration, followed by three years supervised release, and ordered to pay a $5,000 fine on his conviction of violating federal narcotics and health care laws, United States Attorney Cindy K. Chung announced today.
United States District Judge J. Nicholas Ranjan imposed the sentence on Emilio Ramon Navarro, 60, of Coal Center, Pennsylvania.
According to the information presented to the court, Navarro, a licensed physician in the Commonwealth of Pennsylvania, operated private family practices in Mount Pleasant and Perryopolis. In 2018, Navarro issued Victim 1 nine prescriptions for a total of 300 dosage units of Oxycodone and 240 dosage units of Oxymorphone, both Schedule II controlled substances, outside the usual course of professional practice and for no legitimate medical purpose. Rather, Navarro forced Victim 1 to engage in sexual acts with him prior to issuing her these prescriptions to which he caused her to be addicted. Navarro thereby caused the submission of fraudulent claims to Medicaid for reimbursement for the unlawfully prescribed prescriptions thereby defrauding Medicaid.
Prior to imposing the sentence, Judge Ranjan stated, “There are victims involved and they have suffered lasting impacts.”
“Today’s sentence holds Dr. Navarro accountable for his illegal activities,” said U.S. Attorney Chung. “I will continue our office’s tenacious pursuit of unscrupulous doctors who exploit the addictions of patients for personal gratification and then cause our healthcare system to be defrauded.”
“Dr. Navarro had a clear disregard for medical integrity,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “He preyed on victims struggling with addiction and traded drugs for sex. The FBI will continue to work with our partners to hold accountable those who abuse their positions of trust.”
“When Dr. Navarro prescribed opioid prescriptions in exchange for sexual favors, he abandoned his duty as a physician and recklessly discarded the health and safety of his patients,” said Special Agent in Charge Maureen R. Dixon of the U.S. Department of Health and Human Services. “Together with our law enforcement partners, our agency will continue to uproot such egregious fraud schemes that threaten public health and wastes taxpayer dollars.”
“Navarro held a position of trust in his community and his patients depended on him to provide medical care,” said AG Shapiro. “He will now face consequences for showing no regard for the health and safety of his patients, illegally prescribing drugs that have fueled the opioid crisis here in Pennsylvania, and defrauding our Commonwealth's Medicaid Program. The Office of Attorney General's arrests of prescribers who divert prescription drugs are up 135% since 2016. We will continue to work with our partners to seek out those who put lives at risk and hold them accountable.”
Assistant United States Attorneys Robert S. Cessar and Mark V. Gurzo are prosecuting this case on behalf of the government.
The investigation leading to the prosecution of Emilio Navarro was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit (OFADU). The Western Pennsylvania
OFADU, led by federal prosecutors in the U.S. Attorney’s Office, combines the expertise and resources of federal and state law enforcement to address the role played by unethical medical professionals in the opioid epidemic. The agencies which comprise the Western Pennsylvania OFADU include: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, Pennsylvania Office of Attorney General – Bureau of Narcotic Investigations, United States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration-Office of Criminal Investigations, U.S. Office of Personnel Management – Office of Inspector General and the Pennsylvania Bureau of Licensing.Former Delaware Doctor Sentenced to 20 Years in Prison for Unlawfully Distributing Opioid PillsRead the Press Release
A former Delaware doctor was sentenced today to 20 years in prison for unlawful drug distribution and maintaining a drug-involved premises.
Patrick Titus, 58, of Milford, was convicted by a federal jury in July 2021 of 13 counts of unlawfully distributing and dispensing controlled substances and one count of maintaining a drug-involved premises.
“This sentence is a reminder that the Department of Justice will hold accountable those doctors who are illegitimately prescribing opioids and fueling the country’s opioid crisis,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Doctors who commit these unlawful acts exploit their roles as stewards of their patients’ care for their own profit.”
According to court documents and evidence presented at trial, Titus unlawfully distributed or dispensed a variety of powerful opioids – including fentanyl, morphine, methadone, OxyContin and oxycodone – outside the usual scope of professional practice and not for legitimate medical purposes. Titus operated an internal medicine practice where he frequently prescribed these dangerous controlled substances in high dosages, sometimes in combination with each other or in other dangerous combinations, mostly in exchange for cash. Evidence at trial showed he distributed over 1 million opioid pills. Although these Schedule II drugs are approved for pain management treatment, Titus provided no meaningful medical care and instead prescribed these controlled substances to patients he knew were suffering from substance use disorder and/or who demonstrated clear signs that the prescribed drugs were being abused, diverted or sold on the street.
“DEA-registered medical practitioners have an important role in our communities to treat patients compassionately and responsibly,” said DEA Administrator Anne Milgram. “Today’s sentencing makes clear that medical professionals who recklessly prescribe opioids and endanger the safety and health of patients will be held accountable. I applaud the outstanding investigative work conducted by DEA’s Wilmington Resident Office Tactical Diversion Squad and the Department of Justice’s prosecution of the case.”
“As we continue the fight against the opioid crisis, this case serves as an important reminder that health care professionals have a duty to prescribe medication responsibly to ensure the well-being of individuals under their care. Failing to do so can endanger patients and undermines critical, ongoing public health measures,” said Special Agent in Charge Maureen Dixon of the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG). “HHS-OIG will continue to work with our law enforcement partners to hold bad actors accountable.”
The DEA and HHS-OIG investigated the case.
Assistant Deputy Chiefs Aleza Remis and Justin Woodard and Trial Attorney Claire Sobczak of the Criminal Division’s Fraud Section prosecuted the case. Assistant U.S. Attorney Edmond Falgowski of the District of Delaware assisted with the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this Program, comprised of 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who collectively have billed the Medicare program for more than $19 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.
Five Tax Shelter Promoters and Two Appraisers Indicted in Syndicated Conservation Easement Tax SchemeRead the Press Release
A federal grand jury sitting in Atlanta, Georgia, returned a superseding indictment on Feb. 24 charging seven individuals with conspiracy to defraud the United States and other crimes arising out of their promotion of fraudulent tax shelters involving syndicated conservation easements dating back nearly two decades. One of the defendants, Herbert Lewis, was previously charged in an indictment returned on June 9, 2021.
According to the superseding indictment, Jack Fisher, an Atlanta certified public accountant (CPA); James Sinnott; Yekaterina Lopuhina, aka “Kate Joy;” Lewis, an Atlanta-area CPA; Victor Smith, an Atlanta-area CPA; Clayton Weibel, a licensed appraiser; and Walter D. Roberts II, aka “Terry Roberts,” a licensed appraiser, engaged in a conspiracy to design, market and sell false and fraudulent charitable contribution tax deductions to high-income clients. Fisher and Sinnott allegedly caused partnerships to donate conservation easements over land owned by the partnerships. In conjunction with those donations, Fisher and Sinnott allegedly used two hand-picked appraisers, Weibel and Roberts, to generate fraudulent and inflated appraisals of the conservation easements that frequently valued the easements at amounts at least 10 times higher than the price that was actually paid for the partnership — often within months of the appraisals. According to the superseding indictment, the partnerships then claimed a charitable contribution tax deduction in the inflated amount of the conservation easement, resulting in a fraudulent tax deduction flowing to the clients who purchased units in the partnership.
Fisher, Sinnott, Joy, Lewis, Smith and other co-conspirators allegedly promoted, marketed and sold partnership units for $25,000 and guaranteed at least a 4-to-1 tax deduction ratio to their clients, which meant that four units with a total cost of $100,000 would yield a $400,000 tax deduction. The marketing materials allegedly stated, for example, that depending on their personal tax rate, such a $400,000 deduction could result in the client receiving $170,000 back within months of purchasing their units for $100,000. Fisher, Sinnott and Joy allegedly provided Roberts and Weibel with spreadsheets containing information purportedly used to value the conservation easements necessary to deliver the tax deduction ratio promised to their clients.
The superseding indictment charges that the syndicated conservation easement transactions were abusive tax shelters lacking in economic substance or a business purpose. Despite Fisher, Sinnott and Joy allegedly attempting to disguise the transactions as real estate deals, the indictment alleges that the transactions were simply the illegal sale of inflated tax deductions. Additionally, Fisher, Sinnott, Joy, Lewis and Smith allegedly helped clients claim charitable contribution tax deductions after the close of the tax year by accepting late sales, generating backdated documents and preparing, and causing the preparation of, false and fraudulent tax returns and false documents, among other items. In total, the defendants allegedly sold over $1.3 billion in false and fraudulent tax deductions through this scheme.
All defendants are charged with conspiring to defraud the United States, for which they face a maximum sentence of five years in prison. In addition, Fisher, Sinnott, Joy, Roberts and Weibel are charged with one count of conspiracy to commit wire fraud, for which each faces a maximum sentence of 20 years in prison if convicted. Lewis and Smith are both charged with wire fraud, for which they each face a maximum sentence of 20 years in prison for each count. Fisher, Sinnott, Lewis, Smith, Roberts and Weibel are charged with aiding and assisting in the preparation of false returns related to the syndicated conservation easement tax shelters, for which they face a maximum sentence of three years in prison for each count. Fisher, Sinnott, Joy and Lewis are also charged with filing false personal tax returns, for which they each face a maximum sentence of three years in prison for each count. Finally, Fisher is charged with money laundering arising from his purchases of multiple luxury vehicles and domestic and foreign properties with the proceeds of unlawful activity. He faces a maximum sentence of 10 years in prison for each count. In addition to the statutory maximum periods of incarceration, each of the defendants also faces a period of supervised release, monetary penalties, restitution and forfeiture. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
“The Tax Division is continuing to prioritize prosecution of fraudulent tax shelters, which are designed to enable taxpayers to pay far less than their fair share,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “Those who contemplate promoting fraudulent tax shelters involving syndicated conservation easements – and the accountants, appraisers and tax preparers who create and execute strategies to assist them – should know that the Tax Division and IRS will unravel even the most elaborate schemes.”
“This superseding indictment demonstrates IRS Criminal Investigation’s commitment to investigate and prosecute illegal tax shelters,” said Chief Jim Lee of IRS Criminal Investigation (IRS-CI). “IRS-CI special agents are focused on ending abusive syndicated conservation easements that allow perpetrators of these schemes to enrich themselves while their wealthy clients skirt their tax obligations.”
Acting Deputy Assistant Attorney General Goldberg of the Tax Division, U.S. Attorney Kurt R. Erskine for the Northern District of Georgia and IRS Criminal Investigation Chief Lee made the announcement, and they thanked U.S. Attorney Dena J. King for the Western District of North Carolina for her office’s assistance in investigating the case.
IRS-CI and the U.S. Postal Inspection Service are investigating the case.
Tax Division Trial Attorneys Brittney Campbell, Parker Tobin, Casey Smith and William Guappone, along with Assistant U.S. Attorney Christopher Huber, Deputy Chief of the Complex Frauds Section, of the Northern District of Georgia, are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Fairmont man indicted for theft of 13 firearmsRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jesse Ross Duke, of Fairmont, West Virginia, was indicted today on a firearms charge, United States Attorney William Ihlenfeld announced.
Duke, 34, was indicted today on one count of “Theft of Firearms.” Duke is accused of taking 13 firearms that included pistols, rifles, shotguns, and revolvers, from a licensed firearms dealer in June 2021 in Marion County.
Duke 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 Marion County Sheriff’s Office investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Evergreen Physician Sentenced to Federal Prison for Taking BribesRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Dr. Jeffrey Kesten, age 61, formerly of Evergreen, Colorado, was sentenced to 24 months in federal prison, to be followed by three years of supervised release, for conspiring to violate the Anti-Kickback Statute, in connection with a scheme to take bribes and kickbacks from a pharmaceutical company in exchange for prescribing a powerful fentanyl spray to his chronic pain patients.
According to the plea agreement, beginning in late 2012 and continuing through November 2015, the defendant conspired with pharmaceutical company employees to take approximately $344,000 in bribes and kickbacks from Insys Therapeutics, Inc., the manufacturer of Subsys, a powerful sublingual fentanyl spray approved by the FDA in 2012 to treat breakthrough pain in cancer patients. The bribes were disguised as payments or honoraria for purportedly delivering educational speaker programs to the defendant’s medical peers. In fact, the defendant often delivered no programs at all—at one point taking payments of over $40,000 from Insys for 17 “programs” he allegedly delivered to his own staff at his medical clinic. As part of the plea agreement, the defendant admitted that he entered into a quid pro quo relationship with Insys, and that the payments affected his prescribing decisions. He abused his position of trust vis-à-vis his patients and the Federal healthcare programs in which he was enrolled, becoming one of Insys’s top revenue-generating prescribers. Prescriptions for Subsys typically cost thousands of dollars each month, and Medicare and Medicaid paid millions of dollars to cover Subsys prescriptions written by Dr. Kesten.
“You have to be able to trust your doctor’s medical judgment,” said U.S. Attorney Cole Finegan. “We’ll hold physicians and medical professionals accountable for taking bribes and kickbacks, especially when they are prescribing powerful drugs to vulnerable patients.”
“As we’ve seen over the past several years fentanyl abuse has become an existential threat across the nation,” said DEA Denver Acting Special Agent in Charge David Olesky. “There is no greater threat to our community than a doctor who violates a patient’s trust with no regard to patient safety and well-being beyond what profits it can bring him. We applaud this sentencing and will continue to work with our counterparts in the U.S. Department of Health and Human Services Office of the Inspector General and the U.S. Attorney’s Office to ensure other doctors who manipulate the system will be held accountable.”
“Accepting kickbacks and bribes in exchange for prescribing medication not only compromises the integrity of Federal health care programs; it can also gravely endanger beneficiaries,” said Curt L. Muller, Special Agent in Charge with the U.S. Department of Health and Human Services Office of the Inspector General. “HHS-OIG will continue to work relentlessly alongside our law enforcement partners to ensure the health and safety of beneficiaries and the efficient use of taxpayer dollars."
Fentanyl is at least 50 times more powerful than morphine, and to ensure patient safety, the FDA requires Subsys prescribers, patients, and pharmacies to enroll in and comply with the Transmucosal Immediate Release Fentanyl Risk Evaluation and Mitigation Strategy (TIRF REMS) program. The defendant disregarded the rules imposed by this program, failing to notify his patients of the risks posed by the Schedule II controlled substance prescription.
United States District Court Judge Daniel D. Domenico sentenced Kesten on February 24, 2022.
The Department of Health and Human Services Office of the Inspector General, and the Drug Enforcement Administration conducted the investigation.
Case No. 20-cr-291-DDD
District of Columbia Man Sentenced to 80 Months in Prison for Conspiracy to Distribute Narcotics and Use FirearmsRead the Press Release
WASHINGTON – Niko Culbreth, 29, of Washington D.C. was sentenced today to.80 months in federal prison for his role in an ongoing conspiracy to distribute narcotics and a related conspiracy to possess firearms in furtherance of drug trafficking.
The announcement was made by U.S. Attorney Matthew M. Graves, Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division, and Charlie J. Patterson, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Culbreth is one of more than a dozen individuals arrested as part of a joint FBI/ATF investigation which resulted in the seizure of more than 34 pounds of marijuana, 16 firearms, and more than $270,000 in cash.
Culbreth, who utilized the street nicknames “Cucuz” and “Slick,” pleaded guilty on Nov. 1, 2021, in the U.S. District Court for the District of Columbia, to one count of conspiracy to distribute more than 100 kilograms of marijuana, as well as oxycodone and codeine. As part of his plea agreement, Culbreth admitted to participating in a separate conspiracy to use, carry, and possess firearms and to serving in a leadership role of both conspiracies. Culbreth was sentenced by the Honorable Amy Berman Jackson. Following completion of his prison term, Culbreth will be placed on four years of supervised release.
According to the government’s evidence, beginning in approximately June 2018, and continuing through September 2020, Culbreth and his co-conspirators maintained drug-dealing territory on Trenton Place SE in the Congress Heights neighborhood of Washington, D.C. – a territory they defended by carrying, and discharging, firearms at perceived rivals. As part of his role in the conspiracy, Culbreth not only served as the primary wholesaler of narcotics to his co-conspirators, but he encouraged his co-conspirators to pool their money and buy as many firearms as possible for use in defending their territory. Culbreth further encouraged his co-conspirators to always carry and use firearms in furtherance of the conspiracy.
Culbreth was arrested on Sept. 2, 2020. He has been detained ever since.
In announcing the sentence, U.S. Attorney Graves, Special Agent in Charge Jacobs, and Special Agent in Charge Patterson commended the work of those who investigated the case from the FBI and ATF. They also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Genevieve de Guzman, Kim Hall, and Teesha Tobias. Finally, they commended the work of Assistant U.S. Attorney James B. Nelson, who investigated and prosecuted the case, with help from Assistant U.S. Attorney Kaitlin Vaillancourt and former Assistant United States Attorney Christopher Berridge.
District Man Sentenced to 20 Years in Prison for 2018 Killing of 14-Year-Old in Southeast WashingtonRead the Press Release
WASHINGTON – Anthony Allen, 25, of Washington, D.C., has been sentenced to 20 years in prison for his role in a botched robbery attempt that led to the death of a teenager in Southeast Washington, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Allen pleaded guilty in December 2018, in the Superior Court of the District of Columbia, to charges of second-degree murder while armed and attempted robbery while armed. He was sentenced yesterday by the Honorable Craig Iscoe.
Allen pleaded guilty for his role in committing a botched robbery attempt on Jan. 14, 2018, in the 1700 Block of Minnesota Avenue SE. According to the government’s evidence, Allen was driving a stolen Mercedes along with two other individuals, and the group, armed with a handgun, were driving around searching for victims to rob.
Shortly before 7 p.m., Allen and his accomplices observed 14-year-old Steven Slaughter, who was leaving a 7-Eleven on Good Hope Road SE, accompanied by two of his teenage friends. Allen followed the teenagers to Minnesota Avenue and parked the car facing the victims. One of his accomplices exited the car and brandished the handgun towards Mr. Slaughter while Allen stayed in the car and waited. The accomplice fired multiple shots from the handgun, striking Mr. Slaughter three times, as the other two teenagers ran away. The accomplice returned to the Mercedes, and Allen drove them away from the crime scene. Mr. Slaughter was taken to a hospital, where he died from his wounds.
Allen was arrested on March 5, 2018. He has been in custody since his arrest.
In announcing the sentence, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department (MPD). They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Thomas Saunders; Supervisory Victim/Witness Services Coordinator Katina Adams-Washington; Paralegal Specialist Meridith McGarrity; Victim/Witness Advocate Jennifer Clark, and Investigative Analyst Zachary McMenamin.
Finally, they commended the work of Assistant U.S. Attorney Gilead Light, who prosecuted the case.
Detroit man indicted for methamphetamine and fentanyl distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Cedrick Dion Tyron Griffin, of Detroit, Michigan, was indicted today on a methamphetamine charge, United States Attorney William Ihlenfeld announced.
Griffin, also known as “Tay,” 23, was indicted today on one count of “Possession with Intent to Distribute 50 grams of More of Methamphetamine,” one count of “Possession with Intent to Distribute 40 grams or more of Fentanyl,” one count of “Distribution of Fentanyl,” one count of “Possession with Intent to Distribute 40 grams or more of Fentanyl,” and one count of “Possession with Intent to Distribute Methamphetamine.” Griffin is accused of having more than 50 grams of methamphetamine and more than 40 grams of fentanyl in May and June 2021 in Monongalia County. Authorities also seized more than $27,000 in connection with the case.
Griffin faces at least 10 years and up to life incarceration for the 50 grams or more of methamphetamine charge. He faces at least five years and up to 40 years of incarceration for each of the 40 grams or more of fentanyl counts. Griffin is facing up to 20 years of incarceration for each of the remaining counts. 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 Brandon S. Flower is prosecuting the case on behalf of the government. The Three Rivers Drug Task Force investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Corpus Christi man gets life for exploiting Filipino childrenRead the Press Release
CORPUS CHRISTI, Texas – A 59-year-old local resident has been ordered to serve the rest of his life in federal prison following convictions for several child exploitation offenses including foreign travel to engage in illicit sexual conduct with three minors, announced U.S. Attorney Jennifer B. Lowery.
A federal jury convicted Edward Sanchez July 26, 2021, following a week-long trial and approximately 10 hours of deliberation.
Today, U.S. Nelva Gonzales Ramos handed Sanchez life sentence. Sanchez will also be ordered to register as a sex offender. At the hearing, the court heard evidence of his attempts to solicit and coerce additional schoolmates of the victims as well as testimony from a mental health professional regarding the effects of his actions. In imposing the sentence, Judge Ramos noted Sanchez’s complete lack of remorse for his actions.
At trial, evidence showed Sanchez had traveled to the Philippines where he posed as a benefactor to a school. However, he ultimately sought sexual relationships with students. The jury heard from three minor victims who testified about his activities, which included requests for pornographic images. These were later used to extort the children into meeting for sexual encounters, some unprotected, in the Philippines. Sanchez often provided victims with “morning after pills” to prevent conception.
The jury also heard about and viewed social media messages detailing Sanchez’s attempts to arrange access to the child victim’s family members to another adult male for sex. During their deliberations, the jury poured through thousands of pages of social media messages detailing his exploitation of the victims.
The defense attempted to convince the jury his conduct was lawful by Filipino standards and that United States laws were racist. The jury did not believe those claims, ultimately finding Sanchez had sexually exploited three minor children between March 5, 2016, and Nov. 21, 2018, in the Philippines and while in the United States using social media.
Sanchez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation along with the Corpus Christi Police Department’s Internet Crimes Against Children Task Force.
Assistant U.S. Attorneys Brittany L. Jensen and Dennis Robinson prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Clearfield Woman Pleads Guilty to Conspiring to Distribute MethamphetamineRead the Press Release
JOHNSTOWN, Pa. – A former resident of Clearfield, PA pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney Cindy K. Chung announced today.
Nicole Gaines, 42, of Clearfield, PA, pleaded guilty to Count Two of the Superseding Indictment before Senior United States District Judge Kim R. Gibson.
In connection with the guilty plea, from July 2019 to June 2020, Gaines did conspire to distribute 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine.
Judge Gibson scheduled sentencing for July 11, 2022. The law provides for a minimum sentence of 10 years in prison and a maximum of life in prison, a fine of $10,000,000, or both.
Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pennsylvania State Police conducted the investigation that led to the prosecution of Gaines. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, Homeland Security Investigations, Pennsylvania Office of the Attorney General, Clearfield County District Attorney’s Office, Erie County District Attorney’s Office, Millcreek Police Department, Erie Bureau of Police, and other local law enforcement agencies.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
City of Campbell Maintenance Worker Charged with Possession of Child PornographyRead the Press Release
SAN JOSE – Brian Robert Risso appeared in federal court today to face charges that he possessed child pornography announced United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair.
According to the federal complaint filed on February 18, 2022, Risso, 61, of San Jose, is alleged to have possessed 513 images and 29 videos of child pornography on his personal Apple iMac computer at his residence. Additional documents filed by the government also describe the discovery of approximately 233,000 “manifest keys” on the iMac computer that are used to download files. In documents related to Risso’s detention, the government argued the keys were linked to files with names that suggest the keys allowed for access to videos of illegal child pornographic materials. The complaint charges Risso with one count of possession of child pornography, in violation of 18 U.S.C. §§ 2252(a)(4)(B) and (b)(2).
At the time of his arrest, Risso was employed by the City of Campbell as a maintenance technician at the Campbell Community Center.
Risso was arrested on February 18, 2022, and appeared this afternoon before United States Magistrate Judge Susan van Keulen to address issues related to his detention before trial. Risso currently is released on bond and is next scheduled to appear on March 15, 2022, before Magistrate Judge van Keulen, to address further issues regarding Risso’s release from detention.
A complaint merely alleges that a crime has been committed. Risso is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, he faces a maximum sentence of 20 years in prison and a $250,000 fine. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Special Assistant U.S. Attorney Daniel N. Kassabian is prosecuting the case with the assistance of Susan Kreider and Claudia Hyslop. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Cincinnati political consultant sentenced to 2 years in prison for embezzling $1.4M from Congressional campaignRead the Press Release
CINCINNATI – A political and media consultant was sentenced in U.S. District Court today to 24 months in prison for federal crimes related to the embezzlement of more than $1.4 million from a United States Congressional campaign.
James R. Schwartz II, 42, of Cincinnati, pleaded guilty in March 2021 to wire fraud and falsification of records.
According to court documents, from approximately 2011 through 2019, Schwartz worked as a consultant on behalf of a Congressional campaign through his companies Fountain Square Group LLC and Prime Media LLC. Schwartz also served as the de facto treasurer for the campaign.
Schwartz embezzled funds from the Congressional campaign by writing checks to himself and his companies from the campaign that were for more money than he and his companies had actually earned.
“Simply put, when he ran low on money, Schwartz cut himself a check from campaign funds that he did not earn,” U.S. Attorney Kenneth L. Parker said. “For close to 10 years, Schwartz fraudulently lined his own pockets at the expense of the entity he was hired to help further.”
Schwartz concealed the embezzled funds by misrepresenting the amounts paid to him and his companies in reports to the Federal Election Commission (FEC).
Schwartz created and submitted false receipt and disbursement records to an FEC audit team; Schwartz fabricated bank statements; he falsified e-donation reports and created a fake email from an e-donation vendor to conceal the fake e-donation reports; and he began writing fake checks to match the fictitious bank statements, which were prepared to match the prior false filings with the FEC.
During the FEC audit in summer 2019, Schwartz reported his criminal activity to the United States Attorney’s Office and cooperated with FBI agents.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentence imposed today by U.S. District Judge Timothy S. Black. Assistant United States Attorney Matthew C. Singer is representing the United States in this case.
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Chad Brown Gang Leaders Plead Guilty in Racketeering EnterpriseRead the Press Release
PROVIDENCE, RI – Four members of the Chad Brown gang in Providence have pleaded guilty in federal court to charges that they participated in a racketeering enterprise responsible for gun violence targeting rival gang members and for drug trafficking, announced United States Attorney Zachary A. Cunha and Rhode Island Attorney General Peter F. Neronha.
Delacey Andrade, 28, Kendrick Johnson 30, Keishon Johnson, 32, and Montrel Johnson, 25, each pled guilty to one count of participating in the activities of a Racketeer Influenced Corrupt Organization (RICO).
According to charging documents and information presented to the court, members and associates of the Chad Brown gang have participated in frequent acts of violence against rival East Side gang members dating back to 2013; these acts include drive-by shootings and illegal drug sales. The most recent escalation of hostilities began in 2013 when a Chad Brown member, Jose “Hova” Sanchez, was shot to death on June 22, 2013. In retaliation, two East Side members Ryan “Moondo” Almeida, and Nelson “Vamp” Sanchez, were shot to death in a thirty-day period from December 24, 2013, to January 24, 2014. While the defendants in this case were not charged in federal court with those killings, they mark the beginning of the time-period charged in the RICO Count and provide context for the specific racketeering acts committed by the defendants.
“There is no higher priority for this Office and this Department than combatting violent crime and gun violence in our communities,” said United States Attorney Cunha. “This case demonstrates that we, working hand-in-glove with our local, state and federal law enforcement partners, will bring every resource at our disposal - including the sweep and impact of a RICO prosecution, to bring the sources of violence in our communities to justice. These convictions are a testament to that cooperation- particularly the work of the Providence Police Department, ATF, and the Rhode Island Office of Attorney General, and a victory for public safety.”
“This case is an example of how this Office, working with our partners in law enforcement over the past several years, has focused our resources to target those who are driving violent crime in our state,” said Rhode Island Attorney General Peter F. Neronha. “Using NIBIN technology, which allows for the digital comparison of spent ammunition casings to link firearms to multiple crime scenes, we were able to link a firearm we recovered to six additional shootings, two of which the defendants were charged with. Thanks to this investigation and prosecution, some of the worst perpetrators of violent crime in Providence will now find themselves behind bars– and for a long time. I am particularly grateful for our partnership with the United States Attorney’s Office and the strong work by federal law enforcement and the Providence Police Department in this case.”
“I commend the entire team of patrol officers, investigators and prosecutors for their relentless work regarding this case. This incredible investigation leading to criminal charges and convictions sends a very clear message to individuals who continue to be involved in violent criminal activity within this city that they will be relentlessly pursued by the Providence Police and our law enforcement partners,” said Providence Police Colonel Hugh T. Clements, Jr. “Moving forward we will utilize every available resource necessary in the pursuit of justice and our officers remain involved in many cases surrounding senseless gun violence and retaliation. Investigations of the magnitude are complicated and time consuming but paramount in keeping our neighborhoods safe. We will continue to target this violent criminal activity, as evidenced by the high volume of firearms we continue to seize, with no jurisdictional boundaries.”
“This investigation is an example of ATF’s dedication to working with our state, local and federal partners in identifying, targeting, and investigating violent criminals who are involved in shootings and other violent crimes, and who prey upon innocent citizens and lessen the quality of life in our neighborhoods,” said ATF Special Agent in Charge James M. Ferguson. “Our neighborhoods deserve to exist without fear and intimidation inflicted by all violent drug gangs. We will continue to work with our partners at the Providence Police to impact violent crime that impacts the quality of life in some Providence neighborhoods.”
The RICO count brought in this Project Safe Neighborhoods Providence Police and Bureau of Alcohol, Tobacco, Firearms, and Explosives investigation was structured around four shootings in 2016 and 2017, each of which involved one or more of the defendants:
- Delacey Andrade, Montrel Johnson and Keishon Johnson were charged with the attempted murder of an East Side gang member on October 22, 2016, in a drive-by shooting. The shooting occurred after Montrel Johnson and the East Side gang member had a confrontation inside the Walmart on Silver Spring Street in Providence. According to information provided to the court, video surveillance, witness testimony, cell phone location data, and firearm forensic examinations establish that Andrade, Keishon Johnson and Montrel Johnson were in a gold Nissan Maxima that fired multiple gunshots into the victim’s car, hitting the victim three times and causing life threatening injuries. The shooting occurred on the two-year anniversary of a Chad Brown gang member’s shooting death, and shortly after the murder trial of the East Side gang members charged with his killing.
- Later in the evening of October 22, 2016, video surveillance, cell phone location data, and firearm forensic examinations establish that Andrade and Keishon Johnson were in the same gold Nissan Maxima on Appian Street in Providence when they fired multiple gunshots into a vehicle driven by a woman they mistakenly identified as East Side rivals. Earlier that week, Kendrick Johnson had sent Andrade a text to be on the lookout for a similar vehicle containing East Side members who had driven through Chad Brown.
- On June 19, 2017, Andrade and Kendrick Johnson were involved in a gun battle with East Side gang members outside the Tomato City Pizza restaurant on Douglas Avenue in Providence. East Side gang members shot at the residence of Montrel Johnson in Chad Brown earlier that day; Keishon Johnson sent a text identifying the shooter’s vehicle to Andrade. Andrade and Kendrick Johnson then encountered the vehicle outside Tomato City and both sides exchanged gunfire. Andrade and Kendrick Johnson crashed their vehicle and fled the scene. Investigation identified Andrade’s DNA on the gun found at the scene and Kendrick Johnson’s DNA on the steering wheel of the vehicle.
- On August 19, 2017, Keishon Johnson and two other Chad Brown members were arrested by Providence Police following a drive-by shooting on Hendrick Street in Providence. Expelled shell casings found at the scene as well as two firearms later recovered were ballistically matched. Subsequent investigation established that one of the two firearms, a .40 caliber silver Beretta handgun, was used in the three of the four shootings underlying the RICO count (Walmart, Appian and Hendrick).
- In addition, the evidence established that Kendrick Johnson and Andrade engaged in illegal drug and liquor sales, including distributing cocaine and marijuana.
- The investigation also established Keishon Johnson’s role in a marijuana distribution conspiracy involving Chad Brown members.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This PSN case is being prosecuted jointly in federal court by Assistant United States Attorneys Paul F. Daly, Jr., and John P. McAdams, and Special Assistant United States Attorney James Baum of the Rhode Island Attorney General’s Office.
United States Attorney Cunha recognizes and thanks the Rhode Island Attorney General’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the member agencies of the ATF Task Force; the Providence, Pawtucket and North Providence Police Departments; the Rhode Island State Police; the Rhode Island Department of Corrections; and the United States Marshals Service for their close collaboration, support, and ongoing efforts in the investigation.
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Carlisle Woman Sentenced for Illegal Monetary Transactions Involving Covid-19 Relief FundsRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that on February 28, 2022, Christina McConnell, age 43, of Carlisle, Pennsylvania, was sentenced by United States District Court Judge Christopher C. Conner to two years of probation, including four months of home confinement, for engaging in illegal monetary transactions involving $232,300 in COVID-19 relief funds.
The COVID-19 relief funds at issue were guaranteed by the U.S. Small Business Administration through the Paycheck Protection Program (PPP). The PPP is designed to help small businesses facing financial difficulties during the COVID-19 pandemic. Funded by the March 2020 CARES Act, PPP funds are offered in forgivable loans, provided that certain criteria are met, including use of the funds for employee payroll, mortgage interest, lease, and utilities expenses.
According to United States Attorney John C. Gurganus, Christina McConnell knowingly used criminally derived PPP loan proceeds to purchase personal use vehicles and a residential property in June and July 2020. Christina McConnell’s husband, Keith McConnell, also pled guilty to the underlying PPP wire fraud and related money laundering offenses, and is awaiting sentencing. The Court ordered Christina McConnell to pay $232,200 in restitution for disbursement to the victims, and she paid the full amount prior to sentencing.
The case was investigated by the Internal Revenue Service-Criminal Investigation (IRS-CI). Assistant U.S. Attorney Samuel S. Dalke prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Canton Man Sentenced to 5 years in Prison for Solicitation of an Obscene Visual Depiction of a MinorRead the Press Release
PEORIA, Ill. – A Canton, Illinois, man, Joseph M. Graham, 29, of the 500 block of Baxter Court, was sentenced on February 24, 2022, to 60 months imprisonment, to be followed by 10 years of supervised release, for soliciting an obscene visual depiction of a minor.
U.S. District Judge James E. Shadid heard the case. Graham was indicted in January 2020 and pleaded guilty in October 2021.
During the change-of-plea hearing, the government presented evidence that Graham used an online application to request sexually explicit images of an individual whom he believed to be eight years old. In December 2019, Graham initiated messages with an individual on a mobile application. During messaging conversations that took place over several weeks, Graham believed that he was communicating with the father of an eight-year-old boy. Graham expressed interest in engaging in sex acts with the child and indicated that he wanted to be the child’s boyfriend. Graham requested sexually explicit images in December 2020. Graham also arranged to meet with the child and his father and, in January 2020, traveled to a coffee shop on N. Prospect Road, in Peoria, Illinois, where he was taken into custody by federal agents. Graham agreed to speak with agents and admitted that he was the person conversing with the individual he believed to be the father of an eight-year-old boy.
“The Department of Justice is committed to the safety and well-being of children and will continue to aggressively identify, investigate, and prosecute online sexual predators,” said Assistant U.S. Attorney Ronald L. Hanna.
“The FBI is committed to investigating crimes against children with a sense of urgency to protect every child from the devastating and life-long impact of online victimization.” said FBI Special Agent in Charge David Nanz. “The FBI, in collaboration with our law enforcement partners, will continue to work with unwavering dedication to ensure that criminals like Graham are investigated and arrested.”
The statutory penalties for solicitation of an obscene visual depiction of a minor are five to 20 years imprisonment, a maximum life term of supervised release, and a maximum $250,000 fine.
The case was investigated by the Federal Bureau of Investigation-Springfield Division with assistance from the Peoria Police Department and Illinois State Police. Assistant U.S. Attorneys Hanna and Paul B. Morris represented the government in the prosecution.
The case against Graham was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Camden Man Sentenced to 115 Months in Prison for Conspiring to Distribute Heroin and Crack Cocaine in CamdenRead the Press Release
CAMDEN, N.J. – A Camden man was sentenced today to 115 months in prison for conspiring to distribute heroin and crack cocaine in the City of Camden, U.S. Attorney Philip R. Sellinger announced.
Waldemar Garcia, 36, of Camden, New Jersey, previously pleaded guilty before U.S. District Judge Renee Marie Bumb to an information charging him with conspiracy to distribute 100 grams or more of heroin as well as quantities of crack cocaine. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Nineteen defendants were arrested in late 2018 on drug-trafficking charges based on the FBI’s investigation of a drug-trafficking organization that ran the open-air narcotics trade on the 400-500 block of Pine Street in Camden for several months in 2018. The organization included street-level sellers like Garcia who worked various shifts selling drugs to customers and collecting drug proceeds.
Seventeen defendants have now pleaded guilty before Judge Bumb to drug conspiracy charges. Two defendants are awaiting trial; the charges and allegations against them are merely accusations, and they are presumed innocent unless and until proven guilty.
In addition to the prison term, Judge Bumb sentenced Garcia to five years of supervised release.
U.S. Attorney Sellinger credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire; the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; the Camden County Prosecutor’s Office, under the direction of Camden County Prosecutor Grace C. MacAulay; the Camden County Sherriff’s Department, under the direction of Sheriff Gilbert L. Wilson; the Cherry Hill Police Department, under the direction of Chief Robert Kempf; and the N.J. State Police, under the direction of Colonel Patrick J. Callahan, with the investigation leading to today’s sentencing. She also thanked the Drug Enforcement Administration, the U.S. Marshals Service, and the Department of Homeland Security for their assistance.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorneys Sara Aliabadi and Patrick C. Askin of the U. S. Attorney’s Office Criminal Division in Camden.
CEO of Payment Protection Program Lender MBE Capital Arrested in Connection with Fraudulent Loan and Lender ApplicationsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Thomas Fattorusso, Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), Amaleka McCall-Brathwaite, Special Agent-in-Charge, U.S. Small Business Administration, Office of Inspector General, Eastern Region (“SBA-OIG”), and Stephen Donnelly, Acting Special Agent-in-Charge, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection, Eastern Region (“FRB-OIG”), announced today that RAFAEL MARTINEZ was arrested on multiple fraud charges and aggravated identity theft in connection with loan and lender applications submitted through the Paycheck Protection Program (the “PPP”) administered by the U.S. Small Business Administration (the “SBA”).
MARTINEZ used false representations and documents to fraudulently obtain the approval of the SBA for his company, MBE Capital Partners, LLC (“MBE”), to be a non-bank lender through the PPP. MARTINEZ then used that approval to obtain approximately $932 million in capital to issue PPP loans and earn over approximately $71 million in lender fees. In addition, MARTINEZ engaged in a scheme to obtain a PPP loan for MBE in the amount of approximately $283,764 through false statements regarding the number of employees of MBE and the wages paid to MBE employees and using the forged signature of MBE’s tax preparer. MARTINEZ was arrested yesterday and will be presented today in Manhattan federal court before U.S. Magistrate Judge Katharine H. Parker.
U.S. Attorney Damian Williams said: “As alleged, Rafael Martinez faked his way into building his company MBE Capital Partners into an almost $1 billion PPP lender. Not only did Martinez allegedly lie to a financial institution to obtain almost $300,000 in PPP loan funding for MBE Capital, he then submitted fraudulent financial statements to get the SBA to approve MBE Capital and to obtain over $800 million to issue PPP loans. In doing so, Martinez and his company earned over $70 million in lender fees from the SBA, which among other luxury items, he audaciously spent on a villa in the Dominican Republic, a Ferrari, and private jets. Thanks to the incredible work of our law enforcement partners, our Office will continue to prosecute those who committed fraud through the PPP and other pandemic relief programs.”
IRS-CI Special Agent-in-Charge Thomas Fattorusso said: “American businesses and their employees have been struggling due to an unprecedented global pandemic, and the Paycheck Protection Program was created to serve as a safety net. Martinez is alleged to have fraudulently obtained funds through this program as both a recipient and a lender, and in effect, stole funds from his fellow Americans so he could purchase a New Jersey mansion, a villa abroad, and several luxury vehicles.”
SBA-OIG Special Agent-in-Charge Amaleka McCall-Brathwaite said: “OIG stands firm against fraudsters determined to steal SBA program funds meant to uplift and support the nation’s small businesses during the pandemic. OIG remains committed to rooting out bad actors and protecting the integrity of SBA programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
FRB-OIG Acting Special Agent-in-Charge Stephen Donnelly said: “We are fully committed to bringing to justice wrongdoers who exploit and defraud financial institutions and the government’s response to the COVID-19 pandemic.”
According to the Complaint unsealed in Manhattan federal court:[1]
At all relevant times, MARTINEZ has been the CEO and primary owner of MBE, a New York limited liability company formed in or about March 2015. Republic Group, LLC, a/k/a Republic Group Parts, LLC (“Republic Group”), which is owned and controlled by MARTINEZ, serves as the holding company for MBE and conducts business as MBE. According to MBE’s website, “For over 20 years, MBE Capital Partners has been a leading provider of financing solutions for small and diverse businesses . . . . In 2019, we financed over $1.7 billion in public and private debt and we funded over 35,000 PPP loans worth $800M.”
On or about April 5, 2020, MARTINEZ applied to a financial institution for a government-guaranteed loan for Republic Group, d/b/a MBE through the SBA’s PPP. In connection with the loan application, MARTINEZ represented that MBE had as many as 15 employees and an average monthly payroll of approximately $119,390 in 2019. In fact, however, from in or about April 2018 through in or about April 2020, MBE had at most four employees who had a total average monthly payroll of no more $25,000. In order to support the false representations made by MARTINEZ in the loan application about the number of employees at and the wages paid by MBE, MARTINEZ submitted fraudulent and doctored tax records that contained the forged signature of a tax preparer located in Manhattan, New York (the “Tax Preparer”). Based on the false documentation provided by MARTINEZ, MBE was approved for a PPP loan in the amount of approximately $283,764, which was disbursed to a bank account controlled by MARTINEZ. A majority of the loan proceeds do not appear to have been used for payroll for employees of MBE or other business expenses.
On or about April 9, 2020, within five days of applying for the PPP loan referenced above, MARTINEZ submitted an application to the SBA for MBE to become a non-bank PPP lender. As part of the PPP lender application process, MARTINEZ represented that MBE had originated and serviced over $3.8 billion in business loans or other commercial financial receivables for the three-year period from in or about 2017 through in or about 2019 and submitted fraudulent financial statements that purported to be audited by the Tax Preparer’s firm for the years 2018 and 2019. Based on the false information provided by MARTINEZ to the SBA, MBE was approved as a non-bank lender for PPP loans.
On or about April 27, 2020, MARTINEZ submitted various documents, including the same fraudulent audited financial statements for 2019 provided to the SBA, to a life insurance company (the “Company”) as part of a proposed partnership to fund PPP loans for minority and women-owned small businesses. On or about May 13, 2020, the Company provided MBE with $100 million to fund PPP loans, which MBE in turn used as collateral to borrow additional capital of approximately $832 million through the Payment Protection Program Liquidity Facility (“PPPLF”) with the Federal Reserve.
As a result of the above fraudulent misrepresentations, MARTINEZ, through his company MBE, became an approved PPP lender and issued approximately $823 million in PPP loans to approximately 36,600 businesses. These loans earned MARTINEZ a total of approximately $71.3 million in fees. MARTINEZ spent the proceeds from his criminal conduct on, among other things, the purchase of a villa in the Dominican Republic for over $10 million, a $3.5 mansion located in Franklin Lakes, New Jersey, a chartered jet service, and several luxury vehicles, including a 2018 Porsche 911 Turbo, a 2017 Ferrari 488 Spider, a 2017 Bentley Continental GT, a BMW 750, and a 1962 Mercedes Benz 190.
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MARTINEZ, 56, of Franklin Lakes, New Jersey, was charged with one count of bank fraud, two counts of wire fraud, and one count of making false statements to a bank, each of which carries a maximum sentence of 30 years in prison; one count of making false statements, which carries a maximum sentence of two years in prison; one count of making false statements to the SBA, which carries a maximum sentence of two years in prison; and one count of aggravated identity theft, which carries a mandatory minimum sentence of two years in prison, which must be served consecutively to any other sentence imposed. The maximum potential sentences 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 outstanding investigative work of IRS-CI, SBA-OIG, and FRB-OIG. Mr. Williams also thanked Homeland Security Investigations and U.S. Customs and Border Protection for their assistance in the investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Sagar K. Ravi is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Bucks County Man Sentenced to Nearly Four Years for Trafficking Firearms to St. LuciaRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Thomas Harris Jr., 29, of Croydon, PA, was sentenced to three years and 10 months in prison, and three years of supervised release for multiple firearms trafficking offenses stemming from his scheme to sell almost 40 guns to a buyer on the island of St. Lucia.
In September 2020, the defendant was charged by Indictment with making false statements to a federal firearm licensee, dealing in firearms without a license, delivery of firearms to a common carrier without written notice, and smuggling goods from the United States. Harris purchased approximately 38 firearms in 12 transactions at two Bucks County gun shops between April 2019 and February 2020, and provided a false address as his place of residence on the required federal forms that he completed during each transaction. The defendant then illegally trafficked the guns to St. Lucia, a sovereign island nation in the West Indies, despite his not having a license to deal in firearms nor a license to export.
One of Harris’s packages to St. Lucia was intercepted by federal agents at the warehouse of a local shipping company. Inside, concealed in household items such as packages of diapers, cat litter and laundry detergent, the agents found seven Glock semiautomatic pistols, one Ruger semiautomatic pistol, two AK-47 pattern pistols, two AK-47 pattern rifles, two AR-15 lower receivers, two AR-15 upper receivers, ten high-capacity Glock ammunition magazines, seven additional assorted ammunition magazines, and 815 rounds of ammunition.
“By shipping high-powered firearms to a foreign nation, the defendant displayed a brazen disrespect for our laws regulating and monitoring the sale of weapons,” said U.S. Attorney Williams. “Trafficking in firearms overseas is a serious federal offense, and one for which our Office will hold offenders like Harris accountable.”
“Firearms trafficking is at the forefront of ATF’s mission,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “Harris’ sentencing should send the message to criminals that a blatant disregard of federal firearms laws will be investigated jointly by ATF and our local, state, and federal partners.”
“The FBI continues to work with our law enforcement partners in pursuit of criminals whose actions violate our laws and put the citizenry of our country – or any other – in harm’s way,” said Special Agent in Charge Jacqueline Maguire. “We have a global reach. It doesn’t matter if you are breaking laws and illegally trafficking guns within your state, within this country, or around the world. We will bring you to justice.”
“Illegally exporting firearms from the United States is a serious violation of our nation’s export control laws and often has dire consequences abroad,” said Jonathan Carson, Special Agent in Charge of the U.S. Department of Commerce’s Office of Export Enforcement, New York Field Office. “This case demonstrates the outstanding collaboration between the Office of Export Enforcement and our law enforcement partners to aggressively enforce export violations in the interest of national security in the U.S. and abroad.”
The case was investigated by the U.S. Department of Commerce, Office of Export Enforcement, New York Field Office; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Joseph A. LaBar and U.S. Department of Justice National Security Division Trial Attorney Michael E. Eaton.
Broome County Business Owner Pleads Guilty to Tax FraudRead the Press Release
BINGHAMTON, NEW YORK - Nezir “Nick” Boljevic, 57, of Broome County, New York, waived indictment and pled guilty today in federal court in Binghamton to one felony count of willful failure to pay federal payroll taxes, announced United States Attorney Carla B. Freedman and Thomas Fattorusso, Executive Special Agent in Charge of the Internal Revenue Service-Criminal Investigation Division (IRS-CI), New York Field Office.
In pleading guilty, Boljevic admitted that from 2007 through 2017, while he owned and operated Vestal Diner in Vestal, New York, he failed to make payroll tax payments to the government with respect to his employees, including for Social Security and Medicare taxes. Boljevic withheld the payroll taxes from his employees’ paychecks but did not report the withholdings or turn the money over to the Internal Revenue Service. To avoid IRS collection efforts, Boljevic repeatedly put Vestal Diner in the names of a series of nominee owners with different Employer Identification Numbers for tax purposes, even though Boljevic remained the true owner and operator of Vestal Diner. In total, Boljevic failed to pay approximately $322,516.51 in payroll taxes to the Internal Revenue Service between 2007 and 2017. Boljevic no longer owns or operates Vestal Diner.
Sentencing is scheduled for July 6,2022. If the Court accepts the parties’ plea agreement, the defendant will receive a sentence of 1 year and 1 day in prison and will pay $322,516.51 in restitution to the IRS.
This case is being investigated by Internal Revenue Service-Criminal Investigation Division (IRS-CI), and it is being prosecuted by Assistant U.S. Attorney Michael F. Perry.
Brockton Woman Sentenced for Stealing Veterans Affairs FundsRead the Press Release
BOSTON – A Brockton woman was sentenced today in federal court in Boston for stealing veteran affairs benefits.
Robin Calef, 62, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to one month in prison followed by three years of supervised release. Calef was also ordered to pay restitution in the amount of $102,289 to the U.S. Department of Veterans Affairs (VA). On Nov. 5, 2021, Calef pleaded guilty to one count of theft of public funds.
In December 2006, Calef’s sister, who was receiving monthly benefits from the VA, passed away. Calef failed to inform the VA of her sister’s death, and the VA continued to deposit monthly benefits into a joint bank account held by Calef and her sister. As a result, from Dec. 1, 2006 to Sept. 20, 2017, the VA made approximately 129 benefit deposits into the joint bank account. Bank records revealed that Calef made monthly withdrawals of approximately the exact amount of VA benefit funds deposited into the joint account. In total, over a period of more than 10 years, Calef stole approximately $102,289 in VA funds not intended for her.
United States Attorney Rachael S. Rollins and Christopher Algieri, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Rollins’ Major Crimes Unit prosecuted the case.
Berkeley County man admits to drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Demitre McCoy White, of Martinsburg, West Virginia, has admitted to a drug charge, United States Attorney William Ihlenfeld announced.
White, 40, pleaded guilty today to one count of “Unlawful Use of Communication Device.” White admitted to using a phone to help distribute heroin in December 2020 in Berkeley County.
White faces up to four 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. Attorneys Lara Omps-Botteicher and Timothy D. Helman are prosecuting the case on behalf of the government. The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Avon Man Pleads Guilty to Child Exploitation OffenseRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that MICHAEL FERRO, 36, formerly of Avon, waived his right to be indicted and pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to one count of distribution of child pornography.
According to court documents and statements made in court, on August 18, 2021, Ferro, using the Kik social media application, began chatting in a Kik group with an FBI Online Covert Employee (“OCE”) who was posing as a father of a 12-year-old girl. After Ferro determined that the OCE was engaging in sexual activity with his “daughter,” he sent the OCE a photo depicting the genitals of a child. Ferro then stated that he had more pictures to share, and expressed an interest in meeting the OCE’s daughter to engage in sexual activity. After confirming Ferro’s identity, investigators traveled to Ferro’s Avon residence late in the evening of August 18, informed him of the investigation, and seized his cell phone.
Ferro was arrested on a criminal complaint on September 29, 2021.
Judge Meyer scheduled sentencing for May 24, 2022, at which time Ferro faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years.
Ferro, who was released on bond, was remanded to custody at the conclusion of today’s court proceeding.
This matter has been investigated by the Federal Bureau of Investigation with the assistance of the Avon Police Department. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Anchorage Man Sentenced on Child Pornography ChargesRead the Press Release
ANCHORAGE – An Anchorage man was sentenced to 69 months in prison by U.S. District Judge Joshua M. Kindred for possession and distribution of child pornography.
According to court documents, Shannon Robert Bell, 56, knowingly possessed, accessed and distributed child pornography involving prepubescent minors (minors who have not attained 12 years of age). In his plea agreement, Bell admitted to posting images and videos depicting child sexual exploitation involving children as young as age six approximately 100 times during the past few years as well as being a moderator of a Kik group focused on incest.
The case originated during an investigation by the Kansas City Division of the Federal Bureau of Investigation (FBI) into a private, invitation-only, Kik chat group created by a pedophile. During the course of the investigation, Bell engaged in chats with an undercover FBI agent detailing his long-standing involvement with child pornography. The case was handed over to the FBI’s Anchorage division when the IP address confirmed that Bell lived in Anchorage. Following the execution of a search warrant of Bell’s home, Bell admitted that he had been chatting online for a number of years including using the Kik application on a cellular phone.
Bell was involved with child pornography while working as an onsite clinical therapist treating emotionally troubled youth primarily between the ages of 13 and 17 who were struggling with pornography and sex addiction issues. As part of his sentencing Bell was ordered to serve 10 years of supervised release and pay $5,000 in restitution and a $3,000 fine under the Amy, Vicky, and Andy Child Pornography Victim Assistance Act (AVAA).
“The distribution of child pornography re-victimizes the innocent children who were initially exploited to create the images and videos,” said U.S. Attorney John E. Kuhn, Jr of the District of Alaska. “Mr. Bell’s substantial sentence reflects the serious harm of this crime. I commend the FBI, Anchorage Police Department and our federal prosecutor for their work on this case.”
“At the same time the defendant was acting as a counselor for vulnerable youth, he was also perpetuating the online sexual abuse of children, making his conduct particularly disgraceful,” said Special Agent in Charge Antony Jung of the FBI Anchorage Field Office. “Together with our law enforcement partners, the FBI will continue to root out predators and protect Alaska’s youth from harm.”
The FBI and Anchorage Police Department investigated this case as part of the FBI’s Child Exploitation and Human Trafficking Task Force.
Assistant U.S. Attorney Adam Alexander prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Monday 28 February 2022
Washington Parish Man Sentenced for Violations of the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – CHRISTOPHER HARRIS, age 28, a resident of Bogalusa, Louisiana, was sentenced to sixty (60) months’ imprisonment, four (4) years of supervised release and a $200 mandatory special assessment fee by U.S. Chief District Judge Nannette Jolivette Brown after pleading guilty to two counts of an indictment charging him with conspiracy to distribute and possess with intent to distribute fifty (50) grams or more of a mixture or substance containing a detectable amount of methamphetamine, and distribution of fifty (50) grams or more of a mixture or substance containing a detectable amount of methamphetamine; both in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(B), announced U.S. Attorney Duane A. Evans.
According to court documents, on July 26, 2019, agents with the federal Bureau of Alcohol, Tobacco, Firearms, and Explosives used a confidential source to make a controlled purchase of methamphetamine from HARRIS. The confidential source, under the direction of agents, went to meet HARRIS to purchase the drugs. The source was greeted at the door by Derrick Mark who made a telephone call to HARRIS to inform him that the source was at the residence to purchase the drugs from him. When HARRIS arrived at the residence, he sold the source approximately one hundred six (106) grams of drugs that tested positive for methamphetamine.
This prosecution was part of an extensive investigation by the federal Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Bogalusa Police Department of individuals suspected of trafficking large quantities of methamphetamine and/or firearms in Washington Parish. The prosecution was handled by Assistant United States Attorney André Jones.
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Washington Parish Man Indicted for Being a Felon in Possession of a FirearmRead the Press Release
NEW ORLEANS, LOUISIANA – JAKARI BROWN, a/k/a “Jakari Lemar,” age 23, a resident of Bogalusa, Louisiana, was charged on February 25, 2022, in a one-count indictment by a federal grand jury with being a felon in possession of a firearm in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), announced U.S. Attorney Duane A. Evans.
According to the indictment, on December 27, 2021, BROWN, a convicted felon, illegally possessed a Smith & Wesson Model SW9VE, nine-millimeter pistol. If convicted, BROWN faces up to ten years imprisonment, a fine of up to $250,000, up to 3 years supervised release, and a $100 mandatory special assessment fee.
U.S. Attorney Evans reiterated that the indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Washington Parish Sheriff’s Office and the federal Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution is being handled by Assistant United States Attorney J. Benjamin Myers.
Verona Man Sentenced to 12 Years for Possessing Child PornographyRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that William Heitman, 35, Verona, Wisconsin, pleaded guilty today and was sentenced by U.S. District Judge William M. Conley to 12 years in federal prison for possessing child pornography. This sentence will be followed by 15 years of supervised release. Judge Conley also ordered the defendant to pay $9,000 in restitution to three of the victims depicted in the images Heitman possessed.
In June 2020, Verona police officers found Heitman in a park sleeping in his car. Heitman told officers that he was recently released from state prison after serving a sentence for possessing child pornography. Officers learned that Heitman was on extended supervision for that offense. During a search of Heitman’s car, officers found two SD cards containing well over 1,000 videos of children engaged in sexually explicit conduct. Heitman admitted to downloading the images and admitted to being an administrator for two groups engaged in trading images of child pornography. In his role as administrator, Heitman solicited images of child pornography from individuals who wanted to join the groups.
In sentencing Heitman, Judge Conley was concerned about Heitman’s failure to engage in treatment while in state prison the first time, and that he seemed to have no understanding of the seriousness of the offense. Judge Conley observed that this made Heitman a dangerous person in need of a lengthy prison term. Heitman’s role as an administrator of groups trading child pornography also made him an active part of the plague of child pornography on the internet.
Heitman’s state supervision was revoked in July 2020, in part as a result of the conduct included in the federal offense. Accordingly, Judge Conley imposed the federal sentence to run concurrently with the remainder of the defendant’s four-year state sentence.
The charge against Heitman was the result of an investigation conducted by the Verona Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorneys Julie Pfluger and Laura Przybylinski Finn prosecuted this case.
Ulster County Man Sentenced to 70 Months for Distributing FentanylRead the Press Release
ALBANY, NEW YORK - Timothy Schleede, age 30, of Lake Katrine, New York, was sentenced today to serve 70 months in prison for distributing fentanyl in Ulster County.
The announcement was made by United States Attorney Carla B. Freedman; Acting Special Agent in Charge Timothy Foley of the U.S. Drug Enforcement Administration (DEA), New York Division; Ulster County Sheriff Juan Figueroa, whose office leads the Ulster Regional Gang Enforcement Narcotics Team (URGENT); and Ulster County District Attorney David Clegg.
As part of his guilty plea, Schleede admitted that on August 26, 2020, he distributed a fentanyl mixture in glassine envelopes to another person in a mall parking lot in Ulster, New York. Schleede was arrested later the same day after selling more glassine envelopes containing the same fentanyl mixture in a hotel parking lot in Ulster. Law enforcement searched Schleede’s hotel room and storage locker, and recovered approximately 8,000 additional glassine envelopes, which contained fentanyl and heroin
United States District Judge Mae A. D’Agostino also imposed a 4-year term of supervised release, which will start after Schleede is released from prison
This case was investigated by URGENT and the DEA, with assistance provided by the Ulster County District Attorney’s Office, and was prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
U.S. Attorney Announces Formation of New Public Corruption and Civil Rights Unit, with Renewed Focus on Prosecuting Criminal Civil Rights Violations and Police Excessive Force Cases.Read the Press Release
U.S. Attorney Dawn Ison announced today that she has formed the office’s Public Corruption and Civil Rights Unit. Although the U.S. Attorney’s office has long investigated and prosecuted criminal civil rights cases and corruption matters, U.S. Attorney Ison has formed this unit to emphasize her priority of prosecuting criminal civil rights and police excessive force cases through the unit and the dedication of additional resources.
U.S. Attorney Ison is emphasizing the office’s determination to prosecute these types of cases. For example, just last year, the U.S. Attorney’s Office successfully prosecuted a man who used racial slurs while brutally attacking a group of African American teenagers at a state park in Monroe, Michigan. The office also prosecuted a former Hamtramck police officer in 2021 for using excessive force against a civilian arrestee and violating the arrestee’s civil rights. “While our office is no stranger to criminal civil rights cases, the formation of the unit is a signal to the community of our renewed focus on civil rights cases and recognizes the work that we have already been doing on this front,” said U.S. Attorney Dawn Ison. According to the FBI’s reported Hate Crimes Statistics, 2020 saw a 6.1% increase in hate crime reports. In particular, reported hate crime incidents against African Americans rose 49 percent from 2019 to 2020 and anti-Asian hate crime incidents rose 77% during the same period. “Hate crimes and other bias-related incidents instill fear across entire communities. We want the community to know that we stand ready to use our office’s resources to the ensure that everyone can live without fear of becoming a crime victim because of where they are from, what they look like, how they worship, or whom they love,” added Ison.
The Public Corruption and Civil Rights Unit will partner with local and federal law enforcement to ensure that allegations of criminal civil rights violations are thoroughly and fairly investigated, that acts constituting federal criminal civil rights violations and the use of excessive force by police officers are sufficiently remedied, and the rights of the victims are vindicated. AUSA David Gardey will serve as Chief of the Public Corruption and Civil Rights Unit.
In addition to the Public Corruption and Civil Rights Unit focused on combatting criminal civil rights violations, the U. S. Attorney’s Office also has a Civil Rights Unit housed in the Civil Division that enforces federal civil anti-discrimination statutes through civil lawsuits and court injunctions.
If you believe you are the victim of a hate crime or believe you witnessed a hate crime:
1. Report the crime to your local police.
2. Quickly follow up this report with a tip to the Federal Bureau of Investigation (FBI).
Individuals who believe they have been a victim of discrimination can call the U. S. Attorney’s
Office Civil Rights Hotline at 313.226.9151 or by sending an email to [email protected].Two Pittsburgh-area Men Charged with Robbing PNC Bank in Washington, PARead the Press Release
PITTSBURGH – Two Pittsburgh-area residents have been indicted by a federal grand jury in Pittsburgh on charges of bank robbery, United States Attorney Cindy K. Chung announced today.
The three-count Superseding Indictment named Anthony West, age 28, formerly of McKees Rocks, PA, and Brandin Gardner, age 25, of Pittsburgh’s Beltzhoover neighborhood, as defendants.
According to the Superseding Indictment, on or about September 12, 2021 and continuing to on or about September 16, 2021, Mr. West and Mr. Gardner conspired to commit bank robbery and committed bank robbery of the PNC Bank, located at 319 Washington Road, in Washington, Pennsylvania, 15301.
The law provides for a maximum total sentence of not more than 20 years in prison, a fine, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brian W. Castello is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the Superseding Indictment in this case.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Philadelphia Men Convicted of Running Credit Card Fraud Ring Using 200,000+ Stolen AccountsRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Malan Doumbia, 38, and Souleymane Diarra, 36, both of Philadelphia, PA, were convicted after trial of nine counts including conspiracy to commit wire fraud, access device fraud, aggravated identity theft, and conspiracy to commit money laundering, in connection with a scheme to purchase stolen credit card numbers from the dark web, use the accounts to purchase consumer products, and then re-sell the products for cash.
As part of the scheme, the defendants worked with several associates to purchase large quantities of stolen credit card numbers off black market websites located in Russia, Ukraine, and elsewhere overseas. They then encoded the stolen card numbers onto blank cards here in Philadelphia, and employed a network of runners who used the stolen credit card numbers to buy large quantities of gift cards and other items which could be quickly resold for cash, like Apple products, cigarettes, and diapers. When the United States Secret Service searched the defendants’ homes, agents found numerous computers, tablets, cell phones, re-encoding machines, card readers, and more than 200,000 stolen credit card numbers.
“Identity theft and financial fraud schemes like this one have a devastating and long-lasting impact on the victims, who have no way to prevent or stop the violations” said U.S. Attorney Williams. “ Our Office will continue to do everything we can to ensure that such fraud scams are stopped and punished, whether the fraudsters are located here or abroad.”
“So long as criminals insist on stealing identities and livelihoods, so will the Secret Service continue to identify and stop their despicable operations,” said U.S. Secret Service Philadelphia Special Agent in Charge James Henry. “Our highly trained investigators are uniquely trained and steadfastly dedicated to our mission to ensure a secure national financial environment. The Secret Service, together with all of our critical law enforcement partners at all levels, can and will ensure these criminals are brought forward for justice, no matter the dark corner of the internet in which these offenders think they can hide.”
“The defendants in this case stole money and personally identifiable information from unsuspecting victims, then went to extraordinary lengths to hide their illicit activities from law enforcement scrutiny,” said William S. Walker, the special agent in charge of Homeland Security Investigations, Philadelphia. “As a result of this investigation, they will now be held accountable for their reprehensible crimes. HSI is pleased to have worked with our partners in federal and local law enforcement to bring the offenders in this case to justice.”
The case was investigated by the United States Secret Service, with assistance from the Department of Homeland Security, Homeland Security Investigations, the U.S. Customs and Border Protection, the Swatara Township Police Department, the Lower Salford Township Police Department, the Haverford Township Police Department, the Montgomery Township Police Department, the Deptford Police Department, the Pennsylvania State Police, and is being prosecuted by Assistant United States Attorney Robert J. Livermore.
Two Men Arrested on Federal Firearm ChargesRead the Press Release
BIRMINGHAM, Ala. – A federal indictment has been unsealed after two men were arrested today on firearm charges, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Explosives, and Firearms Special Agent in Charge Mickey French.
According to a two-count indictment filed in U.S. District Court, between April 2021 and September 2021, the defendants purchased multiple handguns from a licensed firearms dealer located in Tuscaloosa County by means of straw-purchase transactions where Davis falsely represented himself to be the buyer of the guns.
Jevonte Kendrell Davis, 28, of Cottondale, is charged with engaging in the business of selling firearms without a license and making a false statement during the purchase of a firearm.
Tyrese Perry, 25, of New Haven, Connecticut, is charged with making a false statement during the purchase of a firearm.
The maximum penalty for giving a false statement during the purchase of a firearm is 10 years in prison.
The maximum penalty for engaging in the business of selling firearms without a license is five years in prison.
These cases are a part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The ATF investigated the case. Assistant U.S. Attorney Brittney Plyler is prosecuting the case.
Two Los Angeles Men Sentenced to Federal Prison for Collecting Ransom Payments for Brutal Kidnap-for-Ransom ConspiracyRead the Press Release
LOS ANGELES – Two Los Angeles men were sentenced today to federal prison terms for collecting ransom payments for a criminal conspiracy in which multiple victims were kidnapped near the United States-Mexico border.
Edgar Adrian Hernandez Lemus, 23, of the Central-Alameda neighborhood in Los Angeles, was sentenced to 78 months in federal prison by United States District Judge John F. Walter. At a separate hearing today, Judge Walter sentenced Junior Almendarez Martinez, 23, of Watts, to 24 months’ imprisonment.
At the conclusion of a three-day jury trial in November 2021, Lemus was found guilty of one count of conspiracy and two counts of receiving money from a ransom demand for the release of a kidnapped person. Almendarez was found guilty of two counts of receiving money from a ransom demand for the release of a kidnapped person.
The kidnapping incidents targeted victims who either were waiting or attempting to cross the border from Mexico into the United States. In each incident, the kidnappers offered to assist in smuggling the victims across the border from Mexico, but instead would hold them for ransom. The kidnappers insisted on ransom payments from the victim’s family members to release the victims.
From March 29 to June 1, 2021, the kidnappers used specific sections at Walmart and other stores in Southern California to meet with the family members to collect the ransom payments. After the payments were made, however, the kidnappers demanded additional money rather than releasing the victims.
Lemus and Almendarez traveled to these stores to pick up ransom payments from the family members of the kidnapped victims. During many of the ransom pickups, the family members of the kidnapped victims remained on the phone with members of the conspiracy who would direct them towards Lemus – who was often on the phone during the ransom pickups. At these stores, Lemus and Almendarez would enter and collect, or attempt to collect, ransom payments from kidnapped victims’ family members. The ransom payments picked up by defendants ranged from $12,000 to $30,000 in cash.
After the ransom pickups, Lemus and Almendarez used Uber to transport the money, before eventually sending money to co-conspirators in Mexico via MoneyGram. The victims later were assaulted, drugged and released.
In a sentencing memorandum, prosecutors argued that Lemus “was a key part of a brutal kidnapping for ransom scheme.
“During this scheme, numerous victims were subjected to horrific abuse,” prosecutors wrote. “The horror of the kidnappings and ransom payment is a trauma that these victims will never forget.”
A co-defendant and fellow ransom collector, Francisco Javier Hernandez Martinez, 21, of the Central-Alameda neighborhood in Los Angeles, pleaded guilty in September 2021 to one count of conspiracy and later was sentenced to 40 months in federal prison.
The FBI investigated this matter. The South Gate Police Department and the Santa Barbara County Sheriff’s Office provided substantial assistance.
Assistant United States Attorneys Jeffrey M. Chemerinsky and Joseph D. Axelrad of the Violent and Organized Crime Section prosecuted this case.
Two Former Coast Guard Employees Plead Guilty in Test-Fixing CaseRead the Press Release
NEW ORLEANS - U.S. Attorney Duane A. Evans announced the guilty pleas of two former U.S. Coast Guard employees in a test score-fixing scheme. U.S. Attorney Evans also announced additional guilty pleas and sentencings of several other defendants in this matter.
On February 24, 2022, DOROTHY SMITH and BEVERLY MCCRARY pleaded guilty before the Honorable Barry W. Ashe to conspiracy to defraud the United States. The maximum penalties for each defendant are five years’ imprisonment, a $250,000 fine, three years of supervised release, and a $100 mandatory special assessment fee. Sentencing for each defendant is scheduled for April 14, 2022.
SMITH and MCCRARY were employed as credentialing specialists at a Coast Guard exam center in Mandeville, Louisiana. SMITH’s position authorized her to enter scores for examinations that merchant mariners were legally required to pass in order to obtain licenses to serve in various positions on vessels. The examinations tested mariners’ knowledge and training to safely operate under the authority of the licenses.
In pleading guilty, SMITH admitted that she accepted bribes to fix exam scores. While SMITH would at times directly interact with credential applicants (for example, by soliciting bribes from them when they came to the exam center), she primarily relied on intermediaries. By using intermediaries, SMITH typically avoided having any contact with the mariners to whom she sold scores. Mariners participating in the scheme would usually not even appear for the examinations. SMITH would create Coast Guard records and data entries to make it appear to the Coast Guard that the mariners had appeared and tested. SMITH would make up passing scores for each of the examination’s various modules and enter these false scores in a Coast Guard computer system. SMITH would then send emails to a Coast Guard office falsely stating that the mariners had passed the examinations and should receive the desired endorsements.
MCCRARY pleaded guilty to being one of SMITH’s intermediaries in the scheme. MCCRARY admitted that she acted as an intermediary while employed at the exam center and that she continued participating in the scheme following her 2015 retirement. MCCRARY would gather money and information about the desired endorsements and then provide the information and a portion of the money to SMITH. MCCRARY almost always required upfront cash payments, but on occasion would accept non-monetary things of value. For example, from one mariner, MCCRARY accepted coolers of fresh caught shrimp in exchange for arranging false test scores. To make it less likely that the scheme would be discovered, MCCRARY instructed mariners: to not contact the exam center regarding their credential applications; to not work on vessels during the days they were supposed to be testing; and to use code words when discussing the scheme on the telephone. MCCRARY recruited some of the mariners while she was on duty at the exam center. For example, when mariners came to the exam center to address matters related to their credential applications, MCCRARY would strike up conversations with them and proceed to solicit them to engage in the scheme. MCCRARY also developed her own network of intermediaries beneath her in the scheme. These intermediaries included ALEXIS BELL, MICHEAL WOOTEN, and SHARRON ROBINSON, who have all pleaded guilty and collectively admitted to having MCCRARY arrange false scores for a total of 31 mariners, including themselves.
SMITH and MCCRARY admitted that they engaged in the scheme from before April 2012 until May 2019 and that they caused more than 50 mariners to receive false scores, with some mariners obtaining false scores on multiple occasions. Each falsely-reported examination resulted in the issuance of an unearned license, with almost all of the licenses being officer-level. Officer-level licenses include the most important positions on vessels, such as master, chief mate, and chief engineer.
Earlier this year, Judge Ashe sentenced two mariners who had pleaded guilty to acting as MCCRARY’s intermediaries: on January 7, 2022, Judge Ashe sentenced MICHEAL WOOTEN to 54 months imprisonment; on February 3, 2022, Judge Ashe sentenced ALEXIS BELL to 42 months imprisonment. WOOTEN and BELL were each also sentenced to one year of supervised release to follow their prison terms.
On January 20, 2022, Judge Ashe sentenced two of the mariners who received fraudulent licenses through scores entered by SMITH. FREDRICK NETTLES was sentenced to six months imprisonment to be followed by one year of supervised release and 100 hours of community service. STINSON PAYNE was sentenced to one year probation and 100 hours of community service.
Seven of the eight defendants charged in a separate indictment pleaded guilty before the Honorable Eldon E. Fallon to obtaining unearned endorsements through false scores entered by SMITH: RANSFORD ACKAH, ODELL GRIGGS, and DEVIN HEBERT pleaded guilty on January 13, 2022; NATHANIEL DOMINICK, RAYNEL LEWIS, and MAURICE PALMER pleaded guilty on February 3, 2022; and ADRIAN MACK pleaded guilty on February 10, 2022. The maximum penalties for each defendant are five years’ imprisonment, a $250,000 fine, three years of supervised release, and a $100 mandatory special assessment fee.
This case is being investigated by the Coast Guard Investigative Service. Assistant U.S. Attorney Chandra Menon is in charge of the prosecution.
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Three Sentenced for Conspiracy to Commit Bank and Wire FraudRead the Press Release
RALEIGH, N.C. – Shawn Franklin, Sabrina Wiggins Branch and Anthony Maryland were each sentenced today to terms of imprisonment for conspiring with one another to commit bank and wire fraud. Franklin, currently residing in Georgia, was sentenced today to 126 months in prison for organizing and leading a multi-year conspiracy to defraud financial institutions and lenders of more than one million dollars. Branch was sentenced to 24 months in prison and Maryland to one day followed by eight months of home detention. On September 30, all three pleaded guilty to the Conspiracy. Franklin also pleaded guilty to Aggravated Identity Theft. All three were ordered to pay restitution and forfeit their fraud proceeds to the United States in the form of money judgements.
According to court documents and other information presented in court, Franklin, age 48, Branch, age 39, and Maryland, age 49, used synthetic identities to apply for credit and financing. Branch and Maryland used their real names coupled with nine-digit-numbers that were not issued to them by the social security administration on credit and loan applications. Franklin also used his real name, variations of his name or his ex-wife’s name coupled with nine-digit-numbers that were never issued or issued to others by the social security administration. To build the creditworthiness, these illegal synthetic identities, often referred to as “CPNs” or “credit privacy numbers,” were added as authorized users to credit cards belonging to other individuals who have positive credit scores.
In addition to using synthetic identities in his name or variations of his name to obtain credit, Franklin used the real names and social security numbers of 10 NC Medicaid recipients to obtain credit cards, consumer loans and vehicle financing. Franklin previously had access to this personal information when he operated Wayne County Day Treatment, a NC Medicaid mental health provider. Franklin also rented an apartment in Raleigh in the name of one of the Medicaid recipients without permission. Maryland resided in the apartment. To rent the apartment and obtain the loans, Franklin provided fictitious NC driver’s licenses in these individuals’ names that bore his image.
Franklin maximized the fraud proceeds on the credit cards by making bogus payments, often by telephone or online. This caused the banks to reinstate the credit limits. Before the credit issuer received notification that the payments were bogus, additional charges were incurred, resulting in significant losses.
Franklin used the cards to pay many personal expenditures for himself and his family, including his stepdaughter’s tuition to Spelman College and associated living expenses, his other adult daughters’ orthodontist bill and his ex-wife’s dental and plastic surgery procedures.
To generate cash, Franklin conspired with Branch to charge more than $600,000 on fraudulently obtained credit cards through Branch’s various merchant accounts associated with her retail store in Wilmington’s Independence Mall. Franklin and Wiggins split the proceeds: 85% to Franklin and 15% to Branch. After the merchant account processor deposited the illegal proceeds into a Branch’s bank account, she withdrew Franklin’s share in cash. Branch kept her withdrawals under $10,000 to avoid the filing of a currency transaction report.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The United States Secret Service and Federal Bureau of Investigation investigated the case and Assistant U.S. Attorney Susan B. Menzer prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:21-cr-00315-D.
Three Defendants Sentenced for Illegal Bitcoin BusinessRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Christopher Allan Boden, a/k/a “Captain,” 46, of Grand Rapids, Daniel Reynold DeJager, a/k/a “Daniel Miester,” and “Danichi,” 35, of Tacoma, Washington, and Leesa Beth Vogt, a/k/a “Lis Bokt,” and “Moose,” 37, also of Grand Rapids, were sentenced by the Honorable Robert J. Jonker, Chief United States District Judge, for the commission of various financial crimes. In October, the three defendants pled guilty. Boden pled guilty to operating an unlicensed money transmitting business, money laundering, and structuring deposits to evade financial institution reporting requirements. DeJager pled guilty to conspiracy to operate an unlicensed money transmitting business and money laundering. Vogt pled guilty to structuring while operating the unlicensed money transmitting business.
The Court sentenced Boden to 30 months in custody and ordered him to pay $75,000 and forfeit bitcoin, among other penalties. DeJager received 10 months in custody for his role in the scheme and was ordered to pay $25,000. Vogt was sentenced to four years of probation and ordered to pay $62,711 to the government. In total, the defendants forfeited and were ordered to pay more than $200,000 in bitcoin and U.S. currency.
According to public records filed in the case, Boden, DeJager, and Vogt operated an unlicensed money transmitting business at The Geek Group, a registered non-profit entity, between March 2017 and December 2018, when federal agents searched the business. After the search, Boden, who was president of The Geek Group, and Vogt, its executive director, decided to close the business. DeJager purchased bitcoin from registered exchanges, often laundered it, and then sent it to Boden to sell. Boden and other staff at The Geek Group, including Vogt, would sell bitcoin to customers. Boden, Vogt, and others then “structured” deposits of the cash proceeds to avoid detection of their operation and to purchase more bitcoin. The defendants sold more than $740,000 in bitcoin. Boden’s customers included drug dealers, and he held himself out to be a money launderer, explaining to prospective customers that “people buy from” him because he sold “clean” bitcoin, not “dirty” bitcoin that could be traced. Boden boasted that he did not collect certain information required to be collected by a federal law that prevents money laundering, commonly known as “know your customer” information.
In connection with sentencing, DeJager explained to the Court that he and Boden started selling bitcoin because of their “anarchy streak”: they were drawn to “[t]he possibility of making a lot of money while deposing government controlled currency with one that was anonymous.” Boden acknowledged to the Court that they “mixed” bitcoin to thwart anti-money-laundering controls put in place by licensed cryptocurrency exchanges: they knew licensed exchanges would not sell them bitcoin if the exchanges discovered Boden’s customers were doing “something . . . illegal with it.”
Boden also solicited an undercover agent to collect a bitcoin debt that had purportedly accrued to $500,000 by using violence if necessary. Boden delivered a dossier with information on the debtor to the agent and said, among other things: “If all I wanted to do was f*** him up, his head in burlap is easy to do. I want my money. I don’t give a f*** about him; I don’t give a f*** about his family. I want my money.” And: “What happens to him, I don’t give a sh** . . . [Y]ou kill him, he ain’t gonna pay me. And, and I don’t need him dead; he’s dumb. . . . How you handle this, this is your world. I care that I get my money back. Beyond that, it’s whatever’s most efficient for you.” Boden told the agent, who he thought was a cocaine dealer, that a drug dealer was his “exact favorite kind of client.” Boden also said, “I want to get your world working on bitcoin.”
“These defendants knew they were breaking the law and ran their illegal money transmitting business anyway,” said U.S. Attorney Birge. “In addition to laundering money for their customers, some of whom were involved in drug trafficking, they set about to defeat the anti-money-laundering controls of licensed financial institutions. My hope is the Court’s sentences will deter others who think cryptocurrency operates in a lawless environment from committing similar financial crimes.”
“This case reflects the vital role HSI plays in disrupting criminals who use cryptocurrency to further their illegal enterprise,” said Homeland Security Investigations Detroit Acting Special Agent in Charge James C. Harris III. “Our special agents, working with federal and local partners, will continue to identify and investigate those who endanger our communities, and provide an avenue for criminals to conduct illegal activity.”
“These sentencings serve as an important reminder that the Internal Revenue Service – Criminal Investigation actively investigates all schemes designed to negatively impact taxpayers, including those in the emerging cryptocurrency market,” said Special Agent in Charge Sarah Kull, IRS Criminal Investigation, Detroit Field Office.
Homeland Security Investigations and IRS Criminal Investigation handled the investigation, with assistance from the Grand Rapids Police Department. Assistant U.S. Attorney Justin M. Presant prosecuted the case.
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Texas Man Sentenced for $1.6 Million Investment Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – A Houston, Texas, man was sentenced in federal court today for defrauding two Kansas City-area brothers who have also been convicted in the investment fraud scheme.
Duc Nguyen, also known as “Doug,” 58, was sentenced by U.S. District Judge Roseann Ketchmark to five years in federal prison without parole. The court also ordered Nguyen to pay $1,641,000 in forfeiture and restitution.
On July 15, 2021, Nguyen pleaded guilty to one count of wire fraud. Nguyen admitted that he engaged in a fraud scheme from April 2018 to August 2019 in which he proposed an opportunity for high net worth individuals to invest in the purchase, refurbishing, and sale of used oil equipment. He told Phillip Hudnall of Lenexa, Kansas, and his brother, Brian Hudnall, of Kansas City, Missouri, that profit from these transactions would be three to five times the amount of the investment. Brian and Phillip Hudnall raised money from investors based upon these representations from Nguyen.
From April 2018 through June 2019, the Hudnall brothers wire transferred $1,641,000 in 29 separate transactions to two separate accounts controlled by Nguyen. Nguyen admitted that he did not use any of the monies for the purchase, refurbishment, and shipment of used oil equipment. The money from those accounts was traced to hundreds of thousands of dollars in transactions at Las Vegas casinos and for Nguyen’s personal expenses.
Although Phillip and Brian Hudnall were victims of Nguyen’s scheme, they made false representations and defrauded their investors of approximately $4.5 million. They pleaded guilty in June 2020, in separate but related cases, to their roles in the investment fraud scheme. Brian Hudnall was sentenced on Oct. 21, 2021, to three years in federal prison without parole and ordered to pay approximately $4.5 million in restitution. Phillip Hudnall is scheduled to be sentenced on April 26, 2022.
Phillip Hudnall told investors that his company, BirdDog Business Group, LLC, had completed two successful transactions – a $244,000 loan and a $490,000 loan, both of which had been repaid with an interest rate of 30 percent. In fact, no prior completed transactions occurred and no monies were received from the sale of any oil equipment including any principal or interest. To support the false claim, Phillip Hudnall requested that Brian Hudnall create documents as proof of the prior successfully completed transactions. Brian Hudnall wrote two checks on the bank account of his business, DonDon LLC, which was closed. Brian Hudnall also created a fraudulent memorandum to support the false claim.
Phillip Hudnall told investors their funds would be used to purchase specific pieces of oil equipment for refurbishment and resale. Persons invested approximately $3.6 million for the purpose of purchasing specific pieces of oil equipment. Phillip Hudnall and another person also obtained a loan from a bank in Pittsburgh, Pennsylvania, for approximately $1.3 million to finance the oil equipment scheme. Most of the money raised from investors, however, was spent on personal expenses.
These cases are being prosecuted by Assistant U.S. Attorney Paul S. Becker. They were investigated by the FBI and the Securities and Exchange Commission.
Tax Centers of America Franchisee Pleads Guilty to Preparing False ReturnsRead the Press Release
PITTSBURGH, PA - A resident of Allegheny County, Pennsylvania, pleaded guilty in federal court to charges of Aiding or Assisting in the Preparation or Filing of False Federal Income Tax Returns, United States Attorney Cindy K. Chung announced today.
John C. Thornton, age 74, of Gibsonia, Pennsylvania, pleaded guilty to two counts before United States District Judge Marilyn J. Horan.
According to information presented to court, Thornton owned and operated Tax Centers of America franchises in Pittsburgh. Between 2012 and 2017, IRS investigators uncovered high pattern of personal income tax returns containing Schedule C forms. Investigators uncovered falsification of Schedule C forms prepared and filed by Thornton and tax preparers at his business.
Judge Horan scheduled sentencing for June 21, 2022. The law provides for a total sentence of not more than three years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigation conducted the investigation that led to the prosecution of Thornton.
Syracuse Man Sentenced to 60 Months for Possessing Firearms and Ammunition as a FelonRead the Press Release
SYRACUSE, NEW YORK – Kamar L. Boatman, 36, of Syracuse was sentenced today to serve 60 months (five years) in federal prison for possessing firearms and ammunition as a convicted felon, announced United States Attorney Carla B. Freedman, John B. DeVito, Special Agent in Charge of the New York Field Division of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Chief Kenton Buckner, Syracuse Police Department. Boatman was also sentenced to a 3-year term of supervised release following his prison sentence.
As part of his previous guilty plea, Boatman admitted that he possessed at his residence in Syracuse the following firearms and ammunition recovered by the Syracuse Police Department-Special Investigations Division (SPD-SID) during the execution of a search warrant on May 31, 2018:
Firearms
One (1) Ruger pistol, model P89DC, caliber 9mm
One (1) Hi Point rifle, model 4595, .45 ACP caliber rifle,
One (1) Smith and Wesson rifle, model M&P15 .556 caliber rifle,
One (1) Defense Procurement Manufacturing Services model A15, Multi Caliber rifle (stolen)
Ammunition
Twenty-six (26) rounds of .223 caliber ammunition
Six (6) rounds of 9mm caliber ammunition
Eight (8) rounds of .45 caliber ammunition
As part of his previous guilty plea, Boatman also admitted that he was previously convicted of possession with intent to distribute cocaine (a felony) in United States District Court for the Northern District of New York, and was sentenced on May 7, 2010, to serve 48 months in federal prison. Today’s sentencing was Boatman’s fifth felony conviction. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the Syracuse Police Department-Special Investigations Division (SPD-SID) and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and was prosecuted by Assistant U.S. Attorney Richard Southwick as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Spencer Man Pleads Guilty to Meth ChargesRead the Press Release
A man who conspired to distribute methamphetamine pled guilty February 18, 2022, in federal court in Sioux City.
Armando Silva Reyes, 55, from Spencer, Iowa, was convicted of one count of conspiracy to distribute methamphetamine and two counts of possession with intent to distribute methamphetamine.
At the plea hearing, Silva Reyes admitted that between January 2020 and February 2021, he and others were involved in a conspiracy to distribute pound-levels of methamphetamine in Northern Iowa. On at least two separate occasions, Silva Reyes distributed more than a quarter pound of pure methamphetamine to individuals cooperating with law enforcement. On February 3, 2021, defendant and others received approximately 3 pounds of methamphetamine utilizing the United States Postal Service at the Spencer Post Office.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Silva Reyes remains in custody of the United States Marshal pending sentencing. On each count, Silva Reyes 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 Patrick T. Greenwood and was investigated by Iowa Division of Narcotics Enforcement, Clay County Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Iowa DCI Laboratory.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4040. Follow us on Twitter @USAO_NDIA.
South Windsor Man Admits Defrauding Immigrant Clients, USCISRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that BABAR KHAN, 43, of South Windsor, pleaded guilty today via videoconference before U.S. Magistrate Judge Robert M. Spector to conspiracy and tax offenses related to a scheme through which individuals seeking immigration services were defrauded.
According to court documents and statements made in court, Khan and his wife, Khatija Khan, operated JLLAS CORP. and EIMAAN LLC, which were created to provide services to clients involved in proceedings with U.S. Citizenship and Immigration Services (“USCIS”). From 2015 to 2020, the Khans recruited clients who sought some form of immigration status, relief or benefit. Many of these clients are aliens residing in the U.S. without legal status and had limited education, a limited ability to understand English, and little to no knowledge of the documents that the Khans were filing with USCIS on their behalf.
Khatija Khan represented herself as an attorney with a background in immigration matters, even though she was not an attorney. The Khans prepared petitions and applications for their clients that contained information that they knew to be false. They also fabricated false documents to support their clients’ applications with USCIS without their clients’ knowledge. They then mailed, or caused to be mailed, these fraudulent applications and documents to USCIS, where they were received and made part of the official Alien file of each respective client.
Many of the Khans’ clients received no relief from USCIS despite paying the Khans significant amounts of money. To generate fees from clients, Khatija Khan filed applications with USCIS even when the submissions lacked merit or a legitimate basis.
Victims identified to date lost a total of $326,212 as a result of this scheme.
In pleading guilty, Babar Khan also admitted that, in the 2016 tax year, he failed to report to the IRS approximately $27,901 in additional taxable income and failed to pay an additional $7,942 in federal taxes that were owed.
Babar Khan and Khatija Khan were arrested on December 19, 2019. After her arrest, Khatija Khan continued to defraud multiple clients.
Babar Khan pleaded guilty to one count of conspiracy to commit mail fraud, and offense that carries a maximum term of imprisonment of 20 years, and one count of making and subscribing a false tax return, an offense that carries a maximum term of imprisonment of three years. He is scheduled to be sentenced by U.S. District Judge Stefan R. Underhill on May 23 in Bridgeport. Khan is released on a $50,000 bond pending sentencing.
On November 19, 2021, Khatija Khan pleaded guilty to one count of conspiracy to commit mail fraud and one count of mail fraud. She awaits sentencing.
This matter is being investigated by Homeland Security Investigations (HSI), and the Internal Revenue Service – Criminal Investigation Division, with assistance from U.S. Citizenship and Immigration Services. This case is being prosecuted by Assistant U.S. Attorney Hal Chen.
Individuals who believe they have been victimized by this scheme contact Ines Cenatiempo, Victim-Witness Coordinator of the U.S. Attorney’s Office, at [email protected] or by phone at 203-821-3757.
South Texas woman admits to trafficking over $2 million in methRead the Press Release
CORPUS CHRISTI, Texas - A 24-year-old Alamo woman has pleaded guilty to possessing with the intent to distribute more than 70 kilograms of highly pure meth, announced U.S. Attorney Jennifer B. Lowery.
On Nov. 1, 2021, Jacqueline Garcia was driving a silver SUV northbound on Highway 281 near Alice. Authorities conducted a traffic stop for an unsafe lane change. At that time, a service canine alerted to the rear of the SUV.
A thorough inspection revealed the vehicle’s gas tank to be abnormally solid. Upon examining the contents, law enforcement discovered nine concealed bundles of crystal meth.
Laboratory analysis later confirmed the substance to be meth at 98 percent purity. The drugs totaled more than 175 pounds with an estimated street value of more than $2 million.
At a hearing today before U.S. Magistrate Judge Jason B. Libby, Garcia admitted she was knowingly transporting the narcotics to Dallas and expected to be paid upon delivery.
U.S. District Judge Nelva Gonzales Ramos will impose sentencing June 8. At that time, Garcia faces a minimum of 10 years and up to life in prison as well as a maximum possible $10 million fine.
Garcia has been and will remain in custody pending sentencing.
The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney John Marck is prosecuting the case.
South Los Angeles Man Pleads Guilty to Arson for Setting Hancock Park Pizzeria Ablaze During May 2020 Civil DisturbancesRead the Press Release
LOS ANGELES – A South Los Angeles man pleaded today to a federal criminal charge for deliberately setting Hancock Park’s Pizzeria Mozza restaurant on fire during the civil disturbances that struck the city in May 2020.
Mario Ernesto Alvarado, 44, pleaded guilty to one count of arson of a commercial building.
According to his plea agreement, during the civil disturbances that occurred in Los Angeles on May 30, 2020, Alvarado walked into a commercial building on Melrose Avenue that housed Pizzeria Mozza and its related business, Mozza2Go. After entering the business, Alvarado sprayed and lit an ignitable liquid. The resulting fire caused more than $300,000 in damage to the business and was extinguished by firefighters.
During the execution of federal search warrants at the time of Alvarado’s arrested in July 2020, law enforcement recovered the hat and t-shirt that Alvarado wore on the night of the arson, as well as a can of lighter fluid located in the back seat of the Ford Focus that he drove to and from the scene of the crime on the evening of May 30, 2020.
United States District Judge R. Gary Klausner has scheduled a June 27 sentencing hearing, at which time Alvarado will face a mandatory minimum sentence of five years in federal prison and a statutory maximum sentence of 20 years in federal prison.
This matter was investigated by the SAFE LA Task Force, which includes members of the FBI, the Los Angeles Police Department, the Los Angeles Fire Department, the Santa Monica Police Department, the Beverly Hills Police Department and the Long Beach Police Department.
Assistant United States Attorneys Bruce K. Riordan and Joseph D. Axelrad of the Violent and Organized Crime Section are prosecuting this case.
Sissonville Man Sentenced for Role in Meth ConspiracyRead the Press Release
HUNTINGTON, W.Va. – A Sissonville man was sentenced today to two years and six months in federal prison for conspiracy to distribute 50 grams or more of methamphetamine.
According to court documents and statements made in court, Frederick Clyde Waite, 49, previously admitted that he participated in the conspiracy with multiple other individuals between July of 2019 and September of 2019. Waite participated in the distribution of methamphetamine that was transported to West Virginia from Akron during the conspiracy. In addition to receiving three pounds methamphetamine on July 25, 2019, Waite admitted that he attempted to acquire additional methamphetamine in the Akron area which was to be transported to West Virginia. After Waite negotiated the purchase of methamphetamine over the telephone, another individual traveled to Ohio to receive the drugs. The individual was stopped returning to West Virginia and troopers with the Ohio State Highway Patrol seized over 2.2 kilograms of methamphetamine from the vehicle.
United States Attorney Will Thompson made the announcement and commended the investigative work of multiple federal and local agencies. This joint investigation was spearheaded by the Federal Bureau of Investigation (FBI). Other agencies which participated and assisted in the investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Violent Crime and Drug Task Force West, the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the Drug Enforcement Administration (DEA) Task Force, the Beckley/Raleigh County Drug and Violent Crime Unit, the United States Marshals Service, the Cabell County Sheriff’s Department, the Charleston Police Department, the Putnam County Sheriff’s Department, the Ohio State Highway Patrol, the Akron, Ohio Police Department, and the Brecksville, Ohio Police Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Joseph F. Adams handled the prosecution..
This prosecution 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.
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. 3:19-cr-000246.
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Silver Spring Man Pleads Guilty to Soliciting and Paying for the Production of Child PornographyRead the Press Release
Greenbelt, Maryland – Patrick Lawrence Wood, age 35, of Silver Spring, Maryland, pleaded guilty today to conspiracy to produce child pornography. Wood admitted that he paid co-conspirators in the Philippines to procure images and videos of children under the age of 12 engaged in sexually explicit conduct requested by Wood.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; and Chief Marcus Jones of the Montgomery County Police Department.
According to his guilty plea, Wood used a social media platform to solicit the production of child pornography and used various digital money transfer services to send payment to co-conspirators in exchange for images and videos depicting children engaged in sexually explicit conduct, as requested by Wood.
As detailed in Wood’s plea agreement, the social media platform sent a Cybertipline Report to the National Center for Missing and Exploited Children, about a user who had requested, and subsequently paid, another user to create sexually explicit images of a prepubescent male and female and send them via the platform’s private message function. Law enforcement identified Patrick Wood as the user and executed a search warrant at Wood’s residence, seizing a laptop computer, desktop computer, two cellular phones and two tablets.
A search of Wood’s social media accounts and the seized electronic devices revealed that Wood communicated with three co-conspirators in the Philippines to procure images and videos of minors engaged in sexual conduct. Those communications occurred over various digital platforms. Wood routinely paid a co-conspirator for access to videos and images of minors engaged in sexually explicit conduct, including via live feeds involving a child engaged in the specific sexual conduct requested by and paid for by Wood. Images and videos of at least five minor male and female victims, all under the age of 12, engaging in sexual conduct were electronically sent during online chat sessions from co-conspirators in the Philippines to Wood, at Wood’s request, and in exchange for payment by Wood. During the four years prior to Wood’s arrest, he paid more than $40,000 to co-conspirators in the Philippines in exchange for the production of child pornography.
In addition, the investigation revealed that sexually explicit images and videos of at least eight minor male victims 14 to 17 years old were electronically sent to Wood at his request from locations in the United States during online chat sessions. At least one of those minor victims was also paid by Wood, in the form of gift cards and new clothes, for producing sexually explicit images requested by Wood.
In addition to the images and videos of child pornography identified on Wood’s social media and cloud-based storage accounts, the forensic examination of the devices seized from Wood’s home revealed over 150 images and five videos of child pornography. The forensic analysis also showed screenshots of a ticket confirmation for Wood to travel to Manila, Philippines for two weeks, but investigators confirmed that Wood did not ultimately travel there and cancelled the ticket.
As stated in his plea agreement, upon his release from prison, Wood will be required to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Wood and the government have agreed that, if the Court accepts the plea agreement, Wood will be sentenced to between 17 years and 23 years in federal prison. U.S. District Judge George J. Hazel has scheduled sentencing for May 23, 2022 at 2:00 p.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Erek L. Barron commended HSI and the Montgomery County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Timothy F. Hagan, who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Roanoke Man Sentenced for Conspiring to Traffic Methamphetamine, Fentanyl, Heroin, and CocaineRead the Press Release
ROANOKE, Va. – A Roanoke man was sentenced last week to 14 years in prison for conspiring with others to traffic dangerous drugs from sources across the country into the Roanoke Valley.
Stephen Cornell Vaughn Jr., 39, pleaded guilty to one count of conspiring to possess with the intent to distribute and to distribute 500 grams or more of methamphetamine, 400 grams or more of fentanyl, 500 grams or more of cocaine, and 100 grams or more of heroin.
Following his arrest, Vaughn admitted that he regularly obtained large quantities of methamphetamine and opioids, including fentanyl, from drug sources in both the Northeastern United States as well as Las Vegas, and then trafficked them into the Roanoke Valley for redistribution. Evidence in the case revealed that Vaughn had transported more than 100 pounds of narcotics into the local Roanoke community during the course of the conspiracy.
The investigation of Vaughn culminated in a traffic stop in Kansas in 2018, leading to his arrest. During the stop, one of Vaughn’s couriers was found to be in possession of 11.5 pounds of methamphetamine, eight pounds of cocaine, and 2.5 pounds of fentanyl, stashed in the trunk of a rental vehicle. Vaughn later acknowledged making and coordinating several such drug runs, paying as much as $130,000 for narcotics in a single transaction. Investigators established that Vaughn often flew to meet his contacts in other states while his couriers transported the purchased narcotics by car.
The Drug Enforcement Administration and Virginia State Police investigated the case with assistance from the region’s High Intensity Drug Trafficking Area (HIDTA) task force, the Roanoke City Police Department, the Roanoke County Police Department, and the City of Salem Police Department.
Assistant U.S. Attorneys Kari Munro and Jonathan Jones prosecuted the case for the United States.
Randolph County man admits to drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – Joshua Dewayne Simmons, of Elkins, West Virginia, has admitted to a drug charge, United States Attorney William Ihlenfeld announced.
Simmons, 29, pleaded guilty today to one count of “Distribution of Methamphetamine—Aiding and Abetting.” Simmons admitted to selling methamphetamine in November 2020 in Randolph County.
Simmons faces up to 20 years of incarceration and fine of up to $1,000,000. 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 Stephen D. Warner is prosecuting the case on behalf of the government. The Mountain Region Drug Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Randolph County man admits to drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – Albert Perry Shreve, III, of Elkins, West Virginia, has admitted to a drug charge, United States Attorney William Ihlenfeld announced.
Shreve, 43, pleaded guilty today to one count of “Distribution of Methamphetamine.” Shreve admitted to selling methamphetamine in Randolph County in April 2021.
Shreve faces up to 20 years of incarceration and a fine of up to $1,000,000. 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 Stephen D. Warner is prosecuting the case on behalf of the government. The Mountain Region Drug Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Quincy, Illinois Man Sentenced to 10 Years in Prison for Possession of Child PornographyRead the Press Release
SPRINGFIELD, Ill. – A Quincy, Illinois, man, Earl Wierschem, 53, of the 600 Block of South 21st Street, was sentenced on February 25, 2022 to 120 months in the Federal Bureau of Prisons, to be followed by a five-year term of supervised release, for possession of child pornography.
At the sentencing hearing, the government presented evidence that in February 2018, law enforcement officials executed a search warrant at Wierschem’s residence in Quincy. During the search, officers seized multiple computer and video related devices, including Wierschem’s cell phone. The phone contained 30 images and one video of child pornography.
Also at the hearing, U.S. District Judge Sue E. Myerscough found that Wierschem had a prior Illinois state conviction for indecent solicitation of a child with the intent to commit aggravated sexual abuse.
Wierschem was indicted in February 2019 and pleaded guilty in April 2021.
The statutory penalties for possession of child pornography are a minimum of 10 years and up to 20 years of imprisonment, a minimum five-year term and up to a life term of supervised release, and not more than a $250,000 fine.
The Quincy Police Department investigated the case. Assistant U.S. Attorney Tim Bass represented the government in the prosecution.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Putnam County Man Sentenced to Seven Years in Prison for Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – A Putnam County man was sentenced today to seven years in federal prison after previously pleading guilty to possession with intent to distribute methamphetamine and heroin.
According to court documents, on November 15, 2020, a trooper with the West Virginia State Police arrested Dennis Wayne Snyder, 31, on an outstanding warrant. The arrest took place at a gas station in Nitro. The trooper searched the vehicle Snyder was in and found approximately 221 grams of methamphetamine and approximately 31 grams of heroin. Snyder also had digital scales, plastic bags, and $2,842 in his possession.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Southern West Virginia TOC-West Task Force, which is comprised of officers with the Cabell County Sheriff’s Department, the Hurricane Police Department and the Marshall University Police Department. The West Virginia State Police, the Drug Enforcement Administration (DEA) and the Violent Crime and Drug Task Force West provide investigative support to the task force. The Ohio Highway Patrol, the Kentucky State Police, and the FBI and DEA in Columbus, Ohio, also assisted in the investigation.
United States District Judge Robert C. Chambers imposed the sentence. Assistant U.S. Attorneys Courtney L. Cremeans and Joseph F. Adams prosecuted the case.
This prosecution 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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00109.
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