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Monday 28 February 2022
Ponte Vedra Beach Man Sentenced to Nearly 8 Years for Knowingly Receiving A Video of the Sexual Abuse of A BabyRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Harrison Holland Frith (40, Ponte Vedra Beach) to 7 years and 11 months in federal prison for receiving a video depicting child sexual abuse. Frith was also ordered to pay $5,000 in restitution to a victim of his crimes, to serve 10 years of supervised release upon his release from prison, and to register as a sex offender. Frith had pleaded guilty on October 27, 2021.
According to court documents, Homeland Security Investigations (HSI) in Jacksonville received information from HSI agents in Fayetteville, Arkansas, that the agents had identified a man in Arkansas who was communicating online with others, including Frith, via Zoom and RingCentral meeting platforms to share child sexual abuse material. The content shared included videos of the Arkansas man sexually abusing a child between the ages of 5 and 6 years old. Frith is seen on a video made by the Arkansas man masturbating while watching a video of the Arkansas man sexually abusing the child. Frith can be heard expressing his desire to sexually abuse the child as well. HSI (Fayetteville) discovered Frith in other social media chatrooms, in which child sexual abuse material was discussed and shared.
On May 18, 2021, HSI (Jacksonville) executed a federal search warrant at Frith’s residence in Ponte Vedra Beach and encountered Frith at home. In an interview with agents, Frith admitted to receiving child sexual abuse videos over the internet and to participating in online video meetings with others during which child sexual abuse videos were played. He also acknowledged requesting videos of the sexual abuse of children as young as 8 years old. Frith told agents they would find files of child sexual abuse material on his laptop computer. He also said that he had viewed such material the night before agents had arrived. A search of Frith’s electronic devices yielded child sexual abuse material on four devices including two laptop computers, an iPad, and a thumb drive. One such file received by Frith in April 2021 showed an adult male removing the diaper from a baby boy and then his sexual assault of the baby.
“A child is re-victimized every time a predator views or shares child pornography,” said HSI Jacksonville Assistant Special Agent in Charge K. Jim Phillips. “HSI Jacksonville, and our partners with Clay County Sheriff’s, St. Johns Sheriff’s Office and HSI Fayetteville, are working diligently to ensure these predators are identified and prosecuted to the fullest extent of the law for these heinous crimes.”
This case was investigated by Homeland Security Investigations, the St. Johns County Sheriff’s Office, and the Clay County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Kelly S. Karase.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Poca Man Sentenced to Prison for Role in $4 Million Warranty Fraud SchemeRead the Press Release
CHARLESTON, W.Va. – Stanley Clark, 68, of Poca, was sentenced to one year and three months in prison for his role in a scheme to defraud Toyota of more than $4 million. He will also be required to pay restitution to Toyota.
According to court documents, Clark was employed as a transfer agent for a company contracted by Toyota to administer an extended warranty extension program where Toyota had offered to repurchase certain trucks for 150% of their value, so long as those trucks were owned by individual Toyota customers. Clark admitted he was a participant in a fraudulent scheme whereby a Kentucky used car dealership, Big Blue Motor Sales, bought trucks at wholesale prices at auction, obtained hundreds of copies of Kentucky and West Virginia residents’ driver’s licenses, fraudulently titled the trucks in the name of those residents, and induced Toyota to repurchase the trucks at 150% of value.
Clark admitted that the execution of the scheme relied on him to coordinate fraudulent truck repurchase meetings, work with a notary to forge the false owners’ signatures on truck repurchase documentation, and mail the fraudulent repurchase documentation that induced Toyota to repurchase the trucks. Clark received a cash payment from Big Blue Motor Sales for every fraudulent transaction. The scheme participants ran 350 trucks through the scheme between 2013 and 2015, causing approximately $4.3 million in losses to Toyota. Clark pleaded guilty to mail fraud in February 2020.
United States District Judge Joseph R. Goodwin imposed the sentence and noted that a term of imprisonment was appropriate in this case because the fraud scheme was not a short term operation and it involved hundreds of crimes completed over and over again.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Postal Inspection Service, the Federal Bureau of Investigation (FBI), the West Virginia State Police, and the West Virginia Office of the Insurance Commissioner.
Former Assistant United States Attorney Stefan Hasselblad and Assistant United States Attorneys Andrew J. Tessman and Steven I. Loew are handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00028.
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Omaha Man Sentenced for Distribution and Receipt of Child PornographyRead the Press Release
United States Attorney Jan Sharp announced that Tyler Welsh, 25, of Omaha, Nebraska, was sentenced today in federal court for distribution and receipt of child pornography. Senior United States District Judge Joseph F. Bataillon sentenced Welsh to 60 months’ imprisonment. There is no parole in the federal prison system. After his release from prison, Welsh will serve 10 years of supervised release and will be required to register as a sex offender. Welsh will also be required to pay $3,000 in restitution.
In November 2018, agents with the FBI Child Exploitation and Human Trafficking Task Force began investigating after receiving a Cyber Tipline Report stating that a Dropbox user was uploading files of child pornography. In August 2019, agents executed a search warrant at Welsh’s residence in Omaha and seized his electronic devices. In addition to files stored on online storage platforms, Welsh had at least 248 images and 8 videos of child pornography saved on his cell phone.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the FBI Child Exploitation and Human Trafficking Task Force.
Oil City Man Sentenced to 16 Years for Receiving Sexual Images of ChildrenRead the Press Release
Erie, Pa. - A resident of Oil City, Pennsylvania, has been sentenced in federal court to 200 months in jail, lifetime supervised release and ordered to pay $15,000 in restitution ($3,000 to five separate identified victims) on his conviction of violating federal laws relating to the sexual exploitation of children, United States Attorney Cindy K. Chung announced today.
United States District Judge Stephanie L. Haines imposed the sentence on Brent Lockwood, 64.
According to information presented to the court, Lockwood received thousands of computer images and videos depicting minors engaging in sexually explicit conduct. Lockwood also did not dispute that there was sufficient evidence to convict him of traveling to the Philippines on numerous occasions for the purpose of engaging in sexual activity with minors. The evidence also revealed that Lockwood had, in fact, engaged in sexual activity with minors during his numerous trips to the Philippines.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), 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.
Prior to imposing sentence, Judge Haines stated that Lockwood showed no remorse for his conduct and that Lockwood’s sentencing submissions attempted to justify his conduct in a way that was not credible.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Chung commended the Department of Homeland Security Investigations for the investigation leading to the successful prosecution of Lockwood.
Ohio man admits to selling cocaine, methamphetamine, and heroinRead the Press Release
WHEELING, WEST VIRGINIA – Kaprice D. Russell, of Steubenville, Ohio, has admitted to drug charges, United States Attorney William Ihlenfeld announced.
Russell, age 34, pleaded guilty today to one count of “Conspiracy to Distribute and Possess with the Intent to Distribute Cocaine Base, Cocaine Hydrochloride, Methamphetamine, and Heroin,” “Aiding and Abetting the Distribution of Cocaine Hydrochloride within 1000 feet of a Protected Location,” one count of “Distribution of Heroin,” and one count of “Distribution of Cocaine Base.” Russell admitted to working with others to sell cocaine base, cocaine hydrochloride, methamphetamine and heroin from June 2019 to August 2021 in Ohio County and elsewhere, including the Southern District of Ohio.
Russell f faces at least one year and up to 40 years of incarceration and a fine of up to $2,000,000 for the aiding and abetting near a protected location charge and faces up to 20 years of incarceration and a fine of up to $1,000,000 for each of the other charges. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, which includes the Drug Enforcement Administration, West Virginia State Police, the Ohio County Sheriff’s Office, and the Wheeling Police Department, investigated. The Belmont County Sheriff’s Office and the St. Clairsville Police Department assisted.
U.S. Magistrate Judge James P. Mazzone presided.
Newark, Delaware Resident Who Received Child Pornography Sentenced to Six Years in PrisonRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced today that a Newark, Delaware resident was sentenced on February 25, 2022, to six years in prison for receiving child pornography over the internet. Chief U.S. District Judge Leonard P. Stark pronounced the sentence.
According to court documents, James Crossan, 24, sought out minors on social media platforms such as Instagram and fostered abusive relationships with them both online and via text message. For multiple years, Crossan engaged in grooming tactics including complimenting victims, offering to send them gifts, expressing a desire to meet in person, discussing sexual acts, and requesting photographs of victims. Crossan used aggressive and manipulative tactics to coerce minors to create and send child pornography to him. Crossan’s exploitation harmed multiple minor victims across the country.
U.S. Attorney Weiss stated, “My office’s message for individuals who chose to prey upon and sexually exploit innocent children has been consistent – our federal law enforcement partners will use every available resource to find you. Protecting innocent children is a priority for my office, and you will be prosecuted to the fullest extent of the law.”
“The FBI and our local, state, and federal partners work tirelessly to investigate and bring to justice individuals engaged in the exploitation and sexual abuse of children,” said Thomas J. Sobocinski, Special Agent in Charge of the FBI Baltimore Field Office. “We encourage parents and caretakers to help us shut the door on predators before they strike by reporting anything suspicious to 1-800-CALL-FBI and visiting FBI.gov for more information about the threat of child predators.”
Assistant U.S. Attorney Carly Hudson prosecuted the case, which was investigated by the FBI Baltimore’s Wilmington Resident Agency.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case Nos. 1:21-cr-53 and 1:21-cr-40.
Newark Woman Pleads Guilty to Wire Fraud and Money Laundering in Connection with CARES Act FraudRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced today that a Newark woman pleaded guilty February 24, 2022, to fraudulently obtaining a Paycheck Protection Program (PPP) loan and illegally spending those loan proceeds. Chief Judge Colm F. Connolly accepted the plea.
According to court documents, between March 30, 2020, and January 24, 2021, Ana Soto, 41, submitted seventeen (17) fraudulent loan applications to the U.S. Small Business Administration (SBA) and its authorized lenders in order to obtain loans through the small business loan programs established by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. These seventeen loan applications were made on behalf of five entities controlled by Soto or her close relations. Each of the loan applications falsely stated the amount of gross revenues, cost of goods sold, and number of employees. In some instances, the loan applications falsely claimed the businesses were in operation at the start of the Coronavirus Pandemic. As a result of these false applications, Soto obtained approximately $246,000, and applied for, but was denied, an additional approximately $500,000 in CARES Act loans.
Soto pleaded guilty to one count of wire fraud and one count of money laundering and faces a maximum penalty of 20 years in prison when sentenced. Chief Judge Connolly will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Weiss stated, “Ms. Soto perpetrated her fraud by taking money from programs established to help the country’s small business owners during the early days of a global pandemic. At a time of great uncertainty and vulnerability, the defendant sought to enrich herself through criminal acts. My office remains committed to protecting the integrity of the CARES Act and all government programs. Prosecuting those who defraud the government and steal from their fellow citizens is a priority, and we will aggressively pursue these actors.”
“CARES Act funds were intended to help people and businesses harmed by the pandemic, not to line the pockets of greedy individuals,” said Thomas J. Sobocinski, Special Agent in Charge of the FBI Baltimore Field Office. “The FBI will continue to work with our partners to root out those who lie and cheat the government out of money to enrich themselves.”
“Ana Soto used deceit and fraud to obtain loans that she was not entitled to receive,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty. “Her guilty plea is a reminder that IRS-CI, along with our partners, remain committed to investigating these types of crimes and holding the offenders accountable.”
This case was investigated by IRS-Criminal Investigation and FBI-Baltimore Division’s Wilmington Resident Office. This case is being prosecuted by Assistant U.S. Attorney Lesley F. Wolf.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 21-cr-49-CFC.
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.
New Orleans Man Pleads to Gun and Drug Distribution ChargesRead the Press Release
NEW ORLEANS, LA – United States Attorney Duane A. Evans announced that QUENTRELL BERTHOLOTTE, age 29, of New Orleans, Louisiana, pleaded guilty as charged on February 24, 2022 to a four count indictment for possession of a firearm by a convicted felon in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), possession with intent to distribute fentanyl in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B), and possession of a firearm in furtherance of a drug trafficking crime in violation of Title 18, United States Code, Section 924(c)(1)(A)(i).
According to court documents, on January 14, 2020 BERTHOLOTTE was seen by the Federal Bureau of Investigation (“FBI”) on video surveillance wielding a 5.56 caliber “ghost gun,” a weapon which does not have a serial number. During a search of his girlfriend’s apartment on April 22, 2021, FBI agents found over forty (40) grams of fentanyl, the “ghost gun,” a Glock Model 27 firearm, and over $30,000.00 in U.S. currency. BERTHOLOTTE had been previously convicted of a drug trafficking offense in Orleans Parish.
BERTHOLOTTE’s sentencing is scheduled for June 23, 2022 before the Honorable Barry W. Ashe in the United States District Court for the Eastern District of Louisiana.
For possession with intent to distribute narcotics, BERTHOLOTTE faces a minimum term of five (5) years up to a maximum term of forty (40) years imprisonment, a fine of up to $5,000,000.00, a minimum of five (5) years of supervised release following any term of imprisonment, and a $100.00 mandatory special assessment fee. For possession of a firearm in furtherance of a drug trafficking crime, he faces a minimum term of five (5) years up to a maximum term of life imprisonment, a fine of up to $250,000, up to five (5) years of supervised release, and a $100.00 mandatory special assessment fee. For possession of a firearm by a convicted felon, he faces up to a maximum of ten (10) years imprisonment, a fine of up to $250,000, up to three (3) years of supervised release, and a $100.00 mandatory special assessment fee.
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.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Charles D. Strauss.
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New Orleans Man Indicted for Gun and Drug Trafficking OffensesRead the Press Release
NEW ORLEANS, LA – United States Attorney Duane A. Evans announced that DESEAN CHRISTY, age 37, of New Orleans, Louisiana, was charged on February 25, 2022 in a three-count indictment by a federal grand jury for violations of the Federal Gun Control Act and Federal Controlled Substances Act. Specifically, in Count One CHRISTY is charged with possession with intent to distribute a controlled substance in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C). In Count Two, he is charged with possessing a firearm in furtherance of a drug trafficking crime in violation of Title 18, United States Code, Section 924(c)(1)(A)(i). Finally, in Count Three, he is charged 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).
According to court documents, CHRISTY was previously convicted of illegally possessing heroin, cocaine, and attempted possession of a firearm by a convicted felon in Orleans Parish Criminal District Court. Due to his criminal history, he is prohibited from having a firearm. He is now charged with possessing a Glock 22, .40 caliber handgun in furtherance of a drug trafficking crime on February 10, 2022. He is further alleged to have possessed with the intent to distribute cocaine base (“crack”).
If convicted of Count 1, CHRISTY faces a maximum of twenty (20) years imprisonment, a fine of up to $1,000,000.00, at least three (3) years of supervised release, and a $100.00 mandatory special assessment fee. If convicted of Count 2, he faces a minimum of five (5) years and up to a maximum of life imprisonment, a fine of up to $250,000, up to five (5) years of supervised release, and a $100.00 mandatory special assessment fee. If convicted of Count 3, he faces a maximum of ten (10) years imprisonment, a fine of up to $250,000, up to three (3) years of supervised release, and a $100.00 mandatory special assessment fee.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the New Orleans Police Department and Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Charles D. Strauss.
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New Castle Woman Had Role in Cocaine Trafficking OrganizationRead the Press Release
PITTSBURGH, PA -- A resident of New Castle, Pennsylvania, pleaded guilty in federal court to charge of violating federal narcotics laws, United States Attorney Cindy K. Chung announced today.
Deia Eggleston, age 46, pleaded guilty to one count before United States District Judge Marilyn J. Horan.
In connection with the guilty plea, the court was advised that Eggleston was prosecuted in connection with a cocaine distribution drug trafficking organization located in New Castle, Pennsylvania, that included, among other individuals, Dondi Searcy, Jr. Eggleston participated in the conspiracy by allowing Searcy and others to use her home to manufacture and store illegal narcotics and firearms. She also assisted Searcy in connection with a kilogram of cocaine that Searcy arranged to have mailed from California to the home next door to Eggleston’s residence. That package was intercepted by law enforcement prior to delivery.
Judge Horan scheduled sentencing for June 21, 2022, at 10:30 a.m. The law provides for a maximum total sentence of 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
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.
Modesto Hells Angels Motorcycle Club Prospect Pleads Guilty to Drug TraffickingRead the Press Release
FRESNO, Calif. — Michael Pack, 35, of Modesto, pleaded guilty today to possession with intent to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Pack, a prospect of the Hells Angels Modesto Motorcycle Club, was part of a drug trafficking conspiracy led by Hells Angels President Randy Picchi. The drug conspiracy involved Picchi’s wife, Tina Picchi, Michael Mize, and Michael Pack. Randy Picchi directed Tina Picchi to regularly deliver drugs to Mize and other individuals in Ceres. Randy Picchi also enlisted Pack to help obtain methamphetamine on at least one occasion. Pack was stopped by law enforcement and found to have 499 grams of methamphetamine in his possession.
This case is the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the IRS-Criminal Investigation, the Modesto Police Department, the Turlock Police Department, the Stanislaus County District Attorney’s Office, the California Department of Corrections and Rehabilitation, and the California Highway Patrol. Assistant U.S. Attorneys Ross Pearson and Laurel Montoya are prosecuting the case.
Pack is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on May 23, 2022. Pack faces a maximum statutory penalty of 40 years in prison, a mandatory minimum sentence of five years in prison, and a $5 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
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.
Mexican National Sentenced to 18 Years for Dealing CocaineRead the Press Release
ERIE, Pa. - A Mexican national has been sentenced in federal court to 18 years in jail on his conviction of violating federal drug laws, United States Attorney Cindy K. Chung announced today.
United States District Judge Stephanie L. Haines imposed the sentence on Adelfo Rodriguez-Mendez, 42.
According to information presented to the court, Rodriguez-Mendez conspired to distribute and distributed cocaine out of what was then known as the East Coast Monster Garage on West 12th Street in Erie, Pennsylvania from August 2015 through June 29, 2017. Assistant United States Attorney Paul S. Sellers, who prosecuted this case on behalf of the government, told the court that Rodriguez-Mendez had “managed a drug trafficking enterprise that was extensive, lengthy and profitable” and admitted testimony and evidence during the sentencing that $939,610.00 in cocaine proceeds were seized as part of the investigation.
Prior to imposing sentence, Judge Haines stated that the evidence had demonstrated that Rodriguez-Mendez was the organizer and leader of a substantial drug distribution network that was responsible for trafficking between five and fifteen kilograms of cocaine into Erie, Pennsylvania during the time charged in the indictment.
United States Attorney Chung commended the Immigration and Customs Enforcement, Homeland Security Investigations, and the Pennsylvania State Police for the investigation leading to the successful prosecution of Rodriguez-Mendez.
Meth dealer heads to prisonRead the Press Release
CORPUS CHRISTI, Texas – A 51-year-old Corpus Christi resident has been ordered to federal prison after selling large amounts of meth from a Corpus Christi residence, announced U.S. Attorney Jennifer B. Lowery.
Franklin Herbert Odell pleaded guilty Oct. 5, 2021, to conspiring to possess with intent to distribute meth.
Today, U.S. District Judge Drew B. Tipton ordered him to serve a 125-month term of imprisonment to be immediately followed by five years of supervised release. In handing down the sentence, the court noted Odell’s multiple drug trafficking convictions.
The investigation began following reports of drug distribution in the area of Winnipeg Drive in Corpus Christi. This ultimately led to the execution of a search warrant at Odell’s residence in February. At that time, authorities discovered him in his bathroom flushing a bag of suspected meth down the toilet. They were able to recover over 300 grams of pure meth from the residence along with other narcotics.
Odell has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Joel Dunn prosecuted the case.
Mercer County Man Sentenced to 2 Years for Conspiring to Distribute Crack CocaineRead the Press Release
PITTSBURGH – Harold Hooten was sentenced to 24 months in prison for conspiring to distribute cocaine base in 2021, United States Attorney Cindy K. Chung announced today.
Hooten, age 44, of Hermitage, Pennsylvania, was sentenced by United States District Judge Cathy Bissoon. Judge Bissoon also ordered Hooten to serve three years of supervised release following his prison sentence.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Federal Bureau of Investigation, the Drug Enforcement Administration, the Pennsylvania Attorney General’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Pennsylvania State Police, the Lawrence County Drug Task Force, the Mercer County Drug Task Force, the New Castle Police Department, the Sharon Police Department, the Hermitage Police Department, and the Farrell Police Department led the investigation in this case.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Lynn Woman Pleads Guilty to Role in Counterfeit Pill Trafficking OrganizationRead the Press Release
BOSTON – A Lynn woman pleaded guilty today in federal court in Boston to her role in a large-scale drug trafficking organization that manufactured and distributed hundreds of thousands of counterfeit Percocet pills containing fentanyl.
Laurie Caruso, 51, pleaded guilty today to one count of conspiracy to manufacture, distribute and possess with intent to distribute fentanyl and other controlled substances. U.S. District Court Judge Nathaniel Gorton scheduled sentencing for June 29, 2022. On June 30, 2021, Laurie Caruso was arrested and charged along with co-conspirators Vincent Caruso, Ernest Johnson and Nicole Benton.
According to the charging documents, Laurie Caruso was a member of a large drug trafficking organization (DTO) operated by her son, Vincent Caruso, a self-admitted Crip gang member, that included Johnson and Benton, among others. The DTO allegedly sold counterfeit prescription pills containing fentanyl – produced using multiple large pill presses capable of generating thousands of pills per hour – to street gangs for further distribution on the North Shore of Massachusetts. A single counterfeit fentanyl pill allegedly retails between $10-$20, thereby generating millions of dollars in retails sales.
Laurie Caruso admitted to being a primary distributor for the DTO, which historically manufactured its own counterfeit fentanyl pills when it was based in Saugus. As described during today’s hearing, after interdiction by law enforcement, the DTO outsourced its manufacturing, and would receive deliveries of large quantities of fentanyl pills manufactured in Rhode Island. Once delivered, the DTO would repackage and distribute those pills for sale locally in communities North of Boston. Laurie Caruso admitted to trafficking over 30 kilograms of fentanyl, sold in the form of hundreds of thousands of counterfeit Percocet pills containing pressed fentanyl. As part of her plea agreement, Laurie Caruso also agreed to forfeit over $100,000 in cash seized from the DTO that were the proceeds of drug trafficking.
On Sept. 30, 2021, Benton pleaded guilty to conspiracy to manufacture, distribute and possess with intent to distribute fentanyl and other controlled substances and to possessing a firearm in furtherance of a drug trafficking conspiracy. Vincent Caruso and Johnson have pleaded not guilty. Vincent Caruso was recently indicted on Jan. 19, 2022, for his role in the conspiracy and faces additional charges.
The charge of conspiracy to manufacture, distribute, and possess with intent to distribute, fentanyl provides for mandatory sentences of five or 10 years, and maximum penalties of up to 40 years or life in prison, depending on drug weight, up to a lifetime of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district judge based on the U.S. Sentencing Guidelines and other statutory factors.
First Assistant United States Attorney Joshua S. Levy: Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Division; and Colonel Christopher Mason, Superintendent of the Massachusetts States Police made the announcement today. Assistance was provided by the Essex, Middlesex and Suffolk County District Attorneys’ Offices; Essex, Middlesex, Suffolk and Hancock (Maine) County Sheriffs’ Departments; U.S. Attorney’s Office for the District of Maine; Maine Drug Enforcement Agency; and the Boston, Cambridge, Chelsea, Danvers, Everett, Lynn, Malden, Salem, Saugus, Somerville, Revere, Bolton (Maine), Bangor (Maine), Portland (Maine) and Westbrook (Maine) Police Departments. Assistant U.S. Attorney Philip A. Mallard of the Organized Crime & Gang Unit is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lynn Man Sentenced for Bank Fraud Conspiracy and Identity TheftRead the Press Release
BOSTON – A Lynn man was sentenced on Friday, Feb. 25, 2022, for his involvement in a scheme to defraud several financial institutions and obtain money from customers using fraudulent identification documents.
Emeka Iloba, 27, was sentenced by U.S. District Court Judge Leo T. Sorokin to 33 months in prison and six years of supervised release. Iloba was also ordered to pay $1,672,677 in restitution. On Aug. 26, 2021, Iloba pleaded guilty to one count of conspiracy to commit bank fraud and one count of aggravated identity theft.
Iloba participated in, and at times directed, a scheme to defraud multiple financial institutions. To carry out the scheme, Iloba and others used fraudulent identification documents, among other means, to withdraw money from customers’ bank accounts in the form of checks, cash and wire transfers. The fraudulently obtained funds were then deposited in other bank accounts opened in the names of fictitious business entities before being withdrawn. This scheme resulted in $1,672,677 in losses between April 2017 and March 2018.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorneys Leslie A. Wright and Christopher J. Markham of Rollins’ Securities, Financial & Cyber Fraud Unit prosecuted the case.
Lake Havasu City Woman Sentenced for Casting Illegal VoteRead the Press Release
PHOENIX, Ariz. – Marcia Johnson, 70, of Lake Havasu City, Arizona, was sentenced today by U.S. District Judge Diane J. Humetewa to one year of supervised probation and fined $1,000. Johnson previously pleaded guilty to one count of Voting More than Once, a felony offense.
“Election integrity has two pillars: ensuring that only eligible voters cast ballots; and insisting that all eligible voters who choose to vote can do so easily and efficiently, with confidence that their vote will be counted,” said United States Attorney Gary Restaino. “Prosecution is a key deterrent on the rare occasions when illegal votes are cast, and this prosecution comes with an important collateral consequence: as a result of her federal felony conviction, Ms. Johnson will lose the right to vote in Arizona until she completes her term of probation.”
Johnson pleaded guilty in December 2021 to casting two ballots in the November 2018 federal election. Johnson voted twice by casting her own mail-in ballot as well as the one that was sent to her father, who died in 2012 and whose name had remained on the Mohave County voter rolls. According to the charging document, mail-in ballots sent to Johnson’s deceased father were returned in seven other federal elections after his 2012 death.
The Federal Bureau of Investigation conducted the investigation in this case. Assistant U.S. Attorney Frank T. Galati, District of Arizona, handled the prosecution.
CASE NUMBER: CR-21-08140-PHX-DJH
RELEASE NUMBER: 2022-019_Johnson# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Knott County Man Sentenced to over 24 Years for Two Armed CarjackingsRead the Press Release
PIKEVILLE, Ky. – Christopher Adam Cole, 34, of Knott County, was sentenced on Friday to 294 months in federal prison, by United States District Judge Robert E. Wier, for charges related to two armed carjackings.
According to his plea agreement, Cole admitted to using a firearm to steal a vehicle from a victim on August 28, 2020. Cole also admitted that, just a few days later, on September 4, 2020, he stole a vehicle from another victim. During the sentencing hearing, the Court found that, on September 4, 2020, the victim had jumped on the hood of the vehicle, in an attempt to keep Cole from stealing the vehicle, and only let go when Cole pointed a gun at him. The victim sustained a broken leg and collarbone in connection with the incident.
Under federal law, Cole must serve 85 percent of his 294-month prison sentence and will be under the supervision of the U.S. Probation Office for five years following his release. Additionally, Cole was also ordered to pay restitution in the amount of $10,120 to the victim of the September 4, 2020 carjacking.
During the September 4, 2020 carjacking, Cole was assisted by Angela “Granny” Vanover, age 44, of Perry County. Vanover pled guilty to aiding and abetting the carjacking, by driving the vehicle while it was being stolen from the victim. Vanover was also sentenced on Friday, to 126 months in federal prison. Vanover was also ordered to pay restitution the victim.
Brandi Hurt, age 28, of Perry County, who pled guilty to assisting Cole during the August 28, 2020 carjacking was previously sentenced to 67 months in federal prison.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; R. Shawn Morrow, Special Agent in Charge of the ATF Louisville Field Division; Joseph Engle, Perry County Sheriff; and Dale Richardson, Knott County Sheriff, jointly announced the sentences.
The investigation was completed by the ATF, Perry County Sheriff’s Office, and Knott County Sheriff’s Office, with assistance by the Kentucky State Police. The United States was represented in the case by Assistant U.S. Attorney Andrew H. Trimble.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Justice Department and Federal Maritime Commission Reaffirm and Strengthen Partnership to Promote Fair Competition in the Shipping IndustryRead the Press Release
The Justice Department and the Federal Maritime Commission (FMC) today reaffirmed their continuing commitment to jointly enforcing competition laws and strengthening their cooperation to promote competition in the ocean freight transportation system.
The FMC is a bipartisan, independent Executive Branch agency whose mission is to ensure a competitive and reliable international ocean transportation supply system that supports the U.S. economy and protects the public from unfair and deceptive practices. The Justice Department is the Executive Branch agency charged with promoting economic competition through enforcing and providing guidance on antitrust laws and principles.
The FMC and the Justice Department possess competition expertise unique to their respective agencies and have successfully worked together in the past. In July 2021, the working relationship between the FMC and the Department was formalized with the signing of a Memorandum of Understanding (MOU). The MOU established a framework for partnership between the FMC and the Justice Department’s Antitrust Division that enhances cooperation in the enforcement of antitrust and competition laws, including the Shipping Act, including by facilitating information exchange between and among attorneys, economists and technical experts. The objectives of the President’s Executive Order on Promoting Competition in the American Economy will be supported by this continued partnership.
Building upon the July 2021 MOU, Attorney General Merrick B. Garland and Chairman Daniel B. Maffei today announced new steps the two agencies will take to strengthen this partnership. The Justice Department will provide the FMC with the support of attorneys and economists from the Antitrust Division for enforcement of violations of the Shipping Act and related laws. The FMC will provide the Antitrust Division with support and maritime industry expertise for Sherman Act and Clayton Act enforcement actions.
“The Justice Department will continue to aggressively enforce our antitrust laws – no matter the industry, no matter the company, and no matter the individual,” said Attorney General Garland. “Competition in the maritime industry is integral to lowering prices, improving quality of service, and strengthening supply chain resilience. Expanding joint enforcement partnerships like the partnership between the FMC and DOJ is one of our most powerful tools for promoting competition. Lawbreakers should know that the Justice Department will provide the Federal Maritime Commission all necessary litigation support as it pursues its mission of promoting competition in ocean shipping.”
“The Attorney General and I share both the priority of a competitive marketplace and a commitment to pursue enforcement actions when necessary,” said Chairman Maffei. “Our agencies have a history of cooperating to the benefit of the American consumer and this new support will help ensure that the working relationship will help both government entities in our shared goal of fair competition.”
Jefferson Parish Man Pleads Guilty to Violations of the Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced today that CHRIS HABISREITINGER, 51, from Jefferson Parish, pled guilty on February 23, 2022 to conspiracy to distribute and possess with the intent to distribute methamphetamine, and possession with the intent to distribute methamphetamine, in violation of Title 21 United States Code, Sections 846, 841(a)(1), and 841(b)(1)(C).
HABISREITINGER took part in a conspiracy to distribute methamphetamine throughout Jefferson Parish and surrounding areas for over a year.
At sentencing, HABISREITINGER faces up to a maximum term of imprisonment of twenty (20) years, a maximum fine of up to $1,000,000.00, at least three (3) years of supervised release following any term of imprisonment., and a $100 mandatory special assessment fee per count, pursuant to Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(C).
This case was investigated by the U.S. Drug Enforcement Administration, Jefferson Parish Sheriff’s Office, Kenner Police Department, Orleans Parish Sheriff’s Office, New Orleans Police Department, and St. John Parish Sheriff’s Office. The prosecution was handled by Assistant United States Attorneys Nolan Paige, André Jones, and Melissa Bücher.
Jamestown Man Sentenced to More Than 27 Years in Prison for Enticement of A MinorRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Richard LaFrance, 35, of Jamestown, NY, who was convicted of enticement of a minor, was sentenced to serve 327 months in prison and lifetime of supervised by U.S. District Judge John L. Sinatra, Jr.
Assistant U.S. Attorney Douglas A. C. Penrose, who handled the case, stated that LaFrance, who was 34 years-old at the time, met a 14-year-old (Minor Victim) in April of 2019, and began communicating with her via email and text message. The communications between LaFrance and the Minor Victim were sexually explicit and included LaFrance requesting that the Minor Victim send him naked pictures. In addition, LaFrance met up with the Minor Victim on at least two occasions and engaged in sexual intercourse.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and the Chautauqua County Sherriff’s Office, under the direction of Sheriff James B. Quattrone.
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Iowa Man Sentenced to Federal Prison for Child Pornography ConvictionsRead the Press Release
A man who illegally possessed child pornography was sentenced February 24, 2022, to 4 years in federal prison.
Johnny E. Gutierrez, 21, from Melvin, Iowa, received the prison term after an April 21, 2021, guilty plea to two counts of possession of child pornography.
Gutierrez admitted that between February 2016 and November 2019, he possessed visual depictions of minors engaged in sexually explicit conduct, including depictions involving a minor who had not attained 12 years of age. Gutierrez further admitted to distributing child pornography to other individuals. As a result of the investigation, officers recovered approximately 51 images and 26 videos of child pornography from Gutierrez’s computer hard drive and approximately 38 images of child pornography from his cell phone.
Gutierrez was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Gutierrez was sentenced to 48 months’ imprisonment and must pay a total of $3,000 in restitution. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system. Gutierrez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was prosecuted by Assistant United States Attorney Mikala Steenholdt and Patrick T. Greenwood and investigated by Homeland Security Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4073. Follow us on Twitter @USAO_NDIA.
Huntington Man Sentenced to Prison for Illegal Possession of FirearmsRead the Press Release
HUNTINGTON, W.Va. – A Huntington man was sentenced today to one year and three months in federal prison for prohibited possession of firearms by a convicted felon.
According to court documents and statements made during the hearing, Kevlin Jerrod Jackson, 41, previously admitted that on May 12, 2021, law enforcement officers executed a search warrant at his residence located on 7th Street in Huntington. Jackson, who was present just prior to the search, was arrested after investigators seized a .45 caliber pistol and a 9mm pistol from his residence. Jackson later admitted that he possessed the firearms, that he was a convicted felon, and that he used another individual to purchase the firearms on his behalf. Jackson was convicted of distributing cocaine in 2011 in the United States District Court for the Southern District of West Virginia and was prohibited from possessing firearms by virtue of his conviction.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Huntington Police Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Joseph F. Adams handled the prosecution.
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-00091.
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Huntington Man Sentenced to Four Years in Prison for Gun CrimeRead the Press Release
HUNTINGTON, W.Va. – Franklin Delano Chafin, 32, of Huntington, was sentenced today to four years in federal prison for being a felon in possession of a firearm.
According to court documents and statements made in court, on May 18, 2019, a law enforcement officer responded to a reported drug complaint at a residence on 23rd Street in Huntington. Upon leaving the residence, the officer came across Chafin who had been riding a bicycle and wearing a backpack. The officer and Chafin spoke, at which time the defendant refused to keep his hand out of his pocket. Chafin then admitted that he had needles on him that he wasn’t supposed to have because he was on probation. Chafin further admitted that there was a gun in his backpack. The officer searched the backpack and recovered a loaded .357 Magnum Ruger revolver. Chafin is prohibited from possessing a firearm due to his 2009 felony convictions for robbery in the 1st degree in Wayne County Circuit Court and burglary in Cabell County Circuit Court.
United States Attorney Will Thompson made the announcement and commended the investigative efforts of the Huntington Police Department and the Huntington Violent Crime and Drug Task Force.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Ryan A. Keefe handled the prosecution.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:19-cr-00200.
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Huntington Man Pleads Guilty to Distributing FentanylRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pleaded guilty today to distribution of fentanyl.
According to court documents and statements made during the hearing, Parrish Wayne Spurlock, 54, sold a confidential informant 0.8 grams of suspected fentanyl on May 11, 2021. The drug transaction took place behind Spurlock’s Huntington residence on North High Street. Testing by the West Virginia State Police Lab confirmed the substance was fentanyl. Spurlock admitted to law enforcement officers that he had sold significant amounts of methamphetamine and heroin over an approximate one year period.
Spurlock faces up to 20 years in prison when he is sentenced on June 6, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Huntington Violent Crime and Drug Task Force.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Ryan A. Keefe is handling the prosecution.
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-00250.
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Hollywood Woman and TV Actor Charged with Participating in Home-Delivery Drug Trafficking Ring that Led to Fatal Fentanyl OverdoseRead the Press Release
LOS ANGELES – A Koreatown man is scheduled to be arraigned this afternoon after being arrested Saturday on federal charges alleging he worked with a Hollywood woman who ran a drug-delivery operation that in one incident sold counterfeit oxycodone pills containing fentanyl that resulted in a fatal opioid overdose.
Mucktarr Kather Sei, 36, whose stage name is Kather Sei, was charged in a federal grand jury indictment returned February 24. The indictment alleges that Sei delivered fentanyl-laced pills that led to the death of a Beverly Hills man in late 2020.
The second defendant in this case who allegedly orchestrated the drug-delivery service – Mirela Todorova, also known as “Mimi,” 33, of Hollywood – is currently being held without bond after being charged last year for possession with intent to distribute cocaine and MDMA (commonly called ecstasy). Todorova – who holds United States, Bulgarian, and Canadian citizenship – also is scheduled to appear in court this afternoon for a status conference in her case.
Todorova and Sei are charged with one count of conspiracy to distribute and possess with intent to distribute controlled substances resulting in death, and one count of distribution of fentanyl resulting in death. The four-count superseding indictment filed last week also charges Todorova with the two previously alleged drug counts stemming from the seizure of cocaine and MDMA at her residence in March 2021.
According to the indictment, Todorova provided cellphones and narcotics – including counterfeit oxycodone pills that contained fentanyl – to Sei and other drivers to facilitate the delivery of drugs to customers across Los Angeles County and elsewhere. Todorova also delivered drugs herself and gave Sei keys to her Hollywood apartment so Sei could access drugs when Todorova visited Mexico, where she continued to manage her drug operation while tending to her pet jaguar, “Princess.”
On November 15 and 16, 2020, after a 37-year-old man placed orders for oxycodone pills to Todorova’s phone number, Sei allegedly delivered pills laced with fentanyl that caused the man’s fatal overdose in his Beverly Hills home. As part of that transaction, Sei called the man from a phone that Todorova provided to facilitate drug sales, the indictment alleges.
Before and after the fatal overdose, other drug customers raised concerns about the authenticity and safety of the oxycodone pills that Todorova and Sei allegedly distributed. Several weeks before the death of the drug customer in Beverly Hills, according to the indictment, another customer texted Todorova, “Yo mimi the oxys are dirty.”
To facilitate drug payments, Todorova gave Sei and her other drug delivery drivers her electronic payment usernames such as “$clubmimi,” “@clubmimi,” “@mimiclub,” and [email protected].
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The charges of conspiracy to distribute drugs and drug distribution resulting in death carry a mandatory minimum sentence of 20 years in federal prison and a maximum sentence of life imprisonment.
Assistant United States Attorneys Patrick Castañeda and Jason C. Pang of the International Narcotics, Money Laundering, and Racketeering Section are prosecuting this case.
This case is the result of an investigation by the Los Angeles Police Department and the Drug Enforcement Administration’s Overdose Justice Task Force, which was created to address opioid-related deaths in the greater Los Angeles area, most of which are caused by the synthetic opioid fentanyl. Under the Overdose Justice program for the DEA’s Los Angeles Field Division, DEA agents collaborate with local law enforcement to analyze evidence to determine if there are circumstances that might lead to a federal criminal prosecution, and, if so, proactively target the drug trafficker.
Grand Jury Indicts New York Resident in Alleged Grandparent ScamRead the Press Release
PROVIDENCE, R.I. – A Jamaica, NY, resident who allegedly took up temporary residences in New Haven, CT, and Brookline, MA, where he allegedly retrieved packages containing cash sent by individuals victimized by grandparent scams in several states, including Rhode Island, has been indicted by a federal grand jury in Rhode Island on fraud and aggravated identity theft charges, announced United States Attorney Zachary A. Cunha.
The indictment charges Jean-Richard Audate, 35, with conspiracy to commit mail fraud, three counts of mail fraud, and aggravated identity theft.
It is alleged in the indictment that Audate and others participated in a conspiracy to defraud elderly victims by posing on the telephone as their grandchild or other family member, or an attorney representing a family member. The caller would convince victims that their family member had been arrested or incarcerated in another state or, was in financial and legal distress; and that cash payments were urgently needed to pay legal fees or related costs. Victims were instructed to send cash payments via FedEx or UPS to addresses provide by the conspirators.
According to information presented to the court, beginning in January 2021, the New Haven Police Department began to receive reports from several out-of-state police departments, including departments in Rhode Island, that elderly residents had been defrauded of large amounts of money through a grandparent scam. The victims were instructed to send cash payments to addresses in New Haven. New Haven Police determined that many of the addresses were in close proximity to one another, including the address of an Airbnb allegedly utilized by Audate. It is alleged that Audate visited many of the addresses and retrieved the packages, many of which New Haven Police and the FBI determined allegedly contained between as $7,900 and $150,000 in cash.
Audate was arraigned in U.S. District Court in Providence on February 24, 2022, and released on $10,000 unsecured bond.
A federal criminal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney William J. Ferland.
United States Attorney Cunha thanks the Lincoln, RI, and Brookline, MA, Police Departments for their assistance in the investigation.
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Fort Wayne Man Sentenced to 120 Months in PrisonRead the Press Release
FORT WAYNE – Kenneth A. Hale, 30 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Judge Holly A. Brady after pleading guilty to two counts of being a convicted felon in possession of a firearm and possession of methamphetamine, announced United States Attorney Clifford D. Johnson.
Hale was sentenced to 120 months in prison to be followed by 2 years of supervised release.
According to documents in the case, Hale encountered police on two separate incidents. In April 2021, a 911 call was placed regarding a domestic dispute. When officers arrived, Hale ran and resisted law enforcement when a firearm fell from his waist. Hale was arrested and charged in State Court, posted bond and was released. Thereafter, in July 2021, Hale was observed chasing a SUV and shooting at it. At the time of his state arrest on this second incident, a firearm and methamphetamine were recovered from his vehicle. Hale was prohibited from possessing a firearm due to a 2014 felony conviction for Domestic Battery and a 2011 felony Aiding Attempted Burglary conviction.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with the assistance of the Fort Wayne Police Department and the New Haven Police Department. The case was prosecuted by Assistant United States Attorney Stacey R. Speith.
This case was 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.
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Fort Dodge Man to Federal Prison for Illegal Possession of a Stolen FirearmRead the Press Release
A man who illegally possessed a firearm was sentenced February 25, 2022, to more than 3 years in federal prison.
Stephen Bryant, 52, from Fort Dodge, Iowa, received the prison term after an October 8, 2021, guilty plea to prohibited person in possession of a firearm. Bryant was previously convicted of manufacture of methamphetamine in Marshall County, Mississippi in 2003, and manufacture/delivery of a controlled substance in Sioux County, Iowa, on April 18, 2016.
At the plea hearing, Bryant admitted he was previously convicted of a felony and was a drug user which prohibit him from possessing firearms. Evidence showed that on May 8, 2021, law enforcement conducted a traffic stop on a vehicle Bryant was driving. Due to suspicious behavior, law enforcement deployed a K-9 on the exterior of the vehicle which indicated to the presence of controlled substances. Officers seized a handgun, which was determined to be stolen, and a magazine located underneath the driver seat.
Bryant was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Bryant was sentenced to 41 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system. Bryant is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was prosecuted by Assistant United States Attorney Patrick T. Greenwood and investigated by Spencer Police Department, Clay County Sheriff’s Office, and Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4045. Follow us on Twitter @USAO_NDIA.
Former Springfield Resident Pleads Guilty to Use of Interstate Facilities to Attempt to Transmit Information about a MinorRead the Press Release
SPRINGFIELD, Ill. –Chenmin Xie, 25, formerly of the 500 block of West Herndon Street in Springfield, Illinois, pleaded guilty on February 22, 2022 to the charge of knowingly using a facility and means of interstate commerce – the Internet and a cellular telephone – with the intent to transmit the name and address of another individual who had not attained the age of sixteen and doing so with the intent to attempt to entice, encourage, offer, and solicit that person to engage in sexual activity.
At the change-of-plea hearing before U.S. Magistrate Judge Thomas Schanzle-Haskins, Xie admitted that on August 29, 2020, he used a cellular phone to converse with a boy he believed was fifteen years old. During the conversation, they agreed to meet for sexual intercourse at the minor’s residence. Xie then requested and received the child’s address.
Since being arrested on August 29, 2020, Xie has remained in the custody of the United States Marshals. His sentencing hearing is scheduled for June 24, 2022, at the U.S. Courthouse in Springfield.
Xie faces statutory penalties of not more than five years’ imprisonment, not more than a $250,000 fine, not more than three years of supervised release, a $100 mandatory special assessment, and a $5,000 special assessment unless deemed indigent.
The charges were the result of investigation by the Federal Bureau of Investigation with the assistance of the Sangamon County Sheriff’s Office; U.S. Immigration and Customs Enforcement Homeland Security Investigations; the Springfield Police Department; and the Illinois State Police. Assistant U.S. Attorney Tanner Jacobs is representing 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.
Former Rogers Company Owner and Former CEO Charged with Workers’ Comp Fraud/Kickback Conspiracy, Other CrimesRead the Press Release
FORT SMITH - Both the former owner of a Rogers-based medical supply and billing company and its former chief executive officer have been indicted by a federal grand jury for their roles in three separate conspiracies to defraud the U.S. government and private workers’ compensation insurers: a billing and kickback fraud scheme with multiple physicians and medical clinics, and separate frauds with two Louisiana physicians to ship medications to them from Arkansas and distribute those medications from their clinics in violation of Louisiana laws. Additionally, the former company owner was charged with wire fraud for falsifying emails he provided in a civil lawsuit involving his sale of the company.
A federal grand jury in Fort Smith returned a 12-count indictment, charging Hunter Matthew Burroughs, 42, and Stephen Keith Andrews, 48, each with one count of conspiracy to commit health care fraud, two counts of conspiracy to commit wire fraud, and eight counts of wire fraud. Additionally, the indictment charges Burroughs in another wire fraud count.
According to the indictment, Burroughs, who in 2011 founded the Rogers company, and Andrews, who served as the company’s chief executive officer, defrauded both federal and private workers’ compensation insurers in schemes that ran until 2017. The basic premise of the health care fraud scheme was that Burroughs, Andrews, and other individuals associated with the Rogers company recruited physicians to dispense pain creams and patches to their workers’ compensation patients by offering them a split of the profits collected from successfully billing insurers, typically 50 percent. One such physician was Robert Dale Bernauer, Sr., who ran a clinic in Lake Charles, La. Bernauer pleaded guilty to his role in the same conspiracy on July 30, 2021.
After signing contracts with physicians, the indictment alleges, Burroughs and Andrews caused the Rogers company to supply them with pain creams and patches, and to act as the billing agent for the physicians, handling all of the paperwork and submitting fraudulent claims to both the U.S. Department of Labor, Office of Workers’ Compensation Programs, which covers all federal employees, and to private insurers as well. The company billed insurers at markups of anywhere from 15 to 20 times what the medications actually cost, and then paid the physicians unlawful kickbacks on amounts collected. The company’s former billing director, Amanda Dawn Rains, pleaded guilty to her role in the same conspiracy on October 6, 2021.
Additionally, the indictment alleges, Burroughs and Andrews conspired separately with Bernauer and with another Louisiana physician to have the Rogers company ship medications to the doctors, and bill insurers for their prescriptions, despite knowing neither physician had the required Louisiana license to dispense medications from his clinic.
Finally, the indictment charges Burroughs in a separate count with attempting to defraud a Florida court and the Florida corporation to which he sold the medical supply and billing company. It alleges Burroughs falsified five emails he provided as discovery in a civil lawsuit he had filed against the Florida company, and then testified falsely about the emails in a sworn deposition.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The case is being investigated by the Department of Defense, Defense Criminal Investigative Service, the Department of Labor Office of Inspector General, the Department of Veterans Affairs Office of Inspector General, the U.S. Postal Service Office of Inspector General, with the assistance of the Louisiana Department of Justice, the Louisiana State Board of Medical Examiners, and the Louisiana Board of Pharmacy.
Assistant U.S. Attorneys Steven Mohlhenrich and Hunter Bridges are prosecuting the case for the United States.
Former Payroll Manager of Home Healthcare Company Pleads Guilty to Federal Tax OffenseRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that INNIS FREDERICK, 61, of Saint Cloud, Florida, pleaded guilty today via videoconference before U.S. District Judge Victor A. Bolden to a tax offense, which stemmed from his employment at a Stratford-based home healthcare company.
According to court documents and statements made in court, Frederick worked as the payroll manager for Equinox Home Care, LLC (“ECH”), a home healthcare company based in Stratford that was originally established as a partnership between Frederick’s sister, Theresa Foreman, and another individual. In September 2012, the partnership ended, and, by court order, Foreman was obligated to make payments to her partner for the purchase of the partner’s interest in EHC. Between approximately 2012 and 2016, Frederick assisted Foreman by processing payroll that caused checks to be issued to “ghost employees,” who did not actually work for ECH. The money paid to the ghost employees was actually paid to Foreman, who did not report the hundreds of thousands of dollars of income on her tax returns. By submitting false payroll data, Frederick also caused false Forms W-2 and W-3 to be submitted to the Internal Revenue Service.
Frederick pleaded guilty to one count of conspiracy to defraud the United States and impede and impair the IRS, an offense that carries a maximum term of imprisonment of five years.
Frederick has agreed that the tax loss attributable to him as a result of his involvement in this scheme is approximately $248,827.
Frederick is released on a $20,000 bond pending sentencing, which is not scheduled.
Foreman was previously charged and convicted in relation to this scheme, and other conduct. She has been ordered to pay more than $600,000 in restitution to the IRS.
Former Chief Financial Officer of the home healthcare company, Pamela Smith, also was charged and convicted in a related case.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division. This case is being prosecuted by Assistant U.S. Attorneys Jennifer R. Laraia and Peter S. Jongbloed.
Florida Woman Pleads Guilty to Role in Wire Fraud Conspiracy Involving Panamanian Boiler RoomsRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Tracy Lee Jedlicki (55, Delray Beach) has pleaded guilty to wire fraud conspiracy for her role in the operation of international boiler rooms which defrauded victims via the sale of worthless investments. Jedlicki faces a maximum penalty of five years in federal prison. A sentencing date has not been set.
According to the plea agreement, Jedlicki and her co-conspirators operated international boiler rooms in Panama and elsewhere which used high-pressure sales techniques to defraud individuals who believed they were investing substantial amounts of money in regulated financial products or markets, such as options in commodities and stocks. The majority of the victims targeted by these boiler rooms were located in Canada, the United Kingdom, Australia, and New Zealand.
Jedlicki and her co-conspirators laundered the fraud proceeds generated by the boiler rooms through several money laundering rings to overseas accounts; the launderers received a percentage of the funds they had moved. Jedlicki's duties included, among other tasks, arranging travel for boiler room workers to the boiler room locations, calling victims while posing as an employee of a fake investment firm to set up loading calls for co-conspirators operating the boiler rooms, serving as a liaison between the boiler rooms and a money laundering organization, and reconciling payments between the boiler rooms and the money laundering organization. Jedlicki received a 2% referral fee for referring victims’ funds to a money laundering ring and used the funds to perpetuate the conspiracy and for her own personal enrichment. Jedlicki and her co-conspirators wired or caused to be wired victims’ funds in the approximate amount of $3,244,500 to money laundering accounts in furtherance of the wire fraud conspiracy.
This case was investigated by Homeland Security Investigations and the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorneys David W.A. Chee and Craig Gestring.
Federal Court Enters Preliminary Injunction and Shuts Down Brooklyn Tax Preparers Until Further NoticeRead the Press Release
On Feb. 26, a federal court in the Eastern District of New York issued a preliminary injunction against four Brooklyn tax return preparers and their business.
The civil complaint filed in the case seeks to permanently bar Keith Sang, Kashana Sang, Tareek Lewis, Kimberly Brown and their business K&L Accounting Inc. from preparing tax returns. The preliminary injunction bars the defendants from any involvement in the preparation of federal tax returns during the pendency of this case. Keith Sang, Kashana Sang, Lewis and the business made no objection to the injunction. Brown opposed it.
The complaint alleges that the defendants’ tax return preparation schemes include preparation of individual income tax returns that (1) contain false or exaggerated itemized deductions (for example, unreimbursed employee expenses and charitable donations), (2) false filing statuses, such as improper “head of household” elections, (3) fraudulent and/or fictitious business income and/or expenses, (4) returns that falsify customer’s self-employment income to bring the customer into the “sweet spot” for the maximum available earned income tax credit, and (5) false losses on forms that report supplemental income or loss. The complaint alleges that, each year, K&L is responsible for preparing over 2,000 tax returns for customers, and that Keith Sang, whose electronic tax filing privileges were revoked years ago, has taken numerous steps to disguise his involvement with the tax return preparation, while he continues to prepare returns and supervise others working at K&L.
In granting the preliminary injunction, the court found that defendants engaged in concerted and conscious steps to evade IRS enforcement; that they, acting as a unit, repeatedly filed tax returns understating taxpayer liabilities since at least 2016; and that their past efforts demonstrated that they would continue hampering IRS enforcement unless prohibited from acting as federal tax return preparers during the litigation.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. (More information can also be found here.) The IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers, and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers. The IRS also has a checklist of things to remember when filing income tax returns in 2022.
In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $72,000. For individuals whose income is over that threshold, IRS Free File offers electronical federal tax forms that can be filled out and filed online for free. The IRS has tips on how seniors and individuals with low to moderate income can get other help or guidance on tax return preparation, too.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Essex County Man Charged with CarjackingRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was charged today with carjacking in Montclair, New Jersey, U.S. Attorney Philip R. Sellinger announced.
Andy Cook, 23, of Newark, is charged by complaint with one count of conspiracy to commit carjacking, one count of carjacking, and one count of conspiracy to use a firearm during a crime of violence. He is scheduled to appear by videoconference today before U.S. Magistrate James B. Clark III.
According to the documents filed in this case and statements made in court:
On Dec. 6, 2021, Cook’s accomplice approached the victim, who was inside her car that was parked on her driveway. The accomplice pointed a firearm at the victim and ordered the victim to leave her belongings and exit the car. Cook then entered the car and drove it away. After the victim called the police, law enforcement officers spotted the vehicle. Cook abandoned the vehicle in Newark and fled on foot before being apprehended.
The count of conspiracy to commit carjacking carries a maximum potential penalty of five years in prison and a $250,000 fine. The count of carjacking carries a maximum potential penalty of 15 years in prison and a $250,000 fine. The count of conspiracy to use a firearm during a crime of violence carries a maximum potential penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Dong Joo Lee of the Violent Crimes Unit.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Eastern Panhandle woman admits to bank fraudRead the Press Release
MARTINSBURG, WEST VIRGINIA – Ana Amesquita, of Kearneysville, West Virginia, has admitted to bank fraud, United States Attorney William Ihlenfeld announced.
Amesquita, 26, pleaded guilty today to one count of “Bank Fraud.” Amesquita was the head teller at the Inwood branch of City National Bank. In June 2019, Amesquita began a scheme to process ATM deposits without the supervision of a second bank employee, violating the bank’s policy. She would then take some of the cash for her own personal use and misrepresent the facts in the general ledger.
As a part of the plea agreement, Amesquita agreed to pay $144,661 in restitution to the bank.
Amesquita faces up to 30 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 Jarod J. Douglas is prosecuting the case on behalf of the government. The U.S. Secret Service investigated.
U.S. Magistrate Judge Michael John Aloi presided.
East McKeesport Man Admits Possessing CocaineRead the Press Release
PITTSBURGH - A resident of East McKeesport, Pennsylvania, pleaded guilty in federal court to a charge of possession with intent to distribute cocaine, United States Attorney Cindy K. Chung announced today.
Robert Botti, age 41, pleaded guilty to one count before United States District Judge Christy Criswell Wiegand.
In connection with the guilty plea, the court was advised that on June 15, 2021, Botti possessed cocaine with the intent to distribute it.
Judge Wiegand scheduled sentencing for June 22, 2022, at 10:00 a.m. The law provides for a total sentence of not more than 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the Court ordered the defendant to be released on a $50,000 unsecured bond.
Assistant United States Attorney Yvonne M. Saadi and Jonathan D. Lusty are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Pennsylvania State Police, and the Perryopolis Police Department conducted the investigation that led to the prosecution of Botti.
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.
Donora Man Sentenced to More than 4 Years for Distributing Crack CocaineRead the Press Release
PITTSBURGH, PA - A resident of Donora, PA, has been sentenced in federal court to 50 months imprisonment followed by five years of supervised release on his conviction of federal narcotics charges, United States Attorney Cindy K. Chung announced today.
Chief United States District Judge Mark R. Hornak imposed the sentence on John Duchi, Jr, 33.
According to information presented to the court, Duchi conspired with other members of the Lightfoot Drug Trafficking Organization to distribute cocaine from 2015 to 2017. Duchi admitted to distributing between 400 and 500 grams of powder cocaine during that time frame.
United States Attorney Chung commended the Federal Bureau of Investigation and the Pennsylvania State Police, with assistance from the South Strabane Police Department, the Elizabeth Borough Police Department, the Penn Hills Police Department, and the Perryopolis Police Department, for the investigation leading to the successful prosecution of Duchi, Jr.
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.
District Man Pleads Guilty to Charge for July 4, 2020 Slaying of 11-Year-Old BoyRead the Press Release
WASHINGTON – Carlo General 21, of Washington, D.C., pleaded guilty today to a charge of voluntary manslaughter while armed in the fatal shooting of an 11-year-old boy on July 4, 2020, in Southeast Washington, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
General entered the guilty plea in the Superior Court of the District of Columbia. Consistent with the Court’s voluntary sentencing guidelines, General’s plea calls for an agreed-upon sentence of 13 to 16 years in prison. The plea is contingent upon the Court’s approval. The Honorable Rainey R. Brandt scheduled a sentencing hearing for June 3, 2022.
Three co-defendants -- Daryle Bond, 20, Marcel Gordon, 26, and Christen Wingfield, 24 – pleaded guilty earlier this month to the same charge. They also are scheduled to be sentenced on June 3, 2022. Bond’s plea calls for an agreed-upon sentence of 7 ½-to-9 ½- years in prison, Gordon’s calls for 10 years, and Wingfield’s calls for a 9 ½-year prison term.
According to the government’s evidence, on July 4, 2020, at approximately 9:15 p.m., General, Bond, Gordon, and Wingfield were congregating at a barbeque near the cul-de-sac in front of an apartment building located in the 1400 block of Cedar Street SE. Cedar Street is a long road that ends in a cul-de-sac. The entrance of the 1400 block of Cedar Street intersects diagonally with a street that is known as the “alley.”
Near the entrance of the 1400 block of Cedar Street, Davon McNeal – 11 years old – was exiting a vehicle and walking towards a basement apartment in the Frederick Douglass Garden Apartment Complex. At a certain point, General, armed with a firearm with a laser sight, started running towards the entrance of the 1400 block of Cedar Street and fired his weapon towards the alley. Surveillance footage shows Davon running towards the basement apartment and falling after General fired his weapon.
Approximately six seconds later, Gordon, while running behind General, fired his weapon in the same direction. Bond, also armed with a firearm, ran towards the entrance of the 1400 block on a sidewalk on the side of the apartment building, along with Wingfield, who was armed with a firearm as well and running on the road.
All four defendants gathered in front of the apartment building and looked down the alley. The group subsequently ran in the direction of a playground with guns drawn. Bond, General and Gordon all fired their firearms as they were running away.
An autopsy concluded that Davon’s death was caused by a gunshot wound to the head.
General was arrested on July 30, 2020. Bond was arrested on July 10, 2020. Wingfield was arrested on July 11, 2020. Gordon was arrested on Sept. 1, 2020. All have been in custody since their arrests.
In announcing today’s plea, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Criminal Investigations Division Homicide Branch of the Metropolitan Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Lashone Samuels, former Victim/ Witness Specialist Marcia Rinker, Victim/ Witness Specialist Latrice Washington-Williams, and Investigative Analyst Zachary McMenamin.
Finally, they commended the efforts of Assistant U.S. Attorneys Shehzad Akhtar, Stephen Rickard, and Jack Korba, who investigated and prosecuted the case, and former Assistant U.S. Attorney Maryam Adeyola, who provided valuable assistance.
Devon Archer Sentenced to A Year and A Day in Prison for the Fraudulent Issuance and Sale of More Than $60 Million of Tribal BondsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that DEVON ARCHER was sentenced today by the Honorable Ronnie Abrams to a year and a day in prison for defrauding a Native American tribal entity and various investment advisory clients of tens of millions of dollars in connection with the issuance of bonds by the tribal entity and the subsequent sale of those bonds through fraudulent and deceptive means.
As established by the evidence at trial:
From March 2014 through April 2016, ARCHER, Bevan Cooney, John Galanis, Jason Galanis, Gary Hirst, Michelle Morton, Hugh Dunkerley, and others engaged in a fraudulent scheme that involved (a) causing the Wakpamni Lake Community Corporation (“WLCC”), a Native American tribal entity, to issue a series of bonds (the “Tribal Bonds”) through lies and misrepresentations; (b) deceptively causing clients of asset management firms controlled by Hirst, Morton, and others to purchase the Tribal Bonds, which the clients were then unable to redeem or sell because the bonds were illiquid and lacked a ready secondary market; and (c) misappropriating the proceeds resulting from those bond sales.
The WLCC was convinced to issue the Tribal Bonds through false and fraudulent representations by John Galanis. Simultaneously, Jason Galanis, with the backing of ARCHER and others, worked to acquire Hughes Capital Management (“Hughes”), a registered investment adviser. Morton and Hirst were installed as Hughes’ Chief Executive Officer and Chief Investment Officer, respectively. Within weeks of taking control of Hughes, Morton and Hirst placed the entire $28 million first series of Tribal Bonds with Hughes clients but failed to disclose material facts about the Tribal Bonds, including the fact that the Tribal Bonds fell outside of the investment parameters set forth in the investment advisory contracts of certain Hughes clients. In addition, Hughes’ clients were not told about substantial conflicts of interest with respect to the issuance and placement of the Tribal Bonds before the Tribal Bonds were purchased on these clients’ behalf.
The defendants and their co-conspirators then misappropriated the proceeds of first Tribal Bond issuance. Specifically, although the Tribal Bonds were supposed to be invested in an annuity, Dunkerley, at the direction of Jason Galanis, transferred significant amounts of the bond proceeds to support the defendants’ business and personal interests. John Galanis, for example, secretly received $2.35 million in proceeds of the first bond issuance, which he spent on a variety of personal expenses and luxury items, including cars, jewelry, and hotel expenses. Similarly, Jason Galanis used a portion of the proceeds of the first Tribal Bond issuance to finance the purchase of a $10 million luxury apartment in Tribeca, which, with ARCHER’s consent, he purchased in ARCHER’s name.
In addition, after John Galanis induced the WLCC to issue a second round of Tribal Bonds, ARCHER and others used $20 million of bond proceeds from the first issuance to buy the entirety of the second issuance. As a result of the use of recycled proceeds to purchase additional issuances of Tribal Bonds, the face amount of Tribal Bonds outstanding increased and the amount of interest payable by the WLCC increased, but the actual bond proceeds available for investment on behalf of the WLCC did not increase. In order to deposit the bonds at a bank, ARCHER misrepresented the source of the money used to purchase the bonds, falsely claiming that he had obtained it through real estate sales. The bonds purchased by ARCHER and others were then used to meet net capital requirements at two broker dealers in which ARCHER and others had interests. In addition, millions of dollars in bond proceeds from the first and second issuances were used finance the acquisition of companies which the defendants and their co-conspirators acquired as part of a strategy to build a financial services conglomerate, which ARCHER expected to control.
In the spring of 2015, John Galanis induced the WLCC to issue an additional $16 million worth of Tribal Bonds. Simultaneously, Jason Galanis, and others purchased a second investment adviser, Atlantic Asset Management (“Atlantic”), and installed Morton as the Chief Executive Officer. Within days of obtaining control of Atlantic, Morton placed the entirety of the $16 million Tribal Bond issuance with an Atlantic client, without the client’s consent and without disclosing the fact that the Tribal Bonds were outside the client’s investment parameters and that numerous conflicts of interest existed. The proceeds of the $16 million issuance were again not invested in an annuity as promised, but instead were diverted to, among other things, finance the defendants’ acquisition of another company in furtherance of their plan to build a financial services conglomerate, and make payments to one of the broker dealers in which ARCHER and others had interests.
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In addition to the prison term, ARCHER, 47, was sentenced to a year of supervised release. ARCHER was also ordered to forfeit $15,700,513 and to make restitution in the amount of $43,427,436.
Jason Galanis, who pled guilty to conspiracy to commit securities fraud, securities fraud, and investment adviser fraud, was sentenced to a term of 173 months in prison on August 11, 2017. Gary Hirst, who pled guilty to securities fraud, conspiracy to commit securities fraud, investment adviser fraud, and conspiracy to commit investment adviser fraud, was sentenced to 84 months in prison on September 7, 2018. John Galanis, who was convicted after trial of securities fraud and conspiracy to commit securities fraud, was sentenced to 120 months in prison on March 8, 2019. Bevan Cooney, who was convicted after trial of securities fraud and conspiracy to commit securities fraud, was sentenced to 30 months in prison on July 31, 2019. Michelle Morton, who pled guilty to conspiracy to commit securities fraud and investment adviser fraud, was sentenced to 15 months in prison on November 18, 2020. Hugh Dunkerley, who pled guilty to conspiracy to commit securities fraud, two counts of securities fraud, bankruptcy fraud and falsification of records with the intent to obstruct a government investigation, is also awaiting sentencing.
Mr. Williams praised the work of the U.S. Postal Inspection Service and the Federal Bureau of Investigation, and thanked the Securities and Exchange Commission.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Rebecca Mermelstein and Negar Tekeei are in charge of the prosecution.
DS44 Drug Dealer Sentenced to 8 Years in Prison for Drug and Gun Law ViolationsRead the Press Release
PITTSBURGH, PA -- A resident of Pittsburgh, PA, has been sentenced in federal court to eight years of imprisonment on his convictions for violating various federal narcotics and firearm laws, United States Attorney Cindy K. Chung announced today.
United States District Judge William S. Stickman imposed the sentence on Devonte Parker, age 26.
According to information presented to the court at the change of plea hearing, law enforcement investigated Parker during a long-term, Title III wiretap investigation targeting the Darccide/Smash 44, or DS44, neighborhood gang and drug-trafficking activity in and around the South Side area of Pittsburgh. During the investigation, the government obtained authorization to intercept communications on numerous phones. Intercepted communications revealed that Parker served as drug dealer.
Additionally, on June 20, 20219, law enforcement executed a federal search warrant upon Parker’s residence. In Parker’s bedroom, law enforcement recovered packages narcotics containing fentanyl, valeryl fentanyl, and heroin. From that same bedroom, law enforcement recovered a loaded .45 caliber handgun between a mattress and a box spring. Parker is prohibited from possessing firearms and ammunition due to prior felony convictions.
Parker’s imprisonment shall be for a total term of imprisonment of 96 months. Following imprisonment, Parker shall serve a 6-year term of supervised release.
Prior to imposing sentence, Judge Stickman stated that “Fentanyl is a scourge on our community . . . Those who distribute fentanyl cause pain and death.”
Assistant United States Attorney Brendan J. McKenna and Carolyn Bloch prosecuted this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
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.
DOJ Adds Employee Defendants in Illegal Opioid Distribution and Health Care Fraud Lawsuit Against Northeast Philadelphia PharmacyRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that the United States filed an amended civil complaint against pharmacist Todd Goodman and pharmacy employees Eric Pestrack and Lee Kamp for their alleged involvement in years-long practices of illegally dispensing opioids and other controlled substances, and systematic health care fraud, at Philadelphia-based pharmacy Spivack, Inc., which previously operated under the name Verree Pharmacy. These individuals were added as defendants in the previously filed lawsuit against Verree and its former owner, pharmacist Mitchell Spivack, for the same alleged schemes. The amended complaint continues to seek civil penalties and civil damages, which could total in the millions of dollars, as well as injunctive relief.
The lawsuit, in which Goodman, Pestrack, and Kamp were added, was the culmination of a multi-year federal-state investigation. The amended complaint alleges that Verree Pharmacy, Spivack, Goodman, Pestrack, and Kamp had a responsibility to dispense opioids and other controlled substances only when appropriate. Instead, the United States alleges that Verree and these individuals dispensed the drugs, even when faced with numerous red flags suggestive of diversion—such as opioids in extreme doses, dangerous combinations of opioids and other “cocktail” drugs preferred by those struggling with addiction, excessive cash payments for the drugs, blatantly forged prescriptions, and other signs that the pills were being diverted for illegal purposes.
The amended complaint alleges that Verree—which was the top retail pharmacy purchasing oxycodone in Pennsylvania—has been a nationwide and regional outlier in its deviant purchasing, dispensing, and billing of controlled substances. To avoid scrutiny from the drug distributors that sold them the pills, Verree through Spivack allegedly made false statements to maintain the façade of legitimacy and keep the pharmacy stocked with pills critical to its profits. Behind that façade, the amended complaint alleges that Spivack drew millions of dollars from the pharmacy while the public suffered the consequences, including one patient who overdosed and died next to Verree Pharmacy bottles dispensed by Spivack.
The United States’ amended complaint also alleges that Verree, Spivack, Goodman, Pestrack, and Kamp were engaging in an expansive health care fraud scheme involving fraudulent billings for drugs not actually dispensed. The alleged cornerstone of the scheme was a code used by the pharmacy employees in their internal computer system: “BBDF” or “Bill But Don’t Fill.” Verree, Spivack, Goodman, Pestrack, and Kamp allegedly used BBDF as a means to cover their losses on other drugs and further the pharmacy’s illicit profits by falsely claiming to insurers, including Medicare, that they had dispensed a drug to a patient, when in fact they had not. According to the amended complaint, this sophisticated fraud—which one of the employees admitted to investigators—resulted in significant losses to Medicare and other federal programs.
The lawsuit seeks to impose civil penalties and damages on Verree, Spivack, Goodman, Pestrack, and Kamp under the Controlled Substances and False Claims Acts. If Verree, Spivack, Goodman, Pestrack, and Kamp are found liable, they could face civil penalties up to $68,426 for each unlawful prescription dispensed, civil penalties up to $23,607 for each false claim they submitted to federal health care programs, and treble damages for the alleged health care fraud against federal programs. The court may also award injunctive relief to prevent the defendants from committing additional controlled substance violations.
If the public has any information regarding Verree Pharmacy or any other health care fraud allegation, individuals should contact the HHS-OIG hotline at 800-HHS-TIPS.
The case is being investigated by the Philadelphia Field Division of the Drug Enforcement Administration, the Pennsylvania Department of State’s Bureau of Enforcement and Investigation, HHS-OIG, and the Pennsylvania Office of the Attorney General, with additional assistance from the Office of Personnel Management Office of Inspector General, the Defense Health Agency, and the Defense Criminal Investigative Service. The civil investigation and litigation are being handled by Assistant United States Attorney Anthony D. Scicchitano and auditors Dawn Wiggins and George Niedzwicki.
The amended complaint contains allegations only that the United States must prove if the case proceeds to trial.
Convicted Felon Sentenced to over 7 Years for Illegal Possession of a FirearmRead the Press Release
Memphis, TN – Jemel Jackson, 41, has been sentenced to 84 months in federal prison for being a convicted felon in possession of a firearm. Joseph C. Murphy, Jr., United States Attorney announced the sentence today.
According to information presented in court, on the evening of May 15, 2020, a Memphis Police Officer, saw Jackson selling marijuana in the parking lot of a gas station on East Crump. As officers approached Jackson, they detected the strong odor of marijuana emanating from his vehicle.
Officers observed in plain view on the floorboard, a Smith & Wesson .40 caliber pistol, a bag of marijuana (60.5 grams) and a digital scale. The gun was loaded with 13 live rounds of ammunition. Jackson was also in possession of 49 ecstasy pills and $834.oo in cash.
While on the scene, officers discovered Jackson had been convicted of aggravated robbery on September 7, 2005. As a result of his prior felony conviction, he is prohibited by federal law from possessing firearms or ammunition.
On February 10, 2022, United States District Judge Mark S. Norris sentenced Jackson to 84 months in federal prison to be followed by 3 years supervised release. There is no parole in the federal system.
This case was investigated by the Project Safe Neighborhoods Task Force. The (PSN) initiative is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our communities safer for everyone. In 2017, PSN was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement.
Assistant United States Attorney Raney Irwin prosecuted this case on behalf of the government.
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Convicted Felon Sentenced to Federal Prison for over 8 Years for Possession of a FirearmRead the Press Release
Memphis, TN – Eric Hunt, 23, has been sentenced to 100 months in federal prison for being a convicted felon in possession of a firearm. Joseph C. Murphy, Jr., United States Attorney announced the sentence today.
According to information presented in court, on February 29, 2020, at 12:25pm, officers with the Memphis Police Department initiated blue lights and sirens for a traffic violation to stop Eric Hunt. He refused to stop and continued driving until reaching an apartment complex near Frayser Boulevard where he jumped out of the car, threw a gun, and ran. When apprehended a short time later, Hunt had on his person $773 in cash and a small amount of marijuana. The weapon recovered was a Taurus G2C 9mm handgun, loaded with 12 rounds in the magazine and one in the chamber.
On March 10, 2020, Hunt was arrested at his home for an outstanding warrant. A search of his home revealed six guns, and more than one pound of marijuana found in a safe. Hunt admitted that two of the six guns found in the home belonged to him.
Hunt is a convicted felon having pled guilty to two counts of aggravated assault in 2019, for which he was sentenced to three years’ incarceration. As a result of his prior convictions, he is prohibited by federal law from possessing firearms or ammunition.
On February 15, 2022, United States District Judge Mark S. Norris sentenced Hunt to 100 months in federal prison to be followed by two years’ supervised release. There is no parole in the federal system.
This case was investigated by the Project Safe Neighborhoods (PSN) Task Force. The (PSN) initiative is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. In 2017, PSN was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all United States Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement.
Assistant United States Attorney Raney Irwin prosecuted this case on behalf of the government.
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Convicted Felon Indicted on Drug ChargeRead the Press Release
BIRMINGHAM, Ala. – A federal grand jury last week indicted a convicted felon on a drug charge, announced U.S. Attorney Prim F. Escalona and Drug Enforcement Administration Special Agent in Charge Brad L. Byerley.
A one-count indictment filed in U.S. District Court charges Terry Roshaun Pruitt, 36, of Birmingham, with possession with the intent to distribute cocaine base.
According to the indictment, in September 2021, Pruitt possessed 280 grams or more of a mixture containing a detectable amount of cocaine base, more commonly referred to as “crack cocaine” in Jefferson County.
Pruitt has one serious drug felony conviction and one serious violent felony conviction, which increases his sentence to 25 years to life in prison. In March 2009, Pruitt was convicted in the U.S. District Court Northern District of Alabama of possession with intent to distribute 50 grams or more of a mixture and substance containing cocaine base and possession of a firearm in the furtherance of a drug trafficking crime.
The DEA investigated the case, along with the Birmingham Police Department. Assistant U.S. Attorney Alan Baty is prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Convicted Felon Arrested on Drug and Gun ChargesRead the Press Release
BIRMINGHAM, Ala. – Federal agents on Friday arrested a convicted felon on drug and gun charges, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms, and Explosives Special Agent in Charge Mickey French.
A three-count indictment filed in U.S. District Court charges Antuan Cornell Riggs, 30, of Pleasant Grove, with being a felon in possession of a firearm, possession with the intent to distribute a controlled substance, and possession of a firearm during and in relation to a drug trafficking crime.
According to the indictment, in February 2019, Riggs illegally possessed a Diamondback .380 caliber semi-automatic pistol, a Glock 9-millimeter semi-automatic pistol, marijuana, hydrocodone and methamphetamine.
The maximum penalty for being a felon in possession of a firearm is 10 years in prison.
The maximum penalty for possession with intent to distribute a controlled substance is 20 years in prison.
The minimum penalty for possession of a firearm during a drug trafficking crime is five years in prison, which must run consecutive to any other sentence.
ATF investigated the case, along with the Birmingham Police Department. Assistant U.S. Attorney Alan Baty is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Clay County Man to Federal Prison for Meth and Firearm ConvictionsRead the Press Release
A man who conspired to distribute methamphetamine and illegally possessed a firearm was sentenced on February 28, 2022, to 15 years in federal prison.
Joshua Currier, 31 from Spencer, Iowa, pled guilty October 5, 2021, to conspiracy to distribute methamphetamine and illegal possession of a firearm. Currier was previously convicted of Forgery, in the Iowa District Court for Dickinson County, on or about June 13, 2011, and Domestic Abuse Assault Impeding Flow of Air/Blood in the Iowa District Court for Clay County, on or about August 9, 2017. Both convictions prohibit Currier from possessing a firearm.
Evidence at the hearings showed that between January 2020 and continuing to on or about February 2021, Currier and others conspired to distribute at least 5 kilograms of methamphetamine. Further evidence showed that in December 2020, Currier traded a Canik 9mm pistol and methamphetamine and then gave to another to settle a drug debt.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Currier was sentenced to 15 years’ imprisonment and must serve a 5-year term of supervised release following imprisonment. There is no parole in the federal system. Currier remains in custody of the United States Marshal until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by Clay County Sheriff’s Office, Spencer Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, Iowa Great Lakes Drug Task Force, and Iowa DCI Laboratory.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4037. Follow us on Twitter @USAO_NDIA.
Chicago Woman Who Cashed Her Deceased Grandmother’s Pension Checks Convicted on Federal Fraud and Tax ChargesRead the Press Release
CHICAGO — A federal jury has convicted a Chicago woman on fraud and tax offenses for cashing her deceased grandmother’s pension checks and preparing false tax returns.
EUNICE SALLEY, also known as “Eunice Salley Dobyns,” “Oya Awanata-Bey,” and “Oya Awanata,” 37, was found guilty on all 29 counts against her, including pension fraud, embezzlement, mail fraud, and tax charges. The jury returned the verdicts Friday after a four-day trial in U.S. District Court in Chicago. U.S. District Judge Robert M. Dow, Jr., set sentencing for July 21, 2022.
The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Stuart M. Goldberg, Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division; Justin Campbell, Special Agent-in-Charge of IRS Criminal Investigation in Chicago; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorney Barry Jonas of the Northern District of Illinois, and Assistant Chief Andrew Kameros of the Justice Department’s Tax Division.
According to evidence presented at trial, Salley worked as a paid tax return preparer. In 2016 and 2017, Salley prepared and filed with the IRS 22 false individual income tax returns on behalf of clients. The returns, which sought more than $1 million in false refunds, contained fictitious wages and withholdings, as well as false medical, charitable, and employment-related expenses. Salley demanded that many of her clients pay her up to 50% of the refund, in addition to her regular preparation fee.
Evidence regarding the pension fraud revealed that Salley’s grandmother died in 2009 after having worked for American Can Co. After her death, the grandmother’s monthly pension checks continued to be delivered to the residence where Salley continued to reside. From January 2013 to December 2017, 33 pension checks, totaling $14,131, were issued to the grandmother and deposited into one of six bank accounts opened and controlled by Salley. On several occasions during that time Salley notarized and submitted to the pension plan administrator affidavits under her grandmother’s name, fraudulently affirming that the grandmother was alive. Salley did not report approximately $5,000 in income she received in 2017 from the pension checks that she embezzled.
Chicago Woman Convicted on Federal Fraud and Tax ChargesRead the Press Release
A federal jury convicted an Illinois woman on fraud and tax offenses for cashing her deceased grandmother’s pension checks and preparing false tax returns.
According to court documents and evidence presented at trial, Eunice Salley, aka Eunice Sally Dobyns, aka Oya Awanata-Bey, aka Oya Awanata, 37, of Chicago, was found guilty on all 29 counts against her, including pension fraud, embezzlement, mail fraud and tax charges. The jury returned the verdicts Friday after a four-day trial in U.S. District Court in Chicago.
According to evidence presented at trial, Salley worked as a paid tax return preparer. In 2016 and 2017, Salley prepared and filed with the IRS 22 false individual income tax returns on behalf of clients. The returns, which sought more than $1 million in false refunds, contained fictitious wages and withholdings, as well as false medical, charitable and employment related expenses. Salley demanded that many of her clients pay her up to 50% of the refund, in addition to her regular preparation fee.
Evidence regarding the pension fraud revealed that Salley’s grandmother died in 2009 after having worked for American Can Co. After her death, the grandmother’s monthly pension checks continued to be delivered to the residence where Salley continued to reside. From January 2013 to December 2017, 33 pension checks, totaling $14,131, were issued to the grandmother and deposited into one of six bank accounts opened and controlled by Salley. On several occasions during that time Salley notarized and submitted to the pension plan administrator affidavits under her grandmother’s name, fraudulently affirming that the grandmother was alive. Salley did not report approximately $5,000 in income she received in 2017 from the pension checks that she embezzled.
Salley is scheduled to be sentenced on July 21 and faces a maximum penalty of 30 years in prison for mail fraud, five years in prison for each count of theft from an employee benefit plan, three years for each count of aiding and assisting the filing of a false tax return, and three years in prison for filing a false tax return. She also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; U.S. Attorney John R. Lausch Jr. for the Northern District of Illinois; Special Agent-in-Charge Justin Campbell of IRS Criminal Investigation (IRS-CI) in Chicago; and Special Agent-in-Charge Emmerson Buie Jr. of the Chicago Field Office of the FBI made the announcement.
The IRS-CI and FBI investigated the case.
Assistant Chief Andrew Kameros of the Tax Division and Assistant U.S. Attorney Barry Jonas for the Northern District of Illinois are prosecuting the case.
Check and Credit Card Scammer Sentenced to Five Years in Federal Prison for Bank and Wire FraudRead the Press Release
Baltimore, Maryland – U.S. District Judge Stephanie A. Gallagher sentenced Warren Tillery, age 46, of Atlanta, Georgia and previously of Baltimore to five years in federal prison, followed by five years of supervised release, for conspiracy to commit mail and bank fraud. Judge Gallagher also ordered Tillery to pay $166,860 in restitution to victim financial institutions.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron and Postal Inspector in Charge Greg L. Torbenson of the U.S. Postal Inspection Service - Washington Division.
According to his plea agreement, from 2015 to February 2018, Tillery led a conspiracy to engage in a mail and bank fraud scheme designed to steal money from federally insured financial institutions in Maryland, Pennsylvania, Virginia, Georgia, and elsewhere.
Tillery led and organized a conspiracy that initially focused on stealing checks written by victim businesses and individuals from United States Postal Service mail receptacles. As part of the scheme to defraud, Tillery obtained a stolen U.S. Postal Service key that opened mail receptacles in the Baltimore area. He then provided this key to co-conspirators who were recruited to steal mail and provide stolen checks to Tillery. Tillery altered the stolen checks or created fraudulent checks that displayed the victim’s account information and instruct co-conspirators to cash the fraudulently obtained checks made out to them in exchange for a portion of the proceeds. In addition to his check theft conspiracy, Tillery made counterfeit money orders and credit cards to use as secondary identification for check cashing and to make purchases.
As stated in his plea agreement, on February 2, 2018, a search warrant was executed at Tillery’s Atlanta-area home. As a result of the executed search warrant, investigators recovered card manufacturing equipment, $4,000 in cash, and hundreds of credit cards in his and others’ names encoded with stolen credit card information. Agents also recovered stolen credit card information, recently stolen U.S. Postal Service mail tubs, social security cards and driver’s licenses that belonged to other people, and hundreds of blank money orders and stolen checks.
Tillery’s fraud conspiracy caused at least $180,269 in losses to more than 30 victim businesses and 15 federally insured financial institutions. In total, Tillery personally obtained at least $30,000 from the conspiracy.
United States Attorney Erek L. Barron praised the USPIS and the Harford County Sheriff’s Office for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Adam K. Ake and Special Assistant U.S. Attorney Jason Hamilton, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to report fraud, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud .
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