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30 March 2022
Three District of Columbia Men Indicted on Federal Charges in Series of Armed Robberies of Retail and Commercial BusinessesRead the Press Release
WASHINGTON – Three men, all from the District of Columbia, have been indicted on federal conspiracy charges stemming from a series of recent robberies of employees of various retail establishments, including gas stations, liquor stores, hotels, and restaurants.
The indictments, which were unsealed today in the U.S. District Court for the District of Columbia, were announced by U.S. Attorney Matthew M. Graves, Wayne A. Jacobs, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division, and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Those indicted include Stephon Harrigan, 28, his brother, Aaron Harrigan, 26, and Tavarus Thompson, 28. Stephon Harrigan was arrested on March 6, Tavarus Thompson was arrested on March 18, and Aaron Harrigan was arrested yesterday. All remain in custody pending further court proceedings.
As alleged in the indictment, beginning on or about Jan. 1, 2022, and continuing through at least March 6, 2022, the defendants agreed to carry out robberies of retail and commercial establishments. They had different roles in the crimes that followed. They wore dark clothing and often wore masks or other clothing over their faces as well as gloves. One or more of the defendants was armed with a firearm. They also used various vehicles, including stolen vehicles, to flee from establishments after the robberies or attempted robberies, the indictment alleges.
The indictment lists 25 robberies from Jan. 12 through Feb. 22, at locations in Northeast, Northwest and Southeast Washington as well as in Mount Rainier, Maryland, and Silver Spring, Maryland.
All three defendants were indicted on charges of conspiracy to interfere with interstate commerce by robbery and sale or receipt of stolen vehicles. Stephon Harrigan and Thompson also were indicted on firearms-related offenses, and Stephon Harrigan additionally was indicted on kidnapping and carjacking charges.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the FBI’s Washington Field Office’s Violent Crime Task Force and the Metropolitan Police Department’s Carjacking Task Force. Valuable assistance was provided by the FBI’s Columbia, South Carolina Field Office, and the Mount Rainier, Maryland and Montgomery County, Maryland Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Rachel Fletcher and Solomon Eppel of the U.S. Attorney’s Office for the District of Columbia.
Three Charged with Trafficking CocaineRead the Press Release
PROVIDENCE, R.I. – Three individuals made initial appearances in U.S. District Court on Tuesday, charged with allegedly trafficking cocaine shipped to Rhode Island from Puerto Rico through the United States Postal Service, announced United States Attorney Zachary A. Cunha.
May Rosario, 27, Patri Hiciano Felix, 24, and Rafael Fleury Munoz, 22, of Providence, are charged by criminal complaint with conspiracy to distribute and possession with intent to distribute 500 grams of a mixture or substance containing cocaine; possession with intent to distribute 500 grams of a mixture or substance containing cocaine; and unlawful use of a communication facility (including the mail) to facilitate the distribution of a controlled substance.
It is alleged in charging documents that on March 26, 2022, a United States Postal Service carrier was approached by a male seeking to take custody of a Priority Express parcel she was preparing to deliver to a Providence residence. It is alleged that the male, who refused to provide an ID to the carrier, showed the postal carrier a photo of the package, claiming that the package had been sent to him. The carrier refused to provide the package to the man and left the area, taking the package with her. As she drove away, the male began to follow her in his vehicle.
It is further alleged that two days later, authorities became aware that a single individual or device was tracking the delivery of a package addressed to a Johnston residence. As Rhode Island State Police surveilled the Johnston location, they saw a vehicle slowly drive through the area twice. It is alleged that moments after the package was delivered to the front porch of the residence, a person ran out from behind the building to the front porch and then entered the building. About twenty minutes later, the same vehicle that the State Police surveillance team saw driving through the area earlier in the day reappeared. It is alleged that the person previously seen running into the building ran back out with the Priority Mail Parcel and got into the vehicle, which then drove away. A State Police cruiser nearby stopped the vehicle. It is alleged that the package delivered to the Johnston residence was found on the floor of the vehicle, and that Rosario, Hiciano Felix, and Fleury Munoz were inside the car.
A court-authorized search of the package seized in Johnston was found to contain 1.07 kilograms of cocaine; the package addressed to the Providence residence was found to contain 1.15 kilograms of cocaine. It is alleged that the Postal Carrier in Providence identified Rosario as the person who attempted to retrieve a package from her on March 26.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney Denise M. Barton.
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Ten Indicted in $2.7M Little Rock Fraud RingRead the Press Release
LITTLE ROCK—Ten defendants have been indicted for their roles in a bank fraud conspiracy that involved theft of pandemic unemployment funds. Khi Simms, 27, of Alexander, Arkansas, was ordered to remain in federal custody late yesterday afternoon after a detention hearing held before United States Magistrate Judge J. Thomas Ray.
Three other defendants, Brelyn London, 27; Karl Harris, 26; and Deuntae Diggs, 26; all of Little Rock, are also in custody awaiting trial. The remaining six defendants, Madison Clark, 24, of Alexander; Keshoun Coleman, 23; Derrick Harris, 19; Terence Holman, 27; Brandon Shavers, 29; and Quentin Watson, 27; all of Little Rock, have been released on bond to await trial, which is scheduled for April 18, 2022.
The indictment alleges that the defendants used unemployment debit cards, which were designed to distribute pandemic unemployment assistance made available by the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act), to withdraw funds to which they were not entitled. According to the indictment, Madison Clark worked as a contract employee with a bank who had a role in distributing these unemployment debit cards for the state of California’s Employment Development Department.
The indictment alleges that Clark used her access to issue debit cards, remove fraud blocks, and add credits to unemployment debit card accounts, resulting in approximately $2.7M in losses as calculated to this point in the investigation. Clark and Simms, and others Simms recruited, then used fraudulent debit cards to withdraw the funds Clark made available.
All ten defendants are charged with conspiracy to commit bank fraud, which carries a maximum penalty of 30 years imprisonment, a fine of up to $1M, and not more than five years of supervised release. All ten defendants are also charged with wire fraud, which carries a maximum penalty of 20 years imprisonment, a fine of up to $250,000, and not more than five years of supervised release. The case is being investigated by the FBI and prosecuted by Assistant United States Attorney Allison W. Bragg.
An indictment contains only allegations. Defendants are presumed innocent unless and until they are proven guilty.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Susanville Man Sentenced to over 10 Years in Prison for Distribution of MethamphetamineRead the Press Release
SACRAMENTO, Calif. — Darrel Wayne Kratzberg, 46, of Susanville, was sentenced on Monday to 10 years and 10 months in prison for distribution of methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, federal and local law enforcement officers began an investigation into Kratzberg’s distribution of methamphetamine in and around Susanville, in February 2018. The investigation was part of a larger effort between local and federal law enforcement agencies to identify sources of drugs, especially opioids, within Lassen County. Over the course of two months, agents conducted five controlled buys of methamphetamine and one controlled buy of heroin from Kratzberg.
This case was the product of an investigation by the Federal Bureau of Investigation, the Susanville Police Department, the Lassen County Sheriff’s Department, the California Department of Corrections & Rehabilitation-High Desert State Prison, and the Lassen County District Attorney’s office. Assistant U.S. Attorney James Conolly prosecuted 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 www.justice.gov/OCDETF.
Sudbury Bookkeeper Arrested on Fraud ChargesRead the Press Release
BOSTON – A former bookkeeper for a Lexington interior design firm was arrested today on charges of bank fraud and aggravated identity theft in connection an alleged scheme to embezzle over $180,000.
Christina Iannelli, 49, of Sudbury, was indicted by a federal grand jury on seven counts of bank fraud and one count of aggravated identity theft. Iannelli was released on conditions following an initial appearance this morning in federal court in Boston.
According to the indictment, Iannelli was an independent contractor for an interior design firm based in Lexington. Beginning in or about October 2018, Iannelli allegedly prepared dozens of fraudulent invoices with inflated totals derived from inaccurate math, and then issued herself checks for the inflated amounts due from the firm’s checking account. It is also alleged that, beginning in or about July 2019, Iannelli issued herself dozens of additional unauthorized checks. In both instances, Iannelli allegedly used a signature stamp in the name of the firm’s owner to issue the fraudulent checks.
To conceal the fraudulent payments, it is alleged that Iannelli made false entries in the firm’s accounting records. In total, Iannelli allegedly embezzled over $30,000 through inflated compensation checks and over $150,000 through additional unauthorized checks.
The charge of bank fraud provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of $1 million or twice the gross gain or loss from the offense, whichever is greater. The charge of aggravated identity theft provides for a mandatory consecutive sentence of two years in prison, up to one year of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Lexington Police Chief Michael McLean made the announcement today. Valuable assistance was provided by the Sudbury Police Department. Assistant U.S. Attorney James R. Drabick of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
South Carolina Man Is Sentenced to More Than 12 Years for Robbing Three PharmaciesRead the Press Release
CHARLOTTE, N.C. – Christopher Michaud, 43, of Chesterfield, South Carolina, was sentenced to 147 months in prison and three years of supervised release today on robbery and firearms offenses, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney King is joined in making today’s announcement by Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief J. Bryan Gilliard of the Monroe Police Department.
According to court documents and today’s sentencing hearing, between January and April 2020, Michaud robbed three pharmacies and illegally obtained large amounts of prescription opioids and other controlled substances. In two of the robberies, Michaud brandished a firearm. The first robbery occurred on January 26, 2020, during which Michaud walked into the Walgreens pharmacy located at 500 Fincher Street in Monroe, North Carolina, and handed a note to the pharmacy clerk. The note stated that Michaud had a gun and instructed the clerk to hand over specific prescription opioids. The clerk complied and Michaud fled the scene with various prescription medications including Oxycodone pills, generic Xanax pills, and Methadone pills.
On March 4, 2020, Michaud robbed the CVS pharmacy located at 625 East Roosevelt Boulevard in Monroe. Michaud entered the pharmacy at approximately 6:15 p.m. and gave a note to the clerk demanding certain prescription medications and threatening to come back and shoot everyone. During the robbery, Michaud flashed a small handgun at the clerk and demanded that the clerk “make it quick.” The clerk handed Michaud a bag with prescription drugs and Michaud left the store. The third robbery occurred on April 2, 2020, during which Michaud robbed the Walgreens located at 1993 Dickerson Boulevard in Monroe. Once again, Michaud handed the pharmacy clerk a note demanding prescription narcotics and flashed a handgun. The clerk complied, but during the robbery another store employee called 911 to report the incident. Officers with the Monroe Police Department arrested Michaud as he exited the pharmacy. At the time of the arrest, law enforcement recovered the stolen prescription medications and the pistol that Michaud used during the robbery.
On June 23, 2021, Michaud pleaded guilty to three counts of robbery of a business affecting interstate commerce, or “Hobbs Act” robbery, and one count of possession of a firearm during and in relation to a crime of violence.
Michaud is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making this announcement, U.S. Attorney King thanked the FBI and the Monroe Police Department for their investigation of the case.
Assistant United States Attorney Taylor G. Stout, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Smith County Man Guilty of Federal Income Tax ViolationRead the Press Release
TYLER, Texas – A Whitehouse, Texas, man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Anthony D. Klein, 47, pleaded guilty to attempting to evade or defeat tax today before U.S. Magistrate Judge John D. Love.
According to information presented in court, for tax year 2016, Klein filed an IRS Form 1040, U.S. Individual Income Tax Return, with the Internal Revenue Service. On that form, he claimed that he had no taxable income and that he was entitled to credits in the amount of $5,836.00. In fact, he had taxable income of approximately $538,188.07 for tax year 2016. In filing the return, Klein intended to evade and defeat the payment of income tax that was due and owing to the United States.
Klein admitted that the tax loss for tax year 2016 is $194,780; for tax year 2017 is $98,431.00; for tax year 2018 is $74,191.00; and for tax year 2019 is $36,890.00, for a total tax loss of $404,292.00.
Klein faces up to five years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
The case is being investigated by the Internal Revenue Service-Criminal Investigation and prosecuted by Assistant U.S. Attorney Alan R. Jackson.
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Sioux City Man to Federal Prison for Illegal Possession of FirearmsRead the Press Release
A man who illegally possessed firearms was sentenced March 29, 2022, to more than 2 years in federal prison.
Justin Figueroa, 25, from Sioux City, Iowa, received the prison term after a November 22, 2021, guilty plea to being a prohibited person in possession of a firearm.
Evidence at the plea and sentencing hearings showed that from at least 2017 through 2021, Figueroa was an unlawful user of controlled substances, and had been convicted of an April 2020 felony drug offense, both prohibit Figueroa from possessing guns. However, Figueroa possessed five guns from April 2017 through June 2020, specifically, a 5.56/.223 rifle, two Glock 9mm pistols, a 5.7X28mm pistol, and a .38 caliber revolver. Figueroa also admitted that he possessed the guns in connection with his felonious drug trafficking, and that on one occasion traded a gun for a controlled substance. That gun was later found to be part of an attempted murder of a 2-year-old.
Figueroa was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Figueroa was sentenced to 27 months’ imprisonment. He must also serve a 2-year term of supervised release after the prison term. There is no parole in the federal system. Figueroa 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 investigated by the Spencer Police Department, Clay County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, and prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4051. Follow us on Twitter @USAO_NDIA.
Settlement Agreement Reached with Rhode Island Department of Children, Youth and Families to Address Discrimination Against Parents with DisabilitiesRead the Press Release
The United States Attorney’s Office for the District of Rhode Island and the Office for Civil Rights at the Department of Health and Human Services (HHS) announced today that the Rhode Island Department of Children, Youth and Families (DCYF) has agreed to resolve alleged violations of the Americans with Disabilities Act and Section 504 of the Rehabilitation Act of 1973. DCYF is a state agency responsible for child welfare services, juvenile corrections, and children’s behavioral health services.
The investigation was opened after the U.S. Attorney’s Office and HHS received multiple complaints from parents with disabilities. Three complaints alleged that DCYF failed to provide sign language interpreter services to parents who are deaf during DCYF child protection investigations, including when DCYF removed their children from their homes. A fourth complaint alleged that DCYF based conclusions about the parental capacity on a parent’s disabilities (epilepsy and intellectual disabilities) and failed to provide reasonable modifications to the parent’s plan. The U.S. Attorney’s Office and HHS investigated and concluded that DCYF may not have taken appropriate steps to ensure for effective communication with parents and caretakers who are deaf or hard of hearing. Additionally, the investigation indicated that DCYF lacked sufficient policies, procedures, and related training to ensure that DCYF fulfills its obligations under federal civil rights laws to ensure that individuals with disabilities have an equal opportunity to access to DCYF’s services because of disability.
Under the terms of the agreement, DCYF will, among other things, create and implement a policy on how it will communicate effectively with individuals who have communication disabilities including individuals who are deaf and hard of hearing. In addition, it will ensure sufficient contracts with qualified interpreting services, provide training to all personnel on federal civil rights laws and accommodations for individuals with disabilities, designate an ADA coordinator, and report quarterly for three years.
“Eliminating disability discrimination is important in any context,” said U.S. Attorney Zachary A. Cunha, “but nowhere more so than when interactions that affect the integrity and unity of families are on the line. We are pleased that, as a result of today’s settlement, DYCF is committing to meet its obligations to remove barriers to full and appropriate service in these critical encounters, regardless of disability.”
“Recipients of federal financial assistance, like state agencies that provide child welfare and other services, have a fundamental responsibility under law to take necessary steps to eliminate unnecessary barriers for those who are deaf or hard of hearing,” said OCR Director Lisa Pino. “This agreement sends an important message to organizations to examine and update their policies, procedures, and training programs to fulfil their obligations to those that they serve."
This matter was handled jointly by Assistant United States Attorney Amy R. Romero and HHS Investigator Timothy Stark.
The U.S. Attorney’s Office for the District of Rhode Island is committed to investigating alleged violations of the Americans with Disabilities Act. The Department of Justice has a number of publications available to assist entities in complying with the ADA. For more information on the ADA and to access these publications, visit www.ada.gov or call the Justice Department’s toll-free ADA information Line at 800-514-0301 or 800-514-0383 (TTY).
Any member of the public who wishes to file a complaint alleging a public entity or public accommodation in Rhode Island is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at https://www.justice.gov/usao-ri/civil-rights-enforcement or 401-709-5000.
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Salvadoran National Pleads Guilty to Illegal ReentryRead the Press Release
BOSTON - A Salvadoran national residing in Lynn pleaded guilty today to illegally reentering the United States after deportation.
Inmar Samuel Aguiluz-Palacios, 29, pleaded guilty to one count of illegal reentry before U.S. Senior District Court Judge William G. Young who scheduled sentencing for July 19, 2022. Aguiluz-Palacios was charged on Feb. 3, 2022.
According to court documents, Aguiluz-Palacios was deported on three previous occasions, in May 2004, June 2015 and December 2015. Sometime after his 2015 removal, Aguiluz-Palacios illegally returned to the United States. On Aug. 15, 2021, Aguiluz-Palacios was arrested in Lynn for assault with a dangerous weapon. In January 2022, Aguiluz-Palacios was convicted of assault and sentenced to nine months in state prison.
The charge of illegal reentry provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. Aguiluz-Palacios will be subject to deportation proceedings upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations in Boston made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Rollins’ Major Crimes Unit is prosecuting the case.
Roxbury Man Pleads Guilty to Drug and Gun OffensesRead the Press Release
BOSTON – A Roxbury man pleaded guilty yesterday in federal court in Boston to gun and drug offenses.
Omari Peterson, 39, pleaded guilty to one count of distribution and possession with intent to distribute cocaine and cocaine base (crack cocaine) and two counts of being a felon in possession of firearms and ammunition. U.S. District Court Douglas P. Woodlock scheduled sentencing for Sept. 7, 2022.
In January 2021, an investigation began into drug trafficking activities by Peterson in the Boston area. On Feb. 18, 2021, Peterson sold crack cocaine and cocaine to a cooperating witness. A search of Peterson’s apartment on March 5, 2021 recovered two firearms, a Sig Sauer P220 pistol and a Ruger LCP .380 pistol, along with 136 rounds of various caliber ammunition. During a subsequent search of Peterson’s storage unit in Quincy on March 6, 2021, six additional firearms and 67 rounds of various caliber ammunition were also seized.
The charge of distribution and possession with intent to distribute cocaine and cocaine base provides for a sentence of up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of up to $1 million. The charges of being a felon in possession of firearms and ammunition provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Boston Police Acting Commissioner Gregory Long; Randolph Police Chief Anthony Marag; and Quincy Police Chief Paul Keenan made the announcement. The investigation was led by FBI’s Metro Boston Gang Task Force. Assistant U.S. Attorney John T. Dawley of Rollins’ Organized Crime & Gang Unit 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.
Rochester Man Going to Prison for Selling Ghost GunsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Nijesh Gurung, 20, of Rochester, NY, who was convicted of manufacturing and dealing in firearms without a license, was sentenced to serve 12 months in prison by U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Cassie Kocher, who handled the case, stated that between July 27 and September 28, 2020, Gurung sold five Personal Made Firearms, aka “ghost guns,” to an undercover officer. Gurung sold the firearms, which had no known firearm manufacturer, model, or serial number, for as little as $1,100 and as much as $1,600 each. On October 1, 2020, investigators executed a search warrant at Gurung’s Tacoma Street residence and recovered an unknown caliber semiautomatic pistol, with no serial number, 29 rounds of ammunition, and other parts and accessories and tools used in the production of ghost guns.
The sentencing is the result of an investigation by the Bureau of Alcohol Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division, and the Ontario County Sheriff’s Department, under the direction of Interim Sheriff Philip Povero.
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Renton, Washington, resident charged federally for huge stash of drugs and gunsRead the Press Release
Seattle – A 43-year-old Renton, Washington, man was transferred to federal custody today and charged with drug and gun crimes, announced U.S. Attorney Nick Brown. David Christopher Pitts was initially arrested in December 2021, following an undercover investigation of his drug trafficking activities. Pitts appeared today before a U.S. Magistrate Judge and was ordered detained pending further hearings.
According to records filed in the case, in November and December 2021, a person working with law enforcement purchased fentanyl from Pitts at his residence in Renton. After obtaining a search warrant, officers with the Seattle Police Department SWAT team arrested Pitts without incident and searched his residence. In the main bedroom, officers found three different handguns – one of them stolen. In the closet of the bedroom there was a hard-shell case containing methamphetamine, fentanyl, and Xanax bars. In a safe in that same closet investigators found heroin, cocaine, suboxone, ketamine, fentanyl pills, and medical grade fentanyl. There was also more than $55,000 in cash.
In a second bedroom, which Pitts had been using as a storage space, officers found fifteen handguns, four semiautomatic assault rifles, two bolt action rifles, and a 12-guage shotgun. Throughout the residence, there were numerous items that appeared to be stolen goods, such as power tools, computer equipment, laptops, and camera gear. Many of these items are often traded for drugs.
Due to the amount of drugs involved in this case, possession of controlled substances with intent to distribute is punishable by a mandatory minimum 10 years in prison. Possession of a firearm in furtherance of a drug trafficking crime is punishable by a consecutive 5-year prison term in addition to any term imposed on the drug crime.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Seattle Police Department as part of the FBI’s Violent Crime, Gang and Organized Crime Task Force.
The case is being prosecuted by Assistant United States Attorney Erin H. Becker.
Rensselaer Man Pleads Guilty to Pandemic-Related Fraud ChargesRead the Press Release
ALBANY, NEW YORK – Hector J. Sanchez, age 30, of Rensselaer, New York, pled guilty today to defrauding pandemic-related unemployment insurance programs administered by the New York State Department of Labor (NYSDOL). Sanchez also admitted to fraudulently obtaining a Paycheck Protection Program (PPP) loan.
The announcement was made by United States Attorney Carla B. Freedman; Ketty Larco-Ward, Inspector in Charge of the Boston Division of the United States Postal Inspection Service (USPIS); Jonathan Mellone, Special Agent in Charge, New York Region, U.S. Department of Labor, Office of Inspector General (USDOL-OIG); and Matthew Scarpino, Acting Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
Sanchez pled guilty to mail fraud and aggravated identity theft with respect to his unemployment insurance fraud scheme. He admitted to soliciting the personal identifying information of other people on social media and using the information to submit false unemployment insurance applications to NYSDOL. He also admitted that he fraudulently obtained a PPP loan by falsely claiming to run a car wash business.
Sanchez agreed to pay restitution in the amount of $131,560 to the State of New York and $12,500 to the PPP lender.
The mail fraud convictions carry maximum terms of 20 years in prison, fines of up to $250,000, and a term of supervised release of up to 3 years. The aggravated identity theft conviction carries a mandatory term of 2 years in prison, to be imposed consecutively to any other term of imprisonment. Sanchez is scheduled to be sentenced on July 25, 2022 by United States District Judge Mae A. D’Agostino. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The case was investigated by USPIS, USDOL-OIG, and HSI, with assistance from the NYSDOL Office of Special Investigations and the Albany Police Department. The case is being prosecuted by Assistant U.S. Attorney John T. Chisholm.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Peoria Man Convicted of Possession of a Firearm by a FelonRead the Press Release
PEORIA, Ill. – A federal jury returned a guilty verdict today against Vincent Nichols, Jr., 34, of the 3600 block of West Hedge Hill Lane, in Peoria, Illinois, for possession of a firearm by a felon. Sentencing for Nichols has been scheduled for July 28, 2022 at the federal courthouse in Peoria, Illinois.
Over two days of testimony, the government presented evidence to establish that on September 23, 2020, Nichols was a passenger in a car being driven by an individual with an outstanding arrest warrant. Peoria Police Officers conducted a traffic stop of the vehicle and arrested the driver. Police then searched the car and asked each of three additional occupants to step out. During the search, police located a 9mm handgun directly on top of the seat where Nichols had been sitting. The gun was loaded with 15 rounds of live ammunition in the magazine and one round in the chamber.
In pretrial filings, the government had established that Nichols had previously been convicted of a felony offense punishable by a term of imprisonment exceeding one year.
Nichols remains in the custody of the U.S. Marshals Service. At sentencing, Nichols faces statutory penalties of up to 10 years imprisonment, a $250,000 fine, and up to a three-year term of supervised release. Should Nichols be deemed a career criminal, his sentencing range would increase to 15 years to life imprisonment.
The investigation was conducted by the Peoria Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Ronald L. Hanna and Sarah Holst Schryer represented the government at trial.
Penn Hills Man Pleads Guilty to Possessing FentanylRead the Press Release
PITTSBURGH - A resident of Penn Hills, Pennsylvania, pleaded guilty in federal court to a charge of possession with intent to distribute 40 grams or more of fentanyl, United States Attorney Cindy K. Chung announced today.
Herbert Lee Walker, 27, pleaded guilty to one count before Senior United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that on October 25, 2019, detectives with the Allegheny County Homicide Unit went to the residence Walker shared with his paramour. During the execution of a search warrant at the residence, investigators recovered approximately 139 bricks, or nearly 7,000 stamp bags, of heroin and fentanyl, from a suitcase that had Walker’s name on it, and paperwork for Walker inside of it. Investigators also recovered approximately $12,000 in cash, a firearm, and ammunition from the basement. A state arrest warrant was issued for Walker. On February 13, 2020, Pittsburgh Police officers attempted to arrest Walker in connection with that warrant on Baum Boulevard. Walker fled in a vehicle, striking two marked police cars and driving the wrong way down a one-way street at speeds approaching 100 miles per hour.
Judge Schwab scheduled sentencing for July 20, 2022, at 10:30 AM The law provides for a 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.
Pending sentencing, the court ordered that the defendant remain detained.
Assistant United States Attorney Douglas C. Maloney is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, Allegheny County Police Department, and Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Walker.
Penn Hills Man Pleads Guilty in Multi-Year Bank Fraud SchemeRead the Press Release
PITTSBURGH, PA - A resident of Penn Hills, PA, pleaded guilty in federal court to charges of conspiracy to commit bank fraud and uttering counterfeit securities, United States Attorney Cindy K. Chung announced today.
Daquan Jones, age 27, pleaded guilty to three counts before Chief United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that Jones participated in a multi-year conspiracy involving the deposit of counterfeit checks into banks in the Pittsburgh area. Jones’ involvement involved depositing counterfeit checks and withdrawing money from bank accounts that was made available as a result of the counterfeit checks. .
Sentencing in this matter has not yet been scheduled. The law provides for a total sentence of 50 years in prison, a fine of $1,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court ordered the defendant released on an unsecured bond.
Assistant United States Attorney Douglas C. Maloney is prosecuting this case on behalf of the government.
The United States Postal Inspectors and Department of Homeland Security/Homeland Security Investigations conducted the investigation that led to the prosecution of Daquan Jones.
Oswego County Man Sentenced to 13 Years for Child Pornography CrimesRead the Press Release
SYRACUSE, NEW YORK – Jay Elhage, age 39, of Palermo, New York, was sentenced today to serve 13 years in prison for distributing, receiving, attempting to receive, and possessing child pornography. The announcement was made by United States Attorney Carla B. Freedman, Matthew Scarpino, Acting Special Agent in Charge, Homeland Security Investigations (HSI), Buffalo, New York Field Office, and New York State Police Superintendent Kevin P. Bruen.
In addition to the 13-year term of imprisonment, Senior United States District Judge Thomas J. McAvoy also imposed a 15-year term of supervised release to begin after Elhage is released from prison, ordered him to pay $15,000 in restitution to his victims, and imposed $600 in special assessments. Elhage also will be required to register as a sex offender upon his release from prison.
During a 3-day jury trial in December 2021, the evidence established that Elhage used an online peer-to-peer file-sharing program to distribute, receive and attempt to receive child pornography and that he possessed thousands of child pornography images and videos on three devices found in the bedroom of his home.
This case was investigated by U.S. Homeland Security Investigations (HSI), and the New York State Police-Computer Crimes Unit and was prosecuted by Assistant U.S. Attorneys Geoffrey J.L. Brown and Michael D. Gadarian as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal 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 https://www.justice.gov/psc.
Orleans Parish Man Pleads Guilty to Federal Drug Trafficking ChargesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on March 29, 2022 ANDREW PAYTON, age 48, a resident of New Orleans, Louisiana, pled guilty to Count 1 of a grand jury indictment, charging him with possession with the intent to distribute 500 grams or more of cocaine, in violation of federal law.
These charges stem from an investigation by the United States Drug Enforcement Administration, the Louisiana State Police, the New Orleans Police Department, and the St. Tammany Parish Sheriff’s Office into the illegal distribution of drugs that were being brought into both Orleans and St. Tammany Parishes back in 2019 from the Houston area.
Based on his guilty plea, PAYTON faces a mandatory minimum sentence of not less than five years and not more than forty years in prison, up to a fine of $5,000,000.00 in fines, at least four years of supervised release, and a mandatory special assessment fee of $100.00. PAYTON is scheduled to be sentenced on June 28, 2022.
The case was investigated by the United States Drug Enforcement Administration, the Louisiana State Police, the New Orleans Police Department, and the St. Tammany Parish Sheriff’s Office. Assistant United States Attorney Maurice Landrieu is in charge of the prosecution.
Ocala Man Arrested for Lying on Federal Firearm Form at Gun DealerRead the Press Release
Ocala, Florida –United States Attorney Roger B. Handberg announces the arrest of Marques Young (22, Ocala) on a criminal complaint charging him with one count of knowingly causing a Federal Firearms Licensee (FFL) to maintain false information in its official records. If convicted, Young faces up to five years in federal prison.
According to the complaint, between October 27, 2020, and March 9, 2022, Young purchased multiple handguns and a rifle from a Marion County gun dealer. Many of the firearms were identical. While purchasing the firearms, Young certified on each ATF Form 4473 (Firearm Transaction Record) that he was the “actual transferee/buyer” of the firearms. Young then quickly resold the firearms. Many of the firearms have since been recovered from Marion County crime scenes. For example, on March 3, 2022, Young purchased a Taurus pistol and signed an ATF Form 4473 certifying that he was the actual transferee/buyer. However, video from the transaction showed that Young walked to the back of the store to get cash from a convicted felon to pay for the firearm. Law enforcement found the convicted felon on March 23, 2022, with the Taurus pistol that Young had purchased.
A criminal complaint is merely an allegation that a defendant has committed a federal criminal offense. Every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the Ocala Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Hannah Nowalk.
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.
Nine Defendants Indicted on Federal Civil Rights Conspiracy and Freedom of Access to Clinic Entrances Act (FACE Act) Offenses for Obstructing Patients and Providers of a Reproductive Health Services FacilityRead the Press Release
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and U.S. Attorney Matthew M. Graves for the District of Columbia today announced a two-count indictment charging Lauren Handy, 28, of Alexandria, Virginia; Jonathan Darnel, 40, of Arlington, Virginia, Jay Smith, 32, of Freeport, New York; Paulette Harlow, 73, of Kingston, Massachusetts; Jean Marshall, 72, of Kingston, Massachusetts; John Hinshaw, 67, of Levittown, New York; Heather Idoni, 61, of Linden, Michigan; William Goodman, 52, of the Bronx, New York; and Joan Bell, 74, of Montague, New Jersey, with federal civil rights offenses in connection with an alleged reproductive healthcare clinic invasion in Washington, D.C., on Oct. 22, 2020. The defendants were charged with conspiracy against rights and a FACE Act offense.
The indictment returned by a federal grand jury alleges that the nine defendants engaged in a conspiracy to create a blockade at the reproductive health care clinic to prevent the clinic from providing, and patients from receiving, reproductive health services. According to the indictment, as part of the conspiracy, Smith, Harlow, Marshall, Hinshaw, Idoni, Goodman and Bell traveled to Washington, D.C., from various northeast and midwestern states, to participate in a clinic blockade that was directed by Handy and was broadcast on Facebook by Darnel. According to the indictment, Handy, Smith, Harlow, Marshall, Hinshaw, Idoni, Goodman and Bell forcefully entered the clinic and set about blockading two clinic doors using their bodies, furniture, chains and ropes. Once the blockade was established, Darnel live-streamed footage of his co-defendants’ activities. The indictment also alleges that the nine defendants violated the FACE Act by using a physical obstruction to injure, intimidate and interfere with the clinic’s employees and a patient, because they were providing or obtaining reproductive health services.
If convicted of the offenses, the defendants each face up to a maximum of 11 years in prison, three years of supervised release and a fine of up to $350,000.
The case is being investigated by the FBI’s Washington, D.C. Field Office. The case is being prosecuted by the Justice Department’s Civil Rights Division and the Public Corruption and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia. The U.S. Attorneys’ Offices for the District of New Jersey, District of Massachusetts, Eastern District of Michigan, Eastern District of New York and Southern District of New York; and FBI Field Offices in Newark, New York City, Boston and Detroit provided valuable assistance.
A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Nine Defendants Indicted on Federal Civil Rights Conspiracy and Freedom of Access to Clinic Entrances Act (FACE Act) Offenses for Obstructing Patients and Providers of a Reproductive Health Services FacilityRead the Press Release
WASHINGTON – Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division and U.S. Attorney Matthew M. Graves for the District of Columbia today announced a two-count indictment charging Lauren Handy, 28, of Alexandria, Virginia; Jonathan Darnel, 40, of Arlington, Virginia, Jay Smith, 32, of Freeport, New York; Paulette Harlow, 73, of Kingston, Massachusetts; Jean Marshall, 72, of Kingston, Massachusetts; John Hinshaw, 67, of Levittown, New York; Heather Idoni, 61, of Linden, Michigan; William Goodman, 52, of Bronx, New York; and Joan Bell, 74, of Montague, New Jersey, with federal civil rights offenses in connection with an alleged reproductive health care clinic invasion in Washington, D.C., on Oct. 22, 2020. The defendants were charged with conspiracy against rights and a FACE Act offense.
The indictment, returned by a federal grand jury in the District of Columbia, alleges that the nine defendants engaged in a conspiracy to create a blockade at the reproductive health care clinic to prevent the clinic from providing, and patients from receiving, reproductive health services. According to the indictment, as part of the conspiracy, Smith, Harlow, Marshall, Hinshaw, Idoni, Goodman and Bell traveled to Washington, D.C. from various northeast and midwestern states, to participate in a clinic blockade that was directed by Handy and was broadcast on Facebook by Darnel. According to the indictment, Handy, Smith, Harlow, Marshall, Hinshaw, Idoni, Goodman and Bell forcefully entered the clinic and set about blockading two clinic doors using their bodies, furniture, chains and ropes. Once the blockade was established, Darnel live-streamed footage of his co-defendants’ activities. The indictment also alleges that the nine defendants violated the FACE Act by using a physical obstruction to injure, intimidate and interfere with the clinic’s employees and a patient, because they were providing or obtaining reproductive health services.
If convicted of the offenses, the defendants each face up to a maximum of 11 years in prison, three years of supervised release, and a fine of up to $350,000.
The case is being investigated by the FBI’s Washington Field Office. The case is being prosecuted by the Justice Department’s Civil Rights Division and the Public Corruption and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia. The U.S. Attorneys’ Offices for the District of New Jersey, District of Massachusetts, Eastern District of Michigan, Eastern District of New York, and Southern District of New York; and FBI Field Offices in Newark, New York City, Boston, and Detroit provided valuable assistance.
An indictment is merely an allegation of criminal conduct, and not evidence of guilt. The defendants are presumed innocent unless proven guilty.
Nigerian “Prince” Sentenced for Federal Fraud ViolationsRead the Press Release
SHERMAN, Texas – A Nigerian man has been sentenced to federal prison for federal fraud violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Sobanke Idris Sunday Adereti, 24, pleaded guilty on Oct. 25, 2021, to passport fraud and attempted bank fraud, and was sentenced to 33 months in federal prison today by U.S. District Judge Jeremy D. Kernodle.
According to court documents, in March 2021, Adereti presented a false passport and a falsely procured certified check when trying to open a bank account in Flower Mound, Texas. The check was purchased by a fraud victim who was induced into sending money to Adereti, falsely known as “Robinson Elijah.” He was likely acting as a money mule to cash the victim’s checks. When Adereti was arrested, he had additional passports and bank statements in other names in his possession. Investigators determined that Adereti was also connected to scams related to business email compromise fraud and other government program fraud. Additionally, evidence showed that Adereti was the son of a Nigerian traditional ruler and entered the United States on a visitor’s visa in 2018, which has since expired.
“Scams to steal money are around every corner,” said U.S. Attorney Brit Featherston. “Thanks to the keen eye of bank officials, Adereti was apprehended. Unfortunately, many of these crimes target our vulnerable elder population. It is up to all of us to share this awareness and look out for our greatest generation.”
A federal grand jury returned an indictment charging Adereti with federal violations on April 7, 2021.
This case is part of the Department of Justice’s Elder Justice Initiative. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 10am-6pm Eastern Time, Monday-Friday. English, Spanish, and other languages are available.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
This case was investigated by the Diplomatic Security Service for the U.S. Department of State, the Flower Mound Police Department, the U.S. Small Business Administration – Office of Inspector General, the United States Secret Service, with assistance from the Federal Bureau of Investigation and was prosecuted by the United States Attorney’s Office for the Eastern District of Texas.
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New Jersey Man Convicted of Laundering Millions from Fraud Schemes Targeting Victims Across the United States Perpetrated by Ghana-Based Criminal EnterpriseRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that FREEMAN CELVIN, a/k/a “Celvin Freeman,” was convicted today of all seven criminal counts he was charged with for his participation in a fraud and money laundering conspiracy based in the Republic of Ghana (“Ghana”) involving the theft of millions of dollars. CELVIN was convicted after a jury trial before U.S. District Judge Jed S. Rakoff which lasted approximately one week. CELVIN was previously arrested on February 17, 2021 and has been detained since his arrest.
U.S. Attorney Damian Williams said: “As today’s jury verdict reflects, Freeman Celvin used an auto business in New Jersey as a front to launder millions of dollars in fraud proceeds to online scam artists in Ghana. The online scams perpetrated by Celvin’s partners in Ghana were lucrative and callous, as they targeted vulnerable, elderly men and women and tricked them into transferring their life savings to the defendant, who then took his laundering fee and sent the money abroad. Together with our law enforcement partners, we will continue to zealously prosecute online scammers abroad and the U.S.-based money launderers they work in order to protect American victims from these scams.”
As reflected in the Indictment, public filings, and the evidence presented at trial:
From in or about 2014 through in or about February 2021, a criminal enterprise (the “Enterprise”) based in Ghana committed a series of business email compromises and romance scams against individuals and businesses located across the United States, including in the Southern District of New York. First, the objective of the Enterprise’s business email compromise fraud scheme was to trick and deceive businesses into wiring funds into accounts controlled by the Enterprise through the use of email accounts that “spoofed” or impersonated employees of a victim company or third parties engaged in business with a victim company. Second, the Enterprise conducted the romance scams by using electronic messages sent via email, text messaging, or online dating websites that deluded victims, many of whom were vulnerable older men and women who lived alone, into believing the victim was in a romantic relationship with a fake identity assumed by members of the Enterprise. Once members of the Enterprise had gained the trust of the victims using the fake identity, they used false pretenses to cause the victims to wire money to bank accounts the victims believed were controlled by their romantic interests, when in fact the bank accounts were controlled by members of the Enterprise like CELVIN.
CELVIN received fraud proceeds from victims of the Enterprise in personal bank accounts as well as business bank accounts for his company Freeman Autos LLC, a company purportedly involved in, among other things, automobile sales. The defendant also received fraud proceeds from other U.S.-based members of the Enterprise either by wire transfer or cash deliveries. Once CELVIN received fraud proceeds, he took out a percentage fee and then withdrew, transported, and laundered those fraud proceeds to other members of the Enterprise abroad in Ghana. The defendant primarily laundered the fraud proceeds by using the proceeds to purchase automobiles and other goods and shipping those products to Ghana and elsewhere. The defendant’s transactions had the appearance of legitimate business transactions when, in fact, the products had been purchased using the proceeds of fraud schemes. This trade-based money laundering scheme was designed to obscure the origin of the fraud proceeds as well as the identity of the ultimate beneficiaries of these schemes.
From in or about 2016 through in or about 2021, CELVIN controlled more than eight bank accounts that had deposits that totaled over approximately $5.7 million during that time period. A vast majority of the deposits consisted of large wire transfers and check or cash deposits from U.S.-based individuals and entities that were victims of fraud schemes of the Enterprise.
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CELVIN, 48, of East Orange, New Jersey, was convicted by a jury of one count of conspiracy to commit wire fraud, one count of wire fraud, and one count of conspiracy to commit money laundering, which each carry a maximum sentence of 20 years in prison; one count of receipt of stolen money, which carries a maximum sentence of 10 years in prison; one count of conspiracy to receive stolen money, one count of conspiracy to operate an unlicensed money transmitting business, and one count of operating an unlicensed money transmitting business, each of which carries a maximum sentence of five years in prison.
CELVIN is scheduled to be sentenced before Judge Rakoff on July 20, 2022 at 4:00 p.m.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the FBI.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Sagar K. Ravi, Katherine C. Reilly, and Mitzi Steiner are in charge of the prosecution.
Mortgage Short Sale Negotiator Sentenced for Defrauding Mortgage LendersRead the Press Release
BOSTON – The principal and co-founder of a mortgage short sale assistance company was sentenced yesterday in connection with defrauding mortgage lenders and investors out of nearly $500,000 in proceeds from about 90 short sale transactions.
Gabriel T. Tavarez, 40, of Westminster, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to seven months in prison and two years of supervised release. Tavarez was also ordered to pay restitution in the amount of $475,458. In June 2020, Tavarez pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft.
Tavarez founded and co-operated Loss Mitigation Services, LLC, a short sale assistance company in North Andover, with co-conspirator Jaime L. Mulvihill. A short sale occurs where a mortgage debt on a home is greater than the home’s market value—such a mortgage loan is commonly referred to as being “under water”—and a mortgage lender agrees to a sale of the home even though it will take a loss on the transaction. Loss Mitigation Services, purportedly acting on behalf of homeowners whose mortgage loans were under water, negotiated with mortgage lenders for approval of short sales in lieu of foreclosure. Mortgage lenders typically forbid short sale negotiators, such as Loss Mitigation Services, from receiving any proceeds of a short sale.
From 2014 to 2017, Tavarez and Mulvihill, directly or through their employees, falsely claimed to homeowners, real estate agents and closing attorneys that mortgage lenders had agreed to pay Loss Mitigation Services fees known as “seller paid closing costs” or “seller concessions” from the proceeds of the short sales. In reality, the mortgage lenders had never approved Loss Mitigation Services to receive such fees. When the short sales closed, at the instruction of Tavarez, Mulvihill, or others working with them, settlement agents paid Loss Mitigation Services the fees, which typically were 3% of the short sale price above and beyond any fees to real estate agents, closing attorneys and others involved in the transaction. To deceive mortgage lenders about the true nature of the fees, Tavarez or Mulvihill filed, or caused others to file, false short sale transaction documents with mortgage lenders, including altered settlement statements and fabricated contracts and mortgage loan preapproval letters. In addition, Tavarez created, or directed others to create, fake letters from mortgage brokers claiming that the brokers had approved buyers for financing, in order to convince mortgage lenders to approve the additional fees.
Mulvihill pleaded guilty to his role in the conspiracy and was sentenced in February 2020 to six months in prison.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Robert Manchak, Special Agent in Charge, Federal Housing Finance Agency, Office of Inspector General, Northeast Region; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement. Assistant U.S. Attorney Brian M. LaMacchia of Rollins’ Affirmative Civil Enforcement Unit prosecuted the case.
Montgomery Tax Preparer Sentenced to 37 Months in Prison and Fined $100,000.00 for Filing False ReturnsRead the Press Release
Montgomery, Ala. – Today, United States Attorney Sandra J. Stewart and Special Agent in Charge James E. Dorsey with IRS Criminal Investigation, Atlanta Field Office, announced that a Montgomery tax preparer was sentenced for aiding and assisting in the preparation of false income tax returns. On Monday, March 28, 2022, Alisaya Danita Thompson-Dixon, 44, was sentenced to 37 months in prison to be followed by 12 months of supervised release. There is no parole in the federal system. In addition to her prison sentence, Thompson-Dixon was also ordered to pay a fine of $100,000.00 and $21,793.00 in restitution to the IRS.
According to her plea agreement and other court records, Ms. Thompson-Dixon operated a Montgomery tax preparation business under the name Magic Tax Service. In June of 2021, a grand jury returned an indictment against Ms. Thompson-Dixon charging her with numerous counts of aiding and assisting in the filing of false returns for clients from 2015 through 2017. During her plea hearing on October 14, 2021, Ms. Thompson-Dixon specifically admitted to assisting in filing false tax returns on at least two occasions. First, on February 15, 2016, Ms. Thompson-Dixon aided a client in filing a tax return that falsely claimed business income in the amount of $2,150.00 while claiming expenses in the amount of $67,107.00. Ms. Thompson-Dixon knew the client was not entitled to claim any business income or expenses and this deception resulted in a loss of $11,294.00 to the IRS. In addition, Ms. Thompson-Dixon also admitted to aiding a client in filing an illegal tax return on January 16, 2018. In similar fashion, she claimed false business revenue and expenses for a client that resulted in a tax loss of $10,499.00.
Far too many tax preparers attempt to make money by putting false information on the returns of others,” stated U.S. Attorney Stewart. “In doing so, they are not only committing a crime, but they are also subjecting their customers to potential future scrutiny by the IRS. Hopefully, Ms. Thompson-Dixon’s sentence will serve as a warning to other tax return preparers who are considering schemes like these. I applaud the Internal Revenue Service for their efforts to identify tax fraud like this and hold the offenders accountable.” U.S. Attorney Stewart also encourages all taxpayers to review their returns and confirm that they recognize the items on them. If a tax preparer refuses to let you examine your tax return before it is filed, or if you review your tax return and see a business that is not yours or expenses you do not recognize, ask for clarification or seek a second opinion from a different return preparer. For additional guidance, see the IRS fact sheet on their website at https://www.irs.gov/pub/irs-news/fs-08-10.pdf.
“Yesterday’s sentencing of Thompson-Dixon is further evidence that tax crimes do not pay in the long run,” said Special Agent in Charge Dorsey. “As we continue the 2022 tax filing season, those who might consider preparing false tax returns should be aware of the negative consequences as evidenced in this sentencing. The sentencing of Thompson-Dixon emphasizes, the Internal Revenue Service and U.S. Attorney’s Office will continue aggressive pursuit of those who attempt to defraud America’s tax system.”
This case was investigated by the Internal Revenue Service’s Criminal Investigations Division. Assistant United States Attorney Megan Kirkpatrick prosecuted the case.
Montgomery Man Pleads Guilty to Bank Robbery and Discharging a Firearm While Committing the CrimeRead the Press Release
Montgomery, Alabama – On Monday, March 28, 2022, John Adam Vinson, Jr., 32, from Montgomery, Alabama, pleaded guilty to bank robbery charges and discharging a firearm while committing the crime, announced U.S. Attorney Sandra J. Stewart.
According to the plea agreement and other court records, on December 14, 2020, Vinson entered the Regions Bank branch located near Eastdale Mall in Montgomery. Once inside, Vinson pulled out a handgun and fired a shot into the desk at an empty teller station. A bank employee in one of the offices heard the shot and came out of her office. Vinson immediately grabbed her and moved her to the door, which accesses the teller counters. When Vinson realized the employee could not open the door, he jumped over the counter and began opening the teller drawers. Vinson put money from the drawers into a bag, jumped back over the teller counter, and ran out of the bank. Vinson was spotted by a responding Montgomery Police officer across the street from the bank and was eventually arrested.
Vinson was indicted by a federal grand jury in August of 2021 for bank robbery, armed bank robbery, and discharging a firearm during a federal crime of violence. A sentencing hearing will take place in the coming months. Because of the nature of his crimes, Vinson is facing a sentence ranging from 20 years to life in prison. There is no parole in the federal system.
This case was investigated by the Montgomery Police Department, the Federal Bureau of Investigation (FBI), and the Alabama Law Enforcement Agency (ALEA). Assistant U.S. Attorney Mark Andreu is prosecuting the case.
Monmouth, Illinois, Man Sentenced to 112 Months in Prison for Possession of Methamphetamine with Intent to DistributeRead the Press Release
ROCK ISLAND, Ill. – A Monmouth, Illinois, man, Christopher P. Shultz, 50, of the 500 block of East 11th Avenue, was sentenced on March 29, 2022, to 112 months’ imprisonment, to be followed by five years of supervised release, for possession of methamphetamine with intent to distribute.
According to court documents, Shultz was arrested during a traffic stop on July 7, 2019, in Gulfport, Illinois, and was found to be in possession of than 80 grams of pure methamphetamine, a Schedule II controlled substance.
Shultz was indicted in August 2020 and pleaded guilty in November 2021. The statutory penalties for possession of methamphetamine with intent to distribute are up to life imprisonment, up to a $10,000,000 fine, and up to a life term of supervised release.
The Drug Enforcement Administration and Gulfport Police Department investigated the case. Assistant U.S. Attorney Grant Thomas Hodges represented the government in the prosecution.
Methamphetamine trafficking sends Missoula woman to prison for four yearsRead the Press Release
MISSOULA — A Missoula woman who admitted to trafficking methamphetamine and heroin in the community was sentenced today to four years in prison, to be followed by four years of supervised release, U.S. Attorney Leif M. Johnson said.
Sadie Marie Todd, 45, pleaded guilty in December 2021 to possession with intent to distribute meth and heroin.
U.S. District Judge Dana L. Christensen presided. Judge Christensen also ordered the forfeiture of $6,895 in U.S. currency.
The government alleged in court documents that on May 11, 2021, Missoula Police Department officers searched Todd’s residence pursuant to a state warrant. Officers recovered meth, heroin, and drug paraphernalia. Todd admitted during an interview that she had the drugs and paraphernalia in her residence.
Assistant U.S. Attorney Tara J. Elliott prosecuted the case, which was investigated by the Missoula High Intensity Drug Trafficking Area Task Force.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Marrero Man Sentenced for Conspiring to Stage Automobile Accidents in Order to Defraud Insurance and Trucking CompaniesRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced today that DEWAYNE COLEMAN (“COLEMAN”), age 22, of Marrero, Louisiana, was sentenced today for Conspiracy to Commit Mail Fraud, in violation of Title 18, United States Code, Section 371, arising out of staged automobile accidents with tractor-trailers occurring in New Orleans.
According to documents filed in federal court, COLEMAN, along with his co-defendants, conspired to commit mail fraud in connection with a staged accident occurring on September 6, 2017. Thus far, the total number of defendants convicted in “Operation Sideswipe” is thirty-two (32).
COLEMAN admitted that on September 6, 2017, on the I-10 near the Almonaster exit, he was a passenger in co-defendant Erica Lee’s 2015 RAV4 being driven by their former co-defendant, when he intentionally crashed into a tractor-trailer owned by Averitt Express. After the staged accident, the driver exited the RAV4 and told Erica Lee to get behind the wheel of the RAV4 to make it appear that Erica Lee was driving the vehicle at the time of the staged accident. The defendants contacted the NOPD and falsely claimed that Erica Lee was the driver at the time of the collision. COLEMAN retained counsel and made a claim for damages. The total settlement for the Averitt accident was $30,000.
On March 26, 2019, COLEMAN provided false testimony in depositions taken in conjunction with the Thompson Lawsuit. In his deposition, COLEMAN lied about the September 6, 2017 accident including, but not limited to, who was driving the RAV4 and the extent of their injuries.
United States District Judge Sarah S. Vance sentenced COLEMAN to (12) twelve months of incarceration, followed by (3) three years supervised release, $ 121,076 in restitution, 100 hours of community service and a mandatory $100 special assessment fee.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Federal Bureau of Investigation, Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit; Assistant U.S. Attorney Edward J. Rivera; Assistant U.S. Attorney Maria Carboni; and Assistant U.S. Attorney Brandon Long.
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Marlborough Man Pleads Guilty to Child ExploitationRead the Press Release
BOSTON – A Marlborough man pleaded guilty today in federal court in Boston to child exploitation offenses.
Philip Raymond, 65, pleaded guilty to 13 counts of sexual exploitation of children, and attempt. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Aug. 17, 2022. Raymond was arrested and charged in October 2020 and has remained in federal custody since.
Between 2004 and 2012, Raymond produced or attempted to produce child pornography involving 13 different children. A search of Raymond’s home in 2019 resulted in the seizure of various digital devices containing evidence that Raymond had filmed his sexual abuse of two of those children. The digital evidence also showed that Raymond had set up a recording device in his child’s room and in his home’s bathroom to attempt to record imagery of children in the nude. In total, Raymond recorded 13 different children. According to court records, Raymond is also facing charges in Middlesex Superior Court for child rape as well as possession of other child pornography discovered during the search of his residence.
The charging statute provides for a minimum mandatory sentence of 15 years and up to 30 years in prison per count, at least five years and up to a lifetime of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigation, Boston Field Office; Middlesex District Attorney Marian Ryan; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Marlborough Police Chief David Giorgi made the announcement today. Assistant U.S. Attorney Anne Paruti, Chief of Rollins’ Major Crimes Unit is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identity and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Man sent to prison for preparing false income tax returnsRead the Press Release
HOUSTON – A local man has been ordered to federal prison following his convictions of preparing and filing false income tax returns, announced U.S. Attorney Jennifer B. Lowery.
Mario Clark pleaded guilty Jan. 13.
Today, U.S. District Judge Gray H. Miller sentenced Clark to 25 months in federal prison to be immediately followed by one year of supervised release. At the hearing, the court heard additional evidence about Clark’s criminal history, which included convictions for murder, battery and aggravated robbery. Judge Miller further ordered Clark to pay $203,336 in restitution to the IRS.
At the time of his plea, Clark admitted that he prepared fraudulent tax returns for clients under a business known as Precision Tax Group. The false income tax returns he prepared for himself and others caused a total loss $203,336 in tax revenue from the IRS.
In both tax returns prepared for himself and others, Clark made false claims for business income loss, unreimbursed employee expenses, itemized deductions, and gifts by cash or check.
IRS-Criminal Information conducted the investigation. Assistant U.S. Attorneys Charles J. Escher and Adam L. Goldman prosecuted the case.
Man Pleads Guilty to Distributing Fentanyl in PetersburgRead the Press Release
RICHMOND, Va. – A Sterling man pleaded guilty today to distribution of fentanyl.
According to court documents, on July 21, 2021, Salahudin Mitchell, 39, distributed more than 56 grams of a mixture and substance containing fentanyl. According to court documents, beginning in late 2020, agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Drug Enforcement Administration (DEA), Virginia State Police, and Petersburg Bureau of Police became aware of the drug trafficking activities of Mitchell and others. This drug trafficking was taking place in Petersburg and elsewhere. A series of nine controlled purchases of fentanyl were made from Mitchell between April 2021 and October 2021.
Mitchell is scheduled to be sentenced on July 29. He faces a mandatory minimum of 5 years in prison, and a maximum term of 40 years. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Charlie J. Patterson, Special Agent in Charge of the ATF’s Washington Field Division; Colonel Gary T. Settle, Superintendent of Virginia State Police; Kenneth A. Miller, Director of Public Safety, Petersburg Bureau of Police; Jarod Forget, Special Agent in Charge for DEA’s Washington Division; and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after Senior U.S. District Judge Henry E. Hudson accepted the plea.
Special assistance was provided by the Petersburg Bureau of Police.
Assistant U.S. Attorney Angela Mastandrea-Miller is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:22-cr-007.
Man Charged with Transnational Repression Campaign While Acting as an Illegal Agent of the Chinese Government in the United StatesRead the Press Release
A Chinese national is charged in a criminal complaint, which was unsealed today in the Southern District of New York, with conspiring to act in the United States as an illegal agent of the People’s Republic of China (PRC).
According to court documents, Sun Hoi Ying, aka Sun Haiying, 45, of the PRC, from at least February 2017 through February 2022, acted in the United States as an agent of the PRC government, without notifying the U.S. Attorney General as required by law.
“This case demonstrates, once again, the PRC’s disdain for the rule of law and its efforts to coerce and intimidate those it targets on our shores as part of its Operation Fox Hunt,” said Assistant Attorney General for National Security Matthew G. Olsen. “The defendant allegedly traveled to the United States and enlisted others, including a sworn law enforcement officer, to spy on and blackmail his victims. Such conduct is both criminal and reprehensible.”
“The PRC government launched a campaign dubbed ‘Operation Fox Hunt,’ a global plot to repress dissent and to forcibly repatriate so-called ‘fugitives’ – including citizens living legally in the United States – through the use of unsanctioned, unilateral and illegal practices,” said U.S. Attorney Damian Williams for the Southern District of New York. “We allege Mr. Sun, as part of that campaign, attempted to threaten and coerce a victim into bending to the PRC’s will, even using a co-conspirator who is a member of U.S. law enforcement to reinforce that the victim had no choice but to comply with the PRC government’s demands. Today’s charges reflect this office’s continued commitment, working hand in hand with our partners at the FBI, to combat transnational repression and bringing to justice those who perpetrate it.”
“The Chinese government takes advantage of our freedoms — freedoms they deny their own citizens — to advance their authoritarian regime, and calls uncomfortable truths about their behavior rumors and lies,” said Assistant Director Alan E. Kohler Jr. of the FBI’s Counterintelligence Division. “There’s nothing false about seeing example after example of the Chinese government’s underhanded and illegal behavior here in the United States. I urge anyone to contact the FBI if you feel you’re a victim of the Chinese government’s illegal Fox Hunt activities.”
“As alleged, Sun Hoi Ying, acting at the direction of the PRC government, engaged in a range of activities designed to pressure individuals in the United States to return to the PRC to face charges brought by the Chinese government,” said Assistant Director in Charge Michael J. Driscoll of the FBI’s New York Field Office. “Our commitment to protecting the freedoms enjoyed by all United States residents is steadfast. Today's action is the latest example of our unwavering determination to combat transnational repression in all its forms.”
According to court documents, the FBI has been involved in an investigation of individuals who, working at the direction of the PRC government, have engaged in an international campaign, known alternatively as “Operation Fox Hunt” and “Operation Skynet,” to pressure individuals located in the United States and elsewhere to return to the PRC to face charges or to otherwise reach financial settlements with the PRC government.
As alleged, from approximately October 2016 through May 2017, Sun conducted operations in the United States on behalf of the PRC government to pressure, threaten and collect personal information regarding victims of Operation Fox Hunt. Among other things, as part of his operations and at the direction of the PRC government, Sun hired private investigators in the United States to gather personal information on Operation Fox Hunt targets, labeled as “fugitives” by the PRC government and provided some of that information to the PRC government.
According to the complaint, Sun provided 35 names to a private investigator (P.I.-1) working at a U.S. company (Firm-1) of individuals described as PRC fugitives, including Victim-1, who is a U.S. citizen that previously lived in the PRC, worked at a PRC-owned company, and was subsequently accused by the PRC government of embezzlement. As alleged, P.I.-1 conducted surveillance at Victim-1’s home and provided a report to Firm-1 and Sun. By June 2018, the PRC government had publicly disseminated personal identifying information of Victim-1 – including case details, a photograph and home address – on PRC-based news media websites.
While Sun was collecting information about Victim-1 for the PRC government, Victim-1’s daughter (Victim-2), who is a U.S. citizen and was pregnant at the time, was held against her will in the PRC for approximately eight months. In or about October 2016, Victim-2, her spouse and her minor child attempted to leave the PRC to return to the United States. However, Victim-2 was told by PRC customs officials and a PRC prosecutor (Prosecutor-1) that she could not leave and was subject to an “exit ban.” While Victim-2’s spouse and minor child were able to return to the United States, Victim-2 was told that, since Victim-1 had committed a crime, the “exit ban” on Victim-2 was a consequence of Victim-1’s fugitive status. The PRC prosecutor further told Victim-2: (1) that she would not be permitted to leave the PRC until she helped cause Victim-1 to return to the PRC to resolve Victim-1’s criminal case; (2) that Victim-2 was not to discuss the “exit ban” with the U.S. government; and (3) that the U.S. Embassy was helpless to address Victim-2’s status in the PRC. When Victim-2 explained to Prosecutor-1 that she was pregnant and wished to deliver her baby in the United States, Prosecutor-1 told Victim-2 she would deliver her baby in the PRC if the conditions were not yet met for the “exit ban” to be lifted.
According to the complaint, on or about Dec. 1, 2019, Sun also sought out, located and met with an Operation Fox Hunt target (Victim-3), in New York City, in coordination with a co-conspirator who is a local U.S. law enforcement officer. During the meeting, Sun threatened and pressured the victim, including by threatening that the PRC government would take certain adverse and retaliatory actions if the victim did not comply with the demands of the PRC government.
Sun is charged with one count of conspiring to act as an agent of a foreign government without notifying the Attorney General, which carries a maximum sentence of five years in prison, and one count of acting as an agent of a foreign government without notifying the Attorney General, which carries a maximum sentence of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorneys Matthew J.C. Hellman and Kyle A. Wirshba for the Southern District of New York are prosecuting the case, with valuable assistance provided by Trial Attorney Scott Claffee of the National Security Division’s Counterintelligence and Export Control Section.
The FBI’s New York Field Office is investigating the case.
A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Lynn Man Indicted on Firearm and Drug ChargesRead the Press Release
BOSTON – A Lynn man was indicted today on firearm and narcotics charges in connection with possessing a firearm and distribution amounts of fentanyl, heroin and cocaine.
Rahiym Mervin, 29, was indicted on one count of being a felon in possession of a firearm, one count of possession with intent to distribute fentanyl, heroin, and cocaine and one count of carrying a firearm during and in relation to a drug trafficking crime. Mervin will appear in federal court in Boston at a later date.
On the evening of Dec. 16, 2021, Mervin was observed allegedly speeding on Blue Hill Avenue in Dorchester by local patrol officers and was subsequently pulled over. According to the charging documents, a search of Mervin’s vehicle resulted in the recovery of a large capacity handgun magazine in the front seat console, distribution quantities of fentanyl, heroin and cocaine inside a bag in the backseat and – hidden behind the climate control panel on the dashboard – a loaded 9mm handgun and an additional stash of narcotics. Mervin was subsequently arrested.
According to court records, at the time of his arrest, Mervin was on bail on similar gun and narcotics charges pending in Norfolk County arising from an incident in Quincy in May 2019. In addition, Mervin was previously convicted in June 2016 in Plymouth County of possessing a firearm without a license.
The charge of being a felon in possession of a firearm provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charge of possession with intent to distribute fentanyl, heroin, and cocaine provides for a sentence of up to 20 years in prison, six years of supervised release and a fine of $1 million. The charge of carrying a firearm during and in relation to a drug trafficking crime provides for a sentence of up to life in prison, five years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Boston Police Acting Commissioner Gregory Long made the announcement today. Assistant U.S. Attorney John T. McNeil of Rollins’ Criminal Division is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Liverpool Man Pleads Guilty to Drug and Firearm CrimesRead the Press Release
SYRACUSE, NEW YORK – Dionel Hall, age 42, of Liverpool, New York, pled guilty today to possessing with intent to distribute a controlled substance, possessing a firearm in furtherance of a drug-trafficking crime, and unlawfully possessing a firearm as a felon, announced United States Attorney Carla B. Freedman, Timothy Foley, Acting Special Agent in Charge. U.S. Drug Enforcement Administration (DEA), New York Division, and New York State Police Superintendent Kevin P. Bruen.
As part of his guilty plea, Hall admitted that on February 7, 2021, he possessed 995.6 grams of eutylone, also known as “molly,” which he intended to distribute to customers in Oneida County and elsewhere. Hall further admitted that on September 9, 2021, he possessed a loaded semiautomatic pistol, approximately 140 rounds of ammunition of various calibers, and $45,094.00 cash drug proceeds. Hall acknowledged that at the time of the offense, he knew that he had been convicted of multiple felony offenses punishable by imprisonment for a term exceeding one year, and that he was also on parole at the time. Those prior convictions included a first-degree robbery conviction in 2003, for which he received a sentence in Monroe County Court of 18 years’ imprisonment.
At sentencing on July 20, 2022, Hall faces minimum term of 5 years and up to life in prison, a post-incarceration term of at least 3 years and up to life of supervised release, and a maximum fine of $1,000,000. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by DEA, the New York State Police, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and is being prosecuted by Assistant U.S. Attorney Matthew J. McCrobie.
KC Man Sentenced for Meth Trafficking, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man who sold an assault rifle and methamphetamine to an undercover federal agent has been sentenced in federal court for his role in a conspiracy to distribute methamphetamine and for illegally possessing firearms.
Jacob Michael Richardson, 34, was sentenced by U.S. Chief District Judge Beth Phillips on Tuesday, March 29, to 10 years in federal prison without parole.
On Nov. 15, 2021, Richardson pleaded guilty to one count of conspiracy to distribute methamphetamine and one count of possessing a firearm in furtherance of a drug-trafficking crime.
Richardson admitted that he met an undercover agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives on Aug. 10, 2020, to sell the agent methamphetamine and a firearm. When Richardson arrived at a local park on his four-wheeler, the agent saw him set his motorcycle helmet on the ground. A pistol was sitting inside the helmet. Richardson told the undercover agent he was a member of the United Aryan Brotherhood and had just gotten out of prison.
Richardson showed the undercover agent a photo of a firearm that appeared to be an assault rifle on his cell phone. A white Dodge Avenger driven by co-defendant Brian Michael French, 31, of Kansas City, Mo., then arrived to deliver the firearm, an AR-type privately made .223-caliber rifle with no serial number. However, when the undercover agent examined the rifle, it didn’t function. Richardson explained the firing pin was at his house, so they went to Richardson’s house. Richardson retrieved the firing pin and, as he and the undercover agent reassembled the firearm, French watched from a distance.
The undercover agent asked Richardson if he had another firearm for sale, and Richardson showed him a Springfield .40-caliber pistol. Richardson told the undercover agent he could also sell him PCP, cocaine, ecstasy, or marijuana. The agent paid Richardson $2,400 for the rifle with 29 rounds of ammunition and 22 grams of methamphetamine.
On Aug. 21, 2020, law enforcement officers executed a search warrant at Richardson’s residence. Officers found a Remington .22-caliber rifle and a Charles Daley 12-gauge shotgun in the bedroom. Also in the bedroom was a safe, which contained a Springfield .40-caliber pistol and approximately 296 grams of methamphetamine. Officers also found a pineapple-style grenade, five marijuana plants, various rounds of ammunition, and body armor.
Richardson told investigators he brokered approximately 100 pounds of methamphetamine over the past year.
French pleaded guilty on Dec. 21, 2021, to being a felon in possession of a firearm and awaits sentencing.
This case was prosecuted by Assistant U.S. Attorney Stefan C. Hughes. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jury Finds Little Rock Man Guilty of Sex Trafficking; Distribution and Production of Child PornographyRead the Press Release
LITTLE ROCK—A Little Rock man has been convicted of four sex offenses at the conclusion of a three-day trial. A federal jury found KeShawn Boykins, 27, guilty on all four counts for which he was indicted: two counts of sex trafficking, distribution of child pornography, and production of child pornography.
The jury returned their verdict this afternoon after deliberating for just under three hours. United States District Judge James M. Moody, Jr., presided over the trial, and Judge Moody will sentence Boykins at a later date.
“This defendant physically abused his victims in order to maintain control over them and profit from the sexual acts he forced them to perform,” said Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas. “Today’s verdict sends a clear message to those who engage in these violent acts: you will be caught, and you will be prosecuted to the fullest extent available to us under federal law.”
Testimony during the trial established that in October 2018, a 19-year-old female identified as H.E. notified employees at Walmart in Maumelle, Arkansas, that she needed to escape from the man she was with. The employees contacted police, and H.E. told law enforcement she had met Boykins five days earlier and exchanged numbers. H.E. had been kicked out of her parents’ home, and Boykins offered for her to live with him, which she agreed to do.
When H.E. arrived at Boykins’ apartment, she learned he was living with a 17-year-old female, identified as T.M., an adult woman, and others. The defendant made a profile for H.E. on an online dating website. Two days after moving in, the defendant told H.E. she had two “dinners” to attend. T.M. had already told H.E. that these dates meant H.E. would be expected to have sex for money. H.E. testified at trial that when she told Boykins she did not want to go, he threw her on the floor, choked her, and continued to physically abuse her. H.E. escaped during a trip to Walmart the following day.
T.M. testified at trial that the defendant used an online dating website to arrange dates for her, and that if she came back with less money than Boykins expected, he would hit her. He never allowed her to keep any of the money and, due to her repeated attempts to leave, he routinely physically abused her.
Evidence at trial indicated that Boykins’ phone contained multiple messages in which he arranged dates for both T.M. and H.E. He sent sexually explicit photos of both T.M. and H.E. while attempting to set up dates. The photos of T.M., taken when she was a minor, led to Boykins’ conviction on the child pornography charges.
“Mr. Boykins produced child sexual abuse material and lured a vulnerable minor into the reprehensible world of sex trafficking,” said FBI Little Rock Special Agent in Charge James A. Dawson. “His abominable actions highlight the pervasive threat Arkansas children and families face on a daily basis. FBI Little Rock will continue to work with our local police partners and federal prosecutors to protect our communities from vile child predators.”
The statutory penalty for sex trafficking ranges from not less than 15 years imprisonment up to life imprisonment. The statutory penalty for distribution of child pornography is not less than five years and not more than 20 years imprisonment. The statutory penalty for production of child pornography is not less than 15 years imprisonment and not more than 30 years imprisonment. All offenses of conviction include a potential penalty of not more than a $250,000 fine and not less than five years of supervised release.
The investigation was conducted by the FBI, and the case was prosecuted by Assistant United States Attorneys Kristin Bryant and Benecia Moore.
# # #
This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Jury Convicts Georgia Man of Child Enticement in Operation End Game CaseRead the Press Release
MACON, Ga. – A Winterville, Georgia, resident was convicted of attempted online child enticement resulting from a law enforcement effort focused on arresting child sex predators in the Athens, Georgia, area.
Noe A. Villafuerte, 47, of Winterville, Georgia, was convicted of attempted online enticement of a minor by a federal jury today in Macon federal court. U.S. District Judge C. Ashley Royal presided over the trial. Villafuerte faces a mandatory minimum of ten years up to a maximum term of life imprisonment, a maximum lifetime of supervised release and registration as a sex offender for life. A sentencing date has been scheduled for July 14, 2022.
“This predator was willing to victimize what he thought was a 14-year-old child; fortunately, he ran into the arms of law enforcement instead,” said U.S. Attorney Peter D. Leary. “Operation End Game was a highly successful law enforcement effort to protect children involving local, state and federal agencies collaborating through Georgia’s Internet Crimes Against Children Task Force.”
“The GBI will continue to work tirelessly to protect innocent victims of online exploitation. We are grateful for the partnerships we maintain with our local and federal agencies to bring these predators to justice,” said GBI Director Vic Reynolds
“Predators like Villafuerte are just another example of why parents need to be vigilant and aware of their children’s online activity,” said Philip Wislar, Acting Special Agent in Charge of FBI Atlanta. “Fortunately, he connected with an undercover detective and not a child. The FBI remains committed to protecting our young citizens and is thankful for the law enforcement partnerships that make it possible to bring child predators to justice.”
According to court documents and testimony presented at trial, Villafuerte was arrested as a result of “Operation End Game,” a three-day proactive effort from July 25-27, 2019, centered in Athens, Georgia, to arrest adults communicating with children on-line and traveling to meet them for the purpose of having sex. During the online operation, an undercover detective posing as a 14-year-old girl placed an ad on an “escort” website known to be used by human traffickers. Villafuerte responded to the ad and began communicating with the undercover agent on July 25. Villafuerte offered to pay the child $60 for sex in his vehicle and they agreed to meet at a Kroger in Athens on July 26. Villafuerte was arrested shortly before 5:00 p.m. in the parking lot after searching the store and lot for the child.
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 the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Georgia Internet Crimes Against Children (ICAC) Task Force, the GBI’s Child Exploitation and Computer Crimes Unit (CEACC), the Athens-Clarke County Police Department (ACCPD), the FBI and the Athens-Clarke County District Attorney’s Office.
Assistant U.S. Attorneys Lyndie Freeman and Robert McCullers are prosecuting the case.
Jury Convicts Diamond Man of Sexual Exploitation of a ChildRead the Press Release
SPRINGFIELD, Mo. – A Diamond, Missouri, man has been convicted at trial for the sexual exploitation of a child.
Terry Lee Miksell, 65, was found guilty on Tuesday, March 29, of one count of producing child pornography and one count of using the internet and a cell phone to induce a child to engage in sexual activity.
At the time of the offense, Miksell was employed as a counselor at a Purdy, Mo., drug treatment facility.
Facebook initiated two CyberTips in September 2019 after locating sexually explicit messages and images between Miksell and a 16-year-old victim. Miksell asked the child victim in Facebook Messenger chats to send him sexually explicit images and videos. She told investigators she sent those images and videos at his request. Miksell also sent pornographic pictures of himself to the child victim.
Officers executed a search warrant at Miksell’s residence on Jan. 16, 2020, and seized several devices, including a cell phone. The cell phone contained a pornographic video of the child victim.
Following the presentation of evidence, the jury in the U.S. District Court in Springfield, Mo., deliberated for approximately 30 minutes before returning guilty verdicts on both counts to U.S. District Judge Roseann Ketchmark, ending a trial that began Monday, March 28.
Under federal statutes, Miksell is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys James J. Kelleher, Stephanie Wan, and Ami Harshad Miller. It was investigated by Homeland Security Investigations and the Southwest Missouri Cyber Crimes Task Force.
Project Safe Childhood
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."
Jackson Township Man Pleads Guilty to Kidnapping and Possession of Child PornographyRead the Press Release
Acting U.S. Attorney Michelle M. Baeppler announced that Jonathan L. Stinnett, 36, of Jackson Township, Ohio, pleaded guilty today to kidnapping a five-year-old child and possession of child pornography.
“Thanks to quick work of law enforcement and a vigilant community, an innocent child was reunited with their family and spared from an unknown fate,” said Acting U.S. Attorney Michelle M. Baeppler. “Nothing unites all of us in this region more than working to protect and ensure the safety of our children.”
According to court documents, on November 11, 2021, Stinnett kidnapped a five-year-old child and transported the child across state lines to Illinois for the purposes of sexual gratification and exclusive companionship.
On November 12, the McLean County Sheriff’s Department in Bloomington, Illinois, received a call regarding a suspicious parked vehicle. Deputies responded to the area and located a van suspected to have been involved in a reported kidnapping. Deputies approached the vehicle and located Stinnett and the victim inside.
Stinnett was arrested and later confirmed his involvement in the kidnapping to law enforcement officials. Stinnett was also found to have been in possession of a flash drive containing visual depictions of child pornography.
Stinnett is scheduled to be sentenced on July 6, 2022.
This case was investigated by the FBI, Jackson Township Police Department and the McLean County Sheriff’s Department in Bloomington, Illinois. This case is being prosecuted by Assistant U.S. Attorneys Peter E. Daly and Aaron P. Howell.
Houma Woman Charged with Theft of Government FundsRead the Press Release
NEW ORLEANS – United States Attorney Duane A. Evans announced that NICOLE COCKERHAM (“COCKERHAM”), age 42, of Houma, Louisiana, was charged on March 28, 2022 by a bill of information for Theft of Government Funds, in violation of Title 18, United States Code, Section 641.
According to the bill of information, from March 2019 to July 2020, COCKERHAM knowingly converted approximately $38,851.00 in Social Security Administration and Coronavirus Aid, Relief, and Economic Security Act (“CARES ACT”) funds.
U.S. Attorney Duane A. Evans reiterated that the bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
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. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Social Security Administration, Office of the Inspector General, and the Treasury Inspection General for Tax Administration with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit.
Henderson Man Sentenced for Possessing a Firearm in Furtherance of Drug Trafficking and as a Convicted FelonRead the Press Release
RALEIGH, N.C. – A Henderson, North Carolina man was sentenced today to 90 months in prison and three years of supervised release for Possession of a Firearm in Furtherance of a Drug Trafficking Crime and Possession of a Firearm by a Felon.
According to court documents and information presented at the sentencing hearing, Seikeidrick Antwon Williams, 36, was named in a six-count Superseding Indictment filed on March 3, 2021, charging him with Possession with Intent to Distribute Heroin, Fentanyl, ANPP, and Marijuana (Count One); Possession of a Firearm in Furtherance of a Drug Trafficking Crime (Counts Two and Five); Possession of a Firearm by a Felon (Counts Three and Six); and Possession with Intent to Distribute Heroin (Count Four). On August 31, 2021, Williams pled guilty to Counts Two and Three.
On August 7, 2020, the Henderson Police Department (HPD) was conducting an operation in the area of the Fiddlestix Convenience Store in Henderson, when Williams approached an undercover officer and offered to sell her heroin. This encounter ultimately resulted in a search of Williams and his vehicle, at which time officers found a bag containing 8.5g of marijuana and a bag containing 243 dosage units of heroin mixed with fentanyl and ANPP. Officers also found United States currency, a set of digital scales, and wax paper with rubber bands, commonly used to package heroin. In the vehicle’s glovebox, officers found a loaded SCCY CPX-1 9mm pistol with an extended magazine. The gun had been reported stolen from Granville County.
On December 2, 2020, while on bond for state charges related to this incident, Williams was stopped by the Franklin County Sheriff’s Office for travelling 73 mph in a 55-mph zone. During the stop, a K9 unit conducted an open-air sniff around Williams’s vehicle and alerted to the presence of narcotics. Deputies searched the car and found a Glock pistol, a SCCY pistol, approximately 145 bindles of heroin, and multiple empty wax paper heroin bags with small rubber bands, consistent with heroin packaging.
Williams is a convicted felon, having been convicted of Second-Degree Murder in Vance County Superior Court in 2005, for which he was sentenced to 180 to 225 months in prison.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement. The Henderson Police Department investigated the case and Assistant U.S. Attorneys Robert J. Dodson and Lori B. Warlick prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for case number 5:20-cr-451-D.
Hartford Man Sentenced to Prison for Distributing FentanylRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that JUAN LAUREANO, also known as “Pito,” 42, of Hartford, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 18 months of imprisonment, followed by three years of supervised release, for distributing fentanyl.
According to court documents and statements made in court, this matter stems from an investigation conducted by the FBI’s Northern Connecticut Gang Task Force and Hartford Police Department into drug trafficking and related criminal acts being committed by members and associates of the Los Solidos and Latin Kings street gangs in Hartford’s South End. Between January and April 2020, investigators conducted multiple controlled purchases of fentanyl from Laureano and his associate, Anthony Dones, in the vicinity of Dones’ Montrose Street residence.
Laureano and Dones were arrested on April 8, 2020. On that date, a search of Dones’ residence revealed a small quantity of fentanyl, items used to process and package narcotics for street sale, and a loaded .45 caliber pistol.
Laureano’s criminal history includes multiple state convictions and a federal conviction in 2013 for unlawful possession of a firearm by a felon.
On October 15, 2021, Laureano pleaded guilty to one count of conspiracy to possess with intent to distribute, and distribution, of fentanyl.
Laureano, who is released on bond, is required to report to prison on May 11.
On March 15, 2022, Dones pleaded guilty to one count of conspiracy to possess with intent to distribute, and distribution, of fentanyl, and one count of unlawful possession of a firearm by a felon. He awaits sentencing.
This investigation was conducted by the FBI’s Northern Connecticut Gang Task Force and the Hartford Police Department. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. This case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Guatemalan Man Convicted of Attempting to Sex Traffic a MinorRead the Press Release
United States Attorney Jan Sharp announced that on March 29, 2022, a federal jury in Omaha, Nebraska, found Eswin Lopez, aka David Cantu, guilty of attempted sex trafficking of a minor. Lopez, 29, originally from Guatemala, faces a mandatory minimum sentence of 10 years’ imprisonment. Chief United States District Judge Robert F. Rossiter, Jr. ordered a Pre-Sentence Investigation and set Lopez’s sentencing hearing for June 24, 2022, at 9:00 AM.
In August 2020 and January 2021, a deputy with the Douglas County Sheriff’s Office posted an advertisement on a website commonly used for prostitution. Lopez responded to the phone number on the advertisement by text message and began communicating with an undercover deputy. The deputy claimed to be a 15-year-old girl. Lopez continued messaging and contacting who he thought was a 15-year-old on a daily basis, requesting sex. On January 15, 2021, Lopez agreed to pay $80 for a half hour of sex. Lopez then traveled from Waverly, Nebraska to Omaha, Nebraska and arrived at a prearranged meeting place with the cash and beer the minor requested.
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 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.
This case was investigated by the Douglas County Sheriff’s Office as part of the FBI’s Child Enticement and Human Trafficking Task Force.
Grand Jury indicts former Chief Operating Officer of major St. Louis Construction Company in Minority Business Enterprise fraud schemeRead the Press Release
ST. LOUIS – A federal grand jury indicted Brian Kowert, Sr., former Chief Operating Officer of the HBD Construction Company, on March 30, 2022, for five counts of wire fraud relative to his falsifying of Minority Business Enterprise (“MBE”) participation on several construction and redevelopment projects from 2014 through 2022.
Kowert, Sr. was an owner, executive vice president, and chief operating officer of HBD Construction Company. Kowert, Sr. was also the project manager on numerous HBD construction and redevelopment projects in St. Louis and throughout the Midwest region. The indictment alleges that beginning during 2014, and continuing through early 2022, Kowert, Sr. engaged in a scheme to defraud the City of St. Louis, the State of Missouri, and several HBD client companies by falsifying records to inflate MBE participation numbers on HBD projects. The MBE participation requirements on those projects sought to address historical social and economic disadvantages experienced by minority group members to reduce minority-based barriers to and foster participation by minority owned businesses.
The indictment alleges that Kowert, Sr. used actual MBE certified companies simply as “front” companies to pass payments to non-MBE certified companies which had actually provided the labor and materials on the projects. The MBE certified companies neither performed work nor provided materials on the projects and had no actual contact with the non-MBE companies which actually performed the work and provided the materials. The MBE certified companies were paid a nominal fee by Kowert, Sr. for acting as a “pass through” for the funds paid to the non-MBE companies. The indictment alleges that Kowert, Sr. provided false information and false reports to the City of St. Louis, the State of Missouri, and several HBD client companies which falsely inflated the actual MBE participation numbers on three separate projects. Those projects were located in the St. Louis and Kansas City metropolitan areas. The indictment alleges that Kowert, Sr.’s scheme and false representations were an effort by him to meet City of St. Louis, State of Missouri, and HBD client company MBE participation requirements and goals. Kowert, Sr. falsely reported hundreds of thousands of dollars as MBE certified work on the projects when, in fact, the work had been performed by non-MBE majority owned and staffed companies.
The HBD client companies, the State of Missouri, and the City of St. Louis had no knowledge of Kowert’s alleged criminal conduct, and fully cooperated with federal law enforcement in this investigation.
Charges set forth in the indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the Federal Bureau of Investigation. The case is being handled by Assistant United States Attorney Hal Goldsmith.
Grand Jury Returns Three IndictmentsRead the Press Release
MADISON, WIS. - A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Beloit Man Charged with Distributing Crack Cocaine
Marcus Payton, 37, Beloit, Wisconsin, is charged with 2 counts of distributing crack cocaine. The indictment alleges that he distributed crack cocaine on January 31 and February 4, 2022.
If convicted, Payton faces a maximum penalty of 20 years in federal prison on each count. The charges against him are the result of an investigation by the Wisconsin Department of Justice Division of Criminal Investigation, Beloit and Janesville Police Departments, and Rock County Sheriff’s Office. Assistant U.S. Attorney David Reinhard is handling the prosecution.
Verona Man Charged with Gun Crime
Devin Crayton, 32, Verona, Wisconsin, is charged with being a felon in possession of a firearm and ammunition. The indictment alleges that on January 11, 2022, Crayton possessed a 9mm handgun and 9mm ammunition.
If convicted, Crayton faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the Verona Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Corey Stephan is handling the prosecution.
Milwaukee Man Charged with Failure to Report to Prison
Bernard Thomas, 30, Milwaukee, Wisconsin, is charged with failing to surrender for the service of a sentence imposed by the U.S. District Court for the Western District of Wisconsin. The indictment alleges that on March 12, 2021, Thomas failed to surrender to serve the sentence imposed by the Court.
If convicted, Thomas faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the U.S. Marshals Service. Assistant U.S. Attorney David Reinhard is handling the prosecution.
Georgia Man Pleads Guilty to Submitting More Than $2.9 Billion in False Tax Claims to the IRSRead the Press Release
Ocala, Florida –United States Attorney Roger B. Handberg announces that David O. Isagba today pleaded guilty to one count of mail fraud and one count of conspiring to defraud the United States with respect to tax claims. Isagba faces a maximum penalty of 30 years in federal prison. A federal grand jury had indicted Isagba and his wife, Joyce Isagba, on May 27, 2020. Her portion of the case is set for trial in May 2022 before Senior U.S. District Judge John Antoon II.
According to the plea agreement and other court documents, between 2009 and 2019, David Isagba submitted 227 fraudulent claims to the IRS falsely claiming to be entitled to more than $2.9 billion in tax refunds on behalf of nonexistent trusts. David Isagba subsequently received a total of $5,815,723.65 from the IRS as a result of this fraudulent scheme. He used the money to purchase a home and multiple luxury vehicles.
This case was investigated by the Internal Revenue Service - Criminal Investigation. It is being prosecuted by Assistant United States Attorney William S. Hamilton.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
Galesburg Man Sentenced to Twenty Years in Federal Prison for Drug Trafficking and Unlawful Use of FirearmsRead the Press Release
ROCK ISLAND, Ill. – A Galesburg, Illinois, man, Benjamin William Norville, 29, of the 500 block of Chambers Street, was sentenced on March 29, 2022, to an aggregate term of 240 months’ imprisonment following his convictions for possession with intent to distribute at least 50 grams of ice methamphetamine, possession of a firearm as a felon, and possession of a firearm in furtherance of a drug trafficking crime.
At the sentencing hearing, the government established that Norville, an ice methamphetamine dealer, possessed two loaded and stolen firearms and several types of narcotics while passed out in a running vehicle. The government detailed Norville’s criminal history, noting that this was his seventh felony and sixth methamphetamine-related conviction.
Also at the hearing, Chief U.S. District Judge Sara Darrow found that Norville posed a high risk of recidivism and stated that his sentence needed to reflect the seriousness of his offense. Judge Darrow sentenced Norville to 180 months’ imprisonment for possession with intent to distribute at least 50 grams of ice methamphetamine and 120 months’ imprisonment for possession of a firearm as a felon, to run concurrently, and to be followed by a consecutive 60 months’ imprisonment for possession of a firearm in furtherance of a drug trafficking crime. Judge Darrow imposed five-year terms of supervised release for the drug trafficking and felon-in-possession convictions and a three-year term of supervised release for possession of a firearm in furtherance of a drug trafficking crime, all to run concurrently.
Norville pleaded guilty in August 2021.The statutory penalties for possession with intent to distribute at least 50 grams of actual methamphetamine include a mandatory minimum of ten years and up to life imprisonment, up to a $10 million fine, and at least five years and up to a life term of supervised release. The statutory penalties for possession of a firearm by a felon are up to ten years imprisonment, up to a $250,000 fine, and up to a three-year term of supervised release. The statutory penalties for possession of a firearm in furtherance of a drug trafficking crime are a mandatory minimum five years and up to life imprisonment, consecutive to any other term of imprisonment imposed; up to a $250,000 fine; and up to a five-year term of supervised release.
“This case demonstrates what drug dealers can expect when they sell drugs and carry guns in our community,” said Assistant United States Attorney Alyssa Raya. “Our office commends the first responders called to this extremely volatile situation and their dedication to keeping the community safe.”
“Deadly drugs and deadly weapons fuel violence and suffering, casting a dark shadow over our communities,” said David Nanz, the Special Agent in Charge of the Federal Bureau of Investigation’s Springfield Field Office. “In every case, the FBI and our law enforcement partners bring to bear the combined strength of our resources to track down criminals like Norville and protect our Illinois cities and towns. The significant sentence handed down today reflects our determination to combat and deter the distribution of narcotics and the illegal possession of weapons.”
The Galesburg Police Department and the Federal Bureau of Investigation, Springfield Field Office, investigated the case. Assistant U.S. Attorneys Raya and Jennifer Mathew represented the government in the prosecution.
Four Baltimore County Residents Facing Federal Indictment for Charges Related to Illegal Firearms TraffickingRead the Press Release
Baltimore, Maryland – A federal grand jury has returned a superseding indictment charging four Baltimore County residents for conspiracy and for engaging in the business of dealing firearms without a license, including privately-made firearms. Charged in the superseding indictment are: Tyjae Bladen, age 21, of Parkville, Maryland; Brian Brownell, a/k/a “Cole,” age 31, of Dundalk, Maryland; Maurice Dacosta, a/k/a “Jr,” age 24; and Cameron Taylor, a/k/a “Chino,” age 21, both of Parkville, Maryland. Bladen and Taylor are also charged with illegal possession of machineguns. The indictment was returned on March 22, 2022, and unsealed yesterday upon the arrest of Brownell. Bladen and Taylor were charged in the original indictment and remain on pre-trial release. Dacosta is detained on unrelated charges in Baltimore County.
Brownell and Dacosta each had an initial appearance today U.S. District Court in Baltimore. Brownell was ordered to be detained pending a detention hearing scheduled for March 31, 2022 at 11:30 a.m.
The superseding indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Chief Melissa R. Hyatt of the Baltimore County Police Department, and Commissioner Michael Harrison of the Baltimore Police Department.
According to the 17-count superseding indictment, the defendants sold registered, as well as privately-made firearms (PMF), sometimes called ghost guns, which are firearms that lack any identifiable markings. A PMF can be manufactured using do-it-yourself kits sold by several companies. A machinegun conversion device, sometimes referred to as a “switch,” is used to convert a semiautomatic Glock-type pistol to fire fully automatic. Firearms and machinegun conversion devices may also be built by using a 3D printer to create the firearm and machinegun conversion device’s component parts. None of the defendants had a federal firearms license nor were they authorized to transport, manufacture, or deal in firearms.
According to the superseding indictment, the defendants acquired firearms parts to be built into firearms and sold. Dacosta, Taylor, and Bladen are also alleged to have acquired do-it-yourself kits to be built into firearms and machinegun conversion devices to sell for a profit, as well as using a 3D printer to create firearms and machinegun conversion devices.
As detailed in the superseding indictment, between October 4, 2021 and January 4, 2022, Dacosta, Brownell, Bladen, and Taylor allegedly sold an undercover officer (UC) a total of 24 firearms, including 20 ghost guns; two confirmed and eight suspected machine gun conversion devices—several that were 3D printed; magazines; and ammunition. The four ghost guns sold by Brownell were AR-15 firearms.
After Dacosta was arrested in Baltimore County on November 9, 2021 on unrelated charges, he allegedly instructed Bladen to continue selling firearms to the UC. The superseding indictment alleges that Bladen met with the UC on November 22, 2021 to sell him a firearm, but the firearm did not work. Bladen continued to communicate with the UC and allegedly arranged to sell the UC three switches and a firearm for $6,500. The superseding indictment alleges that on December 13, 2021, Bladen drove Taylor to the meeting location, where Taylor sold the UC a 9x19mm caliber pistol with no serial number, a magazine, a machinegun conversion device, and three additional suspected machinegun conversion devices, all of which were 3D printed, for $6,800. During the sale, Taylor allegedly told the UC that he had already sold 10 switches.
According to the superseding indictment, on January 21, 2022, investigators recovered a 3D printer, four machinegun conversion devices, and 16 suspected machinegun conversion devices from Taylor’s residence; a 3D printer and 9mm luger pistol with no serial number from Dacosta’s residence in Baltimore; and a 3D printer from Dacosta and Bladen’s residence.
If convicted, the defendants each face a maximum sentence of five years in federal prison for the conspiracy and for each count in which they are charged with engaging in the business of dealing in firearms without a license. Taylor and Bladen also face a maximum sentence of 10 years in federal prison for each count of unlawful possession of a machinegun. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN, an evidence-based program proven to be effective at reducing violent crime, is the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Erek L. Barron commended the ATF, the Baltimore County Police Department, and the Baltimore Police Department for their work in the investigation. Mr. Barron thanked Special Assistant U.S. Attorney Annie McGuire, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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