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Thursday 17 February 2022
Methamphetamine Dealer Sentenced to Five Years in Federal PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Kevin Lawrence Carter, age 40, of Faulkner Maryland, to five years in federal prison, followed by five years of supervised release, for possession with intent to distribute methamphetamine.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; and Chief Malik Aziz of the Prince George’s County Police Department.
According to Carter’s plea agreement, on July 30, 2020, law enforcement observed an individual purchase approximately one ounce of methamphetamine from Carter for $700. The transaction occurred in a Clinton, Maryland parking lot. After the transaction, law enforcement continued surveillance of Carter as he left the parking lot, stopped to get gas for the car, and headed into Charles County, Maryland.
A short time later, a Charles County Sheriff’s deputy conducted a traffic stop on Carter’s vehicle in White Plains, Maryland. During the traffic stop, the deputy asked Carter to step out of the vehicle. As Carter exited the vehicle, the deputy saw a clear gallon freezer bag with a white substance protruding from the driver’s seat where Carter was sitting and noticed a digital scale in the driver’s side door.
Carter was placed under arrest and transported to the Charles County Detention Center. As a result of a search of Carter’s vehicle, law enforcement seized the digital scale, 388 grams of pure methamphetamine, and $680 remaining from the $700 Carter was paid during the earlier drug transaction. The remaining $20 had been used when Carter stopped to get gas. Lab results proved that the substance Carter distributed was 28.04 grams of pure methamphetamine.
In total, Carter possessed with intent to distribute at least 416 grams of 100% pure methamphetamine.
United States Attorney Erek L. Barron praised HSI and the Prince George’s County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Joel Crespo and Elizabeth Wright, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Mercer County Man Sentenced to 7 Years for Possessing and Distributing Child Sexual Abuse MaterialsRead the Press Release
PITTSBURGH - A Mercer County resident has been sentenced in federal court to 84 months’ imprisonment and 7 years’ supervised release on his conviction of Distribution and Possession of Material Depicting the Sexual Exploitation of a Minor, United States Attorney Cindy K. Chung announced today.
United States District Judge Marilyn J. Horan imposed the sentence on Alex Rogan-Laird, age 26, of Greenville, Pennsylvania.
According to information presented to the court, on March 14, 2020, Rogan-Laird distributed videos and still images over the “LiveMe” interactive software application depicting the sexual exploitation of prepubescent minors to an agent of the FBI working in an undercover capacity in Salt Lake City, Utah. The FBI further found Rogan-Laird in possession of thousands of sexually exploitive videos and images depicting children, on July 15, 2020, at the time a federal search warrant was executed at his residence. Rogan-Laird admitted to viewing and distributing child pornography using “LiveMe” and similar software applications.
Restitution to the victims depicted in the sexually exploitive imagery is mandatory and Judge Horan scheduled a hearing on restitution for April 6, 2022. One of the victims, now an adult, spoke at the sentencing hearing about the continuing psychological harm she endures knowing that individuals like Rogan-Laird continue to view and share the images of her childhood abuse.
Prior to imposing sentence, Judge Horan stated that the defendant should take advantage of mental health and sex offender treatment while serving his sentence and, like the victim, use his experience to teach others and prevent such exploitation in the future.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
United States Attorney Chung commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Rogan-Laird.
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.justice.gov/psc.
Member of Violent Robbery Crew Sentenced to 22 Years in Federal PrisonRead the Press Release
CHICAGO — A man has been sentenced to 22 years in federal prison for participating in a violent robbery crew that targeted cell phone stores in the suburbs of Chicago.
AARON CLARK was part of a crew that conspired to rob cell phone stores in Calumet City, Ill., and Peotone, Ill., in 2017. The crew conducted takeover-style heists in which the robbers pointed guns at employees and bound their hands and feet with duct tape or rope. The robbers then stole cash and electronic devices and fled the stores. Clark brandished a gun during the heists and threatened to shoot store employees. In the Peotone robbery, Clark violently kicked a store employee in the face and knocked another employee off of a stool to the ground.
Clark, 44, of Chicago, pleaded guilty last year to federal conspiracy, robbery, and firearm charges. U.S. District Judge Edmond E. Chang imposed the prison sentence Wednesday after a hearing in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; and David Brown, Superintendent of the Chicago Police Department. Valuable assistance was provided by the Calumet City Police Department, Peotone Police Department, Cook County State’s Attorney’s Office, and Will County State’s Attorney’s Office.
“The offenses in this case were violent and dangerous,” Assistant U.S. Attorneys Richard M. Rothblatt and Aaron R. Bond argued in the government’s sentencing memorandum. “No one should have to experience the physical pain and psychological terror defendant imposed upon the employees at these stores who were simply doing their jobs.”
One other member of the crew was convicted of armed robbery offenses in the Circuit Court of Cook County and sentenced to 14 years in state prison.
Marion County Convicted Felon Pleads Guilty to Illegally Possessing Firearm and AmmunitionRead the Press Release
Ocala, Florida –United States Attorney Roger B. Handberg announces that Marrin Maurice Baker (49, Williston) has pleaded guilty to possessing a firearm and ammunition as a convicted felon. Baker faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set. Baker had been indicted on November 9, 2021.
According to court documents, Baker is a felon with prior state convictions for battery on a law enforcement officer and sale of cocaine. On or about August 25, 2021, officers from the Ocala Police Department attempted to stop a truck being driven by Baker, but he refused to pull over. Once he finally stopped, officers searched the truck and recovered a loaded 9mm firearm by the driver’s seat and approximately 121 grams of marijuana on the floorboard. Baker admitted these items belonged to him and added that he had the firearm because of shootings in the local area and that he didn’t want “anyone to try [him].” As a convicted felon, Baker is prohibited from possessing firearms and ammunition under federal law.
This case was investigated by the Ocala Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
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.
Man Sentenced to More Than 9 Years for Possessing a Handgun as a Felon After Altercation at Grocery StoreRead the Press Release
RALEIGH, N.C. – A Tarboro man was sentenced today to 114 months in prison for possessing a handgun as a convicted felon. On September 22, 2021, Bernard Eugene Phillips pled guilty to the charges.
According to court documents and other information presented in court, Phillips, 43, pulled a loaded handgun during an argument at Brown’s Grocery Store located in Tarboro, North Carolina. When Tarboro police officers responded and attempted to arrest Phillips, Phillips fought with the officers and spit on them. Even after he was in handcuffs, Phillips continued to physically resist the officers. After they were able to secure Phillips, the officers recovered the handgun which was found in Phillips’s waistband. The handgun was determined to be stolen after officers secured it from Phillips.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Tarboro Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case and Assistant U.S. Attorney John Parris prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:21-cr-00007-D.
Man Charged with Illegally Possessing “Ghost” Gun and Multiple Other Guns in Bronx ApartmentRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Michael J. Driscoll, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Keechant L. Sewell, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing today of a three-count Indictment charging ERIC LESANE with firearms and drug trafficking offenses. LESANE was initially charged by Complaint after his arrest on February 1, 2022. LESANE’s case has been assigned to the Honorable U.S. District Judge Alison J. Nathan.
U.S. Attorney Damian Williams said: “As alleged, the defendant illegally possessed multiple guns, including an untraceable ‘ghost’ gun. Illegally possessed and untraceable guns pose a serious public safety threat. Thanks to our law enforcement partners, the defendant’s weapons are now in safe hands.”
Michael J. Driscoll, FBI Assistant Director-in-Charge said: “Mr. Lesane was aware of the conditions attached to his release from prison – he was not allowed to purchase or maintain a firearm. We allege he possessed several, one of which was an untraceable ghost gun - a class of weapon that poses an increasing threat to our communities. Our goal is to work with our law enforcement partners to get criminals and their weapons off our streets.”
NYPD Commissioner Keechant L. Sewell said: “Convicted previously in a firearms possession case, Eric Lesane now faces federal indictment for allegedly amassing a stockpile of weapons — including an untraceable ghost gun — while on supervised release. Our NYPD investigators, working with our partners and prosecutors in the United States Attorney’s Office, will never stop pursuing these kinds of cases in our continuing effort to eradicate gun violence in New York.”
Michael Fitzpatrick, Chief U.S. Probation Officer said: “On February 1, Probation Officers from the Southern District of New York performed a search of Eric Lesane’s address. These officers seized several firearms and a large amount of ammunition. This search exemplifies the importance of communication between law enforcement agencies.”
According to the allegations in the Indictment unsealed today in Manhattan federal court and in the Complaint and statements made in open Court:
On February 1, 2022, the United States Marshals Service arrested LESANE, who was previously convicted of a felony related to illegal firearms possession, after an arrest warrant issued for violations of supervised release. Following LESANE’s arrest, Probation Officers from the United States Probation Office for the Southern District of New York conducted a search of LESANE’s apartment. In the course of the search, Probation Officers found:
(1) a Ruger Precision Rifle,
(2) a Mossberg Rifle,
(3) a SWD Model M-11 9mm pistol,
(4) a Typhoon 12 Gauge Semiautomatic Shotgun, and
(5) a black pf940c polymer 80 privately made handgun with no serial number—in other words, a “ghost” gun.
A photograph of the guns is below:
In the course of the search, Probation Officers also recovered multiple high-capacity magazines each containing more than 15 rounds of ammunition, approximately 75 buckshot shotgun shells, additional ammunition, and a quantity of marijuana.
Probation Officers also found large amounts of paraphernalia that appears to be associated with the “Crips” street gang, including blue clothing and signs, literature that discusses the Crips, and a black and blue baseball bat with a black and blue bandana tied around it, wrapped in barbed wire.
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LESANE, 34, of the Bronx, New York, is charged with: (1) possession of firearms following a felony conviction, which carries a maximum sentence of ten years in prison, (2) marijuana trafficking, which carries a maximum sentence of five years in prison, and (3) possessing firearms in furtherance of a drug trafficking offense, which carries a mandatory minimum sentence of five years in prison, to be served consecutively to any other sentence imposed, and a maximum sentence of life in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the FBI and the NYPD. Mr. Williams also thanked the United States Probation Office for the Southern District of New York, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Marshals Service for their assistance in this case.
The prosecution is being handled by the Office’s Violent & Organized Crime Unit. Assistant United States Attorney Elizabeth A. Espinosa is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Macon Firearms Trafficker Convicted in ATF’s Operation United FrontRead the Press Release
MACON, Ga. – Three individuals have pleaded guilty to various federal charges resulting from Operation United Front, an ongoing ATF-led investigation into illegal gun possession and drug distribution centered in the Macon, Georgia, community.
Chadrick Purnell, 43, of Macon, pleaded guilty to possession of a firearm by a convicted felon before U.S. District Judge Marc Treadwell on Feb. 16. Purnell faces a maximum ten years in prison to be followed by at least three years of supervised release and a $250,000 fine. Sentencing is scheduled for May 3. Co-defendant Jermaine White, 33, of Warner Robins, Georgia, pleaded guilty to two counts use of a communication facility on Feb. 15. White faces a maximum four years of imprisonment for each count to be followed by one year of supervised release and a $250,000 fine. Sentencing is scheduled for May 3. Co-defendant Jasper Blackshear, 57, of Macon, pleaded guilty to conspiracy to possess with intent to distribute cocaine base on Dec. 16, 2021. Blackshear faces a maximum twenty years of imprisonment to be followed by three years of supervised release and a $1,000,000 fine. Sentencing is scheduled for April 6.
“These cases were made possible by investigative leads generated from ATF’s National Integrated Ballistic Information Network, known as NIBIN. The use of this system allows law enforcement to strategically focus their efforts to areas with the greatest density of shootings,” said U.S. Attorney Peter D. Leary. “Reducing violent crime is a top priority for the entire Middle Georgia community. The U.S. Attorney’s Office will continue to maximize every resource at our disposal to achieve this common goal.”
“NIBIN is proven technology that is an important tool in linking the criminal use of firearms with the actual trigger puller,” said ATF Acting Assistant Special Agent in Charge Jason Stricklin. “In this case, NIBIN allowed us to work with our local partners to identify and take these violent offenders off the street.”
“These arrests and convictions show what technology, teamwork and street level investigations can accomplish. The partnership between ATF agents and Bibb investigators as well as the NIBIN technology has been essential in bringing these gunslingers to justice,” said Bibb County Sheriff David J. Davis.
According to court documents, law enforcement used data compiled from NIBIN in order to identify locations where shell casings were collected from shooting events in Macon. These shooting events were then overlayed on a map, and teams of confidential informants and undercover agents investigated criminal activity in the areas with high density shootings. From May to July 2021, Purnell, Blackshear and White were under investigation. During this time, undercover agents and confidential informants purchased nine firearms and crack cocaine from Purnell, who is a convicted felon. The firearms included two semi-automatic rifles and a shotgun with an obliterated serial number. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
These cases are being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Bibb County Sheriff’s Office, the Georgia Department of Community Supervision and the Bibb County District Attorney’s Office are investigating the cases.
Assistant U.S. Attorney Will Keyes is prosecuting the cases.
MS-13 Member Sentenced to Life in Prison for RICO Conspiracy and Brutal Murder of Two TeenagersRead the Press Release
BOSTON – A member of the violent MS-13 gang was sentenced yesterday in federal court in Boston for RICO conspiracy and for his participation in the murders of two teenagers in Massachusetts—one in 2016 in East Boston and the other in 2018 in Lynn—in each instance playing a critical role in repeatedly stabbing a teenager to death.
Henri Salvador Gutierrez, a/k/a “Perverso,” 23, a Salvadoran national, was sentenced by U.S. Senior District Court Judge Mark L. Wolf to life in prison. In June 2021, Gutierrez pleaded guilty to racketeering, or RICO, conspiracy on behalf of MS-13. As part of his activities in furtherance of MS-13, Gutierrez played a critical role in two horrific murders in which teenagers were repeatedly stabbed to death in public parks in Massachusetts. Each of the victims was murdered with extreme atrocity and cruelty in violation of Massachusetts law.
MS-13, or La Mara Salvatrucha, is a transnational street gang operating in Massachusetts and numerous other states, as well as countries such as El Salvador, Honduras, and Guatemala. MS-13 gang members often commit acts of extreme violence against suspected rivals, those suspected of cooperating with law enforcement, and others who the gang views as a threat. The gang is also known for recruiting young members at local high schools, who are then groomed to commit violence in furtherance of the gang’s mission. In recent years, dozens of MS-13 members have been convicted of RICO conspiracy and other serious felonies in the District of Massachusetts.
MS-13 is organized into “cliques” or branches operating in local territories. Gutierrez was a member of the “Sykos Locos Salvatrucha” (Sykos) and, previously, the “Trece Locos Salvatrucha” (TLS) cliques of MS-13. Achieving promotion in MS-13 generally requires the commission of a significant act of violence, often including murder. The evidence in this case showed that Gutierrez was a “homeboy,” or full member of the MS-13 gang.
On Dec. 24, 2016, in furtherance of MS-13’s racketeering activities, Gutierrez participated in the murder of a teenage boy in East Boston. The evidence showed that Gutierrez lured the victim to a public soccer stadium based on Gutierrez’s belief that the victim may have been associated with a rival gang. Gutierrez personally stabbed the victim numerous times and left the victim’s body at the bottom of a stairwell. An autopsy revealed the victim had at least a dozen sharp force wounds consistent with a stabbing, with significant injuries to the neck, chest and back. His throat appeared to have been slashed, and he had multiple incised wounds to the neck and multiple stab wounds to the chest.
In 2017, while the December 2016 murder remained unsolved, and unrelated to that investigation, immigration authorities arrested Gutierrez as part of ongoing removal proceedings. Gutierrez had entered the United States unlawfully in 2014 and was facing deportation. Authorities sought to remove Gutierrez from the United States and pointed to evidence of his association with MS-13 as part of the reasons to oppose Gutierrez’s petition for asylum and other relief. Gutierrez submitted an affidavit and testified under oath at his removal proceedings. Through his statements, Gutierrez misled the immigration court, telling the court that he was not associated with MS-13, had not committed prior violence, and was committed to living a peaceful life in the United States. Relying in part on Gutierrez’s false testimony, in an order dated June 22, 2018, a United States Immigration Judge ordered Gutierrez released and adjusted his status to that of a person admitted for lawful permanent residence in the United States.
On July 30, 2018, barely a month after being released from immigration custody, Gutierrez committed his second murder, this time with five members of the Sykos clique of MS-13. The six assailants, four of whom were secretly armed with knives, took a 17-year-old boy to a park in Lynn and pretended to be friendly with the unsuspecting victim. At the scene, the six men surrounded the victim and repeatedly stabbed and hacked him to death. After killing the victim, the gang members left his body in the wooded area of the public park where it was discovered days later, on Aug. 2, 2018. An autopsy revealed that the victim suffered at least 32 distinct sharp force trauma wounds consistent with being stabbed repeatedly, along with multiple blunt force injuries. The victim also had small pieces of metal embedded in his head, consistent with parts of the large knives breaking with the force of the strikes to the victim’s skull.
The evidence in this case, which included a recording of Gutierrez describing the murder in graphic detail and boasting about it, revealed that the gang members murdered the victim based on their mistaken belief that he may have been assisting law enforcement. In the recordings, Gutierrez seemingly took pleasure in recounting the horrific act and expressed laughter while saying the murder was like “chopping wood,” as he and fellow gang members “were stabbing the knife right through him, bringing it down like [...] Bang, bang, bang, bang!”
Following an investigation in November 2018 Gutierrez was indicted along with the five other MS-13 members who participated in the July 2018 murder in Lynn. The six defendants in this case included five participants in the 2018 murder, as well as one longstanding member of the Sykos clique. In a related case, the government charged a juvenile co-conspirator who was the sixth person involved in the murder.
All six defendants indicted in this case, along with the juvenile charged in the related case, have pleaded guilty. Gutierrez is the third defendant to be sentenced in the case. On Feb. 14, 2022, Erick Lopez Flores, a/k/a “Mayimbu,” was sentenced to 40 years in prison. On Feb. 15, 2022, Jonathan Tercero Yanes, a/k/a “Desalmado,” was sentenced to 33 years in prison. Djavier Duggins, a/k/a “Haze,” is scheduled to be sentenced for RICO conspiracy today, Feb. 17, 2022, at 1 p.m. Sentencing hearings for the two remaining co-defendants, Eliseo Vaquerano Canas, a/k/a “Peligroso” and Marlos Reyes, a/k/a “Silencio,” have not yet been scheduled by the Court.
First Assistant United States Attorney Joshua S. Levy; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Essex County District Attorney Jonathan W. Blodgett; Suffolk County District Attorney Kevin Hayden; Acting Boston Police Commissioner Gregory Long; and Lynn Police Chief Christopher Reddy made the announcement. Assistant U.S. Attorneys Kunal Pasricha, Kaitlin O’Donnell, and Philip Mallard of the Criminal Division 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 https://www.justice.gov/OCDETF.
Lower Brule Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Dennis Holmes announced that a Lower Brule, South Dakota, man convicted of two counts of Abusive Sexual Contact was sentenced on February 14, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Benjamin Joseph Grassrope, age 33, was sentenced to 96 months in federal prison, followed by seven years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Grassrope was indicted by a federal grand jury on January 14, 2021. He pled guilty on November 18, 2021.
The convictions stem from an incident that occurred between May 9, 2008, and May 9, 2009, in Lower Brule, wherein an 11-year-old victim awoke to Grassrope inappropriately touching her on her breasts and groin. Further, between May 1, 2012, and August 31, 2012, in Lower Brule, Grassrope inappropriately touched a 12-year-old girl on the breasts and groin.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Grassrope was immediately turned over to the custody of the U.S. Marshals Service.
Lower Brule Man Indicted for Assault ChargesRead the Press Release
United States Attorney Dennis Holmes announced that a Lower Brule, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault of an Intimate Partner by Strangulation.
William Thigh, a/k/a, William Fire Cloud, age 36, was indicted on February 8, 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 11, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to ten years in federal prison and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on August 2, 2021, in Lower Brule, Thigh assaulted a woman with shod feet, a space heater, an electric fan, an air purifier, a metal bar, and electrical cords, with intent to do bodily harm to her. In addition, the Indictment charges that between November 28, 2021, and November 30, 2021, in Lower Brule, Thigh assaulted a woman with a rifle and shod feet, with intent to do bodily harm to her. On both occasions, Thigh is alleged to have unlawfully assaulted a spouse, intimate partner, and dating partner by strangulating and suffocating her, and attempting to do so.
The charges are merely accusations and Thigh is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs – Office of Justice Services, Crow Creek Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Thigh was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Leader of Bronx Violent Drug Crew Sentenced to 27 Years in Prison for Agreeing to Commit Murder for Hire, Gun Crimes, and Drug SellingRead the Press Release
Damian Williams, United States Attorney for the Southern District of New York, announced that SYDNEY SCALES was sentenced today to 27 years in prison for his role as the leader of a violent drug distribution organization that operated in the West Farms neighborhood of the Bronx, including his use of guns and participation in a murder-for-hire conspiracy in June 2017. SCLAES was sentenced by U.S. District Judge Jed S. Rakoff, after being convicted at trial in August 2021 of conspiring to distribute controlled substances, conspiring to commit murder for hire, and related firearms offenses.
U.S. Attorney Damian Williams said: “Sydney Scales was the leader of a violent drug crew. He caused at least one drug-related shooting, and he hired a hitman in an attempt to murder rival drug dealers who were having a barbecue in front of a neighborhood barbershop in the Bronx. Today’s sentence sends a powerful message that people who would commit violent crimes will be arrested, prosecuted, and face serious consequences.”
According to the Superseding Indictment and the evidence at trial:
Between in or about 2016 and in or about 2019, SCALES participated in a conspiracy to distribute crack cocaine, powder cocaine, heroin, fentanyl, and marijuana in the Bronx and elsewhere. SCALES also used, carried, and possessed firearms, which were brandished and discharged, in connection with the narcotics conspiracy, and aided and abetted such firearms offenses. For example, the Government offered evidence that on December 1, 2016, SCALES caused a shooting at rival drug dealers standing in front of a convenience store located next to the entrance of the West Farms subway station.
In addition, in or about June 2017, SCALES conspired to commit murder for hire, agreeing to pay another person for locating and killing at least one rival drug dealer.
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Mr. Williams praised the outstanding investigative work of the Department of Homeland Security, Homeland Security Investigations, and the New York City Police Department.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Frank Balsamello, Mathew Andrews, and Andrew K. Chan are in charge of the prosecution.
Lawrence Man Sentenced for Distributing Counterfeit Prescription Pills Containing FentanylRead the Press Release
BOSTON – A Lawrence man was sentenced today in federal court in Boston in connection with distributing counterfeit pills containing fentanyl.
Ruben Mejia, 28, was sentenced by U.S. Senior District Court Judge William G. Young to 45 months in prison and two years of supervised release. On Sept. 9, 2021, Mejia pleaded guilty to one count of possession with intent to distribute and distribution of fentanyl and heroin; two counts of possession with intent to distribute and distribution of 40 grams or more of fentanyl and heroin; and one count of possession with intent to distribute 400 grams or more of fentanyl and heroin.
Mejia distributed fentanyl pressed into pills designed to resemble actual pharmaceutical-grade oxycodone. End users of Mejia’s product could reasonably believe they were ingesting legitimate oxycodone pills, unaware that they were in fact consuming street fentanyl of uncertain dosage.
Mejia personally delivered or attempted to deliver approximately 6,000 pills, in total containing over 980 grams of fentanyl, to an undercover agent. On Aug. 13, 2020, Mejia sold an estimated 500 fentanyl pills disguised as oxycodone pills for $4,000 ($8 per pill). Mejia sold the pills, which he stored in a baby diaper, in five bags containing approximately 100 pills each. On Aug. 26, 2020, Mejia sold another estimated 500 fentanyl pills for $4,000. Mejia was arrested on Sept. 11, 2020, after he was found in possession of an estimated 5,000 fentanyl pills, which he planned to sell for $40,000.
United States Attorney Rachael S. Rollins; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Lawrence Police Chief Roy P. Vasque made the announcement. Assistant U.S. Attorney Craig Estes of Rollins’ Narcotics and Money Laundering Unit prosecuted the case.
Lame Deer man admits manslaughter charge in stabbing at Crow AgencyRead the Press Release
BILLINGS — A Lame Deer man accused of fatally stabbing another man during an argument at a Crow Agency convenience store on the Crow Indian Reservation admitted to a manslaughter charge today, U.S. Attorney Leif M. Johnson said.
James Posey Fisher Sr., 35, pleaded guilty to voluntary manslaughter. Fisher faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release.
U.S. District Judge Susan P. Watters presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for July 8. Fisher was detained pending further proceedings.
The government alleged in court documents that on June 28, 2020, at the Teepee Station convenience store in Crow Agency, Fisher stabbed the victim, identified as John Doe, once in the chest. The victim died of a single stab wound before reaching the hospital. Fisher and victim were with other individuals and were drinking heavily. At some point, John Doe started teasing Fisher about a fight the previous evening, saying he had to finish what Fisher had started. Fisher and John Doe began arguing in a car that Fisher was driving and continued the argument when they got out at the convenience store. The argument turned physical. Witnesses thought it was only a fist fight until John Doe backed up suddenly, ran a short distance and collapsed. Witnesses realized John Doe had been stabbed because he was bleeding. Fisher jumped back into the car and drove away.
Assistant U.S. Attorneys Lori Harper Suek and Jeanne R. Torske and student intern, Alex Butler, are prosecuting the case, which was investigated by the FBI.
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Kyle Man Sentenced for Illegal Possession of FirearmRead the Press Release
United States Attorney Dennis R. Holmes announced that a Kyle, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on February 11, 2022, by U.S. District Judge Jeffrey L. Viken.
Ramone McBride, age 24, was sentenced to 46 months in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
McBride was indicted by a federal grand jury on June 17, 2021, and pleaded guilty on October 22, 2021. The conviction stems from McBride, a previously convicted felon who is prohibited from possessing firearms, knowingly possessing an Armi Jager, model Dakota SAA, .357 Mangum caliber, single-action revolver, which was found after McBride came into contact with law enforcement in March 2021 at Rapid City.
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.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
McBride was immediately remanded to the custody of the U.S. Marshals Service.
Kiln Man Pleads Guilty to COVID-Related Wire FraudRead the Press Release
Gulfport, Miss. – A Kiln, Mississippi man pled guilty to wire fraud related to the COVID pandemic, announced U.S. Attorney Darren LaMarca and Special Agent in Charge David Denton of Homeland Security Investigations in New Orleans.
According to court records, on August 3, 2020, Trevon S. Evans, 25, was arrested by the Hancock County Sheriff’s Office in relation to two stolen vehicles. At the time of his arrest, Evans was in possession of multiple identification cards with different names. Further investigation revealed that Evans had taken advantage of elderly neighbors by convincing them to give him their personal identifying information so that he could help them receive benefits related to the COVID pandemic. Evans then used that information to apply for unemployment insurance under the Economic Security (CARES) Act benefits in the victims’ names and had them sent to him at his residence. The benefits totaled over $7,000 and were used by Mr. Evans at casinos along the Gulf Coast.
Evans will be sentenced on June 23, 2022, and faces a maximum penalty of twenty years in prison and a $250,000 fine.
The case was investigated by Homeland Security Investigations.
The case was prosecuted by Assistant U.S. Attorney Erica Rose.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization that expands states’ ability to provide unemployment insurance for many workers impacted by COVID-19, including for workers who are not ordinarily eligible for unemployment insurance benefits.
Anyone with information about attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866‑720‑5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Justice Department Resolves Lawsuits with Bakersfield Doctors to Ensure Equal Access to Health Care for People with HIVRead the Press Release
FRESNO, Calif. — The Justice Department today announced that it has filed proposed consent decrees with two obstetrician-gynecologist (OB/GYN) doctors in Bakersfield, California. The decrees, which are subject to approval by the United States District Court for the Eastern District of California, resolve the department’s lawsuits, the doctors, Umaima Jamaluddin, MD, and Chibuike Enyereibe Anucha, MD, PC, under the Americans with Disabilities Act (ADA). The department sued Dr. Jamaluddin and Dr. Anucha alleging violations of the ADA based on their refusal to provide routine medical care to a patient because the patient has HIV. Title III of the ADA prohibits doctors and other health care providers from discriminating against people with disabilities, including HIV.
One lawsuit alleged that Dr. Anucha told the patient that she needed a Pap smear and refused to perform it because the patient has HIV. The other lawsuit alleged that Dr. Jamaluddin refused to allow the same patient to make an appointment for routine preventative care because the patient has HIV.
“People with HIV have the right to equal access to doctors and medical services,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department remains steadfast in our commitment to eradicate discrimination against people with HIV and combat the spread of unfounded stereotypes and misinformation.”
“Of all people, medical providers should understand that erecting barriers to basic medical care based on an individual’s HIV status is unconscionable,” said U.S. Attorney Phillip A. Talbert for the Eastern District of California. “In 2022, it should not take a federal lawsuit to break down such barriers, however, the U.S. Attorney’s Office and our partners in the Civil Rights Division stand ready to litigate to vindicate the rights of individuals with disabilities.”
Under the consent decrees, the doctors have agreed to pay a total of $75,000 to the patient ($37,500 in each case) and to pay a $5,000 civil penalty to the United States in each case. The consent decrees also require the defendants to take and provide their staff with training; implement a non-discrimination policy; and comply with record-keeping obligations, including providing regular reports to the department.
Justice Department Resolves Lawsuits to Ensure Equal Access to Health Care for People with HIVRead the Press Release
The Justice Department today announced that it has filed proposed consent decrees with two obstetrician-gynecologist (OB/GYN) doctors in Bakersfield, California. The consent decrees, which are subject to approval by the U.S. District Court for the Eastern District of California, resolve the department’s lawsuits against the doctors, Umaima Jamaluddin MD, and Chibuike Enyereibe Anucha MD, PC, under the Americans with Disabilities Act (ADA). The department sued Dr. Jamaluddin and Dr. Anucha alleging violations of the ADA based on their refusal to provide routine medical care to a patient because the patient has HIV. Title III of the ADA prohibits doctors and other health care providers from discriminating against people with disabilities, including HIV.
One lawsuit alleged that Dr. Anucha told the patient that she needed a Pap smear and refused to perform it because the patient has HIV. The other lawsuit alleged that Dr. Jamaluddin refused to allow the same patient to make an appointment for routine preventative care because the patient has HIV.
“People with HIV have the right to equal access to doctors and medical services,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department remains steadfast in our commitment to eradicate discrimination against people with HIV and combat the spread of unfounded stereotypes and misinformation.”
“Of all people, medical providers should understand that erecting barriers to basic medical care based on an individual’s HIV status is unconscionable,” said U.S. Attorney Phillip A. Talbert for the Eastern District of California. “It should not take a federal lawsuit to break down such barriers, however, the U.S. Attorney’s Office and our partners in the Civil Rights Division stand ready to litigate to vindicate the rights of individuals with disabilities.”
Under the consent decrees, the doctors have agreed to pay a total of $75,000 to the patient ($37,500 in each case) and to pay a $5,000 civil penalty to the United States in each case. The consent decrees also require the defendants to take and provide their staff with training; implement a non-discrimination policy; and comply with record-keeping obligations, including providing regular reports to the department.
These cases were handled jointly by the Disability Rights Section of the Civil Rights Division and the U.S. Attorney’s Office for the Eastern District of California. For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. ADA complaints may be filed online at www.ada.gov/complaint.
View the Anucha consent decree here. View the Jamaluddin consent decree here.
Justice Department Announces First Director of National Cryptocurrency Enforcement TeamRead the Press Release
The Justice Department today announced the selection and appointment of Eun Young Choi to serve as the first Director of the National Cryptocurrency Enforcement Team (NCET).
Ms. Choi is a seasoned prosecutor with nearly a decade of experience within the department, and most recently served as Senior Counsel to the Deputy Attorney General. She will assume her duties full-time effective today.
“With the rapid innovation of digital assets and distributed ledger technologies, we have seen a rise in their illicit use by criminals who exploit them to fuel cyberattacks and ransomware and extortion schemes; traffic in narcotics, hacking tools and illicit contraband online; commit thefts and scams; and launder the proceeds of their crimes,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The NCET will serve as the focal point for the department’s efforts to tackle the growth of crime involving these technologies. Eun Young is an accomplished leader on cyber and cryptocurrency issues, and I am pleased that she will continue her service as the NCET’s inaugural Director, spearheading the department’s efforts in this area.”
The NCET was established to ensure the department meets the challenge posed by the criminal misuse of cryptocurrencies and digital assets, and comprises attorneys from across the department, including prosecutors with backgrounds in cryptocurrency, cybercrime, money laundering and forfeiture. The NCET will identify, investigate, support and pursue the department’s cases involving the criminal use of digital assets, with a particular focus on virtual currency exchanges, mixing and tumbling services, infrastructure providers, and other entities that are enabling the misuse of cryptocurrency and related technologies to commit or facilitate criminal activity. The NCET will set strategic priorities regarding digital asset technologies, identify areas for increased investigative and prosecutorial focus, and lead the department’s efforts to coordinate with domestic and international law enforcement partners, regulatory agencies and private industry to combat the criminal use of digital assets. Finally, the NCET will enhance the Criminal Division’s existing efforts to provide support and training to federal, state, local, and international law enforcement to build capacity to aggressively investigate and prosecute serious crimes involving cryptocurrency and digital assets in the United States and around the world.
The NCET’s work will be furthered through close collaboration with components across the department, including the Criminal Division’s Computer Crime and Intellectual Property Section and Money Laundering and Asset Recovery Section; the U.S. Attorneys’ offices; the National Security Division; and the FBI, including the FBI’s new Virtual Asset Exploitation Unit, a specialized team of cryptocurrency experts dedicated to providing analysis, support, and training across the FBI, as well as innovating its cryptocurrency tools to stay ahead of future threats.
“The department has been at the forefront of investigating and prosecuting crimes involving digital currencies since their inception,” said Director Choi. “The NCET will play a pivotal role in ensuring that as the technology surrounding digital assets grows and evolves, the department in turn accelerates and expands its efforts to combat their illicit abuse by criminals of all kinds. I am excited to lead the NCET’s incredible and talented team of attorneys, and to get to work on this important priority for the department. I would like to thank Assistant Attorney General Polite and the Criminal Division’s leadership for this opportunity.”
Prior to her service as Senior Counsel to Deputy Attorney General Lisa O. Monaco, Director Choi began her career at the department as an Assistant U.S. Attorney for the Southern District of New York, where she served as the office’s Cybercrime Coordinator and investigated and prosecuted cyber, complex fraud and money laundering crimes, with a particular focus on network intrusions, digital currency, the dark web and national security investigations. She served as lead prosecutor in a variety of cases, including the investigation of a transnational organization responsible for the hacking of J.P. Morgan Chase and a dozen other financial companies; the operation of Coin.mx, an unlicensed virtual currency exchange; and the only U.S. prosecution brought in connection with the “Panama Papers.” In addition, she successfully argued the appeal before the Second Circuit in the case against Ross Ulbricht, the founder and chief administrator of the Silk Road, the first darknet marketplace. Earlier in her career, she served as a law clerk to the Honorable Naomi Reice Buchwald of the U.S. District Court for the Southern District of New York, and the Honorable Reena Raggi of the U.S. Court of Appeals for the Second Circuit. She is a graduate of Harvard College and Harvard Law School.
Jefferson County Man Sentenced to Lengthy Prison Term for Drug TraffickingRead the Press Release
BEAUMONT, Texas – A Port Arthur man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Troy Reese, 20, pleaded guilty on May 25, 2021 to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 135 months in federal prison on Feb. 16, 2022, by U.S. District Judge Thad Heartfield.
According to information presented in court, in June and July of 2019, traffic stops revealed a group of individuals out of Port Arthur, including Reese, were conspiring with individuals in Houston to distribute methamphetamine and China White. China White is an extremely dangerous synthetic heroin tainted with chemicals similar to fentanyl. The conspiracy involved using cellular applications such as CashApp to purchase narcotics and stolen or fraudulent credit cards to purchase hotel rooms and other items used in the drug trafficking conspiracy. Reese was indicted by a federal grand jury on June 3, 2020.
The case was investigated by the Drug Enforcement Administration and the Port Arthur Police Department and prosecuted by Assistant U.S. Attorney Rachel Grove.
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Indian Trail Man Is Sentenced to 13.5 Years in Prison for Robbing A Family Dollar Store at Gun PointRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Robert J. Conrad Jr. ordered James Arden Alexander, 33, of Indian Trail, N.C., to serve 162 months in prison and two years of supervised release for robbing a Family Dollar store, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Alexander’s co-defendant, Gerran McClure, 33, of Charlotte, was previously sentenced to four years in prison and two years of supervised release.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Johnny Jennings of the Charlotte-Mecklenburg Police Department (CMPD) join U.S. Attorney King in making today’s announcement.
According to court documents and today’s sentencing hearing, on December 16, 2019, at approximately 5:15 p.m., Alexander entered the Family Dollar store located at 6716 Nations Ford Road in Charlotte. Upon entering, Alexander pointed a firearm at two customers and the store’s cashier and ordered them to get on the ground. Court records show that the victims complied and Alexander went behind the counter. He then pointed his firearm at the cashier and forced her to stand up and open the register. Alexander took cash out of the register and the store’s safe and fled the scene. Shortly thereafter, CMPD officers located Alexander and McClure in a vehicle and attempted to stop them. McClure and Alexander ignored the officers, drove recklessly, and fled into South Carolina. The South Carolina Highway Patrol continued to attempt to pull over the getaway car, and eventually were successful in stopping the vehicle on Interstate 77. Both defendants were arrested at the scene. CMPD officers recovered from the vehicle the cash taken from the Family Dollar store, a loaded firearm, and additional firearm magazines.
On April 12, 2021, Alexander pleaded guilty to robbery of a business affecting interstate commerce, or “Hobbs Act” robbery. McClure pleaded guilty to being an accessory after the fact to the Hobbs Act robbery.
Alexander is currently in federal custody and will be transferred into the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked the FBI and CMPD for their investigation of this case and the South Carolina Highway Patrol for their assistance in this case.
Assistant U.S. Attorneys Stephanie Spaugh and David Kelly of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Husband and Wife Realtor Team Plead Guilty to Wire FraudRead the Press Release
ABINGDON, Va. – A husband and wife realtor team from Abingdon, Virginia, pleaded guilty yesterday to federal wire fraud charges related to their scheme to create fake residential sales contracts in order to obtain advance sales commissions to which they were not entitled.
Jessee Allen DeLoach, 40, and Natasha Ashley Miller DeLoach, 38, both pleaded guilty yesterday to one count of wire fraud.
According to court documents, the DeLoaches owned a real estate agency called Koltown Properties, Inc., which operated in Southwest Virginia. Between March 2016 and November 2019, the defendants created at least nineteen phony residential sales contracts and submitted them to multiple advance commission companies throughout the country in order to fraudulently obtain money.
Advance commission companies provide a financial service to real estate agents by assisting them with cash flow. Specifically, real estate agents may sell portions of their pending commissions on legitimate residential sales contracts in exchange for access to cash before the closing date.
One scheme the DeLoaches used was to create entirely false sales contracts for properties they knew were either not under contract or that listed buyers and sellers who did not exist. In another scheme, the DeLoaches altered valid residential sales contracts to reflect that no other real estate agent was involved in order to double their claimed sales commissions. To further their schemes, the DeLoaches created fake title companies, including one named Excel Title Company, to validate the fraudulent contracts to the advance commission companies so they would in turn authorize commission payments to the DeLoaches.
United States Attorney Christopher R. Kavanaugh and Special Agent in Charge Stanley M. Meador of the FBI made the announcement.
Both Natasha and Jessee DeLoach pleaded guilty to one count of wire fraud and agreed to pay over $146,000 in restitution. At sentencing, the couple faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Federal Bureau of Investigation and the Virginia State Police investigated the case, with assistance from the Wise County Commonwealth Attorney’s Office.
Assistant U.S. Attorney Lena L. Busscher is prosecuting the case.
Houstonian who attempted suicide after sexual acts sent to prisonRead the Press Release
HOUSTON – A 47-year-old local man has been ordered to prison for sexually exploiting children, announced U.S. Attorney Jennifer B. Lowery.
Adam Albert Sanchez pleaded guilty July 8, 2021, to production of child pornography.
Today, U.S. District Judge Alfred Bennett sentenced Sanchez to serve 264 months in federal prison. In handing down the prison term, the court noted that the actions of Sanchez have altered the minor victim’s life forever. He added that it will impact all of her relationships going forward and how she raises her children if she ever decides to become a parent. Sanchez was further ordered to pay $3,000 in restitution to the victim and will serve 20 years on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.
In February 2020, authorities encountered minor female online as part of an unrelated investigation. Realizing her young age, law enforcement told her to report any inappropriate conduct she had experienced with any adults online to her parents and authorities. They were eventually able to locate the victim’s family and contacted them.
The investigation revealed Sanchez had picked her up near her home in Cypress and took her to a nearby hotel. At that location, he engaged in sexual intercourse with her and recorded it.
When law enforcement examined the minor’s phone, they found images in a hidden album. The images were also located on Sanchez’s phone. They showed him engaging in oral sex with her along with other sexual acts.
Sanchez learned authorities had visited the victim’s home and asked her to delete everything from her phone. Shortly thereafter, he attempted to take his own life and was admitted to a residential treatment facility.
Sanchez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation.
Assistant U.S. Attorney Sherri L. Zack is prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Gulfport Man Pleads Guilty to Gun OffenseRead the Press Release
Gulfport, Miss. – A Gulfport man pleaded guilty to being an unlawful user of a controlled substance in possession of a firearm, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Brad Byerley of the Drug Enforcement Administration.
According to court documents and information presented to the Court, on October 23, 2021, Booker Timothy Jackson, 45, was stopped for a traffic violation by officers working with the Gulfport Police Department. Officers searched the vehicle and located suspected methamphetamine, suspected marijuana, cocaine residue, and a 9mm pistol. Jackson was taken into custody and admitted to selling narcotics to support his drug addiction.
On November 6, 2021, Jackson was stopped again. This time officers found a stolen firearm in his possession. Jackson admitted that he purchased the gun. He also admitted to smoking cocaine multiple times a week.
Jackson is scheduled to be sentenced on May 19, 2022. He faces a maximum sentence of 10 years in prison.
The DEA and Gulfport Police Department investigated the case.
Assistant U.S. Attorney Jonathan Buckner is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Gulfport Man Pleads Guilty to Being a Felon in Possession of a FirearmRead the Press Release
Gulfport, Miss. – A Gulfport man pleaded guilty to being a felon in possession of a firearm, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Brad Byerley of the Drug Enforcement Administration.
According to court documents and information presented to the Court, on December 4, 2021, Adrin Maurice Murphy, 27, was stopped for a traffic violation by officers working with the Gulfport Police Department. Officers searched the vehicle and located marijuana, packaged for resale, and a Glock Model 27 handgun. Murphy was taken into custody and admitted to possession of the marijuana and the handgun. Murphy had two prior felony convictions.
Murphy is scheduled to be sentenced on May 19, 2022. He faces a maximum sentence of 10 years imprisonment. However, if he is determined to be an armed career criminal, he faces from 15 years to life imprisonment.
The DEA and Gulfport Police Department investigated the case.
Assistant U.S. Attorney Jonathan Buckner is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Guatemalan National is Extradited on International Cocaine Trafficking and Maritime Smuggling ChargesRead the Press Release
Assistant U.S. Attorney Kevin Mokhtari (619) 546-8402
NEWS RELEASE SUMMARY – February 17, 2022
SAN DIEGO – Suspected drug trafficker Rafael Orlando Ramirez Barillas, a Guatemalan national who was extradited to the United States from Guatemala on Thursday, February 10, 2022 to face international cocaine trafficking and maritime smuggling charges in the Southern District of California, appeared in federal court today and was ordered detained pending trial.
Ramirez Barillas, aka “Thor,” is charged in an indictment stemming from a long-term joint investigation led by Homeland Security Investigations and the Drug Enforcement Administration in conjunction with the U.S. Attorney’s Office in San Diego.
Ramirez Barillas is charged with operating a conspiracy to distribute five kilograms and more of cocaine in Colombia, Ecuador, Guatemala, Costa Rica, El Salvador, Mexico and elsewhere, knowing and intending that the cocaine would be unlawfully imported into the United States. Ramirez Barillas is also charged with being in a conspiracy to distribute five kilograms and more of cocaine on board a vessel.
Ramirez Barillas made his initial court appearance on Friday, February 11, 2022 in San Diego before U.S. Magistrate Judge Bernard G. Skomal. This afternoon, U.S. Magistrate Judge Skomal ordered Ramirez Barillas detained pending trial.
According to court documents and statements made by prosecutors at today’s hearing, Ramirez Barillas was alleged to be the partner of convicted Guatemalan drug trafficker Luis Carlos Melgar-Morales, aka “Aquaman,” who admitted to distributing over 10,000 kilograms of cocaine during an approximately two-year conspiracy. Ramirez Barillas was described as an organizer and leader in the conspiracy to distribute cocaine in Guatemala and several other South and Central American countries. As part of the conspiracy, and as alleged in the indictment and set forth in other public documents, Ramirez Barillas and his co-conspirators coordinated the smuggling of multi-ton quantities of cocaine from South America to Guatemala with an ultimate destination of the United States.
During the investigation, the United States Coast Guard made multiple seizures of cocaine from vessels on international waters that were linked to Ramirez Barillas and his co-conspirators. According to the indictment, the conspiracy began on a date unknown and continued up to and including November 2018.
On July 17, 2021, Ramirez Barillas was arrested in Guatemala pursuant to an extradition request from the United States. Guatemala subsequently granted his extradition, and on February 10, 2022, Ramirez Barillas was extradited to United States.
“This office is committed to aggressively pursuing drug traffickers in Central America who use international waters as a corridor to smuggle cocaine to the United States,” said U.S. Attorney Randy Grossman. “This extradition marks the culmination of years of efforts by agents and prosecutors to keep those who flood the United States with cocaine accountable for their actions.” Grossman thanked the prosecution team and law enforcement agencies for their excellent work on this case.
“This extradition demonstrates the need to continue to work together with our foreign partners to disrupt drug trafficking,” said Chad Plantz, Special Agent in Charge for HSI San Diego. “This effort also resulted in significant seizures of the transnational criminal organization’s narcotics, firearms, and illicit proceeds, and led to the identification of additional high-ranking members. HSI will remain committed in our investigative efforts to bring additional members of this organization to justice.”
“This case, including last week’s extradition, demonstrates the success DEA and our law enforcement partners have had targeting foreign drug sources of supply,” said DEA Special Agent in Charge Shelly S. Howe. “DEA will continue to seize large quantities of drugs before they reach our shores and devastate our communities. Our strong relationships with our foreign counterparts allow us to bring drug suppliers to justice in the United States.”
“This indictment resulted from our collaborative efforts to disrupt transnational criminal organizations and prevent illicit drugs from making their way to the United States,” said Rear Adm. Brian Penoyer, the Eleventh Coast Guard District commander. “I am grateful for the hard work of the dedicated women and men of the Department of Justice and the Southern District of California who built this case alongside Coast Guard ships and crews involved in several interdiction cases in the Eastern Pacific Ocean, dismantling smuggling organizations, putting smugglers behind bars and keeping drugs off our streets. I hope our Coast Guard crews conducting counterdrug patrols today in the Pacific Ocean see the effects of this monumental occasion. I cannot thank the Southern District of California enough for their efforts to ensure justice is served to those seeking to harm our country.”
The Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest and extradition of Ramirez Barillas.
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
DEFENDANT
Case Number 18cr4696-DMS
Rafael Orlando Ramirez Barillas Age: 32 Guatemala City, Guatemala
aka “Thor,” aka “Rafa”
SUMMARY OF CHARGES
International Conspiracy to Distribute Controlled Substances – Title 21, U.S.C., Section 959, 960, 963
Criminal Forfeiture – Title 21, U.S.C., Section 853Maximum Penalty: Life in prison and $10 million fine
Conspiracy to Distribute Cocaine on Board a Vessel Subject to the Jurisdiction of the United States –
Title 46, U.S.C., Sections 70503, 70506(b)
Criminal Forfeiture – Title 46, U.S.C., Section 70507(a)
Maximum Penalty: Life in prison and $10 million fineAGENCIES
Homeland Security Investigations (HSI)
Drug Enforcement Administration (DEA)
Customs and Border Protection (CBP)
U.S. Coast Guard
HSI Attaché Guatemala City, Guatemala
HSI Attaché Mexico City Mexico
Department of Justice, Office of International Affairs
Department of Justice, Office of Enforcement Operations
Department of Justice, Organized Crime and Drug Enforcement Task Force (OCDETF)
Joint Task Force-Investigations (JTF-I)
Joint Interagency Task Force-South (JIATF-S)
Greenville Felon Sentenced to Prison for Firearm PossessionRead the Press Release
Oxford, Mississippi – A Greenville man was sentenced today to over 3 years in prison for possession of a firearm by a convicted felon.
According to court documents, Kordarial Hughes aka “Yao Ming”, 33, of Greenville, Mississippi, plead guilty to possession of a firearm by a convicted felon. He was sentenced by U.S. District Court Judge Michael P. Mills to serve 40 months in prison, followed by 3 years of supervised release. Hughes, who was detained pending trial, was remanded into custody of the U.S. Marshals following sentencing.
“The prosecution of individuals who illegally possess and use firearms is a continued priority for this office,” stated U.S. Attorney Clay Joyner. “We will continue to work alongside our local, state and federal law enforcement partners to ensure that those who commit gun-related crimes are held accountable.”
FBI Special Agent in Charge Jermicha Fomby also commented on the sentence, stating “Getting guns out of the hands of felons and off the streets is one of our top priorities. The FBI is committed to working hand-in-hand with our state and local partners to ensure violent criminals are held accountable and brought to justice. We will continue to work diligently to keep the citizens of Mississippi safe.”
The FBI and the Greenville Police Department investigated the case. The case was prosecuted by AUSA Robert Mims.
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.
Grant County man sentenced for meth chargeRead the Press Release
ELKINS, WEST VIRGINIA – Justin Arthur See, of Cabins, West Virginia, was sentenced today to 96 months of incarceration for a methamphetamine charge, United States Attorney William Ihlenfeld announced.
See, 42, pleaded guilty in April 2021 to one count of “Possession with Intent to Distribute Methamphetamine.” See admitted to having more than 50 grams of methamphetamine in February 2019 in Grant County.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. Potomac Highlands Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The task force consists of the FBI, West Virginia State Police, the Mineral County Sheriff’s Office, the Hampshire County Sheriff’s Office, the Grant County Sheriff’s Office, and the Keyser Police Department.
U.S. District Judge Thomas S. Kleeh presided.
Grand Jury Returns Two 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.
Madison Man Charged with Drug & Gun Crimes
Keante K. Gunn, 31, Madison, Wisconsin, is charged with one count of distributing heroin and crack cocaine, two counts of distributing heroin, fentanyl, and crack cocaine, one count of distributing fentanyl and crack cocaine, and one count of possessing heroin, fentanyl, crack cocaine, and methamphetamine with the intent to distribute. The indictment charges that the distributions occurred in April 2021 and that he possessed heroin, fentanyl, crack cocaine, and methamphetamine for distribution on June 16, 2021.
The indictment also charges Gunn with being a felon in possession of a firearm and ammunition. It alleges that on June 16, 2021, he possessed a 9mm handgun and ammunition.
If convicted, Gunn faces a maximum penalty of 20 years in federal prison on each of the drug counts and a maximum of 10 years on the gun count. The charges against him are the result of an investigation by the Madison Police Department, Dane County Narcotics Task Force, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Steven Anderson is handling the prosecution.
Marquette County Man Charged with Gun Crime
Charles Leofilos, 34, Oxford, Wisconsin, is charged with being a felon in possession of a firearm. The indictment alleges that on March 15, 2021, he possessed a Taurus handgun.
If convicted, Leofilos faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the La Crosse Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Taylor Kraus is handling the prosecution.
The indictments charging Gunn and Leofilos have been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition, and violent crimes and drug crimes that involve the use of firearms.
Glenwood Woman Sentenced to Prison for Methamphetamine OffenseRead the Press Release
COUNCIL BLUFFS, IA – Sarah Diane Adams, age 36, of Glenwood, was sentenced February 14, 2022, to 78 months in prison for Conspiracy to Distribute Methamphetamine. Her term of imprisonment will be followed by five years of supervised release. According to court documents, Adams pleaded guilty to the methamphetamine offense in January of 2021. Her co-defendant, Joshua Matthew St. John was sentenced to 132 months in prison on December 17, 2021.
An initial law enforcement investigation revealed Adams lived with St. John in April of 2020 at a residence in Glenwood and they sold methamphetamine. On April 2, 2020, a confidential source made arrangements with St. John to purchase a quarter pound of methamphetamine. The confidential source traveled to St. John’s residence in Glenwood and was then directed by Adams to a stash house location. The quarter pound requested by the confidential source was removed from a larger bag containing methamphetamine and delivered by Adams to the confidential source. On April 24, 2020, the confidential source met St. John in Glenwood to purchase additional methamphetamine and reported seeing a large quantity of methamphetamine inside Adam’s residence. Law enforcement executed a search warrant on Adam’s residence and recovered approximately a half pound of methamphetamine and distribution paraphernalia.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Iowa Division of Narcotics Enforcement, Council Bluffs Police Department, Pottawattamie County Sheriff’s Office, Mills County Sheriff’s Office, and Glenwood Police Department investigated the case. This case was prosecuted by the United States Attorney’s Offices for the Southern District of Iowa.
Founder and Former Chief Investment Officer of New York Based Investment Adviser Charged with Securities Fraud and Obstruction of JusticeRead the Press Release
Damian Williams, United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced that JAMES VELISSARIS, the founder and former chief investment officer of Infinity Q Capital Management (“Infinity Q”), a New York based investment adviser that ran a mutual fund and a hedge fund that purported to have approximately $3 billion in assets under management, was charged with securities fraud and obstruction of justice for orchestrating a scheme to lie to investors and falsify documents. VELISSARIS made false and misleading statements to investors and others concerning Infinity Q’s process for valuing certain over-the-counter (“OTC”) derivative positions that made up a substantial portion of the holdings of the mutual and hedge funds, and also fraudulently mismarked those securities in ways that did not reflect their fair value. VELISSARIS committed the mismarking scheme in order to inflate the value of the investment funds as reported to investors, to attract and retain capital, and to increase his own compensation. In order to avoid detection of the scheme, VELISSARIS provided both Infinity Q’s auditor and the Securities and Exchange Commission (“SEC”) with falsified or altered documents, including providing the auditor with altered term sheets that served to provide fabricated support for the fraudulently inflated values. VELISSARIS surrendered to FBI agents in Atlanta, Georgia this morning and is expected to be presented later today.
U.S. Attorney Damian Williams said: “As alleged, James Velissaris violated his obligation to put the interests of his investors before his own profits. In order to attract and retain investments in the funds that he operated, Velissaris lied about the independence of the process that he used to value fund assets, and he manipulated that process to convince investors that the funds were performing much better than they were. He then tried to cover his tracks by submitting fabricated or altered documents to the funds’ auditor and the SEC. This case further demonstrates the Office’s continued commitment to stamping out financial fraud, whether it be in private funds or the public markets.”
FBI Assistant Director Michael J. Driscoll said: "Investment fraud schemes may seem like a tried and true way to get rich quick, but the perpetrators are often too confident in their abilities to hide their illegal activity from investigators. As was the case with Velissaris, the truth caught up with him, and his alleged lies were exposed. Today he faces the consequences of his actions."
According to the allegations contained in a six-count Indictment unsealed today in Federal court and other publicly-available information:[1]
Background
VELISSARIS was the founder and chief investment officer of Infinity Q, an investment adviser that ran both a mutual fund (the “Mutual Fund”), started in about 2014, and a hedge fund (the “Hedge Fund,” and collectively the “Investment Funds”), started in about 2017. As of 2021, the two funds purported to have approximately $3 billion in assets under management. Infinity Q was headquartered in New York, New York, and employed a small staff including a chief compliance and chief risk officer (“Employee-1”).
A major component of both the Mutual Fund and the Hedge Fund’s holdings were over-the-counter (“OTC”) derivative positions that involved customized contracts that allowed the counterparties to take positions on the volatility, or price movement, of underlying assets or indices. VELISSARIS, through Infinity Q, represented to its investors that it valued these OTC derivative positions based on fair value, and that in order to do so, it utilized the services of an independent third-party provider. In particular, Infinity Q represented to investors and other stakeholders that it used Bloomberg Valuations Service (“BVAL”) to independently calculate the fair value of these positions, in accordance with the terms of the underlying derivative contracts. These OTC derivative positions comprised hundreds of millions of dollars of the Investment Funds’ portfolios.
Velissaris’ Scheme to Lie to Investors and Inflate Derivative Swap Positions
In fact, however, VELISSARIS defrauded Infinity Q’s investors by taking an active role in the valuation of Infinity Q’s positions, and by modeling the positions in ways that were not based on the actual terms of the underlying contracts and were inconsistent with fair value. VELISSARIS’ input into the BVAL valuation process was inconsistent with Infinity Q’s representations about the independence of the process and allowed VELISSARIS to fraudulently mismark positions in BVAL. VELISSARS engaged in the mismarking of positions in BVAL by making false entries in BVAL’s system including by secretly altering the computer code employed by BVAL that caused BVAL to alter and disregard certain critical terms. Altering and disregarding terms in this fashion caused BVAL to report values that were artificially inflated and, often, much higher than fair value.
By manipulating OTC derivative positions in BVAL in this way, VELISSARIS caused numerous positions in the Investment Funds to have anomalous and, at times, impossible valuations. For example, at times, VELISSARIS made manipulations in either the Mutual Fund and/or the Hedge Fund that caused certain identical positions that were held by both the Mutual Fund and the Hedge Fund (namely, a position where all the material terms are the same) to have substantially divergent values. In other cases, some of VELISSARIS’ manipulations caused certain positions held by the Investment Funds to have impossible values, such as where under the true terms of the swap, the value adopted by VELISSARIS could only be true if volatility were negative – a condition which is mathematically impossible.
Ultimately, after VELISSARIS’ mismarking scheme was uncovered in or about February 2021, Infinity Q liquidated the Investment Funds and sold its OTC derivative positions. These positions were sold for hundreds of millions of dollars less than their purported market values in BVAL thereby resulting in substantial losses to the investors in the Investment Funds.
Velissaris Lies to Auditors and Obstructs the SEC’s Investigation
In order to hide this scheme and prevent its detection, VELISSARIS lied to numerous outside stakeholders and regulators. First, in order to prevent Infinity Q’s outside auditor (the “Auditor”) from discovering the fraud VELISSARIS provided the Auditor with falsified term sheets from counterparties that he had altered to change the true terms of certain OTC derivative positions. In particular, in connection with a number of audits, the Auditor selected certain OTC positions that it would independently value in order to confirm the reasonableness of Infinity Q’s values from BVAL. In order to ensure that the Auditor would not arrive at materially different results when independently valuing positions that VELISSARIS had manipulated in BVAL, VELISSARIS altered the terms of certain deal documents and provided them to the Auditor. After receiving these falsified documents and relying on them in its independent evaluation, the Auditor confirmed the reasonableness of VELISSARIS’ valuations in BVAL.
Furthermore, beginning in May 2020, the SEC opened an inquiry and later an investigation into Infinity Q’s valuation practices. In connection with that investigation, VELISSARIS provided false and misleading information to the SEC. For example, when the SEC asked for original documents that had been provided to investors, VELISSARIS altered the documents before providing them to the SEC, including certain alterations that would help hide his mismarking scheme. For example, Infinity Q’s original investor materials stated that “[o]nce a price is established for a portfolio security, it shall be used for all Funds that hold the security.” As explained above, this was untrue and on numerous occasions, manipulations in BVAL made by VELISSARIS caused the same positions in the Mutual Fund and the Hedge Fund to have substantially different values. To conceal the falsity of Infinity Q’s disclosures, VELISSARIS along with Employee-1 removed this line from investor documents that were provided to the SEC.
In June 2020, the SEC requested that Infinity Q provide additional materials, including documents regarding Infinity Q’s valuation committee and all of its meeting minutes. Infinity Q’s investor materials had represented that Infinity Q had a valuation committee, including VELISSARIS, that the committee would meet monthly or more often, and that VELISSARIS would be responsible for preparing minutes of such meetings. In fact, however, VELISSARIS had not kept notes of any such meetings. Accordingly, days before responding to the SEC, VELISSARIS made up notes purporting to be from valuation committee meetings in 2019 and 2020 and submitted them to the SEC.
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VELISSARIS, 37, of Atlanta, Georgia, is charged with securities fraud, wire fraud, lying to auditors, and obstruction of justice, each of which carries a maximum sentence of 20 years in prison; and investment adviser fraud and conspiracy to obstruct justice, each of which carries a maximum sentence of 5 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the work of the Federal Bureau of Investigation. He further thanked the Securities and Exchange Commission and the Commodity Futures Trading Commission for their cooperation and assistance in this investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Daniel Loss and Daniel Tracer are in charge of the prosecution.
[1]As the introductory phrase signifies, the entirety of the text of the Indictments and the description of the Indictments set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
Fort Thompson Woman Sentenced for Assaulting a Federal OfficerRead the Press Release
United States Attorney Dennis Holmes announced that a Fort Thompson, South Dakota, woman convicted of Assaulting, Resisting, and Impeding a Federal Officer was sentenced on February 14, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Jennifer Surrounded, age 36, was sentenced to 22 months in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Surrounded was indicted by a federal grand jury on March 9, 2021. She pled guilty on November 16, 2021.
The conviction stemmed from an incident that occurred on February 12, 2021, in Fort Thompson. Surrounded assaulted an officer with a knife while the officer was engaged in the performance of his official duties.
This case was investigated by the Bureau of Indian Affairs – Office of Justice Services, Crow Creek Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Surrounded was immediately turned over to the custody of the U.S. Marshals Service.
Fort Thompson Man Sentenced for Domestic Assault by an Habitual OffenderRead the Press Release
United States Attorney Dennis Holmes announced that a Fort Thompson, South Dakota, man convicted of Domestic Assault by an Habitual Offender was sentenced on February 14, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Richard Coleman, Jr., age 34, was sentenced to sixteen months in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Coleman was indicted by a federal grand jury on October 14, 2020. He pled guilty on November 2, 2021.
The conviction stemmed from an incident that occurred on July 22, 2020, in Fort Thompson, in which Coleman threw a can at his significant other, striking her in the chest. At the time of the domestic assault, Coleman had at least two prior convictions for offenses that would have been, if subject to federal jurisdiction, an assault against a spouse or intimate partner.
This case was investigated by the Bureau of Indian Affairs – Office of Justice Services, Crow Creek Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Coleman was immediately turned over to the custody of the U.S. Marshals Service.
Former top employee of workout supplement manufacturer convicted of misleading consumersRead the Press Release
McALLEN, Texas – A 26-year-old former leader at Science Production Products LLC (SPP) admitted he committed a felony relating to importing and selling misbranded drugs, announced U.S. Attorney Jennifer B. Lowery.
Robert Lance Schuffert, 28, Auburn, Alabama, entered a guilty plea to one count of importing, causing misbranding and distributing misbranded drugs for sale with the intent to mislead and defraud the Food and Drug Administration (FDA) and consumers.
Schuffert admitted SPP smuggled Selective Androgen Receptor Modulators (SARMs) into the United States, such as Ostarine from China. He also admitted the company caused SARMs to become misbranded drugs and sold them to workout supplement brick-and-mortar retailers throughout the United States. This included a retailer located in McAllen.
The FDA has warned against the use of SARMs like those found in SPP’s products. They issued a public safety alert in 2017, which advised consumers against ingesting workout supplement products containing SARMs. The FDA reported that these products were linked to life-threatening reactions, including liver toxicity and increased risk of heart attack and stroke.
As part of his plea, Schuffert also admitted he intended to mislead and defraud the FDA and consumers. He knowingly smuggled mislabeled containers containing SARMs into the United States from China and used false and fraudulent certificates of analysis. He also utilized various consignee names, freight forwarders and private mailboxes to conceal SPP’s true identity and deceived authorities as to the true nature of the smuggled drugs.
U.S. District Judge Randy Crane will impose sentencing May 3. At that time, Schuffert faces up to three years in prison and a possible $10,000 maximum fine.
Schuffert was permitted to remain on bond pending that hearing.
The FDA’s Office of Criminal Investigation and FBI conducted the investigation. Assistant U.S. Attorneys Asha Natarajan and Andrew Swartz are prosecuting the case.
Former football player sentenced in carfentanil overdose death of star athleteRead the Press Release
HOUSTON – A 27 year-old Katy resident and former football star at both Cinco Ranch High School and Rice University has been ordered to federal prison for distributing a deadly synthetic opioid, announced U.S. Attorney Jennifer B. Lowery.
Stuart Mouchantaf pleaded guilty Feb. 20, 2020. At that time, he admitted he distributed carfentanil to a former football star at Rice University with NFL aspirations which resulted in his death.
Today, U.S. District Judge Sim Lake ordered Mouchantaf to serve a total of 144 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard statements from the victim’s mother, sister and father. In handing down the sentence, the court noted the case was one of the more difficult cases he had heard. He added that the sentence was necessary to promote general deterrence from the crime and respect for the law as well as just punishment for the offense.
In March 2018, a Rice University student had failed to report to football practice. Authorities responded to 1900 block of Norfolk where they found the body. They pronounced him dead on the scene. The Harris County Institute of Forensic Sciences conducted an autopsy and determined the cause of death resulted from the toxic effects of carfentanil.
The investigation revealed Mouchantaf provided pills containing carfentanil to the victim which ultimately resulted in his death.
Mouchantaf was a former football player and captain on the Rice football team. A Houston-area native, Mouchantaf had played football at Cinco Ranch High School before attending Rice.
Mouchantaf has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Houston Police Department led this part of the Organized Crime Drug Enforcement Task Forces (OCDETF) investigation as part of “Operation Be That Guy” with the assistance of U.S. Postal Inspection Service, Drug Enforcement Administration and FBI. Assistant U.S. Attorneys Jason Corley and Robert Stabe prosecuted the case.
OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Former Portland Marathon President Indicted in Federal CourtRead the Press Release
PORTLAND, Ore.—A federal grand jury in Portland returned an indictment today charging the former president and event director of the Portland Marathon for defrauding the charitable organization that had backed the event since the early 1980s.
Lester V. Smith, Jr., 80, of Tomball, Texas, has been charged with wire fraud and tax evasion.
According to court documents, for nearly 35 years, Smith served as the president and event director of Portland Marathon Inc. (PMI), the charitable organization formerly responsible for planning and operating the Portland Marathon. In these roles, Smith managed the organization’s day-to-day operations and finances, and had sole authority to approve expenses paid from PMI’s business bank account.
Beginning in January 2012 and continuing until at least April 2018, Smith is alleged to have made or directed others to make unauthorized transfers of funds from PMI’s bank account to his own personal checking account, paid various personal credit cards with PMI funds, and wrote unauthorized checks from PMI payable to himself. On one occasion, Smith used a PMI check to purchase a $60,000 Infiniti sport utility vehicle. Smith also used stolen funds to pay for home remodeling projects, shopping sprees at department stores, home décor, furniture, and other luxury goods and services. While defrauding PMI, Smith is also alleged to have substantially underreported his taxable income to the IRS in at least four different tax years.
In total, Smith is alleged to have stolen more than $1 million from PMI.
Smith will make his first appearance in federal court on March 10, 2022.
Wire fraud is punishable by up to 20 years in federal prison and a $250,000 fine. Tax evasion is punishable by up to five years in federal prison and a $250,000 fine.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the FBI and IRS Criminal Investigation. Claire M. Fay, Assistant U.S. Attorney for the District of Oregon, is prosecuting the case.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Former Philadelphia Man Conspired to Deal a Cocaine and Meth MixtureRead the Press Release
PITTSBURGH, PA – A former resident of Philadelphia, Pennsylvania, pleaded guilty in federal court in Pittsburgh on charges of violating federal narcotics law, United States Attorney Cindy K. Chung announced today.
Terry Suggs, Jr., age 37, currently an inmate at NEOCC, pleaded guilty to two counts before District Judge Joy Flowers Conti. In connection with the guilty plea, the Court was advised that Suggs conspired to distribute and possessed with intent to distribute a cocaine and methamphetamine mixture.
In connection with the guilty plea, the Court was advised that on February 25, 2019, investigators with the Allegheny County District Attorney Narcotics Enforcement Team (D.A.N.E.T), conducted a controlled purchase and delivery operation, relating to an ongoing investigation into drug-trafficking activity coming from Philadelphia, Pennsylvania, to Allegheny County. As a result of this investigation, law enforcement apprehended Clark and Suggs with approximately 23 kilograms of a cocaine/methamphetamine mixture, which were located within hidden compartments in the vehicles driven by each of the defendants. Additionally, in the vehicle operated by Suggs, $8,060.00 was seized.
Judge Conti has scheduled sentencing for May 3, 2022, at 11:00 AM. The law provides for a total sentence of not more than 20 years in prison, a fine not to exceed $1,000,000, and a term of supervised release of at least three years. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Allegheny County District Attorney Narcotics Enforcement Team (D.A.N.E.T), made the initial arrest on February 25, 2019, and the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Suggs.
Former North Carolina Police Sergeant Resentenced for Using Excessive Force Against an ArresteeRead the Press Release
The Justice Department announced today that Robert George, 49, was resentenced today by U.S. District Judge Kenneth D. Bell to three years in prison and one year of supervised release in connection with a 2013 incident that occurred while he was a Sergeant with the Hickory Police Department in North Carolina.
On Jan. 17, 2019, a federal jury convicted George of using excessive force for assaulting a woman whom he had arrested and transported to the Hickory Police station. George was previously sentenced to a term of probation by a different U.S. District Court judge following the trial, but the Fourth Circuit Court of Appeals reversed and remanded the case for resentencing.
The evidence at trial established that on Nov. 11, 2013, George assaulted a woman following her arrest. George forcibly pulled the handcuffed woman out from his police car and slammed her face-down onto the ground in the driveway just outside of the police station’s sally port. The forceful impact with the pavement caused the woman to suffer serious injuries that included a broken nose, severe dental trauma that required multiple surgeries and facial lacerations. Following the assault, George locked the woman in a cell and placed a spit-hood over her head because she was bleeding severely. The assault was captured by the police station’s security camera.
“Police officers who violently and unlawfully assault people in their custody, causing severe physical injuries and trauma, are not above the law and will be held accountable,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “This sentencing sends a strong message that the Justice Department will continue to aggressively prosecute officers who abuse their power by using unlawful force on people in their custody.”
“A person’s constitutional rights do not cease to exist during or after an arrest,” said U.S. Attorney Dena J. King of the Western District of North Carolina. “A federal jury rightfully decided that former police sergeant George used excessive force against an individual in his custody, and today’s resentencing reflects the seriousness of his unlawful conduct. As federal prosecutors, we have a duty to protect everyone’s civil rights and to investigate and prosecute federal law violations involving police misconduct. We owe it to the people living in the Western District and to the thousands of law enforcement officers who serve and protect the public with honor and dedication.”
“The security video of George's actions that day in 2013, is sickening,” said Special Agent in Charge Robert R. Wells of the FBI Charlotte Division. “We are grateful to our partners at the Hickory Police Department who immediately began an internal investigation and requested state and federal assistance. We hope today's resentencing sends a message that no one is above the law, and everyone deserves to be treated with respect and dignity.”
The case was investigated by the FBI and prosecuted by Civil Rights Division Criminal Section Trial Attorney Sanjay Patel and Assistant U.S. Attorney Kimlani Ford from the U.S. Attorney’s Office for the Western District of North Carolina.
Former North Carolina Police Sergeant Resentenced for Using Excessive Force Against an ArresteeRead the Press Release
CHARLOTTE, N.C. – The Justice Department announced today that Robert George, 49, was resentenced today by U.S. District Judge Kenneth D. Bell to three years in prison and one year of supervised release in connection with a 2013 incident that occurred while he was a Sergeant with the Hickory Police Department in North Carolina.
On Jan. 17, 2019, a federal jury convicted George of using excessive force for assaulting a woman whom he had arrested and transported to the Hickory Police station. George was previously sentenced to a term of probation by a different U.S. District Court judge following the trial, but the Fourth Circuit Court of Appeals reversed and remanded the case for resentencing.
The evidence at trial established that on Nov. 11, 2013, George assaulted a woman following her arrest. George forcibly pulled the handcuffed woman out from his police car and slammed her face-down onto the ground in the driveway just outside of the police station’s sally port. The forceful impact with the pavement caused the woman to suffer serious injuries that included a broken nose, severe dental trauma that required multiple surgeries and facial lacerations. Following the assault, George locked the woman in a cell and placed a spit-hood over her head because she was bleeding severely. The assault was captured by the police station’s security camera.
“Police officers who violently and unlawfully assault people in their custody, causing severe physical injuries and trauma, are not above the law and will be held accountable,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “This sentencing sends a strong message that the Justice Department will continue to aggressively prosecute officers who abuse their power by using unlawful force on people in their custody.”
“A person’s constitutional rights do not cease to exist during or after an arrest,” said U.S. Attorney Dena J. King of the Western District of North Carolina. “A federal jury rightfully decided that former police sergeant George used excessive force against an individual in his custody, and today’s resentencing reflects the seriousness of his unlawful conduct. As federal prosecutors, we have a duty to protect everyone’s civil rights and to investigate and prosecute federal law violations involving police misconduct. We owe it to the people living in the Western District and to the thousands of law enforcement officers who serve and protect the public with honor and dedication.”
“The security video of George's actions that day in 2013, is sickening,” said Special Agent in Charge Robert R. Wells of the FBI Charlotte Division. “We are grateful to our partners at the Hickory Police Department who immediately began an internal investigation and requested state and federal assistance. We hope today's resentencing sends a message that no one is above the law, and everyone deserves to be treated with respect and dignity.”
The case was investigated by the FBI and prosecuted by Civil Rights Division Criminal Section Trial Attorney Sanjay Patel and Assistant U.S. Attorney Kimlani Ford from the U.S. Attorney’s Office for the Western District of North Carolina.
Former Massachusetts Resident Pleaded Guilty to Conspiracy to Commit Sex Trafficking and Related ChargesRead the Press Release
A former Brockton, Massachusetts, resident pleaded guilty today to conspiracy to commit sex trafficking and related charges. Matthew Engram, 35, pleaded guilty to one count of conspiracy to commit sex trafficking by force, fraud or coercion, two counts of transportation of an individual for purposes of prostitution, and one count of conspiracy to commit interstate travel in aid of a racketeering enterprise.
As part of the plea hearing held in federal court, Engram admitted that from January 2009 until August 2015, he and a co-conspirator recruited and trafficked three victims from a residence in Brockton, and elsewhere, and Engram took all or part of the proceeds. Engram advertised the victims on websites, exchanged text messages with his co-conspirator to share advertisements, organized prostitution dates, and reserved hotel rooms. When these victims did not comply with Engram’s demands to prostitute for his profit, he physically assaulted them or directed a co-conspirator to physically assault them. Engram also admitted that he transported, or caused the transport of the victims to other states, including Connecticut, Pennsylvania, New York, Virginia, Florida and Maine, to perform commercial sex acts.
“Human trafficking is an insidious crime that exploits vulnerable members of our society, causing unimaginable and lasting harm,” said Assistant Attorney General Kristen Clarke of the Civil Rights Division. “The Justice Department is committed to using every available resource to prosecute human traffickers and to support human trafficking survivors.”
Sentencing in this matter has been set for May 19, 2022. The charge of conspiracy to commit sex trafficking through force, fraud, or coercion provides for a maximum sentence of life in prison, no fewer than five years of supervised release and a fine of up to $250,000. The charges of transportation of an individual for purposes of prostitution provides for a sentence of up to 10 years in prison, three years of supervised release, and a fine of up to $250,000. The charge of conspiracy to commit interstate travel in aid of racketeering provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Homeland Security Investigations conducted the investigation with the assistance of the Boston Police Department. Assistant U.S. Attorney Suzanne Sullivan Jacobus of U.S. Attorney Rollins’s Major Crimes Unit and Trial Attorneys Shan Patel and Vasantha Rao of the Civil Rights Division prosecuted the case.
Former Founder and Ceo of Nanotechnology Company Convicted of Multimillion-Dollar Securities Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that JAMES JEREMY BARBERA was convicted today following a one-week jury trial before the Honorable John G. Koeltl. As the jury found, between 2013 and 2020, BARBERA, the founder and former chief executive officer of a New York-based nanotechnology company, Nanobeak Biotech, Inc. (“Nanobeak”), lied to investors and misappropriated investors’ funds. The jury convicted BARBERA of three counts: securities fraud, wire fraud, and conspiracy.
U.S. Attorney Damian Williams said: “As the jury unanimously determined, James Jeremy Barbera lied to investors about his company’s technology and stole millions of dollars of investor funds intended for research and development. Barbera then tried to cover up his misconduct by providing false financial information to investors and the company’s board of directors. Now he awaits sentencing for his crimes.”
According to the Indictment, evidence presented during trial, court documents, and statements in open court:
From in or about 2013 and in or about 2019, BARBERA was the founder and CEO of Nanobeak, a privately held nanotechnology company that represented to investors that the company had developed a breathalyzer sensor technology that could detect cancer and narcotics in human breath.
From at least in or about 2013 through in or about 2020, BARBERA and others perpetrated a scheme to defraud dozens of investors out of at least approximately $8.4 million (i) by soliciting investments through false and misleading statements, (ii) by failing to use investors’ funds as promised, and (iii) by converting investors’ money to his own use. BARBERA and others made false and misleading representations to actual and potential investors, including as set forth below:
BARBERA falsely represented that Nanobeak had developed a breathalyzer sensor that could detect narcotics and cancer in a person’s breath, and that the company was expected to earn millions of dollars in sales revenue through distribution contracts. In truth and in fact, Nanobeak never developed the purported technology, and it was impossible for the company to generate revenue because there was no breathalyzer device to sell and accordingly, no distribution contracts.
BARBERA also falsely represented that Nanobeak would soon have an initial public offering (“IPO”), which would result in large profits to investors. In truth and in fact, the company was not close to an IPO, and BARBERA was permanently barred from serving as the CEO of a public company as a result of a prior, unrelated proceeding brought by the U.S. Securities and Exchange Commission (“SEC”).
BARBERA falsely represented that he had undergraduate and graduate degrees in physics from New York University, and that he had a business degree from the Massachusetts Institute of Technology. In truth and in fact BARBERA never finished college and never attended MIT.
BARBERA converted to his own use at least approximately $3.3 million of the approximately $8.4 million in investor funds in the form of cash withdrawals and to pay personal expenses, including private school and college tuition for his children, mortgage payments on his Central Park West apartment, and for his other personal items, such as credit card bills, jewelry, automobiles, and daily living expenses.
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BARBERA, 65, of New York, New York, was convicted at trial of one count of securities fraud, one count of wire fraud, and one count of conspiracy to commit securities fraud and wire fraud. BARBERA faces a maximum sentence of 20 years in prison on each of the securities and wire fraud counts and a maximum sentence of five years in prison on the conspiracy count. The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentence imposed upon BARBERA will be determined by the judge. BARBERA is scheduled to be sentenced by Judge Koeltl on June 15, 2022.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation and NASA’s Office of Inspector General, and also thanked the SEC for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Kiersten A. Fletcher, Daniel Loss, and Joshua A. Naftalis are in charge of the prosecution.
Former Fort Dix Correctional Officer Sentenced to 26 Months in Prison for Accepting Bribes in Exchange for Delivering Contraband to InmatesRead the Press Release
NEWARK, N.J. – A former federal correctional officer was sentenced today to 26 months in prison for accepting approximately $50,000 in cash bribes in exchange for delivering contraband to federal inmates, U.S. Attorney Philip R. Sellinger announced.
Paul Anton Wright, 36, of Cinnaminson, New Jersey, previously pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to Count 1 of a five-count indictment, charging him with accepting cash bribes to take official action and commit acts in violation of his duties as a public official, specifically as an employee of the Federal Bureau of Prisons. Judge Salas imposed the sentence today.
According to documents filed in the case and statements made in court:
From 2014 through April 2018, Wright was employed as a correctional officer at Federal Correctional Institution Fort Dix (FCI Fort Dix), a Bureau of Prisons facility located in Burlington County. In 2015, while at FCI Fort Dix, Wright agreed to accept cash bribes in exchange for smuggling contraband, including tobacco, K2 (synthetic marijuana) and suboxone (a narcotic used to treat opioid addiction), to inmates.
Wright received cash bribes from two individuals outside of FCI Fort Dix. From February to September 2015, Wright traveled to Philadelphia on multiple occasions to meet with a relative of an FCI Fort Dix inmate and subsequently delivered contraband, including K2, to the inmate. From October to December of 2015, Wright traveled to New York City on multiple occasions to pick up contraband from a different inmate’s associate from whom he also received bribes in return for smuggling the contraband into FCI Fort Dix.
In addition to the prison term, Judge Salas sentenced Wright to three years of supervised release. Wright previously consented to a $50,000 money judgment against, forfeiting monies he accepted as bribes.
U.S. Attorney Sellinger credited special agents with the U.S. Department of Justice, Office of Inspector General, Washington, D.C., Field Office, under the direction of Special Agent in Charge Russell W. Cunningham, with the investigation leading to today’s sentencing. He also thanked special agents of the FBI for their assistance in the prosecution.
The government is represented by Assistant U.S. Attorneys Mark J. McCarren and Tazneen Shahabuddin of the U.S. Attorney’s Special Prosecutions Division in Newark.
Former Brockton Man Pleads Guilty to Sex TraffickingRead the Press Release
BOSTON – A former Brockton man pleaded guilty today in federal court in Boston to sex trafficking charges.
Matthew Engram, 35, pleaded guilty to one count of conspiracy to commit sex; trafficking two counts of transportation of an individual for purposes of prostitution; and one count of conspiracy to commit interstate travel in aid of a racketeering enterprise. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for May 19, 2022.
From January 2009 until August 2015, Engram and a co-conspirator recruited and trafficked three identified victims, as well as others, from a residence in Brockton and elsewhere to engage in commercial sex acts and took all or part of the proceeds. Engram advertised on websites, exchanged text messages with his co-conspirator to share advertisements, organized prostitution dates and reserved hotel rooms. When the victims did not comply with Engram’s demands to prostitute themselves for his profit, he physically assaulted them or directed his co-conspirator to physically assault them. Engram also transported, or caused to transport, the victims to other states, including Connecticut, Pennsylvania, New York, Virginia, Florida and Maine, to perform commercial sex acts.
The charges of conspiracy to commit sex trafficking provides for a sentence of up to life in prison, a mandatory minimum of five years and up to a lifetime of supervised release and a fine of up to $250,000. The charges of transportation of an individual for purposes of prostitution provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. The charge of conspiracy provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Rachael S. Rollins; Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division; Matthew B. Millhollin, Special Agent in Charge of the Homeland Security Investigations in Boston; Boston Police Acting Commissioner Gregory Long; and Brockton Police Chief Emanuel Gomes made the announcement today. Assistance was provided by Homeland Security Investigations in Philadelphia. Assistant U.S. Attorney Suzanne Sullivan Jacobus, of Rollins’ Major Crimes Unit and Trial Attorneys Shan Patel and Vasantha Rao of the Civil Rights Division are prosecuting the case.
Former Angels Communications Director Eric Kay Convicted in Tyler Skaggs Overdose CaseRead the Press Release
An ex-employee of the Los Angeles Angels was convicted today in connection with the 2019 overdose death of Angles pitcher Tyler Skaggs, announced U.S. Attorney for the Northern District of Texas Chad Meacham.
After less than an hour and a half of deliberation, a federal jury found former Angels Communications Director Eric Prescott Kay, 47, guilty of distribution of a controlled substance resulting in death and conspiracy to possess with intent to distribute controlled substances.
According to evidence presented at trial, Mr. Kay distributed the pills that killed Mr. Skaggs.
The investigation began on July 1, 2019, when the Southlake Police Department received a 911 call stating that Mr. Skaggs, then just 27 years old, had been found dead in his hotel room at the Southlake Town Square Hilton. The Tarrant County Medical Examiner’s office later determined that Mr. Skaggs had a mixture of ethanol, fentanyl, and oxycodone in his system at the time of his death..
Inside Mr. Skaggs’s hotel room, investigators discovered a number of pills, including a single blue pill with the markings M/30. An analysis of the pill – which closely resembled a 30-milligram oxycodone tablet – revealed it had been laced with fentanyl, a powerful synthetic opiate.
In an initial interview with law enforcement, Mr. Kay denied knowing whether Mr. Skaggs was a drug user. He claimed the last time he’d seen Mr. Skaggs was at hotel check-in on June 30. However, a search of Mr. Skaggs’s phone revealed text messages from June 30 suggesting that he had asked Mr. Kay to stop by his room with pills late that evening. Investigators later learned that, contrary to what he’d told law enforcement the day Mr. Skaggs’s body was discovered, Mr. Kay had admitted to a colleague that he had, in fact, visited Mr. Skaggs’s room the night of his death.
In the course of their investigation, the Drug Enforcement Administration determined that Mr. Kay allegedly regularly dealt the blue M/30 pills – dubbed “blue boys” – to Mr. Skaggs and to others, dolling out the pills at the stadium where they worked.
Several former Angels players, including Matt Harvey, C.J. Cron, Mike Morin, and Cameron Bedrosian testified at trial that Eric Kay distributed blue 30 milligram oxycodone pills to them as well. They further testified that he was the only source of these pills and would conduct transactions in the Angels Stadium.
“This case is a sobering reminder: Fentanyl kills. Anyone who deals fentanyl — whether on the streets or out of a world-famous baseball stadium — puts his or her buyers at risk,” said U.S. Attorney Chad Meacham. “No one is immune from this deadly drug. A beloved pitcher, Tyler Skaggs was struck down in the midst of an ascendant career. The Justice Department is proud to hold his dealer accountable for his family and friends’ unimaginable loss.”
“Unfortunately, this guilty verdict will not bring Mr. Skaggs back or take away the suffering his family and friends have endured since 2019. What it does do; however, is affirm that justice prevails and drug dealers and enablers, like Mr. Kay, will be held accountable for their reckless actions,” said Eduardo A. Chávez, Special Agent in Charge of DEA Fort Worth. “DEA will continue to aggressively investigate the distribution of diverted and counterfeit prescription drugs in our communities. The memories of those lives lost to drug overdose must not be in vain.” -
Mr. Kay now faces between 20 years and life in federal prison. His sentencing has been set for June 28, 2022. Following the reading of the verdict, the defendant was immediately remanded into the custody of the United States Marshal Service.
The Drug Enforcement Administration’s Fort Worth Field Division and the Southlake Police Department conducted the investigation with the assistance of the Tarrant County District Attorney’s Office, the Federal Bureau of Investigation, the United States Secret Service, and the Tarrant County Medical Examiner’s Office. Assistant U.S. Attorneys Lindsey Beran, Errin Martin, and Joe Lo Galbo are prosecuting the case with the help of Assistant U.S. Attorney Jon Bradshaw. Senior U.S. District Judge Terry R. Means presided over the trial.
CORRECTION: An earlier version of this release put Mr. Kay's age at 45. He was 45 when he was first charged, but was 47 when he was convicted.
Florida Man Sentenced in Multi-Million-Dollar Medicare Fraud SchemeRead the Press Release
BOSTON – A Florida man was sentenced yesterday for his role in a multi-million-dollar Medicare fraud scheme involving durable medical equipment.
Nathan LaParl, 34, of Boca Raton, Fla., was sentenced by U.S. District Court Senior Judge George A. O’Toole, Jr. to three years of probation, the first year to be served subject to a curfew and forfeiture in the amount of $220,671. On Jan. 21, 2021, LaParl pleaded guilty to one count of receiving kickbacks in connection with a federal health care program and one count of violating the HIPAA statute.
LaParl and co-defendant Talia Alexandre sold Medicare patients’ personal and medical data to Juan Camilo Perez Buitrago. LaParl and Alexandre worked with foreign call centers to contact Medicare patients to ask if they were interested in durable medical equipment (DME) such as arm, back, knee and shoulder braces “at little to no cost.” The call centers collected demographic and insurance information from Medicare patients, which LaParl and Alexandre sold to Perez Buitrago. Together, LaParl and Alexandre received more than $1.6 million from Perez Buitrago for the patient data. Perez Buitrago used that patient data to submit more than $109 million in false and fraudulent claims, submitting claims for DME that was not prescribed, not necessary, and, in many instances, never requested or received.
To perpetuate the scheme, LaParl checked Medicare patients’ insurance eligibility by improperly accessing a patient eligibility tool provided by co-defendant Stefanie Hirsch. Hirsch owned EI Medical, Inc., a Medicare-enrolled wheelchair and scooter repair company that qualified for access to a health care clearinghouse that contains Medicare patients’ personal, medical and insurance information. Hirsch improperly gave LaParl access to that clearinghouse and charged him about $0.25 per patient eligibility check. Using Hirsch’s credentials, LaParl accessed the personal and medical data of more than 350,000 patients.
Hirsch pleaded guilty to violating the HIPAA statute and was sentenced on Sept. 21, 2021, to three years of probation. Hirsch was also ordered to pay a fine of $2,500. Alexandre pleaded guilty to one count of receiving kickbacks in connection with a federal health care program and was sentenced on Dec. 8, 2021, to three years of probation with the first year spent in home detention. Alexandre was also ordered to pay a fine of $5,000 and restitution in the amount of $1.47 million
United States Attorney Rachael S. Rollins; Johnnie Sharp Jr., Special Agent in Charge of the Federal Bureau of Investigation, Birmingham Field Division; Phillip M. Coyne, Special Agent in Charge of the Department of Health and Human Services, Office of the Inspector General, Boston Division; and Ketty Larco Ward, Inspector in Charge of the U.S. Postal Inspection Service made the announcement. Assistant U.S. Attorney Elysa Q. Wan of Rollins’ Health Care Fraud Unit prosecuted the case.
Five Defendants Indicted for Pump-and-Dump Stock Fraud SchemeRead the Press Release
Assistant U. S. Attorneys Aaron P. Arnzen (619) 546-8384 and Andrew J. Galvin (619) 546-9721
NEWS RELEASE SUMMARY – February 17, 2022
SAN DIEGO – Five men from California, Nevada and Florida are charged in an indictment unsealed today with conspiring to manipulate the market for the stock of a healthcare company whose products include COVID-19 diagnostic tests.
The defendants are accused of manipulating the market for the stock of Global WholeHealth Partners Corporation (Ticker: GWHP), which advertised itself as a company focused on healthcare-related development and products. The defendants include Brian Volmer of Carson City, Nevada; Joshua Yafa of Boca Raton, Florida, and his brother, Jamie Yafa of Kissimmee, Florida; Charles Strongo of San Clemente, California; and Carl Marciniak of Minden, Nevada. All were arrested or otherwise contacted by law enforcement today in their hometowns.
According to the indictment, the defendants’ crime involved efforts to run a pump-and-dump scheme in Global WholeHealth Partners’ stock. Their scheme included maintaining control over the company’s free-trading shares through secret nominee accounts; artificially inflating the stock’s price and trading volume by promoting the stock through high pressure call rooms and penny stock newsletters; engaging in manipulative stock trading; and selling the stock at inflated prices to unwitting investors. The defendants collectively spoke on dozens of recorded calls about key aspects of their scheme.
“Pump and dump schemes deteriorate the integrity of the securities markets and destroy Main Street investors’ confidence in their ability to invest on a level playing field,” said U.S. Attorney Randy Grossman. “This case should serve as a reminder that individuals who manipulate the United States securities markets are being scrutinized by law enforcement and will be held accountable.” Grossman thanked the prosecution team, the FBI and the Securities and Exchange Commission for their excellent work on this case.
“These defendants engaged in a conspiracy to inflate stock prices through false and misleading information to enrich themselves and make a quick profit,” said FBI Special Agent in Charge Suzanne Turner. “The FBI is proud to work alongside our partners at the United States Securities and Exchange Commission to preserve the integrity of the stock market and protect honest investors.”
The Securities and Exchange Commission has also taken civil action against several of the defendants in this case.
Case Number 21cr1310-WQH
DEFENDANTS
Brian Volmer Age: 58 Carson City, NV
Joshua Yafa Age: 47 Boca Raton, FL
Jamie Yafa Age: 43 Kissemmee, FL
Charles Strongo Age: 58 San Clemente, CA
Carl Marciniak Age: 57 Minden, NV
SUMMARY OF CHARGES
Conspiracy – Title 18, U.S.C. § 371
Securities Fraud – Title 15, U.S.C. §§ 78j(b) and 78ff, and Title 17, C.F.R., § 240.10b-5
Maximum penalty: Twenty years in prison and $5 million fine
AGENCIES
Federal Bureau of Investigation
United States Securities and Exchange Commission
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty
Felons in Possession of Firearms Are Sentenced in Federal CourtRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Kenneth D. Bell sentenced today a Hickory, N.C. man to 77 months in prison for a federal firearms violation, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Chaetez Sean Clayton, 31, was also ordered to serve three years of supervised release upon completion of his prison term.
According to filed court documents and statements made in court, on May 6, 2020, Clayton sold a loaded Springfield .40 caliber pistol with a high capacity magazine and a loaded Ruger 9mm pistol for $1,000 in cash. A jury found Clayton guilty in June 2021 for possession of a firearm by a convicted felon. Clayton was prohibited from possessing firearms due to his 2015 federal conviction of possession with intent to distribute cocaine.
In a separate case, earlier this week Judge Bell handed down a 78-month prison sentence to Davion Lee Drayton, 25, of Charlotte, for possession of a firearm by a convicted felon. Court documents filed in this case show that on February 25, 2021, officers with the Charlotte-Mecklenburg Police Department (CMPD) attempted to conduct a traffic stop of the vehicle Drayton was driving. Drayton was able to evade the officers after he stopped his vehicle and fled the scene. A CMPD officer inspected Drayton’s vehicle and observed in plain view a Glock 17 9mm semi-automatic pistol with a high capacity magazine. According to court records, the firearm had a round in the chamber and at least 20 rounds in the magazine. Drayton was arrested by law enforcement on the federal indictment on May 19, 2021. At the time he was arrested, Drayton illegally possessed another firearm. He pleaded guilty to possession of a firearm by a felon in September 2021.
In making today’s announcement, U.S. Attorney King thanked the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) for their investigation of Clayton’s case, and thanked the North Carolina State Bureau of Investigation, the Hickory Police Department, the Catawba County Sheriff’s Office, and the Burke County Sheriff’s Office for their invaluable assistance. ATF and CMPD handled the investigation into Drayton.
Assistant U.S. Attorneys Christopher Hess and Lambert Guinn were in charge of Clayton’s prosecution, and Assistant U.S. Attorney David Kelly prosecuted the case against Drayton.
Federal Inmate Pleads Guilty to Drug Distribution Conspiracy while in PrisonRead the Press Release
PITTSBURGH – Shamar Banks pleaded guilty to conspiring to distribute Schedule I synthetic cannabinoid controlled substances while in prison between 2017 and 2019, United States Attorney Cindy K. Chung announced today.
Banks, age 41, formerly of York, Pennsylvania, pled guilty before United States District Judge J. Nicholas Ranjan. Judge Ranjan scheduled sentencing to occur on June 16, 2022. Banks was serving a federal prison sentence for prior drug trafficking when he committed the additional drug trafficking crime to which he pled guilty.
The law provides for a sentence of up to 30 years in prison and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed is to be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Drug Enforcement Administration, the Internal Revenue Service – Criminal Investigation, the federal Bureau of Prisons, and the Pennsylvania Office of Attorney General led the multi-agency investigation that also included the United States Postal Inspection Service, the Beaver County District Attorney’s Office, the Department of Homeland Security/Homeland Security Investigations, the Pittsburgh Bureau of Police, the United States Marshals Service, the Pennsylvania State Police, the Munhall Police Department, the Robinson Township Police Department, the McKees Rocks Police Department, the Stowe Township Police Department, the Etna Police Department, and the Erie County District Attorney’s Office.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Federal Grand Jury Returns Indictment Charging Florida Man with Human SmugglingRead the Press Release
MINNEAPOLIS – Steve Anthony Shand, 47, has been indicted by a federal grand jury on two counts of human smuggling, announced Acting United States Attorney Charles J. Kovats.
According to court documents, on January 19, 2022, law enforcement agents with Homeland Security Investigations responded to a request for assistance from the U.S. Border Patrol (USBP) based out of Pembina, North Dakota. USBP initiated a traffic stop on a white-colored, fifteen passenger van less than one mile south of the U.S./Canadian border in a rural area between the official ports of entry located at Lancaster, Minnesota and Pembina, North Dakota. Shand was identified as the driver of the vehicle. Law enforcement asked for identification of the two passengers in the van and determined them to be undocumented Indian nationals. Shand was taken into custody by USBP agents.
This case is the result of an investigation conducted by Homeland Security Investigations and U.S. Customs and Border Protection.
Assistant U.S. Attorney Laura Provinzino is prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Farmington Woman Sentenced to Prison for Stealing $103K from Bank CustomerRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that LEE BLANCHETTE, 59, of Farmington, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 12 months and one day of imprisonment, followed by three years of supervised release, for stealing more than $100,000 from a customer of the bank where she was employed.
According to court documents and statements made in court, Blanchette was employed by Bank of America as a relationship manager. As a relationship manager, Blanchette had the authority to cause temporary ATM cards to be activated and assigned to a customer’s account. Between August 2014 and March 2016, Blanchette caused multiple temporary ATM cards to be activated for bank accounts of a customer who Blanchette knew was experiencing cognitive decline. Without the customer’s authorization, Blanchette used the temporary ATM cards to withdraw significant funds from the customer’s accounts, keeping a significant portion for her own benefit, and causing a loss of $103,080.
Judge Meyer ordered Blanchette to pay full restitution to Bank of America, which covered the victim’s losses.
On May 25, 2021, Blanchette pleaded guilty to one count of bank fraud.
Blanchette, who is released on bond, is required to report to prison on April 4.
This matter was investigated by Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Jennifer R. Laraia.
The Justice Department has established a National Elder Fraud Hotline to provide services to seniors who may be victims of financial fraud. The Hotline is staffed by experienced case managers who can provide personalized support to callers. Case managers assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller. The Hotline’s toll-free number is 833-FRAUD-11 (833-372-8311). For more information, please visit: https://ovc.ojp.gov/program/stop-elder-fraud/providing-help-restoring-hope.
El Paso Businessman Sentenced to Prison for Underreporting Income TaxesRead the Press Release
EL PASO – An El Paso man was sentenced today to a total of 12 months of confinement for filing false personal tax returns.
According to court documents, Victor Manuel Gonzalez Estrada, aka Victor Manuel Gonzalez, 60, was the owner of Tax Preparation Services. Internal Revenue Service Criminal Investigation (IRS CI) agents discovered that Gonzalez filed fraudulent federal income tax returns for multiple years. Gonzalez claimed his income from his tax preparation business was $17,462; $18,450; and $25,328 for tax years 2014, 2015 and 2016, respectively. Court records revealed that Gonzalez earned over $350,000 during that period. In addition to underreporting his yearly income, Gonzalez applied for and improperly received refunds through the Earned Income Tax Credit (EITC). EITC is a refundable tax credit for low to moderate income workers.
On August 24, 2021, Gonzalez pleaded guilty to three counts of filing a false personal tax return. In addition to his confinement, Gonzalez was ordered to file his accurate amended taxes for 2013, 2014, 2015, and 2016. He must also file accurate taxes for 2017 and 2018.
“It is appalling that the defendant would go to such lengths over the course of several tax years to falsify his own tax returns while operating as a tax preparer,” said U.S. Attorney Ashley C. Hoff. “Our office is proud to have partnered with IRS CI in holding him accountable for his actions.”
“With today’s sentencing of a tax preparer who was sure he was getting away without paying his fair share of Federal income taxes, the public is again reminded to do their due diligence when selecting their own tax preparer this filing season,” said IRS CI Special Agent in Charge Ramsey E. Covington of the Houston Field Office. “All individuals, regardless of occupation, are required to accurately report all taxable income before they transmit their tax returns to the IRS.”
The IRS CI investigated the case.
Assistant U.S. Attorney Michael M. Osterberg prosecuted the case.
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