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Friday 11 February 2022
Sioux Falls Man Charged with Attempted Production of Child Pornography and Transfer of Obscene Materials to MinorsRead the Press Release
United States Attorney Dennis R. Holmes announced that a Sioux Falls, South Dakota, man has been charged by Criminal Complaint for Attempted Production of Child Pornography and Transfer of Obscene Materials to Minor.
Luke John Schauer, age 28, was charged and appeared before U.S. Magistrate Judge Veronica L. Duffy on February 9, 2022. He pled not guilty to the Criminal Complaint.
The maximum penalty upon conviction is up to 30 years in federal prison and/or a $250,000 fine, life of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Criminal Complaint alleges that between January 18, 2022, and February 4, 2022, Schauer attempted to employ, use, persuade, induce, entice, and coerce an OCE undercover agent posing as a 12-year-old female minor, to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct, knowing and having reason to know that such depictions would be transported in interstate or foreign commerce or mailed and such depictions would be producing using materials that had been mailed, shipped, and transported in interstate and foreign commerce, including by computer.
The Criminal Complaint also alleges that during the same periods of time, Schauer knowingly used his cellular phone to transfer and attempt to transfer obscene materials to the same undercover agent posing as a 12-year-old child.
The charges are merely accusations and Schauer is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the South Dakota Division of Criminal Investigation, with cooperation from the Sioux Falls Police Department. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Schauer was released pending trial which has not yet been scheduled.
Sioux City Man Pleads Guilty to Distributing MethRead the Press Release
A man who conspired to distribute methamphetamine pled guilty February 8, 2022, in federal court in Sioux City.
William Thompson, 62, from Sioux City, Iowa, was convicted of conspiracy to distribute methamphetamine. Thompson was previously convicted of possession of methamphetamine and unlawful user/felon in possession of a firearm in the United States District Court for the Northern District of Iowa, in 2000. Thompson was also convicted of possession with intent to deliver a controlled substance as a habitual offender in the Iowa District Court for Woodbury County in 2011.
At the plea hearing, evidence showed that from about 2019 and continuing to on or about June 8, 2021, Thompson and others who worked at the Madonna Rose Café participated in the distribution of approximately 10 pounds methamphetamine. Thompson was the co-owner of the Café. On four separate occasions between April and May 2021, Thompson distributed methamphetamine out of the Café to individuals cooperating with law enforcement. In June 2021, law enforcement executed a search warrant at the Café building and seized approximately one pound methamphetamine from Thompson that he planned to distribute to others.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Thompson remains in custody of the United States Marshal pending sentencing. Thompson faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least five years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 21-4066. Follow us on Twitter @USAO_NDIA.
Sheyenne, ND, Man Sentenced to 30 Years in Federal Prison for Aggravated Sexual Abuse of a Child Under the Age of 12Read the Press Release
FARGO – Interim United States Attorney Nicholas W. Chase announced that U.S. District Court Chief Judge Peter D. Welte sentenced Gary Lee Longie Jr., a/k/a Ty, age 39, Sheyenne, ND, to 30 Years in federal prison for Aggravated Sexual Abuse. Chief Judge Welte also sentenced Longie to 10 years supervised release.
The investigation was initiated in December 2020, when a child under the age of 12, informed a school counselor that the child had been sexually abused by a male with the first name "Ty" who was a friend of the child’s father. The investigation by the Federal Bureau of Investigation revealed more than one incident with the child and additional incidents with the child’s siblings. Longie pleaded guilty to Aggravated Sexual Abuse in September of 2021. Longie’s conduct prompted the parties to agree on a sentencing guidelines enhancement because Longie engaged in a pattern of activity involving prohibited sexual conduct.
"The 30-year sentence assures that this defendant will never abuse another child," said Interim US Attorney Nicholas W. Chase. "The Department of Justice and our law enforcement partners are committed to protecting children, and we will aggressively prosecute these heinous perpetrators."
This case was investigated by the Federal Bureau of Investigations and the case was prosecuted by the United States Attorney’s Office, with Assistant United States Attorney Lori H. Conroy and Richard M. Lee assigned to the case.
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Santa Cruz County Resident Pleads Guilty to Murder and Attempted Murder After Drive-By Shooting at Federal CourthouseRead the Press Release
SAN FRANCISCO – Steven Carrillo pleaded guilty today to murder and attempted murder in connection with the May 29, 2020, drive-by shooting at the Ronald V. Dellums Federal Building and U.S. Courthouse in Oakland, Calif., an event that resulted in the death of Protective Services Officer Dave Patrick Underwood and the wounding of a second security contractor, announced U.S. Attorney Stephanie M. Hinds, Homeland Security Investigations (HSI) Special Agent in Charge Tatum King, Federal Bureau of Investigation (FBI) Special Agent in Charge Craig D. Fair, and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) San Francisco Field Division Special Agent in Charge Patrick T. Gorman. The plea was received by the Hon. Yvonne Gonzalez Rogers, United States District Judge.
In connection with today’s proceedings, Carrillo, 33, of Ben Lomond, Calif., signed a written agreement that described many of the facts leading up the shooting. According to the plea agreement, Carrillo admitted that he aligned himself with an anti-government movement and wanted to carry out violent acts against federal law enforcement officers. Carrillo admitted that in the months before the shooting, he regularly discussed and encouraged violence against law enforcement; further, in the days before the shooting, he posted several messages on Facebook related to his goals. For example, on May 28, he posted on Facebook, “Anyone down to boog?” and on May 29, he posted “I just wanna perpetuate the hate and violence towards the governments attack dogs” and “[t]his is a great time to perpetuate the destruction of the government.” Carrillo also posted photographs and videos to Snapchat depicting anti-government paraphernalia and firearms.
In the plea agreement, Carrillo admits his role in the shooting. According to the agreement, on May 29, 2020, Carrillo commented on Facebook, “Its kicking off now and if its not kicking off in your hood then start it. Show them the targets.” He also wrote, in reference to the ongoing protests over the killing of George Floyd, “Go to the riots and support our own cause. Show them the real targets. Use their anger to fuel our fire. Think outside the box. We have mobs of angry people to use to our advantage.” He then agreed to meet another individual at the San Leandro BART station and arrived in a white Ford van. Carrillo brought with him firearms and incendiary devices. Carrillo acknowledged that he got into the van and the other individual drove as they surveilled the protest, the federal building, the courthouse, and the surrounding area. At approximately 9:44 p.m., with the other individual driving the van, Carrillo admitted he opened the rear passenger-side sliding door and shot approximately 19 rounds at the officers.
Prior to entering his guilty pleas, Carrillo appeared before the Hon. Thomas S. Hixson, United States Magistrate Judge, for arraignment on a superseding information which charged Carrillo with one count of use of a firearm causing death, in violation of 18 U.S.C. § 924(j), and one count of attempted murder of a person of assisting an officer or employee of the United States Government, in violation of 18 U.S.C. §§ 1114(1), 1114(3), and 2. A federal grand jury had previously indicted Carrillo for his role in the Oakland courthouse murder and attempted murder.
On January 31, 2022, the government filed a notice of intent not to seek the death penalty. In addition, Carrillo agreed and recommended to the court that a reasonable and appropriate disposition of this case would be 41 years in prison and a lifetime term of supervised release. Judge Gonzalez Rogers received the plea agreement and scheduled further proceedings to determine whether to accept it.
The United States Attorney’s Office’s Organized Crime Strike Force is prosecuting this case with assistance from the National Security Division’s Counterterrorism Section. The case is being investigated by the FBI, the ATF, the FPS, and the U.S. Marshal Service with assistance from the Oakland Police Department and the Santa Cruz County Sheriff’s Office.
Santa Clara man sentenced to ten years in prison for firearm and drug crimesRead the Press Release
ALBUQUERQUE, N.M. – Gabriel Lucero, 33, of Santa Clara, New Mexico, was sentenced in federal court on Feb. 10, to ten years in prison for firearm and drug offenses. On July 3, 2019, Lucero pleaded guilty to eight counts of being a felon in possession of firearms, one count of unlawful dealing in firearms, one count of illegal receipt of a firearm by a person under indictment, one count of conspiracy, one count of possession with intent to distribute marijuana and aiding and abetting.
A federal grand jury indicted Lucero on June 27, 2019. According to the indictment and other court records, on Aug. 11, 2018, law enforcement responded to a reported domestic dispute involving Lucero and were told that Lucero had fired multiple rounds in the air and possessed two firearms. Silver City police officers located Lucero and sealed and impounded his vehicle.
Investigators located Lucero’s cellphone during a search of the vehicle. Searches of Lucero’s phone revealed evidence that on Aug. 1, 2017, Lucero possessed at least 10 kilograms of marijuana with intent to distribute it and that he conspired with others to do so. The phone also contained evidence that from Aug. 1, 2017, to July 18, 2018, Lucero possessed numerous firearms, including rifles, pistols and shotguns. The phone contained additional evidence demonstrating that Lucero engaged in dealing firearms without a license on Aug. 1, 2017, and had received a firearm on Jan. 18, 2018, while under indictment for trafficking controlled substances.
Lucero was previously convicted of possession of marijuana in 2008 and voluntary manslaughter in 2012. As a convicted felon, Lucero cannot legally possess a firearm or ammunition.
Upon his release from prison, Lucero will be subject to three years of supervised release.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Silver City Police Department investigated this case. Assistant United States Attorneys Maria Armijo and Ry Ellison prosecuted the case.
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Penn Hills Felon Pleads Guilty to Possessing 14 Kilos of Fentanyl, a Firearm and AmmunitionRead the Press Release
PITTSBURGH - A resident of Penn Hills, PA, pleaded guilty in federal court to charges of possession with intent to distribute 400 grams or more of fentanyl and possession of a firearm by a convicted felon, United States Attorney Cindy K. Chung announced today.
Jerome Frank Brown, age 50, pleaded guilty to two counts before United States District Judge J. Nicholas Ranjan.
In connection with the guilty plea, the court was advised that on August 19, 2021 Brown had possessed a total of 14 kilograms of fentanyl and $136,000 in cash, in addition to a firearm and ammunition. The Court was informed that Drug Enforcement Administration agents and task force officers executed search warrants on Brown’s vehicle, his apartment, and a nearby storage unit. DEA personnel recovered one kilogram of fentanyl from Brown’s vehicle, approximately three more kilograms from his apartment, along with the cash and a firearm. When DEA agents searched Brown’s storage unit, they recovered 10 more kilograms of fentanyl.
Judge Ranjan scheduled sentencing for June 13, 2022 The law provides for a total sentence of at least 15 years to life in prison, a fine of $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court ordered that the defendant remain detained.
Assistant United States Attorney Douglas C. Maloney is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Jerome Brown.
Orchard Park Gang Associate Sentenced to More Than Seven Years in Prison on Drug and Firearm ChargesRead the Press Release
BOSTON – An associate of the Orchard Park gang was sentenced yesterday in federal court in Boston for firearm and drug charges arising from his involvement in a Boston-area drug trafficking organization.
Raymond Gaines, 42, of Bridgewater, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to 90 months in prison and three years of supervised release. On Jan. 25, 2022, Gaines pleaded guilty to one count of being a felon in possession of a firearm and ammunition, one count of possession with intent to distribute cocaine and one count of possession of a firearm in furtherance of a drug trafficking crime.
In April 2021, an investigation was opened into a drug trafficking organization involving Gaines. The investigation revealed that Gaines was an associate of the Orchard Park gang and that he actively sold cocaine in and around the Boston area. On June 1, 2021, Gaines was found in possession of cocaine intended for sale, as well as a Ruger .380 LCP semiautomatic handgun, loaded with one round of .380 caliber ammunition and a Glock 9mm semi-automatic handgun, along with numerous rounds of additional ammunition. Gaines was on federal supervised release at the time of the offense.
First Assistant United States Attorney Joshua S. Levy; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Boston Police Acting Commissioner Gregory Long; and Bridgewater Police Chief Christopher D. Delmonte made the announcement. Assistant U.S. Attorney John Dawley of the Organized Crime and Gang Unit prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Omaha Man Sentenced for Firearm OffenseRead the Press Release
COUNCIL BLUFFS, IA – Chad Michael Schaefer, age 46, of Omaha, was sentenced December 8, 2022, by United States District Court Judge Rebecca Goodgame Ebinger to 57 months in prison for Prohibited Person in Possession of a Firearm. His term of imprisonment will be followed by three years of supervised release. According to court documents, Schaefer pleaded guilty to the charge on September 2, 2021.
On October 9, 2020, a police officer reported his vehicle was burglarized and a Smith and Wesson rifle was stolen. A neighbor also reported his vehicle was burglarized and a wallet was taken. A credit card from the stolen wallet was used in the early morning hours shortly after the burglary in Omaha. Detectives obtained surveillance footage from the stores where the stolen credit card was used and were able to identify Schaefer as the suspect. Schaefer also had messages on his cellular phone linking him to the stolen rifle. At the time of the offense, Schaefer was a convicted felon and drug user.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Pottawattamie County Sheriff’s Office and Council Bluffs Police Department investigated the case. This case was prosecuted by the United States Attorney’s Offices for the Southern District of Iowa.
Omaha Man Sentenced for Conspiracy to Distribute FentanylRead the Press Release
United States Attorney Jan W. Sharp announced that Ja'hvont Payne, 27, of Omaha, Nebraska, was sentenced today in federal court in Omaha for conspiracy to distribute and possess with intent to distribute ten grams or more of an analogue of fentanyl. Chief United States District Judge Robert F. Rossiter, Jr., sentenced Payne to 60 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a four-year term of supervised release.
On March 1, 2020, law enforcement executed a search warrant on an apartment at 25th and Cumming Streets in Omaha after law enforcement was notified of a female who overdosed. Payne was staying with the co-defendant, Robert Rush. Law enforcement located 1,029 pills in nine different bags in the bedroom where they were staying. The pills tested positive for fentanyl. The pills were more than 110 grams of fentanyl. The female died from the overdose, and the autopsy confirmed it was the result of fentanyl. The United States alleges that Rush sold her the pill that caused her overdose.
Robert Rush is currently scheduled for trial in March, 2022.
This case was investigated by the Omaha Police Department.
Northumberland County Man Charged with Illegal Possession of A FirearmRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Joshua Reichenbach, age 39, of Northumberland County, Pennsylvania, was indicted on February 10, 2022, on one count of illegally possessing a firearm.
According to United States Attorney John C. Gurganus, the indictment alleges that on February 2, 2022, Reichenbach possessed a 9mm handgun while prohibited from possessing a firearm due to a previous criminal conviction.
The investigation was conducted by agents of the Federal Bureau of Investigation, Pennsylvania State Police, and the Northumberland County Sheriff’s Department. Assistant United States Attorney Alisan V. Martin 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.
If convicted, the maximum penalty for the offense is life imprisonment, a five-year term of supervised release, and a fine of $250,000. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Northern Virginia Company Settles False Claims Act Allegations of Improper Paycheck Protection Program LoanRead the Press Release
ALEXANDRIA, Va. – Zen Solutions Inc., located in Arlington, Virginia, has agreed to pay approximately $31,000 in damages and civil penalties to settle allegations that it violated the False Claims Act by obtaining more than one Paycheck Protection Program (PPP) loan in 2020. Zen Solutions also agreed to repay the duplicative PPP loan in full to its lender, relieving the U.S. Small Business Administration (SBA) of liability to the lender for the federal guaranty of approximately $192,000 on the improper loan.
“PPP funds were set aside by Congress to aid Americans in desperate need as a result of the global pandemic,” said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia. “Abusing these funds prevents them from going to those truly in need and wastes public funding at the expense of the American taxpayers. As a result, pursuing PPP loan fraud is a high priority for our office.”
“PPP loans were intended to provide critical relief to small businesses so that they could pay employees and maintain operations,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The department is committed to pursuing those who knowingly violated the requirements of the PPP or other COVID-19 assistance programs and obtained relief funds to which they were not entitled.”
“The continual commitment of the Office of Inspector General (OIG) is to shield SBA funds intended to support the nation’s robust small business community,” said Special Agent in Charge Amaleka McCall-Brathwaite of SBA OIG. “OIG remains committed to rooting out bad actors and protecting the integrity of SBA programs. I want to thank the U.S. Department of Justice and our law enforcement partners for their dedication and pursuit of justice.”
Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, to provide emergency financial support to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. The CARES Act authorized billions of dollars in forgivable loans to small businesses struggling to pay employees and other business expenses. Throughout 2020, PPP loan applicants were required to certify that they would not receive more than one PPP loan prior to Dec. 31, 2020. This settlement resolves allegations that Zen Solutions applied for and received a second, duplicative PPP loan in 2020.
Zen Solutions is a Virginia-based company that provides staffing services in the fields of information technology, data analytics, cyber security and litigation support. The settlement with Zen Solutions resolved a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The civil lawsuit was filed by J. Bryan Quesenberry. As part of today’s resolution, he will receive a share of the recovery.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Eastern District of Virginia, with assistance from the SBA’s Office of General Counsel and Office of the Inspector General.
This matter was handled by Assistant U.S. Attorneys Kristin Starr and William Hochul of the Eastern District of Virginia and Trial Attorney Jared S. Wiesner of the Civil Division.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Northern Virginia Company Settles False Claims Act Allegations of Improper Paycheck Protection Program LoanRead the Press Release
Zen Solutions Inc., a Virginia-based company, has agreed to pay approximately $31,000 in damages and civil penalties to settle allegations that it violated the False Claims Act by obtaining more than one Paycheck Protection Program (PPP) loan in 2020. Zen Solutions also agreed to repay the duplicative PPP loan in full to its lender, relieving the U.S. Small Business Administration (SBA) of liability to the lender for the federal guaranty of approximately $192,000 on the improper loan.
“PPP loans were intended to provide critical relief to small businesses so that they could pay employees and maintain operations,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The department is committed to pursuing those who knowingly violated the requirements of the PPP or other COVID-19 assistance programs and obtained relief funds to which they were not entitled.”
“PPP funds were set aside by Congress to aid Americans in desperate need as a result of the global pandemic,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “Abusing these funds prevents them from going to those truly in need and wastes public funding at the expense of the American taxpayers. As a result, pursuing PPP loan fraud is a high priority for our office.”
“The continual commitment of the Office of Inspector General (OIG) is to shield SBA funds intended to support the nation’s robust small business community,” said Special Agent in Charge Amaleka McCall-Brathwaite of SBA OIG. “OIG remains committed to rooting out bad actors and protecting the integrity of SBA programs. I want to thank the U.S. Department of Justice and our law enforcement partners for their dedication and pursuit of justice.”
Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, to provide emergency financial support to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. The CARES Act authorized billions of dollars in forgivable loans to small businesses struggling to pay employees and other business expenses. Throughout 2020, PPP loan applicants were required to certify that they would not receive more than one PPP loan prior to Dec. 31, 2020. This settlement resolves allegations that Zen Solutions applied for and received a second, duplicative PPP loan in 2020.
Zen Solutions provides staffing services in the fields of information technology, data analytics, cyber security and litigation support. The settlement with Zen Solutions resolved a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The civil lawsuit was filed by J. Bryan Quesenberry. As part of this resolution, he will receive a share of the recovery.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Eastern District of Virginia, with assistance from the SBA’s Office of General Counsel and Office of the Inspector General.
This matter was handled by Trial Attorney Jared S. Wiesner of the Civil Division and Assistant U.S. Attorneys Kristin Starr and William Hochul of the Eastern District of Virginia.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
New Zealand Man Sentenced for Production of Child PornographyRead the Press Release
RICHMOND, Va. – A New Zealand man was sentenced today to 21 years in prison for production of child pornography.
According to court documents, between February and March 2018, Troy George Skinner, 28, interacted with a minor child online and used the child to produce numerous videos and image files of child pornography.
According to the Statement of Facts filed with the plea agreement, on June 20, 2018, Skinner departed from Auckland, New Zealand, en route to Virginia. On June 22, 2018, Skinner traveled to the victim’s home in Goochland, the location of which he learned in his online conversations with the minor victim. Upon arriving at the victim’s home in Goochland, the defendant approached the house and attempted to speak to family members inside. Skinner threw a paving stone through the glass window of the kitchen door to the house and attempted to enter. After several verbal warnings, the victim’s mother fired a handgun to prevent Skinner from entering the home, striking him once in the neck. Skinner fled from the house but collapsed in a neighbor’s yard, where he was apprehended by members of the Goochland County Sheriff’s Office.
According to additional court filings submitted by the government, a search at the scene of Skinner’s belongings revealed duct tape, pepper spray, and a folding pocketknife. Officials also seized two mobile phones from Skinner, which investigators later determined contained images of child pornography depicting the minor victim. U.S. authorities also made a mutual legal assistance request to officials with the government of New Zealand. New Zealand investigators executed a search warrant on the defendant’s apartment in New Zealand and conducted a forensic examination of the defendant’s laptop, and later provided to U.S. investigators a thumb drive containing 120 video and 56 image files depicting the minor victim.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck.
The Goochland County Sherriff’s Office and the Justice Department’s Office of International Affairs provided significant assistance in this case.
Assistant U.S. Attorney Brian R. Hood and former Assistant U.S. Attorney Katherine Lee Martin prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:19-cr-19.
Navajo man in court for charges related to shooting in CoolidgeRead the Press Release
ALBUQUERQUE, N.M. – On February 10, 2022, Peter Oka, 30, of Coolidge, New Mexico, and an enrolled member of the Navajo Nation, appeared for his preliminary and detention hearing for charges of use of a firearm during a crime of violence, assault with a dangerous weapon with intent to do bodily harm, and assault resulting in serious bodily harm. The court ordered Oka detained pending trial.
According to a criminal complaint, on Jan. 26, Oka allegedly got into an argument with the occupants of a house located on the Navajo Nation Reservation. Oka allegedly retrieved a firearm and fired multiple rounds into the ceiling. Oka allegedly pointed the firearm at John Doe, shooting him multiple times. Oka allegedly then shot Jane Doe and himself. John Doe sustained several gunshot wounds to the chest. Oka had a gunshot wound that entered his neck and exited around his ear.
A complaint is only an allegation. A defendant is considered innocent unless and until proven guilty. If convicted, Oka faces a minimum of 10 years and up to life in prison.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department. Assistant United States Attorney Elisa Dimas is prosecuting the case.
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Minneapolis Felon Sentenced to Nine Years in Prison for Illegal Possession of a FirearmRead the Press Release
MINNEAPOLIS – A Minneapolis man has been sentenced to 108 months in prison followed by three years of supervised release for illegally possessing a firearm and ammunition as a felon. Acting U.S. Attorney Charles J. Kovats made the announcement after U.S. District Judge Wilhelmina M. Wright sentenced the defendant.
According to court documents, on May 21, 2020, law enforcement arrested Deshawn Tyrone Braziel, 37, who had an outstanding warrant and was suspected in connection with a shooting that occurred in Minneapolis on April 16, 2020. At the time of his arrest, Braziel was wearing a backpack containing a loaded Springfield XD 9mm pistol, 94 ecstasy pills, and a digital scale. Because Braziel has prior felony convictions in Hennepin County, including convictions of drive-by shooting, drug possession, and terroristic threats, he is prohibited under federal law from possessing firearms or ammunition at any time.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, and the Minneapolis Police Department.
Assistant U.S. Attorney Allison K. Ethen prosecuted the case.
Methuen Woman Arrested for Stealing Social Security BenefitsRead the Press Release
BOSTON – A Methuen woman was arrested yesterday in connection with stealing Social Security benefits intended for her child.
Karen Silva-Brown, 56, was indicted on one count of theft of public funds. Silva-Brown was released on conditions following an initial appearance yesterday afternoon before U.S. District Court Magistrate Judge Judith G. Dein.
According to the indictment, from November 2014 through October 2018, Silva-Brown embezzled approximately $60,810 in Social Security benefits that were intended for her minor child.
The charge of theft of public funds provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Rachael S. Rollins and Sharon MacDermott, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement. Special Assistant U.S. Attorney Karen Burzycki of Rollins’ Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Merced Man Arrested for Being a Felon in Possession of Ammunition and Drug Trafficking ChargesRead the Press Release
FRESNO, Calif. — Johnathan Eldon Moss Jr., 35, of Merced, was detained Thursday on a two‑count federal indictment charging him with being a felon in possession of ammunition and possession with intent to distribute narcotics, U.S. Attorney Phillip A. Talbert announced.
According to court documents, law enforcement officers executed a search warrant at Moss’s home and on his vehicle. Those searches yielded multiple unmarked, privately made firearms known as “ghost guns,” several hundred rounds of unexpended ammunition, high-capacity rifle and pistol magazines, a high-capacity speed loader for rifle magazines, a ledger showing weapons and ammunition sold, a body armor vest, cocaine, psilocybin, and a total of $10,990 in cash. Moss has felony convictions for firearms and drug offenses, domestic violence and stalking and is prohibited from possessing firearms and ammunition.
This case is the product of an investigation by the Merced County Sheriff’s Office Tactical and Reconnaissance (STAR) Team, the Merced Area Gang and Narcotics Enforcement Team (MAGNET), and the Drug Enforcement Administration. Assistant U.S. Attorney Jessica A. Massey is prosecuting the case.
If convicted of the felon in possession of ammunition charge, Moss faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. If convicted of the drug possession offense, he faces not more than 30 years in prison (due to his prior felony drug convictions) and a fine of up to $2 million. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Memphis Man Receives over 7 Years’ Incarceration for Possession a FirearmRead the Press Release
Memphis, TN – Bobby Bridgeforth, 37, has been sentenced to 92 months in federal prison for possession of a firearm. Joseph C. Murphy, Jr., United States Attorney announced the sentence today.
According to information presented in court, on April 17, 2020, a security guard at the Pendleton West Apartments advised Memphis Police officers of a man walking in front of the apartments with a handgun with a drum magazine. When the suspect saw officers, he fled but was caught moments later. While being detained, a loaded Glock 19 with 37 rounds of ammunition fell out of defendant’s pocket. Law enforcement later identified the individual as Bobby Bridgeforth.
Further investigation revealed he had felony convictions as well as misdemeanor convictions for domestic violence. As a result of his prior felony conviction history, Bridgeforth is prohibited by federal law from possessing firearms or ammunition.
On August 26, 2021, Bridgeforth pled guilty to being a felon in possession of the firearm and possessing the firearm after a misdemeanor conviction of domestic violence.
On February 8, 2022, United States District Judge Mark S. Norris sentenced Bridgeforth to 92 months in federal prison to be followed by three years’ supervised release. There is no parole in the federal system.
This case was investigated by the Project Safe Neighborhoods (PSN) Task Force. The (PSN) initiative is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our communities safer for everyone. In 2017, PSN was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement.
Assistant United States Attorney Greg Wagner prosecuted this case on behalf of the government.
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Medical Director Convicted in $110 Million Addiction Treatment Fraud SchemeRead the Press Release
Miami, Florida – A federal jury convicted a Florida doctor yesterday in the Southern District of Florida for a health care fraud scheme that billed private health insurance companies approximately $110 million for addiction treatment services that were not medically necessary. This is the second trial conviction to arise out of the Justice Department’s Sober Homes Initiative.
According to court documents and evidence presented at trial, Mark Agresti, M.D., 59, of Palm Beach, unlawfully billed approximately $110 million of urinalysis (UA) drug testing services that were medically unnecessary for patients at a sober living facility, Good Decisions Sober Living (GDSL). GDSL was paid kickbacks for providing patients to addiction treatment facilities in the West Palm Beach area, in violation of Florida state law.
“This defendant used his medical license to facilitate an egregious, multimillion-dollar fraud scheme that exploited vulnerable substance abusers,” said U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida. “This office and its law enforcement partners are committed to holding accountable the unscrupulous sober homeowners, doctors and others who carry out these fraudulent and abusive practices to satisfy their personal greed.”
Evidence presented at trial demonstrated that after Agresti became the Medical Director for GDSL, he agreed to provide standing orders for UA drug tests for GDSL patients in exchange for a monthly fee. Agresti also had GDSL patients sent to his medical office so he could fraudulently bill for services for these patients from his own medical practice. Patients at GDSL were required to submit to excessive, medically unnecessary urine drug tests as a condition of residency approximately three or four times per week. This added up to hundreds of UA drug tests per week and thousands per month. These UA drug tests cost as much as $6,000 to $9,000 per test. Agresti did not review the UA drug test results and did not use the UA drug tests to treat the GDSL patients. The evidence at trial showed that Agresti did the same thing at other addiction treatment facilities in the West Palm Beach area throughout the time of the charged conspiracy, resulting in hundreds of additional patients and thousands of additional fraudulent UA drug tests.
“This defendant, a medical doctor, was trusted to provide care to vulnerable patients,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Instead, he abused his position of trust in a multimillion-dollar fraud scheme. He took advantage of people seeking addiction treatment. His conviction further illustrates our commitment to protecting patients and prosecuting the owners, directors and operators of facilities that seek to exploit them, and underscores the importance of the work of the Department of Justice’s Sober Homes Initiative.”
“The defendant in this case exploited patients seeking treatment for addiction and pocketed the profits for years,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “This conviction is a warning that fraudulent practices like billing for medically unnecessary services come at a high cost. The FBI and our law enforcement partners are dedicated to protecting the integrity of America’s health care system and the people who rely on it.”
“Patients place their faith and trust on industry professionals to care for their wellbeing,” said Special Agent in Charge Matthew D. Line of IRS Criminal Investigation (IRS-CI), Miami Field Office. “Instead, in this case, they were taking advantage of, and submitted to unnecessary procedures to defraud insurance companies. IRS-CI is committed to combatting health care and other financial fraud, and we will hold criminals accountable for their unlawful actions.”
“The defendant exploited people in treatment for substance use disorders,” said Atlanta Regional Director Isabel Culver of the Department of Labor’s Employee Benefits Security Administration (EBSA). “The U.S. Department of Labor is working to end unconscionable schemes like this and hold those who commit health care fraud against employee benefit plan participants and their beneficiaries accountable.”
Three other defendants, including GDSL’s owner, were previously indicted and pleaded guilty to related charges in connection with this scheme.
Agresti was convicted of one count of conspiracy to commit health care fraud and wire fraud, as well as 11 counts of health care fraud. He is scheduled to be sentenced on April 21 and faces a maximum penalty of 20 years in prison for the health care fraud and wire fraud conspiracy count, and 10 years for each count of health care fraud. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI, IRS-CI and the EBSA investigated the case.
Assistant U.S. Attorney Amanda Perwin for the Southern District of Florida, and Senior Litigation Counsel Jim Hayes of the Criminal Division’s Fraud Section are prosecuting the case. Assistant U.S. Attorney Daren Grove is handling asset forfeiture.
The Criminal Division’s Fraud Section leads the Department of Justice’s Sober Homes Initiative, which was announced in the 2020 National Health Care Fraud Takedown to prosecute defendants who exploit vulnerable patients seeking treatment for drug and/or alcohol addiction.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 18-cr-80124.
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Medical Director Convicted in $110 Million Addiction Treatment Fraud SchemeRead the Press Release
A federal jury convicted a Florida doctor yesterday in the Southern District of Florida for a health care fraud scheme that billed private health insurance companies approximately $110 million for addiction treatment services that were not medically necessary. This is the second trial conviction to arise out of the Justice Department’s Sober Homes Initiative.
According to court documents and evidence presented at trial, Mark Agresti, M.D., 59, of Palm Beach, unlawfully billed approximately $110 million of urinalysis (UA) drug testing services that were medically unnecessary for patients at a sober living facility, Good Decisions Sober Living (GDSL). GDSL was paid kickbacks for providing patients to addiction treatment facilities in the West Palm Beach area, in violation of Florida state law.
“This defendant, a medical doctor, was trusted to provide care to vulnerable patients,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Instead, he abused his position of trust in a multimillion-dollar fraud scheme. He took advantage of people seeking addiction treatment. His conviction further illustrates our commitment to protecting patients and prosecuting the owners, directors and operators of facilities that seek to exploit them, and underscores the importance of the work of the Department of Justice’s Sober Homes Initiative.”
Evidence presented at trial demonstrated that after Agresti became the Medical Director for GDSL, he agreed to provide standing orders for UA drug tests for GDSL patients in exchange for a monthly fee. Agresti also had GDSL patients sent to his medical office so he could fraudulently bill for services for these patients from his own medical practice. Patients at GDSL were required to submit to excessive, medically unnecessary urine drug tests as a condition of residency approximately three or four times per week. This added up to hundreds of UA drug tests per week and thousands per month. These UA drug tests cost as much as $6,000 to $9,000 per test. Agresti did not review the UA drug test results and did not use the UA drug tests to treat the GDSL patients. The evidence at trial showed that Agresti did the same thing at other addiction treatment facilities in the West Palm Beach area throughout the time of the charged conspiracy, resulting in hundreds of additional patients and thousands of additional fraudulent UA drug tests.
“This defendant used his medical license to facilitate an egregious, multimillion-dollar fraud scheme that exploited vulnerable substance abusers,” said U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida. “This office and its law enforcement partners are committed to holding accountable the unscrupulous sober homeowners, doctors and others who carry out these fraudulent and abusive practices to satisfy their personal greed.”
“The defendant in this case exploited patients seeking treatment for addiction and pocketed the profits for years,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “This conviction is a warning that fraudulent practices like billing for medically unnecessary services come at a high cost. The FBI and our law enforcement partners are dedicated to protecting the integrity of America’s health care system and the people who rely on it.”
“Patients place their faith and trust on industry professionals to care for their wellbeing,” said Special Agent in Charge Matthew D. Line of IRS Criminal Investigation (IRS-CI), Miami Field Office. “Instead, in this case, they were taking advantage of, and submitted to unnecessary procedures to defraud insurance companies. IRS-CI is committed to combatting health care and other financial fraud, and we will hold criminals accountable for their unlawful actions.”
“The defendant exploited people in treatment for substance use disorders,” said Atlanta Regional Director Isabel Culver of the Department of Labor’s Employee Benefits Security Administration (EBSA). “The U.S. Department of Labor is working to end unconscionable schemes like this and hold those who commit health care fraud against employee benefit plan participants and their beneficiaries accountable.”
Three other defendants, including GDSL’s owner, were previously indicted and pleaded guilty to related charges in connection with this scheme.
Agresti was convicted of one count of conspiracy to commit health care fraud and wire fraud, as well as 11 counts of health care fraud. He is scheduled to be sentenced on April 21 and faces a maximum penalty of 20 years in prison for the health care fraud and wire fraud conspiracy count, and 10 years for each count of health care fraud. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI, IRS-CI and the EBSA investigated the case.
Senior Litigation Counsel Jim Hayes of the Criminal Division’s Fraud Section, and Assistant U.S. Attorney Amanda Perwin for the Southern District of Florida are prosecuting the case.
The Criminal Division’s Fraud Section leads the Department of Justice’s Sober Homes Initiative, which was announced in the 2020 National Health Care Fraud Takedown to prosecute defendants who exploit vulnerable patients seeking treatment for drug and/or alcohol addiction.
Mayor of Stonecrest and bookkeeper plead guilty to theft of COVID-19 relief fundsRead the Press Release
ATLANTA – Jason Lary, the former mayor of Stonecrest, and Lania Boone, a bookkeeper for the entity that administered COVID-19 relief funds awarded to Stonecrest, have pleaded guilty to charges related to the theft of pandemic relief funds.
“Lary’s guilty plea was the first in righting the wrongs committed against the people of Stonecrest, who were wrongfully deprived of hundreds of thousands of dollars intended to provide COVID-19 relief,” said U.S. Attorney Kurt R. Erskine. “Boone’s guilty plea further demonstrates our commitment to prosecuting those who seek to exploit COVID relief programs for their own gain.”
“CARES Act funds were intended to help people and businesses harmed by the pandemic, not to line the pockets of public officials entrusted to lead a community”, said Philip Wislar, Acting Special Agent in Charge of FBI Atlanta. “The FBI will do everything in our power to make sure stolen funds are returned to the public, and individuals involved in this type of criminal behavior are prosecuted to the fullest extent of the law.”
According to U.S. Attorney Erskine, the charges, and other information presented in court: the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was passed in March 2020 to respond to the economic fallout of the COVID-19 pandemic. Under the CARES Act, the federal government distributed $125 million in COVID-19 relief funds to DeKalb County. The federal government permitted DeKalb County to further disburse these relief funds to its municipalities. In July 2020, the DeKalb County Board of Commissioners voted to disburse some of the relief funds to its municipalities, including a $6.2 million grant to Stonecrest.
Stonecrest was required to spend the relief funds in accordance with the CARES Act. In general, according to the Department of the Treasury, relief funds could “only be used to cover costs that – [were] necessary expenditures incurred due to the public health emergency . . . . and were incurred during the period that [began] on March 1, 2020, and [ended] on December 30, 2020.” Eligible expenditures included medical expenses, public health expenses, and grants to small businesses to reimburse the costs of business interruption caused by required closures.
In September 2020, Lary, as Mayor, signed a resolution acknowledging the CARES Act requirements and adopting a funding plan for Stonecrest’s relief funds. The plan provided $1 million to the Stonecrest Cares Program for mask distribution, COVID-19 education and testing, and other purposes. In practice, the Stonecrest Cares Program directed relief funds to churches and non-profit organizations in and around Stonecrest. The plan also provided $5 million to the COVID-19 CARES Act Small Business Program (“Small Business Program”).
Stonecrest did not disburse the $6 million allocated to the Stonecrest Cares Program and Small Business Program. Instead, the city contracted with Municipal Resource Partners Corporation, Inc. (“MRPC”) to provide accounting services and to disburse the relief funds as directed by Stonecrest. Before the contract was signed, Lary worked behind the scenes to form MRPC, recruit its CEO, open its bank accounts, and ensure that Lania Boone would be hired as MRPC’s bookkeeper.
In or about November 2020, Stonecrest published an application on its website for businesses to apply for relief funds under the Small Business Program. The application included the question, “are you willing to allocate 25% of your grant to marketing your business?” Hundreds of businesses applied for relief funds, but most of the applicants were rejected. From about November 2020, until in or about February 2021, Boone signed dozens of checks on behalf of MRPC, directing millions of dollars of relief funds to individuals, businesses, churches, and non-profit organizations. Lary helped decide where the relief funds were directed.
Abusing the authority conferred on him as mayor, Lary devised and executed a scheme to steal relief funds after they were distributed by MRPC. First, Lary told churches that received relief funds under the Stonecrest Cares Program that they were required to contribute a portion of those funds for purposes identified by Lary.
For example, Lary presented a check for $150,000 in relief funds to “Church 1,” on the condition that $50,000 be given to a company called Real Estate Management Consultants, LLC (“REMC”). Lary did not tell Church 1 at this time that he actually controlled REMC. Lary falsely stated that the $50,000 would be used to assist with home repairs for people who could not afford them due to COVID-19. In reality, Lary used the money for his own purposes, including to pay off his outstanding federal, state and local tax liabilities.
As another example, Lary presented a check from MRPC for $50,000 to “Church 2.” Later, a person acting on Lary’s behalf told Church 2 to contribute $4,500 of the relief funds to REMC, purportedly for rent assistance. Lary spent the money to pay his own property expenses and his dues to the Georgia Campaign Finance Committee.
In addition, Lary solicited relief funds from businesses that received grants under the Small Business Program. Lary falsely claimed that the money would be each business’s “contribution” to Stonecrest-related marketing and advertising. But Lary and others asked that these “contributions” be given not to Stonecrest, but to entities called Visit Us, Inc. and Battleground Media, LLC. Lary did not tell the businesses that he controlled these entities.
In total, businesses were defrauded out of hundreds of thousands of dollars of relief funds. Lary used the relief funds deposited into the Visit Us and Battleground Media accounts to benefit himself and others. For example, Lary used relief funds held by Visit Us to pay for an associate’s political advertising.
Finally, Lary conspired with Boone, MRPC’s bookkeeper, to steal relief funds before they were disbursed by MRPC. In January 2021, Boone used her access to one of MRPC’s bank accounts to wire transfer approximately $108,000 of relief funds to a mortgage servicing company. Lary and Boone knew the purpose of the transfer was to pay off the mortgage on a lakefront home owned by Lary. Around the same time, Lary directed approximately $7,600 in stolen relief funds to be paid by Visit Us for Boone’s son’s college tuition and rent.
Jason Lary, 59, of Stonecrest, Georgia, is scheduled to be sentenced on May 2, 2022, at 10 a.m. Lania Boone, 60, of Decatur, Georgia, pleaded guilty today to conspiracy to commit federal program theft and is scheduled to be sentenced on May 12, 2022, at 2:00 p.m.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Trevor C. Wilmot is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Man Who Threatened to Kill a United States Magistrate Judge Gets Five Years in Federal PrisonRead the Press Release
Miami, Florida – A St. Lucie County man who made death threats to a U.S. Magistrate Judge in the Southern District of Florida was sentenced today in Tampa, Florida to five years’ imprisonment.
The sentence of 73-year-old Lawrence F. Curtin follows his conviction after a two-day trial in November 2021. In that trial, Assistant U.S. Attorneys Alejandra L. López and Will Rosenzweig of the Southern District of Florida presented evidence that in August 2020, Curtin filed written objections to a U.S. Magistrate Judge’s report recommending dismissal of Curtin’s civil lawsuit. In the written objections that he filed in court, Curtin listed a link to a video he had posted on YouTube, “Road to Glory,” which showed a younger Curtin at a church service, shaking the hand of a pastor, who was a member of a minority group. Curtin stated in the written objections that the video made clear that he was threatening the Judge with “death and bodily harm” and that shaking the hand of the pastor further emphasized his threat to the Judge, a member of the same minority group.
The evidence also showed that the inclusion of personal details about the Judge in the written objections and other court filings were meant to threaten the Judge since Curtin had never had an in-person hearing with the Judge and had to have researched the Judge to obtain the information. Moreover, the evidence showed that Curtin’s anger at the Judge was compounded by the Judge’s previous recommendations to dismiss four of his earlier-filed civil lawsuits. At sentencing, it was also shown that Curtin had engaged in a pattern of threatening federal and state judges with seriously bodily injury or death since 2005.
United States District Court Judge William F. Jung of the Middle District of Florida imposed the sentence, which also includes a supervised release term of three years following incarceration.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and Gadyaces S. Serralta, the United States Marshal for the Southern District of Florida announced the sentence.
The Southern District of Florida’s U.S. Marshal’s Office investigated the case. St. Lucie County Sheriff’s Office assisted. The Victim Witness Unit of the U.S. Attorney’s Office for the Middle District of Florida also assisted.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case no. 21-cr-20102.
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Man Sentenced to More Than Seven Years in Federal Prison for Illegally Possessing Loaded Gun on Chicago StreetRead the Press Release
CHICAGO — A man has been sentenced to more than seven years in federal prison for illegally possessing a loaded handgun on a Chicago street.
TERRANCE WEATHERSBY illegally possessed the gun on the afternoon of Oct. 6, 2018, in the 5800 block of West Fulton Street in Chicago’s Austin neighborhood. Shortly after 1:00 p.m., Chicago Police officers responding to the sound of gunfire approached the area and observed a man subsequently identified as Weathersby firing a gun multiple times at unidentified individuals down the street, in the presence of bystanders. Weathersby ran from the police and tossed the gun into a backyard before fleeing in a vehicle. Other officers pulled over the vehicle a few blocks away and apprehended Weathersby. Police then searched the area where Weathersby ran and discovered the gun, which was equipped with a high-capacity magazine.
Weathersby, 32, of Chicago, pleaded guilty to a federal charge of illegal possession of a firearm. He had previously been convicted of felonies in state court, including a firearm offense, and was prohibited by federal law from possessing the gun.
U.S. District Judge Thomas M. Durkin imposed an 87-month prison sentence Thursday 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.
“A felon carrying a gun fitted with a large capacity magazine, walking down our residential streets and shooting, strikes fear into the hearts of ordinary people,” Assistant U.S. Attorney Sheri H. Mecklenburg argued in the government’s sentencing memorandum. “Defendant’s offense conduct was brazen, dangerous, and adversely affected public safety.”
Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods, the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Maine Man Pleads Guilty to Distribution of FentanylRead the Press Release
CONCORD - Christopher R Ross, a/k/a Chris R. Ross, 41, of Waterboro, Maine pleaded guilty in federal court to distribution of fentanyl, United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on July 2, 2020, and July 8, 2020, at the direction of agents, a cooperating individual arranged through text and phone conversations to purchase fentanyl from Ross at two separate locations in Rochester.
Ross is scheduled to be sentenced on May 24, 2022.
“To protect our community from harm, we are working closely with our law enforcement partners to identify the criminals who are distributing fentanyl and other deadly drugs in New Hampshire,” said U.S. Attorney Farley. “By prosecuting the drug traffickers who are seeking to profit from drug sales, we are helping to improve the quality of life in the Granite State.”
“Fentanyl is a deadly drug that continues to cause significant harm in communities throughout New Hampshire,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “In identifying and disrupting dealers like Mr. Ross, the FBI and our law enforcement partners are able to prevent traffickers like him from continuing to endanger public health and safety.”
This matter was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Joachim H. Barth.
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Lincoln Repeat Offender Sentenced for Possession with the Intent to Distribute Methamphetamine and CocaineRead the Press Release
United States Attorney Jan Sharp announced that Gabriel S. Goss, 40, of Lincoln, Nebraska, was sentenced today in federal court in Lincoln for possession with the intent to distribute 50 grams or more of actual methamphetamine, 50 grams or more of a mixture or substance containing methamphetamine, and a mixture or substance containing cocaine. United States District Judge John M. Gerrard sentenced Goss to 180 months in prison followed by a 10-year term of supervised release. There is no parole in the federal system. Goss faced a 15-year mandatory-minimum sentence in this case because he had a prior conviction for sale of a controlled substance in violation of Minnesota state law.
On September 4, 2020, law enforcement searched a vehicle following a traffic stop in Lincoln. Goss was in the front passenger seat of the vehicle. Officers found inside a bag at Goss’s feet about 1.8 grams of suspected methamphetamine, three baggies containing suspected marijuana, drug paraphernalia, $1,500 in currency, and numerous unused baggies. Law enforcement also found two bags of suspected methamphetamine and one bag of suspected cocaine in the glove box of the vehicle. Those items were seized by law enforcement and sent to a lab for testing. The lab determined that a total of 113.28 grams of confirmed methamphetamine, of which at least 100 grams was actual methamphetamine, and 41.88 grams of cocaine were seized from the vehicle.
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force.
Knoxville Man Sentenced to 300 Months in Prison for Producing Child PornographyRead the Press Release
KNOXVILLE-Tenn.– On February 10, 2022, Eugene Charles McGrath, 55, of Knoxville, was sentenced to a term of imprisonment of 300 months for producing child pornography by the Honorable Thomas A. Varlan, in the United States District Court for the Eastern District of Tennessee at Knoxville.
As part of the plea agreement filed with the court, McGrath pled guilty to an indictment charging him with one count of using a minor to produce depictions of sexually explicit conduct in violation of 18 U.S.C. § 2251(a) and (e). Upon his release from prison McGrath will be on supervised release for life. McGrath will also be required to register with state sex offender registries and comply with special sex offender conditions during his supervised release.
According to documents filed in Court, from 2006 through 2020, defendant produced child pornography of at least two minors under 10 years of age. One of the videos that McGrath produced has been distributed internationally. In addition to the child pornography images he produced, McGrath was also in possession of 103 images and 11 videos of other child pornography.
The case was investigated by the U.S. Department of Homeland Security, Homeland Security Investigations, and the Knoxville Police Department Internet Crimes Against Children Unit.
Assistant United States Attorney Jennifer Kolman represented the United States.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006, by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC 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 PSC, please visit www.justice.gov/psc.
For more information about internet safety education, please visit www.justice.gov/psc/resources.html and click on the tab "resources.”
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Kentucky Businessman Pleads Guilty to Decade-Long Scheme to DefraudRead the Press Release
Memphis, TN – Charles A. "Chuck" Jones, 51, a Kentucky businessman, has pleaded guilty to a decade-long scheme and conspiracy to defraud the Federal Communications Commission’s (FCC) E-Rate Program. Joseph C. Murphy, Jr., United States Attorney announced the guilty plea today.
According to information presented in court and the indictment, the E-Rate Program is an FCC program that provides money to needy schools, often in rural areas of America, for internet access and telecommunications services. The program has specific rules that forbid service providers to the schools, such as Jones, from paying kickbacks to school officials and consultants. The E-Rate Program also requires participating service providers to charge participating schools at least a 10% co-pay.
For approximately 10 years, Jones paid kickbacks to an E-Rate consultant working with the Missouri and Tennessee schools involved in this case. During this 10-year conspiracy, Jones, one of his employees, and the school E-Rate consultant, made false statements and submitted fabricated documents to the E-Rate Program regarding the required co-pays and the program’s fair and open bidding process. In essence, Jones and his co-conspirators used the victim schools as vehicles to fraudulently obtain money from the E-Rate Program for Jones. The loss to the E-Rate Program was approximately $6.9 million dollars.
"The E-Rate Program was designed to assist the children in our nation’s neediest schools, and we are committed to pursuing investigations into those who would corrupt this program for personal gain." stated FCC-IG David Hunt. "The result in this case demonstrates the outstanding working relationship between the FCC Office of Inspector General and the U.S. Attorney’s Office for the Western District of Tennessee. We remain dedicated to our mandate to investigate fraud, waste, and abuse in FCC subsidy programs. The OIG will actively continue to support the investigation and prosecution of individuals who defraud this, and all other FCC programs established to ensure that students, school staff and library patrons have necessary access to the internet and the telecommunications tools and services they need."
"The FBI is committed to investigating allegations of fraud related to federally funded programs, especially when those egregious schemes impact programs designed to help rural schools in need," said Special Agent in Charge Douglas M. Korneski of the Federal Bureau of Investigation’s Memphis Field Office. "This guilty plea is the result of the focus and coordinated effort of the dedicated investigators and prosecutors involved."
Jones has pleaded guilty to conspiracy to commit wire fraud which carries a maximum possible term of imprisonment of 20 years. He is scheduled to be sentenced on June 1, 2022, before United States District Judge Mark S. Norris in Memphis.
The FCC-Office of Inspector General and the Federal Bureau of Investigation (FBI) investigated this case.
Assistant United States Attorneys Murre Foster and Tony Arvin are prosecuting the case on behalf of the government.
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Kalispell felon who confronted two strangers, displayed a gun was sentenced to more than six years in prisonRead the Press Release
MISSOULA — A Kalispell man who admitted to confronting two strangers in a parking lot and displaying a firearm he was prohibited from having was sentenced today to six years and five months in prison to be followed by three years of supervised release, U.S. Attorney Leif M. Johnson said.
John Lee Barlow, 42, pleaded guilty in October 2021 to prohibited person in possession of a firearm.
U.S. District Judge Donald W. Molloy presided.
The government alleged in court documents that on May 23, 2021, the victim called 911 to report that a man, later identified as Barlow, had pulled a gun on him and his girlfriend in a parking lot in Kalispell. The victim reported that he had parked his vehicle and started walking to a restaurant when a Dodge pickup drove toward him and stopped abruptly. Barlow, the driver and sole occupant, got out and started screaming at the victim for walking in front of him. Barlow then pulled up his shirt, placed his hand on a holstered pistol and shouted, “I’m the police!” before returning to his truck and driving away. The victim’s girlfriend witnessed the altercation and told officers that Barlow was “acting like he was gonna shoot us.” The girlfriend took photographs of Barlow and his truck. Surveillance video from a nearby casino recorded the interaction. Officers ultimately identified and arrested Barlow and obtained a .40-caliber semi-automatic pistol from his residence. Barlow had prior felony convictions for aggravated assault in Georgia and was prohibited from possessing firearms.
Assistant U.S. Attorney Karla E. Painter prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Kalispell Police Department.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Jury Convicts Gang Member on All Counts in Project Safe Neighborhoods CaseRead the Press Release
VALDOSTA, Ga. – A Southwest Georgia resident and gang member with an extensive criminal history was found guilty on all counts by a federal jury following a four-day trial in Valdosta federal court.
Quinton Jarod Simmons, 30, of Adel, Georgia, was convicted of possession with intent to distribute methamphetamine, possession of a firearm by a convicted felon and possession of a firearm in the furtherance of a drug trafficking offense on Thursday, Feb. 10, following a trial that began on Monday, Feb. 7, before U.S. District Judge Louis Sands. Simmons faces a maximum term of life imprisonment. A sentencing date has not yet been scheduled.
“A gang member with a lengthy criminal history, Simmons must now pay the price for continually breaking the law and harming the community,” said U.S. Attorney Peter D. Leary. “The U.S. Attorney’s Office will continue to work closely with local, state and federal law enforcement, as well as our community partners, to make Middle Georgia a safer place.”
“With twelve prior convictions, Simmons was a continuous threat to the safety of the citizens in our community,” said Philip Wislar, Acting Special Agent in Charge of FBI Atlanta. “The FBI is proud to work with our partners in the Project Safe Neighborhoods Program to help convict repeat offenders at the federal level, where they face steeper penalties and no opportunity for parole.”
According to court documents and evidence presented at trial, Simmons, a member of the Crips street gang, fled Remerton Police Department Officers who were attempting to conduct a traffic stop for a traffic violation on June 15, 2018. Simmons ran through a red light during the pursuit and crashed his vehicle into a tree on Georgia Avenue in Valdosta. Simmons attempted to escape his car, but responding officers took him into custody. Simmons was in possession of a Glock 22 firearm that had been reported stolen by an Adel resident in April 2018, as well as two clear bags of pink and blue pills that tested positive for methamphetamine. Simmons has a lengthy criminal history, with 12 prior convictions, including burglary, possession of a firearm by a convicted felon, fleeing a police officer and theft by taking.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by FBI, GBI, Remerton Police Department, Valdosta State University Police Department, Valdosta Police Department, Lowndes County Sheriff's Office, Valdosta-Lowndes Regional Crime Laboratory and Georgia State Patrol.
Assistant U.S. Attorneys Sonja Profit and Mike Morrison prosecuted the case.
Jennings Man Sentenced for Wildlife Hunting ViolationsRead the Press Release
LAFAYETTE, La. - United States Attorney Brandon B. Brown announced that Trevor Istre, 22, of Jennings, Louisiana, has been sentenced by United States Magistrate Judge Kathleen Kay to 5 years of unsupervised probation and a $3,000 fine for taking migratory birds with the aid of a motor vehicle, taking migratory birds during a closed season, and taking migratory birds in violation of state law. As part of his probation, Istre’s hunting, and fishing privileges were suspended for 3 years. Three other individuals involved in the illegal activity were previously fined a total of $2,470.
The trial for Istre on the aforementioned wildlife violations was set to begin February 10, 2022, but Istre pleaded guilty to those violations on the day of his trial. The charges stemmed from an investigation into illegal hunting activity on Mardi Gras day, February 16, 2021 when a Wildlife Officer from the U.S. Fish and Wildlife’s K9 team encountered a group of individuals shooting geese from a state highway on private property. The subjects fled from the area and avoided apprehension that day. Agents began an investigation into their illegal hunting activities and located spent shotgun shell casings and apprehended one crippled goose that day. Their investigation continued and the violators were identified, four of which were repeat offenders with histories of wildlife violations in state and federal courts on Lacassine National Wildlife Refuge. In total, 29 geese that were illegally taken were seized.
Istre previously pleaded guilty to federal wildlife violations at the Lacassine National Wildlife Refuge in December 2019 and had state wildlife violations in November and December 2019 and had already paid $3,904 in fines to multiple jurisdictions for hunting violations since he had become an adult.
“Hunting violations are cases that our office takes very seriously,” stated U.S. Attorney Brandon B. Brown. “The hunting laws were created for the protection of our wildlife, and we will continue to work with the U.S. Fish and Wildlife Service to hold those who break those laws accountable for their actions.”
“Our Federal Wildlife Officers, and Canines, take Migratory Bird enforcement seriously in the Mississippi Flyway. Restricting hunting and fishing privileges has proven to be the most effective deterrent for the protection of wild game species and public lands in Sportsman’s Paradise. Courts in the Western District of Louisiana have echoed that message, and the public wins when these types of sentences are imposed,” said Steven Strader, Patrol Captain for the USFWS Division of Refuge Law Enforcement, Louisiana District.
The U.S. Fish and Wildlife Service, Wildlife Canine Team, investigated the case and Assistant U.S. Attorney Daniel J. McCoy prosecuted the case.
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Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Feb. 10 was:
Shawndra Marie Pietz, 35, of Billings, on charges of bank fraud and aggravated identity theft. If convicted of the most serious crime, Pietz faces a maximum of 30 years in prison, a $250,000 fine and five years of supervised release on the bank fraud crime and a mandatory minimum two years in prison consecutive to any other sentence, a $250,000 fine and one years of supervised release on the aggravated identity theft crime. Pietz was detained pending further proceedings. The Billings Police Department investigated the case. PACER case reference. 22-7.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Feb. 8 was:
Hunter Dylan Bell, 28, of Great Falls, on charges of possession of an unregistered firearm, prohibited person in possession of a firearm and possession with intent to distribute heroin. If convicted of the most serious crime, Bell faces a maximum of 20 years in prison, a $1 million fine and three years of supervised release. Bell was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Great Falls Police Department investigated the case. PACER case reference. 22-1.
Jesus Zamora-Cuevas, 23, of Mexico, on charges of prohibited person in possession of firearm and ammunition and illegal re-entry. If convicted of the most serious crime, Zamora-Cuevas faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Zamora-Cuevas was detained pending further proceedings. Homeland Security Investigations investigated the case. PACER case reference. 22-11.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Honduran National Sentenced for Illegal ReentryRead the Press Release
BOSTON – A Honduran national residing in Fall River was sentenced today in federal court in Boston for illegal reentry. The defendant was previously convicted on state charges of three counts of indecent assault and battery on a child as well as assault and disorderly conduct.
Rudy Osorto Bonilla, 37, was sentenced by U.S. District Court Judge Leo T. Sorokin to time served (approximately eight months in prison) and three years of supervised release. Osorto will be subject to deportation proceedings upon completion of his sentence. On Oct. 14, 2021, Osorto Bonilla pleaded guilty to one count of unlawful reentry of a deported alien.
In 2003 Osorto Bonilla, who was illegally present in the United States, was convicted in the Fall River District Court with three counts of indecent assault and battery on a child. Osorto Bonilla was subsequently placed into removal proceedings and in March 2004, was deported to Honduras.
Sometime after this 2004 removal, Osorto Bonilla illegally returned to the United States. In June 2010, Osorto Bonilla arrested and later convicted in Maryland state court of assault and disorderly conduct. Following this conviction, Osorto Bonilla was charged and convicted by the U.S. Attorney’s Office for the District of Maryland of illegal reentry and sentenced to 15 months in prison. Following completion of his sentence, Osorto Bonilla was placed into removal proceedings and was deported to his native country of Honduras in July 2011.
Sometime after this second removal, Osorto Bonilla again illegally returned to the United States and in June 2021 was arrested in Fall River by federal agents. His previous Order of Removal was reinstated, and his case was referred to the U.S. Attorney’s Office in Boston for prosecution.
United States Attorney Rachael S. Rollins and Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations in Boston made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Rollins’ Major Crimes Unit prosecuted the case.
Hamden Man Sentenced to 5 Years in Federal Prison for Distributing Heroin and CrackRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that CHRISTOPHER RODRIGUEZ, also known as “Rico,” 33, last residing in Hamden, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 60 months of imprisonment, followed by four years of supervised release, for distributing heroin and crack cocaine.
According to court documents and statements made in court, in the summer of 2017, members of the FBI’s Bridgeport Safe Streets Task Force and Bridgeport Police Department began investigating individuals who were distributing narcotics in and around Bridgeport. The investigation has included the use of court-authorized wiretaps, controlled purchases of narcotics, physical and video surveillance, and the execution of multiple search and seizure warrants. The investigation revealed that Rodriguez, Antonio Small, Evan Sheffield, Louis McDowell, Anthony Small and others were distributing large quantities of heroin, fentanyl and crack cocaine in the Bridgeport area.
On January 13, 2020, Rodriguez pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, 100 grams or more of heroin and a quantity of cocaine base (“crack”).
Antonio Small, Sheffield, McDowell, and Anthony Small have pleaded guilty. On October 27, 2020, Judge Thompson sentenced Sheffield to 97 months of imprisonment. Antonio Small, McDowell and Anthony Small await sentencing.
This matter is being investigated by the FBI’s Bridgeport Safe Streets Task Force and the Bridgeport Police Department, as well as the DEA, Connecticut State Police, and the Stratford, Norwalk, Seymour and Trumbull Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Karen L. Peck and Patrick J. Doherty through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Greenleaf Man Pleads Guilty to Firearms Violation and Assaulting a Federal OfficerRead the Press Release
BOISE – A Greenleaf man pleaded guilty to unlawful possession of a firearm and assaulting a federal officer.
According to court records, in March 2021, the U.S. Forest Service (USFS) started investigating vandalism on U.S. Government Property in the Mann Creak Area. The vandalism included markings of “SAI,” which refers to the Sovereign Alliance of Idaho. The vandalism also included threats to federal employees. The USFS identified Erik Konrad Ehrlin, 33, of Greenleaf, Idaho, as a possible suspect. It was reported that Ehrlin was potentially carrying a firearm. Ehrlin was previously convicted of sexual abuse in the first degree in Oregon and cannot lawfully possess firearms.
On April 30, 2021, a USFS special agent and a Washington County Sheriff’s deputy contacted Ehrlin at a campsite in the Mann Creek Area. The deputy observed Ehrlin with a firearm in his possession. During the encounter, Ehrlin entered his truck, attempted to flee, and struck the USFS agent with a part of the truck. He was taken into custody shortly after. In Ehrlin’s campsite, law enforcement located a semi-automatic rifle and in Ehrlin’s truck, law enforcement located a 9mm handgun.
The Federal Bureau of Investigation obtained a search warrant for Ehrlin’s residence in Greenleaf, where agents located a journal with references to the Sovereign Alliance of Idaho. The journal also contained a “Sovereign Citizen’s Oath.” Agents also located two additional firearms, a .22 caliber rifle and a .22 caliber revolver.
Ehrlin is scheduled to be sentenced on May 31, 2022 and faces a maximum penalty of ten years in federal prison for the firearm charge and one year in prison for the assault. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the cooperative efforts of the U.S. Forest Service, Federal Bureau of Investigation, and the Washington County Sheriff’s Office, which led to charges.
This case was prosecuted as part of the Department of Justice’s Project Safe Neighborhoods (PSN) program. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Grand Jury Indicts Convicted Felon Who Allegedly Fired BB Guns at Planned Parenthood in Pasadena with Violating FACE ActRead the Press Release
LOS ANGELES – A federal grand jury today returned a five-count indictment that charges a San Gabriel Valley man who allegedly fired BB guns at the Planned Parenthood facility in Pasadena with violating the federal Freedom of Access to Clinic Entrances (FACE) Act.
Richard Royden Chamberlin, 53, who currently resides in Altadena, but also maintains a residence in Ontario, was charged with two counts of forcible interference with the obtaining and provision of reproductive health services. A third charge alleges attempted forcible interference with the obtaining and provision of reproductive health services. No one was injured in any of the shootings, and the FACE Act violations alleged in the indictment are misdemeanor offenses.
The indictment alleges that Chamberlin fired BB guns at the Planned Parenthood facility on multiple occasions in 2020 and 2021. Count one of the indictment specifically alleges an attack on March 30, 2021, in which a patient’s support companion was nearly hit as she waited on the front porch of the women’s health clinic.
The indictment also charges Chamberlin with being a convicted felon in possession of a firearm and ammunition for carrying a loaded handgun during the final drive-by attack on the Planned Parenthood facility on May 7, 2021. Following that alleged BB gun shooting, the Pasadena Police Department located Chamberlin in his vehicle near the Planned Parenthood facility, and they discovered vehicle multiple BB guns, as well as a.22-caliber handgun loaded with 10 bullets, according to court documents. Chamberlin, who was previously convicted of a narcotics-related felony in Arizona, is prohibited from possessing firearms and ammunition.
Following his arrest on May 7, the Pasadena City Attorney’s Office filed firearms-related charges against Chamberlin. Federal authorities began to investigate the matter and last month filed a criminal complaint against Chamberlin alleging the felon-in-possession offense.
The FBI arrested Chamberlin on January 28. In conjunction with his arrest, FBI special agents executed search warrants at Chamberlin’s two residences. At the Ontario residence, investigators recovered thousands or rounds of ammunition. The indictment also charges Chamberlin with being a felon in possession of ammunition.
The two felon-in-possession charges alleged in the indictment each carry a statutory maximum sentence of 10 years in federal prison. Each of the three FACE Act charges carry up to one year in prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Chamberlin, who was freed on bond following his arrest on January 28, has been ordered to appear for an arraignment in United States District Court in Los Angeles on February 17.
The FBI’s Civil Rights Squad and the Pasadena Police Department investigated this matter.
Assistant United States Attorney Frances S. Lewis of the Public Corruption and Civil Rights Section is prosecuting this case.
Grand Island Man Sentenced to 16 ½ Years for Distribution of MethamphetamineRead the Press Release
United States Attorney Jan Sharp announced that Shane Lawrence, 40, of Grand Island, Nebraska, was sentenced today in Lincoln by United States District Judge John M. Gerrard to 16 1/2 years in prison for possession of methamphetamine with intent to distribute. Lawrence will be required to serve 5 years of supervised release upon completion of his prison sentence. There is no parole in the federal system.
On October 17, 2020, the Grand Island Police Department was conducting surveillance of a home where officers suspected drug trafficking was occurring. Police later obtained a search warrant and found 6.9 pounds of methamphetamine and $18,000 in U.S. currency. Lawrence was arrested at the scene and evidence showed that he was responsible for the distribution of large amounts of methamphetamine.
This case was investigated by the Grand Island Police Department and the Central Nebraska Drug and Safe Streets Task Force. That Task Force is composed of members from the Federal Bureau of Investigation, the Nebraska State Patrol, the Grand Island Police Department, the Hall County Sheriff’s Department, the Hastings Police Department, the Adams County Sheriff’s Department, the Kearney Police Department, and the Buffalo County Sheriff’s Department.
Former University Professor to Plead Guilty to Wire Fraud and Engaging in an Unlawful Monetary TransactionRead the Press Release
United States Attorney Richard G. Frohling announced today that Yue Liu, also known as Troy Liu (age: 41) of Mequon, Wisconsin, had been charged in a two-count information with wire fraud, in violation of Title 18, United States Code, Section 1343, and engaging in an unlawful monetary transaction, in violation of Title 18, United States Code, Section 1957. Liu has signed a plea agreement acknowledging that he is guilty of those charges.
As detailed in court documents, beginning in approximately April 2016 and continuing through at least November 2020, Liu, who was an engineering professor at the University of Wisconsin-Milwaukee (UWM), devised and executed a scheme to defraud. The essence of the scheme was to obtain money, through materially false promises and representations, from foreign students who were accepted into graduate programs at UWM. Liu promised foreign students that they would be part of a program run by an entity he controlled, which would pay expenses associated with their studies at UWM, including tuition and other costs. In reality, there was no such program affiliated with UWM, and UWM waived the students’ tuition because they were research assistants. Liu emailed letters to students in which he made false representations about the program, and he wrote those letters using a fictitious name he invented and using what appeared to be a UWM logo.
According to the Information and plea agreement, Liu fraudulently obtained more than $1.1 million from foreign students and visiting professors. Liu did not use the money from the students to pay their tuition and other expenses. Instead, he used a portion of the money he received for personal purposes, including to fund investment accounts and to pay credit card expenses. Liu also attempted to conceal the scheme by creating a fraudulent research agreement between UWM and a fictitious entity purportedly based in China and using a portion of the money to fund this agreement.
The wire fraud count carries a maximum penalty of 20 years in prison, a maximum fine of $250,000, and up to five years of supervised release following any prison term. The unlawful monetary transaction count carries a maximum penalty of 10 years in prison, a maximum fine of $250,000, and up to three years of supervised release.
The claims made in the Information are allegations that, if the case were to proceed to trial, the government must prove beyond a reasonable doubt to convict the defendant. The plea agreement expresses the defendant’s intention to plead guilty, but the defendant has not yet formally entered a plea in this matter.
This matter was investigated by the Federal Bureau of Investigation, the Criminal Investigation Division of the Internal Revenue Service, and Immigration and Customs Enforcement of the Department of Homeland Security. The case is being prosecuted by Assistant U.S. Attorney John P. Scully.
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Former Tax Preparer from Minden Sentenced to Federal PrisonRead the Press Release
SHREVEPORT, La. - United States Attorney Brandon B. Brown announced that Deborah Cooksey, 56, of Minden, Louisiana, was sentenced today by United States District Judge Donald E. Walter to 24 months in prison, followed by 1 year of supervised release, for filing false tax returns. Cooksey was also ordered to pay restitution in the amount of $547,043.
Deborah Cooksey was indicted in March 2021 and on September 22, 2021, pleaded guilty to one count of filing false tax returns. Cooksey was the owner and operator of Cooksey’s Tax and Notary Services, LLC, in Minden, Louisiana, whose primary business was the preparation and electronic filing of individual income tax returns. She received all fees from the preparation and filing of client’s individual tax returns into a business account under the name of Cooksey’s Tax and Notary Services. Cooksey did not report all fees earned from the preparation and filing of client’s individual tax returns during the tax years 2013 and 2014. On April 15, 2015, Cooksey personally prepared and electronically filed her 2013 U.S. Individual Income Tax Return, Form 1040, which was verified by a written declaration that it was made under penalties of perjury with the Internal Revenue Service (IRS). She reported Schedule C income of $522,662 on her 2013 Form 1040 tax return. These gross receipts and income reported on her Schedule C were false and in truth and in fact, Cooksey knew her true Schedule C gross income for 2013 was $1,356,682. Because Cooksey understated her gross receipts and income on her Schedule C, there are taxes due and owing for 2013.
As part of her plea agreement, Cooksey agreed to be permanently enjoined from preparing, assisting, advising, or counseling in the preparation of, or filing federal tax returns for anyone other than herself. She is also prohibited from maintaining any association with a tax preparation business, instructing, teaching or otherwise training any person in the preparation of federal tax returns.
The case was investigated by the IRS-Criminal Investigation and was prosecuted by Assistant U.S. Attorneys Mary J. Mudrick and Mike Shannon.
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Former Queens Business Owner Pleads Guilty to Tax FraudRead the Press Release
The former owner of a drywall business in Queens pleaded guilty today to helping prepare a false corporate tax return for his business.
According to court documents, Osvaldo Caceres, of Queens, New York, owned and operated OSVI Drywall Corporation. Caceres helped prepare the company’s corporate tax return for the tax period ranging from Feb. 1, 2013, through Jan. 31, 2014, which underreported the business’s gross receipts. Caceras caused a total tax loss to the IRS of $926,379.
Sentencing is scheduled for June 14. Caceres faces a maximum penalty of three years in prison, as well as a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement. He thanked the U.S. Attorney’s Office for the Eastern District of New York for providing substantial assistance in this matter.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Sarah Ranney and Sam Bean of the Tax Division are prosecuting the case.
Former City Councilman Adam McFadden Going to Prison for Wire Fraud Conviction and Filing A False Tax ReturnRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that Adam C. McFadden, 50, of Rochester, NY, who was convicted of wire fraud and filing a false tax return, was sentenced to serve 18 months in prison by U.S. District Judge Elizabeth A. Wolford. McFadden was also ordered to pay restitution totaling $265,528.00 to Quad A For Kids, the Internal Revenue Service and Rochester Housing Charities.
Assistant U.S. Attorney Richard A. Resnick, who handled the case, stated that McFadden was the Executive Director for Quad A for Kids between 2004 and 2014. From 2014 to September 2016, McFadden served as an independent contractor for Quad A for Kids. From September 2016 until 2019, McFadden returned to his position as the Executive Director of Quad A for Kids, which provides after-school and extended-day learning programs at some Rochester City School District elementary schools. Quad A for Kids operates as a separate entity funded through the Rochester Area Community Foundation Initiatives Inc. (RACF).
Between February 2012 and December 2018, McFadden submitted fraudulent invoices and receipts to the RACF for reimbursements in the approximate amount of $131,163.00. Specifically, McFadden created fraudulent invoices purportedly from: an individual for various computer and IT related services that were never provided; an entity that provided various sports, fitness and related products and services; entities that provided grant writing and related services; and Amazon, Walmart and Staples. The funds were used, in part, for McFadden’s personal benefit, including personal debts. After the submission of the fraudulent invoices, the RACF reimbursed the defendant personally or paid the various entities used by the defendant. The entities then used the money to pay debts owed by the defendant.
In August 2017 and February 2018, McFadden created fraudulent $4,000.00 invoices from the North East Area Development Association (NEAD) to Quad A for Kids, purportedly for training services provided by NEAD to Quad A for Kids. Although the training services were never performed by NEAD, McFadden caused Quad A for Kids to pay NEAD $8,000.00. NEAD then fraudulently paid the defendant $7,000.00 of the $8,000.00 that NEAD had fraudulently received.
In addition, in 2015, McFadden owned a company called Caesar Development LLC, which received an $87,500 contract from the Rochester Housing Charities for services which were never performed. Also, for the tax years 2015 through 2017, McFadden provided false information on his personal tax returns, reporting false deductions, including personal expenses, on his Schedule C, which falsely reduced his taxable income. The reduction in McFadden’s taxable income resulted in a tax loss to the IRS of $46,865.
The sentencing is the result of an investigation by the Department of Housing and Urban Development, Office of Inspector General, under the direction of Acting Special Agent-in-Charge Brandon Gardner; the Internal Revenue Service, Criminal Investigations Division, under the direction of Thomas Fattorusso, Special Agent-in-Charge, New York Field Office, and the Federal Bureau of Investigation, Rochester Office, under the direction of Special Agent-in-Charge Stephen Belongia.
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Former Brownsville Ambulance Service Treasurer Pleads Embezzled FundsRead the Press Release
PITTSBURGH - A resident of Newell, Pennsylvania, pleaded guilty in federal court to a charge of theft and embezzlement from a program receiving federal funds, United States Attorney Cindy K. Chung announced today.
Edward T. Stevenson, age 63, pleaded guilty to one count before United States District Judge David Cercone.
In connection with the guilty plea, the court was advised that Stevenson, who was employed as the Administrative Director as well as served as the Treasurer of Brownsville Ambulance Service, Inc. (BAS), located in Brownsville, Pennsylvania, from January 17, 2013 through March 22, 2017, without authorization, issued 132 checks totaling $136,140 from BAS’s checking accounts at First National Bank and PNC Bank, made payable to himself, to cash, and to his personal business, Lunden’s Flower Shop, also located in Brownsville. Stevenson deposited the checks in his personal bank account or one of two bank accounts he maintained on behalf of Lunden’s Flower Shop, all of which were issued in excess of his wages and for his personal benefit. At the time of the offense, BAS was a not-for-profit business that annually received $10,000 or more in federal benefits through the Medicare and Medicaid programs.
Judge Cercone scheduled sentencing for June 14, 2022, at 11:30 a.m. The law provides for a total sentence of not more than ten years in prison, a fine of $250,000, or both. The law also requires that Stevenson make full restitution to BAS for the funds he embezzled. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued bond.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the United States Postal Inspection Service conducted the investigation that led to the prosecution of Stevenson.
First of six consultants indicted in Amazon bribery scheme sentenced to prisonRead the Press Release
Seattle – The first of six consultants indicted in September 2020, for a fraud and bribery scheme targeting Amazon.com and its online Marketplace, was sentenced today to 10 months in prison and a fine of $50,000, announced U.S. Attorney Nick Brown. Rohit Kadimisetty, 28, of Northridge, California pleaded guilty to conspiracy in September 2021. At the sentencing hearing U.S. District Judge Richard A. Jones said, “You do not have a license to steal from Amazon, …you were involved in illegal conduct…. This could be called modern day organized crime.”
“Mr. Kadimisetty used his knowledge and contacts from prior employment at Amazon, to enrich himself by manipulating listings on Amazon Marketplace,” said U.S. Attorney Nick Brown. “He was a critical cog in the bribery wheel: paying contacts in India to reinstate suspended accounts, steal confidential information and attack competitors who got in the way of those funding the bribery scheme.”
According to records in the case, since at least 2017, the defendants used bribery and fraud to elevate and benefit certain merchants on the Amazon Marketplace. Kadimisetty and the other defendants served as so-called consultants to third-party (“3P”) sellers on the Amazon Marketplace. Those 3P sellers sold a wide range of goods, including household goods, consumer electronics, and dietary supplements on Amazon’s multi-billion-dollar electronic commerce platform.
Following his employment at Amazon, and after relocating to the United States, Kadimisetty used his inside knowledge to recruit employees in India to misuse their employee privileges and access to internal information, systems, and tools. Kadimisetty connected employees in India with other consultants and 3P sellers across the United States. Kadimisetty acted as a middleman of sorts, assigning tasks on behalf of 3P sellers and negotiating and arranging bribe payments on behalf of corrupted Amazon insiders. To hide his criminal conduct, Kadimisetty used deceptive email accounts, encrypted messaging services, and bribes through third parties.
The illicit services provided by Kadimisetty and the other defendants included: stealing confidential business information about Amazon algorithms; reinstating accounts and products that had been suspended; circumventing inventory fees for Amazon warehouses; falsifying claims for lost inventory; and facilitating attacks on competing sellers and product listings.
In his plea agreement, Kadimisetty admits being responsible for $100,000 in bribes paid to Amazon insiders during his active involvement in the enterprise. Kadimisetty left the conspiracy in late-2018, after a number of his contacts in India were fired by Amazon due to the misconduct.
“Mr. Kadimisetty used his insider access and expertise for his own benefit and those of his co-conspirators. Not only did his actions break the law, but ultimately consumer confidence was shaken by calling into question fair play. Fortunately, the actions of law enforcement were able to stop this scheme,” said Special Agent in Charge Donald Voiret, FBI Seattle.
Four defendants, Ephraim Rosenberg, of Brooklyn, Joseph Nilsen, and Kristen Leccese, of New York City, and Hadis Nuhanovic, of Acworth, Georgia, are scheduled for trial in October 2022. Defendant Nishad Kunju, of Hyderabad, India, has not been arraigned on the indictment.
The case is being investigated by the FBI, with assistance from the Internal Revenue Service-Criminal Investigations (IRS:CI), and the Department of Justice Office of International Affairs.
The case is being prosecuted by Assistant United States Attorneys Steven Masada and Nicholas Manheim.
Federal Inmate Charged with Possession of A WeaponRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Rigoberto Garay-Lopez, age 34, an inmate at the Federal Correctional Institution, Allenwood (FCI Allenwood), was indicted on February 10, 2022, by a federal grand jury for possessing a weapon in prison.
According to United States Attorney John C. Gurganus, the indictment alleges that on January 22, 2022, Garay-Lopez was found in possession of a piece of sharpened metal with a plastic handle, commonly referred to as a “shank,” that is intended to be used as a weapon.
The charge stems from an investigation by the Bureau of Prisons and the Federal Bureau of Investigation. Special Assistant United States Attorney Drew O. Inman and Assistant U.S. Attorney Alisan Martin are prosecuting the case.
If convicted, the maximum term of imprisonment is five years and a $250,000 fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Duplin County Man Receives More Than 14 Years in Federal Prison for Pipe Bombs and Trafficking More Than a Kilogram of MethamphetamineRead the Press Release
NEW BERN, N.C. – Victor Gonzales, 35, of Duplin County, was sentenced to 176 months in prison for (1) Conspiracy to possess with intent to distribute and distribute 50 grams or more of a substance containing Methamphetamine, (2) Distribution of 50 grams or more of a substance containing Methamphetamine and (3) Possession of destructive device pipe bombs not registered to the defendant in the National Registration and Transfer Records.
According to court documents, evidence presented in court and other documents, on April 7, 2021, the Duplin County Sheriff’s Office conducted a controlled purchase of two ounces of methamphetamine from Gonzales at his residence on Albert Grady Road in Mount Olive. A second controlled purchase of approximately two ounces of methamphetamine was completed on April 12, 2021, from the same location.
On April 13, 2021, Duplin County Detectives served a search warrant on two addresses on Albert Grady Road associated with Gonzales. Gonzales was arrested during the serving of the search warrants. In a van in the yard, law enforcement found a box with digital scales and 146 grams of methamphetamine. A safe inside of the residence contained a homemade pipe bomb. Law enforcement found a loaded AR-15 in a car parked in the driveway. During a search of the property at the second residence, the following items were found: 6 homemade pipe bombs, a .22 caliber pistol and .25 caliber pistol. Following his arrest, Gonzales stated that he was going to find out who was “snitching” and that it was not going to be pretty. ATF neutralized the explosive devices.
According to law enforcement, Gonzales is associated with the SUR 13 gang. The investigation revealed that Gonzales was involved in the distribution of more than a kilogram of methamphetamine from October 2019 until the time of his arrest in April 2021.
This is part of operation “Fighting Jelly Fish” which is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, 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.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Duplin County Sheriff’s Office and the Wilmington Police Department investigated the case and Assistant U.S. Attorney Timothy Severo 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. 7:21-cr-00061-FL.
Drug User Who Possessed Multiple Firearms Sentenced to Seven Years’ in Federal PrisonRead the Press Release
A man who illegally possessed multiple firearms was sentenced today to seven years’ in federal prison.
Devonte Wright, age 21, from Waterloo, Iowa, received the prison term after a May 24, 2021 guilty plea to being a drug user in possession of a firearm.
Evidence in the case showed that Wright possessed at least seven firearms, including a firearm with an obliterated serial number, a stolen firearm, and an AR-15 rifle. During the time Wright possessed these firearms, he was a marijuana user. Wright posted multiple videos of himself smoking marijuana while in possession of the firearms to public social media sources.
Wright was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Wright was sentenced to 84 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Wright is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case is being prosecuted by Assistant United States Attorney Lisa C. Williams and was investigated by a Federal Task Force composed of the Waterloo Police Department, Federal Bureau of Investigation, and Bureau of Alcohol Tobacco and Firearms assisted by the Black Hawk County Sheriff’s Office and Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-cr-2007.
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Disbarred Attorney Pleads Guilty to $5 Million Cryptocurrency FraudRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today announced that PHILIP REICHENTHAL, a disbarred attorney, pled guilty in Manhattan federal court today to conspiracy to commit wire fraud, in connection with a scheme to defraud investors who believed they were purchasing Bitcoin. Reichenthal engaged in the scheme with Randy Craig Levine, a/k/a “Viktor Lapin,” a/k/a “Andre Santiago Santos Galindo,” a/k/a “Alexander Martinez Lavrov,” a/k/a “Alexander Kozlov,” a/k/a “Hristo Danielov Marinov,” an international fugitive who fraudulently induced victims to send millions of dollars to REICHENTHAL, who was a licensed attorney at the time of the fraud. REICHENTHAL falsely represented that he would act as an escrow agent for the transactions, but instead, he sent a substantial portion of the money to Levine, before any Bitcoin was provided by Levine to investors. Neither Levine nor REICHENTHAL ever provided any Bitcoin or refunded the investors’ money.
REICHENTHAL was arrested on September 14, 2020, and pled guilty today before U.S. Magistrate Judge Debra Freeman.
U.S. Attorney Damian Williams said: “As a licensed attorney and escrow agent, Philip Reichenthal was entrusted to keep investors’ money safe. But as he admitted today, he betrayed that trust by siphoning millions of dollars of investor money. Now he stands guilty of wire fraud and awaits sentencing for his crime.”
As alleged in the Complaint and Indictment filed against REICHENTHAL, as well as his co-conspirator Levine,[1] and other statements made in open court:
The charges against Levine and REICHENTHAL involve two fraudulent schemes. In the first fraudulent scheme, in approximately June and July 2018, Levine induced another individual, the principal of a purported cryptocurrency escrow firm (“Individual-1”), to wire to REICHENTHAL over $3 million of funds from an over-the-counter cryptocurrency broker (“Company-1”) to fund the purchase of Bitcoin after falsely telling Individual-1 that Levine would sell thousands of Bitcoin, when in truth and in fact, Levine never intended to sell Bitcoin. After receiving the $3 million, REICHENTHAL, in turn, wired over $2 million to bank accounts in Guatemala held in the name of one of Levine’s aliases. Levine then lied to Individual-1 for days about why the deal had not worked out, the status of the purported Bitcoin, and the location of Company-1’s money, which was never returned.
In the second fraudulent scheme, from approximately February 2019 to May 2019, Levine induced a Florida resident involved in brokering Bitcoin transactions (“Individual-2”) to cause investors to send to REICHENTHAL over $2 million of the investors’ money to fund the purchase of Bitcoin. Again, Levine told Individual-2 that Levine would sell Bitcoin, when in truth and in fact, Levine never had any intention of selling Bitcoin to the investors. After receiving the funds from the investors, REICHENTHAL, in turn, sent over $1.9 million to bank accounts in Mexico controlled by Levine; the money was then wired to a bank account in Russia held in the name of one of Levine’s aliases. Levine then lied to Individual-2 and an investor about the status of the investors’ funds, which were never returned.
In connection with the above transactions, Levine used, among other things, various false aliases to communicate with the individuals sending funds to REICHENTHAL and foreign bank accounts held in his false names. REICHENTHAL used bank accounts held in the name of his law firm and an attorney trust account to receive the funds and the pass them to Levine, before he or investors received the Bitcoin, contrary to REICHENTHAL’s and Levine’s promises.
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REICHENTHAL, 78, of Homestead, Florida, pled guilty to one count of conspiracy to commit wire fraud. This charge carries a maximum term of twenty years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
REICHENTHAL will be sentenced at a later date by the Honorable Lewis A. Kaplan.
Extradition proceedings against Levine are pending.
Mr. Williams praised the investigative work of the Federal Bureau of Investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Jordan Estes and Drew Skinner are in charge of the prosecution
[1] As the introductory phrase signifies, as to Levine, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Defendant in Marijuana and Cocaine Conspiracy SentencedRead the Press Release
EL PASO – A defendant in a marijuana and cocaine conspiracy case was sentenced on Wednesday to nine years in prison for his role in the conspiracy.
According to court documents, Vicente Montoya, aka “Vicente Fabela Montoya,” “Chente,” 46, of Socorro, was a member of a drug trafficking organization (DTO) led by Carlos Moreno-Reyes, aka “Charlie Brown” from October 2008 until April 2019. The DTO operated in the El Paso area and was responsible for transporting and distributing marijuana and cocaine from El Paso to destination cities, including Oklahoma City. Montoya admitted that he received approximately $1,800,400 in drug proceeds in his role in the DTO.
On October 4, 2021, Montoya pleaded guilty to conspiracy to possess cocaine with intent to distribute. In addition to his prison sentence, Montoya was ordered to pay a $1,800,400 money judgment.
Other members of the DTO included Carlos Moreno-Reyes, aka “Charlie Brown,” 46, of Clint; Jose Luis Ortiz-Valenzuela, aka “Pelon,” 37, of Avondale, AZ; Julio Adrian Terrazas, aka “JT,” 31, of Fabens; Edgar Sanchez, aka “Siez,” “Chavalito,” 31, of Fabens; Jacinto Olivas-Cervantes, aka “Chente,” “Chinto,” 53, of San Elizario; Oliva Beltran-Paez, 34, of Clint; and Rey Anthony Garza, aka “Ray Anthony Garza,” “Flaco,” 51, of Fabens.
“I am thankful for the diligent efforts of our law enforcement partners that enable us to work together to prosecute not only individual drug traffickers, but also to take down large drug trafficking organizations such as this one,” said U.S. Attorney Ashley C. Hoff.
“The successful conclusion of this case exemplifies HSI’s commitment to disrupting extremely dangerous supply chains of drugs that poison people,” said Homeland Security Investigations (HSI) Acting Special Agent in Charge Taekuk Cho. “The resolve of HSI special agents to curb drug trafficking, which drives violence in our communities, undoubtedly saves lives.”
On February 26, 2020, Moreno pleaded guilty to one count of conspiracy to possess cocaine with intent to distribute and one count of bulk cash smuggling. On November 15, 2021, Moreno was sentenced to 204 months in prison and ordered to pay a money judgment of $25,587,400.
Sanchez and Ortiz-Valenzuela pleaded guilty to one count of conspiracy to possess cocaine with intent to distribute. On March 11, 2020, Sanchez was sentenced to 120 months in prison. On July 17, 2020, Ortiz-Valenzuela was sentenced to 96 months in prison.
Olivas-Cervantes and Terrazas pleaded guilty to one count of conspiracy to possess marijuana with intent to distribute. On February 25, 2020, Olivas was sentenced to 30 months in prison. On July 20, 2020, Terrazas was sentenced to 46 months in prison.
Beltran-Paez, pleaded guilty to one count of bulk cash smuggling. On February 28, 2020, Beltran was sentenced to five years of probation.
Garza pleaded guilty to one count of conspiracy to possess marijuana with intent to distribute and one count of conspiracy to possess cocaine with intent to distribute. On April 6, 2021, Garza was sentenced to 108 months in prison.
HSI investigated the case.
Assistant U.S. Attorney Andres Ortega prosecuted the case.
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Dating Abuse Impacts Millions of Teens Every YearRead the Press Release
ANCHORAGE – Dating abuse impacts millions of teens and young people every year. According to loveisrespect.org, one in three teens in the United States will experience physical, sexual or emotional abuse from someone they’re in a relationship with before they become adults and 43% of college women report experiencing violent or abusive dating behaviors.
February is Teen Dating Violence Awareness and Prevention Month (TDVAPM), a time to raise awareness about this all-too-common issue, focus efforts on ending the violence, and share resources for teens experiencing violence, survivors and their communities.
The U.S. Attorney’s Office for Alaska is proud to share a new resource: the Teens and Technology Resource Series which is funded by the Department of Justice Office on Violence Against Women (OVW). Misuse of technology is an increasingly common tactic by harmful partners. The Teens and Technology resources aim to help adults who teach, work with, and care for teenagers understand technology from their perspective to empower teenagers to safely navigate relationships and technology use. These resources include examples of technology abuse, uses and misuses of social media applications, and five ways to engage with young people.
“Valentine’s Day is the day we celebrate romance, and we naturally think of romance as a beautiful, blissful, benign and healthy feature of our lives,” said District of Alaska U.S. Attorney John E. Kuhn, Jr. “Unfortunately, the terrible reality for too many teens can include relationships fraught with abuse. Families and adults must do more to help our teens foster safe and healthy relationships.”
“The pandemic has made everything more challenging – for children and youth, advocates across the country have reported an uptick in online abuse as younger folks spend more time spent online,” said OVW Principal Deputy Director Allison Randall. “The Teens and Tech Resource Series can help adults meaningfully engage with young people, empowering them to recognize abuse and unhealthy relationships, prevent future violence, and use technology safely. Teen Dating Violence Awareness and Prevention Month gives us the opportunity to put a spotlight on these projects, as well as OVW’s year-round commitment to ending dating violence.”
The District of Alaska’s Missing and Murdered Indigenous Persons (MMIP) Working Group has also heard concerns about teen dating violence and prevention from tribal people and stakeholder provider agencies during listening and consultation sessions across many parts of Alaska. In the last year, the MMIP Working Group reached out and provided an opportunity for listening/consultation sessions to 170 of the 229 Alaska Federally Recognized Tribes as well as education and outreach presentations and forums to all of Alaska’s Tribes. “Fostering healthy relationships in teens and across generations is so important,” added Kuhn. “We must all work together using these tools to encourage and empower teens to develop healthy relationships and eliminate teen dating violence across Alaska.”
If you or someone you know is experiencing domestic violence, intimate partner violence, sexual violence, or stalking, there are many services available to help, including:
- Teen Dating Abuse Hotline, 1-866-331-9474, text ‘LOVEIS’ to 22522, or visit loveisrespect.org
- The StrongHearts Native Helpline, which offers online chat on their website and a hotline – at 1-844-7NATIVE (or 1-844-762-8483) and provides culturally-appropriate services and advocacy to American Indian and Alaska Native survivors of domestic violence, intimate partner violence, and sexual violence.
Alaska Resources:
- Alaska 2-1-1 or www.alaska211.org is a one-stop resource for finding help in your community. It’s free, confidential and available in almost any language. Call Center hours are Mon – Fri 8:30am – 5:30pm.
- Alaska Network on Domestic Violence & Sexual Assault (ANDVSA) provides a state-wide list of resources and contact information for domestic violence and sexual assault advocacy services including shelters. https://andvsa.org/find-help/member-programs/
- Covenant House Alaska supports homeless or at-risk youth 907 272 1255 or www.covenanthouseak.org
- Interior Alaska Center for Non-Violent Living www.iacnvl.org Confidential help available 24/7 at 907-452-2293 or toll-free at 1-800-478-7273
- The Alaska Native Justice Center (ANJC) promotes justice through culturally based advocacy, prevention and intervention services to restore dignity, respect and humanity to all Alaska Native people. https://anjc.org/
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Background for Editors:
The National Network to End Domestic Violence (NNEDV) Safety Net Project developed the Teens and Tech Resource Series in partnership with eleven24, a teen violence prevention program dedicated to reducing the prevalence of relationship abuse and sexual violence through media literacy and identity affirmation.
The Office on Violence Against Women provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw
Curwensville Felon Sentenced for Unlawfully Possessing AmmunitionRead the Press Release
JOHNSTOWN, Pa. – A resident of Curwensville, PA, has been sentenced in federal court to a total of 24 months in prison and 3 years’ supervised release on his conviction of unlawful possession of ammunition by a convicted felon, United States Attorney Cindy K. Chung announced today.
Senior United States District Judge Kim R. Gibson imposed the sentence on Chancellor M. Shaw Walter, 27.
According to information presented to the court, on September 16, 2019, Shaw was found in possession of ammunition. On June 26, 2018, Shaw was convicted in the Court of Common Pleas of Clearfield County, of the crimes of flight to avoid apprehension and fleeing or attempting to elude a police officer, which are crimes punishable by imprisonment for a term exceeding one year. Federal law prohibits persons who have been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing ammunition
Assistant United States Attorney Maureen Sheehan-Balchon prosecuted this case on behalf of the government.
Ms. Chung commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pennsylvania State Police for the investigation that led to the successful prosecution of Shaw.
Council Bluffs Woman Sentenced for Transportation of a MinorRead the Press Release
COUNCIL BLUFFS, IA – Diamond Marie Logan, age 24, of Council Bluffs, was sentenced on February 8, 2022, by United States District Court Judge Rebecca Goodgame Ebinger to 120 months in prison for Transportation of a Minor. Logan’s term of imprisonment will be followed by five years of supervised release. According to court documents, Logan pleaded guilty to the charge on September 7, 2021.
On November 18, 2020, two teenage girls ran away from a residential group home located in Omaha. They first went to a home in Omaha but were later picked up by Logan who then drove the girls to her house in Council Bluffs. On December 2, 2020, the FBI located one of the teenagers in Omaha who then assisted in locating the second teenager. The two girls disclosed that Logan posted them on an online website for purposes of prostitution. The FBI searched through the online website and found that between October and December 2020, Logan posted numerous ads for prostituting the girls. Logan arranged prostitution at her home in Council Bluffs and also drove one of the girls from Council Bluffs to Omaha for the purpose of engaging in prostitution.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Council Bluffs Police Department, Omaha Police Department, and the Federal Bureau of Investigation investigated the case. This case was prosecuted by the United States Attorney’s Offices for the Southern District of Iowa.