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Friday 11 February 2022
Council Bluffs Man Sentenced for Methamphetamine OffenseRead the Press Release
COUNCIL BLUFFS, IA – Mitchell Wayne Bochnicek, age 43, of Council Bluffs, was sentenced December 8, 2022, by United States District Court Judge Rebecca Goodgame Ebinger to 120 months in prison for Possession with Intent to Distribute Methamphetamine. His term of imprisonment will be followed by five years of supervised release. According to court documents, Bochnicek pleaded guilty to the offense on September 2, 2021.
On January 21, 2021, Bochnicek was stopped by law enforcement regarding his vehicle bearing an incorrect registration plate. After attempting to identify Bochnicek, the officer performed a pat down and located a scale in his pocket. The officer then located methamphetamine, baggies, a scale, a loaded firearm, and $1,392 inside the vehicle. Bochnicek admitted the methamphetamine and the paraphernalia belonged to him.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Council Bluffs Police Department and the Southwest Iowa Narcotics Task Force investigated the case. This case was prosecuted by the United States Attorney’s Offices for the Southern District of Iowa.
Columbia Sex Offender Sentenced to 10 Years for Possessing Child PornographyRead the Press Release
JEFFERSON CITY, Mo. – A Columbia, Missouri, sex offender was sentenced in federal court today for possessing child pornography.
Joseph Lynn Clark, 63, was sentenced by U.S. District Judge Stephen R. Bough to 10 years in federal prison without parole.
On Oct. 12, 2021, Clark pleaded guilty to possessing child pornography. Clark, who has a prior state conviction for possessing child pornography, admitted that he uploaded child pornography to his Google account.
On Oct. 30, 2020, a detective with the Boone County Sheriff’s Department Cyber Crimes Task Force received a Cybertip from the National Center for Missing and Exploited Children reporting 92 files that appeared to be child pornography in Clark’s Google Photos account. On Jan. 27, 2021, law enforcement officers executed a search warrant at Clark’s residence and Clark was arrested. Officers seized Clark’s iPhones, laptop computer, iPad, and electronic storage devices.
This case was prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the Boone County, Mo., Sheriff’s Department and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Columbia Man Sentenced for Meth TraffickingRead the Press Release
JEFFERSON CITY, Mo. – A Columbia, Missouri, man was sentenced in federal court today for methamphetamine trafficking after he received a large package of methamphetamine shipped from California to distribute locally.
Bryan Patton Tullous, 39, was sentenced by U.S. District Judge Stephen R. Bough to 10 years and 11 months in federal prison without parole.
On Sept. 2, 2021, Tullous pleaded guilty to participating in a conspiracy to distribute methamphetamine.
On April 26, 2019, law enforcement officers intercepted a package from California that had been shipped to the residence shared by Tullous and co-defendant Cassiopeia Marie Blaise, 37. The package contained approximately 5.6 pounds of methamphetamine in five individual packages that weighed approximately one pound (453 grams) each, for a total of 2.209 kilograms of methamphetamine. Officers conducted surveillance of the residence as the package was delivered to the front porch. Both Tullous and Blaise were outside; Blaise retrieved the package and took it inside the residence while Tullous was in a neighbor’s yard. Officers took both of them into custody and executed a search warrant of the residence. Officers found the opened package hidden under clothing at the foot of the bed in the master bedroom.
Officers also found a dozen firearms in various areas of the residence, including a loaded Smith & Wesson .380-caliber pistol laying near the package in the bedroom. In a safe in the garage, officers found a Mossberg .22-caliber rifle, a Snake Charmer 410 shotgun, a Browning .223-caliber rifle, a Bear River .38-caliber revolver, and a Charter Arms .38-caliber revolver. The Snake Charmer 410 shotgun had the stock cut off, making it useable as a pistol grip-type weapon.
Tullous admitted that he ordered the package and paid $12,000 for the methamphetamine.
Blaise pleaded guilty on Aug. 31, 2021, to possessing methamphetamine with the intent to distribute and awaits sentencing.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the East Central Drug Task Force, the Drug Enforcement Administration, the Missouri State Highway Patrol and the Columbia, Mo., Police Department.
Cheektowaga Man Arrested on Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that James Fox, 38, of Cheektowaga, NY, was arrested and charged by criminal complaint with maintaining a drug premises and possession of a firearm in furtherance of drug trafficking. The charges carry a mandatory minimum penalty of five years in prison and a maximum of life in prison.
Assistant U.S. Attorneys Nicholas T. Cooper and Aaron J. Mango, who are handling the case, stated that according to the complaint, on February 3, 2022, investigators executed a search warrant at Fox’s residence on Beach Road in Cheektowaga, NY. During the execution of the search warrant, among other items, investigators seized a loaded shotgun; additional rounds of ammunition; Narcan; two electrical tasers; and a stun gun. The Government alleges that Fox frequently used his residence to solicit prostitutes, many of whom were addicted to heroin and crack cocaine, and that Fox provided some of the prostitutes with illegal narcotic in exchange for sex acts.
Fox is being held following a detention hearing before U.S. Magistrate Judge Michael J. Roemer.
The complaint is a result of an investigation by Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Matthew Scarpino, the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, the Lancaster Police Department, under the direction of Chief William Karn. Jr. and Cheektowaga Police Department, under the direction of Chief Brian Gould.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Centralia Man Sentenced for Possessing a FirearmRead the Press Release
EAST ST. LOUIS, Ill. – Brylon Engelkins, 21, of Centralia, Illinois, was sentenced to 36 months in
prison for possessing a firearm by a felon. Upon his release, Engelkins will be supervised by
United States Probation for a period of three years. Additionally, Engelkins must pay a $300 fine
and a $100 special assessment fee.
According to court documents, Engelkins possessed a 9mm Diamondback pistol while on
supervised release for Possession of a Firearm with an Obliterated Serial Number, a prior federal
conviction from the Southern District of Illinois. Engelkins’ current sentence will be
served consecutive to the sentence previously imposed for violating his supervised release.This case was investigated by the FBI - Springfield Division Safe Streets Task Force, the United
States Marshal’s Service, and the Centralia Police Department.Cedar Rapids Man Pleads Guilty to Being a Prohibited Person in Possession of a FirearmRead the Press Release
A prohibited person who possessed a firearm pled guilty today in federal court in Cedar Rapids, Iowa.
Rakeem Leonard, age 30, from Cedar Rapids, was convicted of one count of being a prohibited person in possession of a firearm. At the plea hearing, Leonard admitted that, on July 19, 2021, he possessed a Taurus 9mm pistol after having been convicted of two felonies and while he was subject to a no contact order.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Leonard remains in custody of the United States Marshal pending sentencing. Leonard faces a possible maximum sentence of ten years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment.
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.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and is being investigated by the High Risk Unit of the Sixth Judicial District Department of Correctional Services, the Cedar Rapids Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 21-53.
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Boswell Man Pleads Guilty to Possessing and Distributing MethamphetamineRead the Press Release
JOHNSTOWN, Pa. – A former resident of Boswell, PA pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney Cindy K. Chung announced today.
Michael Knisely, 31, pleaded guilty to Count One of the Indictment before United States District Judge Stephanie Haines.
In connection with the guilty plea, the court was advised that from on or about April 16, 2021, Knisely possessed with the intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine.
Judge Haines scheduled sentencing for June 23, 2022, at 10:30 a.m. The law provides for a minimum sentence of 10 years in prison and a maximum of life in prison, a fine of $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Arnold P. Bernard Jr. is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Laurel Highlands Resident Agency, FBI Safe Streets Task Force, Cambria County Drug Task Force, and Cambria County District Attorney’s Office conducted the investigation that led to the prosecution of Knisely.
Boston-Area Gang Member Pleads Guilty to Drug and Firearms Conspiracy Involving Six Shootings, Including One with Machine GunRead the Press Release
BOSTON – A member of the Tiny Rascals Gang (TRG) pleaded guilty yesterday to his role in a drug trafficking conspiracy operating in Massachusetts and Maine and to his involvement in six shootings in furtherance of the conspiracy.
Jaiir Coleman, a/k/a “JC”, a/k/a “Chino,” 22, of Malden, pleaded guilty to one count of conspiracy to manufacture, distribute and possess with intent to distribute 400 grams or more of fentanyl, 50 grams or more of methamphetamine, and 280 grams or more of cocaine base, and other controlled substances; one count of conspiring to possess, use and carry firearms in furtherance of a drug trafficking conspiracy; one count of possessing a machine gun; and one count of possessing a machine gun in furtherance of a drug trafficking conspiracy. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for June 8, 2022. Under the terms of the plea agreement, Coleman faces a mandatory term of 40 years in prison for these drug and gun crimes.
Coleman was arrested in January 2021 on state offenses and charged in April 2021 as part of Operation Street Sweepah: Kings of Belaire, an investigation that began in 2020 in direct response to increased violence in communities north of Boston where a significant spike in shootings is believed to be the result of gang-related rivalries.
Coleman is a self-identified member of TRG, one of the largest and most violent criminal street gangs in the country that operates on a decentralized structure via local groups or “sets.” TRG is involved in street-level distribution of powdered cocaine, marijuana, ecstasy and methamphetamine and members are known for their involvement in gun violence on the street, including drive-by shootings of residences of rival gang members.
Coleman participated in a long-running conspiracy to distribute large quantities of fentanyl, methamphetamine and cocaine base (crack cocaine) locally and in the Bangor, Maine, area. The charging documents describe numerous recorded conversations between Coleman and a co-conspirator in which the sale and distribution of controlled substances is discussed, including explicit instructions by Coleman about the manner in which to adulterate fentanyl and the proper prices to charge.
Coleman admitted to committing six shootings in furtherance of this drug conspiracy. Four shootings took place on Nov. 11, 2019, in Chelsea and Somerville, during which homes and vehicles were struck with gunfire. A fifth shooting took place in May 2020 in Somerville targeting individuals who were believed to be rival gang members. A sixth shooting took place in Cambridge in July 2020, during which Coleman used a machine gun to shoot at a group of individuals in response to a video posting made on social media.
On Jan. 6, 2021, Coleman was arrested for operating with a suspended license. A subsequent search of Coleman’s vehicle resulted in the recovery of a machine gun. According to the charging documents, a music video posted online earlier that week depicts Coleman holding and brandishing the same machine gun recovered from the vehicle on Jan. 6, 2021.
The charge of conspiring to distribute and possess with intent to distribute 400 grams or more of fentanyl, 50 grams or more of methamphetamine, and 280 grams or more of cocaine base, provides for a mandatory minimum sentence of at least 10 years and up to life in prison, at least five years and up to a lifetime of supervised release and a fine of up to $10 million. The charge of conspiring to possess, use and carry firearms in furtherance of a drug trafficking conspiracy provides for a sentence of up to life in prison because a machine gun was involved in the offense, five years of supervised release and a fine of $250,000. The charge of possessing a machine gun provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charge of possessing a machine gun during and in relation to a drug trafficking crime provides for a mandatory minimum sentence of 30 years and up to life in prison to be served consecutively to the penalty for the underlying drug trafficking crime, five years of supervised release and a fine of $250,000. Sentences are imposed by a federal district judge based on the U.S. Sentencing Guidelines and other statutory factors.
First Assistant United States Attorney Joshua S. Levy; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Roy E. McKinney, Director of the Maine Drug Enforcement Agency; Somerville Acting Police Chief Charles Femino; Chelsea Police Chief Brian Kyes; Lynn Police Chief Christopher P. Reddy; Cambridge Police Commissioner Christine Elow; Salem Police Chief Lucas Miller; Everett Police Chief Steven A. Mazzie; Malden Police Chief Kevin Molis; and Revere Police Chief James Guido made the announcement. Assistance was provided by the U.S. Attorney’s Office for the District of Maine; Middlesex County and Suffolk County District Attorney’s Offices; Suffolk County and Essex County Sheriff’s Departments; and the Boston Police Department. Assistant U.S. Attorney Philip A. Mallard of the Organized Crime & Gang Unit is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Bloomsburg Man Charged with Attempted Production of Child Pornography and Attempted Online EnticementRead the Press Release
WILLIAMSPORT- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Alexander Stroup, age 33, of Bloomburg, Pennsylvania, was indicted on February 11, 2022, by a federal grand jury on charges of attempted production of child pornography, attempted enticement of a minor, receipt of child pornography, and transmitting obscene material to a minor.
According to United States Attorney John C. Gurganus, the indictment alleges that from or about October 23, 2021 through October 23, 2021, Stroup attempted to persuade, induce, and entice, a person under the age of 18 to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct using a facility of interstate commerce. The indictment also alleges that Stroup did transfer and attempt to transfer obscene matter to another individual who had not attained the age of 16 years.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney George J. Rocktashel is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
If convicted, the maximum penalty under federal law for this offense is life imprisonment, a term of supervised release following imprisonment, and a 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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Beckley Man Pleads Guilty to Federal Drug and Gun CrimesRead the Press Release
BECKLEY, W.Va. – Michael Bryant, 62, of Beckley, pleaded guilty today to federal drug and gun crimes.
According to court documents, Bryant admitted selling fentanyl to a confidential informant on three separate occasions in March 2021. The drug transactions occurred at his residence on Hunt Street in Beckley. During one of the controlled buys, Bryant also sold the confidential informant a loaded Francolin Arms, model Citadel Boss 25, 12 gauge shotgun. Law enforcement officers executed a search warrant at Bryant’s residence on October 21, 2021 and seized additional quantities of fentanyl, a loaded Sports Arms, Derringer 22 caliber pistol, and rounds of 9mm and 22 caliber ammunition. Bryant admitted that he knew he was prohibited from possessing firearms as a result of his two prior felony convictions for unlawful assault and being a felon in possession of a firearm.
Bryant pleaded guilty to distribution of fentanyl and being a felon in possession of a firearm and faces up to 30 years in prison when he is sentenced on May 19, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Beckley/Raleigh County Drug and Violent Crime Unit. The Beckley/Raleigh County Drug and Violent Crime Unit is comprised of officers from the West Virginia State Police, the Raleigh County Sheriff’s Department and the Beckley Police Department.
United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney Negar Kordestani is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:21-cr-00199.
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Bagel Company Owner Pleads Guilty to Tax Evasion and Wire Fraud ConspiracyRead the Press Release
A New York man pleaded guilty today to tax evasion and a wire fraud conspiracy.
According to court documents and statements made in court, Joseph Smith, of Fishkill, owned and operated New York Bagel, a business that operated in Pennsylvania and other states. Smith and Dennis Mason conspired to defraud individuals who sought to open new franchises of New York Bagel. Smith and Mason induced the prospective franchisees to open up New York Bagel stores by understating the startup costs, overstating the number of franchises that were up and running, and exaggerating the financial success of existing franchises. Smith and Mason charged prospective franchisees fees ranging between $7,500 and $44,500 to gain rights to open stores. When prospective franchisees learned of the misrepresentations, Smith refused to refund these fees.
For the years 2014 through 2016, Smith deposited more than $1.3 million in franchise fees into New York Bagel bank accounts he controlled. Smith spent these funds on personal items wholly unrelated to New York Bagel including rent for his personal home, recreational travel, car payments for personal vehicles and everyday living expenses. Smith did not timely file corporate or individual income taxes for these three years, or pay the taxes owed to the IRS, even though he was required by law to do so.
Mason previously pleaded guilty to wire fraud and conspiracy to commit wire fraud on June 25, 2020.
Smith is scheduled to be sentenced on May 24. He faces a maximum penalty of five years in prison on both the tax evasion and conspiracy charges, 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 and U.S. Attorney Jennifer Arbittier Williams for the Eastern District of Pennsylvania made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorney Eric B. Powers of the Justice Department’s Tax Division and Assistant U.S. Attorney David Ignall of the U.S. Attorney’s Office are prosecuting the case.
Altoona Man Sentenced to 10 Years’ in Prison for Possession of Materials Depicting the Sexual Exploitation of MinorsRead the Press Release
JOHNSTOWN, Pa. – A resident of Altoona, PA, has been sentenced in federal court to a total of 10 years’ in prison followed by 10 years’ supervised release on his conviction of possession of material depicting the sexual exploitation of minors, United States Attorney Cindy K. Chung announced today.
Senior United States District Judge Kim R. Gibson imposed the sentence on Matthew Michael Walter, 34.
According to information presented to the court, on or about August 22, 2019, Walter knowingly possessed pictures and videos in individual computer graphic files which were produced using prepubescent minors engaging in sexually explicit conduct. All computer graphic files were shipped or transported in interstate or foreign commerce.
Assistant United States Attorney Maureen Sheehan-Balchon prosecuted this case on behalf of the government.
Ms. Chung commended the Department of Homeland Security Investigations for the investigation that led to the successful prosecution of Walter.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Alleged Drug Trafficker Extradited from EcuadorRead the Press Release
Assistant U.S. Attorneys Matthew J. Sutton (619) 546-8941 and Mikaela L. Weber (619) 546-9734
NEWS RELEASE SUMMARY – February 11, 2022
SAN DIEGO – Brayan Alberto Rodriguez Alcala, an alleged Sinaloa Cartel drug trafficker, was extradited to the United States from Ecuador today.
On October 19, 2021, a federal grand jury sitting in the Southern District of California returned an indictment charging Rodriguez Alcala with participating in a long-running worldwide conspiracy to traffic substantial quantities of cocaine, from Central and South America to Mexico and ultimately into the United States, as well as laundering millions of dollars in drug proceeds.
Rodriguez Alcala was apprehended by Ecuadorian authorities in November 2021 while visiting Quito, and Ecuador granted the United States’ extradition request in January 2022. He arrived in San Diego this morning and made his initial appearance today before U.S. Magistrate Judge Bernard G. Skomal. He is scheduled for a motion hearing/trial setting before Judge Curiel on May 16, 2022, at 1:30 p.m.
“Those who export dangerous narcotics to the United States and seek to evade justice will find no place to hide,” said U.S. Attorney Randy S. Grossman. “The Department of Justice appreciates the cooperation of the Ecuadorian authorities in this matter. By working with our law enforcement partners at home and around the world, we will continue to work to dismantle dangerous drug cartels.”
“This extradition sends a resounding message to drug traffickers around the world that the United States law enforcement community will vehemently pursue those who seek to harm to Americans with their deadly drugs and violence.” said HSI San Diego Special Agent in Charge Chad Plantz who further praised the efforts of the San Diego Strike Force for their support and contribution to this criminal investigation and extradition.”
“This extradition is another victory against the Sinaloa Cartel that will negatively impact their cocaine distribution operation,” said DEA Special Agent in Charge Shelly S. Howe. “The DEA is committed to holding anyone who profits from drug trafficking accountable, regardless of where they are located in the world.”
“The FBI is proud to work alongside our international and federal partners from HSI, DEA, and IRS to bring wanted persons back to the United States to face justice,” said FBI Special Agent in Charge Suzanne Turner. “This collaborative effort should send a message to fugitives worldwide – the United States government’s international reach has no limits. We will continue to use all investigative resources and international law enforcement partnerships to disrupt these transnational criminal organizations. The FBI is grateful for the hardline stance President Guillermo Lasso and the Government of Ecuador have taken against international fugitives.”
“The supply of narcotics illegally crossing our borders, entering our communities, and killing our citizens is completely fueled by greed,” said IRS Criminal Investigation Special Agent in Charge Ryan L. Korner. “For decades, IRS Criminal Investigation has been committed to working with our law enforcement partners to trace and stem the flow of illicit money to dismantle the drug trade. Today’s extradition of Brayan Rodriguez Alcala, who is charged with drug trafficking and money laundering, demonstrates that you cannot hide from justice.”
The Justice Department extends its gratitude to the Government of Ecuador, and its prosecutorial and law enforcement authorities for making the extradition possible. The Justice Department’s Office of International Affairs and the United States State Department provided significant assistance in securing the defendant’s extradition from Ecuador.
This case is part of a long-running investigation targeting the Valenzuela Transnational Criminal Organization, which is a significant component of the Sinaloa Cartel. To date, the investigation has resulted in the charging of 34 defendants and the seizure of approximately $3.8 million dollars in U.S. currency, 685 kilograms of cocaine, 24 kilograms of fentanyl, and 20,000 rounds of .50 caliber ammunition.
This prosecution is also part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
The United States is represented in court by Assistant U.S. Attorneys Matthew J. Sutton and Mikaela L. Weber
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Defendant Information
Defendant Criminal Case No: 21-cr-2960-GPC
Defendant Number
Name
Age
Hometown
12
Brayan Alberto Rodriguez Alcala
23
Culiacan, Mexico
Summary Of Charges
International Conspiracy to Distribute Cocaine for Purpose of Unlawful Importation, in violation of Title 21 U.S.C. §§ 959, 960 and 963. Term of custody including a mandatory minimum 10 years and up to life imprisonment, $10 million fine.
Conspiracy to Import Cocaine, in violation of Title 21 U.S.C. §§ 952, 960 and 963. Term of custody including a mandatory minimum 10 years and up to life imprisonment, $10 million fine.
Conspiracy to Distribute Cocaine, in violation of Title 21 U.S.C. §§ 841(a)(1) and 846. Term of custody including a mandatory minimum 10 years and up to life imprisonment, $10 million fine.
Conspiracy to Launder Monetary Instruments, in violation of Title 18 U.S.C. 1956(h). Term of custody up to 20 years in prison, a fine of $500,000 or twice the value of the monetary instrument or funds involved.
AGENCIES
Homeland Security Investigations
Drug Enforcement Administration
Federal Bureau of Investigation
Internal Revenue Service - Criminal Investigation
United States Marshals Service
Alabama Man Indicted for Transporting a Minor Across State Lines for Sexual ActivityRead the Press Release
PECOS – A federal grand jury in Pecos returned an indictment yesterday charging an Alabama man with transportation of a minor across state lines to engage in criminal sexual activity.
According to court documents, Matthew Jacob Metzler, 32, traveled to Arizona to pick up a minor and then brought the child to Pecos where he allegedly engaged in sexual acts with the child.
Metzler is charged with one count of transportation of a minor in interstate commerce to engage in a criminal sexual activity. The defendant is scheduled for a detention hearing on February 16, 2022, before U.S. Magistrate Judge David B. Fannin of the U.S. District Court for the Western District of Texas. If convicted, he faces a mandatory minimum of 10 years and up to life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ashley C. Hoff of the Western District of Texas and Homeland Security Investigations (HSI) Acting Special Agent in Charge Taekuk Cho made the announcement.
HSI, along with invaluable assistance from the Pecos Police Department and the Texas Department of Public Safety Criminal Investigations Division, is investigating the case.
Assistant U.S. Attorney Amy L. Greenbaum is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Thursday 10 February 2022
Webb City Man Sentenced to 16 Years for Sexual Exploitation of Two ChildrenRead the Press Release
SPRINGFIELD, Mo. – A Webb City, Missouri, man was sentenced in federal court today for the sexual exploitation of two victims, an 8-year old and a 16-year old.
Harley Wayne Schrader, 27, was sentenced by U.S. District Judge Stephen R. Bough to 16 years and eight months in federal prison without parole. The court also sentenced Schrader to spend the rest of his life on supervised release following incarceration. Schrader will be required to register as a sex offender upon his release from prison and will be subject to federal and state sex offender registration requirements, which may apply throughout his life.
On July 20, 2021, Schrader pleaded guilty to two counts of the sexual exploitation of a child. Schrader admitted that he solicited pornographic images from an 8-year-old child victim and that he sent her pornographic images of himself through Facebook Messenger. Schrader also admitted that he solicited pornographic images from a 16-year-old victim he met through a video game.
A Joplin, Mo., police officer took a report on July 7, 2017, that Schrader was sending inappropriate pictures to the child victim through Facebook Messenger. Investigators also found sexually explicit images of the child victim that had been sent to Schrader through Facebook Messenger.
On Oct. 4, 2017, law enforcement officers executed a search warrant at Schrader’s residence and seized his cell phone. During an interview with officers, Schrader also admitted that he met a 16-year-old female through the video game Immortal Knight, and she sent him nude images of herself. Investigators found multiple messages between Schrader and the 16-year-old victim on his cell phone, as well as images of child pornography.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the FBI, the Southwest Missouri Cyber Crime Task Force, and the Joplin, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Waterloo Man Who Put Gun to Woman’s Head Found Guilty After Jury TrialRead the Press Release
A jury found a convicted felon who put a gun to a woman’s head and fired the gun at a residence guilty on February 9, 2022, following a three-day jury trial.
Trivansky Tyrique Swington, age 29, from Waterloo, Iowa, was found guilty of possessing a firearm as a felon.
Evidence at trial showed that, on February 15, 2021, Swington was with a group of friends at a residence in Waterloo, Iowa. The group had been drinking for several hours when some of them decided to leave. Swington and three others got into a vehicle. Before the vehicle even left the residence, Swington got into an argument with a woman inside the vehicle. Swington began scratching and clawing at the woman and pulling her hair. Swington pulled out chunks of the woman’s hair, which officers later found in the back of the car and in the driveway. At some point, Swington pulled out a .38 Special Revolver and pointed it at the woman’s head. Other people in the vehicle tried to wrestle the gun away from Swington. Eventually, one person got out of the vehicle and went to get help. Two people, including the victim, called 9-1-1 while Swington was still at the residence. While they were on the phone with 9-1-1, Swington took off down the street, turned around and fired the gun at the residence. Officers responded to the scene and spoke with witnesses who said that Swington had pulled out a revolver. Officers located Swington a couple blocks away. With the use of a K9, officers were able to track Swington’s path of travel and locate a .38 Special Revolver. Witnesses positively identified the revolver as the one Swington had pulled on them. Swington has previously been convicted of a felony offense.
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.
Swington is being held in the United States Marshal’s custody until he can be sentenced. A sentencing date has not yet been set.
The case was prosecuted by Assistant United States Attorney Ashley Corkery and Special Assistant United States Attorney Devra Hake and investigated by the Waterloo Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the United States Marshal’s Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-2033.
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Waltham Man Indicted for Child Pornography OffenseRead the Press Release
BOSTON – A Waltham man has been indicted by a federal grand jury in Boston for allegedly receiving child pornography.
Robert Daigle, 45, was indicted on one count of receipt of child pornography. Daigle was arrested and charged by criminal complaint on Jan. 11, 2022, with the same offense and, after a detention hearing, was released on pretrial conditions.
According to charging documents, a search of Daigle’s residence on Jan. 11, 2022, resulted in the recovery of electronic devices belonging to the defendant. An on-site forensic examination revealed images and videos depicting child pornography on at least one device. During an interview with investigative agents, Daigle allegedly admitted to downloading hundreds of thousands of child pornography files.
The charge of receipt of child pornography provides for a sentence of at least five years and up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the United States Sentencing Guidelines and other statutory factors.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Office; and Waltham Police Chief Kevin O’Connell made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Rollins’ Major Crimes Unit is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identity and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Union County Man Sentenced to 10 Years in Prison for Drug Distribution ChargesRead the Press Release
NEWARK, N.J. – A Union County, New Jersey men was sentenced today to 120 months in prison for drug distribution charges in connection conspiring to distribute cocaine base and distributing fentanyl and cocaine base, U.S. Attorney Philip R. Sellinger announced.
Tyrell Wilson, aka “Hell Rell,” 36, of Rahway, New Jersey, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with one count of conspiracy to distribute 280 grams or more of cocaine base and one count of possession with intent to distribute 280 grams or more of cocaine base. Judge Arleo imposed the sentence today by videoconference.
In September 2019, Wilson and Marvin Lagrier, aka “Black Jesus,” 39, of Newark, were were charged by complaint with conspiracy to distribute heroin and cocaine and possession with the intent to distribute heroin and cocaine base. Lagrier was indicted on these charges in October 2019, pleaded guilty in August 2021, and is scheduled to be sentenced on April 5, 2022.
According to documents filed in this case and statements made in court:
On Sept. 19, 2019, Wilson and Lagrier were arrested for conspiring to sell at least 280 grams of cocaine base.
In addition to the prison term, Judge Arleo sentenced Wilson to five years of supervised release.
U.S. Attorney Sellinger credited special agents of the DEA, under the direction of Special Agent in Charge Susan A. Gibson in Newark, and members of the Newark Police Department, under the direction of Public Safety Director Brian O’Hara, with the investigation leading to today’s sentencing.
This case is part of the Violent Crime Initiative (VCI), which was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, N.J. State Parole, Union County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, N.J. Department of Corrections, the East Orange Police Department, the Orange Police Department and the Irvington Police Department.
The government is represented by Assistant U.S. Attorney Tracey Agnew and Special Assistant U.S. Attorney Kendall Randolph of the U.S. Attorney’s Office Organized Crime/Gang Unit in Newark.
U.S. Permanent Resident Convicted by Nebraska Jury in Methamphetamine Distribution ConspiracyRead the Press Release
United States Attorney Jan Sharp announced that a federal jury in the District of Nebraska found Oswaldo Neri, 30, of Mexico, guilty of conspiracy to distribute and possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine. Oswaldo Neri conspired with his brother, Jesse Neri, and others to distribute methamphetamine in Omaha in early 2021. Oswaldo Neri resides in the U.S. as a permanent resident.
On January 4 and 5, 2021, a DEA undercover agent posing as a customer contacted a known Mexico-based methamphetamine supplier to order for purchase 1 pound of methamphetamine. The agent and the Mexican source of supply agreed that a local party would meet the customer at a business in Omaha, Nebraska to complete the sale and agreed that the customer would pay $4,100 for the pound. As planned, they met and completed the transaction. Investigators thereafter identified the Neri brothers as the persons who met with the undercover officer and delivered the methamphetamine.
A week later, on January 12, 2021, investigators executed a search warrant at the Neri brothers’ residence in Omaha. Both brothers were arrested, and investigators recovered 6 additional pounds of methamphetamine from Oswaldo Neri’s bedroom closet, as well as additional evidence of distribution.
United States District Judge Brian C. Buescher presided over the jury trial and will sentence Oswaldo Neri on May 18, 2022.
This case was investigated by the Drug Enforcement Administration, Omaha Field Division, and the Nebraska State Patrol. The Douglas County Sheriff’s Office Forensic Chemistry Unit provided laboratory services for the investigation.
Two Whitley County Men Convicted of Violent KidnappingRead the Press Release
LONDON, Ky. — Two Rockholds, Kentucky, men, Jake Messer, 38, and George Oscar Messer, 62, have been convicted by federal juries sitting in London, of two counts of kidnapping. Jake Messer was convicted on Thursday morning, after a three-day trial. George Oscar Messer was convicted on January 13, 2022, after his three-day trial
According to trial evidence, the kidnappings were motivated by a drug transaction that went off track. The Messers kidnapped two victims, in Rockholds, and transported them to a remote trailer in Manchester. There, the victims were held for approximately 24 hours, during which time they were interrogated. One victim was repeatedly sexually assaulted.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Kentucky State Police (KSP) Drug Enforcement and Special Investigations Unit recovered 15 firearms and numerous controlled substances from the Messer residence. Several of the firearms, including an assault rifle, were used in furtherance of the kidnappings.
The Messers were indicted in November of 2020. Their two co-conspirators, Joshua Mills and Stephen S. Jewell, previously entered guilty pleas to kidnapping and are likewise awaiting sentencing.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Shawn S. Morrow, Special Agent in Charge, ATF, Louisville Field Division; and Colonel Phillip Burnett, Commissioner of the Kentucky State Police jointly announced the verdicts.
The investigation was conducted by the ATF and KSP. The United States was represented by Assistant U.S. Attorney Jenna E. Reed.
Jake Messer will appear for sentencing on May 31, 2022; George Oscar Messer will appear on May 11, 2022; Joshua Mills will appear on May 16, 2022; and Stephen S. Jewell will appear on May 6, 2022.
Each defendant faces a maximum of Life in prison. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing the sentence.
This case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. The PSN program involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Tompkins County Man Sentenced to Twenty Years in Prison for Federal Drug and Firearms ChargesRead the Press Release
BINGHAMTON, NEW YORK – Shameek Halls, age 31, of Tompkins County, New York, was sentenced yesterday to 20 years in federal prison for his convictions for trafficking crack cocaine, heroin and fentanyl, and possessing firearms in furtherance of a drug trafficking crime, announced United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Halls was also ordered to forfeit ownership of the currency, ammunition and firearms seized during this case and, also, serve a 5-year term of supervised release following his prison sentence.
As part of his guilty plea, Halls admitted that he was responsible for selling crack cocaine, heroin and fentanyl on numerous occasions in Broome County in New York’s Southern Tier from 2018 through 2019. Further, on November 14, 2019, the Federal Bureau of Investigation (FBI) and their partner agencies seized three handguns, an AR-15 style weapon and ammunition from Halls. As part of his guilty plea, Halls admitted that he possessed firearms in furtherance of his drug trafficking crimes.
This case was investigated by the Federal Bureau of Investigation (FBI), the Broome County Special Investigations Unit Task Force (BCSIUTF), comprised of the Broome County Sheriff’s Office, Binghamton Police Department, Johnson City Police Department and Endicott Police Department, as well as by the New York State Police Violent Gang Narcotic Enforcement Team (VGNET) and the New York State Police Special Investigation Unit (SIU), and was prosecuted by Assistant U.S. Attorney Kristen Grabowski.
Three Bowling Green Men Charged in Drug Trafficking ConspiracyRead the Press Release
Bowling Green, KY – A federal grand jury in Bowling Green, KY returned an indictment yesterday charging three men in a drug conspiracy.
According to court documents, Antonio Billups, 33, of Palmetto, GA, Leon Allen, 33, of Bowling Green, KY, and Timothy Barnett, 45, of Bowling Green, KY, are charged with conspiring together from at least as early as November 22, 2021, and continuing to on or about November 23, 2021, to possess with the intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine and with aiding and abetting each other to possess with the intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine.
Billups, Allen and Barnett are all charged in the indictment with one count of Conspiracy to Possess with the Intent to Distribute a Controlled Substance and one count of aiding and abetting each other in the Possession with the Intent to Distribute a Controlled Substance. Billups and Allen also are charged in an additional count of the indictment for aiding and abetting each other in the Possession with the Intent to Distribute a Controlled Substance. The defendants are scheduled for their arraignment on February 23, 2022, before U.S. Magistrate Judge H. Brent Brennenstuhl of the U.S. District Court for the Western District of Kentucky. If convicted, all three defendants face a mandatory minimum of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and J. Todd Scott Special Agent in Charge of the Louisville Division of the Drug Enforcement Administration (DEA) made the announcement.
The DEA and the Bowling Green/Warren County Drug Task Force are investigating the case.
Assistant U.S. Attorney Mark J. Yurchisin II is prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Thirteen in Akron Charged with Drug Trafficking ConspiracyRead the Press Release
Acting U.S. Attorney Michelle M. Baeppler announced that a federal grand jury returned an eighteen-count superseding indictment charging 13 individuals as part of a drug trafficking conspiracy that sought to distribute approximately 16 kilograms of fentanyl, nearly 10 kilograms of methamphetamine and other controlled substances in the Akron area.
Law enforcement officials arrested nine members of the conspiracy this morning after the superseding indictment was unsealed in federal court. Three members of the conspiracy were arrested in September 2021 and one member was arrested in a separate case.
Named in the indictment are Damien Roger Marcel Stafford, 41, of Akron, Ohio; Chezerae D. Floyd, 44, of Akron, Ohio; Lucian D. Blackwell, 41, of Akron, Ohio; Craig L. Johnstone, 49, of Akron, Ohio; Rausheeda L. Hyshaw, 41, of Akron, Ohio; Antwain D. Stewart, 41, of Akron, Ohio; Ricky Lynn Vaughn, 60, of Akron, Ohio; Clifford E. Stafford, 44, of Akron, Ohio; Dorshaun R. Tucker, 41, of Akron, Ohio; Alexander Prieto, 41, of Cleveland, Ohio; Marian Ripley, 21, of Akron, Ohio; Travis Blankenship, 31, of Charleston, West Virginia and Jessica McClanahan, 31, of Charleston, West Virginia.
Each defendant is charged with conspiracy to possess with intent to distribute fentanyl, methamphetamine, valeryl fentanyl and cocaine. In addition, various members of the conspiracy are also charged with possession with intent to distribute a controlled substance, felon in possession of a firearm, possession of a firearm in furtherance of a drug trafficking offense, maintaining a drug premises and using a communication facility to facilitate a drug offense.
According to the indictment, it is alleged that Defendant Damien Stafford purchased fentanyl, methamphetamine and cocaine from drug suppliers, including Defendant Prieto, in Cleveland and elsewhere. Stafford is accused of using Defendants Hyshaw, Floyd, Blankenship, McClanahan, Clifford Strafford, Tucker, Blackwell and Riley to transport the drugs to be stored at multiple residences in the Akron area. It is alleged that Stafford then used Defendants Vaughn, Johnstone, Floyd, Blackwell and Stewart to distribute the drugs.
As part of the conspiracy, the indictment alleges that the defendants used these residences in Akron as locations to store and distribute their controlled substances. In addition, conspiracy members are accused of using cell phones to communicate and drug “testers” to evaluate the strength and quality of a controlled substance intended for sale.
On September 23, 2021, law enforcement officers with the FBI, ATF, Greater Akron Safe Streets Task Force and Akron Police Department executed search warrants at multiple residences connected to the drug trafficking conspiracy. At one residence, officers encountered Damien Stafford wearing latex gloves and a mask. Officers detained Stafford, entered a bathroom and found multiple bags of various sizes on the floor and inside the toilet. According to court documents, the bags contained powdery white and off-white substances that were later tested and confirmed to contain fentanyl.
In total, law enforcement officials seized approximately 16.6 kilograms of fentanyl, 9.9 kilograms of methamphetamine, one kilogram of valeryl fentanyl, 400 grams of cocaine, one semiautomatic rifle, and four semiautomatic pistols during the execution of the search warrants. Defendants Damien Stafford, Ricky Lynn Vaughn and Rausheeda Hyshaw were also arrested during the execution of the warrants.
If convicted, a defendants’ sentence will be determined by the court after a review of factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ roles in the offenses, and the characteristics of the violations.
In all cases, sentences will not exceed the statutory maximums, and in most cases, will be less than the maximums.
The investigation was conducted by the FBI, ATF and the Akron Police Department. This case is being prosecuted by Assistant United States Attorney Peter E. Daly.
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Texas Woman Charged with Operating Warranty Fraud Scheme Targeting Cisco SystemsRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Takandryia Latrice Cage, 35, formerly of Grand Prairie, TX, was charged by Information with one count of conspiracy to commit mail fraud based on a scheme to defraud Cisco Systems Inc. (“Cisco”), as well as one count of bank fraud and three counts of wire fraud in connection with schemes to defraud lenders by submitting false Payroll Protection Program applications.
The Information alleges that between July 2016 and January 2018, the defendant conspired with Jerel Andre Williams, charged separately, to perpetrate a scheme to defraud Cisco by engaging in a sophisticated warranty fraud scheme. According to the Information, Cage and Williams obtained serial numbers to expensive computer hardware manufactured by Cisco, and then used false email addresses and identities to submit fraudulent warranty claims to Cisco, pretending to own Cisco products that were not working and under warranty. The Information alleges that Cage and Williams provided customer service representatives with descriptions of the non-existent defects that they knew could not be solved by troubleshooting and would require replacement with new products, causing Cisco to ship the replacement products on the expectation that the defective products would be returned. As charged, once the defendant and Williams obtained the Cisco hardware, Williams sold it to a computer equipment reseller without disclosing that it had been obtained by fraud, and then split the profits with the Cage. The conspirators successfully obtained 157 warranty replacement products from Cisco, each with a retail value of between $3,693 and $34,500, which they had shipped to addresses throughout the United States, including addresses in Wynnewood, Pennsylvania; Cherry Hill, New Jersey; Wilmington, Delaware; Las Vegas, Nevada; Henderson, Nevada; La Jolla, California; San Diego, California; Arlington, Texas; Dallas, Texas; and Fort Worth, Texas.
The Information further alleges that Cage independently perpetrated schemes to defraud lenders participating in the Payroll Protection Program (“PPP”), which was a provision of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) that provided with Small Business Association with authorization to forgive loans to small businesses for job retention and certain other expenses. Between June 2020 and June 2021, the defendant submitted six false PPP loan applications to lenders, on which she made numerous false statements regarding businesses she purported to own and operate, including false statements about the number of employees, the wages paid, the payroll taxes paid, the revenues and net profits earned, and the intended use of the PPP loan proceeds. As a result of these six false PPP loan applications, Cage caused lenders to send her over $101,000 in PPP funds, which she then spent on unauthorized purchases for herself.
“Warranties are designed to make consumers whole by replacing faulty products, not for exploitation by scammers looking to turn an illegal profit,” said U.S. Attorney Williams. “Warranty fraud is not a victimless crime, rather, companies which support employment for thousands of workers stand to lose significant sums, as the charges demonstrate here. The defendant also allegedly scammed the U.S. government by defrauding the Paycheck Protection Program, which is intended to help American businesses continue paying their employees in the face of the pandemic. Thieves who defraud these programs are taking advantage of honest business and taxpayers alike.”
“This alleged fraudster demonstrated a keen aptitude for working the system,” said Special Agent in Charge Jacqueline Maguire. “Through this scheme, the funds intended for employees whose jobs were impacted by the pandemic were depleted for nefarious purposes. Whether it’s government coffers, corporate accounts, or someone’s piggybank, the taking of money you aren’t entitled to is illegal. And no matter how clever you think the scheme, the FBI will uncover it and, with our partners, bring you to justice.”
“IRS-Criminal Investigation is proud to join forces with our law enforcement partners to investigate crimes like these and hold the offenders accountable,” said IRS Criminal Investigation Special Agent In Charge Yury Kruty. The charges brought against Cage is a victory for all law-abiding individuals who work hard to make an honest living.”
The defendant faces a maximum sentence of 110 years in prison, a five-year period of supervised release, a $2,000,000 fine, and a $500 special assessment. The defendant will also be required to make full restitution to Cisco and the lenders she defrauded.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division, and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
An Indictment, Information, or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Ten Indicted for Healthcare KickbacksRead the Press Release
Ten people, including two medical doctors, have been indicted in a $300 million healthcare fraud, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
The defendants – who stand accused of accused of conspiracy to commit healthcare fraud, conspiracy to pay and receive healthcare kickbacks, offering or paying illegal kickbacks, and soliciting or receiving illegal kickbacks – were charged in a 26-count indictment filed Wednesday afternoon.
“Anti-kickback laws are designed to ensure that financial considerations do not cloud physicians’ judgement,” said U.S. Attorney Chad Meacham. “The Justice Department is determined to prosecute those flouting our nation’s healthcare fraud laws. Patients – and taxpayers – deserve rigorous enforcement.”
“Illegal kickback schemes corrupt the healthcare system. They cause billions of dollars in losses each year, generate business for dishonest service providers and erode trust in our health care system,” said Dallas FBI Special Agent in Charge Matthew DeSarno. “The FBI will continue to work with our law enforcement partners to expose fraud and protect the public from illegal schemes.”
According to the indictment, the founders of several lab companies, including Unified Laboratory Services, Spectrum Diagnostic Laboratory, and Reliable Labs LLC, allegedly paid kickbacks to induce medical professionals to order medically unnecessary lab tests, which they then billed to Medicare and other federal healthcare programs.
The medical professionals -- including internal medicine specialist Eduardo Canova, family medicine practitioner Jose Maldonado, and nurse practitioner Keith Wichinski – allegedly accepted the bribes and ordered millions of dollars’ worth of tests.
Meanwhile, Unified, Spectrum, and Reliable disguised the kickbacks as legitimate business transactions, including as medical advisor agreement payments, salary offsets, lease payments, and marketing commissions.
The labs, through marketers, allegedly paid doctors hundreds of thousands of dollars for “advisory services” which were never performed in return for lab test referrals. They also allegedly paid portions of the doctors’ staff’s salaries and a portion of their office leases, contingent on the number of lab tests they referred each month. In some instances, lab marketers even made direct payments to the provider’s spouse. (When the labs threatened one provider that payments would cease if he didn’t refer more tests, he immediately increased his lab referrals, averaging approximately 20 to 30 referrals per day.)
Knowing they could disguise additional kickbacks using a provider-ownership model, the founder of Spectrum and Unified, Jeffrey Madison, convinced the co-founders of Reliable, Biby Kurian and Abraham Phillips, to convert Reliable into a physician-owned lab. Reliable offered physicians ownership opportunities only if those physicians referred an adequate number of lab tests. In some cases, they made advance disbursement payment to physicians in an effort to appease the physician and ensure he would not send samples to other labs.
As a result of these kickbacks, laboratories controlled by the defendants were able to submit more than $300 million in billing to federal government healthcare programs. Between 2015 and 2018, Dr. Maldonado alone received more than $400,000 in kickbacks for ordering more than $4 million worth of lab tests and Dr. Canova received more than $300,000 in kickbacks for ordering more than $12 million worth of lab tests.
Defendants indicted are:
• Jeffrey Paul Madison, 56, founder of Unified Laboratory Services and Spectrum Diagnostic Laboratory
• Mark Christopher Boggess, 49, chief operating officer for Spectrum and Unified
• Biby Ancy Kurian, 49, co-founder of Reliable Labs, LLC
• Abraham Phillips, 50, co-founder of Reliable Labs, LLC
• Dr. Jose Roel Maldonado, 48, family medicine doctor based in Laredo
• Dr. Eduardo Carlos Canova, 44, internal medicine specialist based in Laredo
• Keith Allen Wichinski, 50, board-certified nurse practitioner based in San Antonio
• David Michael Lizcano, 56, ]owner of DCLH, a marketing firm engaged by Unified, Spectrum, and Reliable
• Laura Ortiz, 58, sister of David Lizcano and employee at his marketing firm
• Juan David Rojas, 34, owner of Rojas & Associates, another marketing firm engaged by Unified, Spectrum, and Reliable
An indictment is merely an allegation of criminal conduct, not evidence. Defendants are presumed innocent until proven guilty in a court of law.
If convicted, the defendants face up to 55 years or more in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office, the U.S. Department of Health and Human Services’ Office of Investigations, the Defense Criminal Investigative Service, and the Veterans Affairs’ Office of Inspector General conducted the investigation. Assistant U.S. Attorney P.J. Meitl is prosecuting the case.
Task Force to Increase Awareness of Human TraffickingRead the Press Release
SAN ANTONIO – The South Texas Officers and Prosecutors (STOP) Human Trafficking Task Force, a coalition of prosecutors and law enforcement agencies in San Antonio, met this week to review goals for the coming year, announced U.S. Attorney Ashley C. Hoff, San Antonio Mayor Ron Niremberg, San Antonio Police Chief William McManus and BCFS Health and Human Services Human Trafficking Interdiction Division (BCFS-HHS-HTI) Executive Director Chara McMichael.
The STOP Human Trafficking Task Force’s mission is to increase community awareness of all forms of human trafficking, disrupt trafficking organizations, rescue victims and hold traffickers accountable through effective investigation and prosecution. The Task Force also works to expand resources of all area partners to effectively serve survivors of human trafficking. The San Antonio Police Department serves as the lead law enforcement agency and BCFS-HHS-HTI serves as the lead victim services agency.
Task Force members provide specialized training and support for local law enforcement agencies and victim service providers to STOP human traffickers by identifying, arresting, and prosecuting them. Task Force members also provide training to educational and business organizations throughout the San Antonio and South Texas communities to increase awareness and identification of all forms of human trafficking, including adults and children who are exploited for the purposes of sex and labor. Above all, the Task Force strives to prevent the exploitation of vulnerable victims and rescue them from the hands of traffickers.
If you or someone you know is a victim of human trafficking and needs immediate assistance, call 911. If you suspect human trafficking activities, please call the toll-free local human trafficking regional hotline at 1-844-843-6348 or 1-844-UIENDHT (U&I can END Human Trafficking). Trained professionals are ready to provide information and assistance. For additional information, please e-mail [email protected].
The STOP Human Trafficking Task Force, chaired by the U.S. Attorney’s Office, consists of experts dedicated to investigating and prosecuting incidents of human trafficking at both the state and federal levels. In addition to the San Antonio Police Department and BCFS-HHS-HTI, partners include the FBI, Homeland Security Investigations (HSI), Bexar County District Attorney’s Office, Bexar County Sheriff’s Office, Bexar County Juvenile Probation, Texas Attorney General’s Office, Texas Department of Public Safety, Texas Alcohol and Beverage Commission, Texas Rio Grande Legal Aid (TRLA), U.S. Marshals Service and U.S. Attorney’s Office.
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Suburban Chicago Man Pleads Guilty to Federal Charges of Child Pornography and Sexual Conduct with a MinorRead the Press Release
CHICAGO — A suburban Chicago man pleaded guilty in federal court today to charges of child pornography and traveling to engage in sexual conduct with a minor.
JEREMIAH HARRIS, 22, of Naperville, Ill., pleaded guilty to one count of receipt of child pornography and one count of traveling with the intent to engage in illicit sexual conduct. The child pornography charge carries a mandatory minimum sentence of five years in federal prison and a maximum of 20 years, while the travel charge is punishable by up to 30 years. U.S. District Judge Manish S. Shah set sentencing for June 28, 2022, at 10:30 a.m.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The investigation was conducted by the FBI Chicago Child Exploitation and Human Trafficking Task Force, which includes the Cook County Sheriff’s Office, Cook County State’s Attorney’s Office, and Chicago Police Department. The Crystal Lake, Ill., Police Department and FBI Resident Agency in Waco, Texas, provided valuable assistance. The government is represented by Assistant U.S. Attorney Kelly L. Guzman.
The child pornography charge involves sexually explicit photographs and videos that Harris repeatedly requested from a 17-year-old boy in 2020. Harris admitted in a plea agreement that the boy sent the photos and videos of himself to Harris in exchange for $2,000. Harris also admitted in the plea agreement that he requested and received other images of child pornography from two other minor boys, and he attempted to entice one of them to engage in sexual activity.
The travel charge pertains to Harris traveling in 2019 from Dallas, Texas, to Orlando, Fla., to engage in sexually explicit conduct with a 15-year-old boy. Harris admitted in the plea agreement that he directed the boy to meet him in a public bathroom, where Harris sexually assaulted him.
Springfield Man Sentenced to Prison for Trafficking Cocaine and Money LaunderingRead the Press Release
BOSTON – A Springfield man was sentenced Tuesday, Feb. 8, 2022, in federal court in Worcester for his role in a conspiracy to traffic drugs from California to Western Massachusetts and launder the proceeds.
Miguel Betancourt, 54, was sentenced by U.S. District Court Judge Timothy S. Hillman to 42 months in prison and three years of supervised release. On Aug. 18, 2021, Betancourt pleaded guilty to conspiracy to distribute and possess with the intent to distribute cocaine and conspiracy to commit money laundering.
In July, 2016, Betancourt received five kilograms of cocaine from a Mexican drug trafficking organization (DTO) and distributed it in Western Massachusetts. As partial payment for the cocaine, Betancourt engaged in two types of money laundering. First, by providing his source with two vehicles, from the inventory of an auto dealership Betancourt owned, for no payment. Second, Betancourt also helped wire cash from his own drug sales back to the Mexican DTO.
United States Attorney Rachael S. Rollins; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. The Drug Enforcement Administration, San Diego Division, Homeland Security Investigations and the Westfield Police Department assisted in the investigation. Assistant U.S. Attorneys Neil L. Desroches and Steven H. Breslow of Rollins’ Springfield Office prosecuted the case.
Spencer Man Sentenced to Federal Prison for Receipt of Child PornographyRead the Press Release
A Spencer man who possessed child pornography was sentenced February 9, 2022, to 15 years in federal prison.
Anthony Martin, age 30, from Spencer, Iowa, received the prison term after a September 22, 2021, guilty plea to receipt of child pornography. In a plea agreement, Martin admitted to knowingly receiving and attempting to receive visual depictions of minors engaged in sexually explicit conduct. Martin further admitted to receiving and possessing approximately 13 videos containing child pornography and approximately 162 images containing child pornography. Martin was previously convicted in Iowa of Lascivious Acts with a Child.
Martin was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Martin was sentenced to 180 months’ imprisonment. He must also serve a 5-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 Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Martin is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Ron Timmons and investigated by the Iowa Division of Criminal Investigation, the Federal Bureau of Investigation, and the Clay County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4012.
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South Florida Medical Clinic Owner Sentenced to 10 Years in Prison for Orchestrating $42 Million Health Care Fraud ConspiracyRead the Press Release
Miami, Florida – Yesterday, a federal district judge in Miami sentenced Bradley Jason Kantor, 49, of Key Largo, Florida, to 10 years in federal prison for submitting approximately $42 million in fraudulent health care claims to United Healthcare.
From April 2013 to March 2017, Kantor owned and operated Mobile Diagnostic Imaging, Inc. (“MDI”), a medical clinic in Davie, Florida that purported to provide antigen therapy and other allergen immunotherapy services, such as allergy testing and allergy shots, to commercial insurance beneficiaries. Kantor offered and paid kickbacks to co-conspirators to induce them to refer beneficiaries to MDI, so that MDI could bill commercial insurers for services that it never provided. MDI submitted approximately $42 million in false and fraudulent claims to United Healthcare, and United paid MDI more than $12 million in reimbursement for services that beneficiaries never received. Kantor purchased a $3 million home in the Ocean Reef Club in Key Largo, Florida, two Winnebago motor coaches, and a 37’ yacht with the ill-gotten proceeds.
Kantor previously pled guilty to conspiracy to commit health care fraud and wire fraud, and conspiracy to commit money laundering.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI, Miami Field Office, announced the sentence imposed by U.S. District Judge Marcia G. Cooke.
FBI Miami and U.S. Department of Labor Employee Benefits Security Administration investigated this case. The case was prosecuted by Assistant U.S. Attorneys Michael Gilfarb and Michael B. Homer. Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture.
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 21-cr-20243.
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Seven Named in Superseding Indictment Charging Violations of Federal Drug and Firearms LawsRead the Press Release
PITTSBURGH, PA – Seven people from Illinois and Pennsylvania have been indicted by a federal grand jury in Pittsburgh on charges of violating federal drug and firearms laws, United States Attorney Cindy K. Chung announced today.
]The five-count Superseding Indictment, returned on February 1, 2022, and unsealed today named the following defendants:
• Anthony Cook, 53, of Chicago, IL;
• Curtis Diggs, 51, of Westchester, IL;
• Dion Diggs, 55, of Brownsville, PA;
• Byron McCrae, 42, formerly of Monessen, PA;
• Douglas Smith, 39, of Monessen, PA;
• Michael Martin, 41, of Brownsville, PA; and
• Nadia Wilkins, 45, of Chicago, ILAccording to the Superseding Indictment, the defendants conspired to possess with intent to distribute and distribute 5 kilograms or more of cocaine and 28 grams or more of cocaine base from in and around June 2020 to in and around July 2021. McCrae and Cook are also charged with possessing with intent to distribute and distributing 500 grams or more of cocaine, while McCrae is further charged with possessing with intent to distribute 28 grams or more of cocaine base, in the form commonly known as crack, all on March 3, 2021. Also on March 3, 2021, McCrae is charged with possessing a firearm in furtherance of a drug trafficking crime and possessing a firearm and ammunition as a convicted felon.
McCrae faces a minimum sentence of 20 years to a maximum of life in prison, a fine of up to $20,500,000, or both. Cook faces a minimum term of 10 years to a maximum of life in prison, a fine of up to $15,000,000, or both. As to the remaining defendants, the law provides for a minimum sentence of 10 years and a maximum total sentence of life in prison, a fine of $10,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Yvonne Saadi and Jonathan Lusty are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Pennsylvania State Police, and the Perryopolis Police Department conducted the investigation leading to the Superseding Indictment in this case.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Serial Sex Trafficker Sentenced to over 11 Years in PrisonRead the Press Release
BOSTON – A serial sex trafficker who exploited multiple victims over a 15-year period was sentenced today in federal court in Boston on various sex trafficking charges.
Bruce “Arki” Brown, 43, of Dorchester, was sentenced by U.S. District Court Judge Patti B. Saris to 138 months in prison and five years of supervised release. On Nov. 1, 2021, Brown pleaded guilty to sex trafficking of a minor; transportation of a minor for purposes of prostitution; two counts of conspiracy to commit sex trafficking by force, fraud and coercion; obstruction of justice; and witness tampering. Brown has remained in federal custody since his arrest in February 2020.
“For more than 15 years, Brown preyed upon women and profited from his sex trafficking enterprise. His exploitation and violence caused immeasurable harm and trauma,” said United States Attorney Rachael S. Rollins. “Many people assume that this kind of depravity doesn’t exist our communities, but it does. Sex trafficking activity on the local level is a reality – and so is imprisonment. Today’s sentence shows that those who engage in such heinous crimes will be identified, prosecuted and put behind bars. My office and our law enforcement partners will be relentless in our efforts to hold traffickers accountable and bring accountability to their victims.”
“What Bruce Brown did is unconscionable. He sexually exploited vulnerable victims and plied them with promises of a better life and then used violence, and psychological manipulation as a means of control,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Today’s sentence cannot erase the harm inflicted upon his victims, but it keeps Mr. Brown exactly where he belongs—behind bars. The FBI will never stop working to find and help victims of human trafficking, to protect them from further abuse, and to keep their traffickers from hurting anyone else.”
Brown was originally indicted in February 2020. In June 2020, Brown was charged in a superseding indictment with obstruction of justice and witness tampering for his attempt to influence a victim’s testimony related to the charges against him. In July 2020, Brown was charged in a second superseding indictment.
Brown targeted particularly vulnerable and transient victims and manipulated them through tailored psychological techniques to maintain control.
After Brown was charged in February 2020, he attempted to obstruct justice and tamper with his victims’ testimony. He directed co-conspirators to call victims and try to get them to alter or withdraw their testimony against him. Brown dubbed this scheme his “Plan B.”
U.S. Attorney Rollins and FBI SAC Bonavolonta made the announcement today. The Newton Police Department provided valuable assistance in the investigation. Assistant U.S. Attorneys Mackenzie A. Queenin and Mackenzie J. Duane of Rollins’ Civil Rights Enforcement Team prosecuted the case.
If you believe that you or someone you know may be a victim of human trafficking, please contact the National Human Trafficking Resource Center Hotline at 1-888-373-7888, or Text 233733.
Scranton Man Sentenced to 156 Months’ Imprisonment for Child Exploitation OffensesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Robert Alexander Kusma, age 36, of Scranton, Pennsylvania, was sentenced on February 9, 2022, to 156 months’ imprisonment to be followed by a 10-year term of supervised release, by United States District Court Judge Sylvia H. Rambo, for two child exploitation offenses, each involving a different minor victim.
According to United States Attorney John C. Gurganus, during the summer of 2016, Kusma used the internet to entice a 15-year-old female victim into allowing him to come to her home for the purpose of sexual contact. Kusma ultimately traveled to the victim’s home in the York, PA area, where he undressed and fondled her prior to being interrupted in his crime and chased from the premises by a concerned friend.
During the investigation of the above Online Enticement offense, it was discovered that Kusma had engaged in similar conduct a few years earlier. Specifically, in March 2014, Kusma traveled from his residence in Scranton to the Poughkeepsie, NY area for the purpose of engaging in sexual activity with a different 15-year-old female victim whom he had likewise met online. Kusma picked up this victim from a location near her parents’ home, took her to a wooded area and had sexual intercourse with her, violating the federal statute which prohibits Interstate Travel to Engage in Unlawful Sexual Activity with Minors.
Judge Rambo ordered that Kusma comply with the Sex Offender Registration and Notification Act (SORNA).
The case was investigated by the Federal Bureau of Investigation (FBI) – Philadelphia Division and its state and local law enforcement partners in York County, Pennsylvania. Assistant United States Attorney Jeffery St. John prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
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Savannah tire store owner sentenced to prison for trafficking methamphetamineRead the Press Release
SAVANNAH, GA: A Savannah tire store owner has been sentenced to more than 10 years in federal prison after his conviction for distributing methamphetamine.
Reginald Anderson, a/k/a “Red,” 49, of Savannah, was sentenced to 125 months in prison after being found guilty at trial on three counts of Distribution of Methamphetamine, said David H. Estes, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge R. Stan Baker also fined Anderson $5,000 and ordered him to serve three years of supervised release after completion of his prison term. There is no parole in the federal system.
“’Red’ Anderson could have prospered running a legitimate tire business, but instead he tried to inflate his profits by selling poison,” said U.S. Attorney Estes. “He has a sordid criminal history of drugs and violence, and our community is safer with this criminal retread doing hard time.”
As described at trial, Anderson was the owner of Anderson’s Tire Shop, and was indicted after he sold methamphetamine on multiple occasions to informants for the U.S. Drug Enforcement Administration in 2018. Witnesses testified that Anderson had propositioned at least one person for sexual favors in exchange for narcotics, and that the methamphetamine that he was selling was nearly 100 percent pure “ice.” A federal jury convicted him on all counts after a two-day trial.
Anderson has multiple prior criminal convictions for drug trafficking, violence, and illegal possession of firearms.
“This defendant’s methamphetamine trafficking activities posed a significant threat to the quality of life in Savannah and elsewhere,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “‘Meth’ is not only volatile and toxic, but it destroys families, communities and lives. Because of the collective effort between DEA and its law enforcement partners, Reginald Anderson will no longer be able to distribute this toxic drug.”
The case was investigated by the U.S. Drug Enforcement Administration and the U.S. Postal Inspection Service, and prosecuted for the United States by Assistant U.S. Attorney Joshua S. Bearden and Special Assistant U.S. Attorney Darron J. Hubbard.
Rensselaer Man Admits to Distributing Fentanyl PillsRead the Press Release
ALBANY, NEW YORK – Shawn Pondillo, age 26, of Rensselaer, New York, pled guilty today to distributing fentanyl.
The announcement was made by United States Attorney Carla B. Freedman and Acting Special Agent in Charge Timothy Foley, U.S. Drug Enforcement Administration (DEA), New York Division.
As part of his guilty plea, Pondillo admitted that he sold a quantity of “M 30” blue pills containing a mixture of fentanyl to another person on March 1, 2021 in Rensselaer County.
As a result of his conviction, Pondillo faces a maximum sentence of up to 20 years in prison, when he is sentenced by Chief United States District Judge Glenn T. Suddaby on June 9, 2022. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the DEA and the Rensselaer Police Department, and is being prosecuted by Assistant U.S. Attorney Rachel Williams.
Queens Felon Admits to Illegally Possessing Firearm with an Obliterated Serial NumberRead the Press Release
ALBANY, NEW YORK – Shamel Chung, age 35, of Bayside, New York, pled guilty today to unlawful possession of a firearm by a felon and possession of a firearm with an obliterated serial number, announced United States Attorney Carla B. Freedman and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Chung admitted to possessing a firearm he knew had an obliterated serial and to hiding the firearm under a vehicle in an alleyway in Troy, New York, after being involved in a physical altercation nearby. Chung had been convicted of four felonies previously, all of which involved controlled substance offenses, and was on parole at the time he possessed the firearm.
At sentencing, Chung faces up to 10 years in prison, a 3-year term of post-release supervision, and a fine of up to $250,000. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the ATF and the Troy Police Department, and is being prosecuted by Assistant U.S. Attorneys Rachel Williams and Dustin Segovia
Public voice and principal salesperson for notorious videogame piracy group sentenced to 3+ years in prison for conspiracyRead the Press Release
Seattle – The public face of a notorious video game piracy group was sentenced today to 40 months in prison for two federal felonies, announced U.S. Attorney Nick Brown. Gary Bowser, 52, a Canadian national of Santo Domingo, Dominican Republic, pleaded guilty in October 2021 to Conspiracy to Circumvent Technological Measures and to Traffic in Circumvention Devices, and Trafficking in Circumvention Devices. At the sentencing hearing U.S. District Judge Robert S. Lasnik said, “These are serious criminal offenses with real victims and harm to the community.”
“This piracy scheme is estimated to have caused more than $65 million in losses to video game companies,” said U.S. Attorney Nick Brown. “But the damage goes beyond these businesses, harming video game developers and the small, creative studios whose products and hard work is essentially stolen when games are pirated.”
Bowser was a prominent leader of the criminal enterprise that developed and sold illegal devices that hacked popular videogame consoles so they could be used to play unauthorized, or pirated, copies of videogames. The enterprise targeted popular consoles such as the Nintendo Switch, the Nintendo 3DS, the Nintendo Entertainment System Classic Edition, the Sony PlayStation Classic, and the Microsoft Xbox.
According to court documents, the Team Xecuter criminal enterprise is comprised of over a dozen individual members located around the world. These members include developers who exploit vulnerabilities in videogame consoles and design circumvention devices; website designers who create the various websites that promote the enterprise’s devices; suppliers who manufacture the devices; and resellers around the world who sell and distribute the devices. Bowser’s role in the conspiracy was to administer the websites that communicated with customers offering devices for sale.
As part of Team Xecuter, Bowser controlled websites that marketed the group’s products, announced new information about the products, and answered customer questions about the products. Bowser helped create and support online libraries of pirated videogames for its customers, and several of the enterprise’s devices came preloaded with pirated videogames. Even as game console companies announced new security features, Team Xecuter would roll out new devices designed to bypass such security.
In the sentencing memo, prosecutors quoted from a victim impact statement that said, “When video games are illegally copied and when circumvention devices become readily available, the video game industry—and the broader economy—experience a negative ripple effect…. This leads, at a minimum, to fewer incentives to create, and a less vibrant game scene.”
“This is not a victimless crime. The leaders of this multimillion-dollar scheme are responsible for diverting money from creative professionals who have worked hard to provide unique products and experiences,” said Special Agent in Charge (SAC) Robert Hammer, who oversees HSI operations in the Pacific Northwest. “HSI, along with our law enforcement and private sector partners, will continue to pursue those who prove to be enemies of innovation and global commerce.”
“As the voice and public face of these sophisticated cybercriminals for years, Mr. Bowser bears responsibility for stealing millions of dollars in profit and victim losses from the intellectual property of others,” said Donald M. Voiret, Special Agent in Charge of the Seattle Field Office. “He also wasted the efforts of legitimate companies as they attempted to build protections for their products.”
In September 2020, Bowser was arrested abroad and was deported from the Dominican Republic. Bowser has been in federal custody since his arrest. As part of his plea agreement, Bowser has agreed to pay $4.5 million in restitution to Nintendo of America.
Max Louarn, 49, a French national of Avignon, France, Yuanning Chen, 36, a Chinese national of Shenzhen, China, are both charged in the indictment. Neither is currently in federal custody.
This case is being investigated jointly by Homeland Security Investigations (HSI) and the FBI.
This case is being prosecuted by Assistant U.S. Attorney Brian Werner of the Western District of Washington, and Senior Counsel Anand Patel of the Justice Department’s Computer Crime and Intellectual Property Section. The government also recognizes the significant contribution to this case by former Assistant United States Attorney Francis Franze-Nakamura.
Pittsburgh Man Admits He Failed to Register as a Sex OffenderRead the Press Release
PITTSBURGH - A former resident of New Jersey and current resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a charge of failure to register as a sex offender, United States Attorney Cindy K. Chung announced today.
Leon McGirt, also known as “Leon McGirk”, “Leon McGrit” and “Leon McGirle”, age 45, pleaded guilty to one count before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that on March 20, 2012, McGirt pleaded guilty to Criminal Attempt and Aggravated Sexual Assault of a Minor in Essex County, New Jersey and was sentenced on June 4, 2012. As a result of his New Jersey conviction, McGirt is required to register under the Sex Offender Registration and Notification Act (“SORNA”) in any jurisdiction in which he resides. After McGirt was released from prison in New Jersey on December 13, 2018, he traveled in interstate commerce, from the State of New Jersey to the Commonwealth of Pennsylvania, and stayed in Pennsylvania and knowingly failed to register as a sex offender as required by SORNA.
Judge Bissoon scheduled sentencing for June 2, 2022 at 10 a.m. The law provides for a total sentence of not more than ten years in prison, a fine of $250,000.00, 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 permitted McGirt to remain on bond.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
The United States Marshals Service conducted the investigation that led to the prosecution of McGirt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Owner of Cititax Tax Refund Stores Admits Defrauding the IRS out of $7.2 MillionRead the Press Release
PITTSBURGH - A resident of Carpentersville, Illinois, pleaded guilty in federal court to charges of Aiding or Assisting in the Preparation or Filing of False Federal Income Tax Returns, United States Attorney Cindy K. Chung announced today.
Ephrem F. Lijalem, age 48, pleaded guilty to two counts before United States District Judge Marilyn J. Horan.
In connection with the guilty plea, the court was advised Lijalem operated Cititax Tax Refund stores in Pittsburgh, and he and his taxpayers defrauded IRS out of $7.2 million in illegal tax refunds generated by false Schedule C tax returns filed with the IRS. The government represented that tax return preparers at Cititax stores owned by Lijalem in Pittsburgh regularly falsified Schedule C attachments to personal income tax forms for customers with non-existent business, inflated income, and altered expenses in order to maximize the tax refunds for customers.
Judge Horan scheduled sentencing for May 31, 2022 The law provides for a total sentence of six years in prison, a fine of $500,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigation conducted the investigation that led to the prosecution of Ephrem F. Lijalem.
Owner of Blair Pharmacy Sentenced to a Year and a Day in Federal Prison for Providing Illegal Payments to Independent Marketers to Induce Them to Refer Business to His PharmacyRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander today sentenced Matthew Edward Blair, age 48, of Timonium, Maryland, to a year and a day in federal prison, followed by 18 months of supervised release, for payment of illegal remunerations to encourage independent marketers to refer federal health care related business to Blair’s pharmacy. Judge Hollander also ordered Blair to pay restitution of $3,176,470.83.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Christopher Dillard of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service - Mid-Atlantic Field Office; and Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to his guilty plea, beginning in November 2014 and continuing through May 2015, Blair, the owner and operator of a compounding pharmacy called the Blair Pharmacy, paid illegal remunerations to independent marketers to induce them to refer business to Blair Pharmacy.
Members of the United States military and their families receive health care benefits through TRICARE, a federal health care benefits program. Like many other health care benefit programs, TRICARE utilizes a pharmacy benefit manager (“PBM”), specifically, Express Scripts (“ESI”) to administer all pharmacy-related benefits for the TRICARE program. ESI receives, processes and adjudicates all electronically submitted pharmacy benefit claims submitted on behalf of TRICARE beneficiaries in New Jersey.
Blair submitted applications to several PBMs, including ESI, requesting that Blair Pharmacy be accepted into the PBMs’ networks of participating pharmacies. ESI approved Blair’s application and Blair was permitted to bill TRICARE and receive payment for TRICARE beneficiary prescriptions. Blair set up a process by which beneficiary prescriptions were electronically submitted directly to his pharmacy. Blair also set up a process by which prescription and benefit plan data was uploaded electronically through the internet. The uploaded electronic data was processed by the PBMs instantaneously, providing Blair with immediate information about whether a claim he submitted had been approved for payment by the benefit plan or not. Blair linked successful claim reimbursements to a bank account in the name of Blair Pharmacy so Blair Pharmacy could receive all monies paid by health care benefit companies into his bank account.
Blair actively pursued several independent sales marketers to work for him at his pharmacy. In order to increase prescription referrals to his pharmacy, maximize reimbursement amounts and thereby increase profits, Blair sought these independent marketers to solicit and refer prescriptions to his pharmacy. Blair entered into independent contractor arrangements with several sales marketers and arranged to pay the independent marketers a percentage of any reimbursement money he received from health care benefit programs, including TRICARE.
For example, in November 2014, Blair agreed to pay an independent marketer working for Blair as follows “commission will be 50% of gross reimbursement to [Blair Pharmacy] paid bi-weekly.” The agreement required the independent marketer to use Blair Pharmacy exclusively, and to refer all business within his established territory to Blair Pharmacy. Blair induced these referrals to his pharmacy by offering the marketer a 50% percentage payment of any money that Blair received from health care benefit programs, which was the sole compensation to the marketer under the agreement. The independent marketer was not paid unless Blair was successful in obtaining reimbursement from a health care benefit program for a prescription that the marketer referred to Blair. Only then was the marketer paid a percentage of the successful reimbursement. Blair knew it was a violation of the Anti-Kickback Statute to pay an independent contractor a volume and value-based commission for referrals of federal health care program business to his pharmacy.
Blair provided the independent marketer with pre-printed prescription forms which listed the specific ingredients for Blair’s formulations. Blair knew the amount of money that he would receive from TRICARE for each gram of each ingredient that he listed in his formulas. Blair modified the ingredients and amounts of ingredients of his formulations based on the ingredient’s reimbursement value.
Blair Pharmacy received reimbursement from TRICARE for the individual ingredients in his formulas as follows: $4,348.25 for a one month supply of the ingredients in his vitamin formulation; $8,741.26 for a one month supply of the ingredients in his pain cream; $14,365.39 for a one month supply of the ingredients in his migraine cream; and $17,336.30 for a one month supply of the ingredients in his scar cream. After receiving payment from TRICARE for the prescriptions the independent marketer directed to Blair Pharmacy, Blair paid 50% of the reimbursement amount to the marketer.
The independent marketer solicited cream prescriptions from numerous doctors, including military surgeons at Walter Reed, with whom he had direct contact. Blair knew that the marketer was in a position to influence which pharmacy the prescriptions were sent to, and that the marketer would send the prescriptions directly back to Blair’s pharmacy. By paying the marketer 50% of every successfully reimbursed TRICARE claim, Blair incentivized the marketer to refer as many cream prescriptions as possible to Blair’s pharmacy.
As detailed in the plea agreement, the marketer actively pursued and solicited cream prescriptions for Blair from a military doctor, who had no idea about the amount of money that the creams reimbursed for. The marketer took advantage of the military doctor’s grueling work schedule, oftentimes waiting, with a stack of Blair’s pre-printed prescription forms in hand, for the doctor outside of the operating room after a long day of back-to-back surgeries. The marketer directed, sent, and referred all of the pain and scar cream prescriptions directly to Blair’s pharmacy. Neither the doctor, nor the TRICARE beneficiaries for whom the creams were authorized, had an opportunity to choose which pharmacy they wanted to fill the prescription because the prescriptions were submitted directly to Blair.
Many of the TRICARE beneficiaries were not aware a prescription had been written for them until they received a box from Blair Pharmacy on their doorstep. Some of the TRICARE beneficiaries had no idea of the cost to TRICARE of these creams and vitamins that they received in the mail, or they learned about the high cost of the creams and vitamins only after they reviewed their TRICARE Explanation of Benefits letter a month or two later. Some of the TRICARE beneficiaries lodged official complaints and made fraud referrals to TRICARE and ESI. When the military doctor learned of the cost of the creams he had prescribed, he was outraged and immediately stopped authorizing any additional cream prescriptions. The doctor provided notice of the problem to his management and advised TRICARE patients who made complaints about the creams, to send the creams back to the pharmacy.
From November 2014 to May 2015, TRICARE reimbursed Blair a total of $6,352,941.66 based upon claims Blair submitted to TRICARE that were tainted by remuneration payments Blair paid to independent sales contractors. Blair admits that TRICARE would not have approved or reimbursed any claim for compounded ingredients made by Blair Pharmacy, had TRICARE known that Blair had agreed to pay a 1099 independent contractor based on the volume and value-based commission of prescription referrals to Blair Pharmacy.
In addition to the restitution Blair will pay for the financial loss caused to TRICARE, Blair has agreed to be excluded from the TRICARE health benefit program as an Authorized Provider for a term of 25 years.
United States Attorney Erek L. Barron commended the FBI, the Department of Defense Office of Inspector General, and the IRS-CI for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Christine Duey and Paul Riley, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to report fraud, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud.
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Ohio man admits to drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Darrion Dabon Isimemen Ojezua, of Dayton, Ohio, has admitted to a drug charge, United States Attorney William Ihlenfeld announced.
Ojezua, 25, pleaded guilty today to “Distribution of Methamphetamine.” Ojezua admitted to selling methamphetamine in Wetzel County in October 2021.
Ojezua faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Clayton J. Reid is prosecuting the case on behalf of the government. The Marshall County Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Ocean Springs Woman Pleads Guilty to Firearms ConspiracyRead the Press Release
Gulfport, Miss. – An Ocean Springs woman pleaded guilty today to conspiring to possess a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Brad Byerley of the Drug Enforcement Administration.
Mary Matthews (also known as Mary Wells), 20, entered a guilty plea in U.S. District Court in Gulfport. She is scheduled to be sentenced on May 12, 2022, and faces a maximum sentence of 20 years in federal prison.
According to court documents and information presented to the Court, in 2020, the DEA and Gulfport Police Department began investigating a local drug trafficking organization involved in the distribution of oxycodone, marijuana, alprazolam (“Xanax”), methamphetamine, and pressed fentanyl pills. During the investigation, law enforcement learned that various members of the organization, like many drug traffickers, possessed firearms to protect themselves, their drugs, and the proceeds from their drug sales.
Through their investigation, officers discovered evidence that Mary Matthews was a member of the drug trafficking organization and carried a firearm when she dealt. During the conspiracy, she and a co-conspirator repaired her firearm for use in the dealing of drugs.
The DEA and Gulfport Police Department investigated the case.
Assistant U.S. Attorney Jonathan Buckner is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Nurse Pleads Guilty to Tampering with Fentanyl VialsRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that BRYAN WILSON, 39, of Madison, waived his right to be indicted and pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to one count of tampering with a consumer product.
According to court documents and statements made in court, Wilson was employed as a nurse by The Vascular Experts, a Connecticut company that performs outpatient medical procedures. As part of his duties, Wilson was responsible for conducting sedations on patients and he had access to the secure area in his workplace that contained vials of drugs used as anesthetics, including fentanyl. In August and September 2021, Wilson took vials of fentanyl that were intended to be used to formulate infusion for patients. He used a syringe to withdraw the fentanyl from the vials and reinjected saline into the vials so that it would appear as if none of the narcotics were missing.
Judge Shea scheduled sentencing for May 5, 2022, at which time Wilson faces a maximum term of imprisonment of 10 years.
Wilson was released on bond pending sentencing. He has surrendered his nursing license.
This matter is being investigated by the Food and Drug Administration, Office of Criminal Investigations; the DEA’s Hartford Diversion Control Division; and the Connecticut Department of Consumer Protection, Drug Control Division. The case is being prosecuted by Assistant U.S. Attorney Ray Miller.
Nine Members of “Downtown Mafia” Indicted for Cocaine TraffickingRead the Press Release
Damian Williams, United States Attorney for the Southern District of New York, Ricky J. Patel, Special Agent in Charge of Homeland Security Investigations (“HSI”) in New York, and Keechant L. Sewell, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of an indictment today charging QUINCY HILLIARD, a/k/a “Tut,” CURTIS HILLIARD, a/k/a “Curt,” GARY BROWN, a/k/a “Gleme,” TERRENCE TURNER, a/k/a “Storm,” KASIEN ADDERLEY, a/k/a “Kaz,” TIRAN BRANCH, PEDRO RIVERA, a/k/a “Dro,” DERRICK LATIMORE, a/k/a “Derrick Lattimore,” a/k/a “Cone,” and ANTWAN ANDREWS, a/k/a “Antawan Andrews,” a/k/a “Twan,” with participating in a conspiracy to distribute cocaine in New York and New Jersey.
U.S. Attorney Damian Williams said: “As alleged in the Indictment, the defendants distributed vast quantities of cocaine in New York and New Jersey. Thanks to the extraordinary work of our partners at NYPD and HSI, the defendants now face federal charges for their crimes.”
HSI Acting Special Agent in Charge Ricky J. Patel said: “The individuals arrested today were allegedly part of an organization that coordinated a cocaine pipeline to pour directly into the streets of New York City. HSI and the NYPD stand together in the fight to rid our communities of individuals responsible for dangerous narcotics flooding the streets with blatant disregard for the ripple effect that drug addiction has on millions of Americans. Working with our law enforcement partners, HSI will continue to prevent the flow of harmful drugs coming into our neighborhoods.”
NYPD Commissioner Keechant L. Sewell said: “Today’s federal indictment highlights how our NYPD investigators stop at nothing in their work to swiftly arrest anyone accused of distributing illegal narcotics in our city and region. I would like to thank the United States Attorney’s Office in the Southern District of New York, and all of our law enforcement partners, for their outstanding work in this important case.”
As alleged in the Indictment unsealed today in Manhattan federal court and in other court papers and proceedings:
From at least in or about 2020 to in or about February 2022, QUINCY HILLIARD, a/k/a “Tut,” CURTIS HILLIARD, a/k/a “Curt,” GARY BROWN, a/k/a “Gleme,” TERRENCE TURNER, a/k/a “Storm,” KASIEN ADDERLEY, a/k/a “Kaz,” TIRAN BRANCH, PEDRO RIVERA, a/k/a “Dro,” DERRICK LATIMORE, a/k/a “Derrick Lattimore,” a/k/a “Cone,” and ANTWAN ANDREWS, a/k/a “Antawan Andrews,” a/k/a “Twan,” operated a large-scale cocaine trafficking organization. This organization, which its members dubbed the “Downtown Mafia,” distributed wholesale quantities of cocaine in New Jersey and in the New York City area, including Harlem and the Bronx.
* * *
QUINCY HILLIARD, a/k/a “Tut,” 39, CURTIS HILLIARD, a/k/a “Curt,” 44, GARY BROWN, a/k/a “Gleme,” 43, TERRENCE TURNER, a/k/a “Storm,” 43, TIRAN BRANCH, 38, PEDRO RIVERA, a/k/a “Dro,” 38, DERRICK LATIMORE, a/k/a “Derrick Lattimore,” a/k/a “Cone,” 42, and ANTWAN ANDREWS, a/k/a “Antawan Andrews,” a/k/a “Twan,” 36, were arrested today and will be presented before United States Magistrate Judge Debra Freeman. KASIEN ADDERLEY, a/k/a “Kaz,” 39, remains at large. This case is assigned to United States District Judge Colleen McMahon.
All defendants are charged with conspiracy to distribute and possess with intent to distribute five kilograms and more of cocaine and 28 grams and more of cocaine base, which carries a minimum sentence of ten years and a maximum sentence of life in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of a defendant would be determined by the judge.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Mr. Williams praised the outstanding investigative work of the Department of Homeland Security, Homeland Security Investigations, and the New York City Police Department. Mr. Williams also thanked the Drug Enforcement Administration, the Drug Enforcement Administration’s New York – John F. Kennedy Airport Group, the United States Secret Service’s New York Field Office, the United States Marshals Service, United States Customs and Border Protection, the New York State Police, the New York City Department of Investigation, and the New York City Housing Authority for their assistance in the investigation.
The prosecution of this case is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Alexander Li, Andrew Rohrbach, and Ashley Nicolas are in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
New York Man Pleads Guilty to Possessing FentanylRead the Press Release
PITTSBURGH - A resident of New York, NY, pleaded guilty in federal court to a charge of possession with intent to distribute 400 grams or more of fentanyl United States Attorney Cindy K. Chung announced today.
Francis Yamel Garcia, age 39, pleaded guilty to one count before Senior United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that on June 26, 2020, Garcia was found to be in possession of approximately 885 grams of fentanyl during a traffic stop conducted by the Pennsylvania State Police.
Judge Conti scheduled sentencing for June 2, 2022. The law provides for a total sentence of not less than 10 years and up 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.
Assistant United States Attorney Robert S. Schupansky is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and Pennsylvania State Police conducted the investigation leading to the prosecution of Garcia.
New London Woman Charged with Conspiring to Distribute Kilograms of CocaineRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned a superseding indictment charging GRISELLE ORTIZ ARCHILLA, 31, of New London, with conspiracy to distribute and to possess with intent to distribute at least five kilograms of cocaine.
The superseding indictment was returned on February 8. Ortiz Archilla appeared today via videoconference before U.S. Magistrate Judge Robert M. Spector and is released on a $100,000 bond.
The superseding indictment also charges Carlos Antonio Crespo-Febus, 40, of New London, and Steven Collazo, 30, of Groton, with the same offense. Crespo-Febus and Collazo were originally charged by indictment in September 2021.
As alleged in court documents and statements made in court, in April 2021, the U.S. Postal Inspection Service’s Narcotics and Bulk Cash Trafficking Task Force and the Drug Enforcement Administration began investigating a cocaine trafficking operation headed by Crespo-Febus. The investigation revealed that Crespo-Febus was coordinating the shipment of parcels, typically containing two kilograms of cocaine, from U.S. Post Offices in Puerto Rico to various “drop addresses” in New London County. Collazo and Ortiz Archilla picked up parcels from the drop addresses and delivered them to Crespo-Febus at Crespo-Febus’s New London residence. Ortiz Archilla also recruited others into the conspiracy.
It is further alleged that investigators have intercepted and seized more than 12 kilograms of cocaine that were mailed from Puerto Rico to Connecticut, and have identified dozens of other suspicious parcels that likely contained kilogram quantities of cocaine.
Crespo-Febus and Collazo were arrested on September 20, 2021. Crespo-Febus is detained and Collazo is released to home detention on a $100,000 bond.
The charge of conspiracy to distribute and to possess with intent to distribute five kilograms or more of cocaine carries a maximum term of imprisonment of life.
U.S. Attorney Boyle stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the U.S. Postal Inspection Service’s Narcotics and Bulk Cash Trafficking Task Force and the Drug Enforcement Administration, with assistance from the New London and Town of Groton Police Departments. The Task Force includes members from the U.S. Postal Inspection Service, the U.S. Postal Service – Office of the Inspector General, the Connecticut Army National Guard, and the Hartford, New Britain, Meriden and Town of Groton Police Departments. The case is being prosecuted by Assistant U.S. Attorney Konstantin Lantsman.
New Castle County Man Pleads Guilty to Fentanyl DistributionRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced today that a New Castle County man pleaded guilty today to distribution of fentanyl. U.S. District Judge Richard G. Andrews accepted the plea.
According to court documents and statements made in court, Michael Younger, 45, came to the attention of the Drug Enforcement Administration (“DEA”) due to evidence suggesting that Younger was the supplier of fentanyl that caused the overdose death of a person in early January 2021. While under investigation, Younger sold additional fentanyl to a government cooperator on February 4, 2021. During that transaction, Younger told the cooperator that another customer had died of an overdose after ingesting the defendant’s drugs, and, as a result, Younger had to change the stamp he used to brand his fentanyl. The government’s investigation revealed that the other customer did indeed die of an overdose in late January 2021. According to the plea agreement, the defendant is a career offender, meaning that Younger has two prior convictions for serious drug or violent felony offenses.
Younger faces a maximum penalty of twenty years in prison when sentenced on June 23, 2022. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Weiss stated, “The proliferation of fentanyl continues to wreak havoc in Delaware communities. Fortunately, our law enforcement partners are dedicated to removing fentanyl and other illegal drugs from our streets. Through aggressive prosecution, education, and outreach, we can work together to hold drug dealers accountable and keep our communities safe.”
Assistant U.S. Attorney Jennifer K. Welsh is prosecuting the case. The case is being investigated by the DEA together with the New Castle County Police Department.
The United States Attorney’s Office is committed to helping those who suffer from substance abuse. While COVID-19 has made access to drug addiction treatment more difficult for many, it need not remain a barrier. If you need help, drug treatment information is available any time through the federal Substance Abuse and Mental Health Services Administration’s Treatment Referral Routing Service, found online at dpt2.samhsa.gov/treatment/ or by dialing 1.888.545.2600. Don’t let the pandemic stop you from beginning treatment.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 1:22-cr-00004 (RGA).
Money Launderer Sentenced to 84 Months in PrisonRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that VICTOR AHAIWE was sentenced to 84 months in prison today for participating in a multi-million-dollar conspiracy to launder the proceeds of business email compromise frauds targeting businesses and non-profit organizations and romance frauds targeting individual victims. AHAIWE was convicted by a jury in June 2021 of bank fraud conspiracy, money laundering conspiracy, and aggravated identity theft in a trial presided over by U.S. District Judge Denise L. Cote, who also imposed today’s sentence.
U.S. Attorney Damian Williams said: “The defendants in this case were part of a wide-reaching conspiracy to launder over $10 million stolen from businesses and individuals. The sentences imposed on the ten defendants send a message: that this type of activity will be prosecuted and punished to the full extent of the law.”
According to court filings and statements made in court proceedings, including the trial at which AHAIWE was convicted:
From at least in or about March 2018 up to and including at least in or about January 2020, AHAIWE and his coconspirators conspired to launder the proceeds of numerous business email compromise schemes and romance schemes, in which corporate, organizational, and individual victims were fraudulently induced to send over $10 million to bank accounts controlled by members of the conspiracy, in the mistaken belief that those accounts belonged to the intended recipients of the funds. Members of the conspiracy received the victim funds by opening bank accounts in the names of the intended recipients, transferred the funds through additional accounts to hide the origin and fraudulent nature of the proceeds, and ultimately transferred most of those proceeds to foreign bank accounts or withdrew them in cash.
AHAIWE participated in the scheme by stealing the identity of a recently deceased friend and using that identity to open and operate bank accounts to launder a portion of the proceeds from a $500,000 business email compromise fraud against a foreign public agency that provides health insurance and pension benefits. AHAIWE also previously laundered hundreds of thousands of dollars of proceeds from other business email compromise frauds and, in connection with those activities, stole and used the identities of several other individuals. In imposing today’s sentence, Judge Cote also found that AHAIWE engaged in obstruction of justice in connection with his sentencing by submitting fabricated sentencing letters.
AHAIWE was the tenth defendant to be sentenced for participating in the money laundering conspiracy. The nine previously sentenced defendants, each of whom pleaded guilty, received the following sentences:
Defendant
Age
Hometown
Sentence
PRINCE UKO
46
Jonesboro, GA
41 months (prison)
SUNDAY OKORO
41
Jonesboro, GA
41 months (prison)
IKECHUKWU ELENDU
41
San Leandro, CA
41 months (prison)
ARINZE OBIKA
33
Queens, NY
33 months (prison)
BRITT JACKSON
43
Columbus, GA
33 months (prison)
HERMAN BASS
37
Hawthorne, CA
30 months (prison)
JACOB SAGIAO
47
Oxnard, CA
30 months (prison)
MARYLYNN PENEUETA
46
Oxnard, CA
12 months (prison)
JOSHUA FITTEN
25
Hacienda Heights, CA
5 years (probation)
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In addition to the prison sentence, AHAIWE was ordered to pay restitution in the amount of $514,063, as recompense to the victims affected, and to pay forfeiture in the amount of $590,123, reflecting criminal proceeds that he received in connection with his money laundering and identity theft.
Mr. Williams praised the outstanding investigative work of the Secret Service and its Electronic Crimes Task Force, the FBI, CBP, and special agents of the United States Attorney’s Office for the Southern District of New York. The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Jun Xiang, Kevin Mead, and Michael McGinnis are in charge of the prosecution.
Modesto Man Charged with Drug Trafficking and Illegal Firearms PossessionRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Reymundo Jose Mendez, 40, of Modesto, charging him with possession of methamphetamine with intent to distribute, possessing a firearm in furtherance of a drug trafficking crime, and being a felon in possession of firearms, U.S. Attorney Phillip A. Talbert announced.
According to court documents, officers began investigating Mendez for suspected drug sales and firearms possession in December 2021. During a search warrant executed at the Arrow Inn in Modesto on Jan. 25, 2022, officers located two loaded firearms in Mendez’s pants pockets, and another loaded shotgun in his motel room. Officers also located methamphetamine, suspected fentanyl, and two digital scales in the room.
This case is the product of an investigation by Homeland Security Investigations, the Stanislaus County Sheriff’s Office, and the Stanislaus County District Attorney’s Office. Assistant U.S. Attorney Katherine E. Schuh is prosecuting the case.
If convicted of the methamphetamine distribution charge, Mendez faces a maximum statutory penalty of 20 years in prison and a $1 million fine. If convicted of the possession of a firearm during a drug trafficking offense, Mendez faces a mandatory minimum of five years in prison and a maximum of up to life in prison and a fine of up to $250,000. If convicted of being a felon in possession of a firearm, he faces up to 10 years in prison and a fine of up to $250,000. 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.
Michigan man admits to drug and firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Alante Martel Nelson, of Detroit, Michigan, has admitted to drug and firearms charges, United States Attorney William Ihlenfeld announced.
Nelson, 29, pleaded guilty today to one count of “Possession with Intent to Distribute Heroin” and one count of “Unlawful Possession of a Firearm.” Nelson admitted to having heroin in August 2020 in Monongalia County. Nelson, a person prohibited from having firearms because of a prior conviction, also admitted to having a .380 caliber semi-automatic pistol.
Nelson faces up to 30 years of incarceration and a fine of up to $2,000,000 for the drug charge and faces up to 10 years of incarceration and a fine of up to $250,000 for the firearms charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Christopher L. Bauer is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives and the Morgantown Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.