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21 March 2022
Large-Scale Methamphetamine Trafficker Sentenced to 30 Years in Federal PrisonRead the Press Release
A Cedar Rapids man who led a large-scale methamphetamine trafficking organization was sentenced on March 18, 2022, to 30 years in federal prison.
George Patrick Ashby, age 62, from Cedar Rapids, Iowa, received the prison term after a July 16, 2021 guilty plea to one count of conspiracy to distribute a controlled substance.
Evidence disclosed at sentencing showed that, from at least the summer of 2018, and continuing to March 10, 2020, Ashby organized and led a large-scale drug trafficking organization that brought significant amounts of ice methamphetamine from Burlington, Iowa, to the Cedar Rapids area for redistribution. Ashby possessed firearms in connection with this drug distribution, and he provided firearms to other members of the organization. Ashby was responsible for distributing at least 4.5 kilograms of ice methamphetamine.
Ashby was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Ashby was sentenced to 360 months’ imprisonment. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Ashby 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 Attorneys Emily Nydle and Dillan Edwards and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff’s Office; the Cedar Rapids Police Department; the Marion Police Department; the Iowa Division of Narcotics Enforcement; and the Burlington Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-00027.
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Justice Department Honors Fifth Annual Attorney General’s Award for Distinguished Service in Community PolicingRead the Press Release
ALEXANDRIA, Va. – The Justice Department last Thursday announced the recipients of the Fifth Annual Attorney General’s Award for Distinguished Service in Community Policing. This year’s awards recognize the exceptional work of 18 law enforcement officers and deputies from 12 jurisdictions across the country, including two from the Eastern District of Virginia.
This year’s awardees included Norfolk Police Department Detective Jonathan Smith and the late Detective Victor Powell, who was awarded posthumously.
Attorney General Garland announced the award recipients in Atlanta, Georgia. Later, he attended a ceremony for three award recipients from the DeKalb County Police Department.
“The work of law enforcement has always been difficult—but perhaps no more so than in the recent past, as officers have faced a host of significant challenges. The officers and deputies receiving this year’s awards demonstrate how so many go above and beyond, even in the midst of trying circumstances,” he said. “Every day, thousands of people who work in law enforcement forge and maintain strong community ties that are essential for ensuring public safety. The recipients of this award represent quintessential examples of such critical efforts. It is an honor to recognize them.”
“Detectives Jonathan Smith and Victor Powell showed exemplary passion and dedication to the people of EDVA for their work to identify the perpetrator of an unsolved murder from 1980,” said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia. “Thanks to their efforts, this killer was brought to justice and the victims’ family found some measure of peace. It is an honor to work alongside the Norfolk Police Department, and all of our police department partners.”
The Attorney General’s Award recognizes individual state, local, Tribal, and territorial police officers, deputies, and troopers for exceptional efforts in community policing. The awarded officers and deputies have demonstrated active engagement with the community in one of three areas: innovations in community policing, criminal investigations, or field operations. This year, the Department received 185 nominations from 145 agencies, recognizing a total of 347 individual officers, deputies, and troopers. There were 39 states represented in the nomination pool, covering state, local, campus, sheriff, and other agency types.
The work being honored this year reflects numerous examples of law enforcement officers working closely with the community to build trust, solve problems, reduce crime, and improve public safety.
The Department of Justice works closely with national law enforcement stakeholder groups during the award review period, taking advantage of their expertise and experience to determine the recipients in a competitive nomination process. The Department also works closely with its components, utilizing the breadth of knowledge within the Department to ensure a successful program that honors the exceptional service of our nation’s law enforcement officers and deputies.
Complete information on the Fifth Annual Attorney General’s Award for Distinguished Service in Community Policing can be found at https://www.justice.gov/ag/policing-award.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia.
Judge sentences Jefferson County woman on drug and gun chargesRead the Press Release
ST. LOUIS – Kietra R. Studdard, age 44, of Fenton, Missouri appeared before United States District Court Judge Sarah E. Pitlyk on today’s date. Studdard pleaded guilty and was sentenced to 115 months in federal prison for possession with the intent to distribute methamphetamine; possession of pseudoephedrine with intent to manufacture methamphetamine; and being a felon in possession of a firearm. Studdard was previously indicted by a federal grand jury on September 3, 2020.
According to the plea agreement, on May 22, 2019, officers with the Jefferson County Sheriff’s Office were surveilling a known drug house when Studdard arrived in a blue Buick LeSabre. She retrieved several items from the residence and put them in her vehicle. When Studdard left, the officers followed her, eventually stopping her for a series of traffic violations.
When contacted by deputies, Studdard admitted to having a pistol in her purse, and she was arrested after it was determined she was in possession of methamphetamine. A search of the vehicle revealed numerous boxes pseudoephedrine tablets that Studdard admitted would be used to cook methamphetamine.
Studdard is prohibited by law from possessing a weapon due to a previous felony conviction.
This case was investigated by the Jefferson County Sheriff’s Department and was prosecuted by Assistant United States Attorney Zachary Bluestone.
Inmate Charged with Possessing Narcotic DrugRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Torrance Gamble, age 49, an inmate at Federal Corrections Institution Schuylkill, Minersville, Pennsylvania, was charged in a criminal information with possession of a narcotic drug.
According to United States Attorney John C. Gurganus, the information alleges that Gamble possessed buprenorphine, also known as Suboxone, a narcotic controlled substance on December 1, 2021. Federal inmates are not permitted to possess narcotics.
The case was investigated by the FBI and the Bureau of Prisons. Assistant U.S. Attorney Sean A. Camoni is prosecuting the case.
If convicted, the maximum penalty under federal law for this offense is 20 years of 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.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Illegal gambling business operator admits to plotting military equipment theftRead the Press Release
CORPUS CHRISTI, Texas – A 46-year-old Corpus Christi resident has entered a guilty plea to conducting an illegal gambling business and conspiring to steal government property, announced U.S. Attorney Jennifer B. Lowery.
Nathan Nichols admitted that from March 2018 to August 2019, he operated illegal gambling businesses in Corpus Christi. He also pleaded guilty to conspiring to steal sensitive government property from the U.S. Army installation at Ft. Hood in June 2021.
Nichols was the co-owner of Theo's Bar and owner/operator of Lady Luck, both facilities containing illegal gaming devices. The establishments contained sweepstakes games which people play by using computers and monitors rather than casino-style equipment. The games are software-based and function as traditional slot-machine games or “8-liners.” However, the action of the slot-machine reels are simulated on a computer screen rather than on mechanical reels. Those playing the machines place bets before each spin and receive winnings in cash.
In a separate case, Nichols also admitted he conspired with others to steal sensitive U.S. Army property valued at $2,176,000. He had been in contact with one of the persons responsible for the theft and requested pictures of the property before agreeing to buy it for resale. Once he obtained the items, Nichols subsequently listed them for sale on eBay.
Authorities executed a search warrant at Nichols’ residence in July 2021. At that time, they discovered sensitive military equipment including laser range finders, thermal scopes, night vision scopes, night vision goggles and laser aiming devices. All of the property belonged to the U.S. Army.
As part of his guilty pleas, Nichols agreed to forfeit a total of $2,185,218.73 as proceeds from his illegal activity. Sentencing has been set for June 21 before U.S. District Judge Nelva Gonzales Ramos. At that time, Nichols faces up to five years in prison for each conviction.
He has been and will remain in custody pending that hearing.
The FBI conducted the investigation with the assistance of the Corpus Christi Police Department on the gambling case. Homeland Security Investigations conducted the stolen property investigation with the assistance of the U.S. Army Criminal Investigation Division.
Assistant U.S. Attorneys (AUSA) Joel Dunn and Christopher Marin are prosecuting the cases with the assistance of Asset Forfeiture AUSA Yifei Zheng.
Huntington Man Pleads Guilty to Role in Federal Drug ConspiracyRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pleaded guilty today to conspiracy to distribute methamphetamine and fentanyl.
According to the plea agreement and statements made in court, Scott Lee Midkiff, 35, admitted that he participated in the conspiracy from the summer of 2020 to July 2021. During the conspiracy, Midkiff frequently obtained quantities of methamphetamine and fentanyl to distribute to various customers in the Huntington area. Midkiff provided the drugs to customers on consignment and was aware his customers intended to redistribute the drugs. Midkiff also admitted that he participated in arranging drug transactions by steering customers to certain drug dealers when customers would contact Midkiff.
On April 5, 2021, investigators seized over 1.2 pounds of methamphetamine, 130 grams of fentanyl and $84,000 in cash that Midkiff had arranged to be hidden in a vehicle parked in Huntington. When arrest and search warrants were executed in the investigation on July 29, 2021, agents seized an additional 133 grams of fentanyl and $11,600 from a residence Midkiff shared with another individual.
Midkiff faces a mandatory minimum of 10 years and up to life in federal prison when he is sentenced on June 27, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Southern West Virginia TOC-West Task Force. The Southern West Virginia TOC-West Task Force is comprised of officers with the Cabell County Sheriff’s Department, the Hurricane Police Department, and the Marshall University Police Department, with support from the West Virginia State Police, the Drug Enforcement Administration (DEA) and the Violent Crime and Drug Task Force West. The Ohio Highway Patrol, the Kentucky State Police, and the FBI and DEA in Columbus, Ohio also assisted in the investigation.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorneys Joseph F. Adams and Courtney L. Cremeans are handling the prosecution.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00109.
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Hacienda Heights Man Admits Bilking Amazon in $1.3 Million Refund Scam and Will Plead Guilty to Federal Fraud ChargeRead the Press Release
LOS ANGELES – A third-party seller on Amazon.com Inc. has admitted gaming the online retailer’s payment system in a scheme that defrauded the company out of more than $1.3 million, the Justice Department announced today.
Ting Hong Yeung, 41, of Hacienda Heights, was charged with wire fraud in an information filed today in United States District Court. In a plea agreement also filed today, Yeung agreed to plead guilty to the felony offense, which carries a statutory maximum penalty of 20 years in federal prison.
As described in the court documents, Amazon allows third-party sellers to use its online retail platform to advertise items, make sales and communicate with customers. Ordinarily, when an Amazon customer purchases an item listed by a third-party seller, Amazon credits the third-party seller’s internal Amazon account for the amount of that purchase. About every two weeks, Amazon disburses into the seller’s bank account the proceeds of those sales for which the seller has provided proof that the items purchased have been shipped – namely, the shipment tracking numbers.
Yeung operated as an Amazon third-party vendor using business names including “Speedy Checkout,” “Special SaleS” and “California Red Trading Inc.” After enough time passed to allow his businesses to appear to be reputable vendors, Yeung would list expensive merchandise, such as furniture and home décor, at cut-rate prices to drive a spike in sales. However, instead of shipping purchased items to the customers, Yeung provided Amazon with bogus tracking numbers. When customers complained about not receiving their purchases, Yeung delayed customer refund requests long enough to ensure that Amazon would disburse funds into his businesses’ bank accounts. As a result, Yeung collected payment for items that were never shipped and relied on Amazon to issue refunds to his disgruntled customers under its “A-to-z Guarantee.”
In some instances, instead of sending customers the products they ordered, Yeung shipped them cheap crystal ornaments, which served the dual purpose of generating tracking numbers that induced Amazon to disburse customer funds and forestalling customer complaints and demands for refunds. Yeung also used Amazon’s Buyer-Seller Messaging Service to convince customers that their orders were on their way when, in fact, they were not.
On occasion, Yeung provided goods to his customers that he obtained through his own fraudulent purchases from Amazon, which he made using credit cards in the names of other people and fictitious identities. After the goods were delivered to his customers, Yeung requested refunds for the goods from Amazon. Yeung often falsely claimed that he was entitled to a refund because the product was “Different from what was ordered,” and then returned lower-value items rather than the merchandise he had originally ordered. As a result, Yeung received both the refund and the proceeds of the original sale to his own customer.
In his plea agreement, Yeung admitted causing Amazon to suffer approximately $1,302,954 in losses. Yeung has agreed to pay restitution, some of which will be paid with gold and silver bars that investigators seized during a search of his residence last month.
Yeung is expected to make his initial appearance in this case in United States District Court on April 12.
The FBI investigated this matter and received cooperation from Amazon.
Assistant United States Attorney Alexander B. Schwab of the Major Frauds Section is prosecuting the case.
Guatemalan National Sentenced to 27 Years in Federal Prison for Sex Trafficking of a Minor and Related ChargesRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander today sentenced Feliciano de Jesus Diaz-Martinez, a/k/a Alex, age 43, of Owings Mills, Maryland, to 27 years in federal prison, followed by 10 years of supervised release, for sex trafficking of a child, enticement of a minor to engage in prostitution, sex trafficking by force, fraud and coercion, and distribution of controlled substances. Diaz-Martinez, who has been in custody since his indictment on July 25, 2019, was convicted of those charges by a federal jury on November 18, 2021.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James R. Mancuso Homeland Security Investigations (HSI) Baltimore; Chief Melissa R. Hyatt of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to the evidence presented at his nine-day trial, from at least 2016 through May 2019, Diaz-Martinez, a Guatemalan national in the United States illegally, caused at least eight individuals, including a minor, to engage in commercial sex acts for his own financial benefit by means of force, fraud, and coercion. Trial testimony confirmed that Diaz-Martinez knew that Victim 1 was 16 years old when he first caused her to engage in commercial sex acts. Victim 1 continued to work for Diaz-Martinez until she was approximately 18 years old. The evidence proved that nearly all of the victims that Diaz-Martinez caused to engage in commercial sex acts suffered from serious substance abuse disorders, including addictions to heroin, crack cocaine, and Xanax. Diaz-Martinez took half or all of the money earned by the victims working for him, and sold some of the victims narcotics, often at prices significantly higher than he paid to purchase the drugs.
As detailed in trial testimony, Diaz-Martinez maintained a network of friends and associates who paid to engage in commercial sex acts with the victims Diaz-Martinez advertised and made available to them. Diaz-Martinez sent his customers pictures of the victims available for commercial sex and set the prices that customers would pay to engage in sex acts with the victims he controlled. Diaz-Martinez then transported, or caused to be transported, victims to his customers’ homes, or to hotel rooms he rented, to engage in commercial sex acts. The evidence showed that Diaz-Martinez also invited customers to engage in commercial sex acts with victims in his apartment and in a storage unit that he rented.
Witnesses testified that Diaz-Martinez maintained several different accounts in alias names on a social media platform, which he used to recruit and communicate with the victims in order to entice them to work for him and engage in commercial sex acts, including many users he had never met. The jury found that Diaz-Martinez sometimes offered the users he communicated with heroin and crack cocaine, referred to as “boy” and “girl,” in exchange for engaging in commercial sex with his customers. Diaz-Martinez also directed the victims working for him to recruit their friends, many of whom were also addicted to narcotics, to engage in commercial sex for his financial benefit.
Several victims testified that Diaz-Martinez frequently demanded that they engage in sex acts with him, free of charge, and that he retaliated against the victims if he was not personally satisfied with the sexual encounter. Diaz-Martinez also retaliated against victims who violated his rules, failed to earn sufficient money from commercial sex, or otherwise displeased him in a number of ways, including, abandoning them at customers’ homes and on roadsides without their belongings or transportation and withholding drugs from the victims whom he knew to be addicted.
This case was investigated by the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Erek L. Barron commended HSI Baltimore, the Baltimore County Police Department and the Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Mary W. Setzer and P. Michael Cunningham, who prosecuted the case.
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Former Long Beach Police Officer Pleads Guilty to Federal Charge of Distribution of Child PornographyRead the Press Release
LOS ANGELES – A former Long Beach Police officer pleaded guilty today to a federal criminal charge for distributing child pornography, including when he was on duty as a law enforcement officer.
Anthony Brown, 57, of Lakewood, pleaded guilty to one count of distribution of child pornography.
According to his plea agreement, Brown used his smart phone to log into MeWe, an internet-based messaging application, including when he was on duty as a Long Beach Police officer. While logged in, Brown knowingly distributed and possessed child pornography.
Brown admitted in his plea agreement to distributing sexually explicit images of girls in November 2019, March 2020 and April 2020.
From October 2019 through May 2020, Brown also knowingly possessed a sexually explicit image of a girl who appeared to be 11 or 12 years old.
Brown was a Long Beach Police officer for 27 years. He left the force last year after his arrest on state charges of possession and distribution of child pornography. The Los Angeles County District Attorney’s Office dismissed those charges in light of the federal case.
United States District Judge André Birotte Jr. has scheduled a July 25 sentencing hearing, at which time Brown will face a mandatory minimum sentence of five years in federal prison and a statutory maximum sentence of 20 years in federal prison.
Homeland Security Investigations and the Long Beach Police Department investigated this matter.
Assistant United States Attorney Kathrynne N. Seiden of the General Crimes Section is prosecuting this case.
Florida woman sentenced for bankruptcy fraudRead the Press Release
CLARKSBURG, WEST VIRGINIA – Heather Lynn Pratt, of Fort Myers, Florida, was sentenced today to five years of probation for bankruptcy fraud, United States Attorney William Ihlenfeld announced.
Pratt, 32, pleaded guilty in April 2021 to one count of “Fraudulent Concealment of Bankruptcy Assets.” At the time of the offense, Pratt was employed by Emerald Grande, LLC and had access to the finances of the Florida-based company. Emerald Grande was operating two La Quinta Inn & Suites in West Virginia, one in Elkview and the other in Summersville, as well as a commercial property in Charleston known as the Kanawha Landing Property. Emerald Grande was a debtor in a bankruptcy case filed and pending in Clarksburg United States Bankruptcy Court.
Pratt admitted to concealing more than $145,000 she embezzled from the operating account of the LaQuinta Inn & Suites in Summersville from the bankruptcy trustee, when in fact, that money belonged to the debtor, Emerald Grande, LLC.
Pratt was also ordered to pay restitution in the amount of $145,386.93 to the U.S. Bankruptcy Trustee.
Assistant U.S. Attorney Jarod J. Douglas prosecuted the case on behalf of the government. The FBI investigated.
U.S. District Judge Thomas S. Kleeh presided.
Edinburg man sentenced for “catching a case” of sex tourism with minorRead the Press Release
McALLEN, Texas – A 23-year-old Edinburg man has been ordered to federal prison for engaging in illicit sexual conduct with a minor in Mexico, announced U.S. Attorney Jennifer B. Lowery.
Carlos Daniel Uribe-Garza pleaded guilty June 7, 2021, admitting to the crime and that it had resulted in a pregnancy.
Today, U.S. District Judge Randy Crane ordered him to serve a 121-month sentence. At the hearing, the court heard about Uribe-Garza’s repeated phone calls with the victim. During those conversations, he attempted to influence her not to cooperate with law enforcement and instructed her to send letters to the judge retracting her previous statements. Evidence was also presented that indicated Uribe-Garza was emotionally manipulative towards the victim and had associates confront her and her family at their residence. Judge Crane considered comments from the victim’s mother indicating how Uribe-Garza’s conduct was obsessive, manipulative and toxic. After considering all the evidence, the court determined Uribe-Garza engaged in the obstruction of justice.
Judge Crane also heard that Uribe-Garza had previously engaged in another illicit sexual relationship with a 16-year-old minor in 2019, which also resulted in a pregnancy. Uribe-Garza told that girl not to tell anyone of their relationship because he could “catch a case.” The court deemed him a repeat and dangerous sex offender against minors and imposed a sentencing enhancement.
In imposing the prison term, the court noted Uribe-Garza is predatory toward minors. Following his imprisonment, Uribe-Garza will serve five years on supervised release, during which time, he will have to comply with numerous requirements designed to restrict his access to children. He will also be ordered to register as a sex offender.
Uribe-Garza spoke at sentencing and told the court his only regret was attempting to bring the victim into the United States.
Uribe-Garza met the minor victim at her 15th birthday party in Reynosa, Mexico, and then began contacting her via social media. From December 2020 to February 2021, Uribe-Garza pursued a sexual relationship with the victim, traveling from Texas to Mexico on multiple occasions.
She became pregnant that February.
Uribe-Garza attempted to bring the minor into the United States at the Hidalgo Port of Entry on February 24, at which time authorities took him into custody. Uribe-Garza had disguised the victim as a male United States citizen by cutting her hair, dressing her in men’s clothing, and providing her with false documentation.
Uribe-Garza has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection.
Assistant U.S. Attorneys Devin V. Walker and Amy L. Greenbaum prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Durango & Silverton Narrow Gauge Railroad Agrees to Pay Damages for 2018 Fire and Modify Railroad Operations to Reduce Wildfire RiskRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces an agreement with the Durango & Silverton Narrow Gauge Railroad Company and its parent company, American Heritage Railways (together, the “Railroad”), under which the Railroad will pay $20 million to compensate the United States for damages caused by a 2018 fire near Durango, Colorado, and will also modify railroad operations and take other measures to reduce the risk of wildfire ignition.
“The Durango & Silverton Railroad represents an important historic and cultural icon in southwest Colorado,” said United States Attorney Cole Finegan. “We intend for this settlement to enable the Railroad to continue to operate, but in a manner that will avoid causing future catastrophic wildfires. In addition, this agreement ensures fair compensation for the damages caused by the 416 Fire.”
“When finalized, the proposed settlement and subsequent operational changes will help protect southwestern Colorado’s communities, cultural, and natural resources from future wildfires,” said Frank Beum, Regional Forester for the United States Forest Service. “We look forward to continuing our partnership with the Durango and Silverton Narrow Gauge Railroad Company and American Heritage Railways,” he added.
Bureau of Land Management Acting Colorado State Director Stephanie Connolly said, “BLM is committed to investigating all human-caused fires and finding ways to prevent wildfires on public lands. Working with the U.S. Forest Service and the Railroad, this settlement will include an Industrial Fire Restrictions Plan to help reduce the risk of wildfires like the 416 fire from happening again in Colorado.”
The agreement arises from a lawsuit involving the “416 Fire,” a wildland fire that was ignited on June 1, 2018, on the San Juan National Forest near Durango. The 416 Fire burned more than 54,000 acres of federal lands until it was fully suppressed approximately six months later. The fire damaged natural habitat, caused erosion, and caused other natural resource damages on federal lands within the San Juan National Forest. It also threatened private residences, requiring emergency evacuations. The federal agencies, including the U.S. Forest Service and the Bureau of Land Management, that responded to and suppressed the fire incurred significant costs.
An investigation by federal fire investigators concluded that the 416 Fire was caused by particles emitted from a smokestack on a coal-burning steam train engine owned and operated by the Railroad. Private fire investigators, who also investigated the ignition area, reached the same conclusion.
In July 2019, the United States filed a lawsuit against the Railroad in federal district court in the District of Colorado seeking to recover damages for the fire. The United States sued the Railroad relying on a Colorado state statute that requires railroad operators to pay money damages for fires caused by their operations.
After several years of litigation, the United States and the Railroad reached an agreement to resolve the claims. The settlement is set forth in a proposed consent decree. The Court will review the consent decree and determine whether to approve and enter it. Under the terms of the proposed consent decree, the Railroad will pay the government a $15 million lump sum payment within 45 days, and then will pay an additional $5 million, plus interest, over a ten-year period. In addition to these monetary payments, the consent decree will require the Railroad to undertake substantial operational changes over a ten-year term, including:
- The Railroad will comply with an Industrial Fire Restrictions Plan (which is an exhibit to the consent decree, and is publicly available). This Plan places limits on the Railroad’s operations when fire risk is elevated and prohibits operations when fire risk is extreme.
- The Railroad will prepare and submit to the U.S. Forest Service, each year, an Operating and Fire Prevention Plan.
- The Railroad will retain a qualified independent consultant who, each year, will inspect, report on, make recommendations, and audit the Railroad’s fire mitigation and prevention measures.
- The Railroad will hire a full-time, qualified fire management officer, who will provide monthly certification of compliance with the aforementioned plans and reports.
- The Railroad will maintain a minimum of $3 million in wildfire insurance coverage and conduct an annual review to determine the economic feasibility of additional insurance coverage.
- The Railroad will create a self-insured wildfire fund, which will be funded by the Railroad at a rate of $100,000 per year and may be used to pay for costs arising from any wildfire caused by the Railroad.
If approved, these measures will reduce the fire risk associated with the Railroad’s operations. They will also provide the public some minimum insurance against fire-related damages from the Railroad’s operations. Notably, under the proposed consent decree, the Durango & Silverton Narrow Gauge Railroad will no longer operate coal-burning locomotives during periods of elevated fire risk. This change arises from the consent decree’s requirement that the Railroad comply with the Industrial Fire Restrictions Plan. Since the lawsuit was filed, the Durango & Silverton Narrow Gauge Railroad has begun converting its locomotives to oil-based engines, instead of using coal-fired engines.
The Railroad denied, and continues to deny, that it caused the 416 Fire, and the settlement is not an admission of the Railroad’s liability.
Private parties filed a separate lawsuit in Colorado state court against the Railroad seeking damages for claimed harms to their property, lost revenues, and other damages. The United States is not a party to that case, and those private parties’ claims are being resolved separately.
The federal case was handled by Assistant U.S. Attorneys Jacob Licht and Katherine Ross, with assistance from Assistant U.S. Attorneys Nick Deuschle, David Moskowitz, and Andrew Soler.
Cuban guilty of ignoring court orderRead the Press Release
CORPUS CHRISTI, Texas – A Corpus Christi jury has returned a guilty verdict against a 45-year-old citizen of Cuba for failing to appear in court as ordered, announced U.S. Attorney Jennifer B. Lowery.
The federal jury deliberated for approximately 20 minutes following one-day of trial before convicting Noriel Ramos-Garcia as charged.
Ramos-Garcia had been facing charges related to the unlawful transportation of individuals. A U.S. magistrate judge had permitted him release upon positing bond pending further criminal proceedings. As part of his conditions, he was ordered to stay in contact with authorities and attend all court hearings.
However, he did not appear for his court date Jan. 21, 2021.
At trial, a U.S. probation officer testified that in November 2020, Ramos-Garcia ceased all communications with them. Law enforcement was unable to locate him until September 2021.
The jury heard Ramos-Garcia left the United States and traveled to Cuba in November 2020 and returned September 2021. Law enforcement arrested him upon landing in the United States.
The defense attempted to convince the jury that Ramos-Garcia went to Cuba with the intent of delivering medicine for his family members who had been infected with Covid-19. Ramos-Garcia claimed he intended to fly back three days later, but the flights were cancelled. He told the court he did not intend to miss his court date. They did not believe those claims and found him guilty as charged.
U.S. District Judge Nelva Gonzales Ramos presided over the trial and set sentencing for June 15. At that time, Ramos-Garcia faces up to five years of imprisonment and a possible $250,000 maximum fine.
Ramos-Garcia has been and will remain in custody pending that hearing.
The U.S. Marshals Service conducted the investigation. Assistant U.S. Attorney Patrick Overman prosecuted the case.
Court Imposes Restrictions on Credit Repair Company to Protect ConsumersRead the Press Release
The Justice Department and the Federal Trade Commission (FTC) announced that a federal court in Houston, Texas, entered a permanent injunction barring a credit repair company and its CEO from representing that it can repair or improve consumers’ credit scores. The court also entered a preliminary injunction that prohibits the defendants from making large or non-essential expenditures to preserve assets for consumer redress.
In a civil complaint filed March 1 and unsealed on March 14, the Department of Justice alleged that that Alexander V. Miller, 42, of Missouri City, Texas, and his company Turbo Solutions Inc. violated the Credit Repair Organizations Act, the Telemarketing and Consumer Fraud and Abuse Prevention Act, the FTC Act and the FTC’s Telemarketing Sales Rule in connections with defendants’ marketing and sales of credit repair services. On March 4, the court issued a temporary restraining order imposing financial restrictions on defendants, which remained in place through the resolution of the preliminary injunction hearing.
The complaint alleges that the defendants used internet websites and telemarketing to falsely claim that the defendants could improve consumers’ credit scores by removing all negative items from consumers’ credit reports. According to the complaint, the defendants also filed or caused to be filed fake identity theft reports with the FTC. The complaint further alleges that the defendants routinely took prohibited advanced fees for their credit repair services and did not make required disclosures regarding those services. Many consumers allegedly paid defendants a fee ranging from several hundred dollars to $1,500, but did not receive the higher credit scores defendants promised.
“Credit repair scams affect consumers who already are suffering from low credit scores,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Department of Justice will use all tools at its disposal to stop credit repair agencies from engaging in unlawful conduct targeting financially vulnerable consumers.”
“IdentityTheft.gov is a resource for consumers, not scammers,” said Director Samuel Levine of the FTC’s Bureau of Consumer Protection. “Those who abuse this resource by filing fake reports can expect to hear from us.”
The government is represented in the civil matter by Trial Attorneys Marcus Smith and Amy Kaplan, Senior Trial Counsel Stephen Tosini, Senior Litigation Counsel Claude Scott, Assistant Director Lisa Hsiao of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Richard Kincheloe of the U.S. Attorney’s Office for the Southern District of Texas. The FTC is represented by Gregory A. Ashe.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. For more information about the FTC, visit its website at https://www.FTC.gov.
Citrus Heights Man Sentenced to 20 Years in Prison for Sexual Exploitation of a ChildRead the Press Release
Ryan Kent Wheeler, 39, of Citrus Heights, was sentenced today by U.S. District Judge Kimberly J. Mueller to 20 years in prison to be followed by 15 years of supervised release and a $35,000 order of restitution for sexual exploitation of a child, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between November 2019 and February 2020, Wheeler set up hidden cameras in a house he shared with the victim to capture nude images of the victim. Wheeler made screen captured still images from video files and sent those still images into a Kik chat group. Agents obtained a search warrant, and recovered the hidden cameras, digital media that stored the files, and other devices.
This case was the product of an investigation by Homeland Security Investigations and the Placer County District Attorney’s Office. Assistant U.S. Attorney Roger Yang 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Cedar Rapids Methamphetamine Dealer Sentenced to 15 Years in Federal PrisonRead the Press Release
A Cedar Rapids man who intended to distribute methamphetamine and possessed a firearm while doing so was sentenced today to more 15 years in federal prison.
Thomas Charles Mart, age 38, from Cedar Rapids, Iowa, received the prison term after an August 27, 2021 guilty plea to one count of possession with intent to distribute a controlled substance and one count of possession of a firearm in furtherance of a drug trafficking crime.
In a plea agreement, Mart admitted that, on September 24, 2020, he possessed with the intent to distribute over 350 grams of methamphetamine and possessed a revolver in furtherance of his drug trafficking. Mart also admitted that, on October 11, 2020, he fled from officers on his motorcycle and possessed with the intent to distribute over 16 grams of methamphetamine. Mart further admitted that, on April 29, 2021, he possessed with the intent to distribute over 100 grams of methamphetamine.
Mart was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Mart was sentenced to 180 months’ imprisonment. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system. Mart 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 Dillan Edwards and investigated by the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-00029.
Follow us on Twitter @USAO_NDIA.
Casper Man Sentenced to over 12 Years in Prison for Possession of Child Pornography ConvictionRead the Press Release
United States Attorney Bob Murray announced today that JEREMIAH LINCOLN CURRENT, age 39, of Casper, Wyoming, was sentenced for possession of child pornography during a sentencing hearing held on March 8, 2021, before Chief Federal District Court Judge Scott W. Skavdahl. He was sentenced to 151 months’ imprisonment to be followed by 10 years of supervised release. He was further ordered to pay $9,000 in restitution and a $100 special assessment.
Current was arrested on September 23, 2021, in Sterling, Colorado after being indicted by a federal grand jury. According to the evidence, Special Agents with the Wyoming Division of Criminal Investigation interviewed Current in the Natrona County Detention Center after he was arrested pursuant to an unrelated warrant. During the interview, Current told agents that he had several electronic devices containing large amounts of child pornography. Agents subsequently executed search warrants for Current’s residence and recovered numerous devices with large amounts of child pornography.
This crime was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force. The case is being prosecuted by Assistant United States Attorney Timothy J. Forwood.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
Case Number 0:21-cr-00107-SWS
Bridgeport Tax Return Preparer Pleads GuiltyRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, and Joleen D. Simpson, Special Agent in Charge of IRS Criminal Investigation in New England, announced that TORISE BAKER, 38, of Bridgeport, pleaded guilty today in Hartford federal court to a tax fraud offense.
According to court documents and statement made in court, for the 2014 through 2016 tax years, Baker prepared approximately 3,600 federal tax returns for clients through 101 Things 2 Do, LLC, a multi-service business she operated in Bridgeport. Many of these tax returns claimed false deductions, including unreimbursed business expenses, charitable contributions and tax preparation fees.
In April 2016, Baker met with an undercover federal agent posing as a customer. The agent provided Baker with a W-2 for the 2015 tax year, told Baker that he/she did not make any gifts to charity, and offered no information about any other valid deductions. On the tax return that she prepared and filed for the agent, Baker included $5520 in deductions for charitable gifts; $2,105 for parking fees, tolls, and transportation; and $2,660 for uniforms and protective clothing.
In addition, Baker failed to file her own federal tax returns for the 2015 and 2016 tax years.
Baker has agreed to pay $112,956 in restitution to the IRS.
Baker pleaded guilty to one count of aiding and assisting in the preparation and presentation of false and fraudulent income tax returns, an offense that carries a maximum term of imprisonment of three years. She is scheduled to be sentenced by U.S. District Judge Michael P. Shea on June 13. Baker is released on bond pending sentencing.
As a result of Baker’s criminal conduct, many of her clients’ filed tax returns will need to be amended. The amount of Baker’s restitution may be reduced as her clients resolve their own tax liability with the IRS.
This investigation has been conducted by the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
Biloxi Man Sentenced to Life in Prison for Murdering Three Employees of Hinds County BusinessRead the Press Release
Jackson, Miss. – A Biloxi man was sentenced to three life sentences for discharging a firearm during the commission of a robbery that killed three people, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.
Joshua Michael Garcia, 42, was sentenced today in U.S. District Court in Jackson. Garcia was further ordered to pay restitution in the amount of $35,070.40.
According to court documents, Garcia and co-defendant Jamison Layne Townsend went to Bill’s Coin & Jewelry on December 17, 2016, to rob the business by firearm. During the robbery, Garcia shot and killed the owner and two co-workers. He and Townsend emptied the display cases of watches, rings, necklaces, bracelets, coins, and other items. Later that day, Garcia and Townsend entered a pawn shop in Mobile, Alabama, and pawned five items that were stolen from Bill’s earlier that day.
On December 19, 2016, a trooper with the Tennessee Highway Patrol attempted to stop Garcia and Townsend who were traveling in a red Dodge Charger on Interstate 24. A chase ensued and Garcia and Townsend escaped at a high rate of speed. Two days later, Garcia and Townsend were arrested in Geary County, Kansas. Officers searched the Charger and found numerous items that were stolen from Bill’s, including coins, watches, trays of jewelry, and many items that still contained the sales tags from Bill’s. Additionally, four firearms, including a Les Baer. 45 caliber handgun (determined to be the murder weapon by the Mississippi State Crime Laboratory), ammunition, a cell phone, and numerous items of clothing were also recovered from the Charger.
Garcia pleaded guilty on December 15, 2021, to discharging a firearm that resulted in the murder of three persons during the commission of a robbery.
This case was investigated by the Federal Bureau of Investigation and the Jackson Police Department with assistance from Geary County, Kansas, Sherriff’s Department, the Tennessee Highway Patrol, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Mississippi State Crime Laboratory, the United States Marshal’s Service, the Gulfport Police Department, and the Biloxi Police Department.
The case was prosecuted by Deputy Chief Erin Chalk.
Bay Minette Woman Sentenced in Methamphetamine ConspiracyRead the Press Release
MOBILE, AL – A Bay Minette, Alabama, woman was sentenced today to 27 months in prison for his participation in a conspiracy to possess with intent to distribute methamphetamine ice.
According to court documents, Candice Lanette Cox, 42, was identified during an investigation in which investigators used confidential informants to make controlled purchases of methamphetamine ice from her. During the investigation, Cox was confronted by authorities and admitted her involvement. A search warrant was obtained for Cox’s residence. Investigators discovered and seized additional methamphetamine ice and approximately $2,000 in buy money paid to Cox during the undercover controlled purchases of methamphetamine ice. Cox pled guilty to the conspiracy charge in October of 2020.
United States District Court Judge Jeffery Beaverstock imposed the 27-month sentence and further ordered that Cox would also serve five years on supervised release following her imprisonment. As conditions of his supervision, Cox will also undergo testing and treatment for drug and/or alcohol abuse, and she will be subject to a search of his person and premises upon reasonable suspicion. No fine was imposed but the judge ordered that Cox pay $100 in special assessments.The case was investigated by the Mobile County Sheriff’s Office, the Baldwin County Sheriff’s Office, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Gloria Bedwell prosecuted the case on behalf of the United States.
Bakersfield Man Pleads Guilty to Receiving Child PornographyRead the Press Release
John Perry, 64, of Bakersfield, pleaded guilty today to receipt of material involving the sexual exploitation of minors, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in February 2020, Perry received child pornography onto a cellphone. He has a previous conviction for rape of a child in the first degree in Washington state.
This case is the product of an investigation by Homeland Security Investigations. Assistant U.S. Attorneys Laura D. Withers and Brian W. Enos are prosecuting the case.
Perry is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on June 27, 2022. Perry faces a minimum statutory penalty of 15 years in prison and a maximum statutory penalty of 40 years in prison and a $$250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Athens City School Administrator Found Guilty in Virtual Education Fraud SchemeRead the Press Release
Montgomery, Ala. – On March 18, 2022, Athens City Schools administrator, William Richard (“Rick”) Carter, Jr., 46, was convicted for his role in a scheme to defraud the Alabama State Department of Education (ALSDE), announced Acting United States Attorney Alice S. LaCour, FBI Special Agent in Charge Johnnie Sharp, Jr., and Special Agent in Charge Reginald J. France of the U.S. Department of Education Office of Inspector General’s Southeastern Regional Office.
According to court records and evidence presented at trial, Carter, conspired with other school officials to fraudulently enroll students in public virtual schools and then falsely reported those students to the Alabama State Department of Education in order to illegally receive additional education funding. Carter’s co-conspirators include former superintendent of the Athens City Schools district Dr. William L. (“Trey”) Holladay, III; David Webb Tutt, of Uniontown, Alabama; Gregory (“Greg”) Earl Corkren, of Tuscaloosa, Alabama; and former superintendent of the Limestone County School district Thomas Michael Sisk.
During Carter’s four-week trial, the jury heard evidence that he and his co-defendants obtained student identities to use in their scheme from various private schools located across the state—particularly private schools in the Black Belt region of Alabama. The defendants offered the private schools computers, direct payments, and access to online curriculum to persuade them to share their students’ academic records and personal identifying information with the public school districts. Multiple private school parents and former students testified that during the school years that the scheme occurred, 2016-2017 and 2017-2018, they had little to no connection with the public-school districts in which they were supposedly enrolled. The parents continued to pay private school tuition and the students continued to attend the brick-and-mortar private schools each day, receiving instruction from teachers at those private schools.
There was also testimony provided about a meeting with the ALSDE in March of 2016 where the state notified Athens City School officials that private school students were being erroneously listed as public-school enrollees and directed the Athens School officials to correct the problem. However, evidence presented at trial showed that instead of following that guidance, Carter and his co-conspirators took steps to conceal and continue their scheme. For example, they created fake report cards, manufactured false addresses for the students of the private schools who lived outside of Alabama, and submitted falsified course completion reports to the state department of education. When shown the fake report cards and completion reports during the trial, the parents and former students testified that they had never seen them before and did not know any of the teachers listed on them.
The submission of this false documentation allowed payments to continue from Alabama’s Education Trust Fund to the Athens City Schools district and the Limestone County Schools district. Carter and his co-conspirators then received, for their own personal use, portions of the state funding. They skimmed the state money through direct cash payments and payments to third-party contractors owned by the various co-conspirators. During the course of the scheme, the total potential loss was approximately $10 million.
The jury found Carter guilty on one count of conspiracy to commit wire fraud, four counts of wire fraud, and two counts of aggravated identity theft. At some upcoming date, Carter will be sentenced. He faces a maximum sentence of 20 years’ imprisonment, as well as substantial monetary penalties and restitution. He is also facing a mandatory consecutive two-year sentence on each count of aggravated identity theft. Co-defendants William L. Holladay, III, Gregory Earl Corkren, David Webb Tutt, and Thomas Michael Sisk, previously pleaded guilty to conspiracy to defraud the government. Gregory Corkren also pleaded guilty to aggravated identity theft.
“We trust every educator to make teaching our children the top priority,” said Alice S. LaCour, acting United States Attorney for this case. “In this case, Mr. Carter violated that trust and put profit ahead of the well-being of students. I am proud of the work of the law enforcement agents who spent countless hours uncovering the disheartening fraud perpetuated by Mr. Carter and his co-conspirators.”
“Today's verdict is the result of hard investigative work by my office and our partners,” stated FBI Special Agent in Charge Johnnie Sharp. “The FBI will continue to work to hold accountable public officials who fail the citizens of their community by misusing their positions of trust for personal gain.”
“Today’s action shows that this former school official not only knowingly and willfully abused his position of trust for personal gain, but did so at the expense of the educational development of children. That is unacceptable," said USDOE-OIG Special Agent in Charge Reginald J. France. “Deservedly, Mr. Carter will be held accountable for cheating Alabama students and taxpayers."
“Integrity and trust are character traits common to teachers and administrators across Alabama,” stated Alabama State Department of Education Superintendent Dr. Eric G. Mackey. “As much as this case saddens educators everywhere, the State Department of Education is proud to have worked with the U.S Attorney’s Office, U.S. Department of Education Office of Inspector General (OIG), Federal Bureau of Investigation (FBI), and Alabama Attorney General’s Office to bring this fraud to light. When the Board selected me as Superintendent, I made it clear that core tenants of my administration would be integrity and transparency. The U.S. Attorney, FBI, and OIG, like us, are determined to make sure every taxpayer dollar is accounted for and every dollar intended for the classroom is spent on the classroom. We appreciate their hard work and dedication throughout the investigation and adjudication.”
This case was investigated by the Federal Bureau of Investigation (FBI) and the United States Department of Education’s Office of Inspector General, with assistance from the Alabama Attorney General’s Office. Assistant United States Attorneys Jonathan S. Ross, Alice S. LaCour, and Brett J. Talley prosecuted the case.
Armed career criminal sentenced for drug and firearm salesRead the Press Release
ATLANTA –Derrick Guffie, an armed career criminal, has been sentenced to federal prison for illegal drugs and firearm sales. Guffie was involved in nine drug transactions and sold firearms on three occasions.
“Guffie is a violent felon with convictions for manslaughter, aggravated assault, and robbery by force,” said U.S. Attorney Kurt R. Erskine. “This sentence will remove him from the community and sends a strong message that those who promote violence in our communities will face the same fate.”
“ATF is committed to assisting our law enforcement partners in targeting armed drug and firearms traffickers and removing them from our communities” said ATF Assistant Special Agent in Charge Alicia Jones. “Guffie’s status as an armed career criminal highlights the threat he posed to the residents of Atlanta and law enforcement and we are proud to announce that he will be spending a substantial amount of time in prison.”
According to U.S. Attorney Erskine, the charges and other information presented in court: On September 11, 2019, a man was shot in the head in front of Guffie’s driveway in Atlanta, Georgia, in retaliation for the theft of two kilograms of cocaine. ATF then began investigating drug trafficking in the area. During the investigation, Guffie sold methamphetamine [and other drugs] to an undercover federal agent on nine occasions, and illegally sold guns to the agent on three occasions.
On February 16, 2020, Guffie was arrested on state probation charges. However, even after his arrest, Guffie unsuccessfully attempted to coordinate illegal drug and firearm sales from prison.
Darrick Guffie, 46, of Atlanta, Georgia, was sentenced by U.S. District Judge Eleanor Ross, to 15 years and eight months in prison to be followed by five years of supervised release. On September 27, 2021, he pleaded guilty to the offense of possession with intent to distribute methamphetamine and two counts of felon-in-possession of a firearm.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Atlanta Police Department.
Assistant U.S. Attorney Dash A. Cooper prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Armed Bay Minette Methamphetamine Dealer Sentenced to 14 Years in PrisonRead the Press Release
MOBILE, AL – A Bay Minette, Alabama, man was sentenced today to 168 months in prison for his participation in a conspiracy to possess with intent to distribute methamphetamine ice and possession of a firearms in furtherance of the drug trafficking crime.
According to court documents, Von Clay Bennett, Jr., 25, was identified during an investigation in which investigators used confidential informants to make controlled purchases of methamphetamine ice from him. The informants were equipped with audio and video devices to record the transactions with Bennett, which occurred in both Mobile and Baldwin Counties. A search warrant was obtained for Bennett’s residence in Mobile and investigators discovered and seized additional methamphetamine ice and five pistols. Bennett pled guilty to the conspiracy charge and the gun charge in October of 2020.
United States District Court Judge Jeffery Beaverstock imposed the 168-month sentence, consisting of 108 months on the drug charge and 60 months on the gun charge, which will run consecutively. The judge further ordered that Bennett would also serve five years on supervised release following his imprisonment. As conditions of his supervision, Bennett will also undergo testing and treatment for drug and/or alcohol abuse, and he will be subject to a search of his person and premises upon reasonable suspicion. No fine was imposed but the judge ordered that Bennett pay $200 in special assessments. All the firearms used during the commission of the offenses were ordered forfeited to the United States.
The case was investigated by the Mobile County Sheriff’s Office, the Baldwin County Sheriff’s Office, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Gloria Bedwell prosecuted the case on behalf of the United States.
Arizona Developer Agrees to Resolve Long-Running Clean Water Act Enforcement Action for over One Million DollarsRead the Press Release
CHARLESTON, SOUTH CAROLINA — On Friday, March 18, 2022, U.S. District Court Judge David C. Norton of the U.S. District Court for the District of South Carolina approved a consent decree that resolves alleged violations of the Clean Water Act by Defendant, Paul Edward Mashni, and several of his related entities that impacted wetlands on property near the Kiawah River, located on Johns Island, South Carolina. The complaint was brought in 2018 by the U.S. Attorney’s Office for the District of South Carolina, on referral from the U.S. Army Corps of Engineers, Charleston District (Corps).
The Clean Water Act generally requires any person who plans to fill federally protected wetlands to receive a permit from the Corps. The complaint alleged that Mr. Mashni and his associated companies violated the Clean Water Act by filling wetlands without a permit. This case stems from development activities the defendants conducted on land they owned and land nearby that the defendants did not own. During the defendants’ ownership of the Johns Island property at issue, evidence shows that the defendants operated earthmoving equipment through at least 11 acres of the property. Mr. Mashni and the other defendants’ conduct in this case contributed to the destruction and/or significant degradation of wetlands at the site. The consent decree approved today secures a significant penalty and mitigation to resolve the alleged Clean Water Act violations, while ensuring fairness for developers who comply with the Clean Water Act by obtaining a permit from the Corps before undertaking regulated work in wetlands.
Under the consent decree, the defendants are required to pay $525,000 in civil penalties; purchase seventy freshwater wetland restoration or enhancement mitigation credits to offset the environmental impact of their activity; and be subject to a prohibition of certain new activities in waters or wetlands at the property at issue absent pre-clearance from the Corps. In total, the approximate cost of the defendants’ total obligations under the settlement is over $1,000,000.
“This is a substantial penalty,” said U.S. Attorney for the District of South Carolina Corey F. Ellis. “It serves two purposes: to restore the integrity of the waters of the United States and to deter others from polluting those waters.”
Compliance and enforcement are important components of the Corps’ Regulatory program. The Corps’ Charleston District has an active enforcement program throughout the State of South Carolina that is often aided by state and federal agencies, as well as by groups and individuals who report suspected violations. To address violations, the Corps is authorized to prescribe corrective action, impose administrative fines and prescribe removal of unauthorized fill, work or structures.
“The objective of the Clean Water Act is to ‘restore and maintain the chemical, physical, and biological integrity of the Nation’s waters,’” said Travis Hughes, the Regulatory Division Chief of the Corps’ Charleston District. “Because filling and destroying wetlands is not easily undone, the Corps is committed to holding all responsible parties accountable when regulated work in wetlands is undertaken without a permit from the Corps.”
For more information on Charleston District and the Corps’ Regulatory program, visit: https://www.sac.usace.army.mil/Missions/Regulatory/.
This case was handled by Corps counsel James Choate and Jonathan Jellema; Civil Division Chief James Leventis and Assistant U.S. Attorneys Johanna Valenzuela and Sheria Clarke for the District of South Carolina; and Martha Mann and Andrew J. Doyle of the Environmental Defense Section of the Environment and Natural Resources Division of the U.S. Department of Justice.
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Addiction Treatment Facility Operators Sentenced in $112 Million Addiction Treatment Fraud SchemeRead the Press Release
Two brothers who operated multiple South Florida addiction treatment facilities were sentenced to prison Friday for a $112 million addiction treatment fraud scheme that included paying kickbacks to patients through patient recruiters and receiving kickbacks from testing laboratories.
“These substance abuse treatment facility operators, through brazen tactics driven by greed, took advantage of vulnerable patients seeking treatment,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “These sentences demonstrate the department’s unwavering commitment to protecting patients and prosecuting fraudulent substance abuse treatment facilities through our Sober Homes Initiative.”
Jonathan Markovich, 37, and his brother, Daniel Markovich, 33, both of Bal Harbour, were sentenced in the Southern District of Florida to 188 months and 97 months in prison, respectively.
According to court documents and evidence presented at trial, the defendants conspired to unlawfully bill for approximately $112 million of addiction treatment services that were medically unnecessary and/or never provided, which were procured through illegal kickbacks at two addiction treatment facilities, Second Chance Detox LLC, dba Compass Detox (Compass Detox), an inpatient detox and residential facility, and WAR Network LLC (WAR), a related outpatient treatment program. The defendants obtained patients through patient recruiters who offered illegal kickbacks to patients, including free airline tickets, illegal drugs, and cash payments. The defendants shuffled a core group of patients between Compass Detox and WAR in a cycle of admissions and re-admissions to fraudulently bill for as much as possible. Patient recruiters gave patients illegal drugs prior to admission to Compass Detox to ensure admittance for detox, which was the most expensive kind of addiction treatment offered by the defendants’ facilities. In addition, therapy sessions were billed for but not regularly provided or attended, and excessive, medically unnecessary urinalysis drug tests were ordered, billed for, and paid. Compass Detox patients were given a so-called “Comfort Drink” to sedate them, and to keep them coming back. Patients were also given large and potentially harmful amounts of controlled substances, in addition to the “Comfort Drink,” to keep them compliant and docile, and to ensure they stayed at the facility.
“To manipulate and exploit patients seeking help in their most vulnerable state is unacceptable,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “These individuals orchestrated a scheme that sought profits over the well-being of patients, and they will be held accountable for their actions. With the help of our law enforcement partners, the FBI continues to investigate, bring down these criminal enterprises, and protect our citizens.”
After a seven-week trial in November 2021, both defendants were convicted of conspiracy to commit health care fraud and wire fraud. Jonathan Markovich was convicted of eight counts of health care fraud and Daniel Markovich was convicted of two counts of health care fraud. They were also both convicted of conspiracy to pay and receive kickbacks and two counts of paying and receiving kickbacks. Jonathan Markovich was separately convicted of conspiring to commit money laundering, two counts of concealment money laundering, and six counts of laundering at least $10,000 in proceeds of unlawful activities. He was also convicted of two counts of bank fraud related to fraudulently obtaining PPP loans for both Compass Detox and WAR during the COVID-19 pandemic.
The FBI’s Miami Field Office, Department of Health and Human Services, Office of Inspector General, and the Broward County Sherriff’s Office investigated the case.
Senior Litigation Counsel Jim Hayes and Trial Attorney Jamie de Boer of the Criminal Division’s Fraud Section prosecuted the case.
The National Rapid Response Strike Force, Miami Strike Force, and Los Angeles Strike Force lead the Department of Justice’s Sober Homes Initiative, which was announced in the 2020 National Health Care Fraud Takedown to prosecute defendants who exploit vulnerable patients seeking treatment for drug and/or alcohol addiction.
19 March 2022
Omaha Man Sentenced for Distribution of Child PornographyRead the Press Release
United States Attorney Jan Sharp announced that Robert Sebastian, 55, of Omaha, Nebraska, was sentenced on March 18, 2022, in federal court in Omaha for distribution and receipt of child pornography. Chief United States District Judge Robert F. Rossiter, Jr., sentenced Sebastian to 240 months’ imprisonment. There is no parole in the federal prison system. After his release from prison, Sebastian will be on supervised release for life and will be required to register as a sex offender.
In April 2020, members of the FBI Child Exploitation and Human Trafficking Task Force began investigating CyberTipline reports alleging that a Facebook and Yahoo user was sending child pornography to other users. Agents determined that the email addresses and IP addresses connected with the online activity were associated with Sebastian and executed a search warrant at Sebastian’s residence in Omaha. Sebastian eventually admitted to viewing and possessing child pornography. Forensic examinations of Sebastian’s devices showed at least 1,100 images and more than 80 videos of child pornography on the devices.
Sebastian, who sometimes claims the title of “reverend,” has multiple prior convictions in New London, Connecticut for sexual assaults of minors.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Douglas County Sheriff’s Department and the Omaha FBI's Child Exploitation and Human Trafficking Task Force.
Omaha Man Convicted of Attempted Sex Trafficking of a MinorRead the Press Release
United States Attorney Jan Sharp announced that a jury in United States District Court for the District of Nebraska found Hammaduzzaman Syed, of Omaha, Nebraska, guilty of attempted sex trafficking of a minor following a day and a half jury trial. Syed faces a mandatory minimum sentence of 10 years’ imprisonment up to life imprisonment. Chief United States District Judge Robert F. Rossiter, Jr. ordered a Pre-Sentence Investigation and set Syed’s sentencing hearing for July 1, 2022, at 10:30 a.m.
In November 2020, a deputy with the Douglas County Sheriff’s Office posted an advertisement on Skip the Games, a website known to be commonly used for prostitution. On November 17, 2020, Syed responded to the phone number on the advertisement by text message and began communicating with an undercover deputy who informed Syed that they were a 15-year-old female. Syed then arranged to meet who he believed to be a 15-year-old female for a half hour of sex for $100. Syed then traveled to the agreed upon location with condoms and the agreed upon $100 as pursuant to their text message conversation.
This case was investigated by the Douglas County Sheriff’s Office as part of the FBI’s Child Enticement and Human Trafficking Task Force.
Fort Thompson Man Indicted for AssaultRead the Press Release
United States Attorney Dennis Holmes announced that a Fort Thompson, South Dakota, man has been indicted by a federal grand jury for Assault Resulting in Serious Bodily Injury.
Jonathon Coleman, age 31, was indicted on March 8, 2022. He appeared before U.S. Magistrate Judge Veronica L. Duffy on March 18, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on July 5, 2021, in Fort Thompson, South Dakota, Coleman assaulted a man, which resulted in serious bodily injury.
The charge is merely an accusation and Coleman is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs – Office of Justice Services, Crow Creek Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Coleman was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Brandon Man Charged with Attempted Enticement of a MinorRead the Press Release
United States Attorney Dennis R. Holmes announced that a Brandon, South Dakota, man has been indicted by a federal grand jury for Attempted Enticement of a Minor Using the Internet.
Gatlin Wayne Herrera, age 29, was charged by Criminal Complaint on March 17, 2022. He appeared before U.S. Magistrate Judge Veronica L. Duffy on the same, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, life years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between March 7, 2022, and March 16, 2022, Herrera, using his cellular phone, attempted to knowingly persuade, induce, entice, and coerce, an individual, who had not attained the age of 18, namely an undercover law enforcement officer posing as a 15-year-old female, to engage in sexual activity for which Herrera could be charged.
The charge is merely an accusation and Herrera is presumed innocent until and unless proven guilty.
The investigation is being conducted by Homeland Security Investigations, with the assistance of the Internet Crimes Against Children Task Force, the South Dakota Division of Criminal Investigation, the Sioux Falls Police Department, the Minnehaha County Sheriff’s Office, the South Dakota Highway Patrol, the Air Force Office of Special Investigations, and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Herrera was released on bond pending trial which has not been set yet.
18 March 2022
Windham Eye Care Practice and its Owners Pay $192K for Employing "Excluded" IndividualRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, today announced that WINDHAM EYE GROUP, P.C., an ophthalmological medical practice located in Windham, and its owners, DANA WOODS, M.D. and WILLIAM KAUFOLD, M.D., have entered into a civil settlement agreement with the federal and state governments to resolve allegations that they improperly employed an individual who was excluded from all federal healthcare programs.
To resolve their liability, Windham Eye Group, Woods and Kaufold will pay $192,699.
Windham Eye Group employed Michael Vallone as its practice administrator between February 2010 and May 2021. Vallone had previously been convicted in the District of Jersey of health care fraud. As a result of his conviction, he was excluded from all federal health care programs.
When the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG) excludes an individual or entity from federal health care programs, no program payments may be made for items or services furnished by that excluded individual or entity. In September 1999, HHS-OIG issued a Special Advisory Bulletin in order to provide guidance to health care providers who might employ or contract with an excluded individual or entity. In May 2013, HHS-OIG issued an Updated Special Advisor Bulletin containing additional guidance. Both the original and updated Special Advisory Bulletins advised that, in order to avoid potential liability, health care providers should check the List of Excluded Individuals/Entities on the HHS-OIG web site (http://oig.hhs.gov/exclusions).
During the time that Vallone served as the practice administrator for Windham Eye Group, the practice and its owners billed and sought reimbursements from federal healthcare programs, including Medicare, Medicaid, and TRICARE. A portion of the reimbursements that Windham Eye Group and its owners received were used to pay Vallone’s salary and benefits.
This matter was investigated by the Office of Inspector General for the Department of Health and Human Services. The case is being prosecuted by Assistant U.S. Attorney Richard M. Molot and Assistant Attorney General Greggory O’Connell of the Connecticut Office of the Attorney General.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Fraud Task Force at (203) 777-6311.
Upton Man Sentenced for Possession of Child PornographyRead the Press Release
BOSTON – An Upton man was sentenced today in federal court in Worcester for possessing child pornography.
Matthew Stefanelli, 33, was sentenced by U.S. District Court Judge Timothy S. Hillman to 20 months in prison and five years of supervised release. On Dec. 1, 2021, Stefanelli pleaded guilty to one count of possession of child pornography.
In December 2020, a CyberTip report identified Stefanelli as the owner of an account used to store child pornography. On Jan. 6, 2021, a search of Stefanelli’s residence resulted in the seizure of several electronic devices including Stefanelli’s cell phone. A forensic review of the phone revealed approximately 33 image files depicting child pornography, including the child identified in the CyberTip report. Stefanelli stored these images in an encrypted application designed to appear as a calculator. Of those images Stefanelli possessed, 14 were from a known series of exploited children.
United States Attorney Rachael S. Rollins; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; and Upton Police Chief Michael J. Bradley Jr. made the announcement today. Assistant U.S. Attorney Kristen Noto of Rollins’ Worcester Branch Office prosecuted 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 U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
U.S. Attorney Announces Conviction of Chappaqua Man for Gunpoint Robbery of over 100 Kilograms of Cocaine, Smuggling A Firearm and Other Contraband into the Metropolitan Correctional Center; Wife’s Conviction for Her Role Also UnsealedRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced the unsealing today of a four-count superseding information charging DEEJAY WHITE with offenses relating to his participation in a May 29, 2019 gunpoint robbery in the Bronx targeting more than 150 kilograms of cocaine, his participation in a conspiracy to smuggle contraband—including narcotics and a firearm—into the Metropolitan Correctional Center (“MCC”), a federal detention facility, and his possession of that firearm while incarcerated. DEEJAY WHITE pled guilty on July 23, 2021, before U.S. District Judge P. Kevin Castel.
Mr. Williams also announced the unsealing of a five-count information charging DAWNTIANA WHITE, DEEJAY WHITE’s wife, who pled guilty on July 13, 2021 before U.S. District Judge Katherine Polk Failla to conspiracy to distribute narcotics, conspiracy to provide prison contraband, and conspiracy to commit wire fraud. DAWNTIANA WHITE also pled guilty on March 17, 2022 before Judge Failla to a one-count superseding information charging her with perjury.
DEEJAY WHITE is scheduled to be sentenced on May 17, 2022, and DAWNTIANA WHITE is scheduled to be sentenced on June 14, 2022.
U.S. Attorney Damian Williams said: “Deejay White was responsible for a dangerous gunpoint robbery of more than one hundred kilograms of cocaine that left several victims injured. Even after he was arrested and in jail, facing up to a life sentence on those charges, Deejay White continued to commit crimes. Deejay White and his wife, Dawntiana White, placed inmates, staff, and court personnel in grave danger by smuggling drugs and a firearm into a federal detention facility. Individuals who are tempted to defy law and order should be on notice that we will continue working to identify and put an end to their alarming conduct and to hold them accountable.”
According to the Informations unsealed today, court filings, and statements made during earlier court appearances:
In late May 2019, a Bronx-based member of a Puerto Rico-based drug trafficking organization (“DTO”) was expecting a delivery of furniture concealing approximately 176 kilograms of the DTO’s cocaine. DEEJAY WHITE and others learned of the expected shipment and planned a violent robbery of the DTO’s cocaine. On May 29, 2019, DEEJAY WHITE parked outside the Bronx apartment where the DTO’s cocaine was stored while four co-conspirators forced entry into the apartment and held up the ten victims, including four children, at gunpoint. Two victims were pistol-whipped during the robbery and a third sustained serious injuries after jumping out of the apartment’s third-floor window in an attempt to flee to safety. One of the robbers threw a duffel bag containing kilograms of cocaine into DEEJAY WHITE’s car, which then drove off.
DEEJAY WHITE was arrested on November 25, 2019 on charges relating to the robbery and conspiracy to distribute the stolen cocaine, ordered detained, and housed at the MCC in Manhattan. Days after entering the MCC, DEEJAY WHITE began using contraband cellphones to conspire with others—including his wife, DAWNTIANA WHITE—to commit additional crimes. Among other things, DEEJAY WHITE directed DAWNTIANA WHITE to smuggle drugs to DEEJAY WHITE in the MCC, which DAWNTIANA WHITE did on multiple occasions.
In or about January 2020, DEEJAY WHITE conspired with DAWNTIANA WHITE and others to have a firearm (the “Firearm”) and drugs smuggled to DEEJAY WHITE inside the MCC. After they successfully smuggled the Firearm and contraband into the MCC, DEEJAY WHITE confirmed to DAWNTIANA WHITE that he had received the Firearm.
On or about February 26, 2020, Bureau of Prisons (“BOP”) officials discovered a contraband cellphone in DEEJAY WHITE’s cell and transferred him to the Specialized Housing Unit (“SHU”). While in the SHU, DEEJAY WHITE lied to a MCC investigator about his own role in smuggling the Firearm into the MCC and his possession of the Firearm inside the MCC, which led to an extensive lockdown of the MCC while BOP officials searched for the gun and other contraband. Following a search of the MCC, on or about March 5, 2020, the Firearm, which was loaded, was recovered from inside a wall of DEEJAY WHITE’s MCC cell.
On or about July 14, 2021, DAWNTIANA WHITE falsely testified before a Grand Jury in the Southern District of New York about how she obtained the Firearm to smuggle to DEEJAY WHITE inside the MCC.
DEEJAY WHITE, 45, of Chappaqua, New York, pled guilty to conspiracy to commit Hobbs Act robbery, which carries a statutory maximum sentence of 20 years in prison; brandishing a firearm in furtherance of a drug trafficking crime, which carries a statutory maximum sentence of life in prison, and a mandatory minimum sentence of seven years in prison to run consecutively to any other term of imprisonment; being a felon in possession of a firearm, which carries a statutory maximum sentence of 10 years in prison; and conspiracy to receive contraband in prison, which carries a statutory maximum sentence of five years in prison. The maximum potential sentences in DEEJAY WHITE’s case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of DEEJAY WHITE will be determined by the judge.
DAWNTIANA WHITE, 38, of Brooklyn, New York, pled guilty to narcotics conspiracy, which carries a statutory maximum sentence of 20 years in prison; prison contraband conspiracy, which carries a statutory maximum sentence of five years in prison; obstruction of justice, which carries a statutory maximum sentence of 20 years; two counts of wire fraud, each of which carries a statutory maximum sentence of 20 years in prison; and perjury, which carries a statutory maximum sentence of five years in prison. The maximum potential sentences in DAWNTIANA WHITE’s case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of DAWNTIANA WHITE will be determined by the judge.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The prosecutions of DEEJAY WHITE for conspiracy to commit Hobbs Act robbery and brandishing a firearm in furtherance of a drug trafficking crime, and of DAWNTIANA WHITE for narcotics conspiracy and wire fraud, are being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Juliana N. Murray, Ryan B. Finkel, Peter J. Davis, and Kaylan E. Lasky are in charge of the prosecutions. Mr. Williams praised the outstanding investigative work of the New York City Police Department (“NYPD”), the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), the New York Field Division of the Drug Enforcement Administration (“DEA”), the New York Office of the United States Postal Inspection Service, and the New York State Police (“NYSP”) in this investigation.
The prosecutions of DEEJAY WHITE for conspiring to receive contraband in prison and being a felon in possession of a firearm, and of DAWNTIANA WHITE for participating in a prison contraband conspiracy, obstruction of justice, and perjury are being handled by the Office’s Narcotics and Public Corruption Units. Assistant United States Attorneys Juliana N. Murray, Ryan B. Finkel, Peter J. Davis, Kaylan E. Lasky, Aline R. Flodr, Daniel H. Wolf, and Jonathan E. Rebold are in charge of the prosecutions. Mr. Williams praised the outstanding investigative work of the New York Office of the Federal Bureau of Investigation, the Department of Justice Office of the Inspector General New York Field Office, Special Agents from the U.S. Attorney’s Office for the Southern District of New York, the U.S. Customs and Border Protection in New York, the DEA, ATF, NYPD, and NYSP in this investigation.
Two Individuals and Four Companies Indicted for Price Fixing DVDs and Blu-Ray Discs Sold on the Amazon MarketplaceRead the Press Release
A federal grand jury in Knoxville, Tennessee, returned an indictment charging two individuals and four companies with participating in a conspiracy to fix prices of DVDs and Blu-Ray Discs sold on the Amazon Marketplace.
According to the one-count felony indictment filed in the U.S. District Court for the Eastern District of Tennessee, Victor Btesh, of Brooklyn, New York, and Bruce Fish of Hayfield, Minnesota; along with BDF Enterprises Inc., a Minnesota corporation; Michelle’s DVD Funhouse Inc., a New York corporation; MJR Prime LLC, a New York corporation; and Prime Brooklyn LLC, a New York corporation, were charged with conspiring with each other and others to fix prices of DVDs and Blu-Ray Discs sold through storefronts on the Amazon Marketplace. The price-fixing conspiracy was ongoing from at least as early as October 2016 until at least Oct. 29, 2019.
“This indictment – the fifth charge to date in the ongoing investigation – demonstrates our commitment to protecting consumers and prosecuting individuals who conspire to fix prices in online marketplaces,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division.
“Price-fixing conspiracies in online marketplaces harm consumers and will be prosecuted,” said U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee.
“This indictment shows that the FBI is dedicated to protecting American consumers from unfair prices in all areas of the marketplace,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI and our law enforcement partners will continue to investigate conspiracies to fix prices and hinder competition for all.”
“We are gratified to have contributed to this investigation and applaud the exceptional work by the investigative team for both protecting the individual consumer and the deterrence of activities in violation of the Sherman Act,” said Special Agent in Charge Ken Cleevely of the U.S. Postal Service, Office of Inspector General (USPS-OIG). “Along with our law enforcement partners, the USPS OIG will continue to aggressively investigate those who would engage in this type of harmful conduct.”
The Amazon Marketplace is an e-commerce platform owned and operated by Amazon.com Inc. that enables third-party vendors to sell new or used products alongside Amazon’s own offerings.
Four other individuals have been previously charged and pleaded guilty in this ongoing investigation.
A criminal violation of the Sherman Act carries a statutory maximum penalty of 10 years in prison and a $1 million criminal fine for individuals, and a $100 million fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Antitrust Division’s Chicago Office and the U.S. Attorney’s Office in the Eastern District of Tennessee are prosecuting the case, which was investigated with the assistance of the FBI’s New York Field Office and the USPS-OIG’s Contract Fraud Investigations Division.
Anyone with information concerning price fixing or other anticompetitive conduct related to the sale of DVDs, Blu-Rays Discs, or other products sold through Amazon Marketplace should contact the Antitrust Division’s Chicago Office at 312-984-7200, Antitrust Division’s Citizen Complaint Center at 888-647-3258 or www.justice.gov/atr/contact/newcase.html, FBI’s New York Field Office at 212-384-1000, or the USPS-OIG’s Fraud, Waste, & Misconduct Hotline at 888-877-7644.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Downtown Los Angeles Residents Arrested on Complaint Alleging They Fraudulently Obtained $300,000 in COVID-Relief LoansRead the Press Release
LOS ANGELES – Two downtown Los Angeles residents were arrested today on a federal criminal complaint alleging they fraudulently obtained more than $300,000 – and attempted to obtain an additional $1 million – in COVID-relief loans for several companies they claimed to own and operate.
Sean Schoepflin, 42, a.k.a. “Sean Fitzgerald,” and Erika Leon, 44, a.k.a. “Erika Fitzgerald,” are each charged with one count of wire fraud, according to a complaint that was unsealed today. They are expected to make their initial appearances this afternoon in United States District Court.
According to an affidavit filed with the complaint, from April 2020 to October 2021, Schoepflin and Leon made numerous false statements to the United States Small Business Administration to secure more than $300,000 – and attempt to secure an additional $1 million – in Economic Injury Disaster Loans (EIDLs) for their businesses.
Schoepflin and Leon allegedly falsely stated that the business entities they created had several employees and several hundred thousand dollars in revenues, and that they would use the EIDLs for working capital for those businesses. Schoepflin also allegedly falsely stated on loan applications that he had never been convicted of a felony.
In fact, their purported businesses – Capital Adventures Inc., Lady Capital Inc., Digital Army Ltd., and Lady Pictures LLP – had no employees and little to no revenue, they used the EIDLs largely for personal expenses, and Schoepflin had previously been convicted of multiple felonies.
For example, Schoepflin falsely stated in one loan application that Capital Adventures had revenues of $560,000 in the 12-month period from February 1, 2019 to January 31, 2020, the affidavit alleges. In June 2020, when an SBA employee sent an email to Schoepflin requesting Capital Adventures’ business tax return to show proof of the company’s existence as a business entity, Schoepflin allegedly sent an unsigned tax form that stated that Capital Adventures had gross sales or receipts of $625,112 in 2019.
In fact, Capital Adventures did not file an IRS Form 1120 for 2019 until July 2021, after it requested and was denied an increase for its EIDL, according to the affidavit. Furthermore, between February 2018 and April 2020, Capital Adventures’ bank accounts had total deposits of approximately $35,000.
If convicted, the defendants would face a statutory maximum sentence of 20 years in federal prison.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The FBI and the Treasury Inspector General for Tax Administration investigated this matter. The Small Business Administration Office of Inspector General provided substantial assistance with the investigation.
Assistant United States Attorneys David Ryan and Solomon Kim of the Terrorism and Export Crimes Section are prosecuting this case.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April, Congress authorized more than $300 billion in additional PPP funding.
The EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities, and fixed-debt payments.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Three Men Sentenced to Prison Terms for Firing Weapons in Early Evening on Residential Street in Northeast WashingtonRead the Press Release
WASHINGTON – Three men were sentenced today to prison terms for their roles in an early-evening shooting in Northeast Washington on June 12, 2020, in which dozens of shots were fired from handguns and assault rifles, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
The men, who pleaded guilty to charges in November 2021, include Davon Pratt, 23, of Washington, D.C., Jamar Turner, 19, of Washington, D.C., and Quintin Martin, 25, of Glenarden, Maryland A fourth man, Tevon Brent, 28, of Alexandria, Virginia, previously was sentenced for his role in the crime.
Pratt and Turner also pleaded guilty to charges in a second shooting carried out earlier the same day in June 2020, and Pratt pleaded guilty to charges related to an armed robbery in March 2020.
According to the government’s evidence, all four defendants fired or attempted to fire their weapons in the early evening shooting on June 12, 2020. This shooting was captured on surveillance, where multiple pedestrians, including children, are seen running for cover. Pratt and Turner drove to the neighborhood of the 1200 block of Simms Place NE in a 2018 Audi and got out of the vehicle at approximately 6:40 p.m. Pratt was armed with an assault rifle. Turner was armed with a semiautomatic pistol. Both fired their weapons multiple times and fled to the car. Martin also fired a pistol on the street. Brent, meanwhile, retrieved an assault rifle from another car and attempted to fire the weapon.
No one was identified as being injured in this shooting on Simms Place; however two apartments on this block suffered bullet holes in their windows as a result of this shooting. There were approximately 54 shell casings found throughout the 1200 block of Simms Place and around a nearby alley.
Just four hours before this attack, Pratt and Turner carried out another shooting in broad daylight on a nearby street, the 1200 block of Meigs Place NE. According to the government’s evidence, the two drove to the area in a 2017 Infiniti at about 2:30 p.m., pursuing a man in a motor scooter. Turner fired a semi-automatic pistol several times from a passenger window, at close range, causing the man to be flung from his scooter to the ground. He was hospitalized for gunshot wounds to his left arm and left buttock area and continues to have difficulty walking.
Months prior to these shootings, in March 2020, Pratt and others lured two victims to the 2400 block of E Street NE through an online advertisement falsely offering to see a car. They stole a wallet, iWatch, designer purse, cellphones and $6,000 from the victims.
Martin was arrested in June 2020. Pratt and Turner were arrested in October 2020. Bratt was arrested in March 2021.
All four defendants were sentenced by the Honorable Milton C. Lee is the Superior Court of the District of Columbia.
Pratt pleaded guilty to charges of aggravated assault, attempted assault with a dangerous weapon, attempted robbery, and two firearms charges. He was sentenced to a total of 136 months in prison, including 32 months for the shooting on Simms Place.
Turner pleaded guilty to assault with a dangerous weapon, attempted assault with a dangerous weapon and two firearms charges. He was sentenced to total of 66 months in prison, including 18 months for the shooting on Simms Place.
Martin pleaded guilty to one count of attempted assault with a dangerous weapon and a firearms charge for the Simms Place shooting. He was sentenced to 16 months in prison.
Brent pleaded guilty to one count of attempted assault with a dangerous weapon and a firearms charge in the Simms Place shooting. He was previously sentenced to a 24-month prison term.
Following their release from prison, all of the defendants will be placed on three years of supervised release.
In announcing the sentences, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the FBI’s Washington Field Office. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney's Office, including Paralegal Specialist Crystal Waddy. Finally, they commended the work of Assistant U.S. Attorneys Marco Crocetti, Jessica L.D. Ans, and former Assistant U.S. Attorney Amanda Fretto Lingwood, who investigated and prosecuted the case.
Tax Preparation Business Owner Sentenced to Federal Prison for Committing Tax FraudRead the Press Release
SHREVEPORT, La. – Marie Kemp, 58, of Benton, Louisiana, has been sentenced by United States District Judge Elizabeth E. Foote to spend 30 months in prison, followed by 1 year of supervised release, United States Attorney Brandon B. Brown announced. Kemp was ordered to pay a fine in the amount of $50,000 and restitution in the amount of $1,069,609 to the Internal Revenue Service (IRS). In addition, Kemp was permanently enjoined from the preparation of tax returns for anyone other than herself.
Marie Kemp was indicted by a federal grand jury on tax fraud charges in March 2018. She pleaded guilty on October 4, 2021, to making and subscribing a false tax return. Kemp worked in the tax return preparation business for approximately 20 years. In 2008, she opened Marie’s Tax Service with locations in Bossier City, Minden, and Ringgold, Louisiana, and was the sole proprietor.
Marie’s Tax Service prepared and submitted client tax returns electronically to the IRS. Kemp earned over $3 million in gross receipts for fees charged for the preparation and filing of client’s individual tax returns during the tax years 2011 and 2012 from her tax preparation business. Kemp did not register her business as a corporation with the IRS until 2018 and therefore, the business income of her tax preparation business should have flowed into her personal income tax return reportable on Schedule C.
Kemp personally prepared and electronically filed her 2011 and 2012 U.S. Individual Income Tax Returns, Forms 1040, with the IRS and underreported her business income. Kemp reported false figures in total gross receipts for her tax preparation business on Schedule C and losses and income on her Form 1040. These false amounts which she reported on her return were substantially lower than what the actual amounts were. Kemp’s 2012 tax return did not include a Schedule C for her tax preparation services business and false amounts were reported on Form 1040.
According to evidence presented in court, Kemp only reported taxable income in the amount of $1,819 for tax year 2011, when in truth and in fact, her taxable income was $1,604,208. For the tax year 2012, Kemp did not report any income from her tax preparation business, when in fact she knew that her taxable income should have been $1,632,795. Because of her false reporting, Kemp owes taxes for years 2011 and 2012 in the amount of $1,069,609.
"Tax season is upon us, and this case should be a strong reminder that all citizens are subject to tax laws and should abide by them,” said U.S. Attorney Brandon B. Brown. “Whether you are a paid tax preparer or one who files your own taxes, we must all adhere to the tax laws of the United States. This office will continue to work with the IRS to deter this type of criminal activity in the Western District of Louisiana.”
“Today's sentencing of Marie Kemp again emphasizes the Internal Revenue Service and U.S. Attorney’s office will continue their aggressive pursuit of those who use fraudulent methods in an attempt to corrupt our nation's tax system,” said James E. Dorsey, IRS Criminal Investigation Special Agent in Charge, Atlanta Field Office. “Honest taxpayers have been reassured today that no one is above the law--especially when the integrity of tax administration is at stake.”
This case was investigated by the IRS – Criminal Investigation and was prosecuted by Assistant U.S. Attorneys Mary J. Mudrick and Mike Shannon.
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Syracuse Man Sentenced to 87 Months for Unlawfully Possessing and Selling Firearms and AmmunitionRead the Press Release
SYRACUSE, NEW YORK – Jovaun Clark, age 45, of Syracuse, was sentenced yesterday to serve 87-months in federal prison for possessing unregistered machine guns and short-barreled rifles, possessing firearms and ammunition while a convicted felon, and selling firearms and ammunition to a convicted felon, announced United States Attorney Carla B. Freedman, John B. DeVito, Special Agent in Charge of the New York Field Division of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Chief Kenton Buckner, City of Syracuse Police Department, and Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division.
As part of his guilty plea, Clark admitted to selling seven (7) firearms and numerous rounds of ammunition in an undercover enforcement operation in January 2019. Five (5) of the firearms were “ghost guns” bearing no serial number, two (2) were handguns that had been modified to operate as machine guns, and two (2) were illegal short-barreled rifles. None of the machine guns and short-barreled rifles were registered to the defendant as required by federal law. In 1999, the defendant was convicted in Onondaga County Court of Criminal Possession of a Controlled Substance in the Third Degree, a felony offense.
United States District Judge David N. Hurd further imposed a 3-year term of supervised release, which will start after Clark is released from prison.
This case was investigated by United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Syracuse Police Department (Intelligence Section), and the U.S. Drug Enforcement Administration (DEA), and was prosecuted by Assistant U.S. Attorneys Thomas Sutcliffe and Richard Southwick.
This prosecution was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Suspended Attorney Sentenced for Visa FraudRead the Press Release
NEW BERN, N.C. – A Wilmington woman was sentenced today by United States District Judge Louise W. Flanagan to 12 months and one day and two years of supervised release for Fraud in Connection with Visas, Permits, and other Documents.
According to court documents and other information presented in court, Roydera Hackworth, 63, was an attorney licensed to practice in North Carolina and in 2012 was suspended by the North Carolina State Bar (NCSB) from practicing law. In 2014, the Board of Immigration Appeals suspended her from practicing in immigration matters before the Executive Office for Immigration Review (i.e., the Board of Immigration Appeals and the immigration courts) and the Department of Homeland Security (DHS), United States Citizenship and Immigration Services (USCIS).
In 2019, evidence based on information DHS Disciplinary Counsel discovered in USCIS records disclosed that Hackworth violated her suspension and continued to practice, prepare, and submit Form G-28s (Notice of Entry of Appearance as Attorney or Accredited Representative), petitions, and applications with USCIS on behalf of client petitioners and applicants for immigration benefits.
Homeland Security Investigations (HSI), and USCIS Fraud Detection and National Security (FDNS) reviewed documents and interviewed persons that Hackworth “represented” which revealed that Hackworth impersonated another licensed attorney, submitted various immigration related documents which she signed under penalty of perjury representing that she was the other attorney, and averred that she was not suspended and was in fact authorized to practice law.
The review by HSI and FDNS revealed that between 6 and 24 clients were represented by Hackworth with no knowledge that Hackworth was submitting their immigration petitions and application under the name of the other attorney.
The DHS Disciplinary Counsel said: “Hackworth’s disregard of the Board of Immigration Appeals suspension order caused harm to her clients and to the immigration system. Her unscrupulous behavior required further action to protect the public and the immigration system. We are thankful the U.S. Attorney’s Office took the information we discovered and prosecuted Hackworth.”
Complaints regarding immigration attorneys appearing before DHS can be sent to [email protected] or for attorneys appearing before the immigration courts or the Board of Immigration Appeals to [email protected].
“Hackworth not only violated the oath of her profession and the laws of the US immigration system, but she also violated her client’s trust when she fraudulently represented them,” said Special Agent in Charge Ronnie Martinez, who oversees HSI operations in North Carolina and South Carolina. “Preventing the exploitation of people and protecting the integrity of the US immigration system are hallmarks of HSI’s mission.”
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement. HSI and USCIS FDNS conducted the investigation. Assistant U.S. Attorney Sebastian Kielmanovich prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:21-CR-93-FL.
Stroud Township Man Sentenced to 24 Months’ Imprisonment for Heroin and Fentanyl DistributionRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Dimitris Smith, Jr., age 43, of Stroud Township, Pennsylvania, was sentenced yesterday to 24 months’ imprisonment by United States District Court Judge Robert D. Mariani for distributing heroin and fentanyl.
According to United States Attorney John C. Gurganus, on July 3, 2018, Smith distributed fentanyl and heroin to a confidential informant working with law enforcement in Stroud Township, Pennsylvania. The investigation originated with a 2017 anonymous tip to the Pennsylvania State Police concerning drug trafficking in Monroe County, Pennsylvania.
The case was investigated by the FBI, and the Pennsylvania State Police. Assistant U.S. Attorney Todd K. Hinkley is prosecuting the case.
This case was part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case also was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Statement of U.S. Attorney Christopher R. Kavanaugh on Today’s Guilty Plea of Former Rocky Mount Police Officer Jacob FrackerRead the Press Release
CHARLOTTESVILLE, Va. – United States Attorney Christopher R. Kavanaugh of the Western District of Virginia released the following statement today following the guilty plea of former Rocky Mount, Virginia Police Officer Jacob Fracker:
“On the morning of January 6, 2021, two off-duty police officers with the Rocky Mount Police Department traveled from the Western District of Virginia to Washington, D.C., where they donned gas masks and sought to stop the joint session of the U.S. Congress in the process of counting electoral votes related to the presidential election, a necessary precondition to the peaceful transfer of power. Today, one of those police officers pled guilty to a felony conspiracy charge and accepted responsibility in United States District Court in Washington, D.C. I am grateful for the tireless work of the Assistant United States Attorneys and the agents of the Federal Bureau of Investigation’s Washington and Richmond Field Offices who investigated and prosecuted this case and obtained this just result.”
South Florida Fentanyl and Methamphetamine Dealer Sentenced to over 31 Years in Federal PrisonRead the Press Release
Miami, Florida – Today, U.S. District Judge Rodney Smith sentenced 40-year-old Antony Junior Harris, a prolific drug dealer living in Boynton Beach, Florida to 380 months in federal prison, followed by 10 years of supervised release. The sentence comes after a federal jury sitting in Fort Lauderdale found Harris guilty of attempting to, and conspiring to, possess with the intent to distribute over 400 grams of fentanyl and 500 grams of methamphetamine.
South Florida Law enforcement officers arrested Harris in July 2020, after the Palm Beach County Sheriff’s Office Narcotics Interdiction Unit seized about two kilograms of fentanyl and four kilograms of methamphetamine in a mail package that was on its way to Harris. Federal prosecutors introduced evidence at trial showing that Harris was obtaining multiple kilograms of fentanyl and methamphetamine via FedEx and UPS from California. The parcels were shipped to the addresses of Harris’ associates. Harris obtained the narcotics from his associates and then distributed the drugs to street-level dealers operating in and around Palm Beach County.
Prior to committing these crimes, Harris had served 38 months in prison for drug trafficking. Harris was on federal supervised release when he committed some of the offenses here.
The following co-conspirators of Harris have been convicted and sentenced in this case: David Andrew Romario Chin pled guilty to the narcotics offenses and was sentenced to 151 months in prison. Marcello Marquise Jeter pled guilty to the narcotics offenses and was sentenced to 186 months in federal prison. Ryan Tyler Khan pled guilty to the narcotics offenses and was sentenced to 151 months in federal prison.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida; Deanne L. Reuter, Special Agent in Charge, Drug Enforcement Administration, Miami Field Office; Christopher Robinson, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division; and Sheriff Ric Bradshaw, Palm Beach County Sheriff’s Office (PBSO), made the announcement.
DEA Miami, ATF Miami, and PBSO investigated this case. Assistant U.S. Attorneys Rinku Tribuiani and Brian Ralston prosecuted this case. Assistant U.S. Attorney William T. Zloch handled the asset forfeiture aspects of the case.
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 20-cr-80088.
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South Bend Man Sentenced to 110 Months in PrisonRead the Press Release
SOUTH BEND – Te’Ron Reid, 41 years old, of South Bend, Indiana, was sentenced by United States District Court Judge Damon R. Leichty on his plea of guilty to possessing with intent to distribute over 50 grams of methamphetamine, announced United States Attorney Clifford D. Johnson.
Reid was sentenced to 110 months in prison followed by 4 years of supervised release.
According to documents in the case, in September 2020, Reid was on home detention for a different sentence when law enforcement searched his residence. In Reid’s home, officers found over 100 grams of methamphetamine, a drug ledger, and a loaded firearm.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the South Bend Police Department and St. Joseph County Community Corrections. The case was prosecuted by Assistant United States Attorney Joel Gabrielse.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Soccer coach ordered to prison for producing child pornographyRead the Press Release
McALLEN, Texas – A former McAllen youth league coach illegally residing in Pharr has been sent to federal prison for sexual exploitation of children, announced U.S. Attorney Jennifer B. Lowery.
Oscar Hinojosa pleaded guilty Dec. 1, 2021.
Today, U.S. District Judge Alvarez sentenced Hinojosa to 210 months in federal prison. At the hearing, the court heard additional information including a victim letter detailing the impact this case on the minor child involved. In handing down the prison terms, the court noted the soccer coach was in a position of trust which he abused by grooming the child as well as her mother. Hinojosa will serve 10 years on supervised release following completion of his prison term, during which time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. Hinojosa will also be ordered to register as a sex offender.
From March 2020 through June 2021, Hinojosa communicated and cultivated a relationship with a 15-year-old minor.
Hinojosa was the victim’s soccer coach. Over time, Hinojosa told her he loved her and expressed his sexual desire for her. During their communications, Hinojosa instructed the minor victim to send a sexually-explicit photo of her genitalia in a specific pose. She ultimately did as requested on this occasion and others.
While communicating with this victim, Hinojosa also attempted to cultivate a similar relationship to another one of the minor females on his soccer team. While he was unsuccessful, he expressed his love for her as well.
Hinojosa is not a citizen of the United States and does not have legal status to reside here.
He has been and will remain in custody pending that hearing.
Mission Police Department and Homeland Security Investigations conducted the investigation.
Assistant U.S. Attorney Colton T. Turner prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Seven-Time Felon Who Possessed Firearms and Crack Sentenced to a Decade in Federal PrisonRead the Press Release
A man who illegally possessed a firearm and possessed crack cocaine he intended to distribute was sentenced March 17, 2022, to 10 years in federal prison.
Patrick Green, age 50, from Dubuque, Iowa, received the prison term after October 12, 2021 guilty pleas to one count of being a felon in possession of a firearm and one count of possessing with intent to distribute cocaine base, which is also known as crack cocaine.
At the plea hearing, Green admitted that he illegally possessed the firearm in July 2017 and that he possessed the crack in October 2018. Green had previously been convicted of seven felonies, including four drug felonies, two armed robberies, and aggravated discharge of a firearm.
Green was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Green was sentenced to 120 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Green is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Dubuque Police Department and prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR‑19‑1018‑CJW‑MAR.
Follow us on Twitter @USAO_NDIA.
Providence Man Sentenced, Faces Deportation for Misuse of a Passport, False Citizenship and False Social Security Number Claims, Health Care FraudRead the Press Release
PROVIDENCE, R.I. – A Dominican national who resided in Providence is facing deportation after being convicted and sentenced in federal court for falsely representing his citizenship and Social Security number, misusing a passport, and for health care fraud, announced United States Attorney Zachary A. Cunha.
Diomedes Ramirez Rodriguez, 47, who has been detained in federal custody since his arrest on March 9, 2021, was sentenced Thursday by U.S. District Court Judge Mary S. McElroy to time served – one year and eight days. He is further detained by Immigration and Customs Enforcement awaiting deportation proceedings.
Rodriguez pled guilty on December 1, 2021, to false representation of a Social Security number, health care fraud, theft of public money, false representation of citizenship, and misuse of a passport.
According to charging documents, in 2008 and 2010, Rodriquez applied for and received a passport using the personal identifying information of a person living in Puerto Rico. Subsequently, Rodriguez, using the same personal information and that person’s Social Security number, applied for and received a Rhode Island driver’s license and identification card; Supplemental Nutrition Assistance Program benefits totaling $7,342.64; and RI Medicaid Program RIte Care benefits totaling $39,023.61.
The case was prosecuted by Assistant United States Attorney Paul F. Daly, Jr.
The matter was investigated by Homeland Security Investigations, the U.S. Department of State Diplomatic Security Service, U.S. Department of Health and Human Services, U.S. Social Security Administration - Office of the Inspector General/Office of Investigations, and the U. S. Department of Agriculture, Office of Inspector General.
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President of Sham United Nations Affiliate Convicted of Cryptocurrency SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced the conviction today of ASA SAINT CLAIR, a/k/a “Asa Williams,” a/k/a “Asa Sinclair,” following a one-week trial before the Honorable P. Kevin Castel. SAINT CLAIR devised an investment scheme in which he defrauded more than 60 victims into providing loans to his organization, the World Sports Alliance, tied to a purported digital coin offering called IGObit. SAINT CLAIR falsely represented to investors that the World Sports Alliance was a close affiliate of the United Nations and that they would receive guaranteed returns on their investment, but instead diverted the investors’ funds for his personal expenses and benefit.
U.S. Attorney Damian Williams said: “As a jury has now found, Asa Saint Clair used lies to defraud everyday people out of their hard-earned money by promising them guaranteed returns if they invested in a IGObit, a digital currency he claimed the World Sports Alliance was developing. Saint Clair touted the WSA as working closely with the UN to promote the values of sports and peace for a better world, while in reality promoting only the balance of his bank accounts.”
The defendant was charged and convicted in one count with committing wire fraud, in violation of Title 18, United States Code, Section 1343, from in or around November 2017, through in or around September 2019. SAINT CLAIR solicited investors for the launch of IGObit through promised investment returns, representations that the World Sports Alliance, a purported intergovernmental organization, was a close affiliate and partner with the United Nations, and representations about the World Sport Alliance’s development projects around the world. World Sports Alliance did not in fact have any relationship with the United Nations and did not, and had not, participated in any international development projects.
SAINT CLAIR also represented to investors that their money would be used for the development of IGObit, when he in fact diverted those funds to other entities controlled by him and members of his family, as well as to pay his personal expenses, including dinners at Manhattan restaurants, travel, and online shopping.
SAINT CLAIR defrauded more than 60 victims of hundreds of thousands of dollars.
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SAINT CLAIR, 49, of Washington was convicted of one count of wire fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentence for the offense of conviction is prescribed by Congress and is provided here for informational purposes only, as the sentencing of the defendants will be determined by the judge. Sentencing before Judge Castel is scheduled for July 19, 2022.
Mr. Williams praised the work of Homeland Security Investigations.
The prosecution of this case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Tara La Morte, Emily Deininger and Kiersten Fletcher are in charge of the prosecution.
Off-Duty Virginia Police Officer Pleads Guilty to Felony Conspiracy Charge in Jan. 6 Capitol BreachRead the Press Release
WASHINGTON – An off-duty police officer from Virginia pleaded guilty today to a felony charge related to the breach of the U.S. Capitol on Jan. 6, 2021, which disrupted a joint session of the U.S. Congress that was in the process of ascertaining and counting the electoral votes related to the presidential election.
Jacob Fracker, 30, of Rocky Mount, Virginia, pleaded guilty in the District of Columbia to a felony charge of conspiracy. According to court documents, Fracker and Thomas Robertson, both officers with the Rocky Mount, Virginia Police Department, were off-duty when they headed for Washington, D.C. on the morning of Jan. 6. Both brought along their police identification badges and firearms but left those in their vehicle when they arrived in the Washington metropolitan area. They went to the Washington Monument area, where they attended a rally, and then headed to the Capitol, where a mob was gathering.
According to the documents, both donned gas masks and approached the Lower West Terrace of the Capitol. Fracker entered the Capitol at approximately 2:14 p.m. and took a selfie along with
Robertson of themselves making an obscene gesture in front of a statue in the Capitol Crypt.In his plea, Fracker admitted that by the time he and Robertson entered the Capitol, they had agreed to attempt to impede, stop, or delay the proceedings going on before Congress and that they aided, assisted, encouraged, and facilitated each other in the conduct.
Fracker was arrested on Jan.13, 2021. He faces up to five years in prison and a potential fine of up to $250,000. A sentencing date will be set later in the U.S. District Court for the District of
Columbia. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.Robertson, 49, also was arrested on Jan. 13, 2021. He has pleaded not guilty to all charges in the case and is awaiting trial.
The case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section. Valuable assistance was provided by the U.S. Attorney’s Office for the Western District of Virginia.
The case is being investigated by the FBI’s Washington Field Office and the Roanoke Resident Agency of the FBI’s Richmond Field Office. Valuable assistance was provided by the U.S.Capitol Police and the Metropolitan Police Department.
In the 14 months since Jan. 6, more than 775 individuals have been arrested in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including over 245 individuals charged with assaulting or impeding law enforcement. The investigation remains ongoing.
Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.
An indictment or complaint is merely an allegation, and all defendants are presumedinnocent until proven guilty beyond a reasonable doubt in a court of law.
New Orleans Woman Sentenced to 15 Months in Federal Prison for Bank Larceny of over $200,000 Using Patient Information Stolen from Metairie Medical ClinicRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that ASHLEY GREEN, age 39, was sentenced on March 16, 2022 to 15 months in federal prison after pleading guilty as charged, to a one count Bank Larceny Bill of Information in August 2021. Earlier, her co-defendants, BRANDON LIVAS, age 37 and ROYALE LASSAI, age 32, both from New Orleans, Louisiana pled guilty as charged to a one-count bill of information with Bank Larceny, a violation of Title 18, United States Code, Section 2113(b).
In papers filed with the court, GREEN admitted that LASSAI was employed in a Metairie, Louisiana medical clinic. LASSAI, without authority, obtained personal information of patients including dates of birth, social security numbers and addresses. LASSAI sold the information to her cousin, GREEN, who used this information to fraudulently obtain debit cards issued by the victim banks, Capital One and Whitney. These fraudulently obtained cards were mailed to an address controlled by GREEN. GREEN and LIVAS then used the cards to withdraw at least $200,000 from the victim’s accounts. LASSAI was paid at least $1,000 to pilfer the patient’s information from the Metairie clinic.
The court ordered GREEN to pay $205,863 in restitution. Also, she must serve three years of supervised release after she gets out of prison.
U.S. Attorney Duane Evans praised the work of the Jefferson Parish Sheriff’s Office and the United States Postal Inspection Service, in investigating the matter. Assistant United States Attorney Carter K.D. Guice, Jr. is in charge of the prosecution.
Moultrie, Ga., Meth Trafficking Ring Broken, Six Co-Defendants ConvictedRead the Press Release
ALBANY, Ga. – The final member of a Moultrie, Georgia, methamphetamine trafficking network pleaded guilty to a federal drug distribution charge this week.
Robert Lee Smith, III, 46, of Moultrie, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine before U.S. District Judge Leslie Gardner on March 17, and faces a minimum of five years up to a maximum of 40 years in prison to be followed by four years of supervised release and a maximum $5,000,000 fine. Sentencing is scheduled for July 21. There is no parole in the federal system.
“Methamphetamine is a plague on our communities; it is especially disturbing when we find drug trafficking organizations directed by incarcerated individuals, as seen in this case,” said U.S. Attorney Peter D. Leary. “Collaborating with our law enforcement partners at every level, our office will hold repeat offenders accountable for continually disregarding the law and damaging our communities.”
According to court documents, GBI began investigating a drug distribution conspiracy in Colquitt and Brooks Counties in Nov. 2020, initially based on information that co-defendant April Contreras was selling methamphetamine in the region. During the course of the investigation, agents discovered that Robert Smith, who was incarcerated at the Colquitt County Jail, was working with Contreras and co-defendants Aubrey Thompson and Corey Haynes in the sale of controlled substances. Co-defendant Melissa Barrow, working under the direction of Contreras, sold methamphetamine to a confidential informant (CI). Co-defendant Roderick Smith was directed by Robert Smith to provide cash to Contreras for the purposes of methamphetamine trafficking. Robert Smith is accountable for the distribution of between 1.5 kilograms and four kilograms of methamphetamine. Robert Smith has a lengthy criminal history including convictions for aggravated assault and drug distribution.
The following co-defendants have entered guilty pleas and are awaiting sentencing:
April Contreras, 31, of Moultrie, pleaded guilty to possession with intent to distribute methamphetamine on March 10;
Melissa Barrow, 48, of Moultrie, pleaded guilty to distribution of methamphetamine on Dec. 22, 2021;
Corey Haynes, 42, of Moultrie, pleaded guilty to possession with intent to distribute cocaine on Feb. 2; and,
Roderick Smith, 40, of Moultrie, pleaded guilty to use of a communication facility in furtherance of a drug trafficking crime on March 3.
The following co-defendant entered a guilty plea and was sentenced:
Aubrey Thompson pleaded guilty to possession with intent to distribute methamphetamine on Dec. 7, 2021. Thompson was sentenced to 96 months imprisonment to be followed by three years of supervised release.
The case was investigated by DEA, FBI, GBI, Georgia State Patrol, Lee County Sheriff’s Office, Brooks County Sheriff’s Office, Colquitt County Sheriff’s Office and Moultrie Police Department.
Assistant U.S. Attorney Melody Ellis is prosecuting the case.