Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
18 March 2022
Converse Man Sentenced for Trafficking MethamphetamineRead the Press Release
SHREVEPORT, La. - United States Attorney Brandon B. Brown announced that John Matthew Tatum, 45, of Converse, Louisiana, has been sentenced by United States District Judge Donald E. Walter to 63 months in prison, followed by 5 years of supervised release, for his involvement in a drug trafficking conspiracy in Sabine Parish between August 2020 and May 2021.
Tatum pleaded guilty on November 18, 2021 to a Bill of Information charging him with one count of conspiracy to possess with intent to distribute methamphetamine, following an investigation by agents with the Federal Bureau of Investigation (FBI) and Sabine Parish Sheriff’s Office.
On May 6, 2021, investigators executed a search warrant upon Tatum’s residence and located a safe containing approximately 413 net grams of pure methamphetamine. Also found in Tatum’s possession were 22 firearms, including a stolen handgun inside his vehicle, and cash proceeds from drug sales.
This case was investigated by the FBI and Sabine Parish Sheriff’s Office and was prosecuted by Assistant U.S. Attorneys Cadesby B. Cooper and Mike Shannon.
# # #
Computer consultant sentenced to prison for access device fraud schemeRead the Press Release
ATLANTA – Kevin Kirton has been sentenced for running an access device fraud scheme that involved stealing over $600,000 in fraudulent tax refunds from the Internal Revenue Service.
“Kirton created technical ‘solutions’ to conduct his own fraud schemes and help others commit fraud,” said U.S. Attorney Kurt R. Erskine. “Every thief believes they have developed a new undetectable method to steal. As in this case, they will be caught, prosecuted, and face years in federal prison to contemplate their failed endeavor.”
“Kirton was part of a significant tax fraud scheme and his operation defrauded American taxpayers by using stolen identities to solicit the issuance of fraudulent tax refunds,” said Special Agent in Charge, James E. Dorsey, IRS. “This sentencing should serve as a warning to other would-be schemers. As tax filing season continues, those attempting similar thefts from the US Treasury should be aware, Special Agents of IRS – Criminal Investigation will continue the aggressive pursuit of anyone attempting to defraud America's tax system."
“As evidenced by the length of the prison sentence in this case, fraud is a pernicious crime, especially when it involves identity theft.” said U.S. Secret Service Special Agent in Charge Steven R. Baisel. “The Secret Service along with our federal partners will continue to aggressively investigate and bring to justice those attempting to compromise our financial infrastructure.”
“The egregious criminal conduct in this case resulted in the theft of both identities and tax refunds, and shows once again that crime does not pay,” stated Kyle A. Myles, Special Agent in Charge, Federal Deposit Insurance Corporation – Office of Inspector General (FDIC-OIG). “We continue to work together with our law enforcement partners to combat financial crime -- and its impact on our nation’s banks and financial institutions.”
According to U.S. Attorney Erskine, the charges and other information presented in court: Kevin Kirton created a computer program to file fraudulent federal income tax returns with the IRS. The computer program stored stolen identities and could be used to submit fraudulent tax returns in the names of stolen identities to the IRS, effectively automating stolen identity tax refund fraud. The computer program could be accessed remotely via the internet to prepare fraudulent tax returns. The resulting fraudulent tax refunds were deposited onto prepaid debit cards in the names of identity theft victims.
To help conceal the fraud activity, Kirton developed techniques to hide Internet Protocol addresses so the IRS could not trace a fraudulent tax return back to one particular origination point. Kirton also set up a bootleg phone system that he believed would not be susceptible to wiretaps to communicate with other criminals.
A search warrant was conducted at Kirton’s residence and law enforcement discovered, among other things, hundreds of prepaid debit cards in the names of identity theft victims and numerous fake driver’s licenses. Law enforcement also found a Treasury Inspector General for Tax Administration information booklet titled “Income and Withholding Verification Processes are Resulting in the Issuance of Potentially Fraudulent Tax Refunds.”
While Kirton’s case was pending and he was out on bond, he telephonically contacted an associate who was detained at the Robert A. Deyton Detention Facility, seeking to influence the testimony of a cooperator in his case. Recorded jail calls between Kirton and his jailed associate show that Kirton repeatedly sought to convey veiled threats to the cooperator through the jailed associate. Due to this conduct, Kirton’s bond was revoked and he was detained pending resolution of his case.
Kevin Kirton, 44, of Dallas, Georgia, was sentenced on March 14, 2022, to six years, nine months in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $629,551. On June 17, 2021, he pleaded guilty to access device fraud and aggravated identity theft.
This case was investigated by the Internal Revenue Service - Criminal Investigation, the U.S. Secret Service, and the Federal Deposit Insurance Corporation – Office of Inspector General.
Assistant U.S. Attorneys Samir Kaushal and Alana Black and Special Assistant U.S. Attorney Zack Howard prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Columbia Man, Moberly Woman Indicted for Armed Business, Bank RobberiesRead the Press Release
JEFFERSON CITY, Mo. – A Columbia, Missouri, man and a Moberly, Mo., woman have been indicted by a federal grand jury for their roles in a conspiracy to commit armed robbery at four business and two banks in six different cities.
Drake Adam Stockton-Kenney, 30, and Mary Catherine Sumpter, 28, were charged in an eight-count indictment returned under seal on Wednesday, March 16, by a federal grand jury in Jefferson City, Mo. The indictment was unsealed and made public today following Sumpter’s arrest.
The federal indictment alleges that Stockton-Kenney and Sumpter participated in an armed robbery conspiracy from Feb. 11 to Aug. 10, 2021. They allegedly stole at gunpoint $3,334 from Check into Cash in Moberly, Mo., on April 17, 2021; $297 from World Finance in Mexico, Mo., on May 4, 2021; $670 from Advance America in Marshall, Mo., on May 6, 2021; $200 from Check ‘n Go in Hannibal, Mo., on May 20, 2021; $8,690 from Alliant Bank in Pilot Grove, Mo., on June 2, 2021; and $22,027 from Alliant Bank in Boonville, Mo., on June 25, 2021.
In each of those six armed robberies, the indictment says, Stockton-Kenney brandished a firearm pointed directly at employees. They allegedly used physical restraints to immobilize employees of World Finance and Check ‘n Go during those robberies.
In addition to the conspiracy, Stockton-Kenney and Sumpter are charged together in one count of business robbery, related to the Advance America robbery on May 6, 2021, and two counts of bank robbery. The other three robberies occurred outside the Western District of Missouri.
Stockton-Kenney is also charged with three counts of brandishing a firearm during a crime of violence and one count of being a felon in possession of a firearm. Columbia police officers seized a Taurus 9mm pistol from Stockton-Kenney’s residence when he was arrested on Aug. 10, 2021, in an unrelated state case. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Stockton-Kenney has two prior felony convictions for burglary and prior felony convictions for tampering with a motor vehicle and robbery.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Boone County, Mo., Sheriff’s Department, the Booneville, Mo., Police Department, the Columbia, Mo., Police Department, the Cooper County, Mo., Sheriff’s Department, the Hannibal, Mo., Police Department, the Marion County, Mo., Sheriff’s Department, the Marshall, Mo., Police Department, the Mexico, Mo., Police Department, the Moberly, Mo., Police Department, the Pilot Grove, Mo., Police Department, the Missouri State Highway Patrol, the FBI, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Citizen of Mexico Residing in Bakersfield Sentenced to over 10 Years in Prison for Distributing Methamphetamine and FentanylRead the Press Release
Wilfredo Medina-Perez, 34, a native and citizen of Sinaloa, Mexico, residing in Bakersfield, was sentenced today to 10 years and five months in prison for distributing methamphetamine and fentanyl, U.S. Attorney Phillip A. Talbert announced.
According to court documents, from December 2018 to November 2019, Medina distributed approximately one pound of 100% pure methamphetamine and 8,078 counterfeit oxycodone pills containing fentanyl to an undercover agent. Medina was arrested on a federal criminal complaint filed on Nov. 22, 2019, and has remained in custody as a flight risk and danger to the community since that time. Medina pleaded guilty in December 2021.
Last week, one of Medina’s runners, Uriel Ivan Portillo, 35, also a native and citizen of Mexico, was sentenced to three years and four months in prison for distributing fentanyl. One of Medina’s customers, Rojelio Garcia, 49, of Bakersfield, was sentenced to time served for possessing fentanyl with the intent to distribute and placed on supervised release for three years.
This case was the product of an investigation by the Drug Enforcement Administration, the Southern Tri-County High Intensity Drug Trafficking Area Task Force, the Kern County Sheriff’s Department, and the Bakersfield Police Department. Assistant United States Attorneys Karen Escobar and Angela Scott prosecuted the case.
This effort was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Chinle Man Sentenced to Nineteen Years for Killing of Navajo WomanRead the Press Release
PHOENIX, Ariz. – Sito Aeroplan Nalwood, 33, of Chinle, Arizona, was sentenced yesterday by U.S. District Judge Michael T. Liburdi to nineteen years in prison. Nalwood previously pleaded guilty to Voluntary Manslaughter.
On July 26, 2018, Nalwood attempted to take a bag from the victim by threatening her with a rifle. When the victim refused, Nalwood began firing shots around her. One of the shots hit the victim in the pelvis, which ultimately killed her. At the time he committed this crime, Nalwood was serving a term of supervised release, which had been imposed after Nalwood was convicted of an assault. The Court sentenced Nalwood to fifteen years in prison for voluntary manslaughter and an additional four years in prison for committing that crime while on supervised release.
Both Nalwood and the victim are members of the Navajo Nation, and the offense occurred in Chinle, on the Navajo Nation Indian Reservation.
The Federal Bureau of Investigation conducted the investigation in this case. Assistant U.S. Attorneys William G. Voit and Sharon K. Sexton, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-18-08328-MTL
RELEASE NUMBER: 2022-026_Nalwood# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Chinese national pleads guilty in money laundering schemeRead the Press Release
ATLANTA - Jianjie Liu has pleaded guilty to conspiracy to commit money laundering. Liu was charged in an 11-count indictment with money laundering conspiracy, nine counts of money laundering, and access device fraud. These charges stemmed from Liu’s role receiving money from victims of various telephone scams.
“Liu laundered hundreds of thousands of dollars from schemes that bilked elderly victims,” said U.S. Attorney Kurt R. Erskine. “Telephone scams regularly victimize the elderly and Liu played a pivotal role, receiving money directly from the victims.”
“This guilty plea demonstrates that my office will continue to pursue perpetrators of these malicious Social Security-related scams that prey upon unsuspecting people, especially the elderly, to deprive them of their assets and resources,” said Gail S. Ennis, Inspector General for the Social Security Administration. “I thank the Duluth Police Department for their assistance in this investigation and I thank the U.S. Attorney’s Office for prosecuting this case.”
According to U.S. Attorney Erskine, the charges and other information presented in court: in October 2019, Liu was arrested at a Walmart in Duluth, Georgia after she tried to purchase a suspicious number of gift cards. A search of her car found over 700 blank gift cards. A search of her phone revealed victim information. When contacted, the victims, most of whom were elderly, all reported that they had been victims of various telephone scams.
For example, an 89-year-old priest in Minnesota was victimized when a scammer, posing as an employee of an internet security company, offered him a $555 rebate. In order to get the rebate, the priest provided access to his bank account. The scammer pretended to mistakenly deposit $20,555 into the priest’s account. He asked the priest to return $20,000 by sending a $20,000 check to a bank account that Liu controlled.
In another scam, a 73-year-old woman in Washington was victimized when a scammer posing as a Facebook friend sent her a message telling her that she may qualify for a $150,000 government grant. The fake “friend” put her in touch with a scammer posing as a government agent. The purported ‘government agent’ advised the victim that she could only get the grant after she paid various fees. The victim sent three checks for $2,500, $4,000, and $4,500 to various addresses in the United States. She then purchased a $1,000 gift card and provided the PIN and access information to the fictitious government agent. The same day, Liu used the information from the gift card to purchase other gift cards in Louisiana.
In yet another scam, a 78-year-old man in South Carolina, was scammed when he received a call from someone claiming to be a police officer. The fictitious police officer told the victim that his grandson had been arrested and needed $9,000 in bail money. The victim sent a check for $9,000 to an address in Las Vegas. Later, the scammer called back and told him that his grandson had injured a police officer and the victim needed to pay the officer’s hospital bill. The victim then sent $5,000 to an account that Liu controlled.
The victims who sent Liu money lost hundreds of thousands of dollars. Liu personally received over $150,000. After Liu was indicted and was on pretrial release, she continued to receive money from scam victims. The court revoked her bond and detained her. Rather than appear in court, Liu fled the country and was on the run for approximately seven months. Liu was arrested at the Texas border while trying to re-enter the United States and is currently detained.
Jianjie Liu, 44, of Cypress, Texas, pleaded guilty to one count of conspiracy to commit money laundering. Sentencing is scheduled for June 16, 2022, at 9:00 a.m., before U.S. District Judge Eleanor L. Ross.
This case is being investigated by the Social Security Administration - Office of the Inspector General and Duluth Police Department.
Special Assistant U.S. Attorney Diane C. Schulman is prosecuting the case.
The U.S. Attorney’s Office for the Northern District of Georgia is part of the Department of Justice Transnational Elder Fraud Strike Force. The Strike Force focuses on investigating and prosecuting defendants associated with foreign-based fraud schemes that disproportionately affect American seniors. These include romance scams, phone scams, mass-mailing fraud schemes, and tech-support fraud schemes. For further information on these scams, see https://www.justice.gov/elderjustice/senior-scam-alert.
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.
Chicago Drug Dealer Who Flipped Car While Attempting to Flee from Police Sentenced to Federal PrisonRead the Press Release
A man who led Dubuque police on a high‑speed chase that ended with his car on its hood and his gun, heroin, fentanyl and cocaine in the snow was sentenced March 17, 2022, to four years in federal prison.
Richard Allen Roberts, age 39, from Chicago, Illinois, received the prison term after September 27, 2021 guilty pleas to one count of distributing crack near a playground and one count of being a felon in possession of a firearm.
In a plea agreement, Roberts admitted that he sold about a half gram of crack cocaine to a confidential informant near Jefferson Park in Dubuque on January 26, 2021. About a week later, police tracked Roberts’s car from Dubuque to Chicago. When he returned to Iowa on February 5, 2021, officers stopped the car after it crossed the bridge into Dubuque from Wisconsin. A narcotics K9 alerted to the odor of narcotics coming from Roberts’s vehicle. After an officer asked Roberts to get out of his car, Roberts put the car in gear and fled. During the subsequent chase, Roberts’ vehicle reached speeds in excess of 80 miles per hour and collided with a snowplow but kept going. Roberts eventually lost control of his car approximately 3.5 miles away in Illinois, flipping the car over into a snow‑filled median. When the car was turned back over, officers found a plastic bag containing about 32 grams of powder cocaine, 44 grams of crack cocaine, over 9 grams of heroin, 1.5 gram of heroin and fentanyl. Next to the bag was a Smith & Wesson 9mm pistol. Roberts had previously been convicted of 11 prior felony crimes in Illinois.
Roberts was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Roberts was sentenced to 48 months’ imprisonment. He must also serve a 6-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Roberts is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Dubuque Drug Task Force 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 21‑CR‑1017‑CJW‑MAR.
Follow us on Twitter @USAO_NDIA.
Celtic Cobra Team Honored with OCDETF National AwardRead the Press Release
Today, United States Attorney Chad E. Meacham presented the Organized Crime Drug Enforcement Task Forces National Award for Significant Contribution to Public Safety and Security to prosecutors and agents who worked Operation Celtic Cobra.
Celtic Cobra, which lasted from 2011 to 2019, led to the indictment of 60 individuals who trafficked drugs and laundered money for a number of drug cartels, including La Familia Drug Cartel, Los Caballeros Templarios, Cartel Nueva Generación de Jalisco, Los Zetas Cartel, Gulf Cartel, Puro Tango Blast Prison Gang, the Aryan Brotherhood of Texas, and Los Paisa’s Prison Gang.
At one point, undercover agents identified four people who used their positions of employment at the Dallas Fort Worth International Airport to bypass security to smuggle what they believed to be kilogram amounts of methamphetamine onto commercial airlines. At one point one defendant even agreed to smuggle inert explosives onto cross-country flights. These four defendants put the flying public at grave risk.
Over the course of the operation, the U.S Attorney’s Office, the Federal Bureau of Investigation’s Dallas Field Office, the Dallas Police Department, and the Internal Revenue Service Criminal Investigation Division seized approximately 50 firearms, $855,513.00 cash, $400,000.00 in real and personal property, 1,025 kilograms of methamphetamine, 12 kilos of cocaine, and 33 kilos of heroin.
All but three of the 60 defendants were captured; all 57 captured defendants pleaded guilty. One defendant received two life sentences in prison for drug trafficking and several defendants received maximum sentences for money laundering.
Award recipients included: Assistant U.S. Attorney George Leal
Assistant U.S. Attorney John de la Garza
Assistant U.S. Attorney John Kull
FBI Special Agent Robert Benton
FBI Special Agent Joseph Mathews
The OCDETF program was established in 1982 in order to attack and reduce the supply of illegal drugs entering the United States and to diminish violence and other criminal activity associated with the drug trade. The OCDETF program works with federal, state, and local law enforcement agencies to identify, disrupt, and dismantle, drug traffickers and drug trafficking networks.
California Man Pleads Guilty to Misappropriating COVID-19 Relief FundsRead the Press Release
A California man pleaded guilty today in the Central District of California to stealing government funds designed to aid medical providers in the treatment of patients suffering from COVID-19. He also admitted to stealing additional government funds intended to help small businesses during the COVID-19 pandemic.
According to court documents, Gurgen Israyelyan, 39, of West Hills, admitted he owned Saint Christopher Hospice Inc. (SCH), a hospice agency in North Hollywood, which closed around September 2019. SCH, which was never operational during the COVID-19 pandemic, received approximately $89,162 designated for the medical treatment and care of COVID-19 patients. Israyelyan admitted he stole the funds by spending them for his personal use and by transferring them to family members, including a family member in Armenia, rather than using the funds in conjunction with pandemic relief efforts as required.
The charges against Israyelyan resulted from his intentional misuse of funds distributed from the Coronavirus Aid, Relief, and Economic Security (CARES) Act Provider Relief Fund, money specially apportioned by the CARES Act to help health care providers who were financially impacted by the COVID-19 pandemic to provide care to patients who were suffering from COVID-19, and to compensate providers for the cost of that care. These funds were critical to delivering relief to health care providers and maintaining access to medical care during the pandemic.
As part of his guilty plea, Israyelyan further admitted that he submitted, or caused to be submitted, five fraudulent Economic Injury Disaster Loan (EIDL) applications to the Small Business Administration (SBA) on behalf of SCH and four other entities that Israyelyan controlled: GMG Holdings LLC, Double G Ventures LLC, One Touch Assistants LLC, and G.I. Construction Group. As a result of the fraudulent EIDL applications, the SBA disbursed approximately $428,100 of EIDL funds to Israyelyan, all of which were proceeds that Israyelyan knew he was not entitled to and which Israyelyan used for his own personal benefit, contrary to EIDL requirements. The EIDL program, which was expanded under the CARES Act, was designed to provide loans to small businesses that suffered substantial economic injury from the COVID-19 pandemic.
Israyelyan pleaded guilty to three counts of theft of government property. He is scheduled to be sentenced on June 13 and faces up to 10 years in prison for each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; U.S. Attorney Tracy L. Wilkison for the Central District of California; Special Agent in Charge Timothy B. Francesca of the U.S. Department of Health and Human Services’ Office of Inspector General’s Los Angeles Regional Office; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; and Assistant Director Kristi Johnson of the FBI’s Los Angeles Field Office made the announcement.
Trial Attorney Chris Wenger and Senior Litigation Counsel Jim Hayes of the National Rapid Response Strike Force of the Criminal Division’s Fraud Section are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Birmingham Man Pleads Guilty to Drug and Gun ChargesRead the Press Release
BIRMINGHAM, Ala. – A Birmingham man pleaded guilty this week to drug and gun charges, announced U.S. Attorney Prim F. Escalona and Drug Enforcement Administration Assistant Special Agent in Charge Towanda Thorne-James.
LaMarcus Antonia Sills, Sr., 39, pleaded guilty before United States District Judge Abdul K. Kallon to charges that he possessed heroin with the intent to distribute, was a felon in possession of a firearm, and carried a firearm during and in relation to drug trafficking crime. Sentencing is scheduled for June 23, 2022.
According to the plea agreement, on July 16, 2020, Birmingham Police Officers had established a police checkpoint at the intersection of 29th Avenue North and 29th Street North, when a white Mercedes Benz came to a stop at the checkpoint. The driver, and sole occupant of the vehicle, was Sills. While speaking to Sills, officers detected the odor of marijuana coming from the vehicle and Sills admitted to officers that he had smoked a blunt earlier that day just outside the vehicle. During a search, Officers discovered a 9mm Sig Sauer pistol in Sills’ waistband. Officers searched the vehicle and found numerous plastic sandwich bags under the driver’s seat. In the backseat center arm rest, officers found a clear plastic sandwich bag containing marijuana, a plastic bag containing 30.79 grams of heroin, a small digital scale, and more empty sandwich bags.
Drug Enforcement Administration and Birmingham Police Department investigated the case. Assistant U.S. Attorney Darius Greene prosecuted the case.
###
Beckley Man Enters Plea to Federal Drug CrimeRead the Press Release
BECKLEY, W.Va. – Eric Dale Mills, 45, of Beckley, pleaded guilty today to a federal drug crime.
According to court documents and statements made in court, on July 26, 2021, a Raleigh County Deputy Sheriff conducted a traffic stop on the car Mills was driving. Law enforcement officers searched the car and found over 50 grams of fentanyl and a small amount of methamphetamine. Officers also found small bags for packaging and scales. Mills admitted that he possessed the fentanyl and that he intended to distribute it.
Mills pleaded guilty to possession with intent to distribute 40 grams or more of a mixture or substance containing fentanyl and faces not less than five and up to 40 years in prison when he is sentenced on July 1, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Raleigh County Sheriff’s Department.
United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney Andrew D. Isabell is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:21-cr-00252.
###
Baltimore Man Admits to Paying for International Video Chats Involving the Sexual Abuse of ChildrenRead the Press Release
Baltimore, Maryland – Steven Martin Bickling, age 48, of Baltimore Maryland, pleaded guilty yesterday to coercion and enticement of a minor.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his guilty plea, in 2018 Bickling visited a website that offered live chat rooms with Asian women. After hearing children in the background of chat rooms, Bickling asked a female performer to show her daughter nude for $50. After agreeing to Bickling’s request, the female performer posed her prepubescent daughter on video chat as Bickling masturbated. Bickling estimated that this conduct occurred 12 to 15 times within a two-year period. In at least one instance, Bickling masturbated during a video live chat involving a child that was approximately eight or nine years old. Bickling claimed that this occurred while he was drinking excessively.
As stated in his plea agreement, on August 19, 2020, Baltimore City detectives and members of the FBI Violent Crimes Against Children Task Force executed a search and seizure warrant at Bickling’s residence. Bickling was present at the time. During an interview with law enforcement, Bickling admitted that he possessed pornographic videos of children between five and twelve years of age saved on his laptop. Bickling also informed law enforcement that he paid for access to a restricted child pornography website.
A subsequent review of Bickling’s email account revealed numerous conversations in which Bickling solicited sexual images or videos of female children. For example, in an email communication on May 7, 2019, Bickling wrote “I like to rape young girls. Is that ok with you?”. On the same day, Bickling stated “I watch a lot of child prn . . . I like when they cry.” Additionally, in other chats dating as far back as 2018, Bickling solicited live video sessions of adult male relatives having sexual relations with their younger sisters or nieces.
As detailed in his plea agreement, a forensic analysis of the items seized from Bickling’s residence revealed a total of 21 images and 50 videos that depicted minors in sexually explicit conduct. The materials included depictions of prepubescent minors.
Bickling faces a minimum sentence of 10 years in prison and a maximum of life in prison, followed by up to a lifetime of supervised release, for coercion and enticement of a minor. U.S. District Judge Deborah L. Boardman has scheduled sentencing for August 10, 2022, at 10:00 a.m.
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 Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Erek L. Barron commended the FBI and the Baltimore Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Judson T. Mihok, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
# # #
Baltimore Drug Dealer Sentenced to over Eight Years in Federal Prison for Gun Possession and Intent to Distribute Fentanyl, Cocaine, and HeroinRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Khalil Shaheed, age 28, of Baltimore, Maryland, today to 106 months in federal prison, followed by three years of supervised release, for intent to distribute controlled substances, possession of firearms in furtherance of drug trafficking, and possession of a firearm by a felon.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Division; Commissioner Michael Harrison of the Baltimore Police Department; Harford County Sheriff Jeffrey R. Gahler; and Carroll County Sheriff James DeWees.
According to his guilty plea, after the investigation of a fatal overdose victim in Harford County, Maryland, investigators examined the victim’s cell phone activity and noted that the victim purchased heroin from a contact labeled “T” on at least seven occasions. The last date the victim purchased heroin from “T” was on October 14, 2017, three days before the victim’s death. In the last conversation, “T” directed the victim to meet them in a Baltimore, Maryland grocery store bathroom.
As result of an investigation into an overdose, investigators began to conduct physical surveillance on Shaheed. On November 9, 2017, investigators watched Shaheed depart from his Baltimore, Maryland residence and travel to a gas station. Before parking the vehicle, Shaheed circled the parking lot, stopped at a gas pump, and then parked directly in front of the gas station store. Upon parking, Shaheed stood outside his vehicle, stood next to his car while appearing to look for someone. Minutes later, Shaheed entered the gas station and went directly to the bathroom while a detective followed him. As the detective entered the bathroom, Shaheed quickly exited the bathroom with another male subject. Shaheed proceeded to exit the store without making any purchases.
Believing that a drug deal had just occurred, law enforcement obtained a court order to install a GPS device on Shaheed’s vehicle.
As stated in his plea agreement, on November 16, 2017, investigators executed a search warrant on Shaheed’s residence and vehicle. As a result of the search warrants, officers discovered a 9mm handgun, cocaine, and heroin packaged for distribution in his vehicle. In his residence, officers found a .25 caliber handgun, $12,452.36 in cash, ammunition, and additional drugs. In total, law enforcement seized approximately 82 grams of cocaine, 55 grams of heroin and 7 grams of fentanyl. Additionally, officers seized a cellphone from Shaheed’s residence that was previously associated with the same number as the contact saved as “T” in the victim’s cell phone.
On November 6, 2019, a federal grand jury indited Shaheed on charges related to possession with intent to distribute controlled substances in November 2017, and possession of the firearms. An arrest warrant was issued based on these charges.
On November 20, 2019, federal investigators located Shaheed at his last residence and observed activity indicative of drug trafficking activity in plain view. Shaheed was arrested while officers executed a search warrant that resulted in the discovery of six bags of cocaine and a .25 caliber handgun.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (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.
Mr. Barron commended the DEA, the Baltimore County Police Department, the Harford County Sheriff’s Office, the Carroll County State’s Attorney’s Office, and the Carroll County Sheriff’s Office for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Kim Oldham and Special Assistant U.S. Attorney Jeffrey M. Hann, a cross-designated Baltimore City Assistant State’s Attorney, who are prosecuting this case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please https://www.justice.gov/usao-md/project-safe-neighborhoods-psn and https://www.justice.gov/usao-md/community-outreach.
# # #
Bakersfield Resident Pleads Guilty to Fentanyl Distribution ConspiracyRead the Press Release
Adrian Rodriguez Cardenas, 21, of Bakersfield, pleaded guilty today to conspiracy to distribute fentanyl, U.S. Attorney Phillip A. Talbert announced.
On Feb. 4, 2022, co-defendant Keisean Rockmore, 27, of Bakersfield, pleaded guilty to possession with the intent to distribute fentanyl.
According to court documents, on Jan. 11, 2021, Cardenas negotiated with and sold to an undercover law enforcement officer counterfeit OxyContin/oxycodone pills containing fentanyl. Cardenas thereafter negotiated a second sale of pills to the undercover officer. On Jan. 19, 2021, Rockmore drove Cardenas and a third individual to a fast-food restaurant parking lot in Bakersfield to meet with and sell to the undercover officer 1,000 fentanyl-laced pills for the negotiated price of $2,900. During the meeting, when the undercover officer asked the vehicle occupants whether they had the pills, Rockmore motioned towards a bag on his lap and stated that he had it. At least one of the vehicle occupants possessed a firearm during the meeting, which he pointed at the undercover officer when a dispute arose during the transaction. Rockmore then fled in his vehicle with Cardenas and the third person to a nearby apartment complex, where they exited the vehicle and attempted to elude pursuing law enforcement officers. After law enforcement officers found and arrested Cardenas, Rockmore and the other person at the apartment complex, they discovered nearby a loaded firearm and more than 50 counterfeit OxyContin/oxycodone pills.
This case is the product of an investigation by the Drug Enforcement Administration and the Kern County Sheriff’s Office. Assistant U.S. Attorneys Christopher D. Baker and Justin J. Gilio are prosecuting the case.
Cardenas is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on June 17, 2022. Cardenas faces a mandatory five-year term in prison and a maximum term of 40 years in prison and a $5 million 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 is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Austin Man Sentenced for Defrauding Financing CompanyRead the Press Release
AUSTIN – Yesterday, an Austin man was sentenced to 24 months in prison for defrauding a financing company.
According to court documents, David Wayne Jenkins, 38, was the owner and president of Fukushu, Inc., doing business as Double D Services (Double D). In February 2015, Jenkins agreed to sell Double D’s accounts receivable to Momentum Capital (Momentum), an accounts receivable financing company, to receive payments on invoices to companies that Double D performed work for.
From October 28, 2015 through December 29, 2015, Jenkins devised a fraud scheme to obtain payments for work Double D never performed. Jenkins created 17 false and fraudulent Double D invoices and related work tickets for work he purportedly performed for Martin Marietta. Although none of the work was performed, Jenkins sought payment for $1,013,385 in invoices.
“We are committed to prosecuting those who try to swindle money from others,” said U.S. Attorney Ashley C. Hoff. “Criminals looking to make a quick buck can find themselves behind bars, just like this defendant.”
“Our office is committed to protecting businesses from theft and fraud schemes which threaten the stability of our local economy and to holding fraudsters accountable for their crimes,” said FBI San Antonio Division Acting Special Agent in Charge Jason Hudson.
On September 29, 2021, Jenkins pleaded guilty to one count of wire fraud. In addition to the prison sentence, Jenkins was ordered to pay $560,628.07 in restitution, the amount of loss Momentum suffered.
The FBI investigated the case.
Assistant U.S. Attorney Sharon Pierce prosecuted the case.
###
Armed Drug Trafficker Sentenced to 18 Months in PrisonRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Darren Johnson, aka “Buck,” 40, of St. Albans, Vermont, was sentenced today to serve 18 months in prison after his conviction for distribution of cocaine base. Chief United States District Judge Geoffrey Crawford also ordered Johnson to serve a three-year term of supervised release after his incarceration. Johnson may face additional incarceration for a probation violation that is pending in Dorchester, Massachusetts.
According to court records, Johnson sold fentanyl-laced heroin and cocaine base to confidential informants in late 2019 and early 2020. Burlington Police arrested Johnson on March 20, 2020, seizing over $5,000 in cash and drug trafficking paraphernalia. Johnson was cited to appear in Chittenden County Superior Court but failed to appear, resulting in the issuance of an arrest warrant. On July 18, 2021, a Franklin County Sheriff’s Deputy conducted a traffic stop of a vehicle that was in the wrong lane of a road in St. Albans. Johnson was a passenger in the vehicle and was arrested due to his failure to appear. A search of Johnson’s person resulted in the seizure of over $8,000 in cash. A consent search of the vehicle resulted in the seizure of cocaine base and a Glock Model 45 9mm firearm. The investigation by the Franklin County Sheriff’s Department determined that Johnson had obtained the firearm from one of his drug customers.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of both the Burlington Police Department and Franklin County Sheriff’s Office, as well as the assistance of the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Assistant United States Attorney Jonathan A. Ophardt handled the prosecution. Johnson was represented by Assistant Federal Public Defender Sara Puls, Esq.
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 works 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. For more information, please visit https://www.justice.gov/psn.
Armed Billings meth trafficker sentenced to ten years in prisonRead the Press Release
BILLINGS — A Billings man who admitted to dealing methamphetamine from a motel room and to possessing firearms for protection was sentenced on March 16 to 10 years in prison to be followed by five years of supervised release, U.S. Attorney Leif M. Johnson said.
Eric Kendrick Buchanan, 44, of Billings, pleaded guilty in September 2021 to conspiracy to possess with intent to distribute meth.
U.S. District Judge Susan P. Watters presided.
The government alleged in court documents that in 2020, law enforcement learned that Buchanan was selling meth, often from a motel room in Billings, and that he carried a firearm. Agents arranged purchases of meth from Buchanan and also conducted several traffic stops of him. During a stop in October 2020, Buchanan possessed a 9mm firearm, a meth pipe and marijuana. Buchanan told officers he traded meth for the gun. In a November 2020 traffic stop of Buchanan, officers found two 9mm handguns. Buchanan told officers he had obtained the handguns and four ounces of meth to sell from an individual and had the guns for protection. In a December 2020 traffic stop, law enforcement found a 9mm pistol, ammunition and approximately $3,000 in cash. Buchanan told officers he was on his way to buy a pound of meth with the cash. When Buchanan was arrested in February 2021 on the indictment, he had $9,300 cash, which he explained was to pay for a pound of meth he had received the previous week.
Assistant U.S. Attorney Julie R. Patten prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
XXX
Architects of $48 Million Dollar Medical Reimbursement Account Program Fraud Scheme SentencedRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that that DENIS J. JOACHIM, age 55, DONNA K. JOACHIM, age 55, residents of Covington, Louisiana, and their company, The Total Financial Group, Inc. (“TTFG”), having previously pled guilty, were sentenced on March 17, 2022 by United States District Judge Carl J. Barbier, for their roles in creating, marketing, and operating what it claimed to be a Medical Reimbursement Program. After characterizing their conduct as a “massive fraud scheme”, Judge Barbier sentenced DENIS J. JOACHIM to 97 months in prison, followed by 3 years of supervised release, and a $100 special assessment fee, DONNA K. JOACHIM to 12 months and 1 day in prison, followed by 3 years of supervised release, and a $100 special assessment fee, and TTFG to 1 year of probation and a $2,400 special assessment fee. As part of the guilty plea, the defendants have agreed to forfeit assets previously seized with a collective value of approximately $6,300,000. A hearing to determine the amount and apportionment of restitution was scheduled for June 9, 2022, at 9:30 am.
As a condition of their pleas, DENIS and DONNA JOACHIM also agreed to be barred from serving as consultants or advisors to any labor organization or employee benefit plan for a period of thirteen (13) years from the end of their terms of imprisonment. Additionally, TTFG’s Executive National Marketing Director, JOSEPH ANTHONY BORINO, is scheduled to be sentenced by United States District Judge Wendy B. Vitter on June 30, 2022.
According to court documents, TTFG was a Louisiana business incorporated by DENIS and DONNA JOACHIM with the Louisiana Secretary of State on about January 6, 2005, that was most recently located at 406 N. Florida Street, Covington, Louisiana. TTFG and its owners created and marketed a Medical Reimbursement Account program called “Classic 105.” Classic 105 claimed to be a multiple employer welfare arrangement that was marketed to employers as a supplemental benefits plan to reimburse their employees for medical expenses such as co-pays and deductibles. Participants in Classic 105 were required to have a primary health insurance plan unrelated to and in addition to Classic 105. Classic 105 claimed to be comprised of several components: a tax-exempt contribution of between $1,000 and $1,600 per month made by an employee (which reduced the employee’s taxable income), a loan from a lender back to the employee to make up for the contribution, an insurance policy payable to the lender at the employee’s death to repay the loan, and fees paid by the employee and the employer directly to TTFG. TTFG told prospective employer-clients that participants would never have to make out-of-pocket payments to repay the loan and that as a result of the tax savings, most participants would receive an increase in their net take home pay. TTFG also told prospective employer- clients that the contributions would be stored in a unique account for each employee-participant and that any money not used by the end of each calendar year would revert to TTFG. TTFG also charged employee-participants a fee of between $150 and $250 per month and the employer a fee of five percent of each employee’s contribution amount. At its peak, over 350 employer-clients and 4,400 employee-participants nationwide were enrolled in TTFG’s Classic 105 program. In total, TTFG took in not less than at least $25,543,340.70 in fees from the employer-clients and employee-participants.
In fact, TTFG never obtained a single loan or insurance policy for the Classic 105 program, and participants never made any actual contributions. Rather, TTFG arranged for the contribution, loan, and insurance policy to appear as a series of “paper transactions” that, in effect, did nothing more than reduce participants’ taxable wages and employers’ FICA payments improperly, without their knowledge of the impropriety. Consequently, TTFG and the JOACHIMS caused the underpayment of at least $23,343,442.70 in federal FICA taxes, as well as the underreporting and underpayment of personal federal income taxes, federal unemployment taxes, and state unemployment taxes—amounts for which the employer-clients and employee-participants may be individually responsible.
In truth, the only money actually paid to TTFG were the fees, which the JOACHIMS for personal expenses, including the purchase of a 26-foot boat, a 2016 Grand Design Solitude recreational trailer, a Chevrolet Corvette, a Jeep Wrangler, a Dodge Ram truck, a Mercedes-Benz CL 550 automobile, a GMC Yukon XL Denali, multiple CAN-AM Maverick 1000R off-road vehicles, jet skis, their Covington residence, real property located adjacent to their Covington residence, two (2) residences located in Madisonville, Louisiana, 40 acres of property in Bush, Louisiana, and 125 acres of property in Spring City, Tennessee.
The Court’s previous forfeiture orders were made part of the defendants’ sentences. Consequently, TTFG and the JOACHIMS have forfeited all right, title, and interest in the following assets to the United States of America: $791,304.83 from seized bank accounts, 2013 Chaparral Boat, 2014 Chevrolet Corvette, 2016 Jeep Wrangler, 2016 Dodge Ram 3500 Pickup Truck, 2012 Mercedes Benz CL550, 2016 GMC Yukon XL Denali, 2016 Can-Am Maverick 1000R Turbo XDS, 2016 Can-Am Outlander 1000R XMR, 2016 Grand Design Reflection Recreational Trailer, (2) 2016 Sea-Doo RXT-X-300 Jet Skis, 2015 Sea-Doo GTX-LTD IS 260, (3) Boat Trailers, 23185 Highway 1084, Covington, LA, 26169 Highway 40, Bush, LA, acreage in Rhea County, Tennessee, and 41 Rue Du Sud, Madisonville, LA.
“The defendants targeted unsuspecting employers luring them into this fraudulent scheme that caused severe tax issues for both employers and their employees,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Schemes such as these have a profound effect on their victims, not only by the monies lost in the scheme, and the time and effort to repair the adverse effects of the fraudulent plot, but also by stoking public distrust. Our office, along with our investigative partners, remains committed to investigate these crimes and prosecute all those that are intent in defrauding the American public."
"This sentencing demonstrates the steadfast work of the FBI and our partners in bringing to justice individuals like Mr. Dennis Joachim and Mrs. Donna Joachim who engage in fraudulent schemes that impact our health care programs,” said, Douglas A. Williams, FBI New Orleans. "We thank our partners at United States Attorney's Office Eastern District of Louisiana, Internal Revenue Service - Criminal Division, Department of Labor Office of Inspector General, and the Employee Benefits Security Administration, for their collaborative efforts in disrupting criminal actors who cause damage to the American healthcare system.”
“The Total Financial Group, Inc. and its’ owner Denis and Dona Joachim, fraudulently used a multiple employee welfare arrangement plan to defraud participants and unjustly enrich themselves in complete disregard of the fiduciary duty they owed to the plan employers and their workers. The successful prosecution of these defendants reinforces the OIG’s continued commitment to working with our partner federal agencies to safeguard American workers from organizations and individuals engaged in these types of illicit fraud schemes,” said Special Agent-in-Charge Steven Grell of the U.S. Department of Labor, Office of Inspector General, Dallas Region.
"Defendants illegally enriched themselves at the expense of hard-working employees and their employers, and today they were held accountable,” said Mark Underwood, Acting Regional Director for the U. S. Department of Labor Employee Benefit Security Administration. “This case demonstrates how federal agencies work together to vigorously enforce criminal violations committed against employee benefit plans and their participants.”
“The defendants sentenced today share one trait in common – greed,” said Special Agent in Charge James E. Dorsey, IRS Criminal Investigation, Atlanta Field Office. “Their desire for money, power and material items, drove them to perpetrate crimes against our tax system and prey upon many of the vulnerable in our society. Thanks to the financial expertise and diligence of IRS-CI special agents, who worked side-by-side with other federal and state law enforcement officers to uncover these schemes, these criminals now face the consequences of their actions.”
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation; the United States Department of Labor – Office of Inspector General and Employment Benefits Security Administration, and the Internal Revenue Service – Criminal Investigations and expressed appreciation for the support provided by Senior Trial Attorney Rebecca Pyne, Department of Justice, Organized Crime and Gang Section, Labor-Management Racketeering Unit. Assistant United States Attorneys Jordan Ginsberg, Chief of the Public Corruption Unit, Maria M. Carboni, and Andre Lagarde were in charge of the prosecutions.
Alleged Guatemalan Drug Kingpin Indicted in San Diego; $10 Million Dollar Reward Offered by U.S. Department of StateRead the Press Release
Assistant U.S. Attorney Kevin Mokhtari (619) 546-8402
NEWS RELEASE SUMMARY – March 18, 2022
SAN DIEGO – A federal grand jury indictment was unsealed in San Diego against alleged Guatemalan drug kingpin Eugenio Dario Molina-Lopez, aka “Don Dario,” who is accused of being a leader of a transnational criminal organization known as Los Huistas.
Los Huistas are primarily based in the Huehuetenango region of Northwest Guatemala that borders Mexico. This marks the latest indictment unsealed as part of Operation Guerrilla Unit, a multi-year investigation led by Homeland Security Investigations and the United States Attorney’s Office in San Diego that targets high-level Guatemalan drug traffickers and their suppliers.
The indictment returned on January 29, 2019, charges Molina-Lopez with Conspiracy to Distribute Cocaine Intended for Unlawful Importation and Conspiracy to Distribute Cocaine on Board a Vessel. Molina-Lopez remains a fugitive.
Read the Indictment Wanted Poster - English Wanted Poster - Espanol
The U.S. Department of State also announced today that it is offering a reward of up to $10 million for information leading to the arrest and/or conviction of Molina-Lopez. This award is offered under the U.S. Department of State’s Narcotics Rewards Program (NRP). More than 75 transnational criminals and major narcotics traffickers have been brought to justice under the NRP and the Transnational Organized Crime Rewards Program (TOCRP) since 1986. The Department has paid more than $135 million in rewards to date.
The State Department’s Bureau of International Narcotics and Law Enforcement Affairs manages the NRP in close coordination with Homeland Security Investigations, the Federal Bureau of Investigation, the Drug Enforcement Administration, and other U.S. government agencies.
ALL IDENTITIES ARE KEPT STRICTLY CONFIDENTIAL. Government officials and employees are not eligible for rewards
Operation Guerrilla Unit targets high-level cocaine traffickers operating in northwest Guatemala and their suppliers. This investigation has offered one of the most comprehensive views to date of the inner workings of cocaine trafficking in Guatemala. High-level cocaine traffickers were targeted in a massive probe involving multiple countries, multiple law enforcement agencies around the United States, and a number of federal districts.
“This extraordinary case is one of this district’s most significant, comprehensive and large-scale drug trafficking prosecutions,” said U.S. Attorney Randy S. Grossman. “We are working tirelessly to dismantle cartels by taking down the leaders, one by one.” Grossman thanked the prosecution team, Homeland Security Investigations for spearheading this multi-year investigation, and the many law enforcement agencies that have worked so diligently on this case.
“HSI remains committed to combating the flow of dangerous drugs into the U.S. This includes disrupting and dismantling transnational criminal organizations and their supply networks beyond our borders. The indictment of Molina, the leader of Los Huistas, demonstrates HSI's efforts to target these criminal organizations at their highest levels,” said Chad Plantz, Special Agent in Charge for HSI San Diego. “The reward proposed by the Department of State for Molina’s capture is a significant step forward in the investigation and reflects HSI's holistic approach to countering transnational criminal organizations by collaborating not only with law enforcement partners, but also with our foreign policy and regulatory agencies.”
“The fight against drug cartels in the Eastern Pacific Ocean and the Caribbean Sea requires unity of effort from operational detection, monitoring, and interdiction, to criminal prosecutions by international partners and U.S. Attorneys’ Offices,” said Rear Admiral Brian Penoyer, the Eleventh Coast Guard District commander. “These charges showcase the threat posed by dangerous cartels, gangs and criminal groups that make up extensive organized crime networks.”
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
DEFENDANT
Case Number 19cr0327-DMS
Eugenio Dario Molina-Lopez Age: 57 Huehuetenango, Guatemala
aka “Don Dario,” aka “Molis”
SUMMARY OF CHARGES
International Conspiracy to Distribute Controlled Substances – Title 21, U.S.C., Section 959, 960, 963
Criminal Forfeiture – Title 21, U.S.C., Section 853Conspiracy to Distribute Cocaine on Board a Vessel – Title 46, U.S.C., Section 70503(b), 70506
Maximum Penalty: Life in prison and $10 million fine
AGENCIES
Homeland Security Investigations (HSI)
Customs and Border Protection (CBP)
Federal Bureau of Investigation (FBI)
U.S. Coast Guard
HSI Attaché Guatemala City, Guatemala
HSI Attaché Mexico City Mexico
Department of Justice’s Office of International Affairs
Department of Justice, Office of Enforcement Operations
Department of Justice, Organized Crime and Drug Enforcement Task Force (OCDETF)
Department of Justice's Narcotic and Dangerous Drug Section (NDDS)
Joint Interagency Task Force-South (JIATF-S)
U.S. Department of Treasury, Office of Foreign Assets Control (OFAC)
U.S. Department of State
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Alderson Man Gets Maximum Sentence for Child Pornography OffenseRead the Press Release
BECKLEY, W.Va. – Jack Michael Smith, 35, of Alderson, was sentenced today to 30 years in prison for production of child pornography. Smith was also ordered to serve the remainder of his life on federal supervised release after completion of his prison term and will be required to register as a sex offender.
According to court documents and statements made in court, Smith uploaded child pornography from a computer in West Virginia to Kik Messenger and shared it with others in March 2019. Additional child pornography was shared from Smith’s account in October 2019. A conversation with another Kik user revealed Smith engaged in ongoing sexual abuse of a minor female. Smith admitted that he traveled from West Virginia to Oregon on a regular basis to engage in sexual activity with the minor female and took photographs of the minor female engaged in sexual activity with him. Smith also encouraged his girlfriend, Kimberly Crookshanks, to sexually abuse a toddler and take photographs of the abuse. Crookshanks is awaiting trial in the District of Oregon.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Department of Homeland Security Investigations (HSI). Local law enforcement in Oregon assisted in the investigation.
United States District Judge Frank W. Volk imposed the sentence, finding Smith to be “an extreme danger to society.” Assistant U.S. Attorney Julie White prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, 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.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:20-cr-00193.
###
Akron Man Sentenced to 30 Years in Prison for Distributing Fentanyl that Led to Overdose DeathRead the Press Release
Acting U.S. Attorney Michelle M. Baeppler announced that Quentin D. Watson, 35, of Akron, Ohio, was sentenced on Wednesday, March 16, 2022, by U.S. District Judge Pamela A. Barker to 30 years in prison and ordered to pay $4,503.01 in restitution for the victim’s funeral costs after Watson was convicted at trial of distributing fentanyl that led to a fatal overdose, possession with the intent to distribute methamphetamine and fentanyl and possession of a firearm in furtherance of a drug trafficking crime.
“Thousands of lives have been lost, and so many families have endured crushing pain and suffering due to the opioid epidemic here and across the country,” said Acting U.S. Attorney Michelle M. Baeppler. “Drug dealers who exploit the vulnerabilities that addiction creates should be prepared to serve lengthy prison sentences.”
According to court documents and evidence presented during trial, on June 24, 2020, law enforcement officers responded to an Akron-area residence for a report of a drug overdose. Upon arrival, officers located a deceased individual and began an investigation. It was later determined that the decedent suffered an overdose after ingesting a fentanyl and heroin mixture.
While the investigation into the overdose death was ongoing, Watson was arrested on October 6, 2020, during a traffic stop after officers found that he possessed various amounts of fentanyl, methamphetamine and a 9-millimeter pistol in his vehicle. Law enforcement later completed their investigation into the overdose death and determined that Watson did distribute a fentanyl mixture to the victim who ingested it, overdosed and died.
This case was investigated by the FBI, Akron Police Department, Akron Fire Department, Summit County Medical Examiner’s Office and Ohio Bureau of Criminal Investigation. This case was prosecuted by Assistant United States Attorneys Aaron P. Howell and Christopher J. Joyce.
12 Members of Drug Trafficking Organization Indicted for Distributing Counterfeit Oxycodone Pills Containing Fentanyl, Laundering ProceedsRead the Press Release
PORTLAND, Ore.—12 people are facing federal charges for conspiring to distribute counterfeit oxycodone pills containing fentanyl in the Pacific Northwest, and laundering millions in drug proceeds.
According to court documents, beginning in fall 2021, U.S. Drug Enforcement Administration (DEA) agents based in Portland began investigating a drug trafficking organization led by Luis Antonio Beltran Arrendondo, 32, of Las Vegas, who was suspected of importing counterfeit oxycodone pills containing fentanyl and heroin from Mexico into California, and transporting it to Oregon and Washington State for distribution. Arrendondo formerly resided in Oregon, but later relocated to Las Vegas with his significant other and accomplice Jacqueline Paola Rodriguez Barrientos, 41. Barrientos was also indicted as the chief money launderer for the Arrendondo organization.
As the investigation continued, agents interdicted couriers transporting fentanyl pills and heroin to Oregon. They executed search warrants in Hillsboro, Portland, Tualatin, and Wilsonville, Oregon; Fresno and Hawaiian Gardens, California; and Las Vegas. In total, these enforcement actions resulted in the seizure of approximately 115,000 counterfeit oxycodone pills suspected to contain fentanyl and stamped “M/30”, 41 pounds of methamphetamine, and more than 57 pounds of heroin.
A parallel financial investigation revealed that Barrientos laundered money generated by the Arrendondo organization through the Mazatlán Beauty Salon in Tualatin, Oregon and by buying real estate. The real estate purchases were made with cashier’s checks funded by large cash deposits. Currency Transaction Reports generated by several banks showed that Barrientos made frequent cash deposits ranging from $10,000 to more than $373,000 into accounts held in her name or the name of her salon. These deposits totaled more than $3.5 million during a 9-month period in 2021. Since February 2021, members of the Arrendondo organization purchased a total of nine residential properties in Oregon and Nevada with an estimated total value of more than $4.6 million. All nine properties were purchased outright with no mortgages.
On February 17, 2022, DEA agents arrested Arrendondo and Barrientos at their Las Vegas residence. Agents found and seized two luxury vehicles, several loose receipts documenting high-end retail purchases, credit card statements documenting more than $16,000 spent on tickets to attend a professional boxing match, and other evidence memorializing the couple’s high-end lifestyle.
On March 15, 2022, Arrendondo and Barrientos made their initial appearances in federal court. Both are in custody pending trial. All ten of Arrendondo and Barrientos’ co-conspirators have been arrested and are also pending trial in the District of Oregon.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by DEA with assistance from the FBI, Homeland Security Investigations (HSI), IRS-Criminal Investigation (IRS:CI), Tigard Police Department, and Oregon State Police. It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
An indictment is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty.
Opioid abuse affects communities across the nation. Provisional data from the Centers for Disease Control and Prevention (CDC) indicate that there were more than 100,000 drug overdoses in the U.S. during the 12-month period ending April 2021, an increase of nearly 29% from the previous 12-month period. Synthetic opioids (primarily fentanyl) accounted for more than three quarters of these deaths. Drug overdose continues to be the leading cause of injury or death in the U.S.
Fentanyl is a synthetic opioid 80 to 100 times more powerful than morphine and 30 to 50 times more powerful than heroin. A 3-milligram dose of fentanyl—a few grains of the substance—is enough to kill an average adult male. The availability of illicit fentanyl in Oregon has caused a dramatic increase in overdose deaths throughout the state.
If you or someone you know is in immediate danger, please call 911.
If you or someone you know suffers from addiction, please call the Lines for Life substance abuse helpline at 1-800-923-4357 or visit www.linesforlife.org. Phone support is available 24 hours a day, seven days a week. You can also text “RecoveryNow” to 839863 between 8am and 11pm Pacific Time daily.
Seized Heroin and Counterfeit Oxycodone
Seized Heroin, Counterfeit Oxycodone, and Cash
Seized 2013 Dodge Viper
Seized 2021 Range Rover Sport
17 March 2022
York Man Indicted on Drug Trafficking and Firearm ChargesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Dominique Hightower, age 23, of York, Pennsylvania, was indicted by a federal grand jury on drug trafficking and firearm charges.
According to United States Attorney John C. Gurganus, the indictment alleges that Hightower possessed with the intent to distribute 28 grams and more of cocaine base (crack), and unspecified amounts of heroin, marijuana, cocaine, fentanyl, and oxycodone, on November 3, 2021, in York. The indictment also alleges that Hightower possessed a Glock 22 .40 caliber handgun converted to be fully automatic during and in relation to his drug trafficking activities. According to the indictment, authorities also recovered a money counter, approximately $14,255.27 in United States Currency, multiple loaded magazines and a .40 caliber drum magazine.
The case was investigated by the Bureau of Alcohol Tobacco and Firearms (ATF), the United States Marshals Service, the York County Drug Task Force, the York City Police Department. Assistant U.S. Attorney Jaime M. Keating 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.
If convicted, the maximum penalty under federal law for this offense is life imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
# # #
Winnemucca Man Sentenced to Prison for Firearms Theft ConspiracyRead the Press Release
RENO, Nev. — A Winnemucca man who admitted to his role in a conspiracy to steal multiple firearms from a Federal Firearms Licensee (FFL) was sentenced today to three years and four months in prison, followed by three years of supervised release.
Travis Klyn (41) pleaded guilty to one count of conspiracy to steal, take, or carry away firearms from the premises of an FFL in September 2021. In addition to the prison term, Chief U.S. District Judge Miranda M. Du ordered Klyn to pay $15,309.43 in restitution.
According to court documents, on February 19, 2020, Klyn, co-defendant George Wyatt Elms, and one other individual broke into a hardware store in Winnemucca to steal firearms. They removed a panel in the roof, dropped down approximately ten feet onto a nearby staircase, and then broke through the store’s door. Once inside, Elms used a pickaxe to break into a gun case, from which he and another individual stole 25 firearms. Klyn ran out of the store before the theft of the firearms. Before carrying out the robbery, they had intentionally set a brush fire in a nearby field to divert law enforcement away from the store.
Co-defendant Elms pleaded guilty in November 2021 to one count of theft of firearms from the premises of an FFL. He was sentenced to six years in prison on March 4, 2022.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Patrick Gorman for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) made the announcement.
This case was investigated by the ATF and Winnemucca Police Department. Assistant U.S. Attorneys Megan Rachow and Andolyn Johnson prosecuted the case.
The case 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. For more information about PSN, visit www.justice.gov/usao-nv.
###
Wayland Woman Pleads Guilty to Role in Physical Therapy Clinic Fraud SchemeRead the Press Release
BOSTON – A Wayland woman pleaded guilty today in federal court in Boston in connection with a scheme to defraud an insurance provider for physical therapy services that were not provided to patients.
Anna Barenboym, 46, pleaded guilty to one count of conspiracy to commit mail fraud. U.S. District Court Judge Richard G. Stearns scheduled sentencing for July 28, 2022.
Barenboym was indicted in February 2021 along with co-defendants Gyulnara Bayryshova, Slava Pride and Raya Bagardi.
Barenboym was a licensed physical therapist employed at Brighton Physical Therapy (BPT), a Brighton-based physical therapy clinic owned by Bayryshova. Pride and Bagardi were also employed at BPT as licensed physical therapist assistants. From October 2018 through June 2020, Barenboym and, allegedly, her co-defendants conspired to cause an insurance company to reimburse them for physical therapy services that were not actually provided and/or were not medically necessary and, in some cases, were provided by individuals not licensed to provide the services. Specifically, Barenboym and, allegedly, her co-defendants falsely billed for services purportedly rendered to patients injured in automobile accidents when the services were not actually provided. It is further alleged that BPT paid patients for referrals, referred patients to attorneys to assist with patients’ insurance settlements and accepted kickbacks from those attorneys in return.
Barenboym is the first defendant to plead guilty in the case.
The charge of conspiracy to commit mail fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Anthony DiPaolo, Chief of Investigations of the Insurance Fraud Bureau of Massachusetts; Boston Police Acting Commissioner Gregory Long; and Quincy Police Chief Paul Keenan made the announcement today. Assistant U.S. Attorney Laura J. Kaplan of Rollins’ Organized Crime & Gang Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Washington County man sentenced to 96 months in federal prisonRead the Press Release
CAPE GIRARDEAU - The United States Attorney's Office announced that Eli B. Rawlins, age 35, of Irondale, Missouri, was sentenced to 96 months in federal prison for the offense of possession of a firearm by a convicted felon. Rawlins appeared for his plea and sentencing hearing today before United States District Judge Stephen N. Limbaugh, Jr. at the federal courthouse in Cape Girardeau, Missouri.
According to court documents and statements made in court, on February 6, 2021, a trooper with the Missouri State Highway Patrol was investigating a motor vehicle theft of a Chevrolet Tahoe, when he observed the stolen vehicle parked in the driveway of a residence in Patton, Missouri. The victim of the theft had also reported that her firearm was inside the vehicle when it was stolen. Rawlins was located seated inside a Chevrolet Silverado truck parked in the same driveway. After determining that the victim’s firearm was missing from the stolen Tahoe, the trooper approached Rawlins and inquired about the victim’s firearm. Rawlins admitted that he had removed the gun from the Tahoe and placed it inside the Silverado, where it was recovered by the trooper.
Rawlins has prior felony convictions for Assault in the Third Degree in Madison County and Burglary in the Second Degree in St. Francois County and is therefore prohibited from possessing firearms.
This case was investigated by the Missouri State Highway Patrol, the Bollinger County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Julie Hunter handled the prosecution for the government.
United States Attorney for the Middle District of Pennsylvania Reappointed by Order of the District Court JudgesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that John C. Gurganus, United States Attorney for the Middle District of Pennsylvania, was reappointed as the United States Attorney by order of the District Court Judges effective March 17, 2022. Mr. Gurganus was initially appointed United States Attorney by order of United States Attorney General Merrick B. Garland on November 17, 2021, for one hundred twenty days or until a Presidential appointment was made, whichever occurs first. That appointment expired on March 16, 2022, and this new appointment by the District Court Judges appoints Mr. Gurganus as United States Attorney until the vacancy is filled by the President. Chief Judge Matthew W. Brann administered the oath of office to Mr. Gurganus yesterday in Williamsport, Pennsylvania.
Mr. Gurganus began his 33-year legal career with the United States Department of Justice through the Attorney General’s Honors Program in 1988, as a Trial Attorney with the Antitrust Division in the New York City Field Office. In 1989, he was appointed an Assistant United States Attorney for the Middle District of Pennsylvania, and has been based in the Scranton, Pennsylvania office since that time. During his tenure with the U.S. Attorney’s Office, Mr. Gurganus has held a number of positions including First Assistant U.S. Attorney, Criminal Chief, Deputy Criminal Chief, and Lead Task Force Attorney for the Organized Crime Drug Enforcement Task Force.
His experience includes the prosecution of a wide variety of cases, including public corruption, drug trafficking, violent crimes, tax evasion, child pornography, extortion, kidnapping, firearms, and fraud crimes. Mr. Gurganus received two Department of Justice Director’s Awards for Superior Performance as an Assistant U.S Attorney: one for work in prosecuting drug overdose cases, and the other for obtaining a guilty verdict for an individual who attempted to provide material support to a terrorist organization.
Before joining the Department of Justice, Mr. Gurganus served as a law clerk to the late Honorable Richard P. Conaboy, United States District Court Judge, Scranton, Pennsylvania. He earned a B.A. from Villanova University in 1983, and received his law degree in 1986 from the University of Notre Dame Law School. He resides in South Abington Township, Pennsylvania.
###
Union County Man Charged with Illegally Possessing Firearm and Drug TraffickingRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man was charged today with illegally possessing a firearm and possession of controlled substances with intent to distribute, U.S. Attorney Philip R. Sellinger announced.
Shaquan Little-Bethea, 28, of Elizabeth, New Jersey, is charged by complaint with one count of being a previously convicted felon in possession of a firearm and ammunition and one count of possession with intent to distribute controlled substances. Little-Bethea will have his initial appearance at a date to be determined.
According to documents filed in this case and statements made in court:
Law enforcement officers received information that Little-Bethea was distributing controlled dangerous substances in Elizabeth. On June 2, 2022, Little-Bethea arranged to meet with an undercover law enforcement agent to sell him the drugs. Just before the meeting, however, Little-Bethea drove away in his car before fleeing on foot. After a pursuit, law enforcement officers apprehended Little-Bethea and recovered an H&K, model VP9, 9mm semi-automatic pistol, with 16 rounds of ball ammunition, along with 38 clear vials containing suspected crack cocaine and 17 glassine envelopes of suspected heroin.
The narcotics offense carries a maximum potential penalty of 20 years in prison, and a fine of $1 million. The count of being a felon in possession of a firearm and ammunition carries a maximum potential penalty of 10 years in prison and a fine of $250,000.
U.S. Attorney Sellinger credited the members of the Elizabeth Police Department, under the direction of Director Earl J. Graves and Police Chief Giacommo Sacca; and special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Jeffrey L. Matthews, Newark Field Division, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Dong Joo Lee of the Narcotics/Organized Crime and Drug Enforcement Task Force Unit and Assistant U.S. Attorney Matthew DeSaro of the General Crimes Unit, in Newark.
The charges and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. Attorney’s Office Files Lawsuit Against Flint Neurological Centre P.C. for Violating the Rights of Individuals Who Have DisabilitiesRead the Press Release
FLINT, MI -- The U.S. Attorney’s Office for the Eastern District of Michigan today announced that it has filed a lawsuit against Flint Neurological Centre P.C., alleging that the medical practice violated Title III of the Americans with Disabilities Act by refusing to provide auxiliary aids and services required to ensure effective communication with patients who are deaf or hard of hearing, such as sign language interpreters.
“The ADA protects fundamental rights of individuals with disabilities, including the ability to access health care services. My office is committed to protecting those rights,” said Dawn Ison, United States Attorney for the Eastern District of Michigan. “No one should be denied meaningful access to health care services, including the ability to exchange critical information with their medical providers.”
The complaint, filed in the Eastern District of Michigan, alleges that Flint Neurological Centre has a long history of failing to provide aids and services necessary to ensure effective communication with patients who are deaf or hard of hearing, including a previous investigation by the Michigan Department of Civil Rights. The complaint further alleges that Flint Neurological Centre failed to provide sign language interpreters or any other communication aids to five patients, in some cases, over several years of treatment. For one patient, the complaint alleges that his relative would travel 200 miles across state to attend medical appointments, because Flint Neurological Centre repeatedly failed to provide a sign language interpreter and important medical information could not be communicated without her assistance.
Title III of the ADA prohibits discrimination against people with disabilities by public accommodations, such as the professional office of health care provider. Public accommodations must allow people with disabilities the full and equal enjoyment of their goods, services, and facilities. This obligation requires the provision of auxiliary aids and services, such as sign language interpreters, when necessary to effectively communicate with patients who are deaf or hard of hearing
The Civil Rights Unit of the U.S. Attorney’s Office for the Eastern District of Michigan was established in 2010 with the mission of prioritizing federal civil rights enforcement. For more information on the Office’s civil rights efforts, including a copy of the complaint, please visit https://www.justice.gov/usao-edmi/programs/civil-rights. ADA complaints concerning Flint Neurological Centre or any other entity may be emailed to [email protected] or by contacting the U.S. Attorney's Office’s Civil Rights Hotline at (313) 226-9151.
More information about the ADA is available at the Justice Department’s toll free ADA Information line at (800) 514 0301 or (800) 514 0383 (TTY) and on the ADA website at www.ada.gov. Information about the Justice Department’s Barrier-Free Health Care Initiative to ensure that people who have disabilities, including those who are deaf or hard of hearing, have equal access to medical services is available at www.ada.gov/usao-agreements.htm.
U.S. Attorney Announces New COVID-19 Fraud Strike ForceRead the Press Release
Spokane, Washington – Vanessa R. Waldref, the U.S. Attorney for the Eastern District of Washington, announced today the creation of a new, interagency COVID-19 Fraud Strike Force to combat fraud arising from the COVID-19 pandemic. U.S. Attorney Waldref also announced the first criminal charges filed in connection with work done by the COVID-19 Fraud Strike Force.
On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act provided a number of programs through which eligible small businesses could request and obtain relief funding intended to mitigate the economic impacts of the pandemic for small and local businesses. One such program, the Paycheck Protection Program (PPP), provided government-backed loans to small businesses which could be forgiven so long as the proceeds were used for payroll and other eligible expenses. Another program, the Economic Injury Disaster Loan (EIDL) program, provided low interest loans that could be deferred until the conclusion of the pandemic to provide “bridge” funding for small businesses to maintain their operations during shutdowns and other economic circumstances caused by the pandemic. The PPP and EIDL programs have provided billions of dollars in aid, the vast majority of which have not been paid back, including hundreds of millions of dollars disbursed within Eastern Washington.
In February 2022, U.S. Attorney Waldref and the U.S. Attorney’s Office (USAO) began working with federal law enforcement agencies to create and launch a COVID-19 Fraud Strike Force that would leverage partnerships between different agencies to aggressively investigate and prosecute fraud against COVID-19 relief programs in Eastern Washington. The Strike Force consists of agency representatives from the USAO, Small Business Administration (SBA) Office of Inspector General (OIG), Federal Bureau of Investigation (FBI), U.S. Department of the Treasury Inspector General for Tax Administration (TIGTA), U.S. Secret Service, U.S. Homeland Security Investigations, U.S. Department of Veterans Affairs OIG, General Services Administration OIG, Internal Revenue Service, Department of Energy OIG, and others.
“We created the COVID-19 Fraud Strike Force because it is critical to the strength and safety of our community in Eastern Washington that we all work together to combat pandemic-related fraud,” said U.S. Attorney Waldref. “COVID-19 relief programs, which were essential to lifting our economy and supporting our families, quickly ran out of money due to the number of people and businesses that requested funding. It is not fair that some deserving small businesses could not obtain funding to keep their businesses in operation during the COVID-19 pandemic, when others abused the programs. The Strike Force is one way to ensure that limited resources are provided to deserving local businesses that provide vital services for our communities. I greatly appreciate the hard work and esprit de corps of so many talented agents and agencies that are contributing to our collective efforts.”
U.S. Attorney Waldref also announced the first filing of federal charges in connection with the work of the COVID-19 Fraud Strike Force. On March 16, 2022, a federal grand jury returned an Indictment charging Roshon Edward Thomas, age 52, of Spokane, Washington, with two counts of fraud. The Indictment alleges that Thomas fraudulently applied for and received a $32,400 federal loan through the SBA’s EIDL program in the name of a fictitious business. Each count carries a maximum sentence of 20 years in federal prison.
“I commend the stellar investigative work on this case performed by SBA OIG, FBI, and TIGTA,” said U.S. Attorney Waldref. “We will continue to work together with our law enforcement partners to vigorously prosecute those who abuse and misuse COVID-19 relief funding.”
Two Sentenced in Schemes to Defraud Home Improvement StoresRead the Press Release
PROVIDENCE, R.I. – Two Providence men who admitted to participating in a scheme to defraud credit card companies and home improvement stores out of more $160,000 were sentenced to federal prison today, announced United Sates Attorney Zachary A. Cunha.
Jose Brens, 40, was sentenced to fifteen months in prison and ordered to pay restitution totaling $140,578. He pleaded guilty on December 13, 2021, to conspiracy to commit access device fraud and six counts of access device fraud. Jose R. Delarosa, 45, was sentenced to twelve months and one day of incarceration and ordered to pay restitution in the amount of $20,141. He pleaded guilty on December 16, 2021, to conspiracy to commit access device fraud and four counts of access device fraud.
At the time of their guilty pleas, Brens and Delarosa admitted that they and others unlawfully obtained credit card information of other individuals, and used that information to purchase construction tools and building supplies from at least six Home Depot and Lowes stores in Rhode Island and Massachusetts.
According to charging documents, the scheme employed by Brens, Delarosa, and others came to light when, in September 2018, a Smithfield resident contacted the Smithfield Police Department to report that his credit card information had been used without his permission to purchase $2,100 worth of construction items and tools at a nearby Home Depot. A joint investigation with the United States Secret Service determined that Brens, Delarosa, and others were working together to carry out this and similar schemes in multiple stores, repeatedly making purchases of between $1,000 and $4,000.
The cases were prosecuted by Assistant U.S. Attorneys William J. Ferland and Terrence P. Donnelly.
###
Two Rhode Island Men Indicted in Large-Scale Fentanyl Trafficking ConspiracyRead the Press Release
BOSTON – Two Rhode Island men have been indicted by a federal grand jury for their alleged roles in a fentanyl trafficking conspiracy that spanned across Massachusetts, Rhode Island and New York.
Jasdrual Perez, 33, of Cranston, R.I., and Erik Ventura, 33, of Providence, R.I., were each indicted on one count of conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl. The defendants were arrested and charged by criminal complaint on Feb. 14, 2022, and have remained in custody since.
According to the charging documents, in September 2019, an investigation began into a drug trafficking organization (DTO) headed by Perez. The investigation revealed that Perez, Ventura and others allegedly conspired to distribute large quantities of controlled substances, including fentanyl pills, to customers in numerous locations across Massachusetts, Rhode Island and New York. It is further alleged that the DTO manufactured fentanyl pills for distribution. In July 2021, over 1,000 counterfeit oxycodone pills suspected to contain fentanyl, allegedly attributable to the Perez DTO, were seized
According to court documents, on Feb. 7, 2022, a search of Perez’s residence resulted in the seizure of two pill presses, a gallon-sized freezer bag suspected to contain fentanyl pills, more than 50,000 counterfeit oxycodone pills suspected to contain fentanyl and multiple marijuana plants. In total, over 10 kilograms of suspected fentanyl was seized.
The charge of conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl provides for a mandatory minimum sentence of 10 years and up to life in prison, at least five years and up to a lifetime of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins, Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service, Criminal Investigations, Boston Field Office, made the announcement today. Special assistance in the investigation was provided by the United States Attorney’s Office for the District of Rhode Island; the Federal Bureau of Investigation, Providence Field Office; the Drug Enforcement Administration, Providence Field Office; the Rhode Island State Police Department; and the Cranston, Warwick and West Warwick Police Departments. Assistant U.S. Attorneys Craig E. Estes and Lindsey E. Weinstein of Rollins’ Narcotics & Money Laundering Unit are prosecuting the case.
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Massachusetts Police Officers Receive Attorney General's Award for Distinguished Service in PolicingRead the Press Release
BOSTON – Two Massachusetts Police Officers were among the 18 law enforcement officers from across the Nation recognized today by Attorney General Merrick Garland at the Fifth Annual Attorney General’s Award for Distinguished Service in Community Policing.
Attorney General Garland announced the award recipients today in Atlanta. Officer Danielle St. Peter of the Barnstable Police Department and School Resource Officer Tom Hart of the Walpole Police Department were selected and honored for their exceptional work in Innovations in Community Policing.
“Officers St. Peter and Hart are exemplary representatives of our law enforcement community, and their selflessness and commitment to serving their communities is what earned them today’s honor,” said United States Attorney Rachael S. Rollins. “I had the privilege of speaking with both of their Police Chiefs today to personally offer my congratulations. Chief Sonnabend and Chief Kelleher are each incredibly proud of their Officers, as they should be. The dedication to public safety displayed by these two Officers is representative of the many men and women across the Commonwealth who honorably protect and serve our communities everyday as police officers. On behalf of all their federal law enforcement partners in the District of Massachusetts, I want to publicly thank Officer St. Peter and Officer Hart for their service and congratulate them on this tremendous honor.”
“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,” said Attorney General Garland. “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.”
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.
Taney County Couple Sentenced for Sexually Assaulting Children, Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A Merriam Village, Missouri, couple was sentenced in federal court today for sexually assaulting two young children to produce child pornography, and for receiving and distributing child pornography.
Mark John Millman, 37, a citizen of Great Britain and a legal alien resident, and his wife and co-defendant, Tara Sau Millman, 42, were sentenced in separate hearings before U.S. District Judge Brian C. Wimes. Mark and Tara Millman each were sentenced to 35 years in federal prison without parole. The court also sentenced them to spend the rest of their lives on supervised release following incarceration.
Both Millmans pleaded guilty to one count of the sexual exploitation of minors and one count of receiving and distributing child pornography. Both Mark and Tara Millman have been in federal custody since their arrest and have been detained without bail.
The Millmans admitted that Mark used Tara’s iPhone to record video of her performing a sexual act on a 2-year-old child, identified in court documents as John Doe. Mark Millman admitted that he sexually assaulted a 4-year-old child victim, identified in court documents as Jane Doe, which was also recorded on video. Investigators found images and videos of child pornography on the Millmans’ iPhones, including files that depicted the Millmans sexually assaulting both child victims.
Mark and Tara Millman each admitted they used a social media application to share child pornography over the internet, and that they viewed child pornography together.
The investigation began when agents with Homeland Security Investigations in San Diego, California, began investigating users of a cloud storage platform (identified in court documents as “Cloud Platform A”). The cloud platform provides encrypted, cloud-based services that enable private, secure online storage, communication, and collaboration for business and individuals. During the investigation, the agents accessed a weblink to an encrypted chat room with approximately 145 registered users. Files containing child pornography were uploaded/posted by participants in the chat room. Many users were actively involved in the distribution of child pornography. The child pornography distributed within the chat included 129 video files, 324 image files, and 43 cloud-storage weblinks which contained files of child pornography.
Mark Millman’s email was identified among the registered users of the chat room, and a search warrant was executed at the Millmans’ residence in Taney County, Mo., on Jan. 28, 2021.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by Homeland Security Investigations and the Southwest Missouri Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Sylvania Man Sentenced to 30 Years in Prison for Sexual Exploitation of a Child and Receipt, Distribution and Possession of Child PornographyRead the Press Release
Acting U.S. Attorney Michelle M. Baeppler announced that Holden Gallagher, 29, of Sylvania, Ohio, was sentenced on Wednesday, March 16, 2022, by U.S. District Judge James G. Carr to 30 years in prison and lifetime supervised release following prison, after Gallagher pleaded guilty to sexual exploitation of a child, receipt and distribution of child pornography, and possession of child pornography.
“The Justice Department and law enforcement in this region will work tirelessly to deter and prosecute those why prey upon our children,” said Acting U.S. Attorney Michelle M. Baeppler. “Mr. Gallagher, a repeat offender, has earned this lengthy prison sentence and will no longer be able to abuse others.”
“Criminal misconduct with the intent to exploit children is reprehensible,” said FBI Special Agent in Charge Eric B. Smith. “The investigative work of the FBI underscores our duty to protect children from heinous individuals. Our partnerships with federal and state investigators in concert with local agencies continue to make an impact in our communities to thwart predatory behavior.”
According to court documents, on July 31, 2015, law enforcement investigators executed a federal search warrant at a Sylvania residence suspected of sharing digital files of child pornography. During the execution of the warrant, investigators obtained several electronic devices, including a laptop and hard drive.
Investigators searched the electronic devices and discovered that they contained numerous files of child pornography. Additionally, investigators determined that some of the images contained a depiction of a minor known to Gallagher. It was also determined that Gallagher had corresponded with the minor victim and gotten the minor to produce images of child pornography.
At the time of the offense conduct, Gallagher was a registered sex offender following a 2011 conviction for gross sexual imposition of a minor for which Gallagher was still on probation.
This case was investigated by the Federal Bureau of Investigation and state and federal investigators on the Child Exploitation and Human Trafficking Task Force, including the lead investigator from Defiance County Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorneys Tracey Ballard Tangeman and Angelita Cruz Bridges.
Stoughton Man Arrested for $400,000 COVID-Relief FraudRead the Press Release
BOSTON – A Stoughton man was arrested and charged today in connection with allegedly filing a fraudulent loan application in order to obtain over $400,000 in Paycheck Protection Program (PPP) loan funds.
Adley Bernadin, 44, was charged with one count of wire fraud. Bernadin was released on conditions following an initial appearance in federal court in Boston before U.S. District Court Magistrate Judge Marianne B. Bowler this morning.
According to the criminal complaint, in May 2020, Bernadin submitted a fraudulent application on behalf of a purported home health care company for a PPP loan of over $400,000. It is alleged that in the application, which he submitted through a Small Business Administration approved lender, Bernadin misrepresented information about the purported home health care company’s employees and payroll expenses and falsified a tax form in an effort to qualify the business for the PPP loan. For example, Bernadin allegedly reported that the purported home health care business had a monthly payroll of $175,200, however, records do not support this representation.
After receiving the PPP funds, Bernadin allegedly used the money to make home mortgage payments and to write checks to individuals with whom he is believed to have a personal relationship.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of forgivable loans to small businesses for job retention and certain approved expenses, through the PPP.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss from the scheme, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and William A. Kalb, Special Agent in Charge of the U.S. Treasury Inspector General for Tax Administration, Northeast Field Division, made the announcement today. Assistant U.S. Attorney Benjamin A. Saltzman of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
St. Albans Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – A St. Albans man was sentenced today to two years in prison for a federal drug crime.
According to court documents, on September 23, 2020, a trooper with the West Virginia State Police attempted to stop Joshua James Lambert, 33, who was riding a motorcycle with improperly functioning signal devices on Route 25 near Institute. Lambert tried to flee the scene on the motorcycle, reaching speeds of up to 90mph. When Lambert attempted to make a right-hand turn, he lost control of the motorcycle and wrecked. Lambert then fled on foot with a small black pistol in his hand, which he threw to the ground. The trooper caught Lambert and took him into custody. In searching Lambert, the trooper found several quantities of suspected controlled substances wrapped in small packages which Lambert admitted he intended to sell. The substances were tested at the West Virginia State Police Forensic Laboratory and found to contain methamphetamine and fentanyl. The unloaded Raven Arms, MP-25, .25 caliber semi-automatic pistol which Lambert had thrown to the ground was also recovered.
United State Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the West Virginia State Police.
United States District Judge Irene C. Berger imposed the sentence. Assistant U.S. Attorney Gregory McVey prosecuted the case.
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. 2:21-cr-00192.
###
Springfield, Illinois Man Pleads Guilty to Distributing Methamphetamine and Possession with Intent to Distribute Five Grams or More of Actual MethamphetamineRead the Press Release
SPRINGFIELD, Ill. – A Springfield, Illinois man, Michael Bale, 44, of the 4000 block of Sandhill Road, pleaded guilty on March 16, 2022, to distributing methamphetamine on two occasions and possessing with intent to distribute five grams or more of methamphetamine (actual). Sentencing for Bale has been scheduled for July 20, 2022, at the U.S. Courthouse in Springfield, Illinois, before Senior U.S. District Judge Richard Mills.
In court before U.S. Magistrate Judge Tom Schanzle-Haskins, Bale admitted that on both August 21, 2019, and September 20, 2019, he knowingly distributed methamphetamine and that on December 1, 2019, he possessed with the intent to distribute more than 5 grams of methamphetamine (actual), a Schedule II controlled substance.
Bale has been in the custody of the U.S. Marshals since his arrest, and he remains in custody pending sentencing.
Bale faces statutory penalties of up to life in prison, up to an $8,000,000 fine, and up to a life term of supervised release.
The case investigation was conducted by the Drug Enforcement Administration, the Central Illinois Enforcement Group, the Springfield Police Department, and the Athens Police Department. Assistant U.S. Attorney Matthew Z. Weir is representing the government in the prosecution.
Springdale Man Sentenced to over 9 Years in Federal Prison for Drug TraffickingRead the Press Release
FAYETTEVILLE – A Springdale man was sentenced yesterday to 110 months in prison followed by three years of supervised release on one count of Possession with the Intent to Distribute Methamphetamine. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court documents, during the month of October 2020, detectives with the 4th Judicial District Drug Task Force (DTF) were investigating, Kenneth Wayne Efurd, age 42, for drug trafficking. On October 22, 2020, detectives with the DTF conducted a parole search at Efurd’s residence in Springdale. During the search detectives located a black bag which contained approximately 116.2 grams of suspected methamphetamine, 2.2 grams of suspected methamphetamine, 1.4 grams of suspected heroin, 0.1 gram of suspected heroin, 5 doses of suspected LSD, a digital scale, $2,127.00 and drug paraphernalia.
The suspected methamphetamine was sent to the DEA Laboratory in Miami, Florida, where it tested positive for methamphetamine.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Fourth Judicial District Drug Task Force investigated the case.
Assistant U.S. Attorney David Harris prosecuted the case.
Springdale Man Sentenced to over 12 Years in Federal Prison for Drug TraffickingRead the Press Release
FAYETTEVILLE – A Springdale man was sentenced on March 14, 2022, to 151 months in prison followed by three years of supervised release on one count of Possession with Intent to Distribute Methamphetamine. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court documents, on May 13, 2021, the 4th Judicial District Drug Task Force (DTF) received information that Seth Dalton Adams, age 26, was selling and possessing a large amount of Methamphetamine. Detectives with the DTF made contact with Adams at his residence in Springdale where he was observed smoking methamphetamine inside his garage. A search of the residence was conducted resulting in detectives locating a vacuum seal bag that contained ten (10) individually wrapped bags, each containing approximately one (1) ounce of methamphetamine, two firearms, drug paraphernalia and a drug ledger.
The suspected methamphetamine was sent to the Department of Homeland Security Laboratory in Savannah, Georgia, where it tested positive for methamphetamine.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The 4th Judicial District Drug Task Force investigated the case.
Assistant U.S. Attorney David Harris prosecuted the case.
This case was prosecuted as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
South Beloit Man Pleads Guilty to Federal Child Pornography ChargeRead the Press Release
ROCKFORD — A South Beloit, Ill., man has pleaded guilty to a federal charge of transportation of child pornography.
DAVID WITTWER, 51, entered the guilty plea Wednesday before U.S. District Judge John Z. Lee in Rockford. Wittwer admitted in a plea agreement that on Feb. 24, 2016, he used his computer to post images of child pornography to a website. Wittwer further admitted that he possessed a tablet device and cellphone that contained more than 600 images and videos of child pornography.
The conviction carries a mandatory minimum sentence of five years in federal prison, and a maximum of 20 years. Judge Lee set sentencing for July 27, 2022, at 1:30 p.m.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Angie Salazar, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations. Valuable assistance was provided by the South Beloit Police Department and the Winnebago County Sheriff’s Office. The government is represented by Assistant U.S. Attorney Michael D. Love.
Sioux City Man Pleads Guilty to Sexually Assaulting a ChildRead the Press Release
A Sioux City man who sexually assaulted a child pled guilty March 10, 2022, in federal court in Sioux City. Juan Pablo Hernandez, age 44, from Sioux City, Iowa was convicted of aggravated sexual abuse of a child.
At the plea hearing, Hernandez admitted to driving from South Sioux City, Nebraska to Sioux City with a minor under the age of 12 to sexually assault the minor.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Hernandez remains in custody of the United States Marshal pending sentencing. Hernandez faces a possible maximum sentence of life imprisonment, a $250,000 fine, and 5 years up to life of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Ron Timmons and was investigated by the Sioux City Police Department and Homeland Security Investigations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4093.
Follow us on Twitter @USAO_NDIA.
Sheldon Man Sentenced to Federal Prison for Conspiring to Distribute Methamphetamine and Possessing a FirearmRead the Press Release
A Sheldon man who sold large amounts of methamphetamine received through the mail was sentenced on March 11, 2022, to more than 12 years in federal prison.
Scott Demers, age 39, from Sheldon, Iowa was convicted of conspiracy to distribute methamphetamine and possession of a firearm in furtherance of drug trafficking. Demers admitted to receiving large quantities of methamphetamine through the mail and distributing it. Demers also admitted to possessing a firearm in furtherance of trafficking methamphetamine.
Demers was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Demers was sentenced to 153 months’ imprisonment. He must also serve a 4-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Ron Timmons and investigated by the United States Postal Inspection Service and the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Woodbury County Sheriff's Office; the Sioux City Police Department; the South Sioux City 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 21-4019.
Follow us on Twitter @USAO_NDIA.
Serial Offender Sentenced to 9 Years for Medical Frauds Causing More Than $3.5 Million in LossesRead the Press Release
SAN FRANCISCO – Joseph Albert Corey was sentenced in federal court today to 108 months for two separate fraud schemes causing more than $3.5 million in losses, announced United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair. The sentence was handed down by United States District Judge Edward M. Chen.
Corey, 57, and last known to live in or near Los Angeles, was initially charged in 2019 with depositing fraudulent checks into accounts opened under the false name “Dennis Dupont.” Posing as Dennis Dupont, Corey opened bank accounts for two fake companies, “Medical Practice Management” and “Medtronic Inc.” He funded those accounts by depositing unauthorized checks drawn on a bank account owned by a legitimate company, the government’s sentencing memo describes. Corey wrote checks on the victim company’s account totaling more than $370,000. When he successfully deposited a check, Corey laundered the proceeds by using the stolen money to purchase gold coins from a precious metals company. He picked up the gold coin shipments from rented mailboxes in the Bay Area.
Once arrested, Corey entered a guilty plea in November 2019 to a federal charge of mail fraud. Corey, however, absconded from his February 2020 sentencing hearing.
While a fugitive, Corey continued to commit a second fraud scheme that involved a conspiracy to defraud financial lenders. The conspiracy was underway as early as March 2019 and continued through October 2020. Corey admitted in his current plea agreement that as part of the scheme he assumed the identities of multiple medical doctors. Corey would impersonate a doctor to obtain a loan ostensibly to purchase an expensive medical device from a legitimate supply company. Once the loan was authorized, Corey directed the lender to deposit the loaned purchase funds into a specific bank account. Unbeknownst to the lender, Corey earlier had opened that account in the name of, or in a name similar to, the medical device supply company. When the lender deposited the funds into the account, Corey appropriated the money. Corey then assumed another set of false identities and used the funds to purchase gold from various precious metals dealers, thus obscuring the trail of the stolen loan money.
Corey remained a fugitive until he was detained by Mexican authorities in January 2021 and deported from Mexico to the United States. According to a government filing, when Corey was arrested in Mexico he possessed scores of false identifications, including one identifying him as a “special agent” of the CIA.
Corey admitted in his plea agreement that he defrauded more than 10 victims in this second scheme and caused losses of at least $3.5 million.
In addition to the 108 month prison sentence, United States District Judge Edward M. Chen ordered Corey to pay restitution. The sentence also included a three year period of supervision following Corey’s release from prison. Corey was in custody at the sentencing hearing and begins serving his sentence immediately.
Mohit Gourisaria is the Assistant U.S. Attorney who prosecuted the case, with the assistance of Maddi Wachs, Maribel Gallegos, and Kay Konopaske. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Serial Child Sex Offender Sentenced to Life in Prison for Child Exploitation OffensesRead the Press Release
A federal judge sentenced a Texas man today to life in prison without the possibility of parole for child exploitation offenses involving an 11-year-old, including sex trafficking, production and possession of child pornography, and committing a felony involving a minor while registered as a sex offender.
According to court documents and evidence presented at trial, Martin Renteria, 52, of Midland, who had committed similar crimes in the past, enticed an 11-year-old into engaging in sexual acts on multiple occasions. Renteria purchased expensive gifts for the child in exchange for the sexual acts, and at least one occasion, he also recorded a video of one of the sexual acts.
“The successful prosecution of this serial child abuser demonstrates the Department of Justice’s unwavering commitment to targeting repeat and dangerous sexual offenders against children, however they commit their crimes,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “We will continue to work closely with our federal, state, and local law enforcement partners to identify, prosecute, and hold accountable those who exploit children.”
“Today’s sentencing of Martin Renteria – a child predator who again inflicted serious pain and caused harm despite being an individual required to register as a sex offender – demonstrates our commitment to assist our local law enforcement partners to ensure serial predators are brought to justice,” said U.S. Attorney Ashley C. Hoff of the Western District of Texas. “These types of crimes leave a wake of destruction and brokenness for both the child victims and their families. I wish to thank the attorneys with the Child Exploitation and Obscenity Section of the U.S. Department of Justice for their invaluable assistance in this case.”
On Nov. 10, 2021, a jury convicted Renteria of production of child pornography, sex trafficking of a child, possession of child pornography, and committing a new crime against a child while registered as a sex offender.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division and U.S. Attorney Ashley C. Hoff for the Western District of Texas made the announcement.
The Midland Police Department investigated the case, with computer forensics assistance from the Justice Department’s High Technology Investigative Unit.
Trial Attorneys Alicia A. Bove and Austin M. Berry of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Monica L. Daniels of the Western District of Texas are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Scott Township Man Convicted of Trafficking MethamphetamineRead the Press Release
PITTSBURGH, PA - After deliberating six hours, a federal jury found James France guilty of one count of distribution or possession with the intent to distribute fifty grams or more of methamphetamine, United States Attorney Cindy K. Chung announced today.
James France, age 60, formerly of Scott Township, Pennsylvania, was tried before Chief United States District Judge Mark R. Hornak in Pittsburgh, Pennsylvania.
According to Assistant United States Attorney Brendan T. Conway, who prosecuted the case, the evidence presented at trial established that on June 29, 2016, France sold approximately 55 grams of pure methamphetamine to a confidential informant. At the trial, the government also presented evidence that France, who is a former corporate lawyer, obtained large quantities of methamphetamine from California, shipped the methamphetamine to the Pittsburgh area concealed in teddy bears and candles, and then re-distributed the methamphetamine. The Scott Township Police Department executed a search warrant at France’s residence on Bower Hill Road on July 29, 2016, that led to the recovery of more than 330 grams of pure methamphetamine, more than $8,000 in cash, and other evidence of France’s involvement in large-scale methamphetamine trafficking.
France was acquitted of conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine. France was also acquitted of possession with intent to distribute 50 grams or more of methamphetamine both on or about July 29, 2016.
Judge Hornak scheduled sentencing for a date to be determined The law provides for a total sentence of not less than ten years in prison and up to life, a fine of $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court remanded to the custody of the U.S. Marshals Service.
The Drug Enforcement Administration and the Scott Township Police Department conducted the investigation that led to the prosecution of France.
Saratoga County Man Sentenced to 210 Months for Possession of Child PornographyRead the Press Release
ALBANY, NEW YORK – Daniel Porrazzo, a/k/a “lickndipinu,” age 52, of Stillwater, New York, was sentenced today to 210 months in prison for possessing child pornography. The announcement was made by United States Attorney Carla B. Freedman and Matthew Scarpino, Acting Special Agent in Charge of Homeland Security Investigations (HSI), Buffalo Field Office.
As part of his previously entered guilty plea, Porrazzo admitted that on June 2, 2016, he possessed approximately 2,682 images and 43 videos of child pornography on two laptop computers, and that the child pornography he possessed included depictions of children under age 12 being sexually abused.
Senior United States District Judge Thomas J. McAvoy also imposed a 15-year term of supervised release, which will begin after Porrazzo is released from prison. Porrazzo will also be required to register as a sex offender.
The case was investigated by HSI and prosecuted by Assistant U.S. Attorney Joshua R. Rosenthal as part of Project Safe Childhood.
Project Safe Childhood is a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
San Jose Man and Fairfield Woman Indicted for Trafficking Methamphetamine in Solano CountyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a five-count indictment today against Esteban Gerardo Ramirez, 31, of San Jose, and Marsha Garma Phillips, 45, of Fairfield, charging them with conspiracy to distribute methamphetamine and related methamphetamine trafficking charges, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between Sept. 13, 2021, and March 8, 2022, Phillips sold over 5 pounds of methamphetamine to an FBI confidential source. Surveillance and further investigation revealed Phillips was supplied by Ramirez, whom she would meet in a parking lot in Fremont to pick up methamphetamine, before returning to Fairfield to sell it.
This case is the product of an investigation by the FBI’s Solano County Violent Crimes Task Force and the Fairfield Police Department. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.
If convicted, each defendant faces a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Salem Man Sentenced to 63 Months for Conspiracy to Distribute MethamphetamineRead the Press Release
CONCORD - Brian Perez, 31, of Salem, was sentenced to 63 months in federal prison for conspiracy to distribute methamphetamine, United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on May 11, 2021, agents opened a suspicious package sent via UPS from the greater Los Angeles, California area to an apartment at an address in Salem. The box contained over two kilograms of methamphetamine. Additional shipping records revealed that since April 10, 2021, this was the ninth package sent from the Los Angeles area to the same address in Salem.
On May 19, 2021, investigators intercepted another suspicious UPS package destined for the Salem address. After obtaining a search warrant, they discovered over 2.2 kilograms of 100 percent pure methamphetamine. The contents were replaced with an innocuous filler and an undercover officer delivered the package to the front foyer of the Salem address. Later that day agents observed a van arrive at the Salem address. Perez entered the foyer and examined the package. Perez then left the foyer and entered the van. Investigators detained Perez and his passenger and observed the package in the van. Perez had a receipt for parcel that was sent to Miami Beach. The parcel was located and searched pursuant to a warrant. Inside the package were orange pills containing approximately 363 grams of methamphetamine.
Perez previously pleaded guilty on December 6, 2021.
“Methamphetamine is a dangerous drug that is causing increasing harm in communities throughout New Hampshire,” said U.S. Attorney Farley. “When methamphetamine is distributed in counterfeit pills it creates an even greater risk to public health and safety. We are working closely with our law enforcement partners to identify methamphetamine traffickers in the Granite State and hold them responsible for their unlawful conduct.”
“As methamphetamine seizures are on the rise, DEA stands committed to keeping this highly addictive drug out of New Hampshire,” said DEA Special Agent in Charge Brian D. Boyle. “Today’s sentence not only holds Mr. Perez accountable for his crimes but serves as a warning to those who attempt to ship this poison to the Granite State.”
This matter was investigated by the Drug Enforcement Administration, New Hampshire State Police, and Salem Police Department. The case was prosecuted by Assistant U.S. Attorney Joachim H. Barth.
###
Salem Area Drug Trafficker and Ghost Gun Manufacturer Indicted in Federal CourtRead the Press Release
PORTLAND, Ore.—A federal grand jury in Portland returned an indictment today charging a Salem, Oregon man for distributing counterfeit oxycodone pills containing fentanyl and operating the largest known privately made firearm or “ghost gun” manufacturing workshop in Oregon from the basement of his home.
Tyler Ray Harnden, 29, a Salem resident, has been charged with possessing with intent to distribute fentanyl and heroin, distribution of fentanyl, possessing a firearm in furtherance of a drug trafficking crime, and illegally possessing a firearm as a convicted felon.
According to court documents, on February 16, 2022, federal agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and detectives from the Salem Police Department’s Criminal Investigations Section and Strategic Investigations Unit executed a federal search warrant on Harnden’s Salem residence. During their search, investigators discovered a large ghost gun manufacturing operation containing dozens of homemade firearm components and firearms in various stages of completion. Investigators also found and seized two pistols, three completed ghost guns, thousands of rounds of ammunition, 15 loaded high-capacity magazines, three drill presses and other assorted firearm manufacturing equipment, and approximately 200 counterfeit oxycodone pills containing fentanyl.
Following his arrest, agents discovered additional evidence that Harnden had allegedly been paying people to conduct illegal straw purchases of firearms for him. Harnden would also use people with substance use disorders to purchase firearms for him in exchange for counterfeit oxycodone pills manufactured with fentanyl. Agents also learned that Harnden was storing firearms at a relative’s house and had tried to convince the relative to sell some of his firearms to generate money for his jail spending account. On March 15, 2022, ATF agents and Salem SIU detectives obtained and executed a federal search warrant on the relative’s house and seized four gun safes and 63 additional firearms belonging to Harnden.
Harnden is in state custody on a supervised release violation and will be arraigned on his federal indictment at a later date. If convicted, Harnden faces a maximum sentence of life in federal prison.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by ATF and the Salem Police Department. Assistant U.S. Attorney Scott M. Kerin is prosecuting the case.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Ghost guns are homemade firearms without serial numbers assembled from kits or materials sold without background checks, making them easily acquired by criminals who otherwise would not be permitted to possess a firearm and nearly impossible for law enforcement to track. In May 2021, the Justice Department issued a notice of proposed rulemaking that would update the definition of “firearm” and related parts for the first time since 1968. This updated definition would close a regulatory loophole associated with un-serialized, privately-made firearms increasingly being recovered at crime scenes across the country.
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.