Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Tuesday 18 January 2022
Washington County Man Sentenced for Role in Drug Trafficking OrganizationRead the Press Release
PITTSBURGH, PA - A Washington County resident has been sentenced in federal court to 41 months’ imprisonment followed by five years of supervised release on his conviction of federal narcotics charges, United States Attorney Cindy K. Chung announced today.
Chief United States District Judge Mark R. Hornak imposed the sentence on Eugene Reddick, 39, formerly Dunlevy, PA 15321.
According to information presented to the court, Reddick conspired with other persons to distribute powder cocaine in Clairton, Pennsylvania, between 2015 and 2017. Reddick acquired the cocaine from Jamie Lightfoot, Jr. and other members of Lightfoot’s drug trafficking organization.
Assistant United States Attorney Shaun E. Sweeney prosecuted this case on behalf of the government.
United States Attorney Chung commended the Federal Bureau of Investigation and the Pennsylvania State Police, with assistance from the South Strabane Police Department, the Elizabeth Borough Police Department, the Penn Hills Police Department, and the Perryopolis Police Department, for the investigation leading to the successful prosecution of Reddick.
This sentencing was the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Urbana Man Pleads Guilty to Drug Trafficking and Unlawful Possession of FirearmsRead the Press Release
URBANA, Ill. – An Urbana, Illinois, man, Curtis Coleman, 38, of the 1800 block of Oliver Drive, pleaded guilty on January 14, 2022, to possession of controlled substances with the intent to distribute and possession of firearms and ammunition by a convicted felon. Sentencing is scheduled for June 6, 2022, at 1:30 p.m. in the Urbana federal courthouse.
In court before Magistrate Judge Eric I. Long, Coleman admitted that he had been distributing drugs out of an apartment in the 1800 block of Oliver Drive in Urbana and that he had possessed multiple firearms. During the hearing, the government stated that during the execution of a search warrant at the apartment, officers with the Champaign County Street Crimes Task Force recovered just under 200 grams of cocaine, as well as marijuana and crack cocaine. Coleman also had two firearms, an extended magazine for one of the guns, and ammunition in various calibers near the drugs. Coleman was on parole for a separate felony offense at the time.
Coleman remains in the custody of the U.S. Marshals pending sentencing.
Coleman was charged via indictment in July 2017 with possession of controlled substances with the intent to distribute and possession of firearms and ammunition by a convicted felon. A federal grand jury returned a superseding indictment including those same charges in November 2019.
Coleman faces up to 20 years of imprisonment on the drug trafficking charge and at least 10 years of imprisonment on the firearms charge. However, if he is determined to be an Armed Career Criminal, he will face a mandatory minimum of 15 years' imprisonment and up to life imprisonment on the firearms charge.
The Urbana Police Department, Champaign Police Department, and Champaign County Sheriff’s Office investigated the case. The Champaign County State’s Attorney Office also worked in coordination with the U.S. Attorney’s Office in bringing these charges. Assistant U.S. Attorney Bryan Freres represents the government in the prosecution.
USP Canaan Inmate Sentenced to 31 Months’ Imprisonment for Stabbing Another InmateRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Andrew Daniels, age 41, an inmate at United States Penitentiary Canaan (USP Canaan), Waymart, Pennsylvania, was sentenced on January 14, 2022, to 31 months’ imprisonment by United States District Court Judge Malachy E. Mannion for assaulting another inmate.
According to United States Attorney John C. Gurganus, Daniels, while an inmate at USP Canaan, repeatedly stabbed another inmate with a sharp object. The victim was treated for eight puncture wounds around his upper chest and abdomen. The sentence will run consecutively to a 47-year sentence the defendant is already serving.
The matter was investigated by the Federal Bureau of Prisons and the Federal Bureau of Investigation (FBI). Assistant United States Attorney James Buchanan prosecuted the case.
# # #
U.S. Citizen Charged with Conspiring to Provide Electronic Equipment and Technology to the Government of IranRead the Press Release
A dual Iranian-U.S. citizen was arrested Friday in Chicago, on criminal charges related to his alleged conspiracy to illegally export U.S. goods, technology and services to end users in Iran, including the government of Iran, in violation of the International Emergency Economic Powers Act (IEEPA).
According to court documents, Kambiz Attar Kashani, 44, conspired to illegally export goods and technology to the Central Bank of Iran (CBI), which the U.S. government recognizes is an agency of the government of Iran.
“Kashani and his co-conspirators procured U.S.-origin goods and information technology for ultimate use in Iran, including for use by the Government of Iran,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Kashani repeatedly lied to numerous U.S. companies to conceal his intention to ship items to Iran, allowing him to illegally obtain information technology for use by the CBI and other Iranian entities. The Justice Department continues to do everything it can to end the illegal export of items that threaten our national security.”
“As alleged, Kashani orchestrated an elaborate scheme to evade U.S. export laws and use the U.S. financial system in procuring U.S. electronic equipment and technology for the CBI, which has been designated by the United States government as acting for or on behalf of terrorist organizations,” said U.S. Attorney Breon Peace for the Eastern District of New York. “The defendant allegedly used two United Arab Emirates companies as fronts to procure items from multiple U.S. technology companies, including a company in Brooklyn. Kashani’s arrest underscores the unrelenting resolve of this office and the Department of Justice to prosecute those who seek to profit by compromising our national security.”
“Technology illegally transferred to Iran from the United States could be used by terrorists, which is why the FBI and its partners devote significant resources to these investigations,” said Assistant Director Alan E. Kohler Jr. of the FBI's Counterintelligence Division. “Those doing the bidding for Iran in the United States should expect the full force of our law enforcement and Intelligence Community partners.”
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has classified CBI as a Specially Designated National (SDN) signifying that CBI is acting for or on behalf of a terrorist organization. According to the U.S. government, CBI has materially assisted, sponsored and provided financial, material or technological support, goods or services to Lebanese Hizballah, a terrorist organization, and to the Qods Force of Iran’s Islamic Revolutionary Guards Corps (IRGC). The IRGC is a branch of the Iranian armed forces and represents the primary means of the Government of Iran to direct and implement its global terrorism campaign.
Kashani allegedly perpetrated the illegal transshipping scheme through two separate United Arab Emirates (UAE) front companies for which he acts as principal. From around February 2019 through June 2021, Kashani and his co-conspirators used the two UAE companies to procure electronic goods and technology from multiple U.S. technology companies, including a company located in Brooklyn, New York, for end users in Iran, including CBI, without obtaining required OFAC export licenses. Kashani and his co-conspirators intentionally concealed from the U.S. companies that they intended to ship the items to Iran, falsely claiming that the UAE front companies would be the ultimate end users.
Kashani is charged with one count of conspiracy to unlawfully export goods to Iran, and will make his initial court appearance in the Northern District of Illinois this afternoon. If convicted, he faces a maximum penalty of 20 years’ imprisonment and a $1 million fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI is investigating the case.
Assistant U.S. Attorneys Alexander A. Solomon and Meredith A. Arfa for the Eastern District of New York; Assistant U.S. Attorney Shawn McCarthy for the Northern District of Illinois; and Trial Attorney S. Derek Shugert of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney’s Office Collects Nearly $8 Million in Civil and Criminal Actions in Fiscal Year 2021Read the Press Release
OKLAHOMA CITY – The United States Attorney’s Office for the Western District of Oklahoma collected $7,929,582 in criminal and civil actions and through asset forfeiture in Fiscal Year 2021, announced United States Attorney Robert J. Troester
Of the total amount, $5,324,445 was collected in criminal actions and $746,873 was collected in civil actions. In addition, through working with partner agencies and divisions, the U.S. Attorney’s Office collected $1,858,264 through asset forfeiture. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
"Despite the many challenges faced during the pandemic, our collection efforts demonstrate our continued commitment to upholding the rule of law, safeguarding taxpayer resources, and protecting the American people from exploitation and abuse," said United States Attorney Robert J. Troester. "I am proud that my team uses the tools Congress has provided to seek to recover money owed to victims in criminal cases and return taxpayer funds in civil cases."
Highlights of the Western District of Oklahoma’s FY2021 collection efforts include:
- $2,411,672.06 in criminal restitution was collected from Rocky Lemon. Lemon was convicted in 2007 of health care fraud and money laundering.
- A $325,000 Controlled Substances Act settlement in June 2021 with Albert T. Nguyen, M.D., owner, and sole physician at the Budget Medical Clinic in Oklahoma City. The United States alleged that Dr. Nguyen failed to issue prescriptions in the usual course of professional practice when he left pre-signed, blank prescriptions for non-physicians in his office to prescribe controlled substances to patients in violation of the Comprehensive Drug Abuse Prevention and Control Act of 1970 and its regulations. https://www.justice.gov/usao-wdok/pr/oklahoma-city-doctor-pays-325000-settle-civil-penalty-claims
- $113,000 in criminal restitution was collected in August 2021 from Stephanie Cunningham through bank garnishment. Cunningham was convicted in April 2021 of health care fraud and wire fraud.
- $107,386.31 in criminal restitution was collected from Gregory Lynn Cobbs through garnishment of Oklahoma County Sheriff’s Sale proceeds due his business, GL Cobbs and Company, LLC. Cobbs was a local home builder who was convicted in March 2019 of wire fraud. https://www.justice.gov/usao-wdok/pr/oklahoma-city-home-builder-sentenced-prison-and-ordered-pay-94147560
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Two Men Sentenced for Fentanyl TraffickingRead the Press Release
United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that two men were sentenced for fentanyl trafficking in Manitowoc, Wisconsin, and Milwaukee, Wisconsin. Senior United States District Judge William C. Griesbach issued the following sentences:
Name
Residence
Date Sentenced
Prison Sentence
Jabari O. Samuel (age: 42)
Milwaukee, WI
January 6, 2022
15 years
Anthony C. Martinez (age: 32)
Manitowoc, WI
December 20, 2021
9.5 years
Samuel and Martinez were both convicted of conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl. Samuel was also convicted of possession of a firearm in furtherance of a drug trafficking offense.
According to court documents, the investigation revealed that over the course of approximately two months in the summer of 2021, Martinez obtained fentanyl from Samuel every other day and transported the fentanyl to Manitowoc for further distribution. In total, Martinez obtained approximately one kilogram (2.2 pounds) of fentanyl from Samuel. On June 21, 2021, investigators executed a search warrant at Samuel’s residence in Milwaukee and located approximately 1.7 kilograms (3.7 pounds) of fentanyl, a Ruger LCR .380 firearm, and approximately $17,023 cash. Samuel and Martinez both have several prior convictions for drug trafficking offenses.
This case was investigated by the Manitowoc Metro Drug Unit. It was prosecuted by Assistant United States Attorney Alexander E. Duros.
# # #
For further information contact: [email protected]
(414) 297-1700
Follow us on Twitter
Todd Bussino Imprisoned Following Guilty Plea to Convenience Store RobberyRead the Press Release
The United States Attorney for the District of Vermont announced that Todd Bussino, 38, of Mt. Holly, was sentenced today in United States District Court in Burlington to 53 months’ imprisonment following his guilty plea to a charge that he robbed a Rutland-area convenience store with a knife last March. U.S. District Judge Christina Reiss ordered that Bussino serve three years of supervised release following completion of his prison term and pay restitution in the amount of $1367. Bussino has been held without bail since he first appeared in federal court last May.
According to court records, federal, state and local law enforcement officials in the Rutland area investigated a series of robberies that took place between early November 2020 and April 2021 in Rutland and surrounding towns. In each of the robberies, a single male entered the store, waited until other customers had left and then demanded money from the clerk. In almost all the incidents, the robber brandished a knife. Bussino was arrested after the ninth such robbery, on March 7, 2021 but released on bail. He was rearrested after a tenth, attempted robbery on April 13, 2021. On April 21, a federal grand jury in Rutland charged Bussino with four of those robberies. Bussino pled guilty to the March 7 robbery in September.
United States Attorney Nikolas Kerest commended the investigative efforts of the Federal Bureau of Investigation, the Rutland Police Department, the Vermont State Police, and the Rutland County Sheriff’s Department. “All Vermonters should be able to feel safe visiting and working in commercial establishments such as convenience stores. The U.S. Attorney’s Office is committed to continuing to partner with our local, state, and federal law enforcement colleagues to prosecute those who commit armed robberies affecting commerce.”
Bussino is represented by Assistant Federal Defender Steven Barth. The prosecutor is Assistant U.S. Attorney Gregory Waples.
St. Petersburg Man Sentenced to More Than Three Years in Prison for Covid-19 Program FraudRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew has sentenced Louis Thornton III (63, St. Petersburg) to three years and six months in federal prison for fraudulently obtaining money through various Covid-19 relief programs, including the Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) and the Economic Injury Disaster Loan (“EIDL”) program. As part of his sentence, the Court also entered a money judgment in the amount of $814,632.50, the proceeds of the wire fraud scheme.
Thornton had pleaded guilty on September 13, 2021.
According to court documents, from April through July 2020, Thornton submitted fraudulent applications for EIDL and PPP loans through the SBA’s online EIDL portal on behalf of several defunct companies. Thornton’s applications fraudulently claimed, among other material misrepresentations, that these companies were operational and had suffered economic injury due to the Covid-19 pandemic.
Based on the false and fraudulent representations Thornton made, he obtained a total of $814,632.50 in EIDL and PPP loans to which he was not entitled. Thornton used the money obtained through the SBA’s EIDL and PPP programs to invest in stocks, futures, and commodities.
This case was investigated by Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Rachel K. Jones.
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.
Springfield, Vermont Man Charged with Bank RobberyRead the Press Release
The Office of the United States Attorney for the District of Vermont announced today that Samuel Colby, 39, of Springfield, Vermont was arrested Friday evening for the January 8, 2022 robbery of the 802 Credit Union in Springfield, Vermont. A criminal complaint was filed today in United States District Court, and Colby is expected to have his initial appearance this afternoon. The United States has requested that Colby remain detained pending trial.
According to court records, Colby was the suspect in a string of five robberies that occurred in Springfield and Westminster between January 6, 2022 and January 14, 2022, including the robbery of the 802 Credit Union. These robberies were reported by victims as involving a firearm or threat of a firearm. A search of Colby’s vehicle on January 14, 2022 resulted in the seizure of a BB gun that looks similar to a semi-automatic pistol. During a search of Colby’s residence on the same date, law enforcement found a scrap of paper that appears to match the paper used for a demand note presented by the suspect at the 802 Credit Union robbery.
The United States Attorney’s Office emphasizes that a criminal complaint contains allegations only and that Colby remains presumed innocent until and unless he is convicted of a crime. Colby faces a maximum sentence of 20 years of imprisonment on the bank robbery charge.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of the Springfield, Vermont Police Department, the Vermont State Police, and the Federal Bureau of Investigation.
The prosecutor is Assistant United States Attorney Jonathan Ophardt. Colby is represented by the Office of the Federal Public Defender.
Sparta Woman Pleads Guilty to Concealing Material Support Intended for a Foreign Terrorist OrganizationRead the Press Release
NASHVILLE – A Sparta, Tennessee, woman pleaded guilty in U.S. District Court today to concealing material support and resources intended to be provided to a Foreign Terrorist Organization, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
Georgianna A.M. Giampietro, 36, was indicted by a federal grand jury in August 2019, charging her with attempting to provide material support to a designated Foreign Terrorist Organization. She was arrested at her home by FBI agents shortly thereafter and remains in custody. A superseding Information filed last week charges Giampietro with Concealment of Material Support and Resources Intended to be Provided to a Foreign Terrorist Organization, the charge to which she pleaded guilty.
“I commend our law enforcement partners and our prosecutors who have worked diligently to investigate this case and bring this individual to justice,” said U.S. Attorney Wildasin. “All attempts to provide support to terrorist organizations will receive the full attention and resources of our office and law enforcement to ensure that those who engage in such activity are held accountable. The safety and security of the American public demands no less.”
"Protecting the United States from terrorist attacks is the FBI’s number one priority,” said Special Agent in Charge Douglas M. Korneski of the FBI Memphis Field Office. "This case once again demonstrates the FBI's dedication to vigorously pursue those who provide material support to terrorist organizations, and hold them accountable for their conspiratorial actions. I am proud of the personnel who worked countless hours to protect the community, and I want to thank all of the agencies that participate in the FBI's Joint Terrorism Task Force. Together, we combine our resources to identify and disrupt threats to protect our community."
According to court documents, Giampietro admitted that, in September 2018, she had conversations with an undercover agent who expressed interest in travelling to Syria to join Hayat Tahrir Al-Sham (HTS), a designated Foreign Terrorist Organization. The undercover agent told Giampietro that her husband swore an oath of allegiance to HTS and that he intended to fight on behalf of HTS.
Giampietro initially provided instruction and advice to the undercover agent on how to travel to Syria in order to avoid detection by law enforcement, including actions that the undercover agent and her husband should undertake before making the trip, including severing ties with other persons 6-8 months in advance; acquiring new phones before they traveled; and to consider traveling through Turkey prior to entering Syria.
In subsequent conversations with the undercover agent, Giampietro offered to communicate with her contacts on their behalf to assist them in safely traveling to Syria to join HTS. Giampietro engaged in a series of communications with an individual whom she knew could assist the undercover and her husband for such purpose. At one point after communicating with her contact, who claimed that there was presently no jihad in Syria, Giampietro asked the undercover agent if she and her husband had considered traveling to Afghanistan since they were still fighting there.
Giampietro later provided the undercover agent with her contact’s information to assist her and her husband in their travel to Syria. When Giampietro provided the contact, she knew that HTS was a designated terrorist organization and believed that the undercover agent and her husband intended to travel to Syria to work under the direction and control of HTS and believed that the contact would substantially assist them in this effort. In addition, Giampietro intended that the undercover agent and her husband would provide funds to that person who in turn would provide funds to HTS, thereby providing material support to HTS disguised as a charitable contribution.
Giampietro utilized an end-to-end encrypted social media platform to communicate with the undercover and with her contact, and in some instances, utilized self-destruct timers within her communications so that those communications would automatically delete, without the possibility of recovery, after a specified time.
Giampietro faces up to 10 years in prison and a $250,000 fine when she is sentenced on May 6, 2022.
This case was investigated by the FBI and the Joint Terrorism Task Force. Assistant U.S. Attorneys Philip H. Wehby, Ben Schrader, and Kathryn Risinger of the Middle District of Tennessee, and Trial Attorney Jennifer Levy of the Department of Justice’s National Security Division, are prosecuting the case.
# # # # #
Southfield Resident Pleads Guilty in COVID-19 Fraud SchemeRead the Press Release
DETROIT - Southfield resident Mykia King pleaded guilty today to wire fraud and aggravated identity theft arising out of a pandemic-related unemployment insurance fraud scheme, announced United States Attorney Dawn N. Ison.
Joining in the announcement were Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General and Special Agent in Charge John Marengo, United States Secret Service’s Detroit Field Office.
Mykia King, 29, pleaded guilty to one count of wire fraud arising out of her submission of 34 fraudulent claims for pandemic unemployment assistance. She also pleaded guilty to one count of aggravated identity theft, which reflected the fact that she used stolen personal identifying information to further her unemployment assistance fraud scheme.
According to the plea agreement, King filed approximately 34 fraudulent UI claims seeking pandemic unemployment assistance (PUA) benefits to which she was not entitled. These fraudulent claims were submitted in the names of multiple individuals without those individuals’ authorization or consent. King submitted adulterated identification documents as proof of identification for her fraudulent PUA claims. Indeed, King submitted identical driver’s license photos and social security cards as proof of identification for multiple claims, although she used different names and addresses for the claims. The funds associated with King’s fraudulent claims were typically loaded onto Bank of America debit cards and mailed to addresses King controlled. King would then withdraw the funds on these cards, usually at ATMs located in the Eastern District of Michigan.
According to the plea documents, one such fraudulent claim was submitted in the name of a victim whose initials were T.R. King filed a fraudulent PUA claim using T.R.’s name and social security number on June 5, 2020. King was not lawfully in possession of T.R.’s social security number, and was not authorized to file a PUA claim on T.R.’s behalf. The claim used King’s street address (with a different apartment number). The system requested an Identity Verification (IDV), and King uploaded an adulterated Michigan driver’s license bearing T.R.’s name as proof of identification. Benefits were paid on King’s fraudulent T.R. claim on approximately June 23 and 24, 2020. King accessed the fraudulently obtained benefits by using a Bank of America debit card issued for the T.R. claim at ATMs in the Detroit Metro area on approximately June 25–30, July 1–2, July 6, and July 10–11, 2020, obtaining approximately $11,880. This fraudulent use of T.R.’s identifying information in furtherance of her fraud scheme gave rise to the aggravated identity theft charge to which King pleaded guilty.
United States Attorney Ison stated “Enhanced benefits for unemployed workers were a key lifeline for many of our district’s citizens during the pandemic. Unfortunately, those enhanced benefits attracted criminals seeking to exploit the system and enrich themselves at the public’s expense. My office has no tolerance for this abuse of a public program, and today’s plea is a reflection of my office’s commitment to vigorous prosecution of these cases.”
“Mykia King submitted numerous fraudulent claims for pandemic unemployment assistance, obtaining more than $366,000 in funds intended for individuals who lost their jobs during the COVID-19 pandemic. We will continue to work with our law enforcement partners to safeguard the UI system from those who exploit these benefit programs,” said Irene Lindow, Special Agent in Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
Special Agent in Charge Marengo said, “The U.S. Secret Service is dedicated to working with our federal, state and local law enforcement partners in UIA fraud cases. The U.S. Secret Service continues to focus on criminals exploiting the American people.”
Sentencing is set for April 19, 2022 at 11 am. before United States District Judge Linda V. Parker.
The case is being prosecuted by Assistant United States Attorneys John K. Neal and Alyse Wu. The investigation is being conducted jointly by the Department of Labor-Office of Inspector General and the Secret Service. The Michigan Unemployment Insurance Agency provided valuable assistance in this investigation.
Southern California Man Sentenced to 9 Years in Prison for Distributing Methamphetamine from Mexico to ModestoRead the Press Release
FRESNO, Calif. — Antonio Castellanos, 38, of Whittier, was sentenced today to nine years in prison for conspiring to distribute methamphetamine from Mexico destined for Modesto, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Castellanos and co-defendants Genaro Serrato-Calles, 49; Antonio Valencia-Hernandez, 66, both of Michoacán, Mexico; and Jose Reyes-Pineda, 49, of Anaheim were charged with conspiring over a two-year period to distribute methamphetamine in Stanislaus and San Joaquin Counties. Castellanos worked with individuals in Mexico to distribute methamphetamine in the United States and, on one occasion, coordinating the shipment of over 20 pounds of crystal methamphetamine to Serrato-Calles in Modesto.
“Violent drug traffickers continue to seek new ways to smuggle methamphetamine into the United States,” said U.S. Attorney Talbert. “This sentence demonstrates the commitment by the U.S. Attorney’s Office and our law enforcement partners to work together to prevent this deadly drug from reaching the streets. Prosecuting methamphetamine traffickers remains a top priority for our office.”
“Castellanos’ actions allowed large amounts of methamphetamine to make its way from Mexico to the Central Valley and today’s sentencing ensures the defendant will serve a lengthy prison sentence for his role,” said DEA Special Agent in Charge Wade R. Shannon. “DEA and our law enforcement partners will continue to aggressively target all those involved in the distribution chain of this poison in our communities.”
“ATF is focused on working assiduously to honor our commitment to the cities we serve,” said Special Agent in Charge Patrick Gorman, San Francisco Field Division, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “Our mission is to protect the public, and the focus of this joint task force is to identify, disrupt, and dismantle the highest-level criminal organizations that threaten the United States. ATF works alongside our law enforcement partners to fulfill the goals of Organized Crime Drug Enforcement Task Forces. This case is a result of those unified efforts. ATF will continue to work diligently with our partners to dismantle criminal organizations.”
The sentencing of Castellanos sends a message to anyone who deals in illicit narcotics that drug traffickers will be held accountable,” said Tatum King, Homeland Security Investigations special agent in charge, San Francisco. “We’re thankful for our law enforcement partners and the U.S. Attorney’s Office who help bring individuals like Castellanos to justice and hold them accountable in our courts.”
Serrato-Calles and Valencia-Hernandez were each sentenced to 12 years in prison. Reyes-Pineda was sentenced to 18 months in prison.
This case is the product of an investigation by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, the Central Valley High Intensity Drug Trafficking Area (HIDTA) task force, the San Joaquin County Metropolitan Narcotics Task Force, the Stanislaus Drug Enforcement Agency, and the Orange County Sheriff’s Special Investigations Bureau. Assistant U.S. Attorney Karen Escobar 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.
Sidney Man Sentenced for False Statements in a Highway ProjectRead the Press Release
BANGOR, Maine: A Sidney man was sentenced today in federal court for making false statements with respect to work on a federally approved highway project, U.S. Attorney Darcie N. McElwee announced.
U.S. District Judge John A. Woodcock, Jr. sentenced Jim Wentworth, 51, to one year of probation and $35,000 fine. Wentworth pleaded guilty on June 11, 2021.
According to court records, in June 2019, Wentworth was working as the project manager for a general contractor on a bridge contract in Gardiner. The project was funded in part with federal highway funds approved by the U.S. Department of Transportation. In the course of negotiating a contract modification, Wentworth submitted documents falsely inflating the costs paid to a subcontractor. Based on these false submissions, the Maine Department of Transportation (MDOT) overpaid the general contract over $91,000. Once the extent of the fraud was discovered, the general contractor compensated MDOT for the full overpayment.
In imposing the sentence, Judge Woodcock noted that fraud concerning public funds added to the seriousness of the offense. He also noted that Wentworth faces additional administrative sanctions from the U.S. Department of Transportation’s Federal Highway Administration, which may include a period of supervision, a suspension, or debarment from working on federally funded highway projects.
The U.S. Department of Transportation, Office of Inspector General, investigated the case.
Self-Described Member of Booglaoo Bois Sentenced to Prison for Illegal Possession of a Machine GunRead the Press Release
MINNEAPOLIS – A St. Cloud man was sentenced to 24 months in prison followed by three years of supervised release for possessing two drop-in auto sears, which are devices that convert semi-automatic firearm into fully automatic firearms. Acting U.S. Attorney Charles J. Kovats made the announcement after U.S. District Judge Michael J. Davis sentenced the defendant.
According to court documents, in November 2020, the FBI initiated an investigation into Michael Paul Dahlager, 28, a self-proclaimed member of the “Boogaloo Bois,” a loosely connected group of individuals who espouse violent anti-government sentiments. The term “Boogaloo” itself references an impending second civil war in the United States and is associated with violent uprisings against the government. In November 2020, the FBI learned through a confidential human source (“CHS”) that Dahlager was in possession of a 3D-printed “drop in auto sear” and a homemade firearm suppressor. An “auto sear” is a part designed and intended for use in converting a semi-automatic weapon to shoot automatically by a single pull of the trigger and is a machine gun under federal law.
According to court documents, on February 3, 2021, Dahlager delivered two auto sears to the CHS and he demonstrated how the devices should be inserted into a firearm. At the time of his arrest in April 2021, law enforcement recovered six additional auto sears and a silencer from Dahlager’s vehicle and home.
This case is the result of an investigation conducted by the FBI’s Joint Terrorism Task Force, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
This case was prosecuted by Assistant U.S. Attorney Andrew R. Winter, and Trial Attorneys George Kraehe and Phil Viti of the National Security Division's Counterterrorism Section.
Saucier Man Sentenced to Prison for Being a Felon in Possession of a FirearmRead the Press Release
Gulfport, Miss. – A Saucier man was sentenced to 37 months in prison for being a convicted felon in possession of a firearm, announced U. S. Attorney Darren J. LaMarca and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to court documents, on April 20, 2020, Christopher Michael Gelston, 40, knowingly possessed a Ruger 9mm pistol after having been previously convicted of a felony. Gelson pled guilty on September 28, 2021, to being a convicted felon in possession of a firearm.
Gelston’s prior felony convictions included a December, 2012 conviction in the Circuit Court for Baltimore County, Towson, Maryland, on one count of firearm possession with felony conviction and one count of rifle/shotgun possession with felony conviction.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Assistant U.S. Attorney Andrea Jones prosecuted the case.
Sand Springs Man Sentenced to 138 Months in Prison for Firing a Gun at Woman through her DoorRead the Press Release
A man who intentionally shot through a neighbor’s door during a domestic violence incident involving a child was sentenced in federal court, announced U.S. Attorney Clint Johnson.
U.S. District Judge Gregory K. Frizzell sentenced Michael Adam Lindsey, 37, of Sand Springs, to a total of 138 months in federal prison followed by three years of supervised release.
He is to serve 18 months in prison for assault with a dangerous weapon with intent to do bodily harm in Indian Country and 120 months for carrying, using, brandishing, and discharging a firearm during and in relation to a crime of violence.
Lindsey pleaded guilty in September 2021. Lindsey admitted in his plea agreement that on April 29, 2018, he intended to cause bodily harm when he shot a firearm toward a neighbor as she stood behind a door. Just before the incident, a child fled to the neighbor’s home to escape from Lindsey, who had been drinking and just attempted to strangle her. When the neighbor saw the defendant holding a gun, she closed and locked the door before he could enter. When Lindsey was unable to enter the home, he intentionally fired a shot through the door. The bullet went through the door and hit the woman in the upper left arm, near her shoulder. The woman was later treated at the hospital and recovered.
“Michael Lindsey was a danger to his neighborhood and his family. Lindsey could have just as easily killed his neighbor, instead of wounding her when he shot through her door,” said U.S. Attorney Clint Johnson. “I am thankful she has fully recovered. She is to be commended for selflessly acting to protect the child from harm when she brought her into the home.”
According to a sentencing memorandum filed by Assistant U.S. Attorney Christopher Kelly, Sand Springs police officers found Lindsey laying on the ground outside his home and further located a Jennings .22 caliber pistol and a box of 36, .22 caliber bullets on the front passenger seat of his car. The slide on the pistol was slightly locked back and a spent round and unspent round appeared jammed in the chamber, indicating that Lindsey had attempted to fire again but could not.
Kelly stated that Lindsey possessed the handgun despite having two prior felony convictions. Individuals convicted of a felony are prohibited from possessing firearms. Kelly also stated that Lindsey’s decision to drink 15 or 16 double shots the day of the crime was not a defense nor an excuse for his dangerous behavior.
The FBI and Sand Springs Police Department conducted the investigation. Assistant U.S. Attorney Christopher Kelly prosecuted the case.
Rochester Man Going to Prison for 15 Years for Fentanyl Trafficking and Causing Non-Fatal OverdoseRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that Soroush Hamedi, 27, of Rochester, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, 40 grams or more of fentanyl, was sentenced to serve 180 months in prison by Chief U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Brett A. Harvey, who handled the case, stated that Hamedi was part of a group of individuals who ran a drug house at 192 Weaver Street in Rochester. Hamedi and others sold quantities of fentanyl and cocaine from the house between January 2018 and February 25, 2020. On February 25, 2020, investigators executed a search warrant at Hamedi’s residence on Dale Street in Rochester and seized a clear plastic bag containing 10 grams of fentanyl.
Hamedi also admitted to selling a quantity of fentanyl to a 27-year-old female who later suffered a non-fatal overdose.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Acting Special Agent-in-Charge Timothy Foley, New York Field Division; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; the Rochester Police Department, under the direction of Interim Chief David Smith.
# # # #
Preston County woman admits to wire fraudRead the Press Release
CLARKSBURG, WEST VIRGINIA – Cynthia Miller, of Newburg, West Virginia, has admitted to wire fraud, United States Attorney William Ihlenfeld announced.
Miller, 36, pleaded guilty today to one count of “Conspiracy to Commit Wire Fraud.” Miller admitted to working with others to stage a vehicle accident, fabricate injuries, and file false insurance claims. The crime occurred from March to July 2019 in Taylor and Preston Counties.
Miller faces up to 20 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Andrew R. Cogar is prosecuting the case on behalf of the government. ATF and the West Virginia Insurance Commission Fraud Unit investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Pittsburgh Woman Pleads Guilty to Fraud Related to Pandemic Unemployment BenefitsRead the Press Release
PITTSBURGH – A resident of Pittsburgh, Pennsylvania, has pleaded guilty to one count in Pittsburgh on a charge of conspiracy to commit mail fraud related to pandemic unemployment benefits, United States Attorney Cindy K. Chung announced today.
Cassandra Rangel age 28, pleaded guilty before Senior U.S. District Judge Arthur J. Schwab.
According to the plea agreement, Rangel will pay restitution in the amount of $13,205.00 under the Victim-Witness Protection Act.
Sentencing is scheduled for June 2, 2022. The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Benjamin J. Risacher is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the prosecution of Rangel.
Paterson Police Officer Indicted on Civil Rights Violations and ObstructionRead the Press Release
NEWARK, N.J. – A Paterson Police officer was indicted today for physically assaulting a victim and then attempting to cover it up, U.S. Attorney Philip R. Sellinger announced.
Kevin Patino, 29, of Paterson, New Jersey, is charged by indictment with one count of conspiracy against rights by depriving a man of his constitutional right to be free from the use of unreasonable force by law enforcement officers, one count of deprivation of rights under color of law and two counts of falsification of records in connection with that incident.
According to documents filed in this case:
At approximately 12:30 a.m. on Dec. 14, 2020, Patino and a conspirator approached the victim, who was walking with his hands in his pockets in Paterson. Patino grabbed the victim. When the victim attempted to separate himself, Patino struck the victim in the face and body numerous times. During the altercation with victim, the conspirator picked the victim up and threw him to the ground. Patino then repeatedly struck the victim while he was on the ground.
Patino filed police reports, which contained numerous false statements and omissions, regarding the arrest of the victim.
The violation of civil rights and conspiracy to violate civil rights charges each carry a maximum penalty of 10 years in prison. The false records counts each carries a maximum penalty of 20 years in prison. The maximum fine for each of the charges is $250,000.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent In Charge George M. Crouch Jr. in Newark; the New Jersey Attorney General’s Office; under the direction of acting Attorney General Andrew J. Bruck; the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes; and the North Jersey Public Corruption Task Force composed of members of FBI and New Jersey State Police.
The government is represented by Assistant U.S. Attorney Joseph Gribko.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Palm Bay Man Sentenced to Five Years in Federal Prison for COVID Relief Fraud and Tax FraudRead the Press Release
Orlando, Florida –U.S. District Judge Anne C. Conway today sentenced Johnson W. Eustache to five years in federal prison for wire fraud and aiding and assisting in the preparation of false tax returns. The court also ordered Eustache to forfeit approximately $700,000 seized from several bank accounts, as well as real properties in Palm Bay and Poinciana, which are traceable to proceeds of the offense.
Eustache had pleaded guilty on August 3, 2021.
According to court documents, beginning in March 2020 and continuing through April 2021, Eustache submitted 13 different fraudulent applications seeking a total of more than $2.1 million in pandemic-related emergency benefits. The fraudulent applications consisted of either Economic Injury Disaster Loan (EIDL) or Paycheck Protection Program (PPP) applications to the U.S. Small Business Administration (SBA) and PPP loan servicers and lenders. Eustache submitted some of these applications in his own name and others in the names of unwitting associates or relatives. Eustache included false statements in each of the applications regarding the applicant’s criminal history, number of employees, and/or total payroll.
Eustache’s materially false, fraudulent, and misleading representations caused the SBA and PPP lenders to approve and fund four PPP loans and four EIDL loans, totaling $1,343,029.50. Eustache did not use these funds for payroll or other qualifying business expenses as promised in the loan applications. Rather, he used the funds to make personal financial investments, to purchase real estate, and to construct residential properties.
In addition, between 2017 and 2021, Eustache worked as a tax return preparer, during which time he filed 28 returns for taxpayers; those returns contained false adjustments, false income amounts, or false deductions. Eustache included these false items fraudulently to inflate the amount of the taxpayers’ refunds. The false items included bogus Schedule C losses from businesses, false Schedule 1 Adjustment to Income deductions, false Household Employee income, and false W-2 wages. The total loss to the IRS as a result of the false tax returns filed by Eustache was $87,044.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if the business spends the proceeds on these expenses within a set time period and uses at least a certain percentage of the loan toward payroll expenses.
The EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities, and fixed debt payments. If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used for the same purpose as the PPP funds.
“Not only did Eustache fraudulently file tax returns on behalf of his clients through his tax preparation business, but he also stole vital PPP loan money intended to support struggling businesses during the COVID 19 pandemic,” said IRS-Criminal Investigation Special Agent in Charge Brian Payne. “This sentence shows that stopping PPP fraudsters and unscrupulous tax preparers is a top priority for IRS-CI. With tax season starting up, taxpayers looking to avoid shady preparers and find tips on how to select a tax preparer are encouraged to visit IRS.gov.”
“This case demonstrates the swift and decisive action taken by the FBI and its federal partners to protect the Payment Protection Program.”, said Special Agent in Charge of FBI Tampa Michael McPherson. “We’re taking tremendous investigative steps to ensure fraudsters don’t profit from the pandemic.”
“Using any SBA program fraudulently undermines the spirit and true intent of bolstering the backbone of the nation’s economy—small businesses,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “Our Office will remain relentless in the pursuit of fraudsters who seek to exploit SBA’s vital economic programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”
This case was investigated by the Internal Revenue Service, Federal Bureau of Investigation, and the Office of Inspector General for the Small Business Administration. It was prosecuted by Assistant United States Attorneys Chauncey A. Bratt and Amanda Daniels. The forfeiture and restitution were handled by Assistant United States Attorneys Nicole Andrejko and Julie Simonsen.
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.
Owatonna Man Sentenced to Prison for Possessing an Unregistered FirearmRead the Press Release
MINNEAPOLIS – An Owatonna man was sentenced to 31 months in prison followed by three years of supervised release for possessing an unregistered firearm. Acting U.S. Attorney Charles J. Kovats made the announcement after U.S. District Judge Nancy E. Brasel sentenced the defendant.
According to court documents, the Olmsted County Sheriff’s Office received information that Dayton Charles Sauke, 23, was selling narcotics and manufacturing and dealing firearms without a license. Sauke used his Snapchat account to advertise privately made firearms, or “ghost guns,” which he described as “untraceable” and “throwaway murder pieces.” Sauke also posted pictures of a short-barreled shotgun and made several threatening posts about killing law enforcement and politicians.
According to court documents, on January 15, 2021, two undercover agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) met with Sauke and purchased from him a privately made firearm. During the meeting, Sauke had a short-barreled shotgun with him and showed it to the undercover agents. The short-barreled shotgun was later recovered by law enforcement officials and examined by an ATF expert, who determined it was an operable 12-gauge shotgun with a barrel length of approximately 11 inches and a total overall length of 18 inches. Federal law requires shotguns with reduced barrels and overall lengths (often referred to as “sawed-off” or “short-barreled” shotguns) to be registered in the National Firearms Registration and Transfer Record. The shotgun was not registered to Sauke.
“Sauke’s actions and statements leading up to his arrest were very concerning, which is why law enforcement quickly intervened,” said ATF Special Agent in Charge William J. McCrary, of the St. Paul Field Division. “We are thankful for the investigative work of the Olmsted County Sheriff’s Office, South Central Drug Investigations Unit, Cannon River Drug Task Force, and our federal partners at the U.S. Postal Inspection Service, FBI, and U.S. Attorney’s Office. I’m especially proud of our ATF agents who quickly responded to this matter, and whose prompt actions helped to interrupt Sauke’s potential plans for violence. This collaborative work readily demonstrates, at all levels, law enforcement’s on-going commitment to public safety.”
This case is the result of an investigation conducted by the ATF, FBI, U.S. Postal Inspection Service, the Olmsted County Sheriff’s Office, the South Central Drug Investigations Unit, and the Cannon River Drug Task Force.
Assistant U.S. Attorney Justin A. Wesley is prosecuting the case.
Ohio County woman admits to drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Tina Soper, of Wheeling, West Virginia, has admitted to a drug charge, First Assistant United States Attorney Randolph J. Bernard announced.
Soper, 43, pleaded guilty today to one count of “Maintaining a Drug-Involved Premise.” Soper admitted to maintaining a property on Edgewood Street in Wheeling that was used to distribute methamphetamine and cocaine hydrochloride in March 2021.
Soper faces up to 20 years of incarceration and a fine of up to $500,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Clayton J. Reid is prosecuting the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, and the Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Norwich Man Sentenced to 4 Years in Federal Prison for Firearm OffenseRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that NNAMDII ROSS, 34, of Norwich, was sentenced today via videoconference by U.S. District Judge Janet C. Hall to 48 months of imprisonment, followed by three years of supervised release, for illegally possessing ammunition.
According to court documents and statements made in court, shortly after midnight on August 2, 2020, New London Police responded to a report of shots fired on Ann Street in New London during a large gathering of individuals. One shooting victim was found at the scene and transported to the hospital. At the scene officers located and collected .40 caliber, .45 caliber, and 9 mm rounds of ammunition. Ross was also shot at the gathering and was transported to the hospital by his fiancée. At the hospital, investigators took possession of some of Ross’s personal effects, including six rounds of .22 caliber ammunition.
On August 7, 2021, law enforcement recovered a .45 caliber handgun that was found at a residence in New London. Connecticut Department of Emergency Services and Public Protection’s Division of Scientific Service analysis of the handgun revealed Ross’s DNA, and analysis by the National Integrated Ballistic Information Network (NIBIN) revealed a link between the handgun and the .45 caliber ammunition found on Ann Street on November 2, 2020.
Ross’s criminal history includes state felony convictions for robbery and drug offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Ross was arrested on September 10, 2020. On October 7, 2021, he pleaded guilty to one count of unlawful possession of ammunition by a felon.
This matter was investigated by the Federal Bureau of Investigation and the New London Police Department. The case was prosecuted by Assistant U.S. Attorney Natasha M. Freismuth.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
North Carolina Return Preparers Plead Guilty to Conspiring to Defraud the IRSRead the Press Release
Greensboro, N.C. – Two Durham, North Carolina, tax preparers have pleaded guilty to conspiring to defraud the United States in connection with a scheme that involved preparing and filing false tax returns.
According to court documents, Whitney Danielle Sales owned and operated Tax Time Solutions, LLC, a tax preparation business in Durham, North Carolina from 2014 to 2018. During that period, Sales, and another return preparer, Janelle Marie Corley, prepared fraudulent returns for clients. Returns prepared by the conspirators claimed false education credits or manipulated the clients’ income to qualify for larger earned income tax credits. In addition to their preparation of false client returns, Sales and Corley also filed false personal income tax returns. Sales and Corley intended to cause a tax loss of over $1.5 million.
Sales pleaded guilty to Count One of the Indictment before Senior United States District Court Judge N. Carlton Tilley, Jr., on January 5, 2022. Corley pleaded guilty to the same count before Judge Tilley on January 13, 2022.
Sales is scheduled to be sentenced on May 19, 2022, and Corley is scheduled to be sentenced on May 26, 2022. Sales and Corley each face a maximum sentence of five years in prison for the conspiracy, as well as a period of supervised release, restitution, and monetary penalties.
U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina made the announcement.
IRS-Criminal Investigation is investigating the case. Assistant U.S. Attorney Ashley Waid of the Middle District of North Carolina is prosecuting the case.
###
Norfolk Woman Sentenced to 71 Months for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Jan Sharp announced that Lacee Tuttle, age 39, of Norfolk, Nebraska, was sentenced in federal court on January 14, 2022 in Omaha, Nebraska, for possession with intent to distribute methamphetamine. United States District Judge Brian C. Buescher sentenced Tuttle to 71 months of imprisonment. There is no parole in the federal system. After completing her term of imprisonment, Tuttle will begin a 3-year term of supervised release.
On July 14, 2019, Tuttle possessed about 13 grams of methamphetamine at the Ohiya casino in Niobrara, Nebraska, which is within the Santee Indian Reservation. After Tuttle entered the casino, she dropped two baggies of methamphetamine on the floor. Officers responded and made contact with Tuttle. When confronted by officers, Tuttle threw two drug pipes in the trash. Officers searched Tuttle’s vehicle in the parking lot and located more baggies of methamphetamine, oxycodone, alprazolam, lorazepam, and methylphenidate. Tuttle was arrested at the scene and later released. Tuttle intended to distribute methamphetamine that she possessed at the casino.
On October 22, 2019, officers made contact with Tuttle in a parking lot in Norfolk. She had an active arrest warrant. When arresting her, Tuttle dropped a plastic baggie with methamphetamine. On her person was a glass pipe containing methamphetamine residue. In her purse was methamphetamine, a scale, small empty baggies, and marijuana. In total, she possessed about 7 grams of methamphetamine. Tuttle was again arrested. Tuttle intended to distribute the methamphetamine.
The case was investigated by the Drug Enforcement Administration, Nebraska State Patrol, the Santee Police Department, and the Norfolk Police Department.
New unit formed to combat health care fraud in West VirginiaRead the Press Release
WHEELING, WEST VIRGINIA – A new initiative to combat health care fraud in West Virginia was launched today in Wheeling, according to United States Attorney William Ihlenfeld.
State and federal agencies gathered at the U.S. Attorney’s office this morning for the first meeting of the Mountaineer Health Care Fraud Strike Force, a unit that will take a data-driven approach to uncovering waste and abuse. Representatives from seven different agencies discussed fraudulent billing patterns and new targets were identified as a result.
In addition to its analytical work, the Strike Force will engage with providers and insurers so that there is a better understanding on how to recognize and report health care fraud.
“The time I spent in the private sector opened my eyes to the scope of the health care fraud that is occurring in West Virginia,” said Ihlenfeld. “It made me realize that more can and should be done by law enforcement, which is why this new group has been formed.”
Ihlenfeld stressed the importance of whistleblowers and the impact that they can have upon uncovering fraud.
“Oftentimes the first person to witness fraud is an employee of a hospital or a doctor’s office,” Ihlenfeld remarked. “Those who blow the whistle and expose conduct that the government was not able to detect on its own are awarded a portion of the amount recovered, and those awards can be substantial."
Last year, a whistleblower was awarded $10 million in the matter of U.S. ex rel. Longo v. Wheeling Hospital, Inc. Read more here: https://www.justice.gov/usao-ndwv/pr/west-virginia-hospital-agrees-pay-50-million-settle-allegations-concerning-improper
A new hotline, email address and mailing address have been established to allow for the reporting of potential fraud. Anyone with information may call (304) 234-7711, send an email to [email protected], or mail correspondence to the U.S. Attorney’s Office, Attn: Mountaineer HCF Strike Force, P.O. Box 591, Wheeling, WV 26003.
“Fraud and abuse take critical resources out of our health care system and contribute to rising costs for everyone,” said FBI Special Agent in Charge Mike Nordwall. “It costs U.S. taxpayers tens of billions of dollars annually. The FBI, along with state, local and federal partners, are working side by side to help stop West Virginians from having to absorb the costs associated with health care fraud. I hope the community will use this tip line to aid us in our efforts to hold those who commit fraud accountable.”
“The newly formed team will combine the talents, dedication, and resources of federal law enforcement and the State of West Virginia to fight health care fraud, waste, and abuse,” said Maureen R. Dixon, Special Agent in Charge for the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “We look forward to working with our law enforcement partners in this collaborative initiative to prevent and detect health care fraud, hold wrongdoers accountable, and ensure appropriate use of taxpayer funds.”
Members of the Mountaineer Health Care Fraud Strike Force include agents, officers and prosecutors from the Federal Bureau of Investigation (FBI), the U.S. Department of Health and Human Resources (HHS), the Drug Enforcement Administration (DEA), the U.S. Department of Defense, the West Virginia Medicaid Fraud Control Unit, the West Virginia Offices of Insurance Commission, and the United States Attorney’s Office.
New Orleans Man Sentenced for Violating the Federal Controlled Substances Act and the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – The Honorable Jay C. Zainey sentenced RONALD JACOBS, age 38, of New Orleans, Louisiana, today to serve 101 months in the Bureau of Prisons for violating the Federal Controlled Substances Act and the Federal Gun Control Act, announced U.S. Attorney Duane A. Evans.
According to the court records, JACOBS was arrested after concerned citizens reported his vehicle stopped in a travel lane on Williams Boulevard in Kenner. Kenner Police responded and found JACOBS asleep in the vehicle with what appeared to be drugs in his lap. When the officers made contact with JACOBS, he attempted to flee by ramming his vehicle into the officers’ vehicles and was reaching for an area in his truck where the officers later found a pistol. In addition to the loaded gun, officers also located 14 grams of crack, a digital scale, a razor blade, and about $1,100. JACOBS admitted that he possessed the crack for distribution.
In addition to the 101-month term of imprisonment, JACOBS was also sentenced to five (5) years of supervised release after he is released from the Bureau of Prisons and ordered to pay a $200 mandatory special assessment fee.
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.
This case was investigated by the Kenner Police Department and Special Agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The prosecution is being handled by Assistant United States Attorney David Haller.
New Kensington Man Sentenced to Time-Served for Conspiring to Commit FraudRead the Press Release
PITTSBURGH - A resident of New Kensington, Pennsylvania, was sentenced in federal court to a charge of conspiracy to commit offense against the United States, United States Attorney Cindy K. Chung announced today.
Erick Woods, age 23, of New Kensington, Pennsylvania, was sentenced to a term of imprisonment of time served (six months’ incarceration) to be followed by a two-year term of supervised release by Judge Arthur J. Schwab.
From in and around June 2020, and continuing thereafter until in and around July 2020, in the Western District of Pennsylvania, Woods knowingly and willfully did conspire to commit an offense against the United States, more specifically, mail fraud related to pandemic unemployment benefits.
Woods was also ordered to pay restitution in the amount of $11,910.00.
Assistant United States Attorney Benjamin J. Risacher is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the prosecution of Woods.
Maryland Security Guard Charged with Tax EvasionRead the Press Release
An indictment was unsealed on Friday charging a Maryland security guard with six counts of tax evasion.
A federal grand jury in Greenbelt, Maryland returned an indictment on Dec. 22, 2021, charging Gaston Gilberto Reyes, of Germantown, with not filing income tax returns for 2015 through 2020. As a result, he allegedly did not report to the IRS more than $1 million in total wages from jobs at seven different security firms in the D.C. metropolitan area. During the same period, Reyes allegedly also submitted false tax forms to his employers, claiming he was exempt from federal income tax withholding. This caused the employers to allegedly withhold little or no federal income taxes from his wages.
The defendant made his initial court appearance on Jan. 14 before U.S. Magistrate Judge Timothy J. Sullivan of the U.S. District Court for the District of Maryland. If convicted, Reyes faces a maximum penalty of five years in prison on each of the tax evasion charges. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation is investigating the case.
Trial attorneys Melissa S. Siskind and George Meggali of the Justice Department’s Tax Division are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Luzerne County Man Sentenced to 57 Months’ Imprisonment for Methamphetamine TraffickingRead the Press Release
SCRANTON -The United States Attorney’s Office for the Middle District of Pennsylvania announced that Richard Notarfrancesco, age 30, formerly of Hazleton, Pennsylvania, was sentenced on January 13, 2022, to 57 months’ imprisonment by United States District Court Judge Malachy E. Mannion after pleading guilty to methamphetamine trafficking.
According to United States Attorney John C. Gurganus, Notarfrancesco possessed with intent to distribute between 500 grams and 1.5 kilograms of methamphetamine in the Hazleton area on September 14, 2019.
The case was investigated by Homeland Security Investigations, the U.S. Postal Inspection Service, the Pennsylvania State Police and the Pennsylvania Attorney General’s Office as part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Operation. 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.
This matter was prosecuted as part of the Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was prosecuted by Assistant U.S. Attorney Jenny P. Roberts.
# # #
Kentucky Man Sentenced to Prison for Federal Drug OffenseRead the Press Release
HUNTINGTON, W.Va. – A Kentucky man was sentenced to prison today for his involvement in a fentanyl distribution ring operating in the Huntington area. Leonard Brandon Joe Rice, 35, was sentenced to two years in federal prison for using a communication facility to facilitate a felony drug offense.
According to the plea agreement and statements made in court, on May 24, 2021, Rice used a telephone to arrange the purchase of fentanyl in Huntington. Rice then traveled from Louisa, Kentucky to Huntington where he received the fentanyl. When Rice returned to Louisa, he was stopped by a trooper with the Kentucky State Police who seized the fentanyl Rice purchased. Rice admitted that he received fentanyl in Huntington from the beginning of 2020 through July of 2021. During that period, Rice redistributed some of the fentanyl he purchased in Huntington to other individuals in the Louisa, Kentucky area.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Southern West Virginia TOC-West Task Force. The Southern West Virginia TOC-West Task Force consists of the Cabell County Sheriff’s Department, the Hurricane Police Department, and the Marshall University Police Department, with support from the West Virginia State Police, the Drug Enforcement Administration (DEA) and the Violent Crime and Drug Task Force West. The Ohio Highway Patrol, the Kentucky State Police, and the FBI and DEA in Columbus, Ohio also assisted in the investigation.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Joseph F. Adams handled the prosecution.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00109.
###
Justice Department and Federal Trade Commission Seek to Strengthen Enforcement Against Illegal MergersRead the Press Release
Today, the Justice Department’s Antitrust Division and Federal Trade Commission (FTC) launched a joint public inquiry aimed at strengthening enforcement against illegal mergers. Recent evidence indicates that many industries across the economy are becoming more concentrated and less competitive – imperiling choice and economic gains for consumers, workers, entrepreneurs and small businesses. These problems are likely to persist or worsen due to an ongoing merger surge that has more than doubled merger filings from 2020 to 2021. To address mounting concerns, the agencies are soliciting public input on ways to modernize federal merger guidelines to better detect and prevent illegal, anticompetitive deals in today’s modern markets.
“Our country depends on competition to drive progress, innovation and prosperity,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “We need to understand why so many industries have too few competitors, and to think carefully about how to ensure our merger enforcement tools are fit for purpose in the modern economy.”
“Illegal mergers can inflict a host of harms, from higher prices and lower wages to diminished opportunity, reduced innovation and less resiliency,” said FTC Chair Lina M. Khan. “This inquiry launched by the FTC and DOJ is designed to ensure that our merger guidelines accurately reflect modern market realities and equip us to forcefully enforce the law against unlawful deals. Hearing from a broad set of market participants, especially those who have experienced first-hand the effects of mergers and acquisitions, will be critical to our efforts.”
Competition is critical to the success of the economy. It ensures that Americans have the freedom to choose among different suppliers and different employers. When businesses face competition, it spurs them to improve their products, develop new ones and lower prices. Mergers can reduce choices for consumers, workers and other businesses, leaving them increasingly dependent on larger and more powerful firms that have purchased greater power to dictate the terms of their deals. To protect competition and prevent increased consolidation, Congress passed a series of antitrust laws and authorized the Justice Department and FTC to enforce them.
The antitrust laws charge the Justice Department and the FTC with preventing mergers that may substantially lessen competition or tend to create a monopoly. Merger guidelines are frameworks for the analysis of mergers under the antitrust laws. The Justice Department first published merger guidelines in 1968, with the goal of providing transparency into the standards it applied in reviewing mergers. Since then, the agencies have published a number of updates, generally specified by whether the transaction is considered horizontal (within the same market) or vertical (within the same supply chain). Although the guidelines identify some of the competitive harms mergers present, markets may fall outside the frameworks under the current approach.
The public inquiry launched today seeks comments on developments in the modern economy and new evidence of mergers’ effects on competition to inform potential revisions to the guidelines. The agencies encourage the public, including market participants, government entities, economists, attorneys, academics, unions, employees, farmers, workers, businesses, franchisees and consumers, to share feedback, evidence and ideas that may inform revisions to the guidelines. Some of the specific areas of inquiry on which the agencies are seeking public input and information include:
- Purpose and scope of merger review: The agencies seek information on whether the guidelines explain and implement the statutory ban on transactions that “may” substantially lessen competition or tend to create a monopoly, and what harms are contemplated by those standards. The agencies further seek input on whether distinctions between horizontal and vertical transactions reflected in the guidelines should be revisited in light of trends in the modern economy.
- Presumptions that certain transactions are anticompetitive: The guidelines identify certain market circumstances that justify a presumption of competitive harm based on market concentration. The agencies seek information on whether concentration thresholds should be adjusted to improve the efficiency and effectiveness of enforcement, whether alternative metrics or qualitative factors should also trigger presumptions of competitive harm, and evidence regarding the accuracy of such presumptions.
- Use of market definition in analyzing competitive effects: The agencies seek input on potential updates to the guidelines’ market definition analysis to better account for non-price competition. They also seek to input on when direct evidence of a transaction’s likely competitive effects, such as evidence of head-to-head competition, may eliminate the need for a separate market definition exercise.
- Threats to potential and nascent competition: The agencies seek input on potential updates to the guidelines’ discussion of potential and nascent competitors, which may be key sources of innovation and competition.
- Impact of monopsony power, including in labor markets: The agencies seek input on how to address the issue of buyer power in more detail in the guidelines. Labor markets are a key example of buyer power, and the agencies seek information regarding how the guidelines should analyze labor market effects of mergers.
- Unique characteristics of digital markets: The agencies seek information on how to account for key areas of the modern economy like digital markets in the guidelines, which often have characteristics like zero-price products, multi-sided markets and data aggregation that the current guidelines do not address in detail.
The Request for Information is available at https://www.regulations.gov/docket/FTC-2022-0003/document.
The comment period is open for 60 days. Comments can be submitted to regulations.gov and must be received no later than Monday, March 21, 2022. The information will be used by the agencies to consider updates and revisions to the guidelines. If such revisions are contemplated in light of the evidence received and the agencies’ independent research, the agencies will publish proposed guidelines for public comment.
Click to view AAG Kanter's remarks.
Click to view Chair Khan's remarks.
Judge sentences Doniphan man to 148 months in federal prison for attempting to meet juvenile for sexRead the Press Release
CAPE GIRARDEAU-The United States Attorney's Office announced that JOSHUA J. DAMON, age 35, was sentenced today to serve 148 months in federal prison following his guilty plea to attempted enticement of a minor. The sentence was imposed by United States District Judge Stephen R. Clark at the federal courthouse in Cape Girardeau, Missouri.
According to court documents, the charges stemmed from an investigation in which a law enforcement officer, posing in an undercover capacity as a 14-year-old boy, began communicating with Damon on a social media platform. During the communications, Damon made repeated requests to meet the minor in person for the purpose of engaging in sexual activity. Arrangements were made to meet at a particular location in Doniphan, Missouri on the evening of February 25, 2021. Law enforcement officials established surveillance and Damon arrived at the agreed upon time with a condom and a jar of lubricant. At his guilty plea hearing last year, Damon admitted that he arrived at the location with the expectation of engaging in sexual activity with a 14-year-old boy.
After serving the 148-month sentence, Damon was ordered to be placed on a lifetime term of supervised release. Damon will also be required to register as a sex offender for life.
This case was investigated by the Missouri State Highway Patrol and the Federal Bureau of Investigation. Assistant United States Attorney Jack Koester handled the prosecution for the government.
Jake’s Fireworks Owner Guilty of Federal Drug Trafficking ViolationsRead the Press Release
BEAUMONT, Texas – Two Jake’s Fireworks defendants, including the owner of the Nederland business, have pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Jake Ellis Daughtry, 35, of Nederland, pleaded guilty to conspiracy to possess with intent to distribute a date rape drug over the internet to an unauthorized purchaser. Kip William Daughtry, 48, of Vidor, pleaded guilty to possession with intent to distribute a controlled substance analogue.
According to information presented in court, Jake Daughtry and Kip Daughtry are the leaders of a Chemical Trafficking Organization (“CTO”) cell operating on a national scale. Investigation of the organization began in 2018 when DEA West Palm Beach, Florida intercepted mail parcels of a chemical identified as 1,4 butanediol, commonly referred to as “BDO.” BDO is a chemical manufactured only for industrial or laboratory use as a floor stripper or vehicle wheel cleaner and is not intended for human consumption. Investigators determined that when BDO is ingested, it immediately metabolizes into GHB (a known date-rape drug) with the same effects, causing potential overdoses, addiction, and death.
DEA traced the seized parcels to their origination point, Right Price Chemicals, a business located on Twin City Highway in Nederland, Texas, and owned by Jake Daughtry. A seasonal fireworks business called “Jake’s Fireworks” is also operated at that location. Customers from all over the United States were able to order quantities of BDO from the Right Price Chemicals website in small amounts to use for personal consumption. The Daughtry’s continued to sell BDO even after becoming aware that some customers were ingesting the substance for its’ narcotic effect, rather than using it for its intended commercial purpose. Agents determined that since 2016, Right Price Chemicals has distributed approximately 7,000 gallons of BDO over thousands of orders, and that those sales generated $4.5 million.
The defendants were indicted by a federal grand jury on June 3, 2020 and face up to 20 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
In addition, Jake Daughtry, Joe Daughtry, Sandra Daughtry, and Kip Daughtry agreed to the entry of a permanent injunction that prohibits them, or Right Price Chemicals, to ever sell or distribute BDO to anyone, anywhere, at any point in the future.
“After being notified by Florida law enforcement that this dangerous and lethal chemical was being sold to users for a nefarious purpose, East Texas law enforcement agencies took action to protect the public and prevent others from falling prey to the sale and use of this dangerous substance,” said U.S. Attorney Brit Featherston. “This was a complicated investigation involving numerous investigative agencies and both the criminal and civil divisions of the U.S. Attorney’s Office. Their collaborative efforts have made our community and country a safer place to live.”
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case is being investigated by the Drug Enforcement Administration West Palm Beach, Florida, and Beaumont; U.S. Postal Service; Internal Revenue Service-Criminal Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Jefferson County Sheriff's Office. Essential support and coordination was provided by numerous components of DEA headquarters and the Department of Justice’s multi-agency Special Operations Division (SOD). This case is being prosecuted by Assistant U.S. Attorneys Christopher Rapp, Donald Carter and Robert Wells.
###
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared recently before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Jan. 10 was:
Eric Charles Swan, 43, of Billings, and Elizabeth Ardelle Grace Ronshaugen, 29, of Billings, on charges of conspiracy to possess with intent to distribute controlled substances and possession with intent to distribute controlled substances. If convicted of the most serious crime, Swan and Ronshaugen face a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Swan and Ronshaugen were detained pending further proceedings. The Eastern Montana High Intensity Drug Trafficking Area Task Force investigated the case. PACER case reference. 21-117.
Appearing on Jan. 11 was:
Lindsay Marie Blunt, 30, of Billings, on charges of possession with intent to distribute cocaine. If convicted of the most serious crime, Blunt faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Blunt was released pending further proceedings. The FBI investigated the case. PACER case reference. 21-84.
Miles Edward Bessman, 49, of Billings, on charges of possession of child pornography. If convicted of the most serious crime, Bessman faces a maximum of 20 years in prison, a $250,000 fine and five years to life of supervised release. Bessman was released pending further proceedings. The Montana Division of Criminal Investigation investigated the case. PACER case reference. 21-83.
Bobby Joe Garcia, 27, a transient, on charges of counterfeit, uttering or passing counterfeit currency. If convicted of the most serious crime, Garcia faces a maximum of 20 years in prison, a $250,000 fine and three years of supervised release. Garcia was detained pending further proceedings. The U.S. Secret Service investigated the case. PACER case reference. 21-101.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Jan. 12 was:
Jeramiah Kayson Gohde, 24, of Belgrade, on charges of prohibited person in possession of a firearm, possession of unregistered firearm, and possession of firearm with obliterated serial number. If convicted of the most serious crime, Gohde faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Gohde was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Bozeman Police Department and Montana Probation and Parole investigated the case. PACER case reference. 22-01.
Appearing on Jan. 13 was:
Larry Craig Layne, 58, formerly of Bozeman, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Layne faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Layne was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Bozeman Police Department investigated the case. PACER case reference. 21-09.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Jan. 11 was:
Monte Clyde Fox, 69, of Kevin, on charges of felon in possession of a firearm and unlawful drug user in possession of a firearm. If convicted of the most serious crime, Fox faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Fox was released pending further proceedings. The FBI investigated the case. PACER case reference. 22-03.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
XXX
Idaho Falls Man Sentenced to over 5 Years in Federal Prison for Trafficking MethamphetamineRead the Press Release
POCATELLO – An Idaho Falls man was sentenced to 68 months in federal prison for possession with intent to distribute methamphetamine.
According to court records, on June 19, 2019, Idaho State Police officers initiated a traffic stop on a van driven by Matthew Gary Leander, III, 39, of Idaho Falls. Law enforcement suspected Leander and his passenger, Kevin Ralph Nixon, 55, also of Idaho Falls, were recently involved in the sale of methamphetamine.
After a short pursuit, law enforcement forcefully stopped the van. Leander then fled on foot and was later apprehend. A search of Nixon’s person yielded a bag that contained methamphetamine and drug paraphernalia. In the vehicle, law enforcement also found 99.54 grams of methamphetamine. Leander admitted at the time of his guilty plea that he possessed the methamphetamine to distribute it to others.
Chief U.S. District Judge David C. Nye also ordered Leander to serve four years of supervised release following his prison sentence. Leander pleaded guilty to the charges on August 18, 2021. On December 6, 2021, Judge Nye sentenced Nixon to three years of probation.
U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the cooperative efforts of the Drug Enforcement Administration, Idaho State Police-District 6, and the Idaho Falls Police Department, which led to charges.
This case was handled by the U.S. Attorney Office’s specially deputized Special Assistant U.S. Attorney (SAUSA), funded by the Eastern Idaho Partnership (EIP) and the State of Idaho. The EIP is a coalition of local city and county officials in eastern Idaho as well as the Idaho Department of Correction.
The EIP SAUSA program allows law enforcement to utilize the federal criminal justice system – through the EIP SAUSA – to prosecute, convict, and sentence violent, armed criminals and drug traffickers. These criminals often receive stiffer penalties than they might in state courts.
This program was created in January 2016. Since that time, approximately 188 defendants have been indicted by the EIP SAUSA. Of these defendants, 127 have been indicted on drug trafficking charges. The defendants indicted under the program have been sentenced to 7,857 months (approximately 655 years) in federal prison, representing an average prison sentence of 53.09 months (4.42 years). Defendants indicted for drug trafficking offenses serve, on average, approximately 42.13 months (3.5 years) in federal prison.
###
Honduran National Indicted for Illegal Re-EntryRead the Press Release
NEW ORLEANS – U.S. Attorney Duane Evans announced today that OLGA MARINA ESTRADA-BARAHONA, age 44, was charged on January 14, 2022 in a one-count indictment for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a).
According to the indictment, OLGA MARINA ESTRADA-BARAHONA (“ESTRADA”), reentered the United States after she was previously deported on January 25, 2006. If convicted, ESTRADA faces up to a maximum term of imprisonment of up two years, a fine of up to $250,000, up to a one-year term of supervised release, and a mandatory $100 special assessment fee.
U. S. Attorney Duane Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement Department in investigating this matter. Assistant U. S. Attorney Carter K. D. Guice, Jr. is in charge of the prosecution.
Hammond Resident Pleads Guilty to Possessing with Intent to Distribute More Than One Kilogram of HeroinRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that JIMMELLE PINES, age 41, a resident of Hammond, Louisiana, pled guilty on January 13, 2022 to Count 1 of the Indictment, charging him with possessing with intent to distribute one (1) kilogram or more of a mixture or substance containing heroin, pursuant to Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A). The defendant faces a minimum sentence of ten (10) years in prison up to a maximum sentence of up to life imprisonment, up to a $10,000,000.00 fine, a period of supervised release of no less than five (5) years, and a $100 mandatory special assessment fee.
According to court records, PINES, when arrested on November 5, 2020 at his grandmother’s property in Ponchatoula, Louisiana, possessed approximately 1.575 kilograms of heroin that he intended to sell. In October 2020, officers working with the Ponchatoula Police Department (“PPD”) and federal agents from Homeland Security Investigations (“HSI”), the investigative branch of the United States Department of Homeland Security, received credible information that PINES stored large quantities of heroin in immobile cars parked on his grandmother’s property in Ponchatoula.
U.S. District Judge Mary Ann Vial Lemmon will sentence PINES on March 24, 2022.
U.S. Attorney Evans praised the work of the Homeland Security Investigations, Hammond Police Department, Ponchatoula Police Department, and Tangipahoa Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney David Howard Sinkman is in charge of the prosecution.
Grand Rapids Man Guilty of Fatal Distribution of Heroin and Fentanyl Causing Two DeathsRead the Press Release
KALAMAZOO, MICHIGAN – On January 13, 2022, a jury found Mustafa Deville Reynolds, 23, of Grand Rapids, guilty of distributing heroin and fentanyl that caused the deaths of two men in Grand Rapids, announced U.S. Attorney Andrew Birge. The two victims were 25 and 27 years old at the time of their deaths.
The evidence at trial showed that the victims were found by their roommates, unresponsive, in the early morning hours of August 21, 2019 – just hours apart from one another. After being transported to the hospital, both men subsequently died from fentanyl and heroin toxicity. Detectives with the Grand Rapids Police Department (GRPD) found cell phone evidence that showed in the evening of August 20, 2019, Reynolds sold the fatal drugs directly to one of the victims, and that Reynolds sold the fatal drugs through a middleman to the other victim. One week later, on August 27, 2019, Reynolds sold a mixture of heroin and fentanyl to an undercover GRPD detective. During the sale, Reynolds pointed to the drugs and told the detective, “Be careful with that one. Don’t do too much.” The jury also convicted Reynolds for the sale to the undercover detective. A forensic chemist with the Michigan State Police testified at trial that one of the baggies of “heroin” that Reynolds sold to the undercover officer was mostly fentanyl, which is a synthetic opioid 100 times more potent than morphine.
“Fentanyl is extremely potent and the deadliest of drugs found on the street. Individuals who order heroin are increasingly receiving fentanyl, a synthetic opioid that is cheaper and easier to produce. Unfortunately, users who ingest fentanyl often do so with deadly consequences,” said U.S. Attorney Birge. “Drug dealers in West Michigan are on notice: if you sell heroin and fentanyl, your product not only causes misery, it causes death. Law enforcement is committed to investigating and prosecuting these cases to ensure that dealers who sell drugs resulting in death are brought to justice,” added U.S. Attorney Birge.
“This case tragically shows the dangers of fentanyl in communities throughout Michigan,” said Kent R. Kleinschmidt, Acting Special Agent in Charge of the U.S. Drug Enforcement Administration’s Detroit Field Division. “While we mourn the lives of those lost, the U.S. Drug Enforcement Administration and our law enforcement partners will work tirelessly to protect our communities from the dangers of illicit drug trafficking and bring justice to those who seek to profit at the expense of human life.”
“The opioid epidemic in Michigan has claimed far too many lives. The Grand Rapids Police Department is committed to seeking out those who sell heroin and fentanyl in the West Michigan area. We are thankful for the partnership of the Drug Enforcement Administration and the United States Attorney’s Office in helping make Grand Rapids a safer community,” said Grand Rapids Police Department Lieutenant Jonathan Wu.
Reynolds will be sentenced by U.S. District Judge Paul L. Maloney this spring. He faces a statutory mandatory minimum sentence of 20 years in prison and up to life in prison for each distribution of heroin and fentanyl that resulted in death, and up to 20 years in prison for selling heroin and fentanyl to the undercover detective. The Grand Rapids Police Department Vice Unit and the Drug Enforcement Administration investigated this case. The case is being prosecuted by Assistant United States Attorneys Dan McGraw and Alexis Sanford.
###
Frankfort Man Sentenced to 42 years for MurderRead the Press Release
LONDON, Ky. - A Frankfort, Kentucky man, Patrick Baker, 43, was sentenced to 42 years in prison, with credit for the 30 months he served in state prison, on Tuesday, by U.S. District Judge Claria Horn Boom, after previously being convicted by a federal jury of murder committed during a drug trafficking crime.
According to testimony at trial, Baker fatally shot Donald L. Mills, Jr., 29, during an armed home invasion, on May 9, 2014, in the Stinking Creek community. Mr. Mills’ pregnant wife and other children were held at gunpoint, while Baker ransacked the victims’ home for oxycodone pills. Baker entered the Mills’ home posing as a United States Marshal.
According to the evidence at trial, the KSP firearm forensics laboratory tied shell casings recovered from the victim’s master bedroom to Baker’s Kel Tec PF9. This gun was later recovered from a mud pit in Bell County. A surveillance video from the London Dollar General also showed Baker purchasing plastic handcuffs, approximately seven hours before the murder. The same handcuffs were later recovered just feet from where the victim was fatally shot. Further, cell tower data was used to trace Baker’s movements, throughout May 8 and 9, from London, to Stinking Creek, to Bell County.
Baker was convicted at trial in August 2021.
“The simple truth of this case is that Patrick Baker was found guilty of planning and committing an armed home invasion, to acquire drugs, where he shot and killed Donald Mills,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “Baker was convicted of a brazen act of violence – one that resulted in a murder, committed while the victim’s family was nearby. I want to commend the dedicated work of all our law enforcement partners and our trial team. Their faithful efforts were critical to the verdict, conviction, and sentence.”
“This was a violent crime that took a victim’s life and devastated a family,” said ATF Special Agent in Charge R. Shawn Morrow of the Louisville Field Division. “ATF is proud to have worked with the Kentucky State Police and the United States Attorney’s Office in bringing justice to this family.”
United States Attorney Shier; Special Agent in Charge Morrow; and Colonel Phillip Burnett, Jr., Commissioner, Kentucky State Police, jointly announced the sentencing.
Under federal law, Baker must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for three years. Baker was also ordered to pay $7,500 for funeral expenses of the victim.
The investigation was conducted by Bureau of Alcohol, Tobacco, Firearm and Explosives and the Kentucky State Police. The United States was represented in the case by Assistant U.S. Attorney Jenna E. Reed.
— END —
Four Sentenced for Bribery and Scheme to Defraud VA and SBARead the Press Release
ANCHORAGE – Four Anchorage individuals involved in a bribery and fraud scheme to obtain Service-Disabled Veteran-Owned Small Business (SDVOSB) government contracts with the U.S. Department of Veterans Affairs (VA) have been sentenced in federal court.
Donald Garner, 50, owner of Veteran Ability, was a government contractor who provided various services to the U.S. government, including the VA in Anchorage. Richard Vaughan, 74, worked at the Anchorage VA as a contract officer representative responsible for awarding and managing numerous contracts for the VA, including a $700,000 SDVOSB contract to perform snow removal services at the Anchorage VA.
Between 2015 and 2017, Garner directed his bookkeeper Yalonda Moore, 52, to deliver more than $29,000 in bribe payments to Vaughan. In exchange, Vaughan gave preferential treatment to Garner by selecting Veteran Ability to complete dozens of “purchase card” jobs at the Anchorage VA, totaling more than $100,000. Vaughan also approved numerous invoices submitted by Garner related to the snow removal contract for work that was either unnecessary or never actually performed, causing the government an estimated $347,000 in losses.
Garner and Vaughan each pleaded guilty to one count of bribery involving a public official and were sentenced to one year and one day in federal prison, followed by three years of supervised release. They must also pay $347,000 in restitution to the VA.
Additionally, between 2014 and 2016, Dale Johnson, 50, owner of ADALECO General LLC, conspired with Garner to perpetrate a “pass-through” scheme in which Johnson allowed Garner to use ADALECO’s name to bid on and obtain SDVOSB set-aside contracts for which Garner’s company was not eligible, including the VA snow removal contract. Although ADALECO was expected to perform the work, Garner’s company illegally assumed control of the contract and received the majority of the profits. In return, Garner paid Johnson a percentage of the contract as a kickback, totaling $54,302.
Johnson pleaded guilty to one count of conspiracy to defraud the United States and was sentenced to five years’ probation and ordered to pay $54,302 in restitution.
The FBI and the VA Office of the Inspector General began investigating Garner, Vaughan, and Johnson in 2016. During that investigation, Moore, who worked as a bookkeeper for both Veteran Ability and ADALECO, intentionally obstructed the government’s investigation by tipping off Garner about the FBI’s investigation plans. Prior to that Moore had been purporting to cooperate with the government’s investigation. Moore recently pleaded guilty to one count of obstruction of justice and was sentenced to three years’ probation.
“The bribery and fraud scheme by these defendants not only cheated the government, but simultaneously diverted work from eligible, law-abiding service-disabled veterans,” said John E. Kuhn, Jr. U.S. Attorney for the District of Alaska. “The U.S. Attorney’s Office will prosecute every unlawful attempt to corrupt the government contracting process and will work to ensure that no one profits from such efforts.”
“At the expense of U.S. taxpayers, these individuals traded their integrity for greed, and undermined the VA’s efforts to lawfully contract with service-disabled veteran-owned businesses in Alaska,” said Assistant Special Agent in Charge Shawn Peters of the FBI Anchorage Field Office. “Dismantling criminal enterprises involving bribery and corruption will always be a priority for the FBI, and together with our law enforcement partners, we will hold those accountable who take part in such schemes.”
The Federal Bureau of Investigation, the U.S. Department of Veterans Affairs Office of the Inspector General, the Small Business Administration Office of the Inspector General, and the General Services Administration Office of the Inspector General investigated the case.
Assistant U.S. Attorney Ryan Tansey prosecuted the case.
###
Note to Editors:
- Garner case: 3:19-cr-00120-SLG-DMS
- Vaughan case: 3:19-cr-00120-SLG-DMS
- Johnson case: 4:19-cr-00018-RRB-SAO
- Moore case: 3:21-cr-00084-JMK-MMS
The United States Small Business Administration (SBA) is an independent agency of the federal government responsible for aiding, counseling, assisting and protecting the interests of small business concerns. The SBA and VA administer a program to award SDVOSB contracts which can only be awarded to small businesses owned and controlled by qualified Service-Disabled Veterans (SDVs)
Service-Disabled Veteran-Owned Small Business (SDVOSB) is a small business that is 51% unconditionally owned and controlled by a service-disabled veteran. Through the SDVOSB, the federal government aims to award at least three percent of all federal contracting dollars to SDVOSBs each year. Competition is limited for certain federal contract opportunities to businesses that participate in the SDVOSB program.
More information about veteran assistance programs can be found here: https://www.sba.gov/federal-contracting/contracting-assistance-programs/veteran-assistance-programs#section-header-11
Former U.S. Postal Employee Sentenced for Stealing from Greeting CardsRead the Press Release
Benton, Ill. – Casey L. Neal, 31, of Belle Rive, Illinois (Jefferson County), was
sentenced this afternoon to 2 years’ probation and was ordered to pay restitution to her victims.
Neal pled guilty in October 2021, to theft of mail by a postal service employee.
In January and February 2021, while working as a substitute sales and distribution clerk at the
Belle Rive, Dahlgren, and Macedonia post offices, Neal stole over $300 worth of cash and gift cards
from greeting cards that were sent through those post offices. Neal used some of the gift cards to
purchase money orders used to pay her personal creditors. After being alerted to the thefts,
investigators located other gift cards from retailers and restaurants, including Dick’s Sporting
Goods, Chik-fil-A, and Dairy Queen, which Neal had stolen from the mail.The case was investigated by the United States Postal Service, Office of the Inspector General.
The case was prosecuted by Assistant United States Attorney Zoe J. Gross.Former Executive Vice President of T.J. Martell Foundation Charged with Embezzling over $3.7 MillionRead the Press Release
NASHVILLE – A criminal Information filed today charges Melissa Goodwin, 55, of Nashville, Tennessee, with wire fraud in relation to a fraudulent scheme in which she embezzled over $3.7 million from the T.J. Martell Foundation for Cancer Research, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
The T.J. Martell Foundation is the music industry’s leading foundation that funds innovative medical research focused on finding treatments and cures for cancer. The Foundation raises money for cancer research by soliciting in-kind donations from celebrities and then auctioning off those donations for a profit. Goodwin had been employed at the Foundation since 2005 and was the Executive Vice President and General Manager of the Foundation from 2018 until July 2020.
According to the charging document, between July 2018 and June 2020, Goodwin devised a scheme to defraud the T.J. Martell Foundation by purchasing approximately $3.96 million in tickets from online ticket vendors Ticketmaster, Stubhub, Primesport, and On-Location, using a Foundation credit card she had obtained in her own name. These tickets were not for a legitimate Foundation purpose and included tickets to musical concerts such as Lady Gaga and Celine Dion, and some were to sporting events, such as Super Bowl LIV, which was scheduled to take place in Miami, Florida, on February 2, 2020.
Goodwin provided these tickets to an individual in New York City who owned and operated a charity auction business. This business conducted auctions for clients, offering consignment items such as event tickets and sports memorabilia to the clients for use in their auctions. As part of the scheme, Goodwin led this individual to believe that she had acquired the tickets at no cost or at a discounted rate. Goodwin also used the Foundation’s credit card to purchase other items that were not for legitimate Foundation purposes, such as expensive and rare alcohols, plane tickets, and hotel stays. She then used the Foundation’s bank accounts to pay the credit card charges.
In order to conceal the ticket purchases, Goodwin provided falsified credit card statements and false expense reports to the Foundation’s accounting firm. Goodwin falsified the credit card statements by altering them to conceal the ticket purchases, as well as other expenses. She often replaced the name of the actual vendor with the name of a different vendor so that the charges appeared to be legitimate Foundation expenses. In total, Goodwin concealed over $3 million in fraudulent credit card expenses.
The Foundation’s accounting firm prepared the Foundation’s periodic financial statements based on these falsified credit card statements and expense reports. The accounting firm then emailed those statements to Goodwin, whose job it was to provide them to the Foundation’s CEO.
However, before providing them to the CEO, Goodwin falsified those financial statements by inflating the Foundation’s assets and lowering its liabilities to make the Foundation appear to be more liquid than it was at the time. These falsifications prevented the Foundation from detecting Goodwin’s fraudulent transactions.
In addition to falsifying the credit card statements and financial statements, Goodwin forged the signature of the Foundation’s CEO on six checks totaling $966,275.78 that were not approved by the Foundation.
If convicted, Goodwin faces up to 20 years in prison and a fine of up to $250,000.
The government also seeks the forfeiture of at least $3,765,606.77, which represents the proceeds of the alleged crime.
This case was investigated by the FBI. Assistant U.S. Attorney Kathryn W. Booth is prosecuting the case.
The charges contained in the Information are merely accusations. The defendant is presumed innocent until proven guilty in a court of law.
# # # # #
Former City of New Orleans Building Inspector SentencedRead the Press Release
NEW ORLEANS, LA – The U.S. Attorney’s Office announced today that KEVIN RICHARDSON, 59, of New Orleans, was sentenced on January 13, 2022 by United States District Judge Susie Morgan to thirty (30) months in the Bureau of Prisons for violating Title 18, United States Code, Sections 1952(a)(3) and 2, use of an interstate facility with intent to carry on unlawful activity.
According to the court documents, RICHARDSON was employed as a building inspector for the City of New Orleans and utilized the internet-based City of New Orleans’ LAMA system to alter and/or delete city documents and submit material information. He solicited and accepted approximately $65,000 in bribe payments from individuals seeking favorable inspection reports and certificates of completion for properties that did not comply with the city and state building codes and for properties that had not been inspected. He also paid bribe money to a City of New Orleans permit analyst for the issuance of permits without proper documentation and plan review.
RICHARDSON’s sentence will be followed by one (1) year of supervised release. He was also ordered to pay a mandatory $100 special assessment fee.
This matter was investigated by the City of New Orleans Office of Inspector General, Housing and Urban Development, Office of Inspector General, and the Department of Homeland Security, Office of Inspector General. Assistant United States Attorney Tracey N. Knight is prosecuting the matter.
Former CEO of recycling firm sentenced to second prison term for tax fraudRead the Press Release
Seattle – The former owner and co-CEO of an electronics recycling firm was sentenced today in U.S. District Court in Seattle to 6 months in prison for tax fraud, announced U.S. Attorney Nick Brown. Jeffrey Zirkle, 58, of Gig Harbor, Washington, was the owner and co-CEO of Total Reclaim, the Northwest’s largest recycler of electronic waste. In 2019, Zirkle was sentenced to 28 months in prison for defrauding clients by secretly exporting electronic waste to Hong Kong, despite presenting his business as an environmentally-friendly recycling service. Today’s second criminal case stems from Zirkle using company funds to pay for his personal expenses and failing to report the transactions on his income tax returns.
At today’s sentencing hearing U.S. District Judge James L. Robart said, “He’s been defrauding the company and defrauding the government for years…. He has no respect for the law whatsoever.” Judge Robart ordered Zirkle to pay $125,549 in restitution to the government.
“Those who fail to pay their taxes are not just cheating the government, they are also stealing from taxpayers who are following the rules. But despite earning nearly $1 million a year in salary, Mr. Zirkle refused to pay his fair share,” said U.S. Attorney Nick Brown. “At the same time that he was misleading customers about his company’s business practices, he was also lying to the IRS by mischaracterizing his personal expenses as business expenses. No one is above the law.”
According to records filed in the case, following the prosecution of Zirkle and his partner for fraud, a new CEO took over Total Reclaim. That executive discovered Zirkle had embezzled from the company by charging hundreds of thousands of dollars in personal expenses on company credit cards. An investigation by the FBI and IRS:CI determined that as much as $480,000 were for personal items and that Zirkle never reported those benefits on his income tax returns. Many of the charges involved the purchase of luxury goods: more than $4,000 at Louie Vuitton Las Vegas, $4,000 as a down payment on a motocross bike, and over $15,000 for the partial payment of a vintage 1966 Chevrolet Chevelle. Zirkle also spent over $17,000 in corporate funds on a single day to purchase home appliances, and over $15,000 on a home irrigation system. Even after his sentencing on the fraud charges in April 2019, Zirkle continued to use the corporate credit card for his own expenses charging over $5,000 for septic work on his home.
In October 2021, Zirkle pleaded guilty to filing false tax returns from 2008 to 2017. Zirkle negotiated a settlement with Total Reclaim regarding the expenses. Zirkle was ordered to pay $125,549 in restitution for the tax loss.
“Mr. Zirkle not only defrauded the Government and endangered the environment, Mr. Zirkle also had the audacity to further line his pockets by stealing from his own company,” said Special Agent in Charge Bret Kressin, IRS Criminal Investigation (IRS:CI), Seattle Field Office. “IRS:CI is committed to investigating financial and tax crimes, and we will not let these crimes go unnoticed. Today’s sentence is proof of this commitment, and the sentence represents further justice for Mr. Zirkle’s schemes.”
In the earlier criminal case, an EPA investigation concluded that Total Reclaim had secretly exported over eight million pounds of monitors containing toxic materials such as mercury. The investigation revealed that Zirkle and his co-defendant had concealed this practice by submitting fraudulent documents to auditors and customers, and had falsified more documents when the practice was discovered.
Due to concern about the pandemic, Judge Robart ordered Zirkle to begin serving his sentence in early August. Over the objections of the prosecutor, Zirkle asked for the delay in serving his time, so he could attend two family weddings. Zirkle will be on 18 months of supervised release for the tax crimes following his prison term.
The tax case was investigated by the FBI and Internal Revenue Service Criminal Investigation (IRS:CI).
The case was prosecuted by Assistant United States Attorney Seth Wilkinson.
Father and Son Plead Guilty to Charge of Conspiracy to Defraud Their Former EmployerRead the Press Release
OAKLAND – Anthony Giovanni Montanelli and his father, Steven John Montanelli each pleaded guilty today to one count of conspiracy to commit mail fraud in connection with a scheme to divert medical equipment owned by Kaiser Foundation Hospitals and Health Plan, Inc. (Kaiser) for use in their own San Jose-based company, announced United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Craig Fair. The guilty pleas were accepted by the Hon. Jon S. Tigar, U.S. District Judge.
Anthony Montanelli, 34, and his father Steven Montanelli, 63, both of San Ramon, pleaded guilty to the charges pursuant to separate plea agreements entered by the court. According to the plea agreements, the defendants worked as biomedical engineers at Kaiser, responsible for repairing and servicing Kaiser ultrasound systems used at its medical facilities located throughout the Bay Area. The defendants used their positions at Kaiser to order new ultrasound parts that were supposed to be used to repair, replace, and/or maintain Kaiser’s medical equipment, but instead were diverted to their own business, Pacific Coast Imaging (PCI). They then sold the diverted equipment through PCI for their own profit. The father and son also admitted operating their scheme and business, which they did not disclose to Kaiser, while being paid by Kaiser to service Kaiser-owned equipment.
The defendants admitted that, beginning February 2010 and continuing through about April 2018, they worked together to defraud Kaiser. Specifically, the defendants rented storage units in which they stockpiled new, used, and decommissioned Kaiser-owned ultrasound systems and parts. Some of the Kaiser inventory they ordered through Kaiser became PCI inventory, which they sold and leased to PCI customers. The defendants acknowledged that for years they caused Kaiser’s procurement specialists to process, order, and have mailed to them an unknown number of ultrasound parts which they diverted to PCI. Further, the defendants admitted that they recorded parts and systems as decommissioned when, in fact, the equipment was diverted to PCI. In sum, the defendants both admitted they diverted Kaiser-owned equipment to PCI, operated PCI while employed by Kaiser, and used work hours paid for by Kaiser to operate PCI. The defendants admitted that the loss to Kaiser resulting from the conspiracy exceeded $1,500,000.
A federal grand jury issued a superseding indictment on June 10, 2021, charging each defendant with one count of conspiracy to commit mail fraud, in violation of 18 U.S.C. § 1349. Both defendants pleaded guilty to the count. The conspiracy charge carries a maximum statutory penalty of 20 years in prison and a fine of up to $250,000. The court also may order additional terms of supervised release, fines, forfeitures, and restitution; however, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Thomas Green and Garth Hire are prosecuting the case, with the assistance of Kay Konopaske and Noble Hughes. The prosecution was the result of an investigation by the Federal Bureau of Investigation.
Contractor Sentenced for Attempting to Evade Paying Taxes on Nearly Two Million Dollars of Unreported IncomeRead the Press Release
PROVIDENCE, R.I. – A Boston-area contractor who frequently traveled to Rhode Island to cash business checks at a check-cashing business as part of a scheme to not report or pay taxes on nearly $2 million in income was sentenced today in U.S. District Court in Providence, announced United States Attorney Zachary A. Cunha.
Richard Karski, 60, owner and operator of K.C.O. Builders, pleaded guilty on October 7, 2021, to attempt to evade or defeat tax.
In pleading guilty, Karski admitted that for tax years 2015 through 2018, he failed to declare any income or pay any taxes on approximately $1,917,658 in business and personal income.
Karski admitted that as part of his scheme, he frequented a Pawtucket, RI, check-cashing business where he cashed checks he received from clients. The income was never reported to the Internal Revenue Service. In total, Karski failed to pay $179,182 in taxes.
At sentencing, U.S. District Court Judge Mary S. McElroy sentenced Karski to two years federal probation and ordered him to pay $179,182 in restitution to the Internal Revenue Service.
The case was prosecuted by Assistant U.S. Attorney Lee H. Vilker.
The matter was investigated by Internal Revenue Service Criminal Investigation.
###
Coastal NC Drug Trafficker Sentenced to 12 YearsRead the Press Release
RALEIGH, N.C. – An Elizabeth City man was sentenced Friday to 144 months in prison for distributing cocaine, cocaine base (crack), and fentanyl. On June 23, 2021, Maurice Dwight Toxey pled guilty to the charges.
According to court documents and other information presented in court, Toxey, 37, was involved in the distribution of narcotics including cocaine, crack, methamphetamine, heroin, and fentanyl in the communities surrounding Elizabeth City and the Outer Banks. Law enforcement was able to conduct controlled purchases of drugs from Toxey, including some deals while Toxey was on state probation. Toxey has previously been convicted of crimes involving the distribution or possession with the intent to sell or deliver controlled substances.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Federal Bureau of Investigation, United States Marshals Service, Currituck County Sheriff’s Office, Pasquotank County Sheriff’s Office, Dare County Narcotics Task Force, Elizabeth City Police Department, and Kitty Hawk Police Department investigated the case and Assistant U.S. Attorney Nick J. Miller prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 2:21-CR-10-D.
Chicago Heights Woman Sentenced to 37 Months of ImprisonmentRead the Press Release
HAMMOND-Tanisha Bledsoe,48, of Chicago Heights, Illinois, was sentenced by United States District Court Chief Judge Jon E. DeGuilio following her guilty plea to wire fraud, announced United States Attorney Clifford D. Johnson.
Bledsoe was sentenced to 37 months in prison followed by 1 year of supervised release. Bledsoe was ordered to pay $2,167,710 in restitution to the Internal Revenue Service.
According to documents filed in the case, on or about January 21, 2016, Bledsoe assisted in the preparation and filing of a false 2015 tax return for a client. Bledsoe used the internet and an online company to create and file a fabricated W-2 form for the purpose of supporting the false wage income on the client’s tax return. Bledsoe then filed the tax return knowing that it was false. In total, Bledsoe admitted that she assisted in the preparation of 540 false tax returns as part of this scheme.
This case was investigated by the Internal Revenue Service, Criminal Investigative Division. This case was prosecuted by Assistant U.S. Attorney Jennifer Chang.