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2 March 2022
Final Four Defendants, Including Former Correctional Officer, Plead Guilty to Federal Racketeering Conspiracy Charge in Connection with a Prison Corruption Scheme at Jessup Correctional InstitutionRead the Press Release
Greenbelt, Maryland – A former Correctional Officer, two inmates, and an outside “facilitator” have pleaded guilty to a federal racketeering conspiracy at the Jessup Correctional Institution (JCI), involving inmates and outside facilitators paying bribes to correctional officers to smuggle contraband, including narcotics, alcohol, tobacco, and cell phones into the prison. As a result of the guilty pleas entered yesterday and today, all 15 defendants charged in this case have now pleaded guilty. The following individuals entered their guilty pleas this week:
Former Correctional Officer Dominique Booker, age 45, of Baltimore; Inmates William Cox, a/k/a Dollar, age 45 and Vernard Majette a/k/a Nard, age 40; and
Facilitator Vonda Bolden, age 57, of Baltimore.The guilty pleas were announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski, of the Federal Bureau of Investigation, Baltimore Field Office; and Secretary Robert Green, of the Maryland Department of Public Safety and Correctional Services.
JCI is a maximum-security prison located in Jessup, Maryland.
According to the defendants’ plea agreements, Booker, Cox, Majette, and Bolden conspired with other COs, inmates, and outside facilitators to smuggle contraband into JCI, including narcotics, alcohol, tobacco, and cell phones. According to their plea agreements and other court documents, COs accepted or agreed to accept payments from facilitators and/or inmates as consideration for smuggling contraband into JCI. Inmates acted as both wholesalers and retailers of contraband, often obtaining profits that far exceeded the profits that could be made by selling similar drugs on the street.
During the investigation, law enforcement intercepted phone calls and text messages in which the defendants discussed contraband to be smuggled into JCI, as well as the payment of bribes. Several of the inmate defendants, including Cox and Majette, had contraband cell phones, which they used to facilitate their smuggling activities. As detailed in her plea agreement, CO Booker conspired with inmate Cox, with whom she had a romantic relationship, and others, to smuggle contraband, including controlled dangerous substances, such as Suboxone, into JCI and then distribute the contraband to inmates. In January 2019, a search of Booker and her vehicle as she entered JCI revealed contraband, including plastic baggies containing the synthetic cannabinoid K-2, which she intended to smuggle into the prison.
As detailed in Bolden’s plea agreement, she was the facilitator for her son and co-defendant, inmate Marshall Hill, a/k/a “Boosie.” Bolden admitted that at Hill’s direction she made bribe payments, obtained contraband, met with co-conspirators to deliver contraband, and communicated with other JCI inmates to facilitate the movement of contraband within JCI.
The defendants each face a maximum sentence of 20 years in prison for the racketeering conspiracy. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge Theodore D. Chuang has scheduled sentencing for Booker and Cox on June 7, 2022; for Bolden on July 29, 2022; and for Majette on August 1, 2022.
The other 11 defendants previously pleaded guilty to their roles in the racketeering conspiracy. Nine of those defendants have been sentenced, including Marshall Hill, a/k/a “Boosie,” age 30, who pleaded guilty to the racketeering conspiracy and was sentenced to four years in federal prison.
The U.S. Attorney expressed appreciation to the Department of Public Safety and Correctional Services, whose staff initiated the JCI investigation and have been full partners in this investigation.
This case is also part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Erek L. Barron commended the FBI and the Department of Public Safety and Correctional Services for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Christopher M. Rigali, who is prosecuting this case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Final Defendant Pleads Guilty in Muscogee County Clerk Fraud CaseRead the Press Release
COLUMBUS, Ga. – An Alabama resident admitted her guilt today in a scheme orchestrated by her son-in-law that cost Muscogee County taxpayers millions of dollars.
Rosalie Bassi, 66, of Phenix City, Alabama, pleaded guilty to one count interstate transportation of stolen property before U.S. District Judge Clay Land. Bassi faces a maximum sentence of ten years imprisonment to be followed by three years of supervised release and a $250,000 fine. Sentencing is scheduled for June 2.
“Rosalie Bassi cashed more than $61,000 in checks belonging to the Muscogee County Clerk’s Office, given to her by her son-in-law, Willie Demps. She did this many times and pocketed the cash, profiting off the backs of taxpayers,” said U.S. Attorney Peter D. Leary. “This extensive and treacherous theft would not have come to light without the assistance of the current Clerk of Courts, Danielle Forte, who called for an audit when she took office, discovered the fraud and took immediate action. Now, thanks to the efforts of federal and local law enforcement, the players involved in this long deceit have been held accountable for their federal crimes.”
"This was a methodical plan by Bassi, Demps and others to knowingly steal money from the taxpayers of Muscogee County," said Philip Wislar, Acting Special Agent in Charge of FBI Atlanta. "Public corruption is the highest criminal priority for the FBI. We will always work with our local and federal partners to protect our citizens against officials who abuse their positions of trust."
“I am pleased with the outcome of this investigation. I want to thank all of our officers and our federal partners who worked diligently throughout this case. Any individual that seeks illegal gain from our taxpayers will be held accountable, just like everyone involved in this case,” said Columbus Police Department Chief Freddie Blackmon.
Willie Demps, 64, of Phenix City, Alabama, and the former Deputy Clerk of Courts for Muscogee County, Georgia, pleaded guilty to one count conspiracy to commit bank fraud and two counts tax evasion on Feb. 1. Demps faces a maximum sentence of 30 years of imprisonment for the conspiracy charge to be followed by five years of supervised release and a $1,000,000 fine. Demps faces a maximum five years of imprisonment for each tax evasion charge to be followed by three years of supervised release and a $100,000 fine. Demps will also pay restitution in an amount ordered by the Court at sentencing. Sentencing is scheduled for June 2, 2022.
The following co-defendants pleaded guilty to conspiracy to commit bank fraud and will be subject to a statutory maximum of 30 years in prison to be followed by five years of supervised release and a $1,000,000 fine; in addition, each defendant will pay restitution in the amount of the checks cashed:
Curtis Porch, 48, of Columbus, pleaded guilty on Nov. 30, 2021, and sentencing is scheduled for June 2, 2022;
Dereen Porch, 43, of Columbus, pleaded guilty on Nov. 30, 2021, and sentencing is scheduled for June 2, 2022;
Terry McBride, 43, of Smiths Station, Alabama, pleaded guilty on Oct. 26, 2021, and sentencing is scheduled for June 2, 2022;
Samuel Cole, 72, of Columbus, pleaded guilty on Oct. 5, 2021, and sentencing is scheduled for June 2, 2022; and,
George Cook, 33, of Columbus, pleaded guilty on Sept. 21, 2021, and sentencing is scheduled for June 2, 2022.
The following co-defendant pleaded guilty to misprision of a felony and faces a maximum three years in prison to be followed by one year of supervised release and a $250,000 fine:
Lamarcus Palmer, 34, of Smiths Station, Alabama, pleaded guilty on Oct. 5, 2021, and sentencing is scheduled for June 2, 2022.
According to court documents, Bassi admits she was contacted by her son-in-law, Willie Demps, approximately 16 times between Sept. 2015, and Feb. 2019, in order to cash checks belonging to the Muscogee County Clerk’s Office, where he was employed. Bassi cashed checks amounting to approximately $61,896.46, keeping the money and taking it to her home in Phenix City.
Demps worked for the Muscogee County Clerk for approximately 30 years and supervised money deposits received by the Clerk’s Office. The Clerk’s Office received money from fines and condemnations, and payments were frequently made in cash. From at least 2010 to 2019, Demps maintained a safe in his office to store sums of cash that were collected by the Clerk’s Office. During the business day, this safe was rarely locked, even when Demps was away from his office. Demps (or his designee) was responsible for depositing cash received by the Clerk’s Office into an appropriate Clerk of Superior Court bank account. Records indicate that the Clerk’s Office received over $5.5 million in cash during the period of 2010-2019, yet only a single cash deposit of approximately $210 was made into official Columbus accounts in 2019. No cash deposits were made in other years.
From Oct. 19, 2010, to approximately Nov. 27, 2019, Demps issued at least 330 Clerk of Superior Court checks payable to the named co-defendants, and to some individuals not named, with a face value of at least $1.3 million. Bank records prior to Oct. 19, 2010, are not available, and the Muscogee County Clerk’s Office records prior to that date cannot be obtained. Demps would meet various co-defendants in locations away from his place of business at the Clerk’s Office to give the illicit checks to them to be cashed at banks in Columbus and in nearby Alabama. The co-defendants cashed the checks and returned the money to Demps, who would give the participating co-defendant a portion of the money. Demps admits he used the money for personal expenses, to send money to foreign countries and to spend at casinos.
Demps received cash deposits to his bank during the tax years 2018-2019, which he now admits were not the result of direct deposits from his lawful salary but rather proceeds from the money he stole from the Muscogee County Clerk’s Office. This money was not reported to the IRS and resulted in tax liability. Demps deposited $147,455 in cash in 2018 and $327,787 in cash in 2019 and fraudulently failed to account for these amounts as income on his tax returns. The IRS calculated Demps’s total amount of tax due from years 2015 to 2019 as $359,604.
FBI and the Columbus Police Department investigated the case.
Assistant U.S. Attorney Amy Helmick is prosecuting the case. Retired Assistant U.S. Attorney Mel Hyde initiated the prosecution of this case.
Felon sentenced for trafficking methRead the Press Release
CORPUS CHRISTI, Texas – A 32-year-old McAllen resident has been ordered to federal prison following his conviction of conspiring with the intent to distribute more than seven kilograms of meth, announced U.S. Attorney Jennifer B. Lowery.
Alberto Velasquez pleaded guilty Nov. 29, 2021.
Today, U.S. District Judge Nelva Gonzales Ramos ordered Velasquez to serve 180 months in federal prison to be immediately followed by 10 years of supervised release. In handing down the sentence, the court noted Velasquez had been previously convicted of conspiring to possess with the intent to distribute more than 105 kilograms of marijuana in 2009.
The conspiracy began in June 2020. Velasquez had purchased a Honda CRV and modified the vehicle by constructing a hidden compartment behind the front license plate to conceal the presence of narcotics. He and his co-conspirators later traveled to Mexico and loaded the vehicle with multiple kilograms of pure meth before importing it into the United States through the checkpoint located in Falfurrias.
However, in August 2020, a service canine alerted to Velasquez’s vehicle and authorities discovered more than seven kilograms of pure meth concealed within the hidden compartment.
Velasquez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with assistance of BP. Assistant U.S. Attorney Roland Swanson prosecuted the case.
Roland Swanson prosecuted the case.
Federal Jury Convicts Minneapolis Man for Illegal Possession of a FirearmRead the Press Release
MINNEAPOLIS – A federal jury convicted a Minneapolis man of illegally possessing a firearm as a felon while on probation for a prior federal firearms conviction, announced Acting U.S. Attorney Charles J. Kovats.
Following a two-day trial before U.S. District Court Judge Eric C. Tostrud, Demetrius Demarco Spencer, 38, was convicted yesterday afternoon of a single count of possessing a firearm as a felon. A sentencing date will be scheduled at a later time.
According to the evidence presented at trial, on July 22, 2020, at approximately 2:30 a.m., a St. Paul police officer encountered a man who was visibly distressed walking through a residential neighborhood. The man told the officer that he had been inside a residence with Spencer and Spencer’s girlfriend when Spencer became upset with the man. The man explained that Spencer had pulled out a gun, pointed it at the man and threatened him. St. Paul police officers went to the residence and found Spencer inside the house, wrestling his girlfriend. Officers were able to intervene in the struggle and take Spencer into custody. Officers recovered a Kahr model PM9, 9mm semi-automatic handgun that was on the floor in close proximity to where the struggle took place.
Spencer has multiple prior felony convictions in Hennepin and Ramsey Counties, and one prior federal conviction. In January 2013, Spencer was convicted in federal court in the District of Minnesota on one count of possession of a firearm as a felon and was sentenced to 80 months in prison followed by three years of supervised release.
This case was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Minnesota Bureau of Criminal Apprehension, and the St. Paul Police Department.
This case was tried by Assistant U.S. Attorneys Allison K. Ethen and Thomas Calhoun-Lopez.
Federal Inmate Sentenced to 12 Months’ Imprisonment for Assaulting Correctional OfficerRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on March 1, 2022, inmate William Henry Foster, age 35, was sentenced to 12 months’ imprisonment by United States District Court Chief Judge Matthew W. Brann for an assault of a federal officer inflicting bodily injury. Foster’s sentence will run consecutively to his current 300-month federal sentence for conspiring to commit murder.
According to United States Attorney John C. Gurganus, on September 16, 2019, at the United States Penitentiary, Allenwood, in White Deer, Pennsylvania, Foster aggressively confronted a Bureau of Prisons senior officer in Foster’s housing unit. The officer ordered Foster to leave the unit, but Foster became increasingly upset and refused to leave. The officer then attempted to physically remove Foster from the unit, prompting Foster to punch the officer in the head and torso. Prison staff ultimately subdued Foster. The officer sustained abrasions on his left hand and neck and a head contusion.
The case was investigated by the Federal Bureau of Prisons and the Federal Bureau of Investigation. Special Assistant U.S. Attorney Drew O. Inman and Assistant U.S. Attorney Alisan V. Martin prosecuted the case.
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Enlisted Sailor Stationed in Belle Chasse, Louisiana, Charged with Producing Files Depicting the Sexual Victimization of Children, Extorting People to Send Sexually Explicit Depictions, and Possessing Child Sexual Abuse MaterialRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that BIAGIO WILLIAM AMBROSINO, age 19, originally from Queens, NY, who is now an enlisted sailor stationed in Belle Chasse, Louisiana, was charged by a federal grand jury sitting in the Eastern District of Louisiana in a five-count indictment with producing images and videos depicting the sexual exploitation of a female born in August 2004 (Count 1), and a male born in August 2005 (Count 2), in violation of 18 U.S.C. ' 2251(a), transmitting interstate threats to a sixteen-year-old female for the purpose of extorting a thing of value, in violation of Title 18, United States Code, Section 875(b) (Count 3), transmitting interstate threats to an adult female for the purpose of extorting a thing of value, in violation of Title 18, United States Code, Section 875(d) (Count 4), and possessing sexually explicit depictions of children under the age of twelve years old, in violation of Title 18, United States Code, Section 2252(a)(4)(B) (Count 5). Specifically, AMBROSINO is alleged to have extorted his victims into sending him additional sexually explicit depictions by threatening to injure any person and “expose” victims by sending prior depictions to family members. AMBROSINO is alleged to have committed the offenses between August 2020 and January 19, 2022. AMBROSINO was charged on February 25, 2022; the indictment was unsealed after he was taken into custody on February 28, 2022.
AMBROSINO faces a mandatory minimum term of imprisonment of fifteen (15) years and a maximum term of imprisonment of thirty (30) years as to each of Counts 1 and 2, a maximum term of imprisonment as to each of Counts 3 and 5 of twenty (20) years, and a maximum term of imprisonment as to Count 4 of two (2) years. AMBROSINO also faces up to a lifetime of supervised release for counts 1,2, and 5. For counts 3-4, he faces up to three (3) years and one (1) year, respectively. For each count AMBROSINO may be fined up to $250,000 and be required to pay a $100 mandatory special assessment fee.
U. S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Evans praised the work of the Naval Criminal Investigative Service (NCIS) in investigating this matter, with assistance from the New York Police Department. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Elizabeth Man Sentenced to Prison for Distributing Drugs Supplied by DS44 Gang MembersRead the Press Release
PITTSBURGH - A resident of Elizabeth, Pennsylvania, has been sentenced in federal court to 68 months’ imprisonment and three years’ supervised release on his conviction of violating federal narcotics and firearms laws, United States Attorney Cindy K. Chung announced today.
United States District Judge William S. Stickman, IV imposed the sentence on Dontae Gilbert, age 21, of Elizabeth, Pennsylvania. Gilbert is one of 40 defendants charged in the Indictment and Superseding Indictment returned in the case.
According to information presented to the court, in 2017, the Greater Pittsburgh Safe Streets Task Force initiated an investigation primarily targeting the Darccide/Smash 44, or DS44, neighborhood gang, and its drug-trafficking activity in and around the South Side area of Pittsburgh. Gilbert was identified as a low-level distributor of heroin and fentanyl supplied by members of the organization. During the investigation, agents executed a search warrant on April 12, 2019, of Gilbert’s residence and found him in possession of 13 stamp bags containing a mixture of heroin and fentanyl, a loaded pistol, and drug packaging and weighing materials.
Prior to imposing sentence, Judge Stickman emphasized the very serious nature of the defendant’s conduct and the scourge that heroin and fentanyl trafficking has had on the larger community. In imposing the minimum sentence, the court recognized Gilbert’s youth, supportive family, and his genuine desire to educate himself while serving his sentence and to start a productive life upon release.
Assistant United States Attorneys Carolyn J. Bloch and Brendan J. McKenna prosecuted this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
El Paso Man Sentenced to 10 Years for Enticing a MinorRead the Press Release
EL PASO – A 36-year-old El Paso man was sentenced to 10 years in prison for attempting to entice a minor, announced U.S. Attorney Ashley C. Hoff. He was further ordered to serve five years of supervised release following completion of his prison term and will be required to register as a sex offender.
According to court documents, on April 24, 2021, Armando Rafael Mascorro, a naturalized U.S. citizen that was born in Mexico and living in El Paso at the time of the offense, communicated with someone he believed to be 14 years old through a popular social media messaging application. During those conversations, Mascorro detailed his intended plans to engage in sexual acts with the child and admitted that he had an attraction to “younger females.” Mascorro later drove to a pre-arranged meeting location to engage in a sexual act with the child, where he was immediately taken into custody as the minor was, in reality, an undercover law enforcement officer.
On October 7, 2021, Mascorro pleaded guilty to one count of attempted enticement of a minor.
“While the internet can be an important educational tool for our nation’s youth, there are bad actors who corrupt its purpose, attempting to harm and exploit children online,” said U.S. Attorney Ashley C. Hoff. “These prosecutions are crucial in making the internet safer for children.”
“Thank you to our El Paso Child Exploitation & Human Trafficking Task Force partners who participated in the FBI’s April 2021 sexual coercion and enticement of a minor operation, Operation April Fools,” said FBI Special Agent in Charge Jeffrey R. Downey, El Paso Field Office. “Their dedicated mission to protect the children of our community helped us stop an individual who attempted to meet a 14-year-old girl, whom he met via social media, for sex. This case reminds all of us to remain vigilant about our children’s online behavior and social media presence. We encourage parents to speak with their children about the dangers of online predators who use popular apps, games, and websites and to report any suspicious activity to law enforcement.”
The FBI investigated the case.
Assistant U.S. Attorney Michelle Winters prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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East Hartford Man Sentenced to 8 Years in Federal Prison for Child Sex Trafficking OffenseRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that JOSEPH PINA, 24, of East Hartford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 96 months of imprisonment, followed by five years of supervised release, for a child sex trafficking offense.
According to court documents and statements made in court, in October 2019, Pina conspired with his associate, Joel Lindsay, to recruit, entice and transport a 16-year-old girl to engage in commercial sex acts. Specifically, on October 17, 2019, Pina, Lindsay and another individual picked up the minor victim and took her to a hotel in East Windsor. At the hotel, they took photographs of the minor victim and posted her photos on a website to advertise her sexual services. Pina and Lindsay then arranged prostitution appointments for the minor victim. On that night, the minor victim earned at least $100 from prostitution appointments, all of which she gave to Lindsay.
On October 18, 2019, Pina and Lindsay posted more advertisements on the same web site and arranged prostitution appointments for the minor victim at a hotel in Windsor Locks. The following two days, Pina and Lindsay posted advertisements on the website and the minor victim saw additional prostitution customers. The victim again gave all of the money earned through these appointments to Lindsay.
The investigation further revealed that Pina and Lindsay engaged in sexual activity with the minor victim, even though they knew that she was under the age of 18. The minor victim also reported to investigators that Lindsay physically assaulted her.
On October 6, 2021, Pina pleaded guilty to one count of conspiracy to commit sex trafficking of a minor.
Pina, who had been released on bond, was remanded to custody at the conclusion of today’s court proceeding.
On October 15, 2021, Lindsay, also known as “Joey Guapo,” pleaded guilty to one count of sex trafficking of a minor. He is scheduled to be sentenced on April 13. Lindsay, a citizen of Jamaica, has been detained since arrest on August 20, 2020.
This matter has been investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Angel M. Krull.
Driver convicted of transporting kilos of drugsRead the Press Release
LAREDO, Texas – A 44-year-old Channelview resident has been convicted of conspiracy to possess with intent to distribute meth, announced U.S. Attorney Jennifer B. Lowery.
Juan Jose Grande-Rivas pleaded guilty to the conspiracy charge today.
The investigation began after authorities identified a refrigerated trailer carrying narcotics that had been taken to a local trucking yard. Grande-Rivas later arrived at the location, hitched up the trailer and departed. Law enforcement maintained constant surveillance throughout Texas, Oklahoma and into a residential neighborhood in Kansas City, Kansas. There, he parked the trailer at an empty lot and left.
Law enforcement took him into custody a few miles away. At the time of his arrest, he was in possession of $30,000. He admitted he knew there were drugs in the trailer.
Upon searching the vehicle, authorities ultimately uncovered approximately 703 kilograms of meth within the foam insulation of the trailer.
A sentencing date will be set at a later date. At that time, Grande-Rivas faces a minimum of 10 years and up to life in prison.
He has been and will remain in custody pending that hearing.
Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection and Border Patrol. Assistant U.S. Attorney José Angel Moreno prosecuted the case.
Dozens arrested in 105-count narcotics indictmentRead the Press Release
HOUSTON – A total of 50 people are now in custody following one of the largest major law enforcement operations in South Texas in recent years, announced U.S. Attorney Jennifer B. Lowery along with Special Agent in Charge Daniel C. Comeaux of the Drug Enforcement Administration (DEA). The crimes allegedly involve drug trafficking and related activities in the Houston and Galveston areas.
“I commend this multi-agency effort involving law enforcement agencies throughout the State of Texas, Louisiana, Mississippi and Alabama,” said Lowery. “Their diligent efforts further our common goal of dismantling whom we believe are drug trafficking organizations by targeting their leadership and soldiers as well as intercepting narcotics and suspected ill-gotten financial gains.”
During the coordinated law enforcement effort that spanned multiple jurisdictions and states, authorities took a total of 50 people into custody. The charges remain sealed as to those charged but not as yet in custody. They are considered fugitives and warrants remain outstanding for their arrests.
“This collaborative effort involving multiple law enforcement agencies both locally and nationally shows our mission is unified in apprehending those that allegedly bring drugs, crime and unrest to our communities,” said Comeaux.
Those arrested in the Houston area are expected to make initial appearances before U.S. Magistrate Judge Christina A. Bryan in Houston beginning at 2 p.m. today.
The charges allege the crimes occurred between Dec. 10, 2020, and Dec. 15, 2021.
The indictment, returned Feb. 10, alleges the individuals engaged in a variety of fentanyl, cocaine, meth, heroin and marijuana transactions. Some also allegedly conspired to commit money laundering and illegally transferred or transported money from the United States to Mexico to promote the illicit drug smuggling activities.
Authorities have seized more than 150 kilograms of cocaine, over 140 kilograms of meth, approximately six and 18 kilograms of heroin and fentanyl, respectively, as well more than 500 kilograms of marijuana, according to the charges.
During the operation yesterday, law enforcement also found over 100 kilograms combined of suspected cocaine, fentanyl and marijuana in addition to 39 firearms.
If convicted, some could face up to life In federal prison and pay hundreds of thousands in fines.
The arrests are the culmination of 14-month Organized Crime Drug Enforcement Task Force investigation (OCDETF) dubbed Operation Twisted Tea.
The DEA, U.S Marshals Service, police departments in Galveston, Houston and Pasadena conducted the OCDETF operation with the assistance of the Baytown Police Department; sheriffs’ offices in Harris, Fort Bend, Chambers, Refugio and Victoria counties; and Harris County Precinct 2 Constable’s Office.
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 on the Department of Justice’s OCDETF webpage.
Assistant U.S. Attorneys Christine Lu, Sherin Daniel and Leo J. Leo III are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.District Man Pleads Guilty in Schemes to Defraud Small Business Pandemic Relief Programs and the Archdiocese of WashingtonRead the Press Release
WASHINGTON – Kenneth Gaughan, 43, of Washington, D.C., pleaded guilty today to carrying out two separate financial schemes. In one, he fraudulently obtained more than $2.1 million in federal Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL). In the other, he embezzled more than $438,000 in funds from the Catholic Archdiocese of Washington, D.C., where he was previously employed as Assistant Superintendent.
The announcement was made by U.S. Attorney Matthew M. Graves, Darrell Waldon, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation, Washington, D.C. Field Office, Thomas J. Sobocinski, Special Agent in Charge of the FBI’s Baltimore Field Office, and Amaleka McCall-Brathwaite, Special Agent in Charge of the U.S. Small Business Administration, Office of the Inspector General, Eastern Region.
Gaughan, who used the alias of Richard Strauski, carried out his scheme targeting federal funds from at least March 2020 through August 2020. The PPP loans were created through the Coronavirus Aid, Relief, and Economic Security (CARES) Act. These forgivable loans were to be used by businesses and organizations for payroll costs, interest on mortgages, rent and utilities. The EIDL loans, part of a program run by the Small Business Administration, also are designed to help businesses and organizations facing hardship.
In Gaughan’s case, he used funds from the two programs, in part, to purchase a $300,000 yacht, a $1.13 million rowhouse, and a $46,000 luxury sports sedan.
“While small businesses were struggling to stay afloat, Kenneth Gaughan stole taxpayer dollars to fund his lavish lifestyle, home, car, and yacht,” said U.S. Attorney Graves. “These emergency funds were intended to help our small businesses weather the COVID-19 pandemic, not line the pockets of fraudsters. Yet this defendant brazenly undertook his scheme even after stealing hundreds of thousands of dollars from his former faith-based employer.”
“Kenneth Gaughan saw an opportunity to enrich his lifestyle by defrauding taxpayers and diverting funds meant to help struggling businesses during one of our nation’s most difficult times,” said IRS-CI Special Agent in Charge Waldon. “Our IRS-CI special agents will continue to lead COVID-related fraud cases and work with our law enforcement partners to bring these criminals to justice.”
“Mr. Gaughan was so emboldened by deceiving a church for several years he then turned his deception to the government, stealing funds that were meant to be a lifeline for struggling businesses and greedily using them to satisfy his own materialistic desires,” said FBI Special Agent in Charge Sobocinski. “The FBI, and our law enforcement partners, will continue to diligently investigate these crimes of fraud and hold those individuals accountable.”
“Greed has no place in SBA’s programs that are intended to provide assistance to the nation’s small businesses struggling with the pandemic challenges,” said SBA-OIG Special Agent in Charge 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.”
Gaughan was arrested in both cases on Aug. 11, 2020. He pleaded guilty in the U.S. District Court for the District of Columbia to three counts: one count of wire fraud and one count of money laundering in the PPP and EIDL case, and one count of wire fraud in the case involving the Archdiocese. Gaughan is scheduled to be sentenced by the Honorable Tanya S. Chutkan on June 15, 2022.
The wire fraud charges each carry a statutory maximum of 20 years in prison. The money laundering charge carries a statutory maximum of 10 years in prison. Gaughan will be required to pay restitution for the PPP and EIDL fraud in the amount of $2,182,465 and to the Archdiocese in the amount of $438,200. He will also be required to pay a forfeiture money judgment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
According to the government’s evidence, in the course of his scheme, Gaughan sought over $2.7 million in PPP loans on behalf of nine companies. Some of the applications were submitted in his own name, and others were in the name of another individual. Gaughan received approximately $2.1 million in PPP and EIDL funds through applications to SBA lenders for the companies, which falsely purport to register emotional support animals. Gaughan made false representations to receive the loan funds, including forged paperwork and bank records.
Gaughan then used a portion of the loan proceeds to purchase a 2020 Cruisers Yachts 338 CX 33-foot watercraft, a 2020 Kia Stinger, and a rowhouse in Northeast Washington. At the time of Gaughan’s arrest, the government obtained a warrant authorizing the seizure of the yacht, the Kia Stinger, Gaughan’s investment account, and Gaughan’s bank accounts. The government also filed a civil forfeiture complaint against a home Gaughan purchased with his fraudulently obtained proceeds. Additionally, the government filed a lis pendens on that property to give proper notice of the forfeiture litigation and to prevent the sale of the property prior to the resolution of this case.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was designed to provide emergency financial assistance to millions of Americans suffering from the economic effects of the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of forgivable loans to small businesses for job retention and certain other expenses through the PPP. 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 businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
EIDL is an existing SBA program designed to provide economic relief to businesses that are currently experiencing a temporary loss of revenue. EIDL provides loan assistance, including up to $10,000 advances, for small businesses and other eligible entities for loans up to $2 million. The EIDL proceeds can be used to pay fixed debts, payroll, accounts payable and other bills that could have been paid had the disaster not occurred; however, such loan proceeds are not intended to replace lost sales or profits or for expansion of a business. Unlike certain other types of SBA-guaranteed loans, EIDL funds are issued directly from the United States Treasury and applicants apply through the SBA via an online portal and application.
In the second scheme, Gaughan admitted defrauding the Archdiocese of Washington of over $438,000. Gaughan began working for the Archdiocese as its Director of Counseling in 2008 and was later promoted to Assistant Superintendent. In his role, Gaughan was responsible for recruiting and acting as the point of contact for contractors who provided various services to the Archdiocese. These included contractors that could help the Archdiocese implement anti-bullying, crisis intervention, and professional development programs at the approximately 95 Catholic schools overseen by the Archdiocese in Maryland and Washington, D.C. Gaughan also obtained invoices for services from contractors and provided those invoices, along with requests for payment and supporting documentation, to his superiors for approval.
Beginning in at least June 2010 and continuing through April 2018, Gaughan caused the Archdiocese to pay invoices manufactured by Gaughan purportedly for anti-bullying and crisis intervention programs, as well as for software used to send mass messages to Archdiocese students and families. To execute the scheme, Gaughan concealed his ownership and control of three companies, including by submitting forms using an alias. Gaughan then transmitted fraudulent invoices for these companies and persuaded the Archdiocese to issue checks for services that Gaughan knew the companies did not provide as represented. Gaughan opened virtual and private mailboxes to receive the checks issued to pay for the fraudulent invoices. He deposited the checks into the bank accounts he controlled and converted the money to his personal use.
The PPP and EIDL matters were investigated by the IRS-CI, FBI, and SBA-OIG. The matter involving the Archdiocese of Washington was investigated by the FBI.
The cases were prosecuted by Assistant U.S. Attorney Christine Macey of the Fraud, Public Corruption, and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia; Assistant U.S. Attorney Jessica Collins of the U.S. Attorney’s Office for the District of Maryland; and Assistant U.S. Attorney Greg Bernstein, formerly of the U.S. Attorney’s Office for the District of Maryland. They were supported by Paralegal Specialists Michon Tart and Quiana Dunn-Gordon, Victim-Witness Advocate Yvonne Bryant, and Supervisory Litigation Technology Specialist Leif Hickling. The seizure and forfeiture matters were handled by Assistant U.S. Attorney Arvind Lal, Special Assistant U.S. Attorney Matthew Grisier, former Special Assistant U.S. Attorney Steven Brantley, and Senior Attorney Advisor Jim Alexander of the Money Laundering and Asset Recovery Section.
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On May 17, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of fraud related to COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Distribution of Methamphetamine Results in Federal Prison Time for Shreveport ManRead the Press Release
SHREVEPORT, La. - United States Attorney Brandon B. Brown announced that a Shreveport man was sentenced today in United States District Court for distributing methamphetamine. Chief United States District Judge S. Maurice Hicks, Jr. sentenced Frank Gilford Joshua, IV, 34, to 60 months in prison, followed by 5 years of supervised release.
Joshua was indicted, along with eight other co-defendants, by a federal grand jury in September 2020 and charged with drug trafficking. On September 20, 2021, he pleaded guilty to three counts of distribution of methamphetamine. Those charges stemmed from an investigation by law enforcement officers with the U.S. Drug Enforcement Administration (DEA) into the distribution and selling of methamphetamine in the Shreveport/Bossier City area. On three specific occasions in July and August of 2018 and again in January of 2019, agents were able to intercept Joshua’s phone calls and conducted surveillance and observed him sell methamphetamine to individuals after making arrangement to do so over the phone.
The case was investigated by the DEA and was prosecuted by U.S. Attorney Brandon B. Brown.
This case is part of an ongoing Organized Crime Drug Enforcement Task Force (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.
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Cook County Man Sentenced to Prison for Unlawfully Possessing Guns After Store Employee Reports Firearms to DeputiesRead the Press Release
VALDOSTA, Ga. – A Cook County, Georgia, resident with a lengthy criminal history was sentenced to prison this week for unlawfully possessing firearms after a local gun shop employee turned over the defendant’s guns to deputies.
William Earl Alley, 55, of Adel, Georgia, was sentenced to serve 60 months in prison by U.S. District Judge Louis Sands on March 2, after he pleaded guilty to possession of a firearm by a convicted felon. There is no parole in the federal system.
“I want to thank the gun store employee for responsibly contacting law enforcement when approached by a convicted felon in possession of firearms and doing this in a manner that was safe for all involved,” said U.S. Attorney Peter D. Leary. “The U.S. Attorney’s Office is standing alongside our law enforcement and community partners to do everything within our power to decrease violent crime in our region through the Department of Justice’s Project Safe Neighborhoods program. Removing guns from the hands of repeat felons and holding them accountable for their crimes is one piece of a larger strategy to reduce crime.”
According to court documents, on June 21, 2019, a local gun shop employee turned over three firearms to the Cook County Sheriff’s Office—a revolver, a semi-automatic rifle and a bolt action rifle—after Alley, a convicted felon, brought them to the gun shop for repair and cleaning. Cook County deputies confirmed that Alley was a convicted felon, with multiple prior state felonies, including habitual violator, possession of a firearm by a convicted felon, theft by deception, terroristic threats and possession of controlled substances. It is illegal for a convicted felon to possess firearms.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by FBI and the Cook County Sheriff’s Office.
Criminal Chief Michael Solis prosecuted the case.
Convicted Felon Pleads Guilty to Illegal Possession of a Firearm and AmmunitionRead the Press Release
BOSTON – A Boston man previously convicted of drug distribution pleaded guilty today to illegal possession of a semiautomatic pistol and ammunition.
Shaquille Lee, 29, pleaded guilty to being a felon in possession of a firearm and ammunition. U.S. District Court Judge Richard G. Stearns scheduled sentencing for July 14, 2022. Lee was indicted in July 2021.
In April 2021, there was an active warrant for Lee’s arrest as a suspect in a February 2021 shooting in Canton involving a car crash and Lee allegedly firing approximately five rounds at another vehicle’s occupant. That case is currently pending in Plymouth Superior Court. On April 23, 2021, a search of Lee’s apartment found him in possession of a Glock, Model 23, .40 caliber semiautomatic pistol, loaded with 13 rounds of .40 caliber ammunition. Lee was also found in possession of an additional 18 rounds of .40 caliber ammunition in a nearby extended firearm magazine. Lee is prohibited from possessing firearms and ammunition due to a 2018 state conviction of distribution, and possession with intent to distribute, a Class B substance.
The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
First Assistant United States Attorney Joshua S. Levy; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Canton Police Chief Kenneth Berkowitz; and Everett Police Chief Steven A. Mazzie made the announcement today. Assistant U.S. Attorney John T. Dawley, Jr. of the Organized Crime & Gang Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Convicted Drug Trafficker Detained on Methamphetamine and Cocaine Trafficking ChargesRead the Press Release
PROVIDENCE, R.I. – A Pawtucket man previously convicted and incarcerated in Massachusetts and Rhode Island on drug trafficking charges has been ordered detained in federal custody in Rhode Island on charges that he delivered methamphetamine and cocaine laced with fentanyl on at least three occasions while under surveillance by members of the FBI’s Rhode Island Safe Streets Gang Task Force, announced United States Attorney Zachary A. Cunha.
Anthony Shukri Nelson, 41, is charged by way of a federal criminal complaint with distribution of five grams or more of methamphetamine, distribution of cocaine, and drug trafficking.
Charging documents allege that on three occasions between February 16 and February 23, 2022, Nelson delivered a total of approximately 37 grams of methamphetamine and 11.5 grams of cocaine laced with fentanyl to another individual in exchange for cash. A court-authorized search of the Pawtucket residence Nelson shares with his girlfriend resulted in the seizure of approximately 225 grams of cocaine containing fentanyl and more than $23,750 in cash.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
According to court records, Nelson was previously convicted in federal court in Massachusetts and sentenced to 58 months in federal prison for conspiracy to distribute crack cocaine; in Massachusetts state court for drug trafficking and sentenced to 5 years to 5 years and a day in prison; and in Rhode Island state court for drug trafficking and sentenced to 10 years in prison, 5 years to serve.
Nelson was on Rhode Island state probation at the time of his arrest on Tuesday.
The case is being prosecuted by Assistant U.S. Attorney Stacy P. Veroni.
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Clan Del Golfo associate ordered to prison for international cocaine distributionRead the Press Release
HOUSTON – A ranking member of one of the most serious transnational organized criminal organizations has been sentenced to prison for his role in distributing kilogram quantities of cocaine from Colombia, announced U.S. Attorney Jennifer B. Lowery.
Joaquin Guillermo David-Usuga aka Guillermo, 43, Colombia, pleaded guilty in October 2021 to international cocaine distribution.
Today, U.S. District Judge Gray Miller ordered him to serve 10 years in federal prison.
The court found that David-Usuga distributed 20 kilograms of cocaine on behalf of commanding members of the Clan Del Golfo knowing it would be unlawfully imported into the United States. In handing down the sentence, Judge Miller also found David-Usuga was a supervisor and manager of the cocaine importation scheme.
A federal grand jury returned an indictment against David-Usuga and Jose Alfredo-Valencia, 44, and Jhony Fidel Cuello-Petro aka Mocho, 46, in August 2018. Colombian authorities took the three into custody at the request of the United States in November 2018. Each was subsequently extradited to the United States in December 2019.
Valencia and Cuello-Petro were previously sentenced to 31 months and 28 months imprisonment, respectively, in November 2021.
David-Usuga will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Department of Justice designated Clan Del Golfo as one of the most serious transnational organized criminal organizations that threatens the United States.
The FBI and Drug Enforcement Administration led the Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed “Operation Macondo.”
The operation is part of an OCDETF Strike Force Initiative which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs and transnational criminal organizations.
The specific mission of the Houston Strike Force is to disrupt and dismantle the drug trafficking organizations that designated Consolidated Priority Organization or Regional Priority Organization Targets head with their affiliates that impact Houston and south Texas. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
The Justice Department’s Office of International Affairs was responsible for securing the extraditions in this case. The Justice Department also extends its gratitude to the government of Colombia and the Colombian police and military for its cooperation and assistance.
Assistant U.S. Attorneys Casey N. MacDonald and Anibal Alaniz prosecuted the case.
Charleston Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – James Edward Bennett III, 30, of Charleston, pleaded guilty today to a federal gun crime.
According to court documents and statements made in court, on July 4, 2021, the FBI was conducting a wiretap investigation of a multi-state methamphetamine distribution organization operating in and around Charleston. Intercepted calls alerted the agents that Bennett and three other men planned to murder a man on the West Side of Charleston. Surveillance confirmed that Bennett and the others armed themselves and traveled in a rented SUV from Rand toward the West Side. The Charleston Police Department deployed multiple marked vehicles to the area to establish a highly visible presence. The driver of the SUV parked at the Kroger fuel station on Washington Street. Upon seeing the numerous police cruisers, Bennett and the other men abandoned the vehicle and left the area. The FBI impounded the vehicle and executed a search warrant, recovering four loaded pistols and a .223 caliber pistol modified to resemble an “AR-style” firearm with a loaded drum magazine from the vehicle. Bennett admitted the he possessed a 9mm pistol and the .223 caliber pistol with the drum magazine. Bennett is prohibited from possessing firearms because of his previous felony convictions in Kanawha County Circuit Court which include first degree robbery in 2010, voluntary manslaughter in 2017, and unlawful wounding in 2019.
Bennett pleaded guilty to being a felon in possession of a firearm and faces up to 10 years in federal prison when he is sentenced on May 23, 2022.
“The quick response of our law enforcement partners prevented a shooting on Charleston’s West Side,” said United States Attorney Will Thompson. “Public safety is always at risk when felons possess firearms, especially when they have a history of violent crime convictions. Thanks to the collaborative efforts of the FBI, the Charleston Police Department, the Kanawha County Sheriff’s Department and MDENT, we will continue to thwart violent crimes in our communities.”
Brian Dangelo Terry, 37, is scheduled to plead guilty to his role in the offense on March 14, 2022. Treydan Leon Burks, 31, and Douglas Johnathan Wesley, 33 are scheduled for trial on May 3, 2022.
The Federal Bureau of Investigation (FBI), the Charleston Police Department, the Kanawha County Sheriff’s Department, and the Metropolitan Drug Enforcement Network Team (MDENT) conducted the investigation.
United States District Judge Joseph R. Goodwin presided over the plea hearing. Assistant United States Attorney Joshua Hanks is handling the prosecution.
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.
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 Nos. 2:21-cr-00172, 2:21-cr-00171, and 2:21-cr-00211.
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Burlington Man Sentenced to Federal Prison for Drug ChargesRead the Press Release
DAVENPORT, Iowa – A Burlington man, Tony Williams, age 33, was sentenced yesterday in federal court to 15 years in prison for Distribution of Methamphetamine. Williams was ordered to serve five years of supervised release to follow his prison term. He was also ordered to pay a $300 Special Assessment to the Crime Victims’ Fund.
According to court documents, an undercover officer purchased methamphetamine from Williams on three occasions. On one of the occasions, the officer observed a pistol in Williams’ waistband. When law enforcement attempted to perform a traffic stop on Williams, he fled and led officers on a vehicle and foot pursuit. Williams was eventually taken into custody and a loaded pistol was located in the area where Williams had led officers on the chase.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Burlington Police Department, Des Moines County Sheriff’s Office, Drug Enforcement Administration, Iowa Division of Narcotics Enforcement, and Southeast Iowa Narcotics Taskforce investigated the case. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Bettendorf Man Sentenced to 50 Years for Child Pornography ChargesRead the Press Release
DAVENPORT, Iowa – Justin Treanton, age 37, of Bettendorf, was sentenced on February 28, 2022, to 30 years in federal prison for the production of child pornography and 20 years in prison for the possession of child pornography, with the sentences run consecutively for a total of 50 years in federal prison. After serving his prison sentence, Treanton will be under federal supervised release for the rest of his life and required to register as a sex offender.
This case came to light after Treanton sent child pornography, which he had produced through the hands-on sex abuse of a four-year-old child, to an undercover police officer in New Zealand. The child pornography was traced back to Treanton in Bettendorf. When law enforcement executed a search warrant on Treanton’s cell phone they located other images of child pornography portraying infants and toddlers and violence.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Homeland Security Investigations, Iowa Division of Criminal Investigations, Bettendorf Police Department, and the Scott County Sheriff’s Office.
This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the U.S. Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nation-wide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children. Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
Bellefonte Woman Sentenced to 18 Months’ Imprisonment for Conspiracy to Commit Wire and Mail FraudRead the Press Release
WILLIAMSPORT- The United States Attorney’s Office for the Middle District of Pennsylvania announced that on March 1, 2022, Mildred Hoy, 62, of Bellefonte, PA, was sentenced to 18 months’ imprisonment by U.S. District Court Chief Judge Matthew W. Brann for her participation in a wire and mail fraud conspiracy.
According to United States Attorney John C. Gurganus, Hoy pleaded guilty before Chief Judge Brann in May 2021 to a charge of conspiracy to commit wire and mail fraud. The conspiracy to defraud involved victims sending money to Hoy in the belief that they had won the lottery and needed to remit fees to cover taxes. Hoy then sent cash to others in the conspiracy and converted cash into Bitcoin and deposited it in the bank accounts of other coconspirators. Hoy’s participation in the conspiracy defrauded victims of $489,000 dollars.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Geoffrey W. MacArthur prosecuted the case.
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Attorney General Merrick B. Garland Announces Launch of Task Force KleptoCaptureRead the Press Release
Today, Attorney General Merrick B. Garland announced the launch of Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions, and economic countermeasures that the United States has imposed, along with allies and partners, in response to Russia’s unprovoked military invasion of Ukraine. Task Force KleptoCapture will ensure the full effect of these actions, which have been designed to isolate Russia from global markets and impose serious costs for this unjustified act of war, by targeting the crimes of Russian officials, government-aligned elites, and those who aid or conceal their unlawful conduct.
“The Justice Department will use all of its authorities to seize the assets of individuals and entities who violate these sanctions,” said Attorney General Merrick B. Garland. “We will leave no stone unturned in our efforts to investigate, arrest, and prosecute those whose criminal acts enable the Russian government to continue this unjust war. Let me be clear: if you violate our laws, we will hold you accountable.”
“To those bolstering the Russian regime through corruption and sanctions evasion: we will deprive you of safe haven and hold you accountable,” said Deputy Attorney General Lisa O. Monaco. “Oligarchs be warned: we will use every tool to freeze and seize your criminal proceeds.”
Task Force KleptoCapture will be run out of the Office of the Deputy Attorney General and staffed with prosecutors, agents, analysts, and professional staff across the Department who are experts in sanctions and export control enforcement, anticorruption, asset forfeiture, anti-money laundering, tax enforcement, national security investigations, and foreign evidence collection. It will leverage all the Department’s tools and authorities against efforts to evade or undermine the economic actions taken by the U.S. government in response to Russian military aggression. The mission of the Task Force will include:
- Investigating and prosecuting violations of new and future sanctions imposed in response to the Ukraine invasion, as well as sanctions imposed for prior instances of Russian aggression and corruption;
- Combating unlawful efforts to undermine restrictions taken against Russian financial institutions, including the prosecution of those who try to evade know-your-customer and anti-money laundering measures;
- Targeting efforts to use cryptocurrency to evade U.S. sanctions, launder proceeds of foreign corruption, or evade U.S. responses to Russian military aggression; and
- Using civil and criminal asset forfeiture authorities to seize assets belonging to sanctioned individuals or assets identified as the proceeds of unlawful conduct.
The Task Force will be fully empowered to use the most cutting-edge investigative techniques — including data analytics, cryptocurrency tracing, foreign intelligence sources, and information from financial regulators and private sector partners — to identify sanctions evasion and related criminal misconduct.
Arrests and prosecution will be sought when supported by the facts and the law. Even if defendants cannot be immediately detained, asset seizures and civil forfeitures of unlawful proceeds — including personal real estate, financial, and commercial assets — will be used to deny resources that enable Russian aggression. Where appropriate, information gathered through Task Force investigations will be shared with interagency and foreign partners to augment the identification of assets that are covered by the sanctions and new economic countermeasures.
Task Force KleptoCapture will complement the work of the transatlantic task force announced by the President and leaders of the European Commission, France, Germany, Italy, the United Kingdom, and Canada on Feb. 26, which has a mission to identify and seize the assets of sanctioned individuals and companies around the world.
Task Force KleptoCapture will be led by a veteran corruption prosecutor assigned to the Deputy Attorney General’s Office from the U.S. Attorney’s Office for the Southern District of New York. This prosecutor has a long and successful track record of investigating Russian organized crime and recovering illicit assets. The Task Force leadership will include Deputy Directors from both the National Security and Criminal Divisions, and more than a dozen attorneys from these divisions, as well as the Tax Division, Civil Division, and U.S. Attorneys’ Offices across the country.
The Task Force will include agents and analysts from numerous law enforcement agencies, including the FBI; U.S. Marshals Service, U.S. Secret Service; Department of Homeland Security–Homeland Security Investigations; IRS–Criminal Investigation; and the U.S. Postal Inspection Service.
The Task Force is authorized to investigate and prosecute any criminal offense related to its mission, including conspiracy to defraud the United States by interfering in and obstructing lawful government functions; money laundering; false statements to a financial institution; bank fraud; and various tax offenses. The maximum penalty under several of these authorities is 20 years in prison.
Associate of Gambino Organized Crime Family Sentenced to 10 Years in Prison for Arson in QueensRead the Press Release
Earlier today, in federal court in Brooklyn, Peter Tuccio, an associate of the Gambino organized crime family of La Cosa Nostra, was sentenced by United States District Judge LaShann DeArcy Hall to 10 years’ imprisonment for his involvement in setting a car on fire to extract extortion payments. The Court also ordered Tuccio to pay more than $75,000 in restitution. Tuccio pleaded guilty in January 2021 to using fire to commit one or more felonies.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the sentence.
“Today, Tuccio pays a steep price for the dangerous actions he took to extort payments to the mob,” stated United States Attorney Peace. “No residents or businesses should have to operate under the threat of violence or intimidation from organized crime. Let Tuccio serve as an example that this behavior will not be tolerated.” Mr. Peace thanked the New York City Fire Department’s Bureau of Fire Investigation for their outstanding work on the case.
“The primary mission of the NYPD and our law enforcement partners is to arrest, prosecute, and send away with meaningful prison sentences those who instill fear in New Yorkers through their criminal actions,” stated NYPD Commissioner Sewell. “With today’s sentence, the result of our efforts is tangible. I thank our colleagues at the FBI and the Eastern District of New York for their dedication in helping us hold accountable anyone who commits violence in order to spread fear, especially when it’s in the form of organized crime.”
As alleged in court filings, in 2015, a businessman who had been extorted for years by a captain in the Gambino crime family (referred to in court filings as “Co-Conspirator 1”), began avoiding Co-Conspirator 1 in an effort to stop making his annual extortionate payment. On December 3, 2015, Tuccio and his co-conspirators observed the businessman leave a smoke shop in Howard Beach and drive away in his 2014 Mercedes Benz. They followed the businessman at a high rate of speed through the streets of Queens and confronted him outside a pizzeria, where Tuccio asked about Co-Conspirator 1 by name and complimented the businessman’s car. Tuccio and his co-conspirators schemed to set the businessman’s car on fire as a message to the businessman that he had to continue making payments to Co-Conspirator 1. Later that night, the businessman heard a loud noise and saw that his car was on fire outside of his residence. After the arson, the businessman made additional payments to Co-Conspirator 1.
The government’s case is being handled by the Office’s Organized Crime & Gangs Section. Assistant United States Attorneys Nadia E. Moore, Nicholas J. Moscow and Lindsey R. Oken are in charge of the prosecution.
The Defendant:
PETER TUCCIO
Age: 29
Howard Beach, New YorkE.D.N.Y. Docket No. 18-CR-610 (S-1) (LDH)
Arkansas Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Dennis R. Holmes announced that a Bella Vista, Arkansas, man convicted of Failure to Register as a Sex Offender was sentenced on February 28, 2022, by U.S. District Judge Karen E. Schreier.
Jeffrey Alan Mosal, age 45, was sentenced to 30 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Mosal was indicted by a federal grand jury on April 6, 2021. He pled guilty on November 30, 2021.
The conviction stems from Mosal failing to register as a sex offender as required by federal law between January 30, 2020, and April 6, 2021. Mosal had previously been convicted of a sex offense in U.S. Circuit Court, District of Arkansas, which required him to register for 25 years.
This case was investigated by the U.S. Marshals Service and the Sioux Falls Police Department. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Mosal was immediately turned over to the custody of the U.S. Marshals Service.
1 March 2022
Woman Sentenced for Taking Part in a Robbery that Resulted in the Victim being StabbedRead the Press Release
A 24-year-old Sand Springs woman who aided her boyfriend in a 2018 robbery was sentenced Tuesday in federal court, announced U.S. Attorney Clint Johnson.
“Tori Lasley knowingly took part in a planned robbery and consequently will be incarcerated for seven years,” said U.S. Attorney Clint Johnson. “Federal prosecutors and our partners at the FBI and Tulsa Police Department will vigorously pursue and hold accountable individuals who commit violent crime within our community.”
U.S. District Judge Claire V. Eagan sentenced Tori Lynn Lasley to seven years in federal prison followed by three years of supervised release.
Lasley pleaded guilty on Nov. 3, 2021, to robbery in Indian Country. In her plea agreement, Lasley admitted that she aided Peyton Drew Keele, 32, of Tryon, in robbing the victim on May 28, 2018. She stated that they went to the victim’s apartment, and once inside, Keele stabbed the victim in the leg so the two defendants could take items of value from the victim and his home. Lasley admitted that she knew what Keele was going to do and intentionally participated in the robbery.
According to court documents, the victim was suffering from a stab wound to the leg when officers responded to the scene. The victim reported that Keele, also known as “Duck,” and his girlfriend Lasley had entered his apartment under the ruse of returning a cell phone they had previously stolen from him.
Keele then demanded to know where the money was that the victim’s wife had recently won while gambling. The victim indicated he no longer had the money, and Keele stabbed him in the leg. The couple then stole numerous items belonging to the victim. As he was leaving, Keele told the victim, “No hard feelings.” Items stolen included jewelry, a wallet, a cell phone, an antique revolver and the victim’s car.
During the investigation, officers discovered Lasley had been arrested while driving a vehicle without a valid driver’s license. A vehicle inventory was conducted prior to the vehicle being towed. That inventory listed multiple items that were known to have been taken during the robbery.
Lasley is a citizen of the Seminole Nation, and the crime occurred within the boundaries of the Muscogee Nation reservation.
The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Thomas E. Buscemi is prosecuting the case.
Wheeling woman admits to drug conspiracyRead the Press Release
WHEELING, WEST VIRGINIA – Melissa Joann Hibbitts, of Wheeling, West Virginia, has admitted to her involvement in a drug trafficking conspiracy, United States Attorney William Ihlenfeld announced.
Hibbitts, age 35, pleaded guilty today to one count of “Conspiracy to Distribute and Possess with the Intent to Distribute Cocaine Base, Cocaine Hydrochloride, Methamphetamine, and Heroin.” Hibbitts admitted to working with others to sell cocaine base, also known as “crack,” cocaine hydrochloride, also known as “coke,” and methamphetamine from June 2019 to August 2021 in Ohio County and elsewhere, including the Southern District of Ohio.
Hibbitts faces up to 20 years of incarceration and a fine of up to $1,000,000 for each count. 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 Shawn M. Adkins is prosecuting the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, which includes the Drug Enforcement Administration, West Virginia State Police, the Ohio County Sheriff’s Office, and the Wheeling Police Department, investigated. The Belmont County Sheriff’s Office and the St. Clairsville Police Department assisted.
U.S. Magistrate Judge James P. Mazzone presided.
Vicksburg Man Sentenced to 34 months in Federal Prison for Possessing a Firearm as a Convicted FelonRead the Press Release
Jackson, Miss. – A Vicksburg man was sentenced to 34 months in federal prison for possessing a firearm as a convicted felon, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation in Mississippi.
According to court documents, on November 15, 2019, Vicksburg Police officers and FBI Task Force officers apprehended Hakeem Burnett, 31, in Vicksburg pursuant to a warrant for violating the Hinds County, Mississippi Drug Court program. Burnett was in possession of a firearm at the time he was apprehended. Burnett has previous convictions for house burglary and possessing a firearm as a convicted felon.
The FBI and Vicksburg Police Department investigated the case.
Assistant U.S. Attorney Bert Carraway prosecuted the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent
crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Utica Man Sentenced to 10 Years in Federal Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
Jackson, Miss. – A Utica man was sentenced to 120 months in federal prison for possession with intent to distribute methamphetamine, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation in Mississippi.
According to court records, on August 12, 2020, Dennis Mitchell, 40, sold 208 grams of methamphetamine to an individual.
Mitchell pled guilty on October 29, 2021, to possession with intent to distribute methamphetamine.
The case is the result of an extensive investigation, dubbed “Operation Hailstorm” targeting illegal drug trafficking in the Jackson area. The Operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The case was investigated by the Federal Bureau of Investigation, the Mississippi Bureau of Narcotics and the Jackson Police Department.
The case was prosecuted by Assistant United States Attorney Keesha Middleton.
United Kingdom Citizens Indicted in Brooklyn Federal Court for Multi-Million Dollar Loan SchemeRead the Press Release
An indictment was filed yesterday in federal court in Brooklyn charging Stephen Burton and James Wellesley, both citizens of the United Kingdom, with wire fraud conspiracy, wire fraud and money laundering conspiracy in connection with a scheme perpetrated through their company, Bordeaux Cellars, the trade name for two private limited companies, Bordeaux Cellars, Limited and Bordeaux Cellars London Ltd., registered, respectively, in Hong Kong and London, England. Wellesley was arrested on February 4, 2022 in the United Kingdom and Burton remains at large.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“Unlike the fine wine they purported to possess, the defendants’ repeated lies to investors did not age well. As alleged, these defendants duped investors by offering them an intoxicating investment opportunity collateralized by valuable bottles of fine wine that turned out to be too good to be true,” stated United States Attorney Peace. “This Office and our law enforcement partners will work to protect investors from deceptive schemes and ensure that loans that are financed with investor funds are not stolen by fraudsters.” Mr. Peace also thanked Internal Revenue Service Criminal Investigation for their work on the case.
“Burton and Wellesley, as alleged, lied to their victims to get them to invest in what ended up being a nearly $100 million scheme. Today’s indictment brings their criminal activity to light and reminds other like-minded criminals that illegal investment fraud schemes won’t be overlooked,” stated FBI Assistant Director-in-Charge Driscoll.
The indictment alleges that from at least June 2017 and continuing through February of 2019, the defendants posed as executives of a company called Bordeaux Cellars. The defendants solicited investors, including residents of the Eastern District of New York, at investor conferences held in the United States and overseas. The defendants claimed to investors that Bordeaux Cellars brokered loans between investors and high-net-worth wine collectors that would be fully collateralized by high-value collections of wine. The defendants promised that investors would receive regular interest payments from the borrowers, and that Bordeaux Cellars would keep custody of the wine pledged as collateral while the loans were outstanding. As alleged, these representations were false, the “high-net-worth wine collectors” did not actually exist and Bordeaux Cellars did not maintain custody of the wine purportedly securing the loans. Instead, the defendants used incoming loan proceeds to make fraudulent interest payments to investors and for their own personal expenses. Burton is a fugitive. Anyone with information related to his whereabouts is asked to contact the FBI by calling 1-800-CALL-FBI or by visiting tips.fbi.gov
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face up to 20 years in prison.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Lauren Elbert is in charge of the prosecution.
The Defendants:
STEPHEN BURTON
Age: 57
United KingdomJAMES WELLESLEY
Age: 55
United KingdomE.D.N.Y. Docket No. 22-CR-79 (PKC)
Two Florida Men Charged with $11 Million Medicare Fraud Scheme to Traffic in Prescriptions for Medical EquipmentRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Scott J. Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General (“HHS-OIG”) New York Regional Office announced today the arrest of ZACHARY S. SEID and ANTHONY CRACCHIOLO on charges of conspiracy, health care fraud, wire fraud, and unlawfully receiving kickbacks in connection with Medicare. As alleged in an Indictment unsealed today in Manhattan federal court, SEID and CRACCHIOLO, ran companies dedicated to illegally buying and selling prescriptions for durable medical equipment (“DME”) such as leg, arm, and back braces, and then using those prescriptions to file fraudulent Medicare claims for more than $11 million, as well as selling such prescriptions to other DME supply companies, so that those companies in turn could also file fraudulent Medicare claims. The case has been assigned to U.S. District Judge John P. Cronan. SEID and CRACCHIOLO, who were arrested this morning in Florida, will be presented tomorrow before magistrate judges in the Southern District of Florida.
U.S. Attorney Damian Williams said: “Medicare is an invaluable taxpayer-funded program dedicated to providing affordable health care to beneficiaries over 65 or with disabilities, not to enriching those who would defraud the program by buying and selling false prescriptions.”
HHS-OIG Special Agent in Charge Scott J. Lampert said: “These allegations describe a greed-fueled scheme that undermined our health care system and the people it serves. Such scams threaten patient health, waste taxpayer funds, and drive up healthcare costs for all of us. Working closely with our law enforcement partners, we will continue to aggressively root out health care fraud and bring criminals to justice.”
As alleged in the Indictment:[1]
From at least July 2019 through at least October 2020, SEID and CRACCHIOLO engaged in a scheme to defraud Medicare in at least three ways. First, SEID and CRACCHIOLO illegally paid kickbacks of more than $565,000 to purchase fraudulent DME prescriptions, including prescriptions “signed” by doctors who never in fact signed or authorized those prescriptions and were unaware that their names and identities were being so used. These DME prescriptions were for such equipment as braces for ankles, knees, elbows, wrists, and backs. Second, SEID and CRACCHIOLO unlawfully received more than $425,000 in kickbacks, reselling some of these prescriptions to DME suppliers, so that those suppliers in turn could fraudulently bill Medicare for the DME. Finally, in about May and June 2020, SEID and CRACCHIOLO acquired five of their own fraudulent DME supply companies, and used the bogus prescriptions to file more than $11 million in fraudulent Medicare claims, seeking payment to the DME suppliers that SEID and CRACCHIOLO controlled.
Together, SEID and CRACCHIOLO sold to multiple DME supply companies, and established control over at least five DME supply companies of their own, which they used to submit their fraudulent Medicare claims. Those companies were: 1 Medical Supplies Corp., Ameri Med Supplies Corp., One Medical Health Supplies Corp., Sun Med Equip Corp., and Sunrise Med Service Group Corp. In addition, Seid owned a company called Seid Services, Inc., while Cracchiolo owned a company called Dataco.
* * *
SEID, 35, of Boynton Beach, Florida, and CRACCHIOLO, 42, of Parkland, Florida, are each charged in four counts with conspiracy to commit health care fraud and wire fraud, health care fraud, wire fraud, and receiving kickbacks in violation of the Anti-Kickback Statute. The conspiracy and wire fraud counts each carry a maximum potential prison sentence of 20 years; the health care fraud count carries a maximum potential prison sentence of 10 years; and the count charging violation of the Anti-Kickback statute carries a maximum potential prison sentence of five years. The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the investigative work of HHS-OIG.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney David Raymond Lewis is in charge of the prosecution.
The allegations contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Two Executives of Chicago-Area Non-Profit Organization Charged with Misappropriating $1.8 MillionRead the Press Release
CHICAGO — Two executives of a Chicago-area non-profit organization have been indicted on federal fraud charges for allegedly misappropriating more than $1.8 million in funds intended to support the charity’s work with underprivileged youth.
TONY BELL served as executive director of the Center for Community Academic Success Partnerships, and BARBARA HARRIS was a CCASP project manager. The non-profit organization received government grants and other funds to provide after-school programs to elementary and secondary schools in the Chicago area. The government grants included funds from the 21st Century Community Learning Centers Program, a federal program offering financial support to community centers that provide academic enrichment opportunities. The 21st Century program issued grants to its local administrator, the Illinois State Board of Education, which in turn disbursed the funds to CCASP.
An indictment returned Monday in U.S. District Court in Chicago alleges that Bell, Harris, and others from 2012 to 2017 fraudulently obtained and misappropriated at least $1.8 million in the federal funds. Bell, Harris, and their associates allegedly transferred approximately $1.3 million of the fraud proceeds to bank accounts they controlled, and they used approximately $436,536 to pay down Bell’s credit card balances. The pair and their associates also used approximately $130,372 of the fraud proceeds to write numerous checks made payable to Community Partners, an unincorporated entity which the defendants fraudulently claimed was a subcontractor to CCASP, the indictment states. Bell and Harris subsequently negotiated the Community Partners checks for cash or used them to purchase money orders at a currency exchange in Dolton, Ill., according to the indictment.
The indictment charges Bell, 61, of Matteson, Ill., and Harris, 52, of South Holland, Ill., with conspiracy, money laundering, and wire fraud. Arraignments in U.S. District Court in Chicago have not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; John F. Woolley, Special Agent-in-Charge of the U.S. Department of Education Office of Inspector General’s Midwestern Regional Office; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Justin Campbell, Special Agent-in-Charge of IRS Criminal Investigation in Chicago. The Illinois Office of Executive Inspector General provided valuable assistance. The government is represented by Assistant U.S. Attorney Philip Fluhr.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Tucker Man Sentenced to over 37 Years in Federal Prison for Sexual Assault and Murder of ChildRead the Press Release
Jackson, Miss. – A Tucker man was sentenced today to 450 months in federal prison for the sexual assault and murder of a child on the Choctaw Indian Reservation, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation’s Jackson Field Office.
According to court documents, Brett K. Hickman, 28, of Tucker, sexually assaulted and murdered a 2-year-old female on June 8, 2019, in the Tucker Community of the Choctaw Indian Reservation.
Hickman pled guilty in U.S. District Court on July 13, 2021, before U.S. District Judge David Bramlette.
The Federal Bureau of Investigation and the Choctaw Police Department investigated the case.
Assistant U.S. Attorney Kevin J. Payne prosecuted the case.
Three Former Correctional Officers Sentenced to Federal Prison for Violating Civil Rights of an Inmate During an AssaultRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced three former Hamilton Correctional Institution Annex officers for violating the civil rights of an inmate. Coty Michael Wiltgen (32, Live Oak) was sentenced to 37 months in federal prison, followed by two years of supervised release; Ethan Burkett (25, Valdosta, GA) was sentenced to 31 months in federal prison, followed by one year of supervised release, and William Story Shackelford (25, Valdosta, GA) was sentenced to 25 months in federal prison, followed by 1 year of supervised release. Wiltgen, Burkett, and Shackelford were ordered to surrender to their facility of designation no later than 2:00 p.m. on April 28, 2022.
On June 4, 2021, June 9, 2021, and July 22, 2021, Shackelford, Wiltgen, and Burkett, respectively, had pleaded guilty to violating the civil rights of an inmate.
According to court documents, on March 3, 2020, Burkett, Wiltgen, and Shackelford, on-duty correctional officers at the Hamilton Correctional Institution Annex (HCI) in Jasper, Florida, struck an inmate multiple times while the inmate was handcuffed and lying on the ground. Specifically, Wiltgen, and Shackelford escorted the victim to an outdoor area at HCI and assaulted the victim following an earlier altercation involving the victim and Burkett. The victim had pushed Burkett off his path while he was chasing after another inmate. After pushing Burkett and walking away, the victim was sprayed with pepper spray by Wiltgen. The victim laid down on the floor, showed no signs of resistance, and was handcuffed by Wiltgen. Wiltgen and Shackelford then escorted the cooperative and compliant victim outside of the facility, and out of camera view, and made the victim fall to the ground. Wiltgen kicked the victim in the face approximately 15 times while he was face down on the ground. Wiltgen was also observed calling the victim a racial epithet and spitting on the victim. Shackelford held the victim on the ground with his knee in the victim’s back to keep him from moving and struck the victim in the side. When Burkett arrived outside, he went up to the victim and hit him twice with an open hand to the upper back and punched the victim. The victim was screaming during the assault and was knocked unconscious by Wiltgen kicking him. This assault lasted approximately one to two minutes. Burkett, Wiltgen, and Shackelford knew that the use of force was unnecessary and excessive, counter to their training and completely unjustified at the time that they used, and watched others use, force against the victim. As a result of the assault, the victim suffered several injuries.
This case was investigated by the Florida Department of Corrections – Office of Inspector General and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Ashley Washington.
Tacoma woman sentenced to 5 years in prison for arson at downtown Seattle protestRead the Press Release
Seattle –A 26-year-old Tacoma, Washington, woman was sentenced today in U.S. District Court in Seattle to 5 years in prison for arson for burning five Seattle P0lice vehicles parked around Sixth and Pine in downtown Seattle on Saturday, May 30, 2020, announced U.S. Attorney Nick Brown. Margaret Aislinn Channon was arrested June 11, 2020, following an investigation by the FBI, ATF, and Seattle Police Department. At the sentencing hearing U.S. District Judge John C. Coughenour said Channon’s conduct had done “tremendous damage to Black Lives Matter in Seattle.”
“The right to protest, gather, and call out injustices is one of the dearest and most important rights we enjoy in the United States,” said U.S. Attorney Nick Brown. “Indeed, our democracy depends on both exercising and protecting these rights. But Ms. Channon’s conduct was itself an attack on democracy. She used the cover of lawful protests to carry out dangerous and destructive acts, risking the safety of everyone around her and undermining the important messages voiced by others.”
According to records filed in the case, Channon appears in videos from a protest in downtown Seattle wearing distinctive clothing and showing tattoos on her hands and arms. Channon is captured on video using fire and aerosol cans to light five Seattle Police Department vehicles on fire. She is also shown entering various stores and stealing clothing. She admitted smashing the window at the Verizon Store and entering a sandwich shop and destroying the electronic cash register. Investigators identified Channon based on her clothing, tattoos, and information from her various social media accounts.
Channon’s most dangerous conduct was the arson of the vehicles using an aerosol can as a blowtorch. As prosecutors noted in their sentencing memo, “hundreds of people were standing in the vicinity of the police cars that Channon burned, some only a few feet away. All of them were in harm’s way if one of the vehicles had exploded.”
“This case is an example of the FBI’s commitment to investigating domestic terrorism cases, no matter what their motivations may be," said Donald M. Voiret, Special Agent in Charge of the Seattle Field Office. "The FBI believes in the peaceful expression of free speech, and Channon committed acts of violence and destruction, endangered other people, and distracted from and escalated demonstrations.”
“It should be clear that lawful protests do not include the use of violent actions such as breaking store windows and committing theft and arson,” said ATF Seattle Field Division Special Agent in Charge Jonathan T. McPherson. “We will vigorously investigate anyone who turns to arson and violence against our citizens, businesses and cities. This sentence is clearly warranted and should send a message that this behavior will never be tolerated.”
Under the terms of the plea agreement, Channon is responsible for restitution. Channon will be on three years of supervised release following her prison term.
The case was investigated by the FBI, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), and the Seattle Police Department.
The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
Suspect in Burglary at Poway Weapons & Gear Charged with Federal Firearms OffensesRead the Press Release
Assistant U. S. Attorneys Joseph Orabona (619) 546-7951 or Elizabet Brown (619) 546-8921
NEWS RELEASE SUMMARY – March 1, 2022
SAN DIEGO – Jaime Angel Zamora was arraigned today in federal court on charges involving theft of firearms from the premises of Poway Weapons & Gear, a federal firearms licensee, and felon in possession of firearms.
According to a federal complaint unsealed today, in the early morning hours of November 21, 2021, Zamora and another suspect burglarized Poway Weapons & Gear in Poway by prying open the side door of the business and stealing approximately 12 firearms from the premises.
“The United States Attorney’s Office and our law enforcement partners in the Southern District of California are committed to enforcing federal firearms laws,” said U.S. Attorney Randy Grossman. Grossman thanked the prosecution team, the ATF, San Diego Police Department, San Diego County Sheriff’s Department and San Diego County Probation Department for their excellent work on this case.
“ATF remains committed to reducing gun crime and to making our communities safer,” said Bureau of Alcohol, Firearms and Explosives (ATF) Los Angeles Field Division Special Agent in Charge Monique Villegas. “ATF works with its local, state and federal partners to stop the flow of guns being used in crimes, by targeting these individuals to prevent, interrupt, and reduce violence. Successful arrests and prosecutions are the result of effective partnerships.”
“This case is a fine example of deputies in the field and the Sheriff's Crime Laboratory working together," said Acting San Diego County Sheriff Kelly Martinez. “We join our federal law enforcement partners in their commitment to bring those who commit gun crimes to justice.”
According to the complaint, Zamora and the other suspect attempted to make entry into the business through a window, but the metal bars prevented their entry. Surveillance video showed the suspects gaining access to the gunsmith office and carrying out multiple firearms from the business. During the commission of the burglary, surveillance video showed Zamora (“Suspect #1”) wearing gloves, a dark hoodie, a light hat underneath the hoodie, a light face mask, light khaki pants, and white shoes, according to court records. The other suspect (“Suspect #2”) was wearing gloves, a dark hoodie, a light hat, a dark face mask, light khaki pants, and black shoes. Both suspects were carrying a pry tool in hand as they approached the store.
According to the complaint, the suspects used a stolen white Ford Econoline van during the commission of the burglary. Surveillance video showed that the van had several unique features – front end damage, no front plate, and a roof rack. Law enforcement officials later recovered the van, which had been abandoned after the burglary in San Diego. Inside the van, officers found a Poway Weapons & Gear bag, a black flashlight, a blue bandana, and a brown beanie.
According to the complaint, the Sheriff’s lab conducted a DNA analysis and found that the brown beanie recovered from the stolen van had a very strong inclusive DNA profile for Zamora.
According to court records, Zamora and the other suspect allegedly stole five semi-automatic pistols and seven semi-automatic rifles from Poway Weapons & Gear.
According to the complaint, in December 2021, law enforcement officers searched Zamora’s residence and found items consistent with the burglary at the Poway Weapons & Gear, such as blue and white bandanas, white shoes, black and gray gloves, a dark ski mask, and a blue jacket. While officers did not recover any of the firearms from the burglary, they did find two firearms in a vehicle where Zamora was an occupant, including a privately-made-firearm, also known as a “ghost gun.” Zamora was subsequently arrested and held in state custody on criminal charges.
On February 17, 2022, a sealed complaint and an arrest warrant were filed against Zamora in federal court. Zamora was arrested today on the federal charges, transferred from state custody to federal custody, and appeared in federal court this afternoon. He was ordered detained without bond at today’s hearing.
This case is part of the Department of Justice’s nationwide commitment to reduce gun crimes known as Project Safe Neighborhoods, or PSN. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders works together to identify the most pressing violent crime problems in the community and develops 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.
DEFENDANT Case Number 22MJ0603
Jaime Angel Zamora Age: 34 San Diego, CA
SUMMARY OF CHARGES
Theft of Firearms from the Premises of a Federal Firearms Licensee – Title 18, U.S.C., Section 922(u)
Maximum penalty: Ten years in prison, $250,000 fine, and forfeiture of all firearms/ammunition
Felon in Possession of a Firearm – Title 18, U.S.C., Section 922(g)(1)
Maximum penalty: Ten years in prison, $250,000 fine, and forfeiture of all firearms/ammunition
AGENCIES
Bureau of Alcohol, Tobacco, Firearms and Explosives
San Diego County Sheriff’s Department
San Diego Police Department
San Diego County Probation Department
*The charges and allegations contained in a complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Project Safe Neighborhoods (PSN) is a nationwide commitment to reduce gun crime in American communities by networking with existing local programs that target these issues and provide these programs with additional tools necessary to be successful. PSN has operated as the U.S. Department of Justice’s primary initiative focused on reduction of gun crime since May of 2001. PSN is a collaborative effort between federal, state, and local law enforcement and prosecutors.
Suburban Chicago Businessman Admits Swindling Hospital in Connection with Attempted Purchases of Personal Protective EquipmentRead the Press Release
CHICAGO — A suburban Chicago businessman pleaded guilty today to a federal fraud charge for swindling $2.5 million from a hospital that paid him for scarce personal protective equipment in the early weeks of the COVID-19 pandemic.
DENNIS W. HAGGERTY, JR., 45, of Burr Ridge, Ill., pleaded guilty to one count of wire fraud, which is punishable by up to 20 years in federal prison, and one count of money laundering, which is punishable by up to ten years. U.S. District Judge John F. Kness set sentencing for May 25, 2022.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorney L. Heidi Manschreck.
Haggerty and two business partners in March 2020 formed a company called At Diagnostics Inc. to sell personal protective equipment. The company reached an agreement with a hospital in Iowa to sell 500,000 N95 respirator masks for $2.495 million. Haggerty created an invoice to reflect the agreement and to instruct the hospital on where to wire the payment. Based on the invoice, the hospital on March 31, 2020, wired the money to a bank account that Haggerty falsely claimed was an At Diagnostics account but which was actually the account of a different business solely controlled by Haggerty.
Haggerty admitted in a plea agreement that he spent part of the money for his own personal benefit, including purchasing two Maserati automobiles and a Land Rover sport-utility vehicle, paying nearly $189,000 to credit card companies, withdrawing more than $147,000 in cash, and paying $20,000 to a personal friend. Haggerty further admitted that At Diagnostics never delivered the masks, and when questioned about it by the hospital he falsely claimed that the bank had no record of the hospital’s payment being received. When his business partners also questioned Haggerty about the whereabouts of the money, Haggerty altered a bank statement to make it appear as if the hospital’s funds had not been received.
Haggerty admitted in the plea agreement that he engaged in similar conduct with a hospital based in Illinois. After reaching an agreement with that hospital to sell one million N95 masks for nearly $4.5 million, the hospital requested that an initial payment be sent to an escrow account instead of the account Haggerty provided. When At Diagnostics failed to fulfill the hospital’s order, the money in escrow was returned. The Illinois hospital, however, later inadvertently wired more than $933,000 to Haggerty’s account in connection with a second order for 500,000 N95 masks that were never delivered. Haggerty admitted in the plea agreement that he spent some of this money for his own personal use and did not return any of it.
Statesville Man Who Robbed Two Convenience Stores on the Same Day at Gunpoint Is Sentenced to More Than 11 Years in PrisonRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell sentenced Anthony Dwayne Turner Jr., 23, of Statesville, N.C. to 135 months in prison and three years of supervised release for robbing two convenience stores at gunpoint, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Turner’s co-defendant, Xavier Lamar Poteat, 21, also of Statesville, was sentenced to three years in prison and two years of supervised release for his role in the robbery.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Chief Ron Campurciani of the Mooresville Police Department, and Chief Josh Watson of the Troutman Police Department join U.S. Attorney King in making today’s announcement.
According to court documents and today’s sentencing hearing, on October 9, 2020, at approximately 2:30 a.m., Turner and Poteat walked into a BP convenience store located in Iredell County. Upon entering, Turner walked up to the store clerk while Poteat waited by the door. Turner then pointed a firearm at the store clerk and demanded money. The store clerk emptied both registers, gave the money to Turner and the two men fled the scene. Court documents show that, on the same day at approximately 3:40 a.m., Turner and Poteat entered a Circle K convenience store also located in Iredell County. Poteat again waited by the front door while Turner approached the store clerk, pointed a gun at him and demanded cash from the register. The clerk obeyed and the two men fled the scene. Law enforcement responding to the robbery located Turner and Poteat’s vehicle and the two men were arrested shortly thereafter. Over the course of the arrest, law enforcement found two firearms inside the vehicle. According to court records, Turner has previous felony convictions and he is prohibited from possessing a firearm.
On October 21, 2021, Turner pleaded guilty to robbery of a business affecting interstate commerce, or “Hobbs Act” robbery, and use, carry and brandishing of a firearm in furtherance of a crime of violence. Poteat pleaded guilty to Hobbs Act robbery.
In making today’s announcement, U.S. Attorney King thanked the FBI, the Mooresville Police Department and the Troutman Police Department for their investigation.
Assistant U.S. Attorney Lambert Guinn of the U.S. Attorney’s Office in Charlotte prosecuted the case.
St. Louis man pleads guilty to distribution of a controlled substance related to overdose death investigationRead the Press Release
ST. LOUIS – United States District Court Judge John A. Ross accepted a plea of guilty from Markquis Bryant on today’s date for the crime of distribution of a controlled substance related to an overdose death. Judge Ross set sentencing for June 14, 2022.
According to the plea agreement, Bryant knowingly and intentionally distributed a controlled substance on or about March 6, 2020, within the Eastern District of Missouri. The investigation began on March 7, 2020, when officers with the Florissant Police Department were dispatched to a residence to investigate a fatal narcotics overdose. Investigators were able to determine that the victim had purchased the fentanyl which caused the overdose from Bryant on March 6, 2020.
Investigators then conducted an undercover operation in which fentanyl was purchased from Bryant at his residence in the 5300 block of Queens Avenue in St. Louis, Missouri. On March 26, 2020, a federal search warrant was executed by the Drug Enforcement Administration and the Florissant Police Department, with assistance from the St. Louis Metropolitan Police Department. While executing the search warrant, law enforcement located five (5) firearms, including a Glock .45 caliber semi-automatic pistol, a Sig Sauer .40 caliber semi-automatic pistol, a Rohm GMBH .22 magnum caliber revolver, a Mossberg International, .22 LR caliber firearm, and an Intratec AB-10 Model .9 mm caliber firearm, as well as an extended magazine. Also seized were large quantities of suspected heroin, fentanyl, and crack cocaine.
The case was investigated by the Florissant Police Department, St. Louis Metropolitan Police Department and the Drug Enforcement Administration.
Springfield Man Sentenced for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Missouri man was sentenced in federal court today after law enforcement officers seized more than two kilograms of methamphetamine from his residence.
Walter M. Terrell, 37, was sentenced by U.S. District Judge M. Douglas Harpool to 13 years in federal prison without parole.
On Sept. 1, 2021, Terrell pleaded guilty to one count of conspiracy to distribute methamphetamine in Greene and Cass counties from May 10 to Nov. 8, 2018. Terrell admitted that he made multiple trips to Texas to acquire kilogram quantities of methamphetamine, which he distributed to others, including co-defendants Christopher Iavolo, 43, and Xlyona Sharp, 38, both of Springfield.
Springfield police officers executed a search warrant at Terrell’s residence on Sept. 5, 2018. Officers found a blue duffle bag next to the couch that contained three bags with a total of 2.625 kilograms of methamphetamine. Terrell, who admitted he recently returned from Texas with a little more than three kilograms of methamphetamine, told officers he usually paid $8,000 to $9,000 for each kilogram of methamphetamine. Officers also seized $12,000 from the residence and $2,600 found in Terrell’s front pocket. Terrell has forfeited to the government the total $14,600 that was seized.
Terrell’s role in the drug-trafficking conspiracy occurred while he was on bond for a state charge of possessing a stolen firearm.
Terrell is the fourth and final defendant to be sentenced in this case.
Sharp was sentenced on Nov. 30, 2021, to seven years in federal prison without parole after pleading guilty to her role in the drug-trafficking conspiracy. Sharp also pleaded guilty to possessing a firearm in furtherance of a drug-trafficking crime.
Iavolo was sentenced on Jan. 6, 2022, to six years in federal prison without parole after pleading guilty to his role in the drug-trafficking conspiracy. Iavolo also pleaded guilty to possessing firearms in furtherance of a drug-trafficking crime.
On Nov. 6, 2018, law enforcement officers executed a search warrant at Iavolo’s residence. Iavolo had a loaded Beretta .32-caliber semi-automatic pistol tucked inside the back of his pants. When officers searched a bedroom, they found a Masterpiece Arms 9mm semi-automatic pistol with an extended high capacity magazine in between the bed’s box spring and mattress. Underneath the bed, they found a loaded HK .22-caliber semi-automatic rifle, a loaded Romarm 7.62x39mm semi-automatic rifle, and a rifle case that contained two loaded Glock 9mm semi-automatic handguns, a loaded Cobra .380-caliber semi-automatic pistol, a loaded Star .45-caliber semi-automatic pistol, a loaded Jennings 9mm semi-automatic pistol, numerous handgun magazines, ammunition, a large knife, a rifle scope, and handgun holsters.
Officers also found a safe inside the bedroom closet that contained 33.37 grams of methamphetamine. The bag appeared as if there was once much more methamphetamine inside of it based upon the amount of residue. There was also a metal scoop inside the bag.
Co-defendant Michael D. Johnson was sentenced on Dec. 1, 2021, to seven years and three months in federal prison without parole. Johnson pleaded guilty to possessing methamphetamine with the intent to distribute.
This case was prosecuted by Assistant U.S. Attorney Jessica R. Sarff. It was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Springfield, Mo., Police Department and the Pleasant Hill, Mo., Police Department.
San Antonio Man Sentenced for Fraud SchemeRead the Press Release
SAN ANTONIO – A San Antonio man was sentenced today to 18 months in prison for a fraud scheme and tax evasion.
According to court documents, from 2007 to 2016, Edward C. Wagner, 60, was the owner and operator of the companies Pharmacogenetics, EcoChem, Leaf 23 and Nutrecs. Wagner promoted and sought investments in these companies from people in Nevada, Texas and Florida. However, Wagner never took steps to get any of the ventures off the ground and none of the companies ever did any amount of significant business. Wagner raised $645,743 from investors and used the money for his own personal use.
Also, from 2007 through 2010, Wagner accrued a total of $744,186 in unpaid taxes and penalties based on taxable income of $1,410,112. Wagner intentionally disguised his actual income by hiding his sources, using nominee financial institution accounts, dealing extensively in cash and cashier’s checks, and creating a false loan document. Wagner also failed to file income tax returns for calendar years 2013 through 2016.
In addition to the prison term, Wagner was ordered to pay $76,733 in restitution for the fraud victims and $1,088,258.03 in restitution to the Internal Revenue Service. On October 12, 2021, Wagner pleaded guilty to one count of Wire Fraud and one count of Tax Evasion.
“Our office remains firmly committed to identifying and prosecuting those who seek to enrich themselves through fraud, whether through false representations to deprive others of money, evading their fair share of taxes, or, as in this case, both,” said U.S. Attorney Ashley C. Hoff.
“Fraudsters, such as Edward Carl Wagner, who create elaborate investment schemes that have no purpose other than to mislead and deceive others while also trying to hide their ill-gotten gains from the Internal Revenue Service, run the very high risk of prosecution. No matter what the source of income, even illegal income is taxable!” said Ramsey E. Covington, Special Agent-In-Charge of the Houston Field Office of IRS Criminal Investigation (IRS-CI). “Today’s sentencing is a reminder to all would be fraud scheme and/or tax evading criminals that you will get caught and you will go to jail.”
The IRS-CI investigated the case.
Assistant U.S. Attorney William R. Harris prosecuted the case.
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Sacramento County Man Sentenced to 10 Years in Prison for Armed Robbery of a U.S. Mail Carrier and Bank FraudRead the Press Release
SACRAMENTO, Calif. — Damian Deleal, 33, of Carmichael, was sentenced today to 10 years and one month in prison for armed robbery of a U.S. mail carrier and bank fraud, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in March 2018, Deleal conspired with others, including Jacey Powell to rob a U.S. mail carrier of a postal service key that could open numerous residential cluster mailboxes in Sacramento County. Deleal conspired to obtain the key so he and his co-conspirators – including Jacey Powell, Brandon Moses, and Loren Patrick – could steal bankcards, checks, and other financial instruments from the mail.
On March 9, 2018, in South Sacramento, an unnamed co-conspirator robbed a mail carrier at gunpoint and forced the victim to hand over a postal service key. During the next few days, Deleal, Powell, Moses, and Patrick used the key to steal mailed bankcards and checks. They then attempted to use these items to purchase goods and obtain cash.
Powell and Deleal further conspired to claim reward money offered for information relating to the robbery and the stolen postal service key. In executing this plan, they planted the stolen key on Moses while he was sleeping in his car and called the U.S. Postal Service to report Moses’ location and inquire about the reward. After receiving this tip, investigators worked quickly to make arrests and learned that Deleal orchestrated the conspiracy and related crimes.
“Prosecuting robberies like this one is important to promote respect for the law and provide just punishment,” said U.S. Attorney Talbert. “Mail carriers play an important part in the everyday workings of our country’s mail system, economy, and critical infrastructures. They should be able to do their jobs without the fear of being robbed or assaulted.”
“This sentence demonstrates clearly that Postal Inspectors do not tolerate violence directed at USPS employees and criminal exploitation of the U.S. Mail,” said Rafael Nuñez, Inspector in Charge of the U.S. Postal Inspection Service San Francisco Division. “I want to thank the U.S. Attorney’s Office for the Eastern District of California for prosecuting this serious case, as well as our law enforcement partners for their crucial assistance.”
This case was the product of an investigation by the U.S. Postal Inspection Service, the Sacramento County Sheriff’s Department, and the Sacramento Police Department. Assistant U.S. Attorney Robert J. Artuz prosecuted the case.
Moses, Patrick, and Powell pleaded guilty to federal charges and were sentenced in the following related cases in this district: U.S. v. Patrick, 2:18-cr-79 (two months in prison), U.S. v. Moses, 2:18-cr-90 (two years and 10 months in prison), and U.S. v. Powell, 2:18-cr-83 (two years in prison).
Saint Louis Man Sentenced to 96 Months for Drug and Gun OffensesRead the Press Release
EAST ST. LOUIS, Ill. – Deandre Young, 43, of St. Louis, Missouri, was sentenced today to 96 months imprisonment by Judge David Dugan in federal court in East St. Louis, Illinois. Young plead guilty on October 7, 2021, to one count of aiding and abetting a co-defendant’s possession with intent to distribute methamphetamine and one count of possession of a firearm in furtherance of a drug trafficking offense.
As part of the guilty plea, Young acknowledged that on March 11, 2021, he aided and abetted his co-defendant’s intended distribution of methamphetamine to a customer at a gas station in Fairview Heights, Illinois, before being arrested by DEA agents. Young was in possession of a firearm at the time of his arrest.
This case was investigated by the Drug Enforcement Administration.
This matter was prosecuted by Assistant United States Attorney Daniel T. Kapsak.Readout of Justice Department Leadership Meeting with FAMMRead the Press Release
Yesterday, Attorney General Merrick B. Garland, Deputy Attorney General Lisa O. Monaco and Associate Attorney General Vanita Gupta met virtually with members of FAMM and a number of individuals and their families who have been impacted by the federal criminal justice system. Department leadership had an opportunity to hear personal stories about how the new earned time credit rule and home confinement policies have changed lives.
The meeting focused on the positive real-world impact of the finalization of the First Step Act Time Credit Rule, and the recent memorandum by the Office of Legal Counsel (OLC) concerning home confinement, as well as the need for Congress to pass the EQUAL Act. The department has strongly urged Congress to pass the EQUAL ACT, which would reduce the disparity between crack cocaine and powder cocaine sentences from 18:1 to 1:1.
The Attorney General emphasized that meetings like these are “vitally important” to help department leadership understand how its “policies on paper affect people and their communities.”
During her remarks, Deputy Attorney General Monaco spoke about the importance of implementing the First Step Act and the Time Credit Rule and praised the work of FAMM. She noted that “as of this month, thousands of people are returning to their communities having put in the work to do so.”
In Associate Attorney General Gupta’s opening remarks, she reiterated the importance of hearing from individuals directly impacted by the criminal justice system and shared that the department provided written testimony to the Senate Judiciary Committee in support of the EQUAL Act in June 2021, saying, “the current sentencing differential between crack and powder cocaine is not based in evidence and yet has caused significant harm in particular to communities of color. It’s past time to correct this.”
Prison sentence wraps up prosecution of middle Georgia drug trafficking conspiracyRead the Press Release
SAVANNAH, GA: With a sentence handed down in U.S. District Court, the final defendant in a drug trafficking conspiracy joins more than two dozen people sent to prison for distributing methamphetamine and cocaine in middle Georgia.
Donnie Edmonds, a/k/a “Hotboy,” 37, of Vidalia, Ga., was sentenced to 151 months in federal prison after pleading guilty to Conspiracy to Possess with Intent to Distribute, and to Distribute, Methamphetamine and Cocaine, said David H. Estes, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge R. Stan Baker also ordered Edmonds to serve three years of supervised release after completion of his prison sentence. There is no parole in the federal system.
“Operation Ace in the Hole is an outstanding example of multiple law enforcement agencies working together to target addictive drugs, gang violence and illegal firearms in the Southern District,” said U.S. Attorney Estes. “It is a credit to the meticulous work of these agencies that every single defendant admitted guilt and is being held accountable. This office will be relentless in pursuit of illegal drugs and violent crime in this District.”
Operation Ace in the Hole, an Organized Crime Drug Enforcement Task Force (OCDETF) investigation, was initiated in August 2018 in response to increasing levels of gang violence and drug-related activities in the Vidalia area.
In June 2019, investigators executed search warrants at eight houses used for stashing or distributing illegal drugs in Atlanta and Vidalia, seizing more than two kilos of cocaine, four kilos of marijuana, half a kilo of methamphetamine, more than two kilos of MDMA (“Ecstasy”), multiple pints of Codeine, 600 grams of Xanax, pill presses, and surveillance equipment. The drugs were hidden in such items as children’s backpacks and baby-formula bottles. Investigators also seized 20 firearms, including a fully automatic machine gun and several assault-style rifles, along with a trove of gang-related documents and nearly $50,000 in cash.
The investigation culminated in a sealed, 61-count federal indictment returned in January 2020 with 26 defendants charged.
The operation’s name, “Ace in the Hole,” was derived from the alias of Justin Adams, a/k/a “Ace,” 41, of Vidalia, who previously was sentenced to 165 months in prison after pleading guilty in the conspiracy. Adams was a regional leader in the Gangster Disciples criminal street gang, and conspired with the primary supplier of the organization’s narcotics, Deltinaud Toussaint, a/k/a “Black,” a/k/a “Tino,” a/k/a “Tino Black,” 45, of Vidalia. Toussaint also pled guilty in the conspiracy and is serving a sentence of 240 months in prison.
Edmonds was a mid-level drug dealer in the organization, buying “crack” cocaine and “ice”-grade methamphetamine from Toussaint for resale to individual users and street-level drug dealers. Like many of the defendants in the conspiracy, Edmonds has a long criminal history, including convictions for drug sales and possession.
Each of the 26 defendants charged in the indictment pled guilty to felony charges, and all have now been sentenced.
“The epidemic of opioids and gun violence is not just limited to the big cities as it affects all communities across our nation” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “The net result of Operation Ace in the Hole is that our communities will be safer as these violent drug traffickers are headed to Federal prison.”
“This drug dealer received a very significant sentence because of his role in the distribution of large quantities of illegal drugs across Middle Georgia,” said Robert J. Murphy, the Special Agent in Charge of the Drug Enforcement Administration (DEA) Atlanta Field Division. “The DEA and its multi-level law enforcement partners are committed to making communities safer by targeting violent criminal enterprises that wreak havoc on our society.”
“This sentencing ends an exhaustive investigation that stopped a conspiracy that was compounding the opioid epidemic and plaguing the streets of our community with crime,” said Philip Wislar, Acting Special Agent in Charge of FBI Atlanta. “The FBI would like to thank our federal, state, and local law enforcement partners who meticulously worked with us on this case. They should be proud of the results and know that the citizens in our neighborhoods are safer today because of their hard work and determination.”
“We are committed to working with our partners to get dangerous guns and drugs off the streets,” said Vic Reynolds, Director of the Georgia Bureau of Investigation (GBI). “We will not allow gangs to continue to terrorize neighborhoods with hardworking citizens that want to raise their families in a safe environment.”
The OCDETF case was investigated by the ATF, the DEA, the FBI, the GBI, the Georgia Department of Community Supervision, the Toombs County Sheriff’s Office, the Lyons Police Department, the Oconee Drug Task Force, and the Liberty County Sheriff’s Office, and is being prosecuted for the United States by Assistant U.S. Attorney E. Greg Gilluly Jr.
Previously Deported Alien Sentenced to Time-Served for Illegal Re-EntryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on February 28, 2022, Jose Angel Robles-Alvarez, age 38, was sentenced to time served of 33 days’ imprisonment and one year of supervised release, by United States District Court Judge Christopher C. Conner for illegal re-entry of a previously deported alien.
According to United States Attorney John C. Gurganus, Robles-Alvarez pleaded guilty to having illegally reentered the United States sometime after his last removal in October 2015. After illegally reentering the United States after that time, he was located on September 3, 2020, in Adams County, Pennsylvania, after an arrest which resulted in a DUI conviction. It is expected he will be removed to Mexico at the completion of his sentence.
This matter was investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO) and was prosecuted by Assistant United States Attorney Joanne M. Sanderson.
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Perry County Man Sentenced to 120 Months for Armed Methamphetamine TraffickingRead the Press Release
LONDON, Ky.— A Hazard, Ky., man, Eric Edward Shuffler, 40, was sentenced to 120 months in federal prison on Tuesday, by U.S. District Judge Claria Horn Boom, after pleading guilty to methamphetamine trafficking and possession of a firearm in furtherance of drug trafficking.
According to Shuffler’s plea agreement, on August 4, 2020, law enforcement stopped Shuffler and he was found to have a loaded 9mm handgun in the backseat of his car, along with a black bag that contained ammunition, 210 grams of methamphetamine, digital scales, and $3,051 in cash. Shuffler admitted that he intended to distribute the methamphetamine and he carried the firearm for his protection in his drug trafficking activities.
Shuffler pleaded guilty to the charges in October 2021.
Under federal law, Shuffler 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 life.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky, and Jodi Cohen, Special Agent in Charge, FBI, Louisville Filed Office, jointly announced the sentence.
The investigation was conducted by the FBI. The United States was represented by Assistant U.S. Attorney Nick Rabold.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprhensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Owner of car dealership pleads guilty to defrauding financing companyRead the Press Release
ATLANTA - Muneeb Syed, a/k/a Ed Syed, has pleaded guilty to charges that he fraudulently obtained auto financing in connection with his used car businesses.
“We expect businesses to operate lawfully,” said U.S. Attorney Kurt R. Erskine. “Instead, this defendant took advantage of a legitimate car financing plan, resulting in his federal conviction on fraud charges.”
“Syed used deceit and fraud to obtain loans that he was not entitled to receive,” said Philip Wislar, Acting Special Agent in Charge of FBI Atlanta. “His guilty plea is a reminder that the FBI remains dedicated to investigating these types of crimes and bringing the offenders to justice.”
According to U.S. Attorney Erskine, the charges and other information presented in court: Muneeb Syed owned Georgia Luxury Cars, LLC, a Marietta used car dealership, as well as other dealerships in Georgia and Alabama. Georgia Luxury Cars had a floor plan financing agreement with Alphera Financial Services, a division of BMW Financial Services NA, LLC, and other financing companies. Floor plan financing allows a dealership to borrow money from a lender to purchase inventory. The company is obligated to repay the lender upon the sale of the cars. Georgia Luxury Cars could request financing directly using an on-line system that relied upon the information provided by Georgia Luxury Cars. Syed utilized this floor plan financing to obtain cars. He purchased cars in a variety of ways, including through auctions. Generally, if Georgia Luxury Cars bought a car at auction, the financing company would pay the auction company directly for the car, and Georgia Luxury Cars owed the financing company under the floor plan agreement.
Beginning in September 2019, Syed began to obtain fraudulent floor plan loans through two different methods. First, Syed falsely claimed to have purchased multiple cars through various auctions. In reality, Syed never purchased these cars but still received funds from BMWFS to which he was not entitled. He did this for over 25 cars and fraudulently received over $1.6 million.
Second, Syed obtained floor plan financing from multiple companies for the same car. That is, he submitted the same car to two or more different financing companies, receiving financing from each company. He did this for approximately 30 cars, fraudulently receiving over $700,000.
Sentencing for Muneeb Syed, 46, of Atlanta, Georgia, is scheduled for June 15, 2022, at 10:00 a.m. before U.S. District Judge Mark H. Cohen. Syed pleaded guilty to wire fraud.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Christopher J. Huber, Deputy Chief of the Complex Frauds Section, is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Opelika Man Sentenced for Being a Felon in Possession of a FirearmRead the Press Release
Montgomery, Alabama – Today, U.S. Attorney Sandra J. Stewart announced that Hyram Franklin Patton, a 38-year-old man from Opelika, Alabama, was sentenced to 57 months in prison for being a felon in possession of a firearm. In addition to his prison sentence, Patton was ordered to serve three years of supervised release. There is no parole in the federal system.
According to court records, on January 26, 2019, an Alabama State Trooper was patrolling Hwy. 51 in Opelika when he observed a black Ford Mustang cross the centerline and initiated a traffic stop. When the Trooper approached the vehicle, he made contact with the female driver and asked her to step out of the car to check for impairment, she complied. The Trooper observed a man in the in the passenger seat and when he attempted to identify him, the man gave conflicting information about his name. During this process, the Trooper noticed that the passenger was reaching around behind the seat in a suspicious manner and asked for him to exit the vehicle in case he might be reaching for a weapon. The vehicle was then searched and a 9mm handgun was found in the pocket on the back of the seat. The Trooper was finally able to positively identify the passenger as Hyram Franklin Patton, who had an outstanding felony warrant out of Macon County. Patton eventually admitted the gun belonged to him. Patton also has previous felony convictions and is prohibited from possessing firearms. Patton was arrested on the scene and the driver was issued a traffic citation and released.
Patton was indicted by a federal grand jury for being a felon in possession of a firearm on January 15, 2021. He pleaded guilty to that charge on May 4, 2021 and was sentenced on February 25, 2022.
The Alabama Law Enforcement Agency and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated this case. Assistant United States Attorney Brandon Bates prosecuted the case.
Ohio man admits to drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Reuben Jahmell Dauntez Donald, of Akron, Ohio, has admitted to a drug charge, United States Attorney William Ihlenfeld announced.
Donald, 36, pleaded guilty today to one count of “Distribution of Methamphetamine Within 1,000 Feet of a Protected Location.” Donald admitted to selling methamphetamine in October 2021 near Jensen Playground on Wheeling Island.
Donald faces at least one and up to 40 years of incarceration and fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Ohio man admits to drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Andre Duana Bundy, of Youngstown, Ohio, has admitted to a drug charge, United States Attorney William Ihlenfeld announced.
Bundy, 39, pleaded guilty today to one count of “Distribution of 50 Grams or More of Methamphetamine.” Bundy admitted to selling 50 grams or more of methamphetamine in August 2021 in Hancock County.
Bundy faces at least 10 years and up to life incarceration and fine of up to $10,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Shawn M. Adkins and Clayton J. Reid are prosecuting the case on behalf of the government. The Hancock-Brooke-Weirton Drug Task Force, a HIDTA-funded initiative; the Drug Enforcement Administration Wheeling; the Drug Enforcement Administration Youngstown; and the Ohio Highway Patrol investigated. The Marshall County Drug Task Force, a HIDTA-funded initiative; the Ohio Valley Drug Task Force, a HIDTA-funded initiative; and the Mahoning County, Ohio Sheriff’s Office assisted in the investigation.
U.S. Magistrate Judge James P. Mazzone presided.