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Tuesday 18 January 2022
Butler City Woman Sentenced for Conspiring to Distribute FentanylRead the Press Release
PITTSBURGH – A resident of Butler City, Pennsylvania, has been sentenced in federal court on charges of conspiracy to possess with intent to distribute and distribute fentanyl and possession with intent to distribute fentanyl, United States Attorney Cindy K. Chung announced today.
Kristin Tate, 39, currently housed in the Butler County Prison, was sentenced by Judge Christy Criswell Wiegand to time served (17 months’ incarceration) at each count, with a supervised release imposed for a term of 36 months at each count.
Assistant United States Attorney Benjamin J. Risacher is prosecuting this case on behalf of the government.
The Butler County District Attorney’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation leading to the prosecution of Tate.
Administrative Assistant at Suburban Chicago Medical Practice Sentenced to a Year in Federal Prison for Fraudulently Writing Opioid PrescriptionsRead the Press Release
CHICAGO — An administrative assistant at a suburban Chicago medical practice has been sentenced to a year in federal prison for fraudulently writing opioid prescriptions to an acquaintance.
AMANDA BIESIADA worked as an administrative assistant at Hinsdale Orthopaedics, a medical practice in Westmont, Ill. Biesiada was not a licensed physician and could not lawfully prescribe medications without the direction and approval of licensed doctors.
From 2017 to 2019, Biesiada fraudulently wrote 85 prescriptions to the acquaintance for hydrocodone, oxycodone, and other controlled substances. Biesiada purported to write the prescriptions on behalf of six Hinsdale Orthopaedics health care providers. In reality, the providers did not direct or approve the prescriptions. Biesiada attempted to conceal the fraudulent prescriptions by marking them as having been “filed in error” in the Hinsdale Orthopaedics prescription system.
Biesiada, 39, of Alsip, Ill., pleaded guilty last year to one count of knowingly and intentionally dispensing controlled substances outside the usual course of professional practice and without a legitimate medical purpose. U.S. District Judge John J. Tharp, Jr., on Thursday sentenced Biesiada to a year and a day in federal prison.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Robert J. Bell, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration.
“The opioid epidemic has devastated the lives of countless individuals through addiction and overdose,” Assistant U.S. Attorney G. David Rojas argued in the government’s sentencing memorandum. “Defendant contributed to this national crisis by helping make opiates available to an individual who otherwise would not and should not have had access to them.”
Monday 17 January 2022
Wallace Man Sentenced to 30 Years for Producing Child PornographyRead the Press Release
United States Attorney Jan Sharp announced that Richard L. Moore, 67, formerly of Wallace, Nebraska, was sentenced on January 13, 2022 in Lincoln, Nebraska, by United States District Judge John M. Gerrard for production of child pornography. Moore was sentenced to 360 months in prison and will also spend the remainder of his life on supervised release after that period of incarceration. There is no parole in the federal system. After serving his prison sentence, Moore will also be required to register as a sex offender. Additionally, Moore was ordered to pay restitution of more than $100,000. The federal sentence was ordered to run concurrent with the 25- to 35-year sentence previously imposed by the Lincoln County District Court for his state conviction.
In October, 2019, a report was received by the Lincoln County Sheriff’s Office that Moore had engaged in and produced images of sexually explicit conduct involving two minor children. The children had reported the abuse to their parents. Subsequent interviews with the minor children confirmed the sexual conduct had occurred and Moore was identified as the perpetrator.
On October 18, 2019, the Perkins County Sheriff and members of the Lincoln County Sheriff's Office served a search warrant at Moore’s residence. During the search warrant, law enforcement found multiple devices used to reproduce both video and digital images; 5 monitors connected to a single system; at least 5 external hard drives with a total capacity of 36 terabytes; and a substantial collection of VHS and digitally stored pornography. Forensic examination determined a minimum of 48,000 images and 84 videos of child pornography found on the computers and storage media located at the defendant’s residence. The sheer volume of the data located at Moore’s residence renders a more accurate count virtually impossible.
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.
This case was investigated by the Lincoln County Sheriff’s Office, Perkins County Sheriff’s Office and the Federal Bureau of Investigation.
U.S. Attorney Chung Statement on Martin Luther King, Jr. DayRead the Press Release
PITTSBURGH – United States Attorney Cindy Chung released the following statement today for Martin Luther King. Jr. Day.
“Each year, America honors the life and vision of a great American: the Reverend Martin Luther King, Jr. Dr. King’s lifelong dedication to justice, equality, and service for the greater good inspires us today and every day.
“The examples set by Dr. King and other civil rights leaders instilled in me a desire to serve the community and do my part to protect the civil rights of all citizens. This led me to work as an official corruption prosecutor in New York City, then as an attorney prosecuting criminal violations of civil rights at the Department of Justice in Washington, D.C., and then doing the same work here in Pittsburgh as an Assistant United States Attorney.
“It is now my great privilege to lead the U.S. Attorney’s Office for the Western District of Pennsylvania. This office is committed to the vigorous, fair, and impartial enforcement of the civil rights of all persons, particularly the most vulnerable members of our society.
“Civil Rights Crimes: We are enhancing collaboration with our local and state law enforcement partners, and with our community groups who work and see victims on a daily basis -- victims who are often hesitant or fearful to report these crimes. Prosecuting these civil rights cases -- hate crimes, criminal excessive force and other official misconduct, and human trafficking -- are among our highest priorities.
“Non-Criminal Measures: Criminal laws are just one tool -- we cannot solely rely on prosecutions to achieve these goals. Thus, we are also increasing our use of non-criminal measures, like training and legal action, to fight unfair treatment, discrimination, and sexual harassment in the areas of employment, housing, education, public accommodation, and in ensuring that every eligible voter can cast a vote. If you are interested in hosting a civil rights training, please contact our office.
“Finally, our office is also prioritizing reentry, turning our attention to the success of people returning to our neighborhoods after confinement. Our re-entrants face many barriers and we are committed to supporting them through efforts such as our specialized re-entry court and Veterans Court.
“Today, we honor Dr. King’s legacy and those who continue to do Dr. King’s work to guarantee equal rights and freedom for all.”
Saturday 15 January 2022
Saugerties Man Sentenced in Ulster County Cocaine and Marijuana Trafficking ConspiracyRead the Press Release
ALBANY, NEW YORK – Russell J. Neglia, age 26, was sentenced today to 21 months in prison for his involvement in a drug trafficking organization in Ulster County that was dismantled in March 2020.
The announcement was made by United States Attorney Carla B. Freedman; Ricky J. Patel, Special Agent in Charge of Homeland Security Investigations (HSI), New York; Ulster County Sheriff Juan Figueroa, whose office leads the Ulster Regional Gang Enforcement Narcotics Team (URGENT); and Ulster County District Attorney David Clegg.
In March 2020, HSI and URGENT investigators acted on evidence they had collected, executing three search warrants on residences in Saugerties and southern Greene County related to a cocaine and marijuana trafficking organization. In the course of the takedown, three members of the organization – Neglia, Roger W. Hummer II and Michael A. Manor – were arrested on federal drug trafficking charges. Investigators seized over two kilograms of cocaine, 125 pounds of marijuana, $68,000 in drug proceeds, three vehicles used to traffic drugs, and one firearm.
Following up on the evidence uncovered by those searches and arrests, four additional individuals affiliated with the drug trafficking organization were arrested and charged by the Ulster County District Attorney.
As part of his plea, Neglia admitted that between January 2019 and March 2020, he sold at least 1.8 kilograms of cocaine on behalf of the organization.
As part of his sentence, U.S. District Judge Mae A. D’Agostino also ordered Neglia to serve a 3-year term of supervised release upon his release from prison, pay a $15,000 fine and forfeit approximately $19,000 in drug proceeds and two vehicles used in furtherance of his cocaine trafficking.
The following defendant pled guilty in connection with the conspiracy, and was sentenced as follows:
Name
Age
Prison Term
Supervised Release Term
Michael A. Manor
40
60 months
4 years
The following defendant has also pled guilty in connection with the conspiracy, and faces the following penalties:
Name
Age
Minimum
Maximum
Roger W. Hummer, II
39
10 years
Life
This case was investigated by HSI, the Ulster County Sheriff’s Office in conjunction with URGENT, an inter-agency taskforce targeting drug dealers and gang members in Ulster County, and the Ulster County District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorneys Emmet O’Hanlon and Ashlyn Miranda.
Friday 14 January 2022
Wiretap Leads to Vinton Man’s Guilty Plea to Conspiring to Distribute HeroinRead the Press Release
A man who conspired to distribute heroin, fentanyl, and other synthetic opioids pled guilty today in federal court in Cedar Rapids.
Ryan Rick Schlitter, age 39, from Vinton, Iowa, was convicted of one count of conspiracy to distribute heroin.
In a plea agreement, Schlitter admitted that he obtained distribution quantities of heroin through a group of heroin dealers based out of Cedar Rapids. During a federal wiretap investigation in 2021, investigators intercepted calls between one of the dealers and an associate of Schlitter’s. After the intercepted calls, Schlitter and his associate drove to meet with the dealer. The associate purchased over seven grams of a substance containing heroin, fentanyl, and the synthetic opioids acetyl fentanyl, para‑fluorofentanyl, and metonitazene. Officers stopped the vehicle and seized the drugs, which Schlitter admitted that he possessed and intended to distribute to others. Schlitter also admitted that, in June 2021, he sold $200 worth of a substance containing heroin, acetyl fentanyl, and fentanyl during an undercover operation in Cedar Rapids.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Schlitter remains in custody of the United States Marshal pending sentencing. Schlitter faces a possible maximum sentence of 20 years’ imprisonment, a $1,000,000 fine, and a lifetime of supervised release following any imprisonment.
The case was investigated by the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; and the Iowa Division of Narcotics Enforcement and is being prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21‑CR‑00032‑10‑CJW‑MAR.
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Virginia Beach Man Sentenced for Life Insurance Fraud SchemeRead the Press Release
NORFOLK, Va. – A Virginia Beach man was sentenced today to 27 months in prison for defrauding life insurance companies.
According to court documents, in 2018, Michael Leonard Morgan-Towe, 37, and Antionette D. Pringle, 33, also of Virginia Beach, obtained approximately $150,000 in fraudulent advance commissions from life insurance companies. Morgan-Towe recruited indigent individuals, falsely promising them months of “free” life insurance if they would provide their personal identifying information. Then, Pringle, a licensed insurance agent in Virginia, used this information to submit applications for life insurance, falsifying their income to make it appear as if they could pay the monthly premiums, when she knew they could not. In some instances, she misstated their health conditions as to ensure their application would be approved.
The life insurance companies sent Pringle thousands of dollars in advance commissions as soon as the applications were approved, which she shared with Morgan-Towe. However, almost all of the policies lapsed immediately because no premiums were paid, as the individual beneficiaries thought they were obtaining free life insurance.
In December 2020, Pringle was sentenced to 4 years in prison for her role in the scheme.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
The Virginia State Corporation Commission provided significant assistance with this investigation.
Assistant U.S. Attorney Rebecca Gantt prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:21-cr-22.
Universal Aryan Brotherhood Member Who Killed a Man in 2017 Pleads Guilty to Participating in a Racketeering ConspiracyRead the Press Release
Universal Aryan Brotherhood member Dillon Rose, 30, pleaded guilty this week to conspiracy to participate in a racketeering enterprise, announced U.S. Attorney Clint Johnson.
As part of the conspiracy, he admitted to murdering victim Jason Harris in 2017.
The plea agreement calls for Rose to serve 22 years in prison to run concurrent with the state of Oklahoma sentence he is presently serving. U.S. District Judge Claire V. Eagan will determine Rose’s sentence on May 3, 2022.
“Dillon Rose took an active role in the Universal Aryan Brotherhood. As part of his nefarious crimes, he kidnapped and murdered a man,” said U.S. Attorney Clint Johnson. “I want to thank Assistant U.S. Attorney Dennis Fries and special agents with Homeland Security Investigations and IRS-Criminal Investigation who have sought justice for Oklahomans victimized by this deadly criminal organization.”Rose, in his plea agreement, stated that he was a member of the Universal Aryan Brotherhood from 2016 to the present. Rose knew that at least two other UAB members would commit racketeering crimes. He understood the objectives of the racketeering conspiracy and took part in it. Rose admitted to being involved directly, or as a coconspirator, in two or more racketeering crimes to include murder, kidnapping, and more. Specifically on Oct. 4, 2017, Rose along with Dustin Baker kidnapped, robbed and killed Jason Harris. The 38-year-old victim was later discovered in an SUV on the shoulder of Highway 169.
Rose was indicted on Dec. 7, 2018, with 17 other UAB members and associates. The indictment was unsealed Feb. 20, 2019, and alleged the gang to be a racketeering enterprise that committed acts of murder, kidnapping, the trafficking of methamphetamine and firearms, money laundering, assault, and robbery throughout the State of Oklahoma. The indictment alleged that nine individuals were murdered as part of the UAB’s racketeering operations, often upon the orders of the Main Council, the highest governing body of the UAB.
The UAB is a “whites only” prison-based gang with members operating inside and outside of state prisons throughout Oklahoma. It was established in 1993 within the Oklahoma Department of Corrections and modeled itself after the principles and ideology of the Aryan Brotherhood, a California-based prison gang that formed in the 1960s.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and IRS-Criminal Investigation led the investigation with assistance from the Tulsa County Sheriff’s Office, the Oklahoma Department of Corrections, the Tulsa and Enid Police Departments, the Oklahoma Bureau of Narcotics and Dangerous Drugs, the U.S. Marshals Service, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Dennis A. Fries is prosecuting this case.
You can find the press release announcing charges in February 2019 here.
U.S. Citizen Charged with Conspiring to Provide Electronic Equipment and Technology to the Government of IranRead the Press Release
A criminal complaint has been unsealed in federal court in Brooklyn charging Kambiz Attar Kashani, a dual citizen of the United States and Iran, with conspiring to illegally export U.S. goods, technology, and services to end users in Iran, including the Government of Iran, in violation of the International Emergency Economic Powers Act (IEEPA). Kashani was arrested yesterday in Chicago, Illinois, and had an initial appearance today before United States Magistrate Judge Sheila M. Finnegan at the federal courthouse in Chicago. The defendant was remanded pending a detention hearing.
Breon Peace, United States Attorney for the Eastern District of New York, Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division, and Joseph R. Bonavolanta, Special Agent-in-Charge, Federal Bureau of Investigation, Boston Field Office (FBI), announced the arrest.
“As alleged, Kashani orchestrated an elaborate scheme to evade U.S. export laws and use the U.S. financial system in procuring U.S. electronic equipment and technology for the Central Bank of Iran, which has been designated by the United States government as acting for or on behalf of terrorist organizations. The defendant allegedly used two United Arab Emirates companies as fronts to procure items from multiple U.S. technology companies, including a company in Brooklyn,” stated United States Attorney Peace. “Kashani’s arrest underscores the unrelenting resolve of this Office and the Department of Justice to prosecute those who seek to profit by compromising our national security.”
“We arrested Kambiz Attar Kashani for conspiring to deceive U.S. companies, including one headquartered in Massachusetts, by illegally exporting their highly sophisticated electronic equipment and technology to the Government of Iran. We believe Mr. Kashani profited financially by strengthening the economy of one of the world’s most infamous state sponsors of terrorism, while circumventing critical U.S. laws designed to protect our national security interests,” stated FBI Special Agent-in-Charge Bonavolonta. “This case is another example of the FBI’s commitment to work with our law enforcement partners to protect American businesses and stop the illegal export of sensitive information and technology to nations that are hostile to the United States.”
As set forth in the complaint, Kashani conspired to illegally export goods and technology to the Central Bank of Iran (CBI), which the United States government recognizes is an agency of the Government of Iran. The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has classified CBI as a Specially Designated National (SDN) signifying that CBI is acting for or on behalf of a terrorist organization. According to the U.S. government, CBI has materially assisted, sponsored and provided financial, material or technological support, goods or services to Lebanese Hizballah, a terrorist organization, and to the Qods Force of Iran’s Islamic Revolutionary Guards Corps (IRGC). The IRGC is a branch of the Iranian armed forces and represents the primary means of the Government of Iran to direct and implement its global terrorism campaign.
Kashani allegedly perpetrated the illegal transshipping scheme through two separate United Arab Emirates (UAE) front companies for which he acts as principal. From around February 2019 through June 2021, Kashani and his co-conspirators used the two UAE companies to procure electronic goods and technology from multiple U.S. technology companies, including a company located in Brooklyn, New York, for end users in Iran, including CBI, without obtaining required OFAC export licenses. Kashani and his co-conspirators intentionally concealed from the U.S. companies that they intended to send the items to Iran, falsely claiming that the UAE front companies would be the ultimate end users.
The charge in the complaint is an allegation, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Alexander A. Solomon and Meredith A. Arfa are in charge of the prosecution, with assistance provided by Trial Attorney S. Derek Shugert of the Justice Department’s Counterintelligence and Export Control Section and Assistant United States Attorney Shawn McCarthy of the Northern District of Illinois.
Defendant:
KAMBIZ ATTAR KASHANI
Age: 44
United Arab EmiratesE.D.N.Y. Docket No.: 21-MJ-31
U.S. Attorney's Office Collects $4,281,327.54 in Civil and Criminal Actions in Fiscal Year 2021Read the Press Release
KNOXVILLE, Tenn. – United States Attorney Francis M. Hamilton III announced today that the Eastern District of Tennessee collected $4,281,327.54 in criminal and civil actions in Fiscal Year 2021. Of this amount, $3,668,516.41 was collected in criminal actions and $612,811.13 was collected in civil actions.
Separately, in fiscal year 2021, the District of Eastern District of Tennessee also recovered $555,110.14 as the result of filling an execution in an ongoing criminal matter.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s office in Eastern District of Tennessee, working with partner agencies and divisions, collected $2,663,255 in asset forfeiture actions in FY 2021. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
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Two Kyle Men Charged in 2016 Murder on the Pine Ridge ReservationRead the Press Release
United States Attorney Dennis R. Holmes announced that two Kyle, South Dakota, men have been charged in federal court with First Degree Murder.
Stetson Eagle Elk, age 28, was charged on January 12, 2022, and Gary Little Bull, Jr., age 29, was charged on January 13, 2022. They appeared before U.S. Magistrate Judge Daneta Wollmann on January 14, 2022, and pled not guilty to the charges.
The maximum penalty upon conviction is mandatory life in federal prison and/or a $250,000 fine, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges stem from Eagle Elk and Little Bull shooting and killing Todd Little Bull in August 2016 in Kyle. The charges are merely an accusation and Eagle Elk and Little Bull are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.
Eagle Elk and Little Bull were detained pending a preliminary hearing on the charges.
Ten Charged with Offenses Related to Multi-Year Cocaine ConspiracyRead the Press Release
MADISON, WIS. – Three indictments have been unsealed charging a total of 10 people with participating in a cocaine conspiracy, announced Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin. The indictments were returned by a federal grand jury sitting in Madison, Wisconsin, on January 5, 2022.
The first indictment charges:
1. Winfield Agee, 35, Chicago, Illinois;
2. Darryl McDonald, 38, Chicago;
3. Jason Hall, 36, Sun Prairie, Wisconsin;
4. Nikia Cannon, 46, Chicago;
5. Kiayla Alston, 28, Madison;
6. Daniel Barlow, 34, Madison;
7. Daren Jones, 27, Madison; and
8. Larry Dotson, 40, Madison.
This indictment charges that from December 2014 to November 2020, Winfield Agee and Darryl McDonald conspired to distribute and possess with intent to distribute 5 kilograms or more of cocaine. The indictment also charges that from November 2010 to July 2020, Agee conspired to distribute and possess with intent to distribute marijuana. If convicted, Agee and McDonald face a mandatory minimum penalty of 10 years and a maximum of life on the cocaine conspiracy charge, and Agee faces a maximum penalty of 5 years in federal prison on the marijuana conspiracy. Agee was arrested in Chicago on January 12, 2022 and his initial appearance in U.S. District Court in Madison occurred on the same day. McDonald was arrested in Indiana on January 12, 2022. His initial appearance in U.S. District Court in Fort Wayne, Indiana occurred on January 13, 2022.
The indictment also charges that from December 2018 to May 2020, Jason Hall conspired to distribute and possess with intent to distribute cocaine. The indictment alleges that the amount of cocaine attributable to Hall was 500 grams or more. In addition, the indictment charges Hall with 5 counts of distributing cocaine in April and May 2020, and with possessing cocaine with intent to distribute on February 24, 2021. If convicted, Hall faces a mandatory minimum penalty of 10 years and a maximum of life on the cocaine conspiracy charge, and a maximum of 20 years on the other 6 charges. Hall was arrested in Madison on January 13 and his initial appearance in U.S. District Court in Madison occurred on the same day.
The indictment charges that from December 2018 to May 2020, Nikia Cannon and Kiayla Alston conspired to distribute and possess with intent to distribute cocaine. If convicted, they face a maximum penalty of 20 years in federal prison. Cannon was arrested in Chicago, Illinois on January 13, 2022 and her initial appearance in U.S. District Court in Chicago occurred on the same day. Alston was arrested in Madison on January 13, 2022 and her initial appearance in U.S. District Court in Madison occurred on the same day.
The indictment charges Daren Jones with 3 counts of possessing cocaine with intent to distribute. The indictment alleges that he possessed cocaine for distribution on April 26, April 30, and May 6, 2020. If convicted, he faces a maximum penalty of 20 years in federal prison on each count. Jones was arrested in Madison on January 13, 2022. His initial appearance in U.S. District Court in Madison is scheduled for today.
The indictment charges Daniel Barlow with 2 counts of possessing cocaine with intent to distribute. The indictment alleges that he possessed cocaine for distribution on April 24 and May 5, 2020. If convicted, he faces a maximum penalty of 20 years in federal prison on each count. Barlow was already in custody on an unrelated matter. His initial appearance in U.S. District Court in Madison has not been scheduled.
Finally, the indictment charges Larry Dotson with attempting to possess 500 grams or more of cocaine with intent to distribute on November 25, 2020. If convicted, he faces a mandatory minimum penalty of 10 years and a maximum of life in federal prison. Dotson was arrested in Madison on January 12, 2022. His initial appearance in U.S. District Court in Madison has not been scheduled.
The second indictment charges Shaneeque Parker, 27, Madison, Wisconsin, with possessing cocaine with intent to distribute on November 25, 2020. If convicted, Parker faces a maximum penalty of 20 years in federal prison. Her initial appearance in U.S. District Court in Madison has not been scheduled.
The third indictment charges Brian Battle, 44, Jefferson, Wisconsin, with possessing cocaine with intent to distribute and with being a felon in possession of a firearm. The indictment alleges that on April 25, 2021, he possessed cocaine for distribution and a firearm. If convicted, Battle faces a maximum penalty of 20 years in federal prison on the cocaine charge and a maximum of 10 years on the gun charge. His initial appearance in U.S. District Court in Madison has not been scheduled.
The charges against these individuals are the result of an investigation by the Drug Enforcement Administration; Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Wisconsin Department of Justice Division of Criminal Investigation; Dane County Narcotics Task Force; Jefferson County Narcotics Task Force; Madison Police Department; and Chicago Police Department. Assistant U.S. Attorney Diane Schlipper is handling the prosecution.
You are advised that a charge is merely an accusation and that the defendants are presumed innocent until and unless proven guilty.
St. Francis Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Dennis R. Holmes announced that a St. Francis, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Tanner Kills Enemy, age 23, was indicted on January 11, 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 13, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that Kills Enemy, a person required to register as a sex offender, knowingly failed to register and update his registration between November 12, 2021, and December 16, 2021, while living in St. Francis on the Rosebud Sioux Indian Reservation.
The charge is merely an accusation and Kills Enemy is presumed innocent until and less proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Kills Enemy was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Sioux Falls Men Charged with Possession of a Stolen Firearm and Drug User in Possession of a FirearmRead the Press Release
United States Attorney Dennis R. Holmes announced that two Sioux Falls, South Dakota, men have been indicted by a federal grand jury for Possession of a Stolen Firearm and Drug User in Possession of a Firearm.
Harry Nyemah, age 18, and Ebenezer Jatenaw, age 18, were indicted on January 4, 2022. They both appeared before U.S. Magistrate Judge Veronica L. Duffy on January 12, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, three years of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about December 14, 2021, Nyemah and Jatenaw were found in possession of a stolen firearm, a Rock River Arms LAR 15, 5.56x45mm NATO Caliber, semi-automatic pistol, which had been previously shipped and transported in interstate and foreign commerce. Nyemah is also alleged to be an unlawful user of a controlled substance in possession of a firearm.
The charges are merely accusations and Nyemah and Jatenaw are presumed innocent until and unless proven guilty.
The investigation is being conducted by Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Nyemah and Jatenaw were released on bond pending trial which has been set for March 22, 2022.
Selma Man with Prior Assault Conviction Sentenced in Firearms CaseRead the Press Release
MOBILE, AL – A Selma man was sentenced today to one year and one day in prison for being a felon in possession of a firearm.
According to court documents, Roderick James McGuire, 41, was arrested during a traffic stop by Dallas County sheriff’s deputies in January 2019 in possession of a loaded Hi-Point 9mm pistol and marijuana. McGuire admitted to deputies that he had a gun and marijuana in the car he was driving. At the time of his arrest, McGuire knew that he had previously been convicted in 2013 for first degree assault after he shot a victim in the arm. McGuire was on state probation for that offense at the time he possessed the gun and marijuana in this case. Under federal law, McGuire is prohibited from possessing firearms or ammunition as a result of his felony conviction.
United States District Judge Kristi K. DuBose ordered McGuire to serve a three-year term of supervised release upon his release from prison, during which time he will undergo drug testing and treatment. The court did not impose a fine, but Judge DuBose ordered McGuire to pay $100 in special assessments.
U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Dallas County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Justin Roller prosecuted the case on behalf of the United States.
Rochester Man Who Bilked at Least 1000 Victims Out of More Than 100-Million in A Nationwide Multi-Million Dollar Ponzi Scheme Going to PrisonRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that Perry Santillo, 41, of Rochester, NY, who was convicted of conspiracy to commit mail fraud, mail fraud, and conspiracy to launder money, was sentenced to serve 210 months in prison by U.S. District Judge Frank P. Geraci, Jr. Santillo was also ordered to pay restitution totaling $102,952,582.77.
Assistant U.S. Attorney John J. Field, who handled the case, stated that between January 2008 and June 2018, Perry Santillo conspired with Christopher Parris and others, to obtain money through an investment fraud commonly known as a Ponzi scheme. In 2007, Santillo and Parris, as equal partners, formed a business known as Lucian Development in Rochester, which raised millions of dollars from investors in Rochester, and elsewhere, by soliciting investments for City Capital Corporation, a business operated by Ephren Taylor. In July 2007, Santillo and C.P. were advised by Ephren Taylor that their investors’ money had been lost. In response, in August 2007, Santillo and Parris agreed to acquire the assets and debts of City Capital Corporation. The acquisition proved financially ruinous, with the amount of the acquired debt far exceeding the value of the acquired assets. Taylor was later prosecuted and convicted of operating a Ponzi scheme.
Subsequently, Santillo and Parris chose not to disclose the truth to investors that their money was gone. Instead, they continued to solicit ever-increasing amounts of money from new investors in an unsuccessful attempt to recoup the losses. In order to find potential investors to solicit and defraud, Santillo and Parris purchased the businesses of at least 15 investment advisors or brokers, located in Tennessee, Ohio, Minnesota, Nevada, California (5 businesses), Florida, South Carolina (2 businesses), Texas, Pennsylvania, Maryland, and Indiana. Over the years, to keep the Ponzi scheme from being detected, a substantial portion of incoming new investor monies were depleted by making promised interest and other payments to earlier investors. Most of the rest of incoming investor money was used by Santillo and Parris to finance lavish lifestyles, expand the scheme by purchasing investment advisor/brokerage businesses to obtain access to fresh investors, and to pay operating expenses – salaries for a sales force and administrative staff, office rents and related expenses, housing for employees, and interest on loans.
Between January 2012 and June 19, 2018, Santillo and Parris obtained at least $115.5 million from approximately 1000 investors. By the time the scheme collapsed in late-2017/early 2018, Santillo and Parris had returned approximately $44.8 million to investors as part of their scheme but continued to owe investors approximately $70.7 million.
“For years, Perry Santillo preyed on investors who placed their trust in him to properly invest their hard-earned money,” stated U.S. Attorney Ross. “However, Santillo abused the trust of those investors to finance his own self-interests. Because of the hard work of law enforcement to expose Santillo’s fraudulent scheme, he is facing the consequences of his actions, including going to prison.”
“IRS-CI agents are known for following the money trail, and in this case, it stretched nearly a decade long and involved more than 1,000 victims and $100 million,” said Thomas Fattorusso, Special Agent-in-Charge of the IRS-CI New York Field Office. “I am grateful to our agents and law enforcement partners who helped unravel this Ponzi scheme, and I hope the scheme’s victims have closure today knowing that justice was served.”
Christopher Parris was previously convicted and is awaiting sentencing.
The sentencing is the result of an investigation by the United States Postal Inspection Service, under the direction of Inspector-in-Charge Ketty Larco-Ward, Boston Division; the Federal Bureau of Investigation, Buffalo Division, under the direction of Special Agent-in-Charge Stephen Belongia; the Internal Revenue Service, Criminal Investigation Division, under the direction of Thomas Fattorusso, Special Agent-in-Charge; the U.S. Department of Labor, Office of Inspector General, Office of Investigations – Labor Racketeering and Fraud, under the direction of Jonathan Mellone, Special Agent-in-Charge, New York Region, the New York State Department of Financial Services, under the direction of Superintendent Linda A. Lacewell; and the Securities and Exchange Commission.
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Rochester Man Sentenced to 10 Years in Prison for Arson of Minneapolis Pawn Shop that Resulted in the Death of a ManRead the Press Release
ST. PAUL, Minn. – A Rochester man was sentenced to 120 months in prison followed by three years of supervised release for the arson of a Minneapolis pawn shop that resulted in the death of a man. Acting U.S. Attorney Charles J. Kovats made the announcement after U.S. District Judge Wilhelmina M. Wright sentenced the defendant.
According to court documents, on May 28, 2020, Montez Terriel Lee, 26, along with others, broke into the Max It Pawn Shop on East Lake Street in Minneapolis. Surveillance video footage showed Lee pouring a fire accelerant around the pawn shop and lighting the accelerant on fire. The fire destroyed the building. A second video showed Lee standing in front of the burning pawn shop and Lee could be heard saying, “[expletive] this place. We’re gonna burn this [expletive] down.”
According to court documents, on July 20, 2020, authorities located the body of a 30 year old man, O.S., in the rubble of the burned Max It Pawn building. The Hennepin County Medical Examiner’s Office attributed O.S.’s death to “probable inhalation of products of combustion and thermal injury (building fire).”
This case was the result of an investigation conducted jointly by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the FBI, the Minneapolis Police Department, the Rochester Police Department, and the Minnesota State Fire Marshal Division.
This case was prosecuted by Assistant U.S. Attorney Thomas Calhoun-Lopez.
Rochester Man Going to Prison for 15 Years for Fentanyl Trafficking and Causing Non-Fatal OverdoseRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that Shermart D. Merriwether, 26, of Rochester, NY, who was convicted of distribution of fentanyl, was sentenced to serve 180 months in prison by Chief U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Brett A. Harvey, who handled the case, stated that Merriwether was part of a group of individuals who ran a drug house at 192 Weaver Street in the City of Rochester. Merriwether and others sold quantities of fentanyl from the house in 2018 and 2019. Merriwether admitted to selling a quantity of fentanyl to a 24-year-old female who suffered a non-fatal overdose at a gas station on East Ridge Road in Irondequoit, NY. The victim ingested the fentanyl and then lost consciousness while at a pump at the gas station. Irondequoit Ambulance personnel responded and gave the victim Narcan, after which she regained consciousness. Merriwether admitted that, if emergency personnel had not administered Narcan to the victim, there was a substantial risk that she would have died from fentanyl toxicity.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Acting Special Agent-in-Charge Keith Kruskall, New York Field Division; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; and the Rochester Police Department, under the direction of Interim Chief David Smith.
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Raleigh Eight Trey Crip Gangster Sentenced to 40 Years in Prison for VICAR and Methamphetamine Distribution ConvictionsRead the Press Release
RALEIGH, N.C. – A Raleigh man was sentenced today to 480 months in prison for conspiracy to distribute and possess with intent to distribute fifty grams or more of methamphetamine; possession with intent to distribute fifty grams or more of methamphetamine and violent crimes in aid of racketeering (VICAR) for conspiring to kill a rival Eight Trey Gangster Crip (ETGC). On May 5, 2021, Deandre Earp pled guilty to all charges.
According to court documents and other information presented in court, Earp, after being tased and assaulted by a rival gang member on Quarry Street in Raleigh in July 2019, attempted to retaliate by planning his murder with other ETGC associates. Earp and another co-defendant then got into a car and were driving to kill the rival gang member when the Raleigh Police Department initiated a traffic stop of a vehicle in which Earp was the passenger. Earp and his co-defendant both had loaded firearms with them in the car and were taken into custody, thereby preventing the potential murder of a rival Crip gang member. Earp’s arrest was based on electronic, physical, and documentary evidence. Earp was also responsible for conspiring to distribute more than 4.5 kilograms of methamphetamine into the Raleigh area.
For approximately two decades, ETGCs have operated in North Carolina, including in the North Carolina prison system. The ETGC, a wholly illegitimate criminal enterprise, has a reputation for a propensity for violence that includes several homicides, aggravated assaults and robberies. Members and associates of ETGC have been involved in numerous violent crimes that have resulted in the loss of life, decrease in quality of life, and damage to societal norms in and around the City of Raleigh. The ETGCs committed acts of violence to maintain membership and discipline, both within the gang and against non-gang members. The ETGCs are recognized as a national criminal street gang originating out of Los Angeles, California.
In his North Carolina leadership position, Earp was the second in command in the ETGC organization and directed members of his gang in selling methamphetamine in Raleigh. Earp was heavily involved in the day-to-day operations of the gang and discussed strategy, policy and decision-making with both the leader of North Carolina and ranking ETGC members in Los Angeles, California. Earp also trained less experienced ETGC members and associates on distribution of narcotics without being detected by law enforcement.
The prosecution of Earp was a part of an Organized Crime and Drug Enforcement Task Force Operation (OCDETF) targeting violent gang members and drug traffickers in Raleigh, North Carolina and Los Angeles, California. This investigation spanned into the Los Angeles, California area where kilogram quantities of illicit drugs were distributed into Raleigh, North Carolina utilizing a complex network of high-ranking ETGC’s from L.A. who have also been indicted in this case.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Raleigh Police Department led the investigation with assistance from the Federal Bureau of Investigation, Raleigh/Wake City-County Bureau of Identification and United States Marshals Service. Assistant U.S. Attorney Kelly L. Sandling prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-cr-00395-D-2.
Phoenix Man Sentenced to 25 Years for Armed Bank RobberyRead the Press Release
PHOENIX, Ariz. – Yesterday, Carlos Devon Lewis, 41, of Phoenix, Arizona, was sentenced by Senior U.S. District Judge David G. Campbell to 25 years in prison, followed by five years of supervised release. Lewis was convicted of three counts of Armed Bank Robbery.
In late 2019, Lewis and his co-conspirators robbed three area banks at gunpoint. In each robbery, Lewis, fully masked, jumped the bank teller counter, stole cash from teller drawers, and hopped back over the counter while his masked co-conspirator pointed a gun at bank employees and customers. Both then escaped in a getaway car. In total, Lewis and his co-conspirators stole more than $80,000.
The Federal Bureau of Investigation, Peoria Police Department, Surprise Police Department and the Phoenix Police Department conducted the investigation in the case. Assistant U.S. Attorneys Tracy Van Buskirk, Emma Mark, and Lindsay Short, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-20-00045-PHX-DGC
RELEASE NUMBER: 2022- 004_Lewis# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Philadelphia Woman Charged with Money Laundering and Stealing Federal Funds in Scheme Directed by Online-Dating ParamourRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Myrna Ortiz, 43, of Philadelphia, PA, was charged in a 32-count Indictment in connection with a conspiracy to steal and conceal the origin of fraudulently obtained Social Security benefits and COVID-19 PUA unemployment benefits. The Indictment charges Ortiz with one count of conspiracy to commit money laundering and 31 counts of theft of government funds. She made her initial appearance in federal court on these charges earlier today.
According to the Indictment, Ortiz met an individual through the online dating website ‘Match.com,’ and began a relationship via digital messaging. She is charged with helping her online paramour execute a scheme in which fraudulent claims were filed for Social Security Administration (SSA) Retirement benefits, using the personal identifiable information of individuals age 62 or older, the age at which taxpayers become eligible to begin collecting those benefits. The indictment charges that Ortiz participated by laundering the stolen money. Specifically, she is charged with opening ten bank accounts at the direction of her co-conspirator in order to receive the fraudulently issued government funds, and then withdrawing the funds, purchasing gift cards with the cash, and laundering the funds back to her co-conspirator through the gift cards. The scheme targeted high wage earners who are over the age of 62 but have not yet filed for SSA Retirement benefits on their own, and it impacted at least twenty-three victims.
Further, the Indictment alleges that the defendant helped steal money from the government specifically related to COVID-19 emergency relief funds or Pandemic Unemployment Assistance (“PUA”) funds. Using the same bank accounts to which the fraudulently obtained SSA funds were directed, Ortiz is also charged with depositing fraudulently obtained PUA funds in the names of various victims and laundering these illegal proceeds back to the same co-conspirator. This scheme involved deceiving the state workforce agencies of Pennsylvania, Illinois, Indiana, West Virginia, Arizona, and Ohio.
Through these schemes, Ortiz is alleged to have been involved in a conspiracy to defraud the government, and to launder the stolen government funds in an amount of almost $600,000.
“Social Security retirement benefits and pandemic unemployment assistance funds are intended to help Americans who have worked hard and now need some extra help making ends meet, either because they are now enjoying their well-deserved retirement or because the COVID-19 pandemic has dramatically impacted their ability to work and earn a living,” said U.S. Attorney Williams. “Thieves who attempt to take these funds are taking advantage of honest workers – ripping them off while also ripping off all taxpayers who fund these programs. As alleged, Ortiz fraudulently obtained nearly $600,000 in government funds, all at the behest of an individual she met through an online dating website.”
“An important part of the mission of the Office of Inspector General is to investigate allegations of fraud related to unemployment insurance programs. We will continue to work with the Pennsylvania Department of Labor and Industry and our law enforcement partners to investigate these types of allegations,” stated Syreeta Scott, Special Agent-in-Charge of the Philadelphia Region, U.S. Department of Labor Office of Inspector General.
The case was investigated by the United States Department of Labor Office of Inspector General and the Social Security Administration Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Megan Curran.
Omaha Railcar Cleaning Company and its Owners Sentenced for Violating Environmental and Worker Safety Laws Resulting in Workers’ 2015 DeathsRead the Press Release
Steven Michael Braithwaite, Adam Thomas Braithwaite and their company Nebraska Railcar Cleaning Services LLC (NRCS) were sentenced today in Omaha, Nebraska, for willful violations of worker safety standards that resulted in two worker deaths, knowing violations of the Resource Conservation and Recovery Act (RCRA) involving hazardous waste and knowing endangerment to others, knowing submission of false documents to the Occupational Safety and Health Administration (OSHA) and perjury. Steven Braithwaite will serve 30 months in prison and pay $100,000 in restitution for his role in the offenses. Adam Braithwaite will serve one year and one day in prison and pay $100,000 in restitution. In addition, NRCS and the individual defendants must serve five years of probation and pay a $21,000 fine.
According to court documents, on April 14, 2015, NRCS workers were inside and on top of a rail tanker car, removing petroleum residue from inside the tank, when flammable gases in the tanker car ignited and exploded. Two workers died and another was injured in the blast. NRCS took the job after receiving an inquiry from one of its customers in January 2015. The inquiry included a Safety Data Sheet (SDS) for the product in the railcar, describing it as “natural gasoline” with a “severe” class four flammability rating (the highest rating). The SDS went on to indicate that the natural gasoline would ignite at zero degrees Fahrenheit and that it contained benzene, a “cancer hazard.”
Despite no test for benzene and an unacceptably high explosive gas level test at the beginning of the job, NRCS sent two of its employees into the tanker car. The employees began removing the toxic, ignitable residue, with a third employee helping from outside. The third employee pulled bucket loads of waste up through the top hatch and dumped them into a regular dumpster to be taken to a municipal landfill, even though the residue was hazardous waste. Approximately one hour after the cleaning began, a spark caused the deadly explosion.
Steven Braithwaite was the president and majority owner of NRCS and was responsible for all phases of the business, including both environmental and worker safety issues. Adam Braithwaite was the vice president and a minority owner of NRCS. He too handled both environmental and worker safety issues.
As the defendants admitted in their plea agreements, prior to the explosion, OSHA officials conducted regulatory inspections of NRCS, and cited NRCS and its principals for violating OSHA safety regulations concerning confined space entries. Rail tanker cars are “confined spaces” under the Occupational Safety and Health Act. Confined spaces are dangerous because they may be filled with toxic, explosive, or unbreathable gases, among other reasons. After an inspection of NRCS, Steven Braithwaite entered into a Feb. 5, 2015, written agreement in which he represented that NRCS had been testing for benzene since July 2014. That was a lie. OSHA returned to NRCS in March 2015 to conduct a follow-up inspection, but Steven Braithwaite turned away the inspectors. Afterwards, Adam Braithwaite submitted falsified documents to OSHA purporting to show that NRCS had been purchasing equipment to test the contents of railcars for benzene and had taken other required safety precautions. NRCS had not been taking those steps. Adam Braithwaite also falsely testified under oath in an OSHA hearing that NRCS had been purchasing the benzene testing equipment.
Although they knew what was required, the defendants failed to implement worker safety standards, mishandled hazardous wastes violating the RCRA and knowingly submitted false documents to OSHA during inspections as a cover up. Their decisions led to the deaths of two of their workers. On July 12, Steven Braithwaite pleaded guilty to counts 2-4 of the indictment. Adam Braithwaite pleaded guilty to counts 2-3, 8-9 and 22. NRCS pleaded guilty to counts 1-21.
“Every worker, including every worker doing a dangerous job, has a right to a safe workplace,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Tragically, two workers suffered preventable deaths at Nebraska Railcar Cleaning Services because of the defendants’ failure to follow the law. Today’s sentences provide a measure of justice for them and their families.”
“Violations of worker safety and environmental standards are sometimes belittled as merely regulatory crimes, but this case demonstrates how much those regulations do matter,” said U.S. Attorney Jan W. Sharp of the District of Nebraska. “If the defendants had followed regulations they were well aware of, no one would have been inside a rail tanker with toxic gases at explosive concentrations. If they had followed regulations, buckets of hazardous waste would not have been dumped in regular dumpsters. If they had followed regulations, two men would have gone home at the end of their workdays.”
“The defendants’ decision to ignore environmental and worker safety regulations led to the tragic death of two workers,” said Acting Assistant Administrator Larry Starfield for the Environmental Protection Agency (EPA)’s Office of Enforcement and Compliance Assurance. “Today’s sentencings send a clear message that individuals who intentionally violate these laws will be held responsible for their crimes.”
“Steven and Adam Braithwaite disregarded OSHA regulations, ignored safety protocols, and provided false information to OSHA, which resulted in the tragic loss of two lives,” said Special Agent-in-Charge Steven Grell of the Department of Labor’s Office of Inspector General Dallas Region, which includes Nebraska. “We will continue to work with OSHA and our law enforcement partners to hold accountable those who obstruct Department of Labor agencies from fulfilling their missions.”
“Steven and Adam Braithwaite chose to protect themselves by providing false documentation to OSHA after the death of two employees, making it appear they had followed safety requirements, but in fact, willfully ignored warnings indicating a risk of explosion and sent these two men into a deadly situation,” said Regional Solicitor Christine Heri of the U.S. Department of Labor- Chicago. “The Department of Labor is committed to bring justice to the families of these workers and to hold employers responsible to their legal obligation to protect workers on the job.”
The case was investigated by the EPA’s Criminal Investigation Division and the Department of Labor’s Office of Inspector General. Senior Counsel Krishna S. Dighe of the Department of Justice, Environmental Crimes Section and Assistant U.S. Attorney Donald J. Kleine of the District of Nebraska are prosecuting the case.
Omaha Railcar Cleaning Company and its Owners Sentenced for Violating Environmental and Worker Safety Laws Resulting in Workers’ 2015 DeathsRead the Press Release
Steven Michael Braithwaite, Adam Thomas Braithwaite and their company Nebraska Railcar Cleaning Services LLC (NRCS) were sentenced today in Omaha, Nebraska, for willful violations of worker safety standards that resulted in two worker deaths, knowing violations of the Resource Conservation and Recovery Act (RCRA) involving hazardous waste and knowing endangerment to others, knowing submission of false documents to the Occupational Safety and Health Administration (OSHA) and perjury. Steven Braithwaite will serve 30 months in prison and pay $100,000 in restitution for his role in the offenses. Adam Braithwaite will serve one year and one day in prison and pay $100,000 in restitution. In addition, NRCS and the individual defendants must serve five years of probation and pay a $21,000 fine.
According to court documents, on April 14, 2015, NRCS workers were inside and on top of a rail tanker car, removing petroleum residue from inside the tank, when flammable gases in the tanker car ignited and exploded. Two workers died and another was injured in the blast. NRCS took the job after receiving an inquiry from one of its customers in January 2015. The inquiry included a Safety Data Sheet (SDS) for the product in the railcar, describing it as “natural gasoline” with a “severe” class four flammability rating (the highest rating). The SDS went on to indicate that the natural gasoline would ignite at zero degrees Fahrenheit and that it contained benzene, a “cancer hazard.”
Despite no test for benzene and an unacceptably high explosive gas level test at the beginning of the job, NRCS sent two of its employees into the tanker car. The employees began removing the toxic, ignitable residue, with a third employee helping from outside. The third employee pulled bucket loads of waste up through the top hatch and dumped them into a regular dumpster to be taken to a municipal landfill, even though the residue was hazardous waste. Approximately one hour after the cleaning began, a spark caused the deadly explosion.
Steven Braithwaite was the president and majority owner of NRCS and was responsible for all phases of the business, including both environmental and worker safety issues. Adam Braithwaite was the vice president and a minority owner of NRCS. He too handled both environmental and worker safety issues.
As the defendants admitted in their plea agreements, prior to the explosion, OSHA officials conducted regulatory inspections of NRCS, and cited NRCS and its principals for violating OSHA safety regulations concerning confined space entries. Rail tanker cars are “confined spaces” under the Occupational Safety and Health Act. Confined spaces are dangerous because they may be filled with toxic, explosive, or unbreathable gases, among other reasons. After an inspection of NRCS, Steven Braithwaite entered into a Feb. 5, 2015, written agreement in which he represented that NRCS had been testing for benzene since July 2014. That was a lie. OSHA returned to NRCS in March 2015 to conduct a follow-up inspection, but Steven Braithwaite turned away the inspectors. Afterwards, Adam Braithwaite submitted falsified documents to OSHA purporting to show that NRCS had been purchasing equipment to test the contents of railcars for benzene and had taken other required safety precautions. NRCS had not been taking those steps. Adam Braithwaite also falsely testified under oath in an OSHA hearing that NRCS had been purchasing the benzene testing equipment.
Although they knew what was required, the defendants failed to implement worker safety standards, mishandled hazardous wastes violating the RCRA, and knowingly submitted false documents to OSHA during inspections as a cover up. Their decisions led to the deaths of two of their workers. On July 12, Steven Braithwaite pleaded guilty to counts 2-4 of the indictment. Adam Braithwaite pleaded guilty to counts 2-3, 8-9, 22. NRCS pleaded guilty to counts 1-21.
“Every worker, including every worker doing a dangerous job, has a right to a safe workplace,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Tragically, two workers suffered preventable deaths at Nebraska Railcar Cleaning Services because of the defendants’ failure to follow the law. Today’s sentences provide a measure of justice for them and their families.”
“Violations of worker safety and environmental standards are sometimes belittled as merely regulatory crimes, but this case demonstrates how much those regulations do matter,” said U.S. Attorney Jan W. Sharp of the District of Nebraska. “If the defendants had followed regulations they were well aware of, no one would have been inside a rail tanker with toxic gases at explosive concentrations. If they had followed regulations, buckets of hazardous waste would not have been dumped in regular dumpsters. If they had followed regulations, two men would have gone home at the end of their workdays.”
“The defendants’ decision to ignore environmental and worker safety regulations led to the tragic death of two workers,” said Acting Assistant Administrator Larry Starfield for the Environmental Protection Agency (EPA)’s Office of Enforcement and Compliance Assurance. “Today’s sentencings send a clear message that individuals who intentionally violate these laws will be held responsible for their crimes.”
“Steven and Adam Braithwaite disregarded Occupational Safety and Health Administration (OSHA) regulations, ignored safety protocols, and provided false information to OSHA, which resulted in the tragic loss of two lives,” said Special Agent-in-Charge Steven Grell of the Department of Labor’s Office of Inspector General Dallas Region, which includes Nebraska. “We will continue to work with OSHA and our law enforcement partners to hold accountable those who obstruct Department of Labor agencies from fulfilling their missions.”
“Steven and Adam Braithwaite chose to protect themselves by providing false documentation to OSHA after the death of two employees, making it appear they had followed safety requirements, but in fact, willfully ignored warnings indicating a risk of explosion and sent these two men into a deadly situation,” said Regional Solicitor Christine Heri of the U.S. Department of Labor- Chicago. “The Department of Labor is committed to bring justice to the families of these workers and to hold employers responsible to their legal obligation to protect workers on the job.”
The case was investigated by the EPA’s Criminal Investigation Division and the Department of Labor’s Office of Inspector General. Senior Counsel Krishna S. Dighe of the Department of Justice, Environmental Crimes Section and Assistant U.S. Attorney Donald J. Kleine of the District of Nebraska are prosecuting the case.
Omaha Man Sentenced to 96 Months for Receipt of Child PornographyRead the Press Release
United States Attorney Jan Sharp announced that John Dethlefs, age 54, of Omaha, Nebraska, was sentenced today in federal court in Omaha for receipt of child pornography. United States District Judge Brian C. Buescher sentenced Dethlefs to 96 months of imprisonment. There is no parole in the federal system. After completing his term of imprisonment, Dethlefs will begin a 10-year term of supervised release. Dethlefs was also ordered to pay $12,000 in restitution and a $5,000 special assessment.
On February 24, 2019, Dethlefs uploaded an image of child pornography to Microsoft Bing’s search function. Dethlefs was trying to locate child pornography on the internet. On August 13, 2019, officers executed a search warrant at Dethlefs’s Omaha residence. Officers obtained Dethlefs’s computer which contained about 1,900 images of child pornography. The child pornography included children ages 2 to 16-years-old. Five of the images included bondage and one image included bestiality. Dethlefs admitted to possessing child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Omaha Police Department and the Federal Bureau of Investigation.
Nine Members of Newark Drug Trafficking Ring Charged in Superseding IndictmentRead the Press Release
NEWARK, N.J. – Nine members of a drug trafficking organization were charged today in a superseding indictment for their roles in a heroin, fentanyl, and crack cocaine distribution scheme that sold hundreds of thousands of dollars’ worth of illegal drugs out of a residential building on Fairmount Avenue in Newark, U.S. Attorney Philip R. Sellinger announced.
The 34-count superseding indictment charges all defendants with conspiracy to distribute one kilogram or more of heroin, 400 grams or more of fentanyl, and 280 grams or more of crack from July 2020 through June 2021. All defendants are charged with at least one count of distribution and possession with the intent to distribute controlled substances from purchases recorded by the FBI and from drug transactions observed by local law enforcement. The defendants were originally charged by complaint and arrested on June 29, 2021. Seven of the defendants have been detained since June. (See chart below)
Three of the defendants – Kasim Thurston, Jamar Hall, and Angel Kearney – are charged with firearms violations for possessing firearms and ammunition while having been previously convicted of a felony offense. Hall and Kearney were also charged with possessing a firearm in furtherance of a drug trafficking crime.
Three other members of the drug organization have previously entered guilty pleas. Elijah Shumate, 50, of Newark, pleaded guilty before U.S. District Judge Brian R. Martinotti on Jan. 13, 2022, to conspiracy to distribute 100 grams or more of heroin. Andre Fuller, 31, of Caldwell, New Jersey, pleaded guilty before Judge Martinotti on Jan. 10, 2022, to conspiracy to distribute 100 grams or more of heroin. Antwan Williams, 30, of Newark, pleaded guilty before Judge Martinotti on Dec. 9, 2021, to conspiracy to distribute one kilogram or more of heroin.
According to documents filed in this case and statements made in court:
The defendants allegedly took advantage of the residential building’s location to sell drugs from the porch area, which was guarded by a locked steel door and difficult for law enforcement to infiltrate despite a constant stream of buyers approaching the front porch area day and night. Defendants stored drugs and guns in apartments that they controlled.
The defendants worked in shifts from 6:00 a.m. until late in the evening. Buyers came on foot, in vehicles and on bicycles to purchase the illegal drugs. The heroin sold was of a high quality and was sold in various “brands,” which were stamped onto the glassine envelopes that contained the heroin and fentanyl, allowing buyers to identify and purchase the brands that they preferred. FBI surveillance and local law enforcement witnessed hundreds of narcotics transactions from July 2020 through June 2021.
The count of conspiracy to distribute one kilogram or more of heroin, 400 grams or more of fentanyl, and 280 grams or more of crack cocaine carries a minimum sentence of 10 years in prison, a maximum of life in prison and a maximum fine of $10 million. The charges of distribution and possession with the intent to distribute heroin, fentanyl and crack cocaine carry a maximum sentence of 10 years in prison and a maximum fine of $1 million; the charge of possession of a firearm by a convicted felon carries a maximum penalty of 10 years in prison and a maximum fine of $250,000; and the charge of possession of a firearm in furtherance of a drug trafficking crime carries a minimum sentence of five years in prison, a maximum sentence of life in prison, and a maximum fine of $250,000.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to the charges and guilty pleas. He also thanked police officers and detectives of the Newark Police Department, officers of the Essex County Sheriff’s Office, detectives of the Essex County Prosecutor’s Office, officers of the East Orange and Bloomfield police departments, and the Essex County Department of Corrections for their assistance with the investigation.
Three other organization members are charged by complaint and their cases are pending. The charges and allegations contained in the complaint and superseding indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The government is represented by Senior Trial Counsel Robert Frazer of the Organized
Crime/Gangs Unit in the Criminal Division in Newark.
*denotes free on bail
Defendant
Age
Residence
Charge
Counts
Angel Kearney, aka “Jim,” aka “Dred”
31
East Orange, New Jersey
Conspiracy to distribute heroin, fentanyl and crack cocaine; distribution and possession with intent to distribute heroin, fentanyl and crack cocaine; possession of a firearm by a convicted felon; possession of a firearm in furtherance of a drug trafficking crime
1, 21, 26, 27, 29, 30, 31 and 32
Thomas Gibson, aka “Tommy,”
44
Newark
Conspiracy to distribute heroin, fentanyl and crack cocaine; distribution and possession with intent to distribute heroin, fentanyl and crack cocaine;
1, 6, 13, 18, 19, 20 and 34
Jamar Hall, aka “Goo”
35
Hamilton, New Jersey
Conspiracy to distribute heroin, fentanyl and crack cocaine; distribution and possession with intent to distribute heroin, fentanyl and crack cocaine; possession of a firearm by a convicted felon; possession of a firearm in furtherance of a drug trafficking crime
1, 21, 22, 23,and 25
Kasim Thurston, aka “Kai,” aka “Kaz”
37
Newark
Conspiracy to distribute heroin, fentanyl and crack cocaine; distribution and possession with intent to distribute heroin, fentanyl and crack cocaine possession of a firearm by a convicted felon; possession of a firearm in furtherance of a drug trafficking crime
1, 12, 15, 17 and 33
Ibn Thurston, aka “Wheezy,” aka “Saheed”
33
Newark
Conspiracy to distribute heroin, fentanyl, and crack cocaine; distribution and possession with intent to distribute heroin, fentanyl and crack cocaine
1 and 7
*Kevin Hall
31
Newark
Conspiracy to distribute heroin, fentanyl, and crack cocaine; distribution and possession with intent to distribute heroin, fentanyl and crack cocaine
1, 3, 8, 24, and 28
Akim Gibson, aka “Ching”
24
Newark
Conspiracy to distribute heroin, fentanyl and crack cocaine; distribution and possession with intent to distribute heroin, fentanyl and crack cocaine
1, 11, 12, and 14
*Shalamar McCall, aka “Shaggy”
34
Newark
Conspiracy to distribute heroin, fentanyl, and crack cocaine; distribution and possession with intent to distribute heroin, fentanyl and crack cocaine
1, 9, and 10
Hakis Moses, aka “Hak”
43
Newark
Conspiracy to distribute heroin, fentanyl, and crack cocaine; distribution and possession with intent to distribute heroin, fentanyl and crack cocaine
1, 2, 4, and 5
New Haven Man Pleads Guilty to Federal Firearm Charge Related to Gun Trafficking SchemeRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, and James Ferguson, Special Agent in Charge, ATF Boston Field Division, today announced that QUINN MOORING, 40, of New Haven, pleaded guilty yesterday via videoconference before U.S. District Judge Stefan R. Underhill to unlawful possession of a firearm by a felon.
According to court documents and statements made in court, in March 2021, ATF Task Force officers learned that Mooring was receiving firearms from a source in South Carolina and selling them in Connecticut. On April 19, 2021, investigators made a controlled purchase of a 9mm Glock handgun and a drum magazine from Mooring and a co-conspirator in New Haven in exchange for $1,500. The firearm was one of five 9mm handguns that had been purchased by an individual at a pawn shop in Port Royal, South Carolina, in the month prior to the transaction in Connecticut.
On April 22, 2021, investigators made a controlled purchase of 9mm ammunition from Mooring in New Haven.
Mooring’s criminal history includes state convictions for felony robbery, unlawful restraint and failure to appear offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Mooring was arrested on a federal criminal complaint on June 14, 2021.
The offense carries a maximum term of imprisonment of 10 years. Mooring is released on a $50,000 bond pending sentencing, which is not scheduled.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), West Haven Police Department and New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Konstantin Lantsman.
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.
Multi-Count Federal Indictment Returned for Labor Trafficking ViolationsRead the Press Release
COLUMBIA, SOUTH CAROLINA — United States Attorney Corey F. Ellis announced today that a federal grand jury in Columbia returned a multi-count indictment in connection with trafficking in seasonal agricultural workers.
Elizabeth Balcazar, 19, Enrique Balcazar, 35 – both of Batesburg – and Balcazar Nature Harvesting, LLC have been charged with conspiracy to commit labor trafficking and fraud in foreign labor contracting. Elizabeth Balcazar and Enrique Balcazar have also been charged with the confiscation of passports and immigration documents in connection with labor trafficking. Enrique Balcazar has also been charged with two counts of labor trafficking.
“Our nation’s visa system is an asset that provides much-needed resources to our communities and valuable opportunities to those foreign workers seeking a new life here in the United States,” said U.S. Attorney Ellis. “Although the indictment speaks for itself, those who exploit the system and abuse these vulnerable workers will find no refuge here in South Carolina. Our office will utilize all available resources to bring such offenders to justice while rescuing and restoring victims in the process. Sadly, we know that many labor trafficking victims, both foreign and domestic, suffer here in the United States and that such violations frequently go undetected.”
“By targeting employers who exploit their workers, HSI is protecting the American labor market, the conditions of workplaces, and the dignity of the individual employees,” said Special Agent In Charge Ronnie Martinez, who oversees Homeland Security Investigations (HSI) operations in North Carolina and South Carolina. “We hope that cases like this will encourage other victims and witnesses to come forward to HSI to enable us to stop other employers from engaging in any similar conduct.”
“Labor trafficking and exploitation is real, and it is happening in South Carolina,” said South Carolina Law Enforcement Division (SLED) chief Mark Keel. “Agents have and will continue to work in collaboration with our local and federal partners to rescue those being victimized and bring justice to those who profit from the misery of others.”
The indictment alleges that Elizabeth Balcazar and Enrique Balcazar operated Balcazar Nature Harvesting, LLC, which provided seasonal harvesting labor to South Carolina area farms. The indictment further alleges that the defendants forced victims to work excessive hours, failed to pay the victims their due wages, and threatened deportation for those who did not work hard enough or produce enough. The indictment also alleges that the defendants attempted to restrain the victims by confiscating their passports and by carrying, brandishing, and discharging a firearm. The indictment also indicates there are multiple victims.
Elizabeth Balcazar and Enrique Balcazar face a maximum penalty of 20 years in prison, plus court ordered supervision to follow, and each of the defendants face a fine of up to $250,000. Elizabeth Balcazar and Enrique Balcazar are currently detained pending trial.
The case was investigated by U.S. Department of Homeland Security, HSI, SLED, and U.S. Department of Labor. Assistant U.S. Attorneys Elliott B. Daniels and Carrie Fisher Sherard are prosecuting the case.
All charges in the indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
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Matthew Morgan, Ruebin Beard Imprisoned for Bank LarcenyRead the Press Release
The United States Attorney for the District of Vermont announced that Matthew Morgan, 52, and Ruebin Beard, 52, both of Burlington, have been sentenced in United States District Court in Burlington following their guilty pleas to a charge of bank larceny. Today, U.S. District Judge Christina Reiss sentenced Beard to 14 months of imprisonment to be followed by three years of supervised release. This past November, Judge Reiss sentenced Morgan to 20 months of imprisonment, followed by three years of supervised release. The court ordered both defendants to pay restitution totaling $27,300 and that Morgan forfeit a Jeep vehicle. Both defendants are currently incarcerated.
In March 2021, a federal grand jury in Burlington returned a two-count superseding indictment charging Morgan and Beard with conspiracy and with stealing money and property worth more than $1000 from Citizens Bank, a federally-insured financial institution. The charges stem from the theft of an ATM machine from the UVM campus in September 2020. At the time of the theft, the ATM machine contained about $23,000 in cash. The indictment also sought to forfeit a 2011 Jeep Patriot automobile, which Morgan bought with proceeds of the ATM theft. Both defendants pleaded guilty to the bank larceny count.
This case was investigated by the University of Vermont Police Department and the Federal Bureau of Investigation.
Morgan is represented by Assistant Federal Defender Stephen Barth, and Beard by Lisa Shelkrot. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Massachusetts Man Sentenced for Unlawfully Possessing a FirearmRead the Press Release
BANGOR, Maine: A Massachusetts man was sentenced today in federal court for being a felon in possession of a firearm, U.S. Attorney Darcie N. McElwee announced.
U.S. District Judge John A. Woodcock, Jr., sentenced Terrence Ware, Jr., 28, of Springfield, Massachusetts, to a time served sentence of 15 months imprisonment to be followed by three years of supervised release. Ware pleaded guilty on May 19, 2021.
According to court records, Ware was convicted in 2019 of felony domestic violence offenses in Massachusetts. These convictions prohibited Ware from possessing firearms under federal law. On three separate occasions in June 2020, Ware possessed and shot firearms at gun range in Holden, Maine.
“The presence of a firearm in domestic violence situations significantly increases the risk of lethality,” said U.S. Attorney McElwee. “Prosecution of domestic abusers who illegally possess firearms is a priority of the U.S. Attorney’s Office and ATF in Maine.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The prosecution is part of the Department of Justice’s Project Safe Neighborhoods (PSN) initiative. PSN is a nationwide initiative that brings together federal, state, local and tribal law enforcement officials, prosecutors, community leaders and other stakeholders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. PSN is coordinated by the U.S. Attorneys’ Offices in the 94 federal judicial districts throughout the 50 states and U.S. territories. PSN is customized to account for local violent crime problems and resources. Across all districts, PSN follows four key design elements of successful violent crime reduction initiatives: community engagement, prevention and intervention, focused and strategic enforcement, and accountability.
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Massachusetts Man Sentenced for Being a Felon in Possession of a FirearmRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on January 11, 2022, Tahj McCormick, 25, of Springfield, Massachusetts, was sentenced in United States District Court in Burlington, Vermont, to serve 60 months in prison after his guilty plea to one count of being a previously convicted felon found in possession of a firearm. U.S. District Judge Christina Reiss also ordered McCormick to serve a three (3) year term of supervised release and to pay a $100 special assessment.
According to court records and proceedings, on February 19, 2021, McCormick met with an undercover special agent from the Bureau of Alcohol, Tobacco, Firearms & Explosives so McCormick could buy two guns from the undercover special agent. McCormick paid $700 for the two guns at the meeting, and was taken into custody when he took possession of them. When McCormick was searched incident to arrest, law enforcement discovered him to be in possession of another handgun. At the time of his arrest, McCormick had previously been convicted of a crime punishable by a term of imprisonment of greater than one year.
U.S. Attorney Nikolas P. Kerest commended the efforts of the Bureau of Alcohol, Tobacco, Firearms & Explosives in the investigation and prosecution of McCormick. U.S. Attorney Kerest also thanked the Vermont State Police, the Springfield, Massachusetts Police Department, the Holyoke, Massachusetts Police Department, and the Easthampton, Massachusetts Police Department, for their contributions to the investigation.
Assistant U.S. Attorney Barbara A. Masterson handled the prosecution of McCormick. Federal Public Defender Michael L. Desautels represented McCormick.
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. https://www.justice.gov/psn
Man Sentenced for Meth and Firearm PossessionRead the Press Release
United States Attorney Jan Sharp announced that Oscar Garfio-Zapien, 29, a citizen of Mexico, was sentenced today in Lincoln, Nebraska, by United States District Judge John M. Gerrard to more than 12 years in prison for possession of methamphetamine, with intent to distribute and another 5 years for possessing a firearm in furtherance of drug trafficking. Garfio-Zapien will be required to serve 5 years of supervision upon his release. There is no parole in the federal system.
On or about November 5, 2020, Garfio-Zapien was stopped in Hamilton County by a Nebraska State Patrolman for speeding along Interstate 80. Garfio-Zapien consented to a search of his rental vehicle. During the search, the trooper found a suitcase in the rear cargo area of the rental containing 13 packages of methamphetamine. In the center console, the trooper found a loaded Springfield XD 9 mm handgun. In a backpack located on the front passenger seat within reach of defendant, the trooper found eight packages of methamphetamine weighing approximately 1.5 pounds in total, a loaded Smith & Wesson .38 caliber revolver, and 33 rounds of .380 ammunition. The total weight of all the methamphetamine in the car was about 14.5 pounds.
This case was investigated by the Nebraska State Patrol and the Central Nebraska Drug and Safe Streets Task Force.
Loan Servicer Agrees to Pay Nearly $8 Million to Resolve Alleged False Claims in Connection with Federal Education LoansRead the Press Release
Conduent Education Services LLC, fka Xerox Education Services LLC, dba ACS Education Services LLC (CES), a contractor that serviced student loans for lenders under the Federal Family Education Loan Program (FFEL), has agreed to pay $7.9 million to resolve allegations that it violated the False Claims Act by submitting or causing the submission of false claims to the Department of Education. Prior to this settlement, CES paid $1.4 million to the Department of Education under a remediation plan to partially resolve the allegations and received a credit for that payment under the settlement agreement.
Loan servicers are required to accurately report the impact of monthly student loan repayments, principal capitalization and other changes to borrower accounts to the Department of Education. The settlement announced today resolves allegations that between 2006 and 2016, CES knowingly failed to make required financial adjustments to borrower accounts and improperly treated some borrowers as eligible for military deferments when they were not, resulting in incorrect reporting to the Department of Education and losses to the United States. CES stopped servicing commercially held federal student loans in September 2019.
“The United States expects servicers participating in federal loan programs to accurately report amounts owed to the Department of Education,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The resolution announced today reflects the department’s commitment to pursuing entities that fail to meet their obligations to the United States.”
“Holding loan servicers accountable is a top priority for the Biden-Harris Administration, so I am pleased that improper conduct at Conduent Education Services got the oversight and investigation it deserved,” said Under Secretary of Education James Kvaal. “We are grateful to the Department of Justice for working with the Education Department to ensure that CES is held accountable to borrowers and taxpayers.”
The resolution in this matter was the result of an investigation by the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, with the assistance of the Department of Education’s offices of Federal Student Aid and General Counsel.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Lafayette Man Sentenced for Conspiring to Stage Automobile AccidentsRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that RYAN WHEATEN (“WHEATEN”), age 54, of Lafayette, Louisiana, was sentenced on January 12, 2022 for Conspiracy to Commit Mail Fraud, in violation of Title 18, United States Code, Section 371, arising out of staged automobile accidents with tractor-trailers occurring in New Orleans.
According to court documents, on May 17, 2017, WHEATEN, along with participants Damien Labeaud (“Labeaud”), Mario Solomon (“Solomon”), Henry Randle (“Randle”), and Dakota Diggs (“D. Diggs”), staged an automobile collision with a tractor-trailer in the vicinity of U.S. Highway 90 East and Calliope Street in New Orleans. Labeaud purposely drove the vehicle into a tractor-trailer and then fled the scene with Solomon. Randle falsely reported to the New Orleans Police Department that he had been driving and that the tractor-trailer was at fault. Shortly thereafter, Labeaud and Solomon went on to stage a second accident in the vicinity of Louisa Street and Chickasaw Street with Bernell Gale (“Gale”), Troy Smith (“Smith”), Marvel Francois (“Francois”), and another passenger. In addition to WHEATEN, Labeaud, Solomon, Gale, Smith, and Francois were also charged and pled guilty.
After the staged collision, WHEATEN, Randle, and D. Diggs made claims for personal injuries. The victim insurance companies paid out approximately $10,000.00 for these fraudulent claims.
U.S. District Court Judge Lance M. Africk sentenced WHEATEN to serve 10 months in prison, to be followed by 3 years of supervised release. WHEATEN was also ordered to pay restitution in the amount of $11,000. Judge Africk also imposed a $100 mandatory special assessment fee.
The U.S. Attorney’s Office would like to acknowledge the assistance of the Federal Bureau of Investigation and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Maria Carboni, Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit, Assistant U.S. Attorney Edward J. Rivera, and Assistant U.S. Attorney Brandon S. Long.
Kyle Man Indicted on Child Pornography ChargesRead the Press Release
United States Attorney Dennis R. Holmes announced that a Kyle, South Dakota, man has been indicted by a federal grand jury for Sexual Exploitation of Minors and Possession of Child Pornography.
Shayne Justin Begay, age 44, was indicted on December 21, 2021. He appeared before U.S. Magistrate Judge Daneta Wollmann on December 29, 2021, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is a mandatory minimum of 15 up to 30 years in federal prison and/or a $250,000 fine, lifetime supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Begay filming minor females while they showered at the Juvenile Detention Center in Kyle, South Dakota, where he was employed as a corrections officer. The charges are merely an accusation and Begay is presumed innocent until and unless proven guilty.
The investigation is a joint effort between the Federal Bureau of Investigation and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Begay was released on conditions pending trial. A trial date has been set for March 8, 2022.
Knightdale Man Sentenced to 37 Months for Possessing Firearms Not Registered in the National Firearms Registration and Transfer RecordRead the Press Release
RALEIGH, N.C. – A man from Knightdale was sentenced today to 37 months in prison and three years of supervised release. On October 1, 2021, Derek Alan Gower pled guilty to one count of receiving and possessing a firearm having a barrel of less than 16 inches in length which was not registered in the National Firearms Registration and Transfer Record.
According to court documents and other information presented in court, Gower, 41, had been purchasing chemicals and other items that could potentially be used in the manufacturing of explosives. Additionally, Gower researched and purchased items to make homemade suppressors and grenades.
On June 24, 2021, federal agents conducted a search of Gower’s residence in Knightdale which resulted in the seizure of 11 firearms, two of which were unregistered short- barreled assault rifles, grenade and grenade launcher part kits, kits to convert various weapons to be fully automatic, and precursor materials to make explosives.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by U.S. District Judge James C. Dever III.
The case was investigated by the Federal Bureau of Investigation, Joint Terrorism Task Force in Raleigh, North Carolina, and Assistant U.S. Attorney Gabriel J. Diaz prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.5:21CR-294-D.
Jury Convicts Columbia Man of Illegal Firearm Following Police ChaseRead the Press Release
JEFFERSON CITY, Mo. – A Columbia, Missouri, man has been convicted by a federal jury of illegally possessing the stolen firearm that he threw out of his car during a police chase.
Cecil Jason Robinson, 42, was found guilty on Thursday, Jan. 13, of being a felon in possession of a firearm. Robinson was in possession of a loaded Sig Sauer 9mm semi-automatic handgun with an extended magazine on Jan. 26, 2021.
ATF task force officers attempted a traffic stop of Robinson, who was driving a Chevrolet Silverado with a defective brake light on I-70 west between the St. Charles Road exit and the Highway 63 connector on Jan. 26, 2021. When the officers activated their emergency lights, Robinson’s vehicle exited I-70 onto the Highway 63 connector, where it immediately conducted an illegal U-turn, forcing oncoming traffic to stop. The vehicle entered the I-70 west entrance ramp, accelerating its speed, and a vehicle pursuit ensued.
Officers saw Robinson open the driver’s side door slightly and throw out the Sig Sauer handgun into the rocky area between the entrance ramp and I-70. Officers recovered the firearm, which had been reported stolen in Kansas City, Ks. Officers also saw Robinson throw out a baggie of marijuana near the 127.8 mile marker of I-70 west. The pursuit ended in the Columbia Mall parking lot and Robinson was taken into custody.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Robinson has two prior felony convictions for robbery, two prior felony convictions for unlawful use of a weapon, and a prior felony conviction for drug trafficking.
Following the presentation of evidence, the jury in the U.S. District Court in Jefferson City, Mo., returned the guilty verdict to U.S. District Judge Roseann Ketchmark, ending a trial that began Wednesday, Jan. 12.
Under federal statutes, Robinson is subject to a mandatory minimum sentence of 15 years in federal prison without parole. The sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Columbia, Mo., Police Department.
Project Safe Neighborhoods
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.
Jackson Man Sentenced to 5 Years in Prison for Possession with Intent to Distribute CocaineRead the Press Release
Jackson, Miss.- A Jackson man was sentenced to 5 years in federal prison for possession with intent to distribute crack cocaine, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.
According to court records, in January, 2020, Antonio Demond Doss, 27, purchased and distributed various quantities of cocaine, crack and marijuana from his do-defendant, Marcus Guice. Doss pled guilty on September 8, 2021, to possession with intent to distribute crack cocaine.
The case is the result of an extensive investigation, dubbed “Operation Hailstorm,” which began as an operation targeting illegal drug trafficking in the Jackson, Mississippi area.
Operation Hailstorm 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.
Inmate Sentenced for Possessing Weapon at FCI BeckleyRead the Press Release
BECKLEY, W.Va. - An inmate at the Federal Correctional Institution (FCI) at Beckley was sentenced today for possessing a weapon at the correctional facility. Deontae Holmes, 25, was sentenced to one year in prison to run consecutively to the sentence he currently is serving.
According to court documents, FCI Beckley staff members found Holmes in possession of a shank on February 22, 2021. The shank was a piece of metal approximately six inches long that was sharpened to a point on one end and had a rubberized tape handle on the other end. The shank was found in Holmes’ pants pocket during a random pat search. Holmes admitted that the shank was designed and intended to be used as a weapon.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Prisons.
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Timothy D. Boggess handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:21-cr-00151.
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Indiana Resident Sentenced to 13 Years of Imprisonment for Methamphetamine Distribution and Firearm PossessionRead the Press Release
United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on January 13, 2022, Dylan D. Cole (age: 22), of Anderson, Indiana, was sentenced for possessing with the intent to distribute over 50 grams of methamphetamine, in violation of Title 21, United States Code, Sections 841(a) and (b)(1)(B), and for possessing a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i).
According to court documents, in September of 2021 the Lake Winnebago Area Metropolitan Enforcement Group (LWAM) began investigating Cole for suspected distribution of methamphetamine. The investigation revealed that Cole was transporting methamphetamine from Indiana to the Fox Valley area. Investigators arranged for undercover purchases totaling over nine pounds of methamphetamine from Cole. During these transactions, Cole was armed with a semi-automatic handgun.
In pronouncing sentence, Senior U.S. District Judge William C. Griesbach noted the serious nature of Cole’s offense and the need to send a strong message of deterrence to Cole and anyone else who might attempt to distribute drugs in Northeast Wisconsin. The judge ordered Cole’s incarceration in federal prison for a term of 13 years to be followed by five years of supervised release. He was also ordered to forfeit $16,763 in illegal proceeds.
The case was investigated by LWAM. It was prosecuted by Assistant United States Attorney Alexander Duros.
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Georgia woman sentenced to federal prison for COVID-19 fraudRead the Press Release
AUGUSTA, GA: A Jefferson County, Ga., woman who admitted using false information to file for COVID-19 relief funding has been sentenced to federal prison.
Whitney Adwan Mack, 34, of Louisville, Ga., was sentenced to 48 months in prison after pleading guilty to one count of Wire Fraud, said David H. Estes, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge Dudley H. Bowen also ordered Mack to pay a fine of $5,000, and to serve three years of supervised release after completion of her prison term. There is no parole in the federal system.
“The substantial appropriations for businesses suffering from the COVID-19 pandemic assisted tremendous numbers of people in need of extra help for their small business,” said U.S. Attorney Estes. “Unfortunately, the lure of money also attracted con artists who attempted to enrich themselves by defrauding taxpayers during a national emergency, and they are being held accountable.”
In pleading guilty, Mack admitted she obtained COVID-19 Economic Injury Disaster Loans (EIDL) in July 2020 by making false statements about the number of individuals her company employed and the company’s gross revenue, and applied for the relief funding using a Social Security number that was not hers. After receiving a $150,000 EIDL, Mack withdrew much of the funds in cash and used part of the proceeds for a vacation in Miami.
“We are committed to bringing justice to criminals intent on stealing government funds,” said Steven Baisel, Special Agent in Charge, United States Secret Service. “This sentencing shows the commitment of my agency and our partners to pursue people who steal pandemic relief funds intended for those who need it most.”
“Mack stole critical funding earmarked for small businesses facing real economic hardships due to the pandemic and damaged the integrity of the Social Security number,” said Gail S. Ennis, Inspector General for the Social Security Administration. “I want to thank our law enforcement partners for their efforts in this investigation. I also thank the U.S. Attorney’s Office for bringing this individual to justice.”
The case was investigated by the U.S. Secret Service, the Social Security Administration Office of Inspector General, and the Small Business Administration Office of Inspector General, and prosecuted by Assistant U.S. Attorneys Patrick J. Schwedler and Jonathan A. Porter.
Fort Wayne Man Sentenced to 102 Months in PrisonRead the Press Release
FORT WAYNE – Richard Gordon, 40 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Judge Holly A. Brady after pleading guilty to being a felon in possession of a firearm and admitting to violating the terms of his supervised release on a prior felon in possession of a firearm conviction, announced United States Attorney Clifford D. Johnson.
Gordon was sentenced to 78 months in prison followed by 4 years of supervised release on the current conviction, and was given a consecutive 24 month term of imprisonment on the revocation of his supervised release from his prior conviction.
According to documents in the case, on May 5, 2021, Gordon was found in possession of a 9mm firearm after being involved in a traffic incident in Fort Wayne, Indiana. Gordon ran from Fort Wayne Police Department officers but was eventually apprehended and arrested. Gordon had two previous convictions from the Eastern District of Missouri for being a felon in possession of a firearm. Gordon admitted to removing his location monitoring equipment and leaving his residence without authorization while on supervised release.
This current case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Fort Wayne Police Department. This case was prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Fort Stewart Solider Faces Minimum 15 Years Imprisonment for Child Pornography ProductionRead the Press Release
VALDOSTA, Ga. – A solider stationed at Fort Stewart, Georgia, pleaded guilty to production of child pornography in a Project Safe Childhoods investigation involving a 13-year-old victim.
Aaron D. Sutherland, 28, of Fort Stewart, pleaded guilty to production of child pornography before U.S. District Judge Louis Sands on Jan. 13. Sutherland faces a mandatory minimum sentence of 15 years to a maximum 30 years in prison to be followed by at least five years up to a lifetime of supervised release and a $250,000 fine. In addition, Sutherland will have to register as a sex offender for life upon his release from federal prison. There is no parole. Sentencing has been scheduled for April 28.
“Parents must remain vigilant and monitor whom their children are communicating with on their cell phones and on social media because online predators are lurking,” said U.S. Attorney Peter D. Leary. “Our office—working alongside federal, state and local authorities—will pursue significant penalties for any adults who sexually entice, abuse or harm a minor.”
“Stopping predators that produce and distribute the disturbing images of children being exploited is of critical importance,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Unfortunately, we cannot protect all children by ourselves and need your help to monitor who your children interact with and report anything that doesn’t seem right.”
“This case is another example of the fruitful results that occur when we combine the resources of local, state and federal law enforcement partners to get predators off the street,” said Lowndes County Sheriff Ashley Paulk.
According to court documents, Sutherland admitted he began communicating with a 13-year-old female while he was on active duty for the U.S. Army at Fort Stewart, Georgia in Feb. 2021. Sutherland enticed the victim to send multiple nude images and videos of a sexual nature and asked to meet the child to engage in sexual activity. The minor victim’s mother discovered her child messaging an adult male in April 2021 after she observed her child acting strangely and confiscated her phone. In the messages, Sutherland stated the victim’s age. The mother reported the crime to authorities, and Sutherland was arrested on May 3, 2021. Sutherland provided law enforcement with his secret image vault where he saved all of the pictures and videos of the child.
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 the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Lowndes County Sheriff’s Office and Homeland Security Investigations.
Assistant U.S. Attorney Katelyn Semales and Criminal Chief Michael Solis are prosecuting the case.
Former White House Advisor Pleads Guilty to Devising A Scheme to Steal $218,000 from Charter Schools He FoundedRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that SETH ANDREW pled guilty today to wire fraud, before United States District Judge John P. Cronan, in Manhattan federal court.
U.S. Attorney Damian Williams said: “Seth Andrew, a former White House advisor, admitted today to devising a scheme to steal from the very same schools he helped create. Andrew now faces time in federal prison for abusing his position and robbing those he promised to help.”
According to previous filings in this case:
In 2005, SETH ANDREW helped create “School Network-1,” a series of public charter schools then based in New York City. In the Spring of 2013, ANDREW left School Network-1 and accepted a job in the United States Department of Education and, thereafter, as a senior advisor in the Office of Educational Technology at the White House. In November 2016, ANDREW left his role in the White House and, shortly thereafter, in January 2017, ANDREW officially severed his relationship with School Network-1.
School Network-1’s New York based charter schools must maintain an “escrow account” that may be accessed only if the school dissolves. Three such escrow accounts, for three New York City based-School Network-1 schools, were opened by ANDREW and other School Network-1 employees, at “Bank-1” in 2009, 2011 and 2013. As to each of those three accounts ‑- Escrow Account-1, Escrow Account-2 and Escrow Account-3 -- ANDREW was a signatory and had access to the funds in them. However, pursuant to the charter agreement, the funds in the Escrow Accounts were reserved in case the school dissolved, and the funds could not be moved by ANDREW, or anyone, without proper authorization.
After he severed his relationship with School Network-1, on March 28, 2019, ANDREW entered a Bank-1 branch in New York City and closed both Escrow Account-1 and Escrow Account-2. Bank-1 provided ANDREW a bank check in the amount of $71,881.23 made payable to “[School Network-1] Charter School” (“Check-1”) and a second bank check in the amount of $70,642.98 to “[School Network-1] Harlem Charter” (“Check-2”).
The same day that ANDREW closed Escrow Account-1 and Escrow Account-2, ANDREW entered a Manhattan branch of a different FDIC insured bank (“Bank-2”) and opened a business bank account in the name of “[School Network-1] Charter School” (“Fraud Account‑1”). To open that account, ANDREW misrepresented to a Bank-2 employee that he was a “Key Executive with Control of” School Network-1 Charter School and supported that misrepresentation with emails sent to the Bank-2 employee. ANDREW then deposited Check-1 into the account. Five days later, on April 2, 2019, ANDREW used an ATM machine in Baltimore, Maryland to deposit Check-2 into Fraud Account‑1.
On October 17, 2019, ANDREW closed out Escrow Account-3 and received a check (“Check-3”) made payable to “[School Network-1] Endurance” in the amount of $75,481.10. On October 21, 2019, ANDREW deposited Check-3 into an account that he opened at a third bank (“Fraud Account-2”).
Approximately one month later, ANDREW obtained a check from Bank-2 for $144,473.29, which constituted the funds stolen from Escrow Account-1 and Escrow Account-2, and ANDREW ultimately deposited those funds into Fraud Account-2. Five days later, ANDREW rolled the funds in Fraud Account-2 into a certificate of deposit. That certificate of deposit matured on May 20, 2020, which earned ANDREW $2,083.52 in interest. ANDREW then transferred the funds from the certificate of deposit -- including the funds stolen from the Escrow Accounts -- into a bank account held in the name of a particular civic organization that ANDREW then-controlled thereby concealing the money’s association with School Network-1, and depositing the stolen money into an account under Andrew’s complete control.
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ANDREW, 42, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison. ANDREW has agreed to pay restitution to the Charter School Network from which he stole. ANDREW is scheduled to be sentenced before Judge Cronan on April 14, 2022.
Mr. Williams praised the outstanding investigative work of the FBI.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Ryan B. Finkel is in charge of the prosecution.
Former Treasurer of Perry County Agricultural Society Pleads Guilty to FraudRead the Press Release
Benton, Ill. – This morning, in federal court in Benton, Illinois, Billy E. Harris, the former treasurer of the Perry County Agricultural Society (“PCAS”), pled guilty to defrauding the PCAS out of more than $100,000.
The PCAS operates all of the festivals at the Perry County Fairgrounds in Pinckneyville, including the Perry County Fair. Harris, 48, currently of St. Louis, MO, served as the treasurer of the PCAS from 2011 through October 2018. When he appeared in court this morning, Harris admitted that from June 5, 2012 through October 3, 2018, he defrauded the PCAS out of more than $100,000. Specifically, Harris acknowledged that he paid his personal expenses, and purchased items for his personal use, with electronic debits from the PCAS bank account. Many of those items were purchased through Amazon. Some of the items that Harris admitted purchasing with PCAS funds include a WiFi router, Apple AirPods, a Himalyan Salt Lamp Air Purifier, Star Wars Darth Vader and Yoda personalized pet tags, a pair of Star Wars men’s sleep pants, a floating pool fountain, a CPAP tube cleaning brush, and men’s grooming products, including beard lube. Harris also admitted writing checks on the PCAS account payable to himself and his spouse, and forging a Board member’s signature on those checks.
Harris will be sentenced on May 5, 2022, at 1:30 p.m. The mail fraud charge on which Harris has been convicted carries a maximum sentence of up to 20 years of imprisonment, a maximum fine of up to $250,000, and a period of supervised release of up to 3 years. In addition, Harris can be ordered to pay full restitution to the PCAS.
The St. Louis Office of the U.S. Postal Inspection Service and the Pinckneyville Police Department investigated the case. The Perry County State’s Attorney’s Office also assisted with the investigation.
Assistant U.S. Attorney Scott Verseman is prosecuted the case.Former Owner of Latitude 360 Indicted for Payroll Tax FraudRead the Press Release
Jacksonville, Florida –United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Brent Brown with 17 counts of failing to remit to the IRS payroll taxes withheld from employees of four businesses that he operated under the umbrella of Latitude 360. If convicted, Brown faces a maximum penalty of 5 years in federal prison on each count.
According to the indictment, Brown incorporated Latitude 360 in Jacksonville around January 2014. He also operated four subsidiaries – Latitude 360 Jacksonville LLC, Latitude 360 Indianapolis LLC, Latitude 360 Pittsburgh LLC, and Latitude 360 Albany LLC, over which he exercised exclusive authority to determine the use of business funds. Those subsidiaries each withheld taxes from employee wages, including federal income taxes and Federal Insurance Contributions Act (“FICA”) taxes, which the subsidiaries were required to remit to the Internal Revenue Service periodically. Brown filed quarterly tax returns for each of the subsidiaries accurately reflecting the payroll taxes due for each of the subsidiaries but he caused those subsidiaries to fail to remit to the IRS the full amounts due. The taxes owed are alleged to total more than $1 million.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Internal Revenue Service – Criminal Investigation. It will be prosecuted by Assistant United States Attorney Laura Cofer Taylor.
Former DoD OIG Official Sentenced for Accepting Bribes and Defrauding the United StatesRead the Press Release
ALEXANDRIA, Va. – A former official of the U.S. Department of Defense’s Office of Inspector General (DoD OIG) was sentenced today to 7.5 years in prison for accepting bribes and defrauding the government, among other crimes, in relation to a contract he oversaw at the DoD OIG.
According to court documents, Matthew K. LumHo, 47, of Fairfax Station, was employed at the DoD OIG’s Information Services Directorate. In that position, LumHo oversaw and administered a prime federal contract designed to allow federal agencies in the National Capital Region to order routine telecommunications services and equipment from one of two national telecommunications companies.
Beginning no later than 2012, LumHo solicited and accepted bribes from co-conspirator William S. Wilson, in exchange for steering what nominally was intended to be telecommunications or information technology services through the prime government contract, through an intermediary telecommunications company, to Wilson’s company. Wilson’s company received all of this business without any competition, despite its lack of any relevant experience or expertise, and despite having no employees based in or near northern Virginia, where all the work was to be performed. Wilson and LumHo disguised the bribes by falsely masking them as payroll payments to a relative of LumHo for a job that did not in fact exist, with the bribes being deposited into an account that LumHo in fact controlled.
As the scheme progressed, LumHo, who was supposed to be safeguarding the contract, knowingly authorized numerous false and fraudulent service orders through the prime contract. The false service orders typically described the items supposedly being provided to the government as specialized IT-related support services, when in fact the co-conspirators were simply buying standard, commercially available items, dramatically marking up the price, and billing the government as though it had been provided with the specialized IT-related services. LumHo and Wilson also used fraudulent service orders to conceal bribes in the form of high-end camera equipment and stereo equipment sent from Wilson to LumHo, thereby defrauding the government into to paying for the very bribes themselves.
The evidence adduced at trial further demonstrated that the co-conspirators repeatedly sought to interfere with the criminal investigation by creating false documentation, making false statements to law enforcement officials, lying on a financial disclosure form, committing perjury during sworn civil deposition testimony, and tampering or attempting to tamper with a witness. In addition, at sentencing, Senior U.S. District Judge Judge O’Grady found that LumHo had obstructed justice by committing perjury when he testified at trial.
Co-conspirator Ronald A. Capallia, Jr., pleaded guilty on January 25, 2018, to his role in the conspiracy and was sentenced to one year and one day in prison on September 14, 2021. Today, LumHo was sentenced to 90 months in prison. Co-conspirator William S. Wilson is scheduled to be sentenced on February 4, 2022.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division; and Kelly P. Mayo, Deputy Inspector General for Investigations at the Department of Defense’s Office of Inspector General, made the announcement after sentencing by Senior U.S. District Judge Liam O’Grady.
Assistant U.S. Attorneys Matthew Burke and Russell L. Carlberg prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-222.
Former Acting Inspector General for the U.S. Department of Homeland Security Pleads Guilty to Scheme to Defraud the U.S. GovernmentRead the Press Release
A former Acting Inspector General for the U.S. Department of Homeland Security, Office of Inspector General (DHS-OIG) pleaded guilty today to federal charges stemming from the theft of proprietary software and sensitive databases from the U.S. government.
According to court documents, Charles K. Edwards, 61, of Sandy Spring, Maryland, executed a scheme to steal confidential and proprietary software from the government. Edwards worked for DHS-OIG from February 2008 until December 2013, including as Acting Inspector General. Prior to DHS-OIG, he worked at the U.S. Postal Service Office of Inspector General (USPS-OIG). At both agencies, Edwards had access to software systems, including one used for case management and other systems holding sensitive personal identifying information of employees.
After leaving DHS-OIG, Edwards founded Delta Business Solutions Inc., located in Maryland. From at least 2015 until 2017, he stole software from DHS-OIG, along with sensitive government databases containing personal identifying information of DHS and USPS employees, so that his company could develop a commercially-owned version of a case management system to be offered for sale to government agencies.
Edwards pleaded guilty in the U.S. District Court for the District of Columbia to conspiracy to commit theft of government property and theft of government property. A second defendant in the case, Murali Y. Venkata, 56, of Aldie, Virginia, has pleaded not guilty to charges and his case remains pending. Edwards will be sentenced at a later date. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, U.S. Attorney Matthew M. Graves for the District of Columbia, Inspector General Dr. Joseph V. Cuffari of DHS-OIG and Inspector General Tammy Whitcomb of USPS-OIG made the announcement.
Senior Litigation Counsel Victor R. Salgado of the Criminal Division’s Public Integrity Section and the Public Corruption and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case.
An indictment is merely an allegation, and Venkata is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Acting Inspector General for the U.S. Department of Homeland Security Pleads Guilty in Scheme to Defraud the U.S. GovernmentRead the Press Release
WASHINGTON – A former Acting Inspector General for the U.S. Department of Homeland Security, Office of Inspector General (DHS-OIG), pleaded guilty today to federal charges stemming from the theft of proprietary software and sensitive databases from the U.S. government.
According to court documents, Charles K. Edwards, 61, of Sandy Spring, Maryland, executed a scheme to steal confidential proprietary software from the government. Edwards worked for DHS-OIG from February 2008 until December 2013, including as Acting Inspector General. Prior to DHS-OIG, he worked at the U.S. Postal Service Office of Inspector General (USPS-OIG). At both agencies, Edwards had access to software systems, including one used for case management, and other systems holding sensitive personal identifying information of employees.
After leaving DHS, Edwards founded Delta Business Solutions, Inc., located in Maryland. From at least 2015 until 2017, he stole software from DHS-OIG, along with sensitive government databases containing personal identifying information of DHS and USPS employees, so that his company could develop a commercially owned version of a case management system to be offered for sale to government agencies.
Edwards pleaded guilty in the U.S. District Court for the District of Columbia to conspiracy to commit theft of government property and theft of government property. A second defendant in the case, Murali Y. Venkata, 56, of Aldie, Virginia, has pleaded not guilty to charges and his case remains pending. Edwards will be sentenced at a later date. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, U.S. Attorney Matthew M. Graves for the District of Columbia, Inspector General Dr. Joseph V. Cuffari of DHS-OIG, and Inspector General Tammy Whitcomb of USPS-OPIG made the announcement.
Senior Litigation Counsel Victor R. Salgado of the Criminal Division’s Public Integrity Section and the Public Corruption and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case.
An indictment is merely an allegation and Venkata is presumed innocent until proven beyond a reasonable doubt in a court of law.
Five Sentenced to Federal Prison for Roles in Drug ConspiracyRead the Press Release
FLORENCE, SOUTH CAROLINA — United States Attorney Corey F. Ellis announced today that five individuals were sentenced to federal prison after pleading guilty for their role in a drug conspiracy out of the Chesterfield County and Darlington County areas.
- Antwaun Tyree Stevenson, 30, of Hartsville, was sentenced to nearly 12 years in prison after pleading guilty to conspiracy to possess with intent to distribute and distribute 500 grams or more of methamphetamine, a quantity of cocaine, and a quantity of crack cocaine.
- Jevetta Porschia Young was sentenced to nearly 12 years in prison after pleading guilty to conspiracy to possess with intent to distribute and distribute 500 grams or more of methamphetamine.
- Leon Davis, Jr., 50, of Hartsville, was sentenced to nearly 9 years in prison after pleading guilty to conspiracy to possess with intent to distribute and distribute 500 grams or more of methamphetamine, a quantity of cocaine, and a quantity of cocaine base.
- Clint Justin Self, 23, of Hartsville, was sentenced to over 7 years in prison after pleading guilty to possession of a firearm and ammunition as a convicted felon and possession of a firearm in furtherance of a drug trafficking crime.
- McKenzie Michael Stevens, 23, of Hartsville, was sentenced to over 5 years in prison after pleading guilty to possession with intent to distribute 500 grams or more of methamphetamine.
Evidence presented to the court showed that as to Stevenson, twelve individuals gave statements that they bought or observed Stevenson in possession of methamphetamine, cocaine, and crack cocaine during January 2010 to November 2020.
As to Young, 15 individuals gave statements that they bought from or observed Young in possession of methamphetamine during January 2010 to November 2020.
As to Davis, 18 individuals gave statements that they bought methamphetamine from Davis during January 2010 to November 2020, and at least one individual stated they bought cocaine and crack cocaine from Davis during that same time period. In addition, the Darlington County Drug Enforcement Unit used a confidential informant to make two controlled buys of methamphetamine from Davis in August of 2020.
Additional evidence presented to the court showed that on July 10, 2020, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and officers with the Hartsville Police Department used a confidential informant to purchase methamphetamine from Self. Following the buy, officers conducted a traffic stop on the car Self was driving. During the stop, the female passenger, who was the registered owner of the car, gave consent to search the car. During the search, officers located a firearm. Self later admitted that he possessed the firearm during the drug buy that occurred earlier that day. Self is prohibited from possessing firearms based on his prior conviction for distribution of methamphetamine.
As to Stevens, on September 18, 2019, the Darlington County Sheriff’s Office was contacted by a storage unit company in Hartsville regarding finding a backpack with suspected narcotics in a storage unit. Stevens had contacted the company to pick up the bag, and was advised to pick up the bag from the main office. When Stevens arrived, he was arrested and admitted the bag and methamphetamine inside was his.
United States District Judge Sherri A. Lydon sentenced all five individuals. Stevenson was sentenced to 142 months in federal prison, Young was sentenced to 142 months in federal prison, Davis was sentenced to 105 months in federal prison, Self was sentenced to 87 months in federal prison, and Stevens was sentenced to 63 months in federal prison. United States District Judge Lydon sentenced all five individuals to a five-year term of court-ordered supervision following their release from prison. There is no parole in the federal system.
The case was investigated by the ATF, the Chesterfield County Sheriff’s Office, the Darlington County Sheriff’s Office, the Darlington County Drug Enforcement Unit, the Hartsville Police Department, the Florence County Sheriff’s Office, and the Florence Police Department.
This case was prosecuted as part of the joint federal, state, and local 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.
Assistant United States Attorney Lauren Hummel prosecuted the case.
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Erie Man to Sentenced 8 Years in Prison for Receiving Child Sex Abuse MaterialsRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been sentenced in federal court to 8 years in prison and ordered to pay $6,000 in restitution on his conviction of violating federal laws relating to the sexual exploitation of children, United States Attorney Cindy K. Chung announced today.
United States District Judge Stephanie L. Haines imposed the sentence on Cody A. Neely, 34.
According to information presented to the court, from May 2019 to October 2019, Neely received computer images and movies depicting prepubescent minors engaging in sexually explicit conduct. A forensic examination of Neely’s digital devices revealed thousands of items of child sexual abuse material.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Chung commended the Homeland Security Investigations for the investigation leading to the successful prosecution of Neely.