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24 February 2022
Maryland man admits to firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Darren Anthony Burnett, of Hagerstown, Maryland, has admitted to a firearms charge, United States Attorney William Ihlenfeld announced.
Burnett, 38, pleaded guilty today on one count of “Possession of a Firearm in Furtherance of a Drug Trafficking Crime.” Burnett admitted to having a 9mm pistol while trafficking cocaine and marijuana in October 2020 in Berkeley County.
Burnett faces at least five years and up to life incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Kimberley D. Crockett is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Berkeley County Sheriff’s Office investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Marlette Man Sentenced to 240 Months for Possession of Child PornographyRead the Press Release
DETROIT – United States District Court Judge Terrence G. Berg sentenced Robert Howard Gratton, 35, of Marlette, to 240 months in prison on charges of possession of child pornography, announced United States Attorney Dawn Ison.
Ison was joined in the announcement by Josh P. Hauxhurst, Acting Special Agent in Charge, Federal Bureau of Investigation, Detroit Division and Brenda Sanford, Sanilac County Prosecutor.
According to court records, Gratton – a registered sex offender who had two prior convictions for offenses related to the possession of child pornography – possessed images of child pornography recovered on his cellular phone during the course of an investigation of a sexual assault he committed.
US Attorney Dawn N. Ison stated, “This significant sentence resulting from cooperation between local, state, and federal law enforcement, demonstrates our commitment to keeping some of our most vulnerable citizens safe from sex offenders who prey on children.”
Prosecutor Sanford stated, "The Sanilac County Prosecutor's Office greatly appreciates the efforts of all of the law enforcement officers who were involved in the investigation in bringing the defendant to justice."
Gratton also was sentenced in the 24th Judicial Circuit Court to 90 to 180 months in prison for a second-degree criminal sexual conduct charge, concurrent to the federal sentence, the assault of a minor that led to the discovery of this offense.
The case was the result of a joint investigation by the Sanilac County Sheriff’s Department, the Michigan State Police, and the Northeast Michigan Trafficking and Exploitation Crimes Task Force (“NEMTEC”) of the Federal Bureau of Investigation, as well as a cooperative effort between the Sanilac County Prosecutor’s Office and the United States Attorney’s Office.
Man Who Trafficked Deadly Fentanyl Sentenced to 14 Years in Federal PrisonRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that MICHAEL NIEVES, 30, of Hartford, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 168 months of imprisonment, followed by five years of supervised release, for trafficking fentanyl.
According to court documents and statements made in court, the FBI’s Safe Streets Task Force and the Norwich Police Department launched an investigation after several fatal and non-fatal overdoses occurred in a short period of time in eastern Connecticut. Investigators determined that, beginning at least as early as January 2017 and continuing to July 2018, Nieves worked with Juan Reyes to supply heroin and fentanyl to other distributors, including individuals who regularly traveled from eastern Connecticut to Hartford to purchase the drugs. Those individuals then sold the drug to customers in the Norwich and New London areas.
On July 5, 2017, Norwich Police officers responded to a residence on the report of an overdose. The victim, a 34-year-old male, was transported to the hospital where he died. The Office of the Chief Medical Examiner subsequently determined the victim’s cause of death to be “acute fentanyl intoxication.” The investigation revealed that Christopher Dubicki, of Norwich, sold the fentanyl to the victim after previously purchasing it from Nieves and Reyes.
Investigators have connected six other overdoses, three fatal and three non-fatal, to drugs that were supplied by Nieves and Reyes.
Nieves has been detained since his arrest on June 5, 2018. On June 29, 2021, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl.
Reyes, last residing in West Hartford, pleaded guilty to the same charge on June 9, 2021. On October 26, he was sentenced to 151 months of imprisonment and followed by five years of supervised release.
Dubicki pleaded guilty to fentanyl, heroin and cocaine distribution charges and is detained while awaiting sentencing.
This investigation has been conducted by the FBI’s Safe Streets Task Force and the Norwich Police Department. The case is being prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.
Letcher County Teacher Sentenced to 370 Months for Production of Child Pornography and CyberstalkingRead the Press Release
LONDON, Ky. – A Letcher County Middle School teacher, Charles Evans Hall Jr., was sentenced on Tuesday, February 22, 2022, to 370 months in federal prison, by U.S. District Judge Claria Horn Boom, for production of child pornography and cyberstalking a student.
According to the evidence presented at Hall’s trial, Hall persuaded a child to setup a secret Snapchat account. Hall then manipulated the child into creating and transmitting sexually explicit pictures and videos. The Kentucky State Police (KSP) seized Hall’s cell phone on November 20, 2018. Thereafter, Hall used an Instagram account to engage in Cyberstalking. Additionally, Hall repeatedly requested the minor victim help him destroy evidence and threatened the child when she did not comply.
Following his arrest, Hall then bartered with his cellmate to get a co-conspirator, who was not in custody, to continue the Cyberstalking campaign against the child. Hall told the minor victim to make another statement to law enforcement to clear him of the charges.
The Court applied numerous sentencing enhancements, based on evidence of his engaging in sex acts with a minor, obstructing justice, abusing a position of trust, and being a repeat and dangerous sex offender against minors.
Hall was convicted, after a three-day jury trial, on October 20, 2021. Under federal law, Hall must serve 85 percent of his prison sentence; and upon his release from prison, he will be under the supervision of the U.S. Probation Office for Life.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent in Charge, Federal Bureau of Investigation (FBI) Louisville Division; and Commissioner Col. Phillip Burnette, Jr., Kentucky State Police, jointly announced the sentence.
This case was prosecuted 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 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.
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Lebanon Man Charged with Child Pornography OffensesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Michael Rankin, age 34, of Lebanon, Pennsylvania, was indicted on February 23, 2022, by a federal grand jury for sexually exploiting children, distributing child pornography, and possessing child pornography.
According to United States Attorney John C. Gurganus, the indictment alleges that between June 2021 and August 2021, Rankin induced a minor to engage in sexually explicit conduct for the purpose of producing images of that conduct. The indictment also alleges that Rankin distributed child pornography in August 2021 and possessed child pornography in October 2021.
The case was investigated by Homeland Security Investigations and the Pennsylvania State Police. Assistant U.S. Attorney Carlo D. Marchioli is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
If convicted, the maximum penalty under federal law for these offenses is 60 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Lackawanna County Man Sentenced to 30 Years’ Imprisonment for Production of Child Pornography and Attempted Witness TamperingRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that John Lewis Kramer, age 37, of Scranton, Pennsylvania, was sentenced on February 23, 2022, to 360 months’ imprisonment by United States District Court Judge Malachy E. Mannion for production of child pornography and attempted witness tampering.
According to United States Attorney John C. Gurganus, on July 7, 2021, following a two-day bench trial, Judge Mannion found Kramer guilty of producing pornographic images of a child between March 1, 2019, and March 27, 2020, in Lackawanna County. The 14-year-old victim’s mother called the police to report that she found videos and pictures on Kramer’s phone having sex with the minor victim. On January 22, 2021, Kramer sent a letter to the victim’s mother threatening to have her arrested—conduct that resulted in the guilty verdict for attempted witness tampering.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
The case was investigated by the Federal Bureau of Investigation and the Scranton Police Department. Assistant U.S. Attorney Jenny P. Roberts prosecuted the case.
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Knoxville Woman Sentenced to 57 Months in Prison for Defrauding COVID-19 Economic Relief ProgramsRead the Press Release
KNOXVILLE, Tenn. – On February 24, 2022, Porsha Tims Bush, 42, formerly of Knoxville, Tennessee, was sentenced to 57 months in prison by the Honorable Katherine A. Crytzer, in the United States District Court for the Eastern District of Tennessee at Knoxville.
Bush pleaded guilty to engaging in more than $540,000 in fraud related to the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, in violation of Title 18 U.S.C. § 1343. Judge Crytzer ordered her to pay restitution in the amount of $471,621, a fine of $25,000, and to complete a term of supervised release of three years following her release from prison.
The CARES Act is a federal law enacted in March 2020 to provide emergency financial assistance to the millions of Americans who are suffering from the economic effects caused by the COVID-19 pandemic. Two primary sources of relief provided by the CARES Act were the Paycheck Protection Program (“PPP”) and the Economic Injury Disaster Loan (“EIDL”) program. PPP loans consisted of more than $640 billion in forgivable loans to small businesses for payroll, mortgage interest, rent, and utilities. The EIDL program provided low-interest loans to business owners to pay for items like accounts payable and other bills that could not be paid as a result of COVID-19.
As set forth in the written plea agreement filed with the court, from March 30, 2020, to around the end of June 2020, Bush fraudulently applied for 10 loans totaling $547,286 through the PPP and EDIL programs. Bush submitted fraudulent applications under the names of six businesses that did not qualify for the COVID-19 relief funds that Bush sought. Bush submitted nine fraudulent applications to financial institutions seeking PPP funds and one fraudulent application to the Small Business Administration seeking EIDL funds. As part of her fraud scheme, Bush submitted false supporting records, including Internal Revenue Service documents, and made false statements about the number of individuals the companies employed, the revenue generated, and the wages paid. Bush also made false statements about the business entities and the intended use of the loan proceeds.
Bush then used the fraudulently obtained loan proceeds for unauthorized purposes, including to purchase clothes and electronics; to pay off personal debt; to pay for personal travel; and to fund her daily lifestyle.
For example, according to the plea agreement, on March 30, 2020, Bush submitted an online application to the Small Business Administration in the name of Enlightenment Family Care, Inc., seeking $150,000 in EIDL funds. On the application and in the supporting documents Bush submitted to the SBA—which were all false—Bush claimed that Enlightenment Family Care employed four individuals, generated $335,651 in gross revenue, incurred $34,500 in cost of goods sold, and paid wages of $45,651 in the twelve months preceding the COVID-19 pandemic. Bush fabricated a Profit and Loss Statement to substantiate her false claims.
According to court documents, after entering her guilty plea in August 2021, and while she was subject to presentence release conditions, Bush submitted false Internal Revenue Service forms requesting COVID-19 relief funds for three companies, none of which was entitled to the requested funds. Bush admitted to that conduct before sentencing in this case in a joint stipulation that was filed with the court.
This case is the result of an investigation conducted by the FBI.
Assistant United States Attorney William A. Roach, Jr., who also serves as the Office’s Coronavirus Fraud Coordinator, prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Knoxville Man Sentenced to 87 Months in Prison for Attempting to Hire A "Hitman"Read the Press Release
KNOXVILLE, Tenn. – On February 24, 2022, Nelson Paul Replogle, 60, of Knoxville, was sentenced to 87 months in prison, followed by a three-year period of supervised release, by the Honorable Leon Jordan, Senior United States District Judge of the U.S. District Court for the Eastern District of Tennessee.
As part of a written plea agreement, Replogle pleaded guilty to one count of Murder-For-Hire in violation of Title 18, United States Code, Section 1958. In the filed plea agreement, Replogle admitted to using the Internet in April 2021 to contact a dark web entity that purported to arrange murders-for-hire. He provided the would-be killer with his wife’s name and address, a description of her vehicle, and a specific date, time, and place where she could be found and murdered. In addition, Replogle asked that the killing appear as “road rage or [a] carjacking gone wrong.” In exchange, Replogle used the Internet to transmit a payment of 0.2924549 Bitcoin, which on the day of payment had the approximate value of $17,853.49.
The Federal Bureau of Investigation (FBI) learned of Replogle’s efforts to arrange to have the victim killed and arrested Replogle. The intended victim was unharmed.
This prosecution is the result of an investigation by the FBI.
Assistant United States Attorney Frank M. Dale Jr. represented the United States.
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Justice Department Sues to Shut Down Multistate Tax 'Elimination' Scheme Involving Charitable Remainder Annuity TrustsRead the Press Release
On Feb. 23, the United States filed a complaint seeking an order prohibiting John Hugo Eickhoff Jr., Rhonda Kaye Eickhoff, Hoffmann Associates LLC, Aric Elliot Schreiner, Columbia CPA Group LLC, John Williams Gray II and Damon Thomas Eisma from organizing, promoting or selling an allegedly unlawful tax scheme involving the use of charitable remainder annuity trusts (CRATs). The government allegations detail the defendants’ involvement with at least 70 CRATs, in a scheme that has resulted in an estimated $40 million of taxable income going unreported and at least $8 million in tax revenue losses.
According to the complaint filed in the U.S. District Court for the Western District of Missouri, defendants falsely claim that customers following their CRAT scheme can sell property in a way that eliminates the federal tax on the income generated. Specifically, the government alleges that each defendant participates in one or more of the following steps involved in the scheme: (1) convincing customers to contribute property to a CRAT (usually real property that has gained value over time); (2) unlawfully inflating (stepping-up) the cost basis in the property; (3) selling the property to purchase an annuity; and (4) falsely reporting the annuity payments received by the customers as tax-free distributions of income made by the CRAT. The complaint further alleges that the defendants know or have reason to know that their statements to customers about the supposed tax benefits of the transaction they promote are false or fraudulent.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
The IRS warns taxpayers to be wary of scams that involve claiming inflated charitable contribution deductions and recommends anyone who may have improperly claimed such deductions to consult a tax professional. Guidelines for valuing and deducting property donations to charity can be found in Publication 526 and Publication 561, available on IRS.gov.
In the past decade, the Tax Division has obtained injunctions against hundreds of tax return preparer and tax fraud promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Justice Department Sues to Block UnitedHealth Group’s Acquisition of Change HealthcareRead the Press Release
The Department of Justice, together with Attorneys General in Minnesota and New York, filed a civil lawsuit today to stop UnitedHealth Group Incorporated (United) from acquiring Change Healthcare Inc. (Change). The complaint, filed in the U.S. District Court for the District of Columbia, alleges that the proposed $13 billion transaction would harm competition in commercial health insurance markets, as well as in the market for a vital technology used by health insurers to process health insurance claims and reduce health care costs.
“Quality health insurance should be accessible to all Americans,” said Attorney General Merrick B. Garland. “If America’s largest health insurer is permitted to acquire a major rival for critical health care claims technologies, it will undermine competition for health insurance and stifle innovation in the employer health insurance markets. The Justice Department is committed to challenging anticompetitive mergers, particularly those at the intersection of health care and data.”
“The proposed transaction threatens an inflection point in the health care industry by giving United control of a critical data highway through which about half of all Americans’ health insurance claims pass each year,” said Principal Deputy Assistant Attorney General Doha Mekki of the Justice Department’s Antitrust Division. “Unless the deal is blocked, United stands to see and potentially use its health insurance rivals’ competitively sensitive information for its own business purposes and control these competitors’ access to innovations in vital health care technology. The department’s lawsuit makes clear that we will not hesitate to challenge transactions that harm competition by placing so much control of data and innovation in the hands of a single firm.”
As alleged in the complaint, the proposed transaction would give United, a massive company that owns the largest health insurer in the United States, access to a vast amount of its rival health insurers’ competitively sensitive information. Post-acquisition, United would be able to use its rivals’ information to gain an unfair advantage and harm competition in health insurance markets. The proposed transaction also would eliminate United’s only major rival for first-pass claims editing technology — a critical product used to efficiently process health insurance claims and save health insurers billions of dollars each year — and give United a monopoly share in the market.
The proposed acquisition would eliminate an independent and innovative firm, Change, that today provides a variety of participants in the health care ecosystem, including United’s major health insurance competitors, with vital software and services. This includes electronic data interchange (EDI) clearinghouse services, which transmit claims and payment information between insurers and providers, and first-pass claims editing solutions, which review claims under the health insurer’s policies and relevant treatment protocols. Indeed, Change markets itself as a valuable partner for insurers, working closely with them to innovate and problem-solve. United’s acquisition of this neutral player would allow United to tilt the playing field in its favor, harming current competition and allowing United to control and distort the course of innovation in this industry for the foreseeable future.
UnitedHealth Group Incorporated is headquartered in Minnetonka, Minnesota. United is an integrated health care enterprise that includes, among other subsidiaries, UnitedHealthcare, the largest health insurer in the United States; Optum Health, a large network of health care providers located throughout the country; OptumRx, a large pharmacy benefit manager; and OptumInsight, a health care technology business. United’s revenues were $288 billion in 2021.
Change Healthcare Inc. is headquartered in Nashville, Tennessee. Change is a leading independent health care technology company providing health care analytics, software, services and data to health care providers, health insurers and other software and services firms in the health care industry. Change’s revenues were $3.4 billion in 2021.
Justice Department Files Suit Against Pennsylvania Court System for Discriminating Against People with Opioid Use DisorderRead the Press Release
Today, the Justice Department filed suit against the Unified Judicial System of Pennsylvania (UJS) for violating the Americans with Disabilities Act (ADA). The department previously notified the UJS that its courts had engaged in discrimination by prohibiting or limiting the use of lawfully prescribed medication to treat Opioid Use Disorder (OUD) by individuals under court supervision. That letter of findings demanded that the UJS address the civil rights violations identified by the Justice Department’s Civil Rights Division and the U.S. Attorney’s Offices for the Eastern, Middle and Western Districts of Pennsylvania.
The Justice Department identified three individuals with OUD who were discriminated against by UJS Courts — specifically, the Northumberland and Jefferson County Courts of Common Pleas. Two individuals alleged that the Jefferson County Court ordered all probationers to stop using their prescribed medication for OUD. A third individual alleged that the Northumberland County Court required her to stop using her prescribed OUD medication to graduate from drug court. The department’s investigation corroborated these allegations and additionally found evidence that other UJS Courts have policies that discriminate against individuals with OUD.
“This lawsuit aims to safeguard the rights of people with Opioid Use Disorder who are too often subject to discrimination rooted in stereotypes and myths rather than in science,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Court-involved individuals with Opioid Use Disorder deserve access to medications needed to support their recovery and to break the cycles of addiction. We hope that this lawsuit against the Unified Judicial System of Pennsylvania sends a strong message about the need for courts to protect the rights of individuals with Opioid Use Disorder.”
If you believe that a Pennsylvania court prohibited or limited your use of lawfully prescribed medication to treat OUD, please email [email protected]. For more information on the ADA, please call the Department’s toll-free ADA Information Line at 1-800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. For more information on the Civil Rights Division, please visit www.justice.gov/crt. The letter can be viewed here. The complaint can be viewed here.
Jury Convicts Arizona and California Men for $20 Million Dollar Investment FraudRead the Press Release
NORFOLK, Va. – A federal jury convicted an Arizona man and a California man yesterday on charges of conspiracy to commit mail and wire fraud, wire fraud, and money laundering, in connection with a nationwide investment scheme involving fraudulent wireless spectrum and dental franchise investments.
According to court records and evidence presented at trial, from approximately 2011 through 2017, David Alcorn, 78, of Scottsdale, Arizona, and Aghee William Smith II, 70, of Roseville, California, were part of an investment fraud conspiracy that operated out of California, Arizona, Florida, Idaho, and Hampton Roads, among other locations across the country. Alcorn, Smith, and their co-conspirators—including Kent Maerki, 78, and his wife Norma Jean Coffin, 60, of Arizona, Daryl Bank, 51, of Florida, insurance salesman Tony Sellers, 62, of Idaho, insurance salesman Tom Barnett, 69, of California, attorney Billy Seabolt, 56,, of Williamsburg, Raeann Gibson, 49, of Florida, and Roger Hudspeth, 51, of Suffolk – deceived hundreds of unsuspecting investors, most of whom were at or near retirement age, by convincing them to invest in or send money to companies owned and controlled by Alcorn, Bank, and Maerki. Alcorn and others then misappropriated significant portions of the investment funds to pay for their criminal enterprise and lavish lifestyles, as well as to pay exorbitant commissions to Smith and other salesmen.
Smith began selling these fraudulent investments in 2011 for Alcorn, Maerki, and Bank. The conspirators used material misrepresentations to sell illiquid, highly speculative investment vehicles that were then used as vehicles for fraud. Based on these fraudulent misrepresentations, unsuspecting investors cashed out of 401(k) and other retirement accounts to invest without knowing that Alcorn, Bank, and Maerki were immediately transferring 20%–70% of the funds to other companies that they controlled in the form of purported “fees.” As a result of this investment fraud scheme, the victims suffered losses in excess of $20 million.
Alcorn was convicted of conspiracy, wire fraud, and money laundering. He faces a maximum penalty of over 200 years in prison when sentenced on June 23. Smith was convicted of conspiracy and wire fraud, and he faces a maximum penalty of over 90 years in prison when sentenced on June 23. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Bank was convicted after trial of conspiracy, mail and wire fraud, selling unregistered securities, securities fraud, and money laundering, and was sentenced in September 2021 to 35 years in prison. Maerki pleaded guilty to conspiracy and was sentenced in March 2021 to 16 years in prison. Seabolt was convicted after trial of conspiracy and mail fraud and sentenced in September 2021 to 10 years in prison. Gibson pleaded guilty to conspiracy and was sentenced in February 2020 to 10 years in prison. Hudspeth pleaded guilty to investment advisor fraud and money laundering and was sentenced in May 2018 to over 12 years in prison. Sellers pleaded guilty to conspiracy and was sentenced in January 2022 to 5 years in prison. Coffin and Barnett each pleaded guilty to conspiracy and will be sentenced in March and May 2022, respectively.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; Darrell J. Waldon, Special Agent in Charge of the Criminal Investigations Unit of the Internal Revenue Service; and Greg L. Torbenson, Acting Inspector in Charge of the U.S. Postal Inspection Service’s Washington Division, made the announcement after Senior U.S. District Judge Raymond A. Jackson accepted the verdict.
The Virginia State Corporation Commission provided significant assistance with this investigation.
Assistant U.S. Attorneys Melissa O’Boyle, Elizabeth Yusi and Andrew Bosse are prosecuting the case.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult. It is a term used to describe five subtypes of elder abuse: physical abuse, financial fraud, scams and exploitation, caregiver neglect and abandonment, psychological abuse, and sexual abuse. Elder abuse is a serious crime against some of our nation’s most vulnerable citizens, affecting at least 10 percent of older Americans every year. Together with our federal, state, local, and tribal partners, the Department of Justice is steadfastly committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, research, victim services, and public awareness. This holistic and robust response demonstrates the Department’s unwavering dedication to fighting for justice for older Americans.
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 2:19-cr-47.
Jefferson County man admits to firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Richard Brent Collum, of Harpers Ferry, West Virginia, has admitted to a firearms charge, United States Attorney William Ihlenfeld announced.
Collum, 36, pleaded guilty today on one count of “Unlawful Possession of a Firearm.” Collum, a person prohibited from having a firearm because of a prior conviction, admitted to having a .45 caliber handgun in August 2021 in Jefferson County.
Collum faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Timothy D. Helman is prosecuting the case on behalf of the government. The Charles Town Police Department investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Indiana Native Sentenced for 2019 Attempted Armed Robbery of Uptown CVS Pharmacy That Resulted in Shooting of NOPD OfficerRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced on Tuesday, February 22, 2022, that RICHARD SANSBURY, age 28, a resident of Indianapolis, Indiana, was sentenced for his participation in the June 17, 2019, robbery of the CVS pharmacy located at 4901 Prytania Street in New Orleans.
United States District Court Judge Greg G. Guidry imposed a sentence for each count of the three-count indictment to which SANSBURY plead guilty. As to count one, SANSBURY was charged with conspiracy to commit a robbery involving a controlled substance, in violation of Title 18, United States Code, Section 2118. For count one, the court sentenced SANSBURY to a term of imprisonment of 121 months in the federal Bureau of Prisons. As to count two, SANSBURY was charged with armed robbery involving controlled substances in violation of Title 18, United States Code, Sections 2118(a) and (c)(1). For count two, the court sentenced SANSBURY to a term of imprisonment of 121 months in the federal Bureau of Prisons. Counts 1 and 2 were ordered to run concurrent to each other. In count three, SANSBURY was charged with discharge of a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Section 924(c)(1)(A)(iii). The court sentenced SANSBURY to a term of imprisonment of 120 months for this count. The sentence imposed in count three will run consecutive to the sentences imposed in counts 1 and 2. Following his term of imprisonment, SANSBURY will be placed on supervised release for a period of 4 years. The court imposed a mandatory special assessment fee of $300.00.
According to documents filed in court, at approximately 6:06 a.m., Richard SANSBURY and his co-defendant, Alan Parson entered the 24-hour pharmacy, armed with weapons. Both wore hooded sweatshirts and blue medical gloves. Upon entering the store, SANSBURY removed a firearm from his waistband, went behind the front counter, and zip-tied a cashier. SANSBURY led the cashier to a restroom inside of the store. Parson went to the rear of the store, in the pharmacy area, and forced another employee to the ground before securing a second employee’s feet with zip-ties. Parson then filled a large trash bag with several pill bottles that he retrieved from the pharmacy’s safe. SANSBURY entered the pharmacy area as well and zip-tied the second employee’s hands.
SANSBURY and Parson attempted to escape through the store’s entrance but upon exiting the store, encountered responding New Orleans Police Officers. SANSBURY and Parson engaged in a shootout with the officers that resulted in one officer being shot in the shoulder. Video surveillance captured the robbery as it occurred inside of the CVS pharmacy, as well as the subsequent shootout with police.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. It is being prosecuted by Assistant United States Attorneys David Haller and Brittany Reed of the Violent Crime/Strike Force Unit of the U.S. Attorney’s Office.
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Hull Man Sentenced for Fraudulently Submitting CARES Act Small Business LoansRead the Press Release
BOSTON – A Hull man was sentenced today in federal court in Boston in connection with submitting fraudulent documentation in order to receive CARES Act small business loans.
Shane Spierdowis, 31, was sentenced by U.S. District Court Judge Richard G. Stearns to two years in prison and two years of supervised release. On Oct. 21, 2021, Spierdowis pleaded guilty to one count of wire fraud.
Spierdowis used multiple shell companies and forged bank records to fraudulently apply for and obtain a federally funded Small Business Administration (SBA) Paycheck Protection Program (PPP) loan and an SBA Economic Injury Disaster Loan (EIDL). Spierdowis used Social Security numbers different from his own and fraudulent documentation to open bank accounts for his shell companies. He also provided a fraudulent corporate bank statement reflecting a balance exceeding $220,000 but dated before the pertinent bank account was ever opened.
As a result, Spierdowis obtained an SBA Paycheck Protection Program loan of $101,517 for one of his shell companies, the funds for which were wired to a bank in Massachusetts. Spierdowis also obtained an SBA EIDL in the amount of $89,900 using a separate shell company.
Additionally, with respect to both loans, Spierdowis submitted fraudulent federal tax forms for both shell companies that included his signature, as the purported president of each company, and the purported payment of hundreds of thousands of dollars in wages to purported employees during each quarter in 2019. In reality, however, for part of Q1 2019 and all of Q2 – Q4 2019, Spierdowis was in federal custody after violating his probation arising from a federal conviction for conspiracy to commit securities fraud.
United States Attorney Rachael S. Rollins and Frederick J. Regan, Special Agent in Charge of the U.S. Secret Service, Boston Field Office made the announcement. The Hull Police Department provided valuable assistance with the investigation. Assistant U.S. Attorney William Abely, Chief of Rollins’ Criminal Division, prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Houston area residents charged with unlawfully possessing full auto switchesRead the Press Release
HOUSTON – A federal grand jury has returned an indictment against the man accused of shooting three Houston police officers as well as several unrelated cases involving unlawful possession of firearms with “Glock switches” or other violations, announced U.S. Attorney Jennifer B. Lowery along with Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Chief Troy Finner of the Houston Police Department (HPD), Sheriff Ed Gonzalez of the Harris County Sheriff’s Office (HCSO) and U.S. Marshal Michael O’Conner of the U.S. Marshals Service (USMS).
Full auto switches, or machine guns, are most commonly referred to as “Glock switches.
Five of those charged are set to make their initial appearances today before U.S. Magistrate Judge Christina A. Bryan at 2 pm.
Roland Caballero, 31, Houston, is currently in state custody on related charges and will make an appearance in Houston federal court at a later date. He is charged federally with carjacking, discharge of firearm during a crime of violence, possession of a machine gun and being a felon in possession of a firearm.
“The charges announced today are a sobering reminder of the dangers faced everyday by law enforcement officers around this country,” said Deputy Attorney General Lisa O. Monaco. “The defendant allegedly shot and wounded three HPD officers with a pistol that was converted into a machine gun. The Department of Justice is focused on taking violent criminals off the street and doing so by working side by side with our state and local law enforcement partners.”
The charges against Caballero allege he was in an altercation with his girlfriend which resulted in a 911 call Jan. 27. Authorities responded, but he fled, according to the criminal complaint originally filed in the case. They pursued. According to the charges, Caballero eventually crashed his vehicle, at which time he shot at and wounded three HPD officers using a pistol modified with a full auto switch.
Caballero then fled the scene on foot and carjacked a nearby vehicle, according to the complaint. However, the charges allege law enforcement located him and a stand-off ensued. He, again, allegedly discharged a firearm at authorities, after which he ultimately surrendered.
The indictment further alleges search warrants conducted at his residence resulted in the discovery of several firearms, ammunition, machine gun components and 3-D printers.
In addition to the charges against Caballero, federal grand jury returned indictments Feb. 16 against 19 individuals for unlawful possession of an unregistered machine gun, possession of a machine gun or being a felon in possession of a firearm. [Detailed listing attached.]
Those charges resulted from various traffic stops or responding to scenes, during which authorities discovered the unlawful firearms; through undercover investigations; or as a result of other proactive enforcement efforts.
If convicted of unlawful possession of an unregistered machine gun, possession of a machine gun, or felon in possession face up to 10 years in federal prison. Caballero faces a minimum of 30 years up to life in prison if convicted of carjacking with the use of a machine gun. All charges also carry a possible $250,000 maximum fine, upon conviction.
ATF, HPD, HCSO and USMS conducted the Caballero investigation as well as all or some of the other matters with assistance of Galveston Police Department, Harris County Precinct 2 Constables Office, Texas Department of Public Safety and Brazos County Sheriff’s Office. Assistant U.S. Attorneys in the violent crimes section are prosecuting the cases.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of lawHouston Area Residents Charged with Unlawfully Possessing Full Auto SwitchesRead the Press Release
A federal grand jury has returned an indictment against the man accused of shooting three Houston police officers as well as several unrelated cases involving unlawful possession of firearms with “Glock switches” or other violations, announced U.S. Attorney Jennifer B. Lowery along with Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Chief Troy Finner of the Houston Police Department (HPD), Sheriff Ed Gonzalez of the Harris County Sheriff’s Office (HCSO) and U.S. Marshal Michael O’Conner of the U.S. Marshals Service (USMS).
“The charges announced today are a sobering reminder of the dangers faced everyday by law enforcement officers around this country,” said Deputy Attorney General Lisa O. Monaco. “The defendant allegedly shot and wounded three HPD officers with a pistol that was converted into a machine gun. The Department of Justice is focused on taking violent criminals off the street and doing so by working side by side with our state and local law enforcement partners.”
Full auto switches, or machine guns, are most commonly referred to as “Glock switches.”
Roland Caballero, 31, of Houston, is currently in state custody on related charges and will make an appearance in Houston federal court at a later date. He is charged federally with carjacking, discharge of firearm during a crime of violence, possession of a machine gun and being a felon in possession of a firearm.
The charges against Caballero allege he was in an altercation with his girlfriend which resulted in a 911 call on Jan. 27. Authorities responded, but he fled, according to the criminal complaint originally filed in the case, and officers pursued. According to the charges, Caballero eventually crashed his vehicle, at which time he shot at and wounded three HPD officers using a pistol modified with a full auto switch.
Caballero then fled the scene on foot and carjacked a nearby vehicle, according to the complaint. However, the charges allege law enforcement located him and a stand-off ensued. He, again, allegedly discharged a firearm at authorities, after which he ultimately surrendered.
The indictment further alleges search warrants conducted at his residence resulted in the discovery of several firearms, ammunition, machine gun components and 3D printers.
In addition to the charges against Caballero, federal grand jury returned indictments on Feb. 16 against 19 individuals for unlawful possession of an unregistered machine gun, possession of a machine gun or being a felon in possession of a firearm. Five of those charged were set to make their initial appearances today before U.S. Magistrate Judge Christina A. Bryan at 2:00 p.m. EST.
Those charges resulted from various traffic stops or responding to scenes, during which authorities discovered the unlawful firearms; through undercover investigations; or as a result of other proactive enforcement efforts.
If convicted of unlawful possession of an unregistered machine gun, possession of a machine gun, or felon in possession Caballero faces up to 10 years in federal prison. Caballero faces a minimum of 30 years up to life in prison if convicted of carjacking with the use of a machine gun. All charges also carry a possible $250,000 maximum fine, upon conviction.
ATF, HPD, HCSO and USMS conducted the Caballero investigation as well as all or some of the other matters with assistance of Galveston Police Department, Harris County Precinct 2 Constables Office, Texas Department of Public Safety and Brazos County Sheriff’s Office. Assistant U.S. Attorneys for the Southern District of Texas in the violent crimes section are prosecuting the cases.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Great Falls man sentenced to 14 years in prison for distributing meth, fentanyl that led to deathRead the Press Release
GREAT FALLS — A Great Falls man who admitted to distributing methamphetamine and fentanyl to a person who died of an overdose was sentenced today to 14 years in prison to be followed by three years of supervised release, U.S. Attorney Leif M. Johnson said.
Kent Fox, 48, pleaded guilty in October 2021 to distribution of controlled substances resulting in death.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris also ordered $815 restitution.
The government alleged in court documents that on Aug. 23, 2020, Great Falls police were dispatched to a camper trailer and found a male, identified as John Doe, deceased. Fox was on the scene, was friends with John Doe, had last seen him two days earlier and had gone to check on him. Fox found John Doe deceased. The government further alleged that two days earlier, Fox helped arranged a drug deal between his co-defendant, Brandie Rae Fulbright, and John Doe. As part of the deal, Fox received a semiautomatic rifle and John Doe received meth and two blue pills, identified as fentanyl. An autopsy determined that Doe died from an overdose of a combination of meth and fentanyl, which were the same substances recovered from John Doe’s trailer. Fulbright has pleaded guilty to charges in the case and is awaiting sentencing.
Assistant U.S. Attorney Jeffrey K. Starnes prosecuted the case, which was investigated by the FBI and Great Falls Police Department.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Four Time Convicted Felon Pleads Guilty to Gun PossessionRead 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 Roosevelt E. Collins, III, 40, of Rochester, NY, pleaded guilty to being a felon in possession of a firearm and ammunition before U.S. District Judge Charles J. Siragusa. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Cassie Kocher, who is handling the case, stated that on July 26, 2021, members of the U.S. Marshals Task Force were surveilling Collins, who was wanted in connection with an alleged shooting incident on July 2, 2021. Officers took Collins into custody while he was sitting in a vehicle parked in a driveway on Magee Avenue. During the arrest, officers observed a loaded 9mm semiautomatic pistol in plain view on the floor of the front passenger seat. Collins also had a magazine loaded with 12 additional rounds of ammunition on his person.
Collins was previously convicted on felony charges in 2001, 2005, 2010, and 2015, in Monroe County Court, including Criminal Possession of a Controlled Substance in the Fifth Degree, Attempted Criminal Possession of a Controlled Substance in the Fifth Degree, and Aggravated Unlicensed Operation of a Motor Vehicle in the First Degree, and is legally prohibited from possessing a firearm.
The plea is the result of an investigation by the Rochester Police Department, under the direction of Interim Chief David Smith, the U.S. Marshals Service, under the direction of Marshal Charles Salina, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
Sentencing is scheduled for June 2, 2022, at 10:00 a.m. before Judge Siragusa.
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Founders of Cryptocurrency Exchange Plead Guilty to Bank Secrecy Act ViolationsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that Arthur Hayes and BENJAMIN DELO, founders and executives of purportedly “off-shore” cryptocurrency derivatives exchange the Bitcoin Mercantile Exchange or “BitMEX,” pled guilty today to violating the Bank Secrecy Act (the “BSA”) by willfully failing to establish, implement, and maintain an anti-money laundering (“AML”) program at BitMEX. Under the terms of their respective plea agreements, HAYES and DELO each agreed to separately pay a $10 million criminal fine representing pecuniary gain derived from the offense. HAYES and DELO pled guilty today before U.S. District Judge John G. Koeltl.
U.S. Attorney Damian Williams said: “As cryptocurrencies and technologies designed to facilitate their trade proliferate, companies engaged in the virtual currency economy have become critical gatekeepers in efforts to ensure that U.S. markets are fair, efficient, and secure. The opportunities and advantages of operating in the United States are legion, but they carry with them the obligation for those businesses to do their part to help in driving out crime and corruption. Arthur Hayes and Benjamin Delo built a company designed to flout those obligations; they willfully failed to implement and maintain even basic anti-money laundering policies. They allowed BitMEX to operate as a platform in the shadows of the financial markets. Today’s guilty pleas reflect this Office’s continued commitment to the investigation and prosecution of money laundering in the cryptocurrency sector.”
According to the Indictment, public court filings, and statements made in court:[1]
HAYES, together with DELO and indicted co-defendant Sam Reed, was one of the three co-founders and the long-time CEO of BitMEX. DELO was both a co-founder and, during the period from September 2015 up to and including September 2020, held various executive roles at BitMEX, including Chief Operating Officer. BitMEX is an online cryptocurrency derivatives exchange that, during the relevant time period, had U.S.-based operations and served thousands of U.S. customers, notwithstanding false representations to the contrary by the company. From at least September 2015, and continuing at least through the time of the Indictment in September 2020, HAYES and DELO willfully caused BitMEX to fail to establish and maintain an AML program, including a program for verifying the identify of BitMEX’s customers (or a “know your customer” or “KYC” program). As a result of its willful failure to implement AML and KYC programs, BitMEX was in effect a money laundering platform. For example, in May 2018, HAYES was notified of allegations that BitMEX was being used to launder the proceeds of a cryptocurrency hack. Neither HAYES, DELO, nor their company filed a suspicious activity report thereafter (indeed, BitMEX filed no suspicious activity reports at all between 2014 and September 2020), nor did they implement an AML or KYC program in response. Unsurprisingly, BitMEX was also a vehicle for sanctions violations: HAYES and DELO both communicated directly with BitMEX customers who self-identified as being based in Iran, an OFAC-sanctioned jurisdiction, but did nothing to implement an AML or KYC program after doing so.
HAYES and DELO failed to institute AML or KYC programs at BitMEX despite closely following U.S. regulatory developments that made clear their legal obligation to do so if BitMEX operated in the United States, which it did. Despite repeatedly stating that BitMEX did not serve U.S. customers, including to members of the press and others outside of BitMEX, HAYES and DELO both knew that BitMEX’s purported withdrawal from the U.S. market in or about September 2015 was a sham, and that purported “controls” BitMEX put in place to prevent U.S. trading were an ineffective facade that did not, in fact, prevent users from accessing or trading on BitMEX from the United States. HAYES and DELO not only understood that U.S. customers continued to trade on BitMEX, but derived substantial profits from BitMEX as a result of U.S.-based trading. HAYES and DELO actively sought out U.S. customers by using U.S.-based cryptocurrency “influencers” to market to new customers through BitMEX’s so-called “Affiliate Program.” HAYES also conducted U.S. television appearances and marketing stunts that promoted BitMEX’s products in the United States. DELO allowed a customer to continue to access a BitMEX trading account despite this customer explicitly being “US based,” merely because that customer was “famous in Bitcoin.” DELO falsely changed internal tracking information to reflect that customer’s country of residence as being other than the United States, despite knowing that to be false.
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HAYES, 36, of Miami, Florida, and DELO, 38, of the United Kingdom and Hong Kong, pled guilty to one count each of violating the Bank Secrecy Act, which carries a maximum penalty of 5 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the FBI’s New York Money Laundering Investigation Squad, and thanked the attorneys and investigators at the Commodity Futures Trading Commission whose expertise and diligence were integral to the development of this investigation.
The prosecution is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Jessica Greenwood, Samuel Raymond, and Thane Rehn are in charge of the prosecution.
[1] As to HAYES’ and DELO’s co-defendants, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Fort Wayne, Indiana, Man Sentenced to 60 Months in PrisonRead the Press Release
FORT WAYNE – Guadalupe Pineda, Jr., 30 years old, of Fort Wayne, Indiana, was sentenced by United States District Judge Holly A. Brady, after pleading guilty to distributing fentanyl, announced United States Attorney Clifford D. Johnson.
Pineda was sentenced to 60 months in prison followed by 4 years of supervised release.
According to documents in this case, in the fall of 2020, Pineda sold multiple ounces of fentanyl and heroin to law enforcement on four different occasions.
This case was investigated by the FBI’s Fort Wayne Safe Streets Gang Task Force, comprised of the Federal Bureau of Investigation, the Indiana State Police, the Allen County Sheriff’s Department, and the Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorney Anthony W. Geller.
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Fort Wayne Man Convicted of Federal Gun ChargeRead the Press Release
FORT WAYNE- Bryant D. Aron, age 36, of Fort Wayne, Indiana, was convicted of being a felon in possession of a firearm and ammunition on February 23, 2022, following a two-day jury trial before United States District Court Judge Holly A. Brady, announced United States Attorney Clifford D. Johnson.
According to documents in this case, on May 24, 2019, Aron was the driver of a vehicle involved in a high-speed chase with the Fort Wayne Police Department. During the pursuit, Aron crashed his vehicle, exited it, and led police on a short foot pursuit. He was subsequently searched, and a loaded firearm magazine was found in his pocket. A loaded firearm was found inside the vehicle. Aron’s prior criminal history revealed he had multiple felony convictions out of Allen County Superior Court.
Aron’s sentencing will be scheduled at a later date. Any specific sentence to be imposed will be determined by the District Court Judge after consideration of federal statutes and the United States Sentencing Guidelines.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Fort Wayne Police Department. This case is being prosecuted by Assistant U.S. Attorney Stacey R. Speith.
This case was 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.
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Fort Dodge Man Sentenced to Federal Prison for Misappropriating Social Security Benefits of Severely Disabled Nursing Home ResidentRead the Press Release
A Fort Dodge man who stole over $15,000 in Social Security benefits from a severely disabled woman was sentenced February 23, 2022, to ten months in federal prison. Donald Glenn Conner, also known as Donald Luevanos, age 38, received the prison term after a September 16, 2021 guilty plea to one count of representative payee fraud.
In a plea agreement, and at his guilty plea and sentencing hearings, Conner admitted that, in March 2018, the Social Security Administration (SSA) approved his application to become the representative payee for a severely disabled relative. A representative payee is a person whom the SSA entrusts to manage Social Security funds for those who cannot do so due to mental, physical, or other limitations. A doctor had diagnosed Conner’s relative with a severe mental impairment, and she also had a number of other physical health issues. In May 2019, Conner admitted his victim to a local nursing home on the false pretense that she was on Medicaid when she was not. Conner then used his victim’s social security funds for his own purposes, including at a casino, a grocery store, and for videogames, subscription services, and other bills. In March 2020, after the nursing home began asking questions about Conner’s use of his victim’s Social Security funds, Conner abruptly removed his victim from the nursing home against a doctor’s medical advice and left the nursing home with an unpaid bill in excess of $50,000. The investigation also revealed that Conner falsely underreported his household income and received an overpayment of Section 8 federal housing benefits.
Conner was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Conner was sentenced to 10 months’ imprisonment. He was ordered to make $15,499 in restitution. He must also serve a two-year term of supervised release after the prison term. There is no parole in the federal system.
Conner was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Timothy L. Vavricek and investigated by the Social Security Administration, Office of Inspector General, and Health and Human Services, Office of Inspector General.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-3027.
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Former Youth Sports Coach Pleads Guilty to Producing Child PornographyRead the Press Release
HONOLULU – Rian Harold Ishikawa, 43, of Kailua, appeared today in federal court before United States District Judge Leslie E. Kobayashi, and pleaded guilty to six counts of production of child pornography. Ishikawa was arrested on June 29, 2020, and subsequently indicted by a federal grand jury on April 1, 2021. Ishikawa’s sentencing hearing is scheduled for July 14, 2022.
During today’s hearing and in a plea agreement, Ishikawa admitted that from November 2012 to July 2015, he produced child pornography involving at least six children between the ages of nine and eleven. The children were friends of Ishikawa’s child and participants in youth sports teams coached by Ishikawa. Using a hidden cell phone, Ishikawa video-recorded each child changing clothes, showering, or drying off in a bathroom in his Kailua residence. Ishikawa also created close-up still images of the naked genitals of the video-recorded children.
Evidence of Ishikawa’s child exploitation crimes first came to the attention of his email provider in November 2019 and was subsequently reported to the National Center for Missing and Exploited Children and to Homeland Security Investigations (“HSI”), which conducted an investigation. Federal jurisdiction exists because Ishikawa used a cell phone that had been transported across state lines before its use in his crimes, and because emails Ishikawa sent to himself of the recordings and images crossed state lines by traveling through his email provider’s servers on the mainland.
Ishikawa faces imprisonment for a term between 15 and 30 years followed by supervised release for a term between 5 years and life on each count. He will also be required to pay restitution of at least $3,000 to each victim and may be fined by the Court. The plea agreement between the government and Ishikawa provides that the government will recommend a sentence of 20 years imprisonment on each count, and that the parties will jointly recommend at least 10 years of post-imprisonment supervised release.
United States Attorney Clare E. Connors stated, “Crimes targeting children, especially sexually exploitive crimes perpetrated by persons in positions of trust, threaten the overall safety of our community. These very serious offenses carry significant prison penalties and will be vigorously prosecuted by our office.”
“Mr. Ishikawa used his position as a trusted community member to commit unspeakable crimes against children,” said HSI Special Agent in Charge John F. Tobon. “Let this case be a reminder that HSI and our local law enforcement partners will work tirelessly to remove predators from our streets to keep our keiki safe.”
This case was investigated by Homeland Security Investigations. Assistant U.S. Attorney Craig S. Nolan is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section of the Department of Justice’s Criminal Division, 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.
Former Virginia Beach Business Owner Sentenced for Multi-Million Dollar Health Care Fraud SchemeRead the Press Release
NORFOLK, Va. – A former Virginia Beach business owner was sentenced today to 51 months in prison for his role in operating a durable medical equipment supply company that defrauded federal health care programs of millions of dollars.
According to court documents, in 2018 and 2019, Frank Alosa, 49, of Kentucky, and a co-conspirator operated Merchant Card Solutions, LLC d/b/a Med Brace Shop, a durable medical equipment supply company based in Virginia Beach, for the purpose of submitting false and fraudulent claims for reimbursement to Medicare, Tricare, and Virginia Medicaid. As part of the conspiracy, Alosa and the co-conspirator purchased illegal orders for unwanted and medically unnecessary durable medical equipment, such as orthotic braces, and then used those orders to fraudulently bill Medicare and the other health care programs for over $8 million in total. The orders for the medical equipment were fabricated through a third party reaching out to beneficiaries and illegally soliciting unnecessary equipment to them. The orders were then endorsed by health care practitioners who, in exchange, received illegal bribes. As a result, the equipment was issued to beneficiaries without regard for actual medical necessity and the orders were billed to their insurance programs, profiting Alosa and his co-conspirator’s company.
In connection with the scheme, Alosa concealed the co-conspirator’s role in Med Brace Shop from Medicare and others due to the co-conspirator’s criminal background, which prohibited him from serving as an owner or managing employees of the company. The methods of concealment included, among other things, creating a shell company for the purpose of making illegal payments to other entities and individuals involved in the scheme. As a result of the conspiracy, Alosa and his co-conspirator defrauded Medicare of at least $3,843,922.89, defrauded Tricare of at least $43,370.42, and defrauded Virginia Medicaid of at least $5,121.42. Alosa and his co-conspirator diverted the proceeds of the fraud for their personal use and benefit.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jason Miyares, Attorney General of Virginia; Chris Dillard, Special Agent in Charge for the Department of Defense Office of Inspector General, Defense Criminal Investigative Service’s Mid-Atlantic Field Office; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; and Maureen R. Dixon, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
Assistant U.S. Attorney Daniel Shean 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-52.
Former MTA Special Inspector Sentenced for COVID-19 Relief FraudRead the Press Release
ALBANY, NEW YORK – Sean M. Andre, age 32, of Brooklyn, New York, was sentenced today to 30 months in prison for conspiring with an Ulster County man to fraudulently obtain more than $5.6 million in government-backed loans meant for businesses struggling with the financial effects of the coronavirus pandemic.
The announcement was made by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Chief United States District Judge Glenn T. Suddaby also imposed a 2-year term of supervised release, ordered Andre to pay $1,309,754 in restitution to his victims, and ordered Andre to forfeit $32,900 in U.S. currency, the balances of six bank accounts totaling $365,613.09, and a 2019 Mercedes Benz GLS, all previously seized by the FBI.
Andre pled guilty last May to conspiring to commit bank fraud and conspiring to commit wire fraud. He admitted to helping Jean R. Lavanture obtain $4,309,581 in Paycheck Protection Program (PPP) loans between June and August 2020, by submitting fraudulent loan applications in the names of four companies that Lavanture controlled. Each loan application misrepresented the number of employees, and total payroll, that each company had, and included false tax documents that Andre created as part of the scheme. Andre was paid $157,578 for his role in the scheme.
Andre also admitted that he fraudulently obtained an additional $1,309,754 in pandemic relief loans, by submitting loan applications in the names of companies he controlled. In these loan applications, Andre lied about the number of employees, and total payroll, that his companies had.
Andre was a Special Inspector for the Metropolitan Transportation Authority (MTA), in New York City, at the time of his crimes.
Lavanture, age 49, of Saugerties, New York, was sentenced last month to 60 months in prison.
This case was investigated by the FBI, as well as Internal Revenue Service (IRS)-Criminal Investigation and the Small Business Administration, Office of Inspector General (SBA-OIG), and was prosecuted by Assistant U.S. Attorneys Michael Barnett and Joshua R. Rosenthal.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Former Dickinson, ND, Resident Sentenced to Federal Prison for Bank Fraud, Aggravated Identity Theft, and Possession of Stolen MailRead the Press Release
BISMARCK – Interim United States Attorney Nicholas W. Chase announced that U.S. District Court Judge Daniel L. Hovland sentenced Ryan Gregory Lee, Age 43, from Little Elm, Texas, to 4 years in federal prison for the charges of Bank Fraud, 18 U.S.C. §§ 1344 and 1349; Aggravated Identity Theft, 18 U.S.C. §§ 1028A, 1344 and 1349; and Possession of Stolen Mail, 18 U.S.C. § 1708. Judge Hovland also sentenced Lee to 3 years supervised release, a $700 Special Assessment and $3,477.44 in restitution.
On November 15, 2021, Lee pleaded guilty to four counts of Bank Fraud, two counts of Aggravated Identity Theft, and one count of Possession of Stolen Mail.
Investigation determined between October 2019 and May 2020, Ryan Lee stole mail and checks from residents’ mailboxes located in Dickinson, North Dakota, and later created fraudulent bank accounts utilizing residents’ personal identifying information contained. During this time frame, several Dickinson residents reported to law enforcement that they had mailed checks that did not arrive to their intended recipients. These residents reported that they had placed checks into their mailboxes, usually the night before the mail carrier came to their residences, only to learn that their checks were stolen when they saw the checks information had been altered and not used for their intended purposes. Law enforcement later identified that Lee, during multiple financial transactions, possessed and tendered the reported stolen checks. Lee altered the checks payee information, dollar amounts, and signatures and used other individuals’ personal identifying information to cash or tender these checks as payment at Wal-Mart or at banks in Dickinson. Additionally, law enforcement discovered that Lee used other individuals’ personal identifying information to conduct unlawful financial transactions and create fraudulent bank accounts for his own private gain.
"North Dakotans expect to send and receive personal mail through the United States Postal System securely, without a chance of theft," said Interim United States Attorney Nicholas W. Chase, and "the United States Attorney’s Office is committed to prosecuting those who steal mail for fraudulent purposes. I encourage North Dakota residents to closely monitor their mail to ensure they do not become targets of mail or identity theft."
"The safety and security of the U.S. Mail and its customers is core to the mission of the U.S. Postal Inspection Service. This case is a tremendous example of how local, state, and federal partners can join together to protect the integrity of the U.S. Mail and aggressively investigate those individuals who use the mail to defraud individuals or businesses of money and property," said Inspector in Charge Ruth M. Mendonça.
"We are pleased with the adjudication of this case, as both our investigators and those of the United States Postal Service invested significant time and effort into building leads and sifting through transactions," said Dickinson Police Department Police Chief Dustin D. Dassinger, "We hope this provides Lee's victims a sense of closure and serves as an example of what can be accomplished with teamwork and strong local-federal partnerships."
This case was investigated by the United States Postal Inspection Service and the Dickinson Police Department, and the case was prosecuted by the United States Attorney’s office, with Assistant United States Attorney Jonathan J. O’Konek assigned to the case.
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Former Assistant District Attorney Pleads Guilty to Conspiracy to Violate the Federal Travel ActRead the Press Release
Memphis, TN – Glenda Adams, 49, has pleaded guilty to conspiracy to violate the federal statute known as the Travel Act. Joseph C. Murphy, Jr., United States Attorney announced the guilty plea today.
According to information presented in court, between February 2017 and October 2020, Glenda Adams was an Assistant District Attorney (ADA) employed by the Shelby County District Attorney’s Office in Memphis, Tennessee. During that time, a local attorney paid Adams to provide him with law enforcement restricted information contained in traffic accident reports.
Automobile accidents occurring in the Memphis city limits were typically investigated by the Memphis Police Department (MPD). The Crash Reports generated by the MPD investigations were uploaded into a law enforcement database known as "Watson." Access to Watson was limited to law enforcement officials. Subsequently, the Crash Reports were available for purchase from the City of Memphis. Through her employment as an Assistant District Attorney, Adams had access to Watson and the Crash Reports.
In exchange for payments from the attorney, Adams would access MPD Crash Reports from the Watson system, then provide those reports to the attorney in exchange for cash payment. The local attorney would use the Crash Reports to solicit accident victims identified in the Reports and offer them legal representation.
On February 23, 2022, Adams pled guilty.
"Citizens rely on those who hold positions of public trust to execute their duties with integrity and in the best interests of the public," said Douglas M. Korneski, Special Agent in Charge of the Federal Bureau of Investigation Memphis Field Office. "The FBI will continue to work with its law enforcement partners to identify and investigate those who abuse that trust out of personal greed."
Sentencing is set for May 27, 2022, before United States District Judge Jon P. McCalla, where Adams faces up to five years in federal prison along with three years’ supervised release. There is no parole in the federal system.
This case was investigated by the Tennessee Bureau of Investigation (TBI) and the Federal Bureau of Investigation (FBI).
Assistant United States Attorney David Pritchard is prosecuting this case on behalf of the government.
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Federal Jury Says Guilty to Miami Man Who Spent A Year Distributing Child PornographyRead the Press Release
Miami, Florida – Following a three-day trial, a South Florida federal jury found 31-year-old Miami resident William Gross Jr. guilty of distributing child pornography.
According to the evidence presented at trial, Gross spent a year on a social media messenger application chatting and sharing videos and images of children being sexually abused. In the chats, Gross boasted about his sexual exploits with young girls, asked for explicit videos of young girls having sex, and sent a picture of his penis to ask if a young girl could “handle” it.
The jury found Gross guilty of seven counts of distributing child pornography. He faces a mandatory minimum sentence of five years’ imprisonment and a maximum sentence of 20 years’ imprisonment. Sentencing is set for April 27, at 2:30 p.m. before U.S. Senior District Judge Paul C. Huck.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI Miami, announced the jury’s verdict.
FBI Miami -- in particular FBI Miami’s Child Exploitation Task Force -- investigated the case, which was prosecuted by Assistant United States Attorneys Joseph Egozi and Abbie D. Waxman.
This case was brought as part of Project Safe Childhood (PSC), 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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about the Project Safe Childhood initiative and for information regarding Internet safety, please visit www.justice.gov/psc.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-20532.
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Fargo, ND, Man Sentenced to Federal Prison for a Drug Related Robbery in West Fargo Gone Bad, resulting in a Six-Year-Old Boy being Shot in the HeadRead the Press Release
FARGO – Interim United States Attorney Nicholas W. Chase announced that U.S. District Court Chief Judge Peter D. Welte sentenced CJ Jesse James Carruthers, age 20, Fargo, ND, to 10 years in federal prison for Interfere with Commerce by Threats and Violence – Hobbs Act Robbery, 18 USC § 01951 and Conspiracy to commit a Hobbs Act Robbery. Chief Judge Welte also sentenced Carruthers to 3 years’ supervised release and a $62,575.36 in restitution.
On March 22, 2021, CJ Carruthers, while robbing an alleged drug dealer in West Fargo ND, with Germond Johnson, Jr., fired his firearm striking the robbery victim’s vehicle. The robbery victim returned fire and one of the bullets travelled through the exterior wall of an adjacent house, hitting a 6-year-old child while he was lying in his bed. The 6-year-old child survived his extensive injuries as a result of being struck by the stray bullet.
Carruthers’ co-defendant, Germond Edward Johnson Jr., age 18, Fargo, ND, pleaded guilty on February 23, 2022, to One Count of Interfere with Commerce by Threats and Violence – Hobbs Act Robbery, 18 USC § 1951 and Conspiracy to commit a Hobbs Act Robbery. Sentencing is set for July 6, 2022.
"When drug offenders bring and use firearms while committing their drug and theft trade, so many law-abiding innocent people are needlessly placed at risk and in this situation, the most innocent among us was seriously hurt," said Interim U.S. Attorney Nick Chase. "This case is another great example of local and federal partners joining together to solve what can be best described as a senseless criminal act and this sentence sends a stout message that violent crime in our communities will not go undisciplined."
"This tragic case is a definitive example of why firearms do not belong in the hands of criminals," said ATF Assistant Special Agent in Charge Jon Ortiz, of the St. Paul Field Division. "A young boy nearly lost his life because of a brazen and senseless act. We hope today’s sentence brings justice to the family of the victim. We are grateful for the tireless efforts of the West Fargo Police Department on this case as well as for the U.S. Attorney’s Office in obtaining this successful prosecution."
This case was investigated by the West Fargo Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the case was prosecuted by the United States Attorney’s Office, with Assistant United States Attorney Richard Lee assigned to the case.
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Deming man accused of production of child pornographyRead the Press Release
ALBUQUERQUE, N.M. – Guillermo Rodriguez Garcia, 39, of Deming, New Mexico, made an initial appearance in federal court today facing charges of production of child pornography. Rodriguez Garcia will remain in custody pending a detention hearing scheduled for March 1.
According to a criminal complaint, on May 18, 2020, police responded to an incident relating to an accusation of sexual abuse of children. After follow-up interviews, on Jan. 26, 2021, Rodriguez Garcia was arrested on a New Mexico state charge of criminal sexual penetration of the first degree. A search of Rodriguez Garcia’s cellphone identified two videos as potential child pornography. The videos, from Aug. 26 and 27 of 2019, allegedly show Rodriguez Garcia engaging in sexual conduct with a 12-year-old victim.
A complaint is only an allegation. A defendant is considered innocent unless and until proven guilty. If convicted, Rodriguez Garcia faces a minimum of 15 years and up to 30 years in prison.
Homeland Security Investigations (HSI) investigated this case with assistance from the Deming Police Department and the 6th Judicial District Attorney’s Office. Assistant United States Attorney Marisa A. Ong is prosecuting the case.
D.C. Department of Corrections Officer Arrested for Bribery and Smuggling of ContrabandRead the Press Release
WASHINGTON—A District of Columbia Department of Corrections Officer was arrested today on charges alleging that he accepted bribes to bring prohibited items, including weapons and drugs, into the District’s Central Detention Facility (CDF).
Johnson Ayuk, 31, of Bowie, Maryland, is charged in a criminal complaint filed in the U.S. District Court for the District of Columbia with bribery and providing or possessing contraband in prison, both federal offenses. He was arrested at the CDF and made his initial appearance this afternoon before Magistrate Judge Robin M. Meriweather. He was released on high-intensity supervision pending a preliminary hearing set for March 10, 2022.
The announcement was made by U.S. Attorney Matthew M. Graves, Wayne A. Jacobs, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division, and Tom Faust, Director of the District of Columbia Department of Corrections.
According to court documents, Ayuk has been a Department of Corrections officer since April 2021, and his only assignment has been at CDF, where he is responsible for maintaining order and security of those housed in the facility. In the charging documents, he is accused of taking part in a smuggling operation in which he accepted money from the un-incarcerated girlfriend of an inmate to bring illicit materials—including knives, drugs, and cellular telephones—into the jail for distribution among inmates.
This case is being investigated by the FBI’s Washington Field Office and the D.C. Department of Corrections’ Investigative Services Branch. This case is being prosecuted by the Fraud, Public Corruption, and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia. The U.S. Marshals Service has provided valuable assistance.
A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Cuban who rammed FBI security gate admits guiltRead the Press Release
HOUSTON – A 39-year-old Cuban citizen has entered a guilty plea for illegally breaching federal security and gaining entry to the FBI building in Houston, announced U.S. Attorney Jennifer B. Lowery.
Nestor Mariano Vidal Batista pleaded guilty to willfully injuring or committing any depredation.
On June 23, 2021, Batista stole a Dodge Ram 2500 pick-up truck shortly before attempting to lodge an in-person complaint at the FBI office in Houston. Upon his arrival, security referred him to local authorities.
Batista then re-entered the truck, circled the area and tried to force entry. He sped forward and crashed the truck into the front security gates of the FBI building. Shortly thereafter, he was able to exit the truck and enter the visiting area in the lobby. Authorities then subdued him and took him into custody.
As a result of his actions, he caused $10,062.61 in damages.
Sentencing has been set for May 20 before U.S. District Judge David Hittner. At that time, Batista faces up to 10 years in prison and a possible $250,000 maximum fine.
He has been and will remain in custody pending that hearing.
The FBI conducted the investigation with the assistance of Houston Police Department. Assistant U.S. Attorney Joe Porto is prosecuting the case.
Convicted Sex Trafficker Indicted for EscapeRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jimmy Cantelmo, age 33, of Scranton, Pennsylvania, was indicted on February 23, 2022, by a federal grand jury on escape charges.
According to United States Attorney John C. Gurganus, the indictment alleges that on February 16, 2022, Cantelmo escaped from custody of the Capital Pavilion Residential Reentry Center in Dauphin County, where he was confined following his conviction of conspiracy to commit sex trafficking of a minor.
The case was investigated by the U.S. Marshals Service Fugitive Task Force. Assistant U.S. Attorney Jaime M. Keating is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
The maximum penalty under federal law for this offense is 5 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Convicted Sex Offender Sentenced to 41 Months in Federal Prison for Failing to Register as a Sex OffenderRead the Press Release
INDIANAPOLIS – Roberto Cruz-Rivera, of Indianapolis, was sentenced to 41 months in federal prison after being found guilty of failing to register as a sex offender following a federal trial.
According to court documents and evidence presented at trial, in 2000, Cruz-Rivera was arrested for a rape and assault he committed in a Staten Island, New York cemetery. During the rape he stabbed the woman’s face and chest, puncturing her lung. The rape victim was with another person at the cemetery, and Cruz-Rivera stabbed that victim in the head and hand. Cruz-Rivera was convicted of rape and assault in New York and was sentenced to 20 years in prison. As a result of these convictions, he was required to register as a sex offender wherever he lived or worked. Cruz-Rivera was released from a New York prison in 2016.
After his release from prison, Cruz-Rivera moved to Indianapolis. Between September 2017 and March 2020, Cruz-Rivera worked at multiple locations in Indianapolis, including the Indiana Convention Center, the JW Marriot, a Sheraton hotel, and Warren Township’s Hawthorne Elementary School. Cruz-Rivera never registered as a sex offender while living and working in Indiana, in violation of federal law.
“Federal and Indiana law require certain sex offenders to register with the state. Sex offender registration laws are an important tool for the protection of the public,” said U.S. Attorney Zachary A. Myers. “Offenders who choose to violate our sex offender registration laws while living and working in Indiana will be held accountable.”
“The U.S. Marshals are the lead federal agency for sex offender violations,” said Dan McClain, U.S. Marshal, Southern District of Indiana. “Protecting the public from offenders is among my top priorities and I’m pleased with the outcome of this case.”
The United States Marshals Service investigated the case. The sentence was imposed by Chief U.S. District Judge Tanya Walton-Pratt. As part of the sentence, Judge Pratt ordered that Cruz-Rivera be supervised by the U.S. Probation Office for 5 years following his release from federal prison and that he comply with sex offender registry laws.
U.S. Attorney Myers thanked Assistant U.S. Attorneys Adam Eakman and James Warden who prosecuted this case.
Convicted Felon Sentenced for Illegal Possession of a FirearmRead the Press Release
ROANOKE, Va. – DeAngelo Lewis Ramsey, 22, was sentenced this week to 47 months in federal prison for being a felon in possession of a firearm and for violating his terms of supervised release.
Ramsey was previously convicted for breaking into a federal firearms licensee through the ceiling of a neighboring business and stealing multiple firearms. As a result of his prior conviction history, Ramsey is prohibited by federal law from possessing either firearms or ammunition.
“The United States Attorney’s Office for the Western District of Virginia will always prioritize the prosecution of those who seek to obtain firearms unlawfully. This defendant – who had previously been convicted of a felony for stealing multiple firearms after breaking into a commercial business – chose to illegally obtain and use yet another firearm while on supervised release. This sentence is just punishment and serves as a perfect example of how our office continues to prioritize the public’s safety and protection within the district,” United States Attorney Christopher R. Kavanaugh said today.
According to court documents, at around 3:30 a.m. on January 7, 2021, Salem, Virginia police were called about a suspicious person in the area of Carey Avenue. A resident’s doorbell camera showed a person dressed in a jacket, ski mask, and gloves coming to the door and reaching for the handle before walking away. Responding officers noticed several interior lights on in vehicles in the neighborhood and multiple mailboxes with doors left open.
Law enforcement searched the area and located an individual that matched the description of the man on the doorbell video. He was carrying a backpack and ran down an embankment when encountered by police.
After a brief chase, officers detained the man and identified the subject as DeAngelo Ramsey. Nearby, they found gloves, a ski mask, and the backpack he was carrying, which contained several items that had been reported missing from vehicles and mailboxes. In addition, the backpack contained a Glock 23 pistol with an extended magazine and one hollow-point round of ammunition.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the United States Postal Inspection Service investigated the case, with assistance from the Salem Police Department.
Assistant U.S. Attorney Kristin B. Johnson prosecuted the case.
Clarksville Auto Dealer Charged with Bank FraudRead the Press Release
NASHVILLE – A Clarksville, Tennessee, auto dealer was charged today with bank fraud, resulting from a fraudulent scheme in which he obtained loans from several credit unions for the same vehicles, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
Andrew Oliver, 31, of Cadiz, Kentucky, the owner of First Choice Auto Sales in Clarksville, Tenn., and AJ’s Auto Sales in Hopkinsville, Kentucky, was charged in a criminal information with obtaining loans from several financial institutions on the same vehicles. The Information alleges that Oliver inflated his income on loan application documents and omitted the fact that he had already obtained loans from other financial institutions regarding the same vehicle.
Specifically, the information alleges that Oliver obtained loans totaling $215,000 from three credit unions for the purchase of the same Cadillac and obtained loans totaling $340,000 from six credit unions for the purchase of a Ford F-450. The fraudulent loans caused a total loss to the credit unions of $368,585.52.
If convicted, Oliver faces up to 30 years in prison and a $1 million fine.
The United States also seeks to forfeit any property derived from the proceeds of the crime, including a money judgement in the amount of $368,585.52.
This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Kathryn W. Booth.
The charges are merely accusations. The defendant is presumed innocent until proven guilty in a court of law.
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Chilean National Sentenced to Federal Prison for Vehicle Break-In and Credit Card Fraud SchemeRead the Press Release
BOISE – A Miami Beach, Florida man was sentenced to two years in federal prison for wire fraud stemming from his participation in a vehicle break-in scheme that victimized individuals and businesses across the country.
According to court records, from August 2020 through February 2021, Matias Ahumada‑Avendano, 31, of Miami Beach, and his co-defendant, Claudia Espinoza, 41, traveled to the Treasure Valley on multiple occasions to commit theft and fraud. They identified unoccupied vehicles parked at trailheads, broke into them, and stole credit cards belonging to the owners. Ahumada‑Avendano and Espinoza then used the victims’ credit cards to purchase gift cards and electronics from retail stores such as Target and Best Buy. Ahumada-Avendano and Espinoza were arrested on April 24, 2021 in Kent County, Michigan while breaking into a vehicle.
On November 22, 2021, Ahumada-Avendano pleaded guilty to wire fraud for his role in the scheme and was held accountable for $157,502.91 in loss for conducting this scheme in states including Florida, Kentucky, Utah, and Idaho. Senior U.S. District Judge B. Lynn Winmill also ordered Ahumada-Avendano to serve three years of supervised release to follow his prison sentence.
On January 13, 2022, Espinoza pleaded guilty to wire fraud for her participation in the same scheme. She is scheduled for sentencing before Judge Winmill on April 18, 2022.
U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the cooperative efforts of the U.S. Secret Service, Boise Police Department, officers with the Florida Fish and Wildlife Conservation Commission, Michigan State Police, and loss prevention employees from Best Buy, which led to charges.
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Chesterland Man Sentenced to Prison and Ordered to Pay Restitution for COVID-19 Relief FraudRead the Press Release
Acting U.S. Attorney Michelle M. Baeppler announced that Robert Bearden, 49, of Chesterland, Ohio, was sentenced today by U.S. District Judge Donald C. Nugent to one year in prison and ordered to pay $62,296.70 in restitution after Bearden pleaded guilty to COVID-19 relief fraud.
According to court documents, in July of 2020, Bearden devised a scheme to fraudulently obtain approximately $60,000 in Economic Injury Disaster Loans (EIDL) from the U.S. Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
As part of the scheme, Bearden submitted three fraudulent EIDL loan applications through the SBA’s online application portal, which were approved for a total of approximately $60,000 in funds disbursed. On applications Bearden submitted, he used false information about existing and non-existing businesses and the name of third parties in return for a kickback of a portion of the funds received. Bearden also used the personal identifying information of persons interested in obtaining government pandemic assistance to submit loan applications on their behalf, but directing the funds into his own account, including one of the three loans that was approved.
Acting United States Attorney Michelle M. Baeppler, FBI Special Agent in Charge Eric B. Smith and Bryant Jackson, Special Agent in Charge, IRS CI, Cincinnati Field Office made the announcement.
This case was investigated by the FBI and IRS – Criminal Investigations. This case was prosecuted by Assistant U.S. Attorneys Elliot D. Morrison and Brian M. McDonough.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the department in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Centreville Man Sentenced to 16 Years in Federal Prison for Coercion and Enticement of a MinorRead the Press Release
Baltimore, Maryland – U.S. District Judge Stephanie A. Gallagher sentenced William Tyler Beck, age 30, of Centreville, Maryland to 16 years in federal prison, followed by a lifetime of supervised release, for coercion and enticement of a minor. Judge Gallagher also ordered that, upon his release from prison, Beck must continue to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore and Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police.
According to his guilty plea, between 2014 and August 2018, Beck used internet-based communication services to coerce at least six minor females into creating and sending him sexually explicit images and videos of themselves. As part of his scheme to exploit the minors, Beck created fictitious accounts and represented himself as a 16-year old minor.
Specifically, on March 5, 2017, Beck used a cell phone and video streaming application to communicate with Jane Doe, a 9-year-old victim. Beck instructed the victim to perform sexual acts on a live stream video and threatened to call the police if she did not cooperate with his demands. As a result of Beck’s threats, Jane Doe exposed her breast, genitalia, and performed other sexual acts on an open live stream video. The live stream video was viewed by over 100 users, and some users immediately reported the conduct to law enforcement. After Jane Doe was banned from the live stream site, Beck instructed Jane Doe to change her username to “Lil Sexy Chica” to stream another video where she performed additional sexual acts. Beck also live streamed a video of himself masturbating during his communication with Jane Doe.
According to Beck’s plea agreement, from approximately 2014 to August 2017, Beck used two social media applications to communicate with minor females who identified themselves as ages 9 to 16 years of age. Beck communicated with more than 24 self-identifying minors during that time. All communications related to sex or requests for photos. During most of the conversations, Beck falsely posed as a 16-year-old or 13-year-old minor.
In at least three instances, Beck threatened to expose the victims by posting pictures, stating that he already posted pictures, or threatening to tell the victims’ parents that they were using the applications.
Beck admits that he caused or attempted to cause at least five minor females between the ages of 13 and 16 years of age to produce images, videos, or live stream videos of their exposed genitalia.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Erek L. Barron commended the HSI, the Maryland State Police, the Maryland Department of Natural Resources Police, Kent County Sheriff’s Office, the Madisonville Police Department of Kentucky, and the Queen Anne’s County Sheriff’s Office for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Paul E. Budlow who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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California man facing federal charge for interfering with a flight crewRead the Press Release
ALBUQUERQUE, N.M. – Samson Hardridge, 33, of Lancaster, California, made an initial appearance in federal court on Feb. 23 facing a charge of interference with flight crew members and attendants. Hardridge will remain in custody pending a detention hearing scheduled for Feb. 25.
According to a criminal complaint, on Feb. 18, Hardridge was a passenger on Southwest Flight 474 from Dallas to Burbank. After takeoff, Hardridge allegedly left his seat to use the lavatory at the back of the plane. A flight attendant asked Hardridge to stand in the aisle of the aircraft since the galley was too small. Hardridge allegedly had his hands in his pants and asked if the flight attendant wanted to see his penis. The flight attendant declined and again requested that Hardridge remain on the carpeted area of the aisle.
Hardridge allegedly proceeded to the door near the rear galley of the aircraft and began urinating in the corner. A second flight attendant informed Hardridge he could not urinate there and Hardridge allegedly became very hostile. Hardridge allegedly yelled and threatened the flight attendants and infringed on their personal space.
Hardridge was asked to take his seat. Out of concern for their safety as well as that of the other passengers, one of the flight attendants informed the pilot of the situation and the flight was diverted into Albuquerque.
A complaint is only an allegation. A defendant is considered innocent unless and until proven guilty. If convicted, Hardridge faces up to 20 years in prison.
The FBI Albuquerque Field Office investigated this case. Assistant United States Attorney Presiliano Torrez is prosecuting the case.
California Man Pleads Guilty to Methamphetamine TraffickingRead the Press Release
BOISE – A California man pleaded guilty to possession of methamphetamine with intent to distribute.
According to court records, on May 25, 2021, Raul Garcia, 41, of Woodland, California, was found in possession of nearly four pounds of methamphetamine during a traffic stop in Nampa. Garcia admitted to possessing the methamphetamine with the intent to distribute it to other people.
Garcia is scheduled for sentencing on May 31, 2022 and faces a statutory mandatory minimum sentence of at least ten years and a maximum sentence of life in federal prison, a ten million dollar fine, and at least five years of supervised release. A federal district court judge will determine Garcia’s sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the cooperative efforts of the Nampa Police Department and Treasure Valley Metro Violent Crimes Task Force, which led to charges. The Task Force is comprised of federal, state, and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Ada County Sheriff’s Office; Boise Police Department; Caldwell Police Department; Canyon County Sheriff’s Office; Meridian Police Department; Nampa Police Department; and Idaho Department of Correction.
This case was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit www.treasurevalleypartners.org.
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California Man Convicted of Participating in Canton Area Drug Trafficking ConspiracyRead the Press Release
Acting U.S. Attorney Michelle M. Baeppler announced that a federal jury returned guilty verdicts on Wednesday, February 23, 2022, against Defendant Alvaro Orosco, 36, of Visalia, California, following a two-day trial before U.S. District Judge Donald C. Nugent in Cleveland. Orosco was convicted of participating in a drug trafficking conspiracy that sought to distribute more than ten kilograms, or 22 pounds, of cocaine and heroin in the Canton area.
Orosco was one of 15 defendants charged in a conspiracy to bring large amounts of cocaine and heroin from Mexico and California to the Canton area between August 2016 and April 2019. According to court documents, in April of 2019, Orosco traveled from California to Cleveland, Ohio, to retrieve ten kilograms of cocaine hidden in a compartment of a vehicle shipped from California to Massillon, Ohio. Law enforcement officers with the Illinois State Police Department intercepted the vehicle and turned the drugs over to the FBI, who replaced the drugs with a fake substance and arrested Orosco when he opened the hidden compartment.
Orosco is scheduled to be sentenced on June 10, 2022.
This case was investigated by the Federal Bureau of Investigation, Canton Police Department, Illinois State Police Department, MEDWAY Drug Enforcement Agency and Massillon Police Department. This case was prosecuted by Assistant U.S. Attorney Peter E. Daly.
Bowie County Man Indicted for Trafficking Deadly FentanylRead the Press Release
TEXARKANA, Texas – A Texarkana man has been indicted for federal drug trafficking and firearms violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Darell Montrell Trotter, 32, was named in an indictment returned by a federal grand jury on Feb. 16, 2022, charging him with possessing fentanyl with intent to distribute and possessing a firearm in relation to a drug trafficking crime. Trotter made an initial appearance today before U.S. Magistrate Judge Caroline Craven.
According to the indictment, on Dec. 14, 2021, Trotter possessed more than 400 grams of fentanyl, which he intended to distribute to others. On that same day, Trotter was found in possession of a pistol, a shotgun, and a rifle in furtherance of his drug trafficking.
If convicted, Trotter faces from 15 years to life in federal prison.
This prosecution 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.
This case is being investigated by the U.S. Drug Enforcement Administration; the Texarkana, Texas Police Department; Texarkana, Arkansas, Police Department; the Texas Department of Public Safety; and the U.S. Postal Inspection Service. This case is being prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Boston Drug Trafficker Pleads Guilty to Cocaine Trafficking and Firearms OffenseRead the Press Release
BOSTON – A Boston drug trafficker pleaded guilty on Thursday, Feb. 17, 2022, to his role in a cocaine trafficking conspiracy.
Hassan Monroe, 38, of Quincy, pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 500 grams or more of cocaine and 28 grams or more of cocaine base and one count of being a felon in possession of a firearm and ammunition. U.S. District Court Judge Richard G. Stearns scheduled sentencing for June 22, 2022.
In June 2020, Monroe was charged along with 23 others as part of Operation Snowfall. According to the charging documents, beginning in November 2018, law enforcement conducted an investigation into drug trafficking activities by Boston-based street gang members and associates in the Commonwealth Development in Brighton, formerly known as Fidelis Way, a multi-apartment public housing development. It is alleged that the defendants, through their drug trafficking activities, assumed control over multiple apartments, where they stored, cooked, packaged and sold drugs. As a result, their activities caused a blight of the development and reduced the quality of life of the other residents.
The investigation also targeted large-scale drug suppliers and their associates. It is alleged that the targets continued to distribute cocaine and cocaine base throughout the COVID-19 pandemic and shutdown. Monroe is the ninth defendant to plead guilty in the case.
Monroe was a significant drug supplier and distributor within the drug conspiracy. Monroe purchased and distributed wholesale quantities of cocaine and is estimated to have distributed over one kilogram of cocaine and 200 grams of cocaine base. During the investigation, a search of a “stash house” associated with Monroe recovered over 400 grams of cocaine, six firearms and multiple rounds of ammunition. 250 grams of cocaine and a loaded firearm were recovered from Monroe’s car and a subsequent search of Monroe’s residence recovered cocaine and two loaded firearms.
The charge of conspiracy to distribute and to possess with intent to distribute 500 grams or more of cocaine and 28 grams or more of cocaine base provides for a mandatory minimum sentence of five years up to 40 years in prison, at least four years and up to a lifetime of supervised release and a fine of up to $5 million. The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $ 250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
First Assistant United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Douglas Bartlett, Acting U.S. Marshal for the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Boston Police Acting Commissioner Gregory Long made the announcement. Assistance with the investigation was provided by the Braintree, Cambridge, Canton, Randolph and Weymouth Police Departments; the Suffolk, Norfolk and Bristol County District Attorneys’ Offices; and the Suffolk, Plymouth and Norfolk County Sheriffs’ Office. Assistant U.S. Attorneys Kaitlin R. O’Donnell and Timothy E. Moran of the Organized Crime & Gang Unit are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Boise Man Sentenced to 4 Years for Methamphetamine DistributionRead the Press Release
BOISE – A Boise man was sentenced to 48 months in federal prison for distribution of methamphetamine.
According to court records, Jason Lee Gentry, 43, of Boise, sold another person methamphetamine on four different occasions. On December 2, 2020, he sold 10.45 grams of methamphetamine; on December 7, 2020, he sold 27.45 grams of methamphetamine; on February 2, 2021, he sold 28.05 grams of methamphetamine; and on February 10, 2021, he sold 28.05 grams of methamphetamine. On March 24, 2021, officers with the Idaho Department of Correction Probation and Parole conducted a search of Gentry’s home. When officers entered the premises, they discovered 30 grams of methamphetamine, a digital scale, and plastic packaging materials commonly used to weigh and package drugs for distribution.
Gentry has prior state convictions in both Ada County and Valley County for possession of a controlled substance with intent to deliver and injury to child.
Senior U.S. District Judge B. Lynn Winmill also order Gentry to serve four years of supervised release following his prison sentence. Gentry pleaded guilty to the charge on September 13, 2021.
U.S. Attorney Rafael M. Gonzalez Jr., of the District of Idaho made the announcement and applauded the efforts of the Idaho State Police, Boise Police Department, Idaho Department of Correction Probation and Parole, and the Ada County Prosecuting Attorney’s Office, which led to the charges.
This case was prosecuted by the Special Assistant United States Attorney hired by the Ada County Prosecuting Attorney’s Office with funds provided by the High Intensity Drug Trafficking Areas (HIDTA) program. HIDTA is part of the Office of National Drug Control Policy (ONDCP) created by Congress with the Anti-Drug Abuse Act of 1988. It provides assistance to federal, state, and local law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States. Idaho is part of the Oregon-Idaho HIDTA. The Idaho HIDTA is a collaboration of local, multi-jurisdictional law enforcement drug task forces, and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada, Canyon, Bannock, Kootenai, and Malheur Counties.
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Bergen County Man Sentenced to 42 Months in Prison for Stealing more than $8.2 Million Worth of HIV MedicationRead the Press Release
NEWARK, N.J. – A Bergen County man was sentenced today to 42 months in prison for role in a scheme to steal prescription HIV medication from the Department of Veterans Affairs, U.S. Attorney Philip R. Sellinger announced.
Wagner Checonolasco, aka “Wanny,” 34, of Lyndhurst, New Jersey, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with conspiring to steal government property. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From August 2017 through Nov. 20, 2019, Checonolasco conspired with Lisa M. Hoffman and others to steal HIV medication belonging to the U.S. Department of Veterans Affairs. Hoffman allegedly stole the medication from the pharmacy of her employer, the Veterans Affairs Medical Center (VAMC) in East Orange, New Jersey, and then sold the stolen medication to Checonolasco for cash. Hoffman used her position as a procurement official at the VAMC to order large quantities of HIV prescription medications so that she could steal the excess medication and then sell it to Checonolasco, who then resold it for a profit. Checonolasco and Hoffman stole approximately $8.2 million worth of HIV medication belonging to the VAMC.
In addition to the prison term, Judge Salas sentenced Checolonasco to three years of supervised release and ordered restitution of $8.2 million.
Hoffman, 48, of Orange, New Jersey, previously pleaded guilty to her role in the scheme and is scheduled to be sentenced on March 9, 2022.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and the U.S. Department of Veterans Affairs Office of Inspector General, Northeast Field Office, under the direction of Special Agent in Charge Christopher F. Algieri, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Nicole F. Mastropieri of the Health Care Fraud Unit in Newark.
Belton Man Charged with Illegal Firearms After Police PursuitRead the Press Release
KANSAS CITY, Mo. – A Belton, Missouri, man who caused an accident while fleeing from a police helicopter, then ran from police officers through the backyards of a residential neighborhood before being apprehended, was charged in federal court today with illegally possessing firearms.
Jonathon M. Pentlin, 24, was charged with one count of being a felon in possession of firearms in a complaint filed in the U.S. District Court in Kansas City, Mo. Pentlin remains in federal custody pending a detention hearing, which has not yet been scheduled.
According to an affidavit filed in support of today’s federal criminal complaint, a police helicopter was following the stolen 2015 Ford Focus, which Pentlin was driving, from Belton to a Phillips 66 gas station at 5151 E. Red Bridge Road in Kansas City, Mo., on Wednesday, Feb. 23. Law enforcement officers were conducting surveillance on Pentlin and another person as part of an ongoing investigation into a residential burglary in which multiple firearms were stolen. The passenger got out of the Focus and into another vehicle at the gas station. Pentlin continued driving the stolen Focus westbound on Red Bridge Road.
As the helicopter followed the Focus, the affidavit says, Pentlin began driving at a high speed. The Focus was involved in an accident in the area of 107th Terrace and Grandview Road in Kansas City, Mo. Pentlin got out of the vehicle and ran westbound through backyards. A Kansas City police sergeant who got out of his vehicle in an attempt to apprehend Pentlin saw that Pentlin was armed with a handgun as he was running through the backyards.
Additional officers arrived and located Pentlin in the backyard of a residence on E. 107th Terrace. Officers ordered Pentlin to get on the ground, the affidavit says, but he refused to follow their commands and continued to act erratically. Pentlin balled up his fists and assumed a fighting posture while stating, “I’m going to kill you all.”
A Kansas City police officer shot Pentlin with a taser and he fell on his back. While on the ground, Pentlin continued to resist arrest and tried to kick officers. While taking Pentlin into custody, he bit an officer on the right thigh, which caused an open wound with bruising and swelling. While officers waited for EMS to arrive, the affidavit says, Pentlin continuously slammed his head into the grass and attempted to bite several officers’ hands and fingers. Pentlin was transported to a local hospital by EMS.
An ATF agent with a police dog searched the area and found two firearms, a loaded Glock 9mm semi-automatic handgun and a loaded Beretta 9mm semi-automatic handgun, under the deck of a residence. Officers also found two plastic baggies that contained approximately 4.03 grams of methamphetamine, ammunition, and drug paraphernalia in the stolen Focus Pentlin was driving.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Pentlin has prior felony convictions for tampering with a motor vehicle and for possessing and distributing illegal drugs.
The charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Byron Black. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
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.
Bell County Man Sentenced to 300 Months for Production of Child PornographyRead the Press Release
LONDON, Ky. – Daniel Randall Ramsey-Greene, 27, of Middlesboro, Kentucky, was sentenced Tuesday, to 300 months in federal prison, by U.S. District Judge Claria Horn Boom, for production of child pornography.
According to his plea agreement and sentencing hearing, while a foster parent, Ramsey-Greene setup a wireless camera in the bathroom of his residence, to capture videos and images of his foster child’s genitals. Ramsey-Greene then saved these images to his cell phone. In April of 2020, Ramsey-Greene also made the victim smoke marijuana. Thereafter, Ramsey-Greene sexually molested the young boy. The victim’s mother informed the Middlesboro Police Department of the abuse.
Law enforcement removed the victim from Ramsey-Greene’s custody and seized Ramey-Greene’s cellular phone and wireless camera system. The Kentucky State Police (KSP) Electronic Crimes Branch performed a forensic analysis of Ramsey-Greene’s electronics, which revealed that Ramsey-Greene produced sexually explicit images of another minor, who was another foster child that Ramsey-Greene ultimately adopted. Electronic evidence and forensic interviews revealed that Ramsey-Greene produced pornographic images of both boys between September of 2019 and April of 2020.
The Court applied numerous sentencing enhancements, based on evidence of his engaging in sex acts with a minor, being a parent or guardian of the victims, and being a repeat and dangerous sex offender against minors. Ramsey-Greene entered his guilty plea, to two counts of production of child pornography, on June 8, 2021. Under federal law, Ramsey-Greene must serve 85 percent of his prison sentence; and upon his release from prison, he will be under the supervision of the U.S. Probation Office for Life.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent in Charge, Federal Bureau of Investigation (FBI) Louisville Division; Col. Phillip Burnette, Jr., Commissioner of the Kentucky State Police, and Michael Orr, Middlesboro Police Chief, jointly announced the sentence.
This case was prosecuted 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 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.
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Bank Robber Found Guilty Following Federal TrialRead the Press Release
Miami, Florida – A Miami federal jury found David Franklin Lee, 60, of Miami, guilty of attempted bank robbery, following a three-day trial, before U.S. District Judge Marcia G. Cooke.
According to the evidence admitted at trial, on November 17, 2020, Lee entered a Bank of America branch, located on Washington Avenue in Miami Beach. Lee passed a handwritten note to the bank teller, demanding all the money in the bank. Upon receiving the note, the teller activated the bank’s silent alarm and retreated to a back room. Police arrived on the scene and arrested Lee.
U.S. District Judge Marcia G. Cooke will sentence Lee on May 4, at 10:00 a.m., in Miami. Lee faces up to 20 years in federal prison.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; and Richard Clements, Chief, Miami Beach Police Department, made the announcement.
FBI Miami and the Miami Beach Police Department investigated this case. AUSA Stacey Bergstrom prosecuted it.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-20034.
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