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23 February 2022
Long Island Man Pleads Guilty to Mailing Threatening Letters to LGBTQ+ Affiliated IndividualsRead the Press Release
Earlier today, in federal court in Central Islip, Robert Fehring pleaded guilty before United States District Judge Joanna Seybert to mailing more than 20 letters threatening to assault, shoot, and bomb LGBTQ+ affiliated individuals, organizations and businesses. When sentenced, Fehring faces up to five years’ imprisonment.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Rodney K. Harrison, Commissioner, Suffolk County Police Department (SCPD), announced the guilty plea.
“In pleading guilty today, the defendant admits that he sent hate-filled communications that threatened mass shootings, bombings and other fatal attacks, to members of the LGBTQ+ community,” stated United States Attorney Peace. “This Office will use all of its available law enforcement tools to protect the safety and civil rights of the LGBTQ+ community and every other community. We will not tolerate hateful threats intended to invoke fear and division, and we will hold accountable those who make or act on such threats.”
Mr. Peace also expressed his gratitude to the Suffolk County District Attorney’s Office for their assistance in the investigation.
“Today’s guilty plea further highlights Fehring’s intentions, and underscores the FBI’s commitment to vigorously investigating civil rights violations. Anonymous threats against members of our community will eventually be uncovered, and those who are responsible for them will be held accountable,” stated FBI Assistant Director-in-Charge Driscoll.
“We have absolutely no tolerance for hate incidents of any kind here in Suffolk County and I hope that this guilty plea gives peace of mind to both the victims and the entire LGBTQ+ community,” stated SCPD Commissioner Harrison. “Our department remains laser focused on holding individuals who carry out acts of hate accountable and I thank all of our law enforcement partners who helped bring quick closure to this case.”
As set forth in the court filings and today’s proceeding, from at least 2013 to 2021, Fehring sent letters threatening violence to individuals associated with the LGBTQ+ community. In those letters, Fehring threatened to use firearms and explosives against the recipients. One such letter threatened that there would “be radio-cont[r]olled devices placed at numerous strategic places” at the 2021 New York City Pride March with “firepower” that would “make the 2016 Orlando Pulse Nightclub shooting look like a cakewalk,” referencing the 2016 attack in which 49 persons were killed and dozens wounded at Pulse, a gay nightclub in Orlando, Florida. Fehring also sent a threatening letter to the owner of a barbershop affiliated with the LGTBQ+ community in Brooklyn, New York, which stated, in part, “your shop is the perfect place for a bombing . . . or beating the scum that frequents your den of [expletive] into a bloody pool of steaming flesh.” Fehring mailed dozens of additional threatening letters to individuals, businesses, and elected officials associated with the LGBTQ+ community.
On November 18, 2021, the FBI’s Civil Rights Squad and the New York Joint Terrorism Task Force executed a search warrant at Fehring’s home in Bayport and recovered copies of letters containing threats, supplies used to mail threatening letters, 20 LGBTQ+ related Pride flags that appeared identical to flags stolen from flagpoles in Sayville in July 2021, and reconnaissance-style photographs from a June 2021 Pride event in East Meadow. Law enforcement officers also recovered electronic devices owned by Fehring that contained internet searches for Fehring’s victims and related LGBTQ+ affiliated individual, events, and businesses. Law enforcement officers also recovered from Fehring’s residence two loaded shotguns, hundreds of rounds of ammunition, two stun guns, and a stamped envelope addressed to an LGBTQ+ affiliated attorney containing the remains of a dead bird.
The government’s case is being handled by the Office’s National Security and Cybercrime Section, Civil Rights Section, and Long Island Criminal Division. Assistant United States Attorneys Francisco J. Navarro, Rachel A. Bennek, and Andrew P. Wenzel are in charge of the prosecution.
The Defendant:
ROBERT FEHRING
Age: 74
Bayport, New YorkE.D.N.Y. Docket No. 22-CR-059 (JS)
Lead defendant sentenced to 12 years in prison for invading homes of Dayton-area drug dealersRead the Press Release
DAYTON, Ohio – A Columbus, Ohio, man was sentenced in federal court today to 144 months in prison for his role in multiple home invasions that took place in the greater Dayton region.
Kieran Chandre Furness, 28, was sentenced for conspiring to violate the Hobbs Act with four co-defendants, and brandishing a firearm during a crime of violence.
According to court documents, the defendants conspired to commit at least four home invasions of Dayton-area drug dealers.
The co-conspirators took part in armed robberies of purported drug dealers to steal their illicit drug inventories and cash proceeds derived from prior drug dealing. The co-conspirators also stole vehicles, jewelry, clothing, shoes and firearms.
During January 2019, Furness and others forced entry into various residences in Dayton, Trotwood and Harrison Township. While inside the homes, defendants bound up the ankles and wrists of adult and child occupants, forcing them to lie face down on the floor, and brandishing firearms towards them.
Furness was the final defendant to be sentenced in the case. His co-defendants received the following sentences:
- Dreshaun Alexander Thomas – 97 months in prison;
- William Anthony-Lee Baylor – 72 months in prison;
- James Ralph Jackson III – 60 months in prison; and
- Eric Sterling Brown II – 48 months in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Roland H. Herndon, Jr., Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); Montgomery County Sheriff Rob Streck and Trotwood Police Chief Erik Wilson announced the sentence imposed today by Senior U.S. District Judge Thomas M. Rose. Assistant United States Attorneys Dwight K. Keller and Ryan A. Saunders are representing the United States in this case.
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Latrobe Man Sentenced for Supplying Meth to Pagans-Affiliated Drug OrganizationRead the Press Release
PITTSBURGH, PA – A former resident of Westmoreland County, Pennsylvania, was sentenced on charges of violating federal narcotics trafficking laws, United States Attorney Cindy K. Chung announced today.
Alan Masecar, 35, of Latrobe, and currently incarcerated at Allegheny County Jail, was sentenced to 51 months imprisonment, followed by three years supervised release by District Judge Robert J. Colville.
In conjunction with the sentencing hearing, the Court was informed that The Greater Pittsburgh Safe Streets Task Force, led by the Federal Bureau of Investigation, conducted a long-term investigation into drug-trafficking activity occurring in the Western District of Pennsylvania. Law enforcement identified several individuals, suspected at the time, of illegally distributing controlled substances, including methamphetamine in Allegheny, Westmoreland, Erie, Fayette, and Washington Counties.
Investigators identified Masecar, aka Max, as a methamphetamine source of supply for among others, co-defendant Zachary Miller, who is a former member of the Jeannette Chapter of the Pagans Motorcycle Club. Miller was sentenced earlier this year to 10 years’ imprisonment.
In December of 2019, Postal Inspectors with United States Postal Inspection Service (USPIS) seized a package addressed to Masecar, containing methamphetamine. USPIS conducted a search of Masecar’s residence and located numerous items indicative of drug trafficking. Notwithstanding this encounter, Masecar continued to engage in illegal drug trafficking, coordinating additional methamphetamine transactions with Miller and continuing to obtain packages in the mail that contained methamphetamine. Investigators also identified communications between Miller and Masecar via Facebook messenger, wherein they discussed their continued efforts to obtain large quantities of methamphetamine.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
United States Attorney Chung commended the Federal Bureau of Investigation, the United States Postal Inspection Service, Drug Enforcement Administration, Allegheny County Sheriff’s Office, Pennsylvania State Police, and Pennsylvania Office of Attorney General Bureau of Narcotics Investigations, for the investigation leading to the successful prosecution of Masecar.
This sentencing was the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Kissimmee Man Sentenced to 18 Months for Tax FraudRead the Press Release
Orlando, FL – U.S. District Judge Wendy W. Berger has sentenced Marcos Antonio Tejeda to 18 months in federal prison for preparing false tax returns for himself and others. Tejeda had pleaded guilty on December 7, 2021.
According to court documents, Tejeda owned and operated a tax preparation and accounting business. Tejeda provided personal and business accounting and tax preparation services for “S.M.” in 2016, 2017, and 2018. As a part of these services, Tejeda maintained a business bank account into which S.M. deposited money for estimated tax payments to the IRS. In 2016 and 2017, Tejeda prepared a 1040 tax return for S.M. Each year Tejeda prepared two versions of the same tax return, one he claimed was accurate, and one he knew was false. The accurate tax return included the estimated tax payments S.M. made and was predominately correct. This first version in both 2016 and 2017 also showed that S.M. owed money in addition to the money he had paid in estimated tax payments. Tejeda then created a second, fraudulent tax return for tax years 2016 and 2017. The fraudulent tax returns were filed with the IRS. These fraudulent returns misrepresented S.M.’s business gross receipts, capital gains, gross income, adjusted gross income, and other statutory adjustments under the provisions of the Internal Revenue laws to fraudulently decrease the amount of taxes owed.
Tejeda then embezzled the money that S.M. had provided for estimated tax payments and to pay the taxes that S.M. believed were owed based on the first version of the tax return created by Tejeda. In total, Tejeda embezzled $120,329.46 from S.M.
Additionally, Tejeda did not report a substantial amount of his income on his personal or business taxes. As such, the amount of income that should have been reported on his Individual Tax Return for 2017 was an amount substantially more than the amount Tejeda had reported.
“We are in tax filing season, and those who might consider preparing false tax returns should be aware of the consequences as evidenced today,” said IRS Criminal Investigation Special Agent in Charge Brian Payne. “The sentencing of Tejada emphasizes that the IRS will continue our aggressive pursuit of those who attempt to defraud America’s tax system.”
This case was investigated by The Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney Amanda Daniels.
Kalamazoo Man Sentenced to 23 Years in Prison for Methamphetamine Trafficking and Firearms PossessionRead the Press Release
GRAND RAPIDS, MICHIGAN — United States Attorney Andrew Birge announced that Maurice Schanta Carson (50) of Kalamazoo, Michigan was sentenced to 23 years in prison for possession with intent to distribute over a pound of methamphetamine and possession of a firearm in furtherance of drug trafficking. A repeat offender in Kalamazoo, Carson pled guilty to these charges in October 2021.
Carson’s charges and conviction stemmed from his arrest on outstanding warrants in Kalamazoo County on February 3, 2021. Inside Carson’s vehicle, investigators found a backpack containing over a pound of methamphetamine, a digital scale, and a loaded pistol. At the time of his arrest, Carson was serving a probationary sentence issued in 2020 by the Ninth Circuit Court in Kalamazoo County for possession of methamphetamine. A search warrant of Carson’s residence later that day yielded more methamphetamine, more firearms, and cash from drug trafficking. Law enforcement had to rearrest Carson on February 10, 2021 where, again, he was found in possession of approximately a pound of methamphetamine and a rifle. Carson was lodged in Kalamazoo County on local charges but made bond. Thereafter, he was charged by federal indictment and detained in federal custody pending resolution of his federal charges. In the months preceding his arrest, the Kalamazoo Valley Enforcement Team investigated Carson as a pound-level distributor of methamphetamine in and around Kalamazoo.
“Methamphetamine is a scourge in the Western District of Michigan” and “firearms and drugs are a toxic mix,” stated U.S. District Judge Paul L. Maloney when announcing Carson’s sentence. Judge Maloney observed that methamphetamine is the most frequent drug at issue in the narcotics cases that he sentences. When imposing Carson’s 23-year sentence, Judge Maloney further noted that Carson had a criminal history that began at the age of sixteen, that Carson had the highest criminal history possible under the U.S. Sentencing Guidelines, and that Carson was a threat to the law-abiding public.
“Methamphetamine has flooded Western Michigan; it is the narcotic that my office charges the most,” stated U.S. Attorney Andrew Birge. “Law enforcement agencies are working together in West Michigan out of a commitment to bring traffickers contributing to this scourge to justice – and those who traffic in this highly addictive, ruinous substance should know that they face lengthy prison terms as a consequence,” added U.S. Attorney Birge.
“This investigation demonstrates DEA’s steadfast determination to reduce drug trafficking and the associated violent crime that affects the Kalamazoo area,” said Kent R. Kleinshmidt, Acting Special Agent in Charge of the U.S. Drug Enforcement Administration’s Detroit Field Division. “We are proud to partner with Kalamazoo Department of Public Safety and the Kalamazoo Valley Enforcement Team to take guns and drugs off the streets with the intent of making our communities safer for all.”
“The Kalamazoo Department of Public Safety stands steadfast with the community to address narcotics sales and the associated crimes that stem from them to improve the overall quality of life in our city,” said Captain Rafael Diaz, Commander of the Kalamazoo Valley Enforcement Team. “It is unfortunate when individuals choose a life of crime even after being given multiple opportunities to change their life for the better. In such cases, the Kalamazoo Department of Public Safety partners with our local, state, and federal law enforcement counterparts, including the U.S. Attorney’s Office for the Western District of Michigan and the U.S. Drug Enforcement Administration to hold individuals accountable to the fullest extent of the law,” added Captain Diaz.
This case was investigated by the U.S. Drug Enforcement Administration, the Bureau of Alcohol, Tobacco and Firearms, and the Kalamazoo Valley Enforcement Team, a narcotics task force operating in Kalamazoo County. The case was prosecuted by Assistant U.S. Attorney Joel S. Fauson.
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KC Man Charged in Foiled Independence Restaurant RobberyRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man whose failed attempt to rob an Independence, Missouri, restaurant was thwarted when employees wrestled him and took away his gun was charged in federal court today.
Bryan C. Byers, 23, was charged in a three-count criminal complaint filed in the U.S. District Court in Kansas City, Mo.
Today’s criminal complaint charges Byers with one count of armed robbery, one count of using a firearm during a crime of violence, and one count of being a felon in possession of ammunition.
According to an affidavit filed in support of today’s federal criminal complaint, Byers robbed Lucky Buffet, 2931 S. Noland Road in Independence, at approximately 9:30 p.m. Monday, Feb. 21. Byers, armed with a Glock handgun, approached two restaurant employees who were working near the sushi station in the restaurant. Byers allegedly pointed the gun at them and told them they had five seconds to give him the cash from the cash register or he would kill them. The employees opened the register drawer, the affidavit says, and Byers began taking money from the register. Both employees attacked Byers and took the gun from him. Byers was restrained until police arrived.
Byers, who was on the ground in the vestibule of the restaurant, was arrested and transported to a local hospital for medical treatment. Police officers found approximately $873 scattered on the floor of the restaurant.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Byers was on probation for the felony crimes of armed robbery and stealing a motor vehicle at the time of the alleged offense.
The charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Byron H. Black. It was investigated by the Independence, 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.
KC Gun Store Owner Pleads Guilty to Selling Machinegun ComponentsRead the Press Release
KANSAS CITY, Mo. – The owner of a Kansas City, Missouri, gun store pleaded guilty in federal court today to selling components to convert firearms into machine guns, which he marketed on his website as “cell phone holders.”
Charles Lee Weston, 37, of Kansas City, Mo., waived his right to a grand jury and pleaded guilty before U.S. District Judge Greg Kays to a federal information that charges him with one count of illegally possessing a machinegun.
Weston, a federal firearms licensee, is the owner of Drum Magazines, LLC, at 4015 Sterling Avenue in Kansas City, Mo.
According to today’s plea agreement, a special agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives identified a website operated by Weston that was selling multiple items believed to be machineguns. Those items included a drop in auto-sear, which is intended to convert an AR-15 type firearm into a fully automatic firearm. Because the conversion devices were each a part designed and intended solely and exclusively for use in converting a weapon into a machinegun, each device is considered a machinegun under federal law.
The device, however, was being marketed on the website as a “cell phone holder.” An undercover agent purchased the set of two devices online for $149.99.
An undercover agent visited Drum Magazines on Aug. 4, 2021. The undercover agent asked Weston if he had any “cell phone holders.” Weston retrieved two swift link auto sears (capable of quickly converting semi-automatic AR-type rifles to fully automatic) from the back of the store and gave them to the undercover agent. The agent asked Weston if the devices would work in 300 BLK or just .223-caliber. Weston replied, “Every caliber. It’s more of a trigger setup. As long as your mil-spec trigger. But ya, it’ll work. You got me answering questions correctly.” Weston, acknowledging that he had actually described the true purpose of the device, laughed and said, “The proper answer would be ‘Whatever phone you got, sir.’” Weston again laughed and then stated, “You the first one that got me to answer the question like that. I’m tired.” Weston added, “I hate this (expletive) country and the (expletive) laws they have.” The undercover agent paid Weston $324.82 for the two devices and one extended magazine and left the business.
On Aug. 26, 2021, law enforcement officers executed a search warrant at Drum Magazines and at Weston’s residence. Officers seized a box that contained Glock full auto switches and instructions and a piece of a suspected 3D printed auto sear.
Under federal statutes, Weston is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Brad K. Kavanaugh. It was investigated by 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.
Jury convicts former Columbus vice officer of civil rights violationRead the Press Release
COLUMBUS, Ohio – A federal jury has convicted a former Columbus vice officer with conspiring to violate an individual’s constitutional rights.
The verdict was announced yesterday evening following a trial that began on Feb. 14 before U.S. District Judge Sarah D. Morrison.
Steven G. Rosser, 45, of Delaware, was employed with the Columbus Division of Police for 19 years and assigned as a detective in CPD’s vice unit from April 2013 until October 2018.
According to court documents and trial testimony, in 2018, Rosser and others conspired to deprive one of the owners of the Dollhouse, a gentlemen’s club on Karl Court, of his civil rights by seizing and searching him and his vehicle without probable cause in violation of the Fourth Amendment to the U.S. Constitution. At trial, the government presented evidence that Rosser was part of a scheme to frame the victim for cocaine possession.
Rosser was indicted by a federal grand jury and arrested in March 2020.
Conspiracy to violate a person’s civil rights is punishable by up to 10 years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Columbus Police Chief Elaine Bryant; Ohio Attorney General Dave Yost; Ohio Bureau of Criminal Investigation (BCI) Superintendent Joseph Morbitzer; and Ohio Auditor of State Keith Faber announced the verdict.
Assistant United States Attorneys Kevin W. Kelley and Noah R. Litton are representing the United States in this case. The case was investigated by the FBI’s Southern Ohio Public Corruption Task Force, which includes special agents and officers from the FBI, Ohio Attorney General’s BCI, the Ohio Auditor of State’s Office and the Columbus Division of Police.
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Jury Finds Leader of Fort Myers Drug Trafficking Organization Guilty of Killing an FBI InformantRead the Press Release
Tampa, Florida –United States Attorney Roger B. Handberg announces that a federal jury has found Robert Lee Ward (53, Fort Myers) guilty of conspiracy to distribute over five kilograms of cocaine and of tampering with an informant by killing. Ward faces a mandatory penalty of life in federal prison. His sentencing hearing has not yet been set. Ward had been indicted on November 27, 2018.
According to evidence and testimony presented at trial, Ward was the leader of a drug trafficking organization in Fort Myers that distributed cocaine in Fort Myers and other locations for more than a decade until Ward’s arrest in 2018. Ward and his co-conspirators routinely purchased kilograms of cocaine from Ward’s supplier in Miami and distributed the drugs in Fort Myers and Panama City. Federal investigators used confidential informants (CIs) to make multiple purchases of cocaine from Ward’s co-conspirators. A CI who had purchased cocaine from Ward was relocated by investigators after they learned of a threat against the CI’s life.
In 2012, the FBI obtained the assistance of Kristopher Smith, a member of Ward’s organization, who agreed to cooperate in the investigation against Ward. After learning about Smith’s cooperation with investigators, Ward solicited James Broomfield to kill Smith. Broomfield agreed to kill Smith in exchange for $30,000. Ward provided Broomfield with a loaded firearm and told him where to locate Smith. On January 7, 2013, Broomfield and another individual followed Smith and his girlfriend as they drove to their son’s school in Fort Myers. Smith remained in the vehicle while his girlfriend entered the school to deliver lunch to their son, who attended first grade at the school. Broomfield and his accomplice parked their vehicle behind the CI’s car and Broomfield ran up to the car and shot Smith several times, killing him.
In February 2014, investigators obtained a search warrant for a storage unit in Tampa that Ward had rented. Investigators seized more than $200,000 in cash hidden inside the storage unit.
This case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Lee County Sheriff’s Office, the Fort Myers Police Department, the Florida Department of Law Enforcement, the Panama City Police Department, the Bay County Sheriff’s Office, and the Tampa Police Department. It is being prosecuted by Assistant United States Attorneys Michael Sinacore and Candace Rich.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Investigation into Sale of Methamphetamine in Sabine Parish Leads to Federal Prison Time for Many, LA ManRead the Press Release
SHREVEPORT, La. - Samuel Holbert Brumfield a/k/a “Sammy B,” 35, of Many, Louisiana, has been sentenced by United States District Judge Donald E. Walter, United States Attorney Brandon B. Brown announced. Brumfield was sentenced to 70 months in prison, followed by 3 years of supervised release, on drug trafficking charges.
An indictment was returned by a federal grand jury on June 16, 2021 charging Brumfield with three counts of distribution of methamphetamine and one count of possession with intent to distribute methamphetamine. Brumfield pleaded guilty to a charge of distribution of methamphetamine on September 28, 2021.
According to evidence presented to the court at the guilty plea hearing, law enforcement agents with the Federal Bureau of Investigation (FBI) began an investigation in early 2021 in connection with the trafficking of methamphetamine in the Sabine Parish, Louisiana area. Agents were able to identify Brumfield as the individual who sold approximately 58 grams of methamphetamine to another individual in the Sabine Parish area on April 26, 2021. The methamphetamine that was purchased from Brumfield was seized and taken to the crime lab where it was tested and confirmed to be methamphetamine.
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney J. Aaron Crawford.
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Identity Thief Sentenced to 45 Months in Prison for Fraud, Possession of Stolen Mail and Identity TheftRead the Press Release
TALLAHASSEE, FLORIDA – Kristopher Blake Hill, 40, of Tallahassee, Florida, was sentenced to 45 months in federal prison after previously pleading guilty to charges of bank fraud, identity fraud, access device fraud, possession of stolen mail, and aggravated identity theft. Jason R. Coody, United States Attorney for the Northern District of Florida announced the sentence.
“Our citizens and their personal identifying information are the constant targets of devious criminals who would rather steal than earn an honest living,” said U.S. Attorney Coody. “With our law enforcement partners, we remain committed to vigorously identifying and prosecuting those individuals who steal the identities of others and use that identifying information to fraudulently obtain money to which they are not entitled.”
Court documents reflect that between July 1, 2020, and December 4, 2020, Hill passed multiple counterfeit checks at grocery stores and retail stores in Tallahassee, Florida, Crawfordville, Florida, and in the state of Georgia. Hill was subsequently arrested at a hotel in Tallahassee where he was found in possession of stolen mail, stolen checks, and counterfeit checks. The investigation revealed that Hill used the stolen checks to create counterfeit checks that he fraudulently passed as genuine financial instruments. Additionally, a search of Hill’s computer revealed numerous fraudulent Georgia Driver’s Licenses, each bearing Hill’s own image, name, and the names of other individuals. Hill’s computer also contained personal identification information of third parties, to include more than 100 genuine social security numbers.
“Postal Inspectors will continue the long tradition of protecting the sanctity of the U.S. Mail system and protect our customers,” said Joseph Cronin, Inspector in Charge, United States Postal Inspection Service - Miami Division.
Hill’s imprisonment will be followed by three years of supervised release. The court ordered Hill to pay restitution to Capital City Bank, SunTrust Bank, and Thomasville National Bank. As part of the sentence imposed, the Court ordered the forfeiture of Hill’s computer and cell phones, 14 Georgia Driver Licenses, 30 blank plastic cards, 101 fraudulent and blank checks, and currency.
This case was jointly investigated by the United States Postal Inspection Service, Leon County Sheriff’s Office, Wakulla County Sheriff’s Office, and the Thomas County (Georgia) Sheriff’s Office. Assistant United States Attorneys Justin M. Keen and Kaitlin Weiss prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Husband and Wife Plead Guilty to False Statement to an Agency of the United States, Tax Evasion, and Bankruptcy FraudRead the Press Release
DETROIT - A Dearborn, Michigan husband and wife were arraigned yesterday on charges of false statement to an agency of the United States, tax evasion, and bankruptcy fraud, U.S. Attorney Dawn N. Ison announced today. On the same day, both individuals pleaded guilty before Judge Laurie J. Michelson.
Ison was joined in the announcement by Sarah Kull, Special Agent in Charge of the Internal Revenue Service Criminal Investigation Division, Joshua Hauxhurst, Acting Special Agent in Charge of the Federal Bureau of Investigation, and U.S. Department of Agriculture, Office of Inspector General, Acting Special Agent-in-Charge Salvador Gonzalez.
Abraham Elsaghir, 52, pleaded guilty to one count of false statement to an agency of the United States, one count of federal income tax evasion, and one count of bankruptcy fraud. Samar Elsaghir, 51, pleaded guilty to one count of false statement to an agency of the United States and one count of federal income tax evasion.
According to the information and the plea agreements, in May 2017, Abraham and Samar Elsaghir filed a voluntary Chapter 7 petition in bankruptcy, and they received a discharge of their debts in August 2017. As the plea agreement acknowledges, however, the Elsaghirs made false declarations in their bankruptcy petition, by both failing to report and underreporting their income. During the same time period, the Elsaghirs made similar false statements to both the I.R.S. on their 2016 tax return and to the U.S. Department of Agriculture in order to receive Supplemental Nutritional Assistance Program (SNAP) benefits, commonly known as food stamps. In the plea agreements, the Elsaghirs agreed that, from 2014-2020, they had received nearly $60,000 in SNAP benefits they were not entitled to receive, and that they, in fact, owed the I.R.S. an additional $70,000 for tax calendar years 2014-2018. Abraham Elsaghir also agreed he owed and to pay over $166,000 to unsecured creditors in the bankruptcy case.
“We have seen an unprecedented number of people commit fraud on government programs. This case involved multiples layers of deception – lying to the bankruptcy court, the I.R.S., and the U.S.D.A. This conduct will not be tolerated, and individuals who make false statements to exploit resources intended for those most in need will be vigorously investigated and prosecuted.”
“Working with our law enforcement counterparts and the U.S. Attorney’s Office to pursue and prosecute individuals who repeatedly make false statements to government agencies helps ensure the integrity of government processes,” said Josh Hauxhurst, Acting Special Agent in Charge of the FBI’s Detroit Division. “This investigation sends the message that those who lie to federal investigators and commit fraud in the process will be held accountable.”
“The Elsaghir’s plea serves as an important reminder that Federal income tax compliance should be equally shared among all Americans,” said Special Agent in Charge Sarah Kull, IRS Criminal Investigation, Detroit Field Office. Conspiring to defraud the government with a scheme to underreport taxable income and to steal money meant for low income families is unlawful and shameful.”
U.S. Department of Agriculture, Office of Inspector General, Acting Special Agent-in-Charge Salvador Gonzalez said, “The Supplemental Nutrition Assistance Program (SNAP) was created to provide food and nutrition to those who truly need this assistance. Those who are involved in fraud and abuse of SNAP and other USDA programs will be aggressively pursued by our office. Our joint investigation in this investigation helps brings to justice individuals who sought to profit from the SNAP program through illegal schemes. The USDA Office of Inspector General will continue to dedicate resources and work with our local law enforcement partners in order to protect the integrity of this and other USDA programs and to pursue prosecution of those who commit fraud.”
Sentencing of both Abraham Elsaghir and Samar Elsaghir has been set for June 23, 2022, before Judge Laurie J. Michelson in the Eastern District of Michigan. Each defendant faces a maximum penalty of 5 years in prison. Judge Michelson will determine each sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The investigation of this case was jointly conducted by Special Agents of the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation, and the United States Department of Agriculture Office of Inspector General – Investigations, and prosecuted by Assistant U.S. Attorney Patrick E. Corbett and Special Assistant U.S. Attorney Richard A. Roble.
Human Smuggler Sentenced for Transporting and Harboring over 100 Undocumented NoncitizensRead the Press Release
TUCSON, Ariz. – Amalia Gonzalez-Lara, 43, of Oaxaca, Mexico, was sentenced yesterday by U.S. District Judge Raner C. Collins to 21 months in federal prison followed by three years of supervised release.
Gonzalez-Lara pleaded guilty on November 18, 2021 to one count of conspiring to transport and harbor over 100 illegal aliens for profit. Gonzalez-Lara managed, supervised, and coordinated smuggling operations for a stash house located in Avondale, Arizona. On January 12, 2021, law enforcement agents located 20 undocumented citizens, all nationals of Mexico or Guatemala, inside the residence. Over the course of the conspiracy, the house was used to conceal large numbers of noncitizens who had been smuggled across the U.S.-Mexico border into Arizona and transported to the Phoenix area.
Co-conspirator Sergio Vazquez-Flores, 46, who operated the stash house on behalf of Gonzalez-Lara, will be sentenced on March 15, 2022.
Homeland Security Investigations – Nogales Office, with assistance from United States Border Patrol, conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution.
The U.S. Attorney’s Office for the District of Arizona is part of Joint Task Force Alpha (JTFA), which was established by Attorney General Merrick B. Garland in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security (DHS), to enhance U.S. enforcement efforts against the most prolific and dangerous human smuggling and trafficking groups operating in Mexico, Guatemala, El Salvador, and Honduras. The Task Force focuses on disrupting and dismantling smuggling and trafficking networks that abuse, exploit, or endanger migrants, pose national security threats, and are involved in organized crime. JTFA consists of federal prosecutors and attorneys from U.S. Attorney’s Offices along the Southwest Border (District of Arizona, Southern District of California, Southern District of Texas, and Western District of Texas), from the Criminal Division and the Civil Rights Division, along with law enforcement agents and analysts from DHS’s Immigration and Customs Enforcement and Customs and Border Protection. The FBI and the Drug Enforcement Administration are also part of the Task Force.
CASE NUMBER: CR-21-0613-TUC-RCC-JR
RELEASE NUMBER: 2022-016_Gonzalez-Lara# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Hotel Manager and Owner Both Plead Guilty in Tax InvestigationRead the Press Release
A former Clare, Michigan, hotel manager pleaded guilty today to filing a false tax return. His father, the owner of the hotel, also pleaded guilty to witness tampering in an effort to obstruct the grand jury’s investigation of his son.
According to court documents, Harold Walls, 58, managed the day-to-day operations of a Clare hotel, which his father, Karl Walls, 86, owned. Harold Walls did not report to the IRS any of the income he received from working at the hotel from 2013 through 2017. Rather than pay himself wages directly through the hotel’s payroll system, Harold Walls paid himself by other means, including by writing checks to himself from the hotel operating account and using a hotel bank account to pay for personal expenses.
Harold Walls also provided false and incomplete information to the hotel’s tax return preparer for 2012 through 2017, resulting in the hotel’s business income being understated. Specifically, Harold Walls did not disclose to the tax return preparer that the hotel had 11 “off-book” rooms that were not tracked in the hotel’s reservation system. Harold Walls also provided the return preparer documents that overstated the amount of property taxes the hotel had paid to the City of Clare.
After the IRS began its investigation, Harold Walls obstructed the investigation by instructing a hotel employee to make false statements to the IRS about the nature and extent of his work at the hotel. He also denied to IRS special agents that he was employed at the hotel.
Karl Walls also obstructed the investigation of his son by directing two witnesses to lie to the grand jury. In October 2018, two days before a former hotel employee was scheduled to provide grand jury testimony, Karl Walls instructed the employee to testify that Harold Walls did not work at the hotel. Karl Walls also attempted to convince his tax return preparer to make a similar false statement to the grand jury about his son’s employment status.
Both sentencings are scheduled for a later date. Harold Walls faces a maximum penalty of three years in prison for filing a false tax return, and Karl Walls faces a maximum penalty of 20 years in prison for witness tampering. Both men also face a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement and thanked the U.S. Attorney’s Office for the Eastern District of Michigan for providing substantial assistance in this matter.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Melissa S. Siskind and Sam Bean of the Tax Division are prosecuting the case.
Hopkins Man Sentenced to Prison for Tax EvasionRead the Press Release
MINNEAPOLIS – A Hopkins man has been sentenced to 27 months in prison followed by three years of supervised release and $336,040.45 in restitution for tax evasion after failing to file income tax returns since 1997. Acting U.S. Attorney Charles J. Kovats made the announcement after U.S. District Judge Susan Richard Nelson sentenced the defendant.
As proven at trial, between 1987 and 2017, Daniel Berglund, 64, was the owner and sole employee of Faith Software (FAITH) where he worked as a computer language instructor. Despite earning a substantial income annually through FAITH, Berglund did not file any individual income tax returns since 1997, and never once filed a corporate tax return of any kind on behalf of FAITH. Proving that he was well aware of his tax obligations, Berglund took numerous steps to hide his income from the IRS, including giving his FAITH clients a fabricated Tax Identification Number to prevent their payments from being reported to the IRS as income attributable to him, depositing clients’ payments into accounts where the funds would not be traceable to him, and converting his income into silver that he stashed in concealed locations in his home. Berglund’s evasion resulted in a total tax debt of approximately $336,040.45.
On October 8, 2021, Berglund was convicted by a federal jury on four counts of tax evasion.
This case was the result of an investigation conducted by the IRS Criminal Investigation Division with the assistance of IRS Field Collections.
This case was prosecuted by Assistant U.S. Attorneys Matthew S. Ebert and Kimberly A. Svendsen.
Heart Butte man who shot up house, injuring three on Fort Belknap Indian Reservation sentenced to more than six years in prisonRead the Press Release
GREAT FALLS – A Heart Butte man who admitted to shooting up a house with a hunting rifle and wounding three of the occupants on the Fort Belknap Indian Reservation was sentenced today to six years and six months in prison to be followed by three years of supervised release, U.S. Attorney Leif M. Johnson said.
David Eugene Wing, 44, pleaded guilty in October 2021 to a superseding information charging him with assault with a dangerous weapon and with carrying a firearm in commission of a crime of violence.
Chief U.S. District Judge Brian M. Morris presided.
In court documents filed in the case, the government alleged that on Jan. 1, 2020, during a New Year’s Eve party at a Lodge Pole residence, on the Fort Belknap Indian Reservation, Wing was involved in a fight with multiple individuals after he slapped an individual, identified as Jane Doe. Wing left the party intoxicated and angry and drove to a nearby residence where he retrieved a 22-250 caliber hunting rifle. Individuals at the party warned everyone there that Wing likely would return with a gun for revenge. Wing drove back to the residence and fired three or four rounds into the residence with intent to harm Jane Doe and others he felt had attacked him. Shrapnel struck and injured Jane Doe, a minor child and another individual, identified as Jane Doe 2.
Assistant U.S. Attorney Jared C. Cobell prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, FBI and the Fort Belknap Police Department.
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Hamden Psychiatric Practice and its Owner Pay $310K for Employing "Excluded" IndividualRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, today announced that GERIATRIC & ADULT PSYCHIATRY, LLC, (“GAP”) and its owner, ALAN SIEGAL, M.D., have entered into a civil settlement agreement with the federal and state governments to resolve allegations that they improperly employed an individual who was excluded from all federal healthcare programs. GAP is a medical practice located in Hamden.
To resolve their liability under the federal and state False Claims Acts, GAP and Siegal will pay $310,874.
In 2006, Eric Ressner, a physician, was convicted in the Southern District of Florida of conspiracy to commit health care fraud. As a result of his conviction, he was excluded from all federal health care programs.
When the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG) excludes an individual or entity from federal health care programs, no program payments may be made for items or services furnished by that excluded individual or entity. In September 1999, HHS-OIG issued a Special Advisory Bulletin in order to provide guidance to health care providers who might employ or contract with an excluded individual or entity. In May 2013, HHS-OIG issued an Updated Special Advisor Bulletin containing additional guidance. Both the original and updated Special Advisory Bulletins advised that, in order to avoid potential liability, health care providers should check the List of Excluded Individuals/Entities on the HHS-OIG web site: http://oig.hhs.gov/exclusions
In February 2016, GAP and Siegal hired Ressner to be the clinical director at GAP. Ressner served in that position until June 2021. During that time, GAP and Siegal billed and sought reimbursements from federal healthcare programs, including Medicare, Medicaid, TRICARE and the Railroad Retirement Medicare Program. A portion of the reimbursements that GAP and Siegal received were used to pay Ressner’s salary and benefits.
This matter was investigated by the Office of Inspector General for the Department of Health and Human Services. The case is being prosecuted by Assistant U.S. Attorney Richard M. Molot and Assistant Attorney General Greggory O’Connell of the Connecticut Office of the Attorney General.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Fraud Task Force at (203) 777-6311.
Great Falls woman admits to trafficking methamphetamineRead the Press Release
GREAT FALLS — A Great Falls woman suspected of traveling to Las Vegas, Nevada, to obtain methamphetamine for distribution admitted to a trafficking charge today, U.S. Attorney Leif M. Johnson said.
Lillian Marie Lapier, 45, pleaded guilty to a superseding information charging her with possession with intent to distribute meth. Lapier faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Chief Judge Morris set sentencing for May 26. Lapier was detained pending further proceedings.
The government alleged in court documents that in May 2021, agents with the Russell Country Drug Task Force executed a search warrant on a Great Falls residence, recovered meth and learned that the source of supply was Lapier, who was traveling to Great Falls with meth. The investigation led to a Helena residence of co-defendant, Rhonda Lapier, also known as Rhonda Trench, where Rhonda Lapier and Lillian Lapier were suspected of trafficking meth together. After observing vehicles arrive and depart the residence, law enforcement stopped a suspect vehicle driven by Lillian Lapier and found cash and about 3.6 pounds of actual meth in the trunk. Lillian Lapier told law enforcement that she and Rhonda Lapier had left Las Vegas, Nevada, together after re-suppling with meth from a California-based supplier. Lillian Lapier also told officers she had been getting about two pounds of meth every week to a week and a half for the past three to four months. Officers found about three pounds of meth at the Helena evidence. The six pounds of meth seized is the equivalent of 21,744 doses. Rhonda Lapier was sentenced to more than five years in prison for conviction in the case. A third co-defendant, Ashley Nicole Rico, is pending sentencing for her conviction in the case.
Assistant U.S. Attorney Ethan R. Plaut is prosecuting the case, which was investigated by the Russell Country Drug Task Force, the Missouri River Drug Task Force, FBI, Great Falls Police Department Cascade County Sheriff’s Office and Lewis and Clark County Sheriff’s Office.
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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Government Contractor Agrees to Pay Record $48.5 Million to Resolve Claims Related to Fraudulent Procurement of Small Business Contracts Intended for Service-Disabled VeteransRead the Press Release
ALBANY, NEW YORK – TriMark USA, LLC of Mansfield, Massachusetts, has agreed to pay $48.5 million to resolve allegations that its subsidiaries, TriMark Gill Marketing and Gill Group, Inc. (collectively, TriMark), improperly manipulated federal small business set-aside contracts around the country, announced Carla B. Freedman, the United States Attorney for the Northern District of New York, and Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington. A former TriMark executive in charge of the company’s government business, Kimberley Rimsza of Phoenix, Arizona, has agreed to pay an additional $100,000 as an individual civil penalty for her conduct in connection with the scheme. The settlement constitutes the largest-ever False Claims Act recovery based on allegations of small business contracting fraud.
“TriMark and one of its former top executives are paying a steep price for obtaining contracts intended for service-disabled veterans,” said United States Attorney Freedman. “This settlement demonstrates the federal government’s commitment to ensuring the integrity of its business partners, and the serious consequences for depriving legitimate small businesses of the opportunities that the government has allocated to them.”
Federal government contracts may be reserved, or “set aside,” for various categories of small businesses, such that only eligible small businesses in a particular socioeconomic category are eligible to bid on, receive, and perform the contracts. One such category is a service-disabled, veteran-owned small business (SDVOSB), which is reserved for small businesses owned, controlled, and operated by veterans of the United States military who incurred a disability in the course of their military service to the United States.
TriMark provides kitchen and food service equipment to government customers around the world, including in the Northern District of New York and the Eastern District of Washington. As part of the Settlement Agreement, TriMark and Rimsza admitted to and accepted responsibility for their conduct in connection with set-aside contracts that, because of their actions, resulted in federal agencies improperly awarding government set-aside contracts between 2011 and 2021 to three small businesses with which TriMark worked, identified in the Settlement Agreement as “Company 1,” “Company 2,” and “Company 3” (the “small businesses”).
TriMark and Rimsza admitted that their conduct caused federal agencies to award set-aside contracts to the small businesses in violation of federal regulations designed to encourage contract awards to legitimate small businesses and SDVOSBs. TriMark and Rimsza further admitted that when set-aside contracts were awarded by federal agencies to the small businesses, it was typically TriMark Gill Marketing, rather than the small business, that performed substantially all the work, while the small business merely served as the face of the contract, billing the government for the work, and using its small business status to obtain the set-aside contracts.
As part of the Settlement Agreement, TriMark admitted that TriMark Gill Marketing identified federal set-aside contract opportunities for the small businesses to bid on using their set-aside status; instructed them regarding how to prepare their bids and what prices to propose; “ghostwrote” emails for those companies to send to government officials to make it appear as though the small businesses were performing work that TriMark Gill Marketing was performing; and affirmatively concealed TriMark Gill Marketing’s involvement in the contract. TriMark and Rimsza further admitted that one of the small businesses expressed concern more than a decade ago that their business arrangement violated the law and would subject both companies to liability under the False Claims Act, after which a TriMark Gill Marketing official responded that she had spoken with Rimsza about the concerns, and told the individual to “calm down and enjoy your weekend.”
With regard to one of the small businesses, TriMark admitted that certain TriMark Gill Marketing employees had access to and used that company’s email accounts in order to conduct business with the government on behalf of the small business; that TriMark Gill Marketing assisted it in obtaining federal contracts to supply goods that, in reality, TriMark Gill Marketing was providing; that at least one TriMark Gill Marketing employee posed as a representative of the small business when communicating with the government; that TriMark Gill Marketing allowed the small business to use its office space and equipment; and that TriMark considered the small business “an extension” and “affiliate” of TriMark.
TriMark, which has fully cooperated in the United States’ investigation, also represented in the Settlement Agreement that it has taken “comprehensive measures and implemented enhanced controls” to prevent the recurrence of similar conduct, including personnel changes, and implementing revised compliance procedures and training programs.
“This case demonstrates a shocking disregard for fair competition, small business rules, and integrity in government contracting,” said United States Attorney Waldref. “We insisted that both TriMark and former company executive Kimberley Rimsza admit and accept responsibility for their conduct, which included improperly obtaining contracts that were meant for legitimate small businesses, and affirmatively concealing TriMark’s role in the sham contracts. The fact that the money they were stealing was intended for service-disabled veterans is simply unconscionable. Conduct of this kind is antithetical to a safe and strong Eastern Washington.”
“The Department of Veterans Affairs Office of Inspector General is committed to identifying and stopping those individuals who misappropriate an opportunity meant solely for our nation’s veterans with disabilities,” said Inspector General Michael J. Missal. “I want to recognize Special Agent in Charge Christopher Algieri of our Northeast Field Office and Special Agent in Charge Jason Root of our Northwestern Field Office for their leadership on this investigation. We appreciate the exhaustive efforts of our law enforcement partners and both U.S. Attorney’s Offices in this collaborative effort.”
“Investigating corrupt schemes that undermine the integrity of Department of Defense (DoD) procurement is a top priority for the DoD Office of Inspector General’s Defense Criminal Investigative Service (DCIS),” stated Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office. “Today’s announcement demonstrates our commitment to work with the Department of Justice and our law enforcement partners to ensure that the contracting process for legitimate small businesses remains fair and competitive.”
“We will continue working with our law enforcement partners to root out small business contracting fraud,” said General Services Administration Inspector General Carol Ochoa. “I appreciate the hard work of the team on this case.”
“When contractors abuse set-aside programs and divert opportunities to themselves, they are undermining the acquisition process and taking business away from legitimate companies. The Air Force Office of Special Investigations, our joint investigative partners, and DOJ work vigorously to protect the Department of Defense’s procurement process and ensure wrongdoers are held accountable,” said Special Agent Paul W. Wachsmuth, Air Force Office of Special Investigations Procurement Fraud Director.
“The settlement in this matter demonstrates the excellent results achieved through the combined efforts of federal agencies to uncover and forcefully respond to procurement fraud that unconscionably deprives legitimate small businesses of important procurement opportunities,” said the Small Business Administration’s General Counsel, Peggy Delinois Hamilton. “The federal government is strongly committed to identifying and aggressively pursuing instances of fraud perpetrated by those participating in SBA’s procurement programs. We commend the hard work of all those in law enforcement who successfully prosecuted this case.”
The case began in May 2019, when a whistleblower, a company known as Fox Unlimited Enterprises, LLP, filed a qui tam complaint under seal in the U.S. District Court for the Northern District of New York. When a whistleblower, or “relator,” files a qui tam complaint, the False Claims Act requires the United States to investigate the allegations and elect whether to intervene and take over the action or to decline to intervene and allow the relator to go forward with the litigation on behalf of the United States. The relator is generally able to then share in any recovery. In this case, the United States intervened in the action in December 2021, and subsequently reached this settlement. Pursuant to the Settlement Agreement, the relator will receive $10,912,500 of the settlement amount paid by TriMark.
The settlement was the result of a joint investigation conducted by the U.S. Attorney’s Office for the Northern District of New York; the U.S. Attorney’s Office for the Eastern District of Washington; the U.S. Department of Veterans Affairs Office of Inspector General, Spokane and Buffalo Resident Agencies; the Defense Criminal Investigative Service, Syracuse Post of Duty; the General Services Administration Office of Inspector General, New York Field Investigations Office; the Department of Homeland Security Office of Inspector General, New York Field Office; the Air Force Office of Special Investigations, Procurement Fraud Detachment 6 Rome, New York; the U.S. Army Criminal Investigative Division, Syracuse Fraud Branch Office; and the Small Business Administration, Office of Inspector General, Seattle Field Office. Assistant United States Attorneys Adam J. Katz of the Northern District of New York and Dan Fruchter and Tyler H.L. Tornabene of the Eastern District of Washington handled this matter on behalf of the United States.
Case No. 1:19-cv-914 (N.D.N.Y.)
Government Contractor Agrees to Pay Record $48.5 Million to Resolve Claims Related to Fraudulent Procurement of Small Business Contracts Intended for Service-Disabled VeteransRead the Press Release
Spokane, Washington – TriMark USA, LLC of Mansfield, Massachusetts, has agreed to pay $48.5 million to resolve allegations that its subsidiaries, TriMark Gill Marketing and TriMark Gill Group, Inc. (collectively, TriMark), improperly manipulated federal small business set-aside contracts around the country, announced Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, and Carla B. Freedman, the United States Attorney for the Northern District of New York. A former TriMark executive in charge of the company’s government business, Kimberley Rimsza of Phoenix, Arizona, has agreed to pay an additional $100,000 as an individual civil penalty for her conduct in connection with the scheme. The settlement constitutes the largest-ever False Claims Act recovery based on allegations of small business contracting fraud.
“This case demonstrates a shocking disregard for fair competition, small business rules, and integrity in government contracting,” said United States Attorney Waldref. “We insisted that both TriMark and former company executive Kimberley Rimsza admit and accept responsibility for their conduct, which included improperly obtaining contracts that were meant for legitimate small businesses, and affirmatively concealing TriMark’s role in the sham contracts. The fact that the money they were stealing was intended for service-disabled veterans is simply unconscionable. Conduct of this kind is antithetical to a safe and strong Eastern Washington.”
Federal government contracts may be reserved, or “set aside,” for various categories of small businesses, such that only eligible small businesses in a particular socioeconomic category are eligible to bid on, receive, and perform the contracts. One such category is a service-disabled, veteran-owned small business (SDVOSB), which is reserved for small businesses owned, controlled, and operated by veterans of the United States military who incurred a disability in the course of their military service to the United States.
TriMark provides kitchen and food service equipment to government customers around the world, including in the Eastern District of Washington and the Northern District of New York. As part of the Settlement Agreement, TriMark and Rimsza admitted to and accepted responsibility for their conduct in connection with set-aside contracts that, because of their
actions, resulted in federal agencies improperly awarding government set-aside contracts between 2011 and 2021 to three small businesses with which TriMark worked, identified in the Settlement Agreement as “Company 1,” “Company 2,” and “Company 3” (the “small businesses”).
TriMark and Rimsza admitted that their conduct caused federal agencies to award set-aside contracts to the small businesses in violation of federal regulations designed to encourage contract awards to legitimate small businesses and SDVOSBs. TriMark and Rimsza further admitted that when set-aside contracts were awarded by federal agencies to the small businesses, it was typically TriMark Gill Marketing, rather than the small business, that performed substantially all the work, while the small business merely served as the face of the contract, billing the government for the work, and using its small business status to obtain the set-aside contracts.
As part of the Settlement Agreement, TriMark admitted that TriMark Gill Marketing identified federal set-aside contract opportunities for the small businesses to bid on using their set-aside status; instructed them regarding how to prepare their bids and what prices to propose; and “ghostwrote” emails for those companies to send to government officials to make it appear as though the small businesses were performing work that TriMark Gill Marketing was performing. TriMark and Rimsza further admitted that one of the small businesses expressed concern more than a decade ago that their business arrangement violated the law and would subject both companies to liability under the False Claims Act, after which a TriMark Gill Marketing employee responded that she had spoken with Rimsza about the concerns, and told the individual to “calm down and enjoy your weekend.”
With regard to one of the small businesses, TriMark admitted that TriMark certain Gill Marketing employees had access to and used that company’s email accounts in order to conduct business with the government on behalf of the small business; that TriMark Gill Marketing assisted it in obtaining federal contracts to supply goods that, in reality, TriMark Gill Marketing was providing; that at least one TriMark Gill Marketing employee posed as a representative of the small business when communicating with the government; that TriMark Gill Marketing allowed the small business to use its office space and equipment; and that TriMark considered the small business “an extension” and “affiliate” of TriMark.
TriMark, which has fully cooperated in the United States’ investigation, also represented in the Settlement Agreement that it has taken “comprehensive measures and implemented enhanced controls” to prevent the recurrence of similar conduct, including personnel changes, and implementing revised compliance procedures and training programs.
United States Attorney Waldref condemned TriMark’s decision to enrich itself by fraudulently obtaining tens of millions of dollars in contracts: “While TriMark’s conduct is appalling, I must nevertheless commend TriMark’s ultimate decision to step up, accept responsibility for its conduct, and cooperate in the United States’ investigation and prosecution of this matter. I am particularly grateful for the exceptional work performed by the investigative team, and for the close partnership between our office, the Northern District of New York, and the whistleblowers and their legal team. This result demonstrates what we can accomplish when we all work together. We will continue to work closely with our law enforcement partners and with courageous whistleblowers to hold accountable those who take advantage of public trust and misuse small business subcontracting programs, and to foster safe and strong communities with robust small business growth and competition.”
“TriMark and one of its former top executives are paying a steep price for obtaining contracts intended for service-disabled veterans,” said United States Attorney Freedman. “This settlement demonstrates the federal government’s commitment to ensuring the integrity of its business partners, and the serious consequences for depriving legitimate small businesses of the opportunities that the government has allocated to them.”
“The Department of Veterans Affairs Office of Inspector General is committed to identifying and stopping those individuals who misappropriate an opportunity meant solely for our nation’s veterans with disabilities,” said Inspector General Michael J. Missal. “I want to recognize Special Agent in Charge Christopher Algieri of our Northeast Field Office and Special Agent in Charge Jason Root of our Northwestern Field Office for their leadership on this investigation. We appreciate the exhaustive efforts of our law enforcement partners and both U.S. Attorney’s Offices in this collaborative effort.”
“Investigating corrupt schemes that undermine the integrity of Department of Defense (DoD) procurement is a top priority for the DoD Office of Inspector General’s Defense Criminal Investigative Service (DCIS),” stated Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office. “Today’s announcement demonstrates our commitment to work with the Department of Justice and our law enforcement partners to ensure that the contracting process for legitimate small businesses remains fair and competitive.”
“We will continue working with our law enforcement partners to root out small business contracting fraud,” said General Services Administration Inspector General Carol Ochoa. “I appreciate the hard work of the team on this case.”
“When contractors abuse set-aside program and divert opportunities to themselves, they are undermining the acquisition process and taking business away from legitimate companies. The Air Force Office of Special Investigations, our joint investigative partners, and DOJ work vigorously to protect the Department of Defense’s procurement process and ensure wrongdoers are held accountable,” said Special Agent Paul W. Wachsmuth, Air Force Office of Special Investigations Procurement Fraud Director.
“The settlement in this matter demonstrates the excellent results achieved through the combined efforts of federal agencies to uncover and forcefully respond to procurement fraud that unconscionably deprives legitimate small businesses of important procurement opportunities,” said the Small Business Administration’s General Counsel, Peggy Delinois Hamilton. “The federal government is strongly committed to identifying and aggressively pursuing instances of fraud perpetrated by those participating in SBA’s procurement programs. We commend the hard work of all those in law enforcement who successfully prosecuted this case.”
According to court documents, the case began in May 2019, when a whistleblower, a company known as Fox Unlimited Enterprises, LLP, filed a qui tam complaint under seal in the U.S. District Court for the Northern District of New York. When a whistleblower, or “relator,” files a qui tam complaint, the False Claims Act requires the United States to investigate the allegations and elect whether to intervene and take over the action or to decline to intervene and allow the relator to go forward with the litigation on behalf of the United States. The relator is generally able to then share in any recovery. In this case, according to court documents, the United States intervened in the action in December 2021, and reached this settlement following the United States’ intervention. Pursuant to the settlement agreement, the relator will receive $10,912,500 of the settlement amount paid by TriMark.
The settlement was the result of a joint investigation conducted by the U.S. Attorney’s Office for the Eastern District of Washington; the U.S. Attorney’s Office for the Northern District of New York; the U.S. Department of Veterans Affairs Office of Inspector General, Spokane and Buffalo Resident Agencies; the Defense Criminal Investigative Service, Syracuse Post of Duty; the General Services Administration Office of Inspector General, New York Field Investigations Office; the Department of Homeland Security Office of Inspector General, New York Field Office; the Air Force Office of Special Investigations, Procurement Fraud Detachment 6, Rome, New York; the U.S. Army Criminal Investigative Division, Syracuse Fraud Branch Office; and the Small Business Administration, Office of Inspector General, Seattle Field Office. Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene of the Eastern District of Washington and Adam J. Katz of the Northern District of New York handled this matter on behalf of the United States.
Trimark-Rimsza Settlement Agreement Fully ExecutedGonzales Man Sentenced to 100 Months in Federal Prison for Gun and Drug ChargesRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced that U.S. District Judge Brian A. Jackson sentenced Jon Paul Cook, Jr., age 42, of Gonzales, Louisiana, to 100 months in federal prison following his convictions for possession with the intent to distribute heroin and methamphetamine, and possession of a firearm by a convicted felon. The Court further sentenced Cook to serve three years of supervised release following his term of imprisonment and ordered that the firearm involved be forfeited.
According to admissions made as part of his guilty plea, on April 12, 2021, Cook possessed with the intent to distribute heroin and methamphetamine. He also possessed a loaded Bryco Arms, Model J-22, .22 caliber pistol. Specifically, that evening at Cook’s residence on Palmer Road in Gonzales, Louisiana, Cook sold the .22 caliber pistol and the narcotics.
Prior to possessing the firearm, Cook was convicted of two drug-related felonies including possession of heroin and cocaine in the 19th Judicial District Court of Louisiana in 2019, and possession of hydrocodone and amphetamine in the 18th Judicial District Court of Louisiana in 2018.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Ascension Parish Sheriff’s Office. It was prosecuted by Assistant United States Attorney Jessica M.P. Thornhill.
Gastonia Man Is Sentenced to 30 Years for Drug and Gun ChargesRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Max O. Cogburn Jr. has sentenced Marcus Isaiah Curry, 39, of Gastonia, N.C., to 360 months in prison and eight years of supervised release on drug trafficking and firearms charges, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert R. Wells, Special Agent in Charge of the FBI in Charlotte, and Chief Travis Brittain of the Gastonia Police Department (GPD) join U.S. Attorney King in making today’s announcement.
According to filed court documents, evidence presented at Curry’s trial and yesterday’s sentencing hearing, law enforcement determined that Curry engaged in drug trafficking activities in and around Gastonia. On March 5, 2020, FBI agents and GPD officers executed a search warrant at Curry’s residence and seized crack cocaine, powder cocaine, various chemicals and other supplies consistent with converting cocaine into crack cocaine and $1,800 in drug proceeds. Court records show that law enforcement also recovered from the residence two firearms, including an assault pistol loaded with an extended high-capacity magazine, a .45 caliber handgun capable of firing shotgun shells, and a 100-round capacity ammunition drum loaded with 76 rounds. Curry has multiple prior felony convictions and he is prohibited from possessing firearms or ammunition. According to witness testimony, in addition to engaging in drug trafficking activities, law enforcement determined that Curry was planning to intimidate a witness.
On January 22, 2021, a federal jury convicted Curry of four counts of distribution of crack cocaine, possession with intent to distribute cocaine and crack cocaine, possession of firearms in furtherance of drug trafficking, and possession of firearms by a convicted felon. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked the FBI and GPD for their investigative work on this case.
Assistant U.S. Attorney Steven R. Kaufman, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Former State Attorney Pleads Guilty to Bribery and Extortion as Part of Conspiracy with Defense Attorney, as Well as Wire Fraud and Filing False Tax ReturnsRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Jeffrey Siegmeister (53, Live Oak) has pleaded guilty to four felonies pursuant to a plea agreement. Specifically, he pleaded guilty to conspiracy to use a facility of commerce for unlawful activity—specifically, bribery and extortion—conspiracy to commit extortion, wire fraud, and filing a false tax return. Siegmeister faces a maximum penalty of 20 years in federal prison for conspiring to commit extortion and wire fraud, 5 years in federal prison for conspiring to use a facility of commerce for bribery and extortion, and 3 years in federal prison for filing a false tax return. Siegmeister also agreed to forfeit $518,803.50 and 7,372 shares of The Coca-Cola Company common stock, proceeds he obtained through his commission of the offenses.
According to court documents, Siegmeister was the elected State Attorney for the Third Judicial Circuit of Florida from 2013 through 2019, and Marion Michael O’Steen was a defense attorney who represented clients being prosecuted by Siegmeister’s office. Florida’s Third Judicial Circuit encompasses Columbia, Dixie, Hamilton, Lafayette, Madison, Suwannee, and Taylor counties. As part of the conspiracy to use a facility of commerce for unlawful activity, between approximately November 2017 and May 16, 2019, O’Steen requested official acts from Siegmeister—including the favorable disposition of charges filed against his clients and the delay of official actions in order to enable O’Steen to obtain additional “fees” from at least one of his clients—for which Siegmeister solicited bribes from O’Steen. The plea agreement states that, on April 16, 2018, Siegmeister sent O’Steen four photographs of bulls he was selling, after the sentencing of one of O’Steen’s clients, indicating that Siegmeister expected O’Steen to purchase a bull from him in exchange for the favorable treatment Siegmeister had provided O’Steen’s client.
With respect to the extortion count, O’Steen solicited Siegmeister to resolve a case against another of his clients, referred to as “Client B,” through pre-trial intervention (“PTI”). The plea agreement indicates that Siegmeister made it clear to O’Steen that if O’Steen wanted Client B to get a PTI agreement, O’Steen would have to buy one of Siegmeister’s bulls. On August 17, 2018, O’Steen told Client B, “I can make everything go away all, your brothers, the other two nolle pros with you sign an agreement to pay their cost of investigation, you leave, you will not have to report but one time, uh, ah, I need $75,000 and everything goes away and you pay the money,” representing that O’Steen had favors with Siegmeister for which people would pay him.
Siegmeister also admitted to committing wire fraud by defrauding the probate court and the estate of a man identified by the initials “L.T.” when serving as the voluntary guardian of L.T. While serving as the voluntary guardian, Siegmeister admitted to inflating the expenditures incurred by L.T. in a filing to the probate court and to diverting more than $500,000 in assets from L.T.’s estate to pay Siegmeister’s own personal expenditures in 2015 and 2016. Siegmeister also admitted that he had failed to report the diverted funds on his tax returns.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Kelly S. Karase and David B. Mesrobian.
Former South Bay Resident Faces Child Sexual Exploitation Charges for Enticing Girls to Send Him Images Depicting Masochistic ActsRead the Press Release
LOS ANGELES – A former Redondo Beach resident today is being held without bond on federal child sexual exploitation charges after prosecutors described in court how he targeted girls on the internet and enticed them to engage in masochistic abuse for his sexual gratification.
Matthew Christian Locher, 31, was ordered detained Tuesday afternoon during an arraignment in United States District Court. During that arraignment, Locher pleaded not guilty to an eight-count indictment that charges him with sexual exploitation and attempted sexual exploitation of a child for the purpose of producing a sexually explicit visual depiction, enticement and attempted enticement of a minor to engage in criminal sexual activity, and receipt of child pornography.
According to court documents and statements made in court, Locher targeted girls suffering from mental health issues, including depression, suicidal thoughts, and anorexia. During internet conversations, Locher allegedly groomed his victims to engage in self-mutilation and, eventually, to become his “slave” or “pet.”
As alleged in the indictment, Locher enticed two of the minor victims to send Locher images of themselves committing acts of self-harm, which included cutting their breasts. With one of the victims identified in the indictment, Locher allegedly used racial epithets to devalue the victim and entice her to self-mutilate.
Locher allegedly enticed a third victim, who was 12, to run away from her home in Ohio and travel to California to engage in illegal sexual activity with Locher. This victim began a trip to California after setting a fire in her family’s home – an unsuccessful attempt to kill her parents in a plot Locher encouraged, prosecutors said in court Tuesday.
Locher – who used various screen names, including “The Hat,” “MattheHat,” “HeyThere,” and “Shark” – was arrested on January 10 in Indianapolis. Locher relocated to Indiana last summer soon after federal authorities executed a search warrant at his residence. Following his arrest, federal authorities transported Locher to California, and he made his first court appearance here Tuesday.
According to a search warrant in this case that was unsealed after his arrest last month, Locher “enticed, encouraged, and instructed the victims to produce child pornography and child sexual abuse material in the form of sexually explicit images and video recordings of themselves to send to Locher over the internet, including through the use of Discord,” a voice and text chat platform.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted, Locher would face up to life in federal prison, and a mandatory minimum sentence of 10 years’ imprisonment, for each of four counts of enticement and attempted enticement of a minor to engage in criminal sexual activity. The three counts of sexual exploitation and attempted sexual exploitation of a child in the indictment each carry a maximum statutory penalty of 30 years in federal prison and a mandatory minimum sentence of 15 years’ imprisonment. The remaining charge of receipt of child pornography carries a potential penalty of 20 years in prison and a mandatory minimum sentence of five years in prison.
At the arraignment on Tuesday, Locher was ordered to stand trial on April 19.
The FBI is investigating this matter.
Assistant United States Attorney Chelsea Norell of the Violent and Organized Crime Section is prosecuting this case.
Former Project Manager of the El Reno Wastewater Treatment Plant Sentenced After Pleading Guilty to Violating the Clean Water ActRead the Press Release
OKLAHOMA CITY – Yesterday, KENNETH FULTON, of Bartlesville, was sentenced after pleading guilty to knowingly falsifying, tampering with, and rendering inaccurate, a monitoring device and method required to be maintained under the Clean Water Act, announced Robert J. Troester, United States Attorney for the Western District of Oklahoma.
On March 24, 2021, Fulton was charged by Information with violating the Clean Water Act. The Clean Water Act was enacted by Congress to restore and maintain the chemical, physical, and biological quality of the Nation’s waters. In addition, the Clean Water Act was enacted to prevent, reduce and eliminate water pollution in the United States and to conserve the waters of the United States for the protection and propagation of fish and aquatic life and wildlife, for recreational purposes, and for the use of such waters for public drinking water, agricultural, and industrial purposes.
The Clean Water Act prohibits the discharge of any pollutant by any person from a point source into navigable waters except in compliance with a permit issued under the National Pollutant Discharge Elimination System ("NPDES") by the United States Environmental Protection Agency ("EPA") or a state approved by the EPA to administer the NPDES program. NPDES permits include conditions that will ensure compliance with the Clean Water Act, such as effluent limitations, water-quality standards, and monitoring and reporting requirements. The Clean Water Act’s permitting system requires individuals and companies that have been issued NPDES permits to self-monitor and self-report whether their discharges comply with pollution limits set forth in their permits. Permit holders must regularly collect discharge samples and test those samples for pollutants that are covered by the permits. The results of these tests must be reported by the permit holder to the EPA and/or delegated state regulatory agency on a routine basis.
In 1996, the EPA delegated authority to administer and enforce the NPDES program to the State of Oklahoma. Pursuant to that delegated authority, the Oklahoma Department of Environmental Quality ("DEQ") issued a permit to the City of El Reno in 2015 that authorized the El Reno Wastewater Treatment Plant ("WWTP") to discharge properly treated municipal and industrial wastewater into the North Canadian River, a water of the United States. The permit set limits upon the levels of concentration for various pollutants being discharged into the North Canadian River, including total suspended solids, ammonia, and E. coli, which are “pollutants” within the meaning of the Clean Water Act. The permit also established specific monitoring requirements for each pollutant.
In 2017, the City of El Reno hired Veolia North America, LLC ("Veolia") to operate the El Reno WWTP. Fulton was employed by Veolia as the Project Manager of the El Reno WWTP. His duties included overall management and supervision of the operations at the El Reno WWTP.
Fulton admitted that between September 2019 and February 2020, he employed fraudulent testing and reporting procedures at the El Reno WWTP that were designed to deceive the EPA and the Oklahoma DEQ. Specifically, Fulton would collect grab (individual) samples of treated wastewater from near the El Reno WWTP effluent discharge point to have the wastewater analyzed for the presence of E. coli. Fulton would mix the grab sample with a bleach/water mixture and then let the mixture sit for longer than the maximum holding time to allow the bleach to effectively kill off or significantly reduce the amount of E. coli present in the sample. Fulton would then pour out half of the contents of the bleached and diluted wastewater sample before adding deionized water to help neutralize the sample and hide the presence of bleach. Fulton then transferred the sample contents into an official plastic container provided by the certified laboratory. Fulton would then seal the container and provide it to the laboratory for analysis.
Fulton submitted the fraudulent samples to the laboratory knowing that the laboratory would only detect levels of E. coli well below the approved limits in the permit. Fulton would then report the laboratory results to the EPA and the Oklahoma DEQ on the false premise that the test results were representative of the El Reno WWTP’s treated wastewater with respect to E.coli.
At yesterday’s hearing, United States District Judge Charles Goodwin sentenced Fulton to 2 years of probation and a $10,000 fine.
"Cutting corners and falsifying tests potentially exposed citizens and the environment to harmful contaminants," said U.S. Attorney Troester. "This case should remind all who may be involved in treating wastewater that disregarding the Clean Water Act and federal environmental laws can result in serious consequences. I commend the investigation by the Oklahoma Environmental Crimes Task Force, including the EPA Criminal Investigation Division and the Oklahoma DEQ Criminal Investigation Unit, and the entire prosecution team for their work here."
"The defendant’s willful acts of falsifying required effluent samples and the associated releases of untested effluent into the North Canadian River placed both the environment and local community water systems at risk of contamination," said Todd "Tony" Adams, Assistant Special Agent in Charge of the EPA’s Southwest Office criminal enforcement program. "EPA and its state partners are committed to holding accountable companies and individuals that place communities and the environment at risk."
"The Clean Water Act and the Safe Drinking Water Act rely on self-monitoring and self-reporting in order to protect our water resources. Individuals who tamper with the process potentially jeopardize public health and erode trust in our system. It is imperative that those who would take such actions be held accountable," said Oklahoma DEQ Executive Director Scott Thompson.
This investigation was conducted by the Oklahoma Environmental Crimes Task Force, which includes the EPA Criminal Investigation Division and the Oklahoma DEQ Criminal Investigation Unit. The case was prosecuted by Assistant U.S. Attorney Charles Brown.
Reference is made to the public record for further information.
Former President of Law Enforcement Union Edward Mullins Charged with Defrauding Union and Its MembersRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Keechant Sewell, Commissioner of the New York City Police Department (“NYPD”), announced today that EDWARD D. MULLINS, the former President of the Sergeants Benevolent Association (“SBA”), the union that represents all current and former Sergeants of the New York City Police Department, was charged with one count of wire fraud in connection with a scheme to steal hundreds of thousands of dollars from the SBA, through the submission of fraudulent expense reports. MULLINS surrendered to the FBI in Manhattan this morning, and was presented before U.S. Magistrate Judge Gabriel W. Gorenstein. The case has been assigned to United States District Judge John G. Koeltl.
U.S. Attorney Damian Williams said: “As alleged, Edward Mullins, the former President of the SBA, abused his position of trust and authority to fund a lavish lifestyle that was paid for by the monthly dues of the thousands of hard-working Sergeants of the NYPD. Mullins submitted hundreds of phony expense reports to further his scheme, stealing hundreds of thousands of dollars from the SBA. This Office is committed to rooting out corruption at all levels of government, and that includes public officials like Mullins who use their positions of power to line their own pockets to the detriment of others.”
FBI New York Assistant Director-in-Charge Michael J. Driscoll said: “As public servants, members of the SBA pay dues to a union that’s supposed to represent their best interests. As SBA president, Mullins allegedly went above and beyond to best serve his own interests. Our NYPD sergeants expect and deserve more from their union leadership than they received. Today, thanks to the joint efforts of those on the FBI/NYPD Public Corruption Task Force, we’re righting that wrong.”
NYPD Commissioner Keechant L. Sewell said: “Ed Mullins allegedly violated the ethics and rules of this department, the trust of 13,000 Sergeants, active and retired whom he represented, and the laws of the United States. The NYPD’s Internal Affairs Bureau, has detectives assigned to the FBI’s Public Corruption Unit and works as a team with agents on matters involving the NYPD.”
According to the allegations in the Information[1] filed today in Manhattan federal court:
Overview
For nearly two decades, from in or about 2002 until in or about October 2021, EDWARD D. MULLINS served as President of the SBA, which is the union that represents all current and former Sergeants of the NYPD. As President, MULLINS was responsible for promoting the general welfare of the SBA’s membership. Instead, MULLINS orchestrated a scheme to steal hundreds of thousands of dollars from the SBA and its members.
Between in or around 2017 and in or around October 2021, MULLINS defrauded the SBA by using his personal credit card to pay for meals at high-end restaurants and to purchase luxury personal items, among other things, and then submitting false and inflated expense reports to the SBA, seeking reimbursement for those bills as legitimate SBA expenditures when in fact they were not. Altogether, MULLINS was reimbursed for over $1 million dollars in expenses from the SBA, the majority of which was fraudulently obtained.
The SBA
The SBA is the fifth-largest police union in the United States with its headquarters located in lower Manhattan. The SBA’s membership consists of all active and retired sergeants of the NYPD, with approximately 13,000 members as of October 2021. All members are required to pay dues to the SBA. For active members, dues are deducted bi-weekly from their paychecks, totaling approximately $1,300 annually for each member. For retired members, dues are required to be paid in a one-time payment of $600 within ninety days of retirement.
The SBA has a Contingent Fund, which is used to pay for the SBA’s “regular, fiscal, and miscellaneous expenses necessary for the transaction of the [SBA’s] business.” The Contingent Fund is funded primarily through member dues. Ninety cents of each dollar of member dues are deposited into the Contingent Fund, where they are supposed to be used for the benefit of the SBA and its members. The President of the SBA is authorized to use the Contingent Fund to “defray miscellaneous expenses incurred in the performance of duties, e.g., travel, lodgings, meals, et cetera.”
The SBA has a written expense reimbursement policy (the “Policy”). The Policy provides, among other things, that “the SBA will reimburse actual and reasonable meal expenses required to conduct SBA business or fulfill the SBA’s mission.” In order to be “reimbursable,” expenses “must be closely related to SBA business.” The Policy further provides that “[r]eceipts are required for any meal,” and that “[r]equests for reimbursement for meals in excess of $50.00 must be accompanied by an attendee list and the subject matter discussed.”
The SBA is governed by a Board of Officers, consisting of nine officers, including the President, Vice President, and Treasurer, among others, and fourteen directors. Beginning in or around 2002, MULLINS ran for and was elected President of the SBA for five successive four-year terms. After the 2014 election, the individual who had been elected Vice President of the SBA assumed responsibility for reviewing and approving the expense reports submitted by SBA officers, including MULLINS. The Vice President routinely scrutinized expense reimbursement requests and rejected certain expenses if they were too high or were not supported by receipts.
In or around 2017, the then-Vice President retired as an officer of the SBA. The Treasurer assumed primary responsibility for reviewing and approving expense reports submitted for reimbursement by SBA officers, including MULLINS. The Treasurer did not scrutinize the expense reports in the same manner as the prior Vice President had, and, in particular, did not regularly require receipts for MULLINS’s reimbursements in particular. As set forth below, between 2017 and 2021, the Treasurer approved hundreds of expense reports for MULLINS, totaling more than $1 million dollars.
The Scheme To Defraud the SBA
Beginning in 2017, MULLINS devised a scheme to fund his personal expenses through SBA dollars. Specifically, MULLINS charged his personal credit card for, among other things, hundreds of high-end meals, clothing, jewelry, home appliances, and a relative’s college tuition. MULLINS then submitted, typically by email, fraudulent and inflated expense reports to the Treasurer of the SBA, seeking reimbursement for such items purporting to be legitimate SBA expenditures when in fact they were not. MULLINS rarely included receipts.
The Treasurer processed the expense reports once they were received – almost always without obtaining any receipts – and issued SBA reimbursement checks to MULLINS from the Contingent Fund – i.e., the fund that was made up almost entirely of member dues. MULLINS then deposited the checks into his bank account or enlisted an individual at the SBA to deposit the checks on MULLINS’s behalf at a bank branch near the SBA’s headquarters in lower Manhattan. MULLINS then, usually immediately thereafter, paid down his credit card bills with the deposited funds.
As part of this fraudulent scheme, MULLINS made at least three types of misstatements on his expense reports. First, MULLINS included meals on his expense reports that were not SBA-related. Second, MULLINS inflated the costs of his meals – whether SBA-related or not. For example, if the actual cost of a meal was $522.55, MULLINS would seek reimbursement from the SBA for $822.55, and pocket the difference. At times, MULLINS would even write out these changes on his personal credit card statements that he maintained at his home – i.e., crossing off “522.55” and writing in “822.55”, thereby documenting his false statements. Third, MULLINS would take personal expenses like supermarket bills and claim them on his expense reports as SBA-related meals for which he also sought reimbursement.
For example, in November 2019, MULLINS submitted expense reports to the Treasurer for more than $3,000 at a high-end restaurant in Greenwich Village in Manhattan (“Restaurant-1”). Those charges, however, were not related to any work for the SBA. Instead, as reflected in text messages that MULLINS exchanged with an employee of Restaurant-1 (the “Employee”), MULLINS was paying, on two separate occasions, for his family members and personal associates to dine at Restaurant-1. Specifically, MULLINS, purchased two $300 gift cards for Restaurant-1 and then sought reimbursement from the SBA for the gift cards. Two weeks later, MULLINS texted the Employee to inform the Employee that a relative (“Relative-1”) and Relative-1’s partner “are coming in for dinner tonight” and “I gave [Relative-1] a gift card that I grabbed 2 weeks ago.” MULLINS sent a similar text message to the Employee the following night when a personal associate (“Associate-1”) was planning to dine at Restaurant-1 and use the other gift card that MULLINS had purchased with SBA funds.
As another example, in October 2020, MULLINS sent a text message to another personal associate (“Associate-2”) asking Associate-2, “Going to place an order at [the Steakhouse] what do u want[?]” Associate-2 responded by providing MULLINS with a list of several items on the menu. MULLINS’s October 2020 credit card statement in turn reflected a $744.59 expense at the Steakhouse on the same day. MULLINS later submitted this fraudulent $744.59 expense, without a receipt, to the Treasurer for reimbursement, claiming the expense as an SBA-related meal when in fact it was not.
In addition to submitting personal expenses for reimbursement, MULLINS inflated and altered his actual expenses in order to steal more money from the SBA. MULLINS maintained two copies of his credit card statements in his home office. The first copy, often labeled with a sticky note bearing the words “Clean Copy,” had no annotations or markings. The second copy, often labeled with a sticky note bearing the words “Work Copy” or “Work Sheet,” had MULLINS’s handwritten annotations and markings throughout. In the Work Copy, MULLINS changed the amount and, at times, the type of expense, from a lower amount to a larger amount, or from an item that could not be reimbursed – such as a supermarket bill – to a restaurant name, which would then be reflected in MULLINS’s reimbursement forms submitted to the Treasurer and the SBA.
For example, in April 2021, MULLINS changed a $45.92 charge to an $845.92 charge at a wine bar in New Jersey; a $609.89 charge to a $909.89 charge at the Steakhouse; and a $185.88 charge at a supermarket on Long Island to a $685.88 charge at an Italian restaurant in Manhattan. MULLINS then submitted those fraudulent expenses, without receipts, to the Treasurer for reimbursement. Likewise, in August 2021, MULLINS changed a $49.60 charge to a $89.60 charge for a diner on Long Island; a $53.56 charge to a $153.56 charge for a restaurant on Long Island; a $96.16 charge at a supermarket to a $396.16 charge at a restaurant on Long Island; a $152.42 charge to a $352.42 charge at a deli on Long Island; and a $464.00 charge to a $664.00 charge at a pizza place on Long Island. Once again, MULLINS submitted these fraudulent expenses, without receipts, to the Treasurer, who approved the reimbursements.
Altogether, as a result of the scheme, MULLINS received more than $1 million dollars in expense reimbursements from the SBA, the majority of which was fraudulently obtained.
* * *
MULLINS, 60, of Port Washington, New York, is charged with one count of wire fraud, which carries a maximum sentence of 20 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 New York FBI and the FBI/NYPD Public Corruption Task Force.
This case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys David Robles, Alexandra Rothman, and Andrew Rohrbach are in charge of the prosecution.
The charge contained in the Information is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Information, and the description of the Information set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Former Director of Finance for the La Jolla Music Society Admits to Embezzling over Half a Million DollarsRead the Press Release
Assistant U. S. Attorney Mark Conover (619) 546-6763
NEWS RELEASE SUMMARY – February 23, 2022
SAN DIEGO – Chris Benavides of San Diego pleaded guilty in federal court today to wire fraud, admitting that while employed as the director of finance for the La Jolla Music Society, he embezzled more than $650,000 over a 10-year period.
In a hearing before U.S. Magistrate Judge Barbara Major, Benavides admitted he abused his access to the company’s accounting software and issued unauthorized checks to himself. Benavides admitted that he stole over $650,000 between October 2011 and February 2021 from the La Jolla Music Society.
Benavides used the La Jolla Music Society’s money to pay his mortgage, credit cards, and other personal expenses. He then concealed the payments by manipulating the company’s accounting records to make it appear that they were legitimate business expenses.
The La Jolla Music Society discovered Benavides’s fraudulent activity on February 22, 2021, fired Benavides, and reported the conduct to law enforcement.
“Fraud perpetrated against non-profit organizations is particularly troubling,” said U.S. Attorney Randy Grossman. “This defendant abused his position of trust to enrich himself and will be held accountable for his crime.” Grossman thanked the prosecution team and FBI agents for their excellent work on this case.
“The defendant spent nearly a decade abusing his trusted employment access to embezzle more than $650,000 from the La Jolla Music Society, where he most recently served as the Director of Finance,” said FBI Special Agent in Charge Suzanne Turner. “Crimes such as this can have a devastating impact on both the employer and the local community, and further shake the confidence of the donors whose charitable contributions provide critical support for non-profit organizations. I hope this guilty plea provides a sense of closure and justice for the victims.”
Benavides is scheduled to be sentenced on May 5, 2022 at 9 a.m. before U.S. District Judge Cathy Ann Bencivengo.
DEFENDANT Case Number 22cr3042-CAB
Chris Benavides Age: 52 San Diego
SUMMARY OF CHARGES
Wire Fraud – Title 18, U.S.C., Section 1343
Maximum penalty: Twenty years in prison and $250,000 fine, or twice the gain/loss, whichever is greater
AGENCY
Federal Bureau of Investigation
Former Catawba County Director of Utilities Pleads Guilty to Wire Fraud Conspiracy for Accepting BribesRead the Press Release
CHARLOTTE, N.C. – Barry Bryan Edwards, 65, of Hickory, N.C. appeared in federal court today and pleaded guilty to wire fraud conspiracy for accepting kickbacks and bribes from a private contractor, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Robert Schurmeier, Director of the North Carolina State Bureau of Investigation (SBI) join U.S. Attorney King in making today’s announcement.
According to filed plead documents and today’s plea hearing, from 2012 to 2018, Edwards and an unnamed individual identified in court documents as the Contractor, devised a bribery and kickback scheme involving Catawba County (the County) government contracts. As Edwards admitted in court today, as Director of Utilities and Engineering, Edwards had the authority to review and award on behalf of the County government contracts to private businesses for engineering and consulting activities related to the County’s landfill, solid waste and natural gas projects, among others. As court documents show, Edwards admitted to awarding contracts to three businesses associated with the Contractor, all while receiving gifts and other things of value that influenced his decisions, including expensive meals, tickets to sporting events, and wine-tasting tours, totaling more than $30,000.
Edwards pleaded guilty before U.S. Magistrate Judge David C. Keesler and was released on bond. The wire fraud conspiracy charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
In making today’s announcement U.S. Attorney King thanked the SBI and the FBI for their investigation of the case.
Assistant United States Attorney Don Gast of the U.S. Attorney’s Office in Asheville is in charge of the prosecution.
Former Bureau of Prisons Chaplain Pleads Guilty to Sexual Assault and Lying to Federal AgentsRead the Press Release
James Theodore Highhouse, 49, a former chaplain with the Federal Bureau of Prisons (BOP) pleaded guilty today in federal court in the Northern District of California to five felonies for sexually abusing a female inmate and subsequently lying to federal agents during their investigation into his misconduct.
According to court documents, from May 15, 2018, through Feb. 9, 2019, Highhouse was employed by the BOP as a corrections worker and chaplain, and was assigned to work at FCI-Dublin, a federal prison that houses female inmates. In his role as a prison chaplain, he led religious services, and offered spiritual guidance to the female inmates. He also taught religious-based classes about boundaries and self-worth, with the understanding that many inmates with whom he interacted came from a background of trauma, abuse, and substance addiction. Highhouse met with these inmates in group settings and one-one-one in his office. At times, Highhouse also performed a custodial role, that is, he could handcuff inmates, write up incident reports and refer inmates for disciplinary action.
During the aforementioned time period, the victim, one of the female inmates housed at FCI-Dublin, came to see Highhouse for spiritual guidance. Highhouse met with her alone in his office on multiple occasions. As part of his guilty plea, Highhouse admitted that during the meetings in his office, he sexually abused the victim. He did so despite receiving training on maintaining boundaries with inmates, and attending yearly BOP refreshers about sexual abuse and prevention.
Then, once the FBI and the Department of Justice’s Office of the Inspector General (Department of Justice- OIG) opened a federal investigation into his allegations that he sexually abused an inmate, Highhouse lied to federal agents about his misconduct. Specifically, on Feb. 21, 2019, during a voluntary interview with federal agents, he knowingly made false statements when he denied engaging in sexual acts and sexual contact with the victim. Then, during a follow up interview on Feb. 3, 2020, he again misled federal agents, when he again falsely denied engaging in such conduct. Highhouse acknowledged that he repeated those denials even though on Aug. 14, 2019, he handwrote a statement, admitting that he engaged in sexual acts and sexual contact with the victim.
“Any law enforcement official who exploits their authority and position as a spiritual counselor, particularly by sexually abusing an inmate in their custody, must be held accountable for their actions,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will not stand for abuse and misconduct by its own law enforcement officials, and we will take action wherever needed to hold perpetrators accountable under the law.”
“The FBI and our Department of Justice-OIG partners take all allegations of sexual misconduct by employees of federal prisons seriously and are committed to swiftly investigating violations under the color of authority at all levels,” said Special Agent in Charge Craig D. Fair of FBI San Francisco.
“Highhouse held a position of great trust as a prison chaplain. He exploited this trust and sexually abused an inmate under his care, and then lied in an effort to cover up his crimes,” said Special Agent in Charge Zachary Shroyer of the Department of Justice Office of the Inspector General Los Angeles Field Office. “The Department of Justice Office of the Inspector General will continue to root out this kind of abuse and bring the perpetrators to justice.”
A sentencing date has been set for July 6. Highhouse faces a maximum penalty of up to 39 years in prison.
This case is being investigated by the San Francisco Division of the FBI and the Los Angeles Field Office of the Department of Justice-OIG. The case is being prosecuted by Special Litigation Counsel Fara Gold of the Criminal Section of the Civil Rights Division of the Justice Department.
Final Defendant Pleads Guilty in Gun Trafficking Ring Stretching from Ohio to New YorkRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Ricky Turner, 51, of Ashtabula, Ohio, pleaded guilty before Chief U.S. District Judge Elizabeth A. Wolford to aiding and abetting a fictitious written statement with respect to a material fact in the sale of a firearm. The charge carries a maximum penalty of 10 years in prison.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that on October 19, 2017, Turner assisted an individual identified as D.F. in the purchase of a firearm from an Ohio sporting goods store. D.F falsely stated on the Bureau of Alcohol, Tobacco, Firearms, and Explosives Form 4473, Firearms Transaction Record, that she was the actual buyer acquiring the firearm. In fact, D.F. was acting only at the direction of Turner, who provided money for the purchase of the firearm. D.F. completed and signed the ATF paperwork and checked “yes,” acknowledging that she was the actual purchaser of the firearm. D.F. conducted other similar transactions on behalf of Turner, receiving $75-$100 per firearm to conduct the transactions. Turner then sold the firearms for a profit to individuals in the Buffalo area. Turner has never been issued a Federal Firearms License that would permit him to sell, receive, or transport firearms in interstate commerce. In fact, Turner is prohibited under both Ohio and federal law from possessing a firearm due to a federal felony conviction.
Turner is one of eight defendants charged and convicted in this case.
The plea is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito.
Sentencing will be scheduled at a later date.
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Fentanyl Supplier to Hustlas Don’t Sleep Drug Gang Gets 15 Years for Violating Federal Drug and Gun LawsRead the Press Release
PITTSBURGH, PA -- A former resident of Pittsburgh, PA, has been sentenced in federal court to 15 years imprisonment and five years of supervised release on his conviction of violating federal narcotics and firearms laws, United States Attorney Cindy K. Chung announced today.
United States District Judge Marilyn J. Horan imposed the sentence on Che Williams, age 35, formerly of the City’s Knoxville neighborhood.
According to information presented to the court, Williams was charged with conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl, possession with intent to distribute 40 grams or more of fentanyl, and felon in possession of firearms and ammunition.
The conspiracy charge related to Williams’ involvement as one of the fentanyl suppliers to the Hustlas Don’t Sleep drug trafficking organization that was targeted and dismantled through an investigation that included, among other investigative techniques, court-authorized interceptions of the communications of various participants in the conspiracy, including Williams. In summary, those communications revealed that Williams was supplying various members of the Hustlas Don’t Sleep drug trafficking organization with substantial quantities of fentanyl that the members of the organization distributed.
As part of the investigation, law enforcement executed a search warrant of Williams’ residence. That search revealed more than 40 grams of fentanyl, three guns and numerous rounds of ammunition, digital scales, and other evidence of drug trafficking. Williams has a significant history of prior felony convictions and is therefore precluded under federal law from possessing firearms.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Chung commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Williams.
Federal charges filed against St. Louis man for robbing multiple QuikTrip storesRead the Press Release
ST. LOUIS – On February 23, 2022, a federal grand jury indicted Terrence Gleason, age 51, for multiple counts of robbery and weapon charges. Gleason is accused of robbing several area QuikTrip stores while armed with a semi-automatic pistol. Gleason is currently being held in the St. Louis County Jail on unrelated charges.
According to the indictment, beginning on December 5, 2021, and ending on December 12, 2021, Gleason is accused of robbing the following QuikTrip locations while brandishing or indicating he had a firearm:
QuikTrip located at 9099 Natural Bridge (three separate times)
QuikTrip located at 5909 Howdershell
QuikTrip located at 11150 St. Charles Rock Road
Charges set forth are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the Normandy Police Department, Hazelwood Police Department, St. Ann Police Department and the Federal Bureau of Investigation.
Federal charges filed against St. Louis man for robbery and weapon violationsRead the Press Release
ST. LOUIS – On February 22, 2022, Mercedes W. Gregory, age 33, made an initial appearance to face federal charges previously filed in September 2021. Gregory is accused of a robbery of Kohl’s department store as well as branding a firearm while doing so. He was additionally charged with being a felon in possession of a firearm. Gregory was being held in the St. Louis County Jail on unrelated charges.
According to the indictment, on July 12, 2021, Gregory entered the Kohl’s located in the city of Manchester and began stealing merchandise. When confronted by a Loss Prevention Officer in the parking lot, Gregory threatened him with a handgun. Gregory is prohibited from possessing a handgun after previously being convicted of a felony. Gregory was taken into custody on unrelated charges in the City of St. Louis on July 23, 2021.
Charges set forth are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the Manchester Police Department, the St. Louis Metropolitan Police Department, and the Federal Bureau of Investigation.
Federal Special Agent Pleads Guilty to Gambling with Government FundsRead the Press Release
LAS VEGAS – An FBI Special Agent pleaded guilty yesterday to misusing government money to gamble at a Las Vegas casino.
Scott F. Carpenter (40), of New York, pleaded guilty to one count of conversion of government money. U.S. District Judge Gloria M. Navarro presided over the hearing and scheduled sentencing for May 18, 2022. At sentencing, Carpenter faces a statutory maximum penalty of one year in prison, supervised release, and restitution.
According to court documents, from July 27 to July 31, 2017, Carpenter — employed as a Special Agent with the FBI’s New York City Field Office — and three other FBI agents traveled to Las Vegas to conduct an undercover operation. At the conclusion of the operation, Carpenter went to a casino’s high limit room, where he gambled on blackjack with $13,500 belonging to the United States.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge James F. Boyersmith of the Department of Justice Office of the Inspector General, Miami Field Office (DOJ OIG) made the announcement.
This case was investigated by the DOJ OIG. Assistant U.S. Attorney Daniel R. Schiess is prosecuting the case.
If you know about waste, fraud, abuse, misconduct, or whistleblower retaliation within the Department of Justice, you may report it to the OIG Hotline at https://oig.justice.gov/hotline/submit_complaint.
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Federal Prisoner Pleads Guilty to Assaulting Prison Guard at FCI-GreenvilleRead the Press Release
East St. Louis, Ill. – A federal prisoner originally from Indianapolis, Indiana, and imprisoned at
Federal Correctional Institution Greenville, pled guilty on Tuesday, February 22, 2022, to assaulting a federal correctional officer in August of 2020.
At the time of the offense, Dakota Holland, 26, was incarcerated at FCI-Greenville serving a six
(6) year sentence for gun and drug conviction stemming from the Southern District of Indiana.
Holland pled guilty to throwing a hard object at a guard which struck the officer in the face below the eye. The officer did not require medical treatment as a result of the assault.In September of 2020, a federal grand jury indicted Holland. Holland faces a maximum of eight additional years in prison. Sentencing is scheduled for June 16, 2022.
The investigation was conducted by the Bureau of Prisons (BOP).
The case was prosecuted by Assistant United States Attorney John Trippi.Ex-Fort Bragg Soldier Sentenced for Theft of Government Property, Tampering with a Witness, and FraudRead the Press Release
NEW BERN, N.C. – An ex-soldier assigned to 2nd Security Force Assistance Brigade (SFAB) was sentenced today to 18 months in prison and 3 years of supervised release and ordered to pay $110,948.29 in restitution to the U.S. Army. On July 2, 2021, Samuel Manu Agyapong was found guilty by a Federal Jury of theft of government property, tampering with a witness, visa fraud, conspiracy to commit marriage fraud, and aiding and abetting naturalization fraud.
According to court documents and other information presented at trial in February of 2019, a tipster alerted Fort Bragg U.S. Army Criminal Investigation Division (CID) that Agyapong, 34, a naturalized U.S. citizen and soldier, was engaged in a sham marriage with Barbara Oppong, a citizen of Ghana who was unlawfully present in the U.S. Agyapong agreed to engage in the sham marriage in order to obtain Basic Allowance for Housing (BAH) for him and a lawful permanent resident card, commonly known as a green card, for Oppong. Agyapong and Oppong were married in New York in January 2015.
Thereafter, Agyapong and Oppong submitted fraudulent applications to United States Citizenship and Immigration Services (USCIS) requesting Oppong’s adjustment of status as a lawful permanent resident in the United States, which she received. Based on the fraudulent marriage Agyapong filed for BAH with the U.S. Army and over the course of the scheme he illegally profited over $110,000.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The investigation of these cases is ongoing and being conducted by Homeland Security Investigations, the Criminal Investigation Detachment at Fort Bragg and the EDNC Document and Benefit Fraud Task Force. Assistant U.S. Attorney Gabriel Diaz prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. .5:19-CR-00423-FL.
Eight Charged after FBI New Haven Task Force Investigation; 19 Kilos of Cocaine,$780K SeizedRead the Press Release
U.S. Attorney Leonard C Boyle, Special Agent in Charge David Sundberg of the New Haven Division of the Federal Bureau of Investigation, and New Haven Police Acting Chief Renee Dominguez today announced that eight individuals have been charged with federal offenses related to the distribution of fentanyl, heroin, crack and powder cocaine in the New Haven area. As a result of the investigation, law enforcement seized approximately 19 kilograms of cocaine, more than 7,000 bags of fentanyl, and more than $780,000 in cash.
Charged in a five-count indictment are:
JASHON SPEARMAN, also known as “J ” and “Deuce,” 33, of New Haven
JAMES HILLARD, 64, of New York and New Jersey
HENRY HORTON, also known as “Bodie,” 39, of New Haven
JAYQUAN MARTINEZ, also known as “Neighbor” and “Quan,” 20, of New Haven
KISHON SHIELDS, also known as “L.A.” and “Key,” 24, of New Haven
RAYQUAN GORY, also known as “Wavy,” 26, of New Haven
JEREMIAH HARGROVE, also known as “Myers” and “Miah,” 39, of New Haven
TIFFANY BROWN, also known as “Tiff,” 39 of New HavenAs alleged in court documents and statements made in court, in the fall of 2021, the New Haven Safe Streets/Gang Task Force and New Haven Police Department began investigating Spearman and others for the distribution of narcotics in and around the West Hills neighborhood, including the McConaughy Terrace housing complex, in New Haven. The investigation revealed that Hillard was supplying Spearman with heroin and fentanyl, and that Spearman was receiving kilogram quantities of cocaine through the U.S. Mail from a source in Puerto Rico. On February 4, 2022, investigators arrested Spearman and Hillard after they met in the Bronx, New York, and a search of Hillard’s car revealed more than 7,000 folds of suspected heroin/fentanyl and approximately $30,000 in cash.
It is further alleged that, on February 8, investigators executed court-authorized search warrants at several locations, including a Ward Street residence where Spearman distributed narcotics, and vehicles in which Spearman was suspected of storing narcotics. A search of a minivan revealed approximately 19 kilograms of cocaine; a search of a vehicle registered to Spearman revealed $750,400 in cash, assorted jewelry and a quantity of fentanyl; and a search of the Ward Street residence revealed additional cash, several money counters, and numerous cellphones. The search also found and seized five firearms.
On February 15, a grand jury in New Haven returned an indictment charging the eight defendants with conspiracy to distribute and to possess with intent to distribute various quantities of fentanyl, heroin, cocaine base (“crack”) and cocaine. Spearman, Horton, Martinez, Shields and Gory are also charged with additional narcotics offenses. If convicted of the most serious charges in the indictment, Spearman faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life; Hillard faces a mandatory minimum term of imprisonment of five years and maximum term of imprisonment of 40 years, and Horton, Martinez, Shields, Gory, Hargrove and Brown face a maximum term of imprisonment of 20 years.
Horton, Martinez, Shields, Gory, Hargrove and Brown were arrested on February 17.
The indictment also seeks the forfeiture of the seized cash, jewelry and four vehicles.
“I credit all the members of the FBI Safe Streets/Gang Task Force for their great work in this investigation, which has disrupted the flow of a significant amount of cocaine and fentanyl into Connecticut,” said U.S. Attorney Boyle. “The cocaine and cash seized earlier this month was extraordinary, and would not have been accomplished without a terrific, coordinated effort by all involved. The U.S. Attorney’s Office will continue to work with our federal, state and local partners to stem the drug trade in our cities and appropriately prosecute those responsible for it.”
“We understand the frustration at times expressed by community members about the drug activity within their neighborhoods,” said FBI Special Agent in Charge Sundberg. “This case is the response to some of those demands for action by residents. The severe impact of this case will be felt for some time thanks to the coordinated efforts of all of our law enforcement partners.”
“We value the relationships we have with our federal partners and the collaborative work that is routinely done,” said Chief Dominguez. “The arrests of these individuals will provide an immediate positive impact in the community as we continue to work together to make our community safer. I am grateful for the dedication and hard work from everyone involved in this investigation.”
U.S. Attorney Boyle stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the FBI’s New Haven Safe Streets/Gang Task Force with the assistance of the U.S. Postal Inspection Service. The Task Force includes participants from the New Haven Police Department, Milford Police Department, East Haven Police Department, West Haven Police Department, Connecticut State Police and the Connecticut Department of Correction.
This case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Kenneth L. Gresham through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Dominican National Sentenced for Presenting False Passport at Boston Logan AirportRead the Press Release
BOSTON – A man traveling from the Dominican Republic under an assumed identity was sentenced yesterday for attempting to enter the United States using a false U.S. passport.
Felipe Batista, 48, previously residing in Brighton, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 37 months in prison and three years of supervised release. Judge Gorton also ordered Batista to pay restitution in the amount of $190,281 to the U.S. Social Security Administration and MassHealth. Batista will be subject to deportation proceedings upon completion of his sentence.
On Sept. 16, 2021, Batista – originally charged as “John Doe” – admitted his true name and pleaded guilty to one count of misuse of a passport and one count of aggravated identity theft.
Batista arrived at Boston Logan International Airport on a commercial flight from the Dominican Republic on March 4, 2020. While attempting to pass inspection by Customs and Border Protection, he provided officers a U.S. passport bearing his image, but the name, date of birth and Social Security number of a different person.
An investigation revealed that Batista applied for the passport in November 2019 in Brighton. In the application, he fraudulently listed the personal identifying information of a United States citizen from Puerto Rico. He also attached a copy of the citizen’s birth certificate in support of the application. Batista’s use of the citizen’s information to fraudulently acquire and use the passport were only his latest efforts to misappropriate the citizen’s identity. Batista first assumed the citizen’s identity as early as 2001, and he was posing as the citizen since 2012 in order to obtain hundreds of thousands of dollars in benefits from federal and state government programs.
United States attorney Rachael S. Rollins and Jonathan Davidson, Special Agent in Charge of U.S. Department of State, Diplomatic Security Service, Boston Field Office made the announcement. Assistance was provided by U.S. Customs and Border Protection; U.S. Immigration and Customs Enforcement; Office of Inspector General, U.S. Social Security Administration; Office of Inspector General, U.S. Department of Health and Human Services; and Bureau of Special Investigations, Commonwealth of Massachusetts. Assistant U.S. Attorney Fred M. Wyshak, III of Rollins’ Organized Crime & Gang Unit prosecuted the case.
Detroit Man Sentenced to Prison for Distributing Cocaine and MethamphetamineRead the Press Release
HUNTINGTON, W.Va. – A Detroit, Michigan man was sentenced to two years in prison for distribution of cocaine and methamphetamine.
According to court documents, Durran Merille Garland, 28, sold an ounce of cocaine to a confidential informant for $1,000 on March 13, 2018 in Huntington. Garland admitted to selling methamphetamine to the same confidential informant on two other occasions. During a search of Garland’s Huntington residence in April 2018, law enforcement officers recovered an M&P .40 Caliber Shield handgun.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA).
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Patrick Jeffrey handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:19-cr-00004.
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Dayton-area former investment advisor sentenced to 2 years in prison for Social Security fraud, making false statements regarding theft from local churchRead the Press Release
DAYTON, Ohio – Charles Edward Severt, Jr., 52, of Xenia, was sentenced in federal court to 24 months in prison for stealing more than $370,000 in Social Security disability benefits and for making false statements related to stealing $20,000 from a Xenia church.
Severt was indicted and arrested in March 2021.
According to court documents, in connection with his application for disability benefits, Severt stated that he had not worked since 2010 as the result of a shooting. In reality, Severt had been working since at least 2014 in the tree trimming business.
Severt also stated under oath that his license as an investment advisor was suspended for not reporting income from flipping houses. Court documents detail Severt was actually banned for life by the Financial Industry Regulatory Authority for stealing $20,000 from a church in Xenia.
As part of his sentence, Severt will pay more than $370,000 in restitution.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, announced the sentence imposed yesterday by Senior U.S. District Judge Walter H. Rice. Special Assistant United States Attorney Timothy Landry is representing the United States in this case, which was investigated by the Social Security Administration Office of the Inspector General, Chicago Field Division, with assistance from the United States Marshals Service.
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Convicted Felon Sentenced to 10 Years in Federal Prison for Firearms PossessionRead the Press Release
HOT SPRINGS – A Hot Springs man was sentenced today to 120 months in federal prison followed by three years of supervised release on one count of being a Felon in Possession of a Firearm. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing in the United States District Court in Hot Springs.
According to court documents, on or about September 18, 2019, officers with the Hot Springs Police Department were dispatched to a residential neighborhood after receiving a report of an individual discharging a firearm. Upon arrival to the area, officers made contact with a local resident who advised that Zachary Ray Burks, age 32, was on a boat dock on Lake Hamilton discharging a firearm.
As Officers approached the boat dock, they observed Burks to be in possession of a handgun. Contact was subsequently made with Burks and officers recovered a .44 caliber handgun, along with multiple expended and live rounds of ammunition. Burks is a convicted felon and is prohibited from possessing any firearms.
A Special Agent with the Bureau of Alcohol, Tobacco & Firearms confirmed that the firearm was manufactured outside the State of Arkansas and, thus, had traveled in interstate commerce.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Hot Springs Police Department, the Arkansas State Police and the ATF investigated the case.
Assistant U.S. Attorney Bryan Achorn and Special Assistant U.S. Attorney Trent Daniels prosecuted the case.
This case was prosecuted as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Claremore Man Convicted of 2018 Sexual AssaultRead the Press Release
A federal jury found a Claremore man guilty Wednesday for sexually assaulting a woman in 2018, announced U.S. Attorney Clint Johnson.
Travis Carl Condry, 29, was convicted of aggravated sexual abuse by force and threat in Indian Country.
“Travis Condry is a rapist who believed that ‘stop doesn’t always mean stop,’” said U.S. Attorney Clint Johnson. “Today, a federal jury upheld the law and brought Condry to justice for his criminal sexual conduct.”
The victim and defendant knew one another prior to the crime, and on Dec. 21, 2018, Condry violated the victim’s trust and raped her. The encounter was initially consensual, although the victim was hesitant. The victim quickly withdrew consent as he started to have sex with her. Condry placed his phone on the bed and recorded the incident. The camera did not capture video of the crime, but the audio recorded what occurred. During the incident, the victim told Condry “you can’t do this,” “no,” “please stop,” and “I’m serious.” Condry could also be heard saying “Don’t run away” as the victim tried to pull away from him. The defendant continued to rape the victim while she repeatedly screamed and pleaded for Condry to stop for almost five minutes. Eventually, Condry relented and told the victim she would have to provide oral sex all night instead.
The victim told Condry she felt like she had been assaulted and left immediately after the crime. As the victim left, Condry told her to “snap me, text me, or don’t.”
The victim then called two friends to relay what happened as she drove home. Both friends testified to how distraught the victim was that night. The victim then reported the crime to the Claremore Police Department and consented to a sexual assault nurse examiner (SANE) examination at the hospital.
Officers interviewed Condry the following day. During the interview, Condry said that he had been drinking and the encounter was consensual sex. He further told investigators that the victim told him to stop but he did not stop right away. He stated that in his opinion “stop doesn’t always mean stop.”
In closing, Assistant U.S. Attorney Steven Briden reminded the jury that no means no, stop means stop, and crying and pleading means stop. He suggested that Condry doesn’t believe “stop means stop” because it would prevent him from getting what he wants.
Condry will be sentenced on July 12, 2022.
The crime was initially charged in Rogers County District Court, but the charges were dismissed based on the Supreme Court’s decision in McGirt v Oklahoma and subsequent court decisions. Because the crime occurred within the boundaries of the Cherokee Nation reservation and Condry is an enrolled tribal citizen, the federal government prosecuted the case.
The FBI and Claremore Police Department conducted the investigation. Assistant U.S. Attorneys Steven J. Briden and Valeria G. Luster are prosecuting the case.
Chicago Man Sentenced to Federal Prison for Business Email Compromise SchemeRead the Press Release
INDIANAPOLIS – Oyedele Aro Benjamin, 27, of Chicago was sentenced to two years in federal prison today for his role in a Business Email Compromise (BEC) scheme. A BEC is a sophisticated scheme targeting both businesses and individuals performing a transfer of funds. The scam is frequently carried out when a criminal steals money by illegally gaining access to legitimate business email accounts. This is often accomplished through computer intrusion techniques (“hacking”) and tricking victims into providing criminals access to their accounts (social engineering”).
According to court documents, in September 2018, Benjamin traveled to Indianapolis to deposit a $300,000 check at Regions Bank. The United States Postal Inspection Service determined that the check was obtained through a BEC scam that victimized two Louisiana companies. A scammer, posing via email as a representative from one of the victim companies, tricked that victim company into sending a $300,000 check intended for the second company to an address in Chicago.
Benjamin received the check in Chicago and then traveled to Indianapolis to open a business bank account at a Regions Bank branch. He opened the account using a fictitious name and business by presenting a fraudulent driver’s license and fraudulent business registration information. The fictitious business name was similar to the actual name of the victim business that was the intended recipient of the stolen $300,000 check. The next day, Benjamin deposited the $300,000 check in the fraudulent bank account. Regions Bank was alerted to the fraud and able to stop and reverse payment prior to any money being withdrawn.
The United States Postal Inspection Service investigated the case. The sentence was imposed by U.S. District Judge James R. Sweeney II. As part of the sentence, Judge Sweeney II also ordered that the defendant be supervised by the U.S. Probation Office for three years.
U.S. Attorney Myers thanked Assistant U.S. Attorney MaryAnn T. Mindrum who prosecuted this case.
Charlotte Man Is Sentenced to 10 Years for Illegal Gun PossessionRead the Press Release
CHARLOTTE, N.C. – Trevon Darnell Hopkins, 27, of Charlotte, was sentenced to 10 years in prison and two years of supervised release for illegal gun possession, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In October 2021, a federal jury convicted Hopkins of possession of a firearm by a felon.
U.S. Attorney King is joined in making today’s announcement by Vincent C. Pallozzi, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Johnny Jennings of the Charlotte-Mecklenburg Police Department (CMPD).
According to filed documents, trial evidence, and today’s sentencing hearing, on June 23, 2018, CMPD officers observed Hopkins driving a vehicle that had been reported stolen. When law enforcement attempted to execute a traffic stop of the vehicle, Hopkins refused to comply and sped away. The defendant then proceeded to drive recklessly, including into oncoming traffic and on the sidewalk. Hopkins eventually lost control and crashed the vehicle. CMPD officers arrested Hopkins at the scene. As trial evidence established, law enforcement located two firearms in the stolen vehicle. Hopkins is prohibited from possessing firearms due to multiple prior felony convictions. At the time of the incident, Hopkins was on post-release supervision with the State of North Carolina.
Hopkins is currently in federal custody. He will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement U.S. Attorney King thanked the ATF and CMPD for their investigation of the case.
Assistant U.S. Attorneys David Kelly and Stephanie Spaugh of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Business Owner Pleads Guilty to Failure to Pay Millions of Dollars of TaxesRead the Press Release
KANSAS CITY, Mo. – A Sunrise Beach, Missouri, man pleaded guilty in federal court today to failing to pay more than $2.8 million in payroll taxes from his business and more than $1.1 million in personal income taxes.
Rex Tarwater, 66, waived his right to a grand jury and pleaded guilty before U.S. District Judge Greg Kays to one count of failing to pay over employment taxes and one count of failing to file personal income taxes.
Tarwater is the owner of Semper Blue Professional Services, Inc. Semper Blue provides off-duty police security for public venues, including the Sprint Center, Kansas City Live, and other locations.
By pleading guilty today, Tarwater admitted that he failed to pay over to the Internal Revenue Service payroll taxes withheld from Semper Blue’s employees’ paychecks. From 2015 through 2020, Semper Blue withheld more than $1.9 million in taxes from its employees’ paychecks, including federal income taxes, Medicare and Social Security taxes (commonly known as payroll taxes). However, during that time, Semper Blue made no payments to the Internal Revenue Service, which were due quarterly during each of those years. The total employment tax loss as a result of Tarwater’s failure to pay over withholding taxes was $2,739,712.
Tarwater also admitted that he failed to file personal income tax returns in tax years 2015 through 2020. The total personal income tax loss as a result of Tarwater’s failure to file personal income tax forms was $1,199,611.
Under federal statutes, Tarwater is subject to a sentence of up to six years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by IRS-Criminal Investigation.
Buffalo Couple Pleads Guilty to Selling Heroin Which Led to the Death of A 24-Year-Old-ManRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Genesis Tolentino-Cruz, 28, and Orlando Albert-Arroyo, 27, both of Buffalo, NY, pleaded guilty before Chief U.S. District Judge Elizabeth A. Wolford to conspiracy to possess with intent to distribute, and to distribute, heroin. The charge carries a maximum penalty of 20 years in prison and a fine of $1,000,000.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that on February 27, 2019, Buffalo Police Officers responded to a drug overdose call and found a 24-year-old male deceased. The deceased man’s girlfriend told officers that the day before, she met Cruz and Arroyo at a gas station in Cheektowaga to purchase heroin. Later that night, the girlfriend said that she and the deceased male used some of the heroin purchased from the defendants. The girlfriend went to sleep, and when she awoke, she found her boyfriend was deceased. In March and April, 2019, investigators conducted six controlled purchases of heroin from Cruz and Arroyo. On April 19, 2019, a federal search warrant was executed at Cruz and Arroyo’s residence, during which heroin, ammunition, a rifle, a pistol, and drug processing items were seized.
The pleas are the result of an investigation by the Drug Enforcement Administration, under the direction of Acting Special Agent-in-Charge Timothy Foley, the Buffalo Police Department, under the direction of Commissioner Byron Lockwood, and the Cheektowaga Police Department, under the direction of Chief Brian Gould.Sentencing will be scheduled at a later date.
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Boise Man Pleads Guilty to Transportation for Prostitution and Money LaunderingRead the Press Release
BOISE – A Boise man pleaded guilty to transportation for prostitution and money laundering.
According to court records, between July 2019 and June 2021, Dannie Carr, 37, of Boise, was the manager of a business engaged in the interstate prostitution of two adult females, primarily between Idaho and Washington. Carr coerced the two adult females to engage and remain in the prostitution business by perpetrating domestic violence upon the two adult females.
Carr is scheduled to be sentenced on May 17, 2022 and faces a maximum penalty of twenty years in federal prison, a minimum of five years of supervised release, and a $500,000 fine or twice the amount involved in the offense, whichever is greater.
U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the cooperative efforts of Homeland Security Investigations, Internal Revenue Service - Criminal Investigation, Bellevue, Washington Police Department, and the Transportation Security Administration, which led to charges.
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Bellevue Man Convicted of Receipt and Distribution of Child PornographyRead the Press Release
United States Attorney Jan Sharp announced that Matthew Retchless, 40, of Bellevue, Nebraska, was sentenced today in federal court in Omaha for receipt and distribution of child pornography. United States District Judge Brian C. Buescher sentenced Retchless to 96 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a 5-year term of supervised release. Retchless will also be required to register as a sex offender when he completes his sentence of imprisonment.
In January and February of 2019, investigators received a series of Cyber Tips reporting online accounts (Kik and Tumblr) containing sexually explicit images of children. Some images had been uploaded to the accounts and shared. Based upon the information contained within the Cyber Tips, investigators were able to determine that the images had been uploaded from Retchless’s mobile home in Paradise Lakes (in Bellevue, Nebraska) prior to flooding that destroyed the trailer park in March of 2019.
On April 25, 2019, an investigator obtained a warrant to search the Microsoft account associated with Retchless’s email address. While reviewing mailbox data, the investigator observed email messages sent from Retchless’s email account to six external email addresses containing images of child pornography or child exploitation.
On July 7, 2020, investigators obtained a warrant to search defendant’s residence in Bellevue. Investigators seized defendant’s laptop and his cell phone, which yielded more images containing child pornography and child exploitative material. The forensic examination of the devices confirmed Retchless’s use of the online accounts to share the material with others during the charged timeframe. Law enforcement found more than 100 images and one video.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Omaha FBI's Child Exploitation and Human Trafficking Task Force, Homeland Security Investigations, the Bellevue Police Department, and the Douglas County Sheriff’s Office.
Belgrade meth trafficker sentenced to five years in prisonRead the Press Release
MISSOULA — A Belgrade man who admitted to supplying methamphetamine to others for resale was sentenced today to five years in prison to be followed by five years of supervised release, U.S. Attorney Leif M. Johnson said.
Arthur Ronald Kane, 52, pleaded guilty in September 2021 to possession with intent to distribute meth.
U.S. District Judge Dana L. Christensen presided.
In court documents, the government alleged that in late 2020, the Missouri River Drug Task Force observed Kane make several drug transactions. Kane told investigators that he became a “middle-man” in meth distribution for co-defendant Jared Williams in the winter of 2019 and that he sold meth to two people. Kane also told investigators that he received meth from another co-defendant, Max Dudley Stilson, and agreed that the three of them worked together to distribute drugs. Williams was sentenced to eight years in prison for conviction in the case. An arrest warrant was issued for Stilson, who failed to appear for sentencing after conviction in the case. A third co-defendant, Marty Eugene McDonald, is pending sentencing for conviction in the case.
Assistant U.S. Attorney Jennifer S. Clark prosecuted the case, which was investigated by the Missouri River Drug Task Force and the Montana Highway Patrol.
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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Baraboo Man Sentenced to 37 Months for Illegal Gun PossessionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Anthony James Wilson, 29, Baraboo, Wisconsin pleaded guilty and was sentenced today by Chief U.S. District Judge James D. Peterson to 37 months in federal prison, to be followed by three years of supervised release, for being a felon in possession of a firearm.
On June 3, 2021, Sauk County Sheriff’s deputies were responding to a report of an armed assault and they attempted to stop the suspect vehicle. Wilson was the driver and fled from officers at a high rate of speed. Deputies later took him into custody near a school, which was placed in lockdown as a result of the incident. Wilson was asked about whether he had a gun, and he ultimately said that he did and agreed to show them where he hid it so that school children would not find it. Deputies recovered a Smith & Wesson .357 Magnum revolver loaded with six rounds of ammunition.
Wilson had prior felony convictions including for theft of a firearm. At sentencing, Judge Peterson said that there were significant concerns about the defendant that indicated a need to protect the public.
The charge against Wilson was the result of an investigation conducted by the Sauk County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Corey Stephan.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.