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22 February 2022
Former National Fraternity Treasurer Sentenced to 2 ½ Years in Prison for Embezzling $2.9 MillionRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Curtis Anderson, 60, of Claymont, DE, was sentenced to two years and six months in prison and three years of supervised release, and was ordered to pay nearly $3 million in restitution by United States District Court Judge Timothy J. Savage for embezzling approximately $2.94 million from his former employer, the Kappa Alpha Psi Fraternity, Inc.
In November 2021, the defendant pleaded guilty to four counts of wire fraud and one count of aggravated identity theft in connection with his embezzlement from his employer. Anderson, who had served as the Director of Finance for the fraternity, was authorized to make deposits into the organization’s bank accounts but was not allowed to sign checks. Beginning as early as 2012, the defendant wrote numerous large checks to himself without permission using the signature stamps of authorized signatories, and withdrew cash from the fraternity’s bank accounts without permission. He also wrote checks payable to several other individuals who worked for the fraternity, without their knowledge, and then forged their endorsements, cashed the checks, and pocketed the money. In total, the defendant embezzled over $2.94 million from the fraternity over a six-and-a-half-year period.
“This defendant swindled almost three million dollars from his former employer and covered his tracks well enough that his illegal actions went undetected for many years,” said U.S. Attorney Williams. “Instead of doing the right thing and performing his job honestly for an historic organization that works to benefit and sustain its members, he chose the greedy path. Our Office will continue to work with our law enforcement partners to protect innocent individuals and organizations from being victimized by financial fraud.”
The case was investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, the United States Secret Service and the Federal Deposit Insurance Corporation – Office of Inspector General, and is being prosecuted by Assistant United States Attorney Mary E. Crawley.
Former Lake Oswego Resident Sentenced to Federal Prison for Covid-Relief FraudRead the Press Release
PORTLAND, Ore.—After fleeing federal prosecution and being re-arrested, a former Lake Oswego, Oregon, man was sentenced to federal prison today for stealing funds intended to help small businesses during the COVID-19 pandemic.
David Unitan, aka Daniel Cohen, 47, was sentenced to 61 months in federal prison and three years’ supervised release.
Unitan took advantage of economic relief programs administered by the Small Business Administration (SBA) through Economic Injury Disaster Loans (EIDLs) and the Paycheck Protection Program (PPP), as authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act, signed into law on March 27, 2020, was designed to provide emergency financial assistance to millions of Americans and small businesses suffering the economic effects of the COVID-19 pandemic.
According to court documents, in July 2020, a small business owner contacted the Clackamas County Sheriff’s Office to report that an unknown person had obtained and used personal information belonging to himself, his wife, and their business to establish accounts at a bank in Boston. Sometime later, IRS Criminal Investigation independently opened an investigation into EIDLs and PPP loans obtained under suspicious circumstances by someone purporting to be Daniel Cohen and later confirmed to be Unitan.
A review of SBA records revealed that six EIDL applications had been submitted using the small business owner’s social security number. Of the six applications, two were funded for a total of $295,000. These funds were disbursed into the Boston bank account in June and July of 2020. Investigators soon discovered that a transfer of $100,000 was made from the Boston account to another bank account on June 24, 2020, and that, on the same day, a wire transfer of $77,898 was made to Mackenzie Motor Company in Hillsboro, Oregon.
Investigators contacted the general manager of Dick’s Mackenzie Ford in Hillsboro and learned that an individual named Daniel Cohen had recently purchased a 2020 Ford F-350 Super Duty Lariat truck for $77,898 using a counterfeit California driver’s license. The general manager also told investigators that the individual had shown up at the dealership driving a 2020 Tesla Model X and had provided his insurance card for the Tesla as part of the truck purchase. A review of law enforcement records revealed that the Tesla had recently been impounded by the Lake Oswego Police Department because Unitan had been operating the vehicle with a suspended license.
Investigators compared Unitan’s Oregon DMV photo with the photo on the California driver’s license provided to dealership; the likenesses appeared to match. The small business owner who had originally reported the fraud later confirmed that his company had previously hired Unitan for video production services. The business owner also confirmed the photo on the counterfeit California driver’s license used to purchase the Ford pickup was indeed Unitan.
On December 22, 2020, federal agents and Clackamas County Sheriff’s Office deputies arrested Unitan at his home on a federal criminal complaint charging him with wire fraud, aggravated identity theft, and money laundering. The federal agents also seized the Ford pickup and Tesla sedan, as well as digital evidence that would later confirm Unitan had applied for dozens of EIDL and PPP loans. After his arrest, Unitan appeared contrite and offered to assist the government in investigating other individuals defrauding COVID-relief programs. After his Pretrial Services officer discovered Unitan was spending money from an unauthorized account and asked to meet with him, Unitan fled.
By January 29, 2021, Unitan had taken his girlfriend and her young child on what would be a seven-week run from law enforcement. On March 17, 2021, the U.S. Marshals Service located Unitan and his girlfriend in a Marysville, Washington hotel and arrested him without incident.
On February 17, 2021, while Unitan remained a fugitive, a federal grand jury in Portland formally indicted Unitan on charges of wire fraud, aggravated identity theft, and money laundering. On October 29, 2021, he pleaded guilty to all three charges.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the Clackamas County Sheriff’s Office, IRS Criminal Investigation, and the Small Business Administration Office of Inspector General. It was prosecuted by Ryan W. Bounds, Assistant U.S. Attorney for the District of Oregon.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Former Executive Director of the Hawaii Commission Sentenced to 46 Months in Prison for Embezzling from AmeriCorps and Offering a Bribe in Return for CARES Act GrantsRead the Press Release
WASHINGTON – Stacy Higa, 58, a former public official from Hilo, Hawaii, was sentenced in federal court today to 46 months in prison for embezzling from AmeriCorps and also for offering a bribe in return for grants under the CARES Act.
The announcement was made by Matthew M. Graves, U.S. Attorney for the District of Columbia, Deborah Jeffrey, Inspector General of AmeriCorps, and Steven Merrill, Special Agent in Charge, FBI Honolulu Field Office.
Higa pleaded guilty in October 2021, in the U.S. District Court for the District of Columbia, to embezzlement and offering a bribe. He was sentenced by the Honorable Reggie B. Walton. Following his prison term, Higa will be placed on three years of supervised release. He is required to pay $38,642 in restitution and an identical amount in a forfeiture money judgment. He also will be required to perform 200 hours of community service.
“This Defendant abused his position of trust when he robbed AmeriCorps, a critical federal program designed to help the most vulnerable Americans,” said U.S. Attorney Graves. “His attempt to obtain CARES Act funds through bribery showed a shocking disregard for the critical importance of the program. The Department of Justice will prosecute, to the fullest extent of the law, those individuals who choose to abuse their positions of power to enrich themselves at the cost of the American people.”
“Stacy Higa exploited his position of trust to steal AmeriCorps funds from vulnerable communities and schemed to deny his neighbors money needed for pandemic relief,” said Inspector General Jeffrey of AmeriCorps. “Today’s sentence holds him accountable, reflecting the gravity of his offenses.”
“The citizens of Hawai’i deserve a government free of corruption. Stacy Higa’s actions undermine the respect and reputation of all public officials who have the responsibility to uphold the public’s trust,” said FBI Special Agent in Charge Merrill. “Today’s sentencing reflects the ongoing commitment and dedication of the FBI to work with our partners to identify, investigate, and prosecute those who abuse their authorities and hold them accountable.”
AmeriCorps is a federally funded network of national service programs that address critical community needs, such as increasing academic achievement, mentoring youth, fighting poverty, sustaining national parks, preparing for disasters, and more. AmeriCorps’ national service members commit to service for a set period of time, usually a year, in exchange for a living allowance, funding to be used for college tuition, and other benefits.
From June 2011 until May 2020, Higa, a former Hawaii County councilman and mayoral candidate, served as the Executive Director of the Hawaii Commission for National and Community Service, the state service commission responsible for administering AmeriCorps programs in Hawaii. From February 2018 through his resignation from the Commission, Higa embezzled more than $38,000 in AmeriCorps funds by signing and authorizing contracts and purchase orders between the Hawaii Commission and two companies that he owned or controlled, without disclosing his control of the companies. Higa spent the embezzled funds on personal expenses including paying for approximately $20,000 of elective aesthetic dental care.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was passed by Congress and signed into law in or about March 2020, provided financial relief to individuals, businesses, states, and localities suffering the economic effects of the COVID-19 pandemic. Among other relief programs, the CARES Act created a $150 billion Coronavirus Relief Fund (CRF) to be distributed to states, localities, and tribal governments to support expenditures incurred due to COVID-19. Government entities that received money from the CRF could use the funds, among other things, to make grants to small businesses to reimburse the costs of business interruption caused by required closures and to provide economic relief for those suffering employment interruption.
In August 2020, Hanalei Aipoalani was hired to serve as Honolulu City and County’s Department of Community Service’s CARES Program Administrator and was responsible for administering CRF programs. From August 2020 through October 2020, Higa offered to provide financial benefits to Aipoalani in order to influence the approval of Higa’s applications for two grants totaling $845,000 under the CARES Act. Higa then directed an employee to draft and submit false and backdated invoices under the grants. Higa and Aipoalani discussed opening LLCs on Oahu and using their wives as principals in order to launder the money. As part of his plea agreement, Higa admitted to expecting to receive at least $250,000 in profit from the CARES Act funds.
Aipoalani, 43, of Waianae, Hawaii, separately pleaded guilty to embezzling from AmeriCorps and agreeing to accept a bribe under the CARES Act. Aipoalani was sentenced on June 30, 2021 to 46 months’ imprisonment and ordered to pay full restitution to AmeriCorps.
The Inspector General for AmeriCorps and the FBI’s Honolulu Field Office investigated the case. The case was prosecuted by Assistant U.S. Attorney Leslie A. Goemaat of the Fraud, Public Corruption, and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia.
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The Inspector General for AmeriCorps, the FBI, and the U.S. Attorney’s Office are committed to investigating and prosecuting individuals who defraud the AmeriCorps program and programs under the CARES Act. If you are aware of fraud, waste, or abuse affecting AmeriCorps or any of its programs, contact the AmeriCorps Office of Inspector General Hotline at 1-800-452-8210 or [email protected].
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts.
For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
Additionally, anyone who is aware of fraud, waste, or abuse affecting AmeriCorps or any of its programs, is encouraged to contact the AmeriCorps Office of Inspector General Hotline at 1-800-452-8210 or [email protected].
Former Executive Director of Miss Florida Scholarship Program Indicted for FraudRead the Press Release
Miami, Florida – Today, the former Executive Director of the Miss Florida Scholarship Program made her first appearance in federal court in Miami to face a seven-count indictment charging her with defrauding corporate and individual program donors, including the Children’s Miracle Network and the Everglades Foundation.
Seventy-six-year-old Mary Wickersham (also known as Mary Sullivan and Mary Harvey) served as the Executive Director of the Miss Florida Scholarship Program, Inc., a not-for-profit organization that raises money to provide scholarships to young women through pageants. Wickersham had access to the pageant program’s financial information, as well as its sponsors and donors.
The indictment alleges the following: While serving as the Executive Director, and without notifying the Board of Directors of the Miss Florida Scholarship Program, Wickersham opened a company under the name “Miss Florida,” which she then used to open a business account at Bank of America. Wickersham solicited donations and contributions on behalf of the Miss Florida Scholarship Program from sponsors and donors. Rather than depositing donations into the organization’s legitimate bank account, Wickersham altered donor checks and deposited money into her “Miss Florida” account at Bank of America. Wickersham used the money to pay for her personal expenses, including utilities, shopping, home goods, maid cleaning service, online dating fees, and dining out, it is alleged.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida; Rick Swearingen, Commissioner for Florida Department of Law Enforcement (FDLE); and Joseph W. Cronin, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, made the announcement.
FDLE and USPIS Miami investigated the matter. Assistant U.S. Attorney Yara Klukas is prosecuting the case. Assistant U.S. Attorney Sara Klco is handling asset forfeiture.
Charges contained in an indictment are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-20057.
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Former Deputy Sheriff Charged with Making False Statement While Seeking Paycheck Protection Program BenefitsRead the Press Release
NEW ORLEANS, LOUISIANA-- U.S. Attorney Duane A. Evans announced that TIANNA HART, age 32, of LaPlace was charged with making a false statement via a bill of information filed on February 15, 2022, in the Eastern District of Louisiana.
According to the bill of information, HART, formerly a deputy with the St. John the Baptist Parish Sheriff’s Office, knowingly and willfully made a false statement to the United States Small Business Administration in an application for Paycheck Protection Program (PPP) benefits she submitted in May 2021.
If convicted, HART faces a maximum sentence of up to five years, up to three years of supervised release, a restitution order, a fine of up to $250,000, and a $100 mandatory special assessment fee.
U.S. Attorney Evans reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Secret Service and the St. John’s Parish Sheriff’s Office. Assistant United States Attorney Andre J. Lagarde is in charge of the prosecution.
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Former Craighead County Clerk Pleads Guilty to Wire FraudRead the Press Release
LITTLE ROCK—Former Craighead County Clerk Jacob Kade Holliday pleaded guilty today to taking more than $1.5 million in county money for his personal use. Holliday, 33, of Jonesboro, entered his guilty plea before United States District Court Judge James M. Moody, Jr., who will sentence Holliday at a later date.
In June 2020, Craighead County officials reported that a theft had occurred from the Craighead County Clerk’s office. The bank that managed the Clerk’s office account had flagged suspicious activity, and auditors concluded that approximately $1,579,057.03 was missing and had been moved to Holliday’s personal banking accounts.
Law enforcement interviewed Holliday, who admitted to taking the money to fund his businesses: Holliday Development and Management, LLC, and Total Healthcare, LLC, both of which operated restaurants and coffee shops in Jonesboro. Holliday told investigators he planned to pay the money back, but once the COVID-19 pandemic caused most of his businesses to close, he could not replace the money.
At today’s hearing, Holliday acknowledged that his method was to make a transfer from the county account to one of his personal accounts and then get a cashier’s check from his personal account for the same amount. He pleaded guilty to Count 1 of the indictment, which charged him with wire fraud for his first fraudulent transfer of $101,782.97 on January 29, 2020. In his plea agreement, Holliday agreed to pay $1,579,057.03 in restitution to Craighead County.
The indictment, which was returned by a grand jury on December 1, 2020, charged Holliday with 11 counts of wire fraud. In exchange for Holliday’s guilty plea to Count 1, the remaining charges were dismissed. The full loss amount of over $1.5 million will be submitted to the court for consideration at Holliday’s sentencing hearing.
Judge Moody will sentence Holliday at a later date. The FBI, Arkansas State Police, and Craighead County Sheriff’s Department conducted the investigation. Assistant United States Attorney Allison W. Bragg is prosecuting the case.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Former Brooksville Mayor and Retired Law Enforcement Officer Sentenced to 15 Years for Using A Hidden Camera to Produce Child Sexual Abuse Videos and ImagesRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Edwards Honeywell has sentenced Kevin Hohn (66, Brooksville) to 15 years in federal prison for production of child pornography. Hohn was also ordered to pay a fine of $30,000, a special assessment of $20,000, and $6,000 in restitution to the victims. Hohn will be required to serve 5 years of supervised release upon his release from prison and to register as a sex offender. Hohn had pleaded guilty on November 19, 2021.
According to court documents, in September and December 2020, investigators identified a certain internet protocol (IP) address as having distributed images and a video depicting children being sexually abused. The IP address used to distribute these materials was traced to Hohn’s residence in Brooksville. Investigators determined that Hohn is a retired Special Agent with the Internal Revenue Service - Criminal Investigation, and former mayor of the City of Brooksville.
On February 19, 2021, investigators executed a search warrant at Hohn’s residence and found Hohn sitting in his office at a computer that was connected to an external hard drive. An examination of the external hard drive revealed more than 100 images depicting child sexual abuse materials. The investigators also discovered 40 videos and several hundred images depicting children that had been covertly recorded inside of Hohn’s home. The children were unaware that Hohn was recording them as they were dressing and undressing, exiting the shower, and engaging in other innocent activities. Hohn created screen captures of videos that depicted the children naked and zoomed in on one child’s genitalia.
“While child exploitation is disgusting and vile in all circumstances, it can be especially traumatic when the predator is in a position of leadership and trust,” said HSI Tampa acting Assistant Special Agent in Charge Jennifer Silliman. “Because of the efforts of HSI special agents and the Hernando County and Pasco Sheriff’s Offices, the community can rest assured this criminal will harm no more children.”
This case was investigated by Homeland Security Investigations, with assistance from the Hernando County Sheriff’s Office and the Pasco Sheriff’s Office. It was prosecuted by Assistant United States Attorney Erin Claire Favorit.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Foreign Service Officer and Former Spouse Sentenced for Obtaining U.S. Citizenship by FraudRead the Press Release
ALEXANDRIA, Va. – A California woman and Russian-born man were sentenced last week to a term of prison of 15 and 6 months, respectively, for their involvement in a conspiracy and obtaining citizenship by fraud.
According to court records and evidence presented at trial, Laura Gallagher, 32, a Foreign Service Officer with the U.S. Department of State, and Andrey Kalugin, 36, originally of Russia, conspired to fraudulently obtain lawful permanent resident status and citizenship for Kalugin through his marriage to Gallagher.
Evidence presented at trial demonstrated that the defendants met in law school in 2013. Kalugin was in the U.S. on a student visa that was due to expire in July 2015. The defendants married in June 2015 and submitted applications for Kalugin to obtain his “green card.” The defendants moved from California to Virginia in March 2016 but split up soon thereafter and lived separately from each other. However, they continued with the immigration process.
Gallagher, who was also a California-licensed attorney at the time of the conduct, then prepared for Kalugin an application for 319(b) expeditious naturalization, which is a benefit available to spouses of citizens who are regularly stationed abroad for their employment. The defendants provided materially false responses in the application. Kalugin appeared for an interview on Feb. 5, 2018, with U.S. Citizenship and Immigration Services (USCIS) in Fairfax, where he repeated the false statements to the adjudicating officer. After USCIS approved the application and he received his citizenship, Kalugin fraudulently obtained U.S. Diplomatic and tourist passports. Shortly thereafter, Gallagher filed for divorce. The defendants were convicted at trial on September 10, 2021.
Additionally, the district court judge entered an order revoking Kalugin’s naturalization.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Jessica Moore, Chief of the Criminal Investigations Division of the U.S. Department of State’s Diplomatic Security Service, made the announcement after sentencing by U.S. District Judge T.S. Ellis, III.
Assistant U.S. Attorneys Raizza K. Ty and Morris R. Parker, Jr. prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-cr-43.
First Defendant in $25 Million, Prison-Based Unemployment Insurance Fraud Scheme Pleads GuiltyRead the Press Release
FRESNO, Calif. — Daryol Richmond, 31, a Kern Valley State Prison inmate pleaded guilty today to conspiracy and aggravated identity theft charges for his role in a $25 million unemployment insurance fraud scheme during the COVID-19 pandemic, U.S. Attorney Phillip A. Talbert announced.
According to the plea agreement, Richmond obtained the personally identifiable information (PII) for other individuals, including inmates and non-inmates, without their authorization. He then provided this information to his co-conspirators inside and outside of prison through emails and jail calls. The co-conspirators then filed applications for unemployment insurance with the California Employment Development Department (EDD) that falsely stated that the inmates, minor children, and others previously worked as clothing merchants, handymen, and other jobs, and recently became unemployed because of the COVID-19 pandemic. In the plea agreement, Richmond acknowledged that he was responsible for $1.4 million worth of the fraudulent claims.
This case is the product of an investigation by the Federal Bureau of Investigation, California Department of Corrections and Rehabilitation, EDD, and Department of Labor Office of Inspector General. Assistant U.S. Attorney Joseph Barton is prosecuting the case.
Richmond is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Nov. 14, 2022. Richmond faces up to 20 years in prison and a $250,000 fine for the conspiracy charge. He also faces a mandatory, additional two years in prison for the aggravated identity theft charge. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account several variables.
Charges are pending against the other defendants in this case: Telvin Breaux, 29, an inmate at the California Correctional Institution in Tehachapi; Holly White, 30, of Los Angeles; Cecelia Allen, 33, of Downey; Fantasia Brown, 33, of Los Angeles; Tonisha Brown, 28, of Los Angeles; Fantesia Davis, 32, of Victorville; and Shanice White, 28, of Hawthorne. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Federal Jury Finds Three Men Guilty of Hate Crimes in Connection with the Pursuit and Killing of Ahmaud ArberyRead the Press Release
Following a two-week trial, three Georgia men were convicted today by a federal jury in the Southern District of Georgia for committing hate crimes and attempting to kidnap Ahmaud Arbery, a young Black man who was jogging on the public streets of a Brunswick neighborhood. Two of the men were also convicted of charges that they used firearms during that crime of violence.
Travis McMichael, 35; Travis’s father, Gregory McMichael, 65; and William “Roddie” Bryan, 51, were each convicted of one count of using force and threats of force to intimidate and interfere with Mr. Arbery’s right to use a public street because of his race.
In addition to the hate crime charges, the defendants were found guilty of attempted kidnapping. Finally, Travis McMichael was found guilty of using, carrying, brandishing, and discharging a Remington shotgun in the course of the hate crime, and Gregory McMichael was found guilty of using, carrying, and brandishing a .357 Magnum revolver.
“Today’s verdict makes clear that the Justice Department will continue to use every resource at its disposal to confront unlawful acts of hate, and to hold accountable those who perpetrate them,” said Attorney General Merrick B. Garland. “Although we welcome the jury’s verdict, the only acceptable outcome in this matter would have been Mr. Arbery returning safely to his loved ones two years ago. No one in this country should have to fear the threat of hate fueled violence. No one should fear being attacked or threatened because of what they look like, where they are from, whom they love, or how they worship. And no one should fear that if they go out for a run, they will be targeted and killed because of the color of their skin.”
Evidence at trial revealed that on Feb. 23, 2020, defendants Travis and Gregory McMichael armed themselves with a Remington shotgun and a .357 Magnum revolver, respectively, and chased Mr. Arbery. The pursuit passed by the home of defendant William “Roddie” Bryan, who did not know Mr. Arbery, but decided to get into his own truck to join the McMichaels in their pursuit of Mr. Arbery. For four to five minutes, the three defendants pursued Mr. Arbery through the neighborhood and tried to box in Mr. Arbery with their trucks. During the chase, Mr. Arbery was running with his hands empty and in plain view. He never spoke a word to the defendants, and never made any threatening sound or gesture; rather, he repeatedly tried to run away from the defendants. Ultimately, after Mr. Arbery had already changed direction multiple times, trying to escape from the defendants, Travis McMichael got out of his truck and pointed a shotgun directly at Mr. Arbery. When Mr. Arbery tried to defend himself, Travis McMichael shot him in the chest. Mr. Arbery, wounded, grabbed for the gun. During a struggle over the gun, Travis McMichael fired two more shots into Mr. Arbery, who then stumbled a few steps and fell face-first onto the pavement, where he died in the street.
Evidence at trial revealed that the defendants had strongly held racist beliefs that led them to make assumptions and decisions about Mr. Arbery that they would not have made if Mr. Arbery had been white.
Travis McMichael’s social media comments and text messages to friends showed that he had for many years associated Black people with criminality and had expressed a desire to see Black people — particularly those he viewed as criminals — harmed or killed, and that he had expressed support for vigilante efforts to catch or harm criminals.
Witnesses testified about deeply racist comments Gregory McMichael made to people he barely knew. One witness testified that during a brief encounter in a professional capacity, she commented, in passing, that it was “too bad” that Julian Bond, a Black Georgia civil rights leader, had recently passed away; Gregory angrily responded with a five-minute rant about Black people and said that he wished Mr. Bond had “been put in the ground years ago. He was nothing but trouble. Those Blacks are nothing but trouble.”
William Bryan’s text messages revealed that when defendant Bryan learned, just four days before the shooting, that his daughter was dating a Black man, he referred to the boyfriend as a “ni---” and as a “monkey.” There were other messages on social media in which Bryan referred to other Black people using those slurs and another racial slur: “bootlip.” When the police spoke to Bryan about Mr. Arbery’s death, he admitted that he had never seen or heard anything about Mr. Arbery before; he just saw a Black guy being chased and figured he must have done something wrong, and that his “instinct” told him that Mr. Arbery must be a thief or that maybe had shot someone.
The evidence at trial proved that race formed a but-for cause of the defendants’ actions on Feb. 23, 2020, meaning that, without that factor, the defendants would not have chased down a Black man whom they assumed, without evidence, was a criminal.
All three defendants face sentences of up to life in prison.
All three defendants were previously convicted in a separate state trial with felony murder and multiple other felonies for their roles in Mr. Arbery’s killing. The McMichaels were each sentenced to life imprisonment without the possibility of parole; Bryan was sentenced to life imprisonment with the possibility of parole.
The announcement was made by Attorney General Garland, Assistant Attorney General Kristen Clarke of the Justice Department's Civil Rights Division, U.S. Attorney David Estes of the Southern District of Georgia, and Acting Special Agent in Charge Philip Wislar of the FBI.
This case was investigated by both the Georgia Bureau of Investigation and the FBI, and is being prosecuted by Assistant U.S. Attorney Tara Lyons of the Southern District of Georgia, and Deputy Chief Bobbi Bernstein and Special Litigation Counsel Christopher J. Perras of the Civil Rights Division.
Federal Jury Convicts Okemah Resident of Murder in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that Elijah Dewayne Hicks, age 22, of Okemah, Oklahoma was found guilty by a federal jury of Murder in Indian Country; Use, Carry, Brandish, and Discharge of a Firearm During and in Relation to a Crime of Violence; and Causing the Death of a Person in the Course of a Violation of Title 18 United States Code § 924(c).
The jury trial began with testimony on Tuesday, February 15, 2022, and concluded on Thursday, February 17, 2022, with a verdict of guilty on all three criminal counts. Based on the jury’s verdicts, the defendant could potentially receive up to life imprisonment.
During the trial, the United States presented evidence that on August 7, 2021, the defendant intentionally killed his cousin, Timothy Ray Buckley, by shooting him four times, and then fled before law enforcement could arrive, resulting in a four-month long manhunt by the FBI. The incident occurred in Okemah, Oklahoma.
The guilty verdicts were the result of an investigation by the Federal Bureau of Investigation, Oklahoma State Bureau of Investigation, Muscogee (Creek) Lighthorse Police, and the Okemah Police Department.
“I am thankful for the cooperative efforts of our local, state, tribal, and federal law enforcement partners in investigating and prosecuting the defendant,” said United States Attorney Christopher Wilson. “Prosecuting violent crime in Indian Country, like the ruthless act of the defendant in this case, remains the priority of the United States Attorney’s Office, and I am proud of the tireless efforts and excellent work of our attorneys, victim assistants, witness coordinators, and support staff each day.”
"The FBI is tasked with investigating the most heinous crimes in Indian Country, including murder. We are committed to not only investigating these crimes but to holding violent offenders like Mr. Hicks accountable for their actions,” said Edward J. Gray, Special Agent in Charge of the FBI Oklahoma City Field Office. “We will continue working with our partners to obtain justice for the victims and to protect the communities we serve in Eastern Oklahoma.”
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted the case because the defendant is a member of a federally recognized Indian tribe and the crimes occurred in Okfuskee County, within the boundaries of the Muscogee (Creek) Nation Reservation, and within the Eastern District of Oklahoma.
The Honorable Bernard M. Jones, II, U.S. District Judge in the United States District Court for the Western District of Oklahoma in Oklahoma City, presided over the trial and ordered the completion of a presentence report. Sentencing will be scheduled following completion of the report. Hicks was remanded to the custody of the United States Marshal pending the imposition of sentencing.
Assistant United States Attorney Charles Bucca and Assistant United States Attorney Jordan Howanitz represented the United States.
Fort Washakie Man Charged with Assault by Strangulation and SuffocationRead the Press Release
United States Attorney Bob Murray announced today that XAVIER BRANDON GUINA, 25, of Fort Washakie, Wyoming was charged with assault by strangulation and suffocation. Guina appeared for an arraignment hearing on February 15, 2022, before United States Magistrate Judge Teresa M. McKee.
A trial has been set for April 11, 2022, before United States District Court Chief Judge Scott W. Skavdahl. If convicted, Guina faces up to 10 years imprisonment, up to a $250,000 fine, three years of supervised release and a $100 special assessment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This crime is being investigated by the Federal Bureau of Investigation with assistance from the Bureau of Indian Affairs. Assistant United States Attorney Kerry J. Jacobson is prosecuting the case.
An indictment merely contains allegations, and every defendant is presumed innocent unless and until proven guilty.
Case No. 21-cr-00129-SWS
Evans City Fiduciary Indicted for Misappropriating Funds from a Disabled Veteran’s AccountRead the Press Release
PITTSBURGH, PA – A resident of Evans City, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of misappropriation by a fiduciary, United States Attorney Cindy K. Chung announced today.
The one-count Indictment named Robert Bruce Ralston, age 75, as the sole defendant.
According to the Indictment, from in and around March 2017 to in and around March 2018, Ralston, who was the appointed fiduciary for a disabled veteran, caused approximately 44 unauthorized withdrawals by check from the disabled veteran’s beneficiary account and transferred the money from these checks to himself, totaling approximately $34,411.77. The defendant used the disabled veteran’s beneficiary funds to engage in transactions for the defendant’s own personal benefit, including paying for his own phone bills, medical bills and mortgage payments, all in violation of the defendant’s role and responsibilities as a fiduciary.
The law provides for a maximum total sentence of not more than five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christopher M. Cook is prosecuting this case on behalf of the government.
The U.S. Department of Veterans Affairs, Office of Inspector General - CID conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Doniphan man sentenced to 10 Years in federal prison for possessing child pornographyRead the Press Release
CAPE GIRARDEAU - The United States Attorney's Office announced that JAMES TAYLOR, age 45, of Doniphan, Missouri, was sentenced to 120 months (10 years) in federal prison for the offense of Possession of Child Pornography. Taylor appeared for his sentencing hearing today before United States District Judge Matthew T. Schelp at the federal courthouse in Cape Girardeau, Missouri.
According to court documents, law enforcement officials responded to Taylor’s residence in March 2021 after receiving a cyber tip that he was using Facebook to upload files containing child pornography. During an examination of Taylor’s mobile phone, investigators discovered several images of child pornography. At his guilty plea hearing last year, Taylor admitted that he used his mobile phone to obtain the images over the internet. At the time of this investigation, Taylor was already required to register as a sex offender after a 1998 conviction from the State of Illinois for Criminal Sexual Abuse. After serving his 120-month sentence, Taylor will be placed on a lifetime term of supervised release. He will also be required to continue registering as a sex offender.
This case was investigated by the Poplar Bluff Police Department and the SEMO Cybercrimes Task Force. Assistant United States Attorney Jack Koester handled the prosecution for the government.
Detroit Man Sentenced on Charges of Carjacking and Firearms OffensesRead the Press Release
DETROIT - A Detroit man was sentenced today to 145 months in federal prison after having pleaded guilty to charges of carjacking and brandishing a firearm during and in relation to a crime of violence, announced United States Attorney Dawn Ison.
Ison was joined in the announcement by Acting Special Agent in Charge Josh Hauxhurst, Federal Bureau of Investigation, Detroit Division.
Ivan Xavier Armstrong, 38, was sentenced before US District Judge Stephen J. Murphy in Detroit.
“Violent offenders like Mr. Armstrong are our focus,” stated US Attorney Ison. “We are committed to bringing the full weight of the justice system to bear on individuals who are making our neighborhoods unsafe and who prey upon our citizens.”
"Mr. Armstrong's case is the latest in a series of joint investigations that have seen defendants sentenced to significant federal prison sentences," said Acting Special in Charge Josh Hauxhurst of the FBI's Detroit Division. "We are committed to working alongside the Detroit Police Department to curb these violent offenses and to bring a sense of safety to our communities."
According to court records, during the early morning hours of April 3, 2020, Armstrong went on a two-hour violent crime spree that included kicking in the front door of his mother’s house located on the eastside of Detroit, preventing her from leaving the home, damaging her phone and firing shots at her house. Armstrong then left the area on foot and approached a man sitting in his car. Armstrong tapped the window with his gun and ordered the victim to get out the car. Armstrong then racked the gun at which time the victim exited his vehicle. The victim was then robbed of his wallet which contained his retired police officer credentials.
Additional facts presented to the court established that at approximately 5:04 am, Detroit Police responded to a call for shots fired at a gas station, located at 14820 East Jefferson Avenue in the city of Detroit. The shooter was gone at the time of their arrival, however a review of high-definition video taken by numerous cameras installed at the gas station revealed that Armstrong arrived at the gas station in the Hyundai Sonata he had carjacked from the retired police officer. The video from the gas station shows a physical fight ensued and that Armstrong fired a handgun at people inside the store. No one was injured. Later that morning, Armstrong was arrested after having broken into a residence on Alter Rd, in Detroit.
This case was investigated by agents of the FBI and was prosecuted by Assistant United States Attorneys Jeanine Brunson and Caitlin Casey.
Defendants Sentenced for Scheme to Defraud Local Housing Programs of over $100,000Read the Press Release
HONOLULU, Hawaii – Raelene Rodrigues, 62, of Honolulu, Hawaii was sentenced today. Rodrigues was the last of four defendants convicted and sentenced in connection with charges involving a scheme to defraud federally funded local housing programs for over $100,000 from approximately April 2015 to August 2017. Co-defendants Leopoldo Bitte, Jr., 38, of Hilo Hawaii, Gregory Lau, 40, of San Leandro, California, and separately-charged defendant Kalani Lopez, 38, of Honolulu, Hawaii, were recently sentenced for their involvement in the same scheme.
On March 18, 2021, Bitte, Jr. pleaded guilty to one count of wire fraud conspiracy and one count of aggravated identity theft. On March 24 and 29, 2021, Lau and Lopez each respectively pleaded guilty to one count of wire fraud conspiracy for their involvement in the same scheme. Rodrigues pled guilty on September 30, 2021 to one count of wire fraud conspiracy and two counts of wire fraud.
According to the facts stated in court documents and the defendants’ plea agreements, as well as statements in court, Bitte, Jr. worked for the Institute for Human Services (“IHS”) as a housing specialist. IHS is a Hawaii-based non-profit organization that provides financial assistance to individuals and families at risk for homelessness. Bitte, Jr. entered into agreements with Rodrigues, Lau and Lopez to defraud IHS by falsely representing that Rodrigues, Lau and Lopez were landlords eligible to receive IHS funds dedicated to the Homeless Prevention & Rapid Rehousing (“HPRP”) and Clean and Sober programs. A portion of those IHS funds had been provided through federal grants from the U.S. Department of Housing and Urban Development (“HUD”). Bitte, Jr. created fake rental agreements by using the names and personal identifying information of other individuals who had applied legitimately for services with IHS and falsely identified Rodrigues, Lau and Lopez as the landlords. Bitte, Jr. used these fake rental agreements and other documentation to cause IHS to generate checks payable to Rodrigues, Lau and Lopez. Rodrigues, Lau and Lopez then cashed the checks and split the proceeds with Bitte, Jr. As a result of this scheme, HIS generated 34 checks totaling over $100,000 payable to Rodrigues, Lau, and Lopez.
On August 11, 2021, Bitte, Jr. was sentenced to 38 months’ imprisonment --- 14 months on one count of wire fraud conspiracy and 24 months for one count of aggravated identity theft, to be served consecutively, followed by two years of supervised release. On June 15, 2021, Lau was sentenced to 30 days imprisonment followed by three years of supervised release. Lopez was sentenced on August 2, 2021, to three years of probation. Today, Rodrigues was sentenced to 12 months and one day imprisonment followed by three years of supervised release. All four defendants are required to make restitution to IHS and its insurer.
“This case illustrates how defrauding federally funded programs does more than just illegally take money from the federal government -- it also deprives struggling members of our community of the monetary assistance they need to subsist,” said U.S. Attorney Clare E. Connors. “These convictions bring to justice those who enrich themselves at the expense of those in need of financial assistance.”
“These defendants’ fraudulent actions jeopardize the integrity of HUD programs that are designed to assist ordinary Americans who are trying to fulfill their dreams of homeownership,” said Assistant Special Agent-in-Charge Mark Kaminsky with the Housing and Urban Development Office of Inspector General. “HUD OIG will seek out and hold accountable individuals who steal taxpayer dollars to support their own interests.”
The case was investigated by the HUD Office of Inspector General and prosecuted by Assistant U.S. Attorney Michael F. Albanese.
Davenport Man Sentenced to Federal Prison for Stealing FirearmsRead the Press Release
DAVENPORT, Iowa – Justin Christopher Reed, age 33, of Davenport, was sentenced on February 17, 2022, to 30 months in prison for Stealing Firearms from a Licensed Dealer. Reed was ordered to serve three years of supervised release to follow his prison term and pay restitution in the amount of $2,450. Reed was also ordered to pay $100 to the Crime Victims’ Fund.
According to court documents, Bettendorf Police were called to R&R Sports by the owner in response to a motion alarm. Damage was observed to the business and four guns were missing. The investigation led to the arrest of Reed and all four guns were recovered. On October 8, 2021, Reed pleaded guilty to the charge.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Bettendorf Police Department, Davenport Police Department and the Alcohol, Tobacco, Firearms and Explosives investigated the case. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Covington Woman Pleads Guilty to Theft of Social Security FundsRead the Press Release
NEW ORLEANS – United States Attorney Duane A. Evans announced that HAYDEE ARMAS SANTANA (“SANTANA”), age 58, of Covington, Louisiana, pled guilty on February 17, 2022 to Theft of Government Funds, in violation of Title 18, United States Code, Section 641.
According to documents filed in federal court, beginning in 2015, SANTANA filed for, and became eligible for, Social Security Supplemental Security Income (“SSI”) disability payments. SANTANA’s SSI application concealed an Iberia Bank account and her ownership in at least two additional pieces of real property, including one located in Miramar Beach, FL. In total, SANTANA fraudulently obtained over $31,000.00 in SSA SSI disability benefits.
SANTANA faces a maximum penalty of ten (10) years imprisonment, followed by up to three (3) years of supervised release, a fine of up to $250,000.00, and a mandatory $100 special assessment fee.
Sentencing in this matter is scheduled for May 12, 2022, before United States District Judge Barry W. Ashe.
U.S. Attorney Evans praised the work of the Social Security Administration, Office of Inspector General and the Louisiana State Police. The prosecution of this case is being handled by Assistant U. S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit.
Covid Fraudster Returned to Custody Following Discovery of Las Vegas Casino ActivitiesRead the Press Release
RALEIGH, N.C. – A Greenville man was returned to custody after violating the terms of release pending service of his prison sentence.
In May of 2021, Shawn Allen Farmer, 53, of Greenville, was sentenced to 15 months in prison for fraudulently obtaining Covid-19 disaster loans, and for engaging in bank fraud using stolen Social Security numbers. Although initially held in custody, Farmer was released to seek medical care before reporting to prison. While on release, Farmer was under the supervision of the United States Probation Office and was not permitted to travel.
In January of 2022, members of the Covid Fraud Benefits Task Force discovered that Farmer had travelled to Hawaii without permission and obtained a Hawaii driver’s license. Agents further learned that Farmer had cashed out as much as $92,000 at casinos in Las Vegas. Significantly, when identifying himself for tax purposes, Farmer utilized a Social Security number that did not belong to him. At the time of these events, Farmer still owed more than $42,000 on his federal criminal judgment.
Farmer was arrested following the discovery of these events. Last Friday in federal court, United States District Judge Terrence W. Boyle revoked Farmer’s release and directed that he be sent to prison to serve his sentence.
The defendant previously pled guilty to False, Fictitious, and Fraudulent Claims, in violation of Title 18, United States Code, Section 287; and Bank Fraud and Aiding and Abetting, in violation of Title 18, United States Code, Section 1344 and 2.
The Covid Fraud Benefits Task Force is a collection of law enforcement agencies assembled by the United States Attorney’s Office to investigate and prosecute individuals and companies that defrauded government programs providing financial relief in the midst of the Covid crisis.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after the defendant’s release was revoked. The Internal Revenue Service Criminal Investigation investigated the case and Assistant U.S. Attorney William M. Gilmore served as the prosecutor.
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. 5:20-CR-526-BO.
Construction Company Owner Sentenced to Prison for Not Filing Tax ReturnsRead the Press Release
A Texas man was sentenced today to one year in prison for willfully failing to file tax returns.
According to court documents, Arturo Alejandro Cruz, of Houston, did not file tax returns with the IRS from 2011 through 2017 despite earning more than the minimum filing threshold each year. In 2012, for example, Cruz earned more than $460,000 from his co-ownership of a commercial construction business and the sale of that business. Cruz deposited some of this income into a bank account he held in the name of a shell company. Cruz spent the funds on personal items such as real estate and gambling.
In addition to the term of imprisonment, U.S. District Judge Kenneth M. Hoyt ordered Cruz to serve one year of supervised release and to pay approximately $164,032 in restitution to the IRS.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorneys William Montague and Parker Tobin of the Tax Division prosecuted the case.
Columbia Gorge Drug Trafficker Sentenced to Federal PrisonRead the Press Release
PORTLAND, Ore.—A drug trafficker known to frequent Hood River, Oregon, and other communities in the Columbia River Gorge, was sentenced to federal prison today after fleeing a traffic stop at nearly 120 mph, crashing his vehicle, and being found in possession of methamphetamine, heroin, and two firearms.
Jonathen Michael Martinez, 42, most recently a Portland resident, was sentenced to 84 months in federal prison and five years’ supervised release.
According to court documents, on January 25, 2019, a Hood River Police Department officer observed Martinez driving an Audi sedan in Hood River. The officer recognized Martinez from previous contacts and was aware he had an outstanding arrest warrant. When the officer initiated a traffic stop, Martinez fled eastbound on Interstate 84 at nearly 120 mph. Martinez exited the highway, lost control of his vehicle, crashed, and briefly fled on foot before surrendering. His vehicle was found to contain more than 600 grams of methamphetamine, 30 grams of heroin, and two firearms.
At the time of his arrest, Martinez was on probation for a state drug trafficking conviction. He has 23 prior criminal convictions for various drug, weapon, theft, and assault offenses as well as several for resisting, eluding, and obstructing officers during previous encounters with law enforcement.
On June 9, 2020, a federal grand jury in Portland returned a three-count indictment charging Martinez with possessing a firearm as a convicted felon and possessing with intent to distribute methamphetamine and heroin. On November 15, 2021, he pleaded guilty to possessing with intent to distribute methamphetamine.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the Hood River Police Department with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Thomas H. Edmonds and Byron Chatfield, Assistant U.S. Attorneys for the District of Oregon.
Colorado Man Sentenced to Life in Prison on Murder ChargeRead the Press Release
United States Attorney Dennis R. Holmes announced that a Denver, Colorado, man convicted of First Degree Premeditated Murder, First Degree Felony Murder, Conspiracy to Commit Assault, Use of a Firearm During a Crime of Violence, and Possession of Ammunition by a Prohibited Person was sentenced on February 18, 2022, by Judge Jeffrey L. Viken, U.S. District Court.
Adan Corona, a/k/a “Ace Boogie,” age 35, was sentenced to life in federal prison for the murder and an additional ten years on the firearm charge, to run consecutively, and ordered to pay a $500 special assessment to the Federal Crime Victims Fund.
Corona was indicted by a federal grand jury on November 22, 2017, and was convicted of the charges by a federal jury following a two-week long trial in Rapid City, South Dakota, in September 2021.
The conviction stems from the October 16, 2016, shooting death of Vincent Von Brewer III in front of the SuAnne Big Crow Center in Pine Ridge, South Dakota. Corona, along with Francisco Villanueva, shot Brewer 15 times with an assault rifle and a 9mm handgun, as Brewer attempted to flee from the defendants. Villanueva was previously sentenced on November 5, 2021, to two consecutive life sentences in federal prison.
The investigation was conducted by the Federal Bureau of Investigation, Oglala Sioux Tribe Department of Public Safety Criminal Investigations, and the Denver and Aurora, Colorado, Police Departments. The investigation was also supported by numerous other state and federal law enforcement agencies.
Assistant U.S. Attorneys Sarah Collins and Benjamin Patterson prosecuted the case.
Corona was immediately remanded to the custody of the U.S. Marshals Service.
Charleston Man Pleads Guilty to Cocaine DistributionRead the Press Release
CHARLESTON, W.Va. – A Charleston man pleaded guilty today to four counts of distribution of cocaine.
According to statements made in court, Jason Edward D’Arco, 40, sold a total of almost three-quarters of a pound of cocaine to a confidential informant on four occasions in January and February 2020. The drug sales occurred at Jimmy John’s sandwich shop in Charleston and D’Arco’s residence.
D’Arco faces up to 80 years in prison when he is sentenced on May 25, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Charleston Police Department. The Drug Enforcement Administration (DEA) provided assistance during the investigation.
Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant U.S. Attorney Nowles Heinrich is prosecuting the case.
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. 2:21-cr-00263.
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Central Florida Man Charged with Almost $20 Million in FraudRead the Press Release
Orlando, FL –United States Attorney Roger B. Handberg announces that Nikesh Ajay Patel (38, formerly from Orlando) has been arraigned on charges related to almost $20 million in fraud that he perpetrated while on federal pretrial release. Patel has been charged with one count of conspiracy to commit wire fraud, three counts of wire fraud, one count of conspiracy to commit money laundering, and eight counts of money laundering. Patel faces a maximum penalty of 30 years in federal prison for each count of conspiracy and wire fraud and up to 20 years in federal prison for each count of money laundering. His trial is currently scheduled for the April 2022 trial term.
According to court documents, in 2014, Patel, a Central Florida resident, was charged by the U.S. Attorney’s Office for the Northern District of Illinois for a $179 million fraud scheme. He was arrested and released on bond. For the next several years, Patel claimed that he was cooperating with authorities and using his business skills to get funds to repay some of what he owed. In fact, Patel had devised a new scheme that netted him almost $20 million.
Patel’s new fraud scheme involved three parts. First, Patel fabricated fraudulent loan documents that falsely represented that a bank in Miami had authorized loans to be made to convert hotels in rural areas into assisted living facilities. Although the bank in Miami exists, it had never made any of the loans. The person who was listed as signing the loans (“Ron Elias”) does not exist, but was a fictitious identity used by Patel to perpetrate his conspiracy and scheme. Second, Patel applied to the United States Department of Agriculture (USDA) to guarantee the fake loans pursuant to its Business and Industry Guaranteed Loan Program. Third, after the USDA agreed to guarantee the fake loans, Patel sold the guaranteed portion of the fake loans to the Federal Agricultural Mortgage Corporation, also known as Farmer Mac.
Patel executed the scheme on three occasions, receiving almost $20 million in proceeds. Patel used a portion of the funds from that scheme to pay some of his restitution, but he was saving much of it to flee the United States.
Patel’s sentencing in the Northern District of Illinois was set for January 9, 2018. Three days before that, Patel was arrested at the airport in Kissimmee. Patel had chartered a flight to Ecuador where he was going to request political asylum and live off the proceeds that he obtained from his new scheme. Instead, Patel’s bond was revoked and the U.S. Marshals Service transported him to the Northern District of Illinois. On March 6, 2018, Patel was sentenced to 25 years in federal prison for his case in the Northern District of Illinois.
Patel’s indictment in the Middle District of Florida relates to the conspiracy and fraud scheme that he executed while on he was pretrial release.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation and the United States Department of Agriculture, Office of Inspector General. It is being prosecuted by United States Attorney Roger B. Handberg.
Carthage Man Indicted for Child Pornography on Workplace ComputerRead the Press Release
SPRINGFIELD, Mo. – A Carthage, Missouri, man was indicted by a federal grand jury today after child pornography was found on his workplace computer.
Shane Tyler Barton, 55, was charged with receiving and distributing child pornography in an indictment returned by a federal grand jury in Springfield, Mo. Today’s indictment replaces a criminal complaint that was filed against Barton on Feb. 14, 2022.
According to an affidavit filed in support of the original criminal complaint, the director of information technology for H.E. Williams, Barton’s employer, was alerted to a suspected virus on Barton’s company-issued computer that was in Barton’s office and connected to the business network. On Jan. 5, 2022, he observed an unauthorized anti-virus program on the computer and discovered numerous files that contained adult and child pornography. He notified management of the violation of company policy. While doing so, he noticed the files were being deleted. Fearing that Barton was possibly tampering with evidence, he locked Barton out of the network and his company-issued computer.
Barton was placed on leave, the affidavit says, pending the resolution of an internal investigation. He was instructed to turn over his company-issued iPhone. A forensic examination of the computer identified approximately 10,000 images and approximately 100 video files of suspected child pornography, the affidavit says, as well as additional video files of suspected child pornography on the iPhone.
Barton resigned from his position with the company a couple of weeks later.
The charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jessica R. Sarff. It was investigated by the FBI and the Southwest Missouri Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Carjacking Prevention CampaignRead the Press Release
SAN JUAN, Puerto Rico –The United States Attorney for the District of Puerto Rico, W. Stephen Muldrow, and the Federal Bureau of Investigation (FBI) Special Agent in Charge Joseph González, announced today the launch of a carjacking education and prevention campaign with the collaboration of the Puerto Rico Police Bureau’s Stolen Vehicles Section and the Puerto Rico Department of Justice.
The public service campaign aims to raise awareness about the different safety measures that the public can adopt to prevent and protect themselves from a carjacking.
“In 2019, Puerto Rico reported more than 500 carjackings and more than 3,000 stolen vehicles. Although these numbers have decreased during the past two years, law enforcement agencies continue investigating hundreds of carjackings and thousands of vehicle thefts per year,” said U.S. Attorney Muldrow. “The U.S. Attorney’s Office, along with our federal and state partners, have developed this awareness campaign to protect the public from these crimes. The tips we are sharing will contribute to your safety and wellbeing.”
“Carjackings are crimes of opportunity and our main objective with this campaign is to make people aware of behaviors which may create opportunities for these criminals to attack,” said Joseph González, FBI Special Agent in Charge. “The best approach to violent crime is prevention and the first step in prevention is education. We hope the people will heed our advice to stay alert and thus safe. A car can be replaced, your life is irreplaceable.”
“The Puerto Rico Department of Justice works strategically alongside the federal authorities to process carjacking or stolen vehicle incidents in the most effective manner. We are united by the commitment to remove criminals from the streets of our island and process them for their crimes,” said Domingo Emanuelli, Secretary of the Puerto Rico Department of Justice. “In this instance, we joined efforts to educate citizens on how to protect themselves and avoid becoming victims of this type of crime. The protection and wellbeing of our people are our priorities.”
“To be a victim of a carjacking is one of the worst experiences a citizen can go through. However, knowing how to handle a situation of this nature can be the best weapon to face such an event and come out unscathed,” said Inspector Carlos Nazario, Coordinator of the Criminal Investigation Centers (CIC, for its acronym in Spanish) of the Puerto Rico Police Bureau. “Therefore, in coordination with our colleagues at the federal level, we will be providing guidance to communities as well as through the media. By doing this, we can further expand the message and reach a greater number of citizens.”
The campaign focuses on the following tips to prevent carjackings:
- Park in well-lit areas and don’t leave valuable items in your vehicle
- Always be aware of your surroundings, particularly in gas stations, when arriving at your residence, and near ATMs.
- Equip your car with a GPS tracker
- Lock your doors while driving
- Don’t stop for stranded strangers along the road. Note their location and pull over in a safe place to call for help.
Carjackers look for opportunities to attack distracted victims. Some of these opportunities are at: self-serve gas stations, ATM machines, parking garages, residential driveways, desolate intersections with stop lights, and highway exit ramps.
A carjacking can happen at any time. Never confront the carjacker, your life is more important and valuable. If you are a victim or witness of a crime, please report to tips.fbi.gov or call (787) 987-6500.
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Campaña de prevención de CarjackingsRead the Press Release
SAN JUAN, Puerto Rico – El Fiscal de los Estados Unidos para el Distrito de Puerto Rico, W. Stephen Muldrow, y el Agente Especial a Cargo del Negociado Federal de Investigaciones (FBI, por sus siglas en inglés), Joseph González, anunciaron hoy el lanzamiento de una campaña de educación y prevención de carjackings con la colaboración de la Sección de Vehículos Hurtados del Negociado de la Policía de Puerto Rico y el Departamento de Justicia de Puerto Rico.
La campaña de servicio público tiene como objetivo concienciar sobre las diferentes medidas de seguridad que la ciudadanía puede adoptar para prevenir y protegerse de un carjacking.
“En el 2019, en Puerto Rico se reportó más de 500 carjackings y más de 3,000 vehículos robados. Aunque estos números han disminuido durante los últimos dos años, las agencias de ley y orden continúan investigando cientos de carjackings y miles de robos de vehículos por año”, dijo el fiscal federal Muldrow. “La Fiscalía Federal, junto con el FBI y el Negociado de la Policía hemos desarrollado esta campaña de concientización para proteger al público de estos delitos. Los consejos que compartimos contribuirán a su seguridad y bienestar”.
“Los carjackings son crímenes de oportunidad y nuestro objetivo primario con esta campaña es crear conciencia en el pueblo sobre comportamientos que podrían crear la oportunidad para que estos criminales ataquen”, dijo Joseph González, Agente Especial a Cargo del FBI. “La mejor estrategia contra el crimen violento es la prevención y la prevención comienza con la educación. Esperamos que el público tome nuestro consejo de mantenerse alerta y seguro. Un carro se puede remplazar, su vida es irremplazable”.
“El Departamento de Justicia trabaja estratégicamente con las autoridades federales para procesar el robo de vehículos o carjackings de la manera más efectiva”, dijo Domingo Emanuelli, Secretario de Justicia. “En esta ocasión, unimos esfuerzos para aconsejar a los ciudadanos sobre cómo pueden protegerse y evitar convertirse en víctimas de este tipo de crimen. El bienestar y la protección del pueblo es nuestra prioridad”.
“Ser víctima de carjacking es una de las peores experiencias que puede atravesar un ciudadano. El saber cómo manejar una situación de esta naturaleza, puede ser la mejor arma para enfrentar ese evento y salir ileso del mismo”, dijo el Inspector Carlos Nazario, Coordinador de los Centros de Investigación Criminales (CIC) del Negociado de la Policía la Policía de Puerto Rico. “Por ello, en coordinación con nuestros colegas a nivel federal estaremos brindando orientación en las comunidades y a través de los medios. De este modo, podremos multiplicar el mensaje y llegar a una mayor cantidad de ciudadanos”.
La campaña se concentra en los siguientes consejos para prevenir los carjackings:
- Estacione en áreas bien alumbradas y no deje artículos valiosos en su vehículo.
- Esté siempre atento a su entorno, particularmente en las gasolineras, al llegar a su residencia y cerca de los cajeros automáticos.
- Equipe su vehículo con un rastreador GPS.
- Cierre las puertas y ventanas mientras conduce.
- No se detenga por extraños varados a lo largo del camino. Anote su ubicación y deténgase en un lugar seguro para pedir ayuda.
Los asaltantes buscan oportunidades para atacar a las víctimas distraídas. Algunas de las oportunidades son: en estaciones de gasolina, cajeros automáticos, garajes de estacionamiento (multi pisos), en la entrada de las residencias, intersecciones desoladas con semáforos, y rampas de salida de autopistas.
Un carjacking puede ocurrir en cualquier momento. Nunca confronte a los asaltantes, su vida es más importante y valiosa. Si es víctima o testigo de un carjacking, repórtelo a tips.fbi.gov o llame al (787) 987-6500.
Bucks County Construction Business Owner Pleads Guilty to Nearly $1.3 Million Tax Fraud SchemeRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Samuel Bullock, 72, of Langhorne, PA, entered a plea of guilty before United States District Court Judge Michael M. Baylson for his orchestration of a tax fraud scheme to avoid paying nearly $1.3 million in federal income taxes for his general contracting business, Bullock Construction.
In September 2020, the defendant was charged with multiple tax charges, including one count of aiding and assisting in the filing of a false federal tax return, and one count of willful failure to file a federal tax return, all relating to his efforts to avoid paying taxes for his construction business. In 2009, after the defendant had failed to file federal income tax returns for nearly a decade, the Internal Revenue Service secured liens for more than $1.2 million assessed in taxes, plus more in interest and penalties. The defendant responded by taking steps to avoid collection by arranging to have his business income paid over to a sole proprietorship that he had set up in the name of his spouse, including providing his clients with new Forms W-9 with his spouse’s Social Security number and opening a new business checking account in his spouse’s name and the alleged sole proprietorship. The defendant then reported his own income on the tax return of his spouse, using the filing status “Married filing separately.” Although he was aware that he had earned income and was obliged to file a federal income tax return, Bullock failed to do so.
“Samuel Bullock’s scheme to enrich himself and avoid paying his fair share of income taxes victimized honest American taxpayers and business owners who do pay their tax obligations,” U.S. Attorney Williams said. “By ignoring the IRS and its legitimate demands for information from him, the defendant magnified his own tax liabilities. This type of fraud will be aggressively investigated and prosecuted by this Office.”
“For years, Mr. Bullock cheated and stole from the American people and the Government,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty. “He went through great lengths to hide his earnings and evade his tax liability. His admission of guilt today is a reminder that IRS Criminal Investigation will continue to vigorously pursue those to seek to violate their known duty to file accurate tax returns and pay their fair share.”
The case was investigated by Internal Revenue Service Criminal Investigation and is being prosecuted by Assistant United States Attorney Elizabeth Abrams.
Bradenton Man Pleads Guilty to Conspiracy to Commit Wire and Honest Services Fraud and Distribution of A Controlled SubstanceRead the Press Release
Orlando, FL –United States Attorney Roger B. Handberg announces that Joseph Ellicott (43, Bradenton) has pleaded guilty to one count of conspiracy to commit wire fraud and honest services fraud and one count of distribution of a controlled substance. Ellicott faces a maximum penalty of 20 years in federal prison on each count. His sentencing is scheduled for April 26, 2022, before Senior U.S. District Judge Gregory A. Presnell.
According to court documents, in January 2017, Ellicott was hired by a government agency in Seminole County (Governmental Agency) as a Special Projects Manager. The elected head of the Governmental Agency was a public official and Ellicott’s friend (Public Official). Beginning at least by January 2017, and continuing through 2019, Ellicott, the Public Official, and a contractor with the Governmental Agency (Contractor Conspirator) conspired with each other to commit wire fraud and honest services fraud.
The conspiracy involved the Contractor Conspirator and the Contractor Conspirator’s company entering into a contract with the Governmental Agency to provide goods and services to the Governmental Agency. The Contractor Conspirator and the Contractor Conspirator’s company submitted inflated invoices for payment. The Public Official agreed to use his official position to provide favorable official action on behalf of the Contractor Conspirator and the Contractor Conspirator’s company, including by continuing to employ the Contractor Conspirator and the Contractor Conspirator’s company and by causing the Contractor Conspirator and the Contractor Conspirator’s company to be paid, including for the inflated invoices. In exchange for the Public Official providing such favorable official action, the Contractor Conspirator agreed to pay bribes and kickbacks to the Public Official. Ellicott’s role in the conspiracy was to serve as the intermediary for the payment of a bribe and kickback of $6,000 that was made on September 25, 2017.
Further, for at least two years, Ellicott illegally sold Adderall to others. Over the course of at least two years, one of Ellicott’s customers paid him more than $5,000 for hundreds of Adderall pills.
This case was investigated by the United States Secret Service, the Federal Bureau of Investigation, and the Seminole County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Jennifer M. Harrington and Amanda S. Daniels and United States Attorney Roger B. Handberg.
Box Elder Man Sentenced to 25 Years for Enticement of MinorsRead the Press Release
United States Attorney Dennis R. Holmes announced that a Box Elder, South Dakota, man convicted of Enticement of Minors Using the Internet was sentenced on February 17, 2022, by U.S. District Judge Jeffrey L. Viken.
Francis James Kistler, age 61, was sentenced to 25 years in federal prison, followed by five years of supervised release. Kistler was also ordered to pay a $100 special assessment to the Federal Crime Victims Fund and $700 in restitution. Kistler will also be required to register as a sex offender under the Sex Offender Registration and Notification Act.
Kistler was federally indicted and arrested after sexually exploiting two underage females between January 2019 and July 2019, while he was employed as a deputy sheriff for the Fall River County Sheriff’s Office.
This case was investigated by the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Kistler was immediately turned over to the custody of the U.S. Marshals Service.
Authorities seek victims in child exploitation investigationRead the Press Release
HOUSTON – A 37-year-old resident of Cypress remains in custody pending trial on charges of sexual exploitation of children, possession of child pornography and coercion and enticement, announced U.S. Attorney Jennifer B. Lowery and acting FBI Special Agent in Charge Richard A. Collodi.
A federal grand jury has returned a six-count superseding indictment against Patrick Tran, charging him with production and possession of child pornography and coercion and enticement of multiple victims. He is set for his arraignment today at 2 p.m. before U.S. Magistrate Judge Christina A. Bryan.
The charges allege he used a fabricated online persona to entice hundreds of underage females for more than 10 years. He then coerced them to produce and transmit sexually-explicit videos of themselves, according to the allegations.
Authorities are seeking the public’s help in identifying potential underage victims. Law enforcement believes Tran may have asked numerous individuals under the age of 18 to produce such videos and/or engage in sexual conduct while online. Possible contact could have been with his alias – Reggie Smith – or through SnapChat with username Travis_Story20 or via Omegle, according to court records.
If you believe you are a victim or have any information regarding any such potential victims, please fill out the brief secure questionnaire available at www.fbi.gov/patricktran.
Tran was originally charged March 24, 2021, and soon taken into custody. At the time of the detention hearing, the court heard how the case came to the attention of law enforcement. A mother of one of the alleged victims allegedly found her 10-year-old daughter standing naked in front of her iPad. According to testimony, chat communications appeared to show Tran was coercing her daughter into engaging in sexually-explicit conduct.
The court also heard about approximately 4,000 video files containing webcam-based videos of young females engaging in sexually-explicit conduct, many of females under the age of 18. All are allegedly attributable to Tran.
U.S. Magistrate Judge Andrew M. Edison found Tran to be a danger to the community and ordered Tran into custody pending further criminal proceedings.
If convicted, he faces up to life in prison.
The FBI is conducting the investigation.
Assistant U.S. Attorneys Kimberly Leo and Luis Batarse are prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Accountant Charged with Defrauding Two Marin Car Dealerships of $1.7 MillionRead the Press Release
SAN FRANCISCO – Christina Markus appeared in federal court in San Francisco today to face an indictment charging her with four counts of wire fraud, announced United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair.
According to the indictment, from 2010 to 2018 two Marin County car dealerships employed Markus, age 54 and formerly of Martinez, to perform bookkeeping. She held various titles during her years of employment, including Office Accountant, Payroll Administrator, Payroll Clerk, and Office Manager. Markus’s responsibilities included payroll processing, bank reconciliations, and posting ledgers for the dealerships using their “dealer management system” (DMS). DMS is a software program that performs inventory management, bank reconciliation, finance, and payment and payroll processing.
The indictment alleges that starting in January 2014 and continuing through October 2018, Markus created special payrolls for herself. The indictment charges that Markus, using the DMS software, wrote unauthorized checks to herself and created unauthorized bonuses and vacation pay and then caused these funds to be moved from the dealerships’ bank accounts to personal accounts that she controlled. Markus hid her fraud, according to the indictment, by deleting the record of fraudulent checks, bonuses, vacation pay, and payroll direct deposits within DMS and by manipulating bank reconciliations and ledgers and clearing entries from payroll records.
During the nearly five-year period, the indictment alleges, Markus embezzled more than $1.7 million by causing funds to be moved from her employer’s accounts to her personal bank accounts.
Markus made her initial appearance in San Francisco federal court today before United States Magistrate Laurel Beeler. Her next court appearance is scheduled for April 20 before United States District Judge Charles R. Breyer. She remains out of custody.
The indictment charges Markus with four counts of wire fraud in violation of 18 U.S.C. § 1343. The maximum statutory sentence for a violation of 18 U.S.C. § 1343 is 20 years imprisonment, a fine of $250,000 or twice the gross gain or loss amount, a three year period of supervised release following prison, and the payment of restitution for losses caused. However, any sentence following conviction would be imposed by a court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The charges contained in the criminal indictment are only allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law.
Assistant United States Attorneys Joseph Tartakovsky and Kevin Yeh are prosecuting the case with the assistance of Amala James and Mimi Lam. The prosecution was the result of an investigation by the FBI.
21 February 2022
Mission Man Charged with Failure to AppearRead the Press Release
United States Attorney Dennis R. Holmes announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Failure to Appear.
Blade Marshall, age 24, was indicted on February 8, 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 18, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on January 24, 2022, Marshall failed to appear for his jury trial for Conspiracy to Distribute a Controlled Substance and Possession of a Firearm by a Prohibited Person.
The charge is merely an accusation and Marshall is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Marshall was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Eagle Butte Man Charged with Failure to AppearRead the Press Release
United States Attorney Dennis R. Holmes announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Failure to Appear.
Cheyene Michael Thompson, age 30, was indicted on July 16, 2020. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 16, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on January 13, 2020, Thompson failed to appear for his sentencing hearing for violating the terms and conditions of his supervised release.
The charge is merely an accusation and Thompson is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshal Service. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Thompson was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Brothers Sentenced in Heroin Trafficking ConspiracyRead the Press Release
Louisville, Kentucky – Two Louisville men were sentenced on Friday, February 18, 2022, for conspiring to distribute over three-quarters of a kilogram of heroin in Jefferson County, Kentucky. Marcus Bennett, 44, was sentenced to 14 years in prison for conspiring to distribute over 700 grams of heroin. Eric Bennett, 43, was sentenced to 11 ½ years in prison for his role in the heroin trafficking conspiracy, as well as an additional 5 years to be served consecutively, for a total sentence of 200 months, for carrying a firearm in furtherance of a drug trafficking crime.
The Bennett brothers had been charged in connection with the drive-by shooting of a U.S. Postal carrier that took place on February 10, 2016. The mail carrier survived the shooting, and the case went to trial in late June 2021. The Defendants were acquitted of charges related to the shooting but convicted of possessing and selling a significant quantity of heroin during the same time period.
“I commend the work of the prosecution team and the Postal Inspectors who investigated this case,” stated United States Attorney Michael A. Bennett of the Western District of Kentucky. “Those who conspire to distribute illegal drugs in our communities should note that such activity will end with a lengthy stay in a federal prison – where parole is not an option.”
“The United States Postal Inspection Service diligently conducts investigations such as these to protect the mail system from being used for criminal purposes, such as drug transportation,” stated Inspector in Charge Lesley Allison of the Pittsburgh Division. “These efforts continue to keep our communities safe from illegal drugs.”
The United States Postal Inspection Service investigated the case.
Assistant U.S. Attorney Marisa J. Ford prosecuted the case.
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18 February 2022
Wisconsin Man Convicted of Sex Trafficking Adult and Minor VictimsRead the Press Release
Assistant Attorney General Kristen Clarke and U.S. Attorney Timothy M. O’Shea of the Western District of Wisconsin, today announced the conviction of Cory Hereford, 50, of Beloit, Wisconsin, on charges of sex trafficking, conspiracy to commit sex trafficking, maintaining a property for the purposes of distributing and using controlled substances, and of having committed sex trafficking of a minor while being a person previously convicted of a crime that required registering as a sex offender. The jury reached a verdict yesterday evening after five hours of deliberation following a four-day trial in federal court in Madison.
The government presented evidence at trial that Hereford targeted vulnerable young women struggling with drug addition, one of whom was a minor – 16 years old at the time – to engage in commercial sex. He enticed the victims with access to heroin, and in some instances threatened to withhold the heroin to induce withdrawal sickness as a means of compelling the victims to engage in prostitution for his profit. In other instances, Hereford threatened physical violence to achieve his criminal ends.
The evidence demonstrated that Hereford conspired with his co-defendant, Tonyiel Partee, 30, of Janesville, Wisconsin, to recruit victims and compel their commercial sex work. Partee pleaded guilty to conspiracy to commit sex trafficking in July 2021. Other evidence at trial showed that Hereford maintained a home on S. Franklin Street in Janesville, for the purposes of distributing and using controlled substances, specifically heroin and cocaine. Hereford was previously convicted of second-degree sexual assault of a child in the State of Wisconsin, which required him to register as a sex offender.
“This defendant preyed on vulnerable members of our society – young women and girls addicted to drugs,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Using their addictions to lure them deeper into the world of drugs and prostitution, he trafficked these victims for his own greed, without regard to their age, their pain, or their safety. We will continue to enforce our human trafficking laws to restore freedom and dignity to victims of this crime.”
“Mr. Hereford targeted and exploited young and vulnerable women, forcing them into commercial sex to generate income for him,” said U.S. Attorney Timothy O’Shea of the Western District of Wisconsin. “I commend the trial team, investigators, and victim advocates for their commitment and diligence. These guilty verdicts show that my office and Wisconsin law enforcement are united against sex trafficking.”
“The Janesville Police Department appreciates the assistance of our federal partners on this important and complex case,” said Chief David J. Moore of the Janesville Police Department. “This investigation illustrates the methods that human traffickers use by exploiting our most vulnerable children. Contrary to the beliefs of many, these criminals do not abduct these victims on a street corner but cultivate the victims over a lengthy period of time. As a community, we need to understand these appalling methods and look out for those in our community that may fall prey to these criminals. We need to learn that when we see suspicious activity, report it to a responsible authority.”
The court will sentence Hereford on May 12. The sex trafficking charge involving a minor carries a mandatory minimum penalty of 10 years and a maximum of life in federal prison. The charge of committing a crime involving a minor while a committed felon required to register as a sex offender has a mandatory 10-year penalty that federal law requires be served consecutive to any sentence imposed on the sex trafficking of a minor. The charge of maintaining a drug house has a maximum penalty of 20 years.
The case was investigated by Janesville Police Department, with the assistance of Wisconsin Department of Justice, Division of Criminal Investigation, and the Rock County Sheriff’s Office. It is being prosecuted by Assistant U.S. Attorney Julie Pfluger of the Western District of Wisconsin, and Trial Attorney Slava Kuperstein of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Wife of Maryland Nuclear Engineer Pleads Guilty to Espionage-Related OffenseRead the Press Release
WASHINGTON – A Maryland woman pleaded guilty today to conspiracy to communicate Restricted Data related to the design of nuclear-powered warships. Her husband pleaded guilty to the same offense on Monday, Feb. 14.
Diana Toebbe, 46, of Annapolis, Maryland, was arrested on Oct. 9, 2021, for knowingly and voluntarily joining a conspiracy with her husband, Jonathan Toebbe, to communicate Restricted Data to a foreign nation. During the course of the conspiracy, Diana Toebbe served as a lookout while her husband serviced three “dead-drops.”
According to court documents, at the time of his arrest, Jonathan Toebbe was an employee of the Department of the Navy who served as a nuclear engineer and was assigned to the Naval Nuclear Propulsion Program, also known as Naval Reactors. He held an active national security clearance through the Department of Defense, giving him access to “Restricted Data” within the meaning of the Atomic Energy Act. Restricted Data concerns design, manufacture or utilization of atomic weapons, or production of Special Nuclear Material (SNM), or use of SNM in the production of energy – such as naval reactors. Jonathan Toebbe worked with and had access to information concerning naval nuclear propulsion including information related to military sensitive design elements, operating parameters and performance characteristics of the reactors for nuclear powered warships.
According to court documents, Jonathan Toebbe sent a package to a foreign government, listing a return address in Pittsburgh, Pennsylvania, containing a sample of Restricted Data and instructions for establishing a covert relationship to purchase additional Restricted Data. Jonathan Toebbe began corresponding via encrypted email with an individual whom he believed to be a representative of the foreign government. The individual was really an undercover FBI agent. Jonathan Toebbe continued this correspondence for several months, which led to an agreement to sell Restricted Data in exchange for thousands of dollars in cryptocurrency.
On June 8, 2021, the undercover agent sent $10,000 in cryptocurrency to Jonathan Toebbe as “good faith” payment. Shortly afterwards, on June 26, Jonathan Toebbe serviced a dead drop by placing an SD card, which was concealed within half a peanut butter sandwich and contained military sensitive design elements relating to submarine nuclear reactors, at a pre-arranged location. After retrieving the SD card, the undercover agent sent Jonathan Toebbe a $20,000 cryptocurrency payment. In return, Jonathan Toebbe emailed the undercover agent a decryption key for the SD Card. A review of the SD card revealed that it contained Restricted Data related to submarine nuclear reactors. On Aug. 28, Jonathan Toebbe made another “dead drop” of an SD card in eastern Virginia, this time concealing the card in a chewing gum package. After making a payment to Jonathan Toebbe of $70,000 in cryptocurrency, the FBI received a decryption key for the card. It, too, contained Restricted Data related to submarine nuclear reactors. The FBI arrested Jonathan Toebbe and his wife on Oct. 9, after he placed yet another SD card at a pre-arranged “dead drop” at a second location in West Virginia.
Diana Toebbe pleaded guilty to count one of the indictment charging her with conspiracy to communicate Restricted Data which carries a maximum statutory penalty of up to life in prison, a fine up to $100,000, and term of supervised release not more than five years. Pursuant to her plea agreement, Diana Toebbe will serve a sentence of not more than 36 months of imprisonment in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI and NCIS are investigating the case.
Trial Attorneys Matthew J. McKenzie and S. Derek Shugert of the National Security Division's Counterintelligence and Export Control Section, Assistant U.S. Attorneys Jarod J. Douglas and Lara Omps-Botteicher of the Northern District of West Virginia and Special Assistant U.S. Attorney Jessica Lieber Smolar for the Western District of Pennsylvania are prosecuting the case.
Wife of Maryland Nuclear Engineer Pleads Guilty to Espionage-Related OffenseRead the Press Release
WASHINGTON – A Maryland woman pleaded guilty today to conspiracy to communicate Restricted Data related to the design of nuclear-powered warships. Her husband pleaded guilty to the same offense on Monday, Feb. 14.
Diana Toebbe, 46, of Annapolis, Maryland, was arrested on Oct. 9, 2021, , for knowingly and voluntarily joining a conspiracy with her husband, Jonathan Toebbe, to communicate Restricted Data to a foreign nation. During the course of the conspiracy, Diana Toebbe served as a lookout while her husband serviced three “dead-drops.”
Diana Toebbe, 46, of Annapolis, Maryland, was arrested on Oct. 9, 2021, , for knowingly and voluntarily joining a conspiracy with her husband, Jonathan Toebbe, to communicate Restricted Data to a foreign nation. During the course of the conspiracy, Diana Toebbe served as a lookout while her husband serviced three “dead-drops.”
According to court documents, at the time of his arrest, Jonathan Toebbe was an employee of the Department of the Navy who served as a nuclear engineer and was assigned to the Naval Nuclear Propulsion Program, also known as Naval Reactors. He held an active national security clearance through the Department of Defense, giving him access to “Restricted Data” within the meaning of the Atomic Energy Act. Restricted Data concerns design, manufacture or utilization of atomic weapons, or production of Special Nuclear Material (SNM), or use of SNM in the production of energy – such as naval reactors. Jonathan Toebbe worked with and had access to information concerning naval nuclear propulsion including information related to military sensitive design elements, operating parameters and performance characteristics of the reactors for nuclear powered warships.
According to court documents, Jonathan Toebbe sent a package to a foreign government, listing a return address in Pittsburgh, Pennsylvania, containing a sample of Restricted Data and instructions for establishing a covert relationship to purchase additional Restricted Data. Jonathan Toebbe began corresponding via encrypted email with an individual whom he believed to be a representative of the foreign government. The individual was really an undercover FBI agent. Jonathan Toebbe continued this correspondence for several months, which led to an agreement to sell Restricted Data in exchange for thousands of dollars in cryptocurrency.
On June 8, 2021, the undercover agent sent $10,000 in cryptocurrency to Jonathan Toebbe as “good faith” payment. Shortly afterwards, on June 26, Jonathan Toebbe serviced a dead drop by placing an SD card, which was concealed within half a peanut butter sandwich and contained military sensitive design elements relating to submarine nuclear reactors, at a pre-arranged location. After retrieving the SD card, the undercover agent sent Jonathan Toebbe a $20,000 cryptocurrency payment. In return, Jonathan Toebbe emailed the undercover agent a decryption key for the SD Card. A review of the SD card revealed that it contained Restricted Data related to submarine nuclear reactors. On Aug. 28, Jonathan Toebbe made another “dead drop” of an SD card in eastern Virginia, this time concealing the card in a chewing gum package. After making a payment to Jonathan Toebbe of $70,000 in cryptocurrency, the FBI received a decryption key for the card. It, too, contained Restricted Data related to submarine nuclear reactors. The FBI arrested Jonathan Toebbe and his wife on Oct. 9, after he placed yet another SD card at a pre-arranged “dead drop” at a second location in West Virginia.
Diana Toebbe pleaded guilty to count one of the indictment charging her with conspiracy to communicate Restricted Data which carries a maximum statutory penalty of up to life in prison, a fine up to $100,000, and term of supervised release not more than five years. Pursuant to her plea agreement, Diana Toebbe will serve sentence of not more than 36 months of imprisonment in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI and NCIS are investigating the case.
Trial Attorneys Matthew J. McKenzie and S. Derek Shugert of the National Security Division's Counterintelligence and Export Control Section, Assistant U.S. Attorneys Jarod J. Douglas and Lara Omps-Botteicher of the Northern District of West Virginia and Special Assistant U.S. Attorney Jessica Lieber Smolar for the Western District of Pennsylvania are prosecuting the case.
Wife of Maryland Nuclear Engineer Pleads Guilty to Espionage-Related OffenseRead the Press Release
A Maryland woman pleaded guilty today to conspiracy to communicate Restricted Data related to the design of nuclear-powered warships. Her husband pleaded guilty to the same offense on Monday, Feb. 14.
Diana Toebbe, 46, of Annapolis, was arrested on Oct. 9, 2021, for knowingly and voluntarily joining a conspiracy with her husband, Jonathan Toebbe, to communicate Restricted Data to a foreign nation. During the course of the conspiracy, Diana Toebbe served as a lookout while her husband serviced three “dead-drops.”
According to court documents, at the time of his arrest, Jonathan Toebbe was an employee of the Department of the Navy who served as a nuclear engineer and was assigned to the Naval Nuclear Propulsion Program, also known as Naval Reactors. He held an active national security clearance through the Department of Defense, giving him access to “Restricted Data” within the meaning of the Atomic Energy Act. Restricted Data concerns design, manufacture or utilization of atomic weapons, or production of Special Nuclear Material (SNM), or use of SNM in the production of energy – such as naval reactors. Jonathan Toebbe worked with and had access to information concerning naval nuclear propulsion including information related to military sensitive design elements, operating parameters and performance characteristics of the reactors for nuclear powered warships.
According to court documents, Jonathan Toebbe sent a package to a foreign government, listing a return address in Pittsburgh, Pennsylvania, containing a sample of Restricted Data and instructions for establishing a covert relationship to purchase additional Restricted Data. Jonathan Toebbe began corresponding via encrypted email with an individual whom he believed to be a representative of the foreign government. The individual was really an undercover FBI agent. Jonathan Toebbe continued this correspondence for several months, which led to an agreement to sell Restricted Data in exchange for thousands of dollars in cryptocurrency.
On June 8, 2021, the undercover agent sent $10,000 in cryptocurrency to Jonathan Toebbe as “good faith” payment. Shortly afterwards, on June 26, Dianna Toebbe acted as a lookout while Jonathan Toebbe serviced a dead drop by placing an SD card, which was concealed within half a peanut butter sandwich and contained military sensitive design elements relating to submarine nuclear reactors, at a pre-arranged location. After retrieving the SD card, the undercover agent sent Jonathan Toebbe a $20,000 cryptocurrency payment. In return, Jonathan Toebbe emailed the undercover agent a decryption key for the SD Card. A review of the SD card revealed that it contained Restricted Data related to submarine nuclear reactors. On Aug. 28, Jonathan Toebbe made another “dead drop” of an SD card in eastern Virginia, this time concealing the card in a chewing gum package. After making a payment to Jonathan Toebbe of $70,000 in cryptocurrency, the FBI received a decryption key for the card. It, too, contained Restricted Data related to submarine nuclear reactors. The FBI arrested Diana Toebbe and her husband on Oct. 9, after she acted as a lookout while Jonathan Toebbe placed yet another SD card at a pre-arranged “dead drop” at a second location in West Virginia.
Diana Toebbe pleaded guilty to count one of the indictment charging her with conspiracy to communicate Restricted Data which carries a maximum statutory penalty of up to life in prison, a fine up to $100,000, and term of supervised release not more than five years. Pursuant to her plea agreement, Diana Toebbe will serve a sentence of not more than 36 months of imprisonment in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI and the Naval Criminal Investigative Service are investigating the case.
Trial Attorneys Matthew J. McKenzie and S. Derek Shugert of the National Security Division's Counterintelligence and Export Control Section, Assistant U.S. Attorneys Jarod J. Douglas and Lara Omps-Botteicher of the Northern District of West Virginia and Special Assistant U.S. Attorney Jessica Lieber Smolar for the Western District of Pennsylvania are prosecuting the case.
Whitakers Man Sentenced for Armed Drug TraffickingRead the Press Release
WILMINGTON, N.C. – A Whitakers, North Carolina man was sentenced today to 150 months in prison and three years of supervised release for Distribution of a Quantity of Heroin and Possession of a Firearm in Furtherance of a Drug Trafficking Crime.
According to court documents and information presented at the sentencing hearing, Tony Darrel Pittman, 42, was named in an Indictment filed on June 23, 2021 charging him with Distribution of a Quantity of Fentanyl and a Quantity of Cocaine Base (Crack) (Count One); Distribution of a Quantity of Heroin (Counts Two and Three); and Possession of a Firearm in Furtherance of a Drug Trafficking Crime (Count Four). On September 21, 2020, Pittman entered a plea of guilty to Counts Three and Four.
In May 2020, the Nash County Sheriff’s Office received information that Pittman was distributing various controlled substances in the area of Rocky Mount, North Carolina.
Over the next several months, agents investigated the Defendant, and from May through September 2020, a confidential source conducted controlled purchases of fentanyl, heroin, cocaine, and cocaine base (crack) from the Defendant. The Defendant also sold a .22 caliber revolver to the confidential source.
On July 13, 2021, when officers attempted to arrest the Defendant, he attempted to flee and attempted to assault the officer with a broom handle.
Based on information from various sources, the Defendant was held responsible for distributing a quantity of fentanyl, almost two kilograms of heroin, more than two kilograms of cocaine, and more than 700 grams of cocaine base (crack).
Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement. The Nash County Sheriff’s Office investigated the case and Assistant U.S. Attorney Scott A. Lemmon 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 number 5:21-CR-00274-M-1.
Washington, D.C. Man Admits to Participating in the Kidnapping of a Victim at Maryland Hotel and CasinoRead the Press Release
Greenbelt, Maryland – Christopher Allen Young, a/k/a “40,” age 26, of Washington, D.C., pleaded guilty yesterday to conspiracy to commit kidnapping, in connection with the kidnapping of a victim from a Maryland hotel and casino.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Wayne Jacobs of the Federal Bureau of Investigation - Washington Field Office Criminal Division; and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
According to Young’s guilty plea, on February 3, 2021, co-conspirators 1 and 2 met Victim A at a Maryland casino and hotel, and falsely promised Victim A that they would get women for Victim A if Victim A accompanied them to Southeast Washington, D.C. At approximately 7:30 a.m., Victim A agreed to get into co-conspirator 1’s vehicle with co-conspirators 1 and 2 and they drove from the casino and hotel to Washington, D.C.
As detailed in the plea agreement, at 8:12 a.m., Young received a call from co-conspirator 2. A minute later, Young called co-conspirator 3 to report that co-conspirators 1 and 2 had “snatched” Victim A and all Young and co-conspirator 3 had to do was sit in the car with Victim A while co-conspirators 1 and 2 robbed Victim A. Young advised co-conspirator 3 that he was going to split the proceeds of the robbery with co-conspirators 1 and 2, and would pay co-conspirator 3 from his share. Young added that, if Victim A “gets feisty, I don’t want to have to crush him.”
A short time later, co-conspirators 1 and 2 arrived in Southeast D.C. with Victim A, and Young and co-conspirator 3 got in the car. Co-conspirator 2 pointed a gun at Victim A, and Young and the co-conspirators took Victim A’s personal items, including Victim A’s wallet, cellphone, and watch (which had been purchased for approximately $500), and the key to Victim A’s hotel room. Young and the co-conspirators then demanded the code to the safe in Victim A’s hotel room. After Victim A refused to provide the code to the safe, co-conspirator 2 struck Victim A in the forehead with the gun, and Victim A gave up the code to his safe. Co-conspirator 2 then forced Victim A out of the vehicle.
Young and co-conspirator 3 then exited the vehicle with Victim A, while co-conspirators 1 and 2 drove back to the casino and hotel. Young and co-conspirator 3 then led Victim A, at gunpoint, to a boiler room inside an apartment building in Southeast D.C., and co-conspirator 3 called co-conspirator 4 to ask him to look out for police or anyone else who might be near enough to hear or see Young and co-conspirator 3 with Victim A.
Inside the boiler room, Young and co-conspirator 3 physically assaulted Victim A and threatened his life. Young and co-conspirator 3 also demanded that Victim A disclose the PIN number for his ATM card, which was in Victim A’s wallet that they had taken, and to provide details about Victim A’s hotel room, including what was in the safe.
According to the plea agreement, co-conspirators 1 and 2 were seen on surveillance footage leaving Victim A’s hotel room with a backpack and roller suitcase, which contained items they had stolen from the room, including an Xbox, at least $1,500 in MGM Casino chips, and approximately $6,000 in cash. The total value of the property stolen from Victim A during the kidnapping was at least $8,000.
When Young and co-conspirator 3 learned that co-conspirators 1 and 2 had finished stealing property from Victim A’s hotel room, they left the boiler room, leaving Victim A. They were seen by law enforcement at approximately 10:57 a.m. walking away from the area of the boiler room, getting into Young’s vehicle, and driving away. Just a few moments later, law enforcement located Victim A near the apartment building, with blood running down his face and a wound on his forehead. Victim A also appeared to have suffered cuts on his mouth and eye, and a broken nose. At about that same time, Young and his co-conspirators discussed the kidnapping and robbery during a phone call. Young told the co-conspirators that he was not worried about Victim A talking to law enforcement because Victim A was too afraid after Young and co-conspirator 3 had threatened him. Young said he told Victim A, “If the police come, or anything come, I got your address. Mom…your little brother, all them is gone!”
Young and the government have agreed that, if the Court accepts the plea agreement, Young will be sentenced to 126 months in federal prison. U.S. District Judge George J. Hazel has scheduled sentencing for May 5, 2022 at 2 p.m.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN, an evidence-based program proven to be effective at reducing violent crime, is the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Erek L. Barron commended the FBI Washington and Baltimore Field Offices for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Jeffrey J. Izant, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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United States Postal Service Letter Carrier Sentenced to Six Years in Federal Prison for Bank and Mail Fraud ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Johnson B. Ogunlana, age 25, of Edgewood, Maryland, to six years in federal prison, followed by three years of supervised release for conspiracy to commit bank fraud and mail fraud, access device fraud, aggravated identity theft, and theft of mail by a postal employee. As part of his sentencing, Ogunlana has been ordered to pay $232,588 in restitution.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Imari R. Niles of the U.S. Postal Service, Office of Inspector General; and Postal Inspector in Charge Greg Torbenson of the U.S. Postal Inspection Service - Washington Division.
According to his plea agreement, Ogunlana was a letter carrier for the U.S. Postal Service (USPS) in Brooklyn, Maryland. Ogunlana knew that his duties and responsibilities as a letter carrier included handling, sorting, collecting, and delivering letter and parcel mail to postal customers residing and conducting business on his assigned postal delivery routes, and preserving and protecting the security of all mail in his custody.
Between July 25, 2016 and February 5, 2019, Ogunlana, and his co-conspirator Samson A. Oguntuyi, age 29, of Atlanta, Georgia conspired with others to steal bank checks and credit and debit cards from the mail, open fraudulent business banking accounts using the names of victim businesses and the stolen identities of victim postal customers to negotiate the stolen checks by depositing them into the fraudulent bank accounts, and then conduct transactions with stolen payment cards and with money derived from the stolen checks.
As detailed in the plea agreement, Ogunlana intercepted and stole mail pieces containing credit cards addressed to individual victims and sent photos of the stolen mail pieces and credit cards through a messaging application to Oguntuyi and other conspirators. Oguntuyi then used the victims’ personal identifying information (“PII”) to activate the stolen credit cards and to obtain new credit cards the victims never requested or applied for. Once the stolen credit cards were activated, members of the conspiracy used the credit cards to make retail purchases.
Members of the conspiracy also registered fraudulent businesses with state government agencies in similar names as the victim businesses. Conspiracy members also used the fraudulent businesses to cash stolen checks. Conspiracy members also used the names and identifying information of postal customer identity theft victims as the agents and/or incorporators of the fraudulent businesses and used stolen payment cards issued to identity theft victims to pay fees to register some of the fraudulent businesses. Ogunlana stole checks payable to victim businesses, whose mail was serviced out of the USPS facility where Ogunlana worked, by intercepting their mail. Oguntuyi and Ogunlana then endorsed some of the checks by forging the signatures of identity theft victims and depositing the checks into the fraudulent business bank accounts the conspirators opened in the names of the victim businesses. The conspirators then withdrew the money from the accounts through cash withdrawals, debit card purchases and cash back transactions at retail merchants, wire transfers, and by writing checks drawn on the accounts.
As detailed in his plea agreement, at least $565,000 in checks was stolen from two victim businesses and at least eight postal customers were victims of identity theft.
United States Attorney Erek L. Barron praised the U.S. Postal Service Office of Inspector General and the U.S. Postal Inspection Service for their work in the investigation and thanked the Treasury Inspector General for Tax Administration for its assistance. Mr. Barron thanked Special Assistant U.S. Attorney Michael F. Davio, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach. For more information about resources available to report fraud, please visit https://www.justice.gov/usao-md/report-fraud.
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United States Obtains Consent Judgment and Permanent Injunction in Civil Case Against Two Clay County PharmacistsRead the Press Release
NASHVILLE – In a settlement reached this week, two former Clay County, Tennessee, pharmacists have been barred from dispensing controlled substances for the better part of the next two decades, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
John Polston, of Tomkinsville, Kentucky, and the former Pharmacist-in-charge of Oakley Pharmacy, Inc., d/b/a Dale Hollow Pharmacy, in Celina, Tennessee, has relinquished his licenses to practice pharmacy from the Kentucky Board of Pharmacy and the Tennessee Board of Pharmacy and is prohibited from applying for or seeking the renewal or reinstatement of a license or certificate to practice pharmacy anywhere in the United States until at least March 1, 2040. In addition, Polston must pay a civil penalty in the amount of $1,000.00.
Michael Griffith, of Mount Juliet, Tennessee, and the former Pharmacist-in-Charge of Xpress Pharmacy of Clay County, LLC, must relinquish his license to practice pharmacy from the Tennessee Board of Pharmacy and is prohibited from applying for or seeking the renewal or reinstatement of a license or certificate to practice pharmacy anywhere in the United States until at least March 1, 2038. Griffith must also pay a civil penalty in the amount of $2,000.00
In February 2019, the Justice Department filed a civil complaint, alleging violations of the Controlled Substances Act and the False Claims Act, against Dale Hollow Pharmacy and Xpress Pharmacy, including pharmacists John Polston, Michael Griffith, and others. The government sought and received a Temporary Restraining Order and a Preliminary Injunction, which has remained in place, and which prevented the pharmacies and pharmacists from dispensing controlled substances.
In addition to the civil actions, and in separate criminal cases, on March 23, 2021, John Polston pleaded guilty to conspiracy to distribute and dispense controlled substances, illegal distribution of controlled substances, and conspiracy to defraud the United States and commit an offense through the payment of illegal kickbacks, in violation of the Anti-Kickback Statute. He is currently awaiting sentencing. Michael Griffith pleaded guilty on August 26, 2021, to conspiracy to distribute and dispense controlled substances and to two counts of health care fraud. Griffith is also awaiting sentencing.
Assistant U.S. Attorney Ellen Bowden McIntyre is handling the civil investigation and litigation with the support of the Department of Justice’s Consumer Protection Branch.
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United States Attorney Announces the Appointment of Assistant United States Attorney Matthew J. Maddox to Serve as a Federal Magistrate Judge in MarylandRead the Press Release
Baltimore, Maryland – United States Attorney for the District of Maryland Erek L. Barron announced today that Assistant U.S. Attorney Matthew J. Maddox has been appointed to serve as a United States Magistrate Judge in the United States District Court for the District of Maryland. He will sit in Baltimore, Maryland.
U.S. Attorney Erek L. Barron said, “Matthew’s appointment is a reflection of his tremendous service to the United States Attorney’s Office and I am excited that he will be continuing in public service as a federal judge. Matthew is a uniquely talented and dedicated public servant, whose intellect and commitment to helping others are no doubt why he was selected for the federal bench. Matthew joins a distinguished group of Maryland United States Attorney’s Office alumni who have gone on to serve as judges at both the state and federal level.”
Mr. Maddox has served in the U.S. Attorney’s Office for the District of Maryland as an Assistant U.S. Attorney since 2015. In this capacity, Mr. Maddox prosecuted a wide range of criminal cases, including human trafficking, child exploitation, identity theft, financial fraud, bank robbery, and a variety of other federal offenses. In 2017, Mr. Maddox received an award from the U.S. Attorney’s Office for Outstanding Contribution to a Law Enforcement Initiative. Mr. Maddox has served as the Office’s Identity Theft Coordinator since 2018 and Deputy Chief of the Major Crimes Section since 2020.
Mr. Maddox was born and raised in Maryland. He graduated summa cum laude from Morgan State University in Baltimore, Maryland, where he majored in philosophy and religious studies. After receiving his B.A. degree, Mr. Maddox was a Fulbright Scholar and taught high school through the Teach for America program. Mr. Maddox received his J.D. degree from the Yale Law School in 2011.
Upon graduation from law school, Mr. Maddox served as law clerk to the Honorable Gerald Bruce Lee, United States District Judge for the United States District Court for the Eastern District of Virginia. From October 2012 to August 2014, Mr. Maddox worked as a litigation associate at the law firm of Holland & Knight in Washington, D.C. From August 2014 to August 2015, Mr. Maddox served as law clerk to the Honorable André M. Davis, United States Circuit Judge for the United States Court of Appeals for the Fourth Circuit.
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U.S. Attorney's Office Sponsors 19th Annual Project Safe Neighborhoods Logo ContestRead the Press Release
COLUMBIA, SOUTH CAROLINA — The U.S. Attorney's Office is sponsoring the 19th Annual Project Safe Neighborhoods (PSN) Logo Contest. The statewide contest invites students to illustrate how we can help prevent gun violence in our schools by designing a logo for use on upcoming PSN publications.
The contest is open to all South Carolina grade school students and entries will be categorized into four grade divisions: K-2, 3-5, 6-8, and 9-12. A winner will be selected from each of the four divisions, and each division winner will receive $50. An overall winning logo will be chosen from the four division winners and will receive an additional $50 prize for a total of $100.
The winning entries will be selected by “The Insiders,” a select group of students from the South Carolina Department of Juvenile Justice, who travel throughout the state encouraging children and promoting community awareness of the consequences of juvenile crime. In addition to the South Carolina Department of Juvenile Justice, the United States Attorney’s Office is proud to partner with the South Carolina Law Enforcement Officers’ Association and the South Carolina Sheriffs’ Association for this year’s contest.
Entries should be consistent with the theme “Preventing Gun Violence in Our Schools.” The deadline for submissions is April 1, 2022. If your student is interested in participating, contact your local school as contest information has been sent to all South Carolina schools. Applications and contest rules may also be found on our website at https://www.justice.gov/usao-sc/programs/ceasefire/project-sentry/contest-winners/contest-rules.
PSN focuses on reducing violent crime in our communities through enforcement, reentry, and prevention initiatives. The annual logo contest is an important prevention initiative that has proven to be an effective way to engage our students in meaningful conversation about preventing gun crimes amongst our young people and ensuring a safe learning atmosphere for our children. For more information on the contest and to view winning logos from previous years, please visit http://www.justice.gov/usao/sc/programs/logowinners.html.
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Two Swanton Men Charged with Illegal Possession of FirearmsRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that yesterday the Grand Jury in Burlington returned indictments charging Jesse Sweet, 26, and Eric Raymond, 31, both of Swanton, with unlawful possession of firearms. The investigation is being led by Vermont State Police, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, as well as the Swanton Police Department and the Franklin County Sheriff’s Department.
Sweet is charged with possessing a Ruger .308 rifle while he was an unlawful user of controlled substances and after having been convicted of a misdemeanor crime of domestic violence. Court records explain that in or about December 2021, Sweet traded a snowmobile for that rifle.
Raymond is charged with possession of an Anderson Manufacturing AM-15 rifle after having been convicted of a crime punishable by a term of imprisonment exceeding one year. Court records explain that on February 2, 2022, police observed Raymond driving an ATV toward the back portions of his Swanton residence. Police followed those tracks, which led to footprints, which led to the firearm below an abandoned vehicle.
The indictments are accusations only, and both men are presumed innocent until and unless they are convicted beyond a reasonable doubt.
Both men were arrested last Friday, February 11. United States Magistrate Judge Kevin J. Doyle has ordered that both men be detained pending trial.
Sweet and Raymond are scheduled to be arraigned on the indictments next Friday, February 25. Sweet is represented by Steven Barth of the Federal Public Defender’s office. Raymond is represented by Robert Behrens. Assistant United States Attorney Michael Drescher is the prosecutor.
These cases are being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. https://www.justice.gov/psn
Two Defendants Sentenced in U.S. District CourtRead the Press Release
ALEXANDRIA, La. – United States Attorney Brandon B. Brown announced that two defendants were sentenced yesterday by United States District Judge Dee D. Drell in two separate cases.
Gregory Leonard Jones, Jr., 46, of Alexandria, Louisiana, was sentenced to 24 months in prison, followed by 2 years of supervised release and ordered to forfeit his interest in the firearms seized at the time of his arrest. On June 22, 2020, law enforcement officers executed a search warrant at a residence where Jones resided. During the search, officers recovered firearms and ammunition that Jones was not allowed to have in his possession. Jones has previous felony convictions for possession of cocaine and possession of a firearm by a convicted felon (2007), aggravated battery (2001), criminal damage and simple burglary (1996), and possession of stolen goods (1994).
The case was investigated by the ATF and Rapides Parish Sheriff’s Office and was prosecuted by Assistant U.S. Attorney Daniel J. McCoy.
In an unrelated case, Levar Washington, 42, who is a federal inmate, was sentenced to 160 months in prison, to run consecutive to any sentence he is presently serving or yet to serve, for assaulting a correctional officer. Washington was previously sentenced in 2008 in the Central District of California to 22 years in federal prison for conspiring to levy war against the United States through terrorism and using and carrying a firearm in connection with a crime of violence.
The charges in this case stem from an incident involving Washington in October 2020 at the Federal Correctional Complex (FCC) in Pollock, Louisiana. A correctional officer attempted to stop Washington as he walked through the metal detector when he was returning to the housing unit from the recreational yard. Rather than stop as he was ordered to do, Washington removed an approximately 11-inch metal prison shank that he had concealed within his waistband, quickly turned around, and attacked that correctional officer, stabbing him multiple times about his arms and chest. Several correctional officers responded to the scene with pepper spray, eventually tackling Washington and securing him in restraints.
This case was investigated by the Federal Bureau of Investigation and the U.S. Bureau of Prisons and was prosecuted by Assistant U.S. Attorney Mike Shannon.
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Tulsa Man Sentenced for the Assault and Attempted Kidnapping of an Intimate PartnerRead the Press Release
A Tulsa man who assaulted and attempted to kidnap his intimate partner then tried to convince her to lie to authorities about the incident was sentenced Thursday in federal court, announced U.S. Attorney Clint Johnson.
U.S. District Judge Gregory K. Frizzell sentenced Derek Lee Lovell, 37, to 80 months in federal prison followed by three years of supervised release.
“Derek Lovell assaulted his partner, attempted to drag her to their car against her will, then tried to manipulate her into lying to protect him from prosecution,” said U.S. Attorney Clint Johnson “The U.S. Attorney’s Office will not tolerate domestic violence in Indian Country.”
In October, a federal jury convicted Lovell of attempted kidnapping in Indian Country; assault with intent to commit a felony; and attempting to influence, delay, and prevent testimony through corrupt persuasion.
On Jan. 28, 2021, the Tulsa Police Department responded to a Burger King near 1100 S. Harvard Ave. and 3242 E. 11th Street. Callers provided information that a man was assaulting a woman near the establishment. Callers further reported the man had a knife and fled in a silver Chrysler sedan.
Responding officers made contact with the female victim who stated that she had fled from her spouse as he chased her down the sidewalk. He eventually pinned her against a nearby concrete wall then attempted to drag her back to a vehicle. Officers observed the victim was visibly shaken. She was also concerned about cooperating with officers due to fear of reprisal.
During the assault, a driver pulled over and attempted to help the victim. Lovell then pulled out a pocketknife, approached the vehicle, stabbed the front right tire and shouted an expletive. Two other witnesses who tried to help the victim, along with camera footage, corroborated the driver’s statement to officers. The witnesses were also able to describe Lovell’s vehicle and license plate.
On Jan. 29, 2021, Tulsa Police officers executed a traffic stop on Lovell’s vehicle while on South Lewis Avenue and took the defendant into custody.
In court documents, Assistant U.S. Attorney Julie Childress noted the violence involved in the offense, Lovell’s attempts to thwart justice, and Lovell’s extensive criminal history, which included two domestic violence convictions within the last five years. Following those convictions, the state of Oklahoma filed revocation applications for Lovell’s failure to appear for supervision, failure to provide required residence and employment information, failure to complete batterer’s counseling, failure to obtain drug and alcohol assessments, and for new criminal charges. Childress suggested that Lovell’s criminal history demonstrated a complete failure of personal accountability.
Lovell is a citizen of the Choctaw Nation, and the crimes were committed within the Muscogee Nation reservation.
The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorneys Julie A. Childress and Edward Snow prosecuted the case.
Tucson Man Sentenced to 30 Months for Attempting to Smuggle Noncitizens in Water Tanker TruckRead the Press Release
TUCSON, Ariz. – Last week, Sean Christopher Hale, 33, of Tucson, Arizona, was sentenced by U.S. District Judge Rosemary Marquez to 30 months in federal prison, followed by three years of supervised release. Hale previously pleaded guilty to Transportation of Illegal Aliens for Profit Placing in Jeopardy the Life of Any Person.
“This case is a stark reminder of how human smuggling organizations endanger and exploit noncitizens looking for a better life in America,” said United States Attorney Gary Restaino. “We must deter illegal transportation not only to vindicate our border laws, but also to protect the vulnerable among us, regardless of their immigration status.”
On June 19, 2021, Hale was stopped while driving a large water truck that was reported to be smuggling noncitizens in its tank. When Border Patrol Agents opened the steel tank of the vehicle, they found 26 individuals inside. While the individuals had only been in the tank for a short period of time, most were already sweating and having difficulty breathing. Some of the individuals rescued from the tank had fainted due to the heat and lack of oxygen.
The United States Border Patrol conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-21-02462-RM-LCK
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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.Toronto Man Extradited for Leadership Role in Racketeering Conspiracy, Operating Dozens of Illegal Asian Brothels in Three CountriesRead the Press Release
PORTLAND, Ore.—A Canadian man was extradited to the United States and arraigned in federal court today for his leadership role in an international sex trafficking organization operating illegal Asian brothels in the United States, Canada and Australia.
Zongtao Chen aka Mark Chen, 49, of Toronto, Canada made his first appearance in federal court today in the District of Oregon and was arraigned by U.S. Magistrate Judge John V. Acosta on charges of conspiring to use and using interstate facilities to promote, manage, establish, carry on, or facilitate a racketeering enterprise. Chen was ordered detained pending further court proceedings.
According to court documents, Chen led a criminal enterprise that recruited women, primarily from China, to travel to the United States and elsewhere to engage in prostitution and other sex trafficking activities. In cities where the organization operated, a “boss” would oversee and manage a local brothel in a hotel or apartment complex. Customers seeking to engage in acts of illegal prostitution would call a number listed on www.supermatchescort.com or related websites, or send a text, email, or encrypted internet message. The organization employed dispatchers who would receive incoming requests for “dates” from potential customers. The dispatchers would coordinate and schedule dates with women working in the various brothels.
Dispatchers used a computer program to schedule and track the prostitution dates. When seized by law enforcement, this computer program contained a customer database with more than 30,000 phone numbers and records from previous dates. In Oregon, Chen promoted illegal prostitution activities brothels in Portland, Tigard and Beaverton.
On November 15, 2018, a federal grand jury in Portland returned a two-count indictment charging Chen and four co-conspirators—Weixuan Zhou aka Marco Zhou, 40, of Guangzhou, China; Yan Wang aka Sarah Wang, 36, of Temecula, California; and Chaodan Wang, 35, and Ting Fu, 38, both of Beaverton—with conspiring to use and using interstate facilities to promote, manage, establish, carry on, or facilitate a racketeering enterprise.
On January 15, 2019, the FBI partnered with local law enforcement agencies in more than a dozen cities across the United States to conduct sting operations targeting Chen’s organization along with other Asian sex trafficking networks. As part of the coordinated law enforcement operation, the FBI seized www.supermatchescort.com and approximately 500 other associated domains, including 25 location-specific sub-domains.
At around the same time, Chen was arrested by the Toronto Police Service Human Trafficking Enforcement Team and Fugitive Squad at the request of the United States. On November 2, 2021, Canada’s Minister of Justice approved Chen’s extradition to the United States to face prosecution. This week, the U.S. Marshals Service transported Chen to Portland.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by FBI Portland’s Child Exploitation Task Force (CETF) with assistance from Homeland Security Investigations (HSI) agents in Omaha, Nebraska. The Toronto Police Service provided assistance. The Justice Department’s Office of International Affairs worked with law enforcement partners in Canada to secure the arrest and extradition of Chen to the United States. Participating CETF member organizations include the Portland Police Bureau, Beaverton Police Department, Tigard Police Department and Clackamas County Sheriff’s Office.
Julia Jarrett, Assistant U.S. Attorney for the District of Oregon is prosecuting the case.
The FBI CETF conducts sexual exploitation investigations, many of them undercover, in coordination with federal, state and local law enforcement agencies. CETF is committed to locating and arresting those who prey on children as well as recovering and assisting victims of sex trafficking and child exploitation.
The National Cyber Forensics and Training Alliance (NCFTA) assisted in the seizure of the websites related to this investigation. The NCFTA, established in 2002, is a nonprofit partnership between private industry, government and academia for the sole purpose of providing a neutral, trusted environment that enables two-way collaboration and cooperation to identify, mitigate and disrupt cybercrime.
An indictment is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty.