Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Wednesday 5 January 2022
Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. - A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Three Trempealeau County Men Charged with Cocaine Conspiracy
Mark Ian Castro, 29, Cristian Andre Vazquez Velez, 22, and Michael Carmenatty Justiniano, 40, all of Independence, Wisconsin, are charged with conspiring to distribute and to possess with intent to distribute 500 grams or more of cocaine. The indictment alleges that this conspiracy operated from August 2020 to July 2021.
The indictment further alleges that on June 29, 2021, Mark Ian Castro and Cristian Andre Vazquez Velez possessed firearms in furtherance of this drug trafficking crime. The indictment also charges these two men with attempting to possess cocaine for distribution on July 6, 2021, and with attempting to possess 500 grams of more of cocaine for distribution on July 14, 2021.
If convicted, each of the three defendants face a mandatory minimum penalty of 5 years and a maximum of 40 years in federal prison on the conspiracy charge. Mark Ian Castro and Cristian Andre Vazquez Velez each face a mandatory minimum penalty of 5 years on the charge of possessing firearms in furtherance of a drug trafficking crime. Federal law requires that any sentence imposed on this charge be served consecutive to any other prison sentence imposed. Those two also each face a maximum of 20 years on the charge of attempting to possess cocaine for distribution, and a mandatory minimum of 5 years and a maximum of 40 years on the charge of attempting to possess 500 grams or more of cocaine for distribution.
The charges against the defendants are the result of an investigation by the U.S. Postal Service–Office of Inspector General; U.S. Postal Inspection Service; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; Wisconsin Department of Justice Division of Criminal Investigation; Trempealeau County Sheriff’s Office; Winona County (Minnesota) Sheriff’s Office; Arcadia Police Department; and Independence Police Department. Assistant U.S. Attorney Chadwick Elgersma is handling the prosecution.
Beloit Man Charged with Drug & Gun Crimes
Eshawn M. Reed, 39, Beloit, Wisconsin, is charged with 3 counts of distributing crack cocaine, 1 count of possessing crack cocaine with the intent to distribute, 1 count of being a felon in possession of a firearm, and 1 count of possessing a firearm in furtherance of a drug trafficking crime. The indictment alleges that Reed distributed crack cocaine on April 6, July 19, and August 5, 2021. The indictment further alleges that on August 10, 2021, he possessed crack cocaine for distribution and a loaded Ruger 57 handgun.
If convicted, Reed faces a maximum penalty of 20 years in federal prison on each of the distribution charges and the charge of possessing crack cocaine for distribution. The felon in possession of a firearm charge has a maximum penalty of 10 years and the charge of possessing a firearm in furtherance of a drug trafficking crime has a mandatory minimum penalty of 5 years. Federal law requires that any sentence imposed on the charge of possessing a firearm in furtherance of a drug trafficking crime be served consecutive to any other sentence imposed.
The charges against Reed are the result of an investigation by the City and Town of Beloit Police Departments, Janesville Police Department, Wisconsin Department of Justice Division of Criminal Investigation, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Steven Anderson is handling the prosecution.
La Crosse Man Charged with Drug Crimes Involving Fentanyl
Antoine Hardie, 36, La Crosse, Wisconsin, is charged with 5 counts of distributing fentanyl. The indictment alleges that Hardie distributed fentanyl on June 24, June 30, July 14, September 14, and September 17, 2021.
If convicted, Hardie faces a maximum penalty of 20 years in federal prison on each of the distribution charges. The charges against him are the result of an investigation by the Wisconsin Department of Justice Division of Criminal Investigation, La Crosse Police Department, and Holmen Police Department. Assistant U.S. Attorney Meredith Duchemin is handling the prosecution.
Wausau Man Charged with Distributing Methamphetamine
Jacob Ring, 30, Wausau, Wisconsin, is charged with 2 counts of distributing 50 grams or more of methamphetamine, and 1 count of possessing 50 grams or more of methamphetamine with intent to distribute. The indictment alleges that he distributed methamphetamine on June 18 and July 15, 2021 and that he possessed methamphetamine for distribution on August 13, 2021.
If convicted, Ring faces a mandatory minimum penalty of 5 years and a maximum of 40 years in federal prison on each count. The charges against him are the result of an investigation by the Central Wisconsin Drug Task Force; Wausau Police Department; Marathon County Sheriff’s Office; and the Wisconsin Department of Justice Division of Criminal Investigation. Assistant U.S. Attorney Taylor Kraus is handling the prosecution.
Middleton Man Charged with Gun Crime
Ramar A. Brown, 26, Middleton, Wisconsin, is charged with being a felon in possession of a firearm. The indictment alleges that on October 12, 2021, Brown possessed a 9mm handgun.
If convicted, Brown faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the Fitchburg Police Department, Wisconsin Department of Justice Division of Criminal Investigation, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Steven Anderson is handling the prosecution.
Ashland Man Charged with Possessing Child Pornography
Adam M. Smith, 34, Ashland, Wisconsin, is charged with 1 count of possessing child pornography. The indictment alleges that on September 20, 2021, Smith possessed a Lenovo tablet containing visual depictions involving the use of minors engaging in sexually explicit conduct. The indictment further alleges that at least one of the depictions involved a minor who had not attained 12 years of age.
If convicted, Smith faces a maximum penalty of 20 years in federal prison. The charge against him is the result of an investigation by the Ashland Police Department and Wisconsin Department of Justice Division of Criminal Investigation. Assistant U.S. Attorney Elizabeth Altman is handling the investigation.
Fort Wayne Man Sentenced 240 Months in PrisonRead the Press Release
FORT WAYNE – Calvin Mitchell, Jr., 39 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Judge Holly A. Brady after pleading guilty to distribution of more than 50 grams of methamphetamine, announced United States Attorney Clifford D. Johnson.
Mitchell was sentenced to 240 months in prison followed by 5 years of supervised release.
According to documents in the case, in February and March 2021, law enforcement conducted controlled buys of over 380 grams of methamphetamine from Mitchell. During one of the buys, Mitchell boasted about having fentanyl available that was so strong “it was killing people.” When officers searched Mitchell’s residence, they located large quantities of a cutting agent and over $7,000 in cash. Lab tests confirmed the purchased methamphetamine was 100% pure.
This case was investigated by the Drug Enforcement Administration with the assistance of the Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorney Brent Ecenbarger.
###
Former bookkeeper of a St. Louis accounting firm sentenced to prison for $670K fraud schemeRead the Press Release
ST. LOUIS – Paula Smith, 69, of O’Fallon, Missouri, appeared before United States District Court Judge Matthew T. Schelp on today’s date. Smith was sentenced to 46 months in federal prison. Smith previously pleaded guilty to three counts of mail fraud and one count of money laundering.
Smith was a bookkeeper at an accounting firm that managed a lucrative trust account for a client (the D.E.W. Trust). The D.E.W. Trust, which was at one time valued at $8.6 million, had over twenty named beneficiaries, including twelve charitable organizations in St. Louis, Missouri. Between October 2013 and June 2018, Smith defrauded the D.E.W. Trust and its beneficiaries by writing numerous checks totaling $670,000 from the D.E.W. Trust to herself. None of the funds should have gone to Smith.
To conceal her scheme, Smith manipulated the accounting records for the D.E.W. Trust by mislabeling the fraudulent checks as being advance payments to a trustee and as payments to a vendor. As a result of these fraudulent transactions, there were less available funds to be properly distributed to the intended charitable organization beneficiaries of the D.E.W. Trust.
Smith used the funds to personally enrich herself, including to buy a 2017 Chevrolet Silverado K1500 and a 2018 Keystone Hornet Hideout 26RLS Travel Trailer.
“People who think they can get away with embezzling money should realize the crime eventually catches up with them like it did with Paula Smith,” said Acting Special Agent in Charge Spencer Evans of the FBI St. Louis Division. “While Smith enriched herself in the short term, she will now pay a much higher price with a sentence of almost 4 years in federal prison.”
The above case was investigated by the Federal Bureau of Investigation with assistance from the Montgomery Bank Anti-Money Laundering Team. Assistant United States Attorney Kyle T. Bateman is handling the matter.
Former New Mexico Taxation and Revenue employee pleads guilty to wire fraud, identity theft, money launderingRead the Press Release
ALBUQUERQUE, N.M. – George Martinez, 45, of Albuquerque, pleaded guilty in federal court today to 42 counts each of wire fraud and aggravated identity theft and six counts of money laundering. A federal grand jury indicted Martinez on March 12, 2021.
According to the indictment and other court records, from May 18, 2011, through July 16, 2018, Martinez allegedly used his position as the Unit Supervisor/Bureau Chief of the Questionable Refund Unit at the New Mexico Taxation and Revenue Department to fraudulently alter tax refunds and direct them to bank accounts that he controlled.
Martinez perpetrated the fraud by copying tax returns that had already been processed or creating new returns in taxpayers’ accounts. He altered information such as taxpayers’ Social Security numbers, bank account numbers and withholding amounts in the returns. By changing the withholding amounts, he increased the amounts of the refunds. Martinez fraudulently directed $689,797 into accounts in his control.
Martinez faces a minimum of two years and up to 32 years in prison.
The FBI Albuquerque Field Office and the IRS Criminal Investigation Phoenix Field Office investigated this case with assistance from the New Mexico Taxation and Revenue Department’s Tax Fraud Investigations Division. Assistant U.S. Attorneys Jeremy Peña and Paul Schied prosecuted the case.
Federal Grand Jury A Indictments Announced- January 2022Read the Press Release
United States Attorney Clint Johnson today announced the results of the January 2022 Federal Grand Jury A.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Earl Dean Baker III. Aggravated Sexual Abuse by Force and Threat in Indian Country; Sexual Abuse by Threat and Fear in Indian Country. Baker III, 33, of Tulsa, allegedly threatened and raped a victim on Nov. 3, 2021. The FBI and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Julie Childress is prosecuting the case.
Andrew Michael Crowels, Katie Dawn Keck. Carjacking; Robbery in Indian Country; Carrying, Using, and Brandishing a Firearm During and in Relation to a Crime of Violence; Kidnapping in Indian Country; Robbery in Indian Country; Kidnapping in Indian Country. Crowels, 36, of Tulsa, and Keck, 32, of Pryor, allegedly took a vehicle from the owner by force and intimidation on Dec. 14, 2021. Crowels allegedly brandished a firearm during the carjacking. Crowels and Keck, aided and abetted by others, also allegedly kidnapped the victim and stole currency, debit cards, credit cards, the victim’s Ford Focus, and a cell phone during the incident. After being unable to use the victim’s debit card, the defendants forcibly took the victim to his place of employment and stole money from the safe. The Tulsa Police Department is the investigative agency. Assistant U.S. Attorney Thomas Buscemi is prosecuting the case.
Coti D’Shayne Davis. Failure to Register as a Sex Offender. Davis, 30, of Tulsa, is charged with failing to register and update his registration as a sex offender from Feb. 1, 2019, to July 31, 2021. The U.S. Marshals Service is the investigative agency. Assistant U.S. Attorney Valeria Luster is prosecuting the case.
Dhylian Whalin Rhain Gonzalis. Assault of an Intimate/Dating Partner by Strangling, Suffocating, and Attempting to Strangle and Suffocate in Indian Country; Assault Resulting in Substantial Bodily Injury to an Intimate/Dating Partner in Indian Country; Assault of an Intimate/Dating Partner by Strangling, Suffocating, and Attempting to Strangle and Suffocate in Indian Country; Assault Resulting in Substantial Bodily Injury to an Intimate/Dating Partner in Indian Country. Gonzalis is charged with two counts of strangling his dating partner on Aug. 28, 2020. He further charged with two counts of striking the victim, causing serious bodily injury. The FBI and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Thomas Buscemi is prosecuting the case.
Christian James Harrison. First Degree Murder in Indian Country; Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country; Carrying, Using, Brandishing, and Discharging a Firearm During and in Relation to a Crime of Violence. Harrison, 19, of Tulsa, is charged with shooting and killing a 13-year-old boy during an argument on Dec. 22, 2021. Harrison is also charged with assaulting and discharging a firearm at a second victim. The FBI and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Christopher Kelly is prosecuting the case.
Michael Dylan Hedrick. Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country. Hedrick, 28, of Tulsa, allegedly struck the victim with the intent of doing bodily harm on Nov. 28, 2021. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Richard M. Cella is prosecuting the case.
Randy Thomas Lynch; Haley Ashton Spry. Felon in Possession of a Firearm and Ammunition; Drug Conspiracy; Possession of Methamphetamine with Intent to Distribute; Possession of Firearms in Furtherance of a Drug Trafficking Crime; Maintaining a Drug-Involved Premises; Receipt of a Firearm While Under Indictment for a Felony (superseding indictment). Lynch, 34, of Tulsa, is charged in count 1 with being a felon in possession of a Mossberg 12-guage caliber pump-action shotgun; a Smith and Wesson .40 caliber semi-automatic pistol; a Taurus .38 Special caliber revolver; a Remington Union Metallic Cartridge Company .45 caliber semi-automatic pistol; a Kimber .45 caliber semi-automatic pistol; a Winchester 20-gauge caliber pump-action shotgun; a Hawk Industries Co. Ltd 12-gauge caliber pump-action shotgun, and 57 rounds of assorted ammunition. Lynch is charged in Count 2 with conspiring with others to possess with intent to distribute and to distribute 500 grams or more of methamphetamine. He is further charged with knowingly possessing with intent to distribute methamphetamine and with possession of a firearm in furtherance of a drug trafficking crime. Both Lynch and Spry, 24, of Tulsa, are charged with aiding and abetting each other when maintaining a residence for the purpose of distributing methamphetamine. Finally, Spry is charged with receiving a Glock .380 caliber semi-automatic pistol while under indictment for a felony. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Tulsa County Sheriff’s Office are the investigative agencies. Assistant U.S. Attorney David A. Nasar is prosecuting the case.
Geary Wayne Stotesbury. Carjacking; Kidnapping in Indian Country; Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country; Theft of over $1,000 in Indian Country; Tampering with a Witness and Victim by Using and Threatening Physical Force. Stotesbury, 40, of Pryor, used violence and intimidation to take a vehicle from a victim on Nov. 17, 2021, after he kidnapped the victim. He is also charged with cutting and stabbing the victim during the carjacking. Stotesbury is also charged with theft of property worth over $1,000 in value, which included cash, a cell phone and the victim’s vehicle. Finally, Stotesbury is charged with threatening to kill the victim and hitting and cutting the victim to prevent her from reporting the crime to authorities. The FBI and Mayes County Sheriff’s Office are the investigative agencies. Assistant U.S. Attorney Gina Gilmore is prosecuting the case.
Jeffrey David Sutton. Assault with Intent to Commit Murder in Indian Country; Carrying, Using, Brandishing, and Discharging a Firearm During and in Relation to a Crime of Violence. Sutton, 53, of Mounds, is charged with shooting a victim with intent to commit murder on Dec. 2, 2021. He is further charged with carrying and discharging a firearm during a crime of violence. The FBI, Tulsa County Sheriff’s Office and Oklahoma State Bureau of Investigation are the investigative agencies. Assistant U.S. Attorney Steven Briden is prosecuting the case.
Amanda Nicole West. Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country. West, 33, of Bartlesville, allegedly brandished a knife and threatened to stab and kill the victim. The FBI and Bartlesville Police department are the investigative agencies. Assistant U.S. Attorney Kyle McWaters is prosecuting the case.
Essex County Man Charged with Sex TraffickingRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man made his initial appearance today on charges of sex trafficking, U.S. Attorney Philip R. Sellinger announced today.
Amin Sharif, 47, of Newark, is charged by criminal complaint with one count of attempted sex trafficking an adult woman and one count of sex trafficking a minor. Sharif appeared by videoconference before U.S. Magistrate Judge Cathy L. Waldor and was detained.
According to documents filed in this case and statements made in court:
Since January 2021, law enforcement officials have been investigating Sharif for transporting and attempting to transport women and minors from various states to New Jersey and elsewhere for the purpose of engaging in commercial sex acts and other illicit conduct. Sharif used several social media platforms and profiles to recruit women and minors to engage in sex acts for money. Once in contact with his victims, Sharif used threats to coerce the victims into engaging in commercial sex acts. He advertised women and at least one underage girl online for commercial sex acts. Sharif also transported at least one underage girl located in another state into New Jersey and attempted to transport a woman located in another state into New Jersey via a commercial airline, in furtherance of his sex trafficking conduct.
The counts with which Sharif is charged are each punishable by a mandatory minimum of 15 years in prison and a maximum penalty of life in prison.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark and Special Agent in Charge Jacqueline Maguire in Philadelphia, and officers of the Allentown, Pennsylvania, Police Department, under the direction of Chief Charles Roca, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Kimberly Mitchell of the U.S. Attorney’s Office OCDETF and Narcotics Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Drug Trafficker Sentenced to over 19 Years in PrisonRead the Press Release
Gulfport, Miss. – A Pennsylvania man was sentenced today to 235 months in prison for conspiracy to distribute and attempt to distribute cocaine, announced U.S. Attorney Darren LaMarca and Acting Special Agent in Charge Vernon “Jeb” Bison of Homeland Security Investigations in New Orleans.
According to court documents, Darrell Young, 47, of Philadelphia, Pennsylvania, was found guilty by a jury following a seven- day trial in July 2021, on two counts of conspiracy and attempted drug trafficking. The trial testimony established that Young conspired with five others in the Dominican Republic, Philadelphia PA and New York, NY to purchase 17 kilos of cocaine in Gulfport. The drugs were to be taken back to New York and Philadelphia in a hidden compartment of a car that had been shipped from Philadelphia by Young. Three defendants were apprehended in downtown Gulfport during the operation. Young and defendant Anthony Abreu went to trial and were both found guilty. The third defendant entered a guilty plea prior to trial.
Homeland Security Investigations investigated the case.
Assistant U.S. Attorneys Annette Williams and Jonathan Buckner prosecuted the case.
Covington Woman Admits to Using Fake Investment Scheme to Commit Wire FraudRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that RITCHEL MOREHEAD, age 40, a resident of Covington, Louisiana, was convicted of wire fraud in connection with a fake investment scheme.
The government filed a superseding bill of information that charged MOREHEAD with committing wire fraud from December 2018 through February 2019. According to court documents, MOREHEAD used a corporation, Chel Corporation, to defraud six victims by embezzling a total of $460,000 that was supposed to cover fees, costs, and down payments for multi-million-dollar loans, when in fact MOREHEAD spent the funds on personal expenses, such as jewelry and a vehicle, and transferred cash to accounts overseas. Under the terms of the plea agreement, MOREHEAD pled guilty as charged to the superseding bill of information and agreed to pay $460,000 in restitution to the victims of her scheme. The government has already seized $190,784.90 in cash and assets from MOREHEAD.
MOREHEAD faces up to twenty years in prison, followed by up to three years of supervised release, a fine of up to $250,000 or twice the gross gain to MOREHEAD or the gross loss to any victims, and a $100 mandatory special assessment fee.
The Honorable Martin L. C. Feldman set MOREHEAD’s sentencing for April 6, 2022.
U.S. Attorney Evans praised the work of Homeland Security Investigations and the United States Secret Service. Assistant United States Attorney Nicholas D. Moses is in charge of the prosecution.
Columbus man sentenced to 3 years in prison for misusing Social Security Numbers to get apartments, vehicles, credit cardsRead the Press Release
COLUMBUS, Ohio – DeWayne Foster, 39, of Columbus, was sentenced in U.S. District Court to 36 months in prison for using false identifying information and Social Security Numbers on six occasions over the course of six months.
According to court documents, in 2018 and 2019, Foster used the alias “Thomas Walker” along with false Social Security Numbers to apply to rent apartments, purchase vehicles and obtain credit cards and personal loans.
In September 2018, Foster used a false SSN to rent a two-bedroom townhome in Sunbury, Ohio, for $1,570 per month.
On five other occasions, Foster used the Social Security Number of a minor born in 2007. Within one week in January 2019, Foster illegally used the SSN to obtain a vehicle loan for nearly $26,000, to sign a lease for an apartment in Powell, Ohio, for approximately $25,000, and to apply for a second, $41,000 auto loan.
In February 2019, Foster used the false information to obtain a personal credit card with a $2,000 limit. Finally, in March 2019, the defendant applied for a $15,000 loan.
Foster is currently serving an eight-year sentence in Union County for local narcotics crimes and will serve 12 months of his federal sentence after he is released from local custody. He is also ordered to pay more than $16,000 in restitution to the victims he defrauded in his federal case.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, announced the sentence imposed by Senior U.S. District Court Judge James L. Graham and commended the investigation by the Social Security Administration Office of the Inspector General and Columbus Division of Police. Special Assistant United States Attorney Timothy Landry is representing the United States in this case.
# # #
Collin County Man Sentenced for Child Pornography ViolationsRead the Press Release
SHERMAN, Texas – An Allen man has been sentenced to federal prison for federal child exploitation violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Clay Melton Denton, 57, was found guilty on June 11, 2021, of distribution, receipt and possession of child pornography and was sentenced to 20 years in federal prison today by U.S. District Judge Amos L. Mazzant, III. Denton was also ordered to pay an assessment of $10,000 under the Amy, Vicky, and Andy Victim Assistance Act of 2018.
According to the court documents and testimony at trial, in January and March 2018, undercover officers with the Plano Police Department and the Garland Police Department received child pornography, via an online platform, that had been distributed to them by a computer user. The officers traced the online conduct to the Denton residence in Allen, Texas. Members of the FBI obtained a search warrant for the residence, which they served on April 25, 2018. The searching team discovered multiple digital devices in the residence, including server racks, network area storage devices, laptops, hard drives, cellular phones, and digital storage media. Agents testified that the entire second story of the house was filled with floor-to-ceiling book cases storing digital devices, manuals, and peripherals. Additional testimony revealed that forensic analysis of the seized devices took almost one year. During this forensic analysis, personnel discovered tens of thousands of images and videos of child pornography. Specifically, evidence demonstrated that a laptop belonging to Denton and located on one of his desks contained the same software used to distribute child pornography to the undercover officers. That software was also used to obtain child pornography, which was saved on a different portion of Denton’s computer. Evidence also revealed that child pornography was located on a 60+ terabyte storage device that Denton owned and possessed. A federal grand jury returned an indictment charging Denton with federal violations on Sep. 11, 2019.
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by the Plano Police Department, Garland Police Department and the FBI Dallas Child Exploitation Task Force and prosecuted by Assistant U.S. Attorneys Marisa Miller and Maureen Smith.
###
Chinle Man Sentenced to Nearly 15 Years for Voluntary ManslaughterRead the Press Release
PHOENIX, Ariz. – Yesterday, Jeroy Johnson Benally, 23, of Chinle, Arizona, was sentenced by U.S. District Judge Dominic W. Lanza to 177 months in prison, followed by three years of supervised release. Benally previously pleaded guilty to Voluntary Manslaughter.
On August 28, 2020, Benally shot the victim two times with a rifle, resulting in the victim’s death. Benally is an enrolled member of the Navajo Nation.
The Federal Bureau of Investigation and the Navajo Nation Division of Public Safety conducted the investigation in this case. Assistant U.S. Attorney Raynette Logan, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-21-08018-PHX-DWL
RELEASE NUMBER: 2022-001_Benally# # #
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.Chicago Man Sentenced to 21 Months in PrisonRead the Press Release
HAMMOND- Jeremiah Taylor, 29, of Chicago, Illinois, was sentenced by United States District Court Judge James T. Moody after pleading guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Taylor was sentenced to 21 months in prison followed by 2 years of supervised release.
According to documents in the case, in March 2020, Taylor possessed a loaded firearm after having been previously convicted of a felony. Taylor has prior felony convictions for aggravated battery on a peace officer and criminal damage to government property.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Gary Police Department. This case was prosecuted by Assistant U.S. Attorney Kevin F. Wolff.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
California Man Admits Role in $50 Million Wire and Securities Fraud SchemeRead the Press Release
NEWARK, N.J. – A California man today admitted conspiring to commit wire and securities fraud in connection with his role in a $50 million internet-enabled fraud scheme, U.S. Attorney Philip R. Sellinger announced.
Allen Giltman, 56, of Irvine, California, pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez to an information charging him with one count of conspiracy to commit wire fraud and one count of conspiracy to commit securities fraud.
According to documents filed in this case and statements made in court:
From 2012 to October 2020, Giltman and others engaged in an internet-based financial fraud scheme, which generally involved the creation of fraudulent websites to solicit funds from investors. At times, the fraudulent websites were designed to closely resemble websites being operated by actual, well-known, and publicly reputable financial institutions; at other times, the fraudulent websites were designed to resemble legitimate-seeming financial institutions that did not exist.
Victims of the fraud scheme typically discovered the fraudulent websites via internet searches. The fraudulent websites advertised various types of investment opportunities, most prominently the purchase of certificates of deposit, or CDs. The fraudulent websites advertised higher than average rates of return on the CDs to lure potential victims.
The fraudulent websites used a variety of means to appear legitimate and to gain and maintain the trust of prospective investors, including: (a) displaying the actual names and logos of real financial institutions; (b) purporting that the institutions were members of or regulated by the Federal Deposit Insurance Corporation (FDIC), Financial Industry Regulatory Authority (FINRA), the Securities Investor Protection Corporation, or New York Stock Exchange; (c) claiming that deposits made to the institutions associated with the fraudulent websites were FDIC-insured; and (d) using FINRA or FDIC member identification numbers issued to real financial institutions and real FINRA broker-dealers.
After discovering one of the fraudulent websites, victims would contact an individual – identified in the information as Giltman – by telephone or email as directed on the sites. During his communications with victims, Giltman impersonated real FINRA broker-dealers by using their names and FINRA Central Registration Depository numbers. He would then provide the victims with applications and wiring instructions for the purchase of a CD. The funds wired by the victims would then be moved to various domestic and international bank accounts, including accounts in Russia, the Republic of Georgia, Hong Kong, and Turkey. None of the victims received a CD after wiring the funds.
To date, law enforcement has identified at least 150 fraudulent websites created as part of the scheme. At least 70 victims of the fraud scheme nationwide, including in New Jersey, collectively transmitted approximately $50 million that they believed to be investments.
The wire fraud conspiracy charge carries a maximum penalty of 20 years and a $250,000 fine, or twice the gross amount of gain or loss from the offense, whichever is greatest. The securities fraud charge carries a maximum penalty of five years in prison and a $250,000 fine, or twice the gross amount of gain or loss from the offense, whichever is greatest. Sentencing is scheduled for May 10, 2022.
The U.S. Securities and Exchange Commission (SEC) also filed a civil complaint against Giltman today based on the same conduct.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch in Newark, with the investigation leading to today’s guilty plea. He also thanked the SEC for the assistance provided by its Enforcement Division.
The government is represented by Assistant U.S. Attorney Anthony P. Torntore of the U.S. Attorney’s Cybercrime Unit in Newark.
Business Owner Sentenced for Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – An Olathe, Kansas, man who conspired with others to control construction businesses that received hundreds of millions of dollars in federal government contracts, was sentenced in federal court today for defrauding the government with respect to contracts set aside for service-disabled veterans and certified minorities.
“This contractor not only defrauded the government, but cheated to get contracts that should have gone to firms led by disabled veterans and minority owners,” said U.S. Attorney Teresa Moore. “His greed and deception allowed him to enrich himself at the expense of disabled veterans and minority owners. After forfeiting more than $5.5 million to the government and being sent to prison, he has learned the hard way that crime doesn’t pay.”
Matthew C. McPherson, 45, was sentenced by U.S. District Judge Roseann Ketchmark to two years and four months in federal prison without parole. McPherson also has forfeited to the government $5,516,786, which represents his share of the fraud proceeds.
“Today’s outcome demonstrates the commitment of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) and our law enforcement partners to protect the integrity of the DoD procurement process and the Small Business Administration set-aside programs intended to help smaller and/or disadvantaged businesses," said Special Agent in Charge Michael C. Mentavlos, DCIS Southwest Field Office. “We will continue to aggressively investigate and hold those accountable that take advantage of the U.S. government and taxpayer.”
“Today’s sentencing sends a clear message that contractors unjustly enriching themselves at the expense of our nation’s veterans will not be tolerated,” said Acting Special Agent in Charge Gavin McClaren with the VA Office of Inspector General’s Central Field Office. “We thank the U.S. Attorney’s Office and our outstanding law enforcement partners for their efforts in this joint investigation.”
“McPherson’s sentence sends a strong message that IRS-Criminal Investigation and its federal partners are committed to leveling the playing field when federal contracts are involved,” said IRS-CI Special Agent in Charge Tyler Hatcher, St. Louis Field Office. “The government established unique programs designed to help small disadvantaged businesses gain a foothold in the awarding of government contracts. McPherson lied about being qualified for these contracts and used nominees to further his crime.” Hatcher added, “These crimes have a significant negative impact on small disadvantaged businesses.”
On June 3, 2019, McPherson pleaded guilty to one count of conspiracy to commit wire fraud and major program fraud. McPherson admitted that he participated in a conspiracy from September 2009 to March 2018 to obtain contracts set aside by the federal government for award to small businesses owned and controlled by veterans, service-disabled veterans, and certified minorities. McPherson, who is neither a certified minority nor a veteran, was the owner of an established construction company in Topeka, Kan. (identified in court documents as Business C) that was not entitled to compete for those federal contracts.
McPherson and his co-conspirators controlled and operated Zieson Construction Company. The business was formed on July 9, 2009, with Stephon Ziegler, 61, of Weatherby Lake, Mo. – an African-American service-disabled veteran – as the nominal owner. Zieson’s primary business was obtaining federal construction contracts set aside for award to small businesses owned and controlled by service-disabled veterans or certified minorities. However, Ziegler did not control the day-to-day operations or the long-term decision making of Zieson. McPherson and his co-conspirators actually controlled and operated Zieson, and received most of the profits from Zieson through the respective business entities.
Between 2009 and 2018, Zieson was awarded approximately 199 federal contracts set aside for award to small businesses, minority-owned small businesses, and veteran-owned small businesses for which the government paid Zieson approximately $335 million. McPherson and his co-conspirators, through their business entities, received approximately $4,183,920 each from Zieson by using false and fraudulent invoices.
Ziegler pleaded guilty on May 21, 2019, to making a false statement to the U.S. Department of Veteran Affairs. Ziegler is scheduled to be sentenced on Jan. 20, 2022.
In 2014, when Zieson was growing too large to compete for small business contracts, McPherson and his co-conspirators used the minority status of another Zieson employee, Native American Rustin Simon, 45, of Smithville, Mo., to set up Simcon Corp as a small business in the state of Missouri. Simcon’s business, like Zieson’s, was to obtain federal construction contracts set aside for award to qualified small businesses. In reality, McPherson and his co-conspirators managed and controlled Simcon. Simcon was awarded a $4,423,638 contract in July 2016 from the U.S. Air Force and a $6,911,404 contract in September 2016 from the U.S. Army.
Zieson and Simcon used the same employees and shared office space and equipment. Zieson and Simcon were located in a building owned by an LLC that was controlled by McPherson and his co-conspirators. Zieson purported to subcontract work to Simcon (which Simcon did not actually perform) to establish alleged past performance and profitability. This allowed Simcon to claim experience and financial strength to successfully compete for federal set-aside contracts. McPherson and his co-conspirators each received approximately $319,866 from Simcon using false and fraudulent invoices.
Simon pleaded guilty on June 19, 2019, to two counts of making material false statements to the Small Business Administration and awaits sentencing.
McPherson also caused Business C to submit false and fraudulent invoices to Zieson in order to hide and receive profits from the scheme.
Co-defendant Patrick Michael Dingle,50 of Parkville, Mo., pleaded guilty on Sept. 13, 2020, and awaits sentencing. Dingle pleaded guilty to one count of conspiracy to commit wire and major program fraud. Dingle also pleaded guilty, in a separate case, to one count of filing a false tax return.
This case was prosecuted by Assistant U.S. Attorney Paul S. Becker and former Assistant U.S. Attorney Stacey Perkins Rock. It was investigated by the Department of Veterans Affairs, Office of Inspector General; the Department of Defense Criminal Investigative Service; the U.S. General Services Administration, Office of Inspector General; the U.S. Small Business Administration, Office of Inspector General; the Army Criminal Investigation Command, Major Procurement Fraud Unit; the Department of Agriculture, Office of Inspector General; IRS-Criminal Investigation; the U.S. Secret Service; the Air Force Office of Special Investigations, Procurement Fraud; the Naval Criminal Investigative Service; the Defense Contract Audit Agency - Operations Investigative Support (OIS); the U.S. Department of Labor, Office of Inspector General; and the Department of Labor, Employee Benefits Security Administration (EBSA).
Bullhead Man Indicted for Meth TraffickingRead the Press Release
United States Attorney Dennis R. Holmes announced that a Bullhead, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance.
Eric Paul Archambault, age 32, was indicted on October 13, 2021. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 5, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 40 years in federal prison and/or a $5,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between 2018 and 2021, on the Standing Rock Sioux Indian Reservation in South Dakota and North Dakota, Archambault knowingly and intentionally conspired to distribute and possess with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine.
The charge is merely an accusation and Archambault is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Mobridge Police Department, Northern Plains Safe Trails Drug Enforcement Task Force, Bureau of Indian Affairs – Office of Justice Services, Standing Rock Agency, and the Federal Bureau of Investigation. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Archambault was released on bond pending trial. A trial date was set for March 15, 2022.
Bear Man Indicted on Federal Child Pornography ChargesRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that a federal grand jury sitting in Wilmington returned an indictment yesterday charging James Pickett, 24, of Bear, Delaware, with distributing and possessing child pornography between August and December 2021.
Pickett has been in custody since his December 16, 2021 arrest. If convicted, Pickett faces a mandatory minimum penalty of 15 years in prison, with a maximum penalty of 40 years’ incarceration. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Weiss commented, “The production, distribution, and collection of child pornography is a heinous shadow industry that targets the most vulnerable among us – our children. My office is dedicated to protecting children and prosecuting those that engage in the sexual exploitation of minors. I would like to thank Homeland Security Investigations for their tireless efforts in this case.”
The case was investigated by Homeland Security Investigations. Assistant U.S. Attorney Briana Knox is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Barbour County man admits to firearm chargeRead the Press Release
ELKINS, WEST VIRGINIA – Caleb Andrew Beverly, of Philippi, West Virginia, has admitted to a firearms charge, United States Attorney William Ihlenfeld announced.
Beverly, 23, pleaded guilty today to one count of “Unlawful Possession of a Firearm.” Beverly, a person prohibited from having firearms, had two .25 caliber semi-automatic pistols in November 2020 in Barbour County.
Beverly, as a part of the plea, agreed to forfeit the following:
- A High Point, model 4595, .45 caliber rifle;
- An Arms Corporation of the Philippines (Armscorp), model 16, .22 caliber rifle;
- One Hundred Fifty-two (152) rounds of assorted ammunition;
- A Raven Arms, model MP-25, .25 caliber semi-automatic pistol;
- A Sundance Industries, Inc., model BOA, .25 caliber semi-automatic pistol;
- Assorted firearm parts.
Beverly faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the West Virginia State Police investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Associate of Violent Walterboro Gang Sentenced to More than 23 Years in Federal Prison on Gun ChargesRead the Press Release
Charleston, South Carolina --- United States Attorney Corey F. Ellis announced today that Quentin John Fishburne, a/k/a “Q”, 40, of Walterboro, was sentenced to more than 23 years in federal prison after a jury convicted him on numerous firearms charges, including two counts of being a felon in possession of a firearm and one count of conspiracy to make false statements in connection with the purchase of a firearm.
Evidence presented to the jury showed that in March of 2018, Officers with the Walterboro Police Department discovered a loaded .40 caliber pistol under Fishburne’s seat at a traffic safety checkpoint. At the time, Fishburne was on federal supervision following a 2017 conviction for aiding and abetting attempted murder in aid of racketeering. This conviction arose from a November 6, 2015, shooting in Colleton County, in which members and associates of a violent Walterboro gang disputed the outcome of an illegal car race and then attempted to rob a man holding money wagered on the race. Two men were shot, but authorities were not able to identify all of the shooters. Fishburne admitted to being an associate of the gang and driving another gang member from the scene of the shooting and received a time-served sentence.
Shortly after Fishburne was arrested with the .40 caliber pistol, his girlfriend, who had purchased the pistol from a Walterboro gun store, claimed that she had inadvertently left the gun in the vehicle Fishburne was driving. Agents with the Bureau of Alcohol Tobacco Firearms and Explosives (ATF) became suspicious, however, when they discovered that Fishburne had previously been arrested with another gun purchased by the same woman.
Additionally, ballistic analysis showed that the gun discovered under Fishburne’s seat matched three .40 caliber shell casings recovered from the scene of the November 6, 2015, shooting involving the gang, the same shooting that led to Fishburne’s 2017 conviction.
Fishburne was also convicted of possessing another firearm purchased by the same girlfriend, which was recovered by deputies of the Colleton County Sheriff’s Office following a high-speed chase involving Fishburne in 2014. In this incident, Fishburne fled from deputies and reached speeds of over 90 miles-an-hour on country roads while he and his passenger brandished handguns at the pursuing officer.
Fishburne previously spent ten years in a Georgia prison after killing his 18-year-old cousin over a dice game when he was 14 years old.
United States District Judge David Norton sentenced Fishburne to 285 months in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system. Fishburne’s trial was the last federal jury trial in Charleston before the COVID pandemic halted federal jury trials in the low country until the fall of 2021.
Judge Norton observed that Fishburne’s history of violence and recidivism was “consistent with statistics recently published by the U.S. Sentencing Commission” showing “that firearms offenders recidivated at a higher rate than all other offenders.” The Court concluded that a “substantial sentence” was “warranted to protect the public” from Fishburne and to “deter others” who “may follow his unfortunate path.”
The case was investigated by ATF, South Carolina Law Enforcement Division (SLED), the Walterboro Police Department, and the Colleton County Sheriff’s Office 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.
This case was also made possible by investigative leads generated from ATF’s National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin
Assistant United States Attorney Chris Schoen and Special Assistant United States Attorney Carra Henderson prosecuted the case.
# # # # #
Ashtabula Man Sentenced to More Than 10 Years in Prison for Repeat Distribution of DrugsRead the Press Release
U.S. Attorney Bridget M. Brennan announced that Rodney P. Taylor, 37, of Ashtabula, Ohio, was sentenced on Tuesday, January 4, 2022, by Judge Benita Y. Pearson to 124 months in prison after Taylor pleaded guilty to a drug conspiracy and possession with the intent to distribute methamphetamine.
According to court documents, on September 4, 2018, investigators with the Drug Enforcement Administration (DEA) observed Taylor delivering methamphetamine to a co-conspirator during a controlled drug buy operation. Prior to this incident, Taylor had been previously convicted of participating in a drug trafficking conspiracy in the Northern District of Ohio in April of 2010. At the time of the September offense, Taylor was on federal supervised release for this previous conviction.
This case was investigated by the DEA and was prosecuted by Assistant U.S. Attorney Brian S. Deckert.
Anchorage Man Sentenced to 35 Years in Prison for Sex Trafficking Minors, Child Pornography and Illegal Possession of a FirearmRead the Press Release
ANCHORAGE – An Anchorage man was sentenced today to 35 years in prison and a lifetime of supervised release by Senior U. S. District Court Judge Ralph R. Beistline on five counts of sex trafficking minors, three counts of production of child pornography and two counts of being a felon in possession of firearms. In handing down the sentence, Judge Beistline noted the defendant’s complete lack of respect for the law as well as the absence of any remorse or empathy for the victims whom he controlled and were significantly damaged by his conduct.
According to court documents, between October and December 2018, Tristan Jamal Grant, aka “Goo,” 35, conspired with another person to traffic two minors, a 15-year-old female and a 17-year-old female. Both minors were runaways who stayed with Grant at his co-conspirator’s apartment. While at the apartment, they created online advertisements that were used to market the minors. Grant then trafficked his victims by persuading them to perform sex acts for money; serving as protection for the minors; and driving one of the minors to a date to perform commercial sex acts. Additionally, Grant produced child pornography with one of the minors on two separate occasions.
Grant was arrested by Anchorage Police Department following a shooting on December 12, 2018. When arrested Grant was in possession of two weapons. Because Grant had previously been convicted of a felony, possession of those guns was illegal.
Grant remained in custody and was indicted by a federal grand jury. He escaped from custody during a court ordered release to meet with his attorney at the attorney’s office. Grant was captured and later sentenced to three years of imprisonment for charges relating to his escape, which he will serve consecutively to the above sentence. Grant was convicted of the charges following a bench trial in April 2021.
“The sex trafficking of minors is a horrific crime, often wreaking terrible physical and emotional harm upon vulnerable victims,” said U.S. Attorney John E. Kuhn, Jr. of the District of Alaska. “The facts in this case reflect an unfathomable disregard for the welfare of the minors involved. The U.S. Attorney’s Office and our law enforcement partners will do everything in our power to bring to justice anyone who exploits children, and we will seek fitting punishments to deter this tragic crime and protect the most vulnerable members of our society.”
“Tristan Grant used violent, manipulative means to force minors into performing commercial sex acts, while at the same time producing CSAM online and terrorizing our communities with other egregious acts of violence,” said Assistant Special Agent in Charge Shawn Peters of the FBI Anchorage Field Office. “His conduct caused immeasurable harm to the survivors and to the community of Anchorage, and for that, he will now spend over 35 years in federal prison. The FBI is grateful for our collaborative partnerships across the state as we continue to combat violent crime and crimes against Alaska’s youth.”
This case was investigated by the Federal Bureau of Investigation, Anchorage Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives, working together through the FBI’s Safe Streets/Crimes Against Children/Human Trafficking Task Force. The task force marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children through sex trafficking, as well as to identify and recover victims.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visitwww.justice.gov/psc.
###
Albert City Woman Sentenced to 30 Days Imprisonment for Money LaunderingRead the Press Release
A woman who laundered funds from her illegal business was sentenced on January 4, 2022 to 30 days’ imprisonment. Yesenia Ledesma-Ledezma, age 23, from Albert City, Iowa, received a prison term after pleading guilty on August 9, 2021, and agreeing to forfeit property acquired with proceeds from her illegal business.
At a plea hearing, Ledesma-Ledezma admitted that on April 9, 2020, she engaged in money laundering by purchasing a home for approximately $65,000 with proceeds derived from her extensive business operations which involved smuggling counterfeit goods into the United States and trafficking those counterfeit goods. The counterfeit goods known to law enforcement had an approximate domestic value of over $370,000, and defendant took in a profit of at least $65,000 from her counterfeit trafficking and smuggling activities.
Ledesma-Ledezma was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Ledesma-Ledezma was sentenced to 30 days’ imprisonment. She must also serve a two-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Ron Timmons and was investigated by Homeland Security Investigations and the United States Postal Inspection Service.
Ledesma-Ledezma is to surrender to the Bureau of Prisons on a date yet to be set.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 21-4063.
Follow us on Twitter @USAO_NDIA.
Tuesday 4 January 2022
York County Man Sentenced to Five Years’ Imprisonment for Possessing Firearm in Furtherance of Drug TraffickingRead the Press Release
HARRISBURG—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jahzaire Gilliam, age 20, of York, Pennsylvania, was sentenced yesterday by U.S. District Court Judge Christopher C. Conner to five years’ imprisonment for possessing a firearm in furtherance of drug trafficking. The sentence also included a two-year term of supervised release, which will follow the term of imprisonment.
According to United States Attorney John C. Gurganus, Gilliam previously admitted that while distributing marijuana in York in March 2021, he possessed a 9mm Century Arms Canik 55 semi-automatic pistol. The firearm was loaded with 18 rounds.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the York County Drug Task Force, and the York City Police Department. Assistant U.S. Attorney Carlo D. Marchioli prosecuted the case.
# # #
Woman Sentenced to 27 Months in Federal Prison for Postage Stamp SchemeRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Fanice Reed, aka Fanice Jones, 45, formerly of Humble, Texas, was sentenced to 27 months in federal prison for theft of government property. Reed was also ordered to pay $72,727.99 in restitution and serve a term of three years on supervised release following the period of incarceration.
According to court documents, from February 2019 through March 2020, Reed used counterfeit checks at post offices in Colorado and Texas to obtain large quantities of postage stamps. The counterfeit checks purported to be drawn on the bank accounts of law firms, non-profit groups, or other business entities, but the bank accounts did not exist. When asked to provide personal identification during these transactions, Reed provided false personal identification. On some occasions, Reed told postal employees that her law firm needed the postage for a big mailing that was about to go out. On other occasions, she told postal employees that she was buying the postage on behalf of a non-profit organization so they could send postage inside care packages to U.S. military troops. Through this scheme, Reed stole $258,452.64 from the United States Postal Service.
“Our country depends on the postal service for many essential functions, including delivery to every residential and business address in the nation,” said U.S. Attorney Cole Finegan. “We will prosecute fraudsters that target the postal service to help ensure the integrity of this vital institution.”
“Postal Inspectors work each day to protect key components of the U.S. Postal Service,” said Ruth Mendonça, Inspector in Charge of the Denver Division of the U.S. Postal Inspection Service. “When fraudsters steal from the postal service, they impact America’s most trusted government institution that delivers mail and packages to over 161 million addresses across the United States. Today’s sentence serves as another example of Postal Inspectors’ commitment to protecting the integrity of the U.S. Postal Service,” said Mendonça.
United States District Court Judge Christine M. Arguello sentenced Reed on January 4, 2022.
The investigation in this case was conducted by the United States Postal Inspection Service. The prosecution was handled by Assistant U.S. Attorney Pegeen Rhyne.
Case number: 21-cr-00142-CMA
###
Visit our website http://www.justice.gov/usao/co | Follow us on Twitter @DCoNews
Thirteen Arrested for Fentanyl DistributionRead the Press Release
AUSTIN – Today 13 individuals were arrested on criminal charges for their alleged involvement in fentanyl distribution.
According to court documents, Marcos Garcia, 18, of Somerton, AZ; Oliver Garcia, 20, of Lockhart; Christopher Brook, 23, of Austin; Jaime Cabrales, 23, of Austin; Matthew Juan, 19, of Austin; Adi Martinez Marquez, 19, of Austin; Andrew Ruben Ramirez, 23, of Austin; Ezequiel Azmitia-Jimenez, 19, of Lockhart; Michael Bauman, 18, of Austin; Daemon Lye Garcia, 19, of San Marcos; Ernest Ochoa, 18, of Austin; and Josue Nolasco-Campuzano, 20, of Live Oak, were arrested on charges of distributing fentanyl in the Austin area.
“This operation demonstrates this Office’s commitment to the disruption and prosecution of criminal organizations destroying communities through the distribution of deadly counterfeit prescriptions laced with fentanyl,” said U. S. Attorney Ashley C. Hoff. “We will continue to work with our law enforcement partners to confront this escalating problem.”
“Today’s coordinated law enforcement operation dismantled an enterprise responsible for the distribution of counterfeit pills; these fake pills laced with fentanyl were clandestinely manufactured to mimic the prescription pharmaceutical Oxycodone,” said Drug Enforcement Administration (DEA) Special Agent in Charge Daniel C. Comeaux, Houston Division. “Counterfeit pills have become a real and viable threat to the American people. We caution every person to never consume pharmaceuticals unless under licensed medical care and sourced from a licensed pharmacy. The DEA will continue to relentlessly pursue any individual or organization that threatens our communities with these fake deadly pills.”
Marcos Garcia, Oliver Garcia, Brook, Cabrales, Juan, Marquez, Ramirez and Azmitia are charged by federal indictment with one count of conspiracy to distribute fentanyl. If convicted, each defendant faces up to life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Bauman, Daemon Garcia, Ochoa and Nolasco are charged by federal criminal complaint of possessing with intent to distribute fentanyl. If convicted, each defendant faces up to life in prison.
The DEA, FBI, U.S. Postal Inspection Service, and the Austin, Cedar Park, San Angelo, and San Marcos Police Departments are investigating the case.
Assistant U.S. Attorney Mark Marshall is prosecuting the case.
An indictment or complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Theranos Founder Elizabeth Holmes Found Guilty of Investor FraudRead the Press Release
SAN JOSE - A jury found Elizabeth A. Holmes guilty of one count of conspiracy and three counts of wire fraud in connection with a multi-million-dollar scheme to defraud investors in Theranos, Inc., announced United States Attorney Stephanie M. Hinds; Federal Bureau of Investigation (FBI) Special Agent in Charge Craig D. Fair; Food and Drug Administration (FDA) Acting Commissioner Janet Woodcock; and U.S. Postal Inspection Service (USPIS) Inspector in Charge Rafael Nuñez. The verdicts follow a 15-week trial before the Honorable Edward J. Davila, United States District Judge.
“The jurors in this 15-week trial navigated a complex case amid a pandemic and scheduling obstacles,” said U.S. Attorney Hinds. “I thank the jurors for their thoughtful and determined service that ensured verdicts could be reached. The guilty verdicts in this case reflect Elizabeth Holmes’ culpability in this large-scale investor fraud and she must now face sentencing for her crimes.”
“Elizabeth Holmes chose fraud over business failure. A jury has determined, beyond a reasonable doubt, that she intentionally misled investors,” said Special Agent in Charge Craig Fair. “I want to thank the FBI San Francisco agents and analysts who spent years investigating allegations of fraud within Theranos to uncover the truth and ensure justice in this case.”
“The FDA’s Office of Criminal Investigations (OCI) will continue to investigate and help bring to justice individuals and companies responsible for putting the public health at risk,” said FDA Assistant Commissioner for Criminal Investigations Catherine A. Hermsen. “FDA-OCI is proud to have partnered with the United States Attorney’s Office and its law enforcement counterparts to bring this prosecution.”
“The U.S. Postal Inspection Service is committed to protecting consumers and investors from fraud,” said USPIS Inspector in Charge Nuñez. “We are proud of the dedication shown by Postal Inspectors and our partners at the U.S. FDA and the FBI by seeing this case through to a verdict.”
Holmes, 37, of Woodside, Calif., founded Theranos in 2003. Theranos was a blood testing company based in Palo Alto and Newark, Calif. Holmes used a combination of direct communications, marketing materials, statements to the media, financial statements, models, and other information to induce investments. She claimed Theranos had developed an analyzer, variously referred to as, among other things, the Theranos Sample Processing Unit (TSPU), Edison, or minilab. She claimed the analyzer was able to perform a full range of clinical tests using small blood samples drawn from a finger stick. She also represented that the analyzer could produce results that were more accurate and reliable than those yielded by conventional methods—all at a faster speed than previously possible.
The evidence submitted during the trial demonstrated Holmes knowingly made materially false representations to investors and potential investors about the analyzer. For example, the evidence showed that Holmes knew the analyzer had accuracy and reliability problems, performed a limited number of tests, was slower than some competing devices, and, in some respects, could not compete with existing, more conventional machines. Evidence also showed that Holmes resorted to using conventional machines bought from third parties to perform much of Theranos’s blood testing.
The trial included evidence that Holmes made numerous misrepresentations to potential investors about Theranos’s financial condition and its future prospects. For example, the evidence showed that Holmes represented to investors that Theranos would generate over $100 million in revenues and break even in 2014 and that Theranos expected to generate approximately $1 billion in revenues in 2015 when, in truth, she knew Theranos would generate only negligible or modest revenues in 2014 and 2015.
Further, the evidence showed that Holmes represented to investors that Theranos had a profitable and revenue-generating business relationship with the United States Department of Defense and that Theranos’s technology had deployed to the battlefield when, in truth, Theranos had limited revenue from military contracts and its technology was not deployed in the battlefield. The evidence showed Holmes represented to investors that Theranos had been comprehensively validated by numerous major pharmaceutical companies and provided reports to investors with logos from pharmaceutical companies falsely suggesting the pharmaceutical companies endorsed Theranos. In addition, the evidence showed that Holmes represented to investors that Theranos would soon dramatically increase the number of Wellness Centers within Walgreens stores even though Theranos’s retail Walgreens rollout had stalled because of several issues.
Holmes was initially charged on June 14, 2018. On July 28, 2020, a federal grand jury returned a superseding indictment charging Holmes with two counts of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349, and ten counts of wire fraud, in violation of 18 U.S.C. § 1343. One of the conspiracy counts alleged Holmes defrauded investors while the second count alleged Holmes defrauded patients who used Theranos services. Similarly, the indictment charged Holmes with ten counts of wire fraud, several of the counts alleging investor fraud and several alleging Holmes defrauded patients who were induced to purchase Theranos services.
The jury convicted Holmes of the investor wire fraud conspiracy count and three substantive wire fraud counts relating to the scheme to defraud investors, including wire transfers totaling more than $140 million. The jury acquitted Holmes of the patient-related conspiracy wire fraud count and three additional wire fraud counts. One count of wire fraud relating to a Theranos patient was dismissed during the trial. The jury could not reach a unanimous verdict with respect to three investor fraud-related counts.
Holmes faces a maximum sentence of twenty (20) years in prison, and a fine of $250,000, plus restitution, for the conspiracy count and each count of wire fraud. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Judge Davila has not yet scheduled Holmes’s sentencing hearing. She remains free on bond, pending further hearings.
Assistant U.S. Attorneys Robert S. Leach, Jeff Schenk, John C. Bostic, and Kelly Volkar are prosecuting the case with the assistance of Lakisha Holliman, Madeline Wachs, Elise Etter, Susan Kreider, and Leeya Kekona. The prosecution is the result of an investigation by the FBI, USPIS, and FDA Office of Criminal Investigations.
St. Louis man pleads guilty for committing multiple armed robberiesRead the Press Release
ST. LOUIS – United States District Court Judge E. Richard Webber accepted a plea of guilty from DeAngelo Winston on today’s date. Winston pleaded guilty to two counts of armed robbery and two counts of possession of a firearm and possession and brandishing of a firearm in furtherance of crimes of violence. Judge Webber set sentencing for April 7, 2022.
According to the plea agreement, on June 21, 2019, Winston entered the Boost Mobile cellular telephone store located at 3956 S. Broadway in the City of St. Louis. Winston went around the store counter, pointed a revolver at the clerk and demanded money from the register as well as iPhones. Winston then took both money and iPhones from the Boost Mobile and fled the store.
On August 13, 2019, Winston entered the Boost Mobile at 2253 S. Grand Avenue, St. Louis, Missouri, armed with a handgun. Winston walked around the counter and pushed his handgun into the side of a store clerk. Winston took money from the cash register and demanded the clerk take him into the back room where extra phones were stored. Winston also took phones from the safe in the back room and fled the store. Winston was later identified as the perpetrator of both robberies in a photo line-up.
The case was investigated by the St. Louis Metropolitan Police Department and Federal Bureau of Investigation.
South Florida Bookkeeper for International Enterprise That Operated Sexually Exploitive “Child Modeling” Websites Pleads GuiltyRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Tatiana Power (41, Weston) today pleaded guilty to a money laundering conspiracy related to a Florida-based international enterprise that operated subscription-based sexually exploitative “child modeling” websites. Power faces up to 20 years in federal prison.
According to court documents, Tatiana Power (also known as “Tanya Power”) helped run the financial affairs of the Newstar Enterprise—an internet-based business aimed at for-profit sexual exploitation of vulnerable children under the guise of “child modeling,” through a collection of websites called the Newstar Websites. Power did so as Vice President and part owner of Power Trading, Inc., a Florida corporation used to control, operate, and conceal the true nature of the Newstar Enterprise. From as early as 2009 through November 2019, Power served as Power Trading’s (and thus the Newstar Enterprise’s) “bookkeeper.” She oversaw Power Trading’s QuickBooks, filed its annual corporate registration documents, managed its bank accounts, paid salaries, helped wire money to foreign co-conspirators, and advised co-conspirators on how to evade law enforcement and conceal the true nature of monetary transactions. She routinely assisted in transferring money and making payments for the Newstar Enterprise. From January 2009 until November 2019, Power and her now deceased husband, Kenneth Power, made $2,211,651.89 in profit from the Newstar Websites.
The Newstar Enterprise and Status of Other Defendants
According to court documents, founded around 2005, the Newstar Enterprise built, maintained, hosted, and operated the Newstar Websites on servers in the United States and abroad. To populate the Newstar Websites with content, Newstar Enterprise members sourced, enticed, solicited and recruited males and females under the age of 18, some of whom were prepubescent, to use as “child models” for the Newstar Websites. Using the recruited child-victims, the Newstar Enterprise produced more than 4.6 million sexualized images and videos to distribute and sell on the Newstar Websites. Some of those images and videos, though non-nude, depicted minors engaged in sexually explicit conduct. For example, images and videos sold on the Newstar Websites depicted children as young as 6 years old in sexual and provocative poses, wearing police and cheerleader costumes, thong underwear, transparent underwear, revealing swimsuits, pantyhose, and miniskirts. Most of the child-victims—recruited from Ukraine, Moldova, and other nations in Eastern Europe—were particularly vulnerable due to their age, family dynamics and poverty. Law enforcement officers have disabled the servers hosting the Newstar Websites.
The Newstar Enterprise maintained a membership list for subscribers and customers of the Newstar Websites, who originated from 101 nations across the world. Images in the websites’ galleries were freely available to the public to preview, but greater access and more content required purchasing a subscription. The sale of purported “child modeling” content on the Newstar Websites generated more than $9.4 million during the course of the conspiracy. To process, receive and distribute this money, Newstar Enterprise members fraudulently opened merchant and bank accounts in the United States and laundered proceeds using a bogus jewelry company.
To date, six members of the Newstar Enterprise have been charged in connection with the Newstar Websites. The chart below shows the status of each case.
Name
Case Number
Charge(s)
Status
Maximum Penalty
Tatiana Power
8:21-cr-244-MSS-AAS
Conspiracy to commit money laundering
Pleaded guilty, sentence pending
20 years’ imprisonment
Kenneth Power
8:21-cr-00032-SDM-AAS
Conspiracy to advertise child pornography; conspiracy to distribute child pornography
Defendant deceased; case dismissed
60 years’ imprisonment
Plamen Velinov
8:21-cr-342-VMC-SPF
Conspiracy to advertise child pornography; conspiracy to distribute child pornography
Indicted
50 years’ imprisonment
Patrice Wilowski-Mevorah
8:21-cr-00206-MSS-TGW
Conspiracy to commit money laundering
Pleaded guilty, sentenced to 5+ years in prison
Anthony Lee Kendall
8:21-cr-358-SCB-TGW
Conspiracy to commit money laundering; promotion money laundering; concealment money laundering
Defendant deceased
100 years’ imprisonment
Mary Lou
Bjorkman
8:21-cr-00227-SDM-AAS
Conspiracy to commit money laundering
Pleaded guilty, sentence pending
20 years’ imprisonment
The defendants have also been notified that the United States intends to forfeit a total of $9.4 million, which are alleged to be traceable to proceeds of the offenses, in addition to real property located in Florida.
These cases were investigated by Homeland Security Investigations in Tampa and the High Technology Investigative Unit of the Department of Justice Criminal Division’s Child Exploitation and Obscenity Section (CEOS), with substantial assistance provided by Homeland Security Investigations offices in Fort Lauderdale, Athens, and the Hague, U.S. Customs and Border Protection in Sofia, Bulgaria, as well as the IRS Criminal Investigation in Tampa.
Assistant U.S. Attorney Frank Murray of the Middle District of Florida and Trial Attorney Kyle Reynolds of the CEOS are prosecuting these cases.
This investigation benefited from foreign law enforcement cooperation and substantial assistance by the Republic of Bulgaria, Supreme Cassation Prosecution Office and National Investigation Service; International Legal Assistance Center (IRC), North-Holland Unit; and the Czech Republic, Supreme Public Prosecutor’s Office, Czech Police. The Justice Department’s Office of International Affairs provided investigative assistance and its Office of Overseas Prosecutorial Development, Assistance and Training (OPDAT) provided capacity building assistance and mentoring.
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.
Shreveport Businessman Sentenced on Wire Fraud ChargeRead the Press Release
SHREVEPORT, La. – United States Attorney Brandon B. Brown announced that David D. DeBerardinis, 60, of Shreveport, Louisiana, was sentenced today by Chief United States District Judge S. Maurice Hicks, Jr. to 15 years in prison, followed by 3 years of supervised release, for committing wire fraud and defrauding many people out of millions of dollars. A presentence investigation estimated the amount of loss to the victims in this case to be over $58,000,000. A hearing will be held on March 28, 2022 at 9:00 to determine the exact full amount of restitution to be paid by DeBerardinis.
DeBerardinis, a Shreveport-based executive, pleaded guilty to the charge of wire fraud on August 25, 2021. DeBerardinis admitted that he operated and managed numerous business entities and that he represented himself and his business entities to be part of the petroleum industry involved in a complex fuel trading business. DeBerardinis solicited, and caused others to solicit, individual investors and financial institutions to provide funds for his businesses in exchange for interest payments and a guaranteed return of principal.
DeBerardinis told investors and financial institutions that he had a preferential trading arrangement with Alon USA Energy, Inc. (Alon) that generated significant profits that would be used to repay the investors and financial institutions when in truth and in fact, DeBerardinis knew that he had no such arrangement with Alon. Between April 2014 and June 2015, PlainsCapital Bank, a financial institution in Dallas, Texas, provided funding to DeBerardinis in the amount of $29,500,000 allegedly to expand his fuel trading business. At the time the funding was obtained, DeBerardinis knew that he was not making fuel trades and that he did not have a relationship with Alon.
The funding from PlainsCapital was made by several interstate wire transfers from PlainsCapital Bank in Dallas to one of DeBerardinis’ bank accounts in Shreveport. The defendant either initiated or caused to be initiated these wire transfers. One of the wire transfers occurred on or about November 25, 2014 in the amount of $17,100,000.
“As was evident in today’s sentencing hearing, this defendant spent many years conning not only business associates, but also friends who trusted him, out of millions of dollars and destroying many of their lives while doing so,” stated United States Attorney Brandon B. Brown. “His cavalier attitude about the deception he used and the destruction that he caused is appalling. Seeking justice for victims such as these in this case is what continues to drive us to work harder to weed out those who deploy such unconscionable acts.”
DeBerardinis was ordered to report to the U.S. Bureau of Prisons on February 16, 2022.
The case was investigated by the Federal Bureau of Investigation, United States Secret Service and Caddo Parish Sheriff’s Office. First Assistant U.S. Attorney Alexander C. Van Hook and Assistant U.S. Attorneys Jessica D. Cassidy and Cadesby B. Cooper prosecuted the case.
# # #
Several inmates facing chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA –Several inmates were indicted today on multiple charges, United States Attorney William J. Ihlenfeld, II announced.
Dwight Foster, 48, an inmate of USP Hazelton, is charged with one count of “Assault of a Correctional Officer Involving Physical Contact” and one count of “Possession of a Prohibited Object – Weapon.” Foster is accused of having a weapon on his person. He is also accused of striking a correctional officer in September 2021.
Jason Dent, 44, an inmate at USP Hazelton, is charged with one count of “Assault of a Correctional Officer Resulting in Bodily Injury.” Dent is accused of assaulting a Bureau of Prisons Special Investigative Services Lieutenant causing bodily injury in April 2021.
Shawn Ford, 23, an inmate at FCI Hazelton, was indicted on one count of “Attempt to Obtain a Prohibited Object – Narcotic.” Ford is accused of trying to obtain suboxone without the warden’s knowledge in April 2021.
Assistant U.S. Attorney Christopher L. Bauer is prosecuting each case on behalf of the government. The Bureau of Prisons investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Roswell businesswoman sentenced for $6 million in Paycheck Protection Program fraudRead the Press Release
ATLANTA - Hunter VanPelt has been sentenced to prison for bank fraud related to the Paycheck Protection Program (PPP) when she obtained over $6 million in fraudulent proceeds.
“The Paycheck Protection Program is meant to help legitimate businesses and their workers through the depths of the pandemic,” said U.S. Attorney Kurt R. Erskine. “Unfortunately, VanPelt decided to use the program as her personal bank. A significant federal sentence, such as the one she received, hopefully deters others from following the same path.”
“The FBI will not tolerate anyone who misdirects federal emergency assistance intended for business who actually need it to stay operational,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “This sentence serves as a message that the FBI and our federal partners remain vigilant during this Coronavirus pandemic to make sure funds provided by programs like PPP are used as intended."
“To support small and community banks, the Federal Home Loan banks can accept Paycheck Protection Program (PPP) loans as collateral when making advances to their members,” said Special Agent in Charge Edwin S. Bonano of the Federal Housing Finance Agency, Office of Inspector General. “The FHFA Office of Inspector General is proud to work with our partners in law enforcement to prevent, detect, and deter attempts to perpetrate fraud in the PPP program intended for small business owners and employees under this important part of the CARES Act.”According to Acting U.S. Attorney Erskine, the charges and other information presented in court: VanPelt, a/k/a Hunter Lauren VanPelt, a/k/a Ellen Corkrum, a/k/a Ellen Yabba Kwame Corkrum, submitted six false and fraudulent PPP loan applications between April 27, 2020 and June 17, 2020. The amounts requested in the six PPP loans totaled $7,943,591.50, of which $6,017,066.50 was disbursed.
VanPelt owned or controlled the six entities that sought these PPP loans: Georgia Nephrology Physician Associated, United Healthcare Group & Co., Nephrology Network Group LLC, First Corporate International, Corkrum Consolidated Inc., and Kiwi International Inc. The defendant, who legally changed her name from Ellen Corkrum to Hunter VanPelt in July 2016, submitted the PPP loan applications under both names.
In each of the PPP loan applications, VanPelt falsely represented the average monthly payroll and the number of employees working for the relevant company. She also submitted false IRS records, false bank statements, and false payroll reports in connection with those applications.
Federal agents were able to seize approximately $2.1 million of the fraudulent proceeds.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020. It is designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding. Additional funding was authorized by Congress in December 2020.
The PPP allows qualifying small-businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within eight weeks of receipt and use at least 75 percent of the forgiven amount for payroll.
Hunter VanPelt, a/k/a Hunter Lauren VanPelt, a/k/a Ellen Corkrum, a/k/a Ellen Yabba Kwame Corkrum, 49, of Roswell, Georgia, was sentenced to three years, five months in prison to be followed by five years of supervised release, and ordered to pay restitution in the amount of $7,002,031.50. She was also ordered to forfeit $2,077,381. VanPelt was convicted on these charges on August 18, 2021, after she pleaded guilty.
This case was investigated by the Federal Bureau of Investigation and the Federal Housing Finance Agency Office of Inspector General.
Assistant U.S. Attorney Christopher J. Huber, Deputy Chief of the Complex Frauds Section, and Department of Justice Trial Attorney Chris A. Wenger prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Rapper Pooh Shiesty Pleads Guilty to Federal Conspiracy ChargeRead the Press Release
Miami, FL – Today, Tennessee rapper Lontrell D. Williams, Jr. (a/k/a Pooh Shiesty) pled guilty to conspiring to possess firearms in furtherance of crimes of violence and drug trafficking.
As part of the plea, Williams, Jr. admitted to participating in the conspiracy on the following three occasions. First, on July 7, 2020, in Memphis, Tennessee, Williams, Jr. was inside a car when an occupant of the car discharged a firearm at a gas station. Second, on October 9, 2020, in Bay Harbor Islands, Florida, Williams, Jr. and his co-conspirators arrived at a meeting to acquire marijuana, codeine, and sneakers. During this meeting, members of Williams’ group brandished firearms and assaulted two victims. Following the assault, the group departed the scene with the victims’ marijuana, codeine, and sneakers. Third, on May 30, 2021, Williams, Jr. assaulted a victim with a firearm at a Miami strip club.
United States District Judge K. Michael Moore will sentence Williams, Jr. on a date to be announced. Williams, Jr. faces up to 20 years in federal prison.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI, Miami Field Office, made the announcement.
FBI Miami investigated the case, with assistance from ATF Miami, ATF Memphis, Miami Dade Police Department, Memphis Police Department, and Bay Harbor Islands Police Department. The Miami-Dade State Attorney’s Office also assisted. Assistant U.S. Attorneys Arielle Klepach, Ignacio J. Vázquez, Jr., and Dayron Silverio are prosecuting the case. Assistant U.S. Attorney William T. Zloch is handling asset forfeiture.
This case stems from Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. In 2017, PSN was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime. The case is also related to “Operation Summer Heat,” a Miami-Dade County antiviolence initiative.
This prosecution was part of Operation Northern Light, which is a result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the highest-level drug traffickers, money launderers, and other priority transnational criminal organizations that threaten the citizens of the United States using a prosecutor-led, intelligence driven, multi-agency approach to combat transnational organized crime. The OCDETF program facilitates complex, joint operations by focusing its partner agencies on priority targets, by managing and coordinating multi-agency efforts, and by leveraging intelligence across multiple investigative platforms.
Anyone with information related to possible gun crimes is asked to call Crime Stoppers at 305-471-TIPS.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-20357.
###
Rabbi Yisroel Goldstein Sentenced to Prison for Multi-Million-Dollar Fraud SchemesRead the Press Release
Assistant U. S. Attorneys Valerie H. Chu (619) 546-6750 and Michelle L. Wasserman (619) 546-8314
NEWS RELEASE SUMMARY – January 4, 2022
SAN DIEGO – Rabbi Yisroel Goldstein, former director at Chabad of Poway, was sentenced in federal court today to fourteen months in custody for his years-long, multi-million-dollar schemes to defraud the Internal Revenue Service, several San Diego Fortune 500 companies, and multiple public and private agencies. He was also ordered to pay restitution totaling $2,834,608.
According to his plea agreement, while Rabbi Goldstein was director of the Poway synagogue, he received at least $6.2 million in phony contributions to the Chabad and affiliated charities and secretly refunded up to 90 percent of the donations to the “donors.” After Rabbi Goldstein provided these donors with fake receipts, they illegally claimed huge tax deductions for these nonexistent donations, and the rabbi kept about 10 percent – more than half a million dollars over the course of the fraud - for himself. Tax losses to the IRS were more than $1.5 million.
Rabbi Goldstein also admitted that he defrauded three different Fortune 500 companies by tricking them into matching supposed charitable donations of their employees. Working with the employees, Rabbi Goldstein fabricated receipts and then secretly returned their fake “donations.” This allowed the employees to claim tax deductions for the completely fabricated donations, and allowed Rabbi Goldstein to collect the companies’ matching funds—including some that matched double their employees’ donations. Rabbi Goldstein helped to orchestrate this scheme with at least six taxpayer-employees and two other associates who helped recruit new donors or conceal the true recipient of the funds. In total, Rabbi Goldstein defrauded the companies out of at least $144,000, and helped the taxpayer-employees to claim nearly as much in fictitious tax-deductible charitable contributions to the IRS.
Rabbi Goldstein admitted that he also helped his brother Mendel Goldstein conceal approximately $700,000 in income by allowing him to use Chabad bank accounts to deposit his income, thereby hiding it from the IRS. As his cut, Rabbi Goldstein kept 10 percent of this individual’s income—more than $70,000.
Separate and apart from the tax evasion scheme, Rabbi Goldstein and another defendant, Alexander Avergoon, used false information and fabricated invoices and other records to pretend to be eligible for emergency funds, grants or donations, and private loans. These frauds on the Federal Emergency Management Agency (FEMA), the California Governor’s Office of Emergency Services (Cal OES), and private foundations resulted in losses to these programs of at least $860,000.
According to sentencing documents, the United States Attorney’s Office recommended departures from the sentencing guidelines for Goldstein because of his cooperation against other individuals, and because of the extraordinary events he suffered as a victim of the April 27, 2019 shooting at the Chabad of Poway.
In imposing sentence, U.S. District Judge Cynthia A. Bashant commented, “You dragged down so many congregants. Many of those individuals thought that they were committing these offenses to benefit the Chabad or the synagogue in general, when in fact it was to benefit you. I just can’t ignore that. … I think time in custody is important. It’s important to send a message to the community, and it’s important to send a message to you.”
“Yisroel Goldstein exploited his position and stature as a faith leader to commit well-planned and carefully executed crimes of greed,” said U.S. Attorney Randy Grossman. “As his serious criminal conduct was under investigation, the rabbi became a victim in a devastating attack on the synagogue he led. Today’s sentence accounts for these extraordinary circumstances and our office’s mission to always seek justice.” Grossman thanked the prosecution team, the FBI and the IRS for their excellent work on this case.
“The defendant used the Chabad of Poway’s tax-exempt status as a religious organization to compile millions of dollars in fraudulent ‘donations’,” said FBI Special Agent in Charge Suzanne Turner. “This scheme enabled Rabbi Goldstein to line his own pockets; reward his fake ‘donors’ with reimbursement for their contributions; and provided receipts enabling the ‘donations’ to be written off as charitable contributions, all in furtherance of the scheme. The FBI will continue to root out fraud disguised as charitable donations which ultimately hurts those organizations relying on the generosity of donors.”
“Rabbi Goldstein veiled over $2.8 million in fraud schemes he perpetrated with at least ten other co-conspirators by exploiting the non-profit statuses of the Chabad of Poway and the Friendship Circle of San Diego, organizations entrusted to him to serve the community,” said Special Agent in Charge Ryan L. Korner of IRS Criminal Investigation's Los Angeles Field Office. “IRS Special Agents were proud to work alongside the FBI and the U.S. Attorney's Office in this multimillion-dollar tax and grant fraud investigation that uncovered decades of illegal conduct. In addition to holding Rabbi Goldstein accountable for cheating U.S. taxpayers and businesses for personal gain, my fervent hope is that today's sentencing brings closure and healing to all who were affected by his crimes.”
Rabbi Goldstein was ordered to surrender into federal custody by noon on February 23, 2022.
DEFENDANT Case Number 20CR1916-BAS
Yisroel Goldstein Age: 60 Poway
SUMMARY OF CHARGES
Conspiracy to Defraud the United States and Commit Wire Fraud, in violation of Title 18, USC 371
Maximum Penalty: Five years in prisonINVESTIGATING AGENCIES:
Federal Bureau of Investigation
Internal Revenue Service – Criminal Investigation
Ohio home healthcare provider agrees to pay $500,000 as part of False Claims Act settlementRead the Press Release
COLUMBUS, Ohio – A local home healthcare provider has agreed to pay half a million dollars to the government and close its operations as part of a False Claims Act settlement.
According to court documents, Academy Health Care Services is a home healthcare agency based in Dayton providing service to patients in Ohio, many of whom are disabled and living in group homes.
Academy’s owners include Jagdish, Nita and Vijay Patel, all of Ohio.
The settlement unsealed today details that the healthcare provider’s billing practices routinely caused Ohio Medicaid to pay at a higher level of reimbursement than warranted by the services provided as well as the setting in which the services were provided.
From 2014 until 2017, Academy billed for individual healthcare services when any services it actually provided were in group settings. Further, Academy nurses did not spend the time required with patients to receive reimbursement for individual services.
The healthcare provider will pay $500,000 in total, of which $250,000 is restitution.
As part of the settlement, Academy agrees to cease operations no later than June 30, 2022, and agrees that after Dec. 31, 2021, it will no longer provide services to beneficiaries of federal healthcare programs, including the Ohio Medicaid program, and will not submit claims for any services provided to beneficiaries of federal healthcare programs.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, announced the settlement and commended the work of the U.S. Department of Health and Human Services Office of Inspector General, Ohio Attorney General Dave Yost’s Medicaid Fraud Control Unit and Ohio Department of Medicaid. Deputy Civil Chief Andrew M. Malek and Assistant United States Attorney Stephanie Rawlings are representing the United States in this case.
# # #
North County Property Owner Pleads Guilty to “Crack House” Indictment; Feds Force Sale and Forfeiture of Multi-Acre CompoundRead the Press Release
Assistant U.S. Attorneys Kevin Mokhtari (619) 546-8402 and David J. Rawls (619) 546-7966
NEWS RELEASE SUMMARY – January 4, 2021
SAN DIEGO – Sean T. Sheeter, the owner of a large residential compound located at 725 Poinsettia, Vista, California, pleaded guilty in federal court today, admitting that he maintained the property as a drug-involved premises. Sheeter was charged just before the pandemic, in March 2020, with a violation of the federal “Crack House” statute.
As part of the plea agreement, Sheeter admitted that he knowingly and intentionally rented, leased, profited from and made the property available for use to certain residents and guests. Sheeter admitted that he knew or reasonably should have known that many of the residents and guests used the property for the purpose of unlawfully storing, distributing and using federally controlled substances, including heroin and methamphetamine.
Sheeter also admitted that in many instances, his residents’ and guests’ primary reasons for renting, residing at, and/or visiting the property were so they could store, distribute and/or use controlled substances without interference. Sheeter admitted that this activity “was pervasive” on the property.
As part of his plea agreement and related documents, Sheeter’s property will be sold, and proceeds from that sale will be forfeited to the federal government. Sheeter is scheduled to be sentenced on April 1, 2022 at 9 a.m. before U.S. District Judge Janis L. Sammartino.
The federal indictment against Sheeter was the result of a multi-year investigation led by the North County Regional Gang Task Force, which is spearheaded by the FBI and the San Diego Sheriff’s Department. The investigation involved months of federal wiretaps, multiple undercover drug buys, and surveillance that led investigators to learn about the criminal activity on the property.
A search warrant unsealed with the indictment revealed that between January 1, 2017 and February 25, 2020, law enforcement activity at the property was extensive, including dozens of separate calls for service, arrests, citations, and seizures of controlled substance directly tied to the property. Today’s guilty plea is the first step in restoring normalcy to the Vista neighborhood that has been plagued by criminal activity emanating from the property.
“This property is no longer a drug-laden refuge for violent felons, gang members, drug dealers and drug users,” said U.S. Attorney Randy Grossman. “We will continue to use every tool we have to bring safety to our community.” Grossman thanked the prosecution team and all the law enforcement agencies for their hard work on this case.
“Today's guilty plea should send a message to others that are operating drug houses around the county,” said FBI Special Agent in Charge Suzanne Turner. “The FBI and our law enforcement partners will continue to bring investigative resources together, through a variety of different task forces, to root out criminal enterprises committed to furthering illegal activity.”
“The hard work conducted by the men and women of San Diego's North County Regional Gang Task Force in investigating this case and the partnerships used to abate this extensive narcotics problem is a huge step toward improving the quality of life in the surrounding community,” said Sheriff Bill Gore. “The multitude of criminal activity stemming from this residence not only impacted the area immediately surrounding it, but local schools and the neighboring cities of Vista and San Marcos. We are confident this abatement will bring about an improved quality of life for all impacted by this decision.”
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
DEFENDANT Case Number 21cr0656-JLS
Sean Terrence Sheeter Age: 73 Vista, CA
SUMMARY OF CHARGES
Maintaining a Drug-Involved Premises – Title 21, U.S.C., Section 856(a)(2)
Criminal Forfeiture – Title 21, U.S.C., Section 853Maximum Penalty: Twenty years in prison and $500,000 fine
AGENCIES
Federal Bureau of Investigation
San Diego Sheriff’s Department
United States Marshals Service
Bureau of Alcohol, Tobacco, Firearms and Explosives
Homeland Security Investigations
Drug Enforcement Administration
Carlsbad Police Department
Oceanside Police Department
Escondido Police Department
California Department of Corrections and Rehabilitation
California Highway Patrol
Department of Justice, Organized Crime and Drug Enforcement Task Force (OCDETF)
Department of Justice, Office of Enforcement Operations
North Carolina Man Pleads Guilty to Promoting Nationwide Tax Fraud SchemeRead the Press Release
A North Carolina man pleaded guilty yesterday to conspiring to defraud the United States by promoting a nationwide tax fraud scheme and assisting in the preparation and filing of false tax returns for the scheme’s participants.
According to court documents, Mehef Bey, also known as Arthur Daniels, of Charlotte, promoted a scheme that involved recruiting clients and preparing false tax returns on their behalf by convincing them that their mortgages and other debts entitled them to tax refunds. Between 2014 and 2016, Bey and his co-conspirators held seminars across the country to publicize the scheme. As part of the scheme, Bey and his co-conspirators helped prepare and file tax returns for the participants, which collectively sought more than $64 million in refunds from the IRS. These tax returns falsely claimed that banks and other financial institutions had withheld large amounts of income tax from the participants, thereby entitling the clients to a refund. In reality, the financial institutions had not paid any income to or withheld any taxes from these individuals. To make the refund claims appear legitimate, however, Bey and his co-conspirators filed tax documents with the IRS that matched the withholding information listed on the tax returns, making it seem as if they had been issued by the banks.
As part of his plea, Bey admitted he and his co-conspirators charged their clients approximately $10,000 to $15,000 in preparation fees for each tax return. Although Bey personally received more than $1 million for his role in the scheme, he did not file tax returns for the years 2015 and 2016 to report this income. For 2014, Bey filed a false income tax return on which he claimed a tax refund that he was not entitled to receive. On this return, he also did not report his income from promoting the scheme.
Bey also admitted he and his co-conspirators concealed their roles in the scheme by, among other things, indicating the false tax returns had been “self-prepared” and coaching the participants how to conceal the scheme from the IRS.
Bey’s sentencing will be scheduled for a later date. He faces a maximum penalty of five years in prison for conspiring to defraud the United States and three years in prison for each of the two counts of aiding and assisting in the preparation and filing of a false tax return. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Three of Bey’s co-conspirators – Iran Backstrom, Aaron Aqueron and Yomarie Febres – pleaded guilty last month for their roles in the same scheme.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Melissa S. Siskind, Kavitha Bondada, and Isaiah Boyd III of the Justice Department’s Tax Division and Assistant U.S. Attorney Chauncey A. Bratt of the U.S. Attorney’s Office for the Middle District of Florida are prosecuting the case.
North Carolina Man Pleads Guilty to Promoting Nationwide Tax Fraud SchemeRead the Press Release
Orlando, FL – A North Carolina man pleaded guilty yesterday to conspiring to defraud the United States by promoting a nationwide tax fraud scheme and assisting in the preparation and filing of false tax returns for the scheme’s participants.
According to court documents, Mehef Bey, also known as Arthur Daniels, of Charlotte, promoted a scheme that involved recruiting clients and preparing false tax returns on their behalf by convincing them that their mortgages and other debts entitled them to tax refunds. Between 2014 and 2016, Bey and his co-conspirators held seminars across the country to publicize the scheme. As part of the scheme, Bey and his co-conspirators helped prepare and file tax returns for the participants, which collectively sought more than $64 million in refunds from the IRS. These tax returns falsely claimed that banks and other financial institutions had withheld large amounts of income tax from the participants, thereby entitling the clients to a refund. In reality, the financial institutions had not paid any income to or withheld any taxes from these individuals. To make the refund claims appear legitimate, however, Bey and his co-conspirators filed tax documents with the IRS that matched the withholding information listed on the tax returns, making it seem as if they had been issued by the banks.
As part of his plea, Bey admitted he and his co-conspirators charged their clients approximately $10,000 to $15,000 in preparation fees for each tax return. Although Bey personally received more than $1 million for his role in the scheme, he did not file tax returns for the years 2015 and 2016 to report this income. For 2014, Bey filed a false income tax return on which he claimed a tax refund that he was not entitled to receive. On this return, he also did not report his income from promoting the scheme.
Bey also admitted he and his co-conspirators concealed their roles in the scheme by, among other things, indicating the false tax returns had been “self-prepared” and coaching the participants how to conceal the scheme from the IRS.
Bey’s sentencing will be scheduled for a later date. He faces a maximum penalty of five years in prison for conspiring to defraud the United States and three years in prison for each of the two counts of aiding and assisting in the preparation and filing of a false tax return. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Three of Bey’s co-conspirators – Iran Backstrom, Aaron Aqueron and Yomarie Febres – pleaded guilty last month for their roles in the same scheme.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Melissa S. Siskind, Kavitha Bondada, and Isaiah Boyd III of the Justice Department’s Tax Division and Assistant U.S. Attorney Chauncey A. Bratt of the U.S. Attorney’s Office for the Middle District of Florida are prosecuting the case.
New Orleans Woman Pleads Guilty to Misprision of a Felony and Violating the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced today that JOSELYN BARRA, 54, from St. Tammany Parish, pled guilty on December 16, 2021 to counts two and three of the superseding indictment for misprision of a felony and for being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 4, 922(g)(1), and 924(a)(2), respectively. BARRA was indicted by a Federal Grand Jury on July 1, 2021.
According to court documents, in May 2019, while investigating a shooting in the Seventh Ward of New Orleans, detectives located four firearms and a bullet-proof vest in BARRA’s home. Before May 2019, both BARRA and her son, Matthew Barra, were convicted of various felonies, which precluded them from possessing firearms. BARRA lied to police and attempted to subvert the investigation, for which she was charged with misprision of a felony.
At sentencing, for count two, misprision of a felony, BARRA faces up to a maximum term of imprisonment of three (3) years, a maximum fine of up to $250,000, up to one (1) year of supervised release following any term of imprisonment, and a $100 mandatory special assessment fee, pursuant to Title 18, United States Code, Section 4. For count three, felon in possession of a firearm, she faces up to a maximum term of imprisonment of ten (10) years, a maximum fine of up to $250,000, up to three (3) years of supervised release following any term of imprisonment, and a $100 mandatory special assessment fee, pursuant to Title 18, United States Code, Section 924(a)(2).
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safe for everyone. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. It was prosecuted by Assistant United States Attorney Melissa Bücher of the U.S. Attorney’s Office.
Massachusetts Man Sentenced to 60 Months for Drug TraffickingRead the Press Release
CONCORD - Gianno Koeiman, 31, of Lawrence, Massachusetts was sentenced to 60 months in federal prison for possession of fentanyl and cocaine with intent to distribute, United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on February 22, 2017, an undercover Salem police officer observed what he believed to be a drug transaction in the shoe department of a local store between Koeiman and a drug customer. The officer observed the men leave the store and get into separate vehicles. The drug customer stayed in his car and began to inject himself with drugs. After being approached by an officer, the customer confirmed he had just purchased one gram of heroin from the man in the shoe department.
In the meantime, a second Salem police officer followed Koeiman’s vehicle and stopped it. After explaining what the first officer observed in the shoe department, Koeiman responded that those observations were accurate. When asked if he had illegal substances in the car, Koeiman responded that he did and consented to a search of the trunk. The search revealed 95 baggies which contained a total of approximately 67 grams of fentanyl and 23 baggies which contained a total of approximately 16 grams of cocaine.
Koeiman previously pleaded guilty on August 30, 2021. In addition to his sentence, Koeiman was ordered to pay a $1,000 fine.
“Drug traffickers who come to New Hampshire to sell fentanyl and other dangerous substances should understand that their unlawful conduct will not be tolerated,” said U.S. Attorney Farley. “By brazenly selling drugs inside a store, this defendant endangered members of the public. We will continue to work closely with our law enforcement partners to identify and prosecute the drug dealers whose illegal conduct jeopardizes public safety in the Granite State.”
This matter was investigated by the Drug Enforcement Administration and Salem Police Department. The case was prosecuted by Assistant U.S. Attorney John S. Davis.
###
Massachusetts Man Pleads Guilty to Possessing Stolen TrailersRead the Press Release
CONCORD - Robert Gramolini, 63, of Malden, Massachusetts, pleaded guilty in federal court to possession or storage of stolen goods, United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on May 16, 2020, Gramolini was seen on video stealing a black enclosed trailer from a business in Hampton, New Hampshire. Law enforcement located the stolen trailer at a storage lot in Brentwood on September 11, 2020. The owner of the storage lot confirmed Gramolini rented space on his lot to store trailers and other items and gave the officers permission to inspect the lot. In Gramolini’s space on the lot officers found, among other things, the trailer stolen from Hampton as well as three other trailers stolen from Massachusetts.
In a statement to law enforcement, Gramolini gave varying stories about how he acquired the trailers but admitted to stealing the Hampton trailer. He also said that he took one of the other trailers “off the side of the road.”
Gramolini is scheduled to be sentenced on April 26, 2022.
“I am grateful to the law enforcement officers whose hard work put an end to this defendant’s criminal activities and held him accountable for his unlawful conduct,” said U.S. Attorney Farley. “We work each day with our law enforcement partners to protect residents of the Granite State from crime and to seek justice for crime victims.”
This matter was investigated by the Federal Bureau of Investigation, the Hampton Police Department, and the Brentwood Police Department. The case is being prosecuted by Assistant U.S. Attorney Matthew T. Hunter.
###
Maryland United States Attorney’s Office Announces Supervisory AppointmentsRead the Press Release
Erek L. Barron, the United States Attorney for the District of Maryland, announced today several new senior supervisory appointments. The following personnel changes were made following an office-wide internal review and a competitive interview and assessment process:
- Thomas Corcoran and Tarra Deshields were appointed as Chief and Deputy Chief, respectively, of the Civil Division;
- Kristi O’Malley was appointed as a Deputy Chief of the Criminal Division;
- Kelly Hayes and Jessica Collins were appointed as Chief and Principal Deputy Chief, respectively, of the Southern Division;
- Brandon Moore and Elizabeth Wright were appointed as Deputy Appellate Chiefs of the Appellate Division;
- Kathleen Gavin and Aaron Zelinsky were appointed as Chief and Deputy Chief, respectively, of the National Security and Cyber Crime Section; and
- Frank Burch was appointed as a Supervisor in the Victim-Witness Assistance Unit.
“I am proud to report that in our first 100 days we're now more diverse in our senior management team than at any time in the history of our Office. This diverse set of professionals adds greater depth of experience and perspective to our decision-making and makes our Office stronger, and more fully representative of the people of the District of Maryland,” said United States Attorney Erek L. Barron.
These individuals join a management team that includes: First Assistant United States Attorney, Phil Selden; Executive Assistant United States Attorney, Ayn Ducao; and Senior Counsel to the United States Attorney, Stephen Schenning. Former Acting U.S. Attorney and First Assistant Jonathan Lenzner has been serving as senior advisor to the DEA Administrator Anne Milgram, but will start a detail next week as Chief of Staff to FBI Director Christopher Wray. “With these leadership appointments, the public can be assured that the Office will maintain its traditions and the highest standards of professionalism well into the future while also working to reflect Marylanders and the communities were are sworn to protect and represent,” added United States Attorney Barron. A brief professional biography of each of these appointees is attached to this release.
In addition to these supervisory appointments, United States Attorney Barron announced that the Office has created a Hiring Committee, led by Senior Counsel Steve Schenning and Assistant United States Attorney Christine Goo, to assist the Office in recruiting and hiring the best qualified candidates to serve as Assistant United States Attorneys (AUSAs) in the District of Maryland. Under Steve and Christine’s leadership, the Hiring Committee, will seek to expand both the candidate pool and ultimately broaden the diversity of perspectives and abilities within the Office.
# # #
Thomas Corcoran
Chief, Civil DivisionTom Corcoran is the Chief of the Civil Division for the District of Maryland, overseeing attorneys in Baltimore and Greenbelt, who defend federal agencies when sued in court, prosecute civil enforcement activities in fraud matters and collect debts owed to the United States.
During his tenure with the Office, Tom previously served as Deputy Civil Chief, Affirmative Civil Enforcement Coordinator and Civil Healthcare Fraud Coordinator. During his tenure in the Civil Division, Tom has focused his practice on affirmative civil investigations of corporations, individuals, physicians, universities, and hospitals under the False Claims Act as well as civil investigations of pharmacies, distributors, and providers under Controlled Substances Act.
Prior to joining the Office, Tom practiced at two Baltimore law firms, Shapiro and Olander and Baxter, Baker, Sidle and Conn. Tom started his legal career in Columbia, South Carolina at the law firm of Nelson, Mullins, Riley and Scarborough. Tom received his undergraduate degree, with high honors, from Cornell University, where he was also a member of the Cornell Men’s Lacrosse Team. He received his Juris Doctor from Tulane University School of Law, cum laude, where he was the Notes and Comments Editor on the Tulane Journal of International and Comparative Law.
Tarra Deshields
Deputy Chief, Civil DivisionTarra Deshields is the Deputy Chief of the Civil Division for the District of Maryland. Her portfolio includes both defensive cases and False Claims Act litigation and she serves as the Office’s Affirmative Civil Enforcement and Health Care Fraud Coordinator.
During her tenure with the Office, Tarra has handled 14 trials. She has handled a variety of Criminal Division and Civil Division cases including, but not limited to, Export Act violations, racketeering offenses, mortgage, bank and tax fraud, immigration offenses, bank robbery and firearms offenses, as well as medical malpractice and employment discrimination actions. Tarra has also negotiated numerous False Claims Act settlements.
Before joining the Office, Tarra began her legal career as an Assistant State’s Attorney in the Montgomery County, Maryland State’s Attorney’s Office and as an Assistant Attorney General at the Maryland Attorney General’s Office, where she wrote numerous appellate briefs, and twice authored amicus briefs, both criminal and civil, in the United States Supreme Court. Tarra has also argued 10 times before the Maryland Court of Appeals. Tarra clerked for the Honorable Charles E. Moylan Jr. for the Maryland Court of Special Appeals. She received her Bachelor of Arts degree from the University of Maryland, Baltimore County and her law degree from the University of Baltimore School of Law.
Kristi O’Malley
Deputy Chief, Criminal DivisionKristi O’Malley serves as the Deputy Chief of the Criminal Division for the United States Attorney’s Office for the District of Maryland.
During her tenure with the Office, Kristi has previously served as the Principal Deputy Chief and Chief of the Greenbelt office and Deputy Criminal Division Chief as well as the Office’s Project Safe Childhood and Human Trafficking Coordinators, Intern Coordinator and Civil Rights Coordinator. As an Assistant United States Attorney, Kristi has handled 15 jury trials. She has prosecuted a variety of cases including, but not limited to, the production of child pornography, human trafficking, bank robbery, sanctions violations, mortgage and foreclosure rescue fraud, identity theft, narcotics and firearms related cases and civil rights crimes.
Prior to joining the Office, Kristi clerked for the Honorable Emmet G. Sullivan in the United States District Court for the District of Columbia and was an associate with a national law firm where she focused on white collar criminal defense. Kristi received her undergraduate degree from Claremont McKenna College, summa cum laude and Phi Beta Kappa, and her Juris Doctor from the University of Virginia where she was a member of the Order of Coif and was a Notes Development and Executive Editor for the Virginia Journal of International Law. Kristi has also taught at the Georgetown University Law Center.
Kelly Hayes
Chief, Southern DivisionKelly Hayes is the Chief of the Southern Division of the United States Attorney’s Office for the District of Maryland.
During her tenure with the Office, Kelly has served as the Office’s Identity Theft Coordinator, Health Care Fraud Coordinator, Deputy Appellate Chief, and Deputy Chief and Principal Deputy Chief for the Southern Division. She has prosecuted a variety of cases including, but not limited to, carjacking, Hobbs Act robbery, production of child pornography, wire, bank and health care fraud, as well as fatal overdoses.
Prior to joining the Office, Kelly clerked for the Honorable Janis L. Sammartino in the Southern District of California and was an associate at Ropes & Gray in Washington, D.C. Kelly received her undergraduate degree from the University of Maryland at College Park, summa cum laude, and her Juris Doctor from the University of North Carolina at Chapel Hill, where she earned Highest Honors, was a Chancellors’ Scholar, and served as the Comments Editor for the New Carolina Law Review.
Jessica Collins
Deputy Chief, Southern DivisionJessica Collins is the Deputy Chief of the Southern Division of the U.S. Attorney’s Office for the District of Maryland.
During her tenure with the Office, Jessica has served as the Office’s Health Care Fraud Coordinator and has prosecuted a variety of cases, including but not limited to, wire, mail, health care and tax fraud, aggravated identity theft, narcotics offenses involving opioids and drug trafficking and firearms offenses.
Prior to joining the Office, Jessica clerked for the Honorable J. Frederick Motz and the Honorable Catherine C. Blake in the United States District Court for the District of Maryland and for the Honorable Henry F. Floyd on the United States Court of Appeals for the Fourth Circuit. She also was an associate at a national law firm and served as a trial attorney at the Department of Justice’s Criminal Division’s Fraud Section, where she prosecuted health care fraud cases throughout the United States. Jessica received her undergraduate degree from Tulane University, cum laude and Phi Beta Kappa, and her Juris Doctor from New York University School of Law, magna cum laude, where she was also a Florence Allen Scholar, a member of the Order of Coif, and was a Notes Editor for the New York University Law Review.
Kathleen Gavin
Chief, National Security and Cyber Crimes SectionKathleen Gavin is the Chief of the National Security and Cyber Crimes Section for the United States Attorney’s Office for the District of Maryland. Kathleen investigation and prosecuting cases involving terrorism, counterespionage, export violations and cybercrimes. Kathleen also serves as the Anti-Terrorism Advisory Council (ATAC) Coordinator. The ATAC was formed to prevent terrorist attacks; to ensure effective information sharing between law enforcement, public agencies, and private entities to help combat terrorism; and to ensure adequate management plans are in place in the event of a terrorist attack.
In her role as the Chief of the National Security and Cyber Crimes Section, Kathleen draws on her more than 30 years of experience in the Office. During her tenure with the Office, she has served as the Deputy Chief and Chief of the Fraud and Corruption Section. Kathleen has also prosecuted a variety of fraud and political corruption cases, as well as a variety of national security matters, including but not limited to, RICO conspiracy, extortion, bribery, mail and wire fraud, tax violations, obstruction of justice and Arms Export Act violations. Kathleen was awarded the United States Department of Justice’s National Director’s Award for Superior Performance, the United States Attorney’s Office’s Barney Skolnik Award, three times, for Excellence in the Prosecution of Fraud and a Special Achievement Award. Her convictions have been affirmed by the United States Court of Appeals for the Fourth Circuit and the United States Supreme Court.
Prior to joining the Office, Kathleen was an associate at Venable, LLP where she practiced commercial and employment litigation. Kathleen received her undergraduate degree, with Distinction, from the University of Virginia, where she was also four-year member of the Virginia Women’s Lacrosse Team and was recognized with the Most Valuable Player Award. She received her Juris Doctor, with Honors, from University of Maryland Law School.
Aaron Zelinsky
Deputy Chief, National Security and Cyber Crimes SectionAaron is the Deputy Chief of the National Security and Cyber Crimes Section of the United States Attorney’s Office for the District of Maryland.
During his tenure with the Office, has served in the Office Major Crimes section and Fraud and Public Corruption Section, where he has served as a Computer Hacking and Intellectual Property coordinator (CHIP), Covid Fraud Co-Coordinator, and Procurement Collusion Strike Force Coordinator.
Prior to joining the Office, Aaron worked at the United States State Department, where he served as Special Assistant to State Department Legal Adviser Harold Koh. Aaron clerked for Justices John Paul Stevens (Ret.), Anthony Kennedy on the United States Supreme Court, the Honorable Thomas B. Griffith on the United States Court of Appeals for the District of Columbia Circuit and for Chief Justice Dorit Beinsich of the Israeli Supreme Court. Aaron received his undergraduate degree from Yale College and his Juris Doctor from Yale Law School, where he was an Articles Editor of the Yale Law Journal. Aaron has also worked as an Assistant Special Counsel to Robert S. Mueller, III. He has taught at the University of Maryland Law School and Peking University.
Brandon Moore
Deputy Chief, Appellate DivisionBrandon is the Deputy Chief of the Appellate Division of the U.S. Attorney’s Office for the District of Maryland.
During his tenure with the Office, Brandon has served in the Violent Crime and Gangs Unit and as a member of the Office’s Sentencing Issues Review Board. Brandon has prosecuted a variety of cases, including but not limited to, homicide, carjacking, Hobbs Act robbery, and RICO conspiracy as well as multiple appellate matters before the United States Court of Appeals for the Fourth Circuit.
Prior to joining the Office, Brandon clerked for the Honorable George L. Russell, III, and the Honorable Theodore D. Chuang in the United States District Court for the District of Maryland, as well as for the Honorable Andre M. Davis on the United States Court of Appeals for the Fourth Circuit. After his clerkships, he worked as a litigation associate at Gallagher, Evelius & Jones, LLP. Brandon received his undergraduate degree from Towson University, cum laude and his Juris Doctor from the University of Maryland Law School, cum laude, where he was managing editor of the Maryland Law Review.
Elizabeth Wright
Deputy Chief, Appellate DivisionElizabeth Wright is the Deputy Chief of the Appellate Division of the U.S. Attorney’s Office for the District of Maryland.
During her tenure with the Office, Elizabeth has served as one of the Office’s Opioid Coordinators and a Professional Responsibility Officer as well as being a part of the Sentencing Issue Review Board. As a federal prosecutor, Elizabeth has handled nine jury trials. She has prosecuted a variety of cases including, but not limited to, credit card fraud and aggravated identity theft, Social Security fraud, contraband cigarette trafficking, drug distribution, firearms related crimes, money laundering and Hobbs Act robbery. Elizabeth has also argued five times before the United States Court of Appeals for the Fourth Circuit.
Prior to joining the Office, Elizabeth clerked for the Honorable Gary A. Feess in the United States District Court for the Central District of California and for the Honorable A. Wallace Tashima on the United States Court of Appeals for the Ninth Circuit. She also was an associate at a national law firm where she focused on Foreign Corrupt Practices Act investigations as well as environmental and appellate litigation. Elizabeth also previously worked as an Assistant United States Attorney for the United States Attorney’s Office for the Western District of Virginia. She also previously served as the national coordinator for human trafficking matters for the Department of Justice’s Money Laundering and Asset Recovery Section. Elizabeth received her undergraduate degree from Yale University, cum laude and with distinction and her Juris Doctor from Yale Law School where she was a member of the Yale Law & Policy Review. Elizabeth has previously taught at the Department of Justice’s National Advocacy Center.
Frank Burch
Supervisor Victim SpecialistFrank Burch is the Supervisor Victim Specialist for the U.S. Attorney’s Office for the District of Maryland.
Frank manages the Victim Specialists working in the Baltimore and Greenbelt offices.
During his tenure with the Office, has served as a Victim Specialist in Baltimore. Frank previously served as a Law Enforcement Coordination & Victim-Witness Specialist where he assisted the Law Enforcement Coordinator in developing, implementing and coordinating several programmatic activities with a focus on combating Human Trafficking.
Prior to joining the Office, Frank earned a Bachelor of Arts in Government and Public Policy from the University of Baltimore and a Master’s Degree in Negotiations and Conflict Management from the University of Baltimore, cum laude.
Marshall County man admits to drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Jacob Lee McKinley, of Moundsville, West Virginia, has admitted to a drug charge, United States Attorney William J. Ihlenfeld, II announced.
McKinley, 30, pleaded guilty today to one count of “Distribution of Methamphetamine within 1,000 feet of a Protected Location.” McKinley admitted to selling methamphetamine near Golden Towers in Marshall County in March 2021.
McKinley faces at least one year and up to 40 years of incarceration and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Clayton J. Reid is prosecuting the case on behalf of the government. The Marshall County Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Local man pleads guilty for possession with intent to distribute methamphetamineRead the Press Release
ST. LOUIS – United States District Court Judge John A. Ross accepted a plea of guilty from Adam Jones today. A grand jury in the Eastern District of Missouri previously indicted Jones in February 2021. Sentencing is scheduled for April 12, 2022.
According to the plea agreement, on or about July 15, 2020, within the Eastern District of Missouri, Jones knowingly and intentionally possessed more than five (5) grams of actual methamphetamine and that at the time Jones possessed the actual methamphetamine, he intended to distribute some or all of the actual methamphetamine to another person.
Beginning in May 2020, members of the St. Charles County Regional Drug Task Force ("SCCRDTF") and the Drug Enforcement Administration ("DEA") conducted a total of five undercover purchases of methamphetamine from Jones. SCCRDTF successfully introduced an undercover detective to Jones, who made the purchases of methamphetamine from Jones over an approximately 2-month period between May and July of 2020. In addition, on July 15, 2020, Jones’ car was stopped by law enforcement and Jones was in possession of approximately one ounce of actual methamphetamine.
This case was investigated by the St. Charles County Regional Drug Task Force and the Drug Enforcement Administration.
Leeds Man Sentenced to 10 Years in Prison for Two RobberiesRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a Leeds man in connection with two robberies, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr.
U.S. District Judge Abdul K. Kallon sentenced Adam James Mordecai, 38, to 120 months in prison. Mordecai pleaded guilty to one count of Hobbs Act Robbery and one count of Bank Robbery in August 2021.
According to the plea agreement, Mordecai committed robberies at two different locations in Birmingham taking prescription drugs and cash. The robberies occurred in June and October 2020.
On June 2, 2020, Mordecai entered the CVS Pharmacy located on Gadsden Highway in Birmingham and walked around the store for approximately 30 minutes before approaching the pharmacist. Mordecai lifted his shirt to show the pharmacist a firearm in his waistband and demanded “Alprazolam” (Xanax). The pharmacist told Mordecai that the Xanax was in a time delayed safe. Mordecai did not believe her, so he opened the pharmacy counter door and went behind the counter where the pharmacy kept filled prescriptions. Mordecai filled a plastic tote with more than $20,000 worth of filled prescriptions and left the pharmacy.
On October 26, 2020, Birmingham Police officers responded to a robbery at the Alatrust Credit Union located on Montclair Road in Birmingham. Mordecai approached the teller and asked for a deposit slip. The teller handed Mordecai the deposit slip, and he wrote on the back, “Large bills only hurry make no scene,” and returned the slip to the teller. The teller gave Mordecai $3,800. Mortdecai left the bank in a white Dodge Journey. Shortly thereafter, Irondale police officers found a disabled white Dodge Journey near some apartments. The officers learned that Mordecai was inside his apartment and set up a perimeter until he exited his apartment voluntarily.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
FBI investigated the case along with the Birmingham Police Department and Irondale Police Department. Assistant U.S. Attorney Brittney Plyler prosecuted the case.
Lansing Man Sentenced to 46 Months in PrisonRead the Press Release
HAMMOND- Julio Cesar Galvan, 29, of Lansing, Illinois was sentenced by United States District Court Judge James Moody after pleading guilty to being a felon in possession of ammunition, announced United States Attorney Clifford D. Johnson.
Galvan was sentenced to 46 months in prison followed by 2 years of supervised release
According to documents in the case, on March 19, 2021, Hammond Police Officers were conducting a sobriety checkpoint when they encountered Galvan. A search of his vehicle resulted in the recovery and seizure of a fully loaded black and gray handgun. The gun was a “ghost gun” that lacked a serial number or other identifiers. Because Galvan was a convicted felon at the time of the stop, he could not legally possess a firearm or ammunition.
This was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Hammond Police Department. This case was prosecuted by Assistant U.S. Attorney Caitlin M. Padula.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Justice Department Secures Agreement with Hospital to Ensure Effective Communication with Deaf Patients and CompanionsRead the Press Release
Today the Justice Department reached an agreement under the Americans with Disabilities Act (ADA) with Adventist Health System Georgia Inc., d.b.a. AdventHealth-Gordon (Advent), a hospital in Calhoun, Georgia.
The settlement resolves a complaint by a deaf patient who alleged that despite her requests for an American Sign Language (ASL) interpreter for her labor and delivery, Advent failed to provide an interpreter or any other communication aid or service. Instead, the patient alleged that she was forced to rely on lip reading and on her deaf companion, who tried to advocate for her even though she too had difficulty trying to understand and communicate with hospital staff. Because of Advent’s failure to provide an interpreter or other means of effective communication, the patient and companion were not able to get important information about a complication during the delivery, which created fear and confusion for both. Advent cooperated fully with the department’s investigation of this matter, which substantiated the allegations in the complaint.
“No patient should be denied the ability to communicate effectively with their nurse or doctor, especially when giving birth to a child,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “This settlement reflects the Justice Department’s commitment to ensuring that people who are deaf and hard of hearing are not excluded from participating in their own health care due to a lack of communication aids or services.”
Under the terms of the agreement, Advent will advise patients and companions of their right to auxiliary aids and services to ensure effective communication, including a live qualified sign language interpreter, whether through video or on-site. The hospital will provide, at all reception areas, prompt communication via text, pen and paper, and the use of a handheld device to connect with a qualified interpreter. Advent will continue to assess communication needs and provide effective communication throughout the hospital visit. The hospital will modify its policies and practices, train its staff on the ADA and the terms of the agreement, and will periodically submit reports about its compliance with the agreement. In addition, Advent will pay $50,000 to the patient and $10,000 to the companion, who were both harmed by Advent’s actions.
This case was handled by the department’s Civil Rights Division. The department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living and economic self-sufficiency for people with disabilities.
For more information on the Civil Rights Division, please visit http://www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. ADA complaints may be filed online at http://www.ada.gov/complaint.
Justice Department Awards More Than 10-Million to Support Criminal Justice Initiatives in the Western District of New YorkRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, NY – U.S. Attorney Trini E. Ross announced today that the Justice Department has awarded grant funding to 17 organizations totaling $10,369,180, to support criminal justice initiatives across the Western District of New York.
“These grants have been awarded to a variety of school districts, police departments, social service agencies, and local governments across the 17 counties of the Western District of New York,” stated U.S. Attorney Ross. “The funding will be used to address deadly gun violence, human trafficking, and provide services to victims of crime. The funding will also allow a number of the grantee organizations to be proactive, focusing on youth suicide prevention, mentoring, and youth engagement.”
Grants have been awarded to address the following areas:
Human Trafficking:
• The International Institute of Buffalo has been awarded three grants totaling $2,015,000 to combat human trafficking through collaboration between law enforcement and service providers, to provide housing assistance grants to victims of human trafficking, and to provide services for youth victims of labor trafficking.
• The Erie County Bar Association Volunteer Lawyers Project, Inc. has been awarded $800,000 to provide legal services to victims of human trafficking.
• Erie County has been awarded $750,000 for efforts to combat human trafficking.Victims Services:
• The Seneca Nation of Indians has been awarded $422,695 to provide culturally appropriate victim services.
Services for Youth:
• Compeer West, Inc. has been awarded $1,200,000 to support expansion of its multi-state mentoring program.
• The Sodus Central School District has been awarded $999,936. Sodus, along with the Lyons and Newark Central School Districts, will serve five high need rural school buildings. The Forming Attachment to Reduce Risk program will improve student safety for over 1,900 students.
• The North Rose-Wolcott Central School District has been awarded $989,902 for the Improving School Safety by Re-Engaging Youth Initiative. The district will partner with the Wayne County Sheriff’s Office to focus on 9th - 12th graders.
• The Seneca Falls School District has been awarded $526,191 to focus, along with the Romulus and South Seneca School Districts, on preventing youth suicide. With a high rate of suicide in Seneca County, the district will focus on training, prevention, and intervention to respond to student mental health in an effort reduce the number of students who contemplate, attempt, and/or commit suicide.
• The Olean City School District has been awarded $424,997 from the COPS School Violence Prevention Program for school safety measures in and around primary and secondary schools.Law Enforcement Initiatives:
• Monroe County has been awarded $436,734 to ease the backlog of items awaiting DNA testing at the Monroe County Crime Laboratory.
• The City of Buffalo has been awarded $257,047 to support criminal justice initiatives.
• The City of Rochester has been awarded $164,896 for violence prevention, crisis intervention services, and victims assistance.
• Erie County has been awarded $45,000 to prosecute cold cases using DNA in Buffalo and Erie County.
• The City of Niagara Falls has been awarded $40,648 to support criminal justice initiatives.
• The Research Foundation for the State University of New York at Geneseo has been awarded $27,399 for police body worn cameras for the SUNY Geneseo Police Department.
• The City of Jamestown has been awarded $18,150 to purchase portable radios for the Jamestown Police Department.Reentry and Recidivism Initiatives:
• Monroe County has been awarded $700,000 for its Swift, Certain, and Fair Program, which focuses on reducing recidivism of firearm offenders.
• Catholic Charities of the Diocese of Rochester has been awarded $218,413 to support the Steuben and Livingston Counties Second Chance Reentry Program.Opiate Initiatives:
• Chautauqua County has been awarded $899,910 to create the Chautauqua Comprehensive Addiction Response and Evaluation System (Chautauqua CARES), a county-wide, multi-sector network of law enforcement, behavioral health, and other community agencies collaborating to increase the accessibility, timeliness, and effectiveness of help for individuals with substance use disorders and their families.
# # # #
Johnstown Man Sentenced to 64 Months in Prison and 3 Years’ Supervised Release for Distributing HeroinRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, PA, has been sentenced in federal court to a total of five years and four months (64 months) in prison and three years’ supervised release on his conviction of distributing heroin and violations of supervised release, United States Attorney Cindy K. Chung announced today.
Senior United States District Judge Kim R. Gibson imposed the sentence on Willie Gene Gulley, Jr., 52, of Johnstown, PA.
According to information presented to the court, on or about March 1, 2018 and March 20, 2018, Gulley distributed less than 100 grams of heroin. As a result of these charges and conviction, Gulley violated terms of supervised release from two prior federal convictions for drug trafficking.
Assistant United States Attorney Maureen Sheehan-Balchon prosecuted this case on behalf of the government.
Ms. Chung commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force for the investigation that led to the successful prosecution of Gulley.
Jason R. Coody Appointed as U.S. Attorney for the Northern District of Florida by Attorney General Merrick GarlandRead the Press Release
Attorney General Merrick Garland tapped Jason R. Coody to the be the United States Attorney for the Northern District of Florida, effective December 26, 2021.
Coody was appointed Acting United States Attorney in March 2021, after the resignation of then U.S. Attorney Larry Keefe. Coody served as Acting U.S. Attorney under the Vacancies Reform Act, prior to the recent Attorney General appointment.
“It is an honor to serve the citizens of the Northern District of Florida and work every day to keep our communities safe,” said United States Attorney Coody. “I am privileged to serve with an incredibly talented team of professionals in the U.S. Attorney’s Office and exceptional local, state, and federal law enforcement partners, who are all dedicated to the mission of justice.” His primary office will be in Tallahassee.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Houston Man Guilty of Making False Statements Leading to Unnecessary Federal InvestigationRead the Press Release
BEAUMONT, Texas – A Houston man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Gary Dwon Gaffney, 36, pleaded guilty to making false statements to federal agents today before U.S. District Judge Marcia Crone.
According to information presented in court, on August 21, 2021, Gaffney was arrested on an unrelated warrant for a theft charge and was booked into the Liberty County Jail. While in custody, Gaffney requested to speak to officers in reference to having knowledge about a plot to bomb the Mickey Leland Federal Building in Houston. Gaffney named two individuals and claimed they had already acquired fertilizer and detonation devices to execute the bombing. As a result of Gaffney’s false statements, an extensive federal investigation was launched. Agents were not able to find any evidence to confirm Gaffney’s claims and he eventually admitted to making the fraudulent statements.
Gaffney was indicted by a federal grand jury on Nov. 3, 2021. He faces up to five years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Rachel Grove.
Harrisburg Drug Dealer Affiliated with Local Rap Group Sentenced to over 11 Years’ ImprisonmentRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Kaleaf Brown, age 26, of Harrisburg, Pennsylvania, was sentenced on January 3, 2022, to 140 months’ imprisonment by U.S. District Court Judge Christopher C. Conner for drug trafficking and weapons offenses.
According to United States Attorney John C. Gurganus, Brown and his codefendants ran a drug trafficking conspiracy from 2018 to the present. Members of the conspiracy were affiliated with a music group named “Never Forget Loyalty” or “NFL.” As a part of their drug trafficking operation, the “NFL” posted videos on YouTube which were filmed in various Harrisburg locales, including the drug involved premises of 1621 Market Street. In the videos, members of the group brandished various weapons, flashed cash, and displayed drugs. In a yearlong investigation, ATF and the local law enforcement conducted a series of searches. During these searches police recovered part of their arsenal, including a machine gun, assault rifles, and various weapons with extended magazines.
Kaleaf Brown was the latest in a series of defendants to be sentenced for drug trafficking and weapons offenses as a result of the investigation. Brown’s codefendants’ court proceedings are summarized as follows:
- Tyquann Langston, age 26, of Harrisburg, was sentenced to 10 years’ imprisonment for his role in the conspiracy to trafficking crack cocaine and other drugs in the City of Harrisburg;
- Donza Brown, age 57, of Harrisburg, was sentenced to 37 months’ imprisonment for selling crack cocaine and maintaining a drug involved premises at 1621 Market Street in Harrisburg;
- Jaionne Miller, age 21, and Adieas Johnson, age 33, both of Harrisburg, pleaded guilty to drug trafficking and weapons offenses. They are awaiting sentencing; and
- Qushawn Brown, age 30, Wesley Garner, age 28, and Anderson Ortiz, age 22, all of Harrisburg, have pleaded not guilty to their role in these offenses. They are scheduled for trial in March 2022.
The case was investigated by Bureau of Alcohol Tobacco, Firearms, and Explosives, the Harrisburg Bureau of Police, and the Pennsylvania State Police. Assistant U.S. Attorney Michael Consiglio is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.”
This case was also made possible by investigative leads generated from the ATF’s National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
# # #