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17 February 2022
Oviedo Man Sentenced to 24 Years in Federal Prison for Receiving and Possessing Photos and Videos Depicting Children Being Sexually Abused and TorturedRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Richard A. Kirkendall (34, Oviedo) to 24 years in federal prison for using the internet to receive and possess images and videos depicting the sexual abuse and torture of children. Kirkendall was also ordered to serve a 10-year term of supervised release and to register as a sex offender. Kirkendall had pleaded guilty on September 23, 2021.
According to court documents, Kirkendall used a particular peer-to-peer file sharing software to download child sexual abuse materials over the internet. In that process, he distributed child-pornographic videos to an undercover FBI agent. The videos distributed by Kirkendall depicted toddler-aged children being sexually abused and sodomized.
On May 10, 2021, federal agents executed a search warrant at Kirkendall’s residence and seized three cellphones belonging to Kirkendall. Forensic analyses of these devices revealed that they contained approximately 321 images and 103 videos depicting the sadistic sexual abuse of children, including material depicting infants and very young children being raped and sodomized.
The analyses also showed email communications dating back to 2012 through which Kirkendall traded child sexual abuse materials with another person over the internet. In the emails, Kirkendall stated, among other things, that he was interested in extremely violent child sexual abuse images and videos and wanted to see “blood.” Kirkendall also explained in detail how the other user could sexually assault a 3-year-old child that the user had access to through the use of deception.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Ilianys Rivera.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Orlando Man Sentenced to 80 Years in Federal Prison for Producing and Distributing Images and Videos Depicting His Sexual Abuse of Three ChildrenRead the Press Release
Orlando, Florida – U.S. District Judge Wendy W. Berger has sentenced David Milton Kissner, Jr. (34, Orlando) to 80 years in federal prison for two counts of using children to produce child sexual abuse materials and one count of distributing this material over the internet. Kissner was also ordered to serve a 15-year term of supervised release and to register as a sex offender. Kissner had pleaded guilty on October 8, 2021.
According to court documents, in May 2021, Kissner created a number of videos depicting three different young children being sexually abused. In several of these videos, Kissner can be seen molesting two of these children, one of which was toddler-aged. Kissner then distributed images and videos depicting this sexual abuse online, including several to an undercover law enforcement agent.
In one of these videos, Kissner can be heard saying, “I love molesting kids.” In another video, Kissner induced a child to remove the child’s clothing by asking if the child wanted a “toy.” During an online chat with an undercover officer, Kissner stated that he was a pedophile who liked both preteens and toddlers and that he was going to try to molest a child at his place of work, an Orlando area water park. Kissner also suggested that he and the undercover agent should meet to trade child victims.
During a subsequent interview with law enforcement agents at his workplace, Kissner admitted that he had committed hands-on sexual abuse of two children, and further that he had been sexually abusing these children since January 2021. A forensic examination of Kissner’s cellphone revealed that he had 16 videos and 4 images depicting child sexual abuse saved on the phone.
“When you consider the abuse and fear this monster forced upon his young victims, 80 years in prison is still not enough. I commend the dedicated special agents who make it their job to remove the individuals from our society who prey on innocent children,” said FBI Tampa Division Special Agent in Charge Michael McPherson.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Chauncey A. Bratt.
Omaha Man Sentenced to 150 Months for Distribution of Child PornographyRead the Press Release
United States Attorney Jan Sharp announced that Cameron J. Stidd, 23, of Omaha, Nebraska, was sentenced on February 16, 2022, by United States District Judge Brian C. Buescher to 150 months’ imprisonment for distribution of child pornography. There is no parole in the federal system. After his release from prison, Stidd will begin a 15-year term of supervised release and will be required to register as a sex offender. Judge Buescher ordered Stidd to pay restitution in the amount of $24,000 and an additional special assessment in the amount of $5,000.
On January 19, 2020, Kik, an online website with servers located outside the State of Nebraska, identified at least one image of a minor engaging in sexually explicit conduct that was distributed by an account user to other account users on the Kik application. Kik captured the Internet Protocol (IP) address that was used by the account user to distribute the image of the minor engaging in sexually explicit conduct. Law enforcement obtained information related to the IP addresses, which ultimately identified Stidd as the subscriber and that he resided in Omaha.
The Nebraska State Patrol (NSP), Special Operations Division, executed a federal search warrant of Stidd’s Omaha residence. The NSP seized numerous digital devices. Stidd gave a voluntary statement to law enforcement in which he admitted to using Kik. A forensic review of Stidd’s Kik account and digital devices revealed at least one thousand (1,000) graphic files of minors engaged in sexually explicit conduct. The forensic review of Stidd’s Kik account and digital devices further revealed that on January 19, 2020, Stidd distributed images of minors engaged in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Nebraska State Patrol.
Ohio Man Sentenced to Federal Prison for His Role in Drug Trafficking ConspiracyRead the Press Release
A man from Ohio who was involved in a conspiracy to distribute drugs was sentenced February 16, 2022, to four years in federal prison.
Dean Warren Wright, age 47, from Cleveland Heights, Ohio, received the prison term after an August 6, 2021 guilty plea to conspiracy to distribute controlled substances.
At the guilty plea, Wright admitted he was part of an agreement to distribute methamphetamine, heroin, and marijuana in the Northern District of Iowa. Wright was stopped in a vehicle in Iowa and was found to be in possession of more than $74,000 in cash related to drug trafficking.
Wright was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Wright was sentenced to 48 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Wright is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Federal Bureau of Investigation, the Iowa Division of Narcotics Enforcement, the Tri-County Drug Enforcement Task Force, the Waterloo Police Department, the Black Hawk County Sheriff’s Office, and the Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-cr-2060.
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Ocala Man Sentenced to 66 Months in Prison for Wire Fraud in Relation to Resale of Wireless Communications PlansRead the Press Release
GAINESVILLE, FLORIDA –Justin Michael Lewis, 39, of Ocala, Florida was sentenced to 66 months in federal prison following his conviction for six counts of wire fraud. The sentenced was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
“Notwithstanding the size of the corporation, fraud schemes harm companies and their customers,” stated U.S. Attorney Coody. “The deceptive, persistent, and sophisticated acts employed by this defendant demonstrate the danger posed to both corporations and their consumers. With the assistance of our dedicated law enforcement partners, we are committed to investigating and prosecuting those who engage in acts of corporate fraud.”
Evidence introduced at trial revealed that between September 2015, and February 2018, Lewis engaged in a scheme to defraud a wireless carrier by obtaining unlimited cellular data lines through fraudulent means and reselling them to the public for a 1500% mark-up. During most of this time-period, unlimited plans were not widely available to the public. When his actions were discovered, Lewis made false representations to the carrier, created new companies in other people’s names, and submitted altered documentation to conceal his activities. Finally, he used a technique to manipulate the carrier’s customer website portal to obtain unlimited data for free through accounts he had opened in other people’s names.
In addition to the prison term, Lewis’ sentence included 3 years supervised release, the forfeiture of two residences and several bank accounts, a forfeiture money judgment in the amount of $1,349,398.98, and restitution to the victim in the same amount.
“This case is an example of the FBI’s relentless effort to protect American companies and their customers,” said Sherri E. Onks, Special Agent in Charge of the FBI Jacksonville Division. “When individuals defraud corporations, it is ultimately citizens – the corporation’s customers – who pay the price. The FBI remains committed to pursuing investigations into corporate fraud in an effort to protect consumers from bearing the costs associated with criminal activity.”
This conviction was the result of an investigation conducted by the Federal Bureau of Investigation and the Internal Revenue Service. Assistant United States Attorneys Gary Milligan and David P. Byron prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida i/s one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Ocala Convicted Felon Indicted for Unlawful Possession of A FirearmRead the Press Release
Ocala, Florida –United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Michael Tyrone Young (32, Ocala) with possessing a firearm as a previously convicted felon. If convicted, Young faces a maximum penalty of 10 years in federal prison. A federal grand jury had indicted Young on December 7, 2021, he was arrested on February 15, 2022.
According to court documents, officers from the Ocala Police Department encountered Young during a routine patrol of a local public housing complex on the night of August 31, 2021. The officers observed Young dropping a heavy metallic object that resembled a firearm. Young, who was not a resident of the complex, had a strong odor of marijuana about his person. During a subsequent search, a loaded 9mm handgun fell out of Young’s pants. The officers also located MDMA (ecstasy) on his person. A record check showed that Young had prior state felony convictions for possession of cocaine with the intent to sell, possession of cannabis with the intent to sell, and possession of oxycodone with the intent to sell. As a convicted felon, he is prohibited from possessing firearms and ammunition under federal law.
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.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the City of Ocala Police Department and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
North Dakota Man Sentenced to More Than 3 Years in Prison for Traveling to Connecticut for Sex with MinorRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that CHRISTOPHER J. BRERETON, 35, of Fargo, North Dakota, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 37 months of imprisonment, followed by five years of supervised release, for traveling to Connecticut to attempt to engage in sex with a minor.
According to court documents and statements made in court, in January 2020, Brereton began chatting online with a minor female who had an online profile stating she was 18 years old. In February 2020, a law enforcement officer received permission to take over the minor’s account and, in an undercover capacity, the officer informed Brereton of the female’s true age of 15 years old. Brereton continued to chat with the “girl,” discussed engaging in sexual activity with her and made plans to drive to Connecticut meet her for sex.
On March 12, 2020, Brereton began driving from North Dakota and he arrived at a hotel in Meriden the next day. At the hotel, Brereton unpacked lingerie and sexual paraphernalia he had purchased for the planned sexual encounter. He was arrested later that day by New Haven Police on state charges after he drove to a location where he had arranged to meet the “girl.”
Brereton has been detained since his arrest. On July 19, 2021, he pleaded guilty to one count of traveling interstate with the intent to engage in illicit sexual conduct.
This matter was investigated by Homeland Security Investigations (HSI) and the New Haven Police Department. The case was prosecuted by Assistant U.S. Attorney Anastasia E. King.
U.S. Attorney Boyle thanked the New Haven State Attorney’s Office for its assistance in the prosecution of this case.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Nigerian Citizen Sentenced to over 13 Years in Prison for Sweepstakes SchemeRead the Press Release
AUSTIN – A Nigerian citizen and resident of Canada was sentenced today to nearly 14 years in prison for his role in a fraudulent “sweepstakes” scheme with a loss in excess of $260 million.
According to court documents, on September 4, 2018, Harry Cole, aka “Akintomide Ayoola Bolu,” “John King,” “Big Bro,” “Egbon,” 51, was one of eight defendants charged with conspiracy to commit mail and wire fraud. The fraud is a type of “sweepstakes” scheme that ran from 2012 to 2016. Cole purchased lists of potential elderly victims and their addresses. Cole and other conspirators based in the Toronto, Ontario, Canada metropolitan area sent packages containing fraudulent sweepstakes information to conspirators residing in the U.S. The packages contained thousands of mailers that U.S.-based conspirators then sent to victims notifying them that they had won a sweepstakes. Each mailer included a fraudulent check issued in the name of the victim, usually in the amount of $8,000 and a pre-addressed envelope.
Victims were instructed to deposit the check into their bank account, to immediately withdraw between $5,000 and $7,000 dollars in cash or money orders and to send the money to a “sweepstakes representative” to facilitate the collection of the prize. By the time the bank notified the victim that the deposited check was fraudulent, the victim had sent cash or a money order that was received by the defendants or conspirators. Later, the conspiracy recruited an Austin-based conspirator, Stephen Omowaiye, who printed and sent sweepstakes scam packages to victims and also received victim payments in Austin.
The intended loss from this scheme was over $260 million with an actual loss of more than $900,000.
Today, Cole was sentenced to 166 months of imprisonment as well as three years of supervised release and ordered to forfeit $850,000 and to pay $111,870.25 in restitution.
“Cole and the other perpetrators of this despicable scam tricked hundreds of elderly victims out of their hard-earned money while the conspirators callously disregarded the consequences to our senior citizens,” said U.S. Attorney Ashley C. Hoff. “This case demonstrates our office’s commitment to hold accountable those who prey upon vulnerable victims. We will use every tool at our disposal to make sure they cannot hide in other countries and escape justice.”
“Our investigative reach in this case, through international cooperation with Canada, shows that justice can prevail even when criminals are outside of our nation’s borders,” said Internal Revenue Service Criminal Investigations (IRSCI) Special Agent in Charge Ramsey E. Covington of the Houston Field Office. “Through the teamwork with our law enforcement counterparts in Homeland Security Investigations (HSI), U.S. Postal Inspection Service (USPIS), and the Toronto Police Department, we stopped Harry Cole and his co-conspirators and their international sweepstakes and stolen identity tax refund fraud rings that targeted numerous elderly U.S. citizens. While IRSCI will pursue criminals, the best defense is to always protect your personal information and to verify first before sending any money domestically or internationally.”
“This federal investigation uncovered a sophisticated scheme that exploited legitimate financial institutions to defraud businesses and residents of the United States,” said Special Agent in Charge Shane Folden, HSI San Antonio. “These types of crimes swindle hundreds of millions of dollars from U.S. victims each year and illicitly finance criminal organizations around the world. HSI and its law enforcement partners will continue to do everything possible to stop this kind of fraud and ensure the financial integrity of the homeland.”
“The U.S. Postal Inspection Service has been at the forefront of protecting consumers from fraud schemes for many years,” said Inspector in Charge Scott Fix. “There are a wide variety of financial schemes that target our most vulnerable populations, including the elderly, and the effects of those schemes are devastating to the victim and their families. The Inspection Service is committed to working with our law enforcement partners to pursue those who utilize the U.S. Mail to perpetrate these fraud schemes and bring them to justice.”
On October 27, 2021, Cole pleaded guilty to one count of Conspiracy to Commit Mail and Wire Fraud. He has remained in federal custody since his extradition and arrest on August 20, 2020.
Co-defendants include: Nigerian citizen and U.S. resident Akintola Akinmadeyemi; Austin residents Joel Calvin and Clarence Barefield (aka CJ); Mesquite, TX, resident Donna Lundy; Nigerian citizens and Canadian residents Tony Dada Akinbobola (aka Lawrence D Awoniyi, aka Boss Tony, aka Toyin), Emmanuel Olawale Ajayi (aka Wale, aka Walata), and Bolaji Akinwunmi Oyewole (aka BJ, aka Beejay).
On January 24, 2019, Calvin pleaded guilty to one count of Conspiracy to Commit Mail Fraud. On February 15, 2019, Lundy pleaded guilty to one count of wire fraud. Both are scheduled for sentencing on March 3, 2022.
On February 19, 2019, Akinmadeyemi pleaded guilty to Conspiracy to Commit Mail and Wire Fraud. He was sentenced to 120 months in prison and ordered to pay $111,870.25 in restitution.
On April 26, 2019, Barefield pleaded guilty to one count of money laundering. He was sentenced to 96 months in prison.
On February 11, 2022, Akinbobola was extradited to the United States from Canada and is awaiting arraignment in Austin.
Ajayi and Oyewole are fugitives.
IRSCI, HSI, and USPIS investigated this case. Assistant U.S. Attorney Michael C. Galdo prosecuted this case on behalf of the government. Attorneys with the Justice Department’s Office of International Affairs assisted with the extradition of Cole from Canada.
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New York Man Sentenced to 7 Years in Prison for Conspiring to Distribute MethamphetamineRead the Press Release
JOHNSTOWN, Pa. – A resident of Jamestown, NY, has been sentenced in federal court to a total of 7 years in prison followed by 4 years supervised release on his conviction of conspiracy to distribute methamphetamine, United States Attorney Cindy K. Chung announced today.
Senior United States District Judge Kim R. Gibson imposed the sentence on Peter Shawbrougham, 27.
According to information presented to the court, on or about July 2019 through in and around June 2020, Shawbrougham did conspire to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine.
Assistant United States Attorney Maureen Sheehan-Balchon prosecuted this case on behalf of the government.
Ms. Chung commended the Drug Enforcement Administration and the Pennsylvania State Police for the investigation that led to the successful prosecution of Shawbrougham. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, Homeland Security Investigations, Pennsylvania Office of the Attorney General, Clearfield County District Attorney’s Office, Erie County District Attorney’s Office, Millcreek Police Department, Erie Bureau of Police, and other local law enforcement agencies.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
New Orleans Man Sentenced for Firearms Offenses and Causing Mailing of Fraudulent Concealed Handgun Permit Training Course CertificatesRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that on February 16, 2022, TRAVIS WHITE, age 41, of New Orleans, was sentenced by United States District Judge Lance M. Africk after previously pleading guilty to firearms offenses and mail fraud.
Specifically, WHITE previously pled guilty to one count of conspiracy to commit mail fraud, in violation of 18 U.S.C. §§ 1341 and 1349; one count of conspiracy to unlawfully deal in firearm, in violation of 18 U.S.C. §§ 922(a)(1)(A), 923(a), 924(a)(1)(D) and 371; and one count of sale of a firearm to a felon, in violation of 18 U.S.C. §§ 922(d) and 924(a)(2).
According to court records, WHITE operated a Louisiana corporation, Always On Point LLC, based out of New Orleans. Through the business, WHITE sold fraudulent certificates attesting that his customers had completed a training course required to obtain concealed carry firearms licenses, although in most cases, those individuals had completed little to no training. WHITE was not an approved concealed-carry-training instructor with the Louisiana State Police. Additionally, WHITE sold firearms to his customers, although he was not a federally licensed firearms dealer. In some instances, WHITE sold firearms to individuals who were not permitted to possess or purchase firearms due to felony convictions.
Judge Africk sentenced WHITE to a term of imprisonment of 51 months, 3 years of supervised release and a $300 mandatory special assessment fee.
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.
U.S. Attorney Evans praised the work of the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives in investigating this matter. Assistant United States Attorney Jonathan L. Shih is in charge of the prosecution.
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New London Man Admits Role in Cocaine Trafficking ConspiracyRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, today announced that ABRAHAM ROSADO, 33, of New London, pleaded guilty yesterday in Bridgeport federal court to a narcotics trafficking offense stemming from his role in a conspiracy in which cocaine was mailed through the U.S. Postal Service from Puerto Rico to southeastern Connecticut.
According to court documents and statements made in court, in August 2020, the U.S. Postal Inspection Service’s Narcotics and Bulk Cash Trafficking Task Force in Connecticut intercepted a suspicious package that was destined for a location in Puerto Rico. A court-authorized search of the package revealed $158,900 in cash. Investigators established a connection between Raul Robles, who is Rosado’s cousin, and the seized package, and learned that Robles’ and Rosado’s residence on Blackhall Street in New London had received approximately 25 suspicious parcels from Puerto Rico since September 2019.
Investigators continued to monitor USPS deliveries of parcels mailed from Puerto Rico to the Blackhall Street residence, including multiple parcels addressed to names of individuals who did not reside there. A court-authorized search of one parcel that had been mailed to a fictitious individual at the residence revealed more than a kilogram of cocaine.
Rosado was arrested on a federal criminal complaint on April 8, 2021.
Rosado pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 500 grams or more of cocaine, an offense that carries a maximum term of imprisonment of 40 years. He is scheduled to be sentenced by U.S. District Judge Jeffrey A. Meyer on May 11, 2022. Rosado is detained pending sentencing.
Robles pleaded guilty to the same offense on September 21, 2021, and awaits sentencing.
This matter is being investigated by the U.S. Postal Inspection Service’s Narcotics and Bulk Cash Trafficking Task Force, with assistance from the New London and Town of Groton Police Departments. The Task Force includes members from the U.S. Postal Inspection Service, the U.S. Postal Service – Office of the Inspector General, the Connecticut Army National Guard, and the Hartford, New Britain, Meriden and Town of Groton Police Departments.
The case is being prosecuted by Assistant U.S. Attorney Konstantin Lantsman.
New Jersey Woman Admits Operating Unlicensed Money Transmitting BusinessRead the Press Release
NEWARK, N.J. – A New Jersey woman today admitted transmitting the proceeds of a fraudulent scheme in which elderly victims were falsely told that they had won large sums of money in a lottery sweepstakes, U.S. Attorney Philip R. Sellinger announced.
Shanile Lyle, 28, of Orange, New Jersey pleaded guilty by videoconference before U.S. District Judge Julian X. Neals to an information charging her with operating an unlicensed money transmitting business.
According to documents filed in this case and statements made in court:
In 2018, Lyle received checks from victims of a lottery scheme in which the victims were told that they had won large sums of money in a lottery sweepstakes and had to pre-pay taxes on their winnings. Lyle then deposited that money into a bank account that she controlled. Lyle kept a fee for herself and then wired the remainder of the funds to other individuals, including individuals overseas.
The charge of operating an unlicensed money transmitting business carries a maximum penalty of five years in prison and a maximum fine of $250,000. Lyle’s sentencing is scheduled for June 28, 2022.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George Crouch Jr. in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Vera Varshavsky of the U.S. Attorney’s Cybercrime Unit in Newark.
New Jersey Couple Charged with Forced Labor and Other CrimesRead the Press Release
A federal grand jury yesterday returned an eight-count indictment charging a Burlington County, New Jersey, couple with the forced labor and other crimes involving two undocumented individuals, Assistant Attorney General Kristen Clarke of the Justice Department's Civil Rights Division and U.S. Attorney Philip Sellinger announced today.
Bolaji Bolarinwa, 47, and Isiaka Bolarinwa, 65, both of Moorestown, New Jersey, are both charged with two counts of forced labor. Bolaji Bolarinwa is also charged with two counts of bringing in and harboring certain undocumented individuals and two counts of unlawful conduct with respect to documents in furtherance of forced labor. Both defendants appeared today by videoconference before U.S. Magistrate Judge Sharon A. King.
According to the indictment from 2015 to 2016, Bolaji Bolarinwa unlawfully obtained labor and services from one victim by means of serious harm or threats of serious harm, and from another victim by means of force or threats of force. She abused and threatened abuse of legal process against both victims. Bolarinwa’s spouse, Isiaka Bolarinwa, participated in the scheme and financially benefitted from the victims’ forced labor.
Bolaji Bolarinwa knew that both victims had entered the United States illegally and harbored them from detection for her own financial gain. She confiscated and possessed the passports and visas of both victims.
Both defendants face a maximum penalty on each forced labor count of 20 years in prison. Bolaji Bolarinwa faces a maximum penalty on each undocumented individual harboring count of 10 years in prison and a maximum penalty on each unlawful document conduct count of five years in prison. They also each face a fine on each count of up to $250,000 or twice the gross gain or gross loss from the offense, whichever is greatest.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office for the District of New Jersey and Trial Attorneys Elizabeth Hutson and Vasantha Rao of the Department of Justice’s Civil Rights Division.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
New Bern Woman Sentenced to More Than 13 Years for Trafficking over One Kilogram of Methamphetamine, Tax FraudRead the Press Release
WILMINGTON, N.C. – A New Bern, North Carolina woman was sentenced today to 166 months in prison for conspiracy to distribute and possess with intent to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine, and conspiracy to defraud the United States.
According to court documents and information presented at the sentencing hearing, Antoinette Charmane Becton, 41, was named in an Indictment filed on February 19, 2020. On January 27, 2021, Becton entered a plea of guilty to a Criminal Information.
In October 2018, the Greenville Regional Drug Task Force received information that Alterick Wallisima Boyd was distributing large quantities of cocaine, crack cocaine, and heroin in Pitt County, North Carolina. Over the next several months, agents conducted an investigation into Boyd and his co-conspirators. Boyd is scheduled to be sentenced on April 5, 2022.
From December 2019 through February 2020, a confidential source conducted controlled purchases of cocaine, cocaine base (crack), and more than one kilogram of crystal methamphetamine from Becton.
A search warrant was executed at Becton’s residence on February 20, 2020, and agents seized $2,680 in currency from prior controlled drug purchases; a money counter; a digital scale; two smoking pipes; suspected fake ID cards and bank cards; and suspected cocaine base (crack).
In a separate investigation, agents with the Internal Revenue Service determined that over the course of several years, Becton ran a business called Carolina Tax Service. Through that business, Becton filed large numbers of false tax returns in which she listed fabricated information to fraudulently obtain tax refunds. In total, from 2014 to 2018, Becton and her employees filed false tax returns with intended losses of more than $1,000,000.
“Crystal methamphetamine is a highly addictive and destructive controlled substance. It destroys minds, bodies, and communities,” said United States Attorney Michael Easley. “The United States Attorney’s Office and our law enforcement partners will continue to investigate and prosecute those who would sell these substances for personal profit.”
“When those we trust to prepare our taxes take advantage of their clients for their own greed, everybody is harmed,” said Donald “Trey” Eakins, IRS Criminal Investigation (IRS-CI) Special Agent in Charge, Charlotte Field Office. “Today's sentencing again emphasizes that the Internal Revenue Service Criminal Investigation and U.S. Attorney’s office will continue their aggressive pursuit of those who would attempt to defraud America's tax system.”
Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement. The Greenville Regional Drug Task Force, the Craven County Sheriff’s Office, the Internal Revenue Service, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the cases and Assistant U.S. Attorneys Scott A. Lemmon and Susan Menzer prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for case number 4:20-CR-0016-M-3.
New Bern Man Sentenced to More Than 15 Years in Prison for Heroin Trafficking and Illegal Possession of a FirearmRead the Press Release
WILMINGTON, N.C. – Howard Jones, 50, of Craven County was sentenced today to 188 months in federal prison for conspiracy to possess with the intent to distribute and distribution of 100 grams or more of heroin, distribution of a quantity of heroin, possession with intent to distribute 100 grams or more of heroin and possession of a firearm by a felon.
According to court documents, other evidence and information presented in court, on June 15, 2020, the Craven County Sheriff’s Office conducted a traffic stop on Jones as he travelled back from Chicago. A K-9 alerted on the car and $15,000 was located. On June 24, 2020, the Craven County Sheriff’s Office and New Bern Police Department made a controlled purchase of an ounce of heroin from Jones at the Kensington Park Apartments in New Bern. On June 25, 2020, the Craven County Sheriff’s Office, New Bern Police Department, and North Carolina SBI assisted by ATF served a search warrant at the same apartment. Law enforcement found a secret compartment in the kitchen which contained a loaded stolen handgun, digital scales and 7 ounces of heroin. They also found $16,000 and a key to a safe deposit box in Georgia in the apartment. Jones was arrested at the scene. On July 1, 2020, Jones called a family member from jail and advised them to get a key and attempt to retrieve money for him. Law enforcement went to the bank and seized $10,000 before they could arrive.
Jones has prior convictions for Felony Aggravated Battery with a firearm, Armed Home Invasion, Manufacturing or delivering a controlled substance and Burglary.
This is part of operation “Fighting Jelly Fish” which is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, 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.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Craven, County Sheriff’s Office and the New Bern, Kinston, Holly Ridge and Goldsboro Police Departments and the North Carolina State Bureau of Investigation investigated the case and Assistant U.S. Attorney Timothy Severo prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:20-cr-00067-M.
Minneapolis Man Sentenced to 21 Years in Prison for Armed Robbery Spree of Twin Cities BusinessesRead the Press Release
MINNEAPOLIS – A Minneapolis man has been sentenced to 262 months in prison for seven violent armed robberies of Twin Cities businesses. Acting U.S. Attorney Charles J. Kovats made the announcement after Senior U.S. District Judge Ann D. Montgomery sentenced the defendant.
According to court documents, on July 28, 2020, Derrick Lee Spillman, 41, robbed three Twin Cities businesses, including a Holiday gas station and two liquor stores. During the robberies, Spillman pointed a handgun at employees and ordered them to the ground. On July 30, 2020, Spillman continued his crime spree by robbing two additional Holiday gas stations, a Speedway gas station, and a Subway restaurant. During these incidents, Spillman pointed a handgun at employees, racked the slide of the gun, and demanded cash from the registers.
On August 10, 2021, Spillman pleaded guilty to seven counts of Hobbs Act robbery and one count of brandishing a firearm during and in relation to a crime of violence.
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.
This case is the result of an investigation conducted by the FBI, the Minneapolis Police Department, the Fridley Police Department, the Brooklyn Center Police Department, the New Hope Police Department, and the St. Paul Police Department.
Assistant U.S. Attorney Justin A. Wesley prosecuted the case.
Miami Man Sentenced to 13 Years in Federal Prison for Armed CarjackingRead the Press Release
Miami, Florida – A South Florida federal district judge has sentenced a 21-year-old man to 156 months in prison for pointing a gun at two people at a Miami gas station and jacking their car on April 6, 2021.
Law enforcement officers located the stolen car the next day. Carlos Junior Senecharles was driving; his girlfriend was in the passenger seat. Officers witnessed Senecharles run a red light, crash into another car, careen into a fence and a tree, and flee from the scene towards an abandoned apartment building. Officers arrested Senecharles and found a loaded firearm inside the stolen car.
Senecharles pled guilty on December 1, 2021, to carjacking, brandishing a firearm in furtherance of a crime of violence, and possession of a firearm and ammunition by a convicted felon.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI Miami, announced the sentence imposed by U.S. District Judge Roy K. Altman.
FBI Miami investigated the case, with assistance from Miami Dade Police Department. Assistant U.S. Attorney Jonathan Bailyn prosecuted Senecharles. 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.
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-20286.
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Mexican National Sentenced to 60 Months in Prison for Illegal Re-entry into the United StatesRead the Press Release
PECOS – On Tuesday, a Mexican national was sentenced to a total of 60 months in prison for unlawfully re-entering the United States after previously being removed by immigration authorities.
According to court documents, Efrain Gonzalez-Pargas, aka Efrain Gonzalez-Vargas, 39, of Zacatecas, Mexico, was found near Big Bend National Park on August 24, 2021. Gonzalez admitted to Border Patrol Agents that he had entered the United States illegally by wading across the Rio Grande River.
On October 12, 2021, Gonzalez pleaded guilty to one count of illegal re-entry into the United States in violation of Title 8, United States Code, Section 1326. Gonzalez had previously been sentenced to eight months in prison for the same offense in October 2020. Gonzalez was deported and removed from the United States by immigration authorities after that conviction.
U.S. District Judge David Counts ordered Gonzalez to serve 46 months in prison for the current case and another 14 months in prison for violating his supervised release for the 2020 case for a total of 60 months in prison.
At the sentencing hearing, evidence was presented that Gonzalez had a previous conviction in California for battery with serious bodily injury.
Gonzalez has remained in federal custody since his arrest on August 24, 2021.
U.S. Attorney Ashley C. Hoff of the Western District of Texas and Homeland Security Investigations (HSI) Acting Special Agent in Charge Taekuk Cho made the announcement.
HSI investigated the case.
Assistant U.S. Attorneys Andrew Weber and Scott V. Greenbaum prosecuted the case.
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Methamphetamine Dealer Sentenced to Five Years in Federal PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Kevin Lawrence Carter, age 40, of Faulkner Maryland, to five years in federal prison, followed by five years of supervised release, for possession with intent to distribute methamphetamine.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; and Chief Malik Aziz of the Prince George’s County Police Department.
According to Carter’s plea agreement, on July 30, 2020, law enforcement observed an individual purchase approximately one ounce of methamphetamine from Carter for $700. The transaction occurred in a Clinton, Maryland parking lot. After the transaction, law enforcement continued surveillance of Carter as he left the parking lot, stopped to get gas for the car, and headed into Charles County, Maryland.
A short time later, a Charles County Sheriff’s deputy conducted a traffic stop on Carter’s vehicle in White Plains, Maryland. During the traffic stop, the deputy asked Carter to step out of the vehicle. As Carter exited the vehicle, the deputy saw a clear gallon freezer bag with a white substance protruding from the driver’s seat where Carter was sitting and noticed a digital scale in the driver’s side door.
Carter was placed under arrest and transported to the Charles County Detention Center. As a result of a search of Carter’s vehicle, law enforcement seized the digital scale, 388 grams of pure methamphetamine, and $680 remaining from the $700 Carter was paid during the earlier drug transaction. The remaining $20 had been used when Carter stopped to get gas. Lab results proved that the substance Carter distributed was 28.04 grams of pure methamphetamine.
In total, Carter possessed with intent to distribute at least 416 grams of 100% pure methamphetamine.
United States Attorney Erek L. Barron praised HSI and the Prince George’s County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Joel Crespo and Elizabeth Wright, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Mercer County Man Sentenced to 7 Years for Possessing and Distributing Child Sexual Abuse MaterialsRead the Press Release
PITTSBURGH - A Mercer County resident has been sentenced in federal court to 84 months’ imprisonment and 7 years’ supervised release on his conviction of Distribution and Possession of Material Depicting the Sexual Exploitation of a Minor, United States Attorney Cindy K. Chung announced today.
United States District Judge Marilyn J. Horan imposed the sentence on Alex Rogan-Laird, age 26, of Greenville, Pennsylvania.
According to information presented to the court, on March 14, 2020, Rogan-Laird distributed videos and still images over the “LiveMe” interactive software application depicting the sexual exploitation of prepubescent minors to an agent of the FBI working in an undercover capacity in Salt Lake City, Utah. The FBI further found Rogan-Laird in possession of thousands of sexually exploitive videos and images depicting children, on July 15, 2020, at the time a federal search warrant was executed at his residence. Rogan-Laird admitted to viewing and distributing child pornography using “LiveMe” and similar software applications.
Restitution to the victims depicted in the sexually exploitive imagery is mandatory and Judge Horan scheduled a hearing on restitution for April 6, 2022. One of the victims, now an adult, spoke at the sentencing hearing about the continuing psychological harm she endures knowing that individuals like Rogan-Laird continue to view and share the images of her childhood abuse.
Prior to imposing sentence, Judge Horan stated that the defendant should take advantage of mental health and sex offender treatment while serving his sentence and, like the victim, use his experience to teach others and prevent such exploitation in the future.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
United States Attorney Chung commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Rogan-Laird.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Member of Violent Robbery Crew Sentenced to 22 Years in Federal PrisonRead the Press Release
CHICAGO — A man has been sentenced to 22 years in federal prison for participating in a violent robbery crew that targeted cell phone stores in the suburbs of Chicago.
AARON CLARK was part of a crew that conspired to rob cell phone stores in Calumet City, Ill., and Peotone, Ill., in 2017. The crew conducted takeover-style heists in which the robbers pointed guns at employees and bound their hands and feet with duct tape or rope. The robbers then stole cash and electronic devices and fled the stores. Clark brandished a gun during the heists and threatened to shoot store employees. In the Peotone robbery, Clark violently kicked a store employee in the face and knocked another employee off of a stool to the ground.
Clark, 44, of Chicago, pleaded guilty last year to federal conspiracy, robbery, and firearm charges. U.S. District Judge Edmond E. Chang imposed the prison sentence Wednesday after a hearing in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; and David Brown, Superintendent of the Chicago Police Department. Valuable assistance was provided by the Calumet City Police Department, Peotone Police Department, Cook County State’s Attorney’s Office, and Will County State’s Attorney’s Office.
“The offenses in this case were violent and dangerous,” Assistant U.S. Attorneys Richard M. Rothblatt and Aaron R. Bond argued in the government’s sentencing memorandum. “No one should have to experience the physical pain and psychological terror defendant imposed upon the employees at these stores who were simply doing their jobs.”
One other member of the crew was convicted of armed robbery offenses in the Circuit Court of Cook County and sentenced to 14 years in state prison.
Marion County Convicted Felon Pleads Guilty to Illegally Possessing Firearm and AmmunitionRead the Press Release
Ocala, Florida –United States Attorney Roger B. Handberg announces that Marrin Maurice Baker (49, Williston) has pleaded guilty to possessing a firearm and ammunition as a convicted felon. Baker faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set. Baker had been indicted on November 9, 2021.
According to court documents, Baker is a felon with prior state convictions for battery on a law enforcement officer and sale of cocaine. On or about August 25, 2021, officers from the Ocala Police Department attempted to stop a truck being driven by Baker, but he refused to pull over. Once he finally stopped, officers searched the truck and recovered a loaded 9mm firearm by the driver’s seat and approximately 121 grams of marijuana on the floorboard. Baker admitted these items belonged to him and added that he had the firearm because of shootings in the local area and that he didn’t want “anyone to try [him].” As a convicted felon, Baker is prohibited from possessing firearms and ammunition under federal law.
This case was investigated by the Ocala Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
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.
Man Sentenced to More Than 9 Years for Possessing a Handgun as a Felon After Altercation at Grocery StoreRead the Press Release
RALEIGH, N.C. – A Tarboro man was sentenced today to 114 months in prison for possessing a handgun as a convicted felon. On September 22, 2021, Bernard Eugene Phillips pled guilty to the charges.
According to court documents and other information presented in court, Phillips, 43, pulled a loaded handgun during an argument at Brown’s Grocery Store located in Tarboro, North Carolina. When Tarboro police officers responded and attempted to arrest Phillips, Phillips fought with the officers and spit on them. Even after he was in handcuffs, Phillips continued to physically resist the officers. After they were able to secure Phillips, the officers recovered the handgun which was found in Phillips’s waistband. The handgun was determined to be stolen after officers secured it from Phillips.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Tarboro Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case and Assistant U.S. Attorney John Parris prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:21-cr-00007-D.
Man Charged with Illegally Possessing “Ghost” Gun and Multiple Other Guns in Bronx ApartmentRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Michael J. Driscoll, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Keechant L. Sewell, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing today of a three-count Indictment charging ERIC LESANE with firearms and drug trafficking offenses. LESANE was initially charged by Complaint after his arrest on February 1, 2022. LESANE’s case has been assigned to the Honorable U.S. District Judge Alison J. Nathan.
U.S. Attorney Damian Williams said: “As alleged, the defendant illegally possessed multiple guns, including an untraceable ‘ghost’ gun. Illegally possessed and untraceable guns pose a serious public safety threat. Thanks to our law enforcement partners, the defendant’s weapons are now in safe hands.”
Michael J. Driscoll, FBI Assistant Director-in-Charge said: “Mr. Lesane was aware of the conditions attached to his release from prison – he was not allowed to purchase or maintain a firearm. We allege he possessed several, one of which was an untraceable ghost gun - a class of weapon that poses an increasing threat to our communities. Our goal is to work with our law enforcement partners to get criminals and their weapons off our streets.”
NYPD Commissioner Keechant L. Sewell said: “Convicted previously in a firearms possession case, Eric Lesane now faces federal indictment for allegedly amassing a stockpile of weapons — including an untraceable ghost gun — while on supervised release. Our NYPD investigators, working with our partners and prosecutors in the United States Attorney’s Office, will never stop pursuing these kinds of cases in our continuing effort to eradicate gun violence in New York.”
Michael Fitzpatrick, Chief U.S. Probation Officer said: “On February 1, Probation Officers from the Southern District of New York performed a search of Eric Lesane’s address. These officers seized several firearms and a large amount of ammunition. This search exemplifies the importance of communication between law enforcement agencies.”
According to the allegations in the Indictment unsealed today in Manhattan federal court and in the Complaint and statements made in open Court:
On February 1, 2022, the United States Marshals Service arrested LESANE, who was previously convicted of a felony related to illegal firearms possession, after an arrest warrant issued for violations of supervised release. Following LESANE’s arrest, Probation Officers from the United States Probation Office for the Southern District of New York conducted a search of LESANE’s apartment. In the course of the search, Probation Officers found:
(1) a Ruger Precision Rifle,
(2) a Mossberg Rifle,
(3) a SWD Model M-11 9mm pistol,
(4) a Typhoon 12 Gauge Semiautomatic Shotgun, and
(5) a black pf940c polymer 80 privately made handgun with no serial number—in other words, a “ghost” gun.
A photograph of the guns is below:
In the course of the search, Probation Officers also recovered multiple high-capacity magazines each containing more than 15 rounds of ammunition, approximately 75 buckshot shotgun shells, additional ammunition, and a quantity of marijuana.
Probation Officers also found large amounts of paraphernalia that appears to be associated with the “Crips” street gang, including blue clothing and signs, literature that discusses the Crips, and a black and blue baseball bat with a black and blue bandana tied around it, wrapped in barbed wire.
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LESANE, 34, of the Bronx, New York, is charged with: (1) possession of firearms following a felony conviction, which carries a maximum sentence of ten years in prison, (2) marijuana trafficking, which carries a maximum sentence of five years in prison, and (3) possessing firearms in furtherance of a drug trafficking offense, which carries a mandatory minimum sentence of five years in prison, to be served consecutively to any other sentence imposed, and a maximum sentence of life in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the FBI and the NYPD. Mr. Williams also thanked the United States Probation Office for the Southern District of New York, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Marshals Service for their assistance in this case.
The prosecution is being handled by the Office’s Violent & Organized Crime Unit. Assistant United States Attorney Elizabeth A. Espinosa is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Macon Firearms Trafficker Convicted in ATF’s Operation United FrontRead the Press Release
MACON, Ga. – Three individuals have pleaded guilty to various federal charges resulting from Operation United Front, an ongoing ATF-led investigation into illegal gun possession and drug distribution centered in the Macon, Georgia, community.
Chadrick Purnell, 43, of Macon, pleaded guilty to possession of a firearm by a convicted felon before U.S. District Judge Marc Treadwell on Feb. 16. Purnell faces a maximum ten years in prison to be followed by at least three years of supervised release and a $250,000 fine. Sentencing is scheduled for May 3. Co-defendant Jermaine White, 33, of Warner Robins, Georgia, pleaded guilty to two counts use of a communication facility on Feb. 15. White faces a maximum four years of imprisonment for each count to be followed by one year of supervised release and a $250,000 fine. Sentencing is scheduled for May 3. Co-defendant Jasper Blackshear, 57, of Macon, pleaded guilty to conspiracy to possess with intent to distribute cocaine base on Dec. 16, 2021. Blackshear faces a maximum twenty years of imprisonment to be followed by three years of supervised release and a $1,000,000 fine. Sentencing is scheduled for April 6.
“These cases were made possible by investigative leads generated from ATF’s National Integrated Ballistic Information Network, known as NIBIN. The use of this system allows law enforcement to strategically focus their efforts to areas with the greatest density of shootings,” said U.S. Attorney Peter D. Leary. “Reducing violent crime is a top priority for the entire Middle Georgia community. The U.S. Attorney’s Office will continue to maximize every resource at our disposal to achieve this common goal.”
“NIBIN is proven technology that is an important tool in linking the criminal use of firearms with the actual trigger puller,” said ATF Acting Assistant Special Agent in Charge Jason Stricklin. “In this case, NIBIN allowed us to work with our local partners to identify and take these violent offenders off the street.”
“These arrests and convictions show what technology, teamwork and street level investigations can accomplish. The partnership between ATF agents and Bibb investigators as well as the NIBIN technology has been essential in bringing these gunslingers to justice,” said Bibb County Sheriff David J. Davis.
According to court documents, law enforcement used data compiled from NIBIN in order to identify locations where shell casings were collected from shooting events in Macon. These shooting events were then overlayed on a map, and teams of confidential informants and undercover agents investigated criminal activity in the areas with high density shootings. From May to July 2021, Purnell, Blackshear and White were under investigation. During this time, undercover agents and confidential informants purchased nine firearms and crack cocaine from Purnell, who is a convicted felon. The firearms included two semi-automatic rifles and a shotgun with an obliterated serial number. 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.
These cases are being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Bibb County Sheriff’s Office, the Georgia Department of Community Supervision and the Bibb County District Attorney’s Office are investigating the cases.
Assistant U.S. Attorney Will Keyes is prosecuting the cases.
MS-13 Member Sentenced to Life in Prison for RICO Conspiracy and Brutal Murder of Two TeenagersRead the Press Release
BOSTON – A member of the violent MS-13 gang was sentenced yesterday in federal court in Boston for RICO conspiracy and for his participation in the murders of two teenagers in Massachusetts—one in 2016 in East Boston and the other in 2018 in Lynn—in each instance playing a critical role in repeatedly stabbing a teenager to death.
Henri Salvador Gutierrez, a/k/a “Perverso,” 23, a Salvadoran national, was sentenced by U.S. Senior District Court Judge Mark L. Wolf to life in prison. In June 2021, Gutierrez pleaded guilty to racketeering, or RICO, conspiracy on behalf of MS-13. As part of his activities in furtherance of MS-13, Gutierrez played a critical role in two horrific murders in which teenagers were repeatedly stabbed to death in public parks in Massachusetts. Each of the victims was murdered with extreme atrocity and cruelty in violation of Massachusetts law.
MS-13, or La Mara Salvatrucha, is a transnational street gang operating in Massachusetts and numerous other states, as well as countries such as El Salvador, Honduras, and Guatemala. MS-13 gang members often commit acts of extreme violence against suspected rivals, those suspected of cooperating with law enforcement, and others who the gang views as a threat. The gang is also known for recruiting young members at local high schools, who are then groomed to commit violence in furtherance of the gang’s mission. In recent years, dozens of MS-13 members have been convicted of RICO conspiracy and other serious felonies in the District of Massachusetts.
MS-13 is organized into “cliques” or branches operating in local territories. Gutierrez was a member of the “Sykos Locos Salvatrucha” (Sykos) and, previously, the “Trece Locos Salvatrucha” (TLS) cliques of MS-13. Achieving promotion in MS-13 generally requires the commission of a significant act of violence, often including murder. The evidence in this case showed that Gutierrez was a “homeboy,” or full member of the MS-13 gang.
On Dec. 24, 2016, in furtherance of MS-13’s racketeering activities, Gutierrez participated in the murder of a teenage boy in East Boston. The evidence showed that Gutierrez lured the victim to a public soccer stadium based on Gutierrez’s belief that the victim may have been associated with a rival gang. Gutierrez personally stabbed the victim numerous times and left the victim’s body at the bottom of a stairwell. An autopsy revealed the victim had at least a dozen sharp force wounds consistent with a stabbing, with significant injuries to the neck, chest and back. His throat appeared to have been slashed, and he had multiple incised wounds to the neck and multiple stab wounds to the chest.
In 2017, while the December 2016 murder remained unsolved, and unrelated to that investigation, immigration authorities arrested Gutierrez as part of ongoing removal proceedings. Gutierrez had entered the United States unlawfully in 2014 and was facing deportation. Authorities sought to remove Gutierrez from the United States and pointed to evidence of his association with MS-13 as part of the reasons to oppose Gutierrez’s petition for asylum and other relief. Gutierrez submitted an affidavit and testified under oath at his removal proceedings. Through his statements, Gutierrez misled the immigration court, telling the court that he was not associated with MS-13, had not committed prior violence, and was committed to living a peaceful life in the United States. Relying in part on Gutierrez’s false testimony, in an order dated June 22, 2018, a United States Immigration Judge ordered Gutierrez released and adjusted his status to that of a person admitted for lawful permanent residence in the United States.
On July 30, 2018, barely a month after being released from immigration custody, Gutierrez committed his second murder, this time with five members of the Sykos clique of MS-13. The six assailants, four of whom were secretly armed with knives, took a 17-year-old boy to a park in Lynn and pretended to be friendly with the unsuspecting victim. At the scene, the six men surrounded the victim and repeatedly stabbed and hacked him to death. After killing the victim, the gang members left his body in the wooded area of the public park where it was discovered days later, on Aug. 2, 2018. An autopsy revealed that the victim suffered at least 32 distinct sharp force trauma wounds consistent with being stabbed repeatedly, along with multiple blunt force injuries. The victim also had small pieces of metal embedded in his head, consistent with parts of the large knives breaking with the force of the strikes to the victim’s skull.
The evidence in this case, which included a recording of Gutierrez describing the murder in graphic detail and boasting about it, revealed that the gang members murdered the victim based on their mistaken belief that he may have been assisting law enforcement. In the recordings, Gutierrez seemingly took pleasure in recounting the horrific act and expressed laughter while saying the murder was like “chopping wood,” as he and fellow gang members “were stabbing the knife right through him, bringing it down like [...] Bang, bang, bang, bang!”
Following an investigation in November 2018 Gutierrez was indicted along with the five other MS-13 members who participated in the July 2018 murder in Lynn. The six defendants in this case included five participants in the 2018 murder, as well as one longstanding member of the Sykos clique. In a related case, the government charged a juvenile co-conspirator who was the sixth person involved in the murder.
All six defendants indicted in this case, along with the juvenile charged in the related case, have pleaded guilty. Gutierrez is the third defendant to be sentenced in the case. On Feb. 14, 2022, Erick Lopez Flores, a/k/a “Mayimbu,” was sentenced to 40 years in prison. On Feb. 15, 2022, Jonathan Tercero Yanes, a/k/a “Desalmado,” was sentenced to 33 years in prison. Djavier Duggins, a/k/a “Haze,” is scheduled to be sentenced for RICO conspiracy today, Feb. 17, 2022, at 1 p.m. Sentencing hearings for the two remaining co-defendants, Eliseo Vaquerano Canas, a/k/a “Peligroso” and Marlos Reyes, a/k/a “Silencio,” have not yet been scheduled by the Court.
First Assistant United States Attorney Joshua S. Levy; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Essex County District Attorney Jonathan W. Blodgett; Suffolk County District Attorney Kevin Hayden; Acting Boston Police Commissioner Gregory Long; and Lynn Police Chief Christopher Reddy made the announcement. Assistant U.S. Attorneys Kunal Pasricha, Kaitlin O’Donnell, and Philip Mallard of the Criminal Division prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Lower Brule Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Dennis Holmes announced that a Lower Brule, South Dakota, man convicted of two counts of Abusive Sexual Contact was sentenced on February 14, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Benjamin Joseph Grassrope, age 33, was sentenced to 96 months in federal prison, followed by seven years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Grassrope was indicted by a federal grand jury on January 14, 2021. He pled guilty on November 18, 2021.
The convictions stem from an incident that occurred between May 9, 2008, and May 9, 2009, in Lower Brule, wherein an 11-year-old victim awoke to Grassrope inappropriately touching her on her breasts and groin. Further, between May 1, 2012, and August 31, 2012, in Lower Brule, Grassrope inappropriately touched a 12-year-old girl on the breasts and groin.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Grassrope was immediately turned over to the custody of the U.S. Marshals Service.
Lower Brule Man Indicted for Assault ChargesRead the Press Release
United States Attorney Dennis Holmes announced that a Lower Brule, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault of an Intimate Partner by Strangulation.
William Thigh, a/k/a, William Fire Cloud, age 36, was indicted on February 8, 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 11, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to ten years in federal prison and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on August 2, 2021, in Lower Brule, Thigh assaulted a woman with shod feet, a space heater, an electric fan, an air purifier, a metal bar, and electrical cords, with intent to do bodily harm to her. In addition, the Indictment charges that between November 28, 2021, and November 30, 2021, in Lower Brule, Thigh assaulted a woman with a rifle and shod feet, with intent to do bodily harm to her. On both occasions, Thigh is alleged to have unlawfully assaulted a spouse, intimate partner, and dating partner by strangulating and suffocating her, and attempting to do so.
The charges are merely accusations and Thigh is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs – Office of Justice Services, Crow Creek Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Thigh was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Leader of Bronx Violent Drug Crew Sentenced to 27 Years in Prison for Agreeing to Commit Murder for Hire, Gun Crimes, and Drug SellingRead the Press Release
Damian Williams, United States Attorney for the Southern District of New York, announced that SYDNEY SCALES was sentenced today to 27 years in prison for his role as the leader of a violent drug distribution organization that operated in the West Farms neighborhood of the Bronx, including his use of guns and participation in a murder-for-hire conspiracy in June 2017. SCLAES was sentenced by U.S. District Judge Jed S. Rakoff, after being convicted at trial in August 2021 of conspiring to distribute controlled substances, conspiring to commit murder for hire, and related firearms offenses.
U.S. Attorney Damian Williams said: “Sydney Scales was the leader of a violent drug crew. He caused at least one drug-related shooting, and he hired a hitman in an attempt to murder rival drug dealers who were having a barbecue in front of a neighborhood barbershop in the Bronx. Today’s sentence sends a powerful message that people who would commit violent crimes will be arrested, prosecuted, and face serious consequences.”
According to the Superseding Indictment and the evidence at trial:
Between in or about 2016 and in or about 2019, SCALES participated in a conspiracy to distribute crack cocaine, powder cocaine, heroin, fentanyl, and marijuana in the Bronx and elsewhere. SCALES also used, carried, and possessed firearms, which were brandished and discharged, in connection with the narcotics conspiracy, and aided and abetted such firearms offenses. For example, the Government offered evidence that on December 1, 2016, SCALES caused a shooting at rival drug dealers standing in front of a convenience store located next to the entrance of the West Farms subway station.
In addition, in or about June 2017, SCALES conspired to commit murder for hire, agreeing to pay another person for locating and killing at least one rival drug dealer.
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Mr. Williams praised the outstanding investigative work of the Department of Homeland Security, Homeland Security Investigations, and the New York City Police Department.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Frank Balsamello, Mathew Andrews, and Andrew K. Chan are in charge of the prosecution.
Lawrence Man Sentenced for Distributing Counterfeit Prescription Pills Containing FentanylRead the Press Release
BOSTON – A Lawrence man was sentenced today in federal court in Boston in connection with distributing counterfeit pills containing fentanyl.
Ruben Mejia, 28, was sentenced by U.S. Senior District Court Judge William G. Young to 45 months in prison and two years of supervised release. On Sept. 9, 2021, Mejia pleaded guilty to one count of possession with intent to distribute and distribution of fentanyl and heroin; two counts of possession with intent to distribute and distribution of 40 grams or more of fentanyl and heroin; and one count of possession with intent to distribute 400 grams or more of fentanyl and heroin.
Mejia distributed fentanyl pressed into pills designed to resemble actual pharmaceutical-grade oxycodone. End users of Mejia’s product could reasonably believe they were ingesting legitimate oxycodone pills, unaware that they were in fact consuming street fentanyl of uncertain dosage.
Mejia personally delivered or attempted to deliver approximately 6,000 pills, in total containing over 980 grams of fentanyl, to an undercover agent. On Aug. 13, 2020, Mejia sold an estimated 500 fentanyl pills disguised as oxycodone pills for $4,000 ($8 per pill). Mejia sold the pills, which he stored in a baby diaper, in five bags containing approximately 100 pills each. On Aug. 26, 2020, Mejia sold another estimated 500 fentanyl pills for $4,000. Mejia was arrested on Sept. 11, 2020, after he was found in possession of an estimated 5,000 fentanyl pills, which he planned to sell for $40,000.
United States Attorney Rachael S. Rollins; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Lawrence Police Chief Roy P. Vasque made the announcement. Assistant U.S. Attorney Craig Estes of Rollins’ Narcotics and Money Laundering Unit prosecuted the case.
Lame Deer man admits manslaughter charge in stabbing at Crow AgencyRead the Press Release
BILLINGS — A Lame Deer man accused of fatally stabbing another man during an argument at a Crow Agency convenience store on the Crow Indian Reservation admitted to a manslaughter charge today, U.S. Attorney Leif M. Johnson said.
James Posey Fisher Sr., 35, pleaded guilty to voluntary manslaughter. Fisher faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release.
U.S. District Judge Susan P. Watters presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for July 8. Fisher was detained pending further proceedings.
The government alleged in court documents that on June 28, 2020, at the Teepee Station convenience store in Crow Agency, Fisher stabbed the victim, identified as John Doe, once in the chest. The victim died of a single stab wound before reaching the hospital. Fisher and victim were with other individuals and were drinking heavily. At some point, John Doe started teasing Fisher about a fight the previous evening, saying he had to finish what Fisher had started. Fisher and John Doe began arguing in a car that Fisher was driving and continued the argument when they got out at the convenience store. The argument turned physical. Witnesses thought it was only a fist fight until John Doe backed up suddenly, ran a short distance and collapsed. Witnesses realized John Doe had been stabbed because he was bleeding. Fisher jumped back into the car and drove away.
Assistant U.S. Attorneys Lori Harper Suek and Jeanne R. Torske and student intern, Alex Butler, are prosecuting the case, which was investigated by the FBI.
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Kyle Man Sentenced for Illegal Possession of FirearmRead the Press Release
United States Attorney Dennis R. Holmes announced that a Kyle, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on February 11, 2022, by U.S. District Judge Jeffrey L. Viken.
Ramone McBride, age 24, was sentenced to 46 months in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
McBride was indicted by a federal grand jury on June 17, 2021, and pleaded guilty on October 22, 2021. The conviction stems from McBride, a previously convicted felon who is prohibited from possessing firearms, knowingly possessing an Armi Jager, model Dakota SAA, .357 Mangum caliber, single-action revolver, which was found after McBride came into contact with law enforcement in March 2021 at Rapid City.
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.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
McBride was immediately remanded to the custody of the U.S. Marshals Service.
Kiln Man Pleads Guilty to COVID-Related Wire FraudRead the Press Release
Gulfport, Miss. – A Kiln, Mississippi man pled guilty to wire fraud related to the COVID pandemic, announced U.S. Attorney Darren LaMarca and Special Agent in Charge David Denton of Homeland Security Investigations in New Orleans.
According to court records, on August 3, 2020, Trevon S. Evans, 25, was arrested by the Hancock County Sheriff’s Office in relation to two stolen vehicles. At the time of his arrest, Evans was in possession of multiple identification cards with different names. Further investigation revealed that Evans had taken advantage of elderly neighbors by convincing them to give him their personal identifying information so that he could help them receive benefits related to the COVID pandemic. Evans then used that information to apply for unemployment insurance under the Economic Security (CARES) Act benefits in the victims’ names and had them sent to him at his residence. The benefits totaled over $7,000 and were used by Mr. Evans at casinos along the Gulf Coast.
Evans will be sentenced on June 23, 2022, and faces a maximum penalty of twenty years in prison and a $250,000 fine.
The case was investigated by Homeland Security Investigations.
The case was prosecuted by Assistant U.S. Attorney Erica Rose.
The CARES Act is a federal law enacted on March 29, 2020, 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 is the authorization that expands states’ ability to provide unemployment insurance for many workers impacted by COVID-19, including for workers who are not ordinarily eligible for unemployment insurance benefits.
Anyone with information about attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866‑720‑5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Justice Department Resolves Lawsuits with Bakersfield Doctors to Ensure Equal Access to Health Care for People with HIVRead the Press Release
FRESNO, Calif. — The Justice Department today announced that it has filed proposed consent decrees with two obstetrician-gynecologist (OB/GYN) doctors in Bakersfield, California. The decrees, which are subject to approval by the United States District Court for the Eastern District of California, resolve the department’s lawsuits, the doctors, Umaima Jamaluddin, MD, and Chibuike Enyereibe Anucha, MD, PC, under the Americans with Disabilities Act (ADA). The department sued Dr. Jamaluddin and Dr. Anucha alleging violations of the ADA based on their refusal to provide routine medical care to a patient because the patient has HIV. Title III of the ADA prohibits doctors and other health care providers from discriminating against people with disabilities, including HIV.
One lawsuit alleged that Dr. Anucha told the patient that she needed a Pap smear and refused to perform it because the patient has HIV. The other lawsuit alleged that Dr. Jamaluddin refused to allow the same patient to make an appointment for routine preventative care because the patient has HIV.
“People with HIV have the right to equal access to doctors and medical services,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department remains steadfast in our commitment to eradicate discrimination against people with HIV and combat the spread of unfounded stereotypes and misinformation.”
“Of all people, medical providers should understand that erecting barriers to basic medical care based on an individual’s HIV status is unconscionable,” said U.S. Attorney Phillip A. Talbert for the Eastern District of California. “In 2022, it should not take a federal lawsuit to break down such barriers, however, the U.S. Attorney’s Office and our partners in the Civil Rights Division stand ready to litigate to vindicate the rights of individuals with disabilities.”
Under the consent decrees, the doctors have agreed to pay a total of $75,000 to the patient ($37,500 in each case) and to pay a $5,000 civil penalty to the United States in each case. The consent decrees also require the defendants to take and provide their staff with training; implement a non-discrimination policy; and comply with record-keeping obligations, including providing regular reports to the department.
Justice Department Resolves Lawsuits to Ensure Equal Access to Health Care for People with HIVRead the Press Release
The Justice Department today announced that it has filed proposed consent decrees with two obstetrician-gynecologist (OB/GYN) doctors in Bakersfield, California. The consent decrees, which are subject to approval by the U.S. District Court for the Eastern District of California, resolve the department’s lawsuits against the doctors, Umaima Jamaluddin MD, and Chibuike Enyereibe Anucha MD, PC, under the Americans with Disabilities Act (ADA). The department sued Dr. Jamaluddin and Dr. Anucha alleging violations of the ADA based on their refusal to provide routine medical care to a patient because the patient has HIV. Title III of the ADA prohibits doctors and other health care providers from discriminating against people with disabilities, including HIV.
One lawsuit alleged that Dr. Anucha told the patient that she needed a Pap smear and refused to perform it because the patient has HIV. The other lawsuit alleged that Dr. Jamaluddin refused to allow the same patient to make an appointment for routine preventative care because the patient has HIV.
“People with HIV have the right to equal access to doctors and medical services,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department remains steadfast in our commitment to eradicate discrimination against people with HIV and combat the spread of unfounded stereotypes and misinformation.”
“Of all people, medical providers should understand that erecting barriers to basic medical care based on an individual’s HIV status is unconscionable,” said U.S. Attorney Phillip A. Talbert for the Eastern District of California. “It should not take a federal lawsuit to break down such barriers, however, the U.S. Attorney’s Office and our partners in the Civil Rights Division stand ready to litigate to vindicate the rights of individuals with disabilities.”
Under the consent decrees, the doctors have agreed to pay a total of $75,000 to the patient ($37,500 in each case) and to pay a $5,000 civil penalty to the United States in each case. The consent decrees also require the defendants to take and provide their staff with training; implement a non-discrimination policy; and comply with record-keeping obligations, including providing regular reports to the department.
These cases were handled jointly by the Disability Rights Section of the Civil Rights Division and the U.S. Attorney’s Office for the Eastern District of California. For more information on the Civil Rights Division, please visit 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 www.ada.gov/complaint.
View the Anucha consent decree here. View the Jamaluddin consent decree here.
Justice Department Announces First Director of National Cryptocurrency Enforcement TeamRead the Press Release
The Justice Department today announced the selection and appointment of Eun Young Choi to serve as the first Director of the National Cryptocurrency Enforcement Team (NCET).
Ms. Choi is a seasoned prosecutor with nearly a decade of experience within the department, and most recently served as Senior Counsel to the Deputy Attorney General. She will assume her duties full-time effective today.
“With the rapid innovation of digital assets and distributed ledger technologies, we have seen a rise in their illicit use by criminals who exploit them to fuel cyberattacks and ransomware and extortion schemes; traffic in narcotics, hacking tools and illicit contraband online; commit thefts and scams; and launder the proceeds of their crimes,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The NCET will serve as the focal point for the department’s efforts to tackle the growth of crime involving these technologies. Eun Young is an accomplished leader on cyber and cryptocurrency issues, and I am pleased that she will continue her service as the NCET’s inaugural Director, spearheading the department’s efforts in this area.”
The NCET was established to ensure the department meets the challenge posed by the criminal misuse of cryptocurrencies and digital assets, and comprises attorneys from across the department, including prosecutors with backgrounds in cryptocurrency, cybercrime, money laundering and forfeiture. The NCET will identify, investigate, support and pursue the department’s cases involving the criminal use of digital assets, with a particular focus on virtual currency exchanges, mixing and tumbling services, infrastructure providers, and other entities that are enabling the misuse of cryptocurrency and related technologies to commit or facilitate criminal activity. The NCET will set strategic priorities regarding digital asset technologies, identify areas for increased investigative and prosecutorial focus, and lead the department’s efforts to coordinate with domestic and international law enforcement partners, regulatory agencies and private industry to combat the criminal use of digital assets. Finally, the NCET will enhance the Criminal Division’s existing efforts to provide support and training to federal, state, local, and international law enforcement to build capacity to aggressively investigate and prosecute serious crimes involving cryptocurrency and digital assets in the United States and around the world.
The NCET’s work will be furthered through close collaboration with components across the department, including the Criminal Division’s Computer Crime and Intellectual Property Section and Money Laundering and Asset Recovery Section; the U.S. Attorneys’ offices; the National Security Division; and the FBI, including the FBI’s new Virtual Asset Exploitation Unit, a specialized team of cryptocurrency experts dedicated to providing analysis, support, and training across the FBI, as well as innovating its cryptocurrency tools to stay ahead of future threats.
“The department has been at the forefront of investigating and prosecuting crimes involving digital currencies since their inception,” said Director Choi. “The NCET will play a pivotal role in ensuring that as the technology surrounding digital assets grows and evolves, the department in turn accelerates and expands its efforts to combat their illicit abuse by criminals of all kinds. I am excited to lead the NCET’s incredible and talented team of attorneys, and to get to work on this important priority for the department. I would like to thank Assistant Attorney General Polite and the Criminal Division’s leadership for this opportunity.”
Prior to her service as Senior Counsel to Deputy Attorney General Lisa O. Monaco, Director Choi began her career at the department as an Assistant U.S. Attorney for the Southern District of New York, where she served as the office’s Cybercrime Coordinator and investigated and prosecuted cyber, complex fraud and money laundering crimes, with a particular focus on network intrusions, digital currency, the dark web and national security investigations. She served as lead prosecutor in a variety of cases, including the investigation of a transnational organization responsible for the hacking of J.P. Morgan Chase and a dozen other financial companies; the operation of Coin.mx, an unlicensed virtual currency exchange; and the only U.S. prosecution brought in connection with the “Panama Papers.” In addition, she successfully argued the appeal before the Second Circuit in the case against Ross Ulbricht, the founder and chief administrator of the Silk Road, the first darknet marketplace. Earlier in her career, she served as a law clerk to the Honorable Naomi Reice Buchwald of the U.S. District Court for the Southern District of New York, and the Honorable Reena Raggi of the U.S. Court of Appeals for the Second Circuit. She is a graduate of Harvard College and Harvard Law School.
Jefferson County Man Sentenced to Lengthy Prison Term for Drug TraffickingRead the Press Release
BEAUMONT, Texas – A Port Arthur man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Troy Reese, 20, pleaded guilty on May 25, 2021 to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 135 months in federal prison on Feb. 16, 2022, by U.S. District Judge Thad Heartfield.
According to information presented in court, in June and July of 2019, traffic stops revealed a group of individuals out of Port Arthur, including Reese, were conspiring with individuals in Houston to distribute methamphetamine and China White. China White is an extremely dangerous synthetic heroin tainted with chemicals similar to fentanyl. The conspiracy involved using cellular applications such as CashApp to purchase narcotics and stolen or fraudulent credit cards to purchase hotel rooms and other items used in the drug trafficking conspiracy. Reese was indicted by a federal grand jury on June 3, 2020.
The case was investigated by the Drug Enforcement Administration and the Port Arthur Police Department and prosecuted by Assistant U.S. Attorney Rachel Grove.
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Indian Trail Man Is Sentenced to 13.5 Years in Prison for Robbing A Family Dollar Store at Gun PointRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Robert J. Conrad Jr. ordered James Arden Alexander, 33, of Indian Trail, N.C., to serve 162 months in prison and two years of supervised release for robbing a Family Dollar store, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Alexander’s co-defendant, Gerran McClure, 33, of Charlotte, was previously sentenced to four years in prison and two years of supervised release.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Johnny Jennings of the Charlotte-Mecklenburg Police Department (CMPD) join U.S. Attorney King in making today’s announcement.
According to court documents and today’s sentencing hearing, on December 16, 2019, at approximately 5:15 p.m., Alexander entered the Family Dollar store located at 6716 Nations Ford Road in Charlotte. Upon entering, Alexander pointed a firearm at two customers and the store’s cashier and ordered them to get on the ground. Court records show that the victims complied and Alexander went behind the counter. He then pointed his firearm at the cashier and forced her to stand up and open the register. Alexander took cash out of the register and the store’s safe and fled the scene. Shortly thereafter, CMPD officers located Alexander and McClure in a vehicle and attempted to stop them. McClure and Alexander ignored the officers, drove recklessly, and fled into South Carolina. The South Carolina Highway Patrol continued to attempt to pull over the getaway car, and eventually were successful in stopping the vehicle on Interstate 77. Both defendants were arrested at the scene. CMPD officers recovered from the vehicle the cash taken from the Family Dollar store, a loaded firearm, and additional firearm magazines.
On April 12, 2021, Alexander pleaded guilty to robbery of a business affecting interstate commerce, or “Hobbs Act” robbery. McClure pleaded guilty to being an accessory after the fact to the Hobbs Act robbery.
Alexander is currently in federal custody and will be transferred into the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked the FBI and CMPD for their investigation of this case and the South Carolina Highway Patrol for their assistance in this case.
Assistant U.S. Attorneys Stephanie Spaugh and David Kelly of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Husband and Wife Realtor Team Plead Guilty to Wire FraudRead the Press Release
ABINGDON, Va. – A husband and wife realtor team from Abingdon, Virginia, pleaded guilty yesterday to federal wire fraud charges related to their scheme to create fake residential sales contracts in order to obtain advance sales commissions to which they were not entitled.
Jessee Allen DeLoach, 40, and Natasha Ashley Miller DeLoach, 38, both pleaded guilty yesterday to one count of wire fraud.
According to court documents, the DeLoaches owned a real estate agency called Koltown Properties, Inc., which operated in Southwest Virginia. Between March 2016 and November 2019, the defendants created at least nineteen phony residential sales contracts and submitted them to multiple advance commission companies throughout the country in order to fraudulently obtain money.
Advance commission companies provide a financial service to real estate agents by assisting them with cash flow. Specifically, real estate agents may sell portions of their pending commissions on legitimate residential sales contracts in exchange for access to cash before the closing date.
One scheme the DeLoaches used was to create entirely false sales contracts for properties they knew were either not under contract or that listed buyers and sellers who did not exist. In another scheme, the DeLoaches altered valid residential sales contracts to reflect that no other real estate agent was involved in order to double their claimed sales commissions. To further their schemes, the DeLoaches created fake title companies, including one named Excel Title Company, to validate the fraudulent contracts to the advance commission companies so they would in turn authorize commission payments to the DeLoaches.
United States Attorney Christopher R. Kavanaugh and Special Agent in Charge Stanley M. Meador of the FBI made the announcement.
Both Natasha and Jessee DeLoach pleaded guilty to one count of wire fraud and agreed to pay over $146,000 in restitution. At sentencing, the couple faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Federal Bureau of Investigation and the Virginia State Police investigated the case, with assistance from the Wise County Commonwealth Attorney’s Office.
Assistant U.S. Attorney Lena L. Busscher is prosecuting the case.
Houstonian who attempted suicide after sexual acts sent to prisonRead the Press Release
HOUSTON – A 47-year-old local man has been ordered to prison for sexually exploiting children, announced U.S. Attorney Jennifer B. Lowery.
Adam Albert Sanchez pleaded guilty July 8, 2021, to production of child pornography.
Today, U.S. District Judge Alfred Bennett sentenced Sanchez to serve 264 months in federal prison. In handing down the prison term, the court noted that the actions of Sanchez have altered the minor victim’s life forever. He added that it will impact all of her relationships going forward and how she raises her children if she ever decides to become a parent. Sanchez was further ordered to pay $3,000 in restitution to the victim and will serve 20 years on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.
In February 2020, authorities encountered minor female online as part of an unrelated investigation. Realizing her young age, law enforcement told her to report any inappropriate conduct she had experienced with any adults online to her parents and authorities. They were eventually able to locate the victim’s family and contacted them.
The investigation revealed Sanchez had picked her up near her home in Cypress and took her to a nearby hotel. At that location, he engaged in sexual intercourse with her and recorded it.
When law enforcement examined the minor’s phone, they found images in a hidden album. The images were also located on Sanchez’s phone. They showed him engaging in oral sex with her along with other sexual acts.
Sanchez learned authorities had visited the victim’s home and asked her to delete everything from her phone. Shortly thereafter, he attempted to take his own life and was admitted to a residential treatment facility.
Sanchez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation.
Assistant U.S. Attorney Sherri L. Zack is prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Gulfport Man Pleads Guilty to Gun OffenseRead the Press Release
Gulfport, Miss. – A Gulfport man pleaded guilty to being an unlawful user of a controlled substance in possession of a firearm, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Brad Byerley of the Drug Enforcement Administration.
According to court documents and information presented to the Court, on October 23, 2021, Booker Timothy Jackson, 45, was stopped for a traffic violation by officers working with the Gulfport Police Department. Officers searched the vehicle and located suspected methamphetamine, suspected marijuana, cocaine residue, and a 9mm pistol. Jackson was taken into custody and admitted to selling narcotics to support his drug addiction.
On November 6, 2021, Jackson was stopped again. This time officers found a stolen firearm in his possession. Jackson admitted that he purchased the gun. He also admitted to smoking cocaine multiple times a week.
Jackson is scheduled to be sentenced on May 19, 2022. He faces a maximum sentence of 10 years in prison.
The DEA and Gulfport Police Department investigated the case.
Assistant U.S. Attorney Jonathan Buckner 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.
Gulfport Man Pleads Guilty to Being a Felon in Possession of a FirearmRead the Press Release
Gulfport, Miss. – A Gulfport man pleaded guilty to being a felon in possession of a firearm, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Brad Byerley of the Drug Enforcement Administration.
According to court documents and information presented to the Court, on December 4, 2021, Adrin Maurice Murphy, 27, was stopped for a traffic violation by officers working with the Gulfport Police Department. Officers searched the vehicle and located marijuana, packaged for resale, and a Glock Model 27 handgun. Murphy was taken into custody and admitted to possession of the marijuana and the handgun. Murphy had two prior felony convictions.
Murphy is scheduled to be sentenced on May 19, 2022. He faces a maximum sentence of 10 years imprisonment. However, if he is determined to be an armed career criminal, he faces from 15 years to life imprisonment.
The DEA and Gulfport Police Department investigated the case.
Assistant U.S. Attorney Jonathan Buckner 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.
Guatemalan National is Extradited on International Cocaine Trafficking and Maritime Smuggling ChargesRead the Press Release
Assistant U.S. Attorney Kevin Mokhtari (619) 546-8402
NEWS RELEASE SUMMARY – February 17, 2022
SAN DIEGO – Suspected drug trafficker Rafael Orlando Ramirez Barillas, a Guatemalan national who was extradited to the United States from Guatemala on Thursday, February 10, 2022 to face international cocaine trafficking and maritime smuggling charges in the Southern District of California, appeared in federal court today and was ordered detained pending trial.
Ramirez Barillas, aka “Thor,” is charged in an indictment stemming from a long-term joint investigation led by Homeland Security Investigations and the Drug Enforcement Administration in conjunction with the U.S. Attorney’s Office in San Diego.
Ramirez Barillas is charged with operating a conspiracy to distribute five kilograms and more of cocaine in Colombia, Ecuador, Guatemala, Costa Rica, El Salvador, Mexico and elsewhere, knowing and intending that the cocaine would be unlawfully imported into the United States. Ramirez Barillas is also charged with being in a conspiracy to distribute five kilograms and more of cocaine on board a vessel.
Ramirez Barillas made his initial court appearance on Friday, February 11, 2022 in San Diego before U.S. Magistrate Judge Bernard G. Skomal. This afternoon, U.S. Magistrate Judge Skomal ordered Ramirez Barillas detained pending trial.
According to court documents and statements made by prosecutors at today’s hearing, Ramirez Barillas was alleged to be the partner of convicted Guatemalan drug trafficker Luis Carlos Melgar-Morales, aka “Aquaman,” who admitted to distributing over 10,000 kilograms of cocaine during an approximately two-year conspiracy. Ramirez Barillas was described as an organizer and leader in the conspiracy to distribute cocaine in Guatemala and several other South and Central American countries. As part of the conspiracy, and as alleged in the indictment and set forth in other public documents, Ramirez Barillas and his co-conspirators coordinated the smuggling of multi-ton quantities of cocaine from South America to Guatemala with an ultimate destination of the United States.
During the investigation, the United States Coast Guard made multiple seizures of cocaine from vessels on international waters that were linked to Ramirez Barillas and his co-conspirators. According to the indictment, the conspiracy began on a date unknown and continued up to and including November 2018.
On July 17, 2021, Ramirez Barillas was arrested in Guatemala pursuant to an extradition request from the United States. Guatemala subsequently granted his extradition, and on February 10, 2022, Ramirez Barillas was extradited to United States.
“This office is committed to aggressively pursuing drug traffickers in Central America who use international waters as a corridor to smuggle cocaine to the United States,” said U.S. Attorney Randy Grossman. “This extradition marks the culmination of years of efforts by agents and prosecutors to keep those who flood the United States with cocaine accountable for their actions.” Grossman thanked the prosecution team and law enforcement agencies for their excellent work on this case.
“This extradition demonstrates the need to continue to work together with our foreign partners to disrupt drug trafficking,” said Chad Plantz, Special Agent in Charge for HSI San Diego. “This effort also resulted in significant seizures of the transnational criminal organization’s narcotics, firearms, and illicit proceeds, and led to the identification of additional high-ranking members. HSI will remain committed in our investigative efforts to bring additional members of this organization to justice.”
“This case, including last week’s extradition, demonstrates the success DEA and our law enforcement partners have had targeting foreign drug sources of supply,” said DEA Special Agent in Charge Shelly S. Howe. “DEA will continue to seize large quantities of drugs before they reach our shores and devastate our communities. Our strong relationships with our foreign counterparts allow us to bring drug suppliers to justice in the United States.”
“This indictment resulted from our collaborative efforts to disrupt transnational criminal organizations and prevent illicit drugs from making their way to the United States,” said Rear Adm. Brian Penoyer, the Eleventh Coast Guard District commander. “I am grateful for the hard work of the dedicated women and men of the Department of Justice and the Southern District of California who built this case alongside Coast Guard ships and crews involved in several interdiction cases in the Eastern Pacific Ocean, dismantling smuggling organizations, putting smugglers behind bars and keeping drugs off our streets. I hope our Coast Guard crews conducting counterdrug patrols today in the Pacific Ocean see the effects of this monumental occasion. I cannot thank the Southern District of California enough for their efforts to ensure justice is served to those seeking to harm our country.”
The Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest and extradition of Ramirez Barillas.
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.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
DEFENDANT
Case Number 18cr4696-DMS
Rafael Orlando Ramirez Barillas Age: 32 Guatemala City, Guatemala
aka “Thor,” aka “Rafa”
SUMMARY OF CHARGES
International Conspiracy to Distribute Controlled Substances – Title 21, U.S.C., Section 959, 960, 963
Criminal Forfeiture – Title 21, U.S.C., Section 853Maximum Penalty: Life in prison and $10 million fine
Conspiracy to Distribute Cocaine on Board a Vessel Subject to the Jurisdiction of the United States –
Title 46, U.S.C., Sections 70503, 70506(b)
Criminal Forfeiture – Title 46, U.S.C., Section 70507(a)
Maximum Penalty: Life in prison and $10 million fineAGENCIES
Homeland Security Investigations (HSI)
Drug Enforcement Administration (DEA)
Customs and Border Protection (CBP)
U.S. Coast Guard
HSI Attaché Guatemala City, Guatemala
HSI Attaché Mexico City Mexico
Department of Justice, Office of International Affairs
Department of Justice, Office of Enforcement Operations
Department of Justice, Organized Crime and Drug Enforcement Task Force (OCDETF)
Joint Task Force-Investigations (JTF-I)
Joint Interagency Task Force-South (JIATF-S)
Greenville Felon Sentenced to Prison for Firearm PossessionRead the Press Release
Oxford, Mississippi – A Greenville man was sentenced today to over 3 years in prison for possession of a firearm by a convicted felon.
According to court documents, Kordarial Hughes aka “Yao Ming”, 33, of Greenville, Mississippi, plead guilty to possession of a firearm by a convicted felon. He was sentenced by U.S. District Court Judge Michael P. Mills to serve 40 months in prison, followed by 3 years of supervised release. Hughes, who was detained pending trial, was remanded into custody of the U.S. Marshals following sentencing.
“The prosecution of individuals who illegally possess and use firearms is a continued priority for this office,” stated U.S. Attorney Clay Joyner. “We will continue to work alongside our local, state and federal law enforcement partners to ensure that those who commit gun-related crimes are held accountable.”
FBI Special Agent in Charge Jermicha Fomby also commented on the sentence, stating “Getting guns out of the hands of felons and off the streets is one of our top priorities. The FBI is committed to working hand-in-hand with our state and local partners to ensure violent criminals are held accountable and brought to justice. We will continue to work diligently to keep the citizens of Mississippi safe.”
The FBI and the Greenville Police Department investigated the case. The case was prosecuted by AUSA Robert Mims.
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.
Grant County man sentenced for meth chargeRead the Press Release
ELKINS, WEST VIRGINIA – Justin Arthur See, of Cabins, West Virginia, was sentenced today to 96 months of incarceration for a methamphetamine charge, United States Attorney William Ihlenfeld announced.
See, 42, pleaded guilty in April 2021 to one count of “Possession with Intent to Distribute Methamphetamine.” See admitted to having more than 50 grams of methamphetamine in February 2019 in Grant County.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. Potomac Highlands Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The task force consists of the FBI, West Virginia State Police, the Mineral County Sheriff’s Office, the Hampshire County Sheriff’s Office, the Grant County Sheriff’s Office, and the Keyser Police Department.
U.S. District Judge Thomas S. Kleeh presided.
Grand Jury Returns Two 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.
Madison Man Charged with Drug & Gun Crimes
Keante K. Gunn, 31, Madison, Wisconsin, is charged with one count of distributing heroin and crack cocaine, two counts of distributing heroin, fentanyl, and crack cocaine, one count of distributing fentanyl and crack cocaine, and one count of possessing heroin, fentanyl, crack cocaine, and methamphetamine with the intent to distribute. The indictment charges that the distributions occurred in April 2021 and that he possessed heroin, fentanyl, crack cocaine, and methamphetamine for distribution on June 16, 2021.
The indictment also charges Gunn with being a felon in possession of a firearm and ammunition. It alleges that on June 16, 2021, he possessed a 9mm handgun and ammunition.
If convicted, Gunn faces a maximum penalty of 20 years in federal prison on each of the drug counts and a maximum of 10 years on the gun count. The charges against him are the result of an investigation by the Madison Police Department, Dane County Narcotics Task Force, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Steven Anderson is handling the prosecution.
Marquette County Man Charged with Gun Crime
Charles Leofilos, 34, Oxford, Wisconsin, is charged with being a felon in possession of a firearm. The indictment alleges that on March 15, 2021, he possessed a Taurus handgun.
If convicted, Leofilos faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the La Crosse Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Taylor Kraus is handling the prosecution.
The indictments charging Gunn and Leofilos have been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition, and violent crimes and drug crimes that involve the use of firearms.
Glenwood Woman Sentenced to Prison for Methamphetamine OffenseRead the Press Release
COUNCIL BLUFFS, IA – Sarah Diane Adams, age 36, of Glenwood, was sentenced February 14, 2022, to 78 months in prison for Conspiracy to Distribute Methamphetamine. Her term of imprisonment will be followed by five years of supervised release. According to court documents, Adams pleaded guilty to the methamphetamine offense in January of 2021. Her co-defendant, Joshua Matthew St. John was sentenced to 132 months in prison on December 17, 2021.
An initial law enforcement investigation revealed Adams lived with St. John in April of 2020 at a residence in Glenwood and they sold methamphetamine. On April 2, 2020, a confidential source made arrangements with St. John to purchase a quarter pound of methamphetamine. The confidential source traveled to St. John’s residence in Glenwood and was then directed by Adams to a stash house location. The quarter pound requested by the confidential source was removed from a larger bag containing methamphetamine and delivered by Adams to the confidential source. On April 24, 2020, the confidential source met St. John in Glenwood to purchase additional methamphetamine and reported seeing a large quantity of methamphetamine inside Adam’s residence. Law enforcement executed a search warrant on Adam’s residence and recovered approximately a half pound of methamphetamine and distribution paraphernalia.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Iowa Division of Narcotics Enforcement, Council Bluffs Police Department, Pottawattamie County Sheriff’s Office, Mills County Sheriff’s Office, and Glenwood Police Department investigated the case. This case was prosecuted by the United States Attorney’s Offices for the Southern District of Iowa.
Founder and Former Chief Investment Officer of New York Based Investment Adviser Charged with Securities Fraud and Obstruction of JusticeRead the Press Release
Damian Williams, United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced that JAMES VELISSARIS, the founder and former chief investment officer of Infinity Q Capital Management (“Infinity Q”), a New York based investment adviser that ran a mutual fund and a hedge fund that purported to have approximately $3 billion in assets under management, was charged with securities fraud and obstruction of justice for orchestrating a scheme to lie to investors and falsify documents. VELISSARIS made false and misleading statements to investors and others concerning Infinity Q’s process for valuing certain over-the-counter (“OTC”) derivative positions that made up a substantial portion of the holdings of the mutual and hedge funds, and also fraudulently mismarked those securities in ways that did not reflect their fair value. VELISSARIS committed the mismarking scheme in order to inflate the value of the investment funds as reported to investors, to attract and retain capital, and to increase his own compensation. In order to avoid detection of the scheme, VELISSARIS provided both Infinity Q’s auditor and the Securities and Exchange Commission (“SEC”) with falsified or altered documents, including providing the auditor with altered term sheets that served to provide fabricated support for the fraudulently inflated values. VELISSARIS surrendered to FBI agents in Atlanta, Georgia this morning and is expected to be presented later today.
U.S. Attorney Damian Williams said: “As alleged, James Velissaris violated his obligation to put the interests of his investors before his own profits. In order to attract and retain investments in the funds that he operated, Velissaris lied about the independence of the process that he used to value fund assets, and he manipulated that process to convince investors that the funds were performing much better than they were. He then tried to cover his tracks by submitting fabricated or altered documents to the funds’ auditor and the SEC. This case further demonstrates the Office’s continued commitment to stamping out financial fraud, whether it be in private funds or the public markets.”
FBI Assistant Director Michael J. Driscoll said: "Investment fraud schemes may seem like a tried and true way to get rich quick, but the perpetrators are often too confident in their abilities to hide their illegal activity from investigators. As was the case with Velissaris, the truth caught up with him, and his alleged lies were exposed. Today he faces the consequences of his actions."
According to the allegations contained in a six-count Indictment unsealed today in Federal court and other publicly-available information:[1]
Background
VELISSARIS was the founder and chief investment officer of Infinity Q, an investment adviser that ran both a mutual fund (the “Mutual Fund”), started in about 2014, and a hedge fund (the “Hedge Fund,” and collectively the “Investment Funds”), started in about 2017. As of 2021, the two funds purported to have approximately $3 billion in assets under management. Infinity Q was headquartered in New York, New York, and employed a small staff including a chief compliance and chief risk officer (“Employee-1”).
A major component of both the Mutual Fund and the Hedge Fund’s holdings were over-the-counter (“OTC”) derivative positions that involved customized contracts that allowed the counterparties to take positions on the volatility, or price movement, of underlying assets or indices. VELISSARIS, through Infinity Q, represented to its investors that it valued these OTC derivative positions based on fair value, and that in order to do so, it utilized the services of an independent third-party provider. In particular, Infinity Q represented to investors and other stakeholders that it used Bloomberg Valuations Service (“BVAL”) to independently calculate the fair value of these positions, in accordance with the terms of the underlying derivative contracts. These OTC derivative positions comprised hundreds of millions of dollars of the Investment Funds’ portfolios.
Velissaris’ Scheme to Lie to Investors and Inflate Derivative Swap Positions
In fact, however, VELISSARIS defrauded Infinity Q’s investors by taking an active role in the valuation of Infinity Q’s positions, and by modeling the positions in ways that were not based on the actual terms of the underlying contracts and were inconsistent with fair value. VELISSARIS’ input into the BVAL valuation process was inconsistent with Infinity Q’s representations about the independence of the process and allowed VELISSARIS to fraudulently mismark positions in BVAL. VELISSARS engaged in the mismarking of positions in BVAL by making false entries in BVAL’s system including by secretly altering the computer code employed by BVAL that caused BVAL to alter and disregard certain critical terms. Altering and disregarding terms in this fashion caused BVAL to report values that were artificially inflated and, often, much higher than fair value.
By manipulating OTC derivative positions in BVAL in this way, VELISSARIS caused numerous positions in the Investment Funds to have anomalous and, at times, impossible valuations. For example, at times, VELISSARIS made manipulations in either the Mutual Fund and/or the Hedge Fund that caused certain identical positions that were held by both the Mutual Fund and the Hedge Fund (namely, a position where all the material terms are the same) to have substantially divergent values. In other cases, some of VELISSARIS’ manipulations caused certain positions held by the Investment Funds to have impossible values, such as where under the true terms of the swap, the value adopted by VELISSARIS could only be true if volatility were negative – a condition which is mathematically impossible.
Ultimately, after VELISSARIS’ mismarking scheme was uncovered in or about February 2021, Infinity Q liquidated the Investment Funds and sold its OTC derivative positions. These positions were sold for hundreds of millions of dollars less than their purported market values in BVAL thereby resulting in substantial losses to the investors in the Investment Funds.
Velissaris Lies to Auditors and Obstructs the SEC’s Investigation
In order to hide this scheme and prevent its detection, VELISSARIS lied to numerous outside stakeholders and regulators. First, in order to prevent Infinity Q’s outside auditor (the “Auditor”) from discovering the fraud VELISSARIS provided the Auditor with falsified term sheets from counterparties that he had altered to change the true terms of certain OTC derivative positions. In particular, in connection with a number of audits, the Auditor selected certain OTC positions that it would independently value in order to confirm the reasonableness of Infinity Q’s values from BVAL. In order to ensure that the Auditor would not arrive at materially different results when independently valuing positions that VELISSARIS had manipulated in BVAL, VELISSARIS altered the terms of certain deal documents and provided them to the Auditor. After receiving these falsified documents and relying on them in its independent evaluation, the Auditor confirmed the reasonableness of VELISSARIS’ valuations in BVAL.
Furthermore, beginning in May 2020, the SEC opened an inquiry and later an investigation into Infinity Q’s valuation practices. In connection with that investigation, VELISSARIS provided false and misleading information to the SEC. For example, when the SEC asked for original documents that had been provided to investors, VELISSARIS altered the documents before providing them to the SEC, including certain alterations that would help hide his mismarking scheme. For example, Infinity Q’s original investor materials stated that “[o]nce a price is established for a portfolio security, it shall be used for all Funds that hold the security.” As explained above, this was untrue and on numerous occasions, manipulations in BVAL made by VELISSARIS caused the same positions in the Mutual Fund and the Hedge Fund to have substantially different values. To conceal the falsity of Infinity Q’s disclosures, VELISSARIS along with Employee-1 removed this line from investor documents that were provided to the SEC.
In June 2020, the SEC requested that Infinity Q provide additional materials, including documents regarding Infinity Q’s valuation committee and all of its meeting minutes. Infinity Q’s investor materials had represented that Infinity Q had a valuation committee, including VELISSARIS, that the committee would meet monthly or more often, and that VELISSARIS would be responsible for preparing minutes of such meetings. In fact, however, VELISSARIS had not kept notes of any such meetings. Accordingly, days before responding to the SEC, VELISSARIS made up notes purporting to be from valuation committee meetings in 2019 and 2020 and submitted them to the SEC.
* * *
VELISSARIS, 37, of Atlanta, Georgia, is charged with securities fraud, wire fraud, lying to auditors, and obstruction of justice, each of which carries a maximum sentence of 20 years in prison; and investment adviser fraud and conspiracy to obstruct justice, each of which carries a maximum sentence of 5 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the work of the Federal Bureau of Investigation. He further thanked the Securities and Exchange Commission and the Commodity Futures Trading Commission for their cooperation and assistance in this investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Daniel Loss and Daniel Tracer are in charge of the prosecution.
[1]As the introductory phrase signifies, the entirety of the text of the Indictments and the description of the Indictments set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
Fort Thompson Woman Sentenced for Assaulting a Federal OfficerRead the Press Release
United States Attorney Dennis Holmes announced that a Fort Thompson, South Dakota, woman convicted of Assaulting, Resisting, and Impeding a Federal Officer was sentenced on February 14, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Jennifer Surrounded, age 36, was sentenced to 22 months in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Surrounded was indicted by a federal grand jury on March 9, 2021. She pled guilty on November 16, 2021.
The conviction stemmed from an incident that occurred on February 12, 2021, in Fort Thompson. Surrounded assaulted an officer with a knife while the officer was engaged in the performance of his official duties.
This case was investigated by the Bureau of Indian Affairs – Office of Justice Services, Crow Creek Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Surrounded was immediately turned over to the custody of the U.S. Marshals Service.
Fort Thompson Man Sentenced for Domestic Assault by an Habitual OffenderRead the Press Release
United States Attorney Dennis Holmes announced that a Fort Thompson, South Dakota, man convicted of Domestic Assault by an Habitual Offender was sentenced on February 14, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Richard Coleman, Jr., age 34, was sentenced to sixteen months in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Coleman was indicted by a federal grand jury on October 14, 2020. He pled guilty on November 2, 2021.
The conviction stemmed from an incident that occurred on July 22, 2020, in Fort Thompson, in which Coleman threw a can at his significant other, striking her in the chest. At the time of the domestic assault, Coleman had at least two prior convictions for offenses that would have been, if subject to federal jurisdiction, an assault against a spouse or intimate partner.
This case was investigated by the Bureau of Indian Affairs – Office of Justice Services, Crow Creek Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Coleman was immediately turned over to the custody of the U.S. Marshals Service.