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Friday 17 December 2021
Lexington Man Sentenced to 322 Months for Armed Fentanyl and Methamphetamine TraffickingRead the Press Release
LEXINGTON, Ky.— A Lexington man, Robert W. Bledsoe, 57, was sentenced to 322 months in federal prison on Friday, by Chief U.S. District Judge Danny C. Reeves, after pleading guilty to possession with intent to distribute 40 grams or more of fentanyl, possession with intent to distribute 50 grams or more of methamphetamine, possession of firearm in furtherance of drug trafficking and possession of a firearm by a convicted felon.
According to Bledsoe’s plea agreement, in September 2020, law enforcement received information that he was trafficking narcotics from his residence. After an investigation, law enforcement went to Bledsoe’s residence to serve a search warrant and found him in possession of a pistol, 76 grams of heroin, and 147 grams of methamphetamine. Subsequently, officers also located another firearm, ammunition, drug trafficking paraphernalia, and a debt ledger. Bledsoe further admitted that he was a convicted felon and was prohibited from owning a firearm.
Bledsoe was previously convicted of trafficking a controlled substance first degree, in the Fayette Circuit Court and of conspiracy to distribute oxycodone, in the U.S. District Court for the Eastern District of Kentucky.
Bledsoe pleaded guilty to the current charges in August 2021.
Under federal law, Bledsoe must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for eight years.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; and Chief Lawrence Weathers, Lexington Police Department, jointly announced the sentence.
The investigation was conducted by the ATF and Lexington Police Department. The United States was represented by Assistant U.S. Attorney Cynthia Rieker.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Lebanon County Man Sentenced to 210 Months’ Imprisonment for Drug Trafficking and Firearm OffensesRead the Press Release
HARRISBURG -The United States Attorney’s Office for the Middle District of Pennsylvania announced today that James Larnerd, age 48, of North Cornwall Township, Lebanon County, was sentenced to 210 months’ imprisonment by U.S. District Court Judge Jennifer P. Wilson for drug trafficking and firearm offenses.
According to United States Attorney John C. Gurganus, Larnerd was convicted on March 24, 2021, following a trial by jury of distributing methamphetamine, possession of a firearms by a prohibited person, and using or maintaining drug premises. Evidence at trial showed that during the execution of a search warrant at Larnerd’s North Cornwall Township residence on June 4, 2019, law enforcement recovered methamphetamine, drug distribution materials, and two loaded handguns. Several witnesses gave testimony at trial detailing the drug trafficking activity at Larnerd’s home.
The case was investigated by the North Cornwall Township Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Johnny Baer prosecuted 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.
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Las Cruces man convicted of federal firearms, narcotics offensesRead the Press Release
ALBUQUERQUE, N.M. – A federal jury returned a guilty verdict on Dec. 16 in the trial of Paul Michael Astorga, 35, of Las Cruces, New Mexico, on one count each of being a felon in possession of a firearm and ammunition, possession with intent to distribute a controlled substance and possession of a firearm in furtherance of a drug trafficking crime. Astorga will remain in custody pending sentencing, which has not been scheduled.
According to an indictment and other court records, on Nov. 3, 2020, Astorga was found in possession of a firearm and fentanyl. At the time of his arrest, Astorga was subject to an active warrant for his arrest for a violation of the terms of his supervised release for a 2014 conviction of being a felon in possession of a firearm. A search of his residence resulted in the recovery of a loaded 9mm handgun and 66 pills containing fentanyl.
Astorga was previously convicted of multiple felonies, including robbery, possession of a controlled substance, tampering with evidence, trafficking by possession with intent to distribute, and being a felon in possession of a firearm and ammunition. As a previously convicted felon, Astorga could not legally possess a firearm or ammunition.
Astorga faces an anticipated sentencing range of 1 to 12 and a half years in prison with a mandatory five-year sentence to be served consecutively for possession of a firearm in furtherance of a drug trafficking crime.
The FBI, United States Marshals Service and Las Cruces Police Department Metro Narcotics Taskforce investigated this case. Assistant United States Attorneys Maria Y. Armijo and Joni Autrey Stahl are prosecuting the case.
Laplace Woman Pleads Guilty to Violations of the Federal Controlled Substances Act and InterstateRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that TRACY MORGAN, age 51, a resident of LaPlace, Louisiana, pleaded guilty on December 16, 2021 to a Two Count Superseding Bill of Information. In Count One, MORGAN pled guilty to conspiracy to distribute and possess with the intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of cocaine hydrochloride. In Count Two, MORGAN pled guilty to interstate and foreign travel or transportation in aid of racketeering.
According to court documents, in August 2019, on behalf of co-conspirator Ellis Batiste, Sr., MORGAN transported money from Louisiana to Texas to pay for 10 kilograms of cocaine hydrochloride, which she then transported to Louisiana where she was subsequently stopped and arrested by law enforcement.
The Honorable District Court Judge Mary Ann Vial Lemmon will sentence MORGAN on March 17, 2022. In Count One, MORGAN faces a mandatory minimum term of imprisonment of five years and a maximum of forty years imprisonment, a fine of up to $5,000,000.00, a period of supervised release of at least four years, and a mandatory special assessment fee of $100.00. For Count Two, MORGAN faces a maximum sentence of up to four years imprisonment, a fine up to $250,000.00, a period of supervised release up to five years, and a mandatory special assessment fee of $100.00.
The case was investigated by the U.S. Drug Enforcement Administration and the St. John the Baptist Parish Sheriff’s Office. Assistant United States Attorney Bayonle Osundare is prosecuting the matter.
Laplace Man Pleads Guilty to Violations of the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that OCTAVIUS NARCISSE, age 54, a resident of LaPlace, Louisiana, pleaded guilty on December 16, 2021 to a Superseding Bill of Information. In Count One, NARCISSE pled guilty to possession with the intent to distribute a quantity of a mixture and substance containing a quantity of N-phenyl-N-[1-(2-phenylethyl)-4-piperidinyl] (fentanyl) and cocaine hydrochloride. In Count Two, NARCISSE pled guilty to knowingly and intentionally using a telephone in committing, causing, and facilitating the commission of the violation in Count One.
According to court documents, in April 2019, NARCISSE was stopped and arrested by law enforcement shortly after picking up 1.015 kilograms of N-phenyl-N-[1-(2-phenylethyl)-4-piperidinyl] propenamide (fentanyl) and 4.995 kilograms of cocaine hydrocholoride on behalf of co-conspirator, Ellis Batiste, Sr.
The Honorable District Court Judge Mary Ann Vial Lemmon will sentence NARCISSE on March 17, 2022. In Count One, NARCISSE faces a maximum sentence of up to twenty (20) years of imprisonment, a fine up to $1,000,000.00, a period of supervised release not less than three years, and a mandatory special assessment fee of $100.00. In Count Two, NARCISSE faces a maximum sentence of up to four (4) years imprisonment, a fine up to $250,000.00, a period of supervised release up to one year, and a mandatory special assessment fee of $100.00.
The case was investigated by the U.S. Drug Enforcement Administration and the St. John the Baptist Parish Sheriff’s Office. Assistant United States Attorney Bayonle Osundare is prosecuting the matter.
Jury convicts gang member of methamphetamine trafficking conspiracy and attempt offensesRead the Press Release
ATLANTA - A federal jury has convicted Antonio Jamar Laster of conspiring and attempting to traffic methamphetamine sourced from a cartel-connected stash house hidden in plain sight in the north Atlanta suburbs.
“Methamphetamine abuse ravages our society by destroying lives and fueling violence,” said U.S. Attorney Kurt R. Erskine. “We are grateful to our federal and state law enforcement partners who strive to eliminate this scourge by targeting the transnational trafficking organizations that profit from poisoning our community.”
“Stopping traffickers like Laster, who flood our streets with their poison, not only prevents the flow of dangerous drugs into our communities, it also prevents the crime and violence associated with drug activity,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama.
“Months of investigation led to a large amount of dangerous drugs taken off the street. The GBI works collaboratively with federal, state, and local law enforcement to identify and eliminate gang activity and make communities safer,” said Vic Reynolds, Director, Georgia Bureau of Investigation.
According to U.S. Attorney Erskine, the charges and other information presented in court: On October 9, 2020, Antonio Jamar Laster drove to a shopping center in Woodstock, Georgia to purchase three kilograms of methamphetamine from couriers working at the behest of the notoriously violent Cártel de Jalisco Nueva Generación (“CJNG”) Mexican drug cartel. The couriers, after replenishing their drug supply from a single-family home in Marietta that was being utilized as a drug distribution hub and storage location, met Laster. Laster had concealed $21,100 in cash inside a Wendy’s fast-food bag to purchase the narcotics.
Agents from Homeland Security Investigations (HSI) and the Georgia Bureau of Investigation (GBI) were actively monitoring the Marietta stash house and awaiting the issuance of a search warrant when they saw the couriers depart for the shopping center to meet Laster. Some agents followed the couriers while others stayed behind to search the home.
At the shopping center, agents interdicted the methamphetamine and arrested Laster, the two couriers, and a third cartel associate before any drugs or money exchanged hands. A criminal history check revealed that Laster was a member of the Gangster Disciples who served a prison term in Tennessee for aggravated robbery. At the stash house, agents recovered more than 100 kilograms of crystal methamphetamine and several pounds of liquid methamphetamine.
The three men arrested with Laster pleaded guilty on March 9, 2021 to conspiring to possess methamphetamine with intent to distribute. Laster elected to proceed to trial. On December 16, 2021, a jury found Laster guilty of conspiracy to possess a controlled substance with intent to distribute and attempted possession of a controlled substance with intent to distribute.
Sentencing for Antonio Jamar Laster, 31, of Nashville, Tennessee, is scheduled for March 16, 2022, at 2:00 p.m. before U.S. District Judge Steven D. Grimberg.
This case is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Georgia Bureau of Investigation with assistance from the Cherokee Multi-Agency Narcotics Squad.
Assistant U.S. Attorneys Theodore S. Hertzberg and Noah R. Schechtman are prosecuting the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Jury Finds Convicted Felon Guilty of Possessing AmmunitionRead the Press Release
Tampa, Florida – A federal jury has found Victor Ricardo Grant (39, Brandon) guilty of possession of ammunition by a convicted felon. Grant faces a minimum mandatory sentence of 15 years, and up to, life in federal prison. His sentencing hearing is scheduled for March 4, 2022.
Grant was initially indicted on February 4, 2020, and a superseding indictment was filed on September 28, 2021.
According to testimony presented at trial, federal agents, along with Florida local law enforcement agencies, investigated a series of credit union robberies and carjackings committed in Hillsborough County and Pinellas County in 2019. As part of the investigation, the FBI obtained a search warrant for Grant’s residence in Brandon, Florida. The Hillsborough County Sheriff’s Office and federal investigators searched Grant’s home on January 22, 2020, and found approximately 400 rounds of 7.62 caliber ammunition inside backpacks in Grant’s bedroom closet and in the attic. All of the ammunition in the backpack in the attic was loaded in magazine clips for an AK-47 assault rifle; that backpack also contained ammunition drum magazines for that type of rifle. Because of his several prior felony offense convictions, federal law prohibits Grant from possessing ammunition.
This case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Hillsborough County Sheriff’s Office, the Florida Department of Law Enforcement, the Pinellas County Sheriff’s Office, the Pinellas Park Police Department, the St. Petersburg Police Department, and the Clearwater Police Department. It is being prosecuted by Assistant United States Attorneys Michael Sinacore and Diego Novaes.
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.
Jury Convicts Marijuana Trafficker of Drug-Related MurderRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted an Alexandria man yesterday of murdering another man in retaliation for robbing him of an ounce of marijuana, and trying to convince a witness to lie for him to cover it up.
According to court documents and evidence presented at trial, Melvin Palma Flores, 20, was a marijuana dealer who carried firearms for protection while dealing drugs. On October 25, 2019, the victim, X.B., arranged for his two associates to purchase marijuana from Palma Flores. In reality, X.B. intended for his associates to rob Palma Flores. When the associates showed up to Palma Flores’s home in Alexandria, one of them stole the marijuana from Palma Flores and brought it back to X.B.
Palma Flores then planned his retaliation against X.B. for setting up the robbery. Palma Flores, who was carrying a firearm, met with two of his associates and traveled to X.B.’s apartment complex in Alexandria. X.B., who was unarmed, was sitting on the staircase outside of his apartment. Palma Flores discharged his firearm multiple times, striking X.B. in the right arm and in the top of the head, causing X.B.’s death.
Following his arrest in February of 2020, Palama Flores wrote a letter to his girlfriend instructing her to lie about the events that occurred on the night of the murder and to influence others to lie about the incident to law enforcement.
Palma Flores was convicted of murder by firearm in relation to drug trafficking, possession with intent to distribute marijuana, and witness tampering and is scheduled to be sentenced on June 29, 2022. He faces a maximum term of life in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Kevin Davis, Fairfax County Chief of Police; and Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division, made the announcement after U.S. District Judge Rossie D. Alston, Jr. accepted the verdict.
Assistant U.S. Attorneys Michael P. Ben’Ary and Katherine E. Rumbaugh are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-142.
Jury Convicts Former Tallahassee Federal Correctional Officer of Sexual Abuse of InmateRead the Press Release
TALLAHASSEE, FLORIDA – A federal jury in Tallahassee convicted Jimmy Lee Highsmith, 42, of Marianna, on one count of sexual abuse of a ward while on duty at the Federal Correctional Institution in Tallahassee. The guilty verdict, returned yesterday afternoon, at the conclusion of a three-day trial, was announced by Jason R. Coody, Acting United States Attorney for the Northern District of Florida.
Evidence introduced at trial revealed that Highsmith abused his authority as a correctional officer to engage in sexual acts with an inmate on various occasions. The jury received testimony and exhibits showing that between March and April 2014, Highsmith ordered a female inmate at Federal Correctional Institution Tallahassee to meet him in his office and the officers’ bathroom to engage in illicit sexual acts. Surveillance video footage confirmed that, on April 30, 2014, Highsmith and his victim were caught by other inmates engaging in sexual acts between 11:30 p.m. and midnight in his office. The victim disclosed the illicit sex acts the next day and was taken to Tallahassee Memorial Hospital where a sexual assault examination confirmed injuries resulting from sexual activity.
“The sexual abuse of inmates by federal correctional officers is intolerable,” said Acting U.S. Attorney Coody. “Those sentenced to prison are to atone for their crimes and gain skills that will enable them to return as productive members of society. They should not be preyed upon by officers who violate their oath of office. This office will vigorously investigate and prosecute any officer who engages in such acts of abuse to the fullest extent of the law.”
“Today, Highsmith was brought to justice for abusing his authority and sexually assaulting an inmate under his supervision. The Department of Justice Office of the Inspector General will continue to investigate anyone who engages in this type of conduct,” said James F. Boyersmith, Special Agent in Charge of the Department of Justice Office of the Inspector General Miami Field Office.
Highsmith faces a maximum term of fifteen years’ imprisonment, a $250,000 fine, and five years to life on supervised release. As a result of this conviction, Highsmith is required by law to register as a sex offender.
This conviction was the result of an investigation by the Department of Justice Office of Inspector General. Assistant United States Attorneys David L. Goldberg and Lazaro P. Fields are prosecuting the case.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Joint U.S.-EU statement following the U.S.-EU Justice and Home Affairs MinisterialRead the Press Release
Attorney General Merrick B. Garland hosted the U.S.-EU Justice and Home Affairs Ministerial at the Department of Justice on Dec. 16, 2021. Joined by Secretary of Homeland Security Alejandro Mayorkas, the Attorney General welcomed Commissioner for Justice and Consumer Affairs Didier Reynders, Commissioner for Home Affairs Ylva Johansson, and Slovenian Ministers for Justice Marjan Dikaučič and for Home Affairs Aleš Hojs representing the Presidency of the EU Council. Other senior EU officials who participated in person or remotely, included the Director of Europol, President of Eurojust and EU Counterterrorism Coordinator. A joint statement was issued following the meeting, which can be found here: /media/1181601/dl?inline
Attorney General Garland and Secretary of Homeland Security Mayorkas are joined by EU Commissioners, Presidency of the EU Council and others at U.S.-EU Justice and Home Affairs Ministerial.Jefferson Parish Man Sentenced for Brandishing a Firearm During and in Relation to a Crime of ViolenceRead the Press Release
NEW ORLEANS - U.S. Attorney Duane A. Evans for the Eastern District of Louisiana, announced that TREYVON TOBIAS (“TOBIAS”), age 22, of Jefferson Parish, Louisiana was sentenced on December 16, 2021 to 125 months imprisonment today by United States District Court Judge Jane Triche Milazzo for Brandishing a Firearm During and in Relation to a Crime of Violence, in violation of Title 18, United States Code, Section 924(c)(1)(A)(ii); Hobbs Act Robbery, in violation of Title 18 United States Code, Section 1951(a), and Conspiracy to Use a Firearm During and in Relation to a Crime of Violence, in violation of Title 18, United States Code, Sections 924(o). Following imprisonment, TOBIAS was ordered to serve 3 years of supervised release and pay a $300 mandatory special assessment fee.
According to court documents, in December 2017, TOBIAS and others forcibly entered the residence of Victim-1 after pistol-whipping the victim. TOBIAS and others then robbed the victim of marijuana, money, and a cell phone at gunpoint. Analysis of cell phone location information after the robbery helped uncover the whereabouts of TOBIAS and his co-conspirators during the robbery.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The U.S. Attorney’s Office praised the work of the Federal Bureau of Alcohol, Tobacco, Firearms & Explosives. The prosecution of the case was conducted by Assistant U.S. Attorney Kathryn McHugh.
Jefferson County man pleads guilty for receiving child pornographyRead the Press Release
ST. LOUIS – United States District Court Judge Matthew T. Schelp accepted a plea of guilty from Brent Lawson on today’s date for receiving child pornography. A grand jury in the Eastern District of Missouri previously indicted Lawson for the charge. Judge Schelp set sentencing for March 18, 2022.
On or between May 24, 2019 and November 24, 2020, in the Eastern District of Missouri, Lawson knowingly received and possessed images and videos over the internet of prepubescent minors, including minors under the age of twelve, engaged in sexually explicit conduct.
On May 24, 2019, Lawson, utilizing the internet, accessed child sexual abuse and exploitation material on a website that was an online bulletin board dedicated to the advertisement and distribution of child pornography. Law enforcement infiltrated that website and identified Lawson as having accessed the website.
Subsequently, law enforcement obtained a search warrant for Lawson’s residence that was executed on November 24, 2020. Forensic analysis of electronics seized by law enforcement during the search confirmed Lawson possessed fifty-four videos of child pornography that he downloaded from the internet.
Lawson was previously convicted on April 22, 2004, in the United States District Court for the Eastern District of Missouri for transportation of child pornography, attempted receipt of child pornography and possession of child pornography. In that case the defendant pled guilty and was sentenced to sixty months imprisonment, followed by a period of three years on supervised release.
The case was investigated by the Federal Bureau of Investigation.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Dec. 16 was:
Martin Leo Jimenez, 27, of Billings, on charges of attempted coercion and enticement. If convicted of the most serious crime, Jimenez faces a mandatory minimum 10 years to life in prison, a $250,000 fine and five years to life of supervised release. Jimenez was released pending further proceedings. The FBI investigated the case. PACER case reference. 21-104.
Appearing on Dec. 14 was:
Peter Lloyd Paskiewicz, 50, of Billings, on charges of conspiracy to possess with intent to distribute a controlled substance and possession with intent to distribute a controlled substance. If convicted of the most serious crime, Paskiewicz faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Paskiewicz was released pending further proceedings. The Drug Enforcement Administration investigated the case. PACER case reference. 21-76.
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Highlands County Man Sentenced to over 10 Years in Federal Prison for Drug TraffickingRead the Press Release
Miami, Florida – U.S. District Judge Aileen M. Cannon has sentenced a 49-year-old man from Highlands County, Florida, to 130 months in prison for drug trafficking.
According to the court record, Michael Barnett sold methamphetamine on two separate occasions in 2019. Specifically, on April 4, 2019, Barnett sold 27.60 grams of methamphetamine to a buyer in Avon Park, Highlands County, Florida, and on April 17, 2019, Barnett sold 28.00 grams of methamphetamine to a buyer in Avon Park.
Barnett previously pled guilty to distribution of five grams or more of methamphetamine.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and Deanne L. Reuter, Special Agent in Charge, Drug Enforcement Administration, Miami Field Division made the announcement.
DEA Miami investigated the case. The case was prosecuted by Assistant U.S. Attorney Michael D. Porter. Assistant U.S. Attorney Sara Klco is handling asset forfeiture.
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-14026.
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Henniker Man Found Guilty of Unlawfully Possessing a Pipe BombRead the Press Release
CONCORD – Acting United States Attorney John J. Farley announced that a federal jury found James Leonard, 36, of Henniker, guilty of unlawfully possessing a destructive device. The verdict was returned on Thursday, December 16, 2021.
According to trial exhibits and witness testimony during the three-day jury trial, on June 12, 2018, the Bennington Police Department was called to the defendant’s apartment for a noise complaint. When the police arrived, they heard a male yelling and screaming. The police attempted to contact the defendant by knocking at his front door but were unable to contact him. The police went around to the back side of the apartment to a slider door in an effort to speak with the defendant. While they were at the back slider door, the police smelled an odor of burnt marijuana. Officers later obtained and executed a search warrant for the defendant’s residence. During the search, they located marijuana and the component parts for a pipe bomb.
The police contacted the New Hampshire State Police Bomb Squad who responded to the defendant’s residence to assist in the investigation and gather the explosive material. The ATF subsequently identified the explosive material and determined that the defendant had all the necessary component parts to readily assemble a destructive device, specifically, an explosive pipe bomb. This combination of parts was not registered on the National Firearms Registration and Transfer Record as required by law.
Leonard, who is detained, faces up to ten years in prison. He is scheduled to be sentenced on March 28, 2022.
“By constructing a pipe bomb in his residence, this defendant placed his neighbors and the community in danger,” said Acting U.S. Attorney Farley. “Thanks to good police work, law enforcement officers were able to secure this potentially-deadly device and prevent any individuals from being harmed. We will continue to work closely with our federal, state, and local law enforcement partners to protect public safety and prevent acts of violence in the Granite State.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New Hampshire State Police, and the Bennington Police Department. The Hancock, Antrim, and Francestown Police Departments also assisted with this matter. The case is being prosecuted by Assistant U.S. Attorney Debra M. Walsh.
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Glenwood Man Sentenced for Methamphetamine OffenseRead the Press Release
COUNCIL BLUFFS, IA – Joshua Matthew St. John, age 42, of Glenwood, was sentenced on December 16, 2021, by United States Chief District Court Judge John A. Jarvey to 132 months in prison for Possession with Intent to Distribute Methamphetamine. His term of imprisonment will be followed by five years of supervised release. According to court documents, St. John pleaded guilty to the methamphetamine offense in May of 2021. His co-defendant, Sarah Diane Adams, is scheduled to be sentenced on January 7, 2022.
On April 2, 2020, a confidential source arranged with St. John to purchase a quarter pound of methamphetamine. The confidential source traveled to St. John’s residence in Glenwood and was instructed by Adams to follow them to a stash location. The quarter pound of methamphetamine was measured from a larger amount and delivered by Adams to the confidential source. On April 24, 2020, the confidential source met St. John at his residence to purchase methamphetamine and reported seeing a large quantity of methamphetamine. Law enforcement executed a search warrant on St. John’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.
Georgia Man Pleads Guilty to Extorting Sexual Images and CyberstalkingRead the Press Release
BOSTON – A Georgia man pleaded guilty yesterday in federal court in Boston to extorting a Boston-area woman for videos, photographs and communications of a sexual nature as well as cyberstalking other women over social media.
Gary E. Leach, 24, of Athens, Ga., pleaded guilty to two counts of cyberstalking and one count of extortion through interstate threats. U.S. District Court Judge Angel Kelley scheduled sentencing for April 7, 2022. Leach was arrested and charged on April 23, 2021 and has been on home detention since he was released from custody on May 18, 2021.
From October 2019 until his arrest in April 2021, Leach, then a graduate student at the University of Georgia, targeted a Boston-area woman in an online cyberstalking and extortion campaign. Leach used anonymous Instagram accounts to obtain private video calls and photographs of a sexual nature from the victim through false promises of payment and surreptitiously recorded the victim during these calls. Leach threatened to share the recordings with the victim’s family if she did not continue to send him content of a sexual nature over Instagram and repeatedly harassed and extorted the victim for additional interactions of a sexually explicit and degrading nature.
Leach also cyberstalked other women on social media, including a woman residing in Canada. Leach recorded a video call of a sexual nature with this victim and sent the recording to her roommate. He repeatedly contacted the victim and used the recording to attempt to solicit additional interactions with her. Throughout 2019 and 2020, Leach attempted to solicit video performances of a sexual nature from at least a dozen Instagram users and initiated interactions with numerous other Instagram users for the purpose of exposing himself masturbating.
The charge of stalking by electronic means provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of extortion by interstate threat of injury to reputation provides for a sentence of up to two years in prison, one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Assistant U.S. Attorney David M. Holcomb of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Georgetown Rapper Pleads Guilty to Possessing Nearly Two Kilograms of Black Tar Heroin located in Midlands ApartmentRead the Press Release
Charleston, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Edmund Dechane Holmes, a/k/a “Buddha SME,” 30, of Georgetown, has pleaded guilty to possession with intent to distribute more than a kilogram of heroin. Holmes’s case had been scheduled for trial in January 2022 until the change of plea this week.
Evidence presented to the Court showed that in the months leading up to August 2018, Holmes maintained an apartment in Columbia for the purpose of storing and distributing kilogram quantities of heroin. Authorities learned of his scheme after responding to a call about a disturbance at the address. Once there, officers from the Columbia Police Department obtained a search warrant based upon a small amount of drugs that were found in plain view.
During the search of a back bedroom, they located approximately 1.9 kilograms of black tar heroin along with other drug distribution paraphernalia such as a kilogram-size drug press, bulk money packaging supplies, and items used for mixing and cutting drugs. Holmes left behind several items proving his identity and acquired a renter’s insurance policy on the unit in his own name.
At the time of search, Holmes was serving a five-year term of federal supervised release after having recently been released from prison after serving a five-year sentence for a 2013 federal conviction for distribution of heroin. Holmes now faces a mandatory minimum penalty of 10 years in federal prison.
“Those who continue to push poison in their communities after serving prison sentences for these crimes deserve swift and severe punishments. That will happen in this case, and this office will continue to aggressively prosecute repeat offenders,” said Acting U.S. Attorney DeHart. “I commend our federal and state partners who helped make sure Holmes will spend at least a decade in federal prison, and who seized lethal drugs that would otherwise have ended up on the streets of South Carolina.”
“The severe punishment Holmes faces correctly reflects the criminal activities he engaged in,” said Robert J. Murphy, the Special Agent in Charge of the Drug Enforcement Administration (DEA) Atlanta Field Division. “He continuously poisoned the community with heroin despite having been arrested previously for heroin distribution. The guilty plea removes yet another dangerous criminal from our streets and sends a clear message to others who may be tempted to distribute this insidious drug: DEA and its law enforcement partners will relentlessly pursue and ultimately prosecute criminals like Holmes.”
In addition to a mandatory minimum of 10 years, Holmes faces a maximum penalty of life in federal prison. He also faces a fine of $10,000,000, at least five years of additional supervision to follow the term of imprisonment, and restitution. United States District Judge David C. Norton accepted the guilty plea and will sentence Holmes after receiving and reviewing a sentencing report prepared by the United States Probation Office.
The case was investigated by the DEA, with assistance from the Columbia Police Department and Georgetown County Sheriff’s Office. Assistant United States Attorneys Everett McMillian and Whit Sowards are prosecuting the case.
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Fraudster Sentenced to over Three Years in Federal Prison for Bank Fraud ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Erwin Boateng, age 32, of Glen Burnie, Maryland, to 42 months in federal prison, followed by three years of supervised release, for conspiracy to commit bank fraud in connection with a scheme in which the conspirators opened bank accounts using the stolen personal identifying information of other individuals, transferred or deposited funds obtained using stolen or altered checks, then quickly withdrew the funds. Judge Bennett ordered Boateng to forfeit $24,758.79.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore.
According to Boateng’s plea agreement, from September 1, 2015, through June 28, 2016, Boateng and others opened more than three dozen bank accounts using the stolen personal identifying information of other individuals or in the names of businesses. Boateng and his co-conspirators fraudulently transferred funds or deposited stolen and altered checks, then quickly transferred the fraudulently obtained funds to other accounts or withdrew the funds in cash. The total intended loss was approximately $374,076.90 and the amount successfully withdrawn was $188,176.24.
For example, on November 6, 2015, at the direction of a co-conspirator, Boateng opened a savings and a checking account at the Greenbelt, Maryland branch of a credit union, identifying himself as the brother of identity theft victim M.H., whom Boateng claimed was sponsoring his credit union membership. On November 12, 2015, Boateng and others caused a fraudulent ACH credit in the amount of $31,343.12 to be deposited into Boateng’s checking account. Boateng then withdrew $4,500 in cash and $10,000 in the form of a cashier’s check payable to Erwin Boateng from the account.
As detailed in the plea agreement, the illegally obtained proceeds from the fraudulent transactions were split between the co-conspirators.
Boateng pleaded guilty to the bank fraud conspiracy in September 2019, but subsequently engaged in a second fraud scheme, while on pre-trial release. Specifically, according to information provided during today’s sentencing hearing, Boateng attempted to open an investment account utilizing a fraudulent $9 billion “Secured Funding Bond.” Boateng represented that he wanted to deposit the bond in an investment account as collateral for a $500 million loan from the investment firm. The loan was to be used to finance “economic development in Africa” through Boateng’s Spherepoint International Group. The investment firm determined the documents were fraudulent and did not open any accounts. An individual who was attempting to assist Boateng was notified and she, in turn, notified law enforcement.
In addition to Boateng, four other co-conspirators pleaded guilty to their roles in the fraud scheme. David Livingston Attoh, age 34, a citizen of Ghana residing in Laurel, Maryland, was sentenced to three years in federal prison; Kabir Tunji Are, age 43, a Nigerian citizen residing in Silver Spring, Maryland, was sentenced to 13 months in federal prison; Kwaku Boateng Blay, age 38, a citizen of Ghana residing in Beltsville, Maryland, was sentenced to 21 months in federal prison; and Franck Ulrich Noche Nsiyabuze, age 31, of Laurel, Maryland, was sentenced to 18 months in federal prison.
United States Attorney Erek L. Barron praised the HSI for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Judson T. Mihok and Mary W. Setzer, 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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Four Executives Sentenced for SBA Fraud Scheme Spanning 13 YearsRead the Press Release
Four Indianapolis-area small business lending executives, all of whom worked for Banc-Serv Partners LLC (Banc-Serv) — a defunct lending service provider — were sentenced this month in the Southern District of Indiana for a 13-year conspiracy to defraud the Small Business Administration (SBA) in connection with its programs to guarantee loans made to small businesses.
Kerri Agee, 46, of Carmel, Banc-Serv’s former president, founder, and owner, was sentenced to 68 months in prison; Kelly Isley, 41, of Westfield, Banc-Serv’s former chief operating officer, was sentenced to 57 months; Chad Griffin, 48, of Carmel, Banc-Serv’s former chief marketing officer, was sentenced to 28 months; and Matthew Smith, 53, of Brownsburg, Banc-Serv’s co-founder and a former director of Bridge Business Bancorp, a lending institution that originated loans with Banc-Serv, was sentenced to 46 months. One additional co-conspirator, Nicole Smith, 44, of Indianapolis, is scheduled to be sentenced on Jan. 7, 2022. These defendants were convicted following a two-week jury trial in the U.S. District Court for the Southern District of Indiana. Agee, Isley, Griffin, and Nicole Smith were each convicted of one count of conspiracy to commit wire fraud affecting a financial institution. Additionally, Agee was convicted of four counts of wire fraud affecting a financial institution, and Isley and Nicole Smith were convicted of two counts of wire fraud affecting a financial institution. Matthew Smith was convicted of one count of conspiracy to commit wire fraud.
According to court documents and the evidence produced at trial, the defendants fraudulently obtained SBA-guaranteed loans on behalf of their clients, knowing that the loans did not meet SBA’s guidelines and requirements for the guarantees. The evidence at trial proved that from approximately 2004 until October 2017, the defendants helped originate SBA loans through Banc-Serv on behalf of various financial institutions and other lenders. On multiple occasions, they fraudulently obtained SBA guarantees for loans they knew to be ineligible. They did so by, among other things, knowingly misrepresenting what the loans would be used for, concealing disqualifying facts about the borrowers, and unlawfully diverting previously denied loan applications into expedited approval channels at the SBA. When the fraudulently guaranteed loans defaulted, the defendants caused the submission of reimbursement requests to the SBA to purchase the defaulted loans from investors and lending institutions, shifting a majority of the losses on the ineligible loans to the SBA.
“Fraud against SBA loan programs directly harms taxpayers and undermines the public’s faith in in important community programs.” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The Criminal Division is committed to prosecuting the offenders who exploit these programs and abuse the public trust.”
“These sentences hold the defendants accountable for their egregious conduct to cheat a government-guaranteed loan program — by lying on loan documentation, concealing key information, and asking the government to pay for defaulted loans,” said Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation (FDIC). “We remain committed to working with our law enforcement partners and investigating those who seek to exploit federal programs and undermine the integrity of our nation’s banks.”
“Making false statements to fraudulently gain access to SBA program funds is deplorable and it is unconscionable that anyone would steal from a program intended to help hard working Americans keep their businesses afloat,” said Acting Special Agent in Charge Gregory Nelsen of FBI Indianapolis. “The FBI and our partners will continue to work diligently to identify and pursue those engaged in such illegal activity and ensure they are no longer in a position to defraud anyone.”
“Conspiring to defraud any SBA program is a blatant attempt to selfishly rob the nation’s diverse small businesses community from supports that assist them to grow and build our strong economy,” said Special Agent in Charge Sharon Johnson of the SBA Office of Inspector General’s (OIG) Central Region. “OIG remains committed to rooting out bad actors and protecting the integrity of SBA programs every day. I want to thank the Department of Justice and our law enforcement partners for their dedication and pursuit of justice.”
In addition to their prison sentences, all four defendants were ordered to pay restitution to the SBA. Agee and Isley were each ordered to pay $2,289,681, Griffin was ordered to pay $685,022, and Matthew Smith was ordered to pay 1,651,450.
The FDIC Office of Inspector General, FBI, and SBA-OIG investigated the case.
Assistant Chief William E. Johnston and Trial Attorneys Vasanth Sridharan and Brandon Burkart of the Criminal Division’s Fraud Section prosecuted the case. The Department of Housing and Urban Development Office of Inspector General also assisted in the investigation.
Former Tallahassee Federal Correctional Officer Indicted for Bribery and Introduction of Contraband into A Federal PrisonRead the Press Release
TALLAHASSEE, FLORIDA – Jared Anderson, 26, of Tallahassee, Florida, was indicted by a federal grand jury on counts of bribery and introduction of contraband into a federal prison, announced Jason Coody, Acting United States Attorney for the Northern District of Florida, and James F. Boyersmith, Special Agent in Charge of the Department of Justice Office of the Inspector General Miami Field Office. Anderson made his initial appearance on December 17, 2021, in federal court to face the charges.
The indictment alleges that, between September and November 2021, while employed as a U.S. Bureau of Prisons Correctional Officer at the Federal Detention Center Tallahassee, Anderson accepted a bribe in exchange for smuggling synthetic cannabinoids into the detention center. The indictment further alleges that Anderson provided the synthetic cannabinoids to an inmate. Anderson faces up to 25 years’ imprisonment on the charged crimes.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The case was investigated by the Department of Justice Office of the Inspector General. The case is being prosecuted by Assistant United States Attorney Lazaro P. Fields.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office for the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Former School Superintendent Pleads Guilty in Virtual Education Fraud CaseRead the Press Release
Montgomery, Ala. – On Thursday, December 16, 2021, William L. Holladay, III, 57, now a resident of Montgomery, Alabama, pleaded guilty to conspiring with others to defraud the Alabama State Department of Education (ALSDE) by falsely inflating the number of students enrolled in public virtual schools, announced the United States Attorney’s Office for the Middle District of Alabama. Prior to October of 2020, Holladay was the superintendent of the Athens, Alabama City Schools System (ACS).
When he entered his guilty plea, Holladay admitted that he, along with co-defendant Thomas Michael Sisk, superintendent of the Limestone County Schools system (LCS), conspired to fraudulently inflate the number of students enrolled in their systems. According to court records and information contained in Holladay’s plea agreement, Holladay and Sisk did so when they submitted to the ALSDE lists of enrolled students who were, in reality, full-time students at private schools located in other parts of the state.
As a result of reporting these fraudulently enrolled students, the school systems received payments from Alabama’s Education Trust Fund as if the students actually attended public schools. Holladay, and his co-defendants, would then take portions of the money given to the school systems for their own personal use.
To obtain private school student information for use in the scheme, the defendants offered various benefits to private schools, most of which were located in Alabama’s Black Belt region. Those benefits included: laptop computers, access to online curriculum, standardized testing, and monetary payments. The students whose identities were used in the scheme had little to no connection to the public-school districts. Those students continued to attend brick-and-mortar private schools each day; they continued to participate in private school athletics; and their parents continued to pay tuition to the private schools.
At some upcoming date, Holladay will be sentenced. He faces a maximum five-year prison sentence, as well as substantial monetary penalties. Co-defendant William Richard Carter, Jr. is currently set for trial on February 7, 2022. Co-defendants Gregory Earl Corkren, David Webb Tutt, and Thomas Michael Sisk, previously pleaded guilty to conspiracy to defraud the government. Gregory Corkren also pleaded guilty to aggravated identity theft.
This case was investigated by the Federal Bureau of Investigation (FBI) and the United States Department of Education’s Office of Inspector General. Assistant United States Attorneys Jonathan S. Ross, Alice S. LaCour, and Brett J. Talley are prosecuting the case.
Former San Francisco Public Works Director Admits to String of Briberies and Corruption During Years in OfficeRead the Press Release
SAN FRANCISCO – Former San Francisco City Hall public official Mohammed Nuru agreed in a plea agreement filed today to plead guilty to honest services wire fraud, announced Acting United States Attorney Stephanie M. Hinds, Federal Bureau of Investigation Special Agent in Charge Craig D. Fair, and Internal Revenue Service–Criminal Investigation Special Agent in Charge Mark H. Pearson.
Today’s development follows the January 15, 2020, 79-page federal complaint filed against then San Francisco Department of Public Works (DPW) Director Mohammed Nuru charging him with public corruption and describing a long-running scheme involving multiple bribes and kickbacks during his tenure as DPW’s Director. Nuru, 59, of San Francisco, served as DPW’s Director from 2011 until charges were brought against him in 2020. Nuru was also charged in a second federal complaint filed on January 28, 2020, with lying to a federal agent in the course of the San Francisco City Hall corruption investigation. Today, in anticipation of entering his plea agreement resolving his cases, Nuru was arraigned today on an information – a charging document – that charges him with his sweeping scheme to defraud the San Francisco public of its right to his honest services in violation of 18 U.S.C. §§ 1343 and 1346.
“Mohammed Nuru admits to a staggering amount of public corruption in his plea agreement,” said Acting United States Attorney Stephanie M. Hinds. “For years, Nuru held a powerful and well-paid public leadership position at San Francisco City Hall, but instead of serving the public, Nuru served himself. He took continuous bribes from the contractors, developers, and entities he regulated. He now faces a prison sentence for enriching himself at the expense of the public as he sat in high office. Federal authorities will investigate public corruption wherever it leads in San Francisco and throughout the district.”
“Today’s announcement, while significant, is by no means the end of the FBI’s investigation into the corrupt conduct we have uncovered in San Francisco city government," said FBI Special Agent in Charge D. Fair. “We will continue to hold accountable those who seek to personally benefit by corrupting the fair administration of public business and we will persist in our commitment to protect the integrity of the institutions that serve the people of San Francisco.”
“Our communities place great trust and responsibility in our public figures. Mohammed Nuru ultimately betrayed this trust when he abused his power to defraud the City and County of San Francisco and its people,” said IRS Criminal Investigation Special Agent in Charge Mark H. Pearson. “We will not tolerate public corruption and will hold perpetrators accountable for their actions. Today’s guilty plea is a direct result of the hard work and dedication of IRS Criminal Investigation and our law enforcement partners towards obtaining justice.”
Nuru signed today’s plea agreement and the agreement has been filed with the United States District Court in preparation for Nuru’s upcoming appearance to enter his guilty plea orally. As the plea agreement outlines, before Nuru was appointed Director of DPW in 2011 he became DPW’s Deputy Director of Operations in 2000. The Deputy Director of Operations is DPW’s second most senior position, behind only the Director. In 2014, Nuru was also appointed to the Board of the Transbay Joint Powers Authority (TJPA) and eventually served as its Chair. As Deputy Director and eventually Director of DPW, and as Chair of the TJPA, Nuru exercised great influence over San Francisco (the City) business and policy, including public contracts, permits, and construction projects. His power and influence extended beyond DPW’s jurisdiction to numerous other City departments and agencies, making him one of the most powerful public officials in the City.
Nuru admits in his plea agreement to a spectrum of public corruption involving bribery and kickbacks he received while in DPW leadership. His admissions are summarized below:
Walter Wong:
In his plea agreement, Nuru admits he received a stream of bribes from Walter Wong. Wong did business in the City through Walter Wong Construction, among other businesses. In exchange for Wong’s bribes, Nuru helped Wong secure City contracts. Sometimes Nuru provided Wong with confidential insider City information on competitors’ bids or specifications. At other times Nuru allowed Wong to structure the requirements for the City’s Request for Proposals (RFP) for projects ahead of time, to tailor their requirements to ensure that Wong’s company would be the most-qualified bidder. Nuru also helped Wong expedite permit approvals.
Nuru admits in his plea agreement that his “corrupt relationship” with Wong began in approximately 2008 when Nuru was the Deputy Director for Operations at DPW. Wong installed a gate for free at Nuru’s San Francisco home in exchange for future business with DPW and the City. Wong continued to perform construction services for free, or nearly free, at Nuru’s San Francisco home and later primarily at Nuru’s vacation ranch property in Colusa County.
Nuru admits that, in exchange for Wong providing construction and other things of value, he exercised his official influence and took actions to benefit Wong. In one example outlined in the plea agreement, Nuru used DPW’s emergency contract process, which did not require a public bidding process, to direct construction work to Walter Wong Construction on a navigation center located at 1515 South Van Ness Street and on the Jelani House (a housing shelter), resulting in City payments to Wong’s company during fiscal years 2017-2018 and 2019-2020. In another example, Nuru used his position and official influence to direct DPW, the Market Street Association, and the San Francisco Public Utilities Commission to purchase Christmas lights from one of Wong’s businesses, regularly leading to tens of thousands of dollars’ worth of purchases.
Nuru further admits in his plea agreement that:
o between approximately 2008 and January 2020, Wong provided in excess of $260,000 in labor and materials for work on Nuru’s San Francisco home and Colusa County ranch.
o Wong paid for home furnishings for Nuru, including a chandelier, kitchen appliances, and furniture.
o Wong paid for Nuru to travel to China multiple times and to South America on one occasion, which included reimbursing Nuru in cash for the cost of international flights. Wong paid for Nuru and Sandra Zuniga, his girlfriend at the time, to accompany Nuru to South America and paid for their stay at the Ritz-Carlton in Santiago, Chile.
o On multiple occasions, Wong handed Nuru envelopes of cash, often as much as $5,000 at a time.Walter Wong was charged in June 2020 with conspiracy to defraud the public of its right to honest services and with conspiracy to engage in money laundering, both involving Nuru. Wong entered a guilty plea and agreed to cooperate with the government’s San Francisco City Hall corruption investigation.
Multimillion-Dollar Mixed-Use Development:
Nuru admits he received free travel, gifts, and benefits, for working with Walter Wong to use Nuru’s official position to benefit a billionaire developer from China, referred to as DEVELOPER 1 in the plea agreement, who was developing a large multimillion-dollar mixed use project in San Francisco. Wong, who worked as a consultant for DEVELOPER 1 on several of his large developments in the City, introduced Nuru to DEVELOPER 1. Nuru met with Wong, another Department of Building Inspection official, DEVELOPER 1, and others over dinner on multiple occasions and discussed DEVELOPER 1’s projects. Nuru never paid for the dinners. Nuru admits that he also met with DEVELOPER 1 multiple times in China. According to Nuru, DEVELOPER 1 owned multiple hotels in China, including five-star hotels. Nuru received gifts from him, including free hotel stays.
Nuru admits that, in exchange, he used his official position and influence to help DEVELOPER 1 obtain necessary approvals for his large, multimillion-dollar mixed-use project. Nuru admits, among other things, that he told Sandra Zuniga that DEVELOPER 1 was upset because he had spent large amounts of money and had provided “a whole list of things” that Nuru said “we need to get done[.]” Nuru admits that whenever DEVELOPER 1 or one of his employees notified him of an issue, Nuru directed one of his DPW managers to solve the problem and expedite the process. Nuru also used his official influence with other City officials to solve problems encountered by DEVELOPER 1 that fell within the other City officials’ area of responsibility.
Recology:
Recology Inc. is a waste management company headquartered in San Francisco and the parent company of Sunset Scavenger Company, Golden Gate Disposal & Recycling Company, and Recology San Francisco (referred to as the “SF Recology Group” and, collectively with Recology Inc., as “Recology”). Recology Inc. provided refuse collection and disposal services for residential and commercial customers in the City, as well as for the City itself, through the SF Recology Group.
As Director of DPW, Nuru presided over the process governing the rates Recology could charge in San Francisco. Nuru recommended to the Rate Board whether to approve any rate increase for Recology. Nuru also influenced “tipping fee” rates that Recology charged DPW when DPW dumped materials at a Recology facility, Sustainable Crushing. Nuru could approve, deny, or affect operational changes that Recology wanted to make in San Francisco which, Nuru admits in his plea agreement, gave him the ability in his official capacity to affect Recology’s business.
Nuru admits he accepted numerous valuable items from Recology and used his official position to help Recology’s business. Among other things, Recology paid for soil to be delivered to Nuru’s ranch property in Colusa County, for expensive meals for Nuru, and for a two-night trip to New York on the City’s business in December 2017.
Nuru admits that he also requested Recology to pay, and Recology did pay, hundreds of thousands of dollars to a San Francisco non-profit (Non-Profit A) in the form of donations for a cleaning program known as Giant Sweep. Non-Profit A would then donate the payments to another non-profit that administered funds for the Giant Sweep program. Nuru admitted he could then access the funds for a variety of other uses—including procuring goods and services for staff meals and appreciation events, volunteer programs, merchandise, community support, and events from specific vendors—in addition to their originally designated purpose for Giant Sweep. From 2014 through the end of 2019, Recology donated approximately $150,000 per year for Giant Sweep, in $30,000 installments—for a total of approximately $750,000.
Nuru also admits he requested Recology hire his son. Recology hired him and paid him, between 2015 and 2017, approximately $17,000. Recology also funded a paid internship for Nuru’s son at a different non-profit organization and, between 2017 and 2018, paid approximately $23,600 to fund the paid internship.
Nuru admits he requested that Recology fund his DPW holiday parties. Between 2016 and 2019, Recology paid approximately $60,000 for that purpose. Recology made the payments through the Lefty O’Doul’s Foundation, a non-profit organization run by Nick Bovis.
Two former Recology executives, Paul F. Giusti and John F. Porter, have been charged in this investigation. Giusti was charged in November 2020, and Porter was charged in April 2021. Both men were charged with bribery of Nuru and money laundering involving Nuru. Giusti pleaded guilty in August 2021 to engaging in a conspiracy to bribe Nuru and is cooperating with the government’s San Francisco City Hall corruption investigation. Porter’s charges remain pending.
The three subsidiaries of Recology, Inc. now have new leadership and have implemented enhanced corporate compliance programs to end any corrupt practices. Recology resolved corporate charges brought against them through a deferred prosecution agreement with the government. Pursuant to the agreement, the companies paid a $36 million fine, agreed to implement enhanced corporate compliance programs, and agreed to fully cooperate in the government’s San Francisco City Hall corruption investigation.
Nick Bovis:
Nuru admits in his plea agreement that he received multiple bribes from restaurateur Nick Bovis. The bribes were in exchange for Nuru using his official acts and influence to assist, or to promise to assist, in public business opportunities with the City. The bribes included free meals and entertainment for Nuru, his family, and associates at restaurants owned by Bovis and thousands of dollars in free appliances for Nuru’s ranch property. Nuru also anticipated and expected tens of thousands of dollars in kickbacks from proceeds that Bovis would earn from the City concessions or contracts awarded due to Nuru’s official acts or influence to assist Bovis.
In one plea agreement example, Nuru admits he helped Bovis in a plan to win a bid for a restaurant lease at San Francisco International Airport (SFO). Bovis expected to make money from the SFO concession, and Nuru expected Bovis would continue to provide bribes in exchange for Nuru’s help with the airport concession process and other public contracts.
In another example, Nuru admits he gave Bovis a price list of appliances that Nuru wanted for his ranch in or about 2018, a time when Bovis was seeking Nuru’s assistance with the SFO concession and other City business opportunities. Bovis purchased the appliances and brought them to Nuru’s ranch. Nuru accepted them as an exchange for his continued official acts and influence to help Bovis, and he did not pay for them. The appliances were worth approximately $22,000.
Nick Bovis pleaded guilty in May 2020 to wire fraud and honest services wire fraud involving Nuru and agreed to cooperate in the government’s San Francisco City Hall corruption investigation.
Florence Kong:
Nuru admits in his plea agreement that he accepted a gold Rolex watch from Bay Area businesswoman Florence Kong. The watch was valued at approximately $36,550. Nuru admits he used his official position to benefit Kong’s businesses and did so in exchange for the Rolex and for cash, free meals, and other items of value provided by Kong, including an iron fence that Kong installed at Nuru’s ranch. In one example, Nuru states that he used his official position to direct business to SFR Recovery Inc., a recycling business that Kong owned.
Florence Kong was charged and pleaded guilty to bribery of Nuru and to making false statements to FBI agents during the investigation. She was sentenced in February 2021 to one year and one day in prison and ordered to pay a $95,000 fine.
Balmore Hernandez, William Gilmartin, & Alan Varela:
Nuru admits in his plea agreement that between 2013 and January 2020 he accepted a series of bribes and kickbacks from Balmore Hernandez, William Gilmartin, and Alan Varela in exchange for past and future official actions benefitting their City business ventures. Nuru received free meals and entertainment, cash, and free labor and materials for his ranch – including a brand new tractor. Nuru also expected to receive a portion of the proceeds from anticipated City contracts awarded to them or their associates as a result of Nuru’s official acts or influence on their behalf.
In one example, Nuru admitted he helped Varela and Gilmartin’s joint venture win a DPW supply contract and a related lease with the Port of San Francisco (the “Port”) to operate an asphalt recycling plant and a concrete plant on the Port’s land. In the early stages, Nuru helped the group prepare their proposal by providing them inside non-public information on the project. The non-public information was delivered to Hernandez through emails or phone calls or through regular dinning meetings in San Mateo with Gilmartin and Hernandez. Gilmartin paid approximately $20,000 for the dinners, with the parties agreeing that Nuru’s dinners were worth approximately $7,000.
Nuru admits that Gilmartin promised him $100,000 for his official assistance to pressure a large developer to select one of Gilmartin and Varela’s joint-venture partners for a large project in San Francisco. The large developer complied with Nuru’s request because, as Nuru admits, the large developer needed DPW approvals for the project and for other large developments in the City.
Nuru admits that he received approximately $25,000 in cash from Hernandez and received approximately $250,000 in free labor and materials from Hernandez at Nuru’s ranch.
Nuru also requested the group give him a tractor. In February 2019, Alan Varela delivered a new tractor to the Nuru’s ranch, a benefit valued at approximately $20,000.
Balmore Hernandez was also charged in connection with this investigation. He pleaded guilty to honest services wire fraud in October 2020 and agreed to cooperate in the government’s San Francisco City Hall corruption investigation.
William Gilmartin was charged in connection with this investigation. He pleaded guilty to conspiracy to commit honest services wire fraud in May 2021 and agreed to cooperate in the government’s San Francisco City Hall corruption investigation.
Alan Varela was charged in connection with this investigation. He pleaded guilty to conspiracy to commit honest services wire fraud and was sentenced in September 2021 to two years in prison and ordered to pay a $127,000 fine.Sandra Zuniga Money Laundering:
Nuru admits that in or about 2010 he bought a 10-acre lot in Colusa County and developed it into his vacation ranch with free labor and materials provided by City contractors seeking favors from him. Nuru admits he also used the proceeds of his crimes to pay the mortgage. To conceal and launder the source of the proceeds, Nuru states he funneled the money through Sandra Zuniga who made the monthly $1,000 mortgage payments out of her checking account. Nuru admits that from 2014 through August 2017, he typically gave Zuniga approximately $1,000 per month, generally in cash, and she deposited the money into her bank account. She then made the $1,000 payment towards the mortgage. In this way, Zuniga paid at least $42,000 of the mortgage.
Zuniga was charged and pleaded guilty in March 2021 to engaging in a conspiracy to launder money with Nuru. She agreed to cooperate in the government’s San Francisco City Hall corruption investigation.
Other Bribes:
Nuru admits in his plea agreement that around 2018 he accepted a bribe of $20,000 in cash from a former government employee in exchange for Nuru using his position to help a particular person obtain an engineering job with the City. Nuru received the cash in three installments of $10,000, $5,000, and $5,000. Ultimately, the individual failed to maintain employment with the City.
Nuru also admits he accepted cash bribes from a prominent developer in San Francisco. The cash bribes usually consisted of a few thousand dollars. The developer would later call Nuru when he had any problems with DPW-related approvals or other matters that Nuru could help resolve.
In his plea agreement, Nuru admits guilt and agrees to plead guilty to one count of honest services wire fraud, in violation of 18 U.S.C. §§ 1343 and 1346. If convicted of the count, he faces a maximum penalty of 20 years in prison and a fine of $250,000 or not more than the greater of twice the gross gain or twice the gross loss of the crime.
The government indicates in the plea agreement its intent to ask for up to a 108 month (9 year) sentence for Nuru. However, any sentence imposed by the court will follow only after the court’s consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Today, in a procedural step towards orally entering his guilty plea, Nuru was arraigned and pleaded not guilty before United States Chief Magistrate Judge Joseph C. Spero to an information charging him with a count of honest services wire fraud in violation of 18 U.S.C. §§ 1343 and 1346.
Nuru’s next appearance is currently set before United States District Judge Susan Illston on January 14, 2022, at which he is currently scheduled to formally enter his guilty plea pursuant to his plea agreement. Nuru remains out of custody on bond.
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This case is part of a larger federal investigation targeting public corruption in the City and County of San Francisco. To date, 12 individuals and three corporate entities have been charged, including two high-ranking San Francisco public officials, Nuru and Harlan Kelly. Multiple city contractors and facilitators have been charged. Allegations in the complaint filed against Harlan Kelly assert that he received thousands of dollars in airfare, meals, jewelry, and travel expenses, along with repair work on his house.The case is being prosecuted by the Corporate and Securities Fraud Section of the U.S. Attorney’s Office. The case is being investigated by the FBI and IRS-Criminal Investigation.
Former San Diego Resident Pleads Guilty to Funding ISIS Terrorist Activities in SyriaRead the Press Release
Assistant U. S. Attorney Shane Harrigan (619) 546-6981 and Fred Sheppard (619) 546-8237
NEWS RELEASE SUMMARY – December 17, 2021
SAN DIEGO – Abdullahi Ahmed Abdullahi, a Canadian national and former resident of San Diego, pleaded guilty in federal court today, admitting that he conspired with others to provide material support to terrorists engaged in violent activities such as murder, kidnapping and maiming of persons in Syria.
According to his plea agreement, Abdullahi admitted that he provided money to his four cousins, including an 18-year old Minneapolis resident, as well as former San Diego resident Douglas McAuthur McCain, to support their terrorist activities in Syria.
From November 2013 through March 2014, with financial assistance from Abdullahi for the purchase of airline tickets and subsistence abroad, Douglas and the others traveled from the San Diego and Minneapolis and Edmonton, Canada to Syria, where they joined the Islamic State of Iraq and Syria (ISIS), a foreign terrorist organization, and engaged in armed battles to gain control of the territories and civilian populations within Syria on behalf of ISIS. All five individuals were subsequently reportedly killed fighting for ISIS.
Douglas McCain, a former San Diego resident, is the first known American to die fighting for ISIS. He departed from San Diego in March 2014, and on or about August 25, 2014, he was reportedly killed fighting for ISIS against Free Syrian Army forces. Douglas’ brother, Marchello McCain, was previously convicted in San Diego federal court and sentenced to 10 years in custody for illegal possession of a cache of firearms and providing false statements to FBI agents regarding his knowledge of the conspiracy, including the involvement of Abdullahi.
Pursuant to the plea agreement, Abdullahi also admitted that in order to finance the travel of others to Syria, members of the conspiracy encouraged Abdullahi and others to steal and commit fraud against the “kuffar” (a pejorative term used to describe non-Muslims), claiming that such criminal activity was permissible under Islamic law.
Abdullahi admitted that on January 9, 2014, he committed an armed robbery of an Edmonton jewelry store for the purpose of raising funds to support terrorist activities in Syria. Thereafter, on three occasions, Abdullahi wired and caused others to wire money to other members of the conspiracy in the United States -- including approximately $3,100 to Douglas – in order to finance the travel of foreign fighters from North America to support and join terrorist fighters engaged in terrorist activities in Syria.
Additionally, Abdullahi admitted that he and others wired and caused money to be wired to third-party intermediaries in Gaziantep, Turkey (located approximately 40 miles from the Syrian border) for the purpose of supporting member of the conspiracy fighting and engaging in terrorist activity in Syria.
According to the plea agreement, Abdullahi has agreed to a term of imprisonment of 20 years.
“Terrorist networks can’t survive without people like Abdullahi,” said U.S. Attorney Randy Grossman. “Our top priority is protecting Americans from terrorists, and with today’s guilty plea, we have delivered justice to someone who directly funded violence. I want to commend FBI San Diego and all of the federal, state and local law enforcement partners at the San Diego Joint Terrorism Task Force for their hard work and dedication to the multi-year, complex investigation that led to today’s guilty plea. Additionally, I am also extremely grateful for the assistance of the Department of Justice’s Office of International Affairs and our Canadian law enforcement partners, including the Royal Canadian Mounted Police; Edmonton Police Services; the Alberta Crown Prosecution Service; the Public Prosecution Service of Canada; and the Canada Crown Prosecutor’s Office, all of whom have been instrumental in the United States’ efforts to prosecute Abdullahi and combat international terrorism.”
“The defendant committed violent, criminal acts to obtain money to help fund Douglas McCain’s travel overseas to fight for ISIS, where McCain was ultimately killed,” said FBI Special Agent in Charge Suzanne Turner. “This case demonstrates the FBI’s dedication to vigorously pursue those who provide material support to terrorist organizations, financial or otherwise, and hold them accountable for those conspiratorial actions.”
On September 15, 2017, pursuant to an extradition request by the United States, Canadian authorities arrested Abdullahi. Abdullahi was detained in Canadian custody without bail, pending extradition. On October 24, 2019, Canada extradited Abdullahi to San Diego to face the material support charges in the Indictment.
DEFENDANT Criminal Case No. 17CR0622-W
Abdullahi Ahmed Abdullahi Age 33 Edmonton, Alberta, Canada
SUMMARY OF CHARGES
Conspiracy to Provide Material Support to Terrorists – Title 18, U.S.C., Sections 2339A(a)
Maximum penalty: Fifteen years in prison and $250,000 fine (per count)
Providing Material Support to Terrorists – Title 18, U.S.C., Sections 2339A(a)
Maximum penalty: Fifteen years in prison and $250,000 fine
INVESTIGATING AGENCIES
San Diego Joint Terrorism Task Force
Federal Bureau of Investigation
Federal Air Marshal Service
Department of Homeland Security, Homeland Security Investigations
Department of Homeland Security, U.S. Border Patrol
Former Ottumwa and Des Moines Man Sentenced to 15 ½ Years in Federal Prison for Sexually Exploiting ChildrenRead the Press Release
DES MOINES, IA – On November 16, 2021, United States District Court Judge Stephanie M. Rose sentenced Matthew Eric Mason, age 26, formerly of Ottumwa and Des Moines, to 188 months in prison for Receipt of Child Pornography announced United States Attorney Richard D. Westphal. Mason pleaded guilty to the offense on August 25, 2021. Following completion of his prison term, Mason will be required to register as a sex offender and will be on supervised release for ten additional years.
According to court documents, Mason began communicating with multiple minor boys in 2019 while playing online video games. Multiple times in early February 2019, Mason knowingly persuaded and enticed a 13-year-old boy, who resided in New Hampshire, to take “selfie” photographs of that boy’s genitals and send the photos to Mason via an online application. The boy did so. Mason knew that the boy was 13-years old when Mason used the boy to create and send the photographs. In the summer of 2019, Mason knowingly persuaded and enticed a 12-year-old boy, who resided in Maryland, to take a photo of the boy’s genitals and send the photo to Mason via text message. The boy did so. Mason knew the child was in middle school when Mason used the boy to create the photograph. Police searched Mason’s Des Moines apartment in November 2019 and discovered several electronic devices that contained dozens of videos of child pornography depicting adolescent boys.
This case was investigated by the Iowa Division of Criminal Investigation’s Internet Crimes Against Children Task Force, Nashua (New Hampshire) Police Department, Ottumwa Police Department, Wapello County Attorney’s Office, and the FBI Child Exploitation Task Force. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the United States Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nationwide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children. Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
Former Federal Corrections Officer Sentenced to 20 Months in for Plan to Smuggle Drugs into PrisonRead the Press Release
Ocala, FL – Senior United States District Judge John Antoon II has sentenced Wayne Grant, Jr. (28, Orlando) to 20 months in federal prison for receipt of a bribe by a public official. Grant had pleaded guilty on September 7, 2021.
According to court documents, Grant worked as a corrections officer at the Coleman Federal Correctional Complex (FCC Coleman) in Sumter County. In December 2020, Grant agreed to smuggle methamphetamine into the prison for an inmate in exchange for money. Once federal authorities were notified, Grant unwittingly began communicating with an undercover agent to complete the transaction. Federal agents mailed approximately 70 grams of fake methamphetamine and $2,000 in money orders to Grant. Agents observed Grant retrieving the package from his post office box, and he subsequently deposited the money orders into his bank account. During his assigned shift on February 4, 2021, Grant smuggled the contraband into FCC Coleman and provided it to an inmate.
This case was investigated by the Department of Justice – Office of the Inspector General and the Federal Bureau of Investigation, with assistance from the U.S. Postal Inspection Service. It was prosecuted by Assistant United States Attorney Tyrie Boyer.
Former Army National Guard Member Sentenced to Serve 25 Years in Federal Prison for Production of Child PornographyRead the Press Release
On June 11, 2021, Baldwin pleaded guilty to production of child pornography as charged in Count 1 of the Indictment. As part of his plea, Baldwin admitted that he set up a hidden camera in a bathroom and recorded a child change clothes and take a shower. He further admitted that he transmitted images of the recording outside Oklahoma using the Internet.
Today, Senior U.S. District Judge Joe Heaton sentenced Baldwin to serve 300 months in federal prison for his conduct, followed by 10 years of supervised release. In imposing the sentence, Judge Heaton noted the history and characteristics of the defendant, and the serious nature and circumstances of the offense, specifically highlighting the exploitation of those who are most vulnerable
This case is the result of an investigation by Homeland Security Investigations – Oklahoma City. Assistant U.S. Attorney Bow Bottomly prosecuted the case.
This case is part of Project Safe Childhood, a nationwide initiative by the Department of Justice (DOJ) to combat child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the DOJ Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Reference is made to court filings for further information.
Florida Return Preparer Convicted of Tax FraudRead the Press Release
A federal jury convicted a Florida man today for preparing false tax returns for his clients.
According to court documents and evidence presented at trial, Fred Pickett Jr., 54, of Belle Glade, owned and operated a tax return business that he used to prepare false individual income tax returns. From 2013 to 2016, Pickett created tax returns for some of his clients claiming they owned fictitious businesses that lost tens of thousands of dollars each year. Pickett included these made-up companies, as well as other false deductions and tax credits, on clients’ tax returns to generate refunds they were not entitled to receive.
At trial, Pickett was convicted of 22 counts of aiding and assisting the preparation of false tax returns. He is scheduled to be sentenced on March 8, 2022, and faces a maximum penalty of three years in prison for each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Special Agent-in-Charge Matthew Line of IRS Criminal Investigation (IRS-CI), Miami Field Office, made the announcement.
IRS-CI investigated the case.
Trial Attorneys Parker Tobin and Patrick Elwell of the Tax Division prosecuted the case.
Federal agent guilty of aiding drug smugglingRead the Press Release
McALLEN, Texas – A Border Patrol (BP) agent has pleaded guilty to attempting to aid and abet smuggling cocaine through a BP checkpoint, announced Acting U.S. Attorney Jennifer B. Lowery.
Oberlin Cortez Pena Jr., 22, La Joya, pleaded guilty today.
As part of his plea, Pena admitted that on two separate occasions, he helped smuggle over five kilograms of cocaine through the Falfurrias checkpoint. Specifically, he used his knowledge as a BP agent and directed loads through particular checkpoint lanes, further acting as a scout and providing information about the inspection lanes and which one to use. Pena also gave detailed instructions on how to conceal the drugs and tactics to employ in order to distract the canine unit at the checkpoint.
U.S. District Judge Randy Crane accepted the plea and set sentencing for March 1, 2022. At that time, Pena faces a minimum of 10 years and up to life in federal prison as well as a possible $10 million maximum fine.
Four others individuals have been convicted as part of the investigation. Edwin Alejandro Castillo, 23, Sullivan City; Kristian Nicole West, 32; Corpus Christi, and Jose Luis Duran, 25, and Herbey Jose Solis III, 28, both of Mission, all pleaded guilty to alien smuggling. Castillo also admitted to bribery, while Duran entered an additional plea to conspiracy to commit bribery.
Pena was permitted to remain on bond pending sentencing.
The Department of Homeland Security - Office of Inspector General conducted the investigation with assistance from Customs and Border Protection - Office of Professional Responsibility and BP. Assistant U.S. Attorneys Jongwoo Chung and John Pearson are prosecuting the case.
Federal Jury Convicts Jacksonville Sexual Predator of Possessing Child Sexual Abuse Images That He Produced Using A Hidden CameraRead the Press Release
Jacksonville, Florida – A federal jury has found James Thomas Butler II (41, Jacksonville) guilty of production, attempted production, and possession of child sexual abuse materials. In 2001, Butler was convicted of attempted capital sexual battery and lascivious molestation of a minor, and he has since been registered and designated as a sexual predator. Because of his prior child sex convictions, Butler now faces enhanced penalties of not less than 25 years, and up to 70 years, in federal prison, and a potential life term of supervised release. His sentencing hearing has not yet been scheduled.
According to court documents as well as evidence and testimony during the trial, on May 2, 2018, FBI agents and other law enforcement officers executed a federal search warrant at a residence in north Jacksonville where several sex offenders and sexual predators resided, including Butler. During an interview with law enforcement, FBI agents obtained a smart phone from Butler. A forensic examination of Butler’s phone revealed pornographic videos and images of a minor child that appeared to have been filmed using a camera concealed in the child’s bedroom. Through further investigation, law enforcement identified the child and the residence in Jacksonville where Butler had concealed the camera. On October 2, 2018, FBI agents and personnel executed a federal search warrant at this residence and also arrested Butler.
A search of the residence revealed that Butler had installed a tiny internet-enabled camera device in an air vent in the child’s bedroom and had wired the camera into the house’s electrical system through the attic. Butler was able to control this camera remotely using his smart phone, collecting videos and creating customized screenshots of the child. Butler’s smart phone contained at least 65 videos and 35 screenshots that depicted the child in the child’s bedroom.
This case was investigated by the Federal Bureau of Investigation, the Jacksonville Sheriff’s Office, and the Duval County School Police Department. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
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.
Federal Inmate Convicted at Trial for Possessing A Weapon in PrisonRead the Press Release
WILLIAMSPORT—The United States Attorney’s Office for the Middle District of Pennsylvania announced that on December 16, 2021, Hugo Reynosa, age 26, was convicted of possessing a weapon in federal prison after a bench trial before United States District Court Chief Judge Matthew W. Brann.
According to United States Attorney John C. Gurganus, the evidence presented at trial showed that on May 12, 2020, officers at the United States Penitentiary in Lewisburg, Pennsylvania, initiated a mass search of inmate cells in Hugo Reynosa’s housing block. Officers instructed the inmates to exit their cells without carrying any property. An officer spotted Reynosa exit his cell and throw a bag into a garbage can on the housing range. The officer immediately retrieved and searched the bag, which contained a 6.25-inch piece of metal with a crude handle and sharp point, commonly referred to as a “shank.”
Chief Judge Brann rendered a verdict of guilty on the sole count of the indictment, finding Hugo Reynosa guilty of possessing contraband in prison.
The case was investigated by the Federal Bureau of Prisons and the Federal Bureau of Investigation. Special Assistant U.S. Attorney Drew O. Inman and Assistant U.S. Attorney Alisan V. Martin are prosecuting the case.
The maximum penalty under federal law for this offense is five years’ imprisonment, a three-year term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is required to consider and weigh a number of factors, including the nature, circumstances, and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public, and provide for the defendant’s educational, vocational, and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Federal Guilty Verdict in Six-Year Insider Financial Fraud Scheme Against Delaware Medical PracticeRead the Press Release
WILMINGTON, Del. – A federal jury sitting in Wilmington convicted a Port Deposit, Maryland woman on Wednesday of wire fraud for fraudulently obtaining money from her employer, a Delaware medical practice, by charging unauthorized personal expenses to her business credit card. U.S. District Judge Leonard P. Stark presided over the trial and accepted the verdict.
According to court records and evidence presented, Kimberly Sponaugle, 44, made over 3,000 personal purchases with her business credit card totaling well over $250,000 during a six-year period. While working as a business manager for the medical practice, Ms. Sponaugle misappropriated her employer’s funds to pay for a wide range of goods, including her home power bills and multiple domestic and international vacations for herself and her personal associates. Ms. Sponaugle hid this fraudulent spending by mischaracterizing her personal purchases in the business’s bookkeeping software, denying others access to her credit card statements, and utilizing other means of deception.
David C. Weiss, U.S. Attorney for the District of Delaware, commented on the verdict, “As a business manager, Ms. Sponaugle served in a position of trust. She betrayed that trust, putting personal greed ahead of her job responsibilities and enriching herself by taking her employer’s money. My office and our law enforcement partners will continue to pursue those who commit financial fraud at the expense of their employers.”
“Ms. Sponaugle treated her company’s funds as her own personal bank account, even using them to pay for elaborate vacations and household bills,” said Thomas J. Sobocinski, Special Agent in Charge of the FBI Baltimore Field Office. “The FBI is committed to rooting out and bringing to justice company insiders who use their positions to commit this kind of unconscionable financial fraud. Companies should be reminded that the threat of fraudulent activities increasingly comes from employees on the inside.”
Ms. Sponaugle faces a maximum penalty of 20 years in prison. The sentencing date has yet to be announced. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine Ms. Sponaugle’s sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Weiss and SAC Sobocinski of the FBI Baltimore Field Office, which investigated the case through its Wilmington Resident Agency, made the announcement. Assistant U.S. Attorneys Carly Hudson and Ruth Mandelbaum are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 1:19-CR-103.
Federal Grand Jury Indicts Man for Weapons ViolationsRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on Friday, December 10, 2021, SHAWN BREAUX, age 29, resident of New Orleans, LA, was charged in a sealed two-count indictment for weapons violations that occurred on October 8, 2021. The indictment was unsealed on December 15, 2021.
In Count 1 of the indictment, BREAUX is charged with possessing two firearms on October 8, 2021, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). If convicted, BREAUX faces a maximum sentence of up to 10 years of imprisonment, a fine of up to $250,000, a period of up to 3 years of supervised release, and a mandatory special assessment fee of $100.00. Count 2 of the Indictment charges BREAUX with being in possession of a machine gun in violation of Title 18, United States Code, Sections 922(o) and 924(a)(2). If convicted, BREAUX faces a maximum sentence of up to 10 years of imprisonment, a fine of up to $250,000, a period of up to 3 years of supervised release, and a mandatory special assessment fee of $100.00.
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 Investigation and the New Orleans Police Department. The case is being prosecuted by Assistant United States Attorney Inga Petrovich of the Violent Crime Unit of the U.S. Attorney's Office.
Fairview Aerial Sprayer Pays $240,000 to Settle Trespass and Destruction of Public Property ClaimsRead the Press Release
A Fairview-based aerial herbicide application company has paid $240,000 to settle allegations of trespass and destruction of United States property at Skiatook and Birch Lakes, in Osage County, announced Clinton J. Johnson, Acting United States Attorney for the Northern District of Oklahoma.
According to the settlement agreement, the United States owns thousands of acres of land under and surrounding Birch Lake and Skiatook Lake, which are managed by the United States Army Corps of Engineers (“USACE”) and provide crucial wildlife habitat, recreational opportunities, and designated hunting areas for the benefit of the public. Regier Flying Service, LLC (“Regier Flying”) is an FAA-certified aerial herbicide application company.
The United States contends that, in 2014 and 2017, Regier Flying committed trespass when it applied Spike 20P herbicide onto United States land around Skiatook and Birch Lakes without consent. This resulted in the death of thousands of mature trees on approximately 138 acres of United States land, which negatively impacted existing wildlife habitat and public recreational opportunities.
“The U.S. Army Corps of Engineers works daily to safeguard wildlife habitat and provide public use opportunities on federal land. The destruction of those lands will not be tolerated,” said Acting U.S. Attorney Clint Johnson. “This case should serve as a deterrent and a reminder that the United States will take appropriate action, whether civil or criminal, to hold accountable those who violate laws that protect federal land.”
This settlement resolves the pending civil action in the United States District Court for the Northern District of Oklahoma captioned United States of America v. Drummond Ranch, LLC et al., Docket No. 4:19-cv-00077-JED-SH. This case was handled by Special Assistant United States Attorneys Sarah Gruber and Anne Thidemann.
Former Detroit Police Detective Charged with BriberyRead the Press Release
DETROIT - A federal criminal complaint was unsealed today charging a former Detroit Police Department detective with bribery Acting United States Attorney Saima S. Mohsin announced. The charges were brought against Michael Pacteles, 44, of Southgate, who resigned from the Detroit Police Department (DPD) in 2020 and who is currently an officer with the Hamtramck Police Department.
Mohsin was joined in the announcement by Timothy Waters, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation and Detroit Police Chief James E. White.
According to the criminal complaint, while working as a detective with DPD, Pacteles accepted bribes, including a vehicle and $3,200 in cash, from a towing company operator. In return, Pacteles agreed to provide “favors” for the towing company operator. For instance, instead of properly recovering stolen vehicles from the towing company operator’s possession, Pacteles removed them from the DPD database that showed they were stolen. Pacteles also agreed to provide the towing company operator with information about vehicles from the Michigan Law Enforcement Information Network (or LEIN), a restricted law enforcement database.
The bribery charge carries a maximum sentence of 10 years’ imprisonment and a fine of $250,000.
This is the fifth defendant charged as part of the government’s investigation known as “Operation Northern Hook.” Northern Hook is an investigation of corruption within the government and the Police Department of the City of Detroit relating to the towing industry and other matters.
Acting United States Attorney Mohsin said, “The vast majority of police officers are hardworking dedicated public servants. Our office is committed to prosecuting those officers who cast a stain on these officers and who betray the public trust by accepting bribes. Today’s criminal complaint shows our office’s commitment to that goal.”
“The citizens of Detroit deserve a city government that is free of bribes and corruption. These individuals erode the public’s trust in government and in the men and women who serve the city with integrity,” said Timothy Waters, Special Agent in Charge of the FBI in Michigan. “The FBI will continue to prioritize the investigation of government employees who break the law. We encourage the public to report instances of public corruption to the FBI at [email protected].”
Chief White said, “I am disappointed with these allegations but fully supportive of this investigation. I would like to emphasize, that the alleged actions of one former officer does not represent the vast majority of the exceptional men and women of the Detroit Police Department who go above and beyond the call of duty for our community each and every day. We will continue to fully cooperate with our federal partners to ensure that Detroit Police Department employees involved with alleged corruption and misconduct are held accountable for their actions. The Detroit Police Department takes pride in our transparency and aspire to achieve high standards of service and accountability and recognize that these alleged actions fall far short of those goals."
The investigation of this case was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Steven P. Cares.
A criminal complaint is only a charging document and is not evidence of guilt.
Eagle Butte Man Sentenced on Gun ChargeRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that an Eagle Butte, South Dakota, man convicted of Prohibited Person in Possession of a Firearm was sentenced on December 13, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Devin Dolphus, age 22, was sentenced to 26 months in federal prison, followed by three years of supervised release, forfiture of firearms and ammunition, and a $100 special assessment to the Federal Crime Victims Fund.
Dolphus was indicted for Prohibited Person in Possession of a Firearm by a federal grand jury on July 13, 2021. He pled guilty on September 27, 2021.
The conviction stemmed from an incident on May 31, 2021, in Eagle Butte, when Cheyenne River Sioux Tribe officers initiated a traffic stop on Dolphus and recovered drug paraphernalia, two firearms, and ammunition from the vehicle. Dolphus was previously convicted in June 2019 for a felony firearm offense, and based on the conviction, knew he was prohibited from possessing firearms.
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.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services, the Northern Plains Safe Trails Drug Enforcement Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Dolphus was immediately turned over to the custody of the U.S. Marshals Service.
Defendant Sentenced to 78 Months in Prison for Transnational Fraud SchemeRead the Press Release
Earlier today, in federal court in Central Islip, Ajay Sharma, a citizen of India, was sentenced by United States District Judge Joan M. Azrack to 78 months’ imprisonment for conspiracy to commit wire fraud as part of a large-scale telemarketing scheme. The Court also ordered Sharma to pay restitution of $3,266,714, and forfeiture in the amount of $1,005,421.
Breon Peace, United States Attorney for the Eastern District of New York, and Thomas Fattorusso, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI) announced the sentence.
“Today’s sentence demonstrates that defendants like Ajay Sharma, who perpetrate transnational fraud schemes through lies and by instilling fear in their victims, will be brought to justice and pay for their crimes,” stated United States Attorney Peace. “This case was the result of a coordinated law enforcement response to disrupt fraudulent call centers based in India and protect the public from financial exploitation.” Mr. Peace thanked William Kalb, Special Agent-in-Charge, Treasury Inspector General for Tax Administration, Northeast Field Division; IRS-CI; the New York City Police Department and the Garden City Police Department for their invaluable assistance with the case.
“Ajay Sharma received a just sentence this morning for relentlessly stealing millions of dollars from innocent Americans by posing as Federal employees,” stated IRS-CI Special Agent-in-Charge Fattorusso. “IRS Criminal Investigation is determined to dismantle these criminal enterprises who victimize hard working United States citizens for personal gain. IRS-CI will continue to protect our financial system from fraudsters both abroad and here at home.”
Sharma, as the director and owner of APS Technology, was the leader and organizer of the fraud scheme. Between January 2018 and September 2018, operating from call centers in India, Sharma and his co-conspirators targeted victims in the United States and falsely claimed to be employees of the Internal Revenue Service, the Social Security Administration or the Drug Enforcement Administration. The victims were informed that they owed a sum of money to the United States government, or one of its agencies, and that they would be arrested if the debts were not promptly paid. After victims wired payments to bank accounts that the defendants had opened in the names of inactive and shell corporations to receive the fraud proceeds, the funds were withdrawn by Sharma and his co-conspirators.
Four of Sharma’s co-conspirators, Ankur Sharma, Armughanul Asar, Harpreet Singh and Jamal Zafar previously pleaded guilty and are awaiting sentencing. Two other co-conspirators, Ricardo Urbino and Kamal Zafar are scheduled for trial in March 2022.
The government’s case is being prosecuted by the Office’s Long Island Criminal Division. Assistant United States Attorneys Charles P. Kelly and Madeline O’Connor are in charge of the prosecution.
The Defendant:
AJAY SHARMA
Age: 45
Mumbai, IndiaE.D.N.Y. Docket No. 19-CR-024 (JMA)
Council Bluffs Man Sentenced for Methamphetamine and Firearm OffensesRead the Press Release
COUNCIL BLUFFS, IA – A Council Bluffs man was sentenced Tuesday, December 14, 2021, by United States District Court Judge Rebecca Goodgame Ebinger to 180 months in prison for Possession with Intent to Distribute Methamphetamine and Possession of a Firearm in Furtherance of a Drug Trafficking Crime. According to court documents, Matthew Michael Loth, age 42, pleaded guilty to the methamphetamine and firearm offenses in July of 2021.
On March 4, 2021, Loth was parked at a gas station and law enforcement stopped to talk to him after noticing the car did not have a front license plate. Communications advised the officers Loth had a warrant for his arrest for a violation of supervised release. A trained and certified narcotics-sniffing dog alerted and indicated to the odor of a controlled substance in Loth’s vehicle and police searched the car. A firearm with a loaded magazine and 109 grams of methamphetamine were located.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Council Bluffs Police Department, Douglas County (Nebraska) Sheriff’s Office and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Council Bluffs Man Sentenced for Firearm OffenseRead the Press Release
COUNCIL BLUFFS, IA – A Council Bluffs man was sentenced Tuesday, December 14, 2021, by United States District Court Judge Rebecca Goodgame Ebinger to 120 months in prison for Prohibited Person in Possession of a Firearm. According to court documents, Clarence L. Woolsoncroft, age 58, pleaded guilty to the firearm offense in August of 2021. Woolsoncroft will serve three years of supervised release following his prison term.
In April of 2021, the Council Bluffs Police Department received an anonymous telephone call reporting Woolsoncroft, who was a convicted felon, used drugs and had firearms. The caller also reported Woolsoncroft threatened them. Council Bluffs Police Department began an investigation which led to a search warrant being served on Woolsoncroft’s residence and the subsequent recovery of two handguns and three shotguns with a large amount of assorted ammunition. The investigation also developed Woolsoncroft regularly used methamphetamine, and an incident in which after Woolsoncroft had used methamphetamine, he pointed an unloaded handgun at a person and pulled the trigger, before telling the person the firearm was not loaded.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Council Bluffs Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. This case was prosecuted by the United States Attorney’s Offices for the Southern District of Iowa.
Convicted Felon Charged with Drug and Firearms OffensesRead the Press Release
BOSTON – A repeat convicted felon has been charged for allegedly possessing a firearm and multiple rounds of ammunition and fentanyl intended for distribution.
Francisco Gabriel Diaz, 31, of Boston, was charged with one count of possession with intent to distribute 40 grams or more of fentanyl and one count of being a felon in possession of a firearm. Following an initial appearance today before U.S. District Court Magistrate Chief Judge M. Page Kelley, Diaz was detained pending a probable cause hearing scheduled for Dec. 30, 2021.
According to the charging documents, on June 24, 2021, a search of the residence where Diaz was staying resulted in the recovery of a black Taurus G2S 9mm firearm, a 9mm magazine containing seven live 9mm rounds, a 9mm magazine containing one live 9mm round, over 40 grams of fentanyl, several plastic bags containing crack cocaine, a box of sandwich bags and a digital scale. Diaz is prohibited from possessing a firearm due to four previous felony convictions: a May 2020 conviction for possession of cocaine base; an October 2017 conviction for possession with intent to distribute a Class B Substance; an April 2017 conviction for possession with intent to distribute a Class A Substance and Class B Substance; and a January 2014 conviction for assault with a dangerous weapon. Diaz was on federal supervised release for the May 2020 cocaine conviction at the time of the search.
The charge of possession with intent to distribute 40 grams or more of fentanyl provides for a sentence of at least five years and up to 40 years in prison, at least four years and up to a lifetime of supervised release and a fine of up to $5 million. The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division. Assistant U.S. Attorney Benjamin A. Saltzman of Mendell’s Major Crimes Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The details contained in the criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Cocaine Supplier Pleads Guilty and is Sentenced to over 10 Years in Federal Prison for Cocaine Trafficking ChargesRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell sentenced Jack Anderson IV, age 45, of Tucson, Arizona, to 126 months in federal prison after Anderson entered a guilty plea to conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine.
The guilty plea and sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Harford County State’s Attorney Albert J. Peisinger, Jr.; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration; Sheriff Jeffrey Gahler of the Harford County Sheriff’s Office; and the Harford County Narcotics Task Force comprised of members of the Harford County Sheriff's Office, Aberdeen Police Department, Bel Air Police Department, and Havre de Grace Police Department.
According to Anderson’s plea agreement, on May 17, 2019, members of the Harford County Narcotics Task Force conducted an investigation into co-conspirator Che Jaron Durbin, age 43, of Aberdeen, Maryland, after receiving notification that a parcel containing one kilogram of cocaine was shipped by Anderson from Tucson, Arizona to Durbin in Aberdeen, Maryland. Detectives learned from the United States Postal Inspection Service that the parcel was scheduled to be delivered to an Aberdeen, Maryland apartment.
After the parcel was delivered, detectives continued to watch the Aberdeen, Maryland apartment. Soon after, investigators observed a woman, later identified as Jameka Cara Thompson, leaving the apartment and place the parcel in her vehicle.
Shortly after Thompson arrived at her destination, detectives detained her and executed a search warrant on her vehicle. Upon searching the parcel, detectives recovered one kilogram of compressed cocaine.
On January 22, 2020, law enforcement was informed that a parcel had been sent by Durbin to Anderson in Arizona. The parcel was believed to contain cash. Investigators then arranged to have the parcel sent back to Maryland for further investigation. Upon examination of the parcel, investigators discovered $82,300.00 within a box originally labeled as high-end headphones.
As stated in Anderson’s plea agreement, in February 2020, law enforcement began to conduct a wiretap investigation on several narcotics dealers in Harford County, Maryland, including Durbin. As a result of the investigation, Anderson was identified as Durbin’s cocaine supplier.
Further, in May 2020, law enforcement while conducting surveillance observed Durbin and Anderson meet at a Tucson, Arizona hotel room, where they met for a brief period of time. Soon after the meeting, Durbin traveled to the Tucson, Arizona Airport where he was seen meeting with Thompson and driving her back to his hotel room. Thompson ultimately obtained a bulk supply of cocaine from Anderson at the Arizona hotel.
Based on the surveillance by task force detectives of Durbin, Thompson, and Anderson, in Arizona, law enforcement obtained and executed a search warrant on Thompson’s vehicle after she arrived back in Harford County, Maryland. As a result of the search warrant, officers seized an additional 1.4 kilograms of cocaine.
Anderson agreed that based on his role in the conspiracy he was involved in the distribution of at least five kilograms but less than fifteen kilograms of cocaine.
United States Attorney Erek L. Barron commended the Harford County State’s Attorney’s Office, the DEA, Harford County Sheriff’s Office, and the Harford County Narcotics Task Force for their work in the investigation. Mr. Barron thanked Assistant Special U.S. Attorney Christopher J. Romano, 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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Chesapeake Man Pleads Guilty to Firearms TraffickingRead the Press Release
NORFOLK, Va. – A Chesapeake man pleaded guilty today to conspiracy to make false statements in connection with 45 firearm transactions.
According to court documents, from June 2019 through June 2020, Kevin Staton, Jr., 23, engaged in the business of buying and selling 45 firearms without a license. In furtherance of this illegal activity, he made false official statements on ATF forms in order to buy firearms. Staton claimed he was the actual buyer of the firearms, but, in actuality, he was purchasing the firearms for other individuals or with intent to resell them. Staton would coordinate with co-conspirators to identify firearms for purchase through online firearm marketplaces.
When Staton was interviewed by ATF agents he said, “Guns are like money,” and “I’m buying them knowing I’m going to be selling them.”
At least 15 of the 45 firearms Staton purchased were recovered from crime scenes in other cities and states. All but one of those firearms had been used for a crime or recovered by law enforcement less than one year after purchase from Staton.
Staton is scheduled to be sentenced on April 27, 2022. He faces a maximum penalty of 15 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Greg D. Underwood, Norfolk Commonwealth’s Attorney; and Charlie J. Patterson, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after U.S. Magistrate Judge Lawrence R. Leonard accepted the plea.
Assistant U.S. Attorney John F. Butler and Special Assistant U.S. Attorney Graham M. Stolle are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:21-cr-141.
Cherokee County man pleads guilty to possession of child pornographyRead the Press Release
ATLANTA - Jonathan Blane Allred, who was previously convicted of possession of child pornography and used his email and Dropbox accounts to download hundreds of sexually explicit images of children, has pleaded guilty to possession of child pornography. Images and videos of children as young as six years old, engaged in sexually explicit conduct, were among the items confiscated.
“It is particularly disturbing when a defendant who has already served a significant federal sentence for possession of child pornography returns to society only to again engage in this kind of violation of children,” said U.S. Attorney Kurt R. Erskine. “Possessing child pornography victimizes and abuses the children in the images each time they are disseminated and viewed. This office remains committed to protecting our children from those that seek to exploit them.”
“Clearly, Allred has not gotten the message that this behavior will not be tolerated and that HSI and its law enforcement partners will continue to hold him accountable for actions,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama.
“Protecting our children from these types of offenders will always be a priority. We appreciate the partnership we have with the National Center for Missing and Exploited Children and are pleased Allred is off the streets of Cherokee County,” said Cherokee County Sheriff Frank Reynolds.
According to U.S. Attorney Erskine, the charges and other information presented in court: In March 2021, The National Center for Missing and Exploited Children (NCMEC) received a report about a Dropbox account user that had uploaded six files depicting children under the age of 12 engaged in sexually explicit conduct. That information was provided to Cherokee County Sheriff’s Office.
Cherokee County deputies then executed search warrants for the Dropbox and an associated email account and determined that the accounts belonged to Allred and were being accessed from Allred's home. Contained in Allred's Dropbox and email accounts were nearly 600 images, videos, and gifs of children engaged in sexually explicit conduct.
On June 14, 2021, Cherokee County deputies arrested Allred and executed a search warrant for the contents of his laptop and phone. In addition to the hundreds of images found in his accounts, Allred had also stored child pornography on the hard drive of his computer.
Allred was convicted for possession of child pornography in March 2010, in the Northern District of Georgia. He began serving a term of supervised release in August 2019. Allred also faces revocation of his supervised release as a result of possessing child pornography.
Jonathan Blane Allred, 49, of Waleska, Georgia, pleaded guilty to possession of child pornography on December 16, 2021. Sentencing is scheduled for March 24, 2022, at 3:00 p.m. before U.S. District Judge Eleanor L. Ross.This case is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Cherokee County Sheriff’s Office.
Assistant U.S. Attorney Tiffany R. Dillingham is prosecuting the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
California Man Sentenced for LarcenyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Los Angeles, California, man convicted of Larceny was sentenced on December 13, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Julio Salvador Guevara, age 36, was sentenced to eight months in federal prison, followed by two years of supervised release, a special assessment to the Federal Crime Victims Fund in the amount of $100, and restitution in the amount of $825.32.
Guevara was indicted by a federal grand jury on July 17, 2018. He pled guilty on September 20, 2021.
The conviction stemmed from an incident that occurred on January 19, 2018, in Eagle Butte, South Dakota. Guevara stole a pickup truck and fled from several law enforcement officers on the Cheyenne River Sioux Indian Reservation. Guevara was arrested after he stopped the pickup instead of driving over tire spikes placed on the road.
This case was investigated by Cheyenne River Sioux Tribe Law Enforcement Services, the Ziebach County Sheriff’s Office, the Haakon County Sheriff’s Office, and the South Dakota Highway Patrol. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Guevara was immediately remanded to the custody of the U.S. Marshals Service.
Boston Man Charged with Firearm OffensesRead the Press Release
BOSTON – A Boston man has been charged with illegal possession of firearms stemming from his alleged posts on social media.
Dumari Shakur Scarlett-Dixon, 20, was charged with one count of being a drug user in possession of a firearm and ammunition. Following an initial appearance yesterday before U.S. District Court Magistrate Judge Donald L. Cabell, Scarlett-Dixon was detained pending a detention hearing which is scheduled for Dec. 21, 2021.
According to court documents, in September 2021, law enforcement identified Scarlett-Dixon as a member of the Heath Street gang, a Boston-area street gang. Scarlett-Dixon has four unlawful possession of firearm charges currently pending: one in Suffolk County Juvenile Court; one in Dorchester District Court; and two in Roxbury District Court. Additionally, Scarlett-Dixon was on court-ordered home confinement at his grandmother’s residence in Weymouth at the time. It is alleged that agents identified images and posts Scarlett-Dixon made on Snapchat. Many of the Snapchat posts included images of Scarlett-Dixon allegedly holding firearms in a shooting position towards the camera and pictured him in possession of firearms with extended ammunition clips.
According to the charging documents, on Sept. 24, 2021, a search of the Weymouth residence resulted in the seizure of a Bersa 9 millimeter semiautomatic pistol loaded with 14 rounds of ammunition in a high capacity ammunition clip under a pillow on Scarlett-Dixon’s bed. Agents also seized 36 additional rounds of 9 millimeter ammunition and 10 rounds of .380 caliber ammunition. Marijuana blunts were also allegedly observed to be scattered throughout the room. A search of Scarlett-Dixon’s phone revealed that the defendant regularly searched for information about firearms, including “Tactical Green Laser Light Combo Led Pistol Gun Rechargeable Battery,” “High Capacity Magazines” and “Ruger ec9s laser light combo,” in addition to press releases for Boston-area gun and drug trafficking arrests.
The charge of being a drug user in possession of a firearm and ammunition provides for a sentence of up to 10 year in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division made the announcement. Assistant U.S. Attorney Christopher Pohl of Mendell’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Boston Man Arrested for Distributing MethamphetamineRead the Press Release
BOSTON – A Boston man was arrested yesterday on charges of methamphetamine distribution.
Joshua Westbrook, 25, was indicted on one count of distribution and possession with intent to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine. Westbrook was detained following an initial appearance today before U.S. District Court Magistrate Judge Judith G. Dein.
According to the indictment, on or about Nov. 9, 2021, Westbrook distributed 50 grams or more of methamphetamine in Dorchester.
The charge of distribution and possession with intent to distribute 50 grams or more of methamphetamine provides for a sentence of at least 10 years and up to life years in prison, at least 5 years and up to a lifetime of supervised release, and a fine of up to $10 million. Sentences are imposed by federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The operation was conducted is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Commissioner Carol Mici of the Massachusetts Department of Correction made the announcement today. Valuable assistance was provided by the United States Postal Service; Plymouth County and Norfolk County Sheriff's Offices; Massachusetts State Police; and the Portland (Maine), Watertown, Waltham, Concord, Reading, Peabody and Hudson Police Departments. Assistant U.S. Attorney Alathea Porter of Mendell’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bellingham, Washington, woman sentenced to prison for ‘shunt’ attack on BNSF trackRead the Press Release
Seattle – A 28-year-old Bellingham, Washington, woman was sentenced today in U.S. District Court in Seattle to 12 months and one day in prison and three years of supervised release for committing an act of violence against a railroad carrier, announced U.S. Attorney Nick Brown. Ellen Brennan Reiche, was one of two people arrested on the BNSF Railway tracks near Bellingham, near midnight on November 28, 2020. Reiche was convicted September 9, 2021, of placing a ‘shunt’ – a device that interferes with train signals – on the tracks. At the sentencing hearing, Chief U.S. District Judge Ricardo S. Martinez called her offense “extremely serious.” In addition to the prison sentence, the court ordered that Reiche must complete 100 hours of community service while on federal supervision.
“Placing a shunt on active railroad tracks puts lives in danger – to drivers preparing to cross the tracks who may not get any warning lights of an approaching train, and to the homeowners in the area who could be endangered by a train derailment,” said U.S. Attorney Nick Brown. “In this case the shunt was placed just prior to the arrival of a train with 97 tanker cars loaded with crude oil. Thankfully, the device was discovered and removed before it could cause a tragedy.”
According to records in the case and testimony at trial, on the night of November 28, 2020, Reiche and co-defendant Samantha Frances Brooks, 24, were observed on video surveillance walking on the tracks near a crossing in Bellingham. Whatcom County Sheriff’s deputies responded to the scene. The defendants were detained for trespassing, and a shunt was found on the tracks near where the deputies had first encountered them. Reiche was carrying a paper bag containing wire, a drill with a brush head, a magnetic adhesive and gloves. The wire was similar to the wire used in the shunting incidents. The shunt that was placed on the tracks could have interfered with the railroad crossing warnings at Cliffside Drive in Bellingham. A train carrying crude oil, among other cargo, was scheduled to come through that area soon after this incident.
The FBI’s Joint Terrorism Task Force worked with BNSF police to investigate the placement of 41 shunts on the BNSF tracks since January 19, 2020. A shunt is comprised of wire that is stretched between the rails and often fastened with magnets, disrupting the systems that indicate a train is on the tracks. On ten occasions, shunts were placed in areas that disrupt the crossing guards where the tracks cross streets, so vehicles could have tried to cross the tracks unaware of the oncoming train. On the night of October 11, 2020, multiple shunts were placed in three different locations in Whatcom and Skagit Counties. The shunts triggered an automatic braking system on a train that was transporting hazardous and combustible material. The emergency braking then caused a portion of the train to decouple from the engine. Decoupling has the potential to cause a derailment—in this case—of tanker cars of flammable gas in a residential area.
In asking for a 27-month sentence, prosecutors wrote to the court about the danger of shunts, including the potential to cause derailments, which can be deadly and cause extensive environmental damage. “There have been at least two examples just within the past year that hit close to home. In one, an oil train derailed near Custer, Washington, causing massive fires and other damage, and in the other, a passenger train bound for Seattle derailed in Montana, killing three people and injuring dozens. Here, if a train had derailed where Reiche placed the shunt, numerous nearby homes and the train crew would have been badly affected. And even setting aside the risk of a derailment, the shunt endangered anyone crossing the tracks at Cliffside Drive. There might have been no warning from the crossing system at all.”
Co-defendant Brooks pleaded guilty July 9, 2021, to interference with a railroad signaling system. Brooks was sentenced in October to 6 months in prison and 3 years of supervised release, with Brooks ordered to complete four months of home confinement and 200 hours of community service while on supervision.
The case was investigated by the FBI’s Joint Terrorism Task Force, which includes agents from Customs and Border Protection (CBP), in connection with the BNSF Railway Police. Critical investigative assistance is being provided by the Whatcom County Sheriff’s Office.
The case was prosecuted by Assistant United States Attorneys Philip Kopczynski, Sok Tea Jiang, and Thomas Woods.
Asheville Man Is Sentenced to 28 Years on Child Pornography ChargesRead the Press Release
ASHEVILLE, N.C. – Coyoami Ruiz Miguel, 26, of Asheville, was sentenced late yesterday by Chief U.S. District Judge Martin Reidinger to 28 years in prison on child pornography charges, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Chief David Zack of the Asheville Police Department (APD) joins U.S. Attorney King in making today’s announcement.
According to court documents and court proceedings, from July 2019 to April 2020, Miguel used Snapchat and other messaging apps popular with teenagers to contact at least 15 minor females in the Asheville area for the purpose of inducing the minors to produce sexually explicit images and engage in sex acts with him in exchange for money. In April 2020, APD officers arrested Miguel and seized numerous electronic devices. A forensic analysis of the devices revealed that Miguel possessed dozens of videos and images of teenage girls engaging in sexually explicit conduct. Some of the videos also depicted Miguel engaging in sex acts with the minors. As Miguel previously admitted in court, the defendant used the mobile payment service Cash App to pay the underage victims for the child pornography and sex acts.
On January 13, 2021, Miguel pleaded guilty to possession of child pornography and using a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. In making today’s announcement, U.S. Attorney King commended the Asheville Police Department for their investigation of the case and thanked Homeland Security Investigations, the North Carolina State Bureau of Investigation, the Buncombe County Sheriff’s Office, and the Henderson County Sheriff’s Office for their invaluable assistance.
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In a separate case, Judge Reidinger sentenced Kenneth Ricky Ingle, Jr., 35, of Shelby, North Carolina, to 20 years in prison and a lifetime of supervised release on child pornography charges. According to documents filed in this case, in August 2020, Ingle used the Kik messenger app to engage in sexually explicit communications with a 14-year-old female residing in Florida. Over the course of their exchanges, Ingle induced the minor to send him videos and images of herself depicting sexually explicit conduct.
U.S. Attorney King credited the FBI in North Carolina, under the direction of Special Agent in Charge Robert R. Wells, with the investigation leading to Ingle’s prosecution.
The defendants are in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
Miguel will also be subject to deportation proceedings upon the completion of his federal sentence. If Miguel is not deported, or later returns to the United States, he was ordered by Judge Reidinger to serve a lifetime of supervised release and to register as a sex offender.
Both cases were prosecuted by the U.S. Attorney’s Office in Asheville as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Antitrust Division Seeks Additional Public Comments on Bank Merger Competitive AnalysisRead the Press Release
The Department of Justice’s Antitrust Division announced today that it is seeking additional public comments until Feb. 15, 2022, on whether and how the division should revise the 1995 Bank Merger Competitive Review Guidelines (Banking Guidelines). The division will use additional comments to ensure that the Banking Guidelines reflect current economic realities and empirical learning, ensure Americans have choices among financial institutions, and guard against the accumulation of market power. The division’s continued focus on the Banking Guidelines is part of an ongoing effort by the federal agencies responsible for banking regulation and supervision.
“The Antitrust Division shares with its federal partners an interest in ensuring bank mergers do not harm competition and the competitive process,” said Assistant Attorney General Jonathan Kanter of the Antitrust Division. “I commend Director Chopra for his leadership in this area, and look forward to reviewing updated comments as the division undertakes this important review. I am grateful to those stakeholders who participated in the public comment process so far, and I invite them and any other interested parties to remain engaged in it.”
On Sept. 1, 2020, the division issued a press release seeking comments on whether and how the Banking Guidelines should be revised. The call for public comment included six specific questions, including whether any new guidance should be bank-specific, whether any new bank merger guidance should be jointly issued, whether the 1800/200 Herfindahl-Hirschman Index (HHI) screen should be updated, and whether there should be a de minimis exception. Building on the responses, the updated call for comment focuses on whether bank merger review is currently sufficient to prevent harmful mergers and whether it accounts for the full range of competitive factors appropriate under the laws.
As part of its ongoing review, the division invites interested persons, including banks, other financial institutions, small businesses, small and local banks, laborers and workers, and other industry stakeholders, to provide information or comments relevant to whether the division should revise the Banking Guidelines or change the way it analyzes bank mergers to reflect modern trends in financial services and banking competition. In particular, the division seeks public comments on the issues found in the Antitrust Division Banking Guidelines Review - Public Comments Topics & Issues Guide. The division has and will continue to consult with the Federal Reserve, the Office of the Comptroller of Currency and the Federal Deposit Insurance Corporation, and will review and consider public comments before deciding on the most appropriate course of action.
Comments on the Banking Guidelines can be emailed to [email protected] and must be received no later than Feb. 15, 2022.
Alcoa to Clean up Remaining Surface Contamination at Former East St. Louis Aluminum Plant Under Federal SettlementRead the Press Release
Alcoa Corporation and Howmet Aerospace, successors to Alcoa Incorporated, and the City of East St. Louis, Illinois, will clean up hazardous waste disposal sites surrounding Alcoa’s former aluminum manufacturing plant in East St. Louis to resolve federal liability. The settlement will require the companies to clean up radium, arsenic, chromium, lead and other hazardous substances detected in soils at an estimated cost of $4.1 million and reimburse all future costs incurred by the United States in overseeing the cleanup. The complaint filed simultaneously with the proposed consent decree alleges that defendants are liable for the cleanup of hazardous wastes generated by and disposed of on and around the site of the Aluminum Company of America’s aluminum manufacturing and production plant that operated from 1903 until 1957.
“Today’s settlement ensures that Alcoa will continue to clean up the hazardous wastes its industrial activities left behind more than 60 years ago,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The work to be performed under this settlement will protect nearby residents and the environment from any future exposure to the hazards from the former plant operations.”
“For many decades, the residents of East St. Louis have lived near hazardous wastes located at the former Alcoa aluminum production site,” said Acting Assistant Administrator Larry Starfield of the Environmental Protection Agency’s (EPA) Office of Enforcement and Compliance Assurance. “Today’s settlement means a safer environment for neighboring communities, including communities that have been historically overburdened by pollution.”
Under the settlement, Alcoa Corporation and Howmet Aerospace, and the City of East St. Louis, which owns some of the property, will be required to implement the cleanup remedy selected by EPA for over 180 acres designated as Operable Unit 2, by excavating approximately 40,000 cubic yards of near-surface hazardous waste material to a depth of at least two feet, consolidating it with other waste from the former plant, and covering it with a minimum of two feet of clean soil that will be seeded to meet the requirements of applicable Illinois regulations. Stormwater controls also will be installed or reconfigured to protect local properties. This remedy follows on the cleanup of the adjacent Operable Unit 1, which is 220 acres of the former plant facility. Any groundwater contamination will be the subject of future investigation by EPA.
More information about this settlement can be found at:
https://cumulis.epa.gov/supercpad/cursites/csitinfo.cfm?id=0508010.The consent decree, lodged in the U.S. District Court for the Southern District of Illinois, is subject to a 30-day public comment period and final court approval. The consent decree will be available for viewing at https://www.justice.gov/enrd/consent-decrees.