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Thursday 9 December 2021
Hardin County Man Guilty of Child Pornography ViolationsRead the Press Release
BEAUMONT, Texas – A Lumberton man has pleaded guilty to federal child pornography violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Stephen John Pieper, 23, pleaded guilty to three counts of production of child pornography today before U.S. District Judge Marcia A. Crone.
According to court documents, an investigation into claims that Pieper had sexually exploited teen girls revealed Pieper had engaged in sexual activity with three victims, aged 15 and 16-years old. As part of the sexual contact with the victims, Pieper used his own cellular phone to record the minors engaged in sexually explicit conduct. Pieper admitted to uploading the videos and images he captured of the victims into Snapchat accounts. Pieper’s exploitation of the three victims spanned 2016 through 2018, during which time Pieper was an adult who was more than 5 years older than his victims.
Pieper was indicted by a federal grand jury on April 7, 2021. He faces a minimum of 15 years and up to 30 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case is being investigated by Homeland Security Investigations and the Texas Attorney General’s Office and prosecuted by Assistant U.S. Attorney Rachel Grove.
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Greenville Man Sentenced to 15 Years in Prison for Federal Firearms ChargeRead the Press Release
RALEIGH, N.C. – A Greenville man was sentenced today to 180 months in prison for possessing multiple firearms as a convicted felon in violation of federal law. On September 1, 2021, Errol Rahnell Taheim Baston pled guilty.
According to court documents and other information presented in court, Baston, 37, was found to be in possession of three firearms despite being a convicted felon. On April 19, 2021, the Greenville Police Department’s (GPD) Violent Criminal Apprehension Team (VCAT), Emergency Response Team (ERT), Drone Unit and K-9 Unit, responded to 3816 Sterling Pointe Drive to serve arrest warrants on Baston for Attempted First Degree Murder, Second Degree Kidnapping, Assault by Strangulation and Assault on a Female. Greenville Police received information that Baston held a female subject against her will inside the residence, assaulted her, and attempted to drown and kill her in front of her children. Greenville Police also learned that Baston had access to multiple firearms and was known to randomly discharge his firearms in his backyard.
GPD positioned an armored rescue vehicle (ARV) and public speaker system in front of Baston’s residence. Despite GPD’s multiple attempts to convince Baston to exit the residence, he refused to do so and a standoff ensued. ERT officers observed Baston moving throughout the house and looking through blinds. During the standoff, assets deployed by GPD’s Drone Unit captured Baston standing in his back-patio area attempting to hide an AR-15 style rifle under the fence into the adjacent residence’s patio.
At this point, ERT officers breached the front door and Baston fled on foot from the residence out the back door. Baston ran about 100 yards before a K9 officer detained him and Greenville Police arrested him. The entirety of the response and chase was captured on the drone video.
Following Baston’s arrest, VCAT detectives and officers executed a search warrant on the residence. Inside Baston’s residence, GPD recovered multiple loaded firearms and ammunition, including one 5.56 caliber semi-automatic rifle, one 12-gauge shotgun, one .40 caliber handgun, and over 60 rounds of ammunition. Officers also recovered two spent rifle shell casings in the patio area and clumps of the female subject victim’s hair that was apparently pulled out by Baston during the assault.
On April 21, 2021, agents with the Bureau of Alcohol, Tobacco, and Firearms (ATF) arrested Baston on a federal firearms charges after they applied for and secured a criminal complaint from United States Magistrate Judge Kimberly A. Swank.
Baston was sentenced as an Armed Career Criminal due to three prior felony convictions for violent crimes, including First Degree Robbery – Use of a Dangerous Weapon, First Degree Robbery – Use of a Dangerous Instrument, and Assault with Intent to Cause Serious Physical Injury.
U.S. Attorney Michael F. Easley, Jr. commented: “The United States Department of Justice and the United States Attorney’s Office for the Eastern District of North Carolina are relentlessly pursuing violent offenders and combatting domestic violence. This sentence reflects the shared commitment between our office and our federal and local law enforcement partners to protect our communities from violent crime.”
“Felons and career criminals in possession of firearms are a serious threat to the community and a major concern for law enforcement,” said ATF Special Agent in Charge Vince Pallozzi. “ATF is proud to have been a part of this collaborative effort to bring this violent individual to justice and better the safety in this community.”
Michael F. Easley, Jr., United States Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Greenville Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case and Assistant U.S. Attorney Aakash Singh prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:21-CR-37-BO.
Grand Jury indicts two individuals for several armed robberies of local cellular telephone storesRead the Press Release
ST. LOUIS – On December 8, 2021, a federal grand jury indictment was unsealed charging Bruce Franklin and Kristie Meeks with the armed robberies of several cellular telephone stores located in the city of St. Louis. Both suspects are in custody.
According to court documents, Franklin is charged in a 13-count indictment of robbing five cellular phone stores in St. Louis. Meeks is charged in two of the robberies. The dates and locations of the incidents are:
- On August 26, 2021, the Boost Mobile at 3636 Page Blvd
- On September 4, 2021, the T-Mobile at 4167 Lindell Blvd
- On September 10, 2021, the Boost Mobile at 3636 Page Blvd
- On September 17, 2021, the MetroPCS at 3949 Lindell Blvd
- On September 20, 2021, the T-Mobile at 4167 Lindell Blvd
Franklin was charged with five counts of robbery, five counts of brandishing a firearm during the robberies, and three counts of being a felon in possession of a firearm. Meeks was charged with two counts of robbery and two counts of brandishing a firearm during the robberies.
Charges set forth are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the St. Louis Metropolitan Police Department and the Federal Bureau of Investigation.
Grand Jury indicts St. Louis man in carjacking crime spree that resulted in the death of one victimRead the Press Release
ST. LOUIS – A federal grand jury indicted Carmain Milton for three carjackings in the city of St. Louis that occurred in September 2021. One of the three carjackings resulted in the death of a 72-year-old man.
According to the indictment, on or about September 21, 2021, in the City of St. Louis, within the Eastern District of Missouri, Milton with intent to cause death and serious bodily harm, took from the victim by force, violence, and intimidation a 1998 Toyota Camry.
On or about September 28, 2021, Milton with intent to cause death and serious bodily harm, took from the victim by force, violence, and intimidation a 2016 Audi A6.
That same day, Milton with intent to cause death and serious bodily harm, took from the victim by force, violence, and intimidation a 2004 Honda Element, resulting in the death of the victim.
Charges set forth in the indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the St. Louis Metropolitan Police Department and the Federal Bureau of Investigation. The case is being prosecuted after consultation and cooperation from the St. Louis Circuit Attorney’s Office.
Fort Leonard Wood Man Sentenced for Domestic ViolenceRead the Press Release
SPRINGFIELD, Mo. – The domestic partner of a soldier stationed at Fort Leonard Wood, Missouri, was sentenced in federal court today for strangling and assaulting her in their home.
Kevin Levon Bonner, 33, was sentenced by U.S. Chief District Judge Beth Phillips on Wednesday, Dec. 8, to five years and 11 months in federal prison without parole.
On June 21, 2021, Bonner pleaded guilty to one count of assault of an intimate partner or spouse by strangulation or suffocation, and one count of domestic violence. Bonner admitted that he choked the victim, a sergeant in the U.S. Army and an intimate partner with whom he shared a residence in Fort Leonard Wood, to the point of unconsciousness sometime in the first week of July 2020. The victim, identified in court documents as “S.B.,” later told investigators that both of her eyes were completely bloodshot afterward. She attempted to self-medicate with Visine and compresses, and took a few days off work.
On July 13, 2020, S.B. and Bonner were in their bedroom when Bonner held her against the wall and punched her in the face multiple times. Although her face was severely damaged and she was in significant pain, S.B. reported for work that day. Her command staff ordered her to go to the emergency room. Medical staff observed bilateral blowout fractures to both her orbital sockets and severe petechiae in both eyes, as well as older injuries, such as bruises and scratch marks, and the Army Criminal Investigation Division was notified.
When S.B. was transferred to another hospital, according to court documents, doctors noted she had bilateral orbital fractures, conjunctive hemorrhaging of the eyes, tachycardia, healing fractures of the sixth, seventh, eighth, and ninth ribs on the right side, healing subacute bilateral fractures of the sixth, seventh, and ninth ribs on the left side, and a minimally displaced fracture on the right ninth posterior rib. Doctors also noted contusions on S.B.’s right upper extremities and on her left anterior thigh.
According to court documents, Bonner is a habitual domestic violence abuser. While on parole for abusing his legal wife (identified in court documents as “C.B.”), Bonner fraudulently married the victim in this case and began his cycle of abuse once again.
After his arrest, Bonner repeatedly attempted to influence S.B. to help him get out of detention, to get the case against him dismissed, and to refuse to cooperate with the investigation.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the U.S. Army Criminal Investigations Division and Military Police Investigations.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Former deputy sentenced to more than 8 years in prison for receiving child pornographyRead the Press Release
COLUMBUS, Ohio – A former Franklin County corrections officer was sentenced in U.S. District Court today to 97 months in prison for receiving child pornography. As part of his sentence, he was also ordered to pay more than $50,000 in restitution to the victims depicted in the images.
Daniel P. Heintz, 39, of Columbus, was charged by criminal complaint in February 2021.
According to court documents, authorities were alerted to messages sent by Heintz on Kik Messenger in mid-August 2020. In the conversations, Heintz discussed with an Illinois man their mutual sexual interest for children, and exchanged images of themselves and of pornography, including child pornography. Heintz received sexually explicit videos from the man of a girl 13 to 15 years old.
An affidavit details that Heintz discussed sexually abusing a minor to whom he had access. He discussed photographing the minor in the victim’s sleep and conduct he would commit – as well as sexual abuse the Illinois man could commit – to the minor victim.
On Feb. 11, 2021, law enforcement officials executed search warrants at Heintz’s residence and of his person at his place of employment, the Franklin County Correctional Center on S. Front Street.
A forensic examination of his electronics revealed thousands of images of prepubescent minors, some as young as toddler age, engaged in explicit sexual conduct and being sexually abused.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Westerville Police Chief Charles Chandler and other members of the FBI’s Child Exploitation Task Force announced the sentence imposed today by U.S. District Judge Edmund A. Sargus, Jr. Senior Litigation Counsel Heather A. Hill and Assistant United States Attorney Emily Czerniejewski are representing the United States in this case.
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Former University of Guam Professor and Co-Defendants Sentenced in Bid-Rigging SchemeRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that the following defendants were sentenced in the United States District Court of Guam for conspiracy to rig bids:
Thomas E. Marler, 62, of Piti, Guam, was sentenced to 12 months and 1 day of imprisonment for Conspiracy to Restrain Trade, in violation of 15 U.S.C. § 3, Money Laundering, in violation of 18 U.S.C. §§ 1957 and 2, and Conspiracy to Commit Money Laundering, in violation of 18 U.S.C. § 1956(h). The court ordered 2 years of supervised release, a fine of $20,000, and a special assessment fee of $300.
John Hobart “Bart” Lawrence, 62, of Gresham, Oregon was sentenced to 4 months of imprisonment for Conspiracy to Restrain Trade, in violation of 15 U.S.C. § 3 and Conspiracy to Commit Wire Fraud, in violation of 18 U.S.C.§§ 1349 and 1343. The court ordered 1 year of supervised release, a $4,000 fine, and a special assessment fee of $200
Jayanika Lawrence, 33, of Gresham, Oregon was sentenced to one year probation for Unlawfully Cutting Trees on United States Lands, in violation of 18 U.S.C. § 1853. The court ordered a $25 special assessment fee.
From November 2014 to June 2015, Thomas E. Marler conspired with John Hobart Lawrence and Jayanika Lawrence to rig bids for federally-funded project work pursuant to cooperative agreements between the federal government and the University of Guam (UOG). During this time, Marler was a Professor at UOG as well as the Principal Investigator for certain federally-funded cooperative agreements where his responsibilities included bidding out and awarding project work in compliance with UOG’s procurement process. However, instead of soliciting bids from the Guam community, Marler produced fictitious bids in order to make the procurement process appear legitimate and awarded the project work to Isla Paraiso, a company controlled by Marler, and to Sansar Consulting, a company owned by Jayanika Lawrence and operated with the help of John Lawrence, Marler’s longtime friend and associate. During the time of the conspiracy, the defendants fraudulently obtained over $200,000 in project work.
“A competitive bidding process promotes fairness among those seeking government funded projects,” stated United States Attorney Anderson. “It also ensures that taxpayers are getting the most value for their money. The defendants’ actions undermined this process to the detriment of others, including UOG. Our office applauds our federal partners for their hard work in bringing these defendants to justice.”
"Thomas Marler used his position as principal investigator between the University of Guam and the Department of the Navy to manipulate governmental contracts that were favorable to Isla Paraiso, a company he controlled," said FBI Special Agent in Charge Steven Merrill. "Marler and his associate, John Lawrence, conspired to restrain trade to benefit themselves and then Marler laundered the proceeds of this crime. This investigation into the activities of Thomas Marler and his co-conspirators, John and Jayanika Lawrence, sends a clear message that the FBI, working with our federal partners in the Internal Revenue Service and the Naval Criminal Investigative Service, will continue to hold individuals accountable when they violate federal laws and to protect the integrity of the federal government's contract process."
“Mr. Marler, Mr. Lawrence, and Ms. Lawrence conspired together out of greed to unfairly profit themselves, and they did so at the expense of other businesses operating in an honest manner” said Bret Kressin, IRS Criminal Investigation (IRS-CI) Special Agent in Charge, Seattle Field Office. “Fair business practices exist to promote opportunities for everyone, and IRS-CI will continue to investigate those who cheat and choose not to play fairly.”
The underlying investigation was conducted by the Federal Bureau of Investigation, Internal Revenue Service Criminal Investigation, and Naval Criminal Investigative Service. The case was prosecuted by Benjamin K. Petersburg, Assistant United States Attorney in the District of Guam.
Former Signal Peak Mine official admits conspiring to not report coal mine accidents that injured workersRead the Press Release
BILLINGS – A former official for Signal Peak Mine, LLC, which operates an underground coal mine near Roundup, today admitted allegations that he conspired with others to not report as required work-place accidents that injured employees, U.S. Attorney Leif M. Johnson said.
Dale Lee Musgrave, 52, of Pompeys Pillar, pleaded guilty to conspiracy to submit false statement in records. Musgrave faces a maximum five years in prison, a $250,000 fine and three years of supervised release.
A plea agreement calls for the government to seek the dismissal of two counts of cocaine trafficking, one count of false statements in mine records and one count of false statement at sentencing if the court accepts the agreement.
U.S. Magistrate Judge Timothy J. Cavan presided. Musgrave was released pending further proceedings. A sentencing date will be scheduled before U.S. District Judge Susan P. Watters. Judge Watters will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The government alleged in court documents that from 2013 to 2019, Musgrave worked as the vice president of underground operations at the Signal Peak mine and was in charge of all underground mining operations. As part of an overall investigation into Signal Peak Energy, law enforcement had been investigating allegations that work-place accidents were not being reported as required by law to the Mine, Safety and Health Administration (MSHA). In July 2020, the investigation identified incidents where accidents had not been reported. On two occasions, multiple individuals asserted that Musgrave forced individuals to not report a workplace accident.
In 2018, a worker, identified as John Doe 1, had his fingers crushed while loading mining materials. The injury eventually required partial amputation. The government alleged in court documents that as John Doe 1 was being taken to the hospital by the director of mine safety, the victim received a call from Musgrave and that Musgrave directed John Doe 1 to falsely claim that the injury was unrelated to his work at the mine and that he would make it worthwhile for John Doe 1. The director of mine safety told John Doe 1 that he would support whatever decision he made. John Doe 1 eventually agreed because he felt he had no choice. John Doe 1 and the director of mine safety admitted to investigators that this occurred.
The government further alleged that Musgrave, and others with whom he conspired, including the director of mine safety, were required to complete a MSHA accident, injury and illness report, but Musgrave never completed or submitted the form for this incident. Musgrave also did not report John Doe 1 as an “MSHA reportable injury or illness” as required.
In 2019, another worker, identified as John Doe 2, was injured when dirt and debris fell from an excavated mine wall and partially buried him. The accident injured John Doe 2’s leg, which required surgery. Musgrave, John Doe 2 and other workers present all agreed to not report the injury. Rather, Musgrave and other participants decided that John Doe 2 would falsely state that the injury was not related to John Doe 2’s work at the mine. John Doe 2 admitted this to investigators. John Doe 2 falsely told treating physicians that he had injured his leg in an ATV accident. This fictional account continued for several days until other Signal Peak Mine employees discovered the accident had been concealed and reported it to MSHA.
Earlier in October, as a result of an overall corruption investigation into mine management and operations, Signal Peak Energy pleaded guilty to four counts of willful violation of a health and safety standards, a misdemeanor. A plea agreement in that case recommends that Signal Peak Energy pay a total fine of $1 million and be sentenced to probation. Sentencing is pending. The investigation also resulted in individual convictions of former mine officials and other individuals in associated cases.
Assistant U.S. Attorneys Colin M. Rubich, Zeno B. Baucus and Timothy Tatarka are prosecuting the case, which was investigated by the IRS, FBI, Environmental Protection Agency and the Eastern Montana High Intensity Drug Trafficking Area Task Force.
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Former Security Supervisor Sentenced to over Seven Years in Federal Prison for Bank Fraud Scheme Using the Stolen Identity Information of Co-Workers and Job Applicants from His CompanyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte today sentenced Ricardo Carter II, age 38, of Camp Springs, Maryland, to 87 months in federal prison, followed by five years of supervised release, for bank fraud and aggravated identity theft, in connection with a check kiting and credit scheme using the stolen identity information of coworkers and job applicants to open fraudulent bank and credit accounts, causing more than $119,000 in losses to victim financial institutions. Judge Messitte also ordered Carter to forfeit $119,733.94, which are assets derived from or obtained as a result of Carter’s illegal activities, and to pay restitution in the full amount of the victims’ losses, which is $131,588.24.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Matthew R. Stohler of the United States Secret Service - Washington Field Office.
According to his guilty plea agreement, from January 2015 to December 2017, Carter used stolen names, date of births, and social security numbers to open fraudulent bank accounts at financial institutions in Maryland, Virginia, and Washington, D.C. He then used the fraudulently opened accounts to execute fraud schemes.
Specifically, once Carter opened a bank account using a stolen identity, he deposited nonsufficient funds checks into the account, then withdrew the value of the check in cash before the check cleared, or transferred the funds into another account, using the money for his personal benefit. When Carter used a stolen identity to open a credit account, he used the credit card associated with the account for personal expenditures, causing a loss to the bank and adversely affecting the victim’s credit score. Carter used the stolen identities to open numerous bank accounts at multiple financial institutions, executing the scheme in multiple jurisdictions, and timing the withdrawal of cash from the deposited checks before those checks could clear.
Carter admitted that in order to execute the check kiting and credit scheme, he used his position as a Security Supervisor at Company A to open accounts using the stolen identities of individuals who worked for or applied to work for Company A. By using his access to the personal identification information of those victims, Carter abused his position of trust with Company A.
Carter admitted that he fraudulently opened more than 100 bank and credit accounts using more than 10 stolen identities, resulting in a loss to the financial institutions of at least $119,733.94.
On September 23, 2019, a federal grand jury in the District of Maryland returned an indictment against Carter, charging him with bank fraud and aggravated identity theft. On July 2, 2020, Carter was released pending trial on conditions, including not violating any local, state, or federal laws. In October 2020, while on pre-trial release, Carter applied to rent an apartment in Largo, Maryland, which was not the residence approved by the U.S. Pre-Trial Services Office. In the application to the apartment management company (Victim 6), Carter falsely listed Company A as his employer and used the social security number of another individual, without that person’s knowledge or permission. Carter submitted a fraudulent letter and pay stubs to Victim 6, both purportedly from Company A, falsely verifying Carter’s employment at Company A, in order to obtain Victim 6’s approval of Carter’s rental application. After Carter did not pay his rent, on March 22, 2021, Victim 6 asked Company A to authenticate the letter. Company A confirmed that the document was fraudulent. In total, Carter failed to pay at least $11,854.30 in rent owed to Victim 6.
On April 5, 2021, after a U.S. Magistrate Judge found that Carter had violated his conditions of pre-trial release, Carter was directed to surrender to the U.S. Marshals Service by 3:00 p.m. Carter failed to report as directed and an arrest warrant was issued. Carter was subsequently apprehended in Florida on April 22, 2021.
United States Attorney Erek L. Barron commended the Secret Service for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Kelly O. Hayes, who prosecuted the case.
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Former Miami Lawyer Sentenced to 40 Months of Imprisonment for Five Bank RobberiesRead the Press Release
Miami, Florida – Former Miami lawyer Aaron Patrick Honaker, 42, of Miami, was sentenced to 40 months of imprisonment for committing a string of five bank robberies and attempted bank robberies in South Florida in September and October of 2020.
On August 18, 2021, Honaker pleaded guilty to attempting to rob a Citibank in Coral Gables on September 30, 2020. He admitted that days later he robbed a Chase Bank in Aventura. Two days later, on October 5, 2020, Honaker then attempted to rob a Wells Fargo Bank in Coral Gables. Five days later, he robbed a Chase Bank in Coral Gables. Then, again, five days later, he attempted to rob a HSBC Bank in Coral Gables.
The Defendant also admitted to police that he knew each of the tellers that he approached during the robberies were scared as a result of his conduct. The Defendant told law enforcement that he carried a hammer with him during the commission of the robberies to escape any glass mantraps potentially triggered by bank security.
On December 1, 2021, the Honorable United States District Court Judge Marcia G. Cooke varied downward from a recommended sentencing guidelines range of 60 months’ incarceration and sentenced Honaker to a term of imprisonment of 40 months, to be followed by a term of supervised release of 4 years.
U.S. Attorney Juan Antonio Gonzalez of the Southern District of Florida and FBI Miami Special Agent in Charge George L. Piro made the announcement.
FBI Miami investigated this case, with cooperation and assistance from Coral Gables Police Department and Aventura Police Department. Assistant United States Attorneys Michael Gilfarb, Lauren Astigarraga and Christopher Hudock of the Southern District of Florida prosecuted this case.
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-20063.
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Former DEA Special Agent Sentenced to Prison for Money Laundering and Fraud SchemeRead the Press Release
A former Drug Enforcement Administration (DEA) special agent was sentenced today to 145 months, or more than 12 years, in prison for operating a money laundering and fraud scheme while serving as a special agent with the DEA.
According to court documents, Jose I. Irizarry, 46, of Dorado, Puerto Rico, pleaded guilty on Sept. 14, 2020, to all counts in a 19-count indictment that included conspiracy to commit money laundering, honest services wire fraud, bank fraud, and aggravated identity theft. According to the indictment and his plea agreement, the scheme began shortly after Irizarry filed for personal bankruptcy protection in 2010. Irizarry used his position as a special agent to divert approximately $9 million from undercover DEA money laundering investigations to himself and to co-conspirators. In return, Irizarry received bribes and kickbacks worth at least $1 million for himself and his family, which was used to purchase jewelry, luxury cars, and a home. To carry out the scheme, Irizarry and his co-conspirators used a stolen identity to open a bank account under false pretenses and then utilized the account to receive diverted drug proceeds. The scheme lasted throughout Irizarry’s assignments to the DEA’s Miami Field Division and to its office in Cartagena, Colombia.
“The Department of Justice has zero tolerance for abuse of public office and is committed to ferreting out and prosecuting corruption wherever found, especially among the ranks of law enforcement,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division.
“Public corruption is the FBI’s top criminal investigative priority, and we will not be deterred in our commitment to expose the deceitful even if it means arresting a former federal agent,” said Special Agent in Charge Michael McPherson of the FBI’s Tampa Field Office. “The FBI and its federal, state, and local law enforcement partners will remain steadfast and focused on the work to maintain the public’s trust in government.”
“Former Special Agent Irizarry abused the trust of the American people when he repeatedly violated his oath as a federal law enforcement officer,” said Administrator Anne Milgram of the DEA. “Bringing him to justice reflects the principles of those who faithfully serve and uphold the values of DEA. The men and women of DEA remain committed to protecting our communities and holding all accountable who engage in drug-related crimes. I commend our federal law enforcement partners who investigated this case with utmost professionalism and the prosecutors who worked tirelessly to bring Irizarry to justice.”
“This is an egregious breach of the trust by a federal agent who was sworn to protect and serve the American people,” said Special Agent in Charge John Condon of Homeland Security Investigations (HSI) Tampa Field Office. “While his actions are uncharacteristic of the dedication and integrity demonstrated by the vast majority of government employees, this case should send a message about the serious consequences facing those who would exploit their positions and violate that special trust.”
“Irizarry betrayed his oath to serve and instead used his position to further the criminal activities of a violent drug cartel while enriching himself,” said Special Agent in Charge Brian Payne of IRS-Criminal Investigation (IRS-CI). “While his actions represent an egregious breach of the public trust, they are in no way a reflection of the overwhelming majority of special agents who serve with honor and integrity. IRS-CI will take every step necessary to ferret out those who cave into temptation and grossly misuse their power.”
“We trust law enforcement officials to uphold the oath and bring criminals to justice,” said Special Agent in Charge James F. Boyersmith of the Department of Justice Office of the Inspector General (OIG) Miami Field Office. “Instead, Irizarry actively participated in drug trafficking and money laundering schemes. But today, justice was served. He will rightly serve time for his crimes.”
Irizarry was also ordered to pay $11,233 in restitution and forfeit his interests in a diamond ring and a luxury sports car.
At the conclusion of today’s sentencing in Tampa, Florida, U.S. District Judge Charlene E. Honeywell ordered Irizarry to begin serving his term of imprisonment immediately. Irizarry was remanded into the custody of the U.S. Marshals Service for transfer to the Federal Bureau of Prisons.
The FBI, DEA, HSI, IRS-CI and the Department of Justice OIG investigated the case.
Senior Trial Attorney Mark A. Irish and Deputy Chief Joseph Palazzo of the Criminal Division’s Money Laundering and Asset Forfeiture Section prosecuted the case, with assistance from Acting U.S. Attorney Kurt Erskine of the Northern District of Georgia.
Former Bureau of Prisons Correctional Officer Sentenced to Federal Prison for BriberyRead the Press Release
WILMINGTON, N.C. – A Cameron man was sentenced to 15 months in prison for Bribery of a Public Official. On July 8, 2021, Casey Covington pled guilty to the charge.
According to court documents and other information presented in court, Covington, 46, was employed by the Federal Bureau of Prisons at the Federal Correctional Institution in Butner, North Carolina (FCI Butner) as a correctional officer when he was bribed by three inmates to smuggle contraband into the prison. Specifically, from 2019 to 2020, the inmates, Christopher Lee Davis, Antonio Demond Byers, and Robert Henry Huitt, used their contacts outside the prison to pay Covington over $31,000. A review of Covington’s financial records revealed the payments which originated from the inmates outside contacts. In exchange, Covington used his position as a correctional officer to smuggle marijuana, cell phones, alcohol and tobacco into FCI Butner and then deliver the contraband to Davis, Byers, and Huitt. In May 2020, authorities at Butner recovered two cell phones and marijuana from the cell shared by Davis and Byers. Later in October 2020, officers recovered a cell phone from inmate Huitt.
On July 21, 2021, Huitt pled guilty to Possession of Contraband in Prison and was sentenced to an additional six months’ imprisonment consecutive to the sentence he is currently serving.
On September 21, 2021, Byers pled guilty to Possession of Contraband in Prison and Aiding and Abetting. Sentencing is pending.
On October 6, 2021, Davis also pled guilty to Possession of Contraband in Prison and Aiding and Abetting. He is also pending sentencing.
Michael F. Easley, Jr., United States Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The U.S. Department of Justice, Office of Inspector General (OIG), and the Federal Bureau of Prisons’ Office of Internal Affairs investigated the case and Assistant United States Attorney Robert J. Dodson prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:21-CR-00085-M.
Former Army Soldier Sentenced to 10 Years in Child Pornography CaseRead the Press Release
RALEIGH, N.C. – A United States Army soldier was sentenced today to 120 months in prison and five years of supervised release for Possession of Child Pornography. On September 30, 2021, Nicolas Antonio McElrath, 24, pled guilty to the charges.
According to court documents and other information presented in court, in September 2020, Army Criminal Investigation Division (CID) officers received a cybertip from the National Center for Missing and Exploited Children (NCMEC). NCMEC flagged a file for potentially containing child pornography that had been uploaded via a social media site and forwarded the information to law enforcement. The user of the particular social media account was tracked back to McElrath.
On November 10, 2020, a search warrant was obtained and executed for McElrath’s digital devices. A cellular device was seized from McElrath’s person and other older cellular devices were seized from his residence. McElrath was interviewed after being advised of his Miranda rights and admitted to being in possession of child pornography. He further admitted having a sexual interest in children.
McElrath’s digital devices were forensically analyzed, and agents found multiple photos and videos that depicted child sexual abuse material. In addition, agents found photos that depicted McElrath sexual abusing a child.
Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after the sentencing by U.S. District Judge Terrence W. Boyle. Army CID investigated the case and Assistant U.S. Attorney Charity Wilson prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 21-CR-00283-BO.
Former Aerospace Outsourcing Executive Charged for Key Role in a Long-Running Antitrust ConspiracyRead the Press Release
Note: Mahesh Patel was acquitted by the court of the charges alleged in the criminal complaint described in the press release below.
The U.S. District Court for the District of Connecticut unsealed a criminal complaint accusing a former aerospace outsourcing executive of participating in a long-running conspiracy with managers and executives of several outsource engineering suppliers (Suppliers) to restrict the hiring and recruiting of engineers and other skilled laborers among their respective companies.
According to the filed documents, Mahesh Patel, of Glastonbury, Connecticut, a former director of global engineering services at a major aerospace engineering company, enforced this agreement while serving as an intermediary between conspiring Suppliers. Patel appeared remotely before a federal court in Hartford, Connecticut, on Tuesday after his arrest on the complaint charging him with conspiracy in restraint of trade. He was released on conditions including travel restrictions and a $100,000 appearance bond. The charge against Patel is the first in this ongoing federal antitrust investigation.
“The Antitrust Division, together with our law enforcement partners, have prioritized rooting out conspiracies in labor markets,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Here, thousands of workers have been victimized over a long period of time. We will vigorously prosecute this and other cases in which corporate executives undermine the careers of their own workers in order to reap undeserved profits and deprive our fellow citizens of opportunities to earn a competitive wage.”
“Given the significance of major defense and aerospace companies to Connecticut’s economy, it is vital that the labor market in this industry remain fair, open and competitive to our workers,” said Peter S. Jongbloed, Counsel to the U.S. Attorney for the District of Connecticut. “No one should be illegally denied the opportunity to pursue better jobs, higher pay and greater benefits. We look forward to continuing the partnership with the Antitrust Division and our law enforcement partners in prosecuting this important case.”
“Protecting the integrity of the Department of Defense (DoD) procurement process is a top priority for the DoD Office of Inspector General’s Defense Criminal Investigative Service (DCIS),” said Principal Deputy Director James R. Ives of the DCIS. “We are committed to working with the Antitrust Division and the U.S. Attorney’s Office for the District of Connecticut to hold companies and individuals accountable for practices that erode public trust and confidence in the DoD industry.”
According to the affidavit filed in support of the criminal complaint, Patel upheld a conspiracy among aerospace companies not to hire or recruit one another’s employees. At times, Patel confronted and berated Suppliers who cheated on the agreement, often at the direct behest of another Supplier, and threatened to punish nonconforming Suppliers by taking away valuable access to projects. In addition, as the complaint alleges, Patel and co-conspirators recognized the mutual financial benefit of this agreement — namely, reducing the rise in labor costs that would occur when aerospace workers were free to find new employment in a competitive environment.
The maximum penalty for conspiracy to restrain trade under the Sherman Antitrust Act is 10 years of imprisonment and a fine of $1 million for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine.
The charges are the result of an ongoing federal antitrust investigation into market allocation in the aerospace engineering services industry, conducted by the Antitrust Division’s New York Office, the U.S. Attorney’s Office for the District of Connecticut, and the New Haven and New York Resident Agencies of the DCIS. Anyone with information in connection with this investigation should contact the Antitrust Division’s Complaint Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.
A criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Aerospace Outsourcing Executive Charged for Key Role in a Long-Running Antitrust ConspiracyRead the Press Release
WASHINGTON – The U.S. District Court for the District of Connecticut unsealed a criminal complaint accusing a former aerospace outsourcing executive of participating in a long-running conspiracy with managers and executives of several outsource engineering suppliers (Suppliers) to restrict the hiring and recruiting of engineers and other skilled laborers among their respective companies.
According to the filed documents, Mahesh Patel, of Glastonbury, Connecticut, a former director of global engineering services at a major aerospace engineering company, enforced this agreement while serving as an intermediary between conspiring Suppliers. Patel appeared remotely before a federal court in Hartford, Connecticut, on Tuesday after his arrest on the complaint charging him with conspiracy in restraint of trade. He was released on conditions including travel restrictions and a $100,000 appearance bond. The charge against Patel is the first in this ongoing federal antitrust investigation.
“The Antitrust Division, together with our law enforcement partners, have prioritized rooting out conspiracies in labor markets,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Here, thousands of workers have been victimized over a long period of time. We will vigorously prosecute this and other cases in which corporate executives undermine the careers of their own workers in order to reap undeserved profits and deprive our fellow citizens of opportunities to earn a competitive wage.”
“Given the significance of major defense and aerospace companies to Connecticut’s economy, it is vital that the labor market in this industry remain fair, open and competitive to our workers,” said Peter S. Jongbloed, Counsel to the U.S. Attorney for the District of Connecticut. “No one should be illegally denied the opportunity to pursue better jobs, higher pay and greater benefits. We look forward to continuing the partnership with the Antitrust Division and our law enforcement partners in prosecuting this important case.”
“Protecting the integrity of the Department of Defense (DoD) procurement process is a top priority for the DoD Office of Inspector General’s Defense Criminal Investigative Service (DCIS),” said Principal Deputy Director James R. Ives of the DCIS. “We are committed to working with the Antitrust Division and the U.S. Attorney’s Office for the District of Connecticut to hold companies and individuals accountable for practices that erode public trust and confidence in the DoD industry.”
According to the affidavit filed in support of the criminal complaint, Patel upheld a conspiracy among aerospace companies not to hire or recruit one another’s employees. At times, Patel confronted and berated Suppliers who cheated on the agreement, often at the direct behest of another Supplier, and threatened to punish nonconforming Suppliers by taking away valuable access to projects. In addition, as the complaint alleges, Patel and co-conspirators recognized the mutual financial benefit of this agreement — namely, reducing the rise in labor costs that would occur when aerospace workers were free to find new employment in a competitive environment.
The maximum penalty for conspiracy to restrain trade under the Sherman Antitrust Act is 10 years of imprisonment and a fine of $1 million for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine.
The charges are the result of an ongoing federal antitrust investigation into market allocation in the aerospace engineering services industry, conducted by the Antitrust Division’s New York Office, the U.S. Attorney’s Office for the District of Connecticut, and the New Haven and New York Resident Agencies of the DCIS. Anyone with information in connection with this investigation should contact the Antitrust Division’s Complaint Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.
A criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Florida Man Sentenced to Prison for COVID-19 Related Unemployment Insurance Fraud Conspiracy and Identity TheftRead the Press Release
LAS VEGAS – A Florida man was sentenced today to 54 months in prison for his role in a conspiracy to possess and use California Employment Development Department (EDD) debit cards issued in other people’s names.
According to court documents, during a traffic stop on September 18, 2020 in Las Vegas, officers found that Joseph Holmes Jr. (23) and co-conspirator Emelio Vladimir Rochester (25) possessed at least 17 California EDD debit cards issued in other peoples’ names, and $89,710 in cash. Holmes and Rochester had used the debit cards — without the victims’ authorization — to withdraw at least $192,234.29 in cash from ATMs in California. The debit cards had been approved for at least $385,000 of unemployment insurance benefits.
Holmes pleaded guilty in August 2021 to one count of conspiracy to possess counterfeit and unauthorized access devices and one count of aggravated identity theft. In addition to the prison term, U.S. District Judge Andrew P. Gordon sentenced Holmes to two years of supervised release.
Co-conspirator Rochester, who was indicted in November 2021, is scheduled to make his initial court appearance in January 2022 before U.S. Magistrate Judge Daniel J. Albregts.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Quentin Heiden of the U.S. Department of Labor Office of Inspector General (DOL-OIG), Los Angeles Region made the announcement.
This case was investigated by the DOL-OIG. Assistant U.S. Attorney Jim Fang is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Felon on Pre-Trial Release Receives Consecutive Sentence for Second Gun CaseRead the Press Release
EAST ST. LOUIS, Ill. – An East St. Louis, Illinois, man has been sentenced for possessing a gun as
a convicted felon while on pre-trial release in another federal gun case. Tanario K. Darden, 47,
has been sentenced to a total of 10 years in federal prison for two instances of felon in
possession of a firearm.
According to court documents, on October 14, 2020, Darden was on federal pre-trial release for a
felon in possession case when he was found in possession of another firearm. Police
located a firearm and narcotics in a hidden compartment inside Darden’s home. Darden
was sentenced in April of 2021 to 87 months imprisonment for his initial case.On Monday, December 6, 2021, Darden was sentenced to an additional 33 months, to run
consecutive to 87 months, for a total of 10 years imprisonment.As part of his sentences, Darden was ordered to serve a 3-year term of supervised release following
his imprisonment.This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of
the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program
proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders
work together to identify the most pressing violent crime problems in the community and develop
comprehensive solutions to address them. As part of this strategy, PSN focuses
enforcement efforts on the most violent offenders and partners with locally based
prevention and reentry programs for lasting reductions in crime.The case was investigated by the Public Safety Enforcement Group (PSEG) and the East St. Louis
Police Department. PSEG is a newly formed Illinois State Police unit embedded with and working in
direct partnership with the East St. Louis Police Department.
Assistant United States Attorney Alexandria Burns prosecuted the case.
Felon Pleads Guilty to Illegally Possessing Gun at Fashion Fair MallRead the Press Release
FRESNO, Calif. — Chhoun Douring, 35, of Long Beach, pleaded guilty today to being a felon in possession of a firearm, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on May 6, 2021, at approximately 3:30 p.m., officers on patrol at Fashion Fair Mall in Fresno approached Douring. Douring admitted to carrying a firearm in a shoulder pouch. Officers seized the firearm, a loaded Ruger semi-automatic 9 mm handgun. Douring is a convicted felon having previously been convicted of second degree robbery and is prohibited from possessing firearms.
This case is the product of an investigation by the Fresno Police Department, the Multi-Agency Gang Enforcement Consortium (MAGEC), and the Federal Bureau of Investigation. Assistant U.S. Attorney Laura Jean Berger is prosecuting the case.
Douring is scheduled to be sentenced on March 11, 2022. Douring faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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.
Federal Justice Department Awards More Than $17.5 Million to Support Project Safe NeighborhoodsRead the Press Release
MUSKOGEE, OKLAHOMA – The Department of Justice announced today that it has awarded more than $17.5 million in grants to support the Project Safe Neighborhoods (PSN) Program. Funding will support efforts across the country to address violent crime, including the gun violence that is often at its core. The Office of the Oklahoma Attorney General was awarded $326,903 to administer PSN grant funds in Oklahoma. Acting U.S. Attorney Clinton J. Johnson for the Northern District of Oklahoma, Acting U.S. Attorney Robert J. Troester for the Western District of Oklahoma, and Acting U.S. Attorney Christopher J. Wilson for the Eastern District of Oklahoma, joined in the announcement.
The Bureau of Justice Assistance (BJA), part of the department’s Office of Justice Programs (OJP), will administer the 88 grant awards, which are being made to designated fiscal agents to support local PSN projects that work in partnership with U.S. Attorneys’ Offices. With approval from BJA, the Fiscal Agent will begin the process of making subawards for PSN grant projects.
“This latest Project Safe Neighborhoods grant is critical to addressing the violent crime threatening cities and towns all across our country,” said Deputy Attorney General Lisa O. Monaco. “Ensuring the safety of all Americans is the highest priority for the Department of Justice, but when it comes to violent crime, there is not a one-size-fits-all solution. We have to work closely with local public safety agencies as well as community organizations to craft individual strategies unique to each community’s needs. Programs like Project Safe Neighborhoods and the funding it provides allow us to do just that.”
“Violent crime impacts communities throughout Oklahoma. This grant funding will continue to allow our Offices to coordinate with the Oklahoma Attorney General’s Office and our law enforcement partners to reduce violence and build confidence in the communities we collectively serve,” said Acting U.S. Attorneys Johnson, Troester, and Wilson. “Together with the Attorney General’s Office, we are devoted to safeguarding Oklahomans, disrupting violent crime, and forging new pathways to address underlying issues that may trigger violent conduct throughout the State.”
“My top priority as Attorney General is the safety of all Oklahomans,” said Oklahoma Attorney General John O’Connor.” “The Project Safe Neighborhoods grants will allow our office, in partnership with the U.S. Attorneys’ Offices, to prevent and fight violent crime in our great state.”
“Investing in our communities, supporting victims and building a justice system that both keeps people safe and earns their trust – these are mutually reinforcing goals that stand at the heart of Project Safe Neighborhoods,” said Principal Deputy Assistant Attorney General Amy L. Solomon for OJP. “The Office of Justice Programs is pleased to join with our U.S. Attorneys’ Offices, and with jurisdictions across the country, as we work together to meet the challenges of crime and violence and achieve our shared aspirations of public safety and community trust.”
In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime issued by Deputy Attorney General Monaco, is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
This fall, U.S. Attorney’s Offices across the country have enhanced their violent crime reduction efforts to ensure alignment with the department’s comprehensive violent crime reduction strategy. U.S. Attorneys’ Offices have engaged in outreach to law enforcement and other agencies and organizations serving communities to identify the most significant drivers of violence in their districts. Working together with a broad coalition of stakeholders, the U.S. Attorneys’ Offices are addressing the most pressing violent crime issues in their district to make our neighborhoods safer for all.
PSN programs are led by U.S. Attorneys’ Offices in collaboration with local public safety agencies, community stakeholders and other agencies and organizations that work to reduce violent crime.
For a list of all grantees, please visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/FY21-Project-Safe-Neighborhoods-Awards.pdf.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
Federal Jury Convicts Organizer of $4.3 Million Fraud and Money Laundering SchemeRead the Press Release
CHARLESTON, W.Va. – After a three-day trial, a federal jury convicted James Pinson, 46, of Pritchard, Wayne County, West Virginia, of three counts of wire fraud, six counts of mail fraud, one count of aggravated identity theft, and two counts of conspiring to commit money laundering. Pinson was the owner of Big Blue Motor Sales, a Kentucky used car dealership.
Evidence at trial revealed that Pinson defrauded Toyota of over $4.3 million in connection with a Toyota Customer Support Program. To carry out his scheme, Pinson bought Toyota trucks at wholesale prices at auction, obtained hundreds of copies of Kentucky and West Virginia residents’ driver’s licenses, fraudulently titled the trucks in the name of those residents, and fraudulently induced Toyota to repurchase the trucks at 150% of their retail value. Toyota issued 350 checks in the names of individual false owners between 2013 and 2015. Pinson forged signatures on all 350 checks and deposited them into his bank account. Pinson then used the money from this fraud scheme to buy more Toyota trucks at wholesale to run through the scheme. He also paid cash bribes to a service manager at a Toyota dealership and a representative of the company that Toyota hired to administer the Customer Support Program. Pinson further used the criminally-derived money from the fraud scheme to purchase a beach house in Pawley’s Island, South Carolina.
“The excellent work of the U.S. Postal Inspection Service, the FBI, the West Virginia State Police, the West Virginia Office of the Insurance Commissioner and the National Insurance Crime Bureau resulted in this defendant being brought to justice,” said United States Attorney Will Thompson. “I congratulate Assistant United States Attorneys Steven I. Loew and Andrew J. Tessman and the entire trial team for obtaining this guilty verdict.”
Pinson faces up to 22 years in prison plus a mandatory two-year sentence resulting from his aggravated identity theft conviction when he is sentenced on March 3, 2022. Pinson also will be required to pay restitution of up to $4.3 million to Toyota, and all property connected to the scheme is subject to forfeiture.
United States District Judge Joseph R. Goodwin presided over the trial.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:19-CR-00250.
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Federal Jury Convicts Former Reality Television Personality for Downloading and Possessing Child Sexual Abuse MaterialRead the Press Release
FAYETTEVILLE – A federal jury convicted an Arkansas man today for receiving and possessing material depicting minors engaged in sexually explicit conduct.
According to court documents and evidence presented at trial, Joshua James Duggar, 33, of Springdale, repeatedly downloaded and viewed images and videos depicting the sexual abuse of children, including images of prepubescent children and depictions of sadistic abuse. Duggar, a former reality television personality who appeared with his family on the TLC series 19 Kids and Counting, installed a password-protected partition on the hard drive of his desktop computer at his used car lot in Springdale to avoid pornography-detecting software on the device. He then accessed the partition to download child sexual abuse material from the internet multiple times over the course of three days in May 2019. The password for the partition was the same one he used for other personal and family accounts. Duggar downloaded the material using the dark web and online file-sharing software, viewed it, and then removed it from his computer.
“Over 7% of the cases sentenced in the year 2020 in the Western District of Arkansas were child pornography and sexual abuse cases,” said the United States Attorney for Western Arkansas Clay Fowlkes. “Our office is focused on expending all the resources necessary to the very important work of protecting children in Arkansas and elsewhere. This verdict sends the message that these cases are a top priority for our office. This verdict also demonstrates that no person is above the law. Regardless of wealth, social status, or fame, our office will continue to seek out all individuals who seek to abuse children and victimize them through the downloading, possession, and sharing of child pornography.”
“Today’s verdict sends a message that we will track down and prosecute people who download and view child sexual abuse material, regardless of the lengths they go to conceal their conduct,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “I am grateful for the efforts of the prosecution team and our law enforcement partners who helped ensure the defendant will be held accountable for his crimes. I hope today’s conviction serves as a reminder of the Department’s steadfast commitment to bringing to justice those who callously contribute to the online sexual exploitation of young children.”
“Because of the exceptional efforts by HSI special agents and our law enforcement partners, a child predator has been brought to justice. Every time child exploitation imagery is shared, it re-victimizes innocent and vulnerable children,” Jack Staton, HSI New Orleans acting Special Agent in Charge. “The verdict demonstrates that regardless of an individual’s notoriety or influence, they are not above the law. HSI agents make it a priority to protect children by investigating these offenders and ensuring they pay for their incomprehensible actions.”
Law enforcement in Arkansas detected Duggar’s activity during an undercover investigation involving the online file-sharing program, subsequently searched his car lot in November 2019, and seized Duggar’s desktop computer as well as other evidence. Significant evidence was found that pointed to Duggar’s presence at the times of the offenses, including pictures that Duggar took on his phone that geolocated at or near the car lot. Duggar also sent multiple timestamped text messages to various individuals that indicated he was at the car lot at the relevant times; the messages were sent, and the iPhone pictures were created, at times within minutes of when the child sexual abuse material was downloaded or displayed on the desktop computer. Additionally, he was the only paid employee on the lot at those times.
Duggar was convicted of receipt and possession of child pornography. He is scheduled to be sentenced on a later date. Receipt of child pornography is punishable by a term of imprisonment of five to 20 years. Possession of child pornography depicting prepubescent children has a maximum penalty of 20 years of imprisonment as well. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Homeland Security Investigations Fayetteville, Arkansas, the Little Rock Police Department, and the High Technology Investigative Unit of the Department of Justice Criminal Division’s Child Exploitation and Obscenity Section (CEOS) investigated the case.
Assistant U.S. Attorneys Carly Marshall and Dustin Roberts of the U.S. Attorney’s Office for the Western District of Arkansas and Trial Attorney William G. Clayman of CEOS are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Federal Jury Convicts Former Reality Television Personality for Downloading and Possessing Child Sexual Abuse MaterialRead the Press Release
A federal jury convicted an Arkansas man today for receiving and possessing material depicting minors engaged in sexually explicit conduct.
According to court documents and evidence presented at trial, Joshua James Duggar, 33, of Springdale, repeatedly downloaded and viewed images and videos depicting the sexual abuse of children, including images of prepubescent children and depictions of sadistic abuse. Duggar, a former reality television personality who appeared with his family on the TLC series “19 Kids and Counting,” installed a password-protected partition on the hard drive of his desktop computer at his used car lot in Springdale to avoid pornography-detecting software on the device. He then accessed the partition to download child sexual abuse material from the internet multiple times over the course of three days in May 2019. The password for the partition was the same one he used for other personal and family accounts. Duggar downloaded the material using the dark web and online file-sharing software, viewed it, and then removed it from his computer.
“Today’s verdict sends a message that we will track down and prosecute people who download and view child sexual abuse material, regardless of the lengths they go to conceal their conduct,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “I am grateful for the efforts of the prosecution team and our law enforcement partners who helped ensure the defendant would be held accountable for his crimes. I hope today’s conviction serves as a reminder of the department’s steadfast commitment to bringing to justice those who callously contribute to the online sexual exploitation of young children.”
“Over 7% of the cases sentenced in the year 2020 in the Western District of Arkansas were child pornography and sexual abuse cases,” said the U.S. Attorney Clay Fowlkes for Western Arkansas. “Our office is focused on expending all the resources necessary to the very important work of protecting children in Arkansas and elsewhere. This verdict sends the message that these cases are a top priority for our office. This verdict also demonstrates that no person is above the law. Regardless of wealth, social status, or fame, our office will continue to seek out all individuals who seek to abuse children and victimize them through the downloading, possession, and sharing of child pornography.”
“Because of the exceptional efforts by HSI special agents and our law enforcement partners, a child predator has been brought to justice,” said Special Agent in Charge Jack Staton of Homeland Security Investigations (HSI) New Orleans, U.S. Immigration and Customs Enforcement. “Every time child exploitation imagery is shared, it re-victimizes innocent and vulnerable children. The verdict demonstrates that regardless of an individual’s notoriety or influence, they are not above the law. HSI agents make it a priority to protect children by investigating these offenders and ensuring they pay for their incomprehensible actions.”
Law enforcement in Arkansas detected Duggar’s activity during an undercover investigation involving the online file-sharing program, subsequently searched his car lot in November 2019, and seized Duggar’s desktop computer as well as other evidence. Significant evidence was found that pointed to Duggar’s presence at the times of the offenses, including pictures that Duggar took on his phone that geolocated at or near the car lot. Duggar also sent multiple timestamped text messages to various individuals that indicated he was at the car lot at the relevant times; the messages were sent, and the iPhone pictures were created, at times within minutes of when the child sexual abuse material was downloaded or displayed on the desktop computer. Additionally, he was the only paid employee on the lot at those times.
Duggar was convicted of receipt and possession of child pornography. His sentencing date has not been scheduled yet. Receipt of child pornography is punishable by a term of imprisonment of five to 20 years. Possession of child pornography depicting prepubescent children has a maximum penalty of 20 years of imprisonment as well. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
HSI in Fayetteville, Arkansas, the Little Rock Police Department, and the High Technology Investigative Unit of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) investigated the case.
Trial Attorney William G. Clayman of CEOS and Assistant U.S. Attorneys Dustin Roberts and Carly Marshall of the U.S. Attorney’s Office for the Western District of Arkansas are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Enforcer for Toledo Drug Trafficking Organization Sentenced to More Than 19 Years in Prison After Conviction of Felon in Possession of Firearm and AmmunitionRead the Press Release
U.S. Attorney Bridget M. Brennan announced that Darek Lathan, 52, of Toledo, Ohio, was sentenced on Dec. 8, 2021, to 235 months, about 19 and a half years, in prison by Judge George Caram Steeh, Eastern District of Michigan, after a jury found Lathan guilty of felon in possession of a firearm and ammunition.
According to court documents, in the spring of 2017, the FBI began an investigation into a drug trafficking organization importing kilograms of cocaine and other narcotics to be sold in Toledo, Ohio. Through the course of the investigation, law enforcement officials learned that members of the organization partnered with Lathan to provide security for the operation and during drug exchanges.
On Nov. 17, 2017, police executed a search warrant at a residence known to be occupied by Lathan and other members of the organization. During the execution of the warrant, Lathan was identified sleeping near the door next to a loaded pistol. While executing other search warrants that day, law enforcement officers obtained additional firearms and narcotics connected to the drug trafficking operation.
At trial, the leader of the drug trafficking organization described how Lathan worked for him as an enforcer, always carried a gun and that the firearm found next to Lathan was one that Lathan had acquired.
Lathan is prohibited from possessing a firearm due to multiple previous convictions in the Lucas County Common Pleas Court of aggravated robbery and kidnapping, aggravated robbery with a firearm and aggravated drug trafficking. These previous convictions qualified Lathan to be sentenced under the Armed Career Criminal Act.
This case was investigated by the Federal Bureau of Investigation – Toledo Resident Agency. This case was prosecuted by Assistant United States Attorneys Matthew D. Simko and Sara Ann Al-Sorghali.
East Chicago Man Sentenced to 57 Months in PrisonRead the Press Release
HAMMOND- Deshalon France, 30, of East Chicago, Indiana, was sentenced by United States District Court Judge Philip P. Simon after pleading guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
France was sentenced to 57 months in prison followed by 1 year of supervised release.
According to documents in the case, on November 4, 2020, France was stopped by the East Chicago Police Department during an investigation of shots fired in the area. At the time, France possessed a stolen nine-millimeter, semi-automatic pistol loaded with thirty-three rounds of ammunition in an extended magazine. France had previously been convicted of the felony offenses of fraud and attempted trafficking of contraband in a penal institution. In addition, his criminal history revealed that he had two prior misdemeanor convictions for carrying a handgun without a license and three prior misdemeanor convictions for resisting law enforcement.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Indiana HIDTA Task Force, and the East Chicago Police Department. This case was prosecuted by Assistant U.S. Attorney Thomas R. Mahoney.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
East Bay Resident Sentenced to Five Years in Prison for Targeting Minors on Instagram in Sexual Extortion SchemeRead the Press Release
OAKLAND – Delaney Tang was sentenced today to 60 months in prison for solicitation of child pornography and conspiracy to commit cyberstalking in connection with a sexual extortion scheme, announced Acting United States Attorney Stephanie M. Hinds and Homeland Security Investigations Special Agent in Charge Tatum King. The sentence was handed down by the Hon. Haywood S. Gilliam, U.S. District Judge.
Tang, 22, of Oakland, pleaded guilty to the charges on April 28, 2021. The plea agreement describes how Tang used Instagram to harass, threaten, and successfully extort a 12 year old victim into sending him nude photos and videos of herself. The agreement further describes how Tang provided instructions to the victim specifying what she must wear, say, and do in her photos and videos as well as how Tang also attempted to coerce the victim into filming a video of herself performing additional sex acts with an underage male. Tang received assistance executing the scheme from co-defendant Vincenz Sison, 21, of Concord. Sison attempted to convince the victim to comply with Tang’s extortion requests. Ultimately, Tang publicly posted to Instagram and other sites sexually explicit images and videos of the 12-year-old victim after she stopped responding to Tang’s requests for additional photos and videos.
The government’s memorandum regarding Tang’s sentencing further explains how Tang used Instagram to extort additional victims, including seven identified underage victims who were between 11 and 14 years old.
On February 10, 2021, the United States filed a criminal information charging Tang and Sison with conspiracy to commit cyberstalking, in violation of 18 U.S.C. §§ 371 & 2261A(2)(B), and charging Tang with an additional count of solicitation of child pornography, in violation of 18 U.S.C. § 2252A(a)(3)(B). Tang pleaded guilty to both counts charged against him.
In addition to the prison term, Judge Gilliam ordered Tang to serve an eight year period of supervision following his release from prison. Tang will surrender to begin serving his sentence on January 19, 2022. Tang’s next scheduled appearance is on January 12, 2022, at 10:00 a.m., for a hearing to determine restitution for his victims.
For his part in the scheme, Sison pleaded guilty to conspiracy to commit cyberstalking on April 28, 2021. Judge Gilliam scheduled Sison’s sentencing for February 2, 2022, at 10:00 a.m.
Special Assistant U.S. Attorney Christopher Vieira is prosecuting the case with the assistance of Marina Ponomarchuk. The prosecution is the result of an investigation by the San Francisco Police Department and the Department of Homeland Security.
Eagle Butte Man Sentenced for Firearm ChargeRead the Press Release
Acting United States Attorney Dennis Holmes announced that an Eagle Butte, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on December 6, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Luke Eagleman, III, age 41, was sentenced to 14 months in federal prison, followed by three years of supervised release, a special assessment to the Federal Crime Victims Fund in the amount of $100, and forfeiture of a rifle, a handgun, and ammunition.
Eagleman was indicted by a federal grand jury on December 8, 2020. He pled guilty on April 12, 2021.
The conviction stemmed from an incident that occurred on September 1, 2020, in Eagle Butte. Eagleman, who has a prior felony conviction and is prohibited from possessing firearms, knowingly possessed a rifle and a handgun. The items were seized from Eagleman’s person and vehicle following a traffic investigation conducted by the Cheyenne River Sioux Tribe Law Enforcement Services.
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 its 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 local communities to develop effective, locally-based strategies to reduce violent 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. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Eagleman was immediately turned over to the custody of the U.S. Marshals Service.
Douglas County Drug Dealer Sentenced to 10 Years in Federal PrisonRead the Press Release
EUGENE, Ore.—A Winston, Oregon man was sentenced to federal prison today for possession with intent to distribute methamphetamine, which he had been selling in and around Douglas County, Oregon.
Steven Dwayne Lander, 60, was sentenced to 120 months in federal prison and five years’ supervised release.
According to court documents, over the course of several months, the Douglas County Interagency Narcotics Team (DINT) and the U.S. Drug Enforcement Administration (DEA) investigated Lander and his drug dealing in Douglas County. Following extensive surveillance, arrests of his customers and associates, and the monitoring of his movements, investigators executed multiple search warrants on Lander and his properties. More than 15 pounds of methamphetamine and a half pound of heroin were seized from his storage unit, vehicle, and person.
Lander has prior felony convictions for delivering and manufacturing controlled substances and illegally possessing a firearm as a convicted felon, and was previously sentenced to more than four years in prison.
On November 8, 2019, Lander was charged by criminal complaint and he was indicted on November 20, 2019. On November 7, 2021, Lander pleaded guilty to possession with intent to distribute methamphetamine.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by DEA and DINT. It was prosecuted by Jeffrey S. Sweet, Assistant U.S. Attorney for the District of Oregon, in close coordination with Douglas County Senior Deputy District Attorney Allison D. Eichmann.
Dominican National Sentenced for Fentanyl ConspiracyRead the Press Release
BOSTON – A Dominican national previously residing in Lawrence was sentenced today in connection with two fentanyl distribution conspiracies.
Luis Aybar-Guerrero, 25, was sentenced by U.S. District Court Judge Richard G. Stearns to 42 months in prison and two years of supervised release. He will be subject to deportation proceedings upon completion of his sentence. On July 15, 2021, the defendant pleaded guilty to one count of conspiring to distribute and to possess with intent to distribute 40 grams or more of fentanyl and one count of possession with intent to distribute 40 grams or more of fentanyl.
Luis Aybar-Guerrero was indicted in August 2020 along with his brother, Guillermo Aybar-Guerrero, after investigators conducted controlled purchases of fentanyl from Guillermo on June 10 and 17, 2020. On June 25, 2020, investigators set up another controlled purchase, at which time Guillermo was arrested in possession of approximately 30 grams of suspected fentanyl. Guillermo retrieved the fentanyl for each of these transactions from Luis. A search of Luis’ residence resulted in the seizure of an additional 223 grams of acetyl fentanyl (a fentanyl analogue) as well as a scale, baggies and other drug distribution paraphernalia.
On Oct. 27, 2021, Guillermo Aybar-Guerrero was sentenced by U.S. District Court Judge Denise J. Casper to 52 months in prison.
Acting United States Attorney Nathaniel R. Mendell and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Assistant U.S. Attorney Lauren Graber of Mendell’s Narcotics and Money Laundering Unit prosecuted the case.
Dominican National Arrested for Identity Theft and Unemployment Fraud Related to COVID-19 PandemicRead the Press Release
BOSTON – A Dominican National residing in Boston was arrested today for allegedly using others’ identities to fraudulently obtain Pandemic Unemployment Assistance (PUA) benefits.
Wilson Radhames Peguero Brea, 52, was charged with one count of wire fraud and one count of aggravated identity theft. Following an initial appearance today before U.S. District Court Magistrate Judge Marianne B. Bowler, Peguero was detained pending a detention hearing scheduled for Dec. 22, 2021.
According to the charging documents, Peguero used the name and Social Security number of a U.S. citizen to apply for and obtain PUA benefits. Peguero also allegedly applied for and received additional PUA benefits using another victim’s identity as well as his own.
The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison, to be served consecutively to any other sentence imposed, up to one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
The investigation was conducted by Homeland Security’s Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized field investigative group comprised of personnel from various local, state, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes.
Acting United States Attorney Nathaniel R. Mendell and Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Valuable assistance was provided by the U.S. Department of Labor, Office of Inspector General; U.S. Department of Health and Human Services, Office of Inspector General; U.S. Department of State, Diplomatic Security Service; U.S. Postal Inspection Service; Massachusetts State Police; and U.S. Citizenship and Immigration Services in Boston. Assistant U.S. Attorney Benjamin A. Saltzman of Mendell’s Major Crimes Unit is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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.
Detroit Man Sentenced to 7 Years in Prison for Jewelry Store RobberyRead the Press Release
ERIE, Pa. - A former resident of Detroit, Michigan, has been sentenced in federal court to 84 months in jail and ordered to pay $235,715 in restitution on his conviction of Hobbs Act robbery, United States Attorney Cindy K. Chung announced today.
United States District Judge Susan Paradise Baxter imposed the sentence on Devon Ashley Edwards, 38.
According to information presented to the court, on or about November 19, 2018, Edwards and a co-defendant traveled from Detroit, Michigan for the sole purpose of robbing the Jared-Galleria of Jewelry in Millcreek Township. Upon entering the store, Edwards yelled for everyone to get down and then he and his co-defendant used hammers to smash display cases and remove jewelry.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Chung commended the Federal Bureau of Investigation, the Pennsylvania State Police and the Millcreek Police Department for the investigation leading to the successful prosecution of Edwards.
Department of Justice Awards More Than $17.5 Million Nationwide to Support Project Safe NeighborhoodsRead the Press Release
LAS VEGAS – The Department of Justice announced today that it has awarded more than $17.5 million in grants to support the Project Safe Neighborhoods (PSN) Program. Funding will support efforts across the country to address violent crime, including the gun violence that is often at its core. The Nevada Department of Public Safety was awarded $201,426 to administer PSN grant funds in the District of Nevada.
The Bureau of Justice Assistance — part of the department’s Office of Justice Programs (OJP) — will administer the 88 grant awards, which are being made to designated fiscal agents to support local PSN projects that work in partnership with U.S. Attorney’s Offices.
“This latest Project Safe Neighborhoods grant is critical to addressing the violent crime threatening cities and towns all across our country,” said Deputy Attorney General Lisa O. Monaco. “Ensuring the safety of all Americans is the highest priority for the Department of Justice, but when it comes to violent crime, there is not a one-size-fits-all solution. We have to work closely with local public safety agencies as well as community organizations to craft individual strategies unique to each community’s needs. Programs like Project Safe Neighborhoods and the funding it provides allow us to do just that.”
“Our office and our law enforcement partners appreciate the Department of Justice’s commitment to providing additional resources to promote public safety and address violent crime,” said Acting U.S. Attorney Christopher Chiou for the District of Nevada. “Through the PSN program, we will continue working together to identify and resolve the most pressing violent crime issues in our communities.”
“Investing in our communities, supporting victims and building a justice system that both keeps people safe and earns their trust – these are mutually reinforcing goals that stand at the heart of Project Safe Neighborhoods,” said Principal Deputy Assistant Attorney General Amy L. Solomon for OJP. “The Office of Justice Programs is pleased to join with our U.S. Attorney’s Offices, and with jurisdictions across the country, as we work together to meet the challenges of crime and violence and achieve our shared aspirations of public safety and community trust.”
In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime issued by Deputy Attorney General Monaco, is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
This fall, U.S. Attorney’s Offices across the country have enhanced their violent crime reduction efforts to ensure alignment with the department’s comprehensive violent crime reduction strategy. U.S. Attorneys’ Offices have engaged in outreach to law enforcement and other agencies and organizations serving communities to identify the most significant drivers of violence in their districts. Working together with a broad coalition of stakeholders, the U.S. Attorneys’ Offices are addressing the most pressing violent crime issues in their district to make our neighborhoods safer for all.
PSN programs are led by U.S. Attorneys' Offices in collaboration with local public safety agencies, community stakeholders and other agencies and organizations that work to reduce violent crime.
For a list of all grantees, please visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/FY21-Project-Safe-Neighborhoods-Awards.pdf.
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The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
Convicted Repeat Felon Sentenced to Prison in Valdosta Shooting CaseRead the Press Release
VALDOSTA, Ga. – A Valdosta resident with a lengthy violent criminal history, convicted of illegally possessing a firearm, was sentenced to serve ten years in prison for his crime in a case involving the shooting of a homeless man protecting his animal from dog-fighting.
Aaron Lewis Green, Jr., 39, of Valdosta, was sentenced to serve 120 months in prison, the statutory maximum, to be followed by three years of supervised release by U.S. District Judge Hugh Lawson on Dec. 8, after he was found guilty of possession of a firearm by a convicted felon following a two-day trial in June. There is no parole in the federal system.
“Violent offenders in illegal possession of guns who terrorize our communities will face federal prosecution and lengthy prison sentences,” said U.S. Attorney Peter D. Leary. “Law enforcement at every level across the Middle District of Georgia are working together to hold repeat violent offenders accountable when they break the law.”
“Green’s lengthy violent criminal record and his complete disregard for not only the lives of innocent animals, but the lives of his fellow human beings landed him where he belongs, in federal prison,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Thanks to the help from our partners at the Lowndes County Sheriff’s Office we were able to remove Green from the streets before he could terrorize anyone else, and now he has received a significant prison sentence where he will no longer be a threat in our community.”
According to court documents and evidence presented at trial, in the early morning of April 29, 2018, several concerned citizens called 911 to report gunshots coming from Green’s residence on Sandy Run Drive. Green had earlier invited a homeless couple living in their truck with their Rottweiler to park at his home. When the couple came to his residence, Green made several requests to the man to allow the dogs to fight. At one point, Green directed his wife to let the couple’s Rottweiler out of the homeless couple’s vehicle. A heated argument ensued around 4:25 a.m. when the man refused Green’s insistence that the dogs fight. Green pulled a loaded pistol from his waistband and fired several shots at the man, striking him multiple times in his upper torso. Green threatened the victim’s girlfriend as she attempted to load the victim into their vehicle. Once the couple arrived at the hospital, the victim was rushed into surgery and treated for gunshot wounds. Officers arrested Green outside of a Valdosta church, where he was found lying on the ground. At the time of his arrest, Green was armed with a knife and a semi-automatic pistol with a round in the chamber. Green admitted that the weapon was the firearm he used to shoot the homeless man.
Green is currently facing a state aggravated assault charge for the attack; his charge is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. Green has multiple prior felony convictions in the Superior Court of Lowndes County, Georgia, including two aggravated assault convictions, a conviction for sale of cocaine and a conviction for terroristic threats.
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 case was investigated by FBI and Lowndes County Sheriff’s Office.
Assistant U.S. Attorney Sonja Profit prosecuted the case.
Convicted Felon with Violent Criminal History Sentenced in PSN InvestigationRead the Press Release
MACON, Ga. – A Macon resident with prior felonies taken into custody on state warrants while in illegal possession of a gun was sentenced to prison this week for violating federal gun law.
Craig R. Harpe, 40, of Macon, was sentenced to serve 37 months in prison to be followed by three years of supervised release by U.S. District Judge Tilman E. (Tripp) Self, III on Dec. 7, after he previously pleaded guilty to possession of a firearm by a convicted felon. There is no parole in the federal system.
“The U.S. Attorney’s Office is working closely with our law enforcement partners to hold individuals with a history of violent criminal activity accountable for illegal gun possession,” said U.S. Attorney Peter D. Leary. “Convicted felons arrested in illegal possession of firearms will face the possibility of federal prosecution for their crime”
“The conviction of Craig Harpe illustrates what can happen when a convicted felon travels on city streets with a gun in their possession. A stop by an alert deputy for a minor traffic violation has resulted in a potentially dangerous individual with a gun being removed from our community,” said Bibb County Sheriff David J. Davis.
According to court documents, Harpe was stopped for a traffic violation in Macon on Oct. 5, 2020. Harpe was wearing an empty gun holster and officers discovered he was wanted on state warrants and was a convicted felon. Officers found a loaded .380 semiautomatic handgun in Harpe’s car. Harpe was previously convicted on two felony armed robbery charges in the Superior Court of Dekalb County, Georgia and served ten years for his crimes. It is illegal for a convicted felon to possess a firearm.
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 case was investigated by the Bibb County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Assistant U.S. Attorney Joy Odom prosecuted the case for the Government.
Columbus Man Sentenced to over 3 Years in Prison for Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – A Columbus, man was sentenced to 41 months in prison for possession of a firearm by a convicted felon, announced U.S. Attorney Darren J. LaMarca, and Special Agent in Charge Kurt H. Thielhorn of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
According to court documents, Greggory LaShawn Gavin, 44, was found in possession of a firearm by United States Marshals on November 9, 2020, while Gavin was being served with an arrest warrant for an unrelated criminal charge. Gavin had a .38 caliber pistol in his pocket. Gavin has four prior felony convictions. As a convicted felon, it is contrary to federal law for Gavin to possess any firearm.
The United States Marshals Service and the ATF investigated the case.
Assistant U.S. Attorney Charles W. Kirkham 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.
Colombian National Detained at the Henry E. Rohlsen Airport Following His Attempted Illegal Entry into the United StatesRead the Press Release
St. Croix, USVI – U.S. Attorney Gretchen C.F. Shappert announced that a Colombia national appeared before Magistrate Court Judge George W. Cannon, Jr. for an initial hearing on criminal charges related to his alleged attempted illegal entry into the continental United States.
According to court documents, on December 8, 2021, at the Henry E. Rohlsen airport on St. Croix, Andres Bejarano, age 33, presented to U.S. Customs and Border Protection (CBP) officers for inspection to board a flight from St. Croix to Florida with a Florida driver's license. It was later determined that this license belonged to his brother, Daniel Bejarano. When questioned, Bejarano claimed to be a U.S. Citizen. He later claimed to have a green card. He subsequently admitted that he was using his brother's ID because he was aware that he had an active warrant for his arrest. After being referred to secondary screening, CBP officers conducted a baggage inspection. Officers discovered that Bejarano dropped a black pouch under his seat that contained Ketamine, a schedule III controlled substance, and MDMA, a schedule I controlled substance.
As a result, Bejarano was charged by criminal complaint with Falsely Representing to be a Citizen of the United States, False Statements, Aggravated Identity Theft, and Simple Possession of a Controlled Substance. If convicted, Bejarano faces a up to a potential 5 years in prison and subsequent deportation. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Customs and Border Protection and Homeland Security Investigations are investigating the case. Assistant U.S. Attorney Daniel H. Huston is prosecuting the case.
United States Attorney Shappert reminds the public that a criminal complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty.
Chicago Man Sentenced to 84 Months for Conspiracy to Distribute CocaineRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Michael C. Henderson, 52, Chicago, Illinois was sentenced today by U.S. District Judge James D. Peterson to 84 months in prison, followed by 5 years of supervised release for conspiracy to distribute cocaine. Henderson pleaded guilty to this charge on July 9, 2021. Judge Peterson also ordered Henderson to forfeit $22,763.59.
In 2020, federal and state law enforcement agencies started investigating several known cocaine traffickers in Dane County, Wisconsin. As part of this joint investigation, the Wisconsin Department of Justice Division of Criminal Investigation (DCI) obtained state-authorized wiretaps on two phones belonging to a suspected trafficker in Madison. Over the course of several months, investigators intercepted numerous calls and text messages between the trafficker and Henderson. Most of these calls centered on Henderson supplying cocaine to the trafficker, negotiating lower costs from the source-of-supply, improving the quality of the cocaine, and recruiting additional customers in Dane County. The conspiracy took place from September through December 2020 and resulted in Henderson selling approximately 9 kilograms of cocaine to the trafficker.
On December 8, 2020, agents from DCI and officers from the Chicago Police Department arrested Henderson in Chicago after the investigators arranged for the purchase of 2 kilograms of cocaine from Henderson. During a post-arrest interview, Henderson admitted he planned to sell the drugs to the Madison-based trafficker.
Officers and agents also searched several houses that Henderson used in Chicago and found $52,600 in cash, a loaded semi-automatic pistol, 100 grams of marijuana, mobile phones, an electronic money counter, and bank deposit receipts. Investigators traced these receipts to a bank account that held $22,763.59 in drug proceeds. The $52,600 in cash was the subject of a forfeiture action in Illinois.
At sentencing, Judge Peterson explained that he felt compelled to impose a significant term of imprisonment because of the seriousness of Henderson’s crime and the quantity of drugs involved. Judge Peterson specifically noted that, while Henderson did not have a large customer base, he had one customer who sold a substantial amount of cocaine in the Madison area.
The charge against Henderson was the result of an investigation conducted by DCI, the Dane County Narcotics Task Force, the Chicago Police Department, the Cook County State’s Attorney’s Office, the Drug Enforcement Administration, and the Federal Bureau of Investigation. Assistant U.S. Attorney Chadwick M. Elgersma prosecuted this case.
Charleston Man Sentenced to Prison for Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced today to three years and two months in prison for a federal gun crime.
According to court documents and statements made during the plea hearing, Richard Howard King II, 26, was involved in an argument with another individual at a bar in Cross Lanes on March 13, 2021. During the argument, King retrieved a gun from his car and fired a .45 caliber round from it. King admitted that he possessed the round of .45 caliber Tula ammunition that was fired from the gun and that he was prohibited from possessing the ammunition as a result of a 2016 federal conviction. King was still on supervised release for the prior felony conviction at the time.
United States Attorney Will Thompson made the announcement and commended the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Alex Hamner prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 2:21-cr-00008 & 2:15-cr-000218.
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Canton Woman Charged with Defrauding HUD Section 8 Housing ProgramRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and Christina D. Scaringi, Special Agent in Charge of the Office of Inspector General, U.S. Department of Housing and Urban Development, today announced that a federal grand jury in New Haven has returned an indictment charging DONNA CARNEY, 66, of Canton, with one count of theft of government property.
The indictment was returned on November 16. Carney appeared today before U.S. Magistrate Judge Robert M. Spector in New Haven and entered a plea of not guilty to the charge. She is released on $50,000 bond pending trial.
As alleged in the indictment, in approximately 1995, Carney began receiving Section 8 tenant-based rental assistance under the housing choice voucher program of the U.S. Department of Housing and Urban Development (“HUD”). From approximately 2004 to 2019, Carney failed to report to HUD that she was married to her landlord and therefore had an interest in the home in which she lived, failed to report certain others living in her home, and falsely claimed that unauthorized residents were live-in aides.
If convicted of the charge, Carney faces a maximum term of imprisonment of 10 years.
Acting U.S. Attorney Boyle stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the U.S. Department of Housing and Urban Development – Office of Inspector General for Investigations and the Canton Police Department. The case is being prosecuted by Assistant U.S. Attorney Heather Cherry.
Camden County Man Admits Possessing Child PornographyRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man with a prior child exploitation conviction admitted possessing child pornography, Acting U.S. Attorney Rachael A. Honig announced today.
James Tierney, 56, of Cherry Hill, New Jersey, pleaded guilty before U.S. Senior District Judge Robert B. Kugler in Camden federal court to one count of possession of child pornography.
According to documents filed in this case and statements made in court:
In August 2020, law enforcement agents executed a search warrant at Tierney’s residence after receiving information from the National Center for Missing and Exploited Children that an online cloud account accessed from Tierney’s residence had uploaded images of child sexual abuse. While executing the search warrant, agents recovered Tierney’s cell phone, which contained multiple videos and images of child sexual abuse. Tierney admitted to agents that he used the cell phone and cloud account for possessing images of child sexual abuse.
Tierney has a prior New Jersey state conviction for endangering the welfare of a child/distribution of child pornography. The count of possession of child pornography after a prior child exploitation conviction carries a mandatory minimum penalty of 10 years in prison, a maximum penalty of 20 years in prison, and a maximum $250,000 fine. Sentencing is scheduled for April 12, 2022.
Acting U.S. Attorney Honig credited special agents of the Department of Homeland Security, Homeland Security Investigations, Cherry Hill Office, under the direction of Special Agent in Charge Jason J. Molina in Newark; the Camden County Prosecutor’s Office High Tech Crimes Unit, under the direction of Acting Prosecutor Grace C. MacAulay; and the New Jersey State Police, under the direction of Superintendent Patrick J. Callahan, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jeffrey B. Bender of the U.S. Attorney's Office Criminal Division in Camden.
California Parent Agrees to Plead Guilty in College Admissions CaseRead the Press Release
BOSTON – The owner of a warehousing company for the shipping industry has agreed to plead guilty in connection with his involvement in the college admissions case.
I-Hsin “Joey” Chen, 67, of Newport Beach, Calif., has agreed to plead guilty to one count of wire fraud and honest services wire fraud. A plea hearing for the defendant has not yet been scheduled by the Court. Chen was previously scheduled for trial on Jan. 13, 2022.
Chen will plead guilty to his role in a scheme to defraud ACT, Inc. by paying William “Rick” Singer $75,000 to bribe Igor Dvorskiy, a corrupt test administrator, to allow Mark Riddell, a corrupt test “proctor,” to secretly correct Chen’s son’s ACT exam answers to obtain a fraudulently inflated score.
Singer, Dvorskiy and Riddell have pleaded guilty for their respective roles in the scheme.
Under the terms of the plea agreement, the defendant has agreed to a sentence, subject to the Court’s approval, of nine weeks in prison, one year of supervised release with 100 hours of community service and a fine of $75,000.
Chen will be the 38th, and final parent, in the college admissions case to either plead guilty or be convicted by a jury following trial.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of conspiracy to commit mail and wire fraud and honest services mail and wire fraud provides for a sentence of up 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. 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; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Mark Deckett, Resident Agent in Charge of the Department of Education, Office of Inspector General made the announcement today. Assistant U.S. Attorneys Kristen A. Kearney, Ian J. Stearns and Leslie Wright of Mendell’s Securities, Financial & Cyber Fraud Unit are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
California Man Indicted on Methamphetamine ChargeRead the Press Release
BOSTON – A California man was indicted yesterday on a charge of distributing and possessing with intent to distribute methamphetamine.
Cameron Graff, 29, of San Diego, Calif., was indicted on one count of distributing and possessing with intent to distribute 50 grams or more of methamphetamine. Graff is currently in state custody on unrelated charges.
According to the charging documents, in December 2019, Graff began communicating with an undercover agent in Massachusetts about purchasing methamphetamine from Graff. In January 2020, Graff allegedly mailed a parcel containing approximately 690 grams of methamphetamine to the undercover agent.
The charge of distribution of and possession with intent to distribute 50 grams or more of methamphetamine provides for a mandatory minimum sentence of 10 years and up to life in prison, at least five years of supervised release and a fine of $10 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division made the announcement today. Special assistance in the investigation was provided by the U.S. Postal Inspection Service, San Diego Division and the Drug Enforcement Administration, San Diego Division. Assistant U.S. Attorney James E. Arnold of Mendell’s Narcotics & Money Laundering Unit is prosecuting the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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.
Burlington County Man Sentenced to 42 Months in Prison for Role in $350,000 Fraud SchemeRead the Press Release
CAMDEN, N.J. – A Burlington County, New Jersey, man was sentenced today to 42 months in prison for stealing more than $350,000 from a special needs trust, Acting U.S. Attorney Rachael A. Honig announced.
Eugene Young, 70, of Mount Holly, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of wire fraud. Judge Rodriguez imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
A special needs trust was established to provide for the supplemental care, maintenance, support, and education of a disabled individual and, in December 2017, had more than $1 million in assets in two bank accounts. In December 2017, Young caused the trust’s trustee, a senior citizen, to execute a power of attorney appointing him as the trustee’s agent.
Young used the power of attorney to gain access to the trust’s bank accounts and, between December 2017 and June 2019, used a variety of means to divert funds from the trust. Young used a debit card associated with the bank accounts to make more than 650 purchases and approximately 200 ATM withdrawals. He also wrote checks from the accounts to himself, made other withdrawals from the accounts, and cashed portions of annuity checks that were the property of the trust. The funds were not used for the benefit of the trust’s beneficiary, as required by the terms of the trust, but rather for Young’s personal use. Young misappropriated more than $350,000 from the trust before his scheme was discovered.
In addition to the prison term, Judge Rodriguez sentenced Young to three years of supervised release and ordered to pay restitution of $359,560.
Acting U.S. Attorney Honig credited special agents of FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; special agents of the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty; and special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.
Burlington County Man Charged with Cell Phone SIM Swap SchemeRead the Press Release
NEWARK, N.J. – A Burlington County, New Jersey, man was arrested today for swapping cell phone customers’ Subscriber Identity Module (SIM) numbers into mobile devices controlled by an individual who was paying the defendant for the swaps, Acting U.S. Attorney Rachael A. Honig announced.
Jonathan Katz, 40, of Marlton, New Jersey, is charged by complaint with one count of gaining unauthorized access to a protected computer. He is scheduled to appear before U.S. Magistrate Judge Michael A. Hammer and was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
In May 2021, Katz, who was employed as a manager at a telecommunications store, used his managerial credentials to access several customer accounts and swapped the SIM numbers associated with the customers’ phone numbers into mobile devices controlled by another individual, enabling this other individual to control the customers’ phones and access the customers’ electronic accounts. This technique is often used to defeat accounts with two-factor authentication including but not limited to email, social media, and financial accounts.
In exchange for the swaps, Katz was paid in Bitcoin, which was traced back to Katz’s cryptocurrency account.
The charge of unauthorized access to a computer carries a statutory maximum of five years in prison and a fine of not more than $250,000 or twice the pecuniary gain to the defendant or twice the gross loss involved, whichever is greatest.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George Crouch Jr. in Newark, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Vera Varshavsky of the U.S. Attorney’s Cybercrimes Unit in Newark.
Bellevue, Washington, CPA pleads guilty to tax fraudRead the Press Release
Seattle – A 70-year-old Bellevue, Washington, Certified Public Accountant pleaded guilty today in U.S. District Court in Seattle to attempt to evade or defeat tax, announced U.S. Attorney Nick Brown. Steven G. Shimizu, owned and operated a tax preparation business, S&S CPA Corporation (“S&S Corp.”). In tax years 2013, 2014 and 2015, Shimizu admits he hid income from his business by attributing it to other entities. In this way he underpaid his taxes by more than $884,000. Shimizu faces up to 5 years in prison when sentenced by U.S. District Judge John C. Coughenour on March 15, 2022.
According to the plea agreement, Shimizu admits he used two business entities, Shimizu & Shimizu (“S&S Partnership”) and CS Medical Consultants (“CS Partnership”) to evade taxes. In the years at issue, the entities had no business activity and thus no income or expenses. However, for tax years 2013 and 2014, Shimizu attributed income that he earned from his CPA corporation, as income to S&S Partnership. He then created phony business expenses attributable to S&S Partnership. Those expenses reduced the amount of income taxes owed. In tax years 2013-15 Shimizu used the same scheme with the CS Partnership. The scheme hid income from the CPA firm, and then the creation of phony business expenses reduced the income taxes owed.
Additionally, in tax years 2013-15, Shimizu sought to record personal expenses as business expenses on the tax returns for the CPA business. Shimizu characterized withdrawals from business accounts as business expenses, but they were actually cash withdrawals for his personal benefit, personal insurance, personal legal expenses, and payments to family members.
“Tax professionals are essential to the operation of our tax system, and the public puts their utmost trust in these professionals to prepare tax returns truthfully,” said Special Agent in Charge Bret Kressin, IRS Criminal Investigation (IRS-CI), Seattle Field Office. “When individuals like Mr. Shimizu break that trust by fraudulently filing false tax returns out of greed, they put their clients and the public at risk by undermining that trust. IRS-CI is continually committed to investigating those who think they are above paying their fair share.”
Attempting to evade or defeat tax is punishable by up to 5 years in prison and a $100,000 fine. The actual sentence will be determined by Judge Coughenour after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI).
The case is being prosecuted by Assistant United States Attorney Michael Dion.
Beckley Man Pleads Guilty to Federal Drug CrimeRead the Press Release
BECKLEY, W.Va. – A Beckley man pleaded guilty today to a federal drug crime.
According to court documents, on June 17, 2021, Rashad Lewis Morris, 29, was contacted by a confidential informant working with the Beckley Raleigh County Drug and Violent Crime Unit to purchase fentanyl. Morris met with the informant at a location on Johnstown Road in Beckley where he distributed approximately 2.9 grams of fentanyl to the informant in exchange for money.
Morris pleaded guilty to distribution of fentanyl and faces up to 20 years in prison when is sentenced on March 25, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Beckley Raleigh County Drug and Violent Crime Unit, and the Raleigh County Sheriff’s Department.
United States District Judge Frank W. Volk presided over the hearing. Assistant U.S. Attorney Courtney L. Cremeans is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:21-cr-00238.
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Bay Point Man Sentenced to over 17 Years in Prison for Production of Child PornographyRead the Press Release
OAKLAND - Sergio Luiz Cruz Esparza was sentenced today to 210 months in prison for producing child pornography, announced Acting United States Attorney Stephanie M. Hinds and Homeland Security Investigations Special Agent in Charge Tatum King. The sentence was handed down by the Hon. Yvonne Gonzalez Rogers, U.S. District Judge.
Cruz Esparza, 23, of Bay Point, pleaded guilty to the charge today and was sentenced during the same proceeding. According to the guilty plea, Cruz Esparza admitted that during 2019 and 2020, when he was 20 or 21 years old, he used social media applications, including Snapchat, to communicate with female minors for the purpose of requesting or persuading the minors to meet him in person and have sexual contact. Cruz Esparza admitted he told the minors he was younger than his real age. The plea agreement describes Cruz Esparza’s encounter with a 15-year-old in June of 2019. In the plea agreement, Cruz Esparza acknowledged how he initiated contact with the 15-year old on Snapchat, told the girl he was 17 years old, and sent the teenage girl images depicting sexually explicit conduct involving minors. Cruz Esparza arranged to meet this teenage minor in June 2019. During the meeting, Cruz Esparza molested her; and, using his telephone, created digital images as the intercourse occurred. Further, according to his guilty plea, Cruz Esparza sent images in March of 2020 to another user of a social media application of sexually explicit conduct by a minor female.
According to the sentencing memorandum filed by the government, during 2019-2020, Cruz Esparza enticed thirteen minor victims to send him images depicting sexually explicit conduct using social media platforms, and he had sexual contact with five of the victims, including sexual intercourse with four of them.
On December 14, 2020, the United States filed a three-count Superseding Information charging Cruz Esparza with one count each of distribution of child pornography, in violation of 18 U.S.C. § 2252(a)(2) and (b)(1); coercion and enticement of a minor, in violation of 18 U.S.C. § 2422(b); and production of child pornography, in violation of 18 U.S.C. § 2251(a). Cruz Esparza pleaded guilty to the production count; the other two counts were dismissed.
In addition to the prison term, Judge Gonzalez Rogers ordered a 10-year term of supervised release and set a restitution hearing for February 9, 2022. Cruz Esparza is in custody and will begin serving his prison term immediately.
Assistant U.S. Attorney Jonathan U. Lee is prosecuting the case with the assistance of Jessica Gonzalez Rodriguez and Kathleen Turner. The prosecution is the result of an investigation by the Department of Homeland Security, Homeland Security Investigations, and the Silicon Valley Internet Crimes Against Children Task Force.
Baltimore Drug Dealer Sentenced to Eight Years in Federal Prison for Conspiracy to Distribute Narcotics and Conspiracy to Commit Money LaunderingRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell sentenced Gregory Jones, age 44, of Lithonia, Georgia to eight years in federal prison, followed by four years of supervised release, for conspiracy to distribute narcotics and conspiracy to commit money laundering.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police; and Chief Daniel DeWolf of the Troy Police Department (New York).
According to his plea agreement, from 2017 to February 2019, Jones conspired with others to distribute heroin, fentanyl, and other narcotics in Maryland.
During an investigation conducted by the FBI and Maryland state investigators, investigators worked with a confidential informant who regularly engaged with the conspiracy. Throughout the investigation law enforcement monitored and recorded phone calls between the confidential informant and a co-conspirator of Gregory Jones. In these phone calls the informant and co-conspirator frequently discussed ongoing or future drug deals. Additionally, on at least two occasions, investigators arranged controlled purchases of heroin from the co-conspirator.
In 2018, investigators began a wiretap of Jones’s and the co-conspirator’s cell phones. During the wiretaps, Jones frequently engaged in phone calls with the co-conspirator and with customers. During the communications, Jones arranged to distribute narcotics to customers or acquired money from customers, often by having the co-conspirator conduct the transactions.
For example, on January 11, 2019, the co-conspirator contacted Jones and the co-conspirator engaged in a phone call. During the call, the two discussed numbers in a manner that indicated they were talking about quantities of narcotics. At one point in the conversation, Jones instructed the co-conspirator to “take those two, that 30 and that 11 and mix those together. Like run them through the strainer a couple times like how you did the joint last time.” Jones further instructed the co-conspirator to “mix those two together and then you gonna take that to him.”
Later that day, law enforcement observed the co-conspirator enter a car and began driving. While the co-conspirator was in route to their intended destination, law enforcement conducted a traffic stop of the co-conspirator’s vehicle. The vehicle was then scanned by a police canine that alerted a positive response for the presence of narcotics. Upon a search of the vehicle, investigators found 38.96 grams of a heroin/fentanyl mixture.
Jones agrees that the conspiracy involved the distribution of at least 700 grams of heroin.
Further, the federal and state investigation into Jones’ drug trafficking conspiracy revealed that the organization also engaged in in a conspiracy to commit money laundering in furtherance of narcotics activity. Jones and other members of the conspiracy would plan and/or conduct financial transactions, including the payment of money to drug suppliers, to promote and carry on the narcotics conspiracy. The organization transmitted narcotics profits through various means, including by sending wire transmissions of money.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Erek L. Barron praised the FBI, the Maryland State Police, the Cumberland Police Department, the Allegany County Sheriff’s Office, the Troy Police Department (New York), and the West Virginia Potomac Highlands Violent Crime and Drug Task Force for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Michael C. Hanlon and Lindsey McCulley, 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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Attorney General Garland Participates in Quintet Meeting of Attorneys GeneralRead the Press Release
The annual meeting of the five Attorneys General from New Zealand, Australia, Canada, the United Kingdom and the United States was held this year by video conference on Dec. 2 and 3, 2021.
Though it is the second time the COVID-19 pandemic has prevented the Quintet from meeting in person, the Attorneys General were able to meet virtually to progress this important work.
The meeting, chaired by the Hon. David Parker from New Zealand, brought together the Hon. Michaelia Cash (Australia), the Hon. David Lametti (Canada), the Hon. Suella Braverman QC MP (England and Wales) and the Hon. Merrick Garland (the United States of America) to discuss and share information about complex legal issues, in which they have a mutual interest.
“The opportunities for cooperation among our five countries are both wide-ranging and vital to our success in promoting access to justice for all in light of the COVID-19 pandemic; protecting our democratic institutions; and countering the threat of terrorism,” said U.S. Attorney General Merrick B. Garland. “The United States Department of Justice thanks New Zealand for bringing us together virtually this year, and we look forward to hosting next year’s Quintet.”
“Working closely with our international partners is essential as we face common challenges and strive to keep our citizens safe,” said New Zealand Attorney General David Parker.
“Collaboration among Quintet partners is essential to addressing shared legal challenges in our respective justice systems,” said Minister of Justice and Attorney General of Canada David Lametti. “This year’s discussions included valuable exchanges on the impacts of the COVID-19 pandemic, the importance of upholding the rule of law and the promotion of access to justice for all.”
“It’s been an honor to meet my Quintet counterparts and discuss our shared goals to protect the safety of our citizens,” said Attorney General for England and Wales Suella Braverman. “We stand together in the face of challenges like the pandemic, terrorism and foreign interference, bound by a mutual respect for the rule of law.”
“It is invaluable to have the opportunity to discuss priorities such as enhancing our approach to foreign influence and foreign interference and collaborating further to strengthen our frameworks across borders,” said Australia Attorney General Michaelia Cash.
The Attorneys General discussed their respective institutions’ responses to the challenges created by the COVID-19 pandemic, ways to enhance cooperation to address foreign influence and foreign interference in democratic processes, and the approaches each country takes in seeking to prevent terrorist acts.
The Quintet Communiqué jointly issued at the conclusion of the meeting is available here: /media/1179586/dl?inline
Armed Robber Sentenced to over 14 Years in Prison for Committing Two February 2020 Armed Robberies of Bethlehem-Area BusinessesRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Joshua Obed Altruz, 26, of Bethlehem, PA, was sentenced to 14 years and one month in prison, five years of supervised release, and was ordered to pay a $1,000 fine and restitution by United States District Judge Edward G. Smith for committing two armed robberies on February 6, 2020.
In July 2021, the defendant pleaded guilty to an Indictment charging him with two counts of Hobbs Act robbery, and two counts of using, carrying, and brandishing a firearm during a crime of violence. The charges stemmed from two incidents on the same afternoon last February: a robbery of the Taylor Family Fuel and Mini Mart, followed by a robbery of a Rite Aid pharmacy a few hours later. Each of the crimes were captured on surveillance, which ultimately enabled law enforcement to link the robberies back to the same assailant. In both videos, the defendant was seen wearing the same clothing, brandishing a distinctive two-tone black and brown semi-automatic Glock pistol, and fleeing the scene in a gold Honda Civic with tinted windows and an indentation on the driver side door.
Immediately after the second robbery at the pharmacy, Bethlehem Police Department officers responded to a call and conducted a traffic stop on a car matching the description above. The defendant was found in possession of the distinctive handgun, which was fully loaded with ten rounds of ammunition.
“This defendant brazenly robbed two neighborhood businesses, and for that he will now spend over fourteen years in prison,” said U.S. Attorney Williams. “Hopefully others will learn from the example set here -- if you rob a business in our District with a firearm, you are going to face serious federal prison time as a result. Our Office is committed to being ‘All Hands On Deck’ working with our law enforcement partners to bring criminals to justice.”
“Determined to score money and pills, Joshua Altruz committed two armed robberies in less than four hours,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “He did so toting a fully loaded gun, which he pointedly showed his victims. Fortunately, Bethlehem police officers quickly saw and stopped Altruz’s vehicle, taking him into custody before he could target any other businesses. Getting violent criminals like this off the street is a priority for the FBI and our local law enforcement partners, as we all work our hardest to keep the public safe.”
The case was investigated by the Federal Bureau of Investigation, with assistance from the City of Bethlehem Police Department and the Northampton County District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Kelly A. Lewis Fallenstein.
Arizona Man Sentenced to 4 Years’ Probation, Community Service, and Fine for Smuggling Marijuana in Luggage on Flight from San Francisco to St. CroixRead the Press Release
St. Croix, USVI – United States Attorney Gretchen C.F. Shappert announced today that Armando Antonio Mena, age 29, of Arizona, was sentenced by District Court Judge Wilma Lewis today to four years of federal probation, a fine of $3000, special assessment fee of $100, and 100 hours of community service. He had pleaded guilty on February 5, 2021 in federal court to possession of marijuana with intent to distribute.
According to court documents, Armando Antonio Mena traveled to St. Croix, U.S. Virgin Islands on May 27, 2020, on a flight that originated in San Francisco, California. On that flight, he transported checked luggage containing twenty-two individually wrapped vacuum sealed bags that contained just under ten kilograms of marijuana, the amount and packaging being consistent with drug distribution.
The case was investigated by Homeland Security Investigations and U.S. Customs and Border Protection. It is being prosecuted by Assistant U.S. Attorney Melissa P. Ortiz.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.