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Tuesday 7 December 2021
Convicted Felon Sentenced to 120 Months in Federal Prison for Illegally Possessing a FirearmRead the Press Release
Acting United States Attorney Ellison C. Travis announced that U.S. Chief District Judge Shelly D. Dick sentenced Donatraus Hudson, a/k/a “Dontarius Hudson,” age 22, of Baton Rouge to 120 months in federal prison following his conviction of possessing a firearm by a convicted felon. Hudson’s federal prison sentence will be served consecutive to any term of imprisonment imposed on charges currently pending in Louisiana state court. The Court further sentenced Hudson to three years of supervised release following his term of imprisonment and ordered that the firearm and ammunition involved be forfeited.
According to admissions Hudson made as a part of his guilty plea, on September 10, 2020, the United States Marshal Service Fugitive Task Force executed an arrest warrant for Hudson on state charges for armed robbery at his residence in Baton Rouge. Shortly thereafter Baton Rouge Police officers obtained a search warrant for Hudson’s residence and a search of the premises was conducted, in which a loaded SCCY, a model CXP-2, 9 mm semi-automatic pistol and additional ammunition were found.
Prior to possessing the firearm, Hudson was convicted in September of 2019 of simple burglary and in April of 2018 of attempted possession of a Schedule IV-controlled dangerous substance. Both of these prior felony convictions were in East Baton Rouge Parish.
Acting U.S. Attorney Ellison Travis stated, “Keeping repeat offenders off our streets remains a top priority of this office. Our office is committed to working with our law enforcement partners to keep our communities safe. This was a team effort and congratulations to our prosecutor, the ATF, and the Baton Rouge Police Department for the great work on this case.”
“The sentence imposed today lets repeat offenders know that they will pay a price for their crimes,” said ATF New Orleans Field Division Special Agent in Charge Kurt Thielhorn. “The collaborative effort of the U.S. Attorney’s Office, local law enforcement, and the ATF is the foundation for keeping our neighborhoods and communities safe from violent criminals.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Baton Rouge Police Department. The case was prosecuted by Assistant United States Attorney Jessica M.P. Thornhill.
Convicted Felon Sentenced to 105 Months for Possessing a Firearm During a Domestic Violence IncidentRead the Press Release
Memphis, TN – Jenico Burrus, 29, has been sentenced to 105 months in federal prison for being a convicted felon in possession of a firearm and possession of a firearm after a misdemeanor conviction for domestic violence. Acting U.S. Attorney Joseph C. Murphy Jr., announced the sentence today.
According to information presented in court, on June 13, 2020, Memphis Police officers responded to an aggravated assault on Eastwind Drive. The victim advised that she and Jenico Burrus were in an argument when he pulled a black handgun from his waistband, pointed it at her and threatened to kill her. When law enforcement arrived, Burrus fled the scene through an apartment complex, jumped over a fence and threw the gun in the parking lot. Burrus was later found hiding behind a building near W. Foronia Square. The gun recovered was a Glock .45 caliber pistol, loaded with one live round in the chamber and 6 rounds in the magazine.
Prior to his arrest, Burrus had an outstanding warrant for domestic assault with bodily harm, two prior felony convictions for aggravated assault in 2015, and two prior convictions for misdemeanor domestic violence in 2013. As a result of his prior felony convictions, the defendant is prohibited by federal law from possessing firearms or ammunition.
On December 3, 2021, U.S. District Judge Thomas L. Parker sentenced Burrus to 105 months in federal prison to be followed by three years supervised release. There is no parole in the federal system.
This case was investigated by the Memphis Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Project Safe Neighborhoods (PSN) Task Force. The Project Safe Neighborhoods (PSN) initiative is 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. In 2017, PSN was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime.
Assistant U.S. Attorney Raney Irwin prosecuted this case on behalf of the government.
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Convicted Felon Charged with Trying to Bring Loaded Gun on Plane at Newark Liberty International AirportRead the Press Release
NEWARK, N.J. – A Sandy Springs, Georgia, man appeared in federal court today to face weapons charges after allegedly trying to get a firearm through security at Newark Liberty International Airport, Acting U.S. Attorney Rachael A. Honig announced.
Desmond Herring, 48, is charged by complaint with one count of carrying a weapon on an aircraft and one count of possession of a firearm and ammunition by a convicted felon. He appeared by videoconference this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court and was released on $100,000 unsecured bond, with home confinement and GPS monitoring.
According to documents filed in this case and statements made in court:
On Nov. 29, 2021, Herring submitted a carry-on bag for inspection at Newark Liberty International Airport. During the x-ray screening of Herring’s luggage, a Transportation Security Administration (TSA) agent identified ammunition and a suspected firearm and contacted the Port Authority Police Department. Upon seeing that his bag had attracted additional attention, Herring left the security checkpoint area without his bag and walked to a departure gate for his flight to Atlanta, Georgia.
Further investigation of Herring’s bag revealed that it contained a 9 millimeter pistol, 10 rounds of 9 millimeter ammunition loaded into a magazine, and three boxes of ammunition that each contained 50 rounds of 9 millimeter ammunition. Herring was prohibited from possessing a firearm due to a 2010 federal conviction for conspiracy to distribute controlled substances.
Both charges in the complaint carry a maximum potential penalty of 10 years in prison.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and officers of the Port Authority Police Department, under the direction of Superintendent Edward Cetnar, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Benjamin Levin of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Columbia Man Sentenced to More Than 30 Years for Drug and Firearms CrimesRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Kenyada Jaqu, 45, of Columbia, was sentenced to more than 30 years in federal prison after a three-day trial in October 2020 where a jury found him guilty of drug- and firearm-related crimes. Jaqu’s trial was the first criminal trial in the United States District Court for the District of South Carolina during the COVID-19 pandemic.
Evidence presented by the Government during the trial established that on March 11, 2019, Jaqu was a passenger in a car stopped by a deputy with the Richland County Sheriff’s Department. During a subsequent search of the vehicle, the deputy located several suspected controlled substances. Later that day, law enforcement searched a hotel room and a residence associated with Jaqu, where they found two firearms, additional suspected controlled substances, and drug paraphernalia. Additional investigation revealed that Jaqu’s drug trafficking activities stretched back at least as far as March, 2015. Federal law prohibits Jaqu from possessing firearms due to prior state felony convictions for attempted strong armed robbery, distribution of heroin, and possession of heroin.
The jury ultimately found Jaqu guilty of possession with intent to distribute and distribution of heroin and methamphetamine, conspiring to possess with intent to distribute and to distribute heroin and methamphetamine, being a felon in possession of firearms, and possessing a firearm in furtherance of drug trafficking.
United States District Judge Michelle Childs, who presided over the trial, sentenced Jaqu to 388 months in federal prison, to be followed by an eight-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, and Richland County Sheriff’s Department.
Assistant United States Attorney Katherine Flynn prosecuted the case.
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Coffee County Man Found Guilty of Murder While Trafficking Drugs Along with Other Federal Gun and Drug ChargesRead the Press Release
Montgomery, Alabama – On December 3, 2021, Jareece Edward Blackmon, 28, from Enterprise, Alabama, was convicted by a jury on federal gun and drug charges, including a charge of committing murder in relation to a drug trafficking crime, announced Acting United States Attorney Sandra J. Stewart.
According to court records and evidence presented at trial, on June 15, 2017, officers from the Montgomery Police Department responded to a business after reports of a shooting. When officers arrived, they found Blackmon, who had been shot in the leg. A stolen Ruger .380 was found in Blackmon’s car along with a mesh bag in the trunk containing ammunition with his blood on the outside and inside of the bag. Blackmon is a convicted felon and is prohibited from possessing a firearm.
Later, on August 15, 2017, Blackmon went to a house in Enterprise with multiple individuals to purchase a large quantity of marijuana. One went inside with Blackmon, was shot six times, and died. The next day, law enforcement was executing an arrest warrant on Blackmon at his residence and found the gun used in the murder with Blackmon’s DNA on it. More than eighteen pounds of marijuana and other firearms were discovered as well.
After hearing the evidence presented at trial, the jury found Blackmon guilty of using and discharging a firearm to commit murder during and in relation to a drug trafficking crime, conspiracy to traffic marijuana, possession of a firearm in connection with a drug trafficking crime, possession with intent to distribute marijuana, and three counts of being a felon in possession of a firearm.
Due to the seriousness of his crimes, Blackmon is facing a maximum sentence of life in prison. In the coming months, a federal district court judge will determine Blackmon’s sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by the Enterprise Police Department, the Montgomery Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with assistance from the Alabama Department of Forensic Sciences, the Dothan Police Department, the Level Plains Police Department, and the Federal Bureau of Investigation (FBI). Assistant United States Attorneys Kevin Davidson, Justin Jones, and Greg Griffin Jr. prosecuted the case.
Citronelle Resident Sentenced to 48 Months Imprisonment on Gun ChargeRead the Press Release
MOBILE, AL – A Citronelle man was sentenced to 48 months in prison and three years of supervised release for being a felon in possession of multiple firearms.
According to court documents, Xavier Davell Shepard, 45, had four felony convictions prior to his latest offense, including a conviction in 2013 in the United States District Court for the Southern District of Alabama for being a felon in possession of a firearm. Federal law prohibits felons from possessing firearms or ammunition.On February 12, 2020, a victim reported a burglary at her Citronelle home. One or more persons had allegedly entered the home and stolen ten firearms from a back bedroom. The Citronelle Police Department later recovered four of the ten firearms after Shepard pawned them at various pawn shops.
On March 8, 2020, a Citronelle Police Department detective interviewed Shepard about the stolen firearms. Shepard told police that he had been at the victim’s home a couple days before the burglary and that he had been doing odd jobs and washing cars around the house for some time. Shepard said three other persons committed the burglary and that he bought five firearms in Citronelle from one of the burglars. Shepard said he acquired the firearms in the woods in Citronelle where the burglars had stashed the weapons. Shepard admitted that he later pawned the firearms for money.
U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.
The Federal Bureau of Investigation and Citronelle Police Department investigated the case.
Assistant U.S. Attorney Sinan Kalayoglu prosecuted the case on behalf of the United States.
Cheshire Investment Advisor Sentenced to 30 Months for Stealing More Than $600K from Elderly ClientRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that MATTHEW O. CLASON, 40, of Cheshire, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 30 months of imprisonment, followed by two years of supervised release, for stealing more than $600,000 from an investment client.
According to court documents and statements made in court, Clason was an investment advisor and a registered representative of Lincoln Financial Advisors Corporation, and then LPL Financial LLC. Beginning in approximately 2015, Clason provided investment services to a 73-year-old Connecticut resident (“the victim”). The victim had at least five investments accounts with Clason and, in January 2018, Clason and the victim opened a joint bank account. From 2018 to August 2020, Clason transferred more than $668,000 from the victim’s investment accounts into the joint bank account and, without the victim’s knowledge or authorization, withdrew more than $621,000 in cash from the bank account for his personal use. Clason also transferred $5,000 directly from the joint bank account to his personal bank account, and made two transfers from the joint bank account to pay his personal credit card.
Judge Shea ordered Clason to pay $639,580 in restitution
On May 12, 2021, Clason pleaded guilty to one count of wire fraud.
Clason, who is released on bond, is required to report to prison on February 28, 2022.
This matter was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Heather L. Cherry.
The Justice Department has established a National Elder Fraud Hotline to provide services to seniors who may be victims of financial fraud. The Hotline is staffed by experienced case managers who can provide personalized support to callers. Case managers assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller. The Hotline’s toll-free number is 833-FRAUD-11 (833-372-8311).
Charleston Man Sentenced to Thirteen Years in Federal Prison for Drug and Gun OffenseRead the Press Release
Charleston, South Carolina --- Acting United States Attorney M. Rhett DeHart, announced today that Joseph Roberto Major, 33, of North Charleston, was sentenced to thirteen years in federal prison after pleading guilty to possession of a firearm in furtherance of a drug trafficking crime.
Evidence presented to the court showed that on November 22, 2017, Major was arrested at a North Charleston night club after pointing a gun at a woman and threatening to “blow her head off.” Club security restrained Major and recovered a Glock from his waistband. Responding officers searched Major’s car and discovered multiple bags of pills that ultimately tested positive for methamphetamine. Major was also charged with being a felon-in-possession of a firearm in connection with a separate incident at the same club in January of 2017.
On June 23, 2021, Major pleaded guilty to possessing a firearm in furtherance of drug trafficking in connection with the November 2017 incident. Major has a long criminal history, which includes prior convictions for distribution of cocaine, possession with intent to distribute cocaine, assault and battery of a high and aggravated nature, unlawful carrying of a pistol, possession of drug paraphernalia, and multiple convictions for disorderly conduct.
United States District Judge David Norton sentenced Major to 156 months in federal prison, to be followed by a five-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and North Charleston Police Department 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.
Assistant United States Attorney Chris Schoen prosecuted the case.
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Charleston Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. -- Richard Daniels Jr., 39, of Charleston, pleaded guilty today to a federal gun crime.
Based upon statements made in court, Daniels possessed a Springfield, Model XD 9mm handgun on December 12, 2020 in Charleston. Daniels admitted that he knew he was prohibited from possessing the gun because of his 2003 felony conviction for third-degree sexual assault in Rock County, Wisconsin.
Daniels pleaded guilty to being a felon in possession of a firearm and faces up to 10 years in prison when he is sentenced on March 10, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Charleston Police Department.
Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Nick Miller is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-00183.
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Canadian Man Charged in Scheme to Commit CyberattacksRead the Press Release
ANCHORAGE – A federal indictment unsealed today charges a Canadian national with committing cyberattacks.
According to court documents, Matthew Philbert, 31, of Ottawa, Ontario, Canada, conspired with others known and unknown to the United States to damage computers, and in the course of that conspiracy did damage a computer belonging to the State of Alaska in April 2018.
In a separate and parallel investigation, the Canadian authorities today also announced cybercrime charges against Philbert. He was arrested on Nov 30, 2021, by Ontario Provincial Police where he remains in custody.
“Today’s unsealed indictment is a great example of the importance of international partnerships to combat the evolving and growing threat of cybercrimes,” said Acting U.S. Attorney Bryan Wilson of the District of Alaska. “Cybercriminals are a dangerous threat and together with our law enforcement partners, we will use all our available resources to bring cybercriminals who target Alaskans to justice, wherever they are.”
“Cyber criminals are opportunistic and will target any business or individual they identify as vulnerable. The OPP continues to demonstrate its ability to seamlessly collaborate on integrated police investigations to combat cybercrimes and other illegal activities.” Deputy Commissioner Chuck Cox, Provincial Commander, Ontario Provincial Police (OPP) Investigations and Organized Crime
Philbert is charged with one count of conspiracy to commit fraud and related activity in connection with computers and one count of fraud and related activity in connection with computers. This indictment in the District of Alaska is part of an ongoing national effort by the Department of Justice to address cybercrimes that target U.S. citizens from abroad.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, Acting U.S. Attorney Bryan Wilson of the District of Alaska, and Special Agent in Charge Antony Jung of the FBI’s Anchorage Field Office made the announcement.
The FBI’s Anchorage Field Office is investigating the case. Assistant Attorney General Polite and Acting U.S. Attorney Wilson thanked the Canadian and Dutch authorities for their assistance.
Assistant U.S. Attorney Adam Alexander and Trial Attorney Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Canadian Man Charged with Scheme to Commit CyberattacksRead the Press Release
A federal indictment unsealed today in Alaska charges a Canadian national with committing cyberattacks.
According to court documents, Matthew Philbert, 31, of Ottawa, Ontario, Canada, conspired to and did damage a computer belonging to the State of Alaska in April 2018.
In a separate and parallel investigation, the Canadian authorities today also announced cyber charges against Philbert. He was arrested on Nov. 30 by Ontario Provincial Police where he remains in custody.
Philbert is charged with one count of conspiracy to commit fraud and related activity in connection with computers and one count of fraud and related activity in connection with computers. This indictment in the District of Alaska is part of an ongoing national effort by the Department of Justice to address cybercrimes that target U.S. citizens from abroad.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, Acting U.S. Attorney Bryan Wilson of the District of Alaska, and Special Agent in Charge Antony Jung of the FBI’s Anchorage Field Office made the announcement.
The FBI’s Anchorage Field Office is investigating the case. Assistant Attorney General Polite, Acting U.S. Attorney Wilson and FBI Special Agent in Charge Jung thanked the Canadian and Dutch authorities for their assistance.
Assistant U.S. Attorney Adam Alexander and Trial Attorney Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
California Parents Plead Guilty in College Admissions CaseRead the Press Release
BOSTON – Two Silicon Valley parents pleaded guilty today in federal court in Boston in connection with their involvement in the college admissions case.
Gregory Colburn, M.D., 64, and Amy Colburn, 52, of Palo Alto, Calif., pleaded guilty to one count of conspiracy to commit mail and wire fraud and honest services mail and wire fraud. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for April 14, 2022.
The Colburns admitted to their roles in a scheme to defraud The College Board by paying William “Rick” Singer $25,000 to bribe Igor Dvorskiy, a corrupt test administrator, to allow Mark Riddell, a corrupt test “proctor,” to secretly correct the Colburns’ son’s SAT 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 agreements, each of the defendants has agreed to sentences, subject to the Court’s approval, of eight weeks in prison, one year of supervised release with 100 hours of community service and a fine of $12,500.
Gregory Colburn and Amy Colburn are the 36th and 37th parents 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.
Bradford Man Sentenced to 6 Years for Receiving Sexual Images and Movies of ChildrenRead the Press Release
ERIE, Pa. - A resident of Bradford, Pennsylvania, has been sentenced in federal court to 72 months in jail, to be followed by five years of supervised release on his conviction of violating federal laws relating to the sexual exploitation of children. Sutton was also ordered to pay $2,000 in restitution to each of three separate victims and a $5,100 special assessment, United States Attorney Cindy K. Chung announced today.
Senior United States District Judge David S. Cercone imposed the sentence on Daniel Thomas Sutton, 33, 595 South Kendall Avenue, Bradford, Pennsylvania
According to information presented to the court, Sutton received computer images and movies depicting minors, some as young as toddlers and infants, engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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 and the Pennsylvania State Police for the investigation leading to the successful prosecution of Sutton.
Boston Man Pleads Guilty to Wide-Ranging Cocaine Trafficking ConspiracyRead the Press Release
BOSTON – A Boston man pleaded guilty yesterday to his role in a wide-ranging cocaine trafficking conspiracy.
Luis Mejia Guerrero, 61, pleaded guilty to conspiracy to distribute and to possess with intent to distribute 500 grams or more of cocaine. At the conclusion of the plea hearing, Guerrero was taken into custody and detained pending sentencing, which U.S. District Court Judge Nathaniel M. Gorton scheduled for April 12, 2022. Guerrero was indicted in June 2019.
According to court documents, in the fall of 2018, federal and state law enforcement began investigating a violent Brockton drug crew headed by Djuna Goncalves. The investigation revealed that Goncalves worked with others to distribute large quantities of fentanyl, heroin, cocaine, cocaine base and marijuana throughout southeastern Massachusetts from a base of operations at a family home in Brockton. The neighborhood surrounding the crew’s Brockton base has been the scene of numerous murders, shootings and other crimes of violence for several years.
The investigation identified Guerrero and other members of his Boston-based drug cell as cocaine suppliers to Goncalves’s crew. Guerrero and others distributed cocaine on a daily basis out of a stash house in Dorchester. In May 2019, Guerrero was arrested along with his partner, Luis Alfredo Baez, after agents intercepted a kilogram of cocaine being transported to the stash house.
On June 23, 2021, Baez was sentenced by Judge Gorton to 41 months in prison. Goncalves pleaded guilty on Oct. 7, 2021 and is scheduled to be sentenced on Feb. 9, 2022. Under the terms of Djuna Goncalves’s plea agreement, he will serve a minimum of 15 years in prison and the government will recommend a sentence of 308 months in prison.
In total, 17 individuals were indicted in wide-ranging drug trafficking conspiracy reaching from Boston to Brockton to Lawrence to Cape Cod. Guerrero is the 17th and final defendant to plead guilty in this case.
The charge of conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine provides for a sentence of at least five years and up to 40 years in prison, at least four years of supervised release and a fine of up to $5 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; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Plymouth County District Attorney Timothy J. Cruz; and Brockton Police Chief Emanuel Gomes made the announcement today. Assistant U.S. Attorneys Christopher Pohl and Alathea E. Porter of Mendell’s Narcotics & Money Laundering Unit are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Bethel Man Pleads Guilty to Conspiracy to Distribute OpioidsRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on December 6, 2021, James Bannister, 57, of Bethel, Vermont pleaded guilty to conspiracy to distribute and possess with intent to distribute controlled substances, including the opioids Tapentadol and Tramadol, in connection with his involvement in an international drug trafficking operation.
According to court records and proceedings, from in or about 2019 through June 2021, Bannister and others used mailboxes in Vermont to receive shipments of controlled substances and misbranded pharmaceutical drugs sent from outside the United States. Bannister also received international shipments of controlled substances and misbranded drugs at his residence, including pills containing the opioids Tapentadol and Tramadol, as well as Carisoprodol, a muscle relaxant. After receiving the controlled substances, Bannister and others unlawfully redistributed them, typically by U.S. mail, to customers across the United States. In June 2021, law enforcement executed a search warrant at Bannister’s residence and seized 14,449 pills containing Schedule II and IV drugs.
Bannister faces a maximum sentence of up to 20 years of imprisonment, up to lifetime supervised release, and up to a $1,000,000 fine. The Court will determine the sentence with reference to the Federal Sentencing Guidelines.
Acting United States Attorney Jonathan A. Ophardt commended the collaborative investigative efforts of the Food and Drug Administration Office of Criminal Investigation, Homeland Security Investigations, the Drug Enforcement Administration, the United States Postal Inspection Service, and the Rutland City Police Department. “The importation and sale of diverted and counterfeit pharmaceuticals feeds the opiate crisis with pills cloaked in fraudulent legitimacy. The cost of addiction is borne by our communities, while the money pilfered from addicted individuals lines the pockets of foreign criminals. I applaud our investigatory partners for targeting the facilitators who play a vital role in supporting these international criminal organizations.”
“Misbranded and counterfeit prescription drugs that are smuggled from overseas can present a serious health risk to those who buy and use them. The drugs may contain unknown ingredients, may be made under unknown conditions, and may be used without the supervision of a licensed medical professional,” said Special Agent in Charge Jeffrey J. Ebersole, FDA Office of Criminal Investigations New York Field Office. “We will continue to investigate and bring to justice those who traffic in misbranded or counterfeit prescription drugs.”
“Bannister peddled opioids and other dangerous substances, bringing them across borders and into New England and the rest of the United States,” said Matthew Millhollin, Special Agent in Charge for the Homeland Security Investigations’ Boston Field Office, which covers all of New England. “Cases like these require strong partnerships and HSI is proud to work with our law enforcement partners to prevent the illicit flow of controlled substances into the country.”
“Responding to the increased prevalence of diverted or counterfeit pharmaceuticals in New England is among DEA’s highest priorities” stated Brian Boyle, DEA New England’s Special Agent in Charge. “This Vermont based international drug smuggling organization shows that every corner of New England is being targeted by drug trafficking organizations for distribution of these deadly substances. DEA and our federal, state and local partners are committed to bringing to justice, those who are fueling our country’s unprecedented opioid epidemic.”
“The U.S. Postal Inspection Service and our law enforcement partners will continue to dedicate the necessary resources to fight drug trafficking in our communities,” said Inspector in Charge Ketty Larco-Ward of the U.S. Postal Inspection Service’s Boston Division. “The Postal Service has no interest in being the unwitting accomplice to anyone using the U.S. Mail to distribute illegal drugs.”
Bannister is represented by Assistant Federal Public Defender David McColgin. The prosecutor is Assistant U.S. Attorney John J. Boscia.
Beaver Falls Man Sentenced to Prison for Lying on Firearms Purchase FormRead the Press Release
PITTSBURGH, PA- A resident of Beaver Falls, Pennsylvania, has been sentenced on a charge of making a false statement to purchase firearms, United States Attorney Cindy K. Chung announced today.
Judge David S. Cercone sentenced Calvin Brady Jr, 25, to 37 months’ imprisonment, three years of supervised release and a $100 special assessment.
The court was previously advised that on December 12, 2020, the defendant purchased four Taurus, model GC3, 9mm caliber pistols from Rural King Holdings LLP, a federal firearm licensee in Monaca, PA. During the purchase, two males accompanied the defendant. Surveillance footage showed the defendant and the two males browse firearms, one of the males select three extended pistol magazines, and the defendant purchase four pistols and the extended magazines.
The following day, the New Jersey State Police arrested the two males who accompanied the defendant during the purchase of the pistols and extended magazines. The arrest occurred following a highspeed chase, during which the two males threw firearms from their vehicle. Following the arrest, New Jersey law enforcement recovered three Taurus pistols from the side of the road. A firearm trace of the recovered pistols revealed that the defendant bought the firearms the day prior from Rural King in Beaver, PA.
Prior to purchasing the pistols, the defendant certified to the federal firearm licensee that he was purchasing the firearms for himself. The investigation revealed that the defendant lied when he made this statement as he was purchasing the firearms for another, which is a violation of federal law.
On December 17, 2020, federal agents arrested the defendant while he was an occupant in a vehicle. During the arrest, law enforcement recovered a firearm in the driver’s possession. An examination of the firearm’s serial number revealed that it was the fourth pistol purchased by the defendant on December 12, 2020.
Assistant United States Attorney Brendan J. McKenna prosecuted this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that lead to the prosecution of Calvin Brady Jr.
Armed Career Criminal Sentenced to 15 Years in Federal Prison for Possession of a FirearmRead the Press Release
Memphis, TN – Nicholas Marshall, 36, has been sentenced to 188 months in federal prison for being a convicted felon in possession of a firearm. Acting U.S. Attorney Joseph C. Murphy Jr., announced the sentence today.
According to information presented in court, on October 4, 2020, Memphis Police officers were notified about an unconscious man who had a gun in his lap in a Silver Volvo parked on Spottswood Avenue. Upon arrival, officers observed Nicholas Marshall slumped over the steering wheel with the horn blaring. Officers seized the gun and assisted until he became alert and responsive. Marshall was treated by paramedics on the scene.
The gun was determined to be a Rossi .357 revolver, loaded with five live rounds of ammunition. Further search revealed Marshall had 91 Xanax pills and two bags of cocaine weighing 3.9 grams on his person.
Marshall had multiple felony drug convictions, including 7 prior convictions for possession of cocaine with intent to distribute. As a result of his felony convictions, he is prohibited by federal law from possessing firearms or ammunition. Under the federal sentencing guidelines, Marshall was determined to be an armed career criminal and subject to a mandatory minimum sentence of 180 months.
On December 2, 2021, U.S. District Judge Mark S. Norris sentenced Marshall to 188 months in federal prison to be followed by 3 years of supervised release. There is no parole in the federal system.
This case was investigated by the Memphis Police Department, the Bureau of Alcohol, Tobacco and Firearms Explosives (ATF) and Project Safe Neighborhoods Task Force. The Project Safe Neighborhoods (PSN) initiative is 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. In 2017, PSN was reinvigorated as part of the Justice Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime.
Assistant U.S. Attorney Raney Irwin prosecuted this case on behalf of the government.
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Monday 6 December 2021
Watertown Man Sentenced for Possession of a Firearm by a Prohibited PersonRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Watertown, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on December 6, 2021, by U.S. District Judge Karen E. Schreier.
Michael Ray Mitchell, age 43, was sentenced to 48 months in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Mitchell was indicted by a federal grand jury on January 12, 2021. He pled guilty on September 14, 2021.
The conviction stemmed from an incident on December 18, 2020, in Sioux Falls. Law enforcement officers on the Sioux Falls Area Fugitive Task Force encountered Mitchell while searching a home for a fugitive. Officers found Mitchell in the basement pretending to sleep on a couch. A loaded 9 mm handgun was found between the couch cushions and Mitchell was arrested. He had previously been convicted of multiple felonies and was prohibited from possessing any firearms. The gun and all the ammunition were forfeited to the federal government.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Sioux Falls Area Fugitive Task Force, which included officers from the U.S. Marshals Service and the Minnehaha County Sheriff’s Office. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Mitchell was immediately turned over to the custody of the U.S. Marshals Service.
Two Peruvian Nationals Plead Guilty to Defrauding Thousands of Spanish-Speaking U.S. ImmigrantsRead the Press Release
Two Peruvian nationals responsible for operating a series of call centers in Peru that defrauded Spanish-speaking U.S. residents by falsely threatening them with arrest, deportation and other legal consequences pleaded guilty to federal charges in the U.S. District Court for the Southern District of Florida.
Josmell Espinoza Huerta (Josmell Espinoza), 32, and his brother Carlos Alberto Espinoza Huerta (Carlos Espinoza), 40, both from Lima, Peru, pleaded guilty for their roles in conspiring to commit mail fraud and wire fraud through several call centers in Peru that they owned and operated.
According to court documents, Josmell and Carlos Espinoza co-owned and operated the JFC Peru call center in Peru. In addition, Josmell Espinoza owned and operated the Camino Al Progreso and Latin Shop call centers, and Carlos Espinoza separately owned and operated the Latinos en Accion and Latin Force call centers in Peru.
From April 2011 until July 2019, the Espinoza brothers and their co-conspirators in Peru called victims — many of whom were recent immigrants from Central America, Mexico and other Spanish-speaking countries — and fraudulently threatened them with legal consequences if they did not make payments for purportedly delivered products and settlement fees for English-language classes. The defendants and their co-conspirators used false statements and threats to obtain money from victims across the United States by falsely telling the victims that they were required to accept and pay for English-language courses and other educational products and that failure to do so placed them in legal jeopardy. The defendants and their co-conspirators then falsely threatened to have their victims arrested and deported in order to collect payments from many vulnerable victims in southern Florida and across the United States.
In pleading guilty, both defendants admitted that they and their employees falsely claimed to be lawyers, court officials, federal agents and representatives of a so-called “minor crimes court,” which does not exist. The callers falsely threatened victims with court proceedings, negative marks on their credit reports, imprisonment and immigration consequences if they did not immediately pay for the purportedly delivered products and settlement fees. Carlos Espinoza caused victims to lose over $1.3 million, and Josmell Espinoza caused victims to lose over $700,000.
“The Department of Justice’s Consumer Protection Branch will steadfastly pursue and prosecute transnational criminals who defraud vulnerable U.S. consumers,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “Those who impersonate U.S. government officials and use threats to prey on our immigrant communities will be brought to justice and held accountable in U.S. courts.”
“This case demonstrates that the long arm of justice has no limits when it comes to reaching fraudsters who prey on our nation’s most vulnerable populations,” said Acting U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida. “We will continue to bring American justice to transnational criminals who use fear tactics and intimidation to steal money from immigrants, seniors and others who live in this country.”
“For many years, the U.S. Postal Inspection Service and their law enforcement partners have investigated and prosecuted international criminal rings targeting U.S. consumers to steal their hard-earned money,” said Inspector in Charge Joseph Cronin of the U.S. Postal Inspection Service Miami Division. “We will continue to aggressively pursue these criminals to ensure that they are prosecuted to the fullest extent of the law.”
With Carlos Espinoza’s guilty plea in Miami today, all seven defendants indicted in this matter have now pleaded guilty. Four of the defendants’ co-conspirators were arrested in July 2019, and another was arrested in January 2020. All five of those defendants were extradited to the Southern District of Florida in October 2020, and were sentenced to serve significant prison sentences earlier this year. Henrry Milla was sentenced to 110 months in prison, Jerson Renteria was sentenced to 100 months in prison, and Evelyng Milla, Fernan Huerta and Omar Cuzcano and were each sentenced to serve 90 months in prison.
Carlos Espinoza and Josmell Espinoza evaded arrest at the time of their co-defendants’ arrests and were subsequently located in Peru and extradited to the United States on June 25. U.S. District Judge Robert N. Scola, Jr. will sentence Josmell Espinoza in Miami on Feb. 9, 2022, and will sentence Carlos Espinoza on Feb. 14, 2022.
The U.S. Postal Inspection Service and the Civil Division’s Consumer Protection Branch investigated the case. Senior Trial Attorney Phil Toomajian and Trial Attorney Max Goldman of the Consumer Protection Branch are prosecuting the case. The Federal Trade Commission, the Justice Department’s Office of International Affairs, the U.S. Attorney’s Office for the Southern District of Florida, the State Department’s Diplomatic Security Service and the Peruvian National Police provided critical assistance.
Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice. Additional information about the Consumer Protection Branch and its elder fraud enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311).
Two New Jersey Men Admit Possessing with Intent to Distribute over One Kilogram of FentanylRead the Press Release
NEWARK, N.J. – An Essex County man and a Hudson County man admitted possessing with intent to distribute over a kilogram of fentanyl, Acting U.S. Attorney Rachael A. Honig announced today.
Coco Latre, 32, of Belleville, New Jersey, pleaded guilty today before U.S. District Judge Kevin McNulty to an information charging him with possession with intent to distribute over one kilogram of fentanyl. Bryant Agurto, 33, of Hoboken, New Jersey, pleaded guilty by videoconference before Judge Kevin McNulty on Nov. 10, 2021, to an information that charged him with possession with intent to distribute over one kilogram of fentanyl.
According to documents filed in this case and statements made in court:
On March 5, 2021, Agurto travelled from Hoboken to Latre’s residence in Belleville to retrieve fentanyl that had been packaged by Latre. After Agurto left Latre’s residence, law enforcement officers conducted a motor vehicle stop of Agurto’s car and found the package of fentanyl. Shortly thereafter, law enforcement officers searched Latre’s residence and recovered more fentanyl, seizing a total of 1.6 kilograms of fentanyl from the car and residence.
The offense to which Agurto and Latre pleaded guilty carries a mandatory minimum term of 10 years in prison, a maximum penalty of life in prison, and a fine of $10 million. Sentencing for Latre is scheduled for April 12, 2022. Sentencing for Agurto is scheduled for March 23, 2022.
Acting U.S. Attorney Honig credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Ray A. Mateo of the Opioid Abuse Prevention and Enforcement Unit in Newark.
Tucker County man admits to firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Gregory L. Coontz, of Parsons, West Virginia, has admitted to a firearms charge, United States Attorney William J. Ihlenfeld, II announced.
Coontz, 21, pleaded guilty today to one count of “Unlawful Possession of a Firearm.” Coontz, a person prohibited from having firearms, admitted to having a .38 Special Caliber revolver in July 2020 in Tucker County.
Coontz faces up to 10 years of incarceration and fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Christopher L. Bauer is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Parsons Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
South Florida Police Officer Charged in Federal Court with Attempting to Sexually Exploit ChildRead the Press Release
Miami, Florida – On Friday, 30-year-old Stuart, Florida resident Juan Antonio Garcia appeared in United States magistrate court in Ft. Pierce to face a federal charge that he attempted to produce pornography of a 15-year-old boy. Garcia is a law enforcement officer with the Sewall’s Point Police Department.
According to the recently unsealed criminal complaint affidavit, law enforcement officers received a report on November 22, that Garcia was sending sexually explicit text messages to a 15-year-old boy. According to the affidavit, in text messages, Garcia asked the minor to accompany Garcia to a nude beach in Saint Lucie County. It is alleged that Garcia instructed the minor via text message to put on a condom (which Garcia provided to the minor), masturbate, and send Garcia a photograph of the condom after the minor ejaculated. It is also alleged that Garcia sent text messages to the minor’s phone instructing him to send Garcia a video of the boy masturbating and asking the boy whether he would consider performing oral sex on Garcia. On November 23, Garcia texted the minor’s phone, asking the minor to meet Garcia at a local park for oral sex, according to the allegations. When Garcia arrived at the park, law enforcement officers apprehended him.
Garcia’s detention hearing is set for December 10, and his arraignment is set for December 17. Both proceedings will take place in federal magistrate court in West Palm Beach, Florida. If convicted, Garcia faces between 15 years and 30 years in federal prison.
Sewall’s Point Police Department has placed Garcia on administrative leave without pay, pending investigation.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HSI), Miami Field Office made the announcement.
HSI Miami (Ft. Pierce Office) and Martin County Sheriff’s Office investigated the case. Assistant U.S. Attorney Stacey Bergstrom is prosecuting the case.
Criminal complaints contain mere allegations and defendants are innocent unless and until found guilty in a court of law.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorney’s Offices and the Criminal Divisions Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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 no. 21-mj-00078-SMM.
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Scranton Doctor Pleads Guilty to Unlawfully Prescribing Controlled Substances and Health Care FraudRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Scranton physician, Kurt Moran, age 69, pleaded guilty before U.S. District Court Judge Robert D. Mariani to charges related to the unlawful distribution of controlled substances and engaging in a health care fraud scheme.
According to United States Attorney John C. Gurganus, Moran pleaded guilty to the unlawful distribution of a controlled substance (Subsys), maintaining a drug-involved premises, and health care fraud. For purposes of his guilty plea, Moran further agreed that he knowingly and intentionally distributed oxycodone and fentanyl, Schedule II controlled substances, outside the usual course of professional practice and not for legitimate medical purposes, and that the death of “J.B.” resulted from the use of the substances.
With respect to the health care fraud scheme, between December 2014 and through 2017, Moran conspired with others to receive bribes in exchange for prescribing the drug Subsys (sublingual fentanyl) to his patients. Subsys is a transmucosal immediate release fentanyl (TIRF) drug. It is approved by the Food and Drug Administration (FDA) only for use in cancer patients suffering from breakthrough cancer pain. It is alleged that a company paid Moran approximately $140,000 over a two-year period to prescribe Subsys to his patients for pain not associated with cancer. In order to conceal and disguise that kickbacks and bribes were being paid to Moran to prescribe Subsys, the company falsely designated the payments to Moran as “honoraria” for purportedly providing educational presentations regarding Subsys. Moran prescribed millions of micrograms of the sublingual fentanyl spray to patients with no cancer diagnosis and not suffering from breakthrough cancer pain.
“Today at his guilty plea, Kurt Moran admitted that he ran his Scranton medical practice for the purpose of distributing high dosages of opioids outside the usual course of professional practice and not for legitimate medical purposes,” said United States Attorney John C. Gurganus. “In illegally prescribing these highly addictive and dangerous drugs, he often did so without conducting a meaningful physical examination to verify the claimed illness or condition, and, at times without even seeing the patients -- all while knowing that such illegal practices could result in overdoses, dependence, addiction, and, in at least one case, death. We are committed to work vigorously to combat the opioid epidemic, and a key component of that effort is to prosecute rogue doctors who betray their professional obligations.”
Moran surrendered his DEA registration on September 18, 2020. His license to practice medicine in the Commonwealth of Pennsylvania was suspended on October 7, 2020.
As part the plea agreement entered in the case, the parties agreed to recommend that the Court impose a sentence of 144 months’ incarceration. Moran further agreed to a forfeiture order in the amount of $134,000.
The charges stem from an investigation initiated in 2016 by the Drug Enforcement Administration (DEA) located in Scranton, the United States Postal Service – Office of Inspector General, and the Pennsylvania Attorney General’s Office. Assistant United States Attorneys Michelle Olshefski and Michael Consiglio are prosecuting the case.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute for the unlawful distribution of controlled substances and maintaining drug-involved premises is 20 years’ imprisonment. The charge related to health care fraud carries a maximum sentence of 10 years’ imprisonment. Each charge also carries a fine and a term of supervised release following any period of incarceration. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Savannah woman pleads guilty to laundering 'pill mill' moneyRead the Press Release
SAVANNAH, GA: A former Garden City, Ga., clinic owner and CEO has admitted to laundering money in connection with a notorious “pill mill” doctor who illegally dispensed massive amounts of controlled substances.
Jamesetta Whipple-Duncan, 58, of Savannah, pled guilty in U.S. District Court to one count of Money Laundering, said David H. Estes, U.S. Attorney for the Southern District of Georgia. Whipple-Duncan was set to go to trial the week following her plea of guilty.
“Those who fuel the opioid addiction crisis, either through illegally dispensing drugs or providing financial support for their criminal activities, will be identified and held accountable,” said U.S. Attorney Estes. “We will continue to collaborate with our law enforcement partners to shut down those whose activities endanger our communities.”
As described in the plea agreement and other court documents, Whipple, as owner of the now-closed Georgia Laboratory Diagnostics LLC, in Garden City, Ga., was an employer of Dr. Frank Bynes Jr., 69, of Savannah. Bynes was sentenced in February 2020 to 240 months in prison and ordered to pay $615,145 in restitution to Medicare, Medicaid and Tricare after being found guilty by a federal jury on 13 counts of Unlawful Dispensation of Controlled Substances and three counts of Health Care Fraud.
For Whipple-Duncan’s role, she profited as her clinic provided Bynes with a base of operation from which he illegally distributed controlled substances, including highly addictive opioids and drug cocktails favored by addicts.
“The dispensing of addictive prescription pain medication (oftentimes opiate-based) under the guise of a doctor’s care was not about the good of the community or an individual’s specific health needs; it was about greed of a clinic owner and CEO,” said the Special Agent in Charge of the DEA’s Atlanta Field Division Robert J. Murphy. “This owner admitted her wrong-doings and will now have to pay for her unlawful acts. DEA and its law enforcement partners will continue to rid our communities of unlawful clinic owners whose criminal acts fuel the raging opioid epidemic.”
“Whipple-Duncan profited significantly from this clinic. Her greedy actions directly contributed to the opioid addiction crisis in our community and for that she will be punished.” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “This guilty plea sends a strong message that the FBI and our law enforcement partners will actively pursue and prosecute anyone who tries to profit off the illegal distribution of opioids.”
“Jamesetta Whipple-Duncan directly profited from the pain Dr. Frank Bynes caused to the community,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Ms. Whipple-Duncan’s prosecution should serve as an example that those who fraudulently profit at the expense of society’s most vulnerable will not go unpunished.”
“Our military and their families, at times seeking pain relief from an injury, have been substantially impacted from the opioid epidemic in our nation,” stated Special Agent in Charge Cynthia A. Bruce, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “DCIS will continue to work with our investigative counterparts and the Justice Department to prosecute those who seek to profit from the illegal distribution of opiates that drive addiction without regard for the patient.”
The case was investigated by the U.S. Drug Enforcement Administration, the Department of Health and Human Services Office of Inspector General, the FBI, the Defense Criminal Investigative Service, and an investigator with the U.S. Attorney’s Office. Whipple-Duncan is being prosecuted by Assistant U.S. Attorneys Jonathan A. Porter and Patrick J. Schwedler.
Rapid City Man Sentenced to 20 Years in Federal PrisonRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on November 29, 2021, by Judge Jeffrey L. Viken, U.S. District Court.
Justin Johnson, age 40, was sentenced to 20 years in federal prison, followed by five years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Johnson was indicted by a federal grand jury on August 21, 2018, and pleaded guilty on July 21, 2021. The conviction stems from Johnson conspiring with others to distribute nearly 36 ounces of heroin between May and August 2018 at Rapid City. Johnson’s distribution of heroin included injecting and providing heroin to a 15-year-old during the same time period.
This case was investigated by the Drug Enforcement Administration and the Unified Narcotics Enforcement Team (UNET), which is comprised of law enforcement from the Pennington County Sheriff’s Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, and the South Dakota National Guard. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Johnson was immediately remanded to the custody of the U.S. Marshals Service.
Public Comments Welcome on Draft Policy Statement on Licensing Negotiations and Remedies for Standards-Essential Patents Subject to F/RAND CommitmentsRead the Press Release
The Department of Justice announced today that it is requesting public comment on a new draft policy statement concerning standards-essential patents (SEPs) that seeks to promote good-faith licensing negotiations and addresses the scope of remedies available to patent owners that have agreed to license their essential technologies on reasonable and non-discriminatory or fair, reasonable, and non-discriminatory (F/RAND) terms. The Justice Department worked with U.S. Patent and Trademark Office (USPTO) and the National Institute of Standards and Technology (NIST) in responding to President Biden’s recent Executive Order on Promoting Competition in the American Economy, which encouraged the agencies to review the 2019 Policy Statement on Remedies for Standards-Essential Patents Subject to Voluntary F/RAND Commitments to ensure that it adequately promoted competition. Together the agencies, after consulting with the Federal Trade Commission, are now issuing a revised draft statement for public comment.
“The department looks forward to working with our agency partners,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “We are committed to taking a principled, transparent, and balanced approach at the intersection of intellectual property and antitrust law.”
The draft statement is open to public comment for 30 days and provides a framework to facilitate good-faith licensing negotiation between SEP owners and potential licensees. It also discusses what remedies may be available when SEPs subject to voluntary F/RAND commitments are infringed. The draft statement indicates that good-faith negotiation that leads to widespread and efficient licensing between SEP holders and those who seek to implement standardized technologies can help to promote technology innovation, further consumer choice, and enable industry competitiveness. The draft statement will not be finalized until the agencies consider all stakeholder input.
In particular, the agencies are interested in comments addressing the following questions:
- Should the 2019 Policy Statement on Remedies for Standards-Essential Patents Subject to Voluntary F/RAND Commitments be revised?
- Does the draft revised statement appropriately balance the interests of patent holders and implementers in the voluntary consensus standards process, consistent with the prevailing legal framework for assessing infringement remedies?
- Does the draft revised statement address the competition concerns about the potential for extension of market power beyond appropriate patent scope identified in the July 9, 2021 Executive Order on Promoting Competition in the American Economy?
- In your experience, has the possibility of injunctive relief been a significant factor in negotiations over SEPs subject to a voluntary F/RAND commitment? If so, how often have you experienced this?
- Are other challenges typically present in negotiating a SEP license? If so, what information should be provided or exchanged as a practical matter to make negotiation more efficient and transparent?
- Are small business owners and small inventors impacted by perceived licensing inefficiencies involving SEPs? If so, how can licensing be made more efficient and transparent for small businesses and small inventors that either own, or seek to license, SEPs?
- Will the licensing considerations set forth in the draft revised Statement promote a useful framework for good-faith F/RAND licensing negotiations? In what ways could the framework be improved? How can any framework for good-faith negotiations, and this framework in particular, better support the intellectual property rights policies of standards-setting organizations?
- What other impacts, if any, would the draft revised statement have on standards-setting organizations and contributors to the standards development process?
- The draft revised statement discusses fact patterns intended to indicate when a potential licensee is willing or unwilling to take a F/RAND license. Are there other examples of willingness or unwillingness that should be included in the statement?
- Have prior executive branch policy statements on SEPs been used by courts, other authorities, or in licensing negotiations? If so, what effect has the use of those statements had on the licensing process, outcomes, or resolutions?
- Are there resources or information that the U.S. government could provide/develop to help inform businesses about licensing SEPs subject to a voluntary F/RAND commitment?
Interested parties, including attorneys, economists, academics, consumer groups, industry stakeholders or other members of the public may submit public comments to Regulations.gov until Jan. 5, 2022. Information about the draft revised statement can also be found on the Antitrust Division’s website.
Prospect Man Pleads guilty to Enticing Minor to Engage in Sexual ActivityRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that DENNIS ANTHONY SZANTYR, JR., 47, of Prospect, waived his right to be indicted and pleaded guilty today in Hartford federal court to one count of enticement of a minor to engage in sexual activity.
According to court documents and statements made in court, on multiple occasions between November 2018 and October 2019, Szantyr used smart phones, tablets and other computer devices, and an interactive computer service, to entice a minor victim under the age of 16 to engage in sexual acts. At times, including during the commission of the sexual acts between Szantyr and the minor victim, the victim was in the custody, care or supervision of Szantyr. Szantyr also took images and recorded video of his sexual contact with the victim.
Szantyr is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on March 2, 2022, at which time he faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
Szantyr has been detained since his arrest on related state charges on October 31, 2019.
This matter is being investigated by the Federal Bureau of Investigation and Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Konstantin Lantsman.
Acting U.S. Attorney Boyle thanked the Waterbury State’s Attorney’s Office for its cooperation in the investigation and prosecution of this case.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Pittsburgh man sentenced for drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Raimonte Gordon Gaston, of Pittsburgh, Pennsylvania, was sentenced today to 15 months of incarceration for a drug charge, United States Attorney William J. Ihlenfeld, II announced.
Gaston, also known as “Boog,” “Barkley Boo,” “Barkley,” and “Ray,” 28, pleaded guilty in June 2021 to one count of “Conspiracy to Distribute and to Possess with the Intent to Distribute Heroin and Fentanyl.” Gaston admitted to working with another to distribute heroin and fentanyl from September 2018 to January 2019 in Harrison County and elsewhere.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Greater Harrison Drug Task Force, a HIDTA-funded initiative, and the Bridgeport Police Department investigated.
U.S. District Judge Thomas S. Kleeh presided.
Pittsburgh Man Sentenced for Violating Federal Firearms LawRead the Press Release
PITTSBURGH, PA - A former resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 18 months of time served and three years of supervised release (the first 180 days in home detention) on his conviction of violating federal firearms law, United States Attorney Cindy K. Chung announced today.
Judge Donetta W. Ambrose imposed the sentence on Matthew Michanowicz, 53, formerly of Pittsburgh, PA 15211.
According to information presented to the court, on May 31, 2020, Michanowicz knowingly and unlawfully possessed firearms, that is, three destructive devices, which were not registered to him in the National Firearms Registration and Transfer Record. Specifically, Michanowicz admitted that, on or about May 31, 2020, he placed three, unregistered homemade destructive devices in a camouflage backpack at 2 PNC Plaza in downtown Pittsburgh.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
United States Attorney Cindy K. Chung commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, Federal Bureau of Investigation, the Pittsburgh Bureau of Police, and the Allegheny County Sheriff’s Office for the investigation leading to the successful prosecution of Michanowicz.
Pipeline Company Sentenced for Largest-Ever Inland Oil SpillRead the Press Release
The pipeline company responsible for the discharge of 29 million gallons of oil-contaminated “produced water” – a waste product of hydraulic fracturing – was sentenced to pay a $15 million criminal fine and serve a three year period of probation today by U.S. District Court Judge Daniel M. Traynor in Williston, North Dakota.
Summit Midstream Partners LLC pleaded guilty to criminal charges that it violated the Clean Water Act, as amended by the Oil Pollution Act of 1990, by negligently causing the discharge into U.S. waters in 2014, and deliberately failing to immediately report the spill to federal authorities as required. More than 700,000 barrels were discharged thereby contaminating Blacktail Creek and nearby land and groundwater. By law, the federal fines in this case will go to the Oil Spill Liability Trust Fund used to respond and clean up future oil spills.
“Summit is being held criminally accountable for its crimes of negligently discharging more than 29 million gallons over more than 4 months and then knowingly failing to report the discharge,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Summit gave misleading and incomplete statements to the government about the duration and size of the spill. Through the civil and criminal cases, Summit is being held responsible for its misconduct and must implement more rigorous environmental management to prevent and detect future spills as a condition of probation.”
“The defendant in this case failed to take adequate measures to detect a spill of oil-contaminated water from their pipeline and provided incomplete and misleading information to government officials on the duration and volume of the spill,” said Acting Assistant Administrator Larry Starfield of the EPA’s Office of the Enforcement and Compliance Assurance. “Investigations revealed that the spill occurred over 143 days and released more than 29 million gallons of contaminated waters into the environment, including tributaries of the Missouri River. This case sends a clear message that EPA and our law enforcement partners will hold responsible companies that fail to take appropriate steps to detect and prevent spills.”
A detailed statement of facts has been filed in court and is publicly available here. According to the factual admission agreed to by the company, “Summit’s negligence included the design, construction and operation of the Marmon Water Gathering System pipeline, as well as the negligent failure to find and stop the spill after learning of objective signs of a leak.” Summit started pipeline operations without meters at both ends of the pipeline to conduct “line balancing” or otherwise having a reliable leak detection system in place. “Even after the company learned of major drops in pressure and volume – objective signs of a leak – the company negligently continued operations and thus caused millions of additional gallons to be discharged into U.S. waters without learning the cause or pausing operations,” according to the joint factual statement.
The criminal fine is in addition to a $20 million civil penalty imposed on Summit Midstream Partners LLC and a related company, Meadowlark Midstream Company LLC, to resolve civil violations of the Clean Water Act and North Dakota water pollution control laws. On Sept. 28, the civil consent decree was approved by the U.S. District Court for the District of North Dakota.
The criminal investigation was conducted by EPA’s Criminal Investigation Division. EPA’s Office of Enforcement and Compliance Assurance, EPA Region 8, the North Dakota Department of Environmental Quality, the North Dakota Industrial Commission, the U.S. Fish and Wildlife Service, the U.S. Department of Interior and the North Dakota Department of Game and Fish provided assistance to the criminal investigation.
The criminal case was prosecuted by Senior Litigation Counsel Richard A. Udell, Senior Trial Attorney Christopher J. Costantini, Trial Attorneys Stephen J. Foster and Erica H. Pencak of the Environmental Crimes Section of the Department of Justice’s Environment and Natural Resource Division and Assistant U.S. Attorney Gary Delorme.
Pasco County Man Sentenced to More Than 17 Years for Possessing Images Depicting the Sexual Abuse of ChildrenRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Charles Poole (49, Hudson) to 17 years and 6 months in federal prison for possessing images depicting the sexual abuse of children. Poole was also ordered to serve a lifetime term of supervised release and to register as a sex offender.
Poole had been found guilty by a federal jury on July 9, 2021.
According to court documents, after an electronic service provider reported to the National Center of Missing and Exploited Children the upload and receipt of images depicting the sexual abuse of children by an account linked to Poole, the U.S. Department of Homeland Security Investigations began an investigation. Agents executed a search warrant at Poole’s residence and seized electronic devices that contained images of child sexual abuse material, including young children and toddlers. A forensic examination of Poole’s cellphones revealed evidence of his desire to engage in incest. The investigation revealed that Poole groomed a 12-year-old child over an extended time and eventually sexually abused this child in tandem with this child’s mother. Poole also possessed photos that depicted his sexual assault of this child.
“A serial child predator will now be behind bars, making our communities safer for our most vulnerable,” said HSI Tampa acting Assistant Special Agent in Charge Jennifer Silliman. “This sentencing is the result of the strong law enforcement partnership between HSI and the Pasco Sheriff’s Office.”
This case was investigated by Homeland Security Investigations and the Pasco Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Ilyssa Spergel and Frank Murray.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Omaha Man Sentenced to 150 Months for Drug and Firearm OffensesRead the Press Release
Acting United States Attorney Jan Sharp announced that Damien Primus, age 27, of Omaha, Nebraska, was sentenced in federal court in Omaha on December 3, 2021, for possession with intent to distribute fentanyl and for possessing a short-barreled shotgun in furtherance of his drug trafficking. Chief United States District Court Judge Robert F. Rossiter, Jr. sentenced Primus to 150 months of imprisonment. There is no parole in the federal system. After completing his term of imprisonment, Primus will begin a 5-year term of supervised release.
On November 24, 2020, officers executed a search warrant at Primus’s residence in Omaha. Primus was at the residence. Officers located 135 fentanyl pills, 3.2 grams of methamphetamine, $1,080, a short-barreled shotgun, and a stolen rifle. Primus intended to distribute the fentanyl. Just eight days prior to the search warrant, Primus was convicted in a different matter in Cass County, Nebraska District Court to attempted possession of a firearm by a prohibited person.
On April 12, 2021, Primus was sentenced in state court to 2-5 years of imprisonment for his attempted firearm conviction. The 150-month federal sentence will run consecutively to his state sentence.
This case was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
The case was investigated by the Omaha Police Department and the Federal Bureau of Investigation.
Nine Plaquemines Parish Residents Indicted for Conspiring to Distribute Cocaine, Crack, and MethamphetamineRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that ERIC METZ, age 38, JOSHUA MACKEY, age 35, FREDERICK TURNER, age 49, DARON WILLIAMS, age 46, LONNIE WILLIAMS, age 38, CALLEIGH AMOS, age 29, THEODORE HOLMES, JR., age 33, LESLIE PARKER, age 40, and KORAL WELLS, age 64, all from Plaquemines Parish, were charged in a sealed indictment on November 19, 2021 for conspiring to distribute a quantity of cocaine, crack, and methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1), (b)(1)(C), and 846. The indictment was unsealed on December 1, 2021.
Additionally, DARON WILLIAMS is charged in Count Two of the Indictment with possessing with intent to distribute a quantity of methamphetamine, WELLS is charged in Counts Three and Four with possessing with intent to distribute a quantity of crack and a quantity of methamphetamine, respectively, and LONNNIE WILLIAMS in charged in Count Five with possessing with intent to distribute a quantity of crack, all in violation of Title 21, United States Code, Section 841 (b)(1)(C). If convicted, each of the nine defendants face up to 20 years imprisonment, a fine up to $1,000,000, a period of at least 3 years supervised release, and a mandatory special assessment fee of $100 for each charged drug count.
METZ, HOLMES, PARKER, AMOS, TURNER, and MACKEY are also charged in Counts Six through Nine with the illegal use of a communications facility in facilitating the distribution of controlled substances, in violation of Title 21, United States Code, Sections 841(a)(1), 843(b), and Title 18, United States Code, Section 2. If convicted, the charged defendants face up to 4 years imprisonment, a fine up to $250,000, a period of one year of supervised release, and a mandatory special assessment fee of $100 for each of these counts.
METZ, a convicted felon, is also charged in Count Ten with possessing a firearm as a felon, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(e). Given his criminal history, METZ faces up to fifteen years in prison, up to $250,000 in fines, up to 5 years of supervised release, and a $100 mandatory special assessment fee.
U.S. Attorney Evans reiterated that the Indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
U.S. Attorney Evans praised the work of the Plaquemines Parish Sheriff’s Office, the Drug Enforcement Administration, New Orleans Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, in investigating this matter. Assistant United States Attorneys David Howard Sinkman and J. Benjamin Myers are in charge of the prosecution.
Nevada Man Sentenced to 46 Months in Prison for Scams Involving Election Fundraising and COVID Relief LoansRead the Press Release
WASHINGTON – James Kyle Bell, 44, of Las Vegas, Nevada, was sentenced today to 46 months in prison for carrying out separate wide-ranging fraud schemes last year: one involving fundraising for fake political action committees (PACs) that he created, and the other involving COVID-19 relief funds he sought and received through fraudulent applications. He also must forfeit or pay back nearly $1.4 million in cash and assets.
The announcement was made by U.S. Attorney Matthew M. Graves, Wayne A. Jacobs, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division, and Amaleka McCall-Brathwaite, Special Agent in Charge of the U.S. Small Business Administration’s Office of the Inspector General, Eastern Region.
Bell registered two sham PACs with the Federal Election Commission. One, the “Keep America Great Committee,” purportedly supported Donald Trump. The other, the “Best Days Lie Ahead Committee,” purportedly supported Joseph Biden, Jr. He sought donations nationwide for both PACs using online platforms and e-mail solicitations, generating at least $346,000.
Additionally, Bell created multiple shell companies that he used to defraud the U.S. Small Business Administration’s Paycheck Protection Program (PPP), which was created by Congress to provide financial assistance to Americans who suffered economic losses due to the COVID-19 pandemic. He applied for and won approval for more than $1.1 million in four separate loans. He also applied for a fifth loan for $521,625 but withdrew the application.
“This prosecution is the first in the District of Columbia involving the creation of scam political action committees,” said U.S. Attorney Graves. “It also is another in a series of prosecutions targeting frauds committed against the COVID relief efforts. The message is clear: along with our law enforcement partners, we will protect the public against fraudsters who seek to line their pockets by exploiting the political process and government programs.”
“Today’s sentencing should serve as yet another reminder to those who deceive and steal from hardworking Americans—you will ultimately be held to account for your actions,” said Special Agent in Charge Jacobs of the FBI Washington Field Office Criminal Division. “The FBI and its partners will continue to aggressively investigate those who perpetrate fraud schemes at the expense of the American people. Bell defrauded over 2,000 victims, who were all deceived into thinking they were making a donation to the presidential candidate of their choice, but in reality, that money was going to Bell’s personal accounts. Bell also defrauded the government through the Paycheck Protection Program, pocketing money meant for Americans in need.”
“Lying to gain access to SBA’s pandemic response programs is not without consequence,” said Special Agent in Charge Amaleka McCall-Brathwaite of the SBA’s Office of Inspector General, Eastern Region. “SBA’s Paycheck Protection Program is intended to provide assistance to the nation’s small businesses struggling with the pandemic challenges. I want to thank the U.S. Attorney’s Office for its leadership and dedication to pursuing justice.”
Bell pleaded guilty in May 2021 to one count of wire fraud in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable John D. Bates. Following completion of his prison term, he will be placed on two years of supervised release.
According to the government’s evidence, between January 2020 and October 2020, Bell’s PACs sent solicitations nationwide to more than 40,000 recipients. The solicitations promised that individual donations would be “5x matched” by Bell’s PACs. The solicitations also replicated the look and feel of marketing materials used by the presidential campaigns, including official logos and slogans. Bell also set up websites to solicit donations with names like “keepamericagreatcommittee.com,” “trump2020maga.com,” and “bestdayslieaheadcommittee.com.” The sham PACs received more than $346,000 in contributions from individuals and other groups during the months before the 2020 election. However, none of the individual donations were ever “5X matched” by Bell or anyone else. Additionally, Bell made a series of false filings with the FEC in which Bell claimed that his PACs had made expenditures in support of both presidential campaigns.
During the same period, Bell applied for more than $1.6 million in PPP loans. For example, one of Bell’s companies, named “Echo Three LLC,” a company registered in Nevada with no employees and no payroll, received a PPP loan of $485,000 based on Bell’s false statements to the government that the company had 83 employees working at Bell’s private residence. In another instance, Bell obtained a PPP loan in the amount of $492,000 for a company he owned and controlled named “Myson Rules LLC” which had no employees, no payroll, no business operations, and no active business license in the State of Nevada. Bell submitted fabricated tax documents and other company records in support of all five PPP loan applications. He withdrew one application, for $521,625, before the loan could be funded.
Bell diverted almost all of the funds from PAC donors and the taxpayer-supported PPP loans to bank accounts where they could be used for Bell’s personal benefit, commingling the proceeds of the fraud and further violating federal campaign finance laws which require exacting record keeping for PACs. According to court papers, the government has located and seized $519,000 of Bell’s criminal proceeds. Bell’s plea agreement requires that Bell make full restitution to his victims and agree to the entry of a money judgement of $862,000 against him.
This matter was investigated by the FBI’s Washington Field Office and the U.S. Small Business Administration, Office of the Inspector General. Assistant United States Attorneys John W. Borchert and Elizabeth Aloi prosecuted this case.
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On May 17, 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 fraud related to COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Naples Doctor Who Operated A Pill Mill Sentenced to Three Years in Federal Prison and Ordered to Forfeit More Than $400,000 and Nine Luxury VehiclesRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell today sentenced Gerald Michael Abraham (76, Naples) to three years in federal prison for dispensing controlled substances (oxycodone and amphetamine) for no legitimate medical purpose. The court also ordered Abraham to forfeit the following items to the United States, which were proceeds of his illegal activities: a 2020 Acura NSX, a 2020 Porsche GT4, a 2021 Toyota Supra, a 2020 Chevrolet Corvette, a 2020 Aston Martin, a 2020 Nissan 370Z, a 2020 Chevrolet Camaro, two 2020 Ford Mustangs, $190,496.56 paid towards a 2021 Aston Martin, and $249,598.52 in cash.
According to court documents, Abraham was a licensed psychiatrist who practiced in Naples, Florida. His clinic operated on a cash only basis, with patients paying $400 per visit.
In October 2019, the DEA began an investigation after receiving a tip that Abraham was illegally prescribing strong opioids to patients who had no need for the medication. Over the course of the next year, the DEA conducted 18 undercover patient visits to Abraham’s office, each time receiving prescriptions for oxycodone. Abraham ignored signs of drug abuse the undercover patients pretended to have and prescribed them oxycodone without ever examining them. Additionally, Abraham repeatedly increased the strength of the prescriptions simply because the patient asked him for more. In one instance, he prescribed an undercover patient oxycodone after telling him the medical paperwork “shows you are completely normal.”
The investigation also revealed that Abraham frequently prescribed Adderall to patients for no legitimate reason. Adderall is the brand name of a drug used to treat attention deficit hyperactivity disorder and contains amphetamine, a frequently abused controlled substance. On multiple occasions, law enforcement observed Abraham prescribe Adderall simply upon a patient’s request, without asking any questions or engaging in any examination justifying the prescription.
This case was investigated by the Drug Enforcement Administration and the United States Secret Service, with assistance from the Naples Police Department and the Charlotte County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Michael V. Leeman. Assistant United States Attorneys Anita Cream and James Muench handled the forfeiture.
Mountain View Woman Pleads Guilty to Social Security FraudRead the Press Release
SPRINGFIELD, Mo. – A Mountain View, Missouri, woman who used a stolen identity to enroll in college pleaded guilty in federal court today to Social Security fraud.
Laura A. Oglesby, 48, pleaded guilty before U.S. Chief Magistrate Judge David P. Rush to one count of intentionally furnishing false information to the Social Security Administration.
By pleading guilty today, Oglesby admitted that she fraudulently applied for a Social Security card on Jan. 14, 2016, using the personal identity information of another person, identified in court documents as “L.A.H.” Based upon her false representations, the Social Security Administration issued a Social Security card to Oglesby in another person’s name.
On the same day, Oglesby used the fraudulently obtained Social Security card to obtain a Missouri driver’s license under L.A.H.’s identity.
In 2017, Oglesby used the fraudulently obtained Social Security card of L.A.H. to enroll at a university, identified in court documents as “University A.” Using the stolen identity of L.A.H., Oglesby applied for and received financial aid to attend University A. Oglesby obtained $9,400 in federal student loans, $5,920 in Pell Grants, $337 for books purchased at University A’s bookstore, and $1,863 in finance charges.
Under the terms of today’s plea agreement, Oglesby must pay $17,521 in restitution to the university, as well as restitution to the victim of her aggravated identity theft.
Under federal statutes, Oglesby is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant 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 United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Shannon Kempf. It was investigated by Social Security Administration – Office of Inspector General and the Mountain View, Mo., Police Department.
Morgan County man sentenced for child pornography chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Gunner Scott Young, of Berkeley Springs, West Virginia, was sentenced today to five years of probation for a child pornography charge, United States Attorney William J. Ihlenfeld, II announced.
Young, age 29, pled guilty to one count of “Possession of Child Pornography.” Young admitted to having pornographic images involving minors under the age of 12 in June 2019 in Morgan County.
Assistant U.S. Attorney Kimberley D. Crockett prosecuted the case on behalf of the government. The West Virginia State Police investigated.
Chief U.S. District Judge Gina M. Groh presided.
Minneapolis Felon Pleads Guilty to Illegal Possession of Unregistered FirearmRead the Press Release
MINNEAPOLIS – A Minneapolis man pleaded guilty to illegal possession of an unregistered firearm announced Acting U.S. Attorney Charles J. Kovats.
According to court documents, in July 2021, law enforcement officers obtained a search warrant for a Minneapolis residence associated with Nicholas Robert Briski-Smith, 25, who had “probable cause pickup” warrants for two recent alleged felony assaults, one of which involved a shooting, and multiple outstanding warrants. While conducting surveillance in preparation for the execution of the search warrant, officers observed Briski-Smith exit his residence and drive away in a vehicle. Officers followed Briski-Smith to a nearby corner store where they took him into custody. Following the arrest, officers recovered a loaded Stevens Arms 12-gauge short-barreled shotgun that was concealed and affixed to Briski-Smith's chest. The short-barreled shotgun was modified with a cut stock and barrel, both covered with electrical tape. During the search of Briski-Smith’s residence, officers located a Marlin, semiautomatic, .22-caliber rifle, an empty magazine for a semiautomatic firearm, a .45-caliber muzzle loader, and 17 rounds of various ammunition.
Briski-Smith pleaded guilty today before U.S. District Judge Nancy E. Brasel to one count of unlawfully possessing an unregistered firearm. A sentencing hearing will be scheduled for a later date.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Minneapolis Police Department.
Assistant U.S. Attorney Benjamin Bejar is prosecuting the case.
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Martinsburg man sentenced for his role in a firearms trafficking ringRead the Press Release
MARTINSBURG, WEST VIRGINIA – Marquis Hicks, of Martinsburg, West Virginia, was sentenced today to 54 months for his role in a conspiracy involving the illegal purchase and transportation of firearms, United States Attorney William J. Ihlenfeld, II announced.
Hicks, age 30, pleaded guilty in July 2021 to one count of “Conspiracy.” Hicks admitted to working with another individual to purchase, possess, and transfer firearms to an out of state resident, in March 2020.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
Chief U.S. District Judge Gina M. Groh presided.
Martinsburg man sentenced for drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Joseph George Ray, of Martinsburg, West Virginia, was sentenced today to 77 months of incarceration for a drug charge, United States Attorney William J. Ihlenfeld, II announced.
Ray, 56, also known as “YB,” pleaded guilty in July 2021 to one count of “Possession with Intent to Distribute a Heroin and Fentanyl Mixture.” Ray admitted to distributing heroin and fentanyl in August 2020 in Berkeley County.
These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
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.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, and the Martinsburg Police Department investigated.
Chief U.S. District Judge Gina M. Groh presided.
Lubbock Man Charged with Threatening to Kill Ex-WifeRead the Press Release
A Lubbock man who threatened to kill his ex-wife has been federally charged, announced U.S. Attorney Chad E. Meacham.
Gene Garcia Solis, 48, was charged last Friday via criminal complaint with interstate threatening communications. He had his initial appearance before U.S. Magistrate Judge D. Gordon Bryant, Jr. on Monday, Dec. 6, at which point the case against him was unsealed.
According to court documents, a Lubbock Police Officer contacted Mr. Solis on Nov. 24, 2021 to check on his welfare. Mr. Solis was distraught and allegedly told the officer he planned to kill his ex-wife and anyone who tried to stop him and then commit suicide.
Fearing for his ex-wife’s safety, officers set up surveillance at her residence.
At around 10:30 p.m., Mr. Solis allegedly drove by the residence. When officers attempted to stop his car, he fled. Nearly three hours later, law enforcement spotted the defendant in Hale Center, Texas, and once again attempted to stop his car. He attempted to flee, but hit a spike strip and crashed in the parking lot of a Texas National Guard Armory.
Mr. Solis exited the vehicle, fired several rounds from an AR 15-style rifle, and ran inside the Armory.
“Mr. Solis's actions endangered the life of his ex-wife, the law enforcement officers who responded to multiple scenes and the public at-large,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “Together with our law enforcement partners, the FBI’s priority is to protect and keep the communities we serve safe from harm.”
A criminal complaint is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Solis is presumed innocent until proven guilty in a court of law.
The Federal Bureau of Investigation’s Dallas Field Office, Lubbock Resident Agency and the Lubbock Police Department conducted the investigation with the assistance of the Hale County Sheriff’s Department. Assistant U.S. Attorneys Jeff Haag and Callie Woolam are prosecuting the case.
Loves Park Woman Pleads Guilty to Fraudulently Obtaining More Than $1 Million from EmployerRead the Press Release
ROCKFORD — A Loves Park woman has pleaded guilty to a federal charge accusing her of fraudulently obtaining more than $1 million from her employer.
TAMMY E. MOORE, 54, pleaded guilty Friday to wire fraud before U.S. District Judge Iain D. Johnston. Sentencing is set for April 19, 2022, at 1:30 p.m.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The Loves Park Police Department assisted in the investigation. The government is represented by Assistant U.S. Attorney Scott R. Paccagnini.
Moore was an office manager for a company in Loves Park that made custom components for a variety of industries. Moore admitted in a plea agreement that from 2012 to 2020, she fraudulently obtained more than $1 million from the company. Moore issued company checks to herself and her husband’s business from the company’s account, forged the signature of the company’s owner on checks, deposited the checks into her personal bank account and her husband’s business account for her personal benefit, and then initiated online transfers to move the money. Moore concealed these transactions by making it appear as though the checks were for legitimate business purposes and by deleting the company’s records of the forged checks.
Moore is required to pay restitution to the company in the amount of $1,115,629. The wire fraud charge carries a maximum sentence of 20 years in federal prison.
Los Angeles Fashion District Company Owner Sentenced to One Year in Prison for Committing Customs Violations and Tax OffensesRead the Press Release
LOS ANGELES – The owner of a garment wholesaling company in the Fashion District of downtown Los Angeles was sentenced today to 12 months and one day in federal prison for scheming to undervalue imported garments and avoid paying millions of dollars in duties to the United States, failing to report millions of dollars in income on tax returns, and failing to report large cash transactions to the federal government.
Sang Bum “Ed” Noh, 67, of Bel-Air, who owns Ambiance Apparel, was sentenced by United States District Judge Virginia A. Phillips.
Ambiance Apparel – the operating name for two corporations, Ambiance U.S.A. Inc. and Apparel Line U.S.A. Inc. – pleaded guilty in October 2020 to eight criminal counts, including conspiracy, money laundering and customs offenses, was sentenced to a term of five years’ probation and has been ordered to implement an effective anti-money laundering compliance and ethics program with an outside compliance monitor. There is a restitution order in this case for $35,227,855, a forfeiture money judgment of $81,564,856, and the additional forfeiture of $1,104,997 previously seized by law enforcement.
Court documents outline separate schemes involving Ambiance and Noh, which came to an end in September 2014 when law enforcement authorities executed dozens of search warrants as part of an investigation into money laundering and other crimes at Fashion District businesses.
Noh “made defrauding the United States a significant revenue stream for Ambiance, appropriating approximately $35,227,855.45 from U.S. Customs and Border Protection and the Internal Revenue Service in less than four years,” prosecutors argued in a sentencing memorandum. “While [Noh] was cheating the United States and facilitating money laundering [by failing to file Forms 8300], he enjoyed a house in Bel Air, bought luxury cars, and squirreled away bundles of cash worth $35 million in shoeboxes and garbage bags.”
In the customs fraud scheme, Ambiance imported clothing from Asian countries and submitted fraudulent invoices to U.S. Customs and Border Protection (CBP) that undervalued the shipments and allowed Ambiance to avoid paying the full amount of tariffs owed on the imports.
At Noh’s direction, the Asian manufacturers prepared two invoices for the clothing ordered by Ambiance – one that usually reflected 60 to 70 percent of the actual price and was paid by letter of credit, and one that reflected the balance of the actual price and was paid by wire transfer.
The first invoice, which stated only 60 to 70 percent of the shipment’s value, was fraudulently submitted to CBP and was used to calculate the tariffs due on the imports. As a result of this scheme, over the course of just over 4½ years, Ambiance undervalued imports by about $82.6 million and failed to pay more than $17.1 million in tariffs.
Ambiance also failed to file reports with the Secretary of the Treasury that documented cash transactions of more than $10,000. Ambiance employees received approximately 364 payments of more than $10,000 over a two-year period – which totaled more than $11.1 million – and the company failed to file a single Form 8300 to alert federal authorities to the cash transactions.
In conjunction with transactions made at Ambiance’s storefront, Ambiance used two sets of books to record sales, one of which documented only cash transactions and was not reported to Ambiance’s outside accountants. Noh also directed some of the second set of transactions to be underreported to the accountants. The lower sales figures were reported on 2011 and 2012 tax returns filed by Noh. Noh failed to report income for those two years and owed the IRS a total more than $16.8 million, which includes unpaid taxes, penalties and interest.
The $16,806,412 Noh owed to the IRS and the $18,421,443 he owed to CBP have been provided to the court from seized funds.
The case against Ambiance and Noh was investigated by Homeland Security Investigations, IRS Criminal Investigation, U.S. Customs and Border Protection, LA IMPACT, the Long Beach Police Department, the Los Angeles Police Department, the Gardena Police Department, and the West Covina Police Department.
Assistant United States Attorney Scott D. Dubois of the International Narcotics, Money Laundering and Racketeering Section prosecuted this case. Assistant United States Attorney Jonathan S. Galatzan, Chief of the Asset Forfeiture Section, handled the asset forfeiture portion of this case.
Long Island Man Charged with Mailing Threatening Letters to LGBTQ+ Affiliated Individuals and OrganizationsRead the Press Release
A criminal complaint was unsealed today in federal court in Central Islip charging Robert Fehring with mailing letters threatening to assault, shoot, and bomb LGBTQ+ affiliated individuals, organizations, and businesses. Fehring was arrested this morning and will make his initial appearance this afternoon before United States Magistrate Judge Steven I. Locke.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrest.
“As alleged, the defendant's hate-filled invective and threats of violence directed at members of the LGBTQ+ community have no place in our society and will be prosecuted to the fullest extent of the law," stated United States Attorney Peace. “This Office is firmly committed to protecting the civil rights of all members of every community in this district, including the LGBTQ+ community and other minority communities.” Mr. Peace thanked the Suffolk County Police Department for their invaluable assistance with the investigation.
“Fehring’s alleged threats to members of the LGBTQ+ community were not only appalling, but dangerous, despite the fact he hadn’t yet acted on his purported intentions,” stated FBI Assistant Director-in-Charge Driscoll. “As the primary federal agency responsible for investigating civil rights violations, the FBI takes all threats of this nature seriously. If you or someone you know has received a similar threat, report it to us by calling 1-800-CALLFBI. In an emergency, always call your local police department.”
As set forth in the complaint, since at least 2013, Fehring has been sending individuals associated with the LGBTQ+ community letters in which he threatened violence, including threatening the use of firearms and explosives. One letter threatened that there would “be radio-cont[r]olled devices placed at numerous strategic places” at the 2021 New York City Pride March with “firepower” that would “make the 2016 Orlando Pulse Nightclub shooting look like a cakewalk,” referencing the 2016 attack in which 49 persons were killed and dozens wounded at Pulse, a gay nightclub in Orlando, Florida.
Fehring is also alleged to have a sent a letter threatening the organizer of a June 2021 Pride event in East Meadow, New York, which stated:
“[W]e were right there you…FREAK!!! They couldn’t get a shot off at you, slithering around the back stage area like a snake. Too many cops. Very disappointed. But your time has come. . .. They are out to KILL you….and your boyfriend. You are being watched. No matter how long it takes, you will be taken out…. high-powered bullet…. bomb….knife…. whatever it takes.”
On November 18, 2021, members of the FBI’s Civil Rights Squad and the New York Joint Terrorism Task Force executed a search warrant at Fehring’s home in Bayport, New York, and recovered photographs from a June 2021 Pride event in East Meadow, New York, two loaded shotguns, hundreds of rounds of ammunition, two stun guns, and a stamped envelope addressed to an LGBTQ+ affiliated attorney containing the remains of a dead bird.
The charge in the complaint is an allegation and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s National Security and Cybercrime Section, Long Island Criminal Division and Civil Rights Section. Assistant United States Attorneys Francisco J. Navarro, Rachel A. Bennek, and Andrew P. Wenzel are in charge of the prosecution.
The Defendant:
ROBERT FEHRING
Age: 74
Bayport, New YorkE.D.N.Y. Docket No. 21-MJ-1363
Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Jan Sharp announced that Michael Louis Muhle, 52, of Omaha, Nebraska, was sentenced on December 3, 2021 by United States District John M. Gerrard to 12 years and seven months in federal prison for possession with intent to distribute 50 grams or more of methamphetamine mixture on October 28, 2020, after having been convicted for a serious drug felony. Muhle will serve this sentence after he completes a state sentence of 8-10 years for burglary from Adams County. Following his prison term, Muhle will serve eight years on supervised release. There is no parole in the federal system.
On October 28, 2020, Muhle was stopped for driving on a suspended license. Officers searched his person and his vehicle, finding a total of more than 335 grams of methamphetamine mixture along with two digital scales and multiple self-seal plastic baggies. Muhle had a prior conviction from Lancaster County District Court in 2008 for delivery/possession with intent to deliver an exceptionally hazardous drug for which he received a sentence of four to six years in prison.
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force.
Leader of International Firearm Trafficking Conspiracy Sentenced to Federal PrisonRead the Press Release
PORTLAND, Ore.—A Mexican national residing in Portland was sentenced to federal prison today for his leadership role in a conspiracy to illegally obtain hundreds of high-powered, semi-automatic rifles and high-grade firearms in and around Portland and smuggle them into Mexico for use by the Jalisco New Generation Cartel (CJNG).
David Acosta-Rosales, 51, was sentenced to 75 months in federal prison and three years’ supervised release.
“This case represents two important public safety issues. First, no state, regardless of its location and proximity to the U.S.-Mexico border, is beyond the reach of violent drug cartels. International drug trafficking may feel to most Americans like a distant, geopolitical issue with little connection to our own communities, but this could not be further from the truth. Second, every day across the U.S., drug traffickers and other criminals manipulate the legal process for obtaining firearms from licensed dealers in the U.S., of which there are hundreds of thousands. Our office will continue working closely with our law enforcement partners to prosecute anyone who attempts to illegally purchase or traffic firearms,” said Scott Erik Asphaug, Acting U.S. Attorney for the District of Oregon.
“ATF will tirelessly investigate anyone who traffics in firearms,” said ATF Seattle Special Agent in Charge Jonathan T. McPherson. “Whether they are organizing an international trafficking cell, as Acosta-Rosales was doing, or they are straw purchasing firearms for trafficking purposes, we will work to ensure that they are caught and, through the U.S. Attorney’s Office, prosecuted to the fullest extent of the law.”
According to court documents, since at least September 2019, Acosta-Rosales served as the leader of a hierarchical gun trafficking cell operating in the Portland area. In this role, Acosta-Rosales managed several co-conspirators who served as high-volume straw purchasers and recruiters of new straw purchasers. These associates would also oversee and liaise with lower-volume straw purchasers, who would, in turn, pass the guns they acquired back up to Acosta-Rosales’ direct reports.
Acosta-Rosales received orders and requests for semi-automatic rifles, high-grade firearms, and explosive devices from his “boss” in Mexico and other co-conspirators affiliated with CJNG. These co-conspirators were particularly interested and focused on obtaining high-powered, especially deadly firearms such as AR-15 and AK-47 platform rifles, semi-automatic .50 caliber rifles, and premium, military-style combat assault rifles.
Acosta-Rosales received hundreds of thousands of dollars to operate his scheme and recruited numerous straw purchasers to make the illegal gun purchases. One of Acosta-Rosales’ first recruits was his own young son who later withdrew himself from his father’s criminal enterprise. Before the illegally obtained firearms were transferred out of Oregon via courier, Acosta-Rosales himself participated in obliterating serial numbers on the guns and also recruited a co-conspirator to help obliterate serial numbers. Acosta-Rosales continued operating the conspiracy even after ATF agents arrested one of his co-conspirators and seized many of the group’s guns. In total, Acosta-Rosales facilitated the illegal purchase and transfer of approximately 150 guns to Mexico. He also acquired a grenade launcher and a .50 caliber tripod-mounted semi-automatic firearm that he intended to transfer to Mexico, but was arrested by federal agents before he could do so.
On October 6, 2020, a federal grand jury in Portland returned a 52-count indictment charging Acosta-Rosales and 10 associates with conspiracy, making false statements in connection with the acquisition of firearms, possessing and receiving firearms with obliterated serial numbers, and smuggling goods from the U.S.
Seven of Acosta-Rosales’ co-conspirators have pleaded guilty. Five have been sentenced and two are pending sentencing. The remaining three co-conspirators are pending trial.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by ATF and is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Las Vegas Man Sentenced for Distributing Child Pornography Using Instant Messaging AppRead the Press Release
LAS VEGAS – A Las Vegas man was sentenced today to 11 years in prison for distributing more than 600 child pornography images and videos using Kik Messenger, an instant messaging application.
According to court documents, between about September 27, 2019 to November 1, 2019, Cyrus Orlando Ortega (28) distributed child pornography images and videos to other Kik Messenger users, in exchange for child pornography from those users. The images and videos depicted underage victims — some as young as infants — being sexually exploited.
Ortega pleaded guilty in June 2021 to one count of distribution of child pornography. In addition to the prison term, U.S. District Judge Jennifer A. Dorsey sentenced Ortega to a lifetime term of supervised release.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI made the announcement.
This case was investigated by the FBI and Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Supriya Prasad prosecuted the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, please visit www.justice.gov/psc.
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Las Cruces man pleads guilty to cyberstalking and sending threatening messagesRead the Press Release
ALBUQUERQUE, N.M. – John Benjamin Thornton, 40, of Las Cruces, New Mexico, pleaded guilty on Dec. 3 to a nine-count superseding indictment charging him with cyberstalking and making threats in interstate commerce. He will remain in custody pending sentencing, which has not been scheduled.
A federal grand jury returned the second superseding indictment on Nov. 10. According to the indictment and other court records, Thornton had been the subject of complaints since November 2020 by several people who had received disturbing or threatening messages from him. On May 18, the FBI received information about threats Thornton sent to four people, including his former wife. The messages were sent from Las Cruces within the District of New Mexico.
Thornton faces up to five years in prison for each count.
The FBI investigated this case. Assistant United States Attorneys Marisa A. Ong and Joni Stahl are prosecuting the case
Kings County Man Sentenced to 10 years in Prison for Methamphetamine SalesRead the Press Release
FRESNO, Calif. — Doug Gines, 50, of Hanford, was sentenced today by U.S. District Judge Dale A. Drozd to 10 years in prison for distributing methamphetamine, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, in June 2019, Gines was arrested as part of a multi-agency gang sweep in the Central Valley that focused on the Nuestra Familia prison gang and Norteno street gang members in Kings County. Wiretaps on several drug dealers in Kings County showed Gines to be a drug dealer. Gines was ultimately charged with distributing methamphetamine on two occasions, including the charge he was sentenced on today, distributing 216 grams of actual methamphetamine on May 26, 2019.
This case is the result of an investigation by the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Kings County Gang Task Force; the Special Operations Unit of the California Highway Patrol; the California Department of Corrections and Rehabilitation; and the Kings County District Attorney’s Office. Assistant U.S. Attorneys Justin J. Gilio, Katherine E. Schuh, and Kimberly A. Sanchez are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
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.
Justice Department Resolves Housing Discrimination Lawsuit Against the Town of Wolcott, ConnecticutRead the Press Release
The Justice Department announced today it has reached an agreement with the Town of Wolcott, Connecticut, to settle a lawsuit alleging that the Town violated the Fair Housing Act when it refused to allow the operation of a group home for adults with disabilities in a residential neighborhood.
The settlement, which still must be approved by the U.S. District Court for the District of Connecticut, resolves a lawsuit that the department filed in December 2020. Today’s settlement also resolves a related suit brought by the housing provider and property owner of the proposed group home, SELF Inc. and L&R Realty Inc. The department’s lawsuit arose from a complaint that SELF and L&R Realty filed with the Department of Housing and Urban Development (HUD), which referred the matter to the Justice Department.
“Local governments do not have the right to use zoning laws and restrictions as a vehicle to discriminate against people with disabilities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Individuals with disabilities have the right to equal housing opportunities, and the Department of Justice is committed to vigorous enforcement of federal law to stop municipalities from violating this right.”
“Wolcott’s town officials attempted to prohibit the operation of a home that would establish a place where persons with disabilities can live productive lives,” said Acting U.S. Attorney Leonard C Boyle of the District of Connecticut. “This type of discrimination is unacceptable. The settlement agreement and future action required by the Town should serve as fair warning to other municipalities that our office is committed to pursuing violations of the Fair Housing Act in Connecticut.”
“Towns don’t have the right to enact zoning laws that make housing for persons with disabilities unavailable,” said Principal Deputy Assistant Secretary Demetria McCain of HUD’s Office of Fair Housing and Equal Opportunity. “HUD commends the Justice Department for holding municipalities accountable for violating our nation’s housing laws and we look forward to working together to do even more to protect the rights of persons with disabilities.”
The department’s lawsuit alleged that the Town of Wolcott violated the Fair Housing Act when it denied a special use permit to L&R Realty and SELF, which sought to open a residence for 13 adults with mental health disabilities. At the time, the Town’s zoning regulations permitted the operation of community residences of up to 15 adults with disabilities so long as certain conditions were satisfied, and the United States alleged that the Town’s permit denial was because of the disabilities of the proposed residents. The complaint also alleged that, after learning about the proposed group home, the Town amended its zoning regulations to prohibit any community residence for adults with disabilities from operating in the Town.
Under the settlement, the Town will allow SELF’s group home to operate with up to 13 residents and will amend its zoning regulations to comply with federal anti-discrimination laws, including permitting group homes for persons with disabilities in residential districts, with the same size limitations applied to families of similar size, and implementing a reasonable accommodation policy. The Town will also pay $350,000 in monetary damages to SELF and L&R Realty, as well as $10,000 to the United States. The Town also agreed to take a number of other actions to guard against housing discrimination, including training Town officials and employees about their obligations under federal law, designating a fair housing compliance officer, and reporting periodically to the Justice Department.
The federal Fair Housing Act prohibits discrimination in housing based on disability, race, color, religion, national origin, sex and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-833-591-0291, or submit a report online at civilrights.justice.gov. Individuals may also contact HUD at 1-800-669-9777 or through its website at https://www.hud.gov/program_offices/fair_housing_equal_opp. Individuals may also report housing discrimination, and other forms of discrimination against persons with disabilities, to the U.S. Attorney’s Office at 203-821-3700.