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27 January 2022
Kearney Man Convicted for Possession with the Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Jan Sharp announced that Craig S. Marsh, 33, of Kearney, Nebraska, was sentenced today in federal court in Lincoln for possession with the intent to distribute 50 grams or more of actual methamphetamine and 50 grams or more of methamphetamine mixture. United States District Judge John M. Gerrard sentenced Marsh to 180 months in prison followed by a 5-year term of supervised release. There is no parole in the federal system.
On October 29, 2020, law enforcement executed a search warrant of Marsh’s residence in Kearney. Law enforcement found Marsh and two others in a room with suspected methamphetamine and drug paraphernalia. Law enforcement also found a case containing two bags of suspected methamphetamine in the residence. A lab confirmed that the substance was in fact about 381 grams of methamphetamine, of which at least 338 grams was actual methamphetamine.
This case was investigated by the Central Nebraska Drug and Safe Streets Task Force.
Justice Department Seeks to Shut Down Florida Tax Return PreparerRead the Press Release
On Jan. 25, the United States filed a civil injunction suit seeking to bar Arnold Zio, individually and doing business as Platinum Citizens Financial LLC and FTP Tax Services, from owning or operating a tax return preparation business and preparing tax returns for others.
The complaint, filed in the U.S. District Court for the Southern District of Florida, alleges that Zio started preparing fraudulent returns with the Maryland firm Money Back Tax before moving his operation to Florida. Zio has prepared returns without identifying himself on the returns, failed to receive proper authorization from his clients before filing their returns, and has failed to give his clients copies of their documents, the complaint alleges.
The government alleges that Zio prepared tax returns claiming over $600,000 in falsified or inflated business expenses, over $500,000 in fabricated business losses and over $850,000 in false tax deductions and credits, including falsified charitable contributions, unreimbursed employee expenses and gambling losses. According to the complaint, Zio has also diverted at least $188,000 from clients by depositing client refunds and Economic Impact Payments, also known as COVID-19 stimulus payments, into his own bank account.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. (More information can also be found here.) The IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers, and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers. The IRS also has a checklist of things to remember when filing income tax returns in 2022.
In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $72,000. For individuals whose income is over that threshold, IRS Free File offers electronical federal tax forms that can be filled out and filed online for free.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Justice Department Reaches Settlement with Withlacoochee River Electric Cooperative Inc. to Enforce the Rights of United States Army National Guard MemberRead the Press Release
The Department of Justice announced today that it has reached a settlement agreement resolving allegations that the Withlacoochee River Electric Cooperative Inc. (WREC) terminated U.S. Army National Guard Staff Sergeant Garrett Woodard when he returned from military service in violation of the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA).
“We greatly value and respect the contributions of all our servicemembers and are committed to challenging any attempts to discriminate against them in their efforts to fulfill their military duties,” said Assistant Attorney General Kristen Clarke of the Civil Rights Division. “It is an honor to fight for the rights of those serving in the Armed Forces, including the Army National Guard, so that they may continue to fight for and protect our freedom without fear of losing their employment.”
“Members of the U.S. Army National Guard make tremendous sacrifices, including spending significant time away from their families and jobs,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “Their call to active duty and fulfillment of their military obligations should never be detrimental to their jobs. Our office, in partnership with the Civil Rights Division, remains committed to protecting the employment rights of our servicemembers.”
SSG Woodard has served in the Florida Army National Guard with distinction for over 21 years and is currently attached to the 53rd Support Battalion out of Bartow, Florida. During his service, he has been called up to active duty on multiple occasions, including serving in Afghanistan in 2005 and 2006 and Iraq in 2010 and 2011 in support of Operation Iraqi Freedom. From January 2018 to October 2020, he was also employed by WREC in their apprentice lineman program to become a journeyman where he was consistently rated as an excellent employee. In the summer of 2020, SSG Woodard was deployed to military service for several months with his unit as part of Florida’s emergency mobilization to assist the state in its response to the COVID-19 pandemic. Due to the extended nature of the emergency, his military leave was extended for several months, through Oct. 26, 2020. He reported back to WREC immediately at the end of his deployment, but was terminated by WREC on the day he reported back to work. Woodard filed a complaint with the Department of Labor’s Veterans’ Employment and Training Service (VETS) alleging that WREC terminated him on the basis of his military service obligations in violation of USERRA. VETS investigated this matter and referred it to the Department of Justice after attempts at resolution failed.
Under the terms of the settlement agreement, WREC has agreed to pay Woodard back pay and other damages in the amount of $80,000. The settlement agreement further requires WREC to comply with all of the provisions of USERRA to prevent any further incidents of discrimination, retaliation or interference with a servicemember’s rights under USERRA from occurring in the future
USERRA protects the rights of uniformed servicemembers to retain their civilian employment following absences due to military service obligations and provides that servicemembers shall not be discriminated against because of their military obligations. The Justice Department gives high priority to the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at www.justice.gov/crt-military/employment-rights-userra and www.justice.gov/servicemembers, as well as on the Department of Labor’s website at www.dol.gov/vets/programs/userra.
This matter was handled by Deputy Civil Chief Yohance Pettis of the U.S. Attorney’s Office for the Middle District of Florida, along with Senior Trial Attorney Brian McEntire of the Civil Rights Division’s Employment Litigation Section.
Justice Department Reaches Settlement with Withlacoochee River Electric Cooperative Inc. to Enforce the Rights of United States Army National Guard MemberRead the Press Release
WASHINGTON – The Department of Justice announced today that it has reached a settlement agreement resolving allegations that the Withlacoochee River Electric Cooperative Inc. (WREC) terminated U.S. Army National Guard Staff Sergeant Garrett Woodard when he returned from military service in violation of the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA).
“We greatly value and respect the contributions of all our servicemembers and are committed to challenging any attempts to discriminate against them in their efforts to fulfill their military duties,” said Assistant Attorney General Kristen Clarke of the Civil Rights Division. “It is an honor to fight for the rights of those serving in the Armed Forces, including the Army National Guard, so that they may continue to fight for and protect our freedom without fear of losing their employment.”
“Members of the U.S. Army National Guard make tremendous sacrifices, including spending significant time away from their families and jobs,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “Their call to active duty and fulfillment of their military obligations should never be detrimental to their jobs. Our office, in partnership with the Civil Rights Division, remains committed to protecting the employment rights of our servicemembers.”
SSG Woodard has served in the Florida Army National Guard with distinction for over 21 years and is currently attached with the 53rd Support Battalion out of Bartow, Florida. During his service, he has been called up to active duty on multiple occasions, including serving in Afghanistan in 2005 and 2006 and Iraq in 2010 and 2011 in support of Operation Iraqi Freedom. From January 2018 to October 2020, he was also employed by WREC in their apprentice lineman program to become a journeyman where he was consistently rated as an excellent employee. In the summer of 2020, SSG Woodard was deployed to military service for several months with his unit as part of Florida’s emergency mobilization to assist the state in its response to the COVID-19 pandemic. Due to the extended nature of the emergency, his military leave was extended for several months, through Oct. 26, 2020. He reported back to WREC immediately at the end of his deployment, but was terminated by WREC on the day he reported back to work. Woodard filed a complaint with the Department of Labor’s Veterans’ Employment and Training Service (VETS) alleging that WREC terminated him on the basis of his military service obligations in violation of USERRA. VETS investigated this matter and referred it to the Department of Justice after attempts at resolution failed.
Under the terms of the settlement agreement, WREC has agreed to pay Woodard back pay and other damages in the amount of $80,000. The settlement agreement further requires WREC to comply with all of the provisions of USERRA to prevent any further incidents of discrimination, retaliation or interference with a servicemember’s rights under USERRA from occurring in the future
USERRA protects the rights of uniformed servicemembers to retain their civilian employment following absences due to military service obligations and provides that servicemembers shall not be discriminated against because of their military obligations. The Justice Department gives high priority to the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at www.justice.gov/crt-military/employment-rights-userra and www.justice.gov/servicemembers, as well as on the Department of Labor’s website at www.dol.gov/vets/programs/userra.
This matter was handled by Deputy Civil Chief Yohance Pettis of the U.S. Attorney’s Office for the Middle District of Florida, along with Senior Trial Attorney Brian McEntire of the Civil Rights Division’s Employment Litigation Section.
Jersey City Municipal Utilities Authority to Make Significant Improvements to Jersey City’s Municipal Sewer and Drinking Water Systems under Agreement with United States Government, Benefiting Underserved CommunitiesRead the Press Release
The Department of Justice and the Environmental Protection Agency (EPA) today announced an agreement with the Jersey City Municipal Utilities Authority (JCMUA), in Jersey City, New Jersey, that will significantly improve the city’s municipal sewer and drinking water systems, will significantly reduce the amount of pollution being discharged into the Hackensack River, Hudson River and Newark Bay, and will benefit many Jersey City neighborhoods that face environmental justice challenges. The agreement is a modification of a consent decree that JCMUA entered into with the U.S. government in 2011.
“This settlement will help improve the environment and public health of communities that have long endured a historic and disproportionate burden from pollution,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The Department of Justice is committed to protecting the public’s right to clean and healthy water under our nation’s Clean Water Act.”
“Providing clean water to communities, especially those already overburdened by pollution, is a fundamental right everyone deserves,” said Acting Assistant Administrator Larry Starfield for the EPA’s Office of Enforcement and Compliance Assurance. “The improvements agreed upon in this settlement will allow Jersey City Municipal Utilities Authority to effectively manage the challenges that come with severe storms and hurricanes caused by climate change.”
“As a result of this settlement, the sewer system improvements will reduce discharges from Combined Sewer Overflows by 370 million gallons per year, preventing over one million pounds of pollutants from entering nearby waterways each year,” said Regional Administrator Lisa F. Garcia for the EPA. “Furthermore, it will accelerate the replacement of thousands of lead service lines, which means cleaner drinking water for vulnerable communities. EPA is renewing its commitment to safeguarding underserved and overburdened communities such as Jersey City. These and other environmental and health benefits are key to protecting public health.”
“Through our state-federal partnership, NJDEP and USEPA are working to ensure that all New Jersey communities enjoy the benefits of clean waterways and reliable, safe drinking water,” said New Jersey Department of Environmental Protection Commissioner Shawn M. LaTourette. “This consent decree helps to ensure that JCMUA will continue taking important actions that reduce water pollution risks now and in future, and we applaud JCMUA’s commitment to replacing lead service lines as the utility works to maintain continuing compliance with broader Clean Water Act and Safe Drinking Water Act requirements.”
Under today’s agreement, JCMUA is committing to repairing and upgrading significant portions of its municipal combined sewer system while also expanding the system’s capacity. JCMUA will also upgrade the city’s drinking water system by replacing over 12,000 lead drinking water pipes. Many of the areas that these upgrades will benefit are communities of color that have faced environmental justice challenges for decades. JCMUA will also incorporate climate change adaptation and resiliency best practices and design measures into its sewer upgrades to ensure its sewer systems are better prepared to withstand severe storms and hurricanes.
JCMUA estimates the work detailed in the consent decree modifications will take an additional 10 years to complete and cost approximately $1.099 billion.
Under the initial settlement in 2011, JCMUA committed to resolve Clean Water Act violations for failing to properly operate and maintain its combined sewer system, which led to repeated releases of untreated sewage into the Hackensack River, Hudson River, Newark Bay and Penhorn Creek. That agreement also included a requirement for JCMUA to complete a comprehensive assessment of the condition of its sewer system. This assessment revealed additional improvements that needed to occur in order to ensure the sewer system will operate in compliance with the Clean Water Act. These additional improvements are being addressed in this settlement.
While the city’s drinking water system is subject to Safe Drinking Water Act regulations and was not addressed by the 2011 Clean Water Act settlement, under the modification, JCMUA has chosen to upgrade both its sewer and drinking water systems at the same time to save time and costs. The identification, removal and replacement of lead drinking water service lines is important in communities like Jersey City to protect public health, especially children’s health since kids are more vulnerable to the impacts of lead than adults.
Combined sewer systems like the one in Jersey City are designed to transport sewage, industrial wastewater and rainwater runoff in the same pipes to wastewater treatment plants. During periods of heavy rainfall, the volume of wastewater traveling through a combined sewer system can exceed the capacity of the system or the treatment plant. Resulting overflows, called combined sewer overflows (CSOs), contain not only stormwater but also pollutants such as untreated human and industrial waste, toxic materials and debris. They pose risks to human health, threaten aquatic habitats and life, and impair the use and enjoyment of the nation’s waterways.
The consent decree modification is subject to a 60-day public comment period and final court approval. A copy of the modification and more information are available on the Department of Justice website at http://www.usdoj.gov/enrd/Consent_Decrees.html. View the Spanish translation of this press release here.
Jacksonville Man Pleads Guilty to Stealing His Twin’s Identity to Obtain Veterans BenefitsRead the Press Release
Jacksonville, Florida – Wayne Bowen (64, Jacksonville) has pleaded guilty to aggravated identity theft. He faces a mandatory penalty of two years in federal prison. As part of his plea agreement, Bowen has agreed to reimburse various federal agencies a total of $63,773 for the government benefits he received in connection with his identity theft scheme.
According to the plea agreement, in 2014, Bowen used the name, Social Security card, and military discharge papers of his estranged twin brother to apply for federally subsidized housing benefits. The specific subsidy – intended for indigent military veterans – was funded under a joint program administered by the U.S. Department of Veterans Affairs (VA) and the U.S. Department of Housing and Urban Development (HUD). Unlike his twin, Bowen is not a military veteran.
When interviewed by federal agents, Bowen admitted that he had been using his twin brother’s identity for years. He had obtained a Florida identification card using his twin’s identity and had been arrested and convicted of felony offenses under his twin’s name. Although Bowen initially told the agents that he, like his twin, had served in and been honorably discharged from the U.S. Army, Bowen later relented and admitted those were lies.
Due to Bowen’s fraudulent use of his twin’s identity, the VA provided him with $32,434 in medical services, HUD provided him with $18,905 in housing subsidies, and the U.S. Department of Agriculture funded $12,434 in nutritional benefits for him. Bowen’s twin has confirmed that he did not apply for any of these benefits and that he never gave Bowen permission to use his name.
“The defendant pleaded guilty today for his abhorrent conduct in defrauding multiple federal and state benefit programs by assuming the identify of his twin brother who had justly earned these benefits,” said Special Agent in Charge David Spilker of the Department of Veterans Affairs Office of Inspector General’s Southeast Field Office. “The VA OIG will continue to work with our law enforcement partners to ensure the integrity of VA’s benefit programs.”
This case was investigated by the U.S. Department of Veterans Affairs Office of Inspector General, the U.S. Department of Housing and Urban Development Office of Inspector General, and the U.S. Department of Agriculture Office of Inspector General. It is being prosecuted by Assistant United States Attorney Michael J. Coolican.
Ithaca Convenience Store Owner Pleads Guilty to Food Stamp FraudRead the Press Release
SYRACUSE, NEW YORK – Abdul Jalil, 55, of Ithaca, New York, pled guilty to federal food stamp fraud, announced United States Attorney Carla B. Freedman, Bethanne M. Dinkins, Special Agent in Charge of the U.S. Department of Agriculture (USDA), John Joly, Acting Chief of the Ithaca Police Department. As part of his plea, the defendant admitted that he exchanged food stamp benefits for cash with customers at his store, the Ithaca Halal Meat and Grocery, which is prohibited by the USDA, resulting in a loss to the government of $120,061. During today’s guilty plea, the defendant agreed to pay full restitution to the government.
Sentencing is scheduled for May 25, 2022, in Albany, New York. At sentencing, the defendant faces up to 5 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the United States Department of Agriculture – Office of Inspector General, the Ithaca Police Department, and the Ithaca Department of Social Services, and is being prosecuted by Assistant U.S. Attorney Tamara Thomson.
Iowa Man Indicted on Federal Drug Trafficking and Firearm ChargesRead the Press Release
ROCKFORD — An Iowa man has been indicted by a federal grand jury in Rockford on federal drug and firearm charges.
BRADLEY S. GODDARD, 33, of Clinton, Iowa, is charged with possession of a controlled substance with intent to distribute, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a previously convicted felon, according to an indictment returned Jan. 25, 2022, in U.S. District Court in Rockford. The drug charge involves 50 grams or more of methamphetamine, the indictment states. The charges allege that Goddard possessed the drugs and firearm on Sept. 8, 2021, in Fulton, Ill.
Goddard pleaded not guilty Wednesday during arraignment in federal court.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Robert J. Bell, Special Agent-in-Charge of the Chicago Office of the U.S. Drug Enforcement Administration, and Nicholas Neblung, Chief of Police of the Fulton, Ill., Police Department. The Whiteside County, Ill., Sheriff’s Office and the Morrison, Ill., Police Department assisted in the investigation. The government is represented by Assistant U.S. Attorney Vincenza L. Tomlinson.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Indictment and Guilty Plea Entered in Iranian Export CaseRead the Press Release
A U.K. man pleaded guilty Tuesday in federal court in the District of Columbia to violations of the International Emergency Economic Powers Act (IEEPA) and Iranian Transactions and Sanctions Regulations. At the same time, an indictment was unsealed charging four individuals with the same offense, as well as related offenses.
According to his plea, Saber Fakih, 46, of the United Kingdom, conspired with Bader Fakih, 41, of Canada, Altaf Faquih, 70, of the United Arab Emirates, and Alireza Taghavi, 46, of Iran, to export and attempt to export an Industrial Microwave System (IMS) and counter-drone system from the United States to Iran, without first obtaining the requisite license from the Department of Treasury’s Office of Foreign Assets Control (OFAC). Saber Fakih pleaded guilty to count two of the indictment.
“Fakih and his coconspirators attempted to evade U.S. sanctions and obtain highly sensitive pieces of equipment for Iran from unwitting U.S. suppliers,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “In doing so, Fakih jeopardized not only U.S. national security, but the national security of any other nation Iran decides to target. The Department of Justice can and will act to disrupt and prosecute such criminal conduct.”
“This indictment and guilty plea demonstrate the United States’ commitment to preventing U.S. technology with military applications from falling into the hands of the Iranian government, and it demonstrates the effective results generated by the partnership between the Justice Department, the FBI, the Department of Homeland Security and the Department of Commerce,” said U.S. Attorney Matthew M. Graves for the District of Columbia.
“This investigation illustrates that our adversaries are willing to utilize complicated procurement networks and blatantly disregard U.S. export control laws to acquire sensitive dual use items for potential military purposes, such as counter drone technology, industrial microwave systems, and directed-energy systems that would undermine U.S. national security,” said Special Agent in Charge Nasir Khan of the U.S. Department of Commerce Office of Export Enforcement, Washington Field Office. “The Office of Export Enforcement and our partner agencies will aggressively target and dismantle those illicit networks that seek technological advantages that can be used against us.”
“Mr. Fakih’s guilty plea shows the lengths he went to in order to attempt to procure U.S. technology with military uses; it also shows the lengths the FBI and our federal partners will go to in order to stop these technologies and materials from getting into the wrong hands,” said Special Agent in Charge Thomas J. Sobocinski of the FBI Baltimore Field Office. “Those who are working domestically and abroad to undermine American interests will be held accountable.”
“The FBI remains committed to protecting U.S. technology and ensuring it does not fall into the hands of anyone intending to use it for harm,” said Assistant Director Alan E. Kohler Jr. of the FBI’s Counterintelligence Division. “For over 40 years, Iran has continuously attempted to obtain sanctioned items that could be used against Americans or our allies. This indictment of Fakih and his coconspirators sends a clear message: The FBI, along with its federal partners, will persist in thwarting these attempts and do its part to keep our democracy safe.”
“Homeland Security Investigations (HSI) remains committed to safeguarding sensitive U.S. technology and ensuring it does not fall into the hands of our adversaries,” said Special Agent in Charge James R. Mancuso of HSI’s Baltimore Field Office. “This investigation highlights HSI’s global investigative capabilities, and we will continue to work with our federal partners to protect the safety and security of the United States.”
In addition, a related indictment was unsealed in the District of Columbia charging Iranian national Jalal Rohollahnejad, 44, with smuggling, wire fraud and related offenses arising from the same scheme. Rohollahnejad was previously added to the Department of Commerce’s, Bureau of Industry and Security Entity List in March 2020, for acting contrary to U.S. national security or foreign policy interests by procuring goods on behalf of a Specially Designated National (SDN).
According to the indictments, in 2017 and 2018, the co-conspirators attempted to export to Iran items that had potential civil and military uses. Potential military uses of the IMS (with some modification) include high-power microwave based directed-energy weapon systems. The counter-drone system, which has both commercial and military uses, can be used to stop, identify, redirect, land or take total control of a target unmanned aerial vehicle.
The indictments allege that Rohollahnejad and Taghavi hold themselves out as representatives of Rayan Roshd Asfzar, which has been linked to the Iranian Revolutionary Guards Corps (IRGC).
According to court documents, Taghavi informed Saber Fakih that he could not purchase the IMS because he is an Iranian national. Saber Fakih then arranged the purchase of the IMS on Taghavi’s and Rohollahnejad’s behalf, knowing it was ultimately destined for Iran.
Rohollahnejad caused the equivalent of $450,000 to be sent from Iran to the United Arab Emirates, where Faquih picked it up and converted it from Emirati currency to U.S. dollars. Faquih then transferred the money to Bader Fakih in Canada via three separate wire transfers. Bader Fakih then transferred the money to the U.S. company for the purchase of the IMS.
In addition to the IMS, Saber Fakih and Bader Fakih conspired to purchase two counter-drone systems worth nearly $1 million on behalf of Taghavi.
Saber Fakih faces up to 20 years of incarceration and/or a fine of $1 million for violating the IEEPA. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case is being investigated by the FBI’s Baltimore Field Office, HSI’s Baltimore Field Office, and the Washington Field Office of the U.S. Department of Commerce.
The case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterintelligence and Export Control Section.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Indictment and Guilty Plea Entered in Iranian Export CaseRead the Press Release
WASHINGTON – A U.K. man pleaded guilty Tuesday in federal court in the District of Columbia to violations of the International Emergency Economic Powers Act (IEEPA) and Iranian Transactions and Sanctions Regulations. At the same time, an indictment was unsealed charging four individuals with the same offense, as well as related offenses.
According to his plea, Saber Fakih, 46, of the United Kingdom, conspired with Bader Fakih, 41, of Canada, Altaf Faquih, 70, of the United Arab Emirates, and Alireza Taghavi, 46, of Iran, to export and attempt to export an Industrial Microwave System (IMS) and counter-drone system from the United States to Iran, without first obtaining the requisite license from the Department of Treasury’s Office of Foreign Assets Control (OFAC). Fakih pleaded guilty to count two of the indictment.
“Fakih and his coconspirators attempted to evade U.S. sanctions and obtain highly sensitive pieces of equipment for Iran from unwitting U.S. suppliers,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “In doing so, Fakih jeopardized not only U.S. national security, but the national security of any other nation Iran decides to target. The Department of Justice can and will act to disrupt and prosecute such criminal conduct.”
“This indictment and guilty plea demonstrate the United States’ commitment to preventing U.S. technology with military applications from falling into the hands of the Iranian government, and it demonstrates the effective results generated by the partnership between DOJ, the FBI, the Department of Homeland Security, and the Department of Commerce,” said U.S. Attorney Matthew M. Graves, for the District of Columbia.
“This investigation illustrates that our adversaries are willing to utilize complicated procurement networks and blatantly disregard U.S. export control laws to acquire sensitive dual use items for potential military purposes, such as counter drone technology, industrial microwave systems, and directed-energy systems that would undermine U.S. national security,” said Special Agent in Charge Nasir Khan of the U.S. Department of Commerce Office of Export Enforcement, Washington Field Office. “The Office of Export Enforcement and our partner agencies will aggressively target and dismantle those illicit networks that seek technological advantages that can be used against us.”
“Mr. Fakih’s guilty plea shows the lengths he went to in order to attempt to procure U.S. technology with military uses, it also shows the lengths the FBI and our federal partners will go to in order to stop these technologies and materials from getting into the wrong hands,” said Special Agent in Charge Thomas J. Sobocinski, of the FBI Baltimore Field Office. “Those who are working domestically and abroad to undermine American interests will be held accountable.”
“The FBI remains committed to protecting U.S. technology and ensuring it does not fall into the hands of anyone intending to use it for harm,” said Assistant Director Alan E. Kohler Jr of the FBI's Counterintelligence Division. “For over 40 years, Iran has continuously attempted to obtain sanctioned items that could be used against Americans or our allies. This indictment of Fakih and his coconspirators sends a clear message: The FBI, along with its federal partners, will persist in thwarting these attempts and do its part to keep our democracy safe.”
“Homeland Security Investigations (HSI) remains committed to safeguarding sensitive U.S. technology and ensuring it does not fall into the hands of our adversaries,” said Special Agent in Charge James R. Mancuso of HSI’s Baltimore Field Office. “This investigation highlights HSI’s global investigative capabilities, and we will continue to work with our federal partners to protect the safety and security of the United States.”
In addition, a related indictment was unsealed in the District of Columbia charging Iranian national Jalal Rohollahnejad, 44, with smuggling, wire fraud and related offenses arising from the same scheme. Rohollahnejad was previously added to the Department of Commerce’s, Bureau of Industry and Security Entity List in March 2020, for acting contrary to U.S. national security or foreign policy interests by procuring goods on behalf of a Specially Designated National (SDN).
According to the indictments, in 2017 and 2018, the co-conspirators attempted to export to Iran items that had potential civil and military uses. Potential military uses of the industrial microwave system (IMS) (with some modification) include high-power microwave based directed-energy weapon systems. The counter-drone system, which has both commercial and military uses, can be used to stop, identify, redirect, land or take total control of a target unmanned aerial vehicle.
The indictments allege that Rohollahnejad and Taghavi hold themselves out as representatives of Rayan Roshd Asfzar, which has been linked to the Iranian Revolutionary Guards Corps (IRGC).
According to court documents, Taghavi informed Fakih that he could not purchase the IMS because he is an Iranian national. Saber Fakih then arranged the purchase of the IMS on Taghavi’s and Rohollahnejad’s behalf, knowing it was ultimately destined for Iran.
Rohollahnejad caused the equivalent of $450,000 to be sent from Iran to the United Arab Emirates, where Altaf Faquih picked it up and converted it from Emirati currency to U.S. dollars. Faquih then transferred the money to Bader Fakih in Canada via three separate wire transfers. Bader Fakih then transferred the money to the U.S. company for the purchase of the IMS.
In addition to the IMS, Saber Fakih and Bader Fakih conspired to purchase two counter-drone systems worth nearly $1 million on behalf of Taghavi.
Saber Fakih faces up to 20 years of incarceration and/or a fine of $1 million for violating the IEEPA. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case is being investigated by the FBI’s Baltimore Field Office, HSI’s Baltimore Field Office, and the Washington Field Office of the U.S. Department of Commerce.
The case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterespionage and Export Control Section.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Highland Park Police Detective Pleads Guilty to Conspiring to Distribute Fentanyl-laced HeroinRead the Press Release
DETROIT - A Detective with the Highland Park Police Department and her co-conspirator pleaded guilty to conspiring to distribute fentanyl-laced heroin, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Acting Special Agent in Charge Josh P. Hauxhurst, Federal Bureau of Investigation, Detroit Division.
Tiffany Lipkovitch, 46, of Detroit, and Amber Bellamy, 38, of Detroit, pleaded guilty to conspiring to distribute controlled substances. Lipkovich is a detective with the Highland Park Police Department, where she has been a police officer since 2011. According to the complaint, federal agents recorded numerous calls and meetings between Lipkovitch and a confidential source about a drug transaction. Lipkovich gave the source “samples” or “pictures” of the drugs that were available from her associate, Bellamy, explaining that one was “$80 a gram” and the others were $100 per gram. When Lipkovitch asked what they were diluting or “cuttin” the drugs with, the confidential source responded that people used “fentanyl.” This did not surprise Lipkovitch, who explained that Bellamy was getting “a package of fentanyl . . . from overseas.” Lipkovitch eventually introduced the confidential source to Bellamy, who sold the source 45 grams of a fentanyl / heroin mixture. The confidential source later met with Lipkovitch, who was on duty and in her police uniform, about the transaction, and gave her $300 for facilitating the drug deal.
“Drug trafficking and drug addiction have created a crisis in our communities, something our law enforcement partners know all too well,” said U.S. Attorney Ison. “It is an affront to the good men and women in law enforcement and to the communities that they serve for a sworn law enforcement officer to betray her oath in this manner. “
"Instead of upholding her oath to protect and serve, this police officer endangered the community by conspiring to distribute a dangerous and deadly drug," said Josh P. Hauxhurst, Acting Special Agent in Charge of the FBI's Detroit Division. "The FBI will work with the local and federal partners to protect the community from those who seek to harm it. The FBI appreciates the Highland Park Police Department for their cooperation in this investigation."
Lipkovitch and Bellamy both face a maximum of forty years in prison for the charge to which they pled guilty.
The case was investigated by the FBI Detroit Area Public Corruption Task Force, in collaboration with the Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorney Steven Cares.
Harvey Man Sentenced to 180 Months in PrisonRead the Press Release
HAMMOND- Terrance Brown, 33, of Harvey, Illinois was sentenced by United States District Court Judge Phillip P. Simon after being found guilty at trial of Bank Robbery, announced United States Attorney Clifford D. Johnson.
Brown was sentenced to 180 months in prison, 2 years of supervised release and ordered to pay restitution in the amount of $12,724.
According to documents in the case, on September 18, 2020, Brown entered and robbed a Bank in Griffith, Indiana of $12,724. Brown was convicted after a three-day trial in September 2021.
Due to his prior convictions for Vehicular Hijacking with a Weapon and Strangulation, Brown was classified as a career offender and received an increased sentence under the law.
This case is the result of the investigative efforts of the Federal Bureau of Investigation, the Indiana State Police and the Griffith Police Department. This case was prosecuted by Assistant U.S. Attorney Caitlin M. Padula and former Hammond Assistant U.S. Attorney Thomas Mahoney.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Former Orangeburg Public Schools Employee Pleads Guilty to Defrauding School District of over $550,000Read the Press Release
COLUMBIA, SOUTH CAROLINA — David Cortez Marshall, Jr., 30, of Orangeburg, South Carolina pleaded guilty today to defrauding the Orangeburg County School District of over $550,000.
“Any time an employee uses a position of trust to steal from their employer, it is inexcusable and wrong. Here, Marshall’s crime was particularly reprehensible because he stole money, provided by South Carolina taxpayers, from a school district during a pandemic that has already created unprecedent challenges in public education,” said United States Attorney Corey Ellis. “I appreciate the work of the FBI in bringing this defendant to justice. This office will continue to prosecute those who try to use the pandemic, or any other circumstance, to enrich themselves at the expense of hard-working taxpayers and critical institutions.”
“Throughout the pandemic, individuals like Marshall have created schemes and exploited programs designed to aid the public,” said Federal Bureau of Investigation (FBI) Columbia Special Agent in Charge Susan Ferensic. “Unfortunately, Marshall misused his position to commit fraud against a school district and line his own pockets. I’m thankful for the extensive work that was put into investigating this case. Let this serve as a reminder that we will not tolerate this criminal activity, and we will hold those involved accountable.”
Evidence obtained in the investigation revealed that Marshall, a former media communications specialist employed by the Orangeburg County School District, created a scheme to defraud the district while purchasing remote learning cameras for school classrooms. Through the use of shell companies, fabricated documents, forged signatures, and a false identity, Marshall steered the district’s purchasing contracts to companies he created and controlled, purchased the cameras, then sold them to the school at a substantial markup. Marshall also received funds from the school district for the cameras that he never paid to the seller. Through his scheme to defraud, Marshall received more than $550,000 in illegal proceeds. His scheme was eventually discovered by other school district employees, who confronted Marshall and reported the matter to the FBI for further investigation.
Marshall faces a maximum penalty of twenty years in federal prison for wire fraud, in addition to restitution, a fine of up to $250,000, and three years of supervision to follow the term of imprisonment. United States District Judge Mary G. Lewis accepted the guilty plea and will sentence Marshall after receiving and reviewing a sentencing report prepared by the United States Probation Office.
This case was investigated by the FBI and prosecuted by Assistant United States Attorney Brook Andrews.
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Former Navy commander headed to federal prisonRead the Press Release
CORPUS CHRISTI, Texas – A 58-year-old Portland man has been sentenced to 19 years in federal prison following his conviction of conspiring to possess with the intent to distribute meth and possessing a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Jennifer B. Lowery.
Lance Esswein previously served as the commanding officer of the U.S. Navy Minesweeper U.S.S. Ardent. He was also the risk assessment manager for Nueces County and worked as an adjunct professor at Texas A&M Corpus Christi.
He pleaded guilty Jan. 30, 2020.
Today, Senior U.S. District Judge Janis Graham Jack sentenced Esswein to serve 168 and 60 months for the drug and firearms convictions, respectively. The sentences will be served consecutively for a total 228-month-term of imprisonment. The prison term will be immediately followed by five years of supervised release. In determining the sentence, Judge Jack found Esswein responsible for distributing more than 4.5 kilograms of “ice.”
At the hearing, the court heard additional evidence detailing the reasons for his less than honorable discharge from the U.S. Navy and the termination of his employment with Nueces County. The court also heard Esswein had offered to arrange the murder of two local police officers to prevent their testimony in an unrelated drug case.
Esswein had sold more than 100 grams of meth, after which authorities executed a search warrant at his Portland residence. There, they discovered additional meth and numerous firearms staged around the residence. He also had loaded assault rifles positioned just inside the front door.
The investigation revealed significant additional quantities of meth, other narcotics and firearms at storage units and vehicles Esswein controlled. They found a total of 36 weapons, including stolen firearms and firearms with missing serial numbers.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Robert D. Thorpe Jr. prosecuted the case.
Former Go Cedar Rapids Executives Plead Guilty to Bank FraudRead the Press Release
Doug Hargrave, age 55, from Puyallup, Washington, pled guilty on January 26, 2022, in federal court in Cedar Rapids. Aaron McCreight, age 47, from Dothan, Alabama, pled guilty today. Each man was convicted of one count of bank fraud.
At the plea hearings, the two men admitted that they formerly held executive positions in Go Cedar Rapids (“GoCR”), an organization that planned and executed Newbo Evolve, a three-day music and cultural event in August 2018. McCreight was President and Chief Executive Officer, and, in the summer of 2018, Hargrave was GoCR’s Finance Director. As the Newbo Evolve event dates approached, GoCR did not have enough money to, among other things, pay Kelly Clarkson and buy the alcohol that was to be sold at the concert venue.
Hargrave and McCreight admitted, as alleged in the charging documents, that they defrauded the financial institution that had extended a loan to GoCR to finance Newbo Evolve by making misrepresentations about Newbo Evolve’s actual ticket sales, projected revenue, projected expenses, and the true amount of loss they were projecting and expecting Newbo Evolve to generate. They did this in order to fraudulently induce the bank to loan GoCR additional money to support Newbo Evolve. In July 2018, McCreight and Hargrave sent a false and fraudulent Newbo Evolve 2018 Budget to the bank in support of GoCR’s request for an increase in its loan. In a meeting with representatives of the bank, McCreight fraudulently misrepresented the number of tickets that had been sold for Maroon 5 and Kelly Clarkson’s performances. The bank subsequently increased the loan to GoCR from $1.5 million to $2.2 million.
Sentencing hearings before United States District Court Judge C.J. Williams will be set after presentence reports have been prepared. Hargrave and McCreight were released on bond pending sentencing. Hargrave and McCreight each face a possible maximum sentence of 30 years’ imprisonment, a fine, and a period of supervised release following any imprisonment.
The case is being prosecuted by United States Attorney Sean R. Berry and Assistant United States Attorney Kyndra Lundquist and was investigated by the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 22-CR-01 and 22-CR-02.
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Former Fairfield Man Sentenced to Federal Prison for Child Pornography ChargeRead the Press Release
DAVENPORT, Iowa – A former Fairfield man, Auston Jacobus Hummell, age 23, was sentenced on January 26, 2022, to 190 months in prison for Receipt and Distribution of Child Pornography. Following his prison term, Hummell was ordered to serve ten years of supervised release as well as pay $3,000 to each of his eleven victims – for a total of $33,000. Hummell was also ordered to pay a $100 Special Assessment fee.
According to court documents, the investigation into Hummell began when the Mount Pleasant Police Department received a CyberTip from the Iowa Internet Crimes Against Children Task Force. The CyberTip indicated files containing child pornography were uploaded from specific IP addresses and those IP addresses traced back to Hummell. After liaising with Kahoka Police Department in Kahoka, Missouri, a search warrant was issued for Hummell’s known residence and numerous electronic devices were seized. The devices contained over 120,000 images and videos containing child pornography. On June 21, 2021, Hummell pleaded guilty to the charge.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Federal Bureau of Investigation, Mount Pleasant Police Department, Kahoka Police Department, and the Iowa Internet Crimes Against Children Task Force investigated the case.
This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the U.S. Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nation-wide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children. Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
Former Everett Man Indicted on Wire Fraud, Social Security Misuse and Identity TheftRead the Press Release
BOSTON – A former Everett man was indicted today on identity theft and fraud charges in connection with schemes to fraudulently obtain an apartment and pandemic-related relief funds from the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program made available under the Coronavirus Aid, Relief, and Economic Security Act.
Tedje Menard, 27, was indicted on two counts of wire fraud, one count of false representation of a social security number and one count of aggravated identity theft. Menard was initially charged and arrested in November 2021.
According to the charging documents, in or around November 2020, Menard applied to rent an apartment in East Boston using the name and identity of another person. As part of the application and screening process, Menard falsely claimed to be the victim by providing the company overseeing the property with, among other things, the victim’s name, Social Security number, date of birth and a copy of a purported North Carolina driver’s license containing the victim’s information but depicting a photograph of Menard. Additionally, in June 2021, Menard allegedly submitted an EIDL application in the amount of $40,000 using the victim’s name and personal identifiable information.
It is also alleged that in April 2021, Menard used his own name to apply for a PPP loan in the amount of approximately $20,833. In the loan application, it is alleged that Menard falsely represented his business’ total gross income in 2019 and his criminal history.
The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of false representation of a social security number provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutively to any other sentence imposed, one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Valuable assistance was provided by the Department of Labor and the U.S. Secret Service, Boston Field Office. Assistant U.S. Attorney J. Mackenzie Duane of Rollins’ Major Crimes Unit is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Fentanyl Dealer Sentenced to 14 Years in Federal PrisonRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Jose Armando Delgado Martinez (35, Orlando) to 14 years in federal prison for his role in a conspiracy to distribute over a kilogram of fentanyl and fentanyl-laced heroin. Delgado-Martinez had pleaded guilty on November 9, 2021. Two of Delgado-Martinez’s codefendants were sentenced earlier this month for their roles in this case: Bolivar Anibal Cordova Jr. (42, Windermere) was sentenced to 12 years and 7 months in federal prison, and Luis Manuel Cordero (40, Orlando) was sentenced to 8 years and 6 months in federal prison.
According to court documents, between August 2019 and April 2021, Delgado-Martinez, Cordova, and Cordero worked together to distribute fentanyl-laced heroin to a DEA cooperating source and undercover officers on 15 occasions. In addition to distributing approximately 680 grams of fentanyl-laced heroin to the DEA for around $35,000, the conspirators also maintained a storage locker that contained more than 611 grams of pure fentanyl. All of the drugs were seized by federal agents.
The conspirators also produced rap videos depicting drug dealing and guns along with the torture, mutilation, and murder of government informants. Delgado-Martinez’s sentence was enhanced as a result of his effort to bribe Cordova into falsely testifying in the case.
This case was investigated by the Drug Enforcement Administration, with assistance from the Florida Highway Patrol and the Winter Park Police Department. It was prosecuted by Assistant United States Attorney Dana E. Hill.
Fayette County Man Pleads Guilty to Distributing MethamphetamineRead the Press Release
BECKLEY, W.Va. – A Fayette County man pleaded guilty today to distributing methamphetamine.
According to court documents, Andrew Daniel Sprinkle, 34, admitted that on two separate occasions in September 2020 he sold methamphetamine to an undercover informant working with law enforcement. Sprinkle also admitted that on September 21, 2020, he was in possession of a Smith and Wesson 9mm semi-automatic pistol when he sold the methamphetamine to the undercover informant. Sprinkle knew he was prohibited from possessing any firearms due to prior felony convictions in the state of North Carolina.
Sprinkle faces up to 20 years in prison and a fine of up to $1,000,000 when he is sentenced on May 6, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Beckley Raleigh County Drug and Violent Crime Unit, the Central West Virginia Drug Task Force, the Raleigh County Sheriff’s Department, the West Virginia State Police, and the Beckley Police Department.
United States District Judge Frank W. Volk presided over the hearing. Assistant U.S. Attorney Timothy D. Boggess is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:21-cr-00149.
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District of Columbia Couple Plead Guilty to Charges in Death of Woman’s Two-Year-Old SonRead the Press Release
WASHINGTON –A District of Columbia couple pleaded guilty today to charges stemming from the death of a 2-year-old boy who had suffered extensive injuries while in their care, including multiple blunt force trauma, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Antonio Turner, 29, pleaded guilty to voluntary manslaughter in the death of Gabriel Eason. Ta'Jeanna Eason, 32, the boy’s mother, pleaded guilty to three counts of second-degree cruelty to children. Turner also pleaded guilty to one count of first-degree cruelty to children for injuries suffered by another of Eason’s sons, who was 3 years old at the time. Additionally, he pleaded guilty to a felony assault charge for attacking a woman after a traffic crash.
The pleas, in the Superior Court of the District of Columbia, are contingent upon the Court’s approval. They call for Turner to be sentenced to seven to 13 years in prison. Eason is to be sentenced to six years in prison with that time suspended on the condition that she have no future unsupervised contact with children and that she participate in mental health and drug treatment. She would be placed on a period of probation and supervised release. The Honorable Milton C. Lee, Jr. scheduled sentencing for March 25, 2022.
According to court documents, Turner and Eason had a romantic relationship and resided in the 900 block of Division Avenue NE. Turner was not the biological father of Eason’s three children. On April 1, 2020, at approximately 8:25 a.m., the Metropolitan Police Department responded to the residence to investigate a report of an unconscious person. When police arrived, Gabriel was deceased. Officers also observed a bump on the center of the 3-year-old’s forehead and noted that the child seemed to be drifting in and out of consciousness.
Later on April 1, 2020, both of Eason’s surviving sons were taken to Children’s National Medical Center for a medical evaluation. It was discovered that both had sustained apparent trauma to their bodies. The three-year-old had several different injuries, including bruises behind his ears and scalp, fractured ribs and a lacerated liver.
On April 2, 2020, the District of Columbia’s Office of the Chief Medical Examiner conducted an autopsy of Gabriel. The examination found abrasions and contusions to the head, face, and torso, multiple rib fractures and healing fractured ribs, and other injuries, including to the heart and brain. The cause of death was ruled to be multiple blunt force injuries.
The charges against Eason involved her failure to seek immediate medical attention for Gabriel and his three-year-old brother, as well as for slapping and striking her other son.
Both defendants were arrested on Nov. 3, 2020, following an investigation. They were released pending further proceedings. On the morning of Nov. 29, 2021, Turner caused a woman’s car to crash in the 1800 block of New York Avenue NE. He then dragged her from the car and punched her multiple times in the face, causing her to fall and lose consciousness. Turner was arrested following this assault and has been detained ever since.
U.S. Attorney Graves and Chief Contee commended the work of the detectives, officers, and others who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the Capital Area Regional Fugitive Task Force. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Stephanie Gilbert, Grazy Rivera, and Meridith McGarrity, former Victim/Witness Advocate Marcia Rinker, and Victim/Witness Program Specialist Amy Trotto. Finally, they commended the work of Assistant U.S. Attorney Cynthia G. Wright, who is prosecuting the case.
Detroit Man Sentenced to 30 Years for Drug Trafficking in the Lansing AreaRead the Press Release
GRAND RAPIDS, MICHIGAN —Kenneth Pointer, a/k/a “Chopper” of Detroit, Michigan, was sentenced to 30 years’ imprisonment, followed by 10 years’ supervised release, by U.S. District Judge Hala Y. Jarbou on January 26, 2022, announced U.S. Attorney Andrew B. Birge. Because Mr. Pointer was found guilty of possessing and distributing a large quantity of drugs and because he had been previously convicted of multiple controlled substance offenses, Pointer was subject to higher penalties. Due to his status as a career offender, Mr. Pointer faced a United States Sentencing Guidelines range of 30 years to life imprisonment.
Between April 2017 and November 2019, law enforcement agencies investigated Mr. Pointer’s ongoing drug trafficking enterprise. Mr. Pointer trafficked drugs from Detroit to Lansing where he divided and packaged them for sale. Mr. Pointer supplied users and other dealers in the Lansing area. During the investigation, law enforcement seized more than 4.5 kilograms of cocaine, crack cocaine, and fentanyl from Mr. Pointer and residences used by Mr. Pointer in the Lansing area. At sentencing, Judge Jarbou found that Mr. Pointer operated a drug house to facilitate his drug trafficking and that Mr. Pointer’s criminal history showed that he had made a career out of drug trafficking activities.
“My office is committed to supporting local partner law enforcement agencies to stop the trafficking of illegal drugs. Those like Mr. Pointer, who make a career of dealing dangerous drugs, such as fentanyl and cocaine, will get our attention and face a very long time in prison, away from the communities they endanger,” said U.S. Attorney Birge.
"This investigation, and the subsequent sentencing, demonstrates the commitment of DEA and partner agencies to pursue and disrupt drug dealers who are inflicting harm upon communities with dangerous and illegal narcotics,” said DEA Acting Special Agent in Charge Kent Kleinschmidt.
Michigan State Police Tri-County Metro Narcotics Team Commander Detective Lieutenant Bill Eberhardt said, “We are grateful to the DEA and the U.S. Attorney’s Office for their diligence on this investigation. We support the judge’s sentencing decision and believe it recognizes the significant negative impact the defendant has had on the greater Lansing area. Tri-County Metro Narcotics will continue to work with our local and federal partners to investigate drug crimes in the Tri-County area, endeavoring to keep our citizens and communities safe.”
“The Lansing Police Department appreciates the collaborative efforts of local, state, and federal resources, when it comes to criminal investigations. Prosecutions and sentences such as this are an excellent example of the quality of work and the impact these efforts can produce,” said Lansing Police Department Chief Ellery Sosebee.
This case was prosecuted by Assistant U.S. Attorneys Jonathan C. Roth, and Kristin M. Pinkston and investigated by the Drug Enforcement Agency, the Lansing Police Department, and the Michigan State Police Department Tri-County Metro Narcotics Team.
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Des Moines Armed Career Criminal Sentenced to 414 Months in Federal PrisonRead the Press Release
DES MOINES, Iowa – On January 13, 2022, Kenny Eugene Smart, also known as “Solo”, age 48, of Des Moines, was sentenced to 414 months in prison for firearms charges announced United States Attorney Richard D. Westphal.
After a three-day jury trial, Smart was convicted of possessing a firearm as a felon and possessing a firearm in furtherance of a drug trafficking crime. Smart was found in possession of that gun during the execution of metro-wide search warrants in November 2020. Smart was prohibited from possessing firearms because of prior convictions for an Iowa felony drug crime and a federal felony gun crime, for which he spent more than 15 years in prison. Smart had just been released from prison in June 2020 and was on federal supervised release when he was found with a gun in November 2020. Smart qualified under the United States Sentencing Guidelines as an Armed Career Criminal and, due to the crimes for which he was convicted, faced a mandatory 20-year sentence.
At sentencing, a victim testified that she had been raped by Smart. The government presented evidence that Smart raped another victim during the six months he had been out of prison. In imposing sentence, United States District Court Judge Rebecca Goodgame Ebinger characterized Smart’s gun possession as aggravating because he possessed guns to intimidate others and coerce at least one of his rape victims. She also considered Smart’s conduct after he was federally indicted, which included an attempt to have another person take responsibility for the gun and he threatened the family member of a trial witness. Smart received a 360-month sentence for his gun crimes, to be served consecutively to a 54-month sentence for revocation of his federal supervised release.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Des Moines Police Department, the Iowa Division of Narcotics Enforcement, the Iowa Department Public Safety, and multiple other state and federal agencies.
Dark Web Fentanyl Distribution Results in 20-Year SentenceRead the Press Release
WILMINGTON, N.C. – A Washington, North Carolina man was sentenced yesterday to 240 months in prison for the distribution of fentanyl and an associated firearm violation. On June 24, 2021, Dylan Hunter Holcomb pled guilty to charges including conspiring to distribute fentanyl, possessing with intent to distribute fentanyl, and possessing a firearm in furtherance of his drug trafficking crimes.
According to court documents and other information presented in court, Dylan Holcomb, 28, sold counterfeit Xanax and Oxycodone pills across the country on the dark web. Using a high-capacity pill press, Holcomb and others used fentanyl and mixing compounds to mimic the effects of the narcotics. In January 2020, the United States Postal Inspector interceptedseveral suspicious packages coming from the Washington area. Each similarly wrapped package contained blue pills which were made to appear as Oxycodone but contained only fentanyl.
By March 2020, the Beaufort County Sheriff’s Office and the Drug Enforcement Administration discovered the source of these packages—Holcomb’s home in Washington. That month Investigators took Holcomb into custody and seized several bags of fentanyl; over 1,500 counterfeit pills containing fentanyl; a 3D printed firearm and silencer; a high-capacity pill press; several electronics used to access the dark web; and multiple cryptocurrency hardware wallets from Holcomb’s home.
In handing down the 20-year sentence, Chief Judge Richard E. Myers II noted the danger posed by using fentanyl in counterfeit pills and its contribution to the on-going opioid epidemic. After extensive interactions with the State criminal justice system, Holcomb faced the serious consequences associated with these lethal narcotics in the Federal system.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Drug Enforcement Administration, the Beaufort County Sheriff’s Office, the United States Postal Inspection Service, and the North Carolina State Bureau of Investigation investigated the case and Assistant U.S. Attorney J.D. Koesters prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:20-CR-110-M.
Convicted Felon Sentenced to 17 Years in Federal Prison for Conspiring to Distribute and Possess with Intent to Distribute Methamphetamine and Unlawfully Possessing a FirearmRead the Press Release
Jackson, TN – Revosea Richardson, 27, of Selmer, Tennessee, has been sentenced to 205 months in federal prison for conspiring with others to distribute and possess with the intent to distribute over 500 grams of methamphetamine and for being a felon in possession of a firearm. Joseph C. Murphy, Jr., United States Attorney, announced the sentence today.
According to information presented in court, on January 23, 2019, a deputy from the McNairy County Sheriff’s Office, observed a Nissan Altima heading eastbound on Hwy. 57 run a stop-sign. The driver, identified as Haleigh Amerson, did not have a driver's license. The defendant, Richardson, told the officer he had warrants and he was immediately placed into custody. Officers could also smell marijuana coming from the vehicle, so a search of the vehicle was conducted.
While searching the vehicle, officers located a Taurus 9mm handgun in Richardson's backpack. A search of Richardson’s person revealed a bag containing a white crystallized substance, which was later confirmed by DEA laboratory to be 20 grams of actual methamphetamine/ICE, a bag containing around four grams of marijuana, and one Alprazolam pill.
Richardson is a convicted felon, having been previously convicted of multiple felony offenses, including possessing over .5 grams of methamphetamine with the intent to sell, possessing over .5 ounces of marijuana with the intent to deliver, and unlawful possession of a firearm, and was thus prohibited from possessing firearms on January 23, 2019.
On August 27, 2020, during an interview with law enforcement, Richardson admitted to buying and selling methamphetamine for the past 3 to 4 years, and he provided specific amounts of methamphetamine he purchased for resale during that time. In all, Richardson was held responsible for 20 grams of actual methamphetamine/ICE and approximately 1.4 kilograms of a mixture and substance containing a detectable amount of methamphetamine.
On January 11, 2022, Chief United States District Judge S. Thomas Anderson sentenced Richardson to 205 months' imprisonment to be followed by five years of supervised release. There is no parole in the federal system.
This case was investigated by the McNairy County Sheriff’s Office, FBI Safe Streets Task Force, the Drug Enforcement Administration (DEA) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Recognition is also given to the 25th Judicial District Attorney General’s Office for their assistance in this case.
Assistant United States Attorneys Josh Morrow and Christie Hopper prosecuted this case on behalf of the government.
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Convicted Felon Pleads Guilty to Possession of a FirearmRead the Press Release
Memphis, TN – Demitrious Davis, 33, has pleaded guilty to possessing a firearm. Joseph C. Murphy, Jr., United States Attorney announced the plea today.
According to information presented in court, on June 29, 2021, a detective with the Shelby County Sheriff’s Office attempted to conduct a traffic stop on a vehicle operated by Demitrious Davis. As the detective activated the blue lights, the vehicle stopped. When the detective approached, Davis backed up and turned his tires in a maneuver to drive away. The detective gave commands to stop. As Davis continued to accelerate, the detective shot at Davis, striking him in the arm. Davis’ front bumper struck the detective, causing leg and shoulder injuries. Davis continued to drive away and crashed into a mailbox.
A Shelby County Sheriff’s deputy observed Davis running from the vehicle with a handgun. During the foot pursuit, Davis threw the handgun into a yard, where it was later recovered by detectives. The firearm was identified as a Glock, model 19, 9mm caliber pistol – it was loaded with thirty (30) rounds of ammunition.
On January 21, 2022, the defendant pled guilty to one count of being a convicted felon in possession of a firearm. The sentencing is set for April 21, 2022, before United States District Judge Tommy L. Parker, where the defendant faces up to 10 years in federal prison and three years’ supervised release.
The defendant has several felony convictions. In 2014, he was convicted for violation of 18 U.S.C. § 922(g)(1) – for illegally possessing a firearm, he was sentenced to 34 months imprisonment and 3 years supervised release. The defendant was on supervised release when he committed this crime, and a violation is pending in this matter.
This case was investigated by the Shelby County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Assistant United States Attorney Wendy K. Cornejo is prosecuting this case on behalf of the government.
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Columbia Man Sentenced for Illegal FirearmRead the Press Release
JEFFERSON CITY, Mo. – A Columbia, Missouri, man has been sentenced in federal court for illegally possessing a firearm.
Jeremiah Ezekiel Brown, 37, was sentenced by U.S. District Judge Nanette K. Laughrey on Wednesday, Jan. 26, to 10 years in federal prison without parole. This is the maximum statutory penalty for this offense.
Brown was found guilty at trial on Sept. 20, 2021, of being a felon in possession of a firearm.
Brown was arrested by a Columbia police detective during a traffic stop on Nov. 24, 2020. The detective searched him and found a loaded Glock 9mm semi-automatic handgun in Brown’s waistband. Detectives searched the vehicle Brown was driving and found a backpack in the front seat that contained a total of 37 grams of marijuana, 10 packages that contained marijuana edibles, 14 doses of LSD, a baggie of .5 grams of cocaine and two Alprazolam bars. They also found an empty Glock extended magazine with a 31-round capacity and a pair of brass knuckles.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Brown has prior felony convictions for possession of stolen things, possession of a controlled substance, robbery, receiving stolen property and attempted delivery of a controlled substance into a prison.
This case was prosecuted by Assistant U.S. Attorneys Aaron M. Maness and Ashley S. Turner. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Columbia, Mo., Police Department.
Cleveland man sentenced to 10 years for drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Genghis Taylor, of Cleveland, Ohio, was sentenced today to 120 months of incarceration for a drug charge, United States Attorney William Ihlenfeld announced.
Taylor, also known as “G,” 38, pleaded guilty in July 2021 to one count of “Distribution of Cocaine Base Within 1,000 Feet of a Protected Location.” Taylor admitted to selling cocaine base, also known as “crack,” near Riverview Towers in Ohio County in May 2020.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
Clayton Deardorff and Stepping Stones Healthcare LLC Agree to Pay $589,000 to Resolve False Claims Act AllegationsRead the Press Release
Darren J. LaMarca, United States Attorney for the Southern District of Mississippi, announced today that Clayton Deardorff (“Deardorff”) and his company, Stepping Stones Healthcare, LLC (“SSH”), have agreed to pay $589,000 to resolve allegations that they engaged in an illegal kickback arrangement with a Mississippi Critical Access Hospital (“CAH”) in violation of the False Claims Act (“FCA”).
Medicare designated CAHs are small rural hospitals limited to 25 beds that operate in medically underserved areas. Medicare reimburses most acute care hospitals under a fixed prospective payment system based on a patient’s diagnosis or treatment. However, to encourage hospital coverage in rural, underserved areas, Medicare exempts CAHs from this fixed prospective payment system and instead reimburses 101% of actual allowable costs of providing Medicare beneficiaries with outpatient, inpatient, laboratory, ambulance, and post-acute care services.
This settlement resolves allegations that were brought in a lawsuit filed under the qui tam whistleblower provisions of the FCA, 31 U.S.C. § 3730(b), by Mitchell Monsour and Stephen Vaughan. The FCA permits private parties to sue on behalf of the government for false claims and to receive a share of any recovery. The FCA permits relators, like Monsour and Vaughan, to continue with the FCA litigation on behalf of the government as they did here after the United States filed a notice of non-intervention. In this case, the United States continued its investigation and settlement negotiations with Deardorff and SSH and is a signatory on the settlement agreement. Monsour and Vaughan will receive $159,000 of the settlement proceeds.
As alleged in Relators’ complaint, Deardorff and SSH submitted, or cause to be submitted, false claims for payment to the Medicare Program as the result of a kickback arrangement with Franklin County Memorial Hospital, a CAH located in Meadville, Mississippi, for the recruitment and referral of intensive outpatient therapy (“IOP”) patients. In addition to a monthly fixed fee payment arrangement, Relators contend that beginning in 2010 Deardorff and SSH illegally charged Franklin County Hospital 10% of gross charges billed for IOP services (“deferred fees”). These “deferred fees” are alleged to constitute illegal remuneration in exchange for the recruitment and referral of IOP patients.
The FCA claims settled are allegations only, and there has been no determination of liability.
Clairton Drug User Sentenced to Prison for Illegally Possessing a FirearmRead the Press Release
PITTSBURGH, PA -- A former resident of Clairton, Pennsylvania, has been sentenced in federal court to 14 months’ imprisonment followed by three years of supervised release on his conviction of violating federal firearms laws, United States Attorney Cindy K. Chung announced today.
United States District Judge Cathy Bissoon imposed the sentence on Deonte Reddick, age 21.
According to information presented to the court, Reddick was sentenced to count one of the Indictment, which charged him with being illegal drug user in possession of a firearm. On May 13, 2021, the Allegheny County Police were conducting a violence suppression effort following shootings in the Clairton area when they approached a vehicle. As they approached, one of the occupants, who was wanted, exited the vehicle and began to run. Ultimately, detectives were able to capture that individual and found a firearm on his person.
When the detectives returned to the vehicle, they observed multiple firearms in plain view, including one in the possession of Reddick. Reddick was, at that time, an illegal drug user and therefore precluded from possessing a firearm under federal law.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
United States Attorney Chung commended the Allegheny County Police for the investigation leading to the successful prosecution of Reddick. The Bureau of Alcohol, Tobacco, Firearms and Explosives also assisted in the investigation.Cincinnati area man charged with perpetrating an online romance scam, laundering proceedsRead the Press Release
CINCINNATI – A federal grand jury has charged a former Fairfield and Cincinnati man with crimes related to an online romance fraud scheme.
De-love Kofi Amuzu, 23, was arrested on Jan. 13 in the Bronx and will appear in federal court in Cincinnati at 1:30pm today.
According to the 10-count indictment, from 2018 until his arrest in 2022, Amuzu conspired with others to perpetrate an online romance fraud scheme and to launder the proceeds of the scheme, including by wiring funds to Ghana. The co-conspirators allegedly created profiles on dating websites using false information and pictures of other individuals.
It is alleged that the co-conspirators led victims to believe they were in a romantic relationship with the person pictured in the false online profile and then made misrepresentations to the victims that induced them to transfer or mail money and valuables to members of the conspiracy.
According to the charging document, Amuzu used multiple bank accounts in furtherance of the scheme, including a bank account opened in the name of a shell company, Obdomdel Management Agency LLC.
Amuzu is charged with conspiring to commit and committing wire and mail fraud, as well as conspiring to launder money and committing money laundering. Each is a federal crime punishable by up to 20 years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Butler County Prosecutor Michael T. Gmoser and Butler County Sheriff Richard K. Jones announced the charges. U.S. Attorney Parker also recognized the contributions of Garrett Baker and Susan Monnin of the Butler County Prosecutor’s Office, as well as Butler County Prosecutor’s Investigator Steve Isgro. Assistant United States Attorney Julie D. Garcia is representing the United States in this case.
An indictment is merely an allegation, and defendants are presumed innocent unless proven guilty in a court of law.
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Chicago Man Sentenced to Federal Prison for Possessing Crack Cocaine with the Intent to Distribute itRead the Press Release
A man who was found with nearly 75 grams of crack cocaine and admitted that he owed someone $13,000 for “fronting” him 226.8 grams of crack cocaine, was sentenced today to ten years in federal prison.
Desmond McSwain, age 31, from Chicago, Illinois, received the prison term after a guilty plea on June 28, 2021, to possession with intent to distribute a controlled substance after having previously been convicted of a serious felony drug offense.
Evidence at the plea and sentencing hearings showed that McSwain sold crack cocaine on multiple occasions in May and June of 2020. On August 28, 2020, McSwain was a passenger in a car that also contained two children. When law enforcement stopped the vehicle, they smelled an overwhelming odor of marijuana coming from the car. Law enforcement found just under 75 grams of crack cocaine, marijuana, and over $1,000 in cash. McSwain had previously been convicted of multiple felony offenses for trafficking heroin in Illinois.
McSwain was sentenced in Cedar Rapids by United States District Court Judge Linda Reade. McSwain was sentenced to 120 months’ imprisonment and must also serve an 8-year term of supervised release after the prison term. There is no parole in the federal system.
McSwain is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorneys Devra Hake and Alex Geocaris, and it was investigated by the Dubuque Police Department and the Dubuque Drug Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-01002.
Follow us on Twitter @USAO_NDIA.
Centerville Man Pleads Guilty to Role in Heroin Trafficking OrganizationRead the Press Release
BOSTON – A Centerville man pleaded guilty today in federal court in Boston to his role in a wide-ranging heroin trafficking conspiracy.
Vinicius Zangrande, 38, pleaded guilty to conspiracy to distribute and possession with intent to distribute heroin. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for April 27, 2022.
In May 2019, Zangrande and 10 co-defendants were arrested and charged with various drug distribution offenses. According to court documents, in 2019, law enforcement began investigating a Cape Cod drug trafficking organization, allegedly led by Edwin Otero. It is alleged that Otero and his co-conspirators distributed large quantities of heroin throughout Cape Cod, including Hyannis, Mashpee, Centerville and Osterville as well as Pawtucket, R.I. The investigation identified Zangrande as Otero’s driver, in which he provided transportation directly for Otero or transported drugs on Otero’s behalf. In addition to moving sizeable quantities of heroin, the investigation revealed that members of the Otero crew allegedly shot at a drug customer over an unpaid debt and videotaped themselves beating another man they incorrectly believed had provided information to the police. As a result of the investigation, heroin, oxycodone, packaging materials, scales, a finger press, cash and three firearms, including a 9-millimeter assault-type weapon that fit an ammunition clip recovered from the drug debt shooting, were seized.
Zangrande is the 5th defendant to plead guilty in the case. The remaining defendants have pleaded not guilty and are pending trial.
United States Attorney Rachael S. Rollins; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Barnstable Police Chief Matthew K. Sonnabend made the announcement today. Assistant U.S. Attorneys Christopher Pohl and Lauren Graber of Rollins’ 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.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Cayuga County Man Sentenced to 180 Months for Child Pornography Crimes and Possession of a Firearm by a FelonRead the Press Release
SYRACUSE, NEW YORK - Richard J. Potter, Jr., age 56, of Springport, New York, was sentenced yesterday to a term of 180 months (15 years) in prison for receiving and possessing child pornography and for possession of a firearm as a convicted felon announced United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his previously entered guilty plea, Potter admitted that from June of 2018 to on or about January of 2019, he used the Internet to search for and receive child pornography. Potter also admitted that on January 23, 2019 he possessed a total of 33,066 images and 206 videos of child pornography on 35 separate electronic devices, and 451 images of child pornography in a cloud storage account that he maintained and controlled. Also located during the execution of a search warrant at the defendant’s residence in Springport was a 12 gauge shotgun illegally possessed by the defendant, a previously convicted felon.
United States District Judge David N. Hurd also imposed a 15-year term of supervised release, which will start after Potter is released from prison. Potter will also be required to register as a sex offender.
This case was investigated by the FBI Syracuse Mid-State Child Exploitation Task Force, comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI) and Computer Crimes Unit (CCU), and prosecuted by Special Assistant U.S. Attorney Adrian S. LaRochelle as a part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Butte man who trafficked pounds of meth sentenced to eight years in prisonRead the Press Release
MISSOULA — A Butte man who admitted to trafficking large quantities of methamphetamine, including receiving 20 pounds of the drug for distribution in Montana, was sentenced today to eight years in prison to be followed by five years of supervised release, U.S. Attorney Leif M. Johnson said.
Travis Bridger Soderberg, 47, pleaded guilty in August 2021 to possession with intent to distribute meth.
U.S. District Judge Dana L. Christensen presided.
In court documents, the government alleged that from October 2019 until about November 2020, Soderberg distributed meth in Butte and elsewhere in Montana. Various witnesses told agents that they purchased pounds of meth from Soderberg. On one occasion, Soderberg received 20 pounds of meth for distribution in Montana. Twenty pounds of meth is the equivalent of about 72,480 doses. Investigators also determined that Soderberg wired money to sources of supply in California to pay for the meth.
Assistant U.S. Attorney Ryan G. Weldon prosecuted the case, which was investigated by the Drug Enforcement Administration, U.S. Postal Service, Homeland Security Investigations and the Montana Division of Criminal Investigation.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Brother and Sister Indicted on Drug Conspiracy and Other Charges Following Investigation of Fentanyl SalesRead the Press Release
WASHINGTON – A brother and sister were arrested yesterday on charges stemming from an investigation by federal and local law enforcement agencies into a drug operation that was distributing Fentanyl, including to a woman who overdosed twice, once leading to her death.
The indictments, which were unsealed today, were announced by U.S. Attorney Matthew M. Graves, Jarod Forget, Special Agent in Charge of the Washington Division Office of the U.S. Drug Enforcement Administration (DEA), and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Larry Jerome Eastman, 21, of Temple Hills, Maryland, and his sister, Justice Michelle Eastman, 25, of Washington, D.C. were arrested following an investigation into the Fentanyl overdose death of a woman in Washington, D.C. They are charged in an indictment with conspiracy to distribute and possess with intent to distribute Fentanyl, unlawful distribution of Fentanyl, resulting in serious bodily injury, and unlawful distribution of Fentanyl, resulting in death. The indictment was returned on Jan. 18, 2022, in the U.S. District Court for the District of Columbia. Both defendants made their initial court appearances this afternoon and were ordered held pending further proceedings.
“As this case demonstrates, Fentanyl continues to have a devastating impact on our community,” said U.S. Attorney Graves. “We are committed to identifying and prosecuting those who distribute Fentanyl and other illicit drugs and doing all we can to prevent future tragedies.”
“Charges like this, demonstrate our commitment to combatting the alarming number of drug overdose-related deaths, and our shared, tough stance on drug dealers peddling this poison to unwitting victims across our city,” said Special Agent in Charge Forget. “We are working with our area partners every day to root out the drug problem at its source and target drug dealers who deal overdose-prone drugs to our area's most vulnerable. By pursuing 'death resulting' charges, we seek to hold those who poison us with Fentanyl accountable for the violent crimes they are knowingly committing in our communities.”
The indictments followed an investigation into the April 6, 2021, death of a 20-year-old woman in Southeast Washington from acute Fentanyl intoxication. According to the government’s evidence, the same woman survived an earlier overdose in the fall of 2020; she was revived that time when paramedics administered Narcan. At the time of the fatal overdose, a white powder was discovered by police on a glass-topped coffee table at the woman’s apartment and later determined to be Fentanyl. As noted by the DEA, because of its potency and low cost, drug dealers nationally have been mixing Fentanyl with other drugs including heroin, methamphetamine, and cocaine, increasing the likelihood of a fatal interaction.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The charge of conspiracy to distribute and possess with intent to distribute Fentanyl carries a statutory maximum of 20 years in prison. Unlawful distribution of Fentanyl, resulting in serious bodily injury or death, carries a statutory mandatory minimum penalty of not less than 20 years with a maximum of life. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case is being investigated by the Washington Division Office of the DEA and the Metropolitan Police Department. The case is being prosecuted by Assistant U.S. Attorney David T. Henek, of the Violent Crime and Narcotics Trafficking Section of the U.S. Attorney’s Office for the District of Columbia.
Blackstone Labs Founder Sentenced for Conspiracy to Sell Anabolic Steroids and Unlawful Dietary SupplementsRead the Press Release
A South Florida man who founded a sports and dietary supplements retailer was sentenced today to 54 months in prison for conspiring to sell illegal anabolic steroids and other products marketed as dietary supplements that were unlawful under federal law.
According to court documents, Aaron Singerman, 41, of Delray Beach, Florida, founded and operated Blackstone Labs LLC, a Boca Raton-based sports and dietary supplements retailer. Singerman is the former CEO of Blackstone. U.S. District Court Judge William P. Dimitrouleas of the Southern District of Florida sentenced Singerman to 54 months in prison and ordered him to forfeit $2.9 million.
In pleading guilty, Singerman admitted to leading a conspiracy to sell products through Blackstone labeled as dietary supplements that were illegal under federal law because they were not approved by the FDA and were controlled substances. According to court documents, Blackstone defrauded the FDA as part of the scheme.
“Selling products labelled as dietary supplements that actually contain controlled substances and unapproved drugs is illegal and potentially dangerous,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Department of Justice will work with its law enforcement partners to prosecute dietary supplement makers who ignore the law and disregard public safety for monetary gain.”
“Drug products that are disguised as dietary supplements can pose a risk to the health of U.S. consumers,” said Special Agent in Charge Justin C. Fielder of the U.S. Food and Drug Administration Office of Criminal Investigations (FDA OCI) Miami Field Office. “We will continue to investigate and bring to justice those who jeopardize the public health.”
Singerman specifically admitted that he conspired with others from 2012 through 2017 to sell products that were unapproved new drugs and/or illegal controlled substances under the Designer Anabolic Steroid Control Act. The defendant admitted that he and his co-conspirators lied to consumers by characterizing Blackstone products as safe and legal dietary supplements. In addition, he falsely represented that the products were made in “FDA approved” registered facilities that followed all required regulations, when in fact they were not. Singerman also admitted to controlling a supplement manufacturer that fraudulently imported raw ingredients for their products from China. Singerman admitted to selling other products in violation of the Food, Drug & Cosmetic Act, including the synthetic stimulants DMAA and DMBA, and the chemical picamilon. Singerman and his co-conspirators ignored injury reports from consumers and did not notify the FDA of such complaints, even when required by law.
Six additional individual defendants and three other corporations previously pleaded guilty to charges related to the conspiracy. One additional defendant, James Boccuzzi, was convicted of conspiracy to distribute controlled substances and conspiracy to defraud the FDA following a jury trial in December 2021. All 10 of these additional defendants are scheduled to be sentenced by Judge Dimitrouleas in February.
FDA OCI investigated the case.
Trial Attorneys Alistair Reader and Stephen Gripkey, Senior Litigation Counsel David Frank and Assistant Director John W. Burke of the Civil Division’s Consumer Protection Branch are prosecuting the cases with assistance from Assistant U.S. Attorney Daren Grove of the U.S. Attorney’s Office for the Southern District of Florida. Laura Akowuah, Brian Furlong and Sarah Hawkins from the FDA’s Office of Chief Counsel provided assistance with the investigation and prosecution.
Albuquerque man faces charge of bank robberyRead the Press Release
ALBUQUERQUE, N.M. – Andres Manuel Castro Aragon, 29, of Albuquerque, made an initial appearance in federal court today facing a charge of bank robbery. He will remain in custody pending a preliminary and detention hearing scheduled for Jan. 31.
According to a criminal complaint, on Jan. 25, Castro Aragon allegedly entered the First Convenience Bank located inside a Walmart on Coors Boulevard in Albuquerque and presented a demand note to the teller, implying he had a firearm. The teller complied and Castro Aragon allegedly fled with a large amount of cash. After security personnel observed Castro Aragon allegedly crossing I-40 on a pedestrian bridge, Albuquerque police located Castro Aragon, who allegedly had cash protruding from his pockets, and detained him.
“The U.S. Attorney’s Office is committed to protecting our financial institutions and the people they serve” said Fred Federici, United States Attorney for the District of New Mexico. “Anyone who believes bank robbery is a quick means to easy money should understand that this is a serious crime with severe consequences. That quick robbery means up to 20 years in prison, and more if a gun is used.”
“Bank robbery is not only a crime against the financial institutions so many of us depend on, it's a threat to the safety of the employees, general public and law enforcement officers,” said Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office. “The FBI and our partners are committed to tracking down each and every bank robber and bringing them to justice. We are asking for the public's help. Take a look at our website - bankrobbers.fbi.gov - and if you have any information, call us immediately at 1-800-CALL-FBI. Together, we can make our community safer.”
A complaint is only an allegation. A defendant is considered innocent unless and until proven guilty. If convicted, Castro Aragon faces up to 20 years in prison.
The FBI Albuquerque Field Office investigated this case with assistance from the Albuquerque Police Department. Assistant United States Attorney Eva M. Fontanez is prosecuting the case.
Acoma man pleads guilty to involuntary manslaughter in Indian CountryRead the Press Release
ALBUQERQUE, N.M. – Anthony Faustine, 41, of Pueblo of Acoma, New Mexico, and an enrolled member of the Pueblo of Acoma, pleaded guilty in federal court on Jan. 26 to involuntary manslaughter in Indian Country. Faustine will remain in custody pending sentencing, which has not been scheduled.
Faustine was indicted by a federal grand jury on June 9, 2020. According to the plea agreement, on April 22, 2020, Faustine attempted to evade law enforcement while driving with a blood alcohol level at twice the legal limit. Faustine lost control of the vehicle. As the vehicle rolled, a passenger, identified in court records as John Doe, was ejected and died from injuries sustained in the crash. The incident occurred on the Pueblo of Laguna.
By the terms of the plea agreement, Faustine faces a sentence of five years and 10 months in prison.
The Bureau of Indian Affairs investigated this case with assistance from the Laguna Police Department. Assistant U.S. Attorney Nicholas J. Marshall is prosecuting the case.
A Convicted Felon Sentenced to 10 Years in Federal Prison for Unlawfully Possessing a Stolen FirearmRead the Press Release
Jackson, TN – John Davidson Long, 28, has been sentenced to 120 months in federal prison for being a convicted felon unlawfully possessing a stolen firearm. Joseph C. Murphy, Jr., United States Attorney, announced the sentence today.
According to information presented in court, on September 9, 2020, at approximately 10:30 p.m., Jackson Police Department’s Gang Enforcement Unit was monitoring the overt ‘Police’ cameras in the Parkway East Apartment Complex at Carver Cove in Jackson, Tennessee, because a large number of Vice Lord gang members had gathered in that area. While monitoring the cameras, Long was observed standing outside of a car with a black handgun protruding from his waistband. As a convicted felon, Long is prohibited from possessing firearms.
As officers responded to the area, Long got into the passenger seat of a black Nissan Altima and fled. JPD Officers conducted a traffic stop on the vehicle for a window tint violation. Jocelyn Kidd was identified as the driver of the vehicle, and Long was the front seat passenger. Ms. Kidd gave law enforcement consent to search the vehicle. During the search, officers located a black Taurus .9mm handgun hidden inside a dash panel in front of where Long had been seated. That handgun matched the description of the firearm that the officer observed protruding from Long’s waistband. The handgun was loaded with one round in the chamber and 11 rounds in the magazine. Further investigation revealed the firearm was stolen in August 2020.
On January 27, 2022, United States District Judge J. Daniel Breen sentenced Long to 120 months' imprisonment - the maximum sentence allowed by law for possessing a stolen firearm. He will also serve three years of supervised release upon his release from prison. There is no parole in the federal system.
This case was investigated by the Jackson Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Assistant United States Attorney Josh Morrow prosecuted this case on behalf of the government.
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26 January 2022
Wheeling man sentenced for a firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – Randolph Michael Smith, of Wheeling, West Virginia, was sentenced to 92 months of incarceration for a firearms charge, United States Attorney William Ihlenfeld announced.
Smith, 42, pleaded guilty in August 2021 to one count of “Unlawful Possession of a Firearm.” Smith, a person prohibited from having firearms because of prior convictions, admitted to having a 9mm semi-automatic pistol in August 2020 in Ohio County.
Assistant U.S. Attorney Clayton J. Reid prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, & Explosives and the Wheeling Police Department investigated.
U.S. District Judge John Preston Bailey presided.
Warren County Man Sentenced to 198 Months for Possessing and Receiving Child Pornography, and Obstruction of JusticeRead the Press Release
ALBANY, NEW YORK – Terry Lajeunesse, age 50, of Pottersville, New York, was sentenced today to 198 months in prison for possessing and receiving child pornography, and for obstruction of justice.
The announcement was made by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Lajeunesse pled guilty on August 12, 2021, admitting to possessing and receiving images and videos of child pornography on his cell phone. Lajeunesse further admitted to asking a minor to falsely take responsibility for the crimes that Lajeunesse himself committed. At the time Lajeunesse possessed and received child pornography, he was on probation following a state conviction for possessing a sexual performance by a child less than 16 years old.
Chief United States District Judge Glenn T. Suddaby also imposed a 20-year term of supervised release, which will begin after Lajeunesse is released from prison. Lajeunesse will also be required to register as a sex offender.
This case was investigated by the FBI and its Child Exploitation Task Force, which includes members of the New York State Police, and the Warren County Probation Department, and is being prosecuted by Assistant U.S. Attorney Ashlyn Miranda.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Waldorf Air Force Lieutenant Pleads Guilty to Transportation of Child PornographyRead the Press Release
Greenbelt, Maryland – Jason Daniel Ort, age 36, of Waldorf, Maryland, pleaded guilty today to transportation of child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Brigadier General Terry Bullard, Commander Air Force Office of Special Investigations.
According to his guilty plea, between September 28, 2020, and October 1, 2020, Ort knowingly transported videos containing child pornography from Maryland to New York.
As stated in his plea agreement, on October 2, 2020, the Onondaga County Sheriff’s Office of New York (OSCO) received a complaint from an adult complainant (Individual 1) that Ort had placed a black spy camera in Individual 1’s bedroom while visiting the individual’s home. On October 1, 2020, Individual 1 located the camera, which contained an SD card. Upon review of the SD card’s contents, Individual 1 discovered a video of a minor female using the bathroom and lifting up her dress to wipe herself. Individual 1 observed a video of Ort entering the bathroom and adjusting the camera. According to military records, Ort is a First Lieutenant in the U.S. Air Force stationed in Maryland and was scheduled for leave during that time to visit Individual 1’s residence in New York.
In an interview with OSCO officers, Ort admitted to placing the camera in Individual 1’s bedroom and that he placed the camera in several other locations, including in a bathroom at another residence in Pocomoke City, Maryland. Ort said that he watched the videos for sexual pleasure and knew that his actions were wrong.
As a result of their investigation, OSCO seized multiple electronic items in New York, including the spy camera containing the SD card and Ort’s laptop. A subsequent forensic review of the SD card revealed at least 10 video files depicting minor females using the bathroom and bathing. Ort recorded these videos using the spy camera placed in the bathroom of the Pocomoke City, Maryland residence in and around December 2019 and January 2020. The camera appeared to be positioned under the sink, facing the toilet and the shower. Throughout the videos, four minor females were recorded with their genitals exposed while either showering or using the toilet.
A forensic review of the Ort’s laptop seized in New York revealed hundreds of files constituting child pornography. Some of the files depicted prepubescent minors engaged in sex acts.
As detailed in his plea agreement, on November 16, 2020, law enforcement executed a search warrant at Ort’s Waldorf, Maryland residence and recovered numerous electronic devices including a 1 TB digital hard drive, a 500 GB hard drive, and a second laptop with a 1 TB hard drive.
Upon review of one of the hard drives, law enforcement found duplicate video files to those found on the SD card depicting the minor victims. The files were located under the folder labeled “Jason’s Photos\OTS Flight 2-10 (Pictures & Video)\EMLEX (Emergency Management Leadership Exercise)\Info Assurance.”
Further, a forensic review of the second laptop located at Ort’s residence revealed a search for “production of child pornography charge” and “Citizen’s Guide to U.S. Federal Law on Child Pornography” on October 7, 2020.
Ort and the government have agreed that, if the Court accepts the plea agreement, Ort will be sentenced to between 10 years and 15 years in federal prison. U.S. District Judge Theodore D. Chuang has scheduled sentencing for May 4, 2022, at 2 p.m.
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 Attorney’s 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. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Erek L. Barron commended the FBI. The Air Force Office of Special Investigations, and the Onondaga County Sheriff’s Office of New York for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Jessica Collins who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Venezuelan National Apprehended at Sea Pleads Guilty to Conspiracy to Possess Cocaine on Board a Vessel Subject to the Jurisdiction of the United StatesRead the Press Release
St. Croix, VI – United States Attorney Gretchen C.F. Shappert announced today that 33-year old Venezuelan national Johan Garcia Suarez, one of eleven Venezuelan nationals apprehended at sea off of St. Croix, pleaded guilty today to conspiring to possess with intent to distribute over 5 kilograms of cocaine while on board a vessel subject to the jurisdiction of the United States.
According to court documents, on the evening of September 25, 2019, the United States Coast Guard (USCG) Cutter DONALD HORSLEY intercepted a suspicious 55-foot vessel named LA GRAN TORMENTA displaying Venezuelan nationality indicia approximately 38 nautical miles south of St. Croix. Occupants of the LA GRAN TORMENTA did not reply to DONALD HORSLEY'S efforts to engage in questioning of the crew, and upon detection, the LA GRAN TORMENTA changed course and jettisoned packages. USCG Cutter DONALD HORSLEY crew members subsequently retrieved two bales from the water. The two jettisoned bales contained packages with brick shaped objects, which were subsequently laboratory tested and found to contain approximately 49 kilograms of cocaine hydrocholoride (powder cocaine).
After requesting and receiving permission from the flag state (Venezuela) to stop the vessel, USCG personnel attempted a right of visit boarding, which was ineffective because crew on the LA GRAN TORMENTA disregarded Coast Guard personnel’s instructions. Eventually USCG personnel obtained control of the LA GRAN TORMENTA through use of an "entanglement tactic" which stopped the vessel’s engine. A USCG counter-drug boarding team encountered 11 persons, including the defendant.
Johan Garcia Suarez’s sentencing date has yet to be scheduled. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The other ten defendants are scheduled for trial on July 18, 2022 in federal court. They face a mandatory minimum of 10 years in prison and maximum of life if convicted.
The case was investigated by the U.S. Coast Guard, Customs and Border Protection, and the U.S. Drug Enforcement Administration (D.E.A.). It is being prosecuted by Assistant U.S. Attorney Melissa P. Ortiz. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at http://www.justice.gov/OCDETF.
Ulster County Man Sentenced to 60 Months for Conspiring to Commit COVID-19 Relief FraudRead the Press Release
ALBANY, NEW YORK – Jean R. Lavanture, a/k/a “JR,” a/k/a “Rudy Lavanture,” age 49, of Saugerties, New York, was sentenced today to 60 months in prison for conspiring to commit bank fraud and conspiring to commit wire fraud.
The announcement was made by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Lavanture pled guilty on September 2, 2021, admitting to fraudulently obtaining $4,870,781 in government-backed loans meant for businesses struggling with the financial effects of the coronavirus pandemic. He conspired with Sean M. Andre to obtain $4,309,581 in Paycheck Protection Program (PPP) loans between June and August 2020, by submitting fraudulent loan applications in the names of four inactive companies that Lavanture controlled. Each loan application grossly misrepresented each company’s employees and payroll. Each application also included false corporate tax documents that Andre created as part of the scheme. Lavanture admitted that none of his companies actually had a payroll or employees.
Lavanture also admitted that, on his own, he fraudulently obtained $561,200 in Economic Injury Disaster Loans (“EIDLs”) from the U.S. Small Business Administration (SBA).
Chief United States District Judge Glenn T. Suddaby also imposed a 3-year term of post-imprisonment supervised release, ordered Lavanture to pay restitution in the amount of $4,870,781, and ordered Lavanture to forfeit proceeds of the fraud, including a motel property he purchased in Rockaway Beach, Missouri; $476,253.25 in U.S. currency; a 2007 Bentley Continental; a 2013 BMW X5; and the balances of 19 bank accounts at a total of 9 banks, into which Lavanture had deposited fraud proceeds.
Andre, age 31, of Brooklyn, New York, pled guilty on May 26, 2021 to conspiring to commit bank fraud and conspiring to commit wire fraud. Andre’s sentencing is scheduled for February 24, 2022.
Jamur Pharmes, age 44, of Hampton, Georgia, pled guilty on July 1, 2021 to conspiring to commit wire fraud. He admitted that he and Lavanture conspired to submit fraudulent EIDL applications in the names of two companies connected to Pharmes. Pharmes obtained approximately $159,900 as a result of the scheme, and paid a $10,000 fee to Lavanture. Pharmes is scheduled to be sentenced on February 24, 2022.
This case was investigated by the FBI, Internal Revenue Service (IRS)-Criminal Investigation, and the SBA Office of Inspector General, and was prosecuted by Assistant U.S. Attorneys Michael Barnett and Joshua R. Rosenthal.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
U.S. Navy Commander Pleads Guilty in the Run up to the Seventh Fleet Navy Bribery TrialRead the Press Release
Assistant U.S. Attorneys Mark W. Pletcher (619) 546-9714, Michelle Wasserman (619) 546-8431, Valerie Chu (619) 546-6750, and David Chu (619) 546-8266
NEWS RELEASE SUMMARY – January 26, 2022
SAN DIEGO – U.S. Navy Commander Stephen Shedd pleaded guilty in federal court today to bribery charges, admitting that he and eight other indicted leaders of the U.S. Navy’s Seventh Fleet received more than $250,000 in meals, entertainment, travel and hotel expenses, gifts, cash and the services of prostitutes from foreign defense contractor Leonard Glenn Francis.
Shedd is one of nine members of the Seventh Fleet indicted by a federal grand jury in March 2017 for conspiring with and receiving bribes from Francis, the owner and CEO of Singapore-based Glenn Defense Marine Asia, which provided services for U.S. Navy ships in port, including tugboats; fenders; security; food; fuel; water; trash and waste removal; and transportation.
Shedd is the third of the Seventh Fleet defendants to plead guilty. The trial of the remaining defendants is scheduled to begin on February 28, 2022. The remaining six defendants - who are accused of conspiring to trade military secrets and substantial influence for sex parties with prostitutes and luxurious dinners and travel, among other lavish things of value - include U.S. Navy Rear Admiral Bruce Loveless; Captains David Newland, James Dolan, David Lausman and Donald Hornbeck; and Commander Mario Herrera.
The overarching fraud and bribery investigation has resulted in federal criminal charges against 34 U.S. Navy officials, defense contractors and the GDMA corporation. So far, 28 of those have pleaded guilty, admitting collectively that they accepted millions of dollars in luxury travel and accommodations, meals, lavish gifts, or services of prostitutes, among other things of value, from Francis in exchange for helping GDMA win and maintain contracts and overbill the Navy by over $35 million.
The U.S. Navy’s Seventh Fleet represents a vital piece of the United States military’s projection of power as well as American foreign policy and national security. The largest numbered fleet in the U.S. Navy, the Seventh Fleet is comprised of 60-70 ships, 200-300 aircraft and approximately 40,000 sailors and Marines. The Seventh Fleet is responsible for U.S. Navy ships and subordinate commands that operate in the Western Pacific throughout Southeast Asia, Pacific Islands, Australia, and Russia and the Indian Ocean territories, as well ships and personnel from other U.S. Navy Fleets that enter the Seventh Fleet’s area of responsibility.
According to Shedd’s admissions as set forth in his plea agreement, the defendants informed Francis of planned U.S. Navy ship movements by providing Francis with classified U.S. Navy ship schedules and narrative summaries of those schedules. The defendants provided Francis with internal, proprietary U.S. Navy information. The defendants took official acts and exerted pressure on, advocated before, and provided advice to other U.S. Navy officials, knowing and intending that such advocacy and advice would form the basis for such other officials' decisions to pay GDMA’s claims, overlook inflated invoices, quash bid protests filed by GDMA's competitors, suppress competition in contract awards, and resolve in GDMA’s favor other questions, matters, and controversies regarding GDMA’s husbanding business.
From November 2006 to October 2008, Shedd served as the Seventh Fleet’s South Asia Policy and Planning Officer, where he was, in part, responsible for identifying ports that U.S. Navy ships would visit. From November 2008 to May 2010, Shedd served as a Personnel Distribution Officer stationed in Millington, Tennessee, and thereafter, upon being promoted to Commander, from March 2011 until May 2014, Shedd served as the Executive Officer and later the Commanding Officer of the U.S.S. Milius.
“The defendant has admitted he was one of the many whose allegiance was switched from the Navy to Leonard Francis,” said U.S. Attorney Randy Grossman. “This abdication of the defendant’s duties to the Navy and the United States comes with heavy consequences.”
“Mr. Shedd's disgraceful actions while serving in a sensitive position with the U.S. Navy's 7th Fleet betrayed the standards and expectations of all members of the Armed Forces and jeopardized the Fleet's safety and security,” said Kelly P. Mayo, the Director of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS). “This lengthy investigation demonstrates that DCIS and our law enforcement partners will continually strive to fortify the integrity of the Department of Defense's procurement systems by doggedly pursuing and rooting-out corruption in the Department.”
“Cmdr. Shedd abused his high-level position in the Navy by illegally accepting lavish gifts from Mr. Francis in exchange for providing Mr. Francis classified ship schedules listing numerous ships, specific ports, and dates for the visits far in advance of ship visits,” said NCIS Director Omar Lopez. “NCIS and our law enforcement partners are committed to rooting out bribery and corruption that wastes valuable U.S. taxpayer money and damages the integrity of the Navy.”
Shedd is scheduled to be sentenced on July 21, 2022 before U.S. District Judge Janis L. Sammartino.
DEFENDANT Case Number: 17-CR-0623-JLS
Stephen Shedd Age: 48 Temecula, CA
SUMMARY OF CHARGES
Conspiracy to Commit Bribery, in violation of 18 U.S.C. § 371
Maximum Penalty: Five years in prison, $250,000 fine
Bribery of a Public Official, in violation of 18 U.S.C. § 201(b)(2)
Maximum Penalty: Fifteen years in prison, $250,000 fine
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency
U.S. Attorney’s Office Reaches Settlement with Ashland-based Hospital Resolving Alleged Violations of the Americans with Disabilities ActRead the Press Release
LEXINGTON, Ky. – The U.S. Attorney’s Office reached an agreement on Tuesday with King’s Daughters Medical Center, a private hospital based in Ashland, Kentucky, to resolve allegations that one of the hospital’s outpatient clinics violated the Americans with Disabilities Act (ADA) by turning away patients because they had or were being treated for Opioid Use Disorder (OUD).
According to a complaint submitted by a prospective patient, King’s Daughters Outpatient Behavioral Medicine, the hospital’s outpatient behavioral medicine clinic, refused to accept her as a patient because she was prescribed buprenorphine, a medication used to treat OUD. The complaint prompted investigation pursuant to the ADA into the clinic’s practice of turning away prospective patients who were prescribed medications used to treat OUD, like buprenorphine and methadone, or who were diagnosed with OUD. Individuals receiving treatment for OUD are generally considered disabled under the ADA, which, among other things, prohibits private healthcare providers from discriminating on the basis of disability.
Under the terms of the agreement, King’s Daughters will adopt non-discriminatory admissions policies at the clinic, revise its non-discrimination policy to specifically address discrimination on the basis of OUD, provide training on the ADA and OUD to admissions personnel, pay a civil penalty of $50,000 to the United States, and pay the complainant $40,000 for pain and suffering.
This matter was handled by Assistant U.S. Attorney Carrie Pond, as part of the U.S. Attorney Program for ADA Enforcement, in coordination with the Disability Rights Section of the Department’s Civil Rights Division.
Those interested in finding out more about the ADA or this settlement agreement can call the toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD) or access the Department’s ADA website at http://www.ada.gov. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
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U.S. Attorney’s Office Joins Launch of High School Mentoring Program Targeting Violence and Substance Use PreventionRead the Press Release
PROVIDENCE, R.I. – The United States Attorney’s Office is joining with three Project Safe Neighborhoods community outreach partners in the launch of a 20-week in-school mentoring program for students at Blackstone Academy Charter School. The program focuses on community leadership in nonviolence and substance use prevention. The launch of the program this week coincides with the recognition of National Mentoring Month.
Coordinated by LISC (Local Initiatives Support Corporation) Rhode Island, students assume the roles of community leaders (Mayor, Police Chief, School Principal etc.), and, working alongside mentors from LISC, the U.S. Attorney’s Office, Nonviolence Institute, and Project Weber/RENEW, students prepare proposals on Nonviolence and Substance Use Prevention. They will engage in training on Nonviolence and anti-stigma, and hear from people working on the frontlines to end cycles of violence and substance abuse. Students will use what they learn in the classroom and through direct action serving the community to build solutions for a healthier city. They will deliver their proposals to elected and civic leaders.
“Fighting the devastation visited on our communities by gun violence and substance abuse means more than just effective prosecution strategies,” said U.S. Attorney Zachary A. Cunha. “It means building effective community partnerships to mentor, support, and provide alternatives before lives and communities are destroyed. Our office is proud to join in this critical effort.”
Becki Marcus, Assistant Program Officer at LISC, said, “LISC is thrilled to provide coordinating support for the U.S. Attorney’s Office, Project Weber/ RENEW, and the Nonviolence Institute to teach a class on Community Leadership in Nonviolence and Substance Use Prevention at Blackstone Academy Charter School. LISC is the backbone agency of the Pawtucket Central Falls Health Equity Zone, a community-driven collaborative devoted to addressing social determinants of health. We are excited for this class to engage youth as visionaries and leaders of change to build solutions for nonviolence and health in their communities.
"The Nonviolence Institute (NVI) is very excited to have an opportunity to work with Blackstone Academy in our mission to spread the nonviolence message through a Nonviolence Educational Training curriculum. NVI believes that we are all part of the solution, and it is the language, principles, steps, and components that connect and build our Beloved Community by spreading and sharing the practice of Nonviolence,” Said Cedric Huntley, Executive Director of NVI.
“Much of Project Weber/RENEW's (PWR) work is focused on harm reduction and evidence-based approaches to combat the overdose epidemic through needle exchange, Narcan distribution, and advocating for other proven efforts like harm reduction centers. However, we know through our own lives that the opposite of addiction is connection: we aim to foster this connection with people through our shared lived experiences,” noted Ashley Perry, Pawtucket Program Manager. “At PWR we use our voices and experiences to advocate for better systems to treat people with dignity and respect, and work to move forward from counterproductive policies. We are so excited to work with the next generation and have the youth at Blackstone Academy learn more about our experiences so they can do the crucial advocacy and work to help address violence and overdose in their communities.”
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
For additional information about United States Attorney’s Office’s PSN outreach programs visit https://www.justice.gov/usao-ri or contact Community Engagement & Crime Prevention Coordinator David Neill at (401) 709-5035 or at [email protected].
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Twenty Arrested, Charged in Operation Shut Down CornerRead the Press Release
Twenty alleged drug dealers and their associates have been arrested and charged in “Operation Shut Down Corner,” announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
The operation – which involved more than 150 agents and officers from the North Texas OCEDTF Strike Force – focused on Hamilton Park, a north Dallas neighborhood that has long been plagued by crime driven by a violent gang known as the Hamilton Park Posse.
During the investigation, DEA agents and their law enforcement partners seized 37 guns, 220 lbs of drugs (including cocaine, fentanyl-laced counterfeit pills, methamphetamine, and marijuana), $420,000 in assets (including U.S. currency, vehicles, and jewelry).
Twenty-one defendants have been charged in two indictments alleging a variety of crimes, including conspiracy to distribute fentanyl, conspiracy to distribute cocaine, maintaining drug involved premises, using cell phones to facilitate the distribution of controlled substances, and possession of firearms in furtherance of drug trafficking crimes. (One defendant remains a fugitive.)
Many of the defendants arrested in Operation Shut Down Corner have extensive criminal histories and have faced charges including aggravated assault, battery, robbery, theft, forgery, drug possession, weapon possession, and terroristic threats.
“This drug trafficking, gun wielding street gang has been terrorizing their neighborhood for far too long,” U.S. Attorney Chad Meacham said at a press conference at the DEA Wednesday. “I hope the residents of Hamilton Park will rest easier tonight knowing that the Justice Department has their backs.”
“As the layers of this investigation began to reveal themselves, we identified a highly organized, poly-drug distribution organization, feeding our streets with cocaine, crack-cocaine, marijuana, methamphetamine, and deadly counterfeit prescription drugs containing fentanyl,” said DEA Special Agent in Charge Eduardo Chavez. “The Hamilton Park area of Dallas was once described to me as a ‘Forgotten Neighborhood.’ That stops now.”
Those charged include:
• Randall Hoskins, aka “Rambo,” charged with conspiracy to possess with intent to distribute controlled substances
• Demetric Watson, charged with conspiracy to possess with intent to distribute controlled substances
• Rosie Bush, aka “Shanta,” charged with conspiracy to possess with intent to distribute controlled substances
• Kemerra Gilbert, charged with conspiracy to possess with intent to distribute controlled substances
• Jerome Brown, charged with conspiracy to possess with intent to distribute controlled substances
• Jimmy Reedy, aka “UM-8033,” charged with unlawful use of a communication facility
• Quientin Titus, aka “QT” or “Quick Trip,” charged with maintaining a drug involved premises and conspiracy to possess with intent to distribute controlled substances
• Devonte Thursby, aka “Wook,” charged with conspiracy to possess with intent to distribute controlled substances and unlawful use of a communication facility
• Jerome Miller, charged with conspiracy to possess with intent to distribute controlled substances
• Brian Williams, charged with conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute controlled substances, and possession of a firearm in furtherance of a drug trafficking crime
• Staecey Logan, charged with two counts of unlawful use of a communication facility
• Kimmy Blanton (fugitive), charged with unlawful use of a communication facility
• Tamara Cashaw, charged with conspiracy to possess with intent to distribute controlled substances and unlawful use of a communication facility
• Damone Dixon, charged with conspiracy to possess with intent to distribute controlled substances
• Michael Gipson, aka “Grip,” charged with conspiracy to possess with intent to distribute controlled substances
• Bridney Fannin, charged with unlawful use of a communication facility
• Reginald Lamar Denson, charged with conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute controlled substances, and possession of a firearm by a convicted felon
• Jahmear Chance Jackson, charged with conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute controlled substances, and possession of a firearm by a convicted felon
• Addison Cole, aka “Addy” or “Scat Back,” charged with conspiracy to possess with intent to distribute controlled substances
• Sergei Gharpetian, charged with conspiracy to launder money
• Tigran Mkrtchyan, charged with conspiracy to launder money
Indictments are merely allegations of criminal conduct, not evidence. All defendants are presumed innocent until proven guilty in a court of law.
If convicted, some defendants face maximums of up to 40 years in federal prison.
The investigation was led by the North Texas OCDETF Strike Force – which includes the Drug Enforcement Administration’s Dallas Field Division, the Federal Bureau of Investigation’s Dallas Field Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives’ Dallas Field Division, the U.S. Marshals Service, Homeland Security Investigations’ Dallas Field Division, the U.S. Coast Guard, U.S. Secret Service, U.S. Department of the Treasury, Internal Revenue Service, U.S. Postal Service, U.S. Department of Labor Office of the Inspector General – along with the Dallas Police Department. Assistant U.S. Attorney Myria Boehm is prosecuting the case with the assistance of Assistant U.S. Attorney Travis Elder.
The Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The North Texas OCDETF Strike Force investigates and prosecutes major drug trafficking, money laundering, and other high priority transnational organized crime networks.
Tuscaloosa Man Sentenced to More than 10 Years in Prison on Drug and Gun ChargesRead the Press Release
TUSCALOOSA, Ala. – A federal judge today sentenced a Tuscaloosa man on drug and gun charges, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms, and Explosives Special Agent in Charge Mickey French.
Chief U.S. District Court Judge L. Scott Coogler sentenced Ladarius De’Shaun Jones, 21, of Tuscaloosa, to 126 months in prison for possession with the intent to distribute a controlled substance and possessing a firearm during and in relation to a drug trafficking crime. Jones pleaded guilty to the charges in September 2021.
“Drugs and guns are a combination that often leads to violence,” U.S. Attorney Escalona said. “The defendant’s actions at the time of his arrest were extremely dangerous, and I commend the Tuscaloosa Police Officers for avoiding a loss of life during this incident.”
“Removing the criminal element that illegally uses firearms in furtherance of drug trafficking crimes and to facilitate violent crimes, is a priority of the ATF,” SAC French said. “The ATF will continue to work in conjunction with law enforcement agencies and the community to remove the criminal elements that negatively impact our communities.”
According to the plea agreement, on August 2, 2020, a Tuscaloosa Police Officer attempted to conduct a lawful traffic stop on Jones. Jones fled in his vehicle and led the police officer on a high-speed chase through several neighborhoods until reaching a dead-end street. Jones got out of the vehicle, and cash fell out onto the ground. Jones began picking up the cash and threw a small backpack on the ground in front of the vehicle. As Jones was picking up the cash, the police officer tackled him. Jones actively resisted the police officer’s attempts to arrest him, and the two struggled for several minutes. Jones retrieved a Glock .45 caliber pistol from the backpack he threw. The officer initially thought the firearm resembled a BB gun but was uncertain. Upon seeing Jones grab the item, the police officer knocked it out of Jones' hands. The struggle continued. Jones ultimately complied. Multiple Tuscaloosa Police Officers arrived on scene to assist and took Jones into custody. Officers located the firearm and learned that it was not a BB gun, but was a Glock .45 caliber pistol. The pistol was equipped with a rifle conversion kit and was loaded with a high-capacity magazine with one round in the chamber. The officers seized approximately 594 grams of marijuana and $1,105 in cash.
ATF investigated the case, along with the Tuscaloosa Police Department. Assistant U.S. Attorney Brittney Plyler prosecuted the case.
Truck driver gets significant sentence for human smugglingRead the Press Release
CORPUS CHRISTI, Texas – A 28 year-old San Benito resident has been ordered to federal prison following his convictions for transporting illegal aliens with his tractor trailer, announced U.S. Attorney Jennifer B. Lowery.
Rene Garcia pleaded guilty Aug. 5, 2021.
Today, U.S. District Judge Drew Tipton sentenced Garcia to a total of 41 months in prison to be immediately followed by three years of term of supervised release. In handing down the sentence, Judge Tipton took into consideration the nature and facts of the case and noted Garcia had recently been convicted of transporting illegal aliens.
On May 13, 2021, Garcia arrived at the Falfurrias Border Patrol (BP) checkpoint driving a semi-truck and trailer. A K-9 alerted to the vehicle which prompted authorities to refer him to secondary inspection.
Ultimately, authorities found 51 undocumented individuals in the trailer, hidden among pallets of onions. At least one of them reported that it was hard to breathe and there was no way to escape in the event of an emergency.
Garcia later admitted to making arrangements with someone in San Benito to smuggle the aliens through the Falfurrias checkpoint and onto Houston.
He has been and will remain in custody pending transfer to a Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations and BP conducted the investigation. Assistant U.S. Attorney Patrick Overman prosecuted the case.