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11 January 2022
U.S. Attorney's Office Commemorates National Human Trafficking Awareness Day--January 11, 2022Read the Press Release
PORTLAND, Ore.—Today, the U.S. Attorney’s Office for the District of Oregon commemorates National Human Trafficking Awareness Day—January 11, 2022—and joins its federal, state, local, and Tribal law enforcement partners in declaring a continued commitment to combating all forms of human trafficking.
“More than 150 years have passed since our nation ratified the 13th Amendment, abolishing the cruel and repugnant practice of enslaving humans. And yet, in its modern form of trafficking, this abhorrent crime persists here in the U.S. and across the globe. Combatting human trafficking is a top priority for the Justice Department and our office. Together with our law enforcement partners, we will do everything in our power to end this horrible crime,” said Scott Erik Asphaug, U.S. Attorney for the District of Oregon.
“We are a country built on the promise of freedom and dignity for every person. Unfortunately, it’s a promise that we see broken all too often for the most vulnerable among us,” said Kieran L. Ramsey, Special Agent in Charge of the FBI in Oregon. “Victims of labor trafficking and sex trafficking are not only exploited in the worst ways, they also live in constant fear. They wake every morning to threats of violence and outright abuse. Help us help them. If you have information about trafficking in your area, please call us.”
Human trafficking, sometimes referred to as trafficking in persons or modern slavery, is a serious federal crime involving the exploitation of individuals for labor, services, or commercial sex through force, fraud, or coercion. This coercion can be subtle or overt, physical or psychological. Exploitation of a minor for commercial sex is human trafficking, regardless of whether any form of force, fraud, or coercion was used.
Victims of human trafficking can be anyone regardless of race, color, national origin, disability, religion, age, gender, sexual orientation, gender identity, socioeconomic status, education level, or citizenship status. Although there is no defining characteristic that all human trafficking victims share, traffickers around the world frequently prey on individuals who are poor, vulnerable, living in unsafe or unstable environments, or are in search of a better life.
In the U.S., trafficking victims can be American or foreign citizens. Some of the most vulnerable populations for trafficking in the U.S. include American Indian and Alaska Native communities, LGBTQ individuals, individuals with disabilities, undocumented migrants, runaway and homeless youth, temporary guest-workers, and low-income individuals.
The U.S. Attorney’s Office for the District of Oregon is committed to continuing its victim-centered, trauma-informed approach to detecting hidden human trafficking crimes, holding perpetrators accountable, and helping to restore the lives of survivors, while strengthening strategic anti-trafficking partnerships.
If you or someone you know is in immediate danger, please call 911.
If you believe you or someone you know is a victim of human trafficking or may have information about a trafficking situation, please call the National Human Trafficking Hotline toll-free at 1-888-373-7888 or visit https://humantraffickinghotline.org. You can also text the National Human Trafficking Hotline at 233733.
January is National Slavery and Human Trafficking Prevention Month. Every year since 2010, the President has dedicated the month to raising awareness about the different forms of human trafficking and educating people about this crime and how to spot it. To learn more, visit https://www.whitehouse.gov/briefing-room/presidential-actions/2021/12/30/a-proclamation-on-national-human-trafficking-prevention-month-2022/.
Troy Man Sentenced for Possessing and Intending to Distribute Cocaine and Cocaine BaseRead the Press Release
ALBANY, NEW YORK – Marquese Pompey, age 25, of Troy, New York, was sentenced today to 37 months in prison for possessing cocaine and cocaine base with intent to distribute.
The announcement was made by United States Attorney Carla B. Freedman; John B. DeVito, Special Agent in Charge of the New York Field Division of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and Keith Kruskall, Acting Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), New York Division.
In pleading guilty, Pompey admitted to possessing and intending to distribute approximately 13 grams of cocaine base, or “crack,” in March 2020. Pompey was arrested in September 2020, and in searching his Troy apartment, law enforcement discovered approximately 60 grams of cocaine and 8 grams of cocaine base, much of which was partially flushed down the toilet. Pompey also intended to distribute that cocaine and cocaine base.
U.S. District Judge Mae A. D’Agostino also sentenced Pompey to serve 3 years of post-release supervision.
This case was investigated by the ATF, DEA, and Troy Police Department, and was prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck
Ten-Time Convicted Felon Who Trafficked Fentanyl Causing Deaths Sentenced to over 15 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Derrick Hutchins (36, Tampa) to 15 years and 8 months in federal prison for distribution of fentanyl and methamphetamine.
Hutchins had pleaded guilty on October 13, 2021.
According to court documents, on April 26, 2020, Hutchins distributed fentanyl to an individual, causing a fatal overdose in the victim’s home. On May 21, 2020, Hutchins again distributed fentanyl, this time to a law enforcement confidential source. Detectives with the Hillsborough County Sheriff’s Office then arrested Hutchins on state trafficking charges. Hutchins later bonded out of jail, and on July 1, 2020, again distributed fentanyl, causing another fatal overdose.
“Our country is currently in the midst of a crippling opioid epidemic, and every loss of life is devastating to our communities,” said DEA Miami Field Division Special Agent in Charge Deanne L. Reuter. “The Miami Field Division remains committed to working with our law enforcement partners to bring drug dealers like Derrick Hutchins to justice and keep our Florida communities safe and healthy.”
This case was investigated by the Hillsborough County Sheriff’s Office and the Drug Enforcement Administration, with assistance from the Hillsborough County Medical Examiner’s Office. It was prosecuted by Assistant United States Attorney Diego F. Novaes.
Taunton Man Arrested on Firearms OffensesRead the Press Release
BOSTON – A Taunton man was arrested today in connection with illegally possessing and trafficking firearms.
Jaylen Rose, 27, was indicted on one count of dealing in firearms without a license and two counts of being a felon in possession of a firearm and ammunition. Following an initial appearance and arraignment today before U.S. District Court Magistrate Judge David H. Hennessy in federal court in Worcester, Rose assented to detention.
According to the indictment unsealed today, from in or around Dec. 2020 until Feb. 5, 2021, Rose allegedly engaged in firearms dealing. It is also alleged that on Feb. 5, 2021, Rose possessed two pistols and over 40 rounds of ammunition. Rose does not possess a license to deal firearms and is prohibited from possessing firearms due to prior convictions.
The charge of dealing in firearms without a license 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 being a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Rachael S. Rollins; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Taunton Police Chief Edward James Walsh made the announcement today. Special assistance was provided by the U.S. Marshals Service for the District of Massachusetts and the Massachusetts State Police. Assistant U.S. Attorney J. Mackenzie Duane of Rollins’ Major Crimes Unit is prosecuting the case.
South Florida Towing Company Owner Charged with Tax EvasionRead the Press Release
Miami, Florida – Federal prosecutors in Ft. Lauderdale have charged an owner of a Lauderdale Lakes towing company with underreporting income and failing to pay federal tax on money he received through a Personal Injury Protection (PIP) kickback scheme and other cash-based fraud.
Craig Goldstein, 60, of Boca Raton, Florida was an owner of West Way Towing, a Lauderdale Lakes company that towed, and stored at its yard, disabled vehicles, including ones involved in accidents. According to the information filed today in the Southern District of Florida, Goldstein referred accident victims to certain attorneys and chiropractors who would then illegally charge insurance companies for unneeded services under Florida’s Personal Injury Protection Program. Goldstein received a fee for each patient referral, which he collected in cash and failed to report to the IRS, according to the charges. Goldstein also failed to report cash he received from vehicle storage lien fees and from auctions of vehicles the sales prices of which were manipulated to falsely reflect that Goldstein made no profit, says the information. It is alleged that Goldstein owes the U.S. government over $130,000 in income tax.
The information charges Goldstein with three counts of tax evasion. He faces up to 15 years’ imprisonment and a fine up to $750,000.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, and Matthew D. Line, Special Agent in Charge, Internal Revenue Service (IRS), made the announcement.
IRS Miami investigated this matter. The case is being prosecuted by Assistant U.S. Attorneys Jeffrey N. Kaplan and Paul Schwartz.
An information is only an accusation and a defendant is presumed innocent unless and until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-60002.
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Sixth Defendant Admits to Role in Bank Fraud ConspiracyRead the Press Release
PROVIDENCE, R.I. – A Haverhill, MA, man today became the sixth defendant to admit his role in a wide-ranging scheme to defraud financial institutions in several states of more than $2.4 million dollars by obtaining and attempting to obtain car loans with the use of stolen personal identifying information of others and fraudulent documents, announced United States Attorney Zachary A. Cunha.
Fernando Diaz, 34, pleaded guilty in U.S. District Court in Providence to conspiracy to commit bank fraud.
Diaz admitted that in December 2017, he used the stolen identity of a Connecticut resident to apply for and obtain a $50,000 personal loan from an online finance company. The proceeds were deposited into a TD Bank account opened with the use of the same stolen identity. Diaz and others withdrew the funds from the TD Bank account.
Additionally, Diaz admitted that in June 2019, he filed online applications for used car loans in the amounts of $35,000, $35,574, and $36,000, each time falsely representing that he sought to purchase a 2016 Porsche Cayenne. Each application was accompanied by counterfeit documents created by one or more members of the conspiracy, including a fraudulent Massachusetts Automobile Title and a fraudulent bill of sale.
Diaz becomes the sixth person convicted in U.S. District Court in Providence for their roles in the scheme. Among the defendants awaiting sentencing is a Massachusetts used car dealer, Roland E. Estrella, 33, of Dracut, MA., who admitted to being the leader of the conspiracy.
Estrella is scheduled to be sentenced on March 24, 2022. Diaz is scheduled to be sentenced on April 5, 2022.
The case is being prosecuted by Assistant U.S. Attorney William J. Ferland.
The investigation into the fraud ring which operated throughout the northeast was conducted by the Social Security Office of Inspector General and the United States Secret Service.
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Sinaloa Cartel Drug Trafficker and Money Launderer Sentenced to PrisonRead the Press Release
A drug trafficker and money launderer for the Sinaloa Cartel was sentenced yesterday to 188 months in prison for supervising the smuggling of multi-kilogram quantities of cocaine, methamphetamine, and heroin from Mexico into the United States and the smuggling of drug proceeds from the United States to Mexico.
Roberto Gallegos-Lechuga, 39, of Sinaloa, Mexico, was extradited from Mexico to the United States in March 2020. In July 2021, he pleaded guilty to conspiracy to commit international money laundering. According to court documents, Gallegos-Lechuga coordinated the smuggling of large quantities of illegal narcotics through ports of entry in Southern California. Gallegos-Lechuga also supervised and managed couriers who smuggled hundreds of thousands of dollars in cash at a time, from the illegal sale of drugs, from the United States to Mexico as part of the cartel’s ongoing efforts to promote drug trafficking.
“This defendant was part of a violent transnational criminal organization that posed a danger to our communities,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “We will prosecute to the fullest extent of the law those who export dangerous narcotics to the United States and finance those activities through money laundering. I want to thank the Government of Mexico for extraditing Gallegos-Lechuga to the United States. Through such partnerships, we will continue to work to dismantle dangerous drug cartels.”
“Those who manage drug trafficking and money laundering efforts for the Sinaloa cartel, one of the most violent criminal organization in the world, will continue to face justice in this district,” said U.S. Attorney Randy Grossman for the Southern District of California. “Stopping the flow of funds to drug cartels and of deadly drugs into the United States continues to be a priority for us and our law enforcement partners.”
“This sentencing is the culmination of years of relentless work by Homeland Security Investigations (HSI) and its partners targeting the Sinaloa Cartel,” said Special Agent in Charge Chad Plantz of HSI San Diego. “This investigation highlights HSI’s dedication to go after both cartel drug trafficking and money laundering activity. The sentencing sends a resounding message to Transnational Criminal Organizations that HSI and our partners are unyielding in our pursuit of justice.”
Seven other defendants have previously pleaded guilty in the case and been sentenced: Omar Ayon-Diaz, Osvaldo Contreras-Arriaga, Cesar Hernandez-Martinez, Gibran Rodriguez-Mejia, Oscar Rodriguez-Guevara, Bianca Acedo Ojeda, and Joel Acedo Ojeda. In addition, approximately 20 other individuals linked to the scheme who served as drug and money couriers and drug stash house operators have entered guilty pleas and been sentenced in related cases.
The investigation was conducted by HSI. The Justice Department’s Office of International Affairs worked with law enforcement partners in Mexico to secure the arrest of Gallegos-Lechuga in Mexico and his extradition to the United States.
The case is being prosecuted by Senior Trial Counsel Mark Irish of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Larry Casper of the U.S. Attorney’s Office for the Southern District of California.
Sinaloa Cartel Drug Trafficker and Money Launderer Sentenced to 188 Months in PrisonRead the Press Release
Assistant U. S. Attorney Larry Casper (619) 546-6734
NEWS RELEASE SUMMARY – January 11, 2022
SAN DIEGO – Roberto Gallegos-Lechuga, a drug trafficker and money launderer for the Sinaloa Cartel, was sentenced in federal court yesterday to 188 months in prison for supervising the smuggling of multi-kilogram quantities of cocaine, methamphetamine and heroin from Mexico into the United States and the smuggling of drug proceeds from the United States to Mexico.
Gallegos-Lechuga, 39, of Sinaloa, Mexico, was extradited from Mexico to San Diego in March of 2020. In July 2021, he pleaded guilty to conspiracy to commit international money laundering. According to court documents, Gallegos-Lechuga coordinated the smuggling of large quantities of illegal narcotics through ports of entry in Southern California. Gallegos-Lechuga also supervised and managed couriers who smuggled hundreds of thousands of dollars in cash at a time, from the illegal sale of drugs, from the United States to Mexico as part of the cartel’s ongoing efforts to promote drug trafficking.
“Those who manage drug trafficking and money laundering efforts for the Sinaloa cartel, one of the most violent criminal organizations in the world, will continue to face justice in this district,” said U.S. Attorney Randy Grossman for the Southern District of California. “Stopping the flow of funds to drug cartels and of deadly drugs into the United States continues to be a priority for us and our law enforcement partners.” Grossman also thanked prosecutor Larry Casper and HSI agents for their excellent work on this case.
“This defendant was part of a violent transnational criminal organization that posed a danger to our communities,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “We will prosecute to the fullest extent of the law those who export dangerous narcotics to the United States and finance those activities through money laundering. I want to thank the Government of Mexico for extraditing Gallegos-Lechuga to the United States. Through such partnerships, we will continue to work to dismantle dangerous drug cartels.”
“Today’s sentencing is the culmination of years of relentless work by Homeland Security Investigations (HSI) and its partners targeting the Sinaloa Cartel,” said HSI San Diego Special Agent in Charge Chad Plantz. “This investigation highlights HSI’s dedication to go after both Cartel drug trafficking and money laundering activity. The sentencing sends a resounding message to Transnational Criminal Organizations that HSI and our partners are unyielding in our pursuit of justice.”
Seven other defendants have previously pleaded guilty in this case and been sentenced, including Omar Ayon-Diaz, Osvaldo Contreras-Arriaga, Cesar Hernandez-Martinez, Gibran Rodriguez-Mejia, Oscar Rodriguez-Guevara, Bianca Acedo Ojeda and Joel Acedo Ojeda. In addition, approximately 20 other individuals linked to the conspiracy who served as drug and money couriers and drug stash house operators have entered guilty pleas and been sentenced in related cases.
The investigation was conducted by Homeland Security Investigations. The Justice Department’s Office of International Affairs worked with law enforcement partners in Mexico to secure the arrest of Gallegos-Lechuga in Mexico and his extradition to the United States.
The case is being prosecuted by Assistant U.S. Attorney Larry Casper of the U.S. Attorney’s Office for the Southern District of California and Senior Trial Counsel Mark Irish of the Criminal Division’s Money Laundering and Asset Recovery Section.
DEFENDANT Case Number 15cr950-BEN
Roberto Gallegos-Lechuga Age: 39 Sinaloa, Mexico
SUMMARY OF CHARGES
Money Laundering Conspiracy – Title 18, U.S.C., Section 1956(h)
Maximum penalty: Twenty years in prison and $500,000 fine
AGENCY
Homeland Security Investigations
Shirley Woman Sentenced to 18 Months in Prison for Wide-Ranging Multi-Drug Trafficking ConspiracyRead the Press Release
BOSTON – A Shirley woman was sentenced yesterday in federal court in Worcester for her role in a wide-ranging fentanyl, heroin, crack and cocaine trafficking conspiracy.
Shasaalena Blair, 41, was sentenced by U.S. District Court Judge Timothy S. Hillman to 18 months in prison and three years of supervised release. In January 2021, Blair pleaded guilty to one count of conspiracy to distribute and possess with the intent to distribute one kilogram or more of heroin, 400 grams or more of fentanyl, 280 grams or more of cocaine base and 500 grams or more of cocaine.
According to court documents, following a fatal fentanyl overdose in September 2018, law enforcement began an investigation into a drug trafficking organization (DTO) in the Fitchburg area led by co-conspirators Pedro Baez and his son, Anthony Baez. Beginning in July 2019, electronic communications between members of the DTO and its suppliers revealed that Pedro and Anthony Baez worked with others to distribute a fentanyl and heroin mixture, cocaine and crack cocaine on a regular basis to individuals in the Fitchburg area, including Blair. Some of these individuals resold all or a portion of those drugs to their own customers. In July 2020, Blair was charged in a superseding indictment along with 17 others involved in the conspiracy, including Pedro and Anthony Baez.
Blair is the second defendant to be sentenced in this case. In December 2020, Anthony Baez was sentenced by Judge Hillman to 13 years in prison. Pedro Baez pleaded guilty on Feb. 3, 2021 and is scheduled to be sentenced on May 17, 2022. Eight other defendants in the case have pleaded guilty and are awaiting sentencing.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement. The case was investigated by the Organized Crime Drug Enforcement Task Force (OCDETF). The Fitchburg Police Department, U.S. Postal Inspection Service and the Lunenburg Police Department also provided valuable assistance. Assistant U.S. Attorney Alathea Porter of Rollins’ Narcotics and Money Laundering Unit prosecuted the case.
The operation was conducted is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
The details contained in the indictment are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Rollins Announces Appointment of First Assistant U.S. AttorneyRead the Press Release
BOSTON – U.S. Attorney Rachael S. Rollins announced that Joshua S. Levy has been appointed to serve as First Assistant United States Attorney for the District of Massachusetts. Levy was formally sworn-in today by U.S. District Court Chief Judge F. Dennis Saylor IV.
“Mr. Levy has distinguished himself as someone with outstanding character, judgment and expertise,” said U.S. Attorney Rollins. “His decades as a litigator on a wide range of criminal and civil matters have allowed him to cultivate an excellent legal acumen that will be an invaluable asset to me and this Office. Mr. Levy is a tireless and dedicated attorney, and I am confident that his breadth of experience will serve this District well. I look forward to working closely with him in this new capacity.”
Mr. Levy has over 25 years of legal experience and, prior to his appointment as First Assistant U.S. Attorney, was a partner at the global law firm, Ropes & Gray LLP and co-chair of the firm’s global Litigation and Enforcement practice group. At Ropes & Gray, Mr. Levy specialized in white-collar and complex civil litigation – particularly in the health care, pharmaceutical, medical device and Health IT industries. In 2016, he was named as one of the Lawyers of the Year by Massachusetts Lawyers Weekly and, in 2021, he was named co-managing partner of Ropes & Gray’s Boston office.
Previously, Mr. Levy was an Assistant U.S. Attorney for the District of Massachusetts, from 1997 to 2004, serving in the Criminal Division’s Economic Crimes Unit. There, he prosecuted a wide range of white-collar crimes including health care fraud, securities and investor fraud, terrorism financing and environmental crimes.
Mr. Levy spent the first four years of his legal career at Ropes & Gray LLP. During that time, Mr. Levy was assigned a six-month rotation with the Middlesex County District Attorney’s Office in the Cambridge District Court. Prior to that, he was a law clerk for the Honorable Harold Herman Greene with the U.S. District Court for the District of Columbia.
Mr. Levy graduated magna cum laude from Georgetown University Law Center in 1992, where he was associate editor of the Georgetown Law Journal. He received his Bachelor of Arts in History from Brown University in 1987.
Rogers man pleads guilty to enticement of a childRead the Press Release
ALBUQUERQUE, N.M. –Jason Chandler Mapp, 41, of Rogers, New Mexico, pleaded guilty in federal court on Jan. 10 to enticement of a minor. Mapp will remain in custody pending sentencing, which has not been scheduled.
According to the plea agreement and other court records, beginning in January 2020, Mapp, who at the time was a middle school bus driver for Dora Consolidated Schools in Roosevelt County, New Mexico, allegedly began using Instagram and TikTok to message two minor victims. Mapp allegedly used multiple accounts to pressure the victims into sending him nude photographs of themselves and each other. Mapp admitted that he knew the victims were minors.
Mapp faces a minimum of 10 years and up to a statutory maximum of life in prison.
The Roswell Resident Agency of the FBI Albuquerque Field Office and the Roosevelt County Sheriff’s Office investigated this case. Assistant United States Attorneys Marisa A. Ong and Joni Autrey Stahl are prosecuting the case.
Repeat Child Sex Offender Sentenced to over 10 Years in Prison for Possession of Child PornographyRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a previously convicted sex offender for possession of child pornography, announced U.S. Attorney Prim F. Escalona and U.S. Immigration and Customs Enforcement Homeland Security Investigations Special Agent in Charge Katrina W. Berger.
U.S District Court Judge Annemarie C. Axon sentenced Michael Edward Horton, 52, of Bessemer, to 135 months in prison to be followed by supervised release for life. On October 13, 2021, Horton pleaded guilty to possession of child pornography.
“Possession of child pornography is an intolerable crime that victimizes the most vulnerable,” U.S. Attorney Escalona said. “We are grateful for the collaborative efforts of our federal, state, and local law enforcement partners to stop this repeat child predator.”
“Whenever one of these images is shared or viewed it victimizes an innocent child all over again, making it extremely difficult for the victim to recover.” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Stopping those who delight in and distribute this filth is one of the most important missions HSI has.”
According to the plea agreement, in March 2020, law enforcement received several cyber tips from the National Center for Missing and Exploited Children (NCMEC) that images of child pornography had been uploaded to an Instagram account registered to Horton. In April 2020, a state search warrant was obtained for Horton’s residence and agents seized two cell phones. During a forensic review of one of Horton’s cell phones, 95 images and 28 videos of children being sexually exploited were identified. Horton stated that his exchange of child pornography began in late 2019 and was primarily conducted through Instagram, Wickr, Telegram, and Tumblr. Horton had previously been convicted of Sexual Abuse First-Degree of a child in 1998 in the Ninth Judicial Circuit of Alabama.
U.S. Immigration and Customs Enforcement Homeland Security Investigations investigated the case, along with the Alabama Law Enforcement Agency and Bessemer Police Department. Assistant U.S. Attorneys R. Leann White and Daniel McBrayer prosecuted the case.
Providence Man Sentenced to Six Years in Prison for Trafficking FentanylRead the Press Release
PROVIDENCE, R.I. – A Providence man who admitted to participating in two deliveries of around 50 grams of fentanyl each was sentenced today to six years in federal prison.
Andre Monroe, 32, previously admitted to the court that on June 19, 2019, he secured a $3,000 payment for 49.59 grams of fentanyl sold by an individual who was under surveillance by the FBI Safe Streets Task Force. Additionally, on July 24, 2019, he accepted a $2,700 payment for two bags containing a total of 50.45 grams of fentanyl supplied by him and another individual to the same person that purchased fentanyl in June.
Monroe pleaded guilty on February 12, 2020, to two counts of distribution of 40 grams or more of fentanyl. Monroe was sentenced today by U.S. District Court Chief Judge John J. McConnell, Jr., to 72 months in federal prison to be followed by four years of federal supervised release, announced United States Attorney Zachary A. Cunha.
The case was prosecuted by Assistant U.S. Attorney Stacey P. Veroni.
The FBI Safe Streets Gang Task Force consists of agents and law enforcement officers from the FBI, Rhode Island State Police, the Providence, Cranston, Woonsocket, Pawtucket, West Warwick, and Central Falls Police Departments, and the U.S. Marshals Service.
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Princess Cruise Lines Pleads Guilty to Second Revocation of ProbationRead the Press Release
Princess Cruise Lines Ltd. (Princess) has pleaded guilty to a second violation of probation imposed as a result of its 2017 criminal conviction for environmental crimes because it failed to establish and maintain an independent internal investigative office. Under the terms of a plea agreement, Princess was ordered to pay an additional $1 million criminal fine and required to undertake remedial measures to ensure that it and its parent Carnival Cruise Lines & plc establish and maintain the independent internal investigative office known as the Incident Analysis Group (IAG).
Princess was convicted and sentenced in April 2017 and fined $40 million after pleading guilty to felony charges stemming from its deliberate dumping of oil-contaminated waste from one of its vessels and intentional acts to cover it up. This was and remains the largest-ever criminal fine for intentional pollution from ships. While serving five years of probation, all Carnival-related cruise line vessels trading in U.S. ports were required to comply with a court approved and supervised environmental compliance plan (ECP), including audits by an outside and independent third-party auditor (TPA) and oversight by a Court Appointed Monitor (CAM).
In 2019, Princess was convicted of six violations of probation, fined an additional $20 million, and required to undertake more remedial measures. In that case, two of the violations involved interfering with the court’s supervision of probation by sending undisclosed teams to ships to prepare them for the independent inspections required during probation. Documents filed in court showed that one purpose of the vessel visit programs was to avoid adverse findings by the independent outside auditors working on behalf of the court.
Beginning with the first year of probation, there have been repeated findings that the Company’s internal investigation program was and is inadequate. In November 2021, the Office of Probation issued a petition to revoke probation after adverse findings by the CAM and TPA.
In an October 2021 letter to U.S. District Court Judge Patricia A. Seitz, the CAM and TPA concluded that the continuing failure “reflects a deeper barrier: a culture that seeks to minimize or avoid information that is negative, uncomfortable, or threatening to the company, including to top leadership (i.e., the Board of Directors, C-Suite executives and Brand Presidents/CEOs).”
A joint factual basis for today’s guilty plea was submitted to the court in which Princess and Carnival admitted to the failure to establish and maintain an independent investigative office. Princess admitted that internal investigators had not been allowed to determine the scope of their investigations, and that draft internal investigations had been impacted and delayed by management.
Changes required under a plea agreement with the Department of Justice resolving the probation violation include:
- Carnival must restructure so that its investigative office reports directly to a committee of Carnival’s Board of Directors;
- Carnival’s internal investigative office must be given the authority to initiate investigations on its own and to determine their scope;
- Carnival’s management will be restricted in its ability to remove the head of the “Incident Analysis Group” that performs internal investigations;
- Carnival must conduct an assessment to ensure independent investigators have sufficient resources;
- Carnival must assess the effectiveness of required changes and correct deficiencies.
- Failure to meet deadlines in the plea agreement will initially subject the defendant to fines of $100,000 per day, and $500,000 per day after 10 days.
“This case shows the importance of addressing issues of corporate culture and structure, and the root causes of environmental non-compliance,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “This was a serious and ongoing violation of probation that reflected Carnival’s failure to prioritize compliance with court orders. I thank the court, the Office of Probation, court appointed monitor and third-party auditor for the close attention that they have devoted to this important matter.”
“Just like individual defendants, corporate defendants must also comply with court orders. They are not above the law”, said U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida. “The corporate defendant here ignored the court, choosing instead to thwart the compliance plan that was put in place to protect our environment. As this probation violation proceeding demonstrates, the government will not tolerate defendant’s blatant violation of court orders.”
The plea agreement and factual statement were signed by Micky Arison, Chairman of Carnival’s Board of Directors and Arnold Donald, the Chief Executive Officer and a member of the Board of Directors. Both attended the hearing as they have quarterly status hearings pursuant to court order.
The case is being prosecuted by Richard A. Udell, Senior Litigation Counsel with the Environmental Crimes Section of the Department of Justice and Assistant U.S. Attorney Thomas Watts-FitzGerald, Environmental Crimes Coordinator, Economic & Environmental Crimes Section, for the Southern District of Florida.
Plymouth Man Sentenced to 19 Years in Prison for Advertising, Producing, and Distributing Child PornographyRead the Press Release
MINNEAPOLIS – A Plymouth man was sentenced to 228 months in prison followed by a lifetime of supervised release for advertising, producing, and distributing material depicting the sexual abuse of children. Acting U.S. Attorney Charles J. Kovats made the announcement after U.S. District Judge Nancy E. Brasel sentenced the defendant.
According to court documents, between November 2019 and March 2021, Derek Gerard Williams, 23, used various online accounts and aliases to advertise, produce, distribute, and obtain child pornography and other data related to the sexual exploitation of children. Williams used Instagram and other online platforms to communicate with and exploit minors in the United States and abroad. Williams also used a virtual private network (VPN) or proxy services and coded language referring to child exploitation and bestiality, to attempt to avoid detection by law enforcement.
On August 16, 2021, Williams pleaded guilty to one count of advertising child pornography, one count of production of child pornography, and one count of distribution of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case is the result of an investigation conducted by the FBI.
This case was prosecuted by Assistant U.S. Attorney Miranda E. Dugi.
Pittsfield Man Sentenced to 11 Years in Prison for Drug and Firearm OffensesRead the Press Release
BOSTON – A Pittsfield man was sentenced yesterday in federal court in Springfield for firearm and drug trafficking offenses.
Elvins Sylvestre, 43, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 11 years in prison and five years of supervised release. On July 14, 2021, Sylvestre was convicted by a federal jury of possession with intent to distribute heroin, possession of cocaine, being a felon in possession of a firearm and possessing a firearm in furtherance of a drug trafficking felony.
In November 2019, Sylvestre was found in possession of cocaine and 11 grams of heroin, enough to make approximately 550 doses for distribution, along with a .380 caliber semi-automatic handgun loaded with an extended magazine and over 40 rounds of ammunition. Federal law prohibits Sylvestre from possessing a firearm or ammunition due to multiple prior felony convictions including possession of stolen property; robbery; assault and battery; and attempted murder.
United States Attorney Rachael S. Rollins; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Pittsfield Police Chief Michael Wynn made the announcement. Assistant U.S. Attorney Todd E. Newhouse of Rollins’ Springfield Branch Office prosecuted the case.
Oklahoma Man Sentenced to 10 Years in Federal Prison for Drug TraffickingRead the Press Release
FAYETTEVILLE – A Muskogee, Oklahoma man was sentenced today to 120 months in prison followed by five years of supervised release on one count of Possession with Intent to Distribute Methamphetamine. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court documents, In July 2020, detectives with the Fourth Judicial Drug Task Force (DTF) initiated an investigation into the distribution of methamphetamine in the Northwest Arkansas area by Dervin Ward Foster Jr., age 31.
On July 17, 2020, detectives with the DTF conducted surveillance on a hotel in Fayetteville and reported observing Foster’s vehicle. Foster was observed carrying a green soft-sided ice chest into the hotel with him. Shortly thereafter, Foster left the hotel carrying the same ice chest and entered his vehicle.
An officer with the Fayetteville Police Department initiated a traffic stop. After receiving probable cause, a search was conducted. The search resulted in officers locating a loaded .40 caliber pistol, two vacuum sealed bags of methamphetamine weighing approximately 2,000 grams and approximately $6,000.00 in U.S. currency.
A search of Foster’s hotel room resulted in officers locating approximately 806 grams of methamphetamine, a digital scale, packaging materials, rubber gloves and $4,980.00 in U.S. currency.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Fourth Judicial District Drug Task Force and the Fayetteville Police Department investigated the case.
Assistant U.S. Attorney David Harris prosecuted the case.
This case was prosecuted as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Nigerian National Pleads Guilty to Role in Fraud and Money Laundering SchemeRead the Press Release
HUNTINGTON, W.Va. – A Nigerian national who was indicted in April 2021 in connection with a large fraud and money laundering scheme pleaded guilty to conspiracy to commit money laundering.
According to court documents and statements made in connection with the plea hearing, Kenneth Emeni, 29, a citizen of Nigeria residing in Martinsburg, was involved from at least August 2017 to October 8, 2020, with Kenneth Ogudu, also known as Kenneth Lee, John Nassy, Romello Thorpe, Oluwagbenga Harrison, Ouluwabamishe Awolesi, and others in a money laundering conspiracy that took place in Huntington and elsewhere. Emeni lived in Huntington from August 2017 to December 2019. As part of the scheme, Emeni’s co-conspirators created online false personas and contacted victims via email, text messaging or online dating and social media websites in order to induce the victims into believing they were in a romantic relationship, friendship or business relationship with various false personas. The victims were persuaded to send money for a variety of false and fraudulent reasons for the benefit of the false personas.
Emeni’s role in the conspiracy was to let victims transfer money to his bank account that he knew was from unlawful activity. Emeni admitted that after the victims’ funds were deposited into his account, he kept some of the money for himself and forwarded some of the money to his co-conspirators via wire transfers or Zelle. Emeni received approximately $42,050 from his co-conspirators’ transfers and transferred approximately $46,197 to his co-conspirators during the money laundering conspiracy. Emeni further admitted that he and his co-conspirators transferred large sums of their fraud proceeds to offshore accounts. From 2018 until 2020, Emeni transferred over $358,846 to accounts in Nigeria and Ghana.
Emeni faces up to 20 years in prison when he is sentenced on April 11, 2022. As part of his plea agreement, Emeni agreed to pay $904,126.96 in restitution.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Secret Service, the United States Postal Inspection Service, the Federal Deposit Insurance Corporation-Office of Inspector General (FDIC-OIG), the West Virginia State Police and the South Charleston Police Department.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorneys R. Gregory McVey and Kathleen Robeson are handling the prosecution.
The public is encouraged to report potential online fraud activity or scams at https://www.ic3.gov/.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 10am-6pm Eastern Time, Monday-Friday. English, Spanish, and other languages are available.
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. 3:21-cr-0068 (Emeni, et al).
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Meth dealer sent to prisonRead the Press Release
CORPUS CHRISTI, Texas – A 33-year-old Rio Hondo resident has been ordered to federal prison after selling large amounts of meth from a Corpus Christi residence, announced U.S. Attorney Jennifer B. Lowery.
Gustavo Adolfo Garcia pleaded guilty Oct. 21, 2021.
Today, U.S. District Judge Nelva Gonzales Ramos ordered him to serve a 188-month term of imprisonment to be immediately followed by five years of supervised release. In handing down the sentence, the court noted Garcia’s repeated criminal conduct.
In late 2020, law enforcement began investigating narcotics sales out of a home in Corpus Christi.
The operation resulted in several arrests outside the home and led to the identification of Garcia and others who were selling various drugs out of the residence.
On Dec. 29, 2020, authorities conducted a search and discovered 3.198 kilograms of pure meth, 518.93 grams of cocaine and other controlled substances.
Garcia took responsibility for the all the meth found in the home. He also admitted he had sold it through the back door of the residence.
Garcia has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with the assistance of police departments in Corpus Christi and Robstown. Assistant U.S. Attorney Joel Dunn prosecuted the case.
Major Collection of Cambodian and Southeast Asian Antiquities Is Subject of Forfeiture Action Filed in Manhattan Federal CourtRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Ricky J. Patel, the Acting Special Agent-in-Charge of the New York Field Office of the Department of Homeland Security (“HSI”), announced today the filing of a civil complaint seeking forfeiture of 35 Cambodian and Southeast Asian antiquities from a private American collection for the purpose of returning the antiquities to their countries of origin. Antiquities dealer Douglas Latchford sold the collection to its present owner (the “Collector”) with false statements and fake provenance documents intended to hide the fact that the antiquities were the products of looting, and then imported the antiquities through lies on customs paperwork. The Collector has voluntarily relinquished possession of the antiquities.
U.S. Attorney Damian Williams said: “This Office continues to trace and recover the many stolen cultural treasures that Douglas Latchford sold and scattered far from their home countries. Through this action, the United States reaffirms its commitment to redressing the wrongs committed by Latchford and other looters who would exploit and profit from the pain and disruption of war.”
Ricky J. Patel, HSI New York Acting Special Agent in Charge said: “For years, Douglas Latchford operated an illegitimate enterprise by smuggling looted antiquities into the United States with blatant disregard for U.S. Customs laws. Latchford facilitated this by falsifying customs documentation and providing deceptive paperwork to collectors for sale on the international art market. Today, we are pleased to see that 35 pieces of cultural property will be repatriated to their rightful setting. HSI New York will not rest in its efforts to locate all the antiquities related to Latchford’s fraud and see that each piece of history is not just found, but sent home.”
According to the Complaint filed in Manhattan Federal Court on January 7, 2022:
The United States of America seeks the forfeiture of 34 antiquities which Latchford sold to the Collector between in or about 2003 and in or about 2007 (the “Defendants in Rem”). The Defendants in Rem are bronze and sandstone sculptures and artifacts which originate from countries in Southeast Asia, primarily Cambodia, but also India, Myanmar, and Thailand. They include a monumental sandstone sculpture of Ganesha from Koh Ker, an ancient capital of the Khmer empire; and bronze sculptures from the vicinity of Angkor Wat. Latchford sold the Defendants in Rem to the Collector as part of a scheme to sell looted antiquities on the international art market. The Defendants in Rem were either removed illegally from their country of origin; imported into the United States based on false statements to United States Customs and Border Protection (“CBP”), or both.
Over the years, Latchford lied to and withheld information from the Collector in order to conceal that the Defendants in Rem were stolen, and supplied the Collector with false provenance documents and false information about the origin of certain of the Defendants in Rem. After Latchford sold the Defendants in Rem, many of them were then illegally imported into the United States based on false statements Latchford made to CBP and others.
In 2019, Latchford was indicted in the Southern District of New York with wire fraud conspiracy and other crimes related to a many-year scheme to sell looted Cambodian antiquities on the international art market, primarily by creating false provenance documents and falsifying invoices and shipping documents, including misrepresenting the country of origin of artworks. See United States v. Latchford, 19 Cr. 748 (AT) (the “Indictment”). In September 2020, the Indictment was dismissed due to Latchford’s death.
In 2021, an agent of HSI contacted the Collector about the Defendants in Rem. The Collector promptly cooperated with the Government’s inquiries and allowed the Government to inspect the Defendants in Rem. After the Collector learned more about the history of Latchford and the Defendants in Rem, including the evidence that the Defendants in Rem were illegally looted and/or illegally imported into the United States, the Collector voluntarily relinquished possession of the Defendants in Rem so that they can be repatriated to their countries of origin.
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Mr. Williams thanked HSI for its outstanding work on this investigation, which he noted is ongoing, and praised its ongoing efforts to find and repatriate stolen and looted cultural property. Mr. Williams also thanked the Kingdom of Cambodia’s Ministry of Culture and Fine Arts for its assistance with this investigation.
This matter is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U. S. Attorney Jessica Feinstein is in charge of the case.
The allegations contained in the Complaint are merely accusations.
Luzerne County Man Sentenced to 108 Months’ Imprisonment for Methamphetamine TraffickingRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Edgar Mendoza, age 29, formerly of Drums, Pennsylvania, was sentenced by United States District Judge Malachy E. Mannion, to 108 months’ imprisonment for methamphetamine trafficking.
According to United States Attorney John C. Gurganus, on July 23, 2021, Mendoza pleaded guilty to conspiring with several other individuals to distribute and possess with intent to distribute between 5 and 15 kilograms of methamphetamine in the Hazleton area between October 2019 and February 2020. Mendoza also pleaded guilty to conspiring with several other individuals to launder drug proceeds. During the scheme, conspirators mailed parcels containing methamphetamine from Arizona to Luzerne County, Pennsylvania, for retrieval and distribution. Mendoza was involved in retrieving parcels, selling the methamphetamine and depositing drug proceeds into a bank account in furtherance of the drug trafficking conspiracy.
The methamphetamine trafficking case was investigated by Homeland Security Investigations, the U.S. Postal Inspection Service, and the Pennsylvania Attorney General’s Office as 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 case was prosecuted by Assistant U.S. Attorney Jenny P. Roberts.
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Louisiana Man Pleads Guilty to Possessing a Firearm as a Convicted FelonRead the Press Release
Jackson, Miss. – Jordan Thomas, 24, of Vidalia, Louisiana, pled guilty today to possessing a firearm after having been previously convicted of a felony crime, announced U.S. Attorney Darren J. LaMarca and Kurt Thielhorn, Special Agent in Charge of the Jackson Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives.
According to court documents, on April 13, 2020, sheriff deputies in Adams County, Mississippi stopped a car for a traffic violation. Due to the odor of marijuana coming from the vehicle, sheriff’s deputies identified the passenger as Jordan Rashard Thomas who possessed a firearm concealed in his waistband under his sweatshirt. Thomas had previously been twice convicted of burglary in Concordia Parish, Louisiana.
Thomas is scheduled to be sentenced on April 12, 2022, and faces a maximum penalty of 10 years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by the Adams County Sheriff’s Office and the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Assistant U.S. Attorney Bert Carraway is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Lexington Man Sentenced to 79 Months for Fentanyl Trafficking and Firearms OffenseRead the Press Release
FRANKFORT, Ky.— A Lexington, Ky., man, Fredrick Lester Jr., 40, was sentenced to 79 months in federal prison on Tuesday, by U.S. District Judge Gregory VanTatenhove, for possession with intent to distribute 40 grams or more of fentanyl and felon in possession of firearms.
According to Lester’s plea agreement, on July 21, 2020, law enforcement conducted a traffic stop on Lester’s vehicle, where they found Lester in possession of 4.8 grams of fentanyl and a loaded Glock. That same day, law enforcement searched Lester’s residence and found 40 grams of fentanyl and 19 grams of methamphetamine. While Lester was detained, he made a series of jail calls to individuals telling them to clean out a storage unit. Law enforcement then obtained a search warrant for the storage unit and found three firearms, ammunition, and a ballistics vest. Lester admitted that he knew he was a convicted felon and was prohibited from possessing firearms.
Lester had previously been convicted of being a felon in possession of firearms in 2001 and 2010.
Lester pleaded guilty in September 2021.
Under federal law, Lester must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for ___years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Office; and Chief Lawrence Weathers, Lexington Police Department, jointly announced the sentence.
The investigation was conducted by the DEA and Lexington Police Department. The United States was represented by Assistant U.S. Attorney Emily Greenfield.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Leader of multimillion-dollar tobacco tax fraud and money laundering conspiracy sentenced to prisonRead the Press Release
Seattle – A leader of a scheme to cheat Washington State out of more than $10 million in tobacco excise taxes was sentenced today in U.S. District Court in Seattle to 26 months in prison, announced U.S. Attorney Nick Brown. Hyung Il Kwon, 48, of Henderson, Nevada, was the secret owner of TK Mac, a company that owned and operated two smoke shops in Federal Way and Lynnwood, Washington. Kwon conspired with others to cheat the state out of tobacco excise taxes; he also evaded more than $850,000 in federal income taxes. At the sentencing hearing, U.S. District Judge James L. Robart noted that Kwon has a prior state conviction from a similar tobacco fraud scheme, and said, “You [Kwon] have almost no respect for the law whatsoever when it gets in the way of making money.”
“For years, Mr. Kwon repeatedly laundered cash and created false invoices to avoid paying tobacco excise taxes. This didn’t just hurt the state coffers, it gave his business a competitive advantage over other small stores,” said U.S. Attorney Brown. “Now Mr. Kwon has a substantial restitution obligation, which will follow him even after he serves his prison term.”
According to records filed in the case, between 2009 and 2017, Kwon engaged in two schemes to defraud the state of tobacco excise taxes. The schemes involved two tribal smoke shops on the Puyallup reservation which sold significant quantities of tobacco products to TK Mac, the non-tribal tobacco distributor. Most of the sales were in cash, and TK Mac failed to report the purchases to the state, thus avoiding millions of dollars in excise taxes. When TK Mac then resold the products for cash, the company had a problem, since large deposits of cash would have triggered state scrutiny of its tobacco business. So, beginning in 2013 and continuing until 2017, Kwon and his coconspirators engaged in a money-laundering scheme: the two tribal smoke shops wrote checks to TK Mac as if the tribal smoke shops had purchased tobacco products from the non-tribal store. In fact, TK Mac simply provided the tribal smoke shops with large amounts of cash equal to the checks. No tobacco products changed hands, but TK Mac received an excise tax credit. As a result of these schemes, Washington State suffered losses of more than $10 million.
The president of the company that owns the tribal smoke shops, Anthony Edwin Paul, was sentenced last month to 14 months in prison, a $5,000 fine, and $1,764,818 in restitution. Paul’s subordinate, Theodore Kai Silva, who operated the scheme on behalf of the tribal smoke shops, was sentenced today to four years of probation with six months of home confinement, plus $25,000 in restitution. Kwon’s coconspirator and business partner Tae Young Kim will be sentenced in February 2022.
“Taxes, whether state or federal, are levied for the benefit of the public. When individuals like Mr. Silva, Mr. Kwon, Mr. Paul, and Mr. Kim scheme in a flagrant attempt to evade taxes, they are hurting the communities they purport to serve with their businesses,” said Bret Kressin, IRS Criminal Investigation (IRS:CI) Special Agent in Charge, Seattle Field Office. “Today’s sentence is a reminder that those who willfully dodge their duty to pay federal and state taxes will be held accountable for their actions. IRS:CI is committed to investigating those who choose their own greed over paying their fair share of taxes for the good of the public.”
Following the indictment of various coconspirators, the government seized more than $5 million from Kwon and Kim. Today, Judge Robart imposed a $10,000 fine on Kwon and ordered him to pay $5,098,249 in restitution to the Washington State Department of Revenue, plus restitution to the IRS.
The case was investigated by IRS-CI, with assistance from Homeland Security Investigations (HSI).
The case was prosecuted by Assistant United States Attorneys James Oesterle and Jonas Lerman.
Leader of Neo-Nazi group sentenced for plot targeting journalists and advocatesRead the Press Release
Seattle - Kaleb Cole, 26, a leader of the Neo-Nazi group Atomwaffen Division, was sentenced today in Seattle to 7 years in prison for his role in a plot to threaten and intimidate journalists and advocates who worked to expose anti-Semitism. At the sentencing hearing U.S. District Judge John C. Coughenour said, “We cannot tolerate his threats to silence others… To function as a democratic society, we need reliable and truthful journalists.”
In September 2021, a jury in the Western District of Washington convicted Cole of one count of interfering with a federally protected activity because of religion, three counts of mailing threatening communications, and one count of conspiring with other Atomwaffen members to commit three offenses against the United States––interference with federally-protected activities because of religion, mailing threatening communications, and cyberstalking.
“Kaleb Cole helped lead a violent, nationwide neo-Nazi group. He repeatedly promoted violence, stockpiled weapons, and organized ‘hate camps,’” said U.S. Attorney Nick Brown. “Today the community and those Mr. Cole and his co-conspirators targeted stand-up to say hate has no place here. He tried to intimidate journalists and advocates with hate-filled and threatening posters, tried to amplify their fear. Instead, they faced him in court and their courage has resulted in the federal prison sentence imposed today.”
Evidence introduced at trial showed that Cole and other members of Atomwaffen plotted to intimidate journalists and others by mailing threatening posters or gluing the posters to victims’ homes. The group focused primarily on those who are Jewish or journalists of color. Cole created the posters, which warned the recipients that “you have been visited by your local Nazis.” The posters contained threatening images, such as a hooded figure preparing to throw a Molotov cocktail at a house. The threatening posters were delivered to homes in late January 2020.
At trial, the victims described how receiving the posters impacted them. Some moved from their homes for a time or installed security systems. One purchased a firearm and took a firearms safety class. Another started opening her mailbox with a stick due to fear of what might be inside. One left her job as a journalist.
“Threats motivated by religious intolerance are antithetical to American values, even more so when they aim to intimidate journalists and others who are working to expose bigotry in our society.” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The defendant led a multi-state plot by a neo-Nazi group to threaten and intimidate journalists and advocates who were doing important work to expose anti-Semitism around the country. The Justice Department will continue to investigate and prosecute these hateful acts.”
“The defendant sought to intimidate journalists and advocates working to expose anti-Semitism, but that effort failed,” said Assistant Director Timothy Langan of the FBI’s Counterterrorism Division. “Cole’s intended victims fought back but not with threats of violence; they fought back in a court of law. The FBI will continue to do our part by aggressively investigating cases involving threats or acts of violence.”
“Mr. Cole displayed through his actions that his beliefs were more than just rhetoric. No doubt, the exemplary work of our investigators and partners prevented Cole’s targets from becoming victims of violence,” said Donald Voiret, Special Agent in Charge FBI- Seattle.
Three other co-conspirators––Cameron Shea, Johnny Roman Garza, and Taylor Ashley Parker-Dipeppe––previously pleaded guilty and were sentenced.
The case was investigated by the FBI’s Joint Terrorism Task Forces in Seattle, Tampa, Houston, and Phoenix, with assistance from the Seattle Police Department.
The case was prosecuted by Assistant U.S. Attorneys Thomas Woods and Seth Wilkinson for the Western District of Washington, and Civil Rights Division Trial Attorney Michael J. Songer, with valuable assistance provided by Trial Attorney David Smith of the National Security Division’s Counterterrorism Section and from U.S. Attorneys’ Offices in the Middle District of Florida, Southern District of Texas, District of Arizona, and Central District of California.
Leader of Neo-Nazi Group Sentenced for Plot to Target Journalists and AdvocatesRead the Press Release
A Washington man was sentenced today to 84 months, or seven years, in prison for his role in a plot to threaten and intimidate journalists and advocates who worked to expose anti-Semitism.
Kaleb Cole, 25, a leader of the Neo-Nazi group Atomwaffen Division, was convicted by a federal jury in the Western District of Washington of one count of interfering with a federally protected activity because of religion, three counts of mailing threatening communications, and one count of conspiring with other Atomwaffen members to commit three offenses against the United States – interference with federally-protected activities because of religion, mailing threatening communications, and cyberstalking.
“Threats motivated by religious intolerance are antithetical to American values, even more so when they aim to intimidate journalists and others who are working to expose bigotry in our society.” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The defendant led a multi-state plot by a neo-Nazi group to threaten and intimidate journalists and advocates who were doing important work to expose anti-Semitism around the country. The Justice Department will continue to investigate and prosecute these hateful acts.”
“Kaleb Cole helped lead a violent, nationwide neo-Nazi group,’” said U.S. Attorney Nick Brown for the Western District of Washington. “He repeatedly promoted violence, stockpiled weapons, and organized ‘hate camps’. Today the community and those Mr. Cole and his co-conspirators targeted, stand-up to say hate has no place here. He tried to intimidate journalists and advocates with hate-filled and threatening posters, tried to amplify their fear. Instead they faced him in court and their courage has resulted in the federal prison sentence imposed today.”
“The defendant sought to intimidate journalists and advocates working to expose anti-Semitism, but that effort failed,” said Assistant Director Timothy Langan of the FBI’s Counterterrorism Division. “Cole’s intended victims fought back but not with threats of violence; they fought back in a court of law. The FBI will continue to do our part by aggressively investigating cases involving threats or acts of violence.”
“Mr. Cole displayed through his actions that his beliefs were more than just rhetoric,” said Special Agent in Charge Donald Voiret of the FBI’s Seattle Field Office. “No doubt, the exemplary work of our investigators and partners prevented Cole’s targets from becoming victims of violence.”
Evidence introduced at trial showed that Cole and other members of Atomwaffen plotted to intimidate journalists and others by mailing threatening posters or gluing the posters to victims’ homes. The group focused primarily on those who are Jewish or journalists of color. Cole created the posters, which warned the recipients that “you have been visited by your local Nazis.” The posters contained threatening images, such as a hooded figure preparing to throw a Molotov cocktail at a house. The threatening posters were delivered to homes in late January 2020.
At trial, the victims described how receiving the posters impacted them. Some moved from their homes for a time or installed security systems. One purchased a firearm and took a firearms safety class. Another started opening her mailbox with a stick due to fear of what might be inside. One left her job as a journalist.
Three other co-conspirators – Cameron Shea, Johnny Roman Garza, and Taylor Ashley Parker-Dipeppe – previously pleaded guilty and were sentenced.
The case was investigated by the FBI’s Joint Terrorism Task Forces in Seattle, Tampa, Houston, and Phoenix, with assistance from the Seattle Police Department.
The case was prosecuted by Assistant U.S. Attorneys Thomas Woods and Seth Wilkinson for the Western District of Washington, and Civil Rights Division Trial Attorney Michael J. Songer, with valuable assistance provided by Trial Attorney David Smith of the National Security Division’s Counterterrorism Section and from U.S. Attorneys’ Offices in the Middle District of Florida, Southern District of Texas, District of Arizona, and Central District of California.
Lawrence Man Sentenced to 10 Years for Participating in a Conspiracy to Distribute FentanylRead the Press Release
CONCORD – Santo Benito Lara, 48, of Lawrence, Massachusetts was sentenced on Monday to 120 months in federal prison for participating in a conspiracy to distribute fentanyl, United States Attorney John J. Farley announced today. Lara was convicted by a federal jury on May 10, 2019.
Evidence presented during the four-day trial showed that beginning at least in May of 2018, the defendant participated in a conspiracy to sell fentanyl to a customer in Salem, New Hampshire. After the DEA received information about the conspiracy, it began an investigation into the Lara's activities. Between May and September of 2018, Lara and another individual sold fentanyl in Lawrence to a cooperating individual on multiple occasions.
Lara will likely face removal from the United States after serving his sentence.
“Drug traffickers who come to New Hampshire to sell fentanyl are endangering the lives of our state’s residents,” said U.S. Attorney Farley. “This ten-year sentence demonstrates that those who sell fentanyl in the Granite State will be held accountable for their unlawful conduct. We will continue to work closely with the DEA and all our law enforcement partners to protect public safety by identifying and prosecuting the drug dealers who seek to profit from selling deadly substances in New Hampshire.”
This matter was investigated by the Drug Enforcement Administration, with assistance from the New Hampshire State Police and the Essex County (MA) Sheriff’s Department. The case was prosecuted by Assistant U.S. Attorneys Anna Dronzek and Jarad Hodes.
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Las Vegas Man Sentenced to 29 Years in Prison for Series of Armed RobberiesRead the Press Release
LAS VEGAS – A Las Vegas man who was convicted of committing four armed robberies — including two bank robberies and a robbery of the same Starbucks coffeehouse twice — was sentenced today to 29 years in prison to be followed by three years of supervised release.
In May 2021, a jury convicted Edwin Arnold Jr., 25, of one count of conspiracy to interfere with commerce by robbery, one count of conspiracy to commit bank robbery, two counts of interference with commerce by robbery, two counts of bank robbery, and four counts of brandishing a firearm in a crime of violence. U.S. District Judge Andrew P. Gordon presided over the five-day jury trial and the sentencing hearing today.
According to court documents and evidence presented during trial, between December 2016 and January 2017, Arnold and co-conspirator Shamariae Marshon Jones (25), of Pasadena, California, robbed two banks and a Starbucks coffeehouse — stealing a total of $14,280. During each robbery, Arnold brandished a handgun at employees, demanded money, and threatened to shoot if they did not comply. On January 26, 2017, the FBI's Criminal Apprehension Team arrested Arnold and Jones when the two drove back to Arnold's residence immediately after committing their latest robbery.
Jones was found guilty of one count of conspiracy to commit bank robbery, two counts of bank robbery, and one count of brandishing a firearm in a crime of violence. Jones faces a statutory maximum penalty of life in prison at his sentencing hearing on January 18, 2022.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI made the announcement.
This case was investigated by the FBI and Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Allison Reese is prosecuting the case.
The case was brought as part of Project Safe Neighborhoods (PSN), a nationwide program by the Department of Justice that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Department announced the reinvigoration of PSN. For more information about PSN, visit www.justice.gov/usao-nv.
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Judge sentences Palmyra, Missouri man for possession of child pornographyRead the Press Release
ST. LOUIS – Stephen Lawrence, age 70, of Palmyra, Missouri, appeared before United States District Court Judge Steven R. Clark on today’s date. Based on a previous plea of guilty, Lawrence was sentenced to 60 months in federal prison followed by a lifetime of supervised release for possession of child pornography.
According to the plea agreement, on or about March 17, 2020, Microsoft reported to the National Center for Missing and Exploited Children that an individual, later identified to be Stephen Lawrence, utilized a Microsoft peer-to-peer account to obtain child pornography.
On June 2, 2020, law enforcement contacted Lawrence at his residence in Palmyra, Missouri, where he consented to law enforcement seizing and examining multiple electronic devices. It was determined that on or before June 2, 2020, the defendant possessed over sixty-nine thousand images and over nineteen hundred videos containing child pornography.
This case was investigated by the Federal Bureau of Investigation and the Internet Crimes Against Children Task Force at the St. Charles County Police Department.
Inmate Sentenced to More Than 12 Years in Prison on Assault ChargeRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a federal inmate on an assault charge, announced U.S. Attorney Prim F. Escalona and U.S. Secret Service Special Agent in Charge Patrick Davis.
U.S District Court Judge Liles C. Burke sentenced Lemond Lawrence Burns, 22, of Alpine, to 150 months in prison. Burns pleaded guilty to the assault of a Morgan County Corrections Officer resulting in bodily injury in October 2021.
“Corrections officers perform a difficult and sometimes dangerous job to ensure that inmates are housed safely,” U.S. Attorney Escalona said. “My office will not hesitate to prosecute any inmates who violate the law by attacking and injuring corrections officers.”
“Following his arrest on financial crimes charges, Lemond Burns assaulted a Morgan County Corrections Officer,” SAC Davis said. “We are thankful to our local law enforcement partners and the US Attorney’s Office for their efforts in the prosecution of this case. Law enforcement is a noble calling and any acts of violence against law enforcement cannot be tolerated in a just society.”
“Today, justice was served. I am grateful for U.S. Attorney Escalona and the U.S. Secret Service for their handling of this case,” Morgan County Sheriff Ron Puckett said. “Corrections Officers work tirelessly in a profession that many would never attempt. The senseless, brazen assault on Officer Evans was unacceptable and today's sentence reinforces that sentiment.”
According to the plea agreement, in April 2021, Burns was a federal inmate being held in custody at the Morgan County Jail. Burns was awaiting sentencing on a previous federal conviction. On April 19th, Burns assaulted a female corrections officer who was working at the jail. Burns punched her two times and knocked her to the ground. The corrections officer sustained injuries to her face and teeth and was transported to the hospital.
The U.S. Secret Service investigated the case along with Morgan County Sheriff’s Office. Assistant U.S. Attorney Robin B. Mark prosecuted the case.
Indiana man sentenced to 18 years in prison for sex trafficking conspiracyRead the Press Release
ALBUQUERQUE, N.M. – Matthew “Stacks” Woods, 32, of Indiana, was sentenced in federal court on Jan. 10 to conspiracy to commit sex trafficking by means of force, threats, fraud and coercion and aiding and abetting. Woods pleaded guilty on June 8.
Woods and his co-conspirators, Cornelius “Chip” Galloway and Marcus “Taylor Made” Taylor, were charged in a superseding indictment on Dec. 3, 2019, with seven counts of sex trafficking, conspiracy to commit sex trafficking and attempted sex trafficking. The charges included two counts of sex trafficking of minors.
In his plea agreement, Woods admitted to his part in the conspiracy to recruit, maintain, advertise and transport victims for the purpose of prostitution. The victims were expected to work when they were told, with no say over their hours, fees or the locations in which they were to perform sex acts. The victims were not allowed to keep any of the money paid for their services.
According to the plea, Galloway was the leader of the organization, Taylor transported the victims and Woods physically punished victims for non-compliance.
Upon his release from prison, Woods will be subject to 10 years of supervised release and will be required to register as a sex offender. Additionally, Woods must pay $5,000 under the Justice for Victims of Trafficking Act.
Galloway pleaded guilty on March 17, 2020, and was sentenced on Aug. 4, 2020, to 17 years in prison followed by 10 years of supervised release. Taylor pleaded guilty on May 21, 2020, and was sentenced on May 21, 2021, to eight years in prison followed by 10 years of supervised release. Both are required to register as sex offenders.
Homeland Security Investigations and the Albuquerque Police Department investigated this case with assistance from the Bernalillo County Sheriff’s Office. Assistant U.S. Attorneys Jack E. Burkhead and Letitia C. Simms prosecuted the case.
Illegal Possession of Firearms Results in Federal Prison Time for Two South Louisiana MenRead the Press Release
LAFAYETTE, La. - United States Attorney Brandon B. Brown announced that two men from the south Louisiana area were sentenced today by Chief United States Judge S. Maurice Hicks, Jr. for their illegal involvement with firearms.
Lance Lawtell Granger, 49, of Lafayette, Louisiana, was sentenced to 56 months in prison, followed by 3 years of supervised release, for being a convicted felon in possession of a firearm. On November 18, 2020, law enforcement officers with the Lafayette Police Department executed a search warrant at Granger’s residence and, while searching his bedroom, located a backpack containing a firearm and ammunition. Granger admitted to officers that the firearm and ammunition belonged to him and that he knew he was prohibited from possessing any firearm or ammunition because he was a convicted felon. His prior felony convictions are for possession with intent to distribute marijuana in 2009, along with possession with intent to distribute synthetic cannabinoids and attempted possession of firearm by a convicted felon in 2018.
This case was investigated by the ATF and Lafayette Police Department and prosecuted by Assistant U.S. Attorney Danny Siefker.
Cristian Eli Alvarez-Alvarez, 25, who was found to be living illegal in the United States, was sentenced to 16 months in prison for possession of a firearm by an illegal alien. On February 3, 2021, officers with the Lafayette Parish Sheriff’s Office responded to a call of shots being fired at a residence in Duson, Louisiana. During their investigation of these events, law enforcement agents learned that Alvarez-Alvarez was in possession of a firearm and that he was also a citizen of Honduras who was living illegally in the United States. Alvarez-Alvarez was charged in an indictment with possession of a firearm by an illegal alien and pleaded guilty to the charge on May 4, 2021.
This case was investigated by agents with the ATF, Department of Homeland Security-Immigration and Customs Enforcement, and the Lafayette Parish Sheriff’s Office. Assistant U.S. Attorney John W. Nickel prosecuted the case.
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Huntington Woman Pleads Guilty to Role in Nigerian Fraud SchemeRead the Press Release
HUNTINGTON, W.Va. -- A Huntington woman pleaded guilty today in connection with her role as a money mule in a Nigerian fraud scheme that scammed money from individuals, many of whom were elderly.
According to court documents and statements made during the plea hearing, Patricia Dudding, 69, acted as a money mule for a Nigerian scammer. In May 2018, Dudding met “Lucas” online and although they never actually met in person, Dudding and Lucas communicated frequently by email and text messages. Dudding set up numerous bank accounts in her name at several different banks that she would use to wire and receive fraudulent funds. Dudding received numerous deposits in those bank accounts from individuals located in the United States and abroad. She, and unnamed co-conspirators, would then transfer these funds to bank accounts located in Nigeria. To further the scheme, Dudding admittedly would make false and fraudulent representations to the financial institutions to make it appear that the wire transfers were being sent for legitimate purposes. On April 26, 2019, Dudding sent a wire transfer of $39,000 from her account to an individual in Montana. Upon questioning by a bank employee, Dudding lied about the wire transfer to aid Lucas in completing the transfer of funds to the designated recipient in Montana.
Over the course of the scheme, Dudding withdrew victim funds for her personal benefit. Dudding used the funds to pay her utility bills, satellite television service, groceries, drug store purchases, gasoline purchases, department store purchases, restaurants and took numerous cash withdrawals.
Dudding pleaded guilty to aiding and abetting an unlawful monetary transaction and faces up to 10 years in prison when she is sentenced on April 25, 2022. As part of her plea agreement, Dudding has agreed to pay $1,788,589.24 in restitution.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Secret Service, the Federal Deposit Insurance Corporation (FDIC) – Office of Inspector General and the South Charleston Police Department conducted the investigation.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Kathleen Robeson is prosecuting the case.
More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at https://www.ovc.gov.
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. 3:22-cr-00001.
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Helena man admits illegal possession of stolen gunpowder in pawn shop investigationRead the Press Release
GREAT FALLS — A Helena man admitted to an ammunitions crime today after he was accused of assisting a Helena pawn shop in the sale of 88 pounds of stolen gunpowder, U.S. Attorney Leif M. Johnson said.
Douglas Wayne Sillivan, 70, pleaded guilty to a superseding information charging him with prohibited person in possession of ammunition. Sillivan faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris set sentencing for April 28. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sillivan was released pending sentencing.
In court documents, the government alleged that an undercover investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives of Modern Pawn & Consignment, Inc., a federal firearms licensee and located in Helena, led to various charges against multiple defendants. After a July 2021 press release about the case, an East Helena resident contacted the ATF’s Helena Office to tell agents that the resident believed he or she may have purchased stolen gunpowder from Isaiah Morsette, a co-defendant who served as the pawn shop’s firearms and ammunition expert, in late February or early March 2021. The resident turned over about 88 pounds of gunpowder that had been taken from Montana Outdoor Sports, a theft that indirectly began the investigation into Modern Pawn. Sillivan was present for the transaction at Modern Pawn and helped the resident load the gunpowder into the resident’s vehicle. Sillivan has a felony conviction in Montana for sexual assault and was prohibited from possessing ammunition.
Morsette pleaded guilty to firearms charges in the case and is pending sentencing.
The case is being prosecuted by the U.S. Attorney’s Office and was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
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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Fort Wayne Man Sentenced to 252 Months in PrisonRead the Press Release
FORT WAYNE – Brendan Collicott, 27 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Judge Holly A. Brady after pleading guilty to multiple counts of using a firearm during a crime of violence, announced United States Attorney Clifford D. Johnson.
Collicott was sentenced to 252 months in prison followed by 3 years of supervised release. Collicott was also ordered to pay $400.00 restitution.
According to documents in the case, during the evening hours of January 21, 2018, and into the early morning hours of January 22, 2018, Collicott robbed four gas stations in Fort Wayne while armed with a firearm. For at least some of the robberies, Collicott was accompanied by another male. Collicott did not get more than a few hundred dollars at any of the gas stations. At the time of his apprehension, law enforcement recovered the loaded firearm used in the robberies.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives with the assistance of the Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
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.
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Former teacher sentenced to federal prison after admitting to child sexual exploitationRead the Press Release
AUGUSTA, GA: A former Aiken County, S.C., teacher was sentenced to more than a decade in federal prison after admitting to sexually exploiting a Columbia County, Ga., minor.
Jonathan Eugene Grantham, 45, of Graniteville, S.C., was sentenced to 140 months in prison after pleading guilty in U.S. District Court to Coercion and Enticement of a Minor to Engage in Sexual Activity, said David H. Estes, U.S. Attorney for the Southern District of Georgia. U.S. District Court Chief Judge J. Randal Hall also ordered Grantham to pay $50,000 in restitution, and to serve the rest of his life on supervised release and register as a sex offender after completion of his prison term.
There is no parole in the federal system.
“Our community rightly holds educators in high regard as it entrusts them with the care of some of our most vulnerable citizens,” said U.S. Attorney Estes. “Jonathan Grantham’s field of employment made it even more despicable that he participated in the depraved interstate sex trafficking of a child, and he deservedly will serve substantial prison time for his crimes.”
At the time of his arrest in February 2021, Grantham was employed as a teacher at Ridge Spring-Monetta High School in Ridge Spring, S.C. He later was terminated.
Grantham came to the attention of the FBI while agents were conducting the sex trafficking investigation of Michael Peyton Gunn, 36, of Evans, who faces a sentence of up to life in prison after his conviction at trial on nine felony charges including sex trafficking of a child.
Agents discovered that Grantham, in July 2019, traveled from South Carolina to Columbia County to engage in sexual activity with a victim who was under age 18. Grantham admitted responding to an online advertisement trafficking the minor victim, then traveling from South Carolina to Evans to transport the victim to a South Carolina motel for a sexual act in return for payment.
The investigation into related crimes in the case continues.
“It is tremendously upsetting that someone in a position entrusted to care for our children was involved in taking advantage of and sexually exploiting a minor,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI will spare no resource when it comes to bringing child predators, like Grantham, to justice.”
The case is being investigated by the FBI, and prosecuted for the United States by Assistant U.S. Attorney and Project Safe Childhood Coordinator Tara M. Lyons.
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 800-843-5678, or https://report.cybertip.org/.
Former Vermont Man Pleads Guilty to Theft of Government FundsRead the Press Release
CONCORD - Paul Gracey, 57, formerly of Vermont, pleaded guilty on Monday in federal court to theft of government funds, United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in October 2014, Gracey was found disabled and eligible for Supplemental Security Income (SSI) through the Social Security Administration (SSA). With limited exception, SSI benefits are available only to U.S. residents. Beneficiaries who leave the United States for more than 30 days or more consecutively are not considered to be back in the United States until the individual resides in the United States again for 30 days in a row.
Gracey was required to report certain changes, including whether he moved, within 10 days after the month the change took place. He moved to Mexico by February 2017 and was required to report that change to the SSA by March 2017. However, he never informed SSA of his move. Therefore, he was ineligible for SSI benefits until he reestablished residency in the United States.
Facebook records showed that Gracey admitted to living in Mexico between February 2017 and May 2021 to multiple people. During this timeframe, Gracey also asked several people in the United States to let him report their addresses to SSA as his own to cause the SSA to continue paying him SSI benefits. Due to his improperly reporting false addresses to the SSA, Gracey obtained $37,743 in SSI benefits he was not entitled to receive.
Gracey is scheduled to be sentenced on April 26, 2022.
“Federal benefits provide important financial support to qualified individuals,” said U.S. Attorney Farley. “Those who lie to obtain federal benefits are committing a serious federal crime. By moving to Mexico and creating a web of lies to continue to obtain SSI benefits, this defendant stole federal funds. Thanks to the hard work of the Office of the Inspector General, he is now being held accountable for his criminal conduct.”
“Supplemental Security Income is a needs-based safety net for the most vulnerable among us; Mr. Gracey intentionally concealed his living arrangements for several years to fraudulently receive benefits that he was not entitled to receive,” said Gail S. Ennis, Inspector General for the Social Security Administration. “My office will continue to hold accountable those who improperly obtain Social Security benefits. I thank the U.S. Attorney’s Office and Special Assistant U.S. Attorney Alexander S. Chen for prosecuting this case.”
This matter was investigated by the Social Security Administration’s Office of the Inspector General. The case is being prosecuted by Special Assistant U.S. Attorney Alexander S. Chen.
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Five Members of Pinellas County Drug Trafficking Conspiracy Charged and ArrestedRead the Press Release
Tampa, Florida –United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Jovante Raschod Thomas, a/k/a “Wood,” a/k/a “Tae” (40, Pinellas Park), Troy Lydell Mctier Jr. (29, St. Petersburg), Adrian Fulton Ashby, (50, St. Petersburg) Marquesha Dequaila Leseon Isaac a/k/a “Auntie,” a/k/a “Angie” (36, St. Peterburg), and Santino Eduardo Jimenez (39, Clearwater) with conspiracy to distribute and possess with the intent to distribute methamphetamine, cocaine, heroin, and fentanyl. If convicted on all counts, Jovante Thomas faces a minimum mandatory sentence of 10 years, and up to, life in federal prison. Troy Mctier and Santino Jimenez each face a minimum mandatory sentence of 5 years, and a maximum sentence of 40 years’ imprisonment. Adrian Ashby and Marquesha Isaac each face up to 20 years in federal prison. The indictment also notifies the defendants that the United States intends to forfeit any assets which are alleged to be traceable to proceeds of the offense.
According to the indictment, from at least October 2020, through January 4, 2022, the defendants conspired to distribute methamphetamine, cocaine, heroin, and fentanyl throughout the Middle District of Florida.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the Drug Enforcement Administration and the Pinellas County Sheriff’s Office as part of operation “Clean Up” – an Organized Crime Drug Enforcement Task Force (OCDETF) which identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States, using a prosecutor-led, intelligence-driven, multi-agency approach. It is being prosecuted by Assistant United States Attorney Diego F. Novaes.
Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Fentanyl Traffickers Appear in Federal CourtRead the Press Release
HUNTINGTON, W.Va. – Two fentanyl traffickers appeared before U.S. District Judge Robert C. Chambers in Huntington this week, announced United States Attorney Will Thompson.
According to court documents, James Lennon Pace, 33, of Huntington, was sentenced to a total of 13 years and eight months in federal prison. On March 16, 2021, Huntington Police Officers executed a search warrant at Pace’s residence on Charleston Avenue in Huntington. Pace was present just prior to the search and arrested on an unrelated warrant. During the search, officers seized a number of items including fentanyl, three firearms, and items used to prepare fentanyl for distribution. Pace admitted that he possessed the firearms and that he intended to distribute the fentanyl. Pace was on supervised release for a prior drug conviction at the time of the offense. In August 2021, Pace pleaded guilty to possession with intent to distribute 40 grams or more of fentanyl. Assistant United States Attorney Joseph F. Adams handled the prosecution. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Huntington Police Department conducted the investigation.
In a separate case, Martez D. Foy, 28, of Detroit, Michigan pleaded guilty to distribution of fentanyl. According to court documents, Foy admitted that on March 10, 2021, he sold approximately five grams of fentanyl to an undercover informant. Foy also admitted that he sold an additional five grams of fentanyl to an undercover informant on April 13, 2021. Foy faces up to 20 years in prison when he is sentenced on April 11, 2022. The Drug Enforcement Administration (DEA) and the Cabell County Sheriff’s Office conducted the investigation. Assistant United States Attorney Courtney L. Cremeans is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 3:21-cr-00104/3:16-cr-00065(Pace) and 3:21-cr-00222(Foy).
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Federal Indictment Charges Chicago Attorney with Insider TradingRead the Press Release
CHICAGO — A Chicago attorney used insider information obtained from a friend to purchase shares of an education-technology company before it publicly announced strong quarterly earnings, according to an indictment returned in federal court.
The indictment accuses attorney DAVID SARGENT of obtaining material, non-public information from CHRISTOPHER KLUNDT, a management-level employee of the company and a friend since college. The information pertained to the company’s 2020 first-quarter earnings, which Klundt knew would be strong based on internal meetings he had attended, the indictment alleges. After receiving the information from Klundt, Sargent purchased numerous shares and call options of the company’s stock ahead of the earnings announcement and then sold them shortly thereafter, the indictment states. In the interim, the company’s stock price increased. Sargent made approximately $110,000 from the trades, the charges allege.
The indictment was returned Monday in U.S. District Court in Chicago. It charges Sargent, 37, of Chicago, and Klundt, 38, of San Francisco, Calif., with conspiracy, insider trading, and securities fraud. Arraignments in federal court in Chicago have not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Assistant U.S. Attorneys Matthew Getter and Vikas Didwania represent the government.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Detroit Man Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – A Detroit, Michigan man pleaded guilty today to a federal drug trafficking crime.
According to court documents, Augustus Darryl Jones, Jr., 30, arranged to distribute methamphetamine to a confidential informant on November 10, 2021 in Huntington. When Jones was in route to conduct the drug transaction, a West Virginia State Police Trooper conducted a traffic stop on his vehicle and seized 460 grams of methamphetamine. Jones admitted he possessed and intended to distribute the methamphetamine to the informant.
Jones pleaded guilty to possession with intent to distribute 50 grams or more of methamphetamine and faces at least five years and up to 40 years in prison when he is sentenced on April 25, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the West Virginia State Police and the Cabell County Sheriff’s Office.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams 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. 3:21-cr-00242.
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Defendant Sentenced to Life in Prison for Double Murder on Indian ReservationRead the Press Release
RENO, Nev. – A Fort McDermitt Shoshone Paiute Tribe member was sentenced today to a term of life in prison as to both counts to run consecutively to each other for murdering two women who were also Tribe members.
According to court documents and evidence presented during trial, on January 31, 2018, Stoney Prior (43) shot and killed two women on the Fort McDermitt Indian Reservation, inside the home of one of the victims.
In August 2021, a jury convicted Prior of two counts of second-degree murder in Indian Country. U.S. District Judge Larry R. Hicks presided over the jury trial and the sentencing hearing today.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI made the announcement.
This case was a joint investigation by the FBI and the Bureau of Indian Affairs, with assistance from the Humboldt County Sheriff’s Office. Assistant U.S. Attorneys Penelope Brady and Richard Casper prosecuted the case.
If you have information concerning a missing or murdered person in Indian Country, you are urged to contact your local FBI office or submit a tip online – tips can remain anonymous – at TIPS.FBI.GOV.
The Department of Justice is committed to addressing violent crime in native communities and to improving the federal response to reports of missing or murdered American Indians or Alaska Natives. For more information about the Department’s Missing and Murdered Indigenous Persons initiative, visit: www.justice.gov/tribal.
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Dark Web Drug Trafficker Sentenced to 160 Months in Federal PrisonRead the Press Release
Miami, Florida – A federal district judge in West Palm Beach, Florida sentenced a 26-year- old Arizona man to 160 months in prison for selling crystal methamphetamine, cocaine, and other illegal drugs on the dark web to buyers across the country, including South Florida.
From 2018 to 2020, Jose Rodolfo Barraza Flores advertised and sold crystal methamphetamine, cocaine, M-30 pills (fentanyl-laced Percocet pills), and other narcotics through vendor accounts that he established on darknet marketplaces like White House Market, Empire Market and Yellowbrick Road. Once a buyer placed an on-line order and paid for it with bitcoin, Barraza Flores would mail the illegal drugs to the buyer. To avoid detection, Barraza Flores concealed the narcotics inside wax candles, which he melted, molded, and packaged inside a trailer in Arizona.
In October 2021, Barraza Flores pleaded guilty to conspiracy to distribute a controlled substance and three counts of distribution of a controlled substance. U.S. District Judge Aileen M. Cannon imposed the sentence.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida; George L. Piro, Special Agent in Charge, FBI Miami; Joseph W. Cronin, Inspector in Charge, United States Postal Investigation Service (USPIS), Miami Division; and Deanne L. Reuter, Drug Enforcement Administration (DEA), Miami Field Division announced the sentence.
FBI Miami, USPIS Miami, and DEA Miami investigated the case, with assistance from their Phoenix counterparts. Assistant U.S. Attorney Aurora Fagan is prosecuting the case. Assistant U.S. Attorney William Zloch is handling the asset forfeiture aspect of the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-80029.
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Construction Contractor Pleads Guilty to Tax EvasionRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Thomas Fattorusso, the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced that MARIO G. NUNES pled guilty today to tax evasion and filing false federal income tax returns, before United States District Judge Nelson S. Román, in White Plains federal court.
U.S. Attorney Damian Williams said: “As he admitted in court, the defendant engaged in a scheme to evade paying federal income taxes for years, including by concealing business income, making false statements to the IRS, and filing false federal income tax returns. Nunes has now pled guilty to federal crimes and faces time in federal prison, another example that attempting to conceal income and filing false returns are ultimately far costlier than filing accurate returns and paying one’s taxes due.”
IRS-CI Special Agent in Charge Thomas Fattorusso said: “Mr. Nunes attempted the cheat the system but the system caught up with him. Thanks to the efforts of our IRS-CI Special Agents, Mr. Nunes will now be held to account for the lies, evasion and false returns he used to shelter more than $1.5 million dollars from taxation.”
According to the Information to which NUNES pled guilty and statements made in court:
NUNES was an independent contractor who performed construction work, including as a subcontractor for commercial and residential masonry and concrete projects. NUNES filed false federal income tax returns for tax years 2012 through 2017 and, from in or about March 2014 through in or about May 2019, orchestrated a scheme to evade payment of his unpaid assessed federal income taxes, including by falsely informing the IRS, in response to its collection efforts, that he was unemployed and relying on family and friends for living expenses. At the same time, NUNES concealed more than $1.5 million in business income by, among other things, depositing business receipts into personal bank accounts, cashing checks received from customers rather than depositing the funds into a bank account, and instructing customers to pay his suppliers directly.
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NUNES, 59, of Yonkers, New York, pled guilty to one count of tax evasion, which carries a maximum sentence of five years in prison, and six counts of subscribing to false tax returns, each of which carries a maximum sentence of three years in prison. NUNES has agreed to pay restitution to the IRS, representing the additional tax due and owing as a result of his conduct, in the amount of at least $330,833. Sentencing before Judge Román is scheduled for April 14, 2022, at 10:00 a.m.
The statutory maximum sentences are prescribed by Congress and are provided here for information purposes only, as any sentence imposed on the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of IRS-CI in this case.
The case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorney Jeffrey C. Coffman is in charge of the prosecution.
Conroe man charged with funneling money to IndiaRead the Press Release
HOUSTON – A 48-year-old local man has been taken into custody on charges of obtaining over $600,000 from elderly victims throughout the country, announced U.S. Attorney Jennifer Lowery.
Authorities arrested Anthony Munigety, 48, today. He is expected to make his initial appearance before U.S. Magistrate Judge Edison at 2 p.m. Also charged is Ravi Kumar of Noida, India. He is believed to be in India and considered a fugitive. A warrant remains outstanding for his arrest.
A federal grand jury returned a 20-count indictment Dec. 15, 2021.
According to the allegations, the fraud ring operated out of the Conroe area and other locations in the United States and India. Munigety, Kumar and others allegedly committed various fraud schemes targeting primarily elderly victims throughout the United States.
The primary objective, according to the indictment, was to deceive victims by telling them a technical support company or other entities were purportedly helping them with their computers. They would allegedly trick victims into believing they had been erroneously refunded or overpaid and needed to return the overpayment.
The indictment alleges they were able to gain access to a victim’s computer. This enabled Munigety, Kumar and others to move funds between or wire transfer monies out of their accounts, according to the charges. Once that occurred, Munigety and others would keep a portion of the money and wire the remainder to Kumar in India, according to the charges.
As a result of their scheme, Munigety and others allegedly received over $600,000 from elderly victims.
Munigety and Kumar are charged conspiracy to commit money laundering, 13 counts of wire fraud and six counts of money laundering.
If convicted, they face up to 20 years on each count as well as a possible $250,000 maximum fine.
IRS – Criminal Investigation and FBI conducted the investigation. Assistant U.S. Attorney Quincy L. Ollison is prosecuting the case.
The U.S. Attorney’s Office for the Southern District of Texas is a member of the Department of Justice’s Elder Justice Initiative which combats elder abuse, neglect and financial fraud and scams that target our nation’s seniors.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Cincinnati residents charged with making straw purchases of firearmsRead the Press Release
CINCINNATI – A federal grand jury has charged two individuals from Cincinnati with crimes related to making straw purchases of firearms.
Jermaine Pulley, 29, and Nylisha Hill, 22, are charged with conspiring to commit a felony against the United States by making false statements during purchases of firearms, including by lying on federal firearms forms.
Hill is scheduled to make her initial appearance in federal court this afternoon.
According to the indictment that was unsealed yesterday, Pulley was prohibited from possessing firearms under the terms of his probation. The indictment alleges that Pulley would provide Hill with cash to purchase firearms on his behalf and that the defendants would then make false representations to federal firearms licensees, to the effect that Hill, not Pulley, was the true purchaser of the firearms.
It is alleged the defendants visited two area federal firearms licensees on Oct. 12, 2021, in an attempt to purchase multiple firearms.
Pulley allegedly attempted to pay for a firearm at Shoot Point Blank – Cincy West, saying that he was paying for the firearm, but that it was for Hill’s use.
That same day, the defendants purchased two firearms at Shoot Point Blank – Blue Ash. Shortly after purchasing the firearms, it is alleged they attempted to buy two more.
Making a false statement on federal firearms forms is punishable by up to 10 years in prison. Conspiring to commit a felony crime against the United States carries a potential penalty of five years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; and Roland H. Herndon, Jr., Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), announced the charges. 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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Cedar Rapids Man Sentenced to Five Years in Prison for His Role in Selling HeroinRead the Press Release
A Cedar Rapids, Iowa, man who was involved in the distribution of heroin was sentenced today to five years in federal prison.
Antoine D. Jackson, age 35, from Cedar Rapids, Iowa, received the prison sentence after a June 21, 2021 guilty plea to conspiracy to distribute at least 100 grams of heroin.
Evidence at the plea and sentencing hearings showed that in 2017 and 2018, Jackson and one other individual worked together to sell heroin in the Cedar Rapids area. In January 2018, investigators conducted a wiretap investigation of a phone operated by Jackson’s accomplice. Multiple people called the phone daily to arrange for heroin deals. Jackson’s accomplice would set up the deal, but Jackson would show up to deliver the heroin. Jackson generally distributed .2 gram of heroin per transaction. In total, Jackson personally distributed at least 46 grams of heroin.
Jackson was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Jackson was sentenced to 60 months’ imprisonment. He must also serve a five-year term of supervised release after the prison term and pay a $100 special assessment fee. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Ashley Corkery and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration Cedar Rapids Resident
Office, the Iowa Division of Narcotics Enforcement, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Cedar Rapids Police Department, and the Linn County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-6.
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Buffalo Man Arrested Following Months of Surveillance Going to Prison for Five Years on Crack Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. – U.S. Attorney Trini E. Ross announced today that James Terrell, 37, of Buffalo, NY, who was convicted of possession with intent to distribute 500 grams or more of cocaine, was sentenced to serve 60 months in prison by U.S. District Judge John L. Sinatra, Jr.
Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that in the summer of 2019, investigators learned that Terrell was involved in bulk currency money drops. On August 20, 2019, Terrell was observed exchanging a bag and a traffic stop was conducted on Terrell’s vehicle. Investigators seized $80,110 and two cellular telephones from inside the center console of the vehicle. On April 9, 2020, Terrell was observed leaving an Earl Place residence with a package, which contained a kilogram of cocaine.
The sentencing is the result of an investigation by Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Matthew Scarpino; the Erie County Sheriff’s Office, under the direction of Sheriff John Garcia; and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
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Bucks County Man Sentenced to 140 Months’ Imprisonment for Methamphetamine TraffickingRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Nicholas Eastman, age 32, of Doylestown, Pennsylvania, was sentenced on January 7, 2022, to 140 months’ imprisonment by U.S. District Court Judge Christopher C. Conner for drug trafficking.
According to United States Attorney John C. Gurganus, Eastman previously pleaded guilty to possessing at least 500 grams of methamphetamine for further distribution in the Middle and Eastern Districts of Pennsylvania between 2017 and 2019.
This matter was investigated by the Federal Bureau of Investigation, and the Pennsylvania State Police. Assistant U.S. Attorney William Behe prosecuted the case.
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.
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Boxford Plumbing Company Owner Charged with Tax Evasion and Mail FraudRead the Press Release
BOSTON – A Boxford businessman was charged today and has agreed to plead guilty to defrauding the government of more than $1.45 million by engaging in a multi-year tax evasion scheme and to defrauding a customer by billing him for plumbing services he did not perform.
Jared Derrico, a/k/a “Jay,” 35, was charged and has agreed to plead guilty to one count of tax evasion and two counts of mail fraud. A plea hearing has not yet been scheduled by the Court.
According to the charging documents, for tax years 2015 through 2019, Derrico operated a plumbing business known, variously, as Derrico Services and The Pipe Surgeon. During that time, Derrico allegedly cashed payments from his customers or deposited them into his personal accounts, but did not report this income on this tax returns. It is also alleged that Derrico fraudulently obtained payments for installing air conditioning units at a property in Boston, but in fact, did not install the units.
The charge of tax evasion provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of mail fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. According to the terms of the plea agreement, Derrico will pay restitution to the IRS and will be required to pay restitution to the victims of the charged scheme to defraud, if accepted by the Court. 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 Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. The United State Postal Inspection Service and the Ipswich Police Department also provided valuable support in the investigation. Assistant U.S. Attorney Kriss Basil of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.