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5 January 2022
Michigan man sentenced to federal prison for producing child pornographyRead the Press Release
SAVANNAH, GA: A Michigan man has been sentenced to more than two decades in federal prison after admitting that he produced child pornography while previously residing in Savannah.
Bobby Fields, 42, of Lansing, Mich., was sentenced to 310 months in prison after pleading guilty to Production of Child Pornography, said David H. Estes, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge R. Stan Baker also ordered fields to register as a sex offender and serve 10 years of supervised release after completion of his prison sentence. There is no parole in the federal system.
“Production of child pornography creates lifelong victimization of innocent children,” said U.S. Attorney Estes. “The significant prison sentence for Bobby Fields should serve as a strong warning to anyone who would exploit our most vulnerable citizens.”
Fields was indicted in July 2020 after an investigation into child pornography discovered on a laptop linked him to the illegal material’s creation as early as October 2016 through images that captured distinctive tattoos on Field’s arm.
“The GBI will continue to work tirelessly to protect innocent victims of online exploitation,” said Georgia Bureau of Investigation Director Vic Reynolds. “We are grateful for the partnerships we maintain with our local and federal agencies to bring these predators to justice.”
The case was investigated by the Savannah Police Department and Homeland Security Investigations, with assistance from the Georgia Bureau of Investigation and the U.S. Marshals Service, and prosecuted for the United States by Assistant U.S. Attorneys Jennifer Kirkland 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/.
Members and Associates of Violent Newark Criminal Enterprise Charged with Firearms and Controlled Substance OffensesRead the Press Release
NEWARK, N.J. – Two members of a violent street gang operating in Newark were arrested today on charges of possession with intent to distribute controlled substances and possession of firearms in furtherance of drug trafficking offenses, U.S. Attorney Philip R. Sellinger announced.
Hazir Burwell, aka “Hazzy,” 19, and Jaizon Bennett, aka “Glizzy,” 19, both of Newark, are each charged by complaint with one count of possession with intent to distribute controlled substances and one count of possession of a firearm in furtherance of a drug trafficking crime. They both appeared today by videoconference before U.S. Magistrate Judge Cathy L. Waldor and were and were detained.
“Today’s charges demonstrate the importance and effectiveness of our collaborative approach to combating violent crime,” U.S. Attorney Sellinger said. “We are committed to working with our state and local partners in law enforcement to ensure that those individuals who commit acts of violence and cause harm to our communities are held accountable for their actions.”
“I am grateful for our partnership with U.S. Attorney Sellinger’s office to reduce violent crime in Newark,” Newark Public Safety Director Brian O’Hara said. “These arrests are truly impactful for those in our community most harmed by such weapons of war and dangerous drugs, and this will result in lives saved not only from gun violence, but from drug overdoses as well. Thanks to the U.S. Attorney’s Office, the federal charges these suspects now face should send a strong, unified message that we are all very serious about ensuring that our neighborhoods are safe.”
“Today’s arrests are part of an ongoing coordinated strike by law enforcement to address the gang-related violence and reduce the guns and drugs on the streets of Newark,” FBI Newark Special Agent in Charge George M. Crouch Jr. said. “The Newark Division is committed to working side by side with our local, state, and federal partners to improve the quality of living in our communities.”
According to documents filed in this case and statements made in court:
Since at least February 2021, law enforcement officials have been investigating a criminal enterprise in Newark operating in the area of Evergreen Avenue and Hanford Street, known as “Seth Boyden” or the “500 block.” The investigation, which has been centered on drug distribution and acts of violence that have occurred on and around Hanford Street, a dead-end block just north of Evergreen Avenue, revealed that both Burwell and Bennett are members and associates of this criminal enterprise who distribute controlled substances and commit acts of violence for and on behalf of the enterprise.
Members of the Newark Police Department, with assistance from the FBI, arrested Burwell and Bennett today on state charges that pertain to a March 2021 shooting. At the time of his arrest, Burwell was found in possession of 188 glassine envelopes of suspected heroin; 24 jugs of suspected cocaine base; a 9mm Smith & Wesson M&P semi-automatic pistol loaded with nine rounds of 9mm ammunition; two extended magazines capable of holding 30 rounds of ammunition; and a drum magazine capable of holding 50 rounds of ammunition. At the time of his arrest, Bennett was found in possession of 50 glassine envelopes of suspected heroin and a 9mm Taurus G2C handgun with a defaced serial number, which was loaded with eight rounds of 9mm ammunition.
The charge of possession with intent to distribute controlled substances carries a maximum potential penalty of 20 years in prison and a $1 million fine. The charge of possession of a firearm in furtherance of drug trafficking offense carries a mandatory minimum sentence of five years in prison imprisonment, a maximum potential penalty of life in prison, and a $250,000 fine.
U.S. Attorney Sellinger credited the Newark Department of Public Safety, under the direction of Public Safety Director O’Hara, and special agents of the FBI, under the direction of Special Agent in Charge Crouch in Newark, with the investigations leading to the charges and arrests. He also thanked the Bloomfield Police Department, the Essex County Sheriff’s Office, the Essex County Department of Corrections and the N.J. State Board of Parole for their assistance.
This case is part of the Violent Crime Initiative (VCI) in Newark. The VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety to combat violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office; the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration, New Jersey Division; the U.S. Marshals; the Newark Department of Public Safety; the Essex County Prosecutor’s Office; the Essex County Sheriff’s Office; the N.J. State Board of Parole; the Union County Jail; the N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center; the N.J. Department of Corrections; the East Orange Police Department; and the Irvington Police Department.
The government is represented by Assistant U.S. Attorney Cassye Cole of the U.S. Attorney’s Office’s Organized Crime and Gangs Unit in Newark.
The charges and allegations in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Man Indicted for Passing Counterfeit BillsRead the Press Release
WICHITA, KAN. – A federal grand jury in Wichita, Kansas, returned an indictment charging an Oklahoma man with two counts of uttering of counterfeit obligations.
According to court documents, Chad R. Johnson, 38, is accused of passing six counterfeit $50 bills to a business in August 2021 and passing three counterfeit $100 bills to a business in September 2021.
The U.S. Secret Service is investigating the case.
Assistant U.S. Attorney Alan Metzger is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Man Indicted for Making and Spending Counterfeit BillsRead the Press Release
WICHITA, KAN. – A federal grand jury in Wichita, Kansas, returned an indictment charging a Kansas man with two counts of possession of counterfeit obligations, one count of possession and uttering of counterfeit obligations, and one count of manufacture of counterfeit obligations.
According to court documents, Johnny Hockaday, 57, of Wichita, is accused of manufacturing and possessing counterfeit federal currency of various denominations in 2019. He is also accused of attempting to defraud a business using four counterfeit $100 bills in September 2021.
The U.S. Secret Service is investigating the case.
Assistant U.S. Attorney Alan Metzger is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Maine Woman Sentenced to 24 Months for Stealing over $200,000 from Her EmployerRead the Press Release
CONCORD - Raylene Vaillancourt, 68, of Eliot, Maine sentenced to 24 months in federal prison for wire and mail fraud, United States Attorney John J. Farley announced today.
According to court documents and statements made in court, Raylene Vaillancourt worked as the office manager for “Business A,” a limited liability company based in Portsmouth, New Hampshire. Vaillancourt was responsible for accounting and making payments to vendors.
Between at least April of 2009 and May of 2018, Vaillancourt embezzled money from Business A and its owner through various means, including: (a) making fraudulent checks drawn on Business A’s checking account; (b) making unauthorized transfers to her personal financial accounts for her personal expenses; and (c) making unauthorized online payments from Business A’s checking account to pay her personal credit card debt. As part of Vaillancourt’s scheme, she altered Business A’s internal accounting records to conceal her embezzlement from her employer. In total, Business A lost approximately $200,000 due to the defendant’s scheme.
Court documents also show that Vaillancourt stole money from at least three prior employers and previously was convicted of a federal charge of bank theft.
Vaillancourt previously pleaded guilty on June 17, 2021. In addition to her prison sentence, she was ordered to pay restitution and forfeit $203,106.32 to the United States.
“Like many white-collar criminals, this defendant took advantage of the trust of others to steal large sums of money,” said U.S. Attorney Farley. “By embezzling over $200,000 from her employer, Ms. Vaillancourt’s brazen actions caused significant financial harm and showed that she was not deterred from crime by a prior federal conviction. As this case demonstrates, we work closely with the FBI to identify and prosecute fraudsters and seek justice for the victims of their heartless crimes.”
“On at least four occasions, Raylene Vaillancourt abused the trust of her employers by stealing from them. In this case, she embezzled more than $122,0000 to pay the mortgage on her home in Portsmouth, New Hampshire. Ms. Vaillancourt has shown absolutely no remorse, and no respect for the law, and with today’s sentence, her crime spree has finally come to an end and she has been held accountable,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division.
This matter was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Cam Le. The forfeiture aspects of this matter were handled by Assistant U.S. Attorney Robert Rabuck.
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Laurel Man Pleads Guilty to Enticement of a MinorRead the Press Release
Baltimore, Maryland – Kyle Elio Ripper, age 24, of Laurel, Maryland, pleaded guilty today to enticement of a minor.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; and Sheriff Joseph Gamble of the Talbot County Sheriff’s Office.
According to his guilty plea, on January 17, 2020, the Talbot County Sheriff’s Office was investigating a complaint, and during the course of that investigation, law enforcement discovered evidence that an adult male had sexual contact with a 14-year-old male (Minor Victim 1).
As detailed in his plea agreement, on March 10, 2020, law enforcement executed search warrants at Ripper’s Laurel, Maryland residence and his vehicle. As a result of the executed search warrants, investigators seized several electronic devices including a laptop containing a 500 GB internal hard disk drive, a 2 TB hard drive, and a cell phone. Upon further investigation and review of Ripper’s devices, investigators discovered that Ripper had communicated with minors via the internet and engaged in sexual relations with at least two minor victims.
Specifically, on December 28, 2019, Ripper engaged in a sexual conversation with Minor Victim 1 in which Ripper requested that the minor send him an image of Minor Victim 1’s genitals. Ripper also requested to film a sexual encounter with the victim. Ripper traveled to the victim’s residence, engaged in sexual relations with the minor victim, and recorded the sexual encounter on his cell phone. Additional evidence from Ripper’s cell phone revealed that in January 2020, Ripper also communicated with a 16-year-old male victim (Minor Victim 2). During their communications, Ripper requested and received at least one sexual image of Minor Victim 2. According to communications on Ripper’s phone, Ripper traveled to Minor Victim 2’s residence to pick up the victim, and then he took the victim to Ripper’s Anne Arundel County, Maryland residence, and engaged in sexual acts with Minor Victim 2.
Additionally, upon forensic review of Ripper’s hard drives and laptop, investigators discovered evidence of Ripper’s sexual abuse of Minor Victim 1 and Minor Victim 2, as well as Ripper’s possession of thousands of images and videos depicting the sexual abuse of children. For example, Ripper’s computer contained over 4,000 images and videos of child pornography, including a nine-minute video depicting the sexual abuse of a female toddler and multiple videos depicting the sexual abuse of an infant.
As stated in his plea agreement, Ripper admitted that he knew Minor Victim 1 was 14-years-old before engaging in sexual acts with the victim and he admitted to driving to the minor’s residence to engage in sexual relations with Minor Victim 1 on two occasions. Ripper also admitted to having sex with Minor Victim 2.
Ripper faces a minimum sentence of 10 years in prison and a maximum of life in prison followed by up to a lifetime of supervised release for enticement of a minor. U.S. District Judge Stephanie A. Gallagher has scheduled sentencing for March 21, 2022 at 10:00 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Erek L. Barron commended the HSI and the Talbot Sheriff’s Office for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Christine L. Duey and Abigail Ticse, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Las Vegas Man Sentenced to Prison for Three Armed RobberiesRead the Press Release
LAS VEGAS – A Las Vegas man was sentenced today to 25 years and 9 months in prison for his role in a series of violent armed robberies in September 2019.
According to court documents and evidence presented at trial, from September 6 to September 9, 2019, Lesean Roger Dennis Braddock Jr. (29) and co-conspirator Byron Joshua Jarell Porter (24) robbed three businesses at gunpoint in Las Vegas and Henderson. Braddock and Porter committed the armed robberies while Braddock was on state parole after serving a significant prison term for a robbery in California.
Following a three-day jury trial in August 2021, Braddock was convicted of one count of conspiracy to commit interference with commerce by robbery, three counts of interference with commerce by robbery, and three counts of brandishing a firearm during and in relation to a crime of violence. Porter pleaded guilty in October 2020 and is scheduled to be sentenced in February 2022.
In addition to the prison term, U.S. District Judge James C. Mahan sentenced Braddock to five years of supervised release.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI made the announcement.
This case was investigated by the FBI, the Henderson Police Department, and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Brian Whang prosecuted the case.
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KC Man Pleads Guilty After Crashing into Federal Deputy Marshals While Attempting to Flee in Stolen TruckRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man who injured two United States deputy marshals by crashing into them while attempting to flee in a stolen truck pleaded guilty in federal court today to forcibly resisting federal law enforcement officers.
Ray E. Clevenger, 46, pleaded guilty before U.S. District Judge Howard F. Sachs to two counts of forcibly resisting a federal law enforcement officer.
Law enforcement officers located Clevenger, who was being sought on a state felony arrest warrant, at a Quality Inn in Kansas City, Mo., on Dec. 30, 2020. Clevenger left his hotel room shortly after noon with a woman and got into a Ford Explorer, which was later identified as stolen. Officers activated their flashing multi-colored police emergency lights and sirens as they approached Clevenger.
Clevenger quickly accelerated the Explorer from the parking space it had been backed into, and struck the front of a police vehicle. Clevenger continued to attempt to escape while recklessly driving the Explorer at a high rate of speed. Clevenger drove across the hotel’s parking lot with his tires squealing and drove near the exit on the west side of the property. A federal deputy marshal attempted to prevent Clevenger from leaving the parking lot by positioning his police vehicle in front of the exit and striking the Ford Explorer, causing Clevenger to lose control of his vehicle. Clevenger regained control of the vehicle, then fled across the hotel’s lawn and sidewalk toward the east side of the property. Another deputy marshal struck Clevenger’s vehicle on the passenger rear wheel well in an attempt to prevent his escape. Clevenger continued to flee and returned to the west side of the property, where he rammed one of the police vehicles for the second time with enough force to push the SUV into a fence that surrounded the parking lot. Clevenger pushed the police vehicle with enough force that it also struck another police vehicle, which in turn struck a deputy marshal who was on foot.
Clevenger’s vehicle then stopped and he was arrested. Officers searched Clevenger’s stolen vehicle and found a Springfield .40-caliber semi-automatic handgun that had been reported stolen, loaded with an extended magazine, a makeup case that contained approximately 69 grams of methamphetamine and marijuana, and drug paraphernalia.
The two deputy marshals suffered physical injuries as a result of Clevenger’s reckless driving while attempting to avoid arrest. Those injuries required one of the deputy marshals to be treated by emergency medical officials at the scene. The other deputy marshal was provided medical care and instructed to seek follow-up medical care.
Under federal statutes, Clevenger is subject to a sentence of up to 20 years in federal prison without parole on each of the two counts. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Stefan C. Hughes. It was investigated by the U.S. Marshals Service and the FBI.
Judge sentences previously convicted felon for illegal possession of a firearmRead the Press Release
ST. LOUIS – Pierre Phenix, 30, of St. Louis, Missouri appeared before United States District Court Judge Henry E. Autrey on today’s date and was sentenced to 10 years in prison. Phenix previously pleaded guilty to the charge of being a previously convicted felon in possession of a firearm in July 2021.
On March 31, 2021, Phenix was arrested in St. Louis County, within the Eastern District of Missouri, while possessing a firearm. On that day, police were surveilling Phenix to arrest him on active warrants, and to take custody of three minor children who were supposed to be in the custody of the Children’s Division. Police surveilled Phenix, waiting for him to exit his vehicle so that police could arrest him without endangering the children.
As Phenix arrived at a car wash and exited the vehicle, police stopped him and arrested him. He was carrying a handgun in his left armpit. Security camera footage from the car wash showed that when he exited the vehicle, the handgun was in his right pant pocket, with its extended magazine protruding from his pocket. Once he exited the vehicle, the security footage shows him remove the handgun from his pocket and place it in his armpit, between his left arm and torso. When police arrested him, they seized the firearm. A search of Phenix’s car led to the discovery of 4.5 grams of crack cocaine and a spare 50-round drum magazine for the handgun.
This case was investigated by the St. Louis Metropolitan Police Department and the Federal Bureau of Investigation.
Jefferson County man admits to drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Camren Allen Klimes, of Harpers Ferry, West Virginia, has admitted to a drug charge, United States Attorney William Ihlenfeld announced.
Klimes, also known as “Cam,” 27, pleaded guilty today to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine Base and Cocaine Hydrochloride.” Klimes admitted to working with others to distribute drugs from July 2018 to June 2021 in Jefferson County and elsewhere.
Klimes faces up to 20 years of incarceration and fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The FBI; U.S. Marshals Service; Homeland Security Investigations; the West Virginia Air National Guard; the Eastern Panhandle Drug Task Force, a HIDTA-funded initiative; the West Virginia State Police, the DEA Task Force Montgomery County, Maryland; and the Frederick, Maryland, HIDTA group investigated. The EPDTF consists of the West Virginia State Police, Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office, Ranson Police Department, the Charles Town Police Department, and the Martinsburg Police Department.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
U.S. Magistrate Judge Robert W. Trumble presided.
Italian Citizen Arrested in Online Impersonation Scheme to Fraudulently Obtain Prepublication Manuscripts of Novels and Other BooksRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an indictment charging FILIPPO BERNARDINI with wire fraud and aggravated identity theft, in connection with a multi-year scheme to impersonate individuals involved in the publishing industry in order to fraudulently obtain hundreds of prepublication manuscripts of novels and other forthcoming books. BERNARDINI was arrested this afternoon when he arrived at John F. Kennedy International Airport. He will be presented tomorrow before United States Magistrate Judge Robert W. Lehrburger in Manhattan federal court. The case is assigned to U.S. District Judge Colleen McMahon.
U.S. Attorney Damian Williams said: “Filippo Bernardini allegedly impersonated publishing industry individuals in order to have authors, including a Pulitzer prize winner, send him prepublication manuscripts for his own benefit. This real-life storyline now reads as a cautionary tale, with the plot twist of Barnardini facing federal criminal charges for his misdeeds.”
Assistant Director-in-Charge Driscoll said: “Unpublished manuscripts are works of art to the writers who spend the time and energy creating them. Publishers do all they can to protect those unpublished pieces because of their value. We allege Mr. Bernardini used his insider knowledge of the industry to get authors to send him their unpublished books and texts by posing as agents, publishing houses, and literary scouts. Mr. Bernardini was allegedly trying to steal other people's literary ideas for himself, but in the end he wasn't creative enough to get away with it."
According to the Indictment unsealed today in Manhattan federal court:[1]
Beginning in at least August 2016, BERNARDINI, who was based in London and worked in the publishing industry, began impersonating agents, editors, and other individuals involved in publishing to fraudulently obtain prepublication manuscripts. These prepublication manuscripts are valuable, and the unauthorized release of a manuscript can dramatically undermine the economics of publishing, and publishing houses generally work to identify and stop the release of pirated, prepublication, manuscripts. Such pirating can also undermine the secondary markets for published work, such as film and television, and can harm an author’s reputation where an early draft of written material is distributed in a working form that is not in a finished state.
In carrying out this scheme, BERNARDINI created fake email accounts that were designed to impersonate real people employed in the publishing industry, including literary talent agencies, publishing houses, literary scouts, and others. BERNARDINI created these accounts by registering more than 160 internet domains that were crafted to be confusingly similar to the real entities that they were impersonating, including only minor typographical errors that would be difficult for the average recipient to identity during a cursory review. Among other things, BERNARDINI often replaced the lower-case letter <m> with the lower-case letters <r> and <n>, which, when placed together as <rn>, resemble an <m>. For example, in or about September 2020, BERNARDINI utilized a fraudulent email address impersonating a well-known editor and publisher (“Editor-1”) who worked for an imprint of a U.S. publishing house (“Publisher-1”). Impersonating Editor-1, BERNARDINI emailed a Pulitzer Prize winning author (“Author-1”) and requested a copy of a word version of Author-1’s forthcoming manuscript, which Author-1 sent to BERARDINI, believing him to be Editor-1. Over the course of this scheme, BERNARDINI impersonated hundreds of distinct people and engaged in hundreds of unique efforts to fraudulently obtain electronic copies of manuscripts that he was not entitled to.
In addition, BERNARDINI engaged in a phishing scheme to surreptitiously gain access to a database maintained by a New York City-based literary scouting company (“Scouting Company-1”). BERNARDINI created a webpage that impersonated Scouting Company-1’s website. Then, in or about July 2020, BERNARDINI impersonated a Scouting Company-1 employee and emailed two individuals, directing them to BERNARDINI’s look-alike webpage and prompting the users to provide their usernames and passwords. BERNARDINI’s webpage was programmed to automatically forward the input usernames and passwords to an email account controlled by BERNARDINI.
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FILIPPO BERNARDINI, 29, of London, United Kingdom is charged with (1) wire fraud, which carries a maximum sentence of 20 years in prison; and (2) aggravated identity theft, which carries a mandatory consecutive sentence of 2 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the investigative work of the FBI. Mr. Williams also thanked the U.S. Customs and Border Protection for its assistance in this investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Daniel G. Nessim is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Interim United States Attorney Appointed for the Eastern District of TennesseeRead the Press Release
KNOXVILLE, Tenn. – Attorney General Merrick Garland has appointed Francis M. (Trey) Hamilton III as interim United States Attorney for the Eastern District of Tennessee effective December 26, 2021, pursuant to 28 U.S.C. § 546. Prior to that date, Chief United States District Judge Travis R. McDonough administered the oath of office for Mr. Hamilton’s appointment at the Joel W. Solomon Federal Courthouse in Chattanooga, Tennessee.
Before being sworn in as United States Attorney, Mr. Hamilton had been serving as the office’s Acting U.S. Attorney since March 1, 2021. A native of Nashville, Tennessee, Mr. Hamilton joined the office as an Assistant U.S. Attorney in 2002. Since then, he has served in numerous leadership positions, including First Assistant U.S. Attorney, Deputy Criminal Division Chief, and Senior Litigation Counsel. Over his career, he has tried numerous complex prosecutions, including corporate fraud, health care fraud, mortgage fraud, government-contract fraud, drug-trafficking, and criminal civil rights violations. As a supervisor, he also oversaw matters involving the office’s national security, public corruption, child exploitation, and monetary recoveries criminal practice areas. In 2020, Mr. Hamilton was awarded the Attorney General’s Claudia J. Flynn Award for Professional Responsibility.
Mr. Hamilton earned his undergraduate degree from Rhodes College, where he graduated magna cum laude and was inducted into Phi Beta Kappa. He received his law degree from Washington & Lee University School of Law, where he graduated summa cum laude, was inducted into the Order of the Coif, and served on the Washington & Lee Law Review. Following law school, he served as law clerk to the Honorable Jerome Turner, United States District Judge for the Western District of Tennessee.
Mr. Hamilton’s interim appointment is for 120 days or until a Presidential appointment is made, whichever occurs first.
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Independence Man Sentenced to 25 Years for Illegal Firearms, Drug TraffickingRead the Press Release
KANSAS CITY, Mo. – An Independence, Missouri, man who faces murder charges in state court was sentenced in federal court today on multiple charges of illegally possessing firearms, including stolen firearms, and drug trafficking.
Brandon L. Hill, 33, was sentenced by U.S. District Judge Greg Kays to 25 years in federal prison without parole.
On April 29, 2021, Hill pleaded guilty to three counts of being a felon in possession of a firearm, two counts of possessing a stolen firearm, four counts of possessing a controlled substance, three counts of possessing a firearm in furtherance of a drug-trafficking crime, and one count of possessing methamphetamine with the intent to distribute.
Hill was arrested by Kansas City, Mo., police officers on three separate occasions. He was in possession of firearms and illegal drugs on each of those occasions, and attempted to flee from officers on two occasions. One of the firearms in Hill’s possession was used in the murder of Derrick White. Hill has been charged with second degree murder and armed criminal action for that homicide in Jackson County, Mo. Hill has also been charged with first degree robbery and armed criminal action in Jackson County for the car-jacking of the 2001 Buick Regal he was driving on March 31, 2019.
On March 31, 2019, officers saw Hill driving a 2001 Buick Regal that had been taken in an armed robbery carjacking a few days earlier. As Hill drove out of a gas station parking lot at 2601 Swope Parkway, officers attempted to close the distance between themselves and Hill. Hill began driving erratically and at a high rate of speed. He left the road at 49th and Walrond Avenue and ran from the vehicle. He was taken into custody a short time later. Officers found a Taurus 9mm semi-automatic handgun (reported as stolen) tucked in his pants, a Smith & Wesson 9mm semi-automatic handgun in his pants pocket, and a Sig Sauer .380-caliber semi-automatic handgun wrapped in fabric and tucked under his groin. Officers also found a baggie of methamphetamine and a baggie of cocaine in Hill’s pockets.
Hill had earlier been arrested on March 26, 2019. Officers stopped a Ford Ranger truck that was being driven by another person, with Hill a passenger, because it’s license plates belonged to a different vehicle. The driver of the vehicle had eight active warrants, and both the driver and Hill were directed to get out of the truck. Officers brought Hill to the rear of the truck to conduct a frisk, but he resisted multiple orders to put his hands behind his back and bladed his body away from the officer. Hill then turned and ran across the street. An officer pursued him and tackled him to the ground. Hill was then placed under arrest, and officers found methamphetamine and cocaine in his pockets. Officers also found a Glock 9mm semi-automatic pistol with a 33-round, extended magazine in the area where Hill ran from the officers. Officers found a Zastava 7.62x39mm semi-automatic rifle and an AK-47 magazine in the truck. Both the rifle and the Glock contained Hill’s DNA.
Hill’s earliest arrest in this case occurred on Jan. 19, 2019, when police officers conducted a car check on a 2005 GMC Yukon, which had an expired temporary license plate, near 5215 Olive Street. Hill was a passenger in the vehicle. When the driver reached inside her purse for her identification and handed it to a police officer, a baggy that contained methamphetamine fell on the ground and the driver said, “Uh-oh.” She was placed under arrest. She had another baggie of methamphetamine inside her purse. Officers also removed Hill from the passenger seat and detained him in handcuffs. Inside the vehicle, officers found a Smith & Wesson 9mm semi-automatic pistol (which had been reported stolen) stuffed between the passenger seat, where Hill was sitting, and the center console. Officers also found a baggie of cocaine and a glass vial that smelled of PCP in Hill’s pockets.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Hill has prior felony convictions for drug trafficking, unlawful use of a weapon, burglary, and assault.
This case was prosecuted by Assistant U.S. Attorneys Brad K. Kavanaugh and Sean T. Foley and Special Assistant U.S. Attorney Sarah J. Rasalam. It was investigated by the Kansas City, Mo., Police Department.
Illinois Man Pleads Guilty to Illegal Possession of FirearmsRead the Press Release
A man who illegally possessed guns pled guilty on January 4, 2022, in federal court in Cedar Rapids, Iowa.
Dillon D. Grundman, age 23, from Inverness, Illinois, was convicted of being an unlawful drug user in possession of multiple firearms.
In a plea agreement, Grundman admitted to traveling to Iowa and possessing three pistols. Law enforcement was investigating the shooting of a residence in Waterloo, Iowa. Prior to the shooting, Grundman had sent a “snap” of the rear of the residence from his Snapchat Account. Officers located Grundman and searched a local residence to which he was connected and located evidence. In the plea agreement, Grundman admitted that at the time he possessed the firearms, he was an unlawful user of marijuana.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Grundman remains in custody of the United States Marshal pending sentencing. Grundman faces a possible maximum sentence of 10 years’ imprisonment, a fine of not more than $250,000, and up to three years of supervised released following any term of imprisonment.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case is being prosecuted by Special Assistant United States Attorney Jason D. Norwood and was investigated by a Federal Task Force composed of the Waterloo Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives assisted by the Black Hawk County Sheriff’s Office and Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 21‑CR‑02040.
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Helena man admits bank fraud in scheme for $1 million in COVID-19 relief loansRead the Press Release
GREAT FALLS — A Helena man admitted to crimes today stemming from a scheme to defraud a bank of more than $1 million in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act and to using the funds instead for his personal benefit, U.S. Attorney Leif M. Johnson said today.
Trevor Gene Lanius-McLeod, 48, also known as Trevor Gene McLeod, pleaded guilty to bank fraud and to engaging in monetary transactions in property derived from specified unlawful activity. Lanius-McLeod faces a maximum of 30 years in prison, a $250,000 fine and three years of supervised release on the bank fraud crime.
In a plea agreement filed in the case, the parties agreed that if the court accepts the plea agreement at sentencing, the government will seek dismissal of nine other counts charged in an indictment.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris set sentencing for April 21. Lanius-McLeod was released pending further proceedings.
The government alleged in court documents that in April 2021, Lanius-McLeod applied for four PPP loans through Valley Bank of Helena, a division of Glacier Bank, and lied on the applications and accompanying documentation. As a result, Lanius-McLeod received $1,043,000 in fraudulent funds from the four loans. The PPP program provided emergency assistance to small businesses for job retention and certain other expenses.
As part of the scheme, Lanius-McLeod applied for and received a PPP loan for $340,000 on behalf of Renovated Montana Properties LLP, an entity he controlled. Without several false statements, Lanius-McLeod would not have qualified for this loan. Lanius-McLeod falsely stated that the company had paid payroll taxes and had 25 employees. The company had never paid payroll taxes and did not have employees besides Lanius-McLeod, although it sometimes employed independent contractors. Lanius-McLeod agreed in a promissory note to use the loan for payroll costs and other business-related expenses. None of the loan was used for these purposes. Instead, Lanius-McLeod used the loan for personal expenses, including to pay the mortgage on his personal residence.
Co-defendant Kasey Jones Wilson of Laurel pleaded guilty to bank fraud and is awaiting sentencing.
Assistant U.S. Attorney Colin M. Rubich is prosecuting the case, which was investigated by the IRS-Criminal Investigation and FBI, with assistance from the U.S. Treasury Inspector General for Tax Administration and U.S. Secret Service.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Hardy County man admits to drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – Jesse Michael Ferrell, of Moorefield, West Virginia, has admitted to a drug charge, United States Attorney William Ihlenfeld announced.
Ferrell, 42, pleaded guilty today to one count of “Conspiracy to Distribute Methamphetamine.” Ferrell admitted to working with others to distribute methamphetamine, also known as “crystal meth” and “ice,” in October 2020 in Hardy County.
Ferrell, as a part of his plea, agreed to forfeit the following:
- a Sporter (AK), 7.62x39 caliber, semi-automatic rifle;
- a Kel-Tec CNC, Inc., model P-11, 9mm caliber, semi-automatic Luger pistol;
- a magazine containing ten (10) rounds of 9mm caliber ammunition;
- a box containing forty (40) rounds of 9mm Tulamo ammunition;
- a box containing fifty (50) rounds of 9mm PPM ammunition;
- a box containing forty (40) rounds of 9mm Blazer ammunition;
- three (3) rounds of 9mm caliber ammunition; and
- $1,169.00 cash.
Ferrell faces at least one year and up to 40 years of incarceration and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative; ATF; the West Virginia State Police; the Grant County Sheriff’s Office; and the Moorefield Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Greenville Man Sentenced to Prison for Possessing a Handgun and Ammunition as a FelonRead the Press Release
RALEIGH, N.C. – A Greenville man was sentenced today to 52 months in prison for possessing a handgun and ammunition as a convicted felon. On September 21, 2021, James Layquan Smith pled guilty to Possession of a Firearm and Ammunition as a Felon. Smith had previously been convicted of Attempted Second Degree Robbery in Kings County Supreme Court in New York in 2011.
According to court documents and other information presented in court, James Smith, 27, on October 21, 2019, took his girlfriend’s handgun and told her to drive him to a family member’s house. Smith also made his girlfriend’s children ride in the car. While driving, Smith threatened to shoot his girlfriend if they were pulled over by police officers. The girlfriend panicked at an intersection and Smith ran from the car. Pitt County deputies responded quickly and were able to arrest Smith.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Pitt County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case and Assistant U.S. Attorney John Parris prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:20-CR-39-BO.
Greensboro Man Who Barricaded Himself and Fired on Law Enforcement Sentenced to 46 Years in Federal PrisonRead the Press Release
GREENSBORO, N.C. - A Greensboro man was sentenced on January 5, 2022, in federal court in Greensboro for knowingly possessing with intent to distribute marihuana, possessing firearms in furtherance of that offense, possessing firearms after a previous felony conviction, and possessing body armor after having been convicted of a crime of violence, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina.
RANDALL GRAY STONEMAN, age 52, was convicted at trial of the above referenced offenses on August 24, 2021. STONEMAN was acquitted of a charge related to maintaining drug-involved premises. Testimony at trial established that STONEMAN barricaded himself in a residence on Boxer Lane in Greensboro in the early morning hours of April 29, 2020. Armed with two Remington 12-gauge shotguns, a Mossberg 12-gauge shotgun, a Colt .223 caliber semiautomatic rifle, ammunition, and wearing a ballistic vest, STONEMAN engaged in an hours’ long standoff with law enforcement officers, firing at them intermittently over that time-period. GCSO Deputies and GPD Detectives ultimately recovered from the home, after deploying devices causing STONEMAN to surrender, four boxes of ammunition, 58 additional live rounds, and 36 spent rounds. Also recovered was approximately 106 grams of marihuana.
United States District Judge William L. Osteen, Jr., sentenced STONEMAN to a total of 552 months in federal prison. In addition to the prison time, STONEMAN was ordered to serve concurrent two-year, three-year, and five-year terms of supervised release after service of sentence and to pay a special assessment of $400.00.
The case was investigated by the Guilford County Sheriff’s Office, the Greensboro Police Department, and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The case was prosecuted by Assistant United States Attorneys Veronica L. Edmisten and Clifton T. Barrett.
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Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. - A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Three Trempealeau County Men Charged with Cocaine Conspiracy
Mark Ian Castro, 29, Cristian Andre Vazquez Velez, 22, and Michael Carmenatty Justiniano, 40, all of Independence, Wisconsin, are charged with conspiring to distribute and to possess with intent to distribute 500 grams or more of cocaine. The indictment alleges that this conspiracy operated from August 2020 to July 2021.
The indictment further alleges that on June 29, 2021, Mark Ian Castro and Cristian Andre Vazquez Velez possessed firearms in furtherance of this drug trafficking crime. The indictment also charges these two men with attempting to possess cocaine for distribution on July 6, 2021, and with attempting to possess 500 grams of more of cocaine for distribution on July 14, 2021.
If convicted, each of the three defendants face a mandatory minimum penalty of 5 years and a maximum of 40 years in federal prison on the conspiracy charge. Mark Ian Castro and Cristian Andre Vazquez Velez each face a mandatory minimum penalty of 5 years on the charge of possessing firearms in furtherance of a drug trafficking crime. Federal law requires that any sentence imposed on this charge be served consecutive to any other prison sentence imposed. Those two also each face a maximum of 20 years on the charge of attempting to possess cocaine for distribution, and a mandatory minimum of 5 years and a maximum of 40 years on the charge of attempting to possess 500 grams or more of cocaine for distribution.
The charges against the defendants are the result of an investigation by the U.S. Postal Service–Office of Inspector General; U.S. Postal Inspection Service; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; Wisconsin Department of Justice Division of Criminal Investigation; Trempealeau County Sheriff’s Office; Winona County (Minnesota) Sheriff’s Office; Arcadia Police Department; and Independence Police Department. Assistant U.S. Attorney Chadwick Elgersma is handling the prosecution.
Beloit Man Charged with Drug & Gun Crimes
Eshawn M. Reed, 39, Beloit, Wisconsin, is charged with 3 counts of distributing crack cocaine, 1 count of possessing crack cocaine with the intent to distribute, 1 count of being a felon in possession of a firearm, and 1 count of possessing a firearm in furtherance of a drug trafficking crime. The indictment alleges that Reed distributed crack cocaine on April 6, July 19, and August 5, 2021. The indictment further alleges that on August 10, 2021, he possessed crack cocaine for distribution and a loaded Ruger 57 handgun.
If convicted, Reed faces a maximum penalty of 20 years in federal prison on each of the distribution charges and the charge of possessing crack cocaine for distribution. The felon in possession of a firearm charge has a maximum penalty of 10 years and the charge of possessing a firearm in furtherance of a drug trafficking crime has a mandatory minimum penalty of 5 years. Federal law requires that any sentence imposed on the charge of possessing a firearm in furtherance of a drug trafficking crime be served consecutive to any other sentence imposed.
The charges against Reed are the result of an investigation by the City and Town of Beloit Police Departments, Janesville Police Department, Wisconsin Department of Justice Division of Criminal Investigation, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Steven Anderson is handling the prosecution.
La Crosse Man Charged with Drug Crimes Involving Fentanyl
Antoine Hardie, 36, La Crosse, Wisconsin, is charged with 5 counts of distributing fentanyl. The indictment alleges that Hardie distributed fentanyl on June 24, June 30, July 14, September 14, and September 17, 2021.
If convicted, Hardie faces a maximum penalty of 20 years in federal prison on each of the distribution charges. The charges against him are the result of an investigation by the Wisconsin Department of Justice Division of Criminal Investigation, La Crosse Police Department, and Holmen Police Department. Assistant U.S. Attorney Meredith Duchemin is handling the prosecution.
Wausau Man Charged with Distributing Methamphetamine
Jacob Ring, 30, Wausau, Wisconsin, is charged with 2 counts of distributing 50 grams or more of methamphetamine, and 1 count of possessing 50 grams or more of methamphetamine with intent to distribute. The indictment alleges that he distributed methamphetamine on June 18 and July 15, 2021 and that he possessed methamphetamine for distribution on August 13, 2021.
If convicted, Ring faces a mandatory minimum penalty of 5 years and a maximum of 40 years in federal prison on each count. The charges against him are the result of an investigation by the Central Wisconsin Drug Task Force; Wausau Police Department; Marathon County Sheriff’s Office; and the Wisconsin Department of Justice Division of Criminal Investigation. Assistant U.S. Attorney Taylor Kraus is handling the prosecution.
Middleton Man Charged with Gun Crime
Ramar A. Brown, 26, Middleton, Wisconsin, is charged with being a felon in possession of a firearm. The indictment alleges that on October 12, 2021, Brown possessed a 9mm handgun.
If convicted, Brown faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the Fitchburg Police Department, Wisconsin Department of Justice Division of Criminal Investigation, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Steven Anderson is handling the prosecution.
Ashland Man Charged with Possessing Child Pornography
Adam M. Smith, 34, Ashland, Wisconsin, is charged with 1 count of possessing child pornography. The indictment alleges that on September 20, 2021, Smith possessed a Lenovo tablet containing visual depictions involving the use of minors engaging in sexually explicit conduct. The indictment further alleges that at least one of the depictions involved a minor who had not attained 12 years of age.
If convicted, Smith faces a maximum penalty of 20 years in federal prison. The charge against him is the result of an investigation by the Ashland Police Department and Wisconsin Department of Justice Division of Criminal Investigation. Assistant U.S. Attorney Elizabeth Altman is handling the investigation.
Fort Wayne Man Sentenced 240 Months in PrisonRead the Press Release
FORT WAYNE – Calvin Mitchell, Jr., 39 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Judge Holly A. Brady after pleading guilty to distribution of more than 50 grams of methamphetamine, announced United States Attorney Clifford D. Johnson.
Mitchell was sentenced to 240 months in prison followed by 5 years of supervised release.
According to documents in the case, in February and March 2021, law enforcement conducted controlled buys of over 380 grams of methamphetamine from Mitchell. During one of the buys, Mitchell boasted about having fentanyl available that was so strong “it was killing people.” When officers searched Mitchell’s residence, they located large quantities of a cutting agent and over $7,000 in cash. Lab tests confirmed the purchased methamphetamine was 100% pure.
This case was investigated by the Drug Enforcement Administration with the assistance of the Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorney Brent Ecenbarger.
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Former bookkeeper of a St. Louis accounting firm sentenced to prison for $670K fraud schemeRead the Press Release
ST. LOUIS – Paula Smith, 69, of O’Fallon, Missouri, appeared before United States District Court Judge Matthew T. Schelp on today’s date. Smith was sentenced to 46 months in federal prison. Smith previously pleaded guilty to three counts of mail fraud and one count of money laundering.
Smith was a bookkeeper at an accounting firm that managed a lucrative trust account for a client (the D.E.W. Trust). The D.E.W. Trust, which was at one time valued at $8.6 million, had over twenty named beneficiaries, including twelve charitable organizations in St. Louis, Missouri. Between October 2013 and June 2018, Smith defrauded the D.E.W. Trust and its beneficiaries by writing numerous checks totaling $670,000 from the D.E.W. Trust to herself. None of the funds should have gone to Smith.
To conceal her scheme, Smith manipulated the accounting records for the D.E.W. Trust by mislabeling the fraudulent checks as being advance payments to a trustee and as payments to a vendor. As a result of these fraudulent transactions, there were less available funds to be properly distributed to the intended charitable organization beneficiaries of the D.E.W. Trust.
Smith used the funds to personally enrich herself, including to buy a 2017 Chevrolet Silverado K1500 and a 2018 Keystone Hornet Hideout 26RLS Travel Trailer.
“People who think they can get away with embezzling money should realize the crime eventually catches up with them like it did with Paula Smith,” said Acting Special Agent in Charge Spencer Evans of the FBI St. Louis Division. “While Smith enriched herself in the short term, she will now pay a much higher price with a sentence of almost 4 years in federal prison.”
The above case was investigated by the Federal Bureau of Investigation with assistance from the Montgomery Bank Anti-Money Laundering Team. Assistant United States Attorney Kyle T. Bateman is handling the matter.
Former New Mexico Taxation and Revenue employee pleads guilty to wire fraud, identity theft, money launderingRead the Press Release
ALBUQUERQUE, N.M. – George Martinez, 45, of Albuquerque, pleaded guilty in federal court today to 42 counts each of wire fraud and aggravated identity theft and six counts of money laundering. A federal grand jury indicted Martinez on March 12, 2021.
According to the indictment and other court records, from May 18, 2011, through July 16, 2018, Martinez allegedly used his position as the Unit Supervisor/Bureau Chief of the Questionable Refund Unit at the New Mexico Taxation and Revenue Department to fraudulently alter tax refunds and direct them to bank accounts that he controlled.
Martinez perpetrated the fraud by copying tax returns that had already been processed or creating new returns in taxpayers’ accounts. He altered information such as taxpayers’ Social Security numbers, bank account numbers and withholding amounts in the returns. By changing the withholding amounts, he increased the amounts of the refunds. Martinez fraudulently directed $689,797 into accounts in his control.
Martinez faces a minimum of two years and up to 32 years in prison.
The FBI Albuquerque Field Office and the IRS Criminal Investigation Phoenix Field Office investigated this case with assistance from the New Mexico Taxation and Revenue Department’s Tax Fraud Investigations Division. Assistant U.S. Attorneys Jeremy Peña and Paul Schied prosecuted the case.
Federal Grand Jury A Indictments Announced- January 2022Read the Press Release
United States Attorney Clint Johnson today announced the results of the January 2022 Federal Grand Jury A.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Earl Dean Baker III. Aggravated Sexual Abuse by Force and Threat in Indian Country; Sexual Abuse by Threat and Fear in Indian Country. Baker III, 33, of Tulsa, allegedly threatened and raped a victim on Nov. 3, 2021. The FBI and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Julie Childress is prosecuting the case.
Andrew Michael Crowels, Katie Dawn Keck. Carjacking; Robbery in Indian Country; Carrying, Using, and Brandishing a Firearm During and in Relation to a Crime of Violence; Kidnapping in Indian Country; Robbery in Indian Country; Kidnapping in Indian Country. Crowels, 36, of Tulsa, and Keck, 32, of Pryor, allegedly took a vehicle from the owner by force and intimidation on Dec. 14, 2021. Crowels allegedly brandished a firearm during the carjacking. Crowels and Keck, aided and abetted by others, also allegedly kidnapped the victim and stole currency, debit cards, credit cards, the victim’s Ford Focus, and a cell phone during the incident. After being unable to use the victim’s debit card, the defendants forcibly took the victim to his place of employment and stole money from the safe. The Tulsa Police Department is the investigative agency. Assistant U.S. Attorney Thomas Buscemi is prosecuting the case.
Coti D’Shayne Davis. Failure to Register as a Sex Offender. Davis, 30, of Tulsa, is charged with failing to register and update his registration as a sex offender from Feb. 1, 2019, to July 31, 2021. The U.S. Marshals Service is the investigative agency. Assistant U.S. Attorney Valeria Luster is prosecuting the case.
Dhylian Whalin Rhain Gonzalis. Assault of an Intimate/Dating Partner by Strangling, Suffocating, and Attempting to Strangle and Suffocate in Indian Country; Assault Resulting in Substantial Bodily Injury to an Intimate/Dating Partner in Indian Country; Assault of an Intimate/Dating Partner by Strangling, Suffocating, and Attempting to Strangle and Suffocate in Indian Country; Assault Resulting in Substantial Bodily Injury to an Intimate/Dating Partner in Indian Country. Gonzalis is charged with two counts of strangling his dating partner on Aug. 28, 2020. He further charged with two counts of striking the victim, causing serious bodily injury. The FBI and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Thomas Buscemi is prosecuting the case.
Christian James Harrison. First Degree Murder in Indian Country; Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country; Carrying, Using, Brandishing, and Discharging a Firearm During and in Relation to a Crime of Violence. Harrison, 19, of Tulsa, is charged with shooting and killing a 13-year-old boy during an argument on Dec. 22, 2021. Harrison is also charged with assaulting and discharging a firearm at a second victim. The FBI and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Christopher Kelly is prosecuting the case.
Michael Dylan Hedrick. Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country. Hedrick, 28, of Tulsa, allegedly struck the victim with the intent of doing bodily harm on Nov. 28, 2021. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Richard M. Cella is prosecuting the case.
Randy Thomas Lynch; Haley Ashton Spry. Felon in Possession of a Firearm and Ammunition; Drug Conspiracy; Possession of Methamphetamine with Intent to Distribute; Possession of Firearms in Furtherance of a Drug Trafficking Crime; Maintaining a Drug-Involved Premises; Receipt of a Firearm While Under Indictment for a Felony (superseding indictment). Lynch, 34, of Tulsa, is charged in count 1 with being a felon in possession of a Mossberg 12-guage caliber pump-action shotgun; a Smith and Wesson .40 caliber semi-automatic pistol; a Taurus .38 Special caliber revolver; a Remington Union Metallic Cartridge Company .45 caliber semi-automatic pistol; a Kimber .45 caliber semi-automatic pistol; a Winchester 20-gauge caliber pump-action shotgun; a Hawk Industries Co. Ltd 12-gauge caliber pump-action shotgun, and 57 rounds of assorted ammunition. Lynch is charged in Count 2 with conspiring with others to possess with intent to distribute and to distribute 500 grams or more of methamphetamine. He is further charged with knowingly possessing with intent to distribute methamphetamine and with possession of a firearm in furtherance of a drug trafficking crime. Both Lynch and Spry, 24, of Tulsa, are charged with aiding and abetting each other when maintaining a residence for the purpose of distributing methamphetamine. Finally, Spry is charged with receiving a Glock .380 caliber semi-automatic pistol while under indictment for a felony. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Tulsa County Sheriff’s Office are the investigative agencies. Assistant U.S. Attorney David A. Nasar is prosecuting the case.
Geary Wayne Stotesbury. Carjacking; Kidnapping in Indian Country; Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country; Theft of over $1,000 in Indian Country; Tampering with a Witness and Victim by Using and Threatening Physical Force. Stotesbury, 40, of Pryor, used violence and intimidation to take a vehicle from a victim on Nov. 17, 2021, after he kidnapped the victim. He is also charged with cutting and stabbing the victim during the carjacking. Stotesbury is also charged with theft of property worth over $1,000 in value, which included cash, a cell phone and the victim’s vehicle. Finally, Stotesbury is charged with threatening to kill the victim and hitting and cutting the victim to prevent her from reporting the crime to authorities. The FBI and Mayes County Sheriff’s Office are the investigative agencies. Assistant U.S. Attorney Gina Gilmore is prosecuting the case.
Jeffrey David Sutton. Assault with Intent to Commit Murder in Indian Country; Carrying, Using, Brandishing, and Discharging a Firearm During and in Relation to a Crime of Violence. Sutton, 53, of Mounds, is charged with shooting a victim with intent to commit murder on Dec. 2, 2021. He is further charged with carrying and discharging a firearm during a crime of violence. The FBI, Tulsa County Sheriff’s Office and Oklahoma State Bureau of Investigation are the investigative agencies. Assistant U.S. Attorney Steven Briden is prosecuting the case.
Amanda Nicole West. Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country. West, 33, of Bartlesville, allegedly brandished a knife and threatened to stab and kill the victim. The FBI and Bartlesville Police department are the investigative agencies. Assistant U.S. Attorney Kyle McWaters is prosecuting the case.
Essex County Man Charged with Sex TraffickingRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man made his initial appearance today on charges of sex trafficking, U.S. Attorney Philip R. Sellinger announced today.
Amin Sharif, 47, of Newark, is charged by criminal complaint with one count of attempted sex trafficking an adult woman and one count of sex trafficking a minor. Sharif appeared by videoconference before U.S. Magistrate Judge Cathy L. Waldor and was detained.
According to documents filed in this case and statements made in court:
Since January 2021, law enforcement officials have been investigating Sharif for transporting and attempting to transport women and minors from various states to New Jersey and elsewhere for the purpose of engaging in commercial sex acts and other illicit conduct. Sharif used several social media platforms and profiles to recruit women and minors to engage in sex acts for money. Once in contact with his victims, Sharif used threats to coerce the victims into engaging in commercial sex acts. He advertised women and at least one underage girl online for commercial sex acts. Sharif also transported at least one underage girl located in another state into New Jersey and attempted to transport a woman located in another state into New Jersey via a commercial airline, in furtherance of his sex trafficking conduct.
The counts with which Sharif is charged are each punishable by a mandatory minimum of 15 years in prison and a maximum penalty of life in prison.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark and Special Agent in Charge Jacqueline Maguire in Philadelphia, and officers of the Allentown, Pennsylvania, Police Department, under the direction of Chief Charles Roca, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Kimberly Mitchell of the U.S. Attorney’s Office OCDETF and Narcotics Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Drug Trafficker Sentenced to over 19 Years in PrisonRead the Press Release
Gulfport, Miss. – A Pennsylvania man was sentenced today to 235 months in prison for conspiracy to distribute and attempt to distribute cocaine, announced U.S. Attorney Darren LaMarca and Acting Special Agent in Charge Vernon “Jeb” Bison of Homeland Security Investigations in New Orleans.
According to court documents, Darrell Young, 47, of Philadelphia, Pennsylvania, was found guilty by a jury following a seven- day trial in July 2021, on two counts of conspiracy and attempted drug trafficking. The trial testimony established that Young conspired with five others in the Dominican Republic, Philadelphia PA and New York, NY to purchase 17 kilos of cocaine in Gulfport. The drugs were to be taken back to New York and Philadelphia in a hidden compartment of a car that had been shipped from Philadelphia by Young. Three defendants were apprehended in downtown Gulfport during the operation. Young and defendant Anthony Abreu went to trial and were both found guilty. The third defendant entered a guilty plea prior to trial.
Homeland Security Investigations investigated the case.
Assistant U.S. Attorneys Annette Williams and Jonathan Buckner prosecuted the case.
Covington Woman Admits to Using Fake Investment Scheme to Commit Wire FraudRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that RITCHEL MOREHEAD, age 40, a resident of Covington, Louisiana, was convicted of wire fraud in connection with a fake investment scheme.
The government filed a superseding bill of information that charged MOREHEAD with committing wire fraud from December 2018 through February 2019. According to court documents, MOREHEAD used a corporation, Chel Corporation, to defraud six victims by embezzling a total of $460,000 that was supposed to cover fees, costs, and down payments for multi-million-dollar loans, when in fact MOREHEAD spent the funds on personal expenses, such as jewelry and a vehicle, and transferred cash to accounts overseas. Under the terms of the plea agreement, MOREHEAD pled guilty as charged to the superseding bill of information and agreed to pay $460,000 in restitution to the victims of her scheme. The government has already seized $190,784.90 in cash and assets from MOREHEAD.
MOREHEAD faces up to twenty years in prison, followed by up to three years of supervised release, a fine of up to $250,000 or twice the gross gain to MOREHEAD or the gross loss to any victims, and a $100 mandatory special assessment fee.
The Honorable Martin L. C. Feldman set MOREHEAD’s sentencing for April 6, 2022.
U.S. Attorney Evans praised the work of Homeland Security Investigations and the United States Secret Service. Assistant United States Attorney Nicholas D. Moses is in charge of the prosecution.
Columbus man sentenced to 3 years in prison for misusing Social Security Numbers to get apartments, vehicles, credit cardsRead the Press Release
COLUMBUS, Ohio – DeWayne Foster, 39, of Columbus, was sentenced in U.S. District Court to 36 months in prison for using false identifying information and Social Security Numbers on six occasions over the course of six months.
According to court documents, in 2018 and 2019, Foster used the alias “Thomas Walker” along with false Social Security Numbers to apply to rent apartments, purchase vehicles and obtain credit cards and personal loans.
In September 2018, Foster used a false SSN to rent a two-bedroom townhome in Sunbury, Ohio, for $1,570 per month.
On five other occasions, Foster used the Social Security Number of a minor born in 2007. Within one week in January 2019, Foster illegally used the SSN to obtain a vehicle loan for nearly $26,000, to sign a lease for an apartment in Powell, Ohio, for approximately $25,000, and to apply for a second, $41,000 auto loan.
In February 2019, Foster used the false information to obtain a personal credit card with a $2,000 limit. Finally, in March 2019, the defendant applied for a $15,000 loan.
Foster is currently serving an eight-year sentence in Union County for local narcotics crimes and will serve 12 months of his federal sentence after he is released from local custody. He is also ordered to pay more than $16,000 in restitution to the victims he defrauded in his federal case.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, announced the sentence imposed by Senior U.S. District Court Judge James L. Graham and commended the investigation by the Social Security Administration Office of the Inspector General and Columbus Division of Police. Special Assistant United States Attorney Timothy Landry is representing the United States in this case.
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Collin County Man Sentenced for Child Pornography ViolationsRead the Press Release
SHERMAN, Texas – An Allen man has been sentenced to federal prison for federal child exploitation violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Clay Melton Denton, 57, was found guilty on June 11, 2021, of distribution, receipt and possession of child pornography and was sentenced to 20 years in federal prison today by U.S. District Judge Amos L. Mazzant, III. Denton was also ordered to pay an assessment of $10,000 under the Amy, Vicky, and Andy Victim Assistance Act of 2018.
According to the court documents and testimony at trial, in January and March 2018, undercover officers with the Plano Police Department and the Garland Police Department received child pornography, via an online platform, that had been distributed to them by a computer user. The officers traced the online conduct to the Denton residence in Allen, Texas. Members of the FBI obtained a search warrant for the residence, which they served on April 25, 2018. The searching team discovered multiple digital devices in the residence, including server racks, network area storage devices, laptops, hard drives, cellular phones, and digital storage media. Agents testified that the entire second story of the house was filled with floor-to-ceiling book cases storing digital devices, manuals, and peripherals. Additional testimony revealed that forensic analysis of the seized devices took almost one year. During this forensic analysis, personnel discovered tens of thousands of images and videos of child pornography. Specifically, evidence demonstrated that a laptop belonging to Denton and located on one of his desks contained the same software used to distribute child pornography to the undercover officers. That software was also used to obtain child pornography, which was saved on a different portion of Denton’s computer. Evidence also revealed that child pornography was located on a 60+ terabyte storage device that Denton owned and possessed. A federal grand jury returned an indictment charging Denton with federal violations on Sep. 11, 2019.
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by the Plano Police Department, Garland Police Department and the FBI Dallas Child Exploitation Task Force and prosecuted by Assistant U.S. Attorneys Marisa Miller and Maureen Smith.
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Chinle Man Sentenced to Nearly 15 Years for Voluntary ManslaughterRead the Press Release
PHOENIX, Ariz. – Yesterday, Jeroy Johnson Benally, 23, of Chinle, Arizona, was sentenced by U.S. District Judge Dominic W. Lanza to 177 months in prison, followed by three years of supervised release. Benally previously pleaded guilty to Voluntary Manslaughter.
On August 28, 2020, Benally shot the victim two times with a rifle, resulting in the victim’s death. Benally is an enrolled member of the Navajo Nation.
The Federal Bureau of Investigation and the Navajo Nation Division of Public Safety conducted the investigation in this case. Assistant U.S. Attorney Raynette Logan, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-21-08018-PHX-DWL
RELEASE NUMBER: 2022-001_Benally# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Chicago Man Sentenced to 21 Months in PrisonRead the Press Release
HAMMOND- Jeremiah Taylor, 29, of Chicago, Illinois, was sentenced by United States District Court Judge James T. Moody after pleading guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Taylor was sentenced to 21 months in prison followed by 2 years of supervised release.
According to documents in the case, in March 2020, Taylor possessed a loaded firearm after having been previously convicted of a felony. Taylor has prior felony convictions for aggravated battery on a peace officer and criminal damage to government property.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Gary Police Department. This case was prosecuted by Assistant U.S. Attorney Kevin F. Wolff.
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.
California Man Admits Role in $50 Million Wire and Securities Fraud SchemeRead the Press Release
NEWARK, N.J. – A California man today admitted conspiring to commit wire and securities fraud in connection with his role in a $50 million internet-enabled fraud scheme, U.S. Attorney Philip R. Sellinger announced.
Allen Giltman, 56, of Irvine, California, pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez to an information charging him with one count of conspiracy to commit wire fraud and one count of conspiracy to commit securities fraud.
According to documents filed in this case and statements made in court:
From 2012 to October 2020, Giltman and others engaged in an internet-based financial fraud scheme, which generally involved the creation of fraudulent websites to solicit funds from investors. At times, the fraudulent websites were designed to closely resemble websites being operated by actual, well-known, and publicly reputable financial institutions; at other times, the fraudulent websites were designed to resemble legitimate-seeming financial institutions that did not exist.
Victims of the fraud scheme typically discovered the fraudulent websites via internet searches. The fraudulent websites advertised various types of investment opportunities, most prominently the purchase of certificates of deposit, or CDs. The fraudulent websites advertised higher than average rates of return on the CDs to lure potential victims.
The fraudulent websites used a variety of means to appear legitimate and to gain and maintain the trust of prospective investors, including: (a) displaying the actual names and logos of real financial institutions; (b) purporting that the institutions were members of or regulated by the Federal Deposit Insurance Corporation (FDIC), Financial Industry Regulatory Authority (FINRA), the Securities Investor Protection Corporation, or New York Stock Exchange; (c) claiming that deposits made to the institutions associated with the fraudulent websites were FDIC-insured; and (d) using FINRA or FDIC member identification numbers issued to real financial institutions and real FINRA broker-dealers.
After discovering one of the fraudulent websites, victims would contact an individual – identified in the information as Giltman – by telephone or email as directed on the sites. During his communications with victims, Giltman impersonated real FINRA broker-dealers by using their names and FINRA Central Registration Depository numbers. He would then provide the victims with applications and wiring instructions for the purchase of a CD. The funds wired by the victims would then be moved to various domestic and international bank accounts, including accounts in Russia, the Republic of Georgia, Hong Kong, and Turkey. None of the victims received a CD after wiring the funds.
To date, law enforcement has identified at least 150 fraudulent websites created as part of the scheme. At least 70 victims of the fraud scheme nationwide, including in New Jersey, collectively transmitted approximately $50 million that they believed to be investments.
The wire fraud conspiracy charge carries a maximum penalty of 20 years and a $250,000 fine, or twice the gross amount of gain or loss from the offense, whichever is greatest. The securities fraud charge carries a maximum penalty of five years in prison and a $250,000 fine, or twice the gross amount of gain or loss from the offense, whichever is greatest. Sentencing is scheduled for May 10, 2022.
The U.S. Securities and Exchange Commission (SEC) also filed a civil complaint against Giltman today based on the same conduct.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch in Newark, with the investigation leading to today’s guilty plea. He also thanked the SEC for the assistance provided by its Enforcement Division.
The government is represented by Assistant U.S. Attorney Anthony P. Torntore of the U.S. Attorney’s Cybercrime Unit in Newark.
Business Owner Sentenced for Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – An Olathe, Kansas, man who conspired with others to control construction businesses that received hundreds of millions of dollars in federal government contracts, was sentenced in federal court today for defrauding the government with respect to contracts set aside for service-disabled veterans and certified minorities.
“This contractor not only defrauded the government, but cheated to get contracts that should have gone to firms led by disabled veterans and minority owners,” said U.S. Attorney Teresa Moore. “His greed and deception allowed him to enrich himself at the expense of disabled veterans and minority owners. After forfeiting more than $5.5 million to the government and being sent to prison, he has learned the hard way that crime doesn’t pay.”
Matthew C. McPherson, 45, was sentenced by U.S. District Judge Roseann Ketchmark to two years and four months in federal prison without parole. McPherson also has forfeited to the government $5,516,786, which represents his share of the fraud proceeds.
“Today’s outcome demonstrates the commitment of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) and our law enforcement partners to protect the integrity of the DoD procurement process and the Small Business Administration set-aside programs intended to help smaller and/or disadvantaged businesses," said Special Agent in Charge Michael C. Mentavlos, DCIS Southwest Field Office. “We will continue to aggressively investigate and hold those accountable that take advantage of the U.S. government and taxpayer.”
“Today’s sentencing sends a clear message that contractors unjustly enriching themselves at the expense of our nation’s veterans will not be tolerated,” said Acting Special Agent in Charge Gavin McClaren with the VA Office of Inspector General’s Central Field Office. “We thank the U.S. Attorney’s Office and our outstanding law enforcement partners for their efforts in this joint investigation.”
“McPherson’s sentence sends a strong message that IRS-Criminal Investigation and its federal partners are committed to leveling the playing field when federal contracts are involved,” said IRS-CI Special Agent in Charge Tyler Hatcher, St. Louis Field Office. “The government established unique programs designed to help small disadvantaged businesses gain a foothold in the awarding of government contracts. McPherson lied about being qualified for these contracts and used nominees to further his crime.” Hatcher added, “These crimes have a significant negative impact on small disadvantaged businesses.”
On June 3, 2019, McPherson pleaded guilty to one count of conspiracy to commit wire fraud and major program fraud. McPherson admitted that he participated in a conspiracy from September 2009 to March 2018 to obtain contracts set aside by the federal government for award to small businesses owned and controlled by veterans, service-disabled veterans, and certified minorities. McPherson, who is neither a certified minority nor a veteran, was the owner of an established construction company in Topeka, Kan. (identified in court documents as Business C) that was not entitled to compete for those federal contracts.
McPherson and his co-conspirators controlled and operated Zieson Construction Company. The business was formed on July 9, 2009, with Stephon Ziegler, 61, of Weatherby Lake, Mo. – an African-American service-disabled veteran – as the nominal owner. Zieson’s primary business was obtaining federal construction contracts set aside for award to small businesses owned and controlled by service-disabled veterans or certified minorities. However, Ziegler did not control the day-to-day operations or the long-term decision making of Zieson. McPherson and his co-conspirators actually controlled and operated Zieson, and received most of the profits from Zieson through the respective business entities.
Between 2009 and 2018, Zieson was awarded approximately 199 federal contracts set aside for award to small businesses, minority-owned small businesses, and veteran-owned small businesses for which the government paid Zieson approximately $335 million. McPherson and his co-conspirators, through their business entities, received approximately $4,183,920 each from Zieson by using false and fraudulent invoices.
Ziegler pleaded guilty on May 21, 2019, to making a false statement to the U.S. Department of Veteran Affairs. Ziegler is scheduled to be sentenced on Jan. 20, 2022.
In 2014, when Zieson was growing too large to compete for small business contracts, McPherson and his co-conspirators used the minority status of another Zieson employee, Native American Rustin Simon, 45, of Smithville, Mo., to set up Simcon Corp as a small business in the state of Missouri. Simcon’s business, like Zieson’s, was to obtain federal construction contracts set aside for award to qualified small businesses. In reality, McPherson and his co-conspirators managed and controlled Simcon. Simcon was awarded a $4,423,638 contract in July 2016 from the U.S. Air Force and a $6,911,404 contract in September 2016 from the U.S. Army.
Zieson and Simcon used the same employees and shared office space and equipment. Zieson and Simcon were located in a building owned by an LLC that was controlled by McPherson and his co-conspirators. Zieson purported to subcontract work to Simcon (which Simcon did not actually perform) to establish alleged past performance and profitability. This allowed Simcon to claim experience and financial strength to successfully compete for federal set-aside contracts. McPherson and his co-conspirators each received approximately $319,866 from Simcon using false and fraudulent invoices.
Simon pleaded guilty on June 19, 2019, to two counts of making material false statements to the Small Business Administration and awaits sentencing.
McPherson also caused Business C to submit false and fraudulent invoices to Zieson in order to hide and receive profits from the scheme.
Co-defendant Patrick Michael Dingle,50 of Parkville, Mo., pleaded guilty on Sept. 13, 2020, and awaits sentencing. Dingle pleaded guilty to one count of conspiracy to commit wire and major program fraud. Dingle also pleaded guilty, in a separate case, to one count of filing a false tax return.
This case was prosecuted by Assistant U.S. Attorney Paul S. Becker and former Assistant U.S. Attorney Stacey Perkins Rock. It was investigated by the Department of Veterans Affairs, Office of Inspector General; the Department of Defense Criminal Investigative Service; the U.S. General Services Administration, Office of Inspector General; the U.S. Small Business Administration, Office of Inspector General; the Army Criminal Investigation Command, Major Procurement Fraud Unit; the Department of Agriculture, Office of Inspector General; IRS-Criminal Investigation; the U.S. Secret Service; the Air Force Office of Special Investigations, Procurement Fraud; the Naval Criminal Investigative Service; the Defense Contract Audit Agency - Operations Investigative Support (OIS); the U.S. Department of Labor, Office of Inspector General; and the Department of Labor, Employee Benefits Security Administration (EBSA).
Bullhead Man Indicted for Meth TraffickingRead the Press Release
United States Attorney Dennis R. Holmes announced that a Bullhead, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance.
Eric Paul Archambault, age 32, was indicted on October 13, 2021. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 5, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 40 years in federal prison and/or a $5,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between 2018 and 2021, on the Standing Rock Sioux Indian Reservation in South Dakota and North Dakota, Archambault knowingly and intentionally conspired to distribute and possess with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine.
The charge is merely an accusation and Archambault is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Mobridge Police Department, Northern Plains Safe Trails Drug Enforcement Task Force, Bureau of Indian Affairs – Office of Justice Services, Standing Rock Agency, and the Federal Bureau of Investigation. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Archambault was released on bond pending trial. A trial date was set for March 15, 2022.
Bear Man Indicted on Federal Child Pornography ChargesRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that a federal grand jury sitting in Wilmington returned an indictment yesterday charging James Pickett, 24, of Bear, Delaware, with distributing and possessing child pornography between August and December 2021.
Pickett has been in custody since his December 16, 2021 arrest. If convicted, Pickett faces a mandatory minimum penalty of 15 years in prison, with a maximum penalty of 40 years’ incarceration. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Weiss commented, “The production, distribution, and collection of child pornography is a heinous shadow industry that targets the most vulnerable among us – our children. My office is dedicated to protecting children and prosecuting those that engage in the sexual exploitation of minors. I would like to thank Homeland Security Investigations for their tireless efforts in this case.”
The case was investigated by Homeland Security Investigations. Assistant U.S. Attorney Briana Knox is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Barbour County man admits to firearm chargeRead the Press Release
ELKINS, WEST VIRGINIA – Caleb Andrew Beverly, of Philippi, West Virginia, has admitted to a firearms charge, United States Attorney William Ihlenfeld announced.
Beverly, 23, pleaded guilty today to one count of “Unlawful Possession of a Firearm.” Beverly, a person prohibited from having firearms, had two .25 caliber semi-automatic pistols in November 2020 in Barbour County.
Beverly, as a part of the plea, agreed to forfeit the following:
- A High Point, model 4595, .45 caliber rifle;
- An Arms Corporation of the Philippines (Armscorp), model 16, .22 caliber rifle;
- One Hundred Fifty-two (152) rounds of assorted ammunition;
- A Raven Arms, model MP-25, .25 caliber semi-automatic pistol;
- A Sundance Industries, Inc., model BOA, .25 caliber semi-automatic pistol;
- Assorted firearm parts.
Beverly faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the West Virginia State Police investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Associate of Violent Walterboro Gang Sentenced to More than 23 Years in Federal Prison on Gun ChargesRead the Press Release
Charleston, South Carolina --- United States Attorney Corey F. Ellis announced today that Quentin John Fishburne, a/k/a “Q”, 40, of Walterboro, was sentenced to more than 23 years in federal prison after a jury convicted him on numerous firearms charges, including two counts of being a felon in possession of a firearm and one count of conspiracy to make false statements in connection with the purchase of a firearm.
Evidence presented to the jury showed that in March of 2018, Officers with the Walterboro Police Department discovered a loaded .40 caliber pistol under Fishburne’s seat at a traffic safety checkpoint. At the time, Fishburne was on federal supervision following a 2017 conviction for aiding and abetting attempted murder in aid of racketeering. This conviction arose from a November 6, 2015, shooting in Colleton County, in which members and associates of a violent Walterboro gang disputed the outcome of an illegal car race and then attempted to rob a man holding money wagered on the race. Two men were shot, but authorities were not able to identify all of the shooters. Fishburne admitted to being an associate of the gang and driving another gang member from the scene of the shooting and received a time-served sentence.
Shortly after Fishburne was arrested with the .40 caliber pistol, his girlfriend, who had purchased the pistol from a Walterboro gun store, claimed that she had inadvertently left the gun in the vehicle Fishburne was driving. Agents with the Bureau of Alcohol Tobacco Firearms and Explosives (ATF) became suspicious, however, when they discovered that Fishburne had previously been arrested with another gun purchased by the same woman.
Additionally, ballistic analysis showed that the gun discovered under Fishburne’s seat matched three .40 caliber shell casings recovered from the scene of the November 6, 2015, shooting involving the gang, the same shooting that led to Fishburne’s 2017 conviction.
Fishburne was also convicted of possessing another firearm purchased by the same girlfriend, which was recovered by deputies of the Colleton County Sheriff’s Office following a high-speed chase involving Fishburne in 2014. In this incident, Fishburne fled from deputies and reached speeds of over 90 miles-an-hour on country roads while he and his passenger brandished handguns at the pursuing officer.
Fishburne previously spent ten years in a Georgia prison after killing his 18-year-old cousin over a dice game when he was 14 years old.
United States District Judge David Norton sentenced Fishburne to 285 months in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system. Fishburne’s trial was the last federal jury trial in Charleston before the COVID pandemic halted federal jury trials in the low country until the fall of 2021.
Judge Norton observed that Fishburne’s history of violence and recidivism was “consistent with statistics recently published by the U.S. Sentencing Commission” showing “that firearms offenders recidivated at a higher rate than all other offenders.” The Court concluded that a “substantial sentence” was “warranted to protect the public” from Fishburne and to “deter others” who “may follow his unfortunate path.”
The case was investigated by ATF, South Carolina Law Enforcement Division (SLED), the Walterboro Police Department, and the Colleton County Sheriff’s Office 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.
This case was also made possible by investigative leads generated from ATF’s National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin
Assistant United States Attorney Chris Schoen and Special Assistant United States Attorney Carra Henderson prosecuted the case.
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Ashtabula Man Sentenced to More Than 10 Years in Prison for Repeat Distribution of DrugsRead the Press Release
U.S. Attorney Bridget M. Brennan announced that Rodney P. Taylor, 37, of Ashtabula, Ohio, was sentenced on Tuesday, January 4, 2022, by Judge Benita Y. Pearson to 124 months in prison after Taylor pleaded guilty to a drug conspiracy and possession with the intent to distribute methamphetamine.
According to court documents, on September 4, 2018, investigators with the Drug Enforcement Administration (DEA) observed Taylor delivering methamphetamine to a co-conspirator during a controlled drug buy operation. Prior to this incident, Taylor had been previously convicted of participating in a drug trafficking conspiracy in the Northern District of Ohio in April of 2010. At the time of the September offense, Taylor was on federal supervised release for this previous conviction.
This case was investigated by the DEA and was prosecuted by Assistant U.S. Attorney Brian S. Deckert.
Anchorage Man Sentenced to 35 Years in Prison for Sex Trafficking Minors, Child Pornography and Illegal Possession of a FirearmRead the Press Release
ANCHORAGE – An Anchorage man was sentenced today to 35 years in prison and a lifetime of supervised release by Senior U. S. District Court Judge Ralph R. Beistline on five counts of sex trafficking minors, three counts of production of child pornography and two counts of being a felon in possession of firearms. In handing down the sentence, Judge Beistline noted the defendant’s complete lack of respect for the law as well as the absence of any remorse or empathy for the victims whom he controlled and were significantly damaged by his conduct.
According to court documents, between October and December 2018, Tristan Jamal Grant, aka “Goo,” 35, conspired with another person to traffic two minors, a 15-year-old female and a 17-year-old female. Both minors were runaways who stayed with Grant at his co-conspirator’s apartment. While at the apartment, they created online advertisements that were used to market the minors. Grant then trafficked his victims by persuading them to perform sex acts for money; serving as protection for the minors; and driving one of the minors to a date to perform commercial sex acts. Additionally, Grant produced child pornography with one of the minors on two separate occasions.
Grant was arrested by Anchorage Police Department following a shooting on December 12, 2018. When arrested Grant was in possession of two weapons. Because Grant had previously been convicted of a felony, possession of those guns was illegal.
Grant remained in custody and was indicted by a federal grand jury. He escaped from custody during a court ordered release to meet with his attorney at the attorney’s office. Grant was captured and later sentenced to three years of imprisonment for charges relating to his escape, which he will serve consecutively to the above sentence. Grant was convicted of the charges following a bench trial in April 2021.
“The sex trafficking of minors is a horrific crime, often wreaking terrible physical and emotional harm upon vulnerable victims,” said U.S. Attorney John E. Kuhn, Jr. of the District of Alaska. “The facts in this case reflect an unfathomable disregard for the welfare of the minors involved. The U.S. Attorney’s Office and our law enforcement partners will do everything in our power to bring to justice anyone who exploits children, and we will seek fitting punishments to deter this tragic crime and protect the most vulnerable members of our society.”
“Tristan Grant used violent, manipulative means to force minors into performing commercial sex acts, while at the same time producing CSAM online and terrorizing our communities with other egregious acts of violence,” said Assistant Special Agent in Charge Shawn Peters of the FBI Anchorage Field Office. “His conduct caused immeasurable harm to the survivors and to the community of Anchorage, and for that, he will now spend over 35 years in federal prison. The FBI is grateful for our collaborative partnerships across the state as we continue to combat violent crime and crimes against Alaska’s youth.”
This case was investigated by the Federal Bureau of Investigation, Anchorage Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives, working together through the FBI’s Safe Streets/Crimes Against Children/Human Trafficking Task Force. The task force marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children through sex trafficking, as well as to identify and recover victims.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices, Project Safe Childhood combines 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 visitwww.justice.gov/psc.
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Albert City Woman Sentenced to 30 Days Imprisonment for Money LaunderingRead the Press Release
A woman who laundered funds from her illegal business was sentenced on January 4, 2022 to 30 days’ imprisonment. Yesenia Ledesma-Ledezma, age 23, from Albert City, Iowa, received a prison term after pleading guilty on August 9, 2021, and agreeing to forfeit property acquired with proceeds from her illegal business.
At a plea hearing, Ledesma-Ledezma admitted that on April 9, 2020, she engaged in money laundering by purchasing a home for approximately $65,000 with proceeds derived from her extensive business operations which involved smuggling counterfeit goods into the United States and trafficking those counterfeit goods. The counterfeit goods known to law enforcement had an approximate domestic value of over $370,000, and defendant took in a profit of at least $65,000 from her counterfeit trafficking and smuggling activities.
Ledesma-Ledezma was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Ledesma-Ledezma was sentenced to 30 days’ imprisonment. She must also serve a two-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Ron Timmons and was investigated by Homeland Security Investigations and the United States Postal Inspection Service.
Ledesma-Ledezma is to surrender to the Bureau of Prisons on a date yet to be set.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 21-4063.
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4 January 2022
York County Man Sentenced to Five Years’ Imprisonment for Possessing Firearm in Furtherance of Drug TraffickingRead the Press Release
HARRISBURG—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jahzaire Gilliam, age 20, of York, Pennsylvania, was sentenced yesterday by U.S. District Court Judge Christopher C. Conner to five years’ imprisonment for possessing a firearm in furtherance of drug trafficking. The sentence also included a two-year term of supervised release, which will follow the term of imprisonment.
According to United States Attorney John C. Gurganus, Gilliam previously admitted that while distributing marijuana in York in March 2021, he possessed a 9mm Century Arms Canik 55 semi-automatic pistol. The firearm was loaded with 18 rounds.
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.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the York County Drug Task Force, and the York City Police Department. Assistant U.S. Attorney Carlo D. Marchioli prosecuted the case.
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Woman Sentenced to 27 Months in Federal Prison for Postage Stamp SchemeRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Fanice Reed, aka Fanice Jones, 45, formerly of Humble, Texas, was sentenced to 27 months in federal prison for theft of government property. Reed was also ordered to pay $72,727.99 in restitution and serve a term of three years on supervised release following the period of incarceration.
According to court documents, from February 2019 through March 2020, Reed used counterfeit checks at post offices in Colorado and Texas to obtain large quantities of postage stamps. The counterfeit checks purported to be drawn on the bank accounts of law firms, non-profit groups, or other business entities, but the bank accounts did not exist. When asked to provide personal identification during these transactions, Reed provided false personal identification. On some occasions, Reed told postal employees that her law firm needed the postage for a big mailing that was about to go out. On other occasions, she told postal employees that she was buying the postage on behalf of a non-profit organization so they could send postage inside care packages to U.S. military troops. Through this scheme, Reed stole $258,452.64 from the United States Postal Service.
“Our country depends on the postal service for many essential functions, including delivery to every residential and business address in the nation,” said U.S. Attorney Cole Finegan. “We will prosecute fraudsters that target the postal service to help ensure the integrity of this vital institution.”
“Postal Inspectors work each day to protect key components of the U.S. Postal Service,” said Ruth Mendonça, Inspector in Charge of the Denver Division of the U.S. Postal Inspection Service. “When fraudsters steal from the postal service, they impact America’s most trusted government institution that delivers mail and packages to over 161 million addresses across the United States. Today’s sentence serves as another example of Postal Inspectors’ commitment to protecting the integrity of the U.S. Postal Service,” said Mendonça.
United States District Court Judge Christine M. Arguello sentenced Reed on January 4, 2022.
The investigation in this case was conducted by the United States Postal Inspection Service. The prosecution was handled by Assistant U.S. Attorney Pegeen Rhyne.
Case number: 21-cr-00142-CMA
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Thirteen Arrested for Fentanyl DistributionRead the Press Release
AUSTIN – Today 13 individuals were arrested on criminal charges for their alleged involvement in fentanyl distribution.
According to court documents, Marcos Garcia, 18, of Somerton, AZ; Oliver Garcia, 20, of Lockhart; Christopher Brook, 23, of Austin; Jaime Cabrales, 23, of Austin; Matthew Juan, 19, of Austin; Adi Martinez Marquez, 19, of Austin; Andrew Ruben Ramirez, 23, of Austin; Ezequiel Azmitia-Jimenez, 19, of Lockhart; Michael Bauman, 18, of Austin; Daemon Lye Garcia, 19, of San Marcos; Ernest Ochoa, 18, of Austin; and Josue Nolasco-Campuzano, 20, of Live Oak, were arrested on charges of distributing fentanyl in the Austin area.
“This operation demonstrates this Office’s commitment to the disruption and prosecution of criminal organizations destroying communities through the distribution of deadly counterfeit prescriptions laced with fentanyl,” said U. S. Attorney Ashley C. Hoff. “We will continue to work with our law enforcement partners to confront this escalating problem.”
“Today’s coordinated law enforcement operation dismantled an enterprise responsible for the distribution of counterfeit pills; these fake pills laced with fentanyl were clandestinely manufactured to mimic the prescription pharmaceutical Oxycodone,” said Drug Enforcement Administration (DEA) Special Agent in Charge Daniel C. Comeaux, Houston Division. “Counterfeit pills have become a real and viable threat to the American people. We caution every person to never consume pharmaceuticals unless under licensed medical care and sourced from a licensed pharmacy. The DEA will continue to relentlessly pursue any individual or organization that threatens our communities with these fake deadly pills.”
Marcos Garcia, Oliver Garcia, Brook, Cabrales, Juan, Marquez, Ramirez and Azmitia are charged by federal indictment with one count of conspiracy to distribute fentanyl. If convicted, each defendant faces up to life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Bauman, Daemon Garcia, Ochoa and Nolasco are charged by federal criminal complaint of possessing with intent to distribute fentanyl. If convicted, each defendant faces up to life in prison.
The DEA, FBI, U.S. Postal Inspection Service, and the Austin, Cedar Park, San Angelo, and San Marcos Police Departments are investigating the case.
Assistant U.S. Attorney Mark Marshall is prosecuting the case.
An indictment or complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Theranos Founder Elizabeth Holmes Found Guilty of Investor FraudRead the Press Release
SAN JOSE - A jury found Elizabeth A. Holmes guilty of one count of conspiracy and three counts of wire fraud in connection with a multi-million-dollar scheme to defraud investors in Theranos, Inc., announced United States Attorney Stephanie M. Hinds; Federal Bureau of Investigation (FBI) Special Agent in Charge Craig D. Fair; Food and Drug Administration (FDA) Acting Commissioner Janet Woodcock; and U.S. Postal Inspection Service (USPIS) Inspector in Charge Rafael Nuñez. The verdicts follow a 15-week trial before the Honorable Edward J. Davila, United States District Judge.
“The jurors in this 15-week trial navigated a complex case amid a pandemic and scheduling obstacles,” said U.S. Attorney Hinds. “I thank the jurors for their thoughtful and determined service that ensured verdicts could be reached. The guilty verdicts in this case reflect Elizabeth Holmes’ culpability in this large-scale investor fraud and she must now face sentencing for her crimes.”
“Elizabeth Holmes chose fraud over business failure. A jury has determined, beyond a reasonable doubt, that she intentionally misled investors,” said Special Agent in Charge Craig Fair. “I want to thank the FBI San Francisco agents and analysts who spent years investigating allegations of fraud within Theranos to uncover the truth and ensure justice in this case.”
“The FDA’s Office of Criminal Investigations (OCI) will continue to investigate and help bring to justice individuals and companies responsible for putting the public health at risk,” said FDA Assistant Commissioner for Criminal Investigations Catherine A. Hermsen. “FDA-OCI is proud to have partnered with the United States Attorney’s Office and its law enforcement counterparts to bring this prosecution.”
“The U.S. Postal Inspection Service is committed to protecting consumers and investors from fraud,” said USPIS Inspector in Charge Nuñez. “We are proud of the dedication shown by Postal Inspectors and our partners at the U.S. FDA and the FBI by seeing this case through to a verdict.”
Holmes, 37, of Woodside, Calif., founded Theranos in 2003. Theranos was a blood testing company based in Palo Alto and Newark, Calif. Holmes used a combination of direct communications, marketing materials, statements to the media, financial statements, models, and other information to induce investments. She claimed Theranos had developed an analyzer, variously referred to as, among other things, the Theranos Sample Processing Unit (TSPU), Edison, or minilab. She claimed the analyzer was able to perform a full range of clinical tests using small blood samples drawn from a finger stick. She also represented that the analyzer could produce results that were more accurate and reliable than those yielded by conventional methods—all at a faster speed than previously possible.
The evidence submitted during the trial demonstrated Holmes knowingly made materially false representations to investors and potential investors about the analyzer. For example, the evidence showed that Holmes knew the analyzer had accuracy and reliability problems, performed a limited number of tests, was slower than some competing devices, and, in some respects, could not compete with existing, more conventional machines. Evidence also showed that Holmes resorted to using conventional machines bought from third parties to perform much of Theranos’s blood testing.
The trial included evidence that Holmes made numerous misrepresentations to potential investors about Theranos’s financial condition and its future prospects. For example, the evidence showed that Holmes represented to investors that Theranos would generate over $100 million in revenues and break even in 2014 and that Theranos expected to generate approximately $1 billion in revenues in 2015 when, in truth, she knew Theranos would generate only negligible or modest revenues in 2014 and 2015.
Further, the evidence showed that Holmes represented to investors that Theranos had a profitable and revenue-generating business relationship with the United States Department of Defense and that Theranos’s technology had deployed to the battlefield when, in truth, Theranos had limited revenue from military contracts and its technology was not deployed in the battlefield. The evidence showed Holmes represented to investors that Theranos had been comprehensively validated by numerous major pharmaceutical companies and provided reports to investors with logos from pharmaceutical companies falsely suggesting the pharmaceutical companies endorsed Theranos. In addition, the evidence showed that Holmes represented to investors that Theranos would soon dramatically increase the number of Wellness Centers within Walgreens stores even though Theranos’s retail Walgreens rollout had stalled because of several issues.
Holmes was initially charged on June 14, 2018. On July 28, 2020, a federal grand jury returned a superseding indictment charging Holmes with two counts of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349, and ten counts of wire fraud, in violation of 18 U.S.C. § 1343. One of the conspiracy counts alleged Holmes defrauded investors while the second count alleged Holmes defrauded patients who used Theranos services. Similarly, the indictment charged Holmes with ten counts of wire fraud, several of the counts alleging investor fraud and several alleging Holmes defrauded patients who were induced to purchase Theranos services.
The jury convicted Holmes of the investor wire fraud conspiracy count and three substantive wire fraud counts relating to the scheme to defraud investors, including wire transfers totaling more than $140 million. The jury acquitted Holmes of the patient-related conspiracy wire fraud count and three additional wire fraud counts. One count of wire fraud relating to a Theranos patient was dismissed during the trial. The jury could not reach a unanimous verdict with respect to three investor fraud-related counts.
Holmes faces a maximum sentence of twenty (20) years in prison, and a fine of $250,000, plus restitution, for the conspiracy count and each count of wire fraud. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Judge Davila has not yet scheduled Holmes’s sentencing hearing. She remains free on bond, pending further hearings.
Assistant U.S. Attorneys Robert S. Leach, Jeff Schenk, John C. Bostic, and Kelly Volkar are prosecuting the case with the assistance of Lakisha Holliman, Madeline Wachs, Elise Etter, Susan Kreider, and Leeya Kekona. The prosecution is the result of an investigation by the FBI, USPIS, and FDA Office of Criminal Investigations.
St. Louis man pleads guilty for committing multiple armed robberiesRead the Press Release
ST. LOUIS – United States District Court Judge E. Richard Webber accepted a plea of guilty from DeAngelo Winston on today’s date. Winston pleaded guilty to two counts of armed robbery and two counts of possession of a firearm and possession and brandishing of a firearm in furtherance of crimes of violence. Judge Webber set sentencing for April 7, 2022.
According to the plea agreement, on June 21, 2019, Winston entered the Boost Mobile cellular telephone store located at 3956 S. Broadway in the City of St. Louis. Winston went around the store counter, pointed a revolver at the clerk and demanded money from the register as well as iPhones. Winston then took both money and iPhones from the Boost Mobile and fled the store.
On August 13, 2019, Winston entered the Boost Mobile at 2253 S. Grand Avenue, St. Louis, Missouri, armed with a handgun. Winston walked around the counter and pushed his handgun into the side of a store clerk. Winston took money from the cash register and demanded the clerk take him into the back room where extra phones were stored. Winston also took phones from the safe in the back room and fled the store. Winston was later identified as the perpetrator of both robberies in a photo line-up.
The case was investigated by the St. Louis Metropolitan Police Department and Federal Bureau of Investigation.
South Florida Bookkeeper for International Enterprise That Operated Sexually Exploitive “Child Modeling” Websites Pleads GuiltyRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Tatiana Power (41, Weston) today pleaded guilty to a money laundering conspiracy related to a Florida-based international enterprise that operated subscription-based sexually exploitative “child modeling” websites. Power faces up to 20 years in federal prison.
According to court documents, Tatiana Power (also known as “Tanya Power”) helped run the financial affairs of the Newstar Enterprise—an internet-based business aimed at for-profit sexual exploitation of vulnerable children under the guise of “child modeling,” through a collection of websites called the Newstar Websites. Power did so as Vice President and part owner of Power Trading, Inc., a Florida corporation used to control, operate, and conceal the true nature of the Newstar Enterprise. From as early as 2009 through November 2019, Power served as Power Trading’s (and thus the Newstar Enterprise’s) “bookkeeper.” She oversaw Power Trading’s QuickBooks, filed its annual corporate registration documents, managed its bank accounts, paid salaries, helped wire money to foreign co-conspirators, and advised co-conspirators on how to evade law enforcement and conceal the true nature of monetary transactions. She routinely assisted in transferring money and making payments for the Newstar Enterprise. From January 2009 until November 2019, Power and her now deceased husband, Kenneth Power, made $2,211,651.89 in profit from the Newstar Websites.
The Newstar Enterprise and Status of Other Defendants
According to court documents, founded around 2005, the Newstar Enterprise built, maintained, hosted, and operated the Newstar Websites on servers in the United States and abroad. To populate the Newstar Websites with content, Newstar Enterprise members sourced, enticed, solicited and recruited males and females under the age of 18, some of whom were prepubescent, to use as “child models” for the Newstar Websites. Using the recruited child-victims, the Newstar Enterprise produced more than 4.6 million sexualized images and videos to distribute and sell on the Newstar Websites. Some of those images and videos, though non-nude, depicted minors engaged in sexually explicit conduct. For example, images and videos sold on the Newstar Websites depicted children as young as 6 years old in sexual and provocative poses, wearing police and cheerleader costumes, thong underwear, transparent underwear, revealing swimsuits, pantyhose, and miniskirts. Most of the child-victims—recruited from Ukraine, Moldova, and other nations in Eastern Europe—were particularly vulnerable due to their age, family dynamics and poverty. Law enforcement officers have disabled the servers hosting the Newstar Websites.
The Newstar Enterprise maintained a membership list for subscribers and customers of the Newstar Websites, who originated from 101 nations across the world. Images in the websites’ galleries were freely available to the public to preview, but greater access and more content required purchasing a subscription. The sale of purported “child modeling” content on the Newstar Websites generated more than $9.4 million during the course of the conspiracy. To process, receive and distribute this money, Newstar Enterprise members fraudulently opened merchant and bank accounts in the United States and laundered proceeds using a bogus jewelry company.
To date, six members of the Newstar Enterprise have been charged in connection with the Newstar Websites. The chart below shows the status of each case.
Name
Case Number
Charge(s)
Status
Maximum Penalty
Tatiana Power
8:21-cr-244-MSS-AAS
Conspiracy to commit money laundering
Pleaded guilty, sentence pending
20 years’ imprisonment
Kenneth Power
8:21-cr-00032-SDM-AAS
Conspiracy to advertise child pornography; conspiracy to distribute child pornography
Defendant deceased; case dismissed
60 years’ imprisonment
Plamen Velinov
8:21-cr-342-VMC-SPF
Conspiracy to advertise child pornography; conspiracy to distribute child pornography
Indicted
50 years’ imprisonment
Patrice Wilowski-Mevorah
8:21-cr-00206-MSS-TGW
Conspiracy to commit money laundering
Pleaded guilty, sentenced to 5+ years in prison
Anthony Lee Kendall
8:21-cr-358-SCB-TGW
Conspiracy to commit money laundering; promotion money laundering; concealment money laundering
Defendant deceased
100 years’ imprisonment
Mary Lou
Bjorkman
8:21-cr-00227-SDM-AAS
Conspiracy to commit money laundering
Pleaded guilty, sentence pending
20 years’ imprisonment
The defendants have also been notified that the United States intends to forfeit a total of $9.4 million, which are alleged to be traceable to proceeds of the offenses, in addition to real property located in Florida.
These cases were investigated by Homeland Security Investigations in Tampa and the High Technology Investigative Unit of the Department of Justice Criminal Division’s Child Exploitation and Obscenity Section (CEOS), with substantial assistance provided by Homeland Security Investigations offices in Fort Lauderdale, Athens, and the Hague, U.S. Customs and Border Protection in Sofia, Bulgaria, as well as the IRS Criminal Investigation in Tampa.
Assistant U.S. Attorney Frank Murray of the Middle District of Florida and Trial Attorney Kyle Reynolds of the CEOS are prosecuting these cases.
This investigation benefited from foreign law enforcement cooperation and substantial assistance by the Republic of Bulgaria, Supreme Cassation Prosecution Office and National Investigation Service; International Legal Assistance Center (IRC), North-Holland Unit; and the Czech Republic, Supreme Public Prosecutor’s Office, Czech Police. The Justice Department’s Office of International Affairs provided investigative assistance and its Office of Overseas Prosecutorial Development, Assistance and Training (OPDAT) provided capacity building assistance and mentoring.
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.
Shreveport Businessman Sentenced on Wire Fraud ChargeRead the Press Release
SHREVEPORT, La. – United States Attorney Brandon B. Brown announced that David D. DeBerardinis, 60, of Shreveport, Louisiana, was sentenced today by Chief United States District Judge S. Maurice Hicks, Jr. to 15 years in prison, followed by 3 years of supervised release, for committing wire fraud and defrauding many people out of millions of dollars. A presentence investigation estimated the amount of loss to the victims in this case to be over $58,000,000. A hearing will be held on March 28, 2022 at 9:00 to determine the exact full amount of restitution to be paid by DeBerardinis.
DeBerardinis, a Shreveport-based executive, pleaded guilty to the charge of wire fraud on August 25, 2021. DeBerardinis admitted that he operated and managed numerous business entities and that he represented himself and his business entities to be part of the petroleum industry involved in a complex fuel trading business. DeBerardinis solicited, and caused others to solicit, individual investors and financial institutions to provide funds for his businesses in exchange for interest payments and a guaranteed return of principal.
DeBerardinis told investors and financial institutions that he had a preferential trading arrangement with Alon USA Energy, Inc. (Alon) that generated significant profits that would be used to repay the investors and financial institutions when in truth and in fact, DeBerardinis knew that he had no such arrangement with Alon. Between April 2014 and June 2015, PlainsCapital Bank, a financial institution in Dallas, Texas, provided funding to DeBerardinis in the amount of $29,500,000 allegedly to expand his fuel trading business. At the time the funding was obtained, DeBerardinis knew that he was not making fuel trades and that he did not have a relationship with Alon.
The funding from PlainsCapital was made by several interstate wire transfers from PlainsCapital Bank in Dallas to one of DeBerardinis’ bank accounts in Shreveport. The defendant either initiated or caused to be initiated these wire transfers. One of the wire transfers occurred on or about November 25, 2014 in the amount of $17,100,000.
“As was evident in today’s sentencing hearing, this defendant spent many years conning not only business associates, but also friends who trusted him, out of millions of dollars and destroying many of their lives while doing so,” stated United States Attorney Brandon B. Brown. “His cavalier attitude about the deception he used and the destruction that he caused is appalling. Seeking justice for victims such as these in this case is what continues to drive us to work harder to weed out those who deploy such unconscionable acts.”
DeBerardinis was ordered to report to the U.S. Bureau of Prisons on February 16, 2022.
The case was investigated by the Federal Bureau of Investigation, United States Secret Service and Caddo Parish Sheriff’s Office. First Assistant U.S. Attorney Alexander C. Van Hook and Assistant U.S. Attorneys Jessica D. Cassidy and Cadesby B. Cooper prosecuted the case.
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Several inmates facing chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA –Several inmates were indicted today on multiple charges, United States Attorney William J. Ihlenfeld, II announced.
Dwight Foster, 48, an inmate of USP Hazelton, is charged with one count of “Assault of a Correctional Officer Involving Physical Contact” and one count of “Possession of a Prohibited Object – Weapon.” Foster is accused of having a weapon on his person. He is also accused of striking a correctional officer in September 2021.
Jason Dent, 44, an inmate at USP Hazelton, is charged with one count of “Assault of a Correctional Officer Resulting in Bodily Injury.” Dent is accused of assaulting a Bureau of Prisons Special Investigative Services Lieutenant causing bodily injury in April 2021.
Shawn Ford, 23, an inmate at FCI Hazelton, was indicted on one count of “Attempt to Obtain a Prohibited Object – Narcotic.” Ford is accused of trying to obtain suboxone without the warden’s knowledge in April 2021.
Assistant U.S. Attorney Christopher L. Bauer is prosecuting each case on behalf of the government. The Bureau of Prisons investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Roswell businesswoman sentenced for $6 million in Paycheck Protection Program fraudRead the Press Release
ATLANTA - Hunter VanPelt has been sentenced to prison for bank fraud related to the Paycheck Protection Program (PPP) when she obtained over $6 million in fraudulent proceeds.
“The Paycheck Protection Program is meant to help legitimate businesses and their workers through the depths of the pandemic,” said U.S. Attorney Kurt R. Erskine. “Unfortunately, VanPelt decided to use the program as her personal bank. A significant federal sentence, such as the one she received, hopefully deters others from following the same path.”
“The FBI will not tolerate anyone who misdirects federal emergency assistance intended for business who actually need it to stay operational,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “This sentence serves as a message that the FBI and our federal partners remain vigilant during this Coronavirus pandemic to make sure funds provided by programs like PPP are used as intended."
“To support small and community banks, the Federal Home Loan banks can accept Paycheck Protection Program (PPP) loans as collateral when making advances to their members,” said Special Agent in Charge Edwin S. Bonano of the Federal Housing Finance Agency, Office of Inspector General. “The FHFA Office of Inspector General is proud to work with our partners in law enforcement to prevent, detect, and deter attempts to perpetrate fraud in the PPP program intended for small business owners and employees under this important part of the CARES Act.”According to Acting U.S. Attorney Erskine, the charges and other information presented in court: VanPelt, a/k/a Hunter Lauren VanPelt, a/k/a Ellen Corkrum, a/k/a Ellen Yabba Kwame Corkrum, submitted six false and fraudulent PPP loan applications between April 27, 2020 and June 17, 2020. The amounts requested in the six PPP loans totaled $7,943,591.50, of which $6,017,066.50 was disbursed.
VanPelt owned or controlled the six entities that sought these PPP loans: Georgia Nephrology Physician Associated, United Healthcare Group & Co., Nephrology Network Group LLC, First Corporate International, Corkrum Consolidated Inc., and Kiwi International Inc. The defendant, who legally changed her name from Ellen Corkrum to Hunter VanPelt in July 2016, submitted the PPP loan applications under both names.
In each of the PPP loan applications, VanPelt falsely represented the average monthly payroll and the number of employees working for the relevant company. She also submitted false IRS records, false bank statements, and false payroll reports in connection with those applications.
Federal agents were able to seize approximately $2.1 million of the fraudulent proceeds.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020. It is designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding. Additional funding was authorized by Congress in December 2020.
The PPP allows qualifying small-businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within eight weeks of receipt and use at least 75 percent of the forgiven amount for payroll.
Hunter VanPelt, a/k/a Hunter Lauren VanPelt, a/k/a Ellen Corkrum, a/k/a Ellen Yabba Kwame Corkrum, 49, of Roswell, Georgia, was sentenced to three years, five months in prison to be followed by five years of supervised release, and ordered to pay restitution in the amount of $7,002,031.50. She was also ordered to forfeit $2,077,381. VanPelt was convicted on these charges on August 18, 2021, after she pleaded guilty.
This case was investigated by the Federal Bureau of Investigation and the Federal Housing Finance Agency Office of Inspector General.
Assistant U.S. Attorney Christopher J. Huber, Deputy Chief of the Complex Frauds Section, and Department of Justice Trial Attorney Chris A. Wenger prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Rapper Pooh Shiesty Pleads Guilty to Federal Conspiracy ChargeRead the Press Release
Miami, FL – Today, Tennessee rapper Lontrell D. Williams, Jr. (a/k/a Pooh Shiesty) pled guilty to conspiring to possess firearms in furtherance of crimes of violence and drug trafficking.
As part of the plea, Williams, Jr. admitted to participating in the conspiracy on the following three occasions. First, on July 7, 2020, in Memphis, Tennessee, Williams, Jr. was inside a car when an occupant of the car discharged a firearm at a gas station. Second, on October 9, 2020, in Bay Harbor Islands, Florida, Williams, Jr. and his co-conspirators arrived at a meeting to acquire marijuana, codeine, and sneakers. During this meeting, members of Williams’ group brandished firearms and assaulted two victims. Following the assault, the group departed the scene with the victims’ marijuana, codeine, and sneakers. Third, on May 30, 2021, Williams, Jr. assaulted a victim with a firearm at a Miami strip club.
United States District Judge K. Michael Moore will sentence Williams, Jr. on a date to be announced. Williams, Jr. faces up to 20 years in federal prison.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI, Miami Field Office, made the announcement.
FBI Miami investigated the case, with assistance from ATF Miami, ATF Memphis, Miami Dade Police Department, Memphis Police Department, and Bay Harbor Islands Police Department. The Miami-Dade State Attorney’s Office also assisted. Assistant U.S. Attorneys Arielle Klepach, Ignacio J. Vázquez, Jr., and Dayron Silverio are prosecuting the case. Assistant U.S. Attorney William T. Zloch is handling asset forfeiture.
This case stems from Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. In 2017, PSN was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime. The case is also related to “Operation Summer Heat,” a Miami-Dade County antiviolence initiative.
This prosecution was part of Operation Northern Light, which is a result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the highest-level drug traffickers, money launderers, and other priority transnational criminal organizations that threaten the citizens of the United States using a prosecutor-led, intelligence driven, multi-agency approach to combat transnational organized crime. The OCDETF program facilitates complex, joint operations by focusing its partner agencies on priority targets, by managing and coordinating multi-agency efforts, and by leveraging intelligence across multiple investigative platforms.
Anyone with information related to possible gun crimes is asked to call Crime Stoppers at 305-471-TIPS.
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-20357.
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Rabbi Yisroel Goldstein Sentenced to Prison for Multi-Million-Dollar Fraud SchemesRead the Press Release
Assistant U. S. Attorneys Valerie H. Chu (619) 546-6750 and Michelle L. Wasserman (619) 546-8314
NEWS RELEASE SUMMARY – January 4, 2022
SAN DIEGO – Rabbi Yisroel Goldstein, former director at Chabad of Poway, was sentenced in federal court today to fourteen months in custody for his years-long, multi-million-dollar schemes to defraud the Internal Revenue Service, several San Diego Fortune 500 companies, and multiple public and private agencies. He was also ordered to pay restitution totaling $2,834,608.
According to his plea agreement, while Rabbi Goldstein was director of the Poway synagogue, he received at least $6.2 million in phony contributions to the Chabad and affiliated charities and secretly refunded up to 90 percent of the donations to the “donors.” After Rabbi Goldstein provided these donors with fake receipts, they illegally claimed huge tax deductions for these nonexistent donations, and the rabbi kept about 10 percent – more than half a million dollars over the course of the fraud - for himself. Tax losses to the IRS were more than $1.5 million.
Rabbi Goldstein also admitted that he defrauded three different Fortune 500 companies by tricking them into matching supposed charitable donations of their employees. Working with the employees, Rabbi Goldstein fabricated receipts and then secretly returned their fake “donations.” This allowed the employees to claim tax deductions for the completely fabricated donations, and allowed Rabbi Goldstein to collect the companies’ matching funds—including some that matched double their employees’ donations. Rabbi Goldstein helped to orchestrate this scheme with at least six taxpayer-employees and two other associates who helped recruit new donors or conceal the true recipient of the funds. In total, Rabbi Goldstein defrauded the companies out of at least $144,000, and helped the taxpayer-employees to claim nearly as much in fictitious tax-deductible charitable contributions to the IRS.
Rabbi Goldstein admitted that he also helped his brother Mendel Goldstein conceal approximately $700,000 in income by allowing him to use Chabad bank accounts to deposit his income, thereby hiding it from the IRS. As his cut, Rabbi Goldstein kept 10 percent of this individual’s income—more than $70,000.
Separate and apart from the tax evasion scheme, Rabbi Goldstein and another defendant, Alexander Avergoon, used false information and fabricated invoices and other records to pretend to be eligible for emergency funds, grants or donations, and private loans. These frauds on the Federal Emergency Management Agency (FEMA), the California Governor’s Office of Emergency Services (Cal OES), and private foundations resulted in losses to these programs of at least $860,000.
According to sentencing documents, the United States Attorney’s Office recommended departures from the sentencing guidelines for Goldstein because of his cooperation against other individuals, and because of the extraordinary events he suffered as a victim of the April 27, 2019 shooting at the Chabad of Poway.
In imposing sentence, U.S. District Judge Cynthia A. Bashant commented, “You dragged down so many congregants. Many of those individuals thought that they were committing these offenses to benefit the Chabad or the synagogue in general, when in fact it was to benefit you. I just can’t ignore that. … I think time in custody is important. It’s important to send a message to the community, and it’s important to send a message to you.”
“Yisroel Goldstein exploited his position and stature as a faith leader to commit well-planned and carefully executed crimes of greed,” said U.S. Attorney Randy Grossman. “As his serious criminal conduct was under investigation, the rabbi became a victim in a devastating attack on the synagogue he led. Today’s sentence accounts for these extraordinary circumstances and our office’s mission to always seek justice.” Grossman thanked the prosecution team, the FBI and the IRS for their excellent work on this case.
“The defendant used the Chabad of Poway’s tax-exempt status as a religious organization to compile millions of dollars in fraudulent ‘donations’,” said FBI Special Agent in Charge Suzanne Turner. “This scheme enabled Rabbi Goldstein to line his own pockets; reward his fake ‘donors’ with reimbursement for their contributions; and provided receipts enabling the ‘donations’ to be written off as charitable contributions, all in furtherance of the scheme. The FBI will continue to root out fraud disguised as charitable donations which ultimately hurts those organizations relying on the generosity of donors.”
“Rabbi Goldstein veiled over $2.8 million in fraud schemes he perpetrated with at least ten other co-conspirators by exploiting the non-profit statuses of the Chabad of Poway and the Friendship Circle of San Diego, organizations entrusted to him to serve the community,” said Special Agent in Charge Ryan L. Korner of IRS Criminal Investigation's Los Angeles Field Office. “IRS Special Agents were proud to work alongside the FBI and the U.S. Attorney's Office in this multimillion-dollar tax and grant fraud investigation that uncovered decades of illegal conduct. In addition to holding Rabbi Goldstein accountable for cheating U.S. taxpayers and businesses for personal gain, my fervent hope is that today's sentencing brings closure and healing to all who were affected by his crimes.”
Rabbi Goldstein was ordered to surrender into federal custody by noon on February 23, 2022.
DEFENDANT Case Number 20CR1916-BAS
Yisroel Goldstein Age: 60 Poway
SUMMARY OF CHARGES
Conspiracy to Defraud the United States and Commit Wire Fraud, in violation of Title 18, USC 371
Maximum Penalty: Five years in prisonINVESTIGATING AGENCIES:
Federal Bureau of Investigation
Internal Revenue Service – Criminal Investigation