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Tuesday 16 November 2021
MS-13 Leaders Convicted of Racketeering Offenses and MurderRead the Press Release
NEWARK, N.J. – A federal jury convicted three El Salvadoran nationals of Racketeer Influenced and Corrupt Organizations Act (RICO) charges, including murder in aid of racketeering, stemming from their participation in Mara Salvatrucha, a violent international criminal racketeering enterprise commonly known as MS-13, Acting U.S. Attorney Rachael A. Honig announced today.
“MS-13 is a violent multinational criminal organization that engages in drug trafficking, intimidation, and the murder of witnesses, rival gang members, and – as happened here – innocent victims,” Acting U.S. Attorney Honig said. “The jury’s guilty verdicts in this case cannot bring back the life of José Urias Hernandez, but they do ensure that these defendants will be held accountable for their actions. We thank the jury for its service, and we reiterate our commitment to investigating and prosecuting MS-13 members, and others like them, who bring bloodshed to our communities.”
“Today’s convictions are the result of a multi-agency investigation,” George M. Crouch Jr., FBI Special Agent in Charge in Newark, said. “Dedicated personnel from our federal, state and local partners worked in unison to combat this dangerous and violent criminal enterprise. This cooperation is, and will continue to be, a critical factor for successfully defending threats that endanger our communities and bring defendants to justice wherever they are based.”
“The convictions secured were years in the making, from the original arrests on immigration charges to convictions that include the murder of an innocent man,” John Tsoukaris, Field Office Director, ICE-ERO Newark, said. “The cooperation between various law enforcement agencies cannot be overstated here, as it led to these vicious criminals being taken off the streets. The brave officers of ICE Enforcement and Removal Operations will continue our work to make our communities safer by pursuing dangerous gang members and their criminal enterprises.”
“These individuals planned and executed the murder of an innocent person, ending a life through senseless violence due to mistaken identity,” Jason Molina, Special Agent in Charge for the Homeland Security Investigations (HSI) Newark field office, said. “HSI remains committed to working with our federal, state, and local partners to disrupt and dismantle criminal gangs like MS-13.”
“The ongoing collaboration with our law enforcement partners is essential for protecting our Hudson County residents against violent crime and criminals,” Hudson County Prosecutor Esther Suarez said. “This conviction is a major win and I commend all of the investigators and Assistant U.S. Attorneys who worked on this case and helped to make our communities safer.”
According to court documents and evidence presented at trial:
Between September 2014 and October 2015, Juan Pablo Escalante-Melgar, aka Humilde, 31, Elmer Cruz-Diaz, aka Locote, 33, and Oscar Sanchez-Aguilar, 25, aka Snappy 25, participated in the affairs of MS-13 by committing multiple racketeering offenses, including murder, extortion, witness tampering, and drug trafficking. Evidence presented at trial showed that in June or July 2015, Escalante-Melgar and Sanchez-Aguilar instructed an MS-13 member and an MS-13 recruit to kill a suspected rival gang member so that the MS-13 recruit could become a full member of MS-13.
On July 1, 2015, Jose Urias-Hernandez, then 19 years old, was shot and killed execution-style with a single shot to the back of his head as he entered his apartment building.
MS-13 is a violent criminal gang founded in Los Angeles, California, and now active in El Salvador, Central America, and Mexico, and numerous states across the United States, including New Jersey. MS-13 is governed by a core set of rules, including a standing order to kill rival gang members and a strict rule against cooperating with law enforcement. MS-13 is organized into a series of sub-units, or “cliques,” that operate in specific geographic locations, and each clique is typically controlled by a single leader, sometimes known as the “First Word.” Two cliques are active in and around Hudson County, New Jersey. Escalante-Melgar was the First Word of the Pinos Locos Salvatrucha clique, and Cruz-Diaz was the First Word of the Hudson Locos Salvatrucha clique.
Additionally, Escalante-Melgar and Cruz-Diaz conspired to murder a fellow MS-13 member, whom Salvadoran MS-13 leaders had “green-lighted” – or ordered to be killed – because he was suspected of cooperating with law enforcement.
In addition to murder, MS-13 members trafficked drugs, extorted a restaurant operating in the gang’s turf, and intimidated witnesses to prevent cooperation with law enforcement.
Escalante-Melgar, Cruz-Diaz, and Sanchez-Aguilar were among ten defendants charged in this investigation against MS-13 in New Jersey. One defendant, Christian Linares-Rodriguez, aka Donkey, 42, is a high-ranking MS-13 member who is currently incarcerated in El Salvador.
Escalante-Melgar, Cruz-Diaz, and Sanchez-Aguilar were convicted of RICO conspiracy, conspiracy to commit murder in aid of racketeering, murder in aid of racketeering, using and carrying a firearm during and in relation to a crime of violence, and causing death through the use of a firearm.
At sentencing, Escalante-Melgar, Cruz-Diaz, and Sanchez-Aguilar each face a mandatory minimum sentence of life in prison for murder in aid of racketeering, a maximum sentence of life in prison for the offenses of racketeering conspiracy and causing death through the use of a firearm; a maximum sentence of 10 years in prison for conspiracy to commit murder in aid of racketeering; and a mandatory minimum consecutive sentence of 10 years’ imprisonment for the offense of using and carrying a firearm during and in relation to a crime of violence.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge Crouch in Newark; officers of the Immigration and Customs Enforcement - Enforcement and Removal Operations Newark Field Office, under the direction of Field Office Director Tsoukaris; special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Molina in Newark: investigators of the Hudson County Prosecutor’s Office, under the direction of Prosecutor Suarez, and investigators of the West New York Police Department under the direction of Deputy Chiefs Santiago Cabrera and Alejandro De Rojas.
The government is represented by Desiree Grace, Deputy Chief of the Criminal Division for the U.S. Attorney’s Office for the District of New Jersey, and Trial Attorney Matthew K. Hoff of the Justice Department’s Organized Crime and Gang Section.
Local non-profit CEO sentenced to 4 years in prison for tax fraudRead the Press Release
CINCINNATI – The founder, owner, CEO and president of a Cincinnati nonprofit was sentenced today in federal court to 48 months in prison for using thousands of dollars for personal expenses instead of paying over payroll taxes to the IRS.
Hope 4 Change, a non-profit organization that provided housing and care for adults with developmental disabilities, drug addiction problems and mental disorders, employed between 120 and 180 individuals in 2013 and 2014.
Barry Rene Isaacs, the founder, owner, CEO and president of the non-profit, allegedly caused Hope 4 Change to spend thousands of dollars for clothing, massages, beauty care, travel and personal vehicles for Isaacs and his family.
According to court documents, Hope 4 Change withheld FICA taxes from its employees’ paychecks but did not pay over the employment taxes to the IRS for five quarters in late 2013 and 2014. Isaacs, 35, of Cincinnati, also fraudulently applied for an auto loan and credit card using someone else’s social security account number.
Isaacs was charged in April 2019. After fleeing the jurisdiction, Isaacs was apprehended by the United States Marshals Service in Texas in January 2020. He appeared for arraignment in federal court in Cincinnati in February 2020. On April 21, 2021, Isaacs pleaded guilty to willfully failing to pay over employment taxes and aggravated identity theft.
Teela Gilbert, 35, of Cincinnati, Hope 4 Change’s vice president, “student affairs” director and office manager has also been charged and has pleaded guilty to wire fraud and aggravated identity theft.
As part of his sentence, Isaacs was also ordered to pay approximately $246,000 in restitution to a company from which the co-defendants induced payments for false invoices.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Bryant Jackson, Special Agent in Charge, Internal Revenue Service-Criminal Investigation, Cincinnati Field Office; and the Social Security Administration Office of Inspector General announced the sentence imposed today by U.S District Judge Matthew W. McFarland. Assistant United States Attorney Ebunoluwa A. Taiwo is representing the United States in this case.
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Local Man, 22, Sentenced to 14 Years for Armed Robberies in Pittsburgh and Its Eastern SuburbsRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 14 years of incarceration on his conviction of several counts of robbery, brandishing a firearm during a crime of violence, and conspiracy, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge William S. Stickman, IV imposed the sentence on True Kinnon, age 22, of Pittsburgh, Pennsylvania.
According to information presented to the court, True Kinnon and his coconspirators committed several armed robberies from November 2018 through February 2019. These robberies targeted local businesses in the City of Pittsburgh and several of the eastern suburbs of the city, including Penn Hills, Monroeville, Turtle Creek, and Oakmont. During these robberies, Kinnon and his coconspirators brandished a variety of weapons, including an assault-style rifle and a revolver, and robbed both store employees and customers who were in the store at the time of the robberies. Kinnon had pleaded guilty for his involvement in seven separate robberies.
Prior to imposing sentence, Judge Stickman noted the severity of the defendant’s conduct, and found that the sentence of 14 years of incarceration, which was agreed upon by the parties, was a significant one that reflected the seriousness of the defendant’s crimes.
Assistant United States Attorney Douglas C. Maloney prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Federal Bureau of Investigation, the Monroeville Police Department, the Pittsburgh Bureau of Police, the Penn Hills Police Department, the Wilkins Township Police Department, and the Oakmont Police Department for the investigation leading to the successful prosecution of Kinnon.
Las Vegas Man Sentenced for Attempting to Sexually Exploit A Child and Receiving Child PornographyRead the Press Release
LAS VEGAS – A Las Vegas man was sentenced Monday to 27 years in prison for attempting to sexually exploit a child and for receiving child pornography using a file sharing network.
“Child pornography and sexual exploitation of children are appalling crimes that have been on the rise as predators use technology to gain easier access to communication with children,” said Acting U.S. Attorney Christopher Chiou for the District of Nevada. “Working with our law enforcement partners, our office will continue to prioritize protecting children from sexual abuse.”
“The FBI is committed to stopping and holding accountable anyone who engages in the sexual exploitation of children,” said Aaron C. Rouse, FBI Las Vegas Special Agent in Charge. “Every time child pornography is viewed on the internet it re-victimizes a child. Together with our partners, we are dedicated to investigating and bringing federal charges against those who commit these heinous crimes.”
According to court documents, in June 2016, Richard Fred Dittmer III (25) utilized the BitTorrent file sharing network to download child pornography. During the execution of a search warrant at Dittmer’s residence, he admitted to receiving images and videos of child pornography, as well as to uploading child pornography to YouTube. A forensic examination of electronic devices belonging to Dittmer revealed over 365 images and 18 videos of child pornography, including sadistic and masochistic images. He was charged in federal court and released on pretrial supervision.
While on pretrial supervision, between December 2018 and February 2019, Dittmer III coerced a 13-year-old girl on Snapchat into creating sexually explicit images and videos of herself. He then threatened to send those images to students at the victim’s school unless she sent him additional images.
Dittmer III pleaded guilty in January 2021 to one count of receipt of child pornography and one count of attempted sexual exploitation of a child. In addition to the prison term, U.S. District Judge Jennifer A. Dorsey sentenced him to a lifetime term of supervised release and ordered him to pay restitution to the victims.
This case was investigated by the Internet Crimes Against Children Task Force, the Las Vegas Metropolitan Police Department, and the FBI. Assistant U.S. Attorneys Bianca Pucci and Christopher Burton prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, 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 and for information about internet safety education, visit www.usdoj.gov/psc.
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Kent County Tax Preparer Sentenced to PrisonRead the Press Release
GRAND RAPIDS, MICHIGAN – Gonzalo Ramon Rodriguez, 59, of Grand Rapids, Michigan, was sentenced to 18 months in federal prison, U.S. Attorney Andrew Birge announced today. Rodriguez pleaded guilty to aiding and assisting in the preparation of false and fraudulent tax returns. In his plea agreement, Rodriguez admitted to improperly using the electronic filing credentials of two other providers, selecting the wrong filing status for his taxpayer clients, reporting business expenses and losses that his taxpayer clients did not incur, and claiming the Earned Income Tax Credit for taxpayer clients who did not otherwise qualify. Rodriguez stole approximately $111,504 from the United States Treasury by filing 41 false tax returns for tax years 2014 through 2018.
United States District Judge Paul L. Maloney directed that Rodriguez pay $111,504 in restitution to the United States and ordered one year of supervised release following the 18-month prison term. In imposing the sentence, Judge Maloney remarked on the need for specific deterrence focused on Rodriguez and general deterrence in preventing similar fraud schemes in the U.S. tax system.
“My office will continue to work closely with IRS criminal investigators to detect and prosecute those who steal from taxpayers by filing fraudulent federal tax returns,” said U.S. Attorney Birge. “I strongly encourage taxpayers to obtain a copy of all tax returns prepared on their behalf to ensure that all of the return information, including income and any dependents that are listed, is correct.”
“This sentencing is a reminder that IRS-Criminal Investigation continues to be relentless in our mission to protect the American tax system and bring criminals who try to abuse our system for personal gain to justice,” said Special Agent in Charge Sarah Kull, Internal Revenue Service – Criminal Investigation, Detroit Field Office.
The case was investigated by IRS-Criminal Investigation. Assistant U.S. Attorney Clay M. West handled the prosecution.
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Justice Department Seeks to Shut Down Chicago Tax Return PreparerRead the Press Release
The United States filed a complaint in the U.S. District Court for the Northern District of Illinois today seeking to bar a Chicago area tax return preparer from preparing federal income tax returns for others.
The complaint alleges that Melissa Gasca, individually and doing business as Su Familia Income Tax, and a related tax preparation business, FinancialPlus Services Inc., prepared nearly 5,000 federal income tax returns during 2017-2020, including over 900 returns in 2020. According to the complaint, in a substantial number of these tax returns, the defendants significantly overstated the customers’ tax refunds by falsely reporting inflated Form W-2 federal income tax withholdings.
By repeatedly understating her customers’ tax liabilities, the complaint alleges, Gasca and her tax preparation businesses caused the United States to lose over $5 million in tax revenue from 2017 to 2020.
Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Department of Justice Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
International Wholesale Currency Dealer Sentenced for Criminal Operations; Forfeits $1.1 MillionRead the Press Release
Assistant U. S. Attorneys Michael A. Deshong, Daniel C. Silva, and Carl Brooker (619) 546-9290
NEWS RELEASE SUMMARY—November 16, 2021
SAN DIEGO — GPOMCT Grupo Empresarial S.A. de C.V., an international, Mexico-based wholesale currency dealer and currency exchange business, was sentenced in federal court yesterday to three years’ probation and ordered to forfeit $1.1 million for operating an unlicensed money transmitting business.
According to the government’s sentencing memorandum, GPOMCT used the U.S. financial system to process large amounts of currency that were at high risk for including criminal proceeds without registering as a financial institution in the United States or complying with U.S. anti-money laundering regulations or reporting requirements in order to gain a competitive advantage over its competitors.
Mexico’s anti-money laundering restrictions limit the amount of U.S. dollar deposits in Mexico, creating a need for individuals and businesses in Mexico with large amounts of U.S. currency—whether acquired legitimately or otherwise—to convert their U.S. dollars into Mexican pesos. This is a need that GPOMCT attempted to meet, the sentencing memo said.
Special Agents from Homeland Security Investigations (HSI) led the investigation into hundreds of transactions that involved GPOMCT importing large volumes of U.S. dollars into the United States between 2019 and 2021. Agents from Federal Deposit Insurance Corporation Office of Inspector General, U.S. Customs and Border Protection, and San Diego County Sheriff's Department assisted HSI in the investigation.
According to the sentencing memorandum, GPOMCT gained an unfair competitive advantage by accepting large amounts of U.S. dollars from its customers in Mexico in exchange for pesos, then importing its U.S. dollars into the United States. Through its subsidiaries, GPOMCT controls more than 40 locations in Mexico that handle an average of over $1 million in U.S. currency daily. Between September 2019 and September 2020, GPOMCT imported approximately 195 shipments of currency—each worth between $90,000 and $100,000 in U.S. dollars. GPOMCT further employed the services of an armored car company to collect currency for delivery to a third-party intermediary in Miami, Florida—all part of its money transmitting services to Mexican and U.S. customers seeking to convert U.S. dollars to pesos.
These services as a wholesale currency dealer meant GPOMCT operated as an unlicensed money transmitting business in the United States. By failing to register as a money transmitting business, GPOMCT did not file currency transaction reports with the Department of the Treasury, as required by the Bank Secrecy Act, nor did it subject itself to inspection by the Department of Treasury for compliance with these financial laws and regulations.
Acting U.S. Attorney Randy S. Grossman said, “Violating financial laws and regulations not only impairs the fight against international money laundering, tax evasion, and other crimes—these violations can be crimes themselves. This office expects the highest level of compliance from financial institutions in the Southern District of California.” Grossman praised the prosecution team at the U.S. Attorney’s Office and the agents from Homeland Security Investigations, Federal Deposit Insurance Corporation, U.S. Customs and Border Protection and San Diego County Sheriff’s Department for their excellent work on this case.
“When money services businesses fail to comply with federal statutes and regulations, they create an unacceptable risk for illicit funds to be laundered through our financial infrastructure,” said Chad Plantz, Acting Special Agent in Charge for Homeland Security Investigations in San Diego. “HSI is committed to investigating these violations to uphold the integrity of the U.S. financial system and protect our communities, as well as sending a resounding message to all currency exchange businesses, money services businesses, and financial institutions to comply and embrace robust anti-money laundering practices and regulations.”
“Financial crimes, such as those in this case, threaten the integrity of the U.S. financial system and allow money laundering, tax evasion, and other illicit transactions to spread across international borders, undermining the public’s faith in financial institutions. We appreciate the cooperation of our law enforcement partners in investigating this and other financial crimes,” said Special Agent in Charge Jeffrey D. Pittano of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG).
DEFENDANT Case Number 21cr2120-JLS
GPOMCT Grupo Empresarial S.A. de C.V.
SUMMARY OF CHARGES
Operating an Unlicensed Money Transmitting Business—Title 18, U.S.C., Section 1960
Criminal Forfeiture—Title 18, U.S.C., Section 982
Maximum penalty: $500,000 fine or twice the gross gain or loss from the offense, whichever is greater; criminal forfeiture
AGENCY
Homeland Security Investigations
Federal Deposit Insurance Corporation Office of Inspector General (OIG)
U.S. Customs and Border Protection
San Diego County Sheriff’s Department
Hyattsville Man Sentenced to Seven and a Half Years in Federal Prison for a Scheme to Defraud Banks Using Stolen and Altered ChecksRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chaung sentenced Rodney Jerrod Jefferson, age 29, of Hyattsville, Maryland to seven and a half years in federal prison, followed by three years of supervised release, for conspiracy to commit bank fraud. Judge Chaung has also ordered Jefferson to pay a total of $35,100.17 in restitution.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron and Postal Inspector in Charge Daniel A. Adame of the U.S. Postal Inspection Service - Washington Division.
According to his plea agreement, from May 2018 to August 2019, Jefferson conspired with Michael Deandre Packer, age 38, of Washington, D.C. and others to rob postal workers, steal at least 1,000 checks from postal collection boxes worth more than $1.5 million, and deposit the stolen checks into fraudulent bank accounts.
For example, on October 14, 2018, Packer robbed a postal worker in Upper Marlboro, Maryland. Prior to the robbery, the postal carrier saw Packer in a black Infiniti vehicle. Investigators later determined Packer had purchased the Infiniti G37 the day before the robbery using an altered or fictitious check and a fraudulent driver’s license bearing Packer’s photograph.
On December 14, 2018, officers stopped Packer while driving a Audi A7. Investigators later determined that Packer purchased the Audi using a counterfeit $25,000 check. Inside the vehicle, officers located a key used to open postal collection boxes, 119 stolen checks worth $102,260, stolen mail, 130 grams of marijuana, and Packer’s cell phone. A review of the cell phone communications revealed conversations between Packer and Jefferson about negotiating stolen checks, the purchase of firearms, and photographs of firearms. During a subsequent search warrant executed at Packer’s residence, investigators found another key used to open postal collections boxes, more than 1,000 stolen checks worth in excess of $1.5 million, as well as fraudulent driver’s licenses and credit cards.
On February 27, 2019, investigators executed a search warrant at Jefferson’s residence and found several keys used to open postal collection boxes, stolen checks from different states, deposit receipts and credit cards in other individuals’ names, and a magnetic stripe reader used for encoding credit cards. The issuers of the stolen checks reported to investigators that they deposited the checks into the U.S. Postal Service collection boxes, but the checks were never delivered.
As stated in his plea agreement, four months later on June 18, 2019, investigators arrested Jefferson near Seabrook, Maryland where Jefferson was driving a stolen Cadillac CTS. During a search of Jefferson’s vehicle, investigators found 160 stolen personal checks in various stages of alteration, multiple credit cards in different names, a credit card embosser, and a loaded handgun.
Less than two months later, on August 5, 2019, Jefferson used a rented truck to steal mail from postal collection boxes in Alexandria, Virginia. Three days later, law enforcement stopped Jefferson while he was driving the same rental truck and inside the truck located debit and electronic payment cards in other individuals’ names, additional stolen and altered checks, an ATM deposit receipt matching the information one of the fraudulently obtained debit cards, and a fraudulent driver’s license displaying Jefferson’s photograph.
Over the course of the conspiracy, Packer and Jefferson were recorded on bank surveillance video cashing and negotiating several fraudulent checks and withdrawing the fraud proceeds. Jefferson also admitted to using fraud proceeds to purchase U.S. Postal money orders. In total, Jefferson obtained at least $24,244 proceeds as a result of the conspiracy. Jefferson, Packer and their co-conspirators caused victims an actual loss of at least $35,100.17.
Co-defendant, Michael Packer previously pleaded guilty and was sentenced to more than four years in federal prison to be followed by three years of supervised release and ordered to pay restitution in the amount of $35,100.17.
United States Attorney Erek L. Barron praised the USPIS for their work in the investigation. U.S. Attorney Barron thanked Assistant U.S. Attorney Jennifer L. Wine and Special Assistant U.S. Attorney Jessica C. Harvey, who prosecuted the case.
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Husband and Wife Sentenced for Sexually Exploiting Five ChildrenRead the Press Release
INDIANAPOLIS – A Monroe County, Indiana couple have been sentenced for their roles in a scheme to sexually abuse five children and keep that scheme hidden from authorities. Matthew Cole, 31, was sentenced to over 41 years in prison and his wife, Dolores Cole, 41, was sentenced to 15 years imprisonment. All of the children were rescued as a result of the investigation.
Beginning in 2014, the Coles were living in Arizona and had custody, care, or supervisory control of six children. A child protection agency received a report that one or both Coles were sexually abusing the children. Over the next few years, multiple allegations of abuse were made. To avoid having the children permanently removed from their care and to prevent police or child protection agencies from discovering the sexual abuse, the Coles moved the children to residences in different states. The Coles moved through Arizona, Iowa, Texas, Oklahoma, and ultimately to Indiana, where their scheme ended when search warrants were executed at their residence in August of 2018.
The investigation by authorities in Indiana uncovered evidence that five of the six children had been sexually abused. And investigators found evidence that Matthew Cole produced and distributed sexually explicit images of one of the children. Investigators also learned that both Coles threatened the children, telling them that they should not tell law enforcement officers what was happening to them, which led to prolonged abuse of the children.
Mathew Cole pleaded guilty to conspiracy to transport minors across state lines with the intent to engage in a criminal sexual activity, sexual exploitation of a child, and witness tampering. Dolores Cole pled guilty to being an accessory after the fact to sexual exploitation of a child, witness tampering, and obstruction of justice.
“The pain and damage inflicted on these children at the hands of adults they trusted is unimaginable,” said U.S. Attorney Zachary A. Myers. “No sentence of imprisonment will undo what these victims have suffered, but the serious consequences imposed for these heinous offenses demonstrate that those who sexually exploit vulnerable children will be held accountable for their reprehensible actions.”
“To prey on children in your care and harm them in such a heinous way is reprehensible and beyond comprehension,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “Their sentences should serve as a strong reminder that the FBI and our law enforcement partners are committed to identifying and holding accountable those who victimize innocent children to ensure they can never again inflict such abuse.”
This case was the result of an investigation by the Federal Bureau of Investigation, the Monroe County Sheriff’s Office, and the Indiana Department of Children’s Services.
According to Assistant United States Attorneys Bradley P. Shepard and Kristina M. Korobov, who prosecuted the case, Matthew Cole must pay restitution of $50,000 to the victims and will be supervised for the remainder of his life following release from prison. Dolores Cole must pay restitution of $18,000 to the victims and will be supervised for 3 years following her prison term.
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 and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
Harrison County man admits to child pornography chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Randy McKinley, of Bridgeport, West Virginia, has admitted to a child pornography charge, United States Attorney William J. Ihlenfeld, II announced.
McKinley, 57, pleaded guilty today to one count of “Possession of Child Pornography.” McKinley admitted to having child pornography with children under the age of 12 in October 2020 in Harrison County.
McKinley 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 Danae DeMasi-Lemon is prosecuting the case on behalf of the government. The Bridgeport Police Department, the West Virginia State Police, and the Harrison County Sheriff’s Office investigated
U.S. Magistrate Judge Michael John Aloi presided.
Hamtramck Man Sentenced to 12 years’ Imprisonment on Methamphetamine Distribution ChargesRead the Press Release
DETROIT – Don Valentino Zdybel, 61, formerly of Hamtramck, Michigan was sentenced yesterday to 12 years’ imprisonment on charges of possession methamphetamine with the intent to distribute it in the Detroit area, announced Acting United States Attorney Saima Mohsin.
Moshin was joined in the announcement by Special Agent in Charge Keith Martin, Drug Enforcement Administration, Detroit Division, Special Agent in Charge Rodney Hopkins, United States Postal Inspection Service and Peter Lucido, the Macomb County Prosecuting Attorney.
According to court records, from April of 2019 until May 27, 2020, when he was arrested, Zdybel was receiving methamphetamine sent from California to the Detroit area via the United States Mail and also personally transporting the drugs from California to Michigan himself. Arrested in Macomb County in February 2020 on methamphetamine and heroin possession charges, Zdybel was held without bond. He later convinced a Macomb County Circuit Judge in May of 2020 to release him on bond due to his fear of catching Covid-19. Zdybel then travelled from Michigan to California to pick up another load of methamphetamine. The Macomb County prosecution was later merged with the federal charges and Zdybel was prosecuted for the full extent of his criminal conduct in United States District Court.
“Zdybel is a man who was content to sell poison, in the form of methamphetamine, to generate an income for himself,” said Acting US Attorney Mohsin. “Zdybel has an extensive prior criminal record but his prior convictions and jail sentences have failed to deter him from committing crimes. He was given a chance to live a law abiding life when a judge released him from jail where he was being held without bond on a pending drug trafficking charge because Zdybel expressed fear of contracting COVID-19 in jail. He was released and Zdybel didn’t miss a beat. He went right back to drug trafficking while on bond. Those who cannot be deterred from committing crimes belong in prison. Zdybel’s sentence of 12 years will protect the public from this recidivist criminal.”
Lucido praised the work of the Warren and Sterling Heights Police Departments whose early efforts in the case served to build substantial and important evidence of the breadth of Zdybel’s conduct. “The excellent work of these officers and the ability to partner with DEA and the United States Attorney’s Office resulted in removing a dangerous drug dealer who was effectively destroying lives in Macomb County” said Lucido.
This case was investigated by special agents with the DEA, Officers from the Warren and Sterling Heights Police Departments and was prosecuted by Assistant United States Attorney John O’Brien.
Guilford Man Charged with Child Exploitation OffenseRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that a federal grand jury in Hartford has returned an indictment charging CHRISTOPHER MICHAELSON, 37, of Guilford, with receipt of child pornography.
The indictment was returned on November 3. Michaelson appeared today via videoconference before U.S. Magistrate Judge S. Dave Vatti and pleaded not guilty to the charge.
As alleged in court documents and statements made in court, on January 9, 2019, the Guilford Police Department assisted Burrillville (R.I.) Police with the arrest of Michaelson at his residence in Guilford on Rhode Island state charges for child molestation, solicitation and enticement. During the arrest, officers seized Michaelson’s cellphone. A court-authorized search of the seized phone revealed hundreds of images and videos depicting the sexual abuse of children, primarily boys between the ages of five and 15.
Michaelson has been detained since his arrest.
The charge of receipt of child pornography carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years.
Acting U.S. Attorney Boyle stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by Homeland Security Investigations (HSI), the Rhode Island Attorney General’s Office, the Guilford Police Department and the Burrillville Police Department. The case is being prosecuted by Assistant U.S. Attorneys Stephanie T. Levick and Maria del Pilar Gonzalez.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Grand Jury indicts St. Louis man and 19 others for their roles in a nation-wide drug ringRead the Press Release
ST. LOUIS – A federal grand jury indicted Steven Bell for charges that include conspiracy to distribute heroin, fentanyl, cocaine and methamphetamine in a large-scale nation-wide drug ring. The group transported and distributed illegal narcotics in numerous states to include California, Michigan, Missouri, Kentucky and Texas.
The indictment alleges that Bell knowingly and intentionally possessed 500 grams or more of methamphetamine and knowingly possessed a firearm in furtherance of a drug trafficking crime. The indictment further alleges that Bell knowingly possessed a firearm, having previously been convicted of crimes that prohibited possession of said firearm.
Beginning at a time unknown but including February 2021, in the Eastern District of Missouri, Bell and others were involved in the distribution of controlled substances. The indictment alleges Darius M. McCullum was the primary source of supply for the organization in California. The drug trafficking organization used various means to transport illegal narcotics and or bulk cash, to include the mail and the use of several “mules” or couriers. Agents identified several “stash” houses in numerous cities, to include Detroit, Michigan, Lexington, Kentucky and St. Louis, Missouri.
This effort is part of an Organized Crime Drug Enforcement Task Force (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.
Charges set forth in the indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the Drug Enforcement Administration, United States Marshals Service and the United States Postal Inspection Service.
Georgia Man Sentenced for Distributing Child PornographyRead the Press Release
PROVIDENCE – An Atlanta, GA, man who admitted to exchanging child pornography with individuals across the country, including sending images of child pornography to an undercover member of the Rhode Island States Police Internet Crimes Against Children (ICAC) Task Force, was sentenced today to nine years in federal prison, announced Acting United States Attorney Richard B. Myrus.
According to court documents and information presented to the Court, in January 2019, during a series of online chatroom conversations with a Rhode Island State Police detective who was working in an undercover capacity, Joseph Grossman, 43, sent approximately 40 images of child pornography. Investigators determined that the IP address used to send the images was associated with Grossman.
On February 27, 2019, the Rhode Island State Police detective and a Homeland Security Investigations (HSI) Providence agent, assisted by HSI agents in Atlanta, executed a court-authorized search of Grossman’s Atlanta residence, seized several electronic devices, and arrested Grossman. Investigators identified numerous people across the country with whom Grossman communicated and exchanged child pornography.
Grossman pleaded guilty in July 2019 to distribution of child pornography. He was sentenced today by U.S. District Court Chief Judge John J. McConnell, Jr., to 108 months of incarceration to be followed by 10 years of federal supervised release.
The case was prosecuted by Assistant U.S. Attorney Sandra R. Hebert.
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Gaston Man Sentenced to More Than Twelve Years in Federal Prison on Drug ChargeRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Johnny Ray Kinsey, Jr., 46, of Gaston, was sentenced to more than twelve years in federal prison after pleading guilty to possession with intent to distribute methamphetamine.
Evidence presented to the court showed that on June 15, 2018, a Trooper with South Carolina Highway Patrol responded to a vehicle hit and run call. After responding to the initial hit and run call, the Trooper then met with a Greenwood County Sheriff’s Office Deputy. The Deputy had stopped a vehicle, driven by Kinsey, that matched the description of the vehicle that failed to stop during the hit and run. Before leaving the hit and run scene, the Trooper picked up two pieces of plastic from a side mirror that he believed were from the suspect’s vehicle. After arriving on scene, the Trooper observed fresh damage to the side mirror of Kinsey’s vehicle. When the Trooper placed the pieces of plastic to the damage, it fit perfectly. Kinsey was arrested for driving under the influence and hit and run. An inventory search located over 400 grams of methamphetamine in a backpack under the driver’s seat of the vehicle.
Kinsey’s prior record includes a 1996 criminal domestic violence, a 2003 criminal domestic violence, a 2008 criminal domestic violence second offense, a 2011 damage to property, a 2013 shoplifting, a 2014 manufacturing methamphetamine, and several probation violations.
Senior United States District Judge Henry M. Herlong sentenced Kinsey to 151 months in federal prison, to be followed by a five-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Drug Enforcement Administration (DEA), South Carolina Highway Patrol, and the Greenwood County Sheriff’s Office.
The case was prosecuted as part of the 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.
Special Assistant United States Attorney Casey Rankin Smith prosecuted the case.
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Gary Man Sentenced to 36 Months in PrisonRead the Press Release
HAMMOND- Austin Williams, 28, of Gary, Indiana, was sentenced by United States District Court Judge Philip P. Simon after pleading guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Williams was sentenced to 36 months in prison followed by 2 years of supervised release.
According to documents in the case, on November 18, 2020, in Hobart, Indiana, law enforcement executed a search warrant on a residence and recovered a firearm possessed by Williams at that residence. Williams has prior felony convictions for intimidation, dealing in a controlled substance, and attempted theft. His criminal history reveals he also has six prior misdemeanor convictions, to include domestic battery, possession of a controlled substance, and visiting a common nuisance.
This case was the result of the investigative efforts of the Federal Bureau of Investigation’s Gang Response Investigative Team and the Hobart Police Department. This case was prosecuted by Assistant U.S. Attorney Caitlin M. Padula.
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.
Fresno Man Pleads Guilty to Receipt and Distribution of Child PornographyRead the Press Release
FRESNO, Calif. — Tanner Joel Hernandez-Fields, 21, of Fresno, pleaded guilty Monday to receipt and distribution of child pornography, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, between March 19, 2019, and April 12, 2019, Hernandez-Fields did knowingly receive or distribute one or more matters containing any visual depiction of a minor engaged in sexually explicit conduct using an Apple iPhone. Hernandez-Fields received between 150 and 300 images, including video files. These images included depictions of pre‑pubescent minors including material that meets the definition of sadistic or masochistic conduct.
This case is the product of an investigation by Homeland Security Investigations and the Fresno County Sheriff’s Office. Assistant U.S. Attorney Laura D. Withers is prosecuting the case.
Hernandez-Fields is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Feb.22, 2022. Hernandez-Fields faces a minimum statutory penalty of five years in prison and a maximum of 20 years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Fort Worth Jury Convicts Whitt Drug TraffickerRead the Press Release
A longtime drug dealer has been convicted of drug and gun crimes, announced Acting U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Following a two-day trial, a federal jury convicted Jerome Thomas Watkins, 44, of conspiracy to possess with intent to distribute cocaine, fentanyl, methamphetamine, and heroin; possession with intent to distribute fentanyl; and possession of a firearm by a felon.
According to evidence presented at trial, officers executed a search warrant at Mr. Watkins’ residence on April 26. Inside, they found more than 4,000 pills laced with fentanyl, methamphetamine, and heroin, along with seven firearms and approximately $17,000 in cash.
They also seized roughly 20 phones, 11 of which were linked to the defendant and contained evidence of his extensive drug trafficking activities.
Mr. Watkins had previously been convicted of two drug crimes: in 1996, he pleaded guilty to possession of intent to distribute crack cocaine and was sentenced to 72 months in federal prison, and in 2002, he pleaded guilty of possession with intent to distribute cocaine and was sentenced to 135 months in federal prison.
While the jury convicted Mr. Watkins of three crimes on Tuesday, they acquitted him of a fourth crime, possession of a firearm in furtherance of a drug trafficking crime.
Mr. Watkins now faces 25 years to life in federal prison. His sentencing has been set for March 18.
The Drug Enforcement Administration’s Dallas Field Division, the Federal Bureau of Investigation’s Dallas Field Office, Fort Worth Resident Agency, and the Parker County Sheriff’s Office conducted the investigation with the assistance of the and the Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division and the Benbrook Police Department. Assistant U.S. Attorneys Laura Montes and Shawn Smith prosecuted the case. U.S. District Judge Reed C. O’Connor presided over the trial.
Fort Lauderdale Jury Convicts Two Defendants for Stealing Veteran and Social Security Benefits: Three Others Plead GuiltyRead the Press Release
Miami, Florida – After an eight-day trial at the Federal Courthouse in Fort Lauderdale, and following three days of deliberations, a jury found Omar Shaquille Bailey and Ronaldo Garfield Green guilty for their roles in a scheme to defraud the U.S. Department of Veterans Affairs and the Social Security Administration of over $1.8 million. Senior District Court Judge James I. Cohn read the jury’s verdict and ordered the defendants imprisoned while they await sentencing in January.
A third co-defendant, Jamare Mason, pled guilty to his role in the conspiracy on the second day of trial. Two other co-defendants, Kadeem Gordon and Mario Ricketts, had pled guilty prior to trial. Two remaining co-defendants have yet to be apprehended.
The jury heard testimony from several witnesses that members of the conspiracy obtained the personal information (including names, dates of birth and Social Security numbers) of disabled veterans and Social Security beneficiaries. The conspirators used this information to fraudulently open bank accounts and prepaid debit cards in the victims’ names. They also forged documents in the victims’ names which directed the U.S. Department of Veterans Affairs and the Social Security Administration to deposit benefit payments into those fraudulent accounts, instead of the victims’ legitimate bank accounts.
The trial evidence showed that the defendants, together with other co-conspirators, withdrew these funds from ATMs and banks throughout South Florida and Georgia for their own personal use. Much of the funds were ultimately funneled to the architects of the scheme in Jamaica.
According to evidence presented at trial, over the course of five years, from 2012 to 2017, members of the conspiracy attempted to redirect over $1.8 million in benefits from more than a hundred disabled veterans and Social Security beneficiaries. Although several of these attempts were blocked, the defendants’ scheme resulted in the actual loss of nearly $1 million, money that was diverted from disabled veterans and Social Security beneficiaries. In each instance, the federal government reimbursed these victims for the full amounts of their stolen benefits.
“We remain vigilant in our efforts to defend and protect our disabled veterans and our elderly,” said U.S. Attorney for the Southern District of Florida Juan Antonio Gonzalez. “This successful prosecution demonstrates that, despite recent challenges, our Office continues to prosecute anyone who targets vulnerable members of the community.”
“Yesterday, a jury held these defendants accountable for their roles in a large-scale, transnational fraud scheme that preyed upon veterans—many of whom were elderly and at risk—by redirecting VA compensation and pension benefits to other bank accounts or by taking over veterans’ bank accounts,” said Special Agent in Charge David Spilker of the Department of Veterans Affairs Office of the Inspector General’s Southeast Field Office. “The VA OIG, along with our law enforcement partners, is steadfast in our commitment to ensure that veterans are protected from schemes designed to steal the benefits that they earned while defending our country.”
“The jury’s verdict holds Omar Bailey and Ronaldo Green accountable for their greedy and unscrupulous actions that deprived Social Security beneficiaries and disabled veterans of their benefits,” said Rodregas W. Owens, Special Agent in Charge, Social Security Administration Office of the Inspector General, Atlanta Field Division. “I appreciate the investigative efforts of the Transnational Elder Fraud Strike Task Force and our law enforcement partners in dismantling this conspiracy and U.S. Attorney’s Office for prosecuting this case.”
U.S. Attorney for the Southern District of Florida Juan Antonio Gonzalez, Special Agent in Charge David Spilker of the Department of Veterans Affairs Office of the Inspector General’s Southeast Field, and Special Agent in Charge Rodregas W. Owens, Social Security Administration Office of the Inspector General, made the announcement.
U.S. Attorney Juan Antonio Gonzalez commended the investigative efforts of the Transnational Elder Fraud Strike Force, including our partners at the Department of Veterans Affairs’ Office of the Inspector General, United States Postal Inspection Service, Homeland Security Investigations, and the Social Security Administration’s Office of the Inspector General.
The case was prosecuted by Assistant U.S. Attorneys Lois Foster-Steers and Sajjad Matin.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. The mission of the Department’s Elder Justice Initiative is to support and coordinate the Department’s enforcement and programmatic efforts to combat elder abuse, neglect and financial fraud and scams that target our nation’s seniors. To learn more visit https://www.justice.gov/elderjustice. The public is encouraged to report their victimization and suspected fraud schemes. To find the right reporting agency visit https://www.justice.gov/elderjustice/roadmap or call the victim connect hotline at 1-855-484-2846.
Criminal complaints, informations, and indictments contain mere allegations and defendants are innocent unless and until found guilty in a court of law.
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 19-cr-60313.
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Former University of Michigan Professor Pleads Guilty to Charges of Child Exploitation of a MinorRead the Press Release
DETROIT – Former University of Michigan professor pleaded guilty one count of transporting a minor girl across state lines with the intent to engage in sexual conduct, announced Acting United States Attorney Saima Mohsin.
Mohsin was joined in the announcement by Acting Special Agent in Charge James C. Harris, Homeland Security Investigations (HSI).
Pleading guilty was Stephen Shipps, 68, of Ann Arbor, Michigan.
From 1989 to 2019, Shipps was employed by the University of Michigan School of Music, Theatre, and Dance as a violin professor. Shipps was also the director of the Strings Preparatory Program, which offered instruction to young musicians ranging from elementary school through high school-age. Shipps retired from the University of Michigan in February 2019. In addition, Shipps served on the faculties of Indiana University, the North Carolina School of the Arts, the University of Nebraska – Omaha, and the Banff Centre in Canada. He also taught students at summer music programs in the Czech Republic, Germany, and the United Kingdom.
According to court records, from February and March of 2002, as well as in June and July of 2002, Shipps knowingly transported a minor girl, who was under 18 years old, across state lines, and Shipps intended to engage in sexual activity with her.
“Shipps used his position of trust to sexually exploit a child. Well regarded music professors at prestigious universities with competitive music programs like the University of Michigan enjoy tremendous influence within the music community. These professors often have the ability to make or break careers. Stephen Shipps was an influential and highly sought after violin professor who had successfully launched many careers. I commend the brave young woman who stepped forward and exposed Shipps’s abuse,” said Acting U.S. Attorney Mohsin. “This case proves that the passage of time, no matter how long, will not deter us from bringing to justice those who prey on our most vulnerable.”
“Thanks to the remarkable bravery of Shipps’ victims and painstaking investigative work by HSI, this disgraced professor is being held accountable for coercing vulnerable young women into sex acts,” said James C. Harris, acting Special Agent in Charge of Homeland Security Investigations field offices in Michigan and Ohio. “This case underscores HSI’s commitment to give due credibility to all allegations of sexual exploitation of minors and to bring some measure of justice to the victims.”
Shipps faces a statutory maximum penalty of 15 years in federal prison when he is scheduled to be sentenced on February 17, 2021 at 11 am.
This case was investigated by agents of HSI with the assistance of the University of Michigan Police Department. Assistant U.S. Attorney Sara Woodward is prosecuting this case.
Former Realtor Sentenced to 4 Years in Federal Prison for Running Nearly $4 Million Fraud that Scammed Distressed HomeownersRead the Press Release
LOS ANGELES – A former realtor and longtime fugitive was sentenced today to 48 months in federal prison for scheming to defraud distressed homeowners out of nearly $4 million by falsely promising them help with their mortgages, but instead pocketing their money, causing many victims to lose their homes.
Ernesto Diaz, 66, a former realtor and former El Monte resident, was sentenced by United States District Judge Stephen V. Wilson, who also ordered Diaz to pay $3,061,159 in restitution to his victims.
At the conclusion of a three-day trial, a federal jury on September 13 found Diaz guilty of one count of conspiracy, two counts of mail fraud affecting a financial institution, and one count of mail fraud. The jury acquitted him on one mail fraud count.
Diaz, who fled to Mexico after entering into a plea agreement in this case in 2012, pleaded guilty on September 9 to a separate count of failure to appear in court while released on bond. He was a fugitive for seven years until the FBI arrested him in October 2019. A federal grand jury in February 2020 returned a superseding indictment against him, which led to this year’s trial.
According to evidence presented at his trial, from March 2010 to March 2011, Diaz and co-defendant Maria Marcella Gonzalez, 51, of Whittier, ran a fraudulent mortgage-elimination program that operated in Montebello under the names “Crown Point Education Inc.” and “Crown Point Inc.” Diaz and Gonzalez advertised to distressed homeowners that the Crown Point program could eliminate whatever balance existed on their mortgages.
Several homeowners testified at trial that they had fallen behind on their mortgage payments during the financial crisis of 2007-08 because of workplace injuries, medical bills and other personal circumstances. In exchange, the homeowners paid Crown Point thousands of dollars for its services, typically with a partial payment demanded at the program’s inception, followed by monthly fees.
Diaz and Gonzalez offered seminars describing the Crown Point program to prospective customers but refused to specify – citing the need to protect the company’s proprietary information – how they purportedly eliminated existing mortgages.
At the seminars, Diaz and Gonzalez guaranteed that the Crown Point program would be successful and had cleared the mortgage problems of past customers. Diaz and Gonzalez also met personally with customers and prospective customers to make similar promises of success, assuage concerns of customers who had seen no signs of success, and demand additional payments. Diaz and Gonzalez often counseled customers to cease mortgage payments to their lenders altogether and to pay Crown Point instead.
After clients signed up for the program and paid a fee – usually $15,000 per property – Diaz and Gonzalez directed others to mail packets of information to the clients’ lenders that falsely asserted that the client’s mortgages were invalid and that mortgages would be extinguished if the lenders did not respond. Many of the mailed documents were notarized to create the appearance of legitimacy, at times using the notary stamp of Diaz’s own sister without her knowledge or consent.
In fact, Crown Point had no success in eliminating customer mortgage debt and many customers – including Diaz’s brother – lost their homes.
One integral part of the scheme involved the filing of unauthorized bankruptcy petitions to delay the foreclosure process, leaving victims with the impression that the Crown Point program was working and inducing them to continue making payments, but damaging clients’ credit ratings in the process.
“Many, though not all, of [Diaz’s] victims could have qualified for loan modifications or legitimate foreclosure forbearance programs to save their homes but, in reliance on [Diaz’s] lies, were never able to avail themselves of these options,” prosecutors wrote in a sentencing memorandum.
Gonzalez pleaded guilty in July 2015 to a two-count superseding information charging her with making a false statement in a bankruptcy declaration. Judge Wilson sentenced her to 70 months in federal prison.
The FBI investigated this matter.
Assistant United States Attorneys Alexander B. Schwab of the Major Frauds Section and Julia Hu of the General Crimes Section prosecuted this case.
Former Piatt County Resident Sentenced to Five Years in Prison for Child Pornography OffensesRead the Press Release
URBANA, Ill. –Neal A. Evans, 51, previously of Piatt County and now of rural Ogden, Illinois, was sentenced on November 16, 2021, to 60 months’ imprisonment for receipt and possession of child pornography.
At Evans’s sentencing hearing, Senior U.S. District Court Judge Michael M. Mihm noted the significant and long-lasting impact to the child victims depicted in the images Evans possessed.
In July 2021, Evans had entered a plea of guilty to both counts of the indictment: attempted receipt of child pornography and possession of child pornography, with both offenses alleged to have occurred in January 2018. Evans was released on bond following arraignment on the indictment but was remanded to the custody of the U.S. Marshals after his guilty plea.
The statutory penalty for receipt of child pornography is five to 20 years in prison and a fine of up to $250,000; possession of child pornography carries a penalty of up to 20 years in prison, and a fine of up to $250,000.
Following Evans’s release from the Bureau of Prisons, he will be on federal supervised release for eight years and will be required to register as a sex offender.
The charges are the result of an investigation by the Macon County, Illinois, Sheriff’s office, with the assistance of the Decatur Police Department. Evans was previously employed in Macon County. Assistant U. S. Attorney Elly M. Peirson represented the government in the prosecution
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former KC Man, Linked to Homicide and Pawn Shop Burglary, Sentenced to 16 Years for Drug Trafficking, 52 Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A former Kansas City-area man, who claimed self-defense after fatally shooting another man during a drug deal, was sentenced in federal court today for drug trafficking and for illegally possessing 52 firearms he stole from a local pawn shop.
Kameron M. Bynum, 26, of Wilson, North Carolina, was sentenced by U.S. District Judge Brian C. Wimes to 16 years and three months in federal prison without parole.
On Dec. 3, 2019, Bynum pleaded guilty to conspiracy to distribute Xanax and marijuana, possessing a firearm in furtherance of a drug-trafficking crime, stealing firearms from a licensed firearm dealer, and being a felon in possession of firearms.
Smart Pawn, 6301 Troost Ave., Kansas City, reported a burglary on May 13, 2017. Bynum broke in through the roof of the business and stole 52 handguns valued at $19,725. Investigators used video surveillance and found clothing in an alley that was used during the burglary. A bloodstain was found on a glove used in the burglary and DNA analysis linked the bloodstain to Bynum.
Investigators also determined the vehicle used during the burglary was the same vehicle Bynum was in when he was arrested on Aug. 2, 2016. During that arrest, Bynum was in possession of 151 Xanax pills. The vehicle was also linked to the crime scene of a homicide that occurred on Aug. 6, 2016, in the 2900 block of East 35th Street. A phone that belonged to Bynum was found at the scene.
After his arrest, Bynum admitted to being involved in the homicide. Bynum told investigators he was attempting to buy Xanax pills from the victim, who drew a large firearm and attempted to rob him. Bynum was armed with a firearm and stated that he shot the victim one time in self-defense. A witness who was with Bynum on that date, interviewed separately, gave a statement consistent with Bynum’s account.
On May 26, 2017, officers with the Wilson, North Carolina, Police Department arrested Bynum for an outstanding state warrant. At the time of his arrest, Bynum was in possession of approximately 13 grams of marijuana, an electronic digital scale, clear plastic baggies, $921, and a cell phone. Investigators obtained a search warrant for the cell phone and recovered several messages and photos related to this investigation.
Bynum was charged in federal court on June 30, 2017, and a federal warrant was issued for his arrest. Officers searched his North Carolina apartment and found 407 Xanax tablets, a loaded Glock 9mm handgun with an extended magazine that had been stolen from Smart Pawn, glass jars and individually wrapped bags of marijuana, and $550.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Bynum has a prior felony conviction for robbery.
This case was prosecuted by Assistant U.S. Attorney Emily A. Morgan. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kansas City, Mo., Police Department, and the Wilson, N.C., Police Department.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Former Government Employee Sentenced to 17-Month Prison Term for Concealing Information During Application ProcessRead the Press Release
WASHINGTON – Chance Barrow, 32, of Lusby, Md., was sentenced today to 17 months in prison for concealing material information when he successfully applied to become a federal law enforcement officer, U.S. Attorney Matthew M. Graves announced.
Barrow was found guilty by a jury in June 2021 of two counts of wire fraud and one count of engaging in a scheme to conceal material facts. The verdict followed a trial in the U.S. District Court for the District of Columbia. In addition to the prison term, the Honorable Colleen Kollar-Kotelly ordered Barrow to pay $77,000 in restitution. Following his prison term, he will be placed on three years of supervised release.
According to the government’s evidence at trial, beginning in May 2018, Barrow perpetrated schemes to conceal and to defraud when he initiated and progressed through the application process for a law enforcement position with the U.S. Treasury Department’s Inspector General for Tax Administration. (TIGTA). In particular, at every point at which he was required to disclose the circumstances of his departure from his previous law enforcement position with the U.S. Army Criminal Investigative Command, he failed to state that he resigned before he was fired. He also hid the fact that, at the time of the application, he was under criminal investigation; no charges ultimately were filed in that investigation.
As a result of Barrow’s actions, according to the evidence at trial, he was hired by TIGTA and drew a federal salary. Several months after he started work, in July 2019, investigating other people for crimes of fraud, his misrepresentations came to light.
The case was investigated by the Treasury Inspector General for Tax Administration (TIGTA). The case was prosecuted by Assistant U.S. Attorneys Elizabeth A. Aloi and Amanda R. Vaughn, and assistance was provided by Paralegal Specialist Quiana Dunn-Gordon.
Former Freight Company Executive Admits Embezzlement SchemeRead the Press Release
NEWARK, N.J. – A former program manager of an international freight forwarding company today admitted his role in a scheme to embezzle over $550,000 from the company, Acting U.S. Attorney Rachael A. Honig announced today.
Morten Nielsen, 37, a Danish national residing in New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of wire fraud.
According to documents filed in this case and statements made in court:
As program manager for the freight forwarding company, Nielsen was responsible for the company’s contract relating to the Egyptian Foreign Military Sales program (EFMP), a program between the government of Egypt and the U.S. Department of Defense (DoD) that facilitated the sale and repair of military equipment from the DoD to Egypt. Nielsen was responsible for ensuring all logistics for the transportation of certain material between the United States and Egypt and for submitting all paperwork and billing invoices on behalf of the company to the Egyptian government. Once approved, those invoices were forwarded to the DoD for payment to the company.
From July 2017 through July 2019, Nielsen submitted fraudulent invoices from a sham company that he controlled to the freight forwarding company for work that the sham company never performed. Nielsen then sent the fraudulent invoices on behalf of his employer to the Egyptian government. The fraudulent invoices were approved by Egypt and, in turn, the DoD reimbursed the freight forwarding company. Nielsen caused his employer to pay the sham company he created approximately $559,000 over the course of two years, and then transferred those funds into his personal account.
The charge of wire fraud carries a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits or loss, whichever is greatest. Sentencing is scheduled for March 23, 2022.
Acting U.S. Attorney Rachael Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr.; special agents of U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty; and special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Fatime Meka Cano of the U.S. Attorney’s Office Government Fraud Unit in Newark.
Former Employees at State Administrator of Medicaid Transportation and Business Owner Charged with Submitting Fraudulent ClaimsRead the Press Release
Damian Williams, United States Attorney for the Southern District of New York, Scott J. Lampert, Special Agent in Charge of the New York Regional Office of the U.S. Department of Health and Human Services, Office of the Inspector General (“HHS-OIG”), and Ricky J. Patel, Acting Special Agent in Charge of the New York Field Office of the Homeland Security Investigations (“HSI”), announced the unsealing of an Indictment charging PATRICK NDUKWE, DAVID TRAVERS, and MICHELLE MARTIN with participating in a fraudulent scheme in which TRAVERS and MARTIN improperly routed trips for Medicaid-funded transportation to NDUKWE’s company, Quality Service Medical Transportation (“Quality”) and facilitated fraudulent Medicaid claims by Quality. The case is assigned to U.S. District Judge Denise L. Cote.
U.S. Attorney Damian Williams said: “Every day, thousands of government employees and private contractors around New York are entrusted with handling, disbursing, and guarding public funds. As alleged, David Travers and Michelle Martin, who were employees at the state manager for Medicaid-funded transportation, abused their roles and the public’s trust when they took payments to steer business to a private company and helped that company submit fraudulent Medicaid claims. This Office and our law enforcement partners will always investigate and prosecute the illegal abuse of public programs for unjust enrichment.”
HHS-OIG Special Agent in Charge Scott J. Lampert said: “The defendants in this case allegedly engaged in a greed-fueled fraud scheme that undermined the Medicaid program and diverted taxpayer funds from their intended purpose of providing health care benefits to low-income individuals and families. Together with our law enforcement partners, HHS-OIG will continue to vigorously pursue those who steal from government health programs for personal gain.”
HSI Acting Special Agent in Charge Ricky J. Patel said: “As alleged, these defendants lined their pockets by abusing a program created to provide assistance to the sick and injured in our communities. Working with our partners, HSI will seek out and bring to justice those that attempt to undermine any federal or state program, explicitly those designed to help millions of our most vulnerable in New York.”
As alleged in the Indictment, which was unsealed today, public filings, and statements in court:[1]
In New York, individuals who are enrolled in the state’s Medicaid program are eligible to have Medicaid pay for their transportation to and from medical appointments if they are not able to safely take public transportation. To obtain Medicaid-funded transportation, the enrollee or their health care professional must schedule transportation by contacting the private company that is contracted to manage Medicaid-funded transportation in the New York City area (the “Transportation Manager”).
NDUKWE, 56, was the owner and operator of Quality. From in or about May 2017 to March 2020, Quality was paid more than $7.3 million for more than 120,000 trips the company purportedly provided for Medicaid-enrolled customers in the New York City area. However, many of these trip claims were fraudulent and never actually performed. In some instances, the Medicaid-enrollee who purportedly used Quality to travel to a medical appointment had, in fact, never heard of or used the company for any transportation services. In other instances, the driver who Quality said performed the trip had never actually worked for the company. In yet other instances, Quality paid a periodic “kickback” to a Medicaid enrollee to use that enrollee’s personal identifying information to submit a trip claim.
TRAVERS and MARTIN were customer service representatives at the Transportation Manager. Both were responsible for, among other things, receiving calls from Medicaid enrollees who needed transportation and then randomly assigning those trips among the dozens of eligible transportation companies in the New York City area. However, both TRAVERS and MARTIN steered a disproportionately high volume of their trips to Quality. In addition, when certain enrollees requested to be moved from Quality to another transportation company, TRAVERS and MARTIN ensured that the customers were eventually reassigned back to Quality. TRAVERS and MARTIN also scheduled trips for Quality that they knew would not be performed and would allow Quality to submit fraudulent claims for payment. For their fraud, both TRAVERS and MARTIN received payments from NDUKWE.
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NDUKWE was arrested this morning in the Bronx and will be presented later today before U.S. Magistrate Judge Ona T. Wang in Manhattan federal court. TRAVERS was arrested this morning in Syracuse, New York, and Martin was arrested this morning in East Syracuse, New York. Both TRAVERS and MARTIN will be presented later today before U.S. Magistrate Judge Therese Wiley Dancks.
NDUKWE, TRAVERS, and MARTIN are each charged with one count of theft of government funds, in violation of 18 U.S.C. § 641; one count of health care fraud, in violation of 18 U.S.C. § 1347; one count of conspiracy to commit health care fraud, in violation of 18 U.S.C. § 1349; and one count of violating the Anti-Kickback statute, in violation of 42 U.S.C. § 1320a-7b. In addition, NDUKWE is charged with one count of aggravated identity theft, in violation 18 U.S.C. § 1028A. In February 2020, as part of the same investigation, the Government charged 13 defendants involved in a different transportation company.
The crimes of theft of government funds, health care fraud, conspiracy to commit health care fraud, and violating the Anti-Kickback Statute each carry a maximum sentence of 10 years in prison. The crime of aggravated identity theft carries a mandatory two years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by a judge.
Mr. Williams praised the outstanding work of DHHS-OIG and HSI. He also thanked the Office of the New York State Medicaid Inspector General, New York Attorney General’s Medicaid Fraud Control Unit, United States Customs and Border Protection, the Syracuse Police Department, the Onondaga County Sheriff’s Office, the Internal Revenue Service, the New York City Police Department, and the U.S. Probation Office for the Northern District of New York for their assistance in the case.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Brandon D. Harper and Kedar S. Bhatia are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment are herein are only allegations, and every fact described herein should be treated as an allegation.
Former Detroit Police Department Officer Pleads Guilty to Taking BribesRead the Press Release
DETROIT - A former Detroit Police Department officer pleaded guilty today in federal court in Detroit to accepting bribes, Acting United States Attorney Saima S. Mohsin announced.
Mohsin was joined in the announcement by Timothy Waters, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
Pleading guilty before U.S. District Court Judge George Caram Steeh was Alonzo Jones, 55, of Detroit, Michigan.
According to the court documents, from in or about July 2019, and continuing through in or about May 2021, Alonzo Jones corruptly accepted approximately $3,200 in bribes with the intent to be influenced and rewarded in connection with his duties overseeing and running the Detroit Police Vehicle Auction.
Jones faces up to 10 years imprisonment and a fine of $250,000. Sentencing has been set for March 15, 2022.
“Investigating and prosecuting bad cops is a top priority for our office because bad cops erode the public’s trust in law enforcement,” said Acting US Attorney Mohsin. “The vast majority of police officers are honest, dedicated, and hard-working individuals. But police officers who line their pockets with bribes, no matter how big or small will be held accountable for their actions. Today’s plea highlights our office’s commitment to prosecuting those small minority of bad cops who put their own greed before their duties as police officers.”
“A law enforcement officer accepting bribes undermines the rule of law and will always be vigorously investigated. Today, Mr. Jones pled guilty to conduct that is not representative of the men and women of the Detroit Police Department who serve with honor day in and day out,” said Special Agent in Charge Timothy Waters of the FBI’s Detroit Field Office. “Thank you to Chief James White whose cooperation during this investigation made it possible to hold Jones accountable for his actions.”
This is the fourth individual charged as part of the government’s investigation known as “Operation Northern Hook.” Northern Hook is an investigation of corruption within the government and the Police Department of the City of Detroit relating to the towing industry and other matters.
The investigation of this case was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Frances Lee Carlson.
Former Cedar Rapids Pharmacist Pleads Guilty to Diverting Controlled SubstancesRead the Press Release
A former Cedar Rapids pharmacist who diverted controlled substances for his own use pled guilty today in federal court in Cedar Rapids. Brandon Lee Iacobo, age 35, from La Crosse, Wisconsin, was convicted of one count of acquiring a controlled substance by means of misrepresentation, fraud, deception, and subterfuge.
In a plea agreement, Iacobo admitted that, from January 2020 through November 2020, he was the pharmacist-in-charge or pharmacy manager at a Cedar Rapids pharmacy and diverted hundreds of controlled substances from the pharmacy to his own personal use. To cover up his thefts, Iacobo falsified controlled substance “cycle counts” in the pharmacy’s inventory and shorted customers’ tablets from their prescriptions when filling them. In December 2016, a California administrative law judge determined Iacobo lacked the “continued ability to perform the duties of a licensed pharmacist, in a manner consistent with public health, safety, and welfare, even on a probationary basis,” and found his pharmacy license should be revoked.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Iacobo remains free on bond pending sentencing. Iacobo faces a possible maximum sentence of four years’ imprisonment, a $250,000 fine, and one year of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Tim Vavricek and was investigated by the Drug Enforcement Administration and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-71.
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Federal Jury Finds Inmate Guilty of Brutal Prison AssaultRead the Press Release
Charleston, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that federal inmate George Hall was convicted following a jury trial in federal court for charges stemming from a violent prison attack. Hall’s trial marks the first federal criminal jury trial in Charleston since the start of the COVID-19 pandemic in the United States in March of 2020.
Evidence presented by the Government during the trial established that Hall attacked another inmate from behind with a homemade prison weapon constructed from a prison belt and a metal combination lock. Hall repeatedly struck the victim in the head and face with this weapon and stood over him beating him after he fell to the ground. The victim was ultimately able to flee, but not before suffering numerous lacerations, a fractured skull, and a subarachnoid hemorrhage. Prison officials found the victim bleeding in his cell after following a trail of blood from the scene of the attack. The victim survived but was hospitalized for multiple nights and suffered temporary hearing loss and permanent scarring from the assault.
Video footage of the attack showed that the victim never struck Hall or fought back, and he testified that he had never even spoken to Hall prior to being assaulted. At the time of the attack, Hall was serving a 25-year prison sentence for the attempted murder of a U.S. Postal carrier in Florida in 1993. The jury took less than an hour to find Hall guilty on all charges, including assault with a dangerous weapon with intent to cause injury and assault resulting in serious injuries.
United States District Judge Richard M. Gergel presided over the trial and will sentence Hall after receiving and reviewing a pre-sentence report prepared by the United States Probation Office. Hall faces up to ten years in federal prison.
Citing the advice of medical professionals, the court implemented special procedures to minimize the risk of COVID-19 transmission. Masked jurors were seated in the gallery to allow for social distancing, while the prosecution and defense attorneys sat facing one another in the center of the courtroom between the jury and the judge.
This case was investigated by the Federal Bureau of Investigation.
Acting United States Attorney M. Rhett DeHart and Assistant United States Attorney Chris Schoen tried the case.
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Federal Judge Sentences Methamphetamine Trafficker to over 17 Years in PrisonRead the Press Release
CHARLOTTE, N.C. – James Kristoffer Cantley, 39, formerly of Newton, N.C., was sentenced today by U.S. District Judge Kenneth D. Bell to 210 months in prison and five years of supervised release for trafficking methamphetamine, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. In July 2021, Cantley pleaded guilty to drug trafficking conspiracy, possession with intent to distribute methamphetamine, and possession of a firearm in furtherance of drug trafficking.
Cantley is one of 14 defendants indicted by a federal grand jury in June 2020, for trafficking methamphetamine from Georgia into Western North Carolina. According to filed court documents and court proceedings, from 2018 through April 2019, the defendants were involved in a drug network that trafficked and distributed methamphetamine in Catawba, Lincoln, Caldwell, and Alexander Counties and elsewhere. Over the course of the investigation, law enforcement seized narcotics, at least 23 firearms, and more than $250,000 in drug proceeds.
The other 12 other defendants sentenced to date are:
- Michael James Notheisen, 35, of Vale, N.C., was sentenced to 240 months in prison and five years of supervised release.
- Tiffany Christmas Hirani, 34, of Monroe, Georgia, was sentenced to 210 months in prison and five years of supervised release.
- Aaron Douglas Goodson, 31, of Lincolnton, N.C., was sentenced to 210 months in prison and five years of supervised release.
- Brian Duane Martz, 42, was sentenced to 191 months in prison and five years of supervised release.
- Priscilla Chapman Lambert, 34, of Hickory, N.C., was sentenced to 151 months in prison and five years of supervised release.
- Thomas Dewayne Simmons, Jr., 35, of Monroe, Georgia, was sentenced to 150 months in prison and five years of supervised release.
- Ruth Marie Duggar, 38, of Claremont, N.C., was sentenced to 132 months in prison and five years of supervised release.
- Lowell Thomas Messer, 44, of Newton, N.C., was sentenced to 120 months in prison and five years of supervised release.
- Samantha Jean Taylor, 26, of Newton, N.C., was sentenced to 120 months in prison and five years of supervised release.
- Kimberly Deann Bumgarner, 57, of Granite Falls, N.C., was sentenced to 60 months in prison and two years of supervised release.
- Cynthia Roxanne Shook, 36, of Conover, N.C., was sentenced to 60 months in prison and two years of supervised release.
- Jason Keith Reichard, 39, of Ridgecrest, N.C., was sentenced to 36 months in prison and three years of supervised release.
The remaining defendant, Jonathan Corey Daniel, has pleaded guilty to drug trafficking conspiracy and possession with intent to distribute methamphetamine, and is currently awaiting sentencing.
In making today’s announcement Acting U.S. Attorney Stetzer thanked the following agencies for their investigative efforts which led to federal charges: the DEA in Charlotte, Asheville, and Atlanta; the North Carolina State Bureau of Investigation; the North Carolina State Highway Patrol; the Catawba County Sheriff’s Office; the Newton Police Department; the Conover Police Department; the Maiden Police Department; the Hickory Police Department; the Longview Police Department; the Caldwell County Sheriff’s Office; the Granite Falls Police Department; the Lincoln County Sheriff’s Office; the Cleveland County Sheriff’s Office; the Huntersville Police Department; the Cornelius Police Department; the Mint Hill Police Department; the Pineville Police Department; the Charlotte Mecklenburg Police Department; the Monroe Police Department; the Taylorsville Police Department; the Gaston County Police Department; the Georgia Highway Patrol; the Franklin County Sheriff’s Office in Georgia; the Georgia Bureau of Investigation; the Georgia Department of Corrections; the Clayton County Sheriff’s Office in Georgia; and the Commerce Police Department in Georgia.
Assistant U.S. Attorney Christopher Hess, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
Featherston Appointed United States Attorney for the Eastern District of TexasRead the Press Release
BEAUMONT, Texas – Brit Featherston has taken the oath of office to become the United States Attorney for the Eastern District of Texas. Featherston was appointed to the position by Attorney General Merrick Garland and took the oath of office from Chief U.S. District Judge Rodney Gilstrap.
“This is my home; serving and protecting the great citizens of East Texas has been my priority for a long time and it will continue into the future,” said U.S. Attorney Featherston. “I am blessed to work with a dedicated team of professionals who make it their daily mission to protect the citizens of this great country. I also look forward to jointly working with our law enforcement partners who bravely protect our communities every day.”
Featherston, 61, of Lumberton, is the chief federal law enforcement official in the Eastern District of Texas, which includes 43 counties stretching from the Oklahoma border to the Gulf of Mexico. The district includes six fully staffed offices in Beaumont, Plano, Tyler, Sherman, Texarkana, and Lufkin with 120 employees, including 60 prosecutors. Featherston is responsible for the prosecution of federal criminal offenses in the district and will represent the United States in all civil litigation in the district.
Since joining the office in 1996, Featherston has served in the capacity of First Assistant U.S. Attorney, Executive Assistant U.S. Attorney, and supervisory U.S. Attorney. He was also appointed Acting United States Attorney in September 2016 and served in that capacity for 17 months. In January 2018, Featherston became the Justice Attaché for the U.S. Embassy in Kabul, Afghanistan. In addition to prosecuting high-profile cases such as the dragging death of James Byrd, Jr., in Jasper County, Featherston has been instrumental in crisis management operations during numerous Southeast Texas hurricanes, as well as assisting in the establishment of a command post and the investigation and prosecution of crimes related to the space shuttle crash in 2003 in Lufkin.
Featherston was honored to have former United States Attorney Malcolm Bales, his brother Tom Featherston, and Criminal Chief Frank Coan by his side as he took his oath of office from Judge Gilstrap this afternoon. Wife, Amy, and son, Ben, joined the ceremony by video from Texas Children’s Hospital in Houston where Ben has been in ICU since Sep. 30th recovering from a sudden illness. Ben is a freshman at the University of Texas at Austin and daughter, Anna, is a senior at Texas A&M University in College Station.
For more information about the U.S. Attorney’s Office for the Eastern District of Texas, please visit https://www.justice.gov/usao-edtx.
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Duquesne Man Sentenced to More than 5 Years in Prison for Drug and Gun Law OffensesRead the Press Release
PITTSBURGH - A resident of Duquesne, Pennsylvania, has been sentenced in federal court to 66 months’ imprisonment, followed by three years of supervised release on his conviction for narcotics trafficking and possession of a firearm in furtherance of a drug-trafficking crime, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge Cathy Bissoon imposed the sentence on Marquis Brown, age 33.
According to previous information presented to the court, in October 2017, Brown possessed with intent to distribute quantities of heroin and fentanyl analogues. He also possessed a .40 caliber Taurus pistol in furtherance of his drug-trafficking.
Assistant United States Attorney Jeffrey R. Bengel prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Federal Bureau of Investigation – Western District of Pennsylvania Opioid Task Force for the investigation of this case. This Task Force is comprised of FBI Special Agents and state and local Task Force Officers, including officers from the Pittsburgh Bureau of Police, Allegheny County Sherriff’s Department, Allegheny County Police, Port Authority Police, Munhall Police Department, West Mifflin Police Department, and Pennsylvania Attorney General’s Office.
Department of Justice Awards over $2 Million in Grants to Improve Public Safety and Serve Crime Victims in Western District of Michigan Tribal CommunitiesRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Andrew Birge announced today that, as part of a national rollout, the Department of Justice awarded $2,438,323 in grants to improve public safety, serve victims of crime and support youth programs in tribal communities in the Western District of Michigan.
“The Justice Department is pleased to make the Coordinated Tribal Assistance Solicitation available to federally recognized tribes, providing a transparent and simple process to apply for grants that best align with their community’s needs,” said Associate Attorney General Vanita Gupta. “This one-step application makes it possible for tribes to access critical resources to help them meet the critical public safety needs of their communities.”
“These awards underscore the Department of Justice’s commitment to help federally recognized Tribes keep their communities safe,” explained U.S. Attorney Birge.
More than four in five of American Indian and Alaska Native adults have experienced some form of violence in their lifetime, according to the Bureau of Justice Statistics. This equates to nearly three million people who have experienced stalking, sexual violence, psychological aggression or physical violence by intimate partners.
“Each year, the department invests millions of dollars to help our Tribal partners confront the challenges of violent crime and domestic abuse in their communities and strengthen their public safety infrastructure,” said Acting Assistant Attorney General Amy L. Solomon for the Justice Department’s Office of Justice Programs. “We are pleased to support the critical work that Tribal nations are undertaking in communities across the country.”
More than $73 million will be awarded under CTAS, a streamlined application which helps tribes apply for tribal-specific grant programs that enhance law enforcement and tribal justice practices, expand victim services and sustain crime prevention and intervention efforts. CTAS grants are administered by OJP ($48 million) and the Office of Community Oriented Policing Services (COPS Office) ($25 million).
“These grants provide vital resources to Tribal law enforcement and their communities by offering equipment and training, along with resources to help officers understand and better serve their communities in areas of domestic abuse, stalking and sex trafficking, and alleviate the detrimental effects that substance abuse and crime have on individuals and their families,” said Acting Director Robert Chapman of the COPS Office
The COPS Office also awarded $400,000 to Western Oregon University to create a structured and tribal-centered innovative approach to enhance the operation of the criminal justice system to address the concerns of the American Indian and Alaska Native communities regarding missing and murdered indigenous people, particularly missing and murdered women and girls.
In addition to CTAS funding, OJP has awarded more than $100 million through the Tribal Victim Services Set-Aside to improve services for crime victims in Tribal communities. OJP’s Office for Victims Crime is supporting tribal grantees with capacity building, training and technical assistance (more than $6.8 million) and an update of the Tribal Resource Tool ($199,999), which maps the availability of victim services in tribal communities. An additional $2.9 million will be awarded under the Children’s Justice Act Partnership to tribes to enhance the handling of cases centered around criminal child abuse and neglect.
The department also funded $6.5 million through OJP’s Office of Sex Offender Sentencing, Monitoring, Apprehending Registering and Tracking to help Tribes comply with federal law on sex offender registration and notification.
The following tribes in the Western District of Michigan received funding:
- Bay Mills Indian Community: $508,245
- Tribal Youth Program (OJJDP)
- Lac Vieux Desert Band of Lake Superior Chippewa Indians: $851,176
- Tribal Justice Systems (BJA)
- Sault Sainte Marie Tribe of Chippewa Indians: $1,078,902
- Public Safety and Community Policing (COPS Office): $628,902
- Children’s Justice Act Partnerships for Indian Communities (OVC): $450,000
Information about FY 2021 grant awards from the Office of Justice Programs can be found online on the OJP Grant Awards Page: https://www.ojp.gov/fy21-ojp-grant-awards. The page will be updated as awards are made.
Information about FY 2021 grant awards from the COPS Office can be found online at the COPS Grant Page: https://cops.usdoj.gov/grants.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
The COPS Office is the component of the U.S. Department of Justice responsible for advancing the practice of community policing by the nation's state, local, territorial and Tribal law enforcement agencies through information and grant resources. More information about the COPS Office can be found at https://cops.usdoj.gov/.
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- Bay Mills Indian Community: $508,245
Cumberland County Man Charged with Child PornographyRead the Press Release
CAMDEN, N.J. – A Cumberland County, New Jersey, man was arrested today for allegedly distributing and possessing images of child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced.
Edwin Torres, aka “Macho Torres,” 38, of Bridgeton, New Jersey, is charged by complaint with one count of distribution of child pornography and one count of possession of child pornography. He appeared today via videoconference before U.S. Magistrate Judge Ann Marie Donio in Camden federal court and was detained without bail.
According to documents filed in this case and statements made in court:
In May 2020, a user of a social media application uploaded to a public chat group multiple videos of child sexual abuse from an internet provider address linked to Torres’ residence. In September 2021, law enforcement agents executed search warrants at Torres’ residence and on a Google account associated with the social media account used to distribute the videos in May 2020. The Google account, which also had been accessed from Torres’ residence, contained over 100 videos of child sexual abuse, including videos whose content matched the videos distributed in May 2020. During the search of Torres’ residence, agents seized Torres’ cellular telephone, which had been used to access the same Google account.
The count of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison, and a fine of $250,000. The count of possession of child pornography carries a maximum penalty of 10 years in prison, and a fine of $250,000.
Acting U.S. Attorney Honig credited special agents of the FBI, Atlantic City Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s charges. She also thanked the Cumberland County Prosecutor’s Office, under the direction of Prosecutor Jennifer Webb-McRae, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the Camden Office.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Clarksville Restaurant Owner Sentenced to Federal Prison for Alien Harboring and Tax Fraud ConspiracyRead the Press Release
NASHVILLE – Quanwei Shi, 31, of Clarksville, Tennessee, was sentenced Friday to 20 months in federal prison for conspiracy to harbor illegal aliens; harboring illegal aliens; money laundering; tax evasion; and employment tax fraud, announced Acting U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
Shi, the majority owner of the New China Buffett & Grill (NCBG) in Clarksville, and co-owner Chongqiang Chen, 30, also of Clarksville, were arrested in April 2020, after a 14-count indictment charged them in a scheme to harbor undocumented workers and to defeat the tax laws of the United States. Shi pleaded guilty in March.
According to court documents, between 2017 and April 2019, Shi conspired to conceal and harbor illegal aliens from China and Guatemala, profiting from their employment at NCBG. The undocumented workers were not required to complete any forms related to their immigration status and were paid in cash, outside the regular payroll system. The undocumented workers lived with Shi at his residence on D Street in Clarksville and were transported to NCBG and back daily. Shi assigned the workers to work in the kitchen where they would not be able to interact with the patrons of the restaurant.
In addition to harboring the undocumented workers, Shi underreported gross receipts on NCBG’s corporate tax returns for tax years 2017 through 2019, and failed to collect, account for, and pay over employment taxes for an overall tax loss of $440,941.
U.S. District Judge Eli J. Richardson also ordered the forfeiture of Shi’s house in Clarksville and two vehicles and ordered restitution in the amount of $417,149.
Chongqiang Chen pleaded guilty in July and will be sentenced on February 25, 2022.
This case was investigated by Homeland Security Investigations; the IRS-Criminal Investigation; the Diplomatic Security Service of the U.S. Department of State; the Tennessee Bureau of Investigation; the Tennessee Bureau of Workers Compensation; the Clarksville Police Department; and the Montgomery County Sheriff’s Office. Assistant U.S. Attorneys Sara Beth Myers and Robert Levine are prosecuting the case.
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Charlotte Man Convicted of Armed Robbery and Firearms Offenses Is Sentenced to 26+ Years in PrisonRead the Press Release
CHARLOTTE, N.C. – Acting U.S. Attorney William T. Stetzer announced today that Ron McQuay Garland, 39, of Charlotte, was sentenced to 319 months in prison and five years of supervised release, for his role in a string of armed robberies, attempted armed robberies, and related firearms offenses.
Acting U.S. Attorney Stetzer is joined in making today’s announcement by Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Johnny Jennings of the Charlotte-Mecklenburg Police Department.
According to filed court documents, evidence presented at Garland’s trial, and witness testimony, on August 19, 2019, Garland, robbed at gunpoint a Zaxby’s fast food restaurant, located at 8905 Albemarle Road in Charlotte. Garland entered the restaurant while brandishing a black semiautomatic pistol at the employees. Garland then ordered an employee to open the cash register and took approximately $1,000 in cash. Garland subsequently fled the scene with a co-defendant. According to trial evidence, on September 21, 2019, Garland also robbed a Family Dollar store located at 4130 Rozzelles Ferry Road, in Charlotte. As witnesses testified, Garland entered the store and brandished a handgun at a store employee. Garland then forced the employee to open the register and Garland stole approximately more than $1,000 before fleeing.
According to court documents and trial evidence, Garland also attempted to rob two other Charlotte area businesses. On August 21, 2019, Garland attempted to rob an Arby’s fast food restaurant, located at 2501 Little Rock Road in Charlotte. Garland entered the restaurant, pointed a handgun at the employees and demanded money from the cash register. Garland was unable to open the register but took an employee’s cell phone before fleeing the scene with a co-defendant. On February 11, 2020, Garland also attempted to rob a Jack-in-the-Box restaurant, located at 10121 North Tryon Street in Charlotte. Garland pointed a firearm at an employee who was taking out the trash and attempted to enter the restaurant, first through the back door and then through the front door but was ultimately unsuccessful. Garland stole a wallet from a customer in the parking lot after eventually abandoning the attempted robbery. Garland fled the scene with a co-defendant and was apprehended early the next morning by the FBI and CMPD.
In July 2021, a federal jury convicted Garland of two counts of robbery of a business affecting interstate commerce, or “Hobbs Act” Robbery; two counts of attempted Hobbs Act Robbery; two counts of possession of a firearm during and in relation to a crime of violence; and one count of felon in possession of a firearm. Garland’s co-defendant, Chan Tate, was previously sentenced after pleading guilty to aiding and abetting Hobbs Act Robbery and attempted Hobbs Act Robbery.
The investigation was handled by the FBI’s Violent Crimes Task Force and CMPD.
Assistant U.S. Attorneys William Bozin and Taylor Stout of the of the U.S. Attorney’s Office in Charlotte are in charge of the prosecution.
Charleston Man Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man pleaded guilty today to a federal drug crime.
According to court documents and statements made in court, law enforcement officers executed a search warrant at the Charleston residence of Donavan Hardison, 31, on January 4, 2021. The officers found approximately 2.826 grams of fentanyl on Hardison and approximately 3.672 grams of cocaine base in Hardison’s vehicle. Hardison admitted that he intended to distribute both controlled substances. At the time, Hardison was serving terms of supervised release in conjunction with two prior federal convictions.
Hardison pleaded guilty to possession with intent to distribute quantities of fentanyl and cocaine base, for which he faces up to 20 years in prison when he is sentenced on February 17, 2022. In addition, Hardison faces up to four years in prison for his supervised release violations.
Senior United States District Judge John T. Copenhaver, Jr. presided over the plea hearing. Assistant United States Attorney Nick Miller is handling the prosecution.
United States Attorney William S. Thompson made the announcement and commended the investigative work of the Charleston Police Department, the Metropolitan Drug Enforcement Network Team (MDENT), the Putnam County Sheriff’s Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Drug Enforcement Administration (DEA).
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-00130; 2:18-cr-00040; and 2:15-cr-00135.
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Camden Man Sentenced to 200 Months in Prison for Robbing Two Banks, Attempting to Rob ThirdRead the Press Release
CAMDEN, N.J. – A Camden man was sentenced today to 200 months in prison for robbing two banks, and attempting to rob a third bank over a 10-day period in July 2018, Acting U.S. Attorney Rachael A. Honig announced.
Anthony L. Livingston, 50, was convicted in May 2019 of two counts of bank robbery, and one count of attempted bank robbery following a one-week trial before U.S. District Judge Renee Marie Bumb, who imposed the sentence today in Camden federal court.
According to documents filed in this case and the evidence at trial:
On July 14, 2018, Livingston entered the Gloucester Township PNC Bank wearing sunglasses and a hat. He presented a demand note to the teller and then left the bank with the stolen cash.
On July 24, 2018, Livingston attempted to recruit a homeless man to rob the Stratford PNC Bank on his behalf. Livingston instructed the man on how to rob the bank, gave him a demand note to show to the teller, and drove the man to the bank. The man walked into the bank and told the employee that he had been sent there to rob the bank and that he did not want to do it, and that the bank should call the police because the person who had sent him was waiting for him outside.
Four hours later, Livingston recruited co-defendant Laque Hunter to rob the Collingswood Ocean First bank on his behalf, and drove Hunter to the bank. Hunter robbed the bank with a demand note. Livingston served as the getaway driver, and the two split the proceeds. Hunter pleaded guilty on April 2, 29019, and is awaiting sentencing.
At the time of these crimes, Livingston was on federal supervised release. On July 13, 2018, one day before the first bank robbery, Livingston completed a 220-month term of imprisonment for having robbed eight banks in southern New Jersey in 2000 and 2001.
In addition to the prison term, Judge Bumb sentenced Livingston to three years of supervised release.
Acting U.S. Attorney Honig credited special agents of the FBI-Cherry Hill, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia; the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer; the Camden County Sheriff’s Office, under the direction of Sheriff Gilbert “Whip” Wilson; the Collingswood Police Department, under the direction of Chief Kevin J. Carey; the Gloucester Township Police Department, under the direction of Chief W. Harry Earle; and the Stratford Police Department, under the direction of Chief Ronald M. Morello, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Kristen M. Harberg and Patrick C. Askin of the Camden Office.
Camden County Man Sentenced to One Year and One Day in Prison for Conspiring with White Supremacists to Vandalize Synagogues Across the CountryRead the Press Release
CAMDEN, N.J. – A Camden County man was sentenced today to one year and one day in prison for his role in conspiring with members of a white supremacist hate group to threaten and intimidate African Americans and Jewish Americans by vandalizing minority-owned properties throughout the country in September 2019, Acting U.S. Attorney Rachael A. Honig announced.
Richard Tobin, 20, of Brooklawn, New Jersey, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with conspiracy against rights. Judge Kugler imposed the sentence today in Camden federal court.
“Richard Tobin encouraged hateful acts of violence against individuals and their houses of worship, based on their religion or the color of their skin,” Acting U.S. Attorney Rachael A. Honig said. “Justice demanded that he be held accountable for these racist and antisemitic actions, and we are proud to have joined with our colleagues in the Civil Rights Division and the Joint Terrorism Task Force in doing so in this case. Our commitment to protecting the civil rights of all in New Jersey is steadfast.”
“The defendant conspired with a white supremacist hate group to vandalize and destroy property owned by Jewish and Black Americans, intending to instill fear into those communities across the country,” Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division said. “This sentence makes clear that targeting persons owning and using property simply based on their race or religion will not be tolerated. The Department of Justice will continue to prosecute civil rights conspiracies and vindicate the rights of victims of bias motivated crimes.”
“Richard Tobin’s white supremacist beliefs are abhorrent, but his beliefs aren’t why he’s going to prison,” Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division, said. “He actively conspired with others to commit a crime of violence, to victimize innocent people because of who they are or how they worship. That’s what crossed a line and made it the FBI’s business. We’re always going to pursue individuals inciting violent, hateful acts meant to intimidate and isolate members of our community.”
According to documents filed in this case and statements made in court:
Tobin admitted that from Sept. 15 to Sept. 23, 2019, he was a member of a white supremacist group, “The Base,” and during that time, he communicated online with other members and directed them to destroy and vandalize properties affiliated with African Americans and Jewish Americans. Tobin dubbed this coordinated attack “Kristallnacht,” or “Night of Broken Glass,” after an attack in Germany on Nov. 9 and 10, 1938, in which Nazis murdered Jewish people and burned and destroyed Jewish homes, synagogues, stores and schools. Tobin implored members of The Base to post propaganda flyers and to break windows and slash tires belonging to African Americans and Jewish Americans. On Sept. 21, 2019, members of The Base vandalized synagogues in Racine, Wisconsin, and Hancock, Michigan, by spray painting them with hate symbols.
A conspirator, Yousef Omar Barasneh, previously pleaded guilty to conspiracy against rights in federal court in the Eastern District of Wisconsin, for his role in vandalizing the synagogue in Racine, Wisconsin.
In addition to the prison term, Judge Kugler sentenced Tobin to three years of supervised release.
Acting U.S. Attorney Honig credited special agents of the FBI Philadelphia Division’s South Jersey Resident Agency, under the direction of Special Agent in Charge Maguire, and the Joint Terrorism Task Force and its member agencies, including the Department of Homeland Security – Homeland Security Investigations, the New Jersey Office of Homeland Security and Preparedness, the New Jersey State Police and the Camden County Police Department, with the investigation leading to today’s sentencing. She also thanked the Brooklawn and Cherry Hill police departments for their assistance.
The government is represented by Assistant U.S. Attorney Kristen M. Harberg of the U.S. Attorney’s Office in Camden and Trial Attorney Eric Peffley of the Civil Rights Division, Criminal Section.
California Woman Sentenced to 235 Months for Involvement in Meth and Money Laundering ConspiracyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that an Escondido, California, woman convicted of Conspiracy to Distribute Controlled Substances and Conspiracy to Launder Monetary Instruments was sentenced on November 1, 2021, by U.S. District Judge Karen E. Schreier.
Maribel Torres, age 37, was sentenced to 235 months in federal prison, followed by five years of supervised release. She was also ordered to pay $100 to the Federal Crime Victim Fund.
Torres was indicted for Conspiracy to Distribute Controlled Substances and Conspiracy to Launder Monetary Instruments by a federal grand jury on July 20, 2020. She pled guilty on June 21, 2021.
Beginning on an unknown date and continuing until on or about July 2020, Torres reached an agreement or came to an understanding to distribute 500 grams or more of a mixture of a substance containing methamphetamine in the District of South Dakota. During her involvement, she facilitated and directed the transportation and distribution of methamphetamine in South Dakota and elsewhere.
Additionally, beginning at an unknown date and continuing to on or about July 2020, in the District of South Dakota and elsewhere, Torres reached an agreement or came to an understanding to conduct and attempt to conduct financial transactions affecting interstate and foreign commerce. During her involvement, she wired funds derived from the sale of methamphetamine by utilizing various financial institutions. She also directed co-conspirators to do the same on her behalf. Further, she helped coordinate with co-conspirators the movement of cash drug proceeds across state lines.
This case was investigated by the Drug Enforcement Administration, Internal Revenue Service, South Dakota Division of Criminal Investigation, Sioux Falls Area Drug Task Force, and the South Dakota Highway Patrol. Special Assistant U.S. Attorney Tamara Nash prosecuted the case.
Torres was immediately turned over to the custody of the U.S. Marshals Service.
Bulgarian National and Washington State Man Charged in Connection with International Enterprise That Operated Sexually Exploitive “Child Modeling” WebsitesRead the Press Release
Tampa, Florida – Acting United States Attorney Karin Hoppmann announces the unsealing of two indictments in connection with an international enterprise based in Florida that operated subscription-based sexually exploitative “child modeling” websites. Plamen Georgiev Velinov (48, Sofia, Bulgaria) is charged with conspiring to advertise and distribute child pornography in connection with the Florida-based enterprise. Anthony Lee Kendall (55, Mossyrock, WA) is charged with money laundering and money laundering conspiracy in connection with his laundering of approximately $1 million for the enterprise.
Arrests of Defendants Velinov and Kendall
Velinov was arrested yesterday in Sofia, Bulgaria by officers from Bulgarian National Investigative Service and the Sofia Metropolitan Police at the request of the United States. Kendall was arrested yesterday in Washington.
If convicted, Velinov faces a minimum mandatory penalty of 15 years’ imprisonment for conspiring to advertise child pornography, a minimum 5 years’ imprisonment for conspiring to distribute child pornography, and a total maximum penalty of 50 years’ imprisonment for both offenses. The indictment also notifies Velinov that the United States intends to forfeit more than $434,000 in assets that are alleged to be traceable to proceeds of the offenses. If convicted, Kendall faces up to 20 years in federal prison for each count of the five-count money laundering charges in the indictment. The indictment also notifies Kendall that the United States intends to forfeit $944,678 in assets that are alleged to be traceable to proceeds of the offenses.
According to court documents, Velinov assisted with directing and controlling the foreign functions 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. Velinov helped maintain and update the Newstar Websites. Kendall performed financial functions essential to the Newstar Enterprise. Kendall fraudulently opened payment processing, merchant, and bank accounts for the Newstar Enterprise and facilitated, conducted, and concealed monetary transactions involving approximately $1 million in revenue from the Newstar Websites. Kenneth Power (deceased at 58, of Weston), was a principal member of the Newstar Enterprise who directed and controlled its operations. Patrice Eileen Wilowski-Mevorah (53, of Tampa) and Mary Lou Bjorkman (58, of Lutz) recently pleaded guilty to laundering money for the Newstar Enterprise. Kenneth Power’s wife, Tatiana “Tanya” Power (41, of Weston), is currently pending trial on money laundering charges in connection with the Newstar Enterprise. Other members of the Newstar Enterprise resided in Europe.
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; international promotion money laundering; concealment money laundering
Indicted,
pending trial
100 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, pending extradition
50 years’ imprisonment
Patrice Wilowski-Mevorah
8:21-cr-00206-MSS-TGW
Conspiracy to commit money laundering
Pleaded guilty, sentence pending
20 years’ imprisonment
Anthony Lee Kendall
8:21-cr-358-SCB-TGW
Conspiracy to commit money laundering; promotion money laundering; concealment money laundering
Indicted, pending trial
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; the Republic of Moldova, Office of the Prosecutor General and National Inspectorate of Investigations; International Legal Assistance Center (IRC), North-Holland Unit; the Cantonal Police (Berne); and the Czech Republic, Supreme Public Prosecutor’s Office, Czech Police. The Justice Department’s Office of International Affairs and Office of Overseas Prosecutorial Development, Assistance and Training (OPDAT) provided investigative assistance.
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.
Boston Man Charged with Child Exploitation OffenseRead the Press Release
BOSTON – A Boston man, who is on probation following a state conviction for child exploitation offenses, including trafficking, was charged yesterday with allegedly soliciting a minor on TikTok.
Hector Acevedo, 31, of Jamaica Plain, was charged with one count of sexual exploitation of children. On Oct. 20, 2021, Acevedo was arrested on related state charges and has been in custody since. Acevedo will make an initial appearance in federal court in Boston at a later date.
According to the charging documents, Acevedo is a Level 3 registered sex offender. Acevedo was previously convicted in Suffolk County Superior Court on multiple child and sexual exploitation offenses including trafficking of a person for sexual servitude, extortion by threat of injury, posing or exhibiting a child in state of nudity or sexual conduct, dissemination of matter harmful to minors, dissemination of child pornography and purchase or possession of child pornography. On Feb. 13, 2018, Acevedo was sentenced to five-to-seven years in state prison and three years of probation. While on state probation, Acevedo allegedly solicited a minor via TikTok and coerced the victim to engage in sexual conduct over video chat.
The charges of sexual exploitation of children provides for a sentence of at least 15 years and up to 30 years in prison, at least five years and up to a lifetime of supervised release, a fine of up to $250,000 and restitution. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Boston Police Acting Commissioner Gregory Long made the announcement today. Valuable assistance was provided by the Arlington and Revere Police Departments. Assistant U.S. Attorney Elianna Nuzum of Mendell’s Major Crimes Unit is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Berkeley County woman admits to role in drug trafficking conspiracyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Angela Dawn Gregory, of Martinsburg, West Virginia, has admitted to a drug charge, United States Attorney William J. Ihlenfeld, II announced.
Gregory, 47, pleaded guilty today to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin, Fentanyl, Cocaine Base, and Cocaine Hydrochloride.” Gregory admitted to working with others to distribute fentanyl, heroin, cocaine base, and cocaine hydrochloride from August 2020 to June 2021 in Berkeley County and elsewhere.
Gregory faces up to 20 years of incarceration and a 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.
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.
Assistant U.S. Attorneys Lara Omps-Botteicher and Timothy D. Helman are prosecuting the cases on behalf of the government. The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative; the West Virginia State Police; Customs and Border Protection; FBI-New York Safe Streets Task Force; and the New Jersey State Police investigated. The U.S. Attorney’s Office for the District of Maryland and the U.S. Attorney’s Office for the Middle District of Pennsylvania assisted.
U.S. Magistrate Judge Robert W. Trumble presided.
Baystate Medical Center Agrees to Settle Allegations of Americans with Disabilities Act ViolationsRead the Press Release
BOSTON – Baystate Medical Center (Baystate) has agreed to resolve allegations that it violated the Americans with Disabilities Act (ADA) by failing to provide effective communication during scheduled labors and deliveries of individuals who are deaf or hard of hearing.
The agreement resolves a complaint by an individual who is deaf and uses American Sign Language (ASL) to communicate. The complaint alleges that Baystate failed to provide the aggrieved party with effective ASL communication during her scheduled labor and delivery, in violation of the ADA. While investigating this complaint, another aggrieved party who was not provided with an ASL accommodation during two scheduled labors and deliveries was identified.
Under the terms of the agreement, Baystate will ensure effective communication by providing appropriate auxiliary aids and services, including ASL interpreters, and implementing personnel training. Additionally, Baystate will pay a total of $135,000 to the aggrieved parties.
“Effective communication between moms and healthcare providers is important – never more so than at childbirth,” said Acting United States Attorney Nathaniel R. Mendell. “This settlement is another example of the ADA at work – in this case ensuring that moms who are deaf or hard of hearing will receive services that provide necessary, effective communication with health care providers at Baystate Medical Center.”
“At no time should any person have to undergo a health care procedure or receive services without the basic ability to communicate with their health care providers. This agreement underscores that the availability of auxiliary aids and services are essential to meaningful access to quality health care,” said Lisa J. Pino, Director of the U.S. Department of Health and Human Services, Office for Civil Rights. “Providers must understand their obligations under law and ensure patients can understand and communicate effectively so that no one’s health is jeopardized simply because a person is deaf or hard of hearing.”
Acting U.S. Attorney Mendell and HHS OCR Director Pino made the announcement today. Assistant U.S. Attorney Gregory Dorchak of Mendell’s Civil Rights Unit and Erin Walker of HHS’s Office for Civil Rights handled the matter.
Baltimore Woman Admits Assisting the Murder of a Woman and Her Seven-Year-Old Son During a 2015 Drug-Related RobberyRead the Press Release
Baltimore, Maryland – Kiara Haynes, age 36, of Baltimore, pleaded guilty today to two counts of aiding and abetting the use and discharge of a firearm in relation to a drug trafficking crime and crime of violence, causing the death of Jennifer Jeffrey and her seven-year-old child. Haynes has been detained since her arrest in Texas on June 18, 2021, on a related federal criminal complaint.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Michael Harrison of the Baltimore Police Department; and Chief Mark K. Lewis of the Cambridge Police Department.
“The murders of Jennifer Jeffrey and her child were a tragedy,” said U.S. Attorney Erek L. Barron. “The loss of any life is tragic, and never more so than a child. If you threaten or harm a witness, especially a child, the full weight of federal law enforcement will be harnessed to hold you accountable and bring you to justice, no matter how long it takes.”
According to Haynes’s plea agreement, Haynes helped her co-defendant, with whom she was romantically involved, plan to steal heroin from Jennifer Jeffrey, a long-time friend of Haynes. On May 26, 2015, the co-defendant arrived at Haynes’s apartment from the co-defendant’s home in Cambridge and the two went to the phone store, where the co-defendant bought a new phone. During the course of the evening, the co-defendant explained that Jeffrey had heroin and he planned to rob and kill Jeffrey to get the heroin. The co-defendant confirmed to Haynes his intention to kill not only Jeffrey, but her minor child if the child were present at the time of the robbery. Haynes offered to help the co-defendant get a gun.
Haynes subsequently contacted a relative whom she knew to have a gun. The relative was incarcerated at the time. Haynes told the relative on a recorded jail line that she needed the gun so the co-defendant could rob Jeffrey of her drugs. In exchange for allowing Haynes to use the gun, Haynes promised to give the inmate “like 30 [grams]” of the stolen heroin and his gun back. The inmate agreed to loan Haynes the gun. After the call, Haynes and the co-defendant met with the inmate’s brother, who gave Haynes a .45 caliber firearm. Haynes and the co-defendant returned to Haynes’s apartment with the gun.
Later that night, as detailed in the plea agreement, the co-defendant left Haynes’s apartment to go hang out with Jeffrey at Jeffrey’s nearby home. When Haynes woke up later and realized that the co-defendant had not returned, Haynes got upset. Between 4:00 a.m. and 5:00 a.m. Haynes walked over to Jeffrey’s home and began banging on the door and yelling for the co-defendant to come out. Jeffrey’s relative opened the door and told Haynes that children were in the house asleep and that Haynes should go home, which she eventually did.
According to Haynes’s plea agreement, at approximately 7:23 a.m., the co-defendant walked back from Jeffrey’s residence to Haynes’s apartment. The co-defendant told Haynes that Jeffrey had shown him a large amount of heroin and that Jeffrey’s child did not feel well and had not gone to school that day. At approximately 11:41 a.m. Haynes overheard the co-defendant on the phone with Jeffrey, who was talking about making breakfast for the co-defendant. When the co-defendant got off the phone, he retrieved the .45-caliber gun from Haynes’s bedroom and told Haynes that he was going to Jeffrey’s to get the drugs.
When the co-defendant returned to Haynes’s apartment, Haynes asked him what had happened. The co-defendant told Haynes that Jeffrey and her child were dead and gave Haynes a bag of heroin as her “cut” of Jeffrey’s drugs. When Haynes went to a friend’s house to meet the co-defendant, she overheard individuals telling the co-defendant that the heroin was only worth $8,000. As detailed in the plea agreement, Haynes returned the gun to the inmate’s relative along with the heroin given to her by the co-defendant, as payment for the use of the gun.
On May 28, 2015, after a receiving a call for assistance, the Baltimore Police Department discovered Jeffrey and her child dead in their home.
In the plea agreement, Haynes further admitted that she lied to investigators and prosecutors about these events on five occasions between May 2015 and November 2020.
Haynes faces a mandatory minimum sentence of 10 years in federal prison and a maximum sentence of life in prison on each of the two counts. U.S. District Judge Richard D. Bennett scheduled sentencing for February 24, 2022 at 2:30 p.m.
United States Attorney Erek L. Barron commended the ATF, the FBI, the Baltimore Police Department, and the Cambridge Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Dana J. Brusca, Sandra Wilkinson, and Paul Budlow, who are prosecuting the case, and thanked Assistant U.S. Attorney Michael C. Hanlon for his assistance.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Aurora Man Sentenced to 15 Years for illegal FirearmsRead the Press Release
SPRINGFIELD, Mo. – An Aurora, Missouri, man was sentenced in federal court today for illegally possessing firearms after leading law enforcement officers on a high-speed chase from Bolivar, Mo., to Springfield, Mo.
Milton W. Sparks, 38, was sentenced by U.S. District Judge M. Douglas Harpool to 15 years in federal prison without parole.
On April 15, 2021, Sparks pleaded guilty to two counts of being a felon in possession of a firearm.
Sparks admitted that he was in possession of a Ruger 9mm handgun on Dec. 20, 2017. Law enforcement officers attempted to stop Sparks, who was driving a stolen Dodge Challenger. Sparks fled from officers at speeds up to 128 miles per hour. At one point, Sparks changed into the right lane of Highway 13 and cut off a dump truck. The right rear tire of the Charger exploded, but Sparks continued driving at about 100 miles per hour. Sparks fled from Bolivar, Mo., to a residential neighborhood in Springfield, Mo., despite officers deploying two tire deflation devices. After running numerous red lights, the Charger driven by Sparks struck the driver’s side of a Chevrolet pickup. Sparks continued driving about 12 more minutes, when he jumped out of the vehicle while it was still running, and began running on foot between houses. Sparks was found hiding under a porch and was arrested. Officers later found the handgun, with a loaded magazine, on the side of the highway where Sparks had thrown it during the pursuit.
Sparks also admitted that he was in possession of a Llama .45-caliber semi-automatic pistol on March 1, 2017. An employee of the Quality Inn in Springfield alerted the police about a noticeable amount of traffic coming and going from the room rented by Sparks, which is consistent with drug activity. According to court documents, the room’s toilet was flushed multiple times while police were outside the room and a police canine detected the scent of drugs near the toilet, indicating that a large amount of drugs was likely flushed during the delay in opening the door. Sparks jumped from a second-floor window of the room and attempted to flee. However, he landed near two police officers, who detained him. Sparks had $1,203 and two cell phones in his possession. When officers searched the hotel room, they found another $3,049, trace amounts of methamphetamine, and the loaded pistol hidden behind the removable panels around a Jacuzzi tub.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Sparks has prior felony convictions for assault (in which he struck another man and knocked out his two front teeth), assault on a law enforcement officer (in which he struck a police vehicle while trying to flee in a stolen vehicle, and injured two officers), and involuntary manslaughter.
According to court documents, the involuntary manslaughter conviction resulted from an incident on Aug. 22, 2010. Police officers responded to a report of an unknown male who had forced entry into a home. Investigators eventually determined the man had come to the home looking for someone and forced his way inside. Sparks admitted to causing the man’s death by punching him while another person restrained him in a chokehold.
This case was prosecuted by Assistant U.S. Attorneys Josephine L. Stockard and James J. Kelleher. It was investigated by the Springfield, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Drug Enforcement Administration.
Armed Fentanyl Dealer Sentenced to Seven Years in Federal PrisonRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced Laquan De’Shay Jones (23, Apopka) to seven years in federal prison for possessing fentanyl with the intent to distribute it and for possessing a firearm in furtherance of a drug trafficking crime. The court also ordered Jones to forfeit the firearm and ammunition that he was carrying as part of the offense.
Jones had pleaded guilty on August 18, 2021.
According to court documents, deputies from the Orange County Sherriff’s Office arrested Jones on an active felony warrant for a violation of probation. During the arrest, agents recovered a loaded Glock pistol from Jones’s vehicle. In the trunk of the vehicle deputies located a duffle bag inside of which were multiple small plastic bags of white powdered fentanyl, cutting agents (chemicals), containers, a scale, and other drug paraphernalia, such as a blender and playing cards bent in half. The total amount of fentanyl was determined to be almost 15 grams. Jones admitted to being a fentanyl dealer.
Jones was previously convicted of multiple felony offenses, including accessory after the fact to a first-degree felony, resisting an officer, burglary, attempted burglary, and trespassing.
This case was investigated by the Orange County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney John Gardella.
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.
Anson County Man Is Sentenced to More Than Six Years on Drug and Gun ChargesRead the Press Release
CHARLOTTE, N.C. – Acting U.S. Attorney William T. Stetzer announced that Carnell Charles Caple Jr., 32, of Wadesboro, N.C., was sentenced yesterday to 76 months in prison and three years of supervised release on federal drug and gun charges.
Robert R. Wells, Special Agent in Charge of the FBI in Charlotte, and Chief Thedis Spencer of the Wadesboro Police Department join Acting U.S. Attorney Stetzer in making today’s announcement.
According to court documents and the sentencing hearing, on November 12, 2020, a Wadesboro Police Department detective conducted a traffic stop of the vehicle in which Caple was riding as a passenger. Over the course of the traffic stop, the officer asked the driver of the vehicle to step outside and instructed Caper to remain in the car. Caple did not comply and instead attempted to flee on foot. Law enforcement at the scene observed Caple discard a black bag while he ran with a firearm in his hand. Shortly thereafter, Caple tripped and fell and was placed under arrest.
According to court records, officers recovered Caple’s firearm, which was loaded with 15 rounds of ammunition and one additional round in the chamber. Law enforcement later determined that the firearm was stolen. Law enforcement also recovered Caple’s black bag, in which they found narcotics, drug paraphernalia, and another magazine loaded with 10 rounds of ammunition. Court records show that at the time of the offense Caple was on supervised release for a previous federal offense.
On July 22, 2021, Caple pleaded guilty to possession with intent to distribute methamphetamine and cocaine, and possession of a firearm by a convicted felon. He is currently in federal custody and will be transferred to custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, Acting U.S. Attorney Stetzer thanked the FBI and the Wadesboro Police Department for their investigation of the case. Assistant United States Attorney Regina Pack, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. 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.
Almost $57 Million in Seized Cryptocurrency Being Sold for Victims of BitConnect FraudRead the Press Release
Assistant U. S. Attorneys Daniel C. Silva, Mark W. Pletcher, Lisa Sanniti and Carl Brooker
SAN DIEGO — Pursuant to court order, the U.S. Attorney’s Office for the Southern District of California, in conjunction with the U.S. Postal Investigative Service, will begin liquidation of approximately $57 million in cryptocurrency (at current estimated prices) seized from the top North American promoter of BitConnect. This liquidation is believed to be the largest single recovery of cryptocurrency for victims to date.
On September 1, 2021, Glenn Arcaro, 44, of Los Angeles, pleaded guilty for his participation in a massive conspiracy involving BitConnect, a cryptocurrency investment scheme, which defrauded investors from the United States and abroad of over $2 billion. The BitConnect scheme is believed to be the largest cryptocurrency fraud ever charged criminally.
As part of his plea agreement, Arcaro admitted that he earned no less than $24 million from the BitConnect fraud conspiracy, all of which, according to court documents, he has agreed repay to defrauded investors. The order entered on November 12, 2021, begins the process of making those victims whole by liquidating the fraud proceeds in Arcaro’s possession—the vast majority of which were in the form of cryptocurrencies, including Bitcoin, Ethereum, Litecoin, Dash, and several others.
Acting U.S. Attorney Randy S. Grossman praised the work of the prosecutors and law enforcement agencies handling this matter, including the FBI’s Cleveland Field Office, as well as, more locally, IRS-CI, the Financial Investigations and Border Crimes Task Force (the “FIBC”—a multiagency Task Force based in San Diego and Imperial Counties, funded by the Treasury Executive Office of Asset Forfeiture), who are investigating the matter, and the U.S. Postal Investigative Service in the Southern District of California who is liquidating the cryptocurrency.
All investor victims of the BitConnect fraud are encouraged to visit the following webpage - https://www.justice.gov/usao-sdca/us-v-glenn-arcaro-21cr02542-twr for information on their rights as a victim, the ability to submit a victim impact statement, and to identify themselves as a potential victim.
Arcaro’s sentencing is scheduled to occur on January 7, 2022, before U.S. District Judge Todd W. Robinson.
DEFENDANT Case Number 21CR2542-TWR
Glenn Arcaro Los Angeles, CA Age: 44
SUMMARY OF CHARGES
Conspiracy to Commit Wire Fraud—Title 18, U.S.C., Section 1349
Criminal Forfeiture—Title 18, U.S.C., Section 982
Maximum penalty: Twenty years in prison, $250,000 fine or twice the gross gain or loss from the offense, whichever is greater, forfeiture, and restitution
AGENCIES
FBI
IRS Criminal Investigation—Financial Investigations and Border Crimes Task Force
United States Postal Inspection Service
*The charges and allegations contained in an indictment or information are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Alleged Money Launderers for Mexican Cartels IndictedRead the Press Release
Assistant U. S. Attorneys Blanca Quintero (619) 546-7118 and Vivian Sapthavee (619) 546-7696
NEWS RELEASE SUMMARY – November 16, 2021
SAN DIEGO – An indictment was partially unsealed yesterday in federal court charging 29 alleged members of an international money laundering organization that is tied to the Sinaloa Cartel and Jalisco New Generation Cartel in Mexico.
During the past week, federal, state, and local law enforcement officials have arrested
21 defendants throughout San Diego, Calexico, and Bakersfield, California, who were allegedly involved in a sophisticated international money laundering scheme.According to the indictment and other public records, this Imperial Valley-based money laundering organization (MLO) laundered in excess of $32 million in drug proceeds from the United States to Mexico. The money laundering organization secured contracts with drug trafficking organizations in Mexico to pick up drug proceeds in cities throughout the United States, including Baltimore; Detroit; Los Angeles; Philadelphia; Boston; Denver; Chicago; New York City and numerous others.
Once the MLO received a contract, it communicated with couriers and bank account holders using burner phones and code phrases to coordinate bulk cash deposits into fictitious funnel business bank accounts, the indictment said. The defendants allegedly served as either couriers and/or funnel bank account holders. The couriers travelled from San Diego to cities throughout the country to receive the bulk cash after using photographs and codes to verify the meeting details. The bulk cash was typically concealed in trash bags, duffel bags, or shoeboxes. After the illicit cash proceeds were deposited into the fictitious funnel bank accounts, the monies were wired to personal bank accounts in Mexico where the money was then dispersed to the drug trafficking organizations.
“Today we have dealt a serious blow to this Imperial Valley-based international money laundering network with ties to the Sinaloa Cartel and the Jalisco New Generation Cartel,” said Acting U.S. Attorney Randy Grossman. “By dismantling this network, the Department of Justice reaffirms its unwavering commitment to bringing to justice those who corrupt our financial systems by laundering their illicit proceeds.” Grossman commended the prosecution team at the U.S. Attorney’s Office and our law enforcement partners with Homeland Security Investigations (HSI), Drug Enforcement Administration (DEA), and Internal Revenue Service (IRS) Criminal Investigation Division, for their excellent work on this case.
“This complex financial investigation is a perfect example of the unrelenting focus shown by HSI and its partners in the Costa Pacifico Money Laundering Task Force to stop criminal organizations attempting to launder illicit narco dollars,” said HSI San Diego Special Agent in Charge Chad Plantz. “The key to dismantling Drug Trafficking Organizations is disrupting the flow of illicit funds and attacking the money laundering element of the organizations. HSI will continue to work with its fellow law enforcement partners to protect U.S. financial infrastructure and use our comprehensive investigative authorities to stop criminal organizations engaged in drug trafficking and money laundering.”
Acting U.S. Attorney Grossman also praised federal, state, and local law enforcement for the coordinated team effort in the culmination of this investigation. Agents and officers from the United States Marshals Service, Customs and Border Protection, San Diego Sheriff’s Department, and state and local law enforcement from the Imperial Valley area also provided vital assistance for the investigation. Additionally, this investigation was conducted with support from the Treasury Executive Office for Asset Forfeiture (TEOAF) Third-Party Money Laundering (3PML) program and the High Intensity Drug Trafficking Area program.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. This case was led by the HSI Costa Pacifico Money Laundering Task Force (CPTF), the DEA, and the IRS - Criminal Investigation. The CPTF is a cooperative partnership of federal, state and local law enforcement agencies focusing on domestic and transnational criminal organizations seeking to cleanse and conceal narcotics proceeds via bulk cash smuggling or through national and international financial systems.
An indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
DEFENDANTS Case Number 21cr2546-GPC
Ricardo VALENZUELA-Gale Age: 25 Mexicali, Mexico
David DURAN-Rivera Age: 35 BOP Custody
Gerardo SILVAS Age: 33 Mexicali, Mexico (BOP Custody)
Jose Luis VARGAS-Espinosa Age: 30 BOP Custody
Robert ANZALDO Age: 28 Mexicali, Mexico
Diana Brenda RODRIGUEZ-Sandez Age: 23 Mexicali, Mexico
Christian FERNANDEZ Age: 29 Mexicali, Mexico
Julia Vianney SUAZO-Quirino Age: 23 Mexicali, Mexico
Adrian Rosett VELASQUEZ Age: 23 Mexicali, Mexico
Shantal MACIEL Age: 34 Mexicali, Mexico
Cesar Enrique CANTU Age: 29 Unknown
Nessie Aizu Age: 28 Mexicali, Mexico
Alejandro CABRERA-Herrera Age: 21 Unknown
Adriana Elizabeth VALENZUELA-Gale Age: 28 Mexicali, Mexico
Axel GUADALUPE Age: 20 Unknown
Fidel Alejandro ZAMARANO-Bernal Age: 33 Unknown
Derian SERVIN-Diaz Age: 25 Unknown
Erik D. GALAVIZ Age: 30 Mexicali, Mexico
SUMMARY OF CHARGES
Conspiracy to Launder Monetary Instruments (18 U.S.C. §§ 1956(a)(1) and (h))
Maximum Penalties: Twenty years in prison, $500,000 fine or twice the value of the monetary instrument or funds involved.
AGENCIES
Homeland Security Investigations
Drug Enforcement Administration, Narcotics Task Force
Internal Revenue Service - Criminal Investigation
Customs and Border Protection, Office of Field Operations
San Diego Sheriff’s Department