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Monday 15 November 2021
Huntington Man Pleads Guilty to Federal Gun CrimeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pleaded guilty today to a federal gun crime.
According to court documents and statements made in court, on May 18, 2019, a law enforcement officer responded to a reported drug complaint at a residence on 23rd Street in Huntington. Upon leaving the residence, the officer came across Franklin Delano Chafin, 31, who had been riding a bicycle and wearing a backpack. The officer and Chafin spoke, at which time the defendant refused to keep his hand out of his pocket. Chafin then admitted that he had needles on him that he wasn’t supposed to have because he was on probation. Chafin further admitted that there was a gun in his backpack. The officer searched the backpack and recovered a loaded .357 Magnum Ruger revolver. Chafin is prohibited from possessing a firearm due to his 2009 felony convictions for robbery in the 1st degree in Wayne County Circuit Court and burglary in Cabell County Circuit Court.
Chafin pleaded guilty to being a felon in possession of a firearm and he faces up to 10 years in prison when sentenced on February 28, 2022.
United States Attorney William S. Thompson made the announcement and commended the investigative efforts of the Huntington Police Department and the Huntington Violent Crime and Drug Task Force.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Ryan A. Keefe is handling the prosecution.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:19-cr-00200.
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Huntington Man Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pleaded guilty today to a federal drug crime.
According to court documents and statements made in court, on February 28, 2019, law enforcement officers conducted a controlled buy of heroin from Eric Mashawn McNeely, Jr., 30, on 8th Avenue in Huntington. The suspected heroin was sent to the West Virginia State Police Lab, which confirmed that the substance was 2.97 grams of heroin with the presence of fentanyl.
McNeely pleaded guilty to distribution of heroin and faces up to 20 years in prison when sentenced on February 28, 2022.
United States Attorney William S. Thompson made the announcement and commended the investigative efforts of the Huntington Violent Crime and Drug Task Force and the Huntington Police Department.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Ryan A. Keefe is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00122.
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Hudson Valley Tequila Producer Pleads Guilty to Securities Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that JOSEPH CIMINO, the founder of a tequila brand based in the Hudson Valley, pled guilty today to securities and wire fraud charges before U.S. District Judge Vincent Briccetti. CIMINO admitted as part of his plea that he fraudulently solicited investments for his company.
U.S. Attorney Damian Williams stated: “As he admitted in court today, Joseph Cimino lied about his tequila business’s finances to lure investors and then diverted investor funds in order to line his own pockets. Now Cimino awaits sentencing for his fraudulent conduct.”
According to court documents and statements in court, from in or about 2014 to 2018, CIMINO raised approximately $935,000 from at least 25 investors based on fraudulent representations. To attract investors, CIMINO falsely inflated the amount of capital that he had raised from prior investors, and falsely described as investors several individuals who, in fact, had not contributed any funds. CIMINO also falsely inflated his company’s sales. For example, in July 2017, CIMINO claimed in an investor report that year-to-date sales totaled 3,410 cases of tequila, when the actual sales totaled only 350 cases. Similarly, in October 2017, CIMINO falsely claimed that year-to-date sales totaled 6,035 cases, which was approximately five times the actual total. CIMINO further claimed in October 2017 that his company would receive reimbursement for 800 cases of tequila supposedly destroyed at a Puerto Rican warehouse as a result of Hurricane Maria. In reality, no inventory was destroyed in the hurricane, and the company lacked insurance.
CIMINO also misused a substantial portion of investor money that was intended to fund the operations of his tequila business for personal expenses. For example, from 2014 to 2018, CIMINO transferred approximately $472,000 of investor money to his personal bank account in order to subsidize his food, entertainment, and other living expenses.
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CIMINO, 57, of Warwick, New York, pled guilty to one count of securities fraud and one count of wire fraud, each of which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
CIMINO is scheduled to be sentenced by Judge Briccetti on February 18, 2022, at 2:30 p.m.
Mr. Williams praised the investigative work of the Federal Bureau of Investigation. He also thanked the U.S. Securities and Exchange Commission for its assistance in the investigation.
This case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys Benjamin A. Gianforti and Daniel Loss are in charge of the prosecution.
Honeywell and Others to Fund Restoration of Natural Resources and Conserve Natural Habitat Along the Buffalo River in Buffalo, New YorkRead the Press Release
Under a proposed settlement to resolve liability for natural resource damages, Honeywell International Inc. and others have agreed to a settlement with a value of approximately $6.25 million to restore natural resources and their services, and to preserve, in perpetuity, over more than 70 acres of natural undeveloped habitat along the Buffalo River in Buffalo, New York. The proposed settlement, which was filed under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA, or Superfund), will, if approved by the court, benefit the entire city of Buffalo community, including low-income and Black, Indigenous and minority neighborhoods historically overburdened by environmental pollution.
Today’s action was filed by the Department of Justice on behalf of the U.S. Department of the Interior’s Fish and Wildlife Service, the State of New York on behalf of the New York State Department of Environmental Conservation (DEC) and the Tuscarora Nation, as trustees for the natural resources that were harmed by the release of hazardous substances into the Buffalo River. The complaint alleges that Honeywell is the successor to Allied Chemical Corp./Buffalo Color Corp., which manufactured dyestuffs and/or organic chemicals at a facility along the River, and discharged process and cooling waters containing hazardous substances into the River from the mid-1960s to the early 1970s. As part of the proposed settlement, Honeywell entered into separate agreements with ten other entities that were also allegedly responsible for releasing hazardous substances into the River. These hazardous substances caused injuries to natural and cultural resources in and along the Buffalo River, such as migratory birds, fish and mammals, as well as the sediment and groundwater.
“The Justice Department is committed to working with state and Tribal partners to restore and preserve natural resources and their services for the benefit of the public, including low-income and minority communities,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The proposed settlement shows how we will strive to promote environmental justice in holding polluters to account.”
“This settlement is a favorable result that provides for substantial restoration work in the area surrounding the Buffalo River,” said U.S. Attorney Trini E. Ross of the Western District of New York. “The proposed natural resource restoration projects will enhance access to the Buffalo River and the natural habitat for the use and enjoyment of everyone in the community.”
“The settlement will preserve the remaining natural habitat along the Buffalo River, within the urban environment of the City of Buffalo, providing benefits for migratory birds that use the adjacent Niagara River, an Important Bird Area and Ramsar designated wetland,” said Regional Director Wendi Weber of the North Atlantic-Appalachian Region for the U. S. Fish and Wildlife Service. “It will also enhance recreational opportunities and provide local communities with greater access to the river, helping to connect people to nature.”
“Today’s announcement is the hard-earned result of years of advocacy and scientific investigation conducted by New York State, our federal partners and the Tuscarora Nation to hold the responsible parties accountable for decades of pollution that contaminated the Buffalo River,” said DEC Commissioner Basil Seggos. “We look forward to continuing to work together with our federal, Nation, and local partners to support the ongoing transformation of the city of Buffalo and continue our work reconnecting New Yorkers to a cleaner, healthier Buffalo River.”
The settlement will restore native species on over 70 acres of land that will be preserved in perpetuity in its undeveloped condition along the Buffalo River in an otherwise predominantly urban environment. Public access will also be provided to a portion of the City Ship Canal, allowing for recreational fishing from the shoreline. The conservation of the undeveloped land along the River, including portions of the Ship Canal, Concrete Central and Houghton Park, is valued at approximately $2 million. The conservation portion of the proposed settlement will provide increased habitat and natural aesthetic value, and additional trails for public use.
The settlement also includes the payment of $4.25 million for proposed natural resource restoration projects to create natural habitat and access to the River for the use and enjoyment of the public, including local low-income and minority community members. A portion of the recovery will also be used to fund cultural and ecological restoration programs on behalf of Tuscarora Nation. The trustees are engaged in joint restoration planning efforts, including through a proposed restoration plan that is currently subject to public comment. The draft restoration plan is available for review at: https://www.fws.gov/northeast/nyfo/ec/files/buffalo/DRAFT_Buffalo_River_Restoration_Plan_Environmental_Assessment_September_2019.pdf
The proposed settlement has been lodged in the U.S. District Court, Western District of New York, and is subject to a public comment period and final court approval. The consent decree can be viewed at the Department of Justice website: www.justice.gov/enrd/Consent_Decrees.html.
Harrison County man admits to firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Mark Allen Craig, II, of Lumberport, West Virginia, has admitted to a firearms charge, United States Attorney William J. Ihlenfeld, II announced.
Craig, 32, pleaded guilty to one count of “Unlawful Possession of Firearm.” Craig, a person prohibited from having a firearm because of prior convictions, admitted to having a .38 S&W Special caliber revolver in December 2020 in Harrison County.
Craig is facing 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 Sarah E. Wagner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Harrison County Sheriff’s Office investigated.
U.S. District Judge Thomas S. Kleeh presided.
Former Toledo Physician Sentenced for Sex Trafficking and Drugging VictimsRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that Manish Raj Gupta, 50, of Sylvania, Ohio, was sentenced today by Judge James G. Carr to more than 19 years in prison after Gupta, a former Toledo-area physician, pleaded guilty to sex trafficking by force, fraud or coercion and illegally dispensing a controlled substance. Gupta was sentenced to 235 months and ordered to pay a fine of $250,000 and over $57,000 in restitution.
"Mr. Gupta meticulously planned his attacks, including which controlled substances to pull from his medical office so that he could incapacitate vulnerable women and record his sexual assaults," said Acting U.S. Attorney Bridget M. Brennan. "The brave women who spoke out, along with the dedicated work of the FBI and prosecutors assigned to this case, ensured that Mr. Gupta was brought to justice and will no longer be a threat to women.'
"The FBI is pleased with the lengthy sentence given today to Manish Gupta for his heinous criminal behavior," said FBI Special Agent in Charge Eric B. Smith. "He took advantage of these females and turned them into victims of sexual abuse. Gupta's incarceration may pave the way for other victims to come forward. The FBI encourages anyone that was sexually victimized by Manish Gupta to please contact the FBI at 1-877-FBI-OHIO."
As set out in court documents, Gupta was a plastic surgeon and business owner of three surgery centers located in the city of Toledo, the city of Oregon and the Southern Michigan area. As a licensed doctor, Gupta was authorized to prescribe controlled substances within the course of his medical practice and for legitimate purposes.
According to court documents, Gupta traveled to medical conferences in large urban areas, including Chicago in March and April of 2013, Cleveland in April of 2013, Miami/Ft. Lauderdale in June of 2015 and July 2019, Los Angeles in September of 2016 and various other dates in San Francisco and Detroit.
Gupta would often stay at a centrally located hotel in these cities, hire escorts in the area and administer incapacitating drugs in order to commit sexual acts of violence without consent.
Gupta often recorded these assaults and, prior to his travel, would ship a bag described in court documents as a "rape bag," containing drugs and recording equipment, to the hotel where he was staying.
In August of 2016, court documents state that Gupta began corresponding online with Victim #1, an individual he intended to hire for sexual activity prior to planned travel to Los Angeles. On September 23, 2016, Gupta met with the victim at the hotel where he was staying, administered an incapacitating controlled substance, performed sexual acts of violence and recorded the assault.
On March 6, 2020, FBI agents executed a federal search warrant at one of Gupta's plastic surgery centers in Toledo. During the search, agents obtained numerous items, including controlled substances, sedatives, recording equipment and video recording memory cards, one of which contained a recording of Gupta committing sexual assault. Agents later discovered 61 different videos of Gupta committing sex acts of violence on at least 20 different unconscious women, including Victim #1.
This case was investigated by the Federal Bureau of Investigation, Toledo Resident Agency. This case was prosecuted by Assistant United States Attorneys Tracey Ballard Tangeman and Carol M. Skutnik.
Former Metro Elementary School Employee Pleads Guilty to Producing Child Pornography Using a Student and to Possession of Child PornographyRead the Press Release
OKLAHOMA CITY — Today, GREG ALLEN HENKE, 41, of Oklahoma City, pleaded guilty to sexual exploitation of a child and to possession of child pornography, announced Acting U.S. Attorney Robert J. Troester.
On May 13, 2021, FBI agents arrested Henke in Oklahoma City after he met with an undercover agent to attempt to engage in sexual activities with children. He has been in federal custody since his arrest. Prior to his arrest, Henke was employed at Highland Park Elementary School in the Mid-Del school district.
On June 1, 2021, a federal grand jury returned an Indictment against Henke, charging him with attempted receipt of child pornography and attempted coercion and enticement of a minor. That Indictment alleged that on or about May 10, 2021, Henke knowingly attempted to receive child pornography using a means and facility of interstate and foreign commerce. The Indictment further alleged that, between April 1, 2021 and about May 13, 2021, Henke used a cell phone and the internet to attempt to persuade, induce, entice, and coerce a minor to engage in sexual activity.
On September 7, 2021, a federal grand jury returned a Superseding Indictment against Henke. The Superseding Indictment added to the original Indictment one charge of possession of material containing child pornography and two charges of production of child pornography. Specifically, the Superseding Indictment alleges that between 2019 and 2021, Henke used two minor students at Highland Park Elementary School to engage in sexually explicit conduct. The Superseding Indictment alleged that Henke used his cell phone to capture the sexually explicit conduct.
At a plea hearing today, Henke pleaded guilty to one count of producing child pornography using a student, while he was a paraprofessional at Highland Park Elementary School. Henke also pleaded guilty to possessing child pornography on several electronic devices. As part of a plea agreement, the United States agreed to dismiss at sentencing the remaining charges.
At sentencing, which is anticipated to take place in about 90 days, Henke faces a maximum penalty of 50 years in federal prison, in addition to a term of supervised release for not less than five years and up to life. The plea of guilty to producing child pornography carries a mandatory minimum term of 15 years in federal prison.
This case is the result of an investigation by the Federal Bureau of Investigation - Oklahoma City Field Division. Assistant U.S. Attorney Bow Bottomly is prosecuting the case.
This case is part of Project Safe Childhood, a nationwide initiative by the Department of Justice (DOJ) to combat child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the DOJ 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.
Reference is made to public records for more information.
Former East Hartford Resident Admits Making Cell Phone Videos of Him Sexually Assaulting a ChildRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that SAEED MUSTAPHA MOUSSA, 31, a citizen of Ghana last residing in East Hartford, waived his right to be indicted and pleaded guilty today before U.S. District Judge Sarah A. L. Merriam in New Haven to a child exploitation offense related to his sexual assault of a minor.
According to court documents and statements made in court, in September 2020, East Hartford Police received a report that Moussa’s cell phone contained videos of Moussa engaging in sexual activity with a young child. East Hartford Police subsequently conducted a court-authorized search of Moussa’s residence and seized Moussa’s cell phone, computer equipment and computer storage media. Investigators also executed a search warrant on Google for the contents of Moussa’s Google Photos account. The cell phone and Google Photos account contained videos, taken between 2018 and 2020, of Moussa sexually assaulting a girl who was under the age of 12.
Moussa pleaded guilty to one count of production of child pornography, an offense that carries a mandatory minimum term of imprisonment of 15 years and maximum term of imprisonment of 30 years. Judge Merriam scheduled sentencing for February 7, 2022.
Moussa has been detained since his arrest on related state charges on October 27, 2020.
This matter has been investigated by Homeland Security Investigations (HSI), the East Hartford Police Department and the West Chester Township (Ohio) Police Department. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
Acting U.S. Attorney Boyle thanked the Hartford State’s Attorney’s Office for its cooperation in the investigation and prosecution of this case.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Former CEO of Publicly Traded Houston Company Sentenced to Three Years in Prison for Accounting Fraud and Misappropriation SchemesRead the Press Release
Damian Williams, the United State Attorney for the Southern District of New York, announced today that JEFFREY HASTINGS, the former Chief Executive Officer and Chairman of the Board of Directors of SAExploration Holdings, Inc. (“SAEX” or the “Company”), a publicly traded seismic data company based in Houston, Texas, was sentenced today in Manhattan federal court to three years in prison for his role in a scheme to fraudulently and materially inflate the publicly reported revenue of SAEX by tens of millions of dollars, in 2015 and 2016, and also for misappropriating millions of dollars from the Company. On August 13, 2021 HASTINGS pled guilty before U.S. District Judge Gregory H. Woods, who imposed today’s sentence.
According to the Superseding Information, the Superseding Indictment, and the Complaint filed in this case, and statements made in connection with sentencing:
At all times relevant to the Information until August 2016, HASTINGS was the Executive Chairman of the Board of Directors of SAEX (the “Board”). After August 2016, HASTINGS served as both the Chairman of the Board and the Chief Executive Officer (“CEO”) of SAEX until he separated from the company in August 2019. SAEX was a publicly-traded seismic data acquisition company headquartered in Houston, Texas, that traded under the symbol “SAEX” on the NASDAQ. In May 2020, SAEX was delisted from the NASDAQ and, in December 2020, was taken private. SAEX provided land and marine-based seismic acquisition services including program design, planning and permitting, camp services, survey, drilling, recording and processing. Seismic data is used by oil and gas companies to identify and analyze drilling prospects and maximize successful drilling.
From February 2015 through May 2019, HASTINGS, together with Brent Whiteley, the then Chief Financial Officer and General Counsel of SAEX; Michael Scott, the then Executive Vice President of Operations at SAEX; and the founder, and at various times the President, CEO, and Chief Operating Officer of SAEX (“CC-1”), devised and carried out a scheme to defraud SAEX’s shareholders, bondholders, and the investing public by artificially and materially inflating SAEX’s reported revenue by making it appear that Alaskan Seismic Ventures, LLC (“ASV”) was an independent and reliable source of tens of millions of dollars of revenue.
In February 2015, HASTINGS and Whiteley discussed finding a way for SAEX to take advantage of certain tax credits offered by the State of Alaska to seismic data library companies, to offset the costs of exploring for oil and gas in Alaska (the “Alaska Tax Credits”). The Board of SAEX was opposed to operating its own data library company because of concerns about the ability to ensure payment to SAEX, including through the monetization of Alaska Tax Credits, among other reasons. To avoid the appearance that SAEX was operating a data library company that licensed data to third parties, HASTINGS and Whiteley set up ASV, to purport to operate as an independent customer purchasing seismic data from SAEX and licensing it to third parties. HASTINGS recruited an acquaintance to serve as the owner and sole employee of ASV. In truth and in fact, and as hidden from investors, ASV was not independent and could not pay SAEX for its seismic data.
After setting up ASV, HASTINGS and Whiteley created and caused to be created a number of shell companies (the “Shell Companies”) for the purpose of secretly transferring funds from SAEX into ASV. One of the Shell Companies, Global Equipment Solutions (“Global Equipment”), was purportedly an equipment rental company from which SAEX rented seismic acquisition equipment. In truth and in fact, and as HASTINGS and his co-conspirators well knew, SAEX did not rent any equipment from Global Equipment and did not owe Global Equipment any money. The co-conspirators took steps to make the payments from SAEX to Global Equipment appear legitimate to others at SAEX; for example, Whiteley drafted a lease agreement between SAEX and Global Equipment, and Scott caused fake purchase orders to be created that purported to show expenses incurred by SAEX as a result of renting equipment from Global Equipment.
By the end of 2015, SAEX had recorded on its books approximately $12 million in payables to Global Equipment. HASTINGS and his co-conspirators ultimately routed approximately $5.8 million of SAEX’s funds through Global Equipment, and the other Shell Companies, to ASV. That money then went from ASV back to SAEX to pay outstanding receivables. The fact that these funds belonged to and originated with SAEX was not disclosed to investors. HASTINGS and his co-conspirators referred to this portion of the scheme as “round-tripping.” In addition, HASTINGS and Whiteley then misappropriated more than $5 million of the funds that SAEX transferred to Global Equipment for their own use, including making payments to Scott and CC-1, among others.
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In addition to his prison term, HASTINGS, 63, of Anchorage, Alaska and British Columbia, Canada, was sentenced to two years of supervised release and ordered to pay a forfeiture money judgment in the amount of $590,807. Judge Woods deferred determination of restitution for 90 days.
Two co-defendants – Brent Whiteley and Michael Scott – have already pled guilty and await sentencing before Judge Woods.
Mr. Williams praised the investigative work of the Federal Bureau of Investigation and thanked the Securities and Exchange Commission, which brought a separate civil action.
The case is being handled by the Office’s Securities and Commodities Fraud Unit. Assistant U.S. Attorneys Christine I. Magdo and Gina Castellano are in charge of the prosecution.
Federal Jury Convicts Former Arnold Resident of Possessing Fentanyl and HeroinRead the Press Release
PITTSBURGH, PA – After deliberating for more than three hours on Friday, November 12, 2021, a federal jury of nine women and three men found Kevin Watson guilty of one count of possession with intent to distribute 400 grams or more of fentanyl and 100 grams or more of heroin, Acting United States Attorney Stephen R. Kaufman announced today.
Watson, aged 32, formerly of Arnold, Pennsylvania, was tried before Senior United States District Judge Donetta Ambrose in Pittsburgh, Pennsylvania.
According to Assistant United States Attorney Brian Czarnecki, who prosecuted the case, the evidence presented over four days of trial proved that on or about April 26, 2019, Watson possessed with intent to distribute approximately 14,980 servings of heroin and fentanyl contained in bags stamped with “Blue Magic.” The bags were packaged in groups of fifty stampbags known as bricks, and then placed into six-gallon sized bags, each containing 50 bricks. Watson had five of the gallon sized bags in a box surround by wrapping paper in the trunk of his car. The other gallon sized bag was in a grocery bag, also in the trunk of his car.
Pennsylvania State Police found the drugs during a search of Watson’s car on April 29, 2019, which was impounded at the Police Barracks in Kittanning following a traffic stop on April 26, 2019. The traffic stop occurred on Route 28 northbound. Watson was originally pulled over overly tinted windows. Troopers noticed a four-year-old child in the back seat, and what started as a routine traffic stop turned into a highspeed pursuit after Watson fled the scene. Watson reached speeds of 115 miles per hour before exiting Route 28 at the Tarentum exit. Watson attempted to negotiate a righthand turn, but he lost control of the car and crashed into a utility pole.
After Watson crashed his car, he fled on foot, leaving the child in the car. Two troopers caught up to Watson and arrested him. Meanwhile another trooper secured the child from the backseat of Watson’s car. Watson was life flighted to Allegheny General Hospital due to injuries sustained from the crash, but the four-year-old child did not suffer serious injuries.
Expert witnesses at trial testified that the total weight of the heroin/fentanyl possessed by Watson was approximately 480 grams and the drugs had a street value in 2019 of around $100,000.
Judge Ambrose will issue an order scheduling the date and time for sentencing. The law provides for a sentence of no less than 10 years imprisonment to a maximum of life and a fine not to exceed $10,000,000. The sentence may be increased if Watson has prior drug trafficking convictions. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the and the prior criminal history, if any, of the defendant.
The Pennsylvania State Police and the Drug Enforcement Administration conducted the investigation that led to the prosecution of Watson.
Federal Grand Jury Indicts Two for Child Exploitation Offenses as a Result of Undercover Law Enforcement Operation in OwensboroRead the Press Release
BOWLING GREEN, KY – A federal grand jury in Bowling Green returned two indictments on November 10, 2021, charging a Utica, Kentucky man and a Georgetown, Indiana man with federal child exploitation offenses. The charges were announced by Michael A. Bennett, Acting United States Attorney, Western District of Kentucky, Kentucky Attorney General Daniel Cameron, and United States Secret Service Special Agent in Charge Robert Holman of the Louisville Field Office.
The charges were the result of a joint federal, state, and local operation called Operation Angel, aimed at making federal arrests of individuals who prey upon children in the Owensboro area. The operation was headed by the United States Secret Service and included the United States Attorney’s Office for the Western District of Kentucky, the Kentucky Office of the Attorney General, the Kentucky State Police, and the Owensboro Police Department.
According to court documents, 41-year-old Timothy Richard Simone, of Utica, is charged with attempted enticement of a minor and attempted transfer of obscene material to a minor. He faces not less than 10 years’ imprisonment for the enticement charge, and not more than 10 years’ imprisonment for the obscenity charge. The maximum penalty Simone faces is life imprisonment.
Bradley Linderman, 34, of Georgetown, Indiana, is also charged with travelling across state lines with intent to engage in illicit sexual conduct with a minor, attempted enticement of a minor, and attempted transfer of obscene material to a minor. He faces not less than 10 years’ imprisonment for the enticement charge, not more than 30 years’ imprisonment for the charge of interstate travel to engage in illicit sexual conduct with a minor, and not more than 10 years’ imprisonment for the obscenity charge. The maximum penalty Linderman faces is life imprisonment.
If convicted, a federal district court judge will determine any sentence imposed upon Simone and Linderman after considering the U.S. Sentencing Guidelines and other statutory factors.
Simone and Linderman are scheduled to be arraigned in Owensboro on November 23, 2021, before U.S. Magistrate Judge H. Brent Brennenstuhl of the U.S. District Court for the Western District of Kentucky.
The United States Secret Service, Kentucky Office of the Attorney General, Kentucky State Police, and the Owensboro Police Department are investigating the cases.
Assistant U.S. Attorney A. Spencer McKiness is prosecuting the cases.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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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.
Fargo, ND, Woman Sentenced to Federal Prison for a String of Violent Federal RobberiesRead the Press Release
FARGO - Acting United States Attorney Nicholas W. Chase announced that U.S. District Court Chief Judge Peter D. Welte sentenced Harleigh Josette Haugen, age 20, Fargo, ND, to 45 months in federal prison for Conspiracy to Commit Robbery and Robbery. Chief Judge Welte also sentenced Haugen to 3 years supervised release and a $100.00 Special Assessment.
Investigation revealed that from May and continuing through June 2019, Haugen and Jordan Daniel Kraft, age 21, Fargo, ND, conspired with a group of young males and females to rob customers of commercial sex. Haugen, Kraft and others posted advertisements on "Skip the Games" promoting prostitution with adult women. The defendants sought to take advantage of a group of commercial sex customers whom they believed would be unwilling to go to law enforcement if they were robbed. The defendants arranged to meet the victims in their private residences and in local apartments controlled by the defendants. Using dangerous weapons, the defendants robbed the commercial sex customers by threats of force and violence, and in some instances the victims were physically assaulted by the defendants before they were robbed.
"This case and sentencings sends a strong message that violent crime in our community will not be tolerated," said Acting United States Attorney Nick Chase, "and the US Attorney’s Office, along with our local, state and federal law enforcement partners will aggressively pursue efforts through the Department of Justice’s Project Safe Neighborhood program to reduce violent crime and eliminate brutal criminals from our community."
"We encourage anyone who is a victim of a crime to report it and allow law enforcement officials to investigate, no matter the circumstances," said Acting Special Agent in Charge Jamie Holt, of HSI St. Paul. "Individuals engaged in violent criminal activity in our communities will be prosecuted to the fullest extent of the law and brought to justice."
Several of Haugen’s co-defendants were indicted in North Dakota and pleaded guilty:
• JORDAN DANIEL KRAFT, age 21, Fargo, ND: Plead guilty to One Count Conspiracy to Commit Robbery and Robbery, pending sentencing.
• SHELTON LEE MOSEBY, IV, age 19, Fargo, ND: Plead guilty to One Count of Interfere with Commerce by Threats and Violence – Hobbs Act Robbery, sentenced to 51 months in federal prison, followed by 3 years supervised release.
• TEAJAHA SHANETTE LAYSHA GRANDER, age 24, Fargo, ND: Plead guilty to One Count of Interfere with Commerce by Threats and Violence – Hobbs Act Robbery, sentenced to 24 months in federal prison, followed by 3 years supervised release.
• TATYANNA DESHUAN GRANDER, age 21, Fargo, ND: Plead guilty to One Count of Interfere with Commerce by Threats and Violence – Hobbs Act Robbery, sentenced to 30 months in federal prison, followed by 3 years supervised release.
• TEON TYRIK BERRY, age 19, Fargo, ND: Plead guilty to One Count of Interfere with Commerce by Threats and Violence – Hobbs Act Robbery, sentenced to 57 months in federal prison, followed by 3 years supervised release.
• ZACHARY RONZELL MITCHELL, age 19, Fargo, ND: Plead guilty to One Count of Interfere with Commerce by Threats and Violence – Hobbs Act Robbery, pending sentencing.
• JACOBY RASHAWN LEE, age 19, Fargo, ND: Plead guilty to One Count of Interference with Commerce by Threats or Violence—Hobbs Act Robbery, sentenced to 84 months in federal prison, followed by 3 years supervised release..
This case was investigated by the Fargo Police Department and the Homeland Security Investigation and the case was prosecuted by the United States Attorney’s office, with Assistant United States Attorney Jennifer Puhl assigned to the case.
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El Departamento de Justicia Llega a un Acuerdo con una Compañía de Fabricación de Hieleras que Resuelve unas Denuncias de Discriminación Relacionada con la InmigraciónRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con Igloo Products Corp., una compañía que fabrica hieleras, jarras y productos de hidratación con sede en Katy, Texas. El acuerdo resuelve las acusaciones del Departamento de que Igloo no consideró a trabajadores en los Estados Unidos (tales como ciudadanos de los EE. UU., asilados, refugiados y residentes permanentes legales recientes) para ciertos trabajos porque la compañía los había reservado para trabajadores con visas laborales temporales.
La investigación del Departamento concluyó que Igloo no consideró a postulantes en los Estados Unidos para puestos como asistentes de producción estacional porque la compañía supuso que trabajadores en este país no estarían interesados en empleo estacional temporal. En su lugar, Igloo reservó sus puestos de asistentes de producción estacional para trabajadores con visas H2-B, con base en su estatus migratorio. Conforme la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés), los empleadores no pueden, por norma general, discriminar a trabajadores por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen en ningún momento durante el proceso de contratación. Asimismo, el Departamento de Trabajo requiere que cualquier empleador que pida permiso para contratar a trabajadores H-2B contrate primero a todos los trabajadores cualificados y disponibles en este país que soliciten un puesto antes de la fecha límite relevante.
«A los empleadores no se les permite favorecer a trabajadores con visas temporales y hacer caso omiso de solicitudes provenientes de trabajadores cualificados en este país por motivos de suposiciones basadas en el estatus migratorio o la ciudadanía», afirmó Kristen Clarke, la Fiscal Federal Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «El Departamento de Justicia no tolerará discriminación ilícita en el empleo y está comprometido a hacer a cualquier infractor rendir cuentas».
Conforme los términos del acuerdo conciliatorio, Igloo pagará $21,000 a los Estados Unidos por concepto de sanciones civiles y pondrá $40,000 a la disponibilidad de víctimas de discriminación elegibles. Por otra parte, Igloo cambiará sus políticas y procedimientos para que estos cumplan con la disposición antidiscriminatoria de la INA, capacitará a sus empleados en cuanto a los requisitos de la ley, en el futuro realizará esfuerzos adicionales de reclutamiento antes de buscar a trabajadores con visas H2-B y será supervisado durante un período de tres años para garantizar que la compañía esté cumpliendo con el acuerdo.
La Sección de Derechos de Inmigrantes y Empleados de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. La ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión, prácticas documentales injustas y represalias e intimidación.
Para aprender más sobre la labor de la IER y cómo conseguir ayuda, vea este vídeo corto. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su estatus de ciudadanía o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1‑800-255-7688; llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1‑800‑237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected]; inscribirse a un seminario en línea gratuito; o visitar la página web de la IER en inglés o español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery.
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Department of Justice Awards over $236,000 for Crime Based ProgramsRead the Press Release
HARRISBURG –Acting U.S. Attorney Bruce D. Brandler announced that the Department of Justice’s Office of Bureau of Justice Assistance (BJA) has awarded over $236,000 of the Edward Byrne Memorial Justice Assistance Grant to the City of Scranton, City of Wilkes-Barre, City of York, and Dauphin County.
These grants are used to support activities to prevent and control crime based on local needs and conditions. Grant funds can be used for local initiatives, technical assistance, training, personnel, equipment, supplies, contractual support, and information systems for criminal justice, including for any one or more of the following program areas: 1) law enforcement programs; 2) prosecution and court programs; 3) prevention and education programs; 4) corrections and community corrections programs; 5) drug treatment and enforcement programs; 6) planning, evaluation, and technology improvement programs; and 7) crime victim and witness programs (other than compensation) and 8) mental health programs and related law enforcement and corrections programs, including behavioral programs and crisis intervention teams. Funded programs or initiatives may include multijurisdictional drug and gang task forces, crime prevention and domestic violence programs, courts, corrections, treatment, justice information sharing initiatives, or other programs aimed at reducing crime and/or enhancing public/officer safety.
- BJA’s grant of $36,915 to the City of Wilkes-Barre will help assign additional officers in high crime/violent crime areas in order to reduce the criminal and violent activity in those areas of the city. Also, these funds will be used for community-based and non-community-based police officer trainings to deal with violent crimes areas of the city. The goal is to increase public safety for citizens while reducing violence and violent crimes.
“This JAG funding enables the Wilkes-Barre Police Department to continue with its plans to provide necessary services to the residents of the City of Wilkes-Barre with the flexibility to prioritize and place funds where they are needed the most,” said City of Wilkes-Barre’s Mayor George C. Brown.
- BJA’s grant of $81,264 to the City of Scranton will help fund the Scranton Police Department’s forty officer part time Civil Disturbance Unit (CDU) with new equipment.
- BJA awarded grant funds in the amount of $62,015 to the City of York. $50,532 was allocated to the York City Police Department to help maintain its technology through the purchase of the annual subscription for Power DMS software. York City Police Department will also provide ten officers with bicycle certification training and purchase various equipment for the department. $11,485 was allocated to York Township to fund partial expenses for Crimewatch and the Cody NIBRS reporting system.
- BJA’s grant of $56,605 to Dauphin County will help fund the Harrisburg victim advocate and police technology project which will ensure crime victim advocates are placed in the Harrisburg City Police Department. Victim advocates will reach out to crime victims and assist throughout the victim’s time in the criminal justice system. The funds will also be used to fund expenses for Crimewatch and the Cody NIBRS reporting system.
“These grants will address the needs of local communities to fight crime, train police, and increase victim services,” stated Acting U.S. Attorney Brandler. “These are all important goals and I am pleased the Department of Justice can contribute to these worthy causes.”
Convicted Sex Offender Sentenced to Six Years in Federal Prison for Violating Terms of His Supervised ReleaseRead the Press Release
Orlando, FL – U.S. District Judge Carlos E. Mendoza today revoked the supervised release of Jason Moriarty (38, Orlando) and sentenced him to six years in federal prison to be followed by a lifetime term of supervised release. Moriarty was arrested on August 23, 2021, and has been detained pending this final hearing.
Moriarty was found guilty on November 15, 2021.
According to court documents, on July 21, 2004, Moriarty was sentenced to 20 years in federal prison and a lifetime term of supervised release for attempting to receive, receiving, and possessing with the intent to sell material containing images of children being sexually abused, attempting to possess and possessing material containing images of child sex abuse, and receiving and possessing with the intent to distribute an obscene image depicting the sexual abuse of a minor. On July 1, 2021, Moriarty began his supervision after his release from federal prison.
On August 13 and 14, 2021, following his release from prison, Moriarty accessed the internet through a computer at the public library, in violation of his supervision terms. During an interview, Moriarty admitted he had accessed the internet and confirmed he took photos using his cellphone which he later deleted. A forensic review of Moriarty’s phone revealed that it contained more than 400 images of child erotica. Several images also depicted children being “kidnapped,” tied up, or bound by duct tape. Moriarty also possessed a photo depicting a kidnapping kit.
This case was investigated by the United States Probation Office and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Beatriz Gonzalez.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Colombian National Convicted After Attempting to Buy 20 Kilograms of Cocaine from Undercover AgentsRead the Press Release
BOSTON – A Colombian national, recently residing in Revere, was convicted by a federal jury today in connection with attempting to purchase 20 kilograms of cocaine from undercover agents.
Jesus Arley Munera-Gomez, 35, was convicted following a week-long trial of one count of attempt to possess with intent to distribute five kilograms or more of cocaine. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for March 16, 2022. Munera-Gomez was indicted in March 2020.
In February 2020, Munera-Gomez arranged to purchase 20 kilograms of cocaine from undercover agents in exchange for $200,000. At the meeting location, Munera-Gomez took a duffle bag from the undercover agents containing 20 kilograms of sham cocaine. He was arrested immediately following the transaction. A subsequent search of Munera-Gomez’s residence resulted in the seizure of approximately $200,000 which was to be used as the down payment for the cocaine.
The charge of attempt to possess with intent to distribute five kilograms or more of cocaine provides for a sentence of at least 10 years and up to a lifetime in prison, at least five years and up to a lifetime of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Assistant U.S. Attorneys Jared C. Dolan and Lauren A. Graber of Mendell’s Narcotics and Money Laundering Unit are prosecuting the case.
Charleston Man Sentenced to More Than Five Years in Federal Prison for Heroin DistributionRead the Press Release
CHARLESTON, W.Va. – Donta Hamilton, 31, of Charleston, was sentenced today to five years and three months in federal prison for the distribution of heroin.
According to court documents and statements made in court, Hamilton admitted that he sold approximately 3.5 grams of heroin to a confidential informant at a Renaissance Circle apartment in Charleston on August 5, 2020.
United States Attorney William S. Thompson made the announcement and commended the investigative work of the Metropolitan Drug Enforcement Network Team (MDENT).
Senior United States District Judge John T. Copenhaver, Jr., imposed the sentence.
Assistant United States Attorney Ryan Blackwell prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-00022.
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Cedar Rapids Man Pleads Guilty to Being a Drug User in Possession of Firearms and AmmunitionRead the Press Release
A drug user who possessed firearms and ammunition pled guilty today in federal court in Cedar Rapids.
Douglas Studer, age 62, from Cedar Rapids, Iowa, was convicted of one count of being a drug user in possession of firearms and ammunition. At the plea hearing, Studer admitted that, on May 17, 2019, he knowingly possessed two pistols and 932 rounds of ammunition while being a user of methamphetamine.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Studer remains free on bond previously set pending sentencing. Studer faces a possible maximum sentence of ten years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Dubuque Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Iowa Division of Criminal Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 21-1027.
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California Man Charged in Scheme Involving over $300,000 in Fraudulent Purchases from Home DepotRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that JONATHAN orPilla SINLAO, age 36, a resident of San Jose, California, was charged on November 12, 2021 in an eight-count indictment arising out of a scheme to make numerous unauthorized credit card purchases at Home Depot stores.
The indictment charges SINLAO with one count of Conspiracy to Commit Access Device Fraud, in violation of Title 18, United States Code, Sections 1029(a)(5) and 1029(b)(2). If convicted of this count, SINLAO faces a maximum term of seven-and-a-half (7.5) years in prison and/or a fine of $250,000.00 or the greater of twice the gross gain to the defendant or twice the gross loss caused by the offense. SINLAO was also charged with seven counts of Access Device Fraud, in violation of Title 18, United States Code, Section 1029(a)(5). If convicted, SINLAO faces, as to each of these seven counts, a maximum term of fifteen (15) years in prison and/or a fine of $250,000.00 or the greater of twice the gross gain to the defendant or twice the gross loss caused by the offense. In addition, SINLAO faces a term of supervised release of up to three (3) years per count after his release from prison. A mandatory special assessment fee of $100 per count is also applicable.
According to Court documents, SINLAO conspired with others to conduct over $300,000 in unauthorized purchases of gift cards and products at Home Depot stores using customers’ Citibank credit card numbers. These transactions occurred between at least February of 2019 and July of 2019 at Home Depot stores in Louisiana, Florida, Texas, Arizona, California, New York, and Oklahoma.
U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the Department of Homeland Security, the Oklahoma City Police Department, and the Jefferson Parish Sheriff’s Office in investigating this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Maria Carboni.
Buffalo Man Pleads Guilty to Selling Butyryl and Furanyl FentanylRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Billy D. Henderson, 42, of Buffalo, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to conspiring to possess with intent to distribute, and distributing, 100 grams or more of butyryl fentanyl and furanyl fentanyl. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life, and a fine of $10,000,000.
Assistant U.S. Attorneys Laura A. Higgins and Charles M. Kruly, who are handling the case, stated that on April 3, 2019, the Erie County Sheriff’s Office and Homeland Security Investigations executed a search warrant at 50 Newton Street in Buffalo, where the defendant lived with his girlfriend and co-defendant Denise Porter. During the search, Henderson and Porter discarded controlled substances out windows of the residence. Subsequently, law enforcement recovered quantities of butyryl fentanyl, furanyl fentanyl, cocaine, fentanyl, and heroin; two digital scales with narcotics residue; a drug press; approximately $7,000 in United States currency; ammunition; and packaging materials for narcotics distribution.
The co-defendant, Denise Porter, was previously convicted and is awaiting sentencing.
The plea is the culmination of an investigation by the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for February 23, 2022, at 10:30 a.m. before Judge Arcara.
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Bank Robber IndictedRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced today that JOSEPH REED, age 35, of New Orleans, Louisiana, was indicted on November 12, 2021 for Bank Robbery in violation of Title 18, United States Code, Section 2113(a).
According to the indictment, on or about October 9, 2021, REED attempted to rob the Chase Bank located on North Broad Street in New Orleans, Louisiana.
If convicted, REED faces up to a maximum of twenty (20) years in the Federal Bureau of Prisons, up to a $250,000 fine, up to three years of supervised release, and a $100 mandatory special assessment fee.
United States Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation’s Violent Crime Task Force, officers with the New Orleans Police Department and the Jefferson Parish Sheriff’s Office. Assistant U.S. Attorney Jon Maestri is handling the prosecution.
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Bahamian Man Sentenced to Five Years in Prison for More Than $1.2 Million Credit Card Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced that KEVIN DION ROLLE, Jr. was sentenced by U.S. District Judge Alison J. Nathan to 60 months in prison for his role in a $1.2 million credit card scheme. ROLLE, Jr. pled guilty before Judge Nathan on August 5, 2021, to one count of wire fraud.
According to the allegations in the Complaint, the Indictment, and other documents filed in federal court, as well as statements made in public court proceedings:
From October 2015 to September 2020, ROLLE participated in what is known by various credit card companies as a “bust-out” scheme whereby the credit card user applies for a credit card and incurs numerous charges with no intention of paying the balance. As part of his multi-year fraud scheme, ROLLE submitted multiple credit card applications to American Express (“Amex”), which often included or were supported by documentation containing false identifying information. Once ROLLE received a credit card, he used the credit card for a short period of time to purchase luxury items, including, among other things, Cartier jewelry and a Bentley.
In total, ROLLE incurred $1,205,318.18 in Amex credit card charges that remain outstanding and collected an $209,500 in insurance proceeds based on a claim for jewelry pieces purchased with the fraudulent Amex credit cards.
On the basis of multiple Court filings, ROLLE admitted in the terms of his plea agreement to obstructing justice. ROLLE made numerous self-serving, false, and/or inconsistent statements to the Court and the United States District Court for the District of Puerto Rico where he was first arrested regarding his personal background, possession of foreign passports, and his purported ties to New York. At the time of his arrest, ROLLE presented an Irish passport, which was later found to have been obtained with a fake United States passport. Additionally, ROLLE purported to be the president of a particular college in The Bahamas—the existence of which was unable to be verified by the FBI.
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In addition to the prison term, ROLLE, 27, of The Bahamas, was ordered to make restitution in the amount of $1,414,818.18 and forfeiture in the amount of $1,504,818.18.
Mr. Williams thanked the FBI Foreign Influence Task Force for their outstanding work.
The case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Emily A. Johnson and Danielle M. Kudla are in charge of the prosecution.
Archdiocese of New Orleans Agrees to Pay More Than $1 Million to Resolve Hurricane Katrina-related False Claims Act AllegationsRead the Press Release
WASHINGTON – The Roman Catholic Archdiocese of New Orleans (“Archdiocese of New Orleans”) has agreed to pay more than $1 million to resolve allegations that it violated the False Claims Act by knowingly submitting false claims for payment to the Federal Emergency Management Agency (FEMA) for the repair or replacement of certain facilities damaged by Hurricane Katrina. The settlement, which is based on the Archdiocese of New Orleans’ financial condition, required final approval of the U.S. Bankruptcy Court for the Eastern District of Louisiana, which approved the settlement on Oct. 26.
“FEMA offers critical financial support when natural disasters strike,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Department of Justice is committed to ensuring that these taxpayer funds are properly spent to help disaster victims rebuild their communities.”
The settlement resolves allegations that, from 2007 through 2013, the Archdiocese of New Orleans knowingly signed certifications for FEMA funding that contained false or fraudulent damage descriptions and repair estimates that were prepared by AECOM, an architecture and engineering firm based in Los Angeles. Among other things, the alleged false descriptions included purported damage to a nonexistent central air conditioning unit and misstated a facility’s square footage.
“Federal disaster funds are an instrumental component in the effort to assist disaster victims with their recovery,” said the U.S. Attorney’s Office for the Eastern District of Louisiana. “The favorable resolution of this False Claims Act matter illustrates the collaborative efforts and firm commitment by our federal partners to use all available remedies to address signs of fraud, waste and abuse.”
“Funds fraudulently obtained from FEMA deprive deserving recipients and communities truly in need,” said Inspector General Dr. Joseph V. Cuffari for Department of Homeland Security Office of Inspector General (DHS OIG). “We appreciate the support of our law enforcement partners, and this outcome is another example of the continuing successful partnership between the Department of Homeland Security Office of Inspector General, the Department of Justice’s Civil Litigation Branch in Washington, DC and the Eastern District of Louisiana’s U.S. Attorney’s Office.”
The settlement resolved allegations originally filed in a lawsuit brought under the qui tam or whistleblower provisions of the False Claims Act by Robert Romero, an AECOM Project Specialist. The False Claims Act permits private parties to file suit on behalf of the United States for false claims and to share in any recovery. The False Claims Act also permits the United States to intervene in such an action, as it did in this case, in part, against AECOM, the Archdiocese of New Orleans, and other disaster relief applicants in June 2020. One of those applicants, Xavier University of Louisiana, previously agreed to pay the United States $12 million to resolve its alleged role in the submission of false and misleading repair estimates prepared on its behalf by AECOM. The lawsuit against AECOM and another disaster relief applicant remains ongoing. As part of its settlement, the Archdiocese of New Orleans agreed to cooperate in the litigation.
The whistleblower lawsuit is captioned United States ex rel. Robert Romero v. AECOM, Inc., et al., No. 16-cv-15092 (E.D. La.). As part of the settlement with the Archdiocese of New Orleans, Mr. Romero received approximately $199,500.
The False Claims Act lawsuit is being handled by the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Eastern District of Louisiana, with assistance from FEMA’s Office of Chief Counsel. Investigative support is being provided by the Department of Homeland Security’s Office of Inspector General, through its Major Fraud and Corruption Unit and New Orleans Resident Office.
The claims alleged in the lawsuit, including those resolved by the Archdiocese of New Orleans, are allegations only, and there has been no determination of liability.
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Archdiocese of New Orleans Agrees to Pay More Than $1 Million to Resolve Hurricane Katrina-related False Claims Act AllegationsRead the Press Release
The Roman Catholic Archdiocese of New Orleans (Archdiocese of New Orleans) has agreed to pay more than $1 million to resolve allegations that it violated the False Claims Act by knowingly submitting false claims for payment to the Federal Emergency Management Agency (FEMA) for the repair or replacement of certain facilities damaged by Hurricane Katrina. The settlement, which is based on the Archdiocese of New Orleans’ financial condition, required final approval of the U.S. Bankruptcy Court for the Eastern District of Louisiana, which approved the settlement on Oct. 26.
“FEMA offers critical financial support when natural disasters strike,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Department of Justice is committed to ensuring that these taxpayer funds are properly spent to help disaster victims rebuild their communities.”
The settlement resolves allegations that, from 2007 through 2013, the Archdiocese of New Orleans knowingly signed certifications for FEMA funding that contained false or fraudulent damage descriptions and repair estimates that were prepared by AECOM, an architecture and engineering firm based in Los Angeles. Among other things, the alleged false descriptions included purported damage to a nonexistent central air conditioning unit and misstated a facility’s square footage.
“Federal disaster funds are an instrumental component in the effort to assist disaster victims with their recovery,” said the U.S. Attorney’s Office for the Eastern District of Louisiana. “The favorable resolution of this False Claims Act matter illustrates the collaborative efforts and firm commitment by our federal partners to use all available remedies to address signs of fraud, waste and abuse.”
“Funds fraudulently obtained from FEMA deprive deserving recipients and communities truly in need,” said Inspector General Dr. Joseph V. Cuffari for Department of Homeland Security Office of Inspector General (DHS OIG). “We appreciate the support of our law enforcement partners, and this outcome is another example of the continuing successful partnership between the Department of Homeland Security Office of Inspector General, the Department of Justice’s Civil Litigation Branch in Washington, DC and the Eastern District of Louisiana’s U.S. Attorney’s Office.”
The settlement resolved allegations originally filed in a lawsuit brought under the qui tam or whistleblower provisions of the False Claims Act by Robert Romero, an AECOM Project Specialist. The False Claims Act permits private parties to file suit on behalf of the United States for false claims and to share in any recovery. The False Claims Act also permits the United States to intervene in such an action, as it did in this case, in part, against AECOM, the Archdiocese of New Orleans, and other disaster relief applicants in June 2020. One of those applicants, Xavier University of Louisiana, previously agreed to pay the United States $12 million to resolve its alleged role in the submission of false and misleading repair estimates prepared on its behalf by AECOM. The lawsuit against AECOM and another disaster relief applicant remains ongoing. As part of its settlement, the Archdiocese of New Orleans agreed to cooperate in the litigation.
The whistleblower lawsuit is captioned United States ex rel. Robert Romero v. AECOM, Inc., et al., No. 16-cv-15092 (E.D. La.). As part of the settlement with the Archdiocese of New Orleans, Mr. Romero received approximately $199,500.
The False Claims Act lawsuit is being handled by the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Eastern District of Louisiana, with assistance from FEMA’s Office of Chief Counsel. Investigative support is being provided by DHS OIG, through its Major Fraud and Corruption Unit and New Orleans Resident Office.
The claims alleged in the lawsuit, including those resolved by the Archdiocese of New Orleans, are allegations only, and there has been no determination of liability.
Acting United States Attorney Nicholas Ganjei Announces Intent to Step Down from Eastern District of Texas LeadershipRead the Press Release
BEAUMONT, Texas – Acting United States Attorney for the Eastern District of Texas Nicholas J. Ganjei announced today that he will be stepping down from the role of Acting United States Attorney effective November 16th.
“The opportunity to serve the American people as Acting United States Attorney was both an awesome responsibility and a tremendous privilege,” said Mr. Ganjei. “I was incredibly fortunate to have such a skilled team of prosecutors and staff by my side, and I could not have asked for more dedicated and professional law enforcement partners. I am tremendously proud of the work we have done and all that we have accomplished. Together, we made a real difference in the lives of the people of East Texas.”
Mr. Ganjei was named the Acting United States Attorney on January 20, 2021, after previously having served as the district’s First Assistant United States Attorney. As Acting United States Attorney, Mr. Ganjei served as the chief federal law enforcement officer for the district, which includes 43 counties, more than four million people, and stretches across 35,000 square miles from the Oklahoma border to the Gulf of Mexico. Mr. Ganjei oversaw a staff of approximately 120 prosecutors, civil litigators, and support personnel across six division offices and was responsible for all federal criminal prosecutions and civil litigation in the district involving the United States. Under his leadership, the Eastern District of Texas advanced a number of Justice Department priorities, from violent crime and cybersecurity to corporate fraud and False Claims Act enforcement. Mr. Ganjei was the first person of color to serve as the United States Attorney (acting or otherwise) in the Eastern District’s 164-year history.
During his tenure, Mr. Ganjei prioritized the prosecution of large-scale drug trafficking organizations, particularly international drug cartels, and oversaw one of the most prolific extradition practices in the nation. Mr. Ganjei’s team successfully extradited, convicted, and obtained a life sentence against a high-ranking member of the Los Zetas cartel who participated in the massacre of an entire Mexican village in 2011; obtained a life sentence against a Guatemalan drug lord who supplied cocaine to cartels and guerilla fighters in Central and South America; and successfully prosecuted an international soccer star for his coordination of bulk drug shipments between Colombia and the United States.
Mr. Ganjei also prioritized the investigation and prosecution of complex frauds and white collar crime and increased the office’s staffing and resources devoted to such cases. Under Mr. Ganjei’s leadership, the Eastern District of Texas obtained a 408-month sentence in a multi-million dollar fraud and money laundering scheme that victimized senior citizens and charities; obtained convictions against multiple individuals in connection with a kickback conspiracy related to genetic testing; obtained a sentence of 84 months for a doctor engaged in health care fraud; successfully prosecuted an engineer who fraudulently sought $13 million in Paycheck Protection Program (PPP) loans; secured a 97-month sentence against a defendant who defrauded an elderly East Texas victim of $4.8 million; successfully prosecuted a wedding planner for fraudulently obtaining more than $3.3 million in PPP loans, and investigated and indicted two defendants for the alleged fraudulent filing of hundreds of Economic Injury Disaster Loan (EIDL) applications.
Mr. Ganjei’s team also obtained bribery convictions against a former Richardson, Texas mayor and her land developer husband; disrupted and prosecuted an enormous international black market operation alleged to have trafficked over $100 million in stolen merchandise; convicted a Texas lawyer who swindled his Colombian drug trafficking clients by claiming he had successfully bribed judges and prosecutors; disrupted and prosecuted an alleged multi-scheme fraud conspiracy charged with stealing $17 million through romance scams and business email compromise; successfully prosecuted a Honduran national who solicited the murder-for-hire of family members; obtained a 30-year sentence against a North Texas pastor for the sexual exploitation of children; and obtained RICO convictions against numerous members of a violent white supremacist prison gang.
On the civil side, the Eastern District of Texas recovered more than $44 million for the American taxpayer through Affirmative Civil Enforcement resolutions. In 2021, the Eastern District of Texas concluded four investigations into individual providers, totaling nearly $1 million, relating to the providers’ improper billing for implantable neurostimulators. Additionally, the Eastern District of Texas obtained resolutions in excess of $500,000 with four individual providers as part of its ongoing investigation into payment of kickbacks to induce referrals of advanced cardiac lab tests.
A hallmark of Mr. Ganjei’s time as Acting United States Attorney was the leveraging of agency and law enforcement partnerships. EDTX teamed with the Special Inspector General for Pandemic Recovery as well as the Department of Justice’s Health Care Fraud Strike Force, Civil Frauds Section, Consumer Protection Section, Antitrust Division, and Civil Rights Division, among others, to combat novel criminal and civil legal challenges.
Prior to serving as Acting United States Attorney, Mr. Ganjei was a career prosecutor who handled all manner of federal crimes, having joined the Department of Justice in 2008. Most recently, Mr. Ganjei investigated and prosecuted fraud, public corruption, and other complex white collar matters. Mr. Ganjei also prosecuted organized crime, narcotics, and human trafficking cases. Before joining the Department, Mr. Ganjei clerked for the Honorable Richard Allen Griffin of the Sixth Circuit Court of Appeals and the Honorable Ralph R. Erickson of the Eighth Circuit Court of Appeals (previously of the United States District Court for the District of North Dakota). Mr. Ganjei has additionally taught on the subjects of civil, criminal, and constitutional law, at both the collegiate and law school level.
Leadership responsibilities will be handed off to Brit Featherston, who presently serves as the district’s Executive Assistant United States Attorney.
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Friday 12 November 2021
Yankton Woman Sentenced to Federal Prison for RobberyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Yankton, South Dakota, woman convicted of Interference with Commerce by Robbery was sentenced on November 5, 2021, by U.S. District Judge Jeffrey L. Viken.
Tristan Hall, age 25, was sentenced to three years in federal prison, followed by two years of supervised release. Hall was also ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The conviction stems from Hall driving a getaway car for two males while they robbed the Quality Inn and Big D at gunpoint in Rapid City, South Dakota, in January 2020.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Rapid City Police Department. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Hall was immediately turned over to the custody of the U.S. Marshals Service.
White River Man Indicted for ArsonRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a White River, South Dakota, man has been indicted by a federal grand jury for Arson.
Gabriel Roubideaux, age 34, was indicted on June 8, 2021. He appeared before U.S. Magistrate Judge Mark A. Moreno on November 5, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on March 16, 2021, in Mellette County, South Dakota, Roubideaux willfully and maliciously set fire to and burned a residence and an outbuilding.
The charges are merely accusations and Roubideaux is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Roubideaux was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Veterans Affairs Hospital Employee Sentenced to Jail Time After Assaulting OfficersRead the Press Release
Memphis, TN – Tiffany Lewis, 39, a former employee of the Veteran’s Affairs Medical Center in Memphis, has been sentenced to 10 months in federal prison for assaulting two VA Police Officers. Acting U.S. Attorney Joseph C. Murphy, Jr., announced the sentence today.
According to information presented in Court, on November 20, 2020, officers of VA Police Services responded to the scene of a disturbance on VA property. Officers observed employee Tiffany Lewis striking another individual. VA police attempted to detain Lewis, but she resisted arrest and struck the arresting officer. After being escorted to a police holding room on VA property, Lewis assaulted another officer by punching the officer in the face.
On August 2, 2021, Lewis pled guilty to two counts of assaulting federal officers.
On November 5, 2021, U.S. Senior District Judge Jon P. McCalla sentenced Lewis to 10 months imprisonment to be followed by one year of supervised release. There is no parole in the federal system.
Kim Lampkins, Special Agent in Charge of the VA Office of Inspector General’s Mid-Atlantic Field Office stated, "This sentence demonstrates the VA Office of Inspector General’s commitment to ensuring of a safe work environment for all VA employees. We will continue to work jointly with the VA Police Service to investigate and prosecute anyone who threatens or assaults VA employees."
This case was investigated by Veterans Affairs Police Services and the Veterans Affairs Office of Inspector General.
Assistant U.S. Attorney Scott Smith prosecuted this case on behalf of the government.
Utah Man Charged with Murder-for-Hire SchemeRead the Press Release
ALBANY, NEW YORK – Christopher Pence, age 41, of Cedar City, Utah, was indicted last week for using the Internet to solicit and pay for the murders of two individuals in Rensselaer County.
The announcement was made by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
According to the indictment and a previously filed criminal complaint, between July 16 and August 9, 2021, Pence used a computer at his residence in Utah to connect to a darknet website that offered the services of “hitmen,” and paid approximately $16,000 in Bitcoin for the murder of two individuals residing in Rensselaer County. The intended victims were not harmed.
The charges in the complaint and indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
The charge filed against Pence carries a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Pence was arrested in Utah on October 27. A magistrate judge in Utah ordered him detained and transferred in custody to the Northern District of New York. His arraignment in Albany federal court will take place at a later date.
This case is being investigated by the FBI and prosecuted by Assistant U.S. Attorney Emmet J. O’Hanlon.
Tioga County Man Charged with Supplemental Security Income Fraud and Aggravated Identity TheftRead the Press Release
SYRACUSE, NEW YORK – An individual indicted under the name John Doe, age unknown, of Owego, New York, was arrested on Wednesday on charges of Supplemental Security Income (SSI) fraud and aggravated identity theft. The charges relate to Doe’s use of the name, Social Security number, and date of birth of another person to apply for and obtain SSI benefits to which he was not entitled, beginning in 1999 and continuing through the present. Doe’s true identity has yet to be confirmed.
The announcement was made by United States Attorney Carla B. Freedman and John F. Grasso, Special Agent in Charge of the Social Security Administration, Office of the Inspector General, New York Field Office.
Doe was arraigned on the indictment in United States District Court in Syracuse, New York and was ordered detained pending trial to be scheduled at a later date.
If convicted of SSI fraud, Doe faces a maximum term of imprisonment of five years, a fine of up to $250,000, and a term of supervised of up to three years. If convicted of aggravated identity theft, Doe faces a mandatory minimum sentence of two years in federal prison. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
This case is being investigated by the Social Security Administration Office of the Inspector General, the Tioga County Sheriff’s Office, and the Tioga County Department of Social Services and is being prosecuted by Special Assistant U.S. Attorney Adrian S. LaRochelle.
Texas Woman Charged for Assault on Flight AttendantRead the Press Release
SAN FRANCISCO – Debby Dutton appeared today in federal court in Houston, Texas, to face the charge filed in San Francisco federal court of interference with an aircraft flight by assault upon a flight attendant, announced Acting United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair. Today’s hearing in Houston federal court initiates the first steps in a procedure to obtain an order directing Dutton to appear to face the charge against her in San Francisco federal court.
According to the complaint, Dutton, 50, of Cypress, Texas, was a passenger onboard a United Airline flight from Alaska to San Francisco International Airport (SFO) on June 29, 2021. Early in the flight, flight attendants broadcasted several safety announcements over the plane’s intercom. The broadcasts included multiple announcements about the federal mask mandate on commercial flights. The broadcasts announced that passengers must wear their masks at all times and further advised the passengers that their masks will likely fall off and, if while asleep, a flight attendant will wake them up to put their masks back on, which may upset them.
The complaint affidavit describes that approximately three and a half hours into the four and a half hour flight, a flight attendant walked down the aisle to collect trash and check passengers for face mask compliance. The flight attendant noticed several passengers without face masks and asked them to put their face masks back on. One passenger was asleep, and his face mask had fallen from his face. According to the complaint, the flight attendant used two fingers to tap that passenger on the shoulder and asked him to put his face mask back on. The passenger complied.
Dutton was the wife of that passenger and was sitting next to him. As the flight attendant continued down the aisle, the complaint affidavit describes that Dutton got up from her seat and angrily shouted at the flight attendant. The flight attendant tried to explain that the passenger had not been wearing his face mask, but Dutton continued to scream and walked towards the flight attendant.
The complaint affidavit describes that Dutton pushed the flight attendant. The force of the push on the flight attendant’s right arm caused the attendant to step back to maintain balance. Dutton pushed the flight attendant again, once more on the flight attendant’s right arm. The flight attendant told Dutton to stop. The passenger asked his wife Dutton to return to her seat, which Dutton eventually did. The flight attendant immediately reported the incident to the captain.
The flight attendant, as described in the complaint, was caught off guard and felt threatened and afraid. The flight attendant further described the assault as painful and forceful. The pushes left bruising on the flight attendant’s right bicep. The flight attendant sought medical attention after the flight.
Law enforcement officers subsequently interviewed multiple passengers who either saw or heard part of the incident.
Dutton initially appeared on the federal complaint today before a United States Magistrate in Houston, Texas. Dutton’s next appearance is scheduled for Tuesday, November 16, in Houston federal court. Dutton is out of custody.
Dutton has been charged with one count of interference by assault, threat, or intimidation with flight crew members or attendants, in violation of Title 49, United States Code, Section 46504. The charge carries a maximum possible sentence of 20 years in prison and a fine. Any sentence following conviction, however, is imposed by a court only after the court’s consideration of the United States Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 USC § 3553.
Charges contained in a criminal complaint are mere allegations. As in any criminal case, the defendants are presumed innocent unless and until proven guilty in a court of law.
The case is being prosecuted by the General Crimes Section of the U.S. Attorney’s Office for the Northern District of California. The prosecution is the result of an investigation by the FBI, with thanks to the San Francisco Police Department, the San Mateo County Sheriff's Office, United Airlines, and the San Francisco International Airport for their cooperation.
Texas Man Pleads Guilty to Federal Meth Possession in IowaRead the Press Release
A man who possessed with intent to distribute methamphetamine pled guilty November 3, 2021, in federal court in Sioux City.
Arturo Flores, 23, from Eagle Pass, Texas, was convicted of possession with intent to distribute methamphetamine.
At the plea hearing, evidence showed that on June 16, 2021, in Sioux City, Iowa, law enforcement conducted a traffic stop on the vehicle Flores was driving. Flores had no identification, but did have a female passenger, her baby, and an 11-year old in the car with him. After a K-9 (drug dog) alerted on the vehicle, law enforcement located and seized over 4 pounds of methamphetamine, wrapped in duct tape, inside a drink cooler on the floor in front of the front passenger’s seat, over $2,000 cash in the passenger’s purse, and a small rock of methamphetamine found in the driver’s side door pocket. Flores admitted that he had acquired the methamphetamine in South Texas and was bringing it to Iowa for further distribution.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Flores remains in custody of the United States Marshal pending sentencing. Flores faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least five years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4061. Follow us on Twitter @USAO_NDIA.
Stephen K. Bannon Indicted for Contempt of CongressRead the Press Release
Stephen K. Bannon was indicted today by a federal grand jury on two counts of contempt of Congress stemming from his failure to comply with a subpoena issued by the House Select Committee investigating the Jan. 6 breach of the U.S. Capitol.
Bannon, 67, is charged with one contempt count involving his refusal to appear for a deposition and another involving his refusal to produce documents, despite a subpoena from the House Select Committee to Investigate the January 6 Attack on the U.S. Capitol. An arraignment date has not yet been set in the U.S. District Court for the District of Columbia.
“Since my first day in office, I have promised Justice Department employees that together we would show the American people by word and deed that the department adheres to the rule of law, follows the facts and the law and pursues equal justice under the law,” said Attorney General Merrick B. Garland. “Today’s charges reflect the department’s steadfast commitment to these principles.”
“As detailed in the indictment, on Sept. 23, 2021, the Select Committee issued a subpoena to Mr. Bannon,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “The subpoena required him to appear and produce documents to the Select Committee, and to appear for a deposition before the Select Committee. According to the indictment, Mr. Bannon refused to appear to give testimony as required by subpoena and refused to produce documents in compliance with a subpoena.”
In its subpoena, the Select Committee said it had reason to believe that Bannon had information relevant to understanding events related to Jan. 6. Bannon, formerly a Chief Strategist and Counselor to the President, has been a private citizen since departing the White House in 2017.
Each count of contempt of Congress carries a minimum of 30 days and a maximum of one year in jail, as well as a fine of $100 to $100,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI’s Washington Field Office. The case is being prosecuted by the Public Corruption and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia.
Stephen K. Bannon Indicted for Contempt of CongressRead the Press Release
WASHINGTON – Stephen K. Bannon was indicted today by a federal grand jury on two counts of contempt of Congress stemming from his failure to comply with a subpoena issued by the House Select Committee investigating the Jan. 6 breach of the United States Capitol.
Bannon, 67, is charged with one contempt count involving his refusal to appear for a deposition and another involving his refusal to produce documents, despite a subpoena from the House Select Committee to Investigate the January 6th Attack on the United States Capitol. An arraignment date has not yet been set in the U.S. District Court for the District of Columbia.
“Since my first day in office, I have promised Justice Department employees that together we would show the American people by word and deed that the Department adheres to the rule of law, follows the facts and the law, and pursues equal justice under the law,” said Attorney General Merrick B. Garland. “Today’s charges reflect the Department’s steadfast commitment to these principles.”
“As detailed in the indictment, on Sept. 23, 2021, the Select Committee issued a subpoena to Mr. Bannon,” said Matthew M. Graves, U.S. Attorney for the District of Columbia. “The subpoena required him to appear and produce documents to the Select Committee, and to appear for a deposition before the Select Committee. According to the indictment, Mr. Bannon refused to appear to give testimony as required by subpoena and refused to produce documents in compliance with a subpoena.”
In its subpoena, the Select Committee said it had reason to believe that Bannon had information relevant to understanding events related to Jan. 6. Bannon, formerly a Chief Strategist and Counselor to the President, has been a private citizen since departing the White House in 2017.
Each count of contempt of Congress carries a minimum of 30 days and a maximum of one year in jail, as well as a fine of $100 to $100,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI’s Washington Field Office. The case is being prosecuted by the Public Corruption and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia.
Springfield Man Sentenced for Child Pornography OffensesRead the Press Release
BOSTON – A Springfield man was sentenced today in federal court in Springfield for child pornography offenses.
Ross Lopata, 34, was sentenced by U.S. District Court Judge Mark G. Mastroianni to five years in prison and five years of supervised release. On June 21, 2021, Lopata pleaded guilty to four counts of receipt of child pornography and one count of possession of child pornography.
Lopata received and possessed child pornography on various dates between Dec. 17, 2018 and June 11, 2020 by downloading image and video files from the internet that depicted prepubescent children engaged in sex acts.
Acting United States Attorney Nathaniel R. Mendell and Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Assistant U.S. Attorney Alex J. Grant of Mendell’s Springfield Branch Office prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. 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.
Spencer Man Arrested on Child Pornography ChargesRead the Press Release
BOSTON – A Spencer man was arrested and charged on Wednesday, Nov. 10, 2021, in federal court in Worcester for possession of child pornography.
Joseph Michael Smith, 59, was charged with one count of possession of child pornography. A detention hearing is scheduled for 10:30 a.m. today before U.S. District Court Magistrate Judge David H. Hennessey.
According to the charging documents, a search of Smith’s residence revealed 35 videos depicting child pornography on Smith’s laptop. Smith also admitted ownership of three email addresses associated with usernames that uploaded child pornography to Kik Messenger groups between Oct. 7, 2020 and May 29, 2021.
The charge of possession of child pornography carries provides for a sentence of up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; and Spencer Police Chief David Darrin made the announcement. Assistant U.S. Attorney Michelle L. Dineen Jerrett of Mendell’s Worcester Branch Office is prosecuting the case.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
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 the 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.
Sioux City Man Sentenced to Federal Prison for Meth and Firearm ConvictionsRead the Press Release
A man that conspired to distribute methamphetamine and illegally possessed firearms was sentenced November 10, 2021, in federal court in Sioux City.
Diego Ayala, 31, from Sioux City, Iowa, pled guilty on July 15, 2021, to one count of conspiracy to distribute methamphetamine, one count of distribution of methamphetamine, and one count of a prohibited person in possession of firearms.
At the plea and sentencing hearings, evidence showed that from between September 2020 and continuing to on or about January 7, 2021, Ayala and others conspired to distribute more than 15 pounds of methamphetamine. Over the course of several weeks, in four separate transactions, one out-of-state source transported and sold more than ten pounds of methamphetamine to Ayala in Sioux City for further distribution. Another out-of-state source transported and sold more than five pounds of methamphetamine to Ayala for further distribution. On January 7, 2021, law enforcement conducted a controlled purchase of one pound of methamphetamine from Ayala. Subsequently, law enforcement executed a search warrant at Ayala’s residence and seized four more pounds of methamphetamine and two guns, an unloaded 9mm handgun and a loaded MP-15, assault style rifle. Law enforcement also seized 68 rounds of .380 caliber ammunition, 84 rounds of 9mm caliber ammunition, and 120 rounds of 5.56 ammunition from several different locations in Ayala’s residence. Ayala admitted he planned on distributing the methamphetamine seized to other persons. Ayala also admitted to being an unlawful user of methamphetamine while in possession of firearms.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Ayala was sentenced to 90 months’ imprisonment and must serve three years of supervised release following the imprisonment. Ayala remains in custody of the United States Marshal until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City Nebraska Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4002. Follow us on Twitter @USAO_NDIA.
Shreveport Man with Lengthy Criminal History Sentenced for Illegal Possession of FirearmsRead the Press Release
SHREVEPORT, La. - Acting United States Attorney Alexander C. Van Hook announced that Ronnie G. Reddix, 32, of Shreveport, Louisiana, has been sentenced by United States District Judge Elizabeth E. Foote to 120 months in prison, followed by 3 years of supervised release, on firearms charges.
Reddix was charged with unlawful possession of a firearm as the result of a high-speed pursuit that resulted in the discovery of his firearms. On or about December 12, 2020, an officer with the Shreveport Police Department observed Reddix and another individual rolling a marijuana cigar in a vehicle. The officer attempted to conduct a traffic stop but the driver did not stop, prompting a high-speed pursuit by law enforcement officers which lasted approximately ten minutes. When the car finally stopped, Reddix and other occupants exited the vehicle and fled the area. Officers observed a firearm fall from Reddix’s lap onto the ground as he exited the vehicle. He was caught and arrested after a brief foot pursuit. Officers recovered a second firearm on the ground along the path taken by Reddix during the foot pursuit. He admitted to possessing the firearms, both which were loaded with ammunition.
Reddix has a long list of previous felony convictions and knew he was prohibited from possessing any firearm or ammunition. His prior convictions are for simple burglary (2018); possession with intent to distribute narcotics and possession of narcotics (2017); two counts of simple burglary (2017); simple burglary (2014); illegal use of a weapon (2014); possession of a schedule IV narcotic (2014); domestic abuse battery (2011); and illegal use of a weapon from a motor vehicle (2009).
The ATF and Shreveport Police Department investigated the case. Assistant U.S. Attorney Brian C. Flanagan prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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Sedro-Woolley, Washington, man charged with arson at Capitol Hill nightclubRead the Press Release
Seattle – A Sedro-Woolley area man will make his initial appearance today in U.S. District Court in Seattle, charged with the February 24, 2020 arson at Queer/Bar, a nightclub and event space in Seattle’s Capitol Hill neighborhood, announced U.S. Attorney Nick Brown. Kalvinn Jay Garcia, 24, was transferred to federal custody today from Whatcom County where he served a jail sentence for theft. The grand jury returned the arson indictment on January 21, 2021.
According to filings in the case, Garcia was seen on surveillance video in the alley behind Queer/Bar on the night the blaze was set in a dumpster next to the building. The nightclub is across the alley from the Seattle Police East Precinct and the fire attracted immediate attention. Video from both the precinct and the neighboring businesses capture Garcia near the dumpster just as the flames caught and surged up the side of the building. Officers observed Garcia a short distance away. Garcia tried to run from officers but was apprehended.
There were more than 50 people in the club and its event room at the time of the fire. The blaze scorched the brick exterior and forced the cancelation of events planned at the nightclub over subsequent days.
Garcia was originally charged in King County Superior Court with arson and a hate crime. He was released from jail due to COVID-19.
Arson is punishable by a minimum term of imprisonment of five years and a maximum term of twenty years, and a maximum fine of $250,000.00
The charge contained in the indictment is only an allegation. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI and the Seattle Police Department. The case is being prosecuted by Assistant United States Attorneys Rebecca Cohen and Trial Attorney AeJean Cha of DOJ’s Civil Rights Division.
Salem Man Pleads Guilty to Felony for ‘Buzzing’ Salem Firefighters with DroneRead the Press Release
ROANOKE, Va. – A Salem, Virginia man admitted to flying a drone near the fire station in the City of Salem on July 25, 2019 and “buzzing” a group of firefighters that stood outside. The drone flew directly at the firefighters who had to dive out of the way, and then flew into the garage of the fire station where it crashed into a pole.
James Russell Weeks, III pleaded guilty to operating an unregistered aircraft, a felony that is punishable up to three years in prison.
Because any drone weighing more than .55 pounds is considered an “unmanned aircraft” by the Federal Aviation Administration, it must be registered before being operated, and Weeks failed to register his drone with the FAA as required.
U.S. Attorney Christopher R. Kavanaugh of the Western District of Virginia made the announcement.
The Salem Police Department and United States Department of Transportation Office of Inspector General investigated the case. Assistant U.S. Attorney Andrew Bassford is prosecuting the case for the United States.
Saint Louis Man Sentenced for Drug and Gun OffensesRead the Press Release
EAST ST. LOUIS, Ill. - Lamondra Beckley, 43, of Saint Louis, Missouri, was sentenced to 147 months
in prison on Wednesday, November 10, 2021, in federal court in East St. Louis, Illinois. Beckley
had previously pled guilty in federal court to one count of possession with intent to
distribute methamphetamine, one count of felon in possession of a firearm, and one count of
possession of a firearm in furtherance of a drug trafficking offense.
As part of the plea, Beckley acknowledged that on March 11, 2021, he possessed approximately 114
grams of methamphetamine, which he intended to sell to a customer at a gas station in Fairview
Heights, Illinois, before being arrested by DEA agents. At the time of his arrest, Beckley
possessed a firearm and was a previously convicted felon.The case was investigated by the Drug Enforcement Administration.
Assistant U.S. Attorney Daniel T. Kapsak prosecuted the case.
Rapid City Man Found Guilty of Attempted Enticement of a Minor Using the InternetRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that Christopher Truax, age 34, of Rapid City, South Dakota, was found guilty of Attempted Enticement of a Minor Using the Internet as a result of a federal jury trial in Rapid City, South Dakota. The verdict was returned on November 3, 2021.
The charge carries a mandatory minimum sentence of 10 years up to life in federal prison and/or a $250,000 fine, a mandatory minimum of five years up to lifetime supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Evidence at trial established that Truax was arrested and federally indicted as a result of an undercover sex trafficking operation conducted during the 2020 Sturgis Motorcycle Rally, targeting internet predators. Following multiple chats and text messages with a person Truax believed to be a 13 year-old girl, but who was in fact an undercover agent, he proceeded to negotiate a time and place he would meet the minor to engage in unlawful sex acts. When Truax went to the pre-determined location to meet the minor, he was instead met by law enforcement agents and placed under arrest.
This case was investigated by the South Dakota Division of Criminal Investigation, Homeland Security Investigations, Rapid City Police Department, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
A presentence investigation was ordered and a sentencing date has not been set. The defendant was remanded to the custody of the U.S. Marshals Service.
Rapid City Man Charged with Illegal Possession of FirearmRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Possession of a Firearm by a Prohibited Person.
Zachery Moore, age 28, was indicted on October 21, 2021. He appeared before U.S. Magistrate Judge Daneta Wollmann on November 5, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge stems from Moore, a previously convicted felon who is prohibited from possessing firearms, knowingly possessing a Kimber Manufacturing Incorporated, model Micro 9, 9x19mm Luger caliber, semi-automatic pistol in Rapid City in July 2021. The charge is merely an accusation and Moore is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.
Moore was detained pending trial. A trial date has not been set.
Puerto Man Apprehended on a Vessel with $ 316,930 in U.S. Currency Pleads Guilty to Making a False Statement to Federal Agents; Vessel and U.S. Currency are ForfeitedRead the Press Release
ST. Thomas, USVI – U.S. Attorney Gretchen C.F. Shappert of the District of the Virgin Islands announced that a Puerto Rico man pleaded guilty in federal court today to making a false statement to agent of Homeland Security Investigations (HSI), an executive agency of the United States.
According to court documents, Blas Sebastian Panzardi Davila, age 38, was the sole individual operating a vessel traveling from Puerto Rico to St. Thomas. Onboard defendant’s vessel was a cooler containing $316,930 in United States currency. U.S. Customs and Border Protection Marine Interdiction (CBP-MI) officers questioned defendant regarding the contents of the cooler, and defendant responded that he did not know what the cooler contained. CBP-MI officers opened the cooler and discovered the currency, and defendant denied ownership.
HSI agents arrived and questioned defendant regarding ownership of the currency. Defendant then claimed the currency belonged to him. Asked how he earned the money, defendant stated that he earned it while giving tourists diving tours in Puerto Rico. Asked how much currency was in the cooler, defendant said that it was approximately $100,000. According to court documents, defendant made his false statements to agents of HSI, an agency of the Executive Branch of the government of the United States.
The $ 316, 930 in U.S. currency and the vessel operated by Davila were administratively forfeited by HSI.
Davila is scheduled to be sentenced on January 27, 2022 and faces a maximum penalty of 5 years in prison.
This case was investigated by Customs Border Protection and Homeland Security Investigations.
It is being prosecuted by Assistant U.S. Attorney Everard E. Potter.
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.
Owners of Several Chicago-Area Convenience Stores Charged with Defrauding Low-Income Food Program for Women and ChildrenRead the Press Release
CHICAGO — The owners of several Chicago-area convenience stores have been charged in federal court with scheming to defraud a low-income food program for women and children.
A 16-count indictment returned in U.S. District Court in Chicago alleges that from 2010 to 2019 the store owners and several workers schemed to fraudulently redeem checks from the Women, Infants, and Children (“WIC”) program, a federally funded initiative designed to provide a nutritious diet to moderate and low-income infants, children up to five years of age, and pregnant, breastfeeding, and post-partum women. The charges allege that the defendants knowingly allowed customers to provide their WIC checks as payment for ineligible items at the stores, often at inflated prices. Most of the nine stores identified in the indictment redeemed millions of dollars in WIC checks.
Charged with fraud are HASSAN ABDELLATIF, also known as “Eric,” 33, of Chicago, owner of El Milagro Mini Market and Harding Grocery in Chicago; HAMDAN HAMDAN, also known as “Tony,” 32, of Chicago, owner of La Villita Food Market in Chicago; EHAB KHRAIWISH, 27, of Tinley Park, Ill., owner of Mercado La Estrella in Elgin, Ill.; WALEED KHRAWISH, also known as “Wally,” 34, of Melrose Park, Ill., who worked at a convenience store in Melrose Park; ALAA HAMDAN, 35, of Chicago, who worked at Supermercado El Grande in Addison, Ill.; ERSELY ARITA-MEJIA, 39, of Arlington Heights, Ill., who worked at Star Mini Market in Mt. Prospect, Ill.; FORTINO HERNANDEZ, 38, of Addison, Ill., who worked at Supermercado El Grande in Addison; JEHAD KHRAWISH, 24, of Chicago, who worked at a convenience store in Melrose Park, Ill.; and MARISOL ZAVALA, 29, of McHenry, Ill., who worked at a convenience store in Elgin, Ill.
The indictment also charges Abdellatif with two tax offenses for allegedly willfully failing to file two years of corporate tax returns for Harding Grocery.
Most of the defendants made their initial appearances Wednesday in federal court in Chicago.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Anthony Mohatt, Special Agent-in-Charge of the Midwest Regional Office of the U.S. Department of Agriculture, Office of Inspector General; and Justin Campbell, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The government is represented by Assistant U.S. Attorney Sheri L. Wong.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Ottawa County Man Pleads Guilty to Securities FraudRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Joshua Louis Rupp, 37, previously of West Olive, Michigan, pled guilty to a felony information alleging securities fraud before the Honorable Sally J. Berens, United States Magistrate Judge. As part of the plea agreement, Rupp has agreed to be ordered to pay full restitution to the victims of his crime. Rupp faces up to 25 years in prison when he is sentenced next year by the Honorable Hala Y. Jarbou, United States District Judge. The Court has not yet set a sentencing date.
According to the plea agreement and felony information, from 2015 to 2019, Rupp recruited investors by posing as a licensed broker or trader who worked at one of two different brokerage firms. Rupp told investors that he worked under the supervision of fictitious persons at those firms, one of whom he claimed was his uncle. Rupp also told investors that the principal of the investments could not be lost for various reasons, including his choice of investments, trading strategy, and insurance. Rupp fabricated documents as part of the scheme, including false account statements, a fraudulent securities license, and business documents bearing the logos of the companies for which he claimed to work. Some of the documents stated that he had passed a securities trader qualification examination or that he was registered with the State of Michigan. These claims, and others he made to induce and retain investments, were false. In total, Rupp obtained more than $2.7 million from at least 19 investors, misappropriated more than $500,000 of investors’ funds, and lost most of the remaining funds trading securities.
The U.S. Securities and Exchange Commission filed a civil complaint against Rupp on July 28, 2021, related to some of the conduct charged in the felony information. That case was stayed on the U.S. Attorney’s Office’s motion pending entry of final judgment in the criminal matter.
“Securities trading is a risky business, and for good reason the professionals who do it are licensed and specially trained,” said U.S. Attorney Birge. “This defendant misrepresented his qualifications to trade on behalf of investors in order to obtain money, lied about the performance of their investments, and misappropriated significant portions of the investments for his own personal gain. He has taken the first step toward making amends by accepting responsibility for this serious crime.”
“The defendant fabricated nearly everything about himself as a broker—his license, experience, and business connections—to induce investors to trust him with their money. He then betrayed that trust by taking a portion of the money for his personal use and fabricating false account statements,” said Timothy Waters, Special Agent in Charge of the Federal Bureau of Investigation in Michigan. “Financial crimes are not victimless, and I’d like to thank the Ottawa County Sheriff’s Office for their assistance in providing a measure of justice to the victims impacted by Mr. Rupp’s crimes.”
It is possible that Rupp defrauded victims who have not yet come forward. Any person who believes that he or she is a victim of the charged scheme to defraud, and who has not yet communicated with federal law enforcement, should contact the Victim and Witness Unit of the U.S. Attorney’s Office at (616) 808-2034. Case updates will be available at https://www.justice.gov/usao-wdmi/victim-and-witness-assistance-program/vw-large-cases.
The FBI conducted the investigation, with assistance from the Ottawa County Sheriff’s Office. Assistant U.S. Attorney Justin M. Presant is prosecuting the case.
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Ontario Man Sentenced to over Six Years in Prison for Distribution of MethamphetamineRead the Press Release
BOISE – An Ontario, Oregon man was sentenced to 76 months in federal prison for distributing methamphetamine.
According to court records, in August and September 2019, Oliver "Juice" Yardley, 46, of Ontario, and his wife, Ashley Cates Yardley, 33, on four occasions, sold methamphetamine to another person in a parking lot in Fruitland, Idaho. In total, the amount of methamphetamine they sold was approximately six ounces. During the last sale, Yardley and Cates sold three ounces of methamphetamine and two firearms to the other person. Yardley was prohibited from possessing firearms due to prior felony criminal convictions.
Yardley’s criminal history spans more than two decades and includes several convictions for controlled substance offenses and carrying concealed weapons. Yardley has also been documented as a member of the Vagos Motorcycle Club.
Senior U.S. District Judge B. Lynn Winmill also ordered Yardley to serve five years of supervised release following his prison sentence. For her role in the offense, Cates was sentenced to five years in federal prison followed by four years of supervised release on July 31, 2021 by U.S. District Judge David C. Nye.
Acting U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and credited the efforts of the Treasure Valley Metro Violent Crimes Task Force, which led to charges. The Task Force is comprised of federal, state, and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Ada County Sheriff’s Office; Boise Police Department; Caldwell Police Department; Canyon County Sheriff’s Office; Meridian Police Department; Nampa Police Department; and Idaho Department of Correction, Bureau of Probation and Parole.
This case was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit www.treasurevalleypartners.org.
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Omaha Man Sentenced for Distribution of Child PornographyRead the Press Release
Acting United States Attorney Jan Sharp announced that Timothy Fox, 35, of Omaha, Nebraska, was sentenced today in federal court for distribution and receipt of child pornography. Chief United States District Judge Robert F. Rossiter, Jr., sentenced Fox to 128 months’ imprisonment. There is no parole in the federal prison system. After his release from prison, Fox will serve 15 years of supervised release and will be required to register as a sex offender.
In August 2020, members of the FBI Child Exploitation and Human Trafficking Task Force conducting undercover investigations into peer-to-peer file sharing of child exploitation materials identified an IP address associated with a residence in Omaha, Nebraska, as sharing files of child pornography. In December 2020, investigators executed a search warrant at the residence of Fox and co-defendant Kevin Jacoway and seized several electronic devices. More than 4,000 images and 700 videos depicting child pornography were located on devices that Fox claimed as his own. Co-defendant Jacoway is scheduled for sentencing on January 14, 2022.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Nebraska State Patrol and the Omaha FBI's Child Exploitation and Human Trafficking Task Force
OCDETF Operation “Tiny Toons” Leads to the Successful Prosecutions of Members of the Gangster Disciples Including One of the Largest Heroin/Fentanyl Suppliers in WilmingtonRead the Press Release
WILMINGTON, N.C. – The United States Attorney’s Office for the Eastern District of North Carolina partnered with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Federal Bureau of Investigation Safe Streets Unit (FBI), Wilmington Police Department’s Gang and Narcotics Units, the New Hanover and Brunswick County Sheriff’s Office Gang and Narcotics Units, and the New Hanover County District Attorney’s Office to investigate and prosecute violent Gangster Disciple gang members and a high-volume heroin/fentanyl operation supplying the New Hanover and Brunswick County areas from New York. The ensuing investigation, named Operation Tiny Toons, led to the successful investigation, prosecution, and conviction of 18 defendants.
According to court documents, evidence presented in court, and other information is some of the defendants and information related to this investigation.
Darion “Pluck” Graham, 31, was sentenced on February 16, 2021, to 365 months imprisonment for (1) Conspiracy to Distribute and Possess with Intent to Distribute 1000 grams or more of heroin; (2) two counts of Distribution of a quantity of heroin (aiding and abetting) and (3) Possess with Intent to Distribute of 100 grams or more of heroin (aiding and abetting).
Between October 2015 and May 2017, the Brunswick and New Hanover County Sheriff’s Offices with the Wilmington Police Department made several controlled purchases of more than 90 grams of heroin from Graham and persons working at his direction in various locations in Wilmington, North Carolina. On August 29, 2017, the Wilmington Police Department and the ATF served a search warrant on Graham’s residence on Summertime Lane in Wilmington. Graham was on house arrest at the time of the search for pending North Carolina state charges. Law enforcement found a small quantity of heroin and fentanyl, packaging material for narcotics distribution, and more than $13,000. Graham was detained exiting the bathroom with the toilet running. Law enforcement determined that Graham had managed to flush a large quantity of heroin down the toilet while they were making a forced entry into the residence. From February until May 2019, the Wilmington Police Department and the FBI made several controlled purchases totaling 30 grams of heroin from Graham. On June 28, 2019, the Wilmington Police Department and the FBI served a search warrant on a River Front Place Apartment. The apartment was rented in the name of Kayla Jackson’s mother. Graham and Jackson arrived at the residence and fled upon seeing the police. They were arrested in a wooded area near the apartment. Law enforcement found 761 grams of a heroin/fentanyl mixture and more than $16,000. Jackson had pending heroin charges in state court at the time of her arrest. Qwanelle Ruffin was also staying at the apartment and was arrested on the same day. During the investigation, law enforcement discovered that Graham had more than 10 people distributing heroin and/or fentanyl for him. Graham was supplying and working with members of the Gangster Disciples in Wilmington. Graham’s heroin was coming primarily from New York. Graham was responsible for the distribution of more than 7 kilograms of heroin, more than 750 grams of a heroin/fentanyl mixture, and a quantity of a heroin/methamphetamine mixture. According to law enforcement, Graham was one of the largest heroin/fentanyl suppliers in New Hanover County at the time of his federal indictment.
Kayla “Lady K” Jackson was sentenced on November 9, 2021, to 85 months imprisonment for (1) Conspiracy to Distribute and Possess with Intent to Distribute 100 grams or more of heroin; (2) Possession with Intent to Distribute a quantity of heroin and (3) Possession with Intent to Distribute 100 grams or more of heroin (aiding and abetting). On March 6, 2017, a Wilmington Police Officer stopped Jackson for a traffic violation. The officer asked her to exit the vehicle due to the odor of marijuana. Instead, Jackson fled at a high rate of speed, lost control of her car and crashed into another car. Jackson then fled on foot. Law enforcement found heroin and PCP in the car. Law enforcement received information during the investigation that Jackson drove Graham to deliver heroin including a “golf ball” sized amount of heroin to Qwanelle Ruffin.
Qwanelle “El Patron” Ruffin 28, was sentenced on April 23, 2021, to 132 months in federal prison for: (1) Conspiracy to Distribute and Possess with Intent to Distribute (100) Grams or more of Heroin; (2) Three Counts of Distribution of a Quantity of Heroin and Aiding and Abetting; (3) Seven Counts of Distribution of a Quantity of Heroin; and (4) Possession With Intent to Distribute One Hundred (100) Grams or More of Heroin and Aiding and Abetting. Between November 2018 and June 2019, the Wilmington Police Department, assisted by the FBI, conducted numerous controlled purchases of heroin and a heroin/fentanyl mixture from Ruffin and co-conspirators that he had deliver for him. Ruffin had people delivering for him in part because he was recovering from a gunshot wound. The investigation uncovered that Ruffin had also been packaging and storing heroin for distribution at residences on Spring Street and 13th Street in Wilmington. Ruffin had been robbed of heroin on two occasions but continued to distribute heroin. Ruffin was also arrested for his role in the heroin/fentanyl mixture that was seized on June 28, 2019. According to a civil injunction, Ruffin was a member of the Gangster Disciples.
Maurice “Gotti” Bellamy, 29, was sentenced on April 23, 2021, to 132 months in prison for (1) Conspiracy to Distribute and Possess with Intent to Distribute a Quantity of Heroin and (2) Distribution of a Quantity of Heroin. On June 11, 2019, law enforcement made a controlled purchase of heroin from Bellamy. The investigation uncovered that Bellamy was involved in the distribution of more than 2 kilograms of heroin. According to a civil injunction filed in 2017 against the Folk Nation-720 Gangster Disciples in New Hanover County Superior Court, Bellamy was a member of the Gangster Disciples.
Alphonso “Trick Rick” McClendon, 27, was sentenced on April 23, 2021, to 66 months imprisonment for (1) Conspiracy to Distribute and Possess with the Intent to Distribute 100 grams or more of heroin (2) Distribution of a quantity of heroin and (3) Possession with Intent to Distribute a quantity of heroin. In May 2019, law enforcement made a controlled purchase of a mixture of heroin, fentanyl and methamphetamine from McClendon. On June 26, 2019, the Wilmington Police Department served a search warrant at McClendon’s residence. Law enforcement found 35 grams of a mixture of heroin/fentanyl, paperwork related to the Gangster Disciples, and a Glock magazine. According to law enforcement and the civil injunction, McClendon was a member of the Gangster Disciples.
Corbin Juran was sentenced on February 27, 2020, to 84 months’ imprisonment for (1) Possession of a firearm by a convicted felon, (2) Conspiracy to Possess with the Intent to Distribute a quantity of heroin and (3) Distribution of a quantity of heroin. On May 1, 2019, the Wilmington Police Department responded to a call at a motel. Officers observed Juran and a female walking from the dumpster behind the motel. While speaking with Juran, law enforcement confirmed that he had an active arrest warrant from Onslow County. Juran fled as officers attempted to pat him down for weapons. Officers recovered a .22 revolver that had been in Juran’s waistband and a small quantity of methamphetamine, which he had thrown down. Juran told law enforcement that he was a member of the Folk Nation. On May 24, 2019, the New Hanover County Sheriff’s Office Gang and Narcotics Units received information that Juran was going to pick up heroin from a source of supply at a mini-mart in Wilmington. Law enforcement observed Juran enter the store and exit quickly. Detectives performed a traffic stop on the car, and Juran was found in possession of 500 bags containing a mixture of heroin, fentanyl and acetyl fentanyl. Juran told detectives that he had picked up heroin from this source multiple times over the last couple of months. According to law enforcement, Juran was a member of the Gangster Disciples.
Terrance Fisher was sentenced on August 27, 2020, to 112 months imprisonment for (1) Conspiracy to Distribute and Possess with Intent to Distribute a quantity of heroin; (2) Distribution of a quantity of heroin; and (3) Possession with Intent to Distribute a quantity of heroin. On February 19, 2019, the FBI Safe Street Task Force and the Wilmington Police Department’s Narcotics and Gang Units conducted a controlled purchase of heroin from Fisher in the area of Market Street in Wilmington. On February 20, 2019, the FBI Task Force and Wilmington Police Detectives conducted a search of a room at the Suburban Extended Stay in Wilmington where Fisher had been staying. Law enforcement found a quantity of heroin in the room. Fisher was not present at the time of the search; instead, Fisher was visiting his North Carolina State Probation Officer. Law enforcement arrested Fisher when he left the visit with his probation officer and found heroin that he had given someone to hold for him during the visit. According to law enforcement, Fisher was a member of the Gangster Disciples.
Shamon “Toe” Kinston, 41, was sentenced on August 23, 2019, to 90 months’ imprisonment, for (1) Conspiracy to Distribute and Possess with the Intent to Distribute 100 grams or more of heroin and 500 grams or more of cocaine, (2) Distribution of a quantity of heroin and (3) Possession with the Intent to Distribute a quantity of heroin and a quantity of crack cocaine. On August 20, 2018, the Wilmington Police Department searched Kinston’s residence and found 71 grams of heroin, approximately a half an ounce of crack cocaine, and more than $6,000 in cash. Prior to the search of the residence, Wilmington Police Officers attempted to perform a traffic stop on Kinston. Kinston refused to stop and took police on a high-speed chase. Kinston ultimately wrecked his motorcycle and was arrested. During the investigation, law enforcement learned that the items seized were a part of a kilogram of cocaine and 200 grams of heroin that Kinston had been provided for distribution in New Hanover County.
Miguel Angel Ramos, 31, was sentenced on February 17, 2021, to 156 months imprisonment for distribution of a quantity of fentanyl. The Wilmington Police Department and the FBI Safe Streets Unit made two controlled purchases from Ramos in July 2019. Ramos had prior state convictions for possession with the intent deliver a controlled substance and trafficking in heroin/opium.
Latwon “Birdy Bird” James, 40, was sentenced on December 1, 2020, to a total of 288 months in prison for (1) Conspiracy to Distribute and Possess with Intent to Distribute a quantity of heroin, methamphetamine, fentanyl and 28 grams or more of cocaine base (crack), (2) Distribution of a quantity of heroin and fentanyl, (3) Possession with the Intent to Distribute a quantity of heroin, fentanyl and more than twenty-eight (28) grams of cocaine base (crack). From July 2018 to July 2019, law enforcement made controlled purchases from James on multiple occasions involving heroin, fentanyl, and methamphetamine. In addition, James possessed with the intent to distribute a quantity of heroin, fentanyl and 28 grams or more of cocaine base (crack). James was on federal supervised release at the time that he committed these offenses.
A target of the investigation, Sherrod Crum, was murdered in Greensboro in May 2017.
The New Hanover County District Attorney’s Office filed a civil injunction against members of the Gangster Disciples (17 CVS 4184) in 2017. This court filing contained a great deal of information collected by the Wilmington Police Department Gang Unit.
This is part of operation “Tiny Toons” which is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, 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.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement. The Bureau of Alcohol, Tobacco and Firearms, Federal Bureau of Investigation Safe Streets Section, the Wilmington Police Department Gang and Narcotics Sections and the Brunswick and New Hanover County Sheriff’s Office investigated the case and Assistant U.S. Attorney Timothy Severo prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 19-CR-00126.
Nine Indicted in Counterfeit Promethazine-Codeine Drug Trafficking ConspiracyRead the Press Release
BEAUMONT, Texas – A federal grand jury in Beaumont has returned a three-count indictment charging nine individuals in drug trafficking conspiracy in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
The indictment was returned on Nov. 3, 2021, and charges the defendants with conspiracy, trafficking in drugs with a counterfeit mark, and money laundering conspiracy. The indictment remained sealed until the defendants were arrested this week.
The following individuals have been indicted and arrested:
- Tunji Campbell, a/k/a Mike, 43, of Webster;
- Byron A. Marshall, a/k/a Robert Griffin, a/k/a Dr. Griffin, 43, of Houston;
- Cheryl A. Anderson, 43, of League City;
- Ashley A. Rhea, a/k/a Ashley A. Johnson, 35, of Houston;
- Chauntell D. Brown, a/k/a Juan Brown, 49, of Manvel;
- Willis Reed, 60, of Richmond;
- Kalpen D. Patel, 36, of Richmond;
- Jonathan R. Shaver, 35, of Richmond; and
- Gina Acosta, 40, of Fresno.
According to the indictment, from April 2014 until August 2021, the defendants conspired to traffic misbranded and counterfeit drugs, specifically promethazine-codeine cough syrup. The indictment alleges the conspiracy resulted in approximately $52,736,000 in drug trafficking proceeds.
“Food and drug products, particularly pharmaceuticals, undergo rigorous testing and inspection by federal authorities to ensure their safety,” said Acting U.S. Attorney Nicholas J. Ganjei. “When producers evade those inspection and certification requirements, the innocent consumer could potentially be put at risk. EDTX is committed to ensuring public safety and upholding public trust through the vigorous prosecution of those that skirt these safety requirements.”
“These arrests send a strong and unified message that the illicit sales of misbranded and counterfeit drugs will not be tolerated in our communities and those who commit these offenses will be brought to justice,” said Daniel C. Comeaux, Special Agent in Charge Houston Division. “The DEA and our law enforcement partners will continue to commit significant resources to the identification and investigation of those who are distributing fraudulently labeled drugs in our neighborhoods and communities.”
“Selling illegal prescription drugs in the U.S. marketplace puts all consumers’ health at risk,” said Special Agent in Charge Charles L. Grinstead, FDA Office of Criminal Investigations Kansas City Field Office. “We will continue to pursue and bring to justice those who jeopardize the public’s health.”
If convicted, the defendants face up to 20 years in federal prison.
This case is being investigated by the Drug Enforcement Administration, U.S. Food and Drug Administration Office of Criminal Investigations, Federal Bureau of Investigation,
U.S. Marshals Service, Houston Police Department, Galveston Police Department, Galveston County Sheriff’s Office, Dickinson Police Department, League City Police Department, Pearland Police Department, Pasadena Police Department, Texas City Police Department, Harris County Precent #2, Brazoria County Sheriff’s Office, Fort Bend County Sheriff’s Office, Liberty County Sheriff’s Office, and the Texas National Guard. This case is being prosecuted by Assistant U.S. Attorneys John B. Ross and Jonathan C. Lee, with assistance from the Civil Division’s Consumer Protection Branch and the FDA’s Office of Chief Counsel.A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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