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Friday 12 November 2021
New Orleans Man Charged with Wire Fraud, Money Laundering, and False StatementsRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced today that COREY THOMAS, age 49, from New Orleans, was indicted on October 7, 2021 for wire fraud, aggravated identity theft, and making false statements to a federal agent, all stemming from alleged fraudulent charges made in someone else’s name at local stores. To protect the integrity of the investigation, the indictment remained sealed until now.
The grand jury returned a five-count indictment. The indictment charged THOMAS with one count of wire fraud, involving conduct in January of 2019. According to the indictment, THOMAS used a victim’s personal identifying information in an effort to make fraudulent charges at Best Buy and several Lowe’s Home Improvement locations. It is alleged, that THOMAS attempted the purchases on behalf of other actual customers, offering to charge the goods on a store credit card in exchange for a cash payment that was less than the purchase price. THOMAS is also charged with three counts of aggravated identity theft, corresponding to three fraudulent charges at Lowe’s locations in New Orleans and Slidell. THOMAS is also charged with one count of lying to federal agents, by denying that he was present at Lowe’s during a successful fraudulent charge and falsely stating that he did not know the customer who received the fraudulently obtained goods in that transaction.
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.
If convicted of the wire fraud charge, THOMAS faces up to twenty years in prison. THOMAS faces a consecutive sentence of two years in prison for each count of aggravated identity theft. For the false statement, THOMAS faces up to five years in prison. Following any term of imprisonment, THOMAS faces up to three years of supervised release for the wire fraud and false statement counts, and up to one year of supervised release for each aggravated identity theft count. For all five counts, THOMAS faces a fine of up to $250,000 or twice the gross gain to THOMAS or the gross loss to any victims, as well as a mandatory $100 special assessment fee per count.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation. Assistant United States Attorney Nicholas D. Moses is in charge of the prosecution.
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New Jersey Man Pleads Guilty to Unemployment Fraud Related to COVID-19 PandemicRead the Press Release
BOSTON – A New Jersey man pleaded guilty today in connection with his involvement in a scheme to fraudulently obtain COVID-19-related unemployment assistance.
Omar Thompson, 39, of Paterson, N.J., pleaded guilty to one count of wire fraud conspiracy. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for March 22, 2022. Thompson was charged by criminal complaint on Aug. 19, 2021.
In March 2020, in response to the global COVID-19 pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The CARES Act created a temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA), which in Massachusetts is administered by the Department of Unemployment Assistance. This program provides unemployment insurance benefits for individuals who are not eligible for other types of unemployment benefits.
According to the charging documents, Thompson and his co-conspirator submitted more than 100 fraudulent PUA claims resulting in more than $1.2 million in payments. It is alleged that approximately half of the PUA claims were made on behalf of individuals residing outside of Massachusetts. In some instances, Thompson recruited individuals from other states to apply for PUA in Massachusetts, submitted claims on their behalf, and received kickback payments for doing so.
The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Frederick J. Regan, Special Agent in Charge of the U.S. Secret Service, Boston Field Office; and Jonathan Mellone, Special Agent in Charge of the Department of Labor, Office of Inspector General, Office of Investigations made the announcement. The Massachusetts Department of Unemployment Assistance; U.S. Department of Homeland Security, Secret Service, Newark Field Office; and New Jersey State Police provided assistance in the investigation. Assistant U.S. Attorney Christopher J. Markham of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Mexican National Extradited from Brazil to Face International Cocaine Trafficking ChargeRead the Press Release
A Mexican national was extradited from Brazil to the United States on Nov. 10 to face international drug trafficking charges. Jose Gonzalez-Valencia, aka Jafett Arias-Becerra, aka La Chepa, aka Camaron, and aka Santy, 46, arrived in the United States on Wednesday and made his initial court appearance yesterday in Washington, D.C. Superior Court. He is detained pending his appearance on Friday afternoon before U.S. Magistrate Judge Robin M. Meriweather in D.C. District Court.
According to court documents, beginning in as early as 2006, Gonzalez-Valencia conspired with others to import more than five kilograms of cocaine into the United States from a foreign country. According to court documents, Gonzalez-Valencia is alleged to be a high-ranking leader of the Los Cuinis drug-trafficking organization (DTO), which is based in Jalisco State in Mexico. Los Cuinis is closely aligned with the Cartel de Jalisco Nueva Generacion (CJNG). Together, Los Cuinis and CJNG form one of the largest, most dangerous, and prolific drug cartels in Mexico. They have been and continue to be responsible for trafficking ton quantities of illegal drugs into the United States and employing extreme violence to further that objective. The close alliance between Los Cuinis and CJNG is strengthened by familial ties between the criminal organizations: Nemesio Oseguera Cervantes, aka Mencho, the leader of CJNG, is married to Rosalinda Gonzalez-Valencia, who is the defendant’s sister.
“The United States will continue to work with global partners to pursue those who seek to import illegal drugs into our country,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “U.S. law enforcement can, and will, target individuals who are responsible for funneling large quantities of illegal and dangerous drugs into our communities here at home.”
“Today’s extradition of Jose Gonzalez-Valencia showcases the commitment of Drug Enforcement Administration’s (DEA) agents and prosecutors to bring alleged international drug traffickers to justice,” said DEA Administrator Anne Milgram. “Gonzalez-Valencia will face a jury in the United States after allegedly trafficking cocaine for more than a decade.”
A grand jury in the District of Columbia returned an indictment against Gonzalez-Valencia on Oct. 26, 2016. In December 2017, Gonzalez-Valencia was arrested by Brazilian police in Fortaleza, Brazil, at the request of the United States, where he remained detained pending his extradition.
Gonzalez-Valencia is charged with conspiracy to distribute five kilograms or more of cocaine, knowing and intending that it will be unlawfully imported to the United States. If convicted, Gonzalez-Valencia faces a mandatory minimum sentence of 10 years in federal prison and a statutory maximum sentence of life imprisonment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case is part of “Operation Stir the Pot,” which was supported by the Organized Crime and Drug Enforcement Task Force (OCDETF). The DEA’s Los Angeles Field Division is investigating with the assistance of DEA Brasilia.
Deputy Chief Anthony Nardozzi and Trial Attorneys Kate Naseef and Kaitlin Sahni of the Criminal Division’s Narcotic and Dangerous Drug Section are prosecuting the case. The Justice Department’s Office of Enforcement Operations and Office of International Affairs have also provided significant assistance.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Mexican Meth Trafficker Sentenced to 15 Years in Federal PrisonRead the Press Release
A Mexican drug trafficker was sentenced today to 15 years in federal prison for drug crimes, announced Acting U.S. Attorney Chad E. Meacham.
Hector Burgos Saucedo, a 49-year-old citizen of Mexico in the U.S. unlawfully, pleaded guilty in March to possession with intent to distribute methamphetamine. He was sentenced Friday by U.S. District Judge Sam A. Lindsay.
According to his plea papers, Mr. Saucedo admitted that in October 2020, he delivered 10 kilograms of methamphetamine, packed inside a brown U-Haul box, to an individual at a meat market on Spring Valley Road in Dallas. He was arrested before he could collect his $65,000 fee.
Mr. Saucedo will face deportation proceedings after serving his sentence.
The Texas Department of Public Safety conducted the investigation with assistance from the Federal Bureau of Investigation’s Dallas Field Office. Assistant U.S. Attorney George Leal prosecuted the case.\
Memphis Man Sentenced to Federal Prison in Mail Fraud and Identity Theft SchemeRead the Press Release
Memphis, TN – Shamari Johnson, 42, has been sentenced to 75 months in federal prison for conspiracy to commit mail fraud and aggravated identity theft. Acting U.S. Attorney Joseph C. Murphy Jr., announced the sentence today.
According to information presented in court, on April 18, 2019, Johnson was charged in a two-count information with theft of mail and identity theft. The charges arose out of an incident in which the defendant was stopped by Collierville police after a Collierville resident observed him stealing mail out of his mailbox.
Listed below is a summary of Johnson’s activities:
• On August 27, 2019, the U.S. Postal Inspection Service received a mail theft complaint from victim K.M., who stated that he had mailed a check earlier in the month which had never made it to its destination. K.M. later learned that the check had been altered and passed at a Wal-Mart in Ashland City, TN. Law enforcement contacted Wal-Mart, which sent photos of a male suspect, later identified as Shamari Johnson.
• On December 23, 2019, the U.S. Postal Inspectors Office received a report from Collierville, TN police regarding a suspect driving a BMW taking mail from mailboxes. Collierville detective said that victim R.B. had witnessed a male suspect driving a white BMW removing mail from his mailbox. Law enforcement captured the license plate of the BMW 530I using a license plate reader, which revealed that the BMW was registered to Hertz Rental Car.
• On January 3, 2020, investigators in Collierville received information from Hertz Corporate Security documents indicating that the BMW was currently being rented by Shamari Johnson.
• On January 23, 2020, investigators learned of a mail theft from the Arlington Crime Facebook page showing a suspect driving a white BMW pulling up to a mailbox and removing the contents on January 21, 2020. The Shelby County Sheriff’s Office was informed and aware of this post regarding the incident in Arlington. Law enforcement discovered that Johnson had utilities at an address on Morning Hill Dr. Cordova, TN. Hertz Rental Car Investigator provided documentation that Johnson was still in possession of the BMW.
• That same day, law enforcement also learned of an investigation by Tennessee Highway Patrol (THP) involving the fraudulent purchase of a Porsche valued at $45,998 from CarMax. Johnson was identified as the subject because he used his driver’s license photo on the fraudulent ID.
• On January 29, 2020, investigators conducted surveillance at the Morning Hill Dr. address and discovered the white BMW 530I parked in front of the address. A search warrant was obtained.
• That same day, law enforcement discovered hundreds of pieces of opened stolen mail containing personal identifying information of over 100 individuals, check stock, counterfeit checks, and fake IDs in the Morning Hill Dr. residence. Investigators further discovered a debit card in the name of victim R.S., in whose name the Porsche was purchased, as well as an ID and paperwork from CarMax. Investigators found a receipt for a certain storage unit located at Sentry Self Storage in Cordova, TN.
• That same day, Johnson agreed to speak with investigators and admitted to purchasing the Porsche using the identity of victim R.S. Johnson stated that he obtained the driver’s license through mail theft and he was also able to obtain a credit card in victim R.S.’s name.
• On January 30, 2020, investigators executed a search warrant at Johnson’s rented storage unit at Sentry Self Storage and discovered additional pieces of stolen mail, counterfeit checks, and fake IDs. That same day, investigators also executed a search warrant on the white BMW 530I and discovered materials used to make fake IDs and several counterfeit checks.
• Additional evidence seized included approximately 140 counterfeit checks drawn on 35 different banks, which appeared to have been passed at Wal-Mart stores. The total for the 140 checks was $59,247.
• On March 3, 2020, investigators received security camera footage from Wal-Mart Corporate Security from several Wal-Mart locations on January 18, and 19, 2020 which showed Johnson making purchases using checks which were identified as being counterfeit.
"A large part of the Postal Inspection Service’s mission is to ensure the public’s trust and the sanctity of the U.S. Mail. These types of crimes against postal customers compromise that trust. This sentence reflects the serious nature of the offense and will hopefully be a deterrent to others," said Tommy D. Coke, Postal Inspector in Charge of the Atlanta Division.
This case was investigated by the U.S. Postal Inspection Service and the Collierville Police Department.
On October 28, 2021, U.S. District Judge John T. Fowlkes Jr., sentenced Johnson to 75 months in federal prison; three years supervised release; and restitution and criminal forfeiture of $105,245. There is no parole in the federal system.
Assistant U.S. Attorney Chris Cotten prosecuted this case on behalf of the government.
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Manhattan Man Who Identifies as an “Incel” or “Involuntary Celibate” Pleads Guilty to Carrying Out Hoax Bomb Threat at RestaurantRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that MALIK SANCHEZ, a/k/a “Smooth Sanchez,” pled guilty to making a hoax threat to detonate a bomb at a restaurant in the Flatiron neighborhood in New York, New York, on or about February 13, 2021. SANCHEZ pled guilty before United States Magistrate Judge Kevin N. Fox in Manhattan federal court. The case is assigned to United States District Judge Colleen McMahon.
According to the Indictment, Complaint, and other public documents in the case, as well as statements made during the plea proceeding:
SANCHEZ self-identifies as an “Involuntary Celibate” or “Incel,” which refers to a group of individuals with an active online community, mostly men, who believe that society unjustly denies them sexual or romantic attention to which they are entitled. Through online activity and in some instances violence, Incels target those who they believe are unjustly denying them sexual or romantic attention, which in most cases are women.
SANCHEZ has posted multiple videos to social media accounts depicting SANCHEZ harassing, threatening, and in several instances harming individuals whom SANCHEZ encountered in Manhattan, while expressing support for Incel ideology, including for carrying out violence against women in the name of the group.
For example, on or about February 7, 2021, SANCHEZ posted online a video with a caption including “INCEL ARMY RISE UP.” The video depicts SANCHEZ yelling at two women walking on a street in Manhattan that SANCHEZ has “Incel rage”; that he supports Incel’s unofficial founder, Elliot Rodger, who attacked a sorority house and pedestrians in California in 2014, killing six victims and injuring 14 others; and that Rodger’s victims “deserved to be run over and hit by a truck. They deserved to be slaughtered.”[1] On or about March 20, 2021, SANCHEZ posted another video filmed in Manhattan, which depicts SANCHEZ approaching multiple women at an outdoor seating area. In the video, SANCHEZ again proclaimed his support for Incels and Elliot Rodger, while making hand gestures mimicking pointing a gun. After multiple individuals attempted to get SANCHEZ to stop, SANCHEZ sprayed pepper spray in the face of one of those individuals. SANCHEZ was arrested by responding law enforcement officers and charged with state offenses, and was thereafter released on bail.
On or about February 13, 2021, SANCHEZ posted a video that depicts him perpetrating a hoax bomb threat at a restaurant in Manhattan’s Flatiron neighborhood. The video shows SANCHEZ approaching an outdoor seating area in front of the restaurant and stating: “Let’s enhance their meal.” SANCHEZ then positioned himself close to two women seated at one of the tables, and conveyed that he was about to detonate a bomb. SANCHEZ loudly stated: “Allahu Akbar. Allahu Akbar. Bomb detonation in two, in two minutes. I take you with me and I kill all you. I kill all you right now. And I kill all you for Allah. . . . I’m gonna do it. I’m gonna fucking do it for Allah. I’m gonna do it, for, Allah, Allah, Allahu Akbar, Come on. I do it, bomb now, bomb now.” The two women appeared startled, gathered their belongings, and went into the restaurant; approximately four other individuals in the seating area grabbed their belongings and ran away. SANCHEZ then stated: “Yo, all of them scattered” and “Holy shit boys. That was fucking five stars. That was five stars.” At least one individual called 911 in connection with the bomb threat, and law enforcement responded to the scene. By that point, SANCHEZ had left the area.
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SANCHEZ, 19, of New York, New York, pled guilty to one count of conveying false and misleading information and hoaxes, in violation of Title 18, United States Code, Section 1038, which carries a maximum sentence of five years in prison. The maximum potential penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
SANCHEZ is scheduled to be sentenced by Judge McMahon on February 8, 2022, at 3:00 p.m.
Mr. Williams praised the outstanding efforts of the Federal Bureau of Investigation (“FBI”) New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the New York City Police Department, and over 50 other federal, state, and local agencies.
The case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorney Kaylan E. Lasky is in charge of the prosecution, with assistance from Trial Attorney Elisabeth Poteat of the Counterterrorism Section of the Department of Justice’s National Security Division.
[1] Statements discussed and quoted herein are described in substance and in part.
Long Island Doctor Pleads Guilty to Covid-19 Loan FraudRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Konstantino Zarkadas, a Glen Cove-based medical doctor, pleaded guilty to disaster relief fraud and wire fraud in connection with his receipt of millions of dollars in small business loans under the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDLP). Today’s proceeding was held before United States District Judge Gary R. Brown. When sentenced, Zarkadas faces up to 30 years in prison, as well as forfeiture of $3,796,849.50 and a fine of up to $250,000.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Thomas Fattorusso, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI), announced the guilty plea.
“The defendant, a medical professional, admits to diverting millions of dollars in COVID-19 disaster relief funds to finance an extravagant lifestyle, including the purchase of luxury watches and vehicles, and the down payment on a yacht,” stated United States Attorney Peace. “This Office will vigorously prosecute those who steal from government programs that are designed to help struggling small businesses and families stay afloat during the pandemic.”
“It’s always a shame to see the rampant abuse of programs designed to help ordinary people struggling through the pandemic. Dr. Zarkadas chose greed over honesty by financing a luxury lifestyle on the backs of America’s taxpayers. This case, along with many others, demonstrate IRS-CI is constantly working to weed out financial fraud wherever it may be found. IRS-CI would like to thank the FBI and the U.S. Attorney’s Office for the Eastern District of New York for their partnership and investigative efforts on this case,” stated IRS-CI Special Agent-in-Charge Fattorusso.
As set forth in court filings, between March 2020 and July 2020, amid the COVID-19 pandemic, Dr. Zarkadas fraudulently applied for, and received, at least 11 PPP and EIDLP loans totaling approximately $3.7 million, on behalf of corporate entities he controlled. Zarkadas laundered the loan proceeds through various bank accounts he controlled, ultimately using the funds for extravagant personal purchases and other impermissible purposes. For example, in July 2020, Zarkadas used approximately $194,915.42 in PPP funds intended for distressed small businesses affected by the pandemic to finance the down payment on a $1.75 million yacht. To conceal the fraudulent nature of the purchase, Zarkadas made the check payable to a family member who was not the ultimate beneficiary of the funds and, in the check’s memo line, falsely indicated that the funds were “repayment for payroll.” Zarkadas also withdrew tens of thousands of dollars’ worth of loan proceeds in cash and used some of the proceeds to satisfy more than $1 million in judgments against him, to lease luxury vehicles, and to make personal purchases, including several Rolex and Cartier wristwatches which he has agreed to forfeit in today’s proceeding.
Congress created the PPP and EIDLP as part of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. Enacted on March 29, 2020, the CARES Act provided emergency financial assistance in connection with economic effects of the COVID-19 pandemic. One source of relief provided by the CARES Act was the allocation of funds for the issuance of forgivable loans to small businesses for job retention and certain other expenses through the PPP. The PPP allowed qualifying small businesses to receive unsecured loans on favorable terms, which they were required to use for specified expenses, including payroll costs, interest on mortgages, rent and utilities. The PPP provided for forgiveness of the loan if the recipient businesses spent the proceeds on these specified expenses within a limited time period and used a certain percentage for payroll costs.
Another source of relief provided by the CARES Act was the EIDLP, which provided low-interest financing to small businesses, renters, and homeowners in regions affected by declared disasters. Under the program, EIDLP recipients were eligible to receive advances of up to $10,000 for small businesses within three days of applying for an EIDL (EIDL Advance). The amount of an EIDL Advance was determined based on the number of employees working for the applicant. The EIDL Advance did not have to be repaid.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Anthony Bagnuola is in charge of the prosecution.
The Defendant:
KONSTANTINO ZARKADAS
Age: 48
Glen Cove, New YorkE.D.N.Y. Docket No. 21-CR-363 (GRB)
Lehigh County Man Sentenced to 120 Months’ Imprisonment for Attempted Online Enticement of A MinorRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Philip Schmaldinst, age 45, of Lehigh County, Pennsylvania, was sentenced on November 10, 2021, to 120 months’ imprisonment to be followed by a five-year term of supervised release, by United States District Court Judge Malachy E. Mannion for using the internet to attempt to entice a 12-year-old minor female to engage in prohibited sex acts.
According to Acting United States Attorney Bruce D. Brandler, on September 24, 2020, during an on-line communication with a law enforcement officer posing as the mother of a minor female, Schmaldinst agreed to pay money to the mother in exchange for receiving oral sex from the minor and having other sexual contact with the minor and then traveled to a location in Tannersville, PA for the purpose of meeting the mother and minor and paying for sex. Schmaldinst was arrested on scene.
At sentencing, Judge Mannion also ordered Schmaldinst to comply with the Sex Offender Registration and Notification Act (SORNA).
The case was investigated by the Federal Bureau of Investigation (FBI) – Philadelphia Division and its state and local law enforcement partners in Monroe County, Pennsylvania. Assistant United States Attorney Jeffery St. John prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
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Justice Department Requires Substantial Divestitures and Waiver of a Non-Compete for S&P to Proceed with its Merger with IHS MarkitRead the Press Release
The Department of Justice announced today that it will require S&P Global Inc. (S&P) to divest three of IHS Markit Ltd.’s (IHSM) price reporting agency (PRA) businesses to resolve antitrust concerns arising from their proposed $44 billion merger. PRAs provide critical price discovery for numerous commodity markets, including markets where trades are done off-exchange in private transactions that are not subject to reporting obligations. The divestitures of Oil Price Information Services (OPIS), Coals, Metals, and Mining (CMM), and PetrochemWire (PCW) will maintain competition in PRA services and protect customer access to essential pricing information. In addition, the department will require OPIS to end a 20-year non-compete with GasBuddy, a popular crowd-sourced retail gas price information app that has long provided OPIS with pricing data for resale to commercial customers. This non-compete has effectively prevented GasBuddy — a company well positioned to enter the retail gas price data market — from launching a data service that would compete with OPIS.
The Justice Department’s Antitrust Division filed a civil antitrust lawsuit in the U.S. District Court for the District of Columbia to block the proposed merger and to prevent OPIS from enforcing its non-compete with GasBuddy. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the competitive harms alleged in the complaint.
“Without these significant divestitures, the proposed merger would have led to higher prices and lower quality for PRA customers throughout the United States,” said Acting Assistant Attorney General Richard A. Powers of the Justice Department’s Antitrust Division. “The divestitures will preserve competition for PRA services, which are vital to the proper functioning of commodity markets and promote transparency in the financial markets. The remedy also demonstrates the department’s commitment to curtail the anticompetitive use of non-compete agreements.”
According to the complaint, as originally proposed, the merger would eliminate significant head-to-head competition between S&P’s Platts division and IHSM’s OPIS, CMM, and PCW businesses in providing PRA services for refined petroleum products, coal and petrochemicals. In these markets, PRA price assessments are often used as a price term in supply agreements and as the basis for settling hedging instruments like futures contracts. In the United States, S&P and IHSM are two of the three largest competitors in PRA services for refined petroleum products and coal; similarly, S&P and IHSM are two of the four largest competitors in PRA services for petrochemicals.
The complaint also alleges that the 20-year non-compete contained in OPIS’s exclusive data license with GasBuddy has effectively prevented GasBuddy from launching a data service that would compete with OPIS. The waiver of this horizontal restraint will remove a barrier that has prevented healthy competition in the sale of retail gas price data.
Under the terms of the proposed settlement, S&P and IHSM must divest OPIS, CMM, and PCW to Dow Jones. Dow Jones is a provider of business and financial news and related data products and services. The proposed settlement also requires S&P and IHSM to waive the exclusivity and non-compete provisions contained in the data license agreement between OPIS and GasBuddy.
The department expresses thanks to its enforcement partners in the European Commission, the United Kingdom’s Competition and Markets Authority, and Canada’s Competition Bureau for their close and constructive collaboration on this matter, which enabled a thorough investigation and resulted in remedies that will preserve competition throughout North America and Europe.
S&P and IHSM are both financial and commodity information conglomerates, providing data, indices, pricing assessments, news and analytics to participants in various financial and commodity markets around the world. S&P is a New York corporation, headquartered in New York City, with reported global 2020 revenues of $7.4 billion. IHSM is a Bermuda corporation, headquartered in London, with reported global 2020 revenues of $4.3 billion.
As required by the Tunney Act, the proposed settlement, along with a competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Owen M. Kendler, Chief, Financial Services, Fintech, and Banking Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street NW, Suite 4000, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may enter the final judgment upon finding it is in the public interest.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Jury Finds Bridger Man Guilty on Multiple Sexual Abuse ChargesRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that Bennett Belt, age 48, of Bridger, South Dakota, was found guilty of three counts of Aggravated Sexual Abuse of a Child, one count of Sexual Abuse of a Minor, and one count of Abusive Sexual Contact of a Child, as a result of a four-day federal jury trial in Pierre, South Dakota. The verdict was returned on November 5, 2021.
The convictions carry a maximum mandatory minimum of 30 years, up to life in federal prison and/or a $250,000 fine, a lifetime of supervised release, a $500 special assessment to the Federal Crime Victims Fund, and restitution may be ordered.
Belt was indicted by a federal grand jury on August 11, 2020.
Between July 2003 and September 2017, in Bridger, Belt engaged in multiple sexual acts with minors with an intent to abuse, humiliate, harass, and degrade the victims, and to arouse and gratify Belt’s own sexual desire.
This case was investigated by the Federal Bureau of Investigation, the Cheyenne River Sioux Tribe Law Enforcement Services, and the Pennington County Sherriff’s Office. Assistant U.S. Attorneys Jay Miller and Abby Roesler prosecuted the case.
A presentence investigation report was ordered and a sentencing date is to be set. Belt was immediately remanded to the custody of the U.S. Marshals Service after the jury announced its verdict.
Judge sentences St. Louis man for his role in carjacking and weapons violationsRead the Press Release
ST. LOUIS – United States District Judge Audrey G. Fleissig sentenced Jody Brison to 114 months in prison today. Brison had previously pleaded guilty for his role in a carjacking and weapons charges.
On November 21, 2019, a driver for the Medicine Shoppe was delivering medicine to an apartment in the City of St. Louis, within the Eastern District of Missouri. Upon returning to her vehicle, two men with guns got out of a nearby car. The suspects took the victim’s vehicle at gunpoint and drove away.
A short time later, St. Louis Metropolitan Police Department patrol officers located the vehicle. Observing police, Brison attempted to run from the carjacked vehicle but was caught after a brief foot pursuit. During the attempt to evade police, Brison discarded a 9mm handgun with an extended magazine along with the victim’s cell phone which was left in the carjacked vehicle. Brison was previously convicted of crimes that prohibit his possession of said handgun.
The case was investigated by the St. Louis Metropolitan Police Department and the Federal Bureau of Investigation.
International Money Launderer and Cocaine Trafficker Sentenced to More Than Seventeen Years’ Imprisonment and Ordered to Forfeit over $1 MillionRead the Press Release
Tampa, FL – U.S. District Judge Susan C. Bucklew has sentenced Diego Fernando Cardona Lozano (46, Cali, Colombia), also known as “El Doctor” and “Pomada,” to 17 years and 6 months in federal prison for conspiring to import cocaine into the United States and conspiring to commit international money laundering. The court also ordered Cardona Lozano to forfeit approximately $1.4 million, which are traceable to proceeds of the offense.
Cardona Lozano had pleaded guilty on December 20, 2019.
According to court documents, Cardona Lozano was the leader of a transnational criminal organization that used the port of Buenaventura, Colombia, to distribute thousands of kilograms of cocaine worldwide and launder drug proceeds from other countries back to Colombia through the Black Market Peso Exchange. The organization concealed cocaine within legitimate shipping containers bound for ports of entry worldwide by obtaining shipping manifests to identify particular destinations where associates could retrieve the cocaine with the assistance of corrupt port employees and officials. More than 2,000 kilograms of cocaine were seized in Colombia, Mexico, and Costa Rica in connection with this conspiracy. In addition, money laundering activities carried out in North America, Australia, and the Netherlands were tied to the organization.
This case was investigated by the Panama Express Strike Force, a standing Organized Crime Drug Enforcement Task Force (OCDETF) comprised of agents and analysts from the Drug Enforcement Administration, the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Coast Guard Investigative Service, the Naval Criminal Investigative Service, and the U.S. Southern Command's Joint Interagency Task Force South. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. It was prosecuted by Assistant United States Attorney Dan Baeza.
Inmate admits to assault charge, sentencedRead the Press Release
CLARKSBURG, WEST VIRGINIA – Irvin Johnson, an inmate at Federal Corrections Institution Hazelton in Preston County, has admitted to an assault charge and was sentenced to 15 additional months of incarceration, United States Attorney William J. Ihlenfeld, II announced.
Johnson, 35, pleaded guilty today to one count of “Assault of a Correctional Officer Involving Physical Contact.” Johnson admitted to assaulting a correctional officer in April 2020 in Preston County.
Assistant U.S. Attorney Brandon S. Flower prosecuted the case on behalf of the government. The Bureau of Prisons investigated.
U.S. District Judge Thomas S. Kleeh presided.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Nov. 10 was:
Robert Kyle Reed, 34, of Billings, on charges of conspiracy to possess with intent to distribute fentanyl, possession with intent to distribute fentanyl and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious crime, Reed faces a mandatory five years to 40 years in prison, a $5 million fine and at least four years of supervised release on the drug count and a mandatory five years in prison consecutive to any other sentence on the firearms count. Reed was detained pending further proceedings. The FBI’s Western Transnational Organized Crime Task Force and the Eastern Montana High Intensity Drug Trafficking Area Task Force investigated the case. PACER case reference. 21-95.
Appearing on Nov. 9 was:
Fermin Joseph Vasquez, 39, of Billings, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Vasquez faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Vasquez was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-66.
Appearing in Great Falls before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Nov. 10 was:
James Joseph Sanofsky, 60, of Lewistown, on charges of possession of firearm and ammunition by a prohibited person and possession of an unregistered firearm. If convicted of the most serious crime, Sanofsky faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Sanofsky was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Belgrade Police Department, Lewistown Police Department, Fergus, Gallatin, Garfield and Judith Basin counties sheriff’s offices and Montana Highway Patrol investigated the case. PACER case reference. 21-80.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Idaho Falls Man Sentenced for Unlawful Possession of a FirearmRead the Press Release
POCATELLO – An Idaho Falls man was sentenced to 37 months in federal prison for possession of a firearm by a prohibited person.
According to court records, on October 16, 2020, police officers with the Idaho Falls Police Department conducted a traffic stop on a car in downtown Idaho Falls. The car was driven by Shawn Thomas Cortez, 35, of Idaho Falls. After identifying Cortez, law enforcement officers learned that Cortez had an active felony warrant and that Cortez was in possession of a firearm. Law enforcement officers recovered a 9mm Sig Saur pistol from Cortez’s waistband. Cortez had previously been convicted of a felony offense and is prohibited from possessing firearms.
Acting U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the cooperative efforts of the Idaho Falls Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives, which led to charges.
This case was handled by the U.S. Attorney Office’s specially deputized Special Assistant U.S. Attorney (SAUSA), funded by the Eastern Idaho Partnership (EIP) and the State of Idaho. The EIP is a coalition of local city and county officials in eastern Idaho as well as the Idaho Department of Correction.
The EIP SAUSA program allows law enforcement to utilize the federal criminal justice system – through the EIP SAUSA – to prosecute, convict, and sentence violent, armed criminals and drug traffickers. These criminals often receive stiffer penalties than they might in state courts.
This program was created in January 2016. Since that time, approximately 186 defendants have been indicted by the EIP SAUSA. Of these defendants, 40 have been indicted on prohibited gun possession charges. The defendants indicted under the program have been sentenced to 7,586 months (approximately 632 years) in federal prison, representing an average prison sentence of 53.4 months (4.45 years). Defendants indicted for prohibited gun possession offenses serve, on average, approximately 41 months (3.42 years) in federal prison.
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Hudson Man Charged with Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Hudson, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Aidan Gianni Carl Bratt, age 21, was indicted on August 3, 2021. He appeared before U.S. Magistrate Judge Veronica L. Duffy on November 5, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years 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 between October 11, 2020, and January 12, 2021, Bratt, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction under State Law, and having traveled in interstate commerce, failed to register and update his registration.
The charge is merely an accusation and Bratt is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Bratt was remanded to the custody of the U.S. Marshals Service pending trial, which has been set for January 11, 2022.
Hattiesburg Man Sentenced to over 14 Years in Prison for Possession of Methamphetamine with Intent to DistributeRead the Press Release
Hattiesburg, Miss. – A Hattiesburg man was sentenced to 175 months in federal prison for possession of methamphetamine with intent to distribute.
Acting U.S. Attorney Darren J. LaMarca, Special Agent in Charge Brad Byerley of the Drug Enforcement Administration and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms and Explosives made the announcement.
According to court records, on February 11, 2019, Amos Blanks, 40, distributed approximately 224 grams of methamphetamine to another drug dealer, who then sold the drugs to an individual. Pursuant to forensic analysis by the DEA, the methamphetamine was determined to be 99% pure.
Blanks was originally indicted for this offense on January 15, 2020. He pled guilty on July 23, 2020.
The Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
The case was prosecuted by Assistant United States Attorney Andrew W. Eichner.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Harrison County man sentenced for his involvement in bank robberyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Blaine Allen Ash, of Bristol, West Virginia, was sentenced today to 49 months of incarceration for his involvement in the robbery of Summit Community Bank in November 2020, United States Attorney William J. Ihlenfeld, II announced.
Ash, 38, pleaded guilty in May 2021 to one count of “Accessory After the Fact – Bank Robbery.” Ash admitted to assisting Clinton Monroe Utter with concealing his involvement in the robbery of the bank. Utter was sentenced earlier this month for robbing the Summit Community Bank in Salem, West Virginia, of $69,100 on November 17, 2020.
Ash, along with the other two defendants in this case, was ordered to pay $69,100 in restitution to the bank.
Assistant U.S. Attorney Brandon S. Flower prosecuted the case on behalf of the government. The FBI and the Harrison County Sheriff’s Office investigated.
U.S. District Judge Thomas S. Kleeh presided.
Hamilton man sentenced to 12 years in prison for distributing meth to a minor and receiving child pornographyRead the Press Release
MISSOULA — A Hamilton man who admitted to supplying methamphetamine to a minor girl and to receiving sexually explicit images of her after making repeated requests for such photos or videos was sentenced today to 12 years in prison to be followed by 10 years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
Robert Brandon Callison, 32, pleaded guilty in March to distribution of meth to a person under the age of 21 and to receipt of child pornography.
U.S. District Judge Dana L. Christensen presided.
In court documents, the government alleged that in the summer of 2019, Callison met the victim, identified as Jane Doe, who was under the age of 18. Doe told Callison that she was a minor. Callison provided Doe with meth and repeatedly requested she take nude photographs and videos of herself and send them to his phone. Doe ultimately complied and sent Callison sexually explicit images of herself using her cellular phone.
Assistant U.S. Attorney Zeno B. Baucus prosecuted the case, which was investigated by the FBI and Internet Crimes Against Children Task Force.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative, which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.
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Grand Jury indicts two individuals accused of fraud involving Paycheck Protection Program and the Small Business Grant ProgramRead the Press Release
ST. LOUIS – A federal grand jury indicted Dionneshae Forland with four counts of wire fraud, one count of bank fraud, and one count of theft of government property and five counts of aggravated identity theft. The indictment also charges Dwayne Times with one count of wire fraud, and one count of theft of government property.
The indictment alleges that Forland and Times submitted fraudulent PPP loan applications and a fraudulent Missouri Small Business Grant Program application that falsely inflated the number of employees and payroll costs of various businesses Forland and Times operated in order to receive loan proceeds. The indictment alleges that Forland and Times received in total over $700,000 in fraudulent loan proceeds.
Charges set forth in the indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the Federal Bureau of Investigation.
Franklin County Man Found Guilty of Drug Trafficking and Firearm OffensesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Adam Neftali Santana, age 37, of Chambersburg, Pennsylvania, was convicted on November 10, 2021, following a three-day trial before United States District Court Judge Jennifer P. Wilson of conspiracy to distribute over five kilograms of cocaine, attempted possession with intent to distribute over 500 grams of cocaine, and possession of a firearm in furtherance of drug trafficking.
According to Acting United States Attorney Bruce D. Brandler, the investigation uncovered a drug trafficking operation where at least eight boxes that contained cocaine was mailed from Puerto Rico to Santana’s residence. A search warrant was then executed at Santana’s residence where authorities seized a digital scale, a Glock 9mm pistol, numerous pistol magazines and ammunition were located in the master bedroom. Additional packaging consistent with a seized parcel was also found which indicated earlier cocaine deliveries.
The case was investigated jointly by the United States Postal Inspection Service and the Pennsylvania State Police. Assistant U.S. Attorneys Scott Ford and Christian Haugsby are prosecuting the case.
Santana faces a mandatory minimum sentence of fifteen years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances, and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Fourth Sentenced for Violent Shooting in Aid of RacketeeringRead the Press Release
FORT WAYNE –United States District Court Judge Damon R. Leichty sentenced a fourth member of “2500,” a Fort Wayne street gang, for committing violent crimes in aid of racketeering, announced United States Attorney Clifford D. Johnson. These charged violent crimes were committed during 2500’s “beef,” or ongoing dispute, with a rival Fort Wayne street gang. In committing these crimes, 2500 members were assisted by “Grit Gang,” a street gang based in Bloomington, Indiana.
This fourth gang member, Demetri D. Beachem, 27 of Fort Wayne, Indiana, was sentenced to 288 months (24 years) in prison, followed by 2 years of supervised release.
According to documents in this case, gang members of 2500 and Grit Gang were engaged in drug and firearms trafficking and were responsible for violent criminal gang activity. On October 4, 2014, the defendants received an insulting video, posted on social media, from rival gang members. In reaction to this post, they located rival gang members at a residence in Fort Wayne, Indiana. Upon seeing their rivals exiting the house, the defendants began shooting, striking that house and a neighboring house with gunfire. Defendants fired approximately 50 rounds, endangering the lives of people in both houses and many bystanders. One person, in fact, suffered a minor wound.
All four defendants entered pleas of guilty to two counts of attempted assault with a dangerous weapon in aid of racketeering; one count of assault with a dangerous weapon in aid of racketeering; and three counts of discharging a firearm during and in relation to a crime of violence. The other members sentenced were:
William D. Beamon, aka “Lil’ Will,” 28, of Fort Wayne, Indiana, who was sentenced to a total of 360 months (30 years) in prison, followed by 2 years of supervised release;
Kyombe D. Bolden, “aka Pudge,” 30, of Bloomington, Indiana, who was sentenced to a total of 324 months (27 years) in prison, followed by 2 years of supervised release; and
Ronnie D. Burrus, “aka Ronnie Robinson, Ronnie Burris and Yung Ron,” 28, of Fort Wayne and Bloomington, Indiana, who was sentenced to a total of 360 months (30 years) in prison, followed by 2 years of supervised release.
“The Attorney General has instructed U.S. Attorneys to prosecute violent criminals who, too often, imperil the lives and safety of law-abiding citizens. This prosecution shows that this Office will vigorously prosecute persons who commit violent crimes in the Northern District of Indiana”, said United States Attorney Clifford D. Johnson.
“This defendant and his fellow gang members terrorized innocent community members through their violent activity and this sentence not only makes clear the serious consequences of participating in gang activity, but also ensures their reign of terror is over,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “It also should send a clear message that if you are peddling guns and drugs in our communities, the FBI and our partners are coming for you.”
This multi-agency investigation was conducted by the Federal Bureau of Investigation’s Safe Streets Gang Task Force in Fort Wayne, which includes the Federal Bureau of Investigation, the Allen County Police Department, the Fort Wayne Police Department, and the Indiana State Police. Also assisting with this investigation were the Bloomington Police Department, the Indiana State Police Laboratory Division, and the Fort Wayne Police Department’s Detective Bureau and Gang and Violent Crimes Unit. This case was prosecuted by Assistant United States Attorneys Anthony W. Geller and Stacey R. Speith.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Fort Pierre Woman Charged with Bank EmbezzlementRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Fort Pierre, South Dakota, woman has been indicted by a federal grand jury for Bank Embezzlement.
Bailey Ricketts, age 26, was indicted on November 9, 2021. She appeared before U.S. Magistrate Judge Mark A. Moreno on November 12, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 30 years in federal prison and/or a $1,000,000 fine, five years of supervised release, a $100 special assessment to the Federal Crime Victims Fund, and restitution may be ordered.
The Indictment alleges that on or about between August 27, 2019, and January 26, 2021, Ricketts knowingly and intentionally embezzled more than $1,000 from Dakota Prairie Bank in Fort Pierre.
The charge is merely an accusation and Ricketts is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Ricketts was released pending trial. A trial date has not been set.
Former Tangipahoa Parish Sheriff’s Office Captain Sentenced for Defrauding the Sheriff’s Office and Other BusinessesRead the Press Release
NEW ORLEANS – U.S Attorney Duane A. Evans announced that on November 9, 2021, U.S. District Court Judge Wendy B. Vitter sentenced former Tangipahoa Parish Sheriff’s Office (TPSO) captain KEVIN STIMAGE to twelve (12) months and one day imprisonment, one (1) year of supervised release, and payment of a $100 mandatory special assessment fee. STIMAGE had pled guilty to Theft from Programs Receiving Federal Funds.
According to court documents, in 2017, 2018, 2019, and 2020, STIMAGE reported having worked, on average, 40 hours per week at the TPSO, approximately 40 hours per week at an off-duty work detail at a motor vehicle dealership, and, beginning in 2018, approximately 30 hours per week at an off-duty work detail at an apartment complex, for a total of approximately 110 hours per week. However, STIMAGE only worked a portion of the claimed hours, thereby defrauding the TPSO, the vehicle dealership, and the apartment complex out of a total of $241,086, which Judge Vitter ordered STIMAGE to repay as the restitution portion of his sentence.
U.S. Attorney Duane A. Evans stated, “We want to assure the public that with the continued assistance from our federal, state, and local law enforcement partners, this Office will identify and prosecute any individual who commits an act of public corruption,”
"Public corruption occurs when a public official conducts an official act in exchange for money, goods or services. It also includes public officials who fraudulently or illegally take something of value for their own personal gain. Today’s sentencing demonstrates that law enforcement officers like Kevin Stimage will be held responsible and that no one is above the law,” said FBI Special Agent in Charge Douglas A. Williams, Jr. "We thank our partners at the United States Attorney's Office Eastern District of Louisiana for their strong partnership and pursuit of justice."
U. S. Attorney Evans praised the work of the Federal Bureau of Investigation. Assistant United States Attorneys Myles Ranier and Chandra Menon prosecuted the case.
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Former Pharmacy Chief of VA Medical Center in Erie Pleads Guilty to Diverting PainkillersRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania pleaded guilty in federal court to a charge of violating federal drug laws, Acting United States Attorney Stephen R. Kaufman announced today.
Matthew Camera, 50, pleaded guilty to one count before United States District Judge Susan Paradise Baxter.
In connection with the guilty plea, the court was advised that from January 2017 to June 2020, while Camera was employed as the Pharmacy Chief at the Veterans Affairs Medical Center in Erie, he unlawfully obtained multiple dosage units of Hydrocodone and Oxycodone from pill bottles awaiting delivery to Veterans Affairs patients.
Judge Baxter scheduled sentencing for March 22, 2022 at 1:30 p.m. The law provides for a total sentence of 4 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court placed Camera on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Department of Veterans Affairs, Office of Inspector General conducted the investigation that led to the prosecution of Camera.
District Man Sentenced to 12 Years in Prison for Killing Man in Northeast WashingtonRead the Press Release
WASHINGTON – Joshua Young, 21, of Washington, D.C., was sentenced today to 12 years in prison for fatally stabbing a man earlier this year in Northeast Washington, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Young pleaded guilty in August 2021, in the Superior Court of the District of Columbia, to a charge of voluntary manslaughter while armed. He was sentenced by the Honorable Yvonne M. Williams. Following his prison term, he will be placed on five years of supervised release.
According to the government’s evidence, Young did not know the victim, Walter Rogers. In the early morning hours of Feb. 21, 2021, Young was riding a bike south on Minnesota Avenue NE while the victim, Mr. Rogers, was traveling north on the same sidewalk. After the two passed, Young dismounted his bike, tackled Mr. Rogers to the ground, and then stabbed him while Mr. Rogers was laying on his back on the sidewalk. After the stabbing, Young left Mr. Rogers on the sidewalk and continued riding his bike home. The Metropolitan Police Department responded minutes later at approximately 8:25 a.m., and Mr. Rogers, 50, was pronounced dead a hospital a short time later.
Young was arrested on March 1, 2021 and has been in custody ever since.
In announcing the sentence, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the Capital Area Regional Fugitive Task Force. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Jennifer Clark, Litigation Technology Specialist Aisha Keys, and Paralegal Specialist Grazy Rivera. Finally, they commended the work of Assistant U.S. Attorney Brian Ganjei, who investigated and prosecuted the case.
Des Moines Man Sentenced to 16 Years in Prison for His Role in Bringing Methamphetamine from Mexico to IowaRead the Press Release
A Des Moines man, who was involved in the importation and distribution of multiple kilograms of methamphetamine was sentenced today to 16 years in federal prison.
Rogelio Lemus Hernandez, age 21, from Des Moines, Iowa, received the prison sentence after a May 6, 2021 guilty plea to conspiracy to distribute methamphetamine.
Evidence at the plea and sentencing hearings showed that, in 2017, law enforcement began investigating a large-scale methamphetamine trafficking ring operating out of Mexico. The head of the organization, Mario Hernandez, was based in Mexico and worked with others, included Lemus Hernandez, to transport kilogram quantities of methamphetamine into Iowa. Lemus Hernandez was intercepted on a wiretap investigation speaking with Mario Hernandez. The two arranged for the transportation of methamphetamine into Iowa. In June 2020, law enforcement stopped a car occupied by Lemus Hernandez. The stop took place outside of Des Moines, Iowa. The car had travelled to Iowa from Texas. Inside the car, officers found nearly 5,000 grams of pure “ice” methamphetamine. Lemus Hernandez and an associate picked up the methamphetamine in Texas and drove it back to Iowa for the purpose that it be redistributed. In total, Lemus Hernandez’s role in the group involved over 43,000 grams of methamphetamine.
Lemus Hernandez was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Lemus Hernandez was sentenced to 192 months’ imprisonment. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Ashley Corkery. This case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Mid-Iowa Task Force (Marshall County Sheriff’s Office, Tama County Sheriff’s Office, Marshalltown Police Department), Iowa National Guard and Counter Drug Program, Tri-County Task Force (Cedar Falls Police Department, Waterloo Police Department, Black Hawk County Sheriff’s Office), the Federal Bureau of Investigation, the FBI Safe Streets Task Force, the Drug Enforcement Administration, Iowa Division of Narcotics Enforcement, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-2034.
Follow us on Twitter @USAO_NDIA.
Convicted Felon Sentenced for Possessing Loaded RevolverRead the Press Release
RALEIGH, N.C. – A Wilson man was sentenced today to 30 months in prison and three years of supervised release for possessing a firearm as a felon. On August 26, 2021, Quarmaine Devonta Daniels pled guilty to the charges.
According to court documents and other information presented in court, Daniels, 26, was found in possession of a loaded .38 caliber revolver during a traffic stop in Wilson, North Carolina. Daniels had previously been convicted of possessing a firearm as a felon in federal court in 2016.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Wilson Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case and Assistant U.S. Attorneys Robert Dodson and John Parris prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:21-CR-228-BO.
Convicted Bank Robbers Sentenced in Federal CourtRead the Press Release
ALEXANDRIA, La. - Acting United States Attorney Alexander C. Van Hook announced that three defendants convicted of armed bank robbery have been sentenced by United States District Judge Dee D. Drell.
Larcentursa Mayweather a.k.a. “Cent” a.k.a “Lacenturia,” 50, of Winnfield, Louisiana, was sentenced to 188 months (15 years, 8 months) in prison, followed by 5 years of supervised release.
Paul Nash, Jr., 44, of Jonesboro, was sentenced to 124 months (10 years, 4 months) in prison, followed by 5 years of supervised release.
Tabitha Lee Gray, a.k.a. “Tabitha White,” 45, of Jonesboro, was sentenced to 46 months in prison, followed by 3 years of supervised release.
Mayweather, Gray and Nash were also ordered to pay $9,000 in restitution.
Mayweather was convicted by a jury in federal court in Alexandria on May 28, 2021. Nash and Gray each pleaded guilty and agreed to testify truthfully about their involvement in the robberies. During Larcentursa Mayweather’s trial, evidence revealed that he conspired with his two co-defendants, Paul Nash, Jr., and Tabitha Lee Gray a.k.a. “Tabitha White” to rob two banks in the Western District of Louisiana in April 2019.
During the trial, evidence was produced that Mayweather helped plan the bank robberies and instructed Nash and Gray on how to carry out the robberies and what to do and he acted as the getaway driver. On April 2, 2019, Mayweather drove Nash and Gray to Campti, Louisiana and dropped them off at the City Bank. There Nash and Gray entered the bank with firearms drawn and ordered tellers to give them money. After Nash and Gray left the bank with the stolen money, they fled in a stolen vehicle to meet Mayweather at a predetermined location and discarded the stolen vehicle. In an effort to divert the attention of law enforcement officers from the robbery, Mayweather provided Nash with a cell phone and instructed him to make a false report to law enforcement by conveying a bomb threat on the Lakeview High School property in Campti. The money stolen from the Campti bank was divided between the co-defendants.
The second armed robbery occurred on April 16, 2019 at the Bank of Montgomery in Castor, Louisiana. Again, Mayweather helped plan the robbery and instructed Nash and Gray on how to carry out the robbery. Instead of calling in a false report of a bomb threat, this time the co-defendants committed arson by setting a house on fire in another attempt to divert the attention of local law enforcement from the robbery. Mayweather dropped Nash and Gray at the bank and again they entered with firearms drawn pointing them at the tellers. After the money was stolen, Nash and Gray ran out of the bank intending to find Mayweather, who had promised he would be waiting to pick them up. Once they exited the bank, Mayweather saw law enforcement officers in the area and instead of picking them up, he accelerated and left Nash and Gray to fend for themselves. Nash and Gray ran into a nearby wooded area and were later apprehended. Mayweather was seen leaving the area of the Bank of Montgomery and was stopped and arrested by law enforcement officers. Gray’s purse and a receipt belonging to Nash were found in his vehicle.
Testimony at trial revealed that a glove belonging to Mayweather was found in the parking lot of the City Bank in Campti, Louisiana. After laboratory analysis, it was determined that Mayweather’s DNA was on the glove. Further, testimony at trial revealed that Mayweather provided the firearms and clothing including gloves, hoodies, and masks to Nash and Gray to complete the robberies.
The FBI, Louisiana State Police, Natchitoches Parish Sheriff’s Office, Bienville Parish Sheriff’s Office, Jackson Parish Sheriff’s Office, and Louisiana State Fire Marshal conducted the investigation. Assistant U.S. Attorneys Tennille Gilreath and Robert F. Moody prosecuted the case.
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Colorado Man Sentenced to Two Consecutive Life Sentences on Murder ChargeRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Denver, Colorado, man convicted of First Degree Premeditated Murder, First Degree Felony Murder, Conspiracy to Commit Assault, Use of a Firearm During a Crime of Violence, and Possession of Ammunition by a Prohibited Person was sentenced on November 5, 2021, by Judge Jeffrey L. Viken, U.S. District Court.
Francisco Villanueva, age 43, previously convicted of murder in Colorado in the mid-1990s, was sentenced to two consecutive life sentences in federal prison and ordered to pay a $500 special assessment to the Federal Crime Victims Fund.
Villanueva was indicted by a federal grand jury on November 22, 2017, and was convicted of the charges by a federal jury following a two-week long trial in September 2021.
The conviction stems from the October 16, 2016, shooting death of Vincent Von Brewer III in front of the SuAnne Big Crow Center in Pine Ridge, South Dakota. Villanueva, along with Adan Corona, shot Brewer 15 times with an assault rifle and a 9mm handgun as Brewer attempted to flee from the defendants.
The investigation was conducted by the Federal Bureau of Investigation, Oglala Sioux Tribe Department of Public Safety Criminal Investigations, and the Denver and Aurora, Colorado, Police Departments. The investigation was also supported by numerous other state and federal law enforcement agencies.
Assistant U.S. Attorneys Sarah Collins and Benjamin Patterson prosecuted the case.
Villanueva was immediately remanded to the custody of the U.S. Marshals Service.
Colchester Man Sentenced to 34 Months in Federal Prison for Illegally Possessing MachinegunRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that on November 10, MICHAEL SHERIDAN, 27, of Colchester, was sentenced by U.S. District Judge Vanessa L. Bryant in Hartford to 34 months of imprisonment, followed by two years of supervised release, for illegal possession of a machinegun.
According to court documents and statements made in court, Sheridan purchased an untraceable machinegun (“ghost gun”) from an associate for $2,000, and then sold it another individual for $3,000. On January 29, 2021, Sheridan transferred the machinegun to the purchaser at a parking lot in Cromwell.
Sheridan’s criminal history includes multiple felony state convictions, and he was on probation at the time of this offense.
Sheridan pleaded guilty on August 9, 2021.
Sheridan, who is released on bond, is required to report to prison on January 4, 2022.
This matter has been investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation, with the assistance of the Penobscot County (Maine) Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorneys Margaret Donovan and Edward Chang, with the assistance of Law Student Intern Lara Markey.
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.
Charleston, S.C., man admits sex trafficking, cocaine crimes stemming from scheme to coerce women and girls into prostitutionRead the Press Release
BILLINGS – A Charleston, South Carolina, man accused in a large sex trafficking scheme of coercing women and girls into prostitution for him in Montana and other states admitted to charges today, Acting U.S. Attorney Leif M. Johnson said.
Louis Gregory Venning, also known as “December,” 41, pleaded guilty to sex trafficking by force, fraud and coercion, sex trafficking of a minor, transportation of a person with intent to engage in prostitution and possession with intent to distribute cocaine. Venning faces a mandatory minimum of 15 years to life in prison, a $250,000 fine, five years to life of supervised release and a $5,000 special assessment on the most serious crime of sex trafficking.
A plea agreement reached in the case calls for nine other counts of sex trafficking, transportation for prostitution and drug trafficking crimes charged in a second superseding indictment to be dismissed at sentencing if the court accepts the agreement. The government agrees not to seek additional charges. Restitution is mandatory, and Venning agrees to be responsible for complete restitution relating to all counts in the second superseding indictment.
U.S. Magistrate Judge Kathleen L. DeSoto presided. Judge DeSoto said she would recommend that Venning’s plea be accepted by U.S. District Judge Dana L. Christensen, who will sentence Venning. Sentencing was set for March 15, 2022. Judge Christensen will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Venning was detained pending further proceedings.
In courts documents and in statements in court, the government alleged that at various times from 2012 to 2020, Venning trafficked women and girls for commercial sex and also distributed illegal narcotics, including cocaine, heroin and methamphetamine. Venning employed coercion and force, violence and threats of violence and the widespread use of drugs to advance his criminal goals. Venning recruited and coerced more than a dozen women and girls, identified as Jane Does, and forced them to engage in commercial sex for him in Billings and other Montana communities. Venning took some of the Jane Does from Montana to other states, including Wyoming, Missouri and Georgia, for commercial sex work.
The government further alleged that in 2019, Venning met Jane Doe 9 in a motel in Missoula after responding to one of Jane Doe 9’s own ads for commercial sex. Venning discussed how she would work for him and ultimately she did. Venning became abusive toward Jane Doe 9, including physically assaulting her. In August 2018 in Billings, Venning coerced a girl, identified as Jane Doe 8, who was under the age of 18, to engage in commercial sex. In 2012, Venning transported another victim, identified as Jane Doe 5, from Montana to Georgia and Missouri to engage in prostitution.
In addition, Venning possessed with intent to distribute cocaine. Jane Does 3 and 4 told law enforcement that while working for Venning in commercial sex, they received cocaine from him. Social media posts collected during the investigation show Venning bragging about and sending cocaine to various individuals.
Co-defendant Destiny Lachelle Nilsen, also known as “Diamond,” pleaded guilty in the case and is awaiting sentencing.
Assistant U.S. Attorneys Zeno B. Baucus and Bryan T. Dake are prosecuting the case, which was investigated by the FBI.
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Chandler Man Sentenced to 30 Months for Securities Fraud and EmbezzlementRead the Press Release
PHOENIX, Ariz. – On Wednesday, Vu Anh Nguyen, 26, of Chandler, Arizona was sentenced by U.S. District Judge James A. Teilborg to 30 months in federal prison and ordered to pay more than $700,000 in restitution to his victims.
Nguyen previously pleaded guilty to orchestrating two fraudulent schemes. In the first, Nguyen committed a type of securities fraud known as “free riding,” consisting of making transfers of funds into stock trading accounts from bank accounts that Nguyen knew were insufficiently funded. Nguyen traded with the transferred funds during the two or three days it took for the insufficiency in funds to be processed, resulting in losses to the trading entities of nearly $650,000.
In the second, Nguyen embezzled from his then-employer, Amazon.com. During the short time he was employed by Amazon, Nguyen used his employee access to issue $96,000 worth of refunds to several buyer accounts that he owned or controlled. Amazon discovered, investigated, and reported the fraud to the FBI.
The Federal Bureau of Investigation, Phoenix Division, conducted the investigation in this case. Monica Klapper, Assistant U.S. Attorney, District of Arizona, handled the prosecution.
CASE NUMBER: CR 20-000796-PHX-JAT
RELEASE NUMBER: 2021-082_Nguyen# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Black Hawk Man Charged with Criminal ContemptRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Black Hawk, South Dakota, man has been indicted by a federal grand jury for Criminal Contempt.
Alan Frederick Dillon, age 56, was indicted on July 16, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno November 12, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up six months in federal prison and/or a $1,000 fine, and $25 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about May 16, 2019, Dillon willfully and unlawfully failed to appear for a court hearing at which he was summoned to in Pierre, South Dakota.
The charge is merely an accusation and Dillon is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Dillon was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Alabama Man Pleads Guilty to Firearms OffensesRead the Press Release
WASHINGTON – Lonnie Leroy Coffman, 71, of Falkville, Alabama, pleaded guilty today to federal and local firearms offenses stemming from the discovery of weapons in his pickup truck parked near the U.S. Capitol on Jan. 6.
According to his plea agreement, Coffman traveled from Alabama to the District of Columbia several days prior to Jan. 6 and parked his red GMC Sierra pickup truck in the 300 block of First Street, SE, on the morning of Jan. 6. Less than half a mile away in the U.S. Capitol Building, a joint session of the U.S. Congress was scheduled to meet in the afternoon to ascertain and count the electoral votes related to the presidential election.
Coffman admitted in the plea agreement that he exited the pickup truck at 9:20 a.m. and walked in the direction of the U.S. Capitol Building, and towards a rally near the National Mall. Inside the pickup truck were several loaded firearms within arms-reach of the driver’s seat, hundreds of rounds of ammunition, large-capacity ammunition feeding devices, a crossbow with bolts, machetes, camouflage smoke devices, a stun gun, and a cooler containing 11 mason jars filled with ignitable ingredients for Molotov cocktail incendiary weapons. Coffman also carried a loaded handgun and a loaded revolver as he walked around the area that day. A search of Coffman’s residence in Alabama later that month led to the discovery of 12 additional mason jars containing ignitable substances, each constituting the component parts of Molotov cocktails.
Coffman did not have a license to carry a pistol in the District of Columbia and had not registered any firearms or destructive devices in the National Firearms Registration and Transfer Record, as required by law.
Coffman has been in custody since his arrest on Jan. 6.
Coffman pleaded guilty in two separate criminal cases, one brought in the District of Columbia on Jan. 6, and the other brought in the Northern District of Alabama and transferred to the District of Columbia for purposes of plea and sentencing. Coffman pleaded guilty to two counts of possession of an unregistered firearm, a federal offense, regarding the component parts of Molotov cocktails discovered in his pickup truck in Washington, D.C., and at his residence in Alabama. Coffman also pleaded guilty to carrying a pistol without a license, a District of Columbia offense.
The Honorable Colleen Kollar-Kotelly scheduled sentencing for April 1, 2022. Coffman faces up to 10 years in prison and a $250,000 fine for each of the federal offenses and faces up to five years in prison and a $12,500 fine for the District of Columbia offense. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Attorney’s Office for the District of Columbia, the U.S. Attorney’s Office for the Northern District of Alabama, and the Department of Justice National Security Division’s Counterterrorism Section are prosecuting the case. The FBI’s Birmingham and Washington Field Offices, and the U.S. Capitol Police are investigating the case.
Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.
Alabama Man Pleads Guilty to Firearms OffensesRead the Press Release
Lonnie Leroy Coffman, 71, of Falkville, Alabama, pleaded guilty today to federal and local firearms offenses stemming from the discovery of weapons in his pickup truck parked near the U.S. Capitol on Jan. 6.
According to his plea agreement, Coffman traveled from Alabama to the District of Columbia several days prior to Jan. 6 and parked his red GMC Sierra pickup truck at the 300 block of First Street, SE, on the morning of Jan. 6. Less than half a mile away in the U.S. Capitol Building, a joint session of the U.S. Congress was scheduled to meet in the afternoon to ascertain and count the electoral votes related to the presidential election.
Coffman admitted in the plea agreement that he exited the pickup truck at 9:20 a.m. and walked in the direction of the U.S. Capitol Building, and towards a rally near the National Mall. Inside the pickup truck were several loaded firearms within arms-reach of the driver’s seat, hundreds of rounds of ammunition, large-capacity ammunition feeding devices, a crossbow with bolts, machetes, camouflage smoke devices, a stun gun and a cooler containing 11 mason jars filled with ignitable ingredients for Molotov cocktail incendiary weapons. Coffman also carried a loaded handgun and a loaded revolver as he walked around the area that day. A search of Coffman’s residence in Alabama later that month led to the discovery of 12 additional mason jars containing ignitable substances, each constituting the component parts of Molotov cocktails.
Coffman did not have a license to carry a pistol in the District of Columbia and had not registered any firearms or destructive devices in the National Firearms Registration and Transfer Record, as required by law.
Coffman has been in custody since his arrest on Jan. 6.
Coffman pleaded guilty in two separate criminal cases, one brought in the District of Columbia on Jan. 6, and the other brought in the Northern District of Alabama and transferred to the District of Columbia for purposes of plea and sentencing. Coffman pleaded guilty to two counts of possession of an unregistered firearm, a federal offense, regarding the component parts of Molotov cocktails discovered in his pickup truck in Washington, D.C., and at his residence in Alabama. Coffman also pleaded guilty to carrying a pistol without a license, a District of Columbia offense.
The Honorable Colleen Kollar-Kotelly scheduled sentencing for April 1, 2022. Coffman faces up to 10 years in prison and a $250,000 fine for each of the federal offenses and faces up to five years in prison and a $12,500 fine for the District of Columbia offense. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.
32 Named in Superseding Indictment Alleging Drug Trafficking ConspiracyRead the Press Release
JOHNSTOWN – Thirty-two residents of Cambria, Indiana, Allegheny, Philadelphia and Montgomery Counties in Pennsylvania, one resident of Long Beach, California, and one resident of
Middletown, Delaware have been indicted by a federal grand jury in Johnstown on charges of violating federal narcotics laws and unlawful possession of firearms, Acting United States Attorney Stephen R. Kaufman announced today.The fourteen-count Superseding Indictment, returned on November 9 and unsealed today, names the following 32 individuals as defendants:
Mikal Davis, 44, of Philadelphia, PA;
Darren Alston, 29, of Johnstown, PA;
Anthony Andrews, 40, of Johnstown, PA;
Debra Bailey, 58, of Johnstown, PA;
Sandra Box, 55, of Johnstown, PA;
Jonathan Brunson, 50, of Johnstown, PA;
Hector Concepcion, 32, of Johnstown, PA;
Willette Cooper,39, of Johnstown, PA;
James Dotson, 43, of Johnstown, PA;
Joshua Edmonds, 28, of Johnstown, PA;
Azheem Ellis, 45, of Johnstown, PA;
Ruby Gil, 30, of Indiana, PA;
Shawn Howard, 47, of Johnstown, PA;
Kevin Johnson, 35, of Johnstown, PA;
Rashim Kennedy-Williams, 41, of, Philadelphia, PA;
Perry King, 45, of Johnstown, PA;
Amber Lingafelt, 38, of Johnstown, PA;
Dwight Logan, 42, of Johnstown, PA;
Jeffrey Mann, 43, of Philadelphia, PA;
George Mazey, 50, of Johnstown, PA;
Timothy Mollett, 40, of Turtle Creek, PA;
Mary Lou Nelson, 58, of Johnstown, PA;
James Pearcy, 57, of Philadelphia, PA;
Gina Petrucci, 51, of Conshohocken, PA;
Derrick Polk, 58, of Long Beach, CA;
Paul Smith, 43, of Middletown, DE;
Rodney Smith, 65, of Johnstown, PA;
Joseph Thornton, 31, of Johnstown, PA;
Amanda Weidner, 37, of Johnstown, PA;
Jessica Wilson, 35, of Johnstown, PA;
Blake Young, 32, of Johnstown, PA; and
Daniel Culmer, 54, of Johnstown, PA.The Superseding Indictment charges all defendants with conspiring to distribute and possess with intent to distribute one kilogram or more of a mixture and substance containing a detectable amount of heroin, five kilograms or more of a mixture and substance containing a detectable amount of cocaine, 280 grams or more of a mixture and substance continuing a detectable amount of cocaine base, in the form commonly known as crack, 400 grams or more of a mixture and substance containing a detectable amount of fentanyl, 50 grams or more of methamphetamine, and 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine, from April 2019 to July 2021, in the Western District of Pennsylvania. The statue calls for a mandatory minimum sentence of ten years of incarceration.
Jonathan Brunson is charged at Count Two with distributing heroin and fentanyl resulting in serious bodily injury on June 9, 2021. The statue calls for a maximum sentence of 20 years in prison.
Mikal Davis, Jonathan Brunson, James Dotson, Jeffrey Mann, and Derrick Polk are charged at Count Three with distribution and possession with intent to distribute 50 grams or more of methamphetamine, and 500 grams or a mixture and substance containing a detectable amount of methamphetamine from April 14, 2021 through April 18, 2021. That statute calls for a mandatory minimum sentence of 15 years of incarceration.
Mikal Davis, James Dotson, and Jeffrey Mann are charged at Count Four with possession with intent to distribute 50 grams or more of methamphetamine, and 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine; 40 grams or more of a mixture and substance containing a detectable amount of fentanyl; and a quantity of a mixture and substance containing a detectable amount of heroin, cocaine, and crack cocaine on July 15, 2021. That statute calls for a mandatory minimum sentence of ten years of incarceration.
Jonathan Brunson and James Dotson are charged at Count Five with possession with intent to distribute 40 grams or more of a mixture and substance containing a detectable amount of fentanyl; and a quantity of a mixture and substance containing a detectable amount of heroin, crack cocaine, and methamphetamine on June 9, 2021. That statute calls for a mandatory minimum sentence of five years of incarceration.
Timothy Mollett is charged at Count Six with possession with intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of cocaine; 40 grams or more of a mixture and substance containing a detectable amount of fentanyl; and a quantity of a mixture and substance containing a detectable amount of heroin, crack cocaine, and methamphetamine on July 15, 2021. That statute calls for a mandatory minimum sentence of five years of incarceration.
Dwight Logan is charged at Count Seven with possession with intent to distribute 40 grams or more of a mixture and substance containing a detectable amount of fentanyl; and a quantity of a mixture and substance containing a detectable amount of heroin, crack cocaine, and
methamphetamine on July 15, 2021. That statute calls for a mandatory minimum sentence of five years of incarceration.George Mazey is charged at Count Eight with possession with intent to distribute a quantity of a mixture and substance containing a detectable amount of crack cocaine and fentanyl on April 20, 2021. That statute calls for a mandatory maximum sentence of 20 years of incarceration.
James Dotson and Timothy Mollett are charged at Counts Nine and Thirteen, respectively, with unlawful possession of a firearm or ammunition by a convicted felon. The statute calls for a maximum sentence of ten years in prison.
Hector Concepcion is charged at Count Eleven with unlawful possession of a firearm and ammunition by an alien illegally and unlawfully in the United States, on July 15, 2021. The statute calls for a maximum sentence of ten years in prison.
James Dotson, Timothy Mollett and Hector Concepcion are charged at Counts Ten, Twelve and Fourteen, respectively, with possession of a firearm in furtherance of a drug trafficking crime. That statute calls for a mandatory minimum sentence of five years of incarceration and up to life.
Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Laurel Highlands Resident Agency and Homeland Security Investigations conducted the investigation leading to the Superseding Indictment in this case. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, Pennsylvania Office of the Attorney General, Pennsylvania State Police, Cambria County District Attorney’s Office, Indiana County District Attorney’s Office, Cambria County Sheriff’s Office, Cambria Township Police Department, Indiana Borough Police Department, Johnstown Police Department, Upper Yoder Township Police Department, Richland Police Department, Ferndale Police Department and other local law enforcement agencies.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Thursday 11 November 2021
Two Little Rock Men Plead Guilty in Sex Trafficking ConspiracyRead the Press Release
LITTLE ROCK – Two Little Rock men have pleaded guilty to conspiracy to commit sex trafficking of a 6-year-old child. Demarcus George, 27, entered his guilty plea Wednesday afternoon before United States District Judge Brian S. Miller. George joins his codefendant, Mario Waters, 33, who pleaded guilty last week. The guilty pleas effectively cancel George and Waters’ upcoming jury trial, which was scheduled to begin on November 15.
In February 2018, a 6-year-old child was taken to Arkansas Children’s Hospital due to symptoms that were later determined to be caused by several sexually transmitted diseases. The child was interviewed by an FBI forensic interviewer and disclosed that a man, later determined to be Demarcus George, had raped her. The child also disclosed that another man, later determined to be Mario Waters, had also raped her. The child told interviewers that the rape occurred in a hotel room with a curtain in the middle of the room, and she described a picture hanging on the wall in the hotel room.
Law enforcement was able to locate a hotel in Little Rock that matched the description provided by the minor, including the picture on the wall and the curtain in the room. Financial records from the hotel showed that the minor’s mother had rented a room at the hotel in March 2018 and paid with a credit card. The child has since been removed from the mother’s custody.
Doctors at Arkansas Children’s Hospital determined that it was unlikely the child had obtained each sexually transmitted disease from the same offender and that there were likely multiple offenders. Officers obtained search warrants for George and Waters’ blood and urine. Results indicated that George and Waters tested positive for sexually transmitted diseases that the minor had contracted. Both George and Waters admitted in court that they had sexual contact with the minor and were involved in trafficking her with others.
“The unspeakable crimes committed against this child remind us how vitally important it is to have law enforcement officers willing to investigate and put a stop to these horrific actions,” stated Acting United States Attorney Jonathan D. Ross. “These guilty pleas will spare the young victim from having to relive her experience on the witness stand at a trial. Our law enforcement partners work hard every day to protect children from this abuse, and our office will continue to aggressively pursue those who commit these deplorable crimes.”
Judge Miller will sentence George and Waters at a later date. Conspiracy to commit human trafficking of a minor is punishable by any term of imprisonment up to life and not less than five years of supervised release. The case was investigated by the FBI and the Little Rock Police Department and is being prosecuted by Assistant United States Attorneys Kristin Bryant and Allison W. Bragg.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Minneapolis Felon Pleads Guilty to Armed Robbery of Two Banks and Minneapolis Apparel StoreRead the Press Release
ST. PAUL, Minn. – A Minneapolis man pleaded guilty to multiple armed robberies, announced Acting U.S. Attorney Charles J. Kovats.
According to court documents, on February 4, 2018, Richard Alonzo Woods, 38, and two accomplices entered Project SoZo, an apparel store in Minneapolis, wielding guns and threatening customers and employees. Woods and his accomplices stole jewelry, money, and cell phones from the customers, and approximately $600 in cash from the register and other store merchandise, including $1,900 Nike Air Jordan shoes.
According to court documents, on February 22, 2018, Woods and two accomplices entered Lake Area Bank in White Bear Lake brandishing guns and demanding money from the tellers. Surveillance video footage from the bank showed Woods jump over a counter and take cash from the teller’s drawer. Woods and his accomplices stole approximately $9,816 in cash from the bank.
According to court documents, on May 4, 2018, Woods and an accomplice entered Bremer Bank in Brooklyn Center brandishing guns and demanding money from the tellers. A third accomplice was waiting in a getaway car. Woods and his accomplices stole approximately $88,618 in cash from the bank.
Woods pleaded guilty yesterday before U.S. District Judge Wilhelmina M. Wright to one count of interference with commerce by robbery (Hobbs Act), two counts of armed bank robbery, two counts of carrying a firearm during and in relation to a crime of violence, and one count of conspiracy to commit armed bank robbery. A sentencing hearing will be scheduled at a later time.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is the result of investigations conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the United States Marshals Service, the Minneapolis Police Department, the White Bear Lake Police Department, and the Brooklyn Center Police Department.
Assistant U.S. Attorney Samantha H. Bates and former Acting U.S. Attorney W. Anders Folk prosecuted the case.
Media AdvisoryRead the Press Release
MEDIA ADVISORY
WHEN: Friday, November 12, 2021 at 11:00 AM
WHERE: New Hanover County Historic Courthouse
Commissioners Assembly Room 301
24 North 3rd Street
Wilmington, NC 28401
Re: Operation Tiny Toons
RALEIGH – The United States Attorney’s Office announces a press conference to discuss the sentencing of multiple gang members in a multi-year heroin/fentanyl conspiracy investigation in Wilmington and New Hanover County. We will also highlight the important partnerships between all levels of law enforcement and the partnership between the United States Attorney’s and the District Attorney’s Offices in this and other investigations during the preceding year. The Bureau of Alcohol Tobacco, Firearms & Explosives (ATF), Federal Bureau of Investigation, Wilmington Police Department, New Hanover Sheriff’s Office, Holly Ridge Police Department, and Brunswick County Sheriff’s Office investigated these cases.
In addition to Acting United States Attorney G. Norman Acker, III, representatives from the ATF, FBI, Wilmington Police Department, New Hanover County Sheriff’s Office, and the Holly Ridge Police Department are expected to be present at this event.
Credentialed members of the media are invited to attend. For additional information, please e-mail Don Connelly at [email protected]. Please RSVP your intentions to attend the event.
Knoxville Man Sentenced for Fraud and Money LaunderingRead the Press Release
KNOXVILLE, Tenn. – On November 10, 2021, Hugh Leroy Murphy, 81, currently of Knoxville, Tennessee, was sentenced by the Honorable Katherine A. Crytzer, in the United States District Court for the Eastern District of Tennessee at Knoxville.
As part of the written plea agreement, Murphy agreed to plead guilty to one count of mail fraud in violation of 18 U.S.C. § 1341; and one count of money laundering in violation of 18 U.S.C. § 1957. Murphy was sentenced to 46 months in prison, followed by one year of supervised release. In addition, Murphy was ordered to pay $2,215,202.08 in restitution to his victims.
According to court documents, in November 2018, a federal grand jury in the Eastern District of Tennessee returned a twelve-count indictment against Murphy, charging him with eight counts of wire fraud and four counts of money laundering. The indictment resulted from a lengthy investigation by the U.S. Postal Investigation Service and the Internal Revenue Service.
Investigators found that from approximately May, 2002 through September 2016, Murphy defrauded individuals by offering fictitious annuity and purported equity policy investments in commercial real estate. Instead of investing the funds as promised, however, Murphy diverted the funds to his own personal use and benefit. Murphy created the appearance of returns on investment by paying earlier investors with funds received from later investors. In addition, Murphy created the appearance of legitimacy by mailing statements containing fictitious information to his victims. Over the course of the scheme, Murphy received at least $6,294,461.07 from 47 victims, who suffered a net loss of $2,215,202.08.
The criminal indictment was the result of an investigation by the U.S. Postal Inspection Service and the Internal Revenue Service.
Assistant United States Attorney Frank M. Dale, Jr. represented the United States.
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Bringing the Fight to Them: Acting U.S. Attorney Ganjei Highlights EDTX’s Successes in International Drug Investigations and Anti-Cartel ProsecutionsRead the Press Release
DALLAS, Texas – Acting United States Attorney Nicholas J. Ganjei addressed the North Texas Crime Commission (NTCC) today via Zoom for their regular monthly meeting.
Acting U.S. Attorney Ganjei was introduced by NTCC Chair David Dean:
“David, thank you so much for that kind introduction. Good morning everyone. I want to thank you all for taking the time to join us on this Veterans Day holiday. To that end, I would especially thank all the fighting men and women that have made incredible sacrifices, and continue to make such sacrifices, to keep our great nation strong and free.
Today I’d like to speak to you about the robust international drug investigation, extradition, and prosecution practice happening in your Eastern District of Texas. Colloquially known as “959” cases, these investigations and prosecutions result in the identification, capture, and conviction of some of the world’s largest and most notorious drug traffickers. Through joint action with the DEA, HSI, other federal law enforcement partners, as well as our foreign law enforcement counterparts, EDTX can interdict bulk shipments of narcotics before they reach American shores and prosecute those trafficker kingpins who believe themselves above the law simply because they reside overseas. I’d also like to speak to some of EDTX’s success in this space, and how these cases are, and will remain, a priority for the Eastern District.
I want to speak to you today about what the Eastern District and its law enforcement partners are doing to stem the tide of the international drug trade – not just inside the borders of its own district, but on the soil of foreign nations and even on the high seas. But before I do that, it’s probably best that I provide some background on what 959 cases are, and how these cases come to be. Specifically, how does the United States prove its case when the drugs never actually enter the country, and, just as importantly, what is the process for bringing these drug traffickers from their homes to face justice in United States courts?
The international dimension of 959 cases makes them particularly worthwhile endeavors. By looking internationally, EDTX can focus on the investigation and prosecution of the leadership class of these drug trafficking organizations, who invariably reside overseas. When drugs are seized in a routine domestic narcotics investigation, those drugs have already been paid for, and that purchase money is either in the hands of the cartel, or on its way. However, by interdicting drug shipments before they make landfall in the U.S., we can stop this addictive poison from ever infecting our communities, and we can disrupt a lucrative drug transaction from ever taking place. This has a ripple effect on other related criminal activity, which is often financed by narco-dollars. All of us, for example, have heard how drug cartels are expanding into human smuggling, including the smuggling of children, through our southern border. By depriving cartels and other criminal organizations of drug proceeds, we help prevent other criminal activity—including financial crimes, public corruption, even terrorism—from ever taking root.
The fact of the matter is that most of the illicit drugs consumed in the United States originate in Central and South America. Mexico is the primary supplier of heroin and a major source of methamphetamine smuggled into this country. Similarly, Colombia is the leading producer of cocaine for the United States market. Even illicit drugs manufactured in other parts of the world are smuggled into the United States through many of these same countries via established drug routes. For example, according to the Drug Enforcement Administration, precursor chemicals used in the production of illicit fentanyl often originate in China, but typically enter the United States through our southern border with Mexico.
Recognizing this threat, as well as the need to attack the drug problem at its source, the United States has enacted “long-arm” statutes. In the civil context, long-arm statutes apply to a particular state or entity’s ability to exercise jurisdiction beyond its borders. In the criminal context, the idea is somewhat similar, insofar as these laws allow for the prosecution of individuals by the American justice system for narcotics crimes that occurred entirely in other countries. These statutes fall into two primary classes. First, there are narcotics trafficking and conspiracy statutes which are focused on the importation of narcotics into the United States. Second, the United States has maritime statutes which are based on the centuries old concept of the “Law of the Sea,” providing law enforcement with statutory authority for interdiction on the high seas. The Eastern District makes vigorous use of both in its international practice. Allow me to elaborate on both.
21 United States Code Section 959 is a criminal statute intended to reach violations committed outside of the United States. Critically, no act needs to actually occur in the United States. It makes it a crime for a defendant to manufacture or distribute a Schedule 1 or Schedule 2 controlled substance (drugs like cocaine, methamphetamine, marijuana, fentanyl, heroin, and the like), intending that the drug be imported into the United States, knowing that the drug will be imported into the United States, or even having reasonable cause to believe that the drug will be imported into the United States. Similarly, Title 21 United States Code Section 963 makes it a crime to conspire to commit a violation of Section 959. Here, the agreement to commit the unlawful act is the crime. No overt act ever has to occur, simply an agreement. Collectively, these two statutes give law enforcement a powerful set of tools to disrupt traffickers on their home turf.
The power and effectiveness of these long-arm statutes, however, is most evident when reviewing what we don’t have to prove. The United States does not have to prove that
(1) The suspect ever entered the United States;
(2) That any criminal act occurred in the United States;
(3) That any drugs were actually successfully imported into the United States;
(4) That the suspect knew the buyers or the specific destination for the drugs in the United States; or that
(5) The suspect actually physically delivered or distributed the drugs.
So, against that statutory backdrop, what exactly are we looking for as we investigate and prosecute these international cases? In other words, how do we prove our case? Chiefly, we rely on three key pieces of evidence.
First, we often rely on judicially authorized wiretap evidence. These are typically wiretaps that are authorized and conducted in foreign countries and shared with us as a part of Mutual Legal Assistance Treaties (otherwise known as MLATs). In certain limited circumstances, we can intercept communications here in the United States even when the communication occurs entirely outside of our borders because some wireless carriers route all conversations (wherever they might occur) through servers in the United States. Naturally, this is some of our best evidence because it captures drug negotiations, delivery and payment coordination, and other logistical discussion. And in situations where law enforcement has already interdicted or seized a drug shipment, targets may even openly speak about previous drug seizures—which is sort of the holy grail of establishing relevant conduct.
Second, we also rely on “locally sourced” evidence, that is money, drugs, and other contraband seized in foreign countries, and shared with us in the MLAT process.
Finally, cooperating witnesses are a critical aspect of these cases, just as they are in all of our cases.
To put a finer point on it, though, how do we prove that a suspect knew, or had reasonable cause to believe, that drugs seized in Colombia, Guatemala, Mexico or elsewhere were destined for the United States?
The first indicator is quantity. In 959 cases we’re dealing with importation-size quantities, amounts measured in thousands of kilograms—quite literally tons—of illicit narcotics. Long experience tells us that drugs seized in this amount are not intended for distribution on the streets of Bogota or Mexico City, rather these drugs are unfortunately headed for the number one illegal drug-consuming country in the world, the United States. Just as the hypothetical seizure of ten kilograms of cocaine in a stash house tells the reasonable person that the drugs are intended for distribution as opposed to personal use, the extreme quantities seen in 959 cases is proof of the intended export of the narcotics
Second, experience with prior investigations has demonstrated that traffickers utilize known drugs routes. When drugs are seized leaving the eastern Pacific side of Colombia or the Western Caribbean, those drugs are headed north through Guatemala, Honduras, and Mexico, with an eventual destination of the United States.
Third, another key piece of evidence demonstrating that a given conspiracy is importing drugs into the United States is the seizure of U.S. currency from traffickers abroad. It is not at all uncommon to find that bulk cash seized in Central or South America is actually United States currency, itself the proceeds of prior drug loads.
Fourth, drug traffickers, like legitimate businessmen, frequently use logos or brands to help advertise and identify their products. When bricks of cocaine are produced and packaged at laboratories in Colombia, they are embossed with logos such as a scorpion, a Texas longhorn, or even the name of the cartel itself—something to signify to the buyer that the packaged drug is of a level of quality that they can trust, as well as a warning to would-be thieves. When kilograms of cocaine are seized in New York, Chicago, Seattle, or right here in Dallas, we can frequently link those bricks to known drug lords and their laboratories through the logos they display.
Lastly, but not least, wire intercepts and cooperating witnesses frequently explicitly discuss the intended destination of the drugs.
Let me know turn to EDTX’s maritime interdiction efforts. Under the nation’s maritime laws, found in Title 46 of the United States Code, there is no need to prove that a group of defendants intended to import a load of narcotics into the United States. Rather, EDTX only needs to prove that the United States has jurisdiction over the vessel itself. Under the laws of the high seas, as codified in Title 46, a sovereign nation has jurisdiction over any vessel on the high seas that is either stateless (meaning it is not flying the flag of any country); or where the flag country consents (in the case of a vessel that is flying a flag).
The Eastern District of Texas coordinates closely with the United States Coast Guard—who have been incredible partners—in order to prosecute many cases involving of these types of seizures. In fact, just last month, we accepted two of these type of seizures for prosecution in our district, one with 1.8 tons of cocaine and another with 4.2 tons of cocaine. Collectively, that is six tons of cocaine that will never reach American towns, and that’s several million dollars that will never reach the wallets of the cartel.
Allow me to provide an example from an already resolved case. A few years ago, a group of Colombian drug traffickers that were targeted by EDTX had arranged to transfer over one ton of cocaine to a vessel which was floating several hundred miles off of the west coast of the Galapagos Islands. When the United States Coast Guard approached the ship, they discovered that it was a Chinese fishing vessel. The Chinese government, in the first known case of its kind, consented to the United States taking jurisdiction over the vessel and its crew. The crew members were subsequently prosecuted in the Sherman Division of the Eastern District and all defendants were convicted.
The Eastern District has aggressively utilized both prosecutorial tools – importation statutes and maritime jurisdiction – doing so with great success. For Fiscal Year 2020, in regard to organizational drug cases, otherwise known as OCDETF, the Eastern District was number one in the country for the number of defendants prosecuted, beating out much larger (and more famous) districts like SDNY, the Southern District of Florida, and the Central District of California. So, when you think drug prosecution, instead of thinking New York, Miami, and Los Angeles, I urge to think Plano, Sherman, and Tyler. EDTX also led the nation in the number of defendants in opioid and fentanyl prosecutions, as well the number of these organizational defendants involved in financial crimes. And the Eastern District was number two in the country for the number of indictments against leadership-level defendants in these organizational cases. And these numbers are driven to a large extent by our office’s relentless pursuit of overseas traffickers, made possible through our valuable 959 partnerships.
In discussing these cases, and 959 practice generally, one question inevitably comes up: Why the Eastern District of Texas? Why does the Eastern District of Texas prosecute so many of the world’s largest drug traffickers?” I think the subtext there is “why does such a small district, particularly one without the major population centers seen in other districts, account for such a large share of international defendants?” The answer is two-fold.
In the late 1970’s the Eastern District of Texas undertook the investigation and prosecution of one of the richest and most powerful men in Texas, Rex Cauble. Cauble was larger-than-life. He owned a chain of western wear stores, a fleet of shrimp boats, ranches, and even a bank. He was worth $100 million or more. He was known, too, as an anti-drug crusader who recorded his own anti-drug commercials. All the while, however, he was using his fleet of shrimp boats and his private jets to transport over $70 million worth of marijuana from Colombia directly into Texas. The Eastern District prosecuted him and his entire organization, making national headlines. This case and other cases led to the establishment of long and lasting relationships with agents and officials in Colombia and throughout Central and South America. These relationships, in turn, led to joint efforts over the decades to prosecute the highest-level drug traffickers in the courts of the Eastern District.
Which leads me to my second point. In East Texas, we have great judges who are both fair-minded and serious about enforcing the law. I honestly cannot sing their praises high enough. They are thorough, prepared, and well-versed in the law. Furthermore, we have fair but tough juries who are no-nonsense when they evaluate these cases. Moreover, years of positive experiences and great case results have shown our federal law enforcement partners, as well as our allies in Colombia and other countries, that EDTX can be counted upon to be aggressive and engaged, and to share the same passion for stomping out the drug trade that they do.
Let me now speak a little bit about the mechanics of how we get defendants here. The short answer is through the herculean efforts of the United States Marshals Service. The work that U.S. Marshal John Garrison and his team do to get extradited defendants to the United States is nothing short of extraordinary.
The longer answer, however, is that extradition is a matter of sovereign discretion. Both treaties and actual practices can differ widely among countries. The required paperwork to extradite defendants from another country may vary from 40 or 50 pages—to literally volumes, or even boxes, of papers. Similarly, extradition proceedings in the foreign country can take anywhere from a few months to a few years, depending on the provisions of the respective treaty. Most countries afford a hearing in a judicial setting, but again, the specifics of the hearing will vary from country to country. Additionally, most countries afford a defendant at least one level of judicial review, as well as a final decision by one or more executive authorities. Obviously, these proceedings will extend the length of the extradition process.
The bulk of our cases come from Colombia and Guatemala. This reflects the reality that Colombia is a major source country for cocaine and heroin, and that Guatemala is the critical waypoint, for reasons of geography, that nearly all loads of narcotics have to pass through on the way to the United States. Mexico is, of course, also a major transit point but it is much more difficult to accomplish extraditions from Mexico, often taking several years, sometimes even up to a decade.
Since 2017, the Eastern District has extradited a total of 92 individuals from Colombia, 11 from Guatemala, and ten from Mexico. There are many more suspects pending arrest in those countries, and even more than that, if one were to include requests to extradite that are currently pending before the State Department. I know these numbers might not mean much when cited in the abstract, but, let me just say, that’s a lot. In fact, one—just one—of our AUSAs in the Plano office is responsible for 70 percent of all of Guatemala’s extraditions. By all accounts, the demand for extradition is only increasing, and EDTX, as part of its commitment to its 959 practice and partnerships, is scaling up in staffing and resources to meet the need.
So, once we have properly investigated the case and our grand jury has handed up an indictment there are four key steps to the process of getting the defendant to the United States. First, we work with our foreign partners to locate the fugitive. This can often be one of the more difficult steps. Second, we submit a formal request asking the foreign jurisdiction to issue a warrant based on our indictment--this is called a Provisional Arrest Warrant (or PAW) because it is conditioned on our promise to follow up with a formal extradition request once the fugitive is arrested. Third, the foreign authorities obtain the requested warrant and arrest our defendant. The defendant then waits in jail while we have a short deadline to have our State Department make a formal extradition request to the foreign ministry of the other nation. Finally, if the formal extradition request is approved, the defendant is transported to the United States, courtesy of the United States Marshals Service. This process can take as little as 30 days and, again, as much as a decade. In our experience, it usually takes around nine months for a extradition from Colombia and several years for one from Mexico.
Having explained the background of how we get our international cases, I would now, if you will indulge me, love to tell you about some of the exciting successes that we have had in the last year or two.
I don’t know if we have any Netflix fans here, but if we do, you may have heard of a series called “Somos.” It is a difficult-to-watch series that chronicles the events that led up to a massacre in a small village in Mexico called Allende by the Los Zetas cartel. The Zetas were notorious for their brutality, even by cartel standards. The Zetas ruthlessly carried out beheadings, hangings, torture, kidnappings, and even boiling or burning people alive, in order to intimidate and demoralize enemies and innocent civilians.
In September of this year, after seven years of extradition efforts, one of the men most responsible for these murders was sentenced to life imprisonment in the Eastern District of Texas. Numerous witnesses described how Hugo Cesar Roman-Chavarria, also known as “El Vecino,” participated in the massacre by traveling around Allende with Zetas gunmen, pointing out the homes of relatives and associates of a person they suspected was providing information to law enforcement, marking these people and their families for death. Zetas gunmen went door-to-door throughout the village, killing men, women, and children, decimating the town. After the Zetas finished their mass murder, they loaded the bodies into a barn and incinerated the building. A definitive conclusion has never been reached as to the number of men, women, and children who lost their lives, but the total is believed to be at least 100, and possibly up to 300.
Over the course of a three-day sentencing hearing in August and September of this year the district court heard from 13 witnesses for the government, including other high-ranking Zetas members, who, like Chavarria, had been extradited to the United States to face charges. These witnesses described not only Chavarria’s willing involvement in this massacre, but also described his role as a major player in the drug importation trade, overseeing the shipment of enormous quantities of cocaine between Piedras Negras, Mexico, and Eagle Pass, Texas on behalf of the Los Zetas cartel. In the end, Chavarria received a well-deserved life sentence, and hopefully some justice and peace was delivered to the families and friends of those who were killed in Allende.
Similarly, just last month, one of the largest and most violent drug traffickers in Guatemala, Wilson Luargas-Garcia, was also sentenced to a term of life imprisonment. Luargas-Garcia was a prolific drug trafficker, responsible for the trafficking of large amounts of cocaine to drug cartels and guerrilla fighters in Central and South America. He coordinated shipments with the Revolutionary Armed Forces of Colombia (also known as the FARC), one of Colombia’s largest and most violent rebel groups. Luargas-Garcia, who had a reputation for employing violence against his rivals, used illicit proceeds from his drug sales to acquire weapons and to train his personal paramilitary security guards. In April 2018, Luargas-Garcia was extradited to the Eastern District of Texas to face drug charges. Despite being in custody, he continued to run his drug trafficking organization from various local jails, using fellow inmates to smuggle cell phones and other contraband into the jail facilities. Federal investigators teamed with the Smith County Sheriff’s Office and the Guatemalan Ministerio Público to uncover these activities and dismantle his drug operation. In retaliation, Luargas-Garcia threatened to kill one of our Eastern District federal prosecutors. Like Chavarria, Luargas Garcia also received a well-deserved life sentence.
One more colorful defendant was Jhon Eduis Viafara Mina, also known as “Futbolista,” “Goleador,” and “Makelele.” Viafara was involved in the logistical preparations of dispatching large cocaine shipments by aircraft or boat from Colombia to Mexico via Central America, with an eventual destination of the United States. Based on this conduct, Viafara was indicted, extradited, and eventually sentenced to 11 years for his involvement in narcotics trafficking. One fun fact is that Viafara Mina was once a star soccer player in Europe, playing for teams in Great Britain and Spain and, notably, the Colombia National Team. Despite all of this, the lure of even greater riches brought him into narcotics trafficking. In the end, it only brought him a lengthy prison sentence.
In closing, I wish to make one obvious, but crucial point. We could not bring these cases without the tremendous partnerships that we enjoy with our federal, state, local, and international partners. For those agents and officers in attendance, let me say that EDTX is tremendously grateful for your hard work, your dedication, and your commitment to the rule of law. You make a real difference in the lives of Americans, as well in the lives of those who live in countries where the fight against drug cartels is a matter of literal life and death. EDTX will continue to be your partner and your ally as we continue this noble pursuit. Let us, together, bring this fight to the cartels’ front door.
Thank you again for the invitation to come and address you today. I truly appreciate the contribution that the North Texas Crime Commission makes to keeping public safety at the forefront of the public conversation. Thank you for what you do.”
The North Texas Crime Commission (formerly the Greater Dallas Crime Commission) was established in 1950. Its belief is that proper enforcement and enlightened prevention can be achieved through a comprehensive and cooperative effort involving concerned citizens and law enforcement. In addition to monthly membership breakfasts, the NTCC travels to Austin monthly during the Legislative Session to meet with key lawmakers and annually to Washington, D.C. to meet with law enforcement officials and lawmakers.
Wednesday 10 November 2021
Whitefish man claiming to be a former CIA agent admits scheme to defraud investor of $2.3 million to fund bogus “off the books” rescue missionsRead the Press Release
MISSOULA – A Whitefish man accused of defrauding another man of $2.3 million by claiming he was a former CIA agent and needed money to fund “off the books” rescue missions for the CIA but instead used the money for personal expenses admitted charges today, Acting U.S. Attorney Leif M. Johnson said.
Matthew Anthony Marshall, 51, pleaded guilty to wire fraud, money laundering and tax evasion as charged in a second superseding indictment. Marshall faces a maximum of 20 years in prison, a $250,000 fine and three years of supervised release on the most serious charge of wire fraud.
A plea agreement filed in the case calls for eight other counts to be dismissed at sentencing if the court accepts the agreement. In addition, restitution is mandatory, and Marshall agrees to be responsible for complete restitution. The government will request restitution of approximately $2,355,000 for the wire fraud and $899,327 for tax evasion for tax years 2013 through 2016. The final figure of fraud restitution will be determined at sentencing.
U.S. District Judge Donald W. Molloy presided. Judge Molloy will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Marshall is to be sentenced on March 3, 2022. Marshall was released pending further proceedings.
In court documents, the government alleged that in the spring of 2013, Marshall began working for the victim, identified as John Doe, in Montana. Marshall convinced Doe that he was a former CIA agent and a former member of an elite Force Reconnaissance unit in the U.S. Marine Corps who had engaged in covert missions around the world. In fact, Marshall was never affiliated with the CIA in any capacity and never served in an elite Force Reconnaissance unit in the Marine Corps. Marshall received an Other Than Honorable discharge from the Marine Corps Reserve in November 1999 after accumulating 82 absences from inactive duty training.
Marshall asked Doe if he would fund “off the books” CIA-backed missions, which Marshall said would involve assault teams he would lead on rescue and other operations in foreign countries. Based on Marshall’s false representations, Doe wired large sums of money, totaling about $2,355,000, to Marshall at least six times, all under the guise of funding missions for the CIA as described by Marshall. Doe first wired Marshall $400,000 in April 2013 for an “off the books” paramilitary mission to Mexico. Marshall asked Doe for money for more purported missions from October 2013 until March 2016, and Doe wired Marshall additional sums.
Marshall did not use the money from Doe for any missions, to Mexico or anywhere else. Instead, Marshall spent the money on personal expenses and loans and gifts to friends and family members. Marshall also failed to report money received from Doe in 2013 for two purported missions as income on his tax return, resulting in a tax evasion of $356,756.
Assistant U.S. Attorneys Timothy J. Racicot and Ryan G. Weldon are prosecuting the case, which was investigated by the IRS Criminal Investigation and FBI.
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Virginia Beach Man Sentenced for Production of Child PornographyRead the Press Release
NORFOLK, Va. – A Virginia Beach man was sentenced yesterday to 22 years in prison for producing images of child sexual abuse.
According to court documents, from December 2018 to January 2019, James Thomas White, 26, knowingly communicated with a thirteen-year-old child on Twitter and repeatedly asked her to send him sexually explicit photographs and videos of herself, which she did. White also used Twitter and other online accounts to find others with whom to trade child sexual abuse material, which he kept on his electronic devices as well as in online cloud storage accounts. After court-authorized searches were executed at White’s residence and in electronic accounts, he was found to possess approximately 1,500 images and 450 videos of child pornography, some of which portrayed the sexual abuse of infants or toddlers.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Raymond Villanueva, Special Agent in Charge of Homeland Security Investigations (HSI) Washington, D.C. Office; and Paul Neudigate, Chief of Virginia Beach Police, made the announcement after sentencing by U.S. District Judge Rebecca Beach Smith.
Assistant U.S. Attorney Rebecca Gantt prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:21-cr-12.
United States Attorney's Office District of Arizona October 2021 Immigration and Border Crimes ReportRead the Press Release
I. Illegal Reentry After Deportation (8 U.S.C. 1326)
289 individuals were charged in October with illegal reentry
A. 217 of those 289 individuals had previously been convicted of non-immigration criminal offenses in the U.S.
Of the 217 individuals with non-immigration criminal records:
1. 49 had violent crime convictions, including:
0 individuals had homicide convictions
11 individuals had sex offense convictions
15 individuals had domestic violence convictions2. 17 had property crime convictions
3. 31 had DUI convictions
4. 115 had drug crime convictions
B. 142 of those 289 individuals had been deported three or more times
II. Alien Smuggling (8 U.S.C. 1324)
48 individuals were charged in October with alien smuggling
III. Illegal Entry (Criminal Consequence Initiative) (8 U.S.C. 1325)
0 individuals were charged in October with illegal entry on the CCI calendar
Criminal conviction information is based on preliminary criminal history reports provided by the arresting agency.
These numbers represent United States Attorney's Office prosecutions only. These numbers do not include individuals apprehended by immigration enforcement officials and subjected solely to administrative process.
RELEASE NUMBER: 2021-081_October Immigration and Border Crimes Report
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Union County Woman Admits Obstructing JusticeRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, woman today admitted that she obstructed an investigation by destroying documents, Acting U.S. Attorney Rachael A. Honig announced.
Latoyia McCollum, 46, of Hillside, New Jersey, pleaded guilty by videoconference before U.S. District Judge Brian Martinotti to an information charging her with obstruction of justice.
According to documents filed in the case and statements made in court:
On Oct. 6, 2020, federal law enforcement officers executed a search at a location pursuant to a court-authorized search warrant. Prior to the execution of the search, Maurice Mills had been charged by complaint with wire fraud for fraudulently obtaining more than approximately $400,000 in unemployment insurance benefits from the state of New York. These fraudulently obtained benefits were often provided on a credit/debit card or by wire transfer into a bank account, where a debit card could then be used to withdraw the money.
Upon entering the location, law enforcement officers observed McCollum in the kitchen area next to a shredder that was on a counter. She was placing what appeared to be a credit/debit card into the shredder while on a face-to-face communication on a handheld mobile device. Law enforcement officers thereafter recovered from the shredder the shreds of what appeared to be a credit/debit card and approximately four credit/debit cards that had been placed into the shredder, but which had not been fully shredded. Law enforcement officers also recovered four credit/debit cards that were on the counter next to the shredder.
After being read and waiving her Miranda rights, McCollum stated that when law enforcement officers entered the location she was on the phone with Mills, who had instructed her to shred the credit/debit cards. Mills pleaded guilty on Sept. 20, 2021, to one count of wire fraud and is scheduled to be sentenced in February 2022.
The charge of obstruction of justice is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits to McCollum or twice the gross loss suffered by the victims. McCollum is scheduled to be sentenced March 16, 2022.
Acting U.S. Attorney Honig credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Acting Special Agent in Charge Jonathan Mellone in Manhattan; special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., in Newark; postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero in Newark; and special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt in Newark, with the investigation leading to today’s guilty plea. She also thanked the New York State Department of Labor, Office of Special Investigations for its assistance in the investigation.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
Defense counsel: Candace Hom Esq., Assistant Federal Public Defender, Newark
Union County Man Sentenced to 85 Months in Prison for Carjacking Uber Driver in NewarkRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man was sentenced today to 85 months in prison for his role in a Newark carjacking in which a firearm was brandished, Acting U.S. Attorney Rachael Honig announced today.
Rakeem McNair, 22, of Roselle, New Jersey, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of carjacking and brandishing a firearm in furtherance of the carjacking. Raquin Tanner, 26, of Newark, pleaded guilty on March 10, 2021, to one count of aiding and abetting the carjacking and was sentenced by Judge Arleo on July 26, 2021, to 78 months in prison.
According to documents filed in this case and statements made in court:
On Aug. 13, 2019, the victim parked her car, which she used for her work as an Uber driver, on Summer Avenue in Newark. At approximately 11:00 p.m., the victim was sitting in the driver’s seat when three males approached her car.
Video surveillance from the scene showed that Tanner walked with the other two males around the corner. As they neared the victim’s car, Tanner spoke to the other two, then went ahead of them, looked into the passenger seat of the car, and upon seeing the lone female driver, signaled the other two males to begin the carjacking.
One of the other males pointed a firearm through the driver’s side window, opened the door and attempted to physically remove the victim from the car. A struggle ensued, and McNair went around the car to aid his conspirator in dragging the victim from the car. McNair and the unidentified male threw the victim violently to the ground and drove away with the vehicle.
In addition to the prison term, Judge Arleo sentenced McNair to three years of supervised release.
Acting U.S. Attorney Honig credited the Newark Police Department, under the direction of Public Safety Director Brian O’Hara; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; and special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s sentencing.
The government is represented by Senior Trial Counsel Robert Frazer of the Organized Crime/Gang Unit in Newark.
Defense counsel:
McNair: Charles B. McKenna, Esq., Morristown, New Jersey
Tanner: Joseph R. Rubino Esq., Union, New Jersey
U.S. Attorney's Office Joins in Recognizing National Native American Heritage Month, November 2021Read the Press Release
PORTLAND, Ore.—On October 29, 2021, President Joseph R. Biden Jr. proclaimed November 2021 as National Native American Heritage Month.
The proclamation honors the perseverance of American Indian and Alaska Native peoples and reaffirms the nation’s commitment to upholding trust and treaty responsibilities, strengthen Tribal sovereignty, and advance Tribal self-determination. The proclamation also recognizes the resilience of native peoples despite a painful history of enduring unjust Federal policies, to include assimilation and termination.
The U.S. Attorney’s Office for the District of Oregon joins its Tribal, federal, state, and local partners in taking this opportunity to celebrate the countless contributions of native peoples past and present and honor the influence they have had on the advancement of our nation.
“The U.S. Attorney’s Office is deeply committed to working with our Tribal partners to build and sustain strong, healthy, and safe native communities. The disproportionately high levels of violence experienced by American Indians and Alaska Native peoples, especially Native American women, is unacceptable and requires urgent law enforcement action,” said Scott Erik Asphaug, Acting U.S. Attorney for the District of Oregon. “Pursuing justice on behalf of Tribal communities will always be a top priority for this office.”
The U.S. Attorney’s Office has a proud history of actively engaging in government-to-government relationship building with the nine federally recognized Tribal nations in the District of Oregon. A multi-disciplinary team of prosecutors and victim advocates works tirelessly to bring justice to Tribal crime victims and provide statewide leadership on a variety of pressing law enforcement issues impacting Tribal communities.
In June 2020, the U.S. Attorney’s Office announced the hiring of its first Missing and Murdered Indigenous Persons (MMIP) program coordinator and, in February 2021, released its first annual MMIP program report. MMIP is an important and sensitive issue to Tribal communities. To learn more about the U.S. Attorney’s Office MMIP program, please visit www.justice.gov/usao-or/indian-country/mmip.html.
With Veteran’s Day 2021 approaching, the U.S. Attorney’s Office also recognizes and honors American Indians and Alaska Natives who have served or continue to serve in our nation’s Armed Forces. As President Biden’s proclamation states, for more than 200 years, “Native Americans have defended our country during every major conflict and continue to serve at a higher rate than any other ethnic group” in the U.S.
For more information about the U.S. Attorney’s Office Indian Country Program or to sign up for our Indian Country Quarterly Newsletter, please visit www.justice.gov/usao-or/indian-country.
Two Fresno County Residents Indicted for Dealing Fentanyl PillsRead the Press Release
FRESNO, Calif. — A federal grand jury returned two indictments today, charging two Fresno County men with possession of fentanyl with intent to distribute it, Acting U.S. Attorney Phillip A. Talbert announced.
In addition to being charged with possession with intent to distribute fentanyl, Uriel Diaz-Santos, 19, of Fresno, was also charged with possession of a firearm in furtherance of a drug trafficking crime. According to court documents, after two juveniles overdosed on fentanyl pills, investigators interviewed witnesses and reviewed phone records, ultimately developing enough evidence to obtain a search warrant for Diaz-Santos’s residence. On Nov. 2, 2021, investigators searched Diaz-Santos’s house and found thousands of fentanyl pills and a firearm.
This case is the product of an investigation by the Fentanyl Overdose Resolution Team, a multi‑agency team composed of Homeland Security Investigations, the Drug Enforcement Administration, and the Fresno Police Department.
A separate indictment charges David Joseph Yama, 38, of Reedley, with possession of fentanyl with intent to distribute it. According to court documents, on Sept. 1, 2020, police officers went to a gas station in Clovis after a report of suspicious activity and contacted Yama and two associates. A search of the car that Yama had been driving uncovered a large amount of cash, ammunition, plastic baggies, vials containing fentanyl, and over 200 counterfeit oxycodone pills that contained fentanyl.
This case is the product of an investigation by the Clovis Police Department and the Fentanyl Overdose Resolution Team, a multi-agency team composed of the Drug Enforcement Administration, the Homeland Security Investigations, and the Fresno Police Department.
Assistant United States Attorney Justin J. Gilio is prosecuting both cases.
If convicted, Diaz-Santos faces a mandatory minimum of 15 years in prison up to a maximum statutory penalty of life in prison and a fine of up to $1 million. If convicted, Yama faces a maximum statutory penalty of 20 years in prison and a fine of up to $1 million. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
These cases are part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.
These cases are being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Twin Brothers Plead Guilty to Drug and Gun OffensesRead the Press Release
BOSTON – Twin brothers from Hyannis pleaded guilty in federal court in Boston today to gun and drug offenses.
Di’lon Smith, a/k/a Dilon Smith, and Denzel Smith, 29, each pleaded guilty to one count of possession with intent to distribute a controlled substance analogue called cyclopropyl fentanyl, one count of possession with intent to distribute fentanyl, one count of conspiracy to distribute and to possess with intent to distribute fentanyl and a controlled substance analogue and one count of being a felon in possession of firearms and ammunition. U.S. Chief District Court Judge F. Dennis Saylor IV scheduled sentencing for March 9, 2022. The Smiths were initially indicted in April 2018 on the firearm and ammunition charge and subsequently charged in a superseding indictment in October 2018 on the controlled substances charges.
Between Oct. 3, 2017 and Nov. 29, 2017, the brothers conspired with others to sell drugs, including fentanyl and cyclopropyl fentanyl. The brothers used a Hyannis apartment rented by Di’lon Smith to store drugs for street-level resale. A search of the apartment on Nov. 29, 2017 found the brothers in possession of fentanyl and more than 100 grams of cyclopropyl fentanyl intended for sale, a Smith & Wesson .22 caliber revolver loaded with six rounds of ammunition, a Heckler & Koch 9mm caliber pistol and magazines loaded with 18 rounds of 9mm caliber ammunition.
The charge of conspiracy to distribute and to possess with intent to distribute fentanyl and a controlled substance analogue provides for a sentence of up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of up to $1 million. The charges of possession with intent to distribute a controlled substance analogue and possession with intent to distribute fentanyl each provide for a sentence of up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of up to $1 million. The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $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; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division; and Barnstable Police Chief Matthew Sonnabend made the announcement today. Assistant U.S. Attorneys Christine Wichers and Robert E. Richardson of Mendell’s Major Crimes Unit are prosecuting the case.