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17 December 2021
New Orleans Man Sentenced for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LA – United States District Judge Sarah S. Vance sentenced JON YOUNG, age 36, of New Orleans, Louisiana, on December 15, 2021 for violating the Federal Controlled Substances Act, announced U.S. Attorney Duane A. Evans.
According to the court records, YOUNG conspired to possess with the intent to distribute and to distribute 100 grams or more of a mixture or substance containing a detectable amount of heroin.
District Judge Vance sentenced YOUNG to sixty (60) months imprisonment to be followed by four (4) years of supervised release. District Judge Vance also ordered that YOUNG pay a $200 mandatory special assessment fee.
This case was investigated by Special Agents of the Federal Bureau of Investigation (FBI). The prosecution is being handled by Assistant United States Attorney David Haller.
New Mexico Man Sentenced for Unlawful Possession of Ammunition After Standoff with Bannock County Sheriff’s DeputiesRead the Press Release
POCATELLO – An Albuquerque, New Mexico man was sentenced to 71 months in federal prison for possession of ammunition by a prohibited person.
According to court records, Jason Richard Sandoval, 46, of Albuquerque, was contacted by Bannock County Sheriffs deputies on May 7, 2020 near Yoxall Road in Downey, Idaho. Sheriff’s deputies responded to a call that Sandoval was claiming to have a bomb and acting erratically. Deputies attempted to contact Sandoval, however Sandoval barricaded himself in a nearby pumphouse. Sandoval discharged a firearm during the standoff with law enforcement. Eventually, Sandoval surrendered himself to authorities. Deputies recovered ammunition and what appeared to be a personally made firearm, commonly known as a “ghost gun,” in Sandoval’s possession. Sandoval had previously been convicted of multiple felony offenses and was prohibited from possessing firearms and ammunition.
Senior U.S. District Judge B. Lynn Winmill also ordered Sandoval to serve three years of supervised release following his prison sentence. Sandoval pleaded guilty to the charge on May 11, 2021.
Acting U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the cooperative efforts of the Bannock County Sheriff's Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives, which led to charges.
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.
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 188 defendants have been indicted by the EIP SAUSA. Of these defendants, 41 have been indicted on prohibited possession of firearms or ammunition charges. The defendants indicted under the program have been sentenced to 7,857 months (approximately 655 years) in federal prison, representing an average prison sentence of 53.09 (4.42 years). Defendants indicted for offenses involving firearms or ammunition serve, on average, approximately 42.13 months (3.5 years) in federal prison.
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New Jersey Man Going to Prison for 20 Years for Producing Child Pornography and CyberstalkingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Timothy Myers, 37, of Freehold, NJ, who was convicted of production of child pornography and cyberstalking, was sentenced to serve 240 months in prison by U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Charles M. Kruly, who handled the case, stated that between December 2016 and August 2017, Myers, using the names “CJ Mikowski” and “Colin James,” communicated via Facebook with five minor girls, who ranged in age from 13-16 years old and lived in the Western District of New York. Myers, who pretended to be a boy close in age to the minor girls, coerced or attempted to coerce, each of the minor girls into sending sexually explicit visual depictions of themselves. Myers also transported one victim from New York State to New Jersey and engaged in sexual intercourse with her, and distributed sexually explicit images of the victim over Facebook.
Between March and August 2017, Myers, while residing in New Jersey, contacted four of the victims, made the victims believe that he was in a relationship with them and requested that they produce additional sexually explicit images of themselves. Myers told the victims that if they did not send him these images, he would distribute previously sent images of the victims. This caused the victims to suffer substantial emotional distress as a result of repeated and sustained harassment.
The sentencing is the result of an investigation by New York State Police, under the direction of Major James Hall, and Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Matthew Scarpino.
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Nassau County Repeat Offender Pleads Guilty to Federal Drug OffenseRead the Press Release
Jacksonville, Florida – Shawn Andrew Wilson (47, Fernandina Beach) has pleaded guilty to possession with intent to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine. Wilson faces a minimum mandatory penalty of 5 years, and up to, 40 years in federal prison.
According to the plea agreement, on September 2, 2021, at approximately 2:00 a.m., in Jacksonville, Florida, Wilson was riding a motorcycle with the license plate folded up and not visible – a traffic violation. When a police officer signaled him to stop, Wilson made a U-turn and appeared to pull over but then accelerated and fled, racing through a red traffic light and then crashing. Officers then arrested Wilson and, during a subsequent search, found in his backpack a jacket, the linings of which concealed four plastic bags containing over 100 grams of methamphetamine.
Wilson committed this offense while serving a term of supervised release for a previous federal offense. Specifically, in July 2019, a federal court convicted Wilson of possession of a firearm by a convicted felon and sentenced him to 40 months’ imprisonment followed by a three-year term of supervised release, which term he began serving in April 2021.
This case was investigated by the Drug Enforcement Administration and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Michael J. Coolican.
Morris County Attorney and Settlement Agent Admits Role in Reverse Mortgage Fraud SchemeRead the Press Release
TRENTON, N.J. – A Morris County, New Jersey, man today admitted his role in a reverse mortgage fraud scheme that exploited several elderly homeowners, U.S. Attorney Philip R. Sellinger announced.
Martin D. Eagan, 50, of Montville, New Jersey, pleaded guilty before U.S. District Judge Anne E. Thompson to an information charging him with one count of conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:
Eagan, principal of the Martin D. Eagan Law Firm, was an attorney licensed by the state of New Jersey with a practice in Morristown, New Jersey, that primarily focused on real estate transactions, such as loan originations, reverse mortgages and the refinancing of residential homes.
From 2007 through 2010, Eagan, acting as a settlement agent, was required to comply with instructions established by financial institutions that provided loan funds to borrowers. As part of the lending process, Eagan was required to generate and certify HUD-1 settlement statements that Eagan submitted to lenders. The HUD-1 settlement statement itemized the receipt and disbursement of all funds for each real estate closing. HUD-1 settlement statements were required to be approved by a lender before a settlement agent could disburse funds. The disbursement of funds had to mirror the representations made on the lender-approved HUD-1.
Eagan and his conspirators submitted fraudulent documentation to lenders to persuade lenders to approve and fund reverse mortgages and the refinancing of existing mortgages. Fraudulent documentation submitted included false HUD-1s that concealed from the lenders the fact that disbursements of loan proceeds went to conspirators, or entities the conspirators owned or controlled, and false appraisals that overstated the value of homes.
Eagan, his conspirators, and others controlled the loan application process from the time the homeowners applied for loans to the disbursement of loan funds, and ultimately through the diversion of loan proceeds to conspirators.
The conspiracy to commit bank fraud carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for April 14, 2022.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak, with the investigation leading to today’s guilty plea.
The government is represented by Special Assistant U.S. Attorneys Kevin Di Gregory and Charlie L. Divine of the Federal Housing Finance Agency, Office of Inspector General.
Montgomery Man Sentenced to Seven Years in Federal Prison for Being a Felon in Possession of a FirearmRead the Press Release
Montgomery, Alabama – On December 16, 2021, Taurus Lebron Green, 40, from Montgomery, Alabama, was sentenced to 84 months in prison, to be followed by three years of supervised release, announced Acting United States Attorney Sandra J. Stewart. There is no parole in the federal system.
According to court records, in early 2019, investigators suspected that Green and co-defendant, Daryl Tyrone Gray, were engaging in the sale of illegal drugs. Then, on April 11, 2019, agents discovered that Green and Gray had made arrangements to purchase cocaine in the parking lot of a Montgomery restaurant. Both men were arrested immediately after the illegal transaction took place. When law enforcement searched the vehicle Green and Gray were travelling in, they found two handguns. Green has multiple felony convictions and is prohibited by federal law from possessing a firearm. Green pleaded guilty to possession of the firearms on January 14, 2021.
This case was investigated by the Montgomery Police Department, the Department of Homeland Security, the Drug Enforcement Administration (DEA), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant United States Attorneys Russell T. Duraski and Chelsea Phillips prosecuted the case.
Monongalia County man sentenced for firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Reynaldo Millan, of Morgantown, West Virginia, was sentenced today to 19 months and 21 days of incarceration for a firearms charge, United States Attorney William J. Ihlenfeld, II announced.
Millan, age 30, pleaded guilty in July 2021 to one count of “Possession of a Firearm by a Person Under Felony Indictment.” Millan, prohibited from having a firearm, admitted to having a .223/5.56mm rifle and a .38 caliber revolver in December 2018 in Monongalia County.
Assistant U.S. Attorney Sarah E. Wagner prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Thomas S. Kleeh presided.
Mission Man Sentenced for Conspiracy to Distribute MethRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Mission, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on December 13, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Thomas Pacheco, Sr., age 30, was sentenced to 120 months in federal prison, followed by five years of supervised release, $1,000 fine, and a $100 special assessment to the Federal Crime Victims Fund.
Pacheco was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on August 11, 2020. He pled guilty on June 21, 2021.
Between January 1, 2015, and January 1, 2020, Pacheco was involved in a conspiracy with several members of his family and others to distribute methamphetamine in and around the Rosebud Reservation in central South Dakota. Pacheco was involved with the distribution of 500 to 1.5 kilograms of methamphetamine.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Pacheco was immediately turned over to the custody of the U.S. Marshals Service.
Mission Man Sentenced for CarjackingRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Mission, South Dakota, man convicted of Carjacking was sentenced on December 13, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Eurico Da Silva-Roubideaux, a/k/a Eurico Roubideaux, age 20, was sentenced to 72 months in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Da Silva-Roubideaux was indicted by a federal grand jury on March 9, 2021. He pled guilty on September 23, 2021.
The conviction stemmed from an incident that occurred on February 7, 2021 in Todd County, South Dakota. On that date, Da Silva-Roubideaux was walking and was offered a ride by the victim as it was cold outside. Once the two men arrived at a destination and exited the vehicle, Da Silva-Roubideaux struck the victim repeatedly with a hammer. At that point, the victim ran away and Da-Silva Roubideaux got into the victim’s vehicle and drove away.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Da-Silva Roubideaux was immediately turned over to the custody of the U.S. Marshals Service.
Mexican Man Sentenced to Prison for Illegally Reentering the United States After Being Twice DeportedRead the Press Release
A man who illegally returned to the United States after being deported was sentenced today to 12 months in federal prison.
Gabriel Marceleno-Lopez, age 29, a citizen of Mexico illegally present in the United States and residing in Waterloo, Iowa, received the prison term after a guilty plea on July 28, 2021, to one count of illegal reentry into the United States after having been deported following a conviction for an aggravated felony.
At the guilty plea, Marceleno-Lopez admitted he had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. Marceleno-Lopez was deported in April 2012 following a February 2012 conviction in the District Court of Ford County, Kansas, in State v. Gabriel Marceleno-Lopez, Case No. 10-CR-579, for aggravated robbery, an aggravated felony. He was deported a second time in March 2017 following a July 2014 felony conviction in the United States District Court for the District of Kansas, in United States v. Gabriel Marceleno-Lopez, Case No. 6:14-CR-10032, for illegal reentry after an aggravated felony conviction.
In May 2021, Marceleno-Lopez came to the attention of immigration agents following his arrest for Harassment of a Public Official and Interference with Official Acts in Black Hawk County, Iowa. These charges are still pending in state court.
Marceleno-Lopez was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Marceleno-Lopez was sentenced to 12 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Marceleno-Lopez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-2035.
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Medical doctor, pharmacists, and 11 others charged with operating illegal pill millsRead the Press Release
ATLANTA – An Atlanta-area gynecologist, two pharmacists, and ten other individual accomplices or pill “sponsors” have been indicted, charged with the alleged illegal sale and distribution of controlled substances to addicts and drug dealers.
“When medical professionals allegedly abuse their credentials to divert dangerous prescriptions pills to the streets for personal profit, the toll on our communities is devastating,” said U.S. Attorney Kurt R. Erskine. “The opioid crisis is far from over, and we continue our work with our federal, state and local law enforcement partners to pursue those who traffic in these dangerous drugs.”
“While in the midst of this country’s prescription opioid epidemic, removing and ultimately eliminating physicians who recklessly overprescribe pharmaceutical pills (particularly prescribed opioids) for non-medical reasons, is an important part of DEA’s mission,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “This pill peddling gynecologist allegedly distributed large quantities of opiate-based pills to scores of drug-seeking patients. He, and his accomplices, will no longer be able to commit such unlawful acts thanks to spirited law enforcement cooperation.”
“This indictment should serve as a warning to any medical professional considering operating a pill mill,” said James E. Dorsey, Special Agent in Charge IRS Criminal Investigation, Atlanta Field Office. “IRS-CI remains committed to working with our law enforcement partners to bring those seeking to illegally enrich themselves at the expense of our communities, to justice.”
According to U.S. Attorney Erskine, the charges, and other information presented in court: Anthony Mills, M.D., was a licensed physician with a specialty listed with the Georgia Composite Medical Board of Gynecology. Mills, however, did not maintain a gynecology practice at any address listed with Medical Board or the DEA. Instead, he allegedly operated a pill mill out of his Atlanta-area home, where he allegedly sold prescriptions to addicts and drug-dealing sponsors in exchange for cash payments.
Despite Mills’s specialization in gynecology, many of the “patients” to whom Mills provided prescriptions were male. A large number of the prescriptions allegedly were provided to sponsors, including defendants Thomika Riley, Brittany Tinker, Natalie Jackson, Keandre Bates, Jeana Alston, Javon Hamilton, Chafulumisa Lisbon, Marcena Jordan, and Travious Polain, in the names of third parties that Mills had never evaluated, and in many cases had never met. Some of the prescriptions that Mills issued to sponsors were for individuals whose identities had been stolen, who were incarcerated at the time of the prescription, or who were deceased at the time of the prescription. Mills also allegedly allowed Rogerick Smith and Natalie Jackson, who were not medical professionals, to sell prescriptions they wrote using Mills’ name and DEA registration number.
The indictment also alleges that Raphael Ogunsusi operated two pharmacies – Evansmill Pharmacy and Retox Pharmacy – for the purpose of unlawfully dispensing and distributing controlled substances. Ogunsusi, as well as pharmacist Moses Kirigwi, dispensed a large number of prescriptions issued by Mills and others, that were presented by sponsors in the names of third parties. Ogunsusi and Kirigwi dispensed these prescriptions despite the fact that they were in excess of medically appropriate dosages and combinations and despite obvious signs that the pills were being abused, sold, or otherwise diverted. Most of the controlled substance prescriptions dispensed at Evansmill Pharmacy and Retox Pharmacy were written by Mills, including prescriptions filled by sponsors in the names of individuals were not present, and in many cases, whose identities had been stolen. Ogunsusi and Kirigwi often charged over $900 to fill a single prescription for oxycodone and $500 to fill a prescription of Percocet, well above the market value for legitimate prescriptions.
To disguise the significantly inflated prices that he charged for the illegal controlled substance prescriptions, Ogunsusi allegedly falsified the pricing information on his pharmacy computers to give the appearance that he had charged market prices for the controlled substances. Ogunsusi and Kirigwi also required sponsors to purchase additional non-controlled substances that the sponsors neither wanted or needed, which further maximized Ogunsusi’s profits for the illegal dispensing and distributing of controlled substances.
The following have been arrested and arraigned on federal drug charges for their respective roles in operating “pill mills:”
- Anthony Mills, 55, of Atlanta, Georgia,
- Raphael Ogunsusi, 69, of Conyers, Georgia,
- Moses Kirigwi, 29, of Brookhaven, Georgia,
- Thomika Riley, a/k/a TJ, 48, of McDonough, Georgia,
- Brittany Tinker, 28, of Lithonia, Georgia,
- Natalie Jackson, 37, of Stone Mountain, Georgia,
- Rogerick Smith, a/k/a Fasho, 43, of Douglasville, Georgia,
- Keandre Bates, 29, of Decatur, Georgia,
- Chafulumisa Lisbon, a/k/a Chafu, 31, of Atlanta, Georgia,
- Javon Hamilton, 32, of Bluffton, South Carolina,
- Marcena Jordan, 28, of Forrest Park, Georgia.
Raphael Ogunsusi was also indicted individually on money laundering charges. Defendants Jeana Alston, a/k/a Tina, 41, of Atlanta, Georgia, and Travious Polain, a/k/a Magic, 30, of Decatur, Georgia, who are also charged in the indictment, remain fugitives.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Drug Enforcement Administration, and the Internal Revenue Service Criminal Investigation.
Assistant U.S. Attorneys David A. O’Neal and Laurel Boatright Milam are prosecuting the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
McAllen man guilty of selling child pornographyRead the Press Release
McALLEN, Texas – A 34-year-old south Texan has admitted he spoke to people who were interested in buying images of child pornography, announced Acting U.S. Attorney Jennifer B. Lowery.
Astro Rey De Leon admitted to possessing child pornography with the intent to sell it on the internet.
Authorities had learned a computer was receiving child pornography. They were able to trace it to De Leon at his residence. He admitted he was actively involved in speaking with individuals who were interested in buying child pornography via applications on his cell phone.
Authorities conducted a search of his phone and discovered he had tried to sell child pornography as recently as a month prior to their arrival at his residence.
U.S. District Judge Crane accepted the plea and set sentencing for March 1, 2022. At that time, De Leon faces a minimum of five and up to 20 years in federal prison as well as a possible $250,000 maximum fine.
De Leon has been and will remain in custody pending that hearing.
Homeland Security Investigations - Rio Grande Valley Child Exploitation Task Force conducted the investigation.
Assistant U.S. Attorney Eliza Carmen Rodriguez is prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Martinsburg man admits to drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – James Curtis Taylor, of Martinsburg, West Virginia, has admitted to a drug charge, United States Attorney William J. Ihlenfeld, II announced.
Taylor, 54, pleaded guilty today to one count of “Unlawful Use of Communication Facility.” Taylor admitted to using a phone to distribute Eutylone in November 2020 in Berkeley County.
Taylor faces up to four years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Mon Metro Drug Task Force, a HIDTA-funded initiative investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Man Sentenced to Prison for Attempting to Burn Sweepstakes Business in Spring LakeRead the Press Release
WILMINGTON, N.C. – An Autryville man was sentenced yesterday to 30 months in prison, three years of supervised release, and ordered to make restitution on a charge of Malicious Damage to Property Used in Commerce, in violation of Title 18, United States Code, Section 844(i).
According to the indictment and statements at the sentencing hearing, Joshua Ray Powell, 27, of Autryville, and his brother Justin Powell, aiding and abetting each other, attempted to destroy by fire the Skills Gaming Center, located at 14260 NC 210 South, in Spring Lake, North Carolina. Joshua Powell jumped a fence and doused the exterior of the building with gasoline. After making a gasoline trail from the building, he ignited the fire. Despite these efforts, the building was not ultimately destroyed. When confronted later, Joshua Powell admitted to his role in the fire.
The charges against Justin Powell remain pending. An indictment is merely an accusation. A defendant is presumed innocent until proven guilty.
Michael F. Easley, Jr., the United States Attorney for the Eastern District of North Carolina made the announcement. The investigation was conducted by the Internal Revenue Service Criminal Investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorney William M. Gilmore represents the United States.
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. 5:20-CR-245-1D(2).
Malden Man Charged with Armed RobberyRead the Press Release
BOSTON – A Malden man was charged yesterday in federal court in Boston in connection with the armed robbery of a market in Malden on Dec. 12, 2021.
John Schurko, 56, was charged with one count of interference with commerce by robbery. Following an initial appearance today before U.S. District Court Chief Magistrate Judge M. Page Kelley, Schurko was detained pending a detention hearing scheduled for December 30, 2021.
It is alleged that on Dec. 12, 2021 at about 8 p.m., Schurko entered the Harvard Market in Malden, displayed what appeared to be a black handgun, went behind the counter and demanded money from the clerk. According to the charging documents, on Dec. 16, 2021, Schurko’s getaway vehicle was located in a hotel parking lot in Medford where he was subsequently arrested. A search of the vehicle recovered, among other things, a black Airsoft gun that resembled a real firearm.
The charge of interference with commerce by robbery provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Malden Police Chief Kevin Molis; Medford Police Chief Jack Buckley; Billerica Police Chief Daniel Rosa; and Woburn Police Chief Robert F. Rufo Jr. made the announcement. Assistant U.S. Attorney Robert E. Richardson of Mendell’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Macon Probationer with Violent Criminal Record, Girlfriend Plead Guilty in “Lying and Buying” Gun CaseRead the Press Release
MACON, Ga. – A Macon man who was arrested with a loaded firearm purchased for him by his girlfriend soon after he was released from prison for aggravated assault pleaded guilty to a federal firearms charge today.
Logan Riley Nettles aka Carrot Top, 23, of Macon, pleaded guilty to possession of a firearm by a person under a felony indictment before U.S. District Judge Marc Treadwell on Thursday, Dec. 16. Nettles faces a maximum ten years in prison and a $250,000 fine. Sentencing is scheduled for March 9, 2022. Co-defendant Ansley Nicole Hunt, 22, of Savannah, Georgia, pleaded guilty to making false statements on Nov. 4, and is facing a maximum five years in prison and a $250,000 fine. Hunt’s sentencing is scheduled for Jan. 12, 2022. There is no parole in the federal system.
“Individuals with violent criminal histories who con their way into illegal possession of firearms face the possibility of federal prosecution,” said U.S. Attorney Peter D. Leary. “Furthermore, lying in order to buy a firearm for a prohibited prison is a federal offense that carries serious penalties.”
According to court documents, ATF was conducting undercover surveillance in Macon in May as part of Operation United Front when they spotted Nettles, who had been released from prison on March 8 and was serving probation. Nettles, who was wearing a blue backpack, got into Hunt’s car. Officers stopped Nettles and conducted a search pursuant to his probation. Inside Nettle’s backpack was a 9mm handgun with a loaded, extended 30-round magazine. Although Nettles told officers Hunt had “nothing to do with it,” Hunt asserted that the weapon was hers. Hunt later admitted that she purchased the gun for Nettles and Nettles admitted he was with her when she bought the gun. In addition, when Hunt bought the firearm for Nettles, she made false statements on the ATF Form 4473 she signed at the time of purchase, knowing the firearm was for Nettles, a prohibited person. Nettles was convicted of aggravated assault and gang activity in the Superior Court of Bibb County, Georgia, in 2019.
Operation United Front is an ongoing ATF-led investigation into illegal gun possession and drug distribution centered in the Macon, Georgia, community using data gathered from the National Integrated Ballistic Information Network (NIBIN). Agents used NIBIN data to plot shooting incidents in the Macon area on a map. When areas of high density relating to these shootings were identified, confidential informants and undercover agents were directed to these areas of criminal activity. NIBIN is the only national network that allows for the capture and comparison of ballistic
evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
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.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Assistant U.S. Attorney Joy Odom is prosecuting the case for the Government.
Lying on Form in Order to Buy Guns for a Felon Results in Probation for Waterloo WomanRead the Press Release
A woman who falsified an ATF form to purchase two guns for a felon was sentenced today to five years of federal probation.
Jamie Marie Graham, age 23, from Waterloo, Iowa, received the prison term after a June 25, 2021 guilty plea to one count of making a false statement during the purchase of a firearm.
Court records reflect that Graham met Dmontrey Redmond in late October 2020. Redmond was a felon and could not legally possess or purchase firearms, but Graham agreed to purchase two guns for him in early December 2020. Graham and Redmond entered a gun store in Waterloo, where Redmond selected two pistols and Graham purchased them, using a cash card provided to her by Redmond. After she purchased the pistols, Graham gave them to Redmond. One of the pistols was eventually given to, or purchased by, individuals in Cedar Rapids. Those individuals left the pistol loaded and unsecured inside their home. On December 23, 2020, their four-year-old child found the loaded firearm and accidentally discharged the weapon. The fired round struck the child through the chin and head area and caused significant injuries. The child survived the injuries. The other firearm Graham purchased has not been recovered. Redmond has pleaded guilty to being a felon in possession of a firearm and is awaiting sentencing.
Graham was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Graham was sentenced to five years’ probation.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Cedar Rapids Safe Streets Task Force and Waterloo Police Department. The task force is composed of representatives from the Federal Bureau of Investigation and the Cedar Rapids Police Department and was prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-115-CJW.
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Long Island MS-13 Associate Pleads Guilty to Racketeering in Connection with the Murders of Four Young Men in a Central Islip Park in 2017Read the Press Release
Earlier today, Alexis Hernandez, an associate of the Guanacos Li’l Cycos Salvatruchas (“Guanacos”) clique of La Mara Salvatrucha, also known as the MS-13, a transnational criminal organization, pleaded guilty in federal court in Central Islip to racketeering charges in connection with his participation in the April 11, 2017 murders of Justin Llivicura, Michael Lopez, Jorge Tigre, and Jefferson Villalobos. The defendant was arrested on July 13, 2017 at his home in Central Islip. When sentenced, Hernandez faces a maximum sentence of life in prison. Upon completion of his sentence, he faces deportation from the United States. Today’s proceeding was held before United States District Judge Gary R. Brown.
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 Stuart Cameron, Acting Commissioner, Suffolk County Police Department (SCPD), announced the guilty plea.
“With today’s guilty plea, the defendant acknowledges his role in the brutal and senseless murders of four young men he believed had disrespected the MS-13. I hope our efforts to bring these killers to justice provides some measure of comfort to the families of the victims, although no criminal case will replace their loved ones,” stated United States Attorney Peace. “This Office and its law enforcement partners remain steadfast in their commitment to seek justice for the victims of this terrible crime and to end the MS-13’s destructive reign of premeditated violence in our communities.”
“This was one of the most gruesome murders in Suffolk County’s history,” stated SCPD Acting Commissioner Cameron said. “I commend the U.S. Attorney’s Office for the Eastern District of New York and our law enforcement partners for ensuring Alexis Hernandez will be held accountable for his role in this brutal crime.”
According to court filings and statements by the defendant at the guilty plea proceeding, on the evening of April 11, 2017, two female associates of the MS-13 lured five young men, including the four victims, to a community park in Central Islip where they were attacked and killed. The MS-13 members and associates believed the victims to be members of a rival gang who had disrespected the MS-13. Hernandez and several other MS-13 members and associates met in a wooded area behind the park where weapons were distributed and the plan to kill the victims was discussed. The female associates arrived at the park, led the victims to a predetermined wooded area and sent the MS-13 members a text message notifying them of their arrival. Hernandez and the other MS-13 members and associates proceeded to the designated location and encircled the victims under the cover of darkness. One of the intended victims immediately fled and was able to escape. Llivicura, Lopez, Tigre and Villalobos were surrounded by Hernandez and others, who prevented their escape. Hernandez, who was armed with a wooden club, helped to lead the victims deeper into the woods where other MS-13 members brutally murdered them with machetes, knives and wooden clubs. After the attack, the MS-13 members dragged the victims’ bodies to a more secluded spot in the woods and then fled. The victims’ bodies were discovered the following evening.
More than a dozen MS-13 members and associates have been charged in connection with the April 11, 2017 murders.
Today’s conviction is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent, transnational criminal organization. The MS-13’s leadership is based in El Salvador, Honduras, Guatemala and Mexico, but the gang has thousands of members across the United States. With numerous branches, or “cliques,” the MS-13 is the most violent criminal organization on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults. Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 60 murders in the Eastern District of New York, resulting in the convictions of dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, which is comprised of agents and officers of the FBI, SCPD, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation Office, Suffolk County Sheriff’s Office, the New York State Police, the Hempstead Police Department, the Rockville Centre Police Department and the New York State Department of Corrections and Community Supervision.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Paul G. Scotti, Justina L. Geraci and Megan E. Farrell are in charge of the prosecution.
The Defendant:
ALEXIS HERNANDEZ
Age: 25
Central Islip, New YorkE.D.N.Y. Docket No. 16-CR-403 (GRB)
Lexington Man Sentenced to 322 Months for Armed Fentanyl and Methamphetamine TraffickingRead the Press Release
LEXINGTON, Ky.— A Lexington man, Robert W. Bledsoe, 57, was sentenced to 322 months in federal prison on Friday, by Chief U.S. District Judge Danny C. Reeves, after pleading guilty to possession with intent to distribute 40 grams or more of fentanyl, possession with intent to distribute 50 grams or more of methamphetamine, possession of firearm in furtherance of drug trafficking and possession of a firearm by a convicted felon.
According to Bledsoe’s plea agreement, in September 2020, law enforcement received information that he was trafficking narcotics from his residence. After an investigation, law enforcement went to Bledsoe’s residence to serve a search warrant and found him in possession of a pistol, 76 grams of heroin, and 147 grams of methamphetamine. Subsequently, officers also located another firearm, ammunition, drug trafficking paraphernalia, and a debt ledger. Bledsoe further admitted that he was a convicted felon and was prohibited from owning a firearm.
Bledsoe was previously convicted of trafficking a controlled substance first degree, in the Fayette Circuit Court and of conspiracy to distribute oxycodone, in the U.S. District Court for the Eastern District of Kentucky.
Bledsoe pleaded guilty to the current charges in August 2021.
Under federal law, Bledsoe must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for eight years.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; and Chief Lawrence Weathers, Lexington Police Department, jointly announced the sentence.
The investigation was conducted by the ATF and Lexington Police Department. The United States was represented by Assistant U.S. Attorney Cynthia Rieker.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Lebanon County Man Sentenced to 210 Months’ Imprisonment for Drug Trafficking and Firearm OffensesRead the Press Release
HARRISBURG -The United States Attorney’s Office for the Middle District of Pennsylvania announced today that James Larnerd, age 48, of North Cornwall Township, Lebanon County, was sentenced to 210 months’ imprisonment by U.S. District Court Judge Jennifer P. Wilson for drug trafficking and firearm offenses.
According to United States Attorney John C. Gurganus, Larnerd was convicted on March 24, 2021, following a trial by jury of distributing methamphetamine, possession of a firearms by a prohibited person, and using or maintaining drug premises. Evidence at trial showed that during the execution of a search warrant at Larnerd’s North Cornwall Township residence on June 4, 2019, law enforcement recovered methamphetamine, drug distribution materials, and two loaded handguns. Several witnesses gave testimony at trial detailing the drug trafficking activity at Larnerd’s home.
The case was investigated by the North Cornwall Township Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Johnny Baer prosecuted the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. 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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Las Cruces man convicted of federal firearms, narcotics offensesRead the Press Release
ALBUQUERQUE, N.M. – A federal jury returned a guilty verdict on Dec. 16 in the trial of Paul Michael Astorga, 35, of Las Cruces, New Mexico, on one count each of being a felon in possession of a firearm and ammunition, possession with intent to distribute a controlled substance and possession of a firearm in furtherance of a drug trafficking crime. Astorga will remain in custody pending sentencing, which has not been scheduled.
According to an indictment and other court records, on Nov. 3, 2020, Astorga was found in possession of a firearm and fentanyl. At the time of his arrest, Astorga was subject to an active warrant for his arrest for a violation of the terms of his supervised release for a 2014 conviction of being a felon in possession of a firearm. A search of his residence resulted in the recovery of a loaded 9mm handgun and 66 pills containing fentanyl.
Astorga was previously convicted of multiple felonies, including robbery, possession of a controlled substance, tampering with evidence, trafficking by possession with intent to distribute, and being a felon in possession of a firearm and ammunition. As a previously convicted felon, Astorga could not legally possess a firearm or ammunition.
Astorga faces an anticipated sentencing range of 1 to 12 and a half years in prison with a mandatory five-year sentence to be served consecutively for possession of a firearm in furtherance of a drug trafficking crime.
The FBI, United States Marshals Service and Las Cruces Police Department Metro Narcotics Taskforce investigated this case. Assistant United States Attorneys Maria Y. Armijo and Joni Autrey Stahl are prosecuting the case.
Laplace Woman Pleads Guilty to Violations of the Federal Controlled Substances Act and InterstateRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that TRACY MORGAN, age 51, a resident of LaPlace, Louisiana, pleaded guilty on December 16, 2021 to a Two Count Superseding Bill of Information. In Count One, MORGAN pled guilty to conspiracy to distribute and possess with the intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of cocaine hydrochloride. In Count Two, MORGAN pled guilty to interstate and foreign travel or transportation in aid of racketeering.
According to court documents, in August 2019, on behalf of co-conspirator Ellis Batiste, Sr., MORGAN transported money from Louisiana to Texas to pay for 10 kilograms of cocaine hydrochloride, which she then transported to Louisiana where she was subsequently stopped and arrested by law enforcement.
The Honorable District Court Judge Mary Ann Vial Lemmon will sentence MORGAN on March 17, 2022. In Count One, MORGAN faces a mandatory minimum term of imprisonment of five years and a maximum of forty years imprisonment, a fine of up to $5,000,000.00, a period of supervised release of at least four years, and a mandatory special assessment fee of $100.00. For Count Two, MORGAN faces a maximum sentence of up to four years imprisonment, a fine up to $250,000.00, a period of supervised release up to five years, and a mandatory special assessment fee of $100.00.
The case was investigated by the U.S. Drug Enforcement Administration and the St. John the Baptist Parish Sheriff’s Office. Assistant United States Attorney Bayonle Osundare is prosecuting the matter.
Laplace Man Pleads Guilty to Violations of the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that OCTAVIUS NARCISSE, age 54, a resident of LaPlace, Louisiana, pleaded guilty on December 16, 2021 to a Superseding Bill of Information. In Count One, NARCISSE pled guilty to possession with the intent to distribute a quantity of a mixture and substance containing a quantity of N-phenyl-N-[1-(2-phenylethyl)-4-piperidinyl] (fentanyl) and cocaine hydrochloride. In Count Two, NARCISSE pled guilty to knowingly and intentionally using a telephone in committing, causing, and facilitating the commission of the violation in Count One.
According to court documents, in April 2019, NARCISSE was stopped and arrested by law enforcement shortly after picking up 1.015 kilograms of N-phenyl-N-[1-(2-phenylethyl)-4-piperidinyl] propenamide (fentanyl) and 4.995 kilograms of cocaine hydrocholoride on behalf of co-conspirator, Ellis Batiste, Sr.
The Honorable District Court Judge Mary Ann Vial Lemmon will sentence NARCISSE on March 17, 2022. In Count One, NARCISSE faces a maximum sentence of up to twenty (20) years of imprisonment, a fine up to $1,000,000.00, a period of supervised release not less than three years, and a mandatory special assessment fee of $100.00. In Count Two, NARCISSE faces a maximum sentence of up to four (4) years imprisonment, a fine up to $250,000.00, a period of supervised release up to one year, and a mandatory special assessment fee of $100.00.
The case was investigated by the U.S. Drug Enforcement Administration and the St. John the Baptist Parish Sheriff’s Office. Assistant United States Attorney Bayonle Osundare is prosecuting the matter.
Jury convicts gang member of methamphetamine trafficking conspiracy and attempt offensesRead the Press Release
ATLANTA - A federal jury has convicted Antonio Jamar Laster of conspiring and attempting to traffic methamphetamine sourced from a cartel-connected stash house hidden in plain sight in the north Atlanta suburbs.
“Methamphetamine abuse ravages our society by destroying lives and fueling violence,” said U.S. Attorney Kurt R. Erskine. “We are grateful to our federal and state law enforcement partners who strive to eliminate this scourge by targeting the transnational trafficking organizations that profit from poisoning our community.”
“Stopping traffickers like Laster, who flood our streets with their poison, not only prevents the flow of dangerous drugs into our communities, it also prevents the crime and violence associated with drug activity,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama.
“Months of investigation led to a large amount of dangerous drugs taken off the street. The GBI works collaboratively with federal, state, and local law enforcement to identify and eliminate gang activity and make communities safer,” said Vic Reynolds, Director, Georgia Bureau of Investigation.
According to U.S. Attorney Erskine, the charges and other information presented in court: On October 9, 2020, Antonio Jamar Laster drove to a shopping center in Woodstock, Georgia to purchase three kilograms of methamphetamine from couriers working at the behest of the notoriously violent Cártel de Jalisco Nueva Generación (“CJNG”) Mexican drug cartel. The couriers, after replenishing their drug supply from a single-family home in Marietta that was being utilized as a drug distribution hub and storage location, met Laster. Laster had concealed $21,100 in cash inside a Wendy’s fast-food bag to purchase the narcotics.
Agents from Homeland Security Investigations (HSI) and the Georgia Bureau of Investigation (GBI) were actively monitoring the Marietta stash house and awaiting the issuance of a search warrant when they saw the couriers depart for the shopping center to meet Laster. Some agents followed the couriers while others stayed behind to search the home.
At the shopping center, agents interdicted the methamphetamine and arrested Laster, the two couriers, and a third cartel associate before any drugs or money exchanged hands. A criminal history check revealed that Laster was a member of the Gangster Disciples who served a prison term in Tennessee for aggravated robbery. At the stash house, agents recovered more than 100 kilograms of crystal methamphetamine and several pounds of liquid methamphetamine.
The three men arrested with Laster pleaded guilty on March 9, 2021 to conspiring to possess methamphetamine with intent to distribute. Laster elected to proceed to trial. On December 16, 2021, a jury found Laster guilty of conspiracy to possess a controlled substance with intent to distribute and attempted possession of a controlled substance with intent to distribute.
Sentencing for Antonio Jamar Laster, 31, of Nashville, Tennessee, is scheduled for March 16, 2022, at 2:00 p.m. before U.S. District Judge Steven D. Grimberg.
This case is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Georgia Bureau of Investigation with assistance from the Cherokee Multi-Agency Narcotics Squad.
Assistant U.S. Attorneys Theodore S. Hertzberg and Noah R. Schechtman are prosecuting the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Jury Finds Convicted Felon Guilty of Possessing AmmunitionRead the Press Release
Tampa, Florida – A federal jury has found Victor Ricardo Grant (39, Brandon) guilty of possession of ammunition by a convicted felon. Grant faces a minimum mandatory sentence of 15 years, and up to, life in federal prison. His sentencing hearing is scheduled for March 4, 2022.
Grant was initially indicted on February 4, 2020, and a superseding indictment was filed on September 28, 2021.
According to testimony presented at trial, federal agents, along with Florida local law enforcement agencies, investigated a series of credit union robberies and carjackings committed in Hillsborough County and Pinellas County in 2019. As part of the investigation, the FBI obtained a search warrant for Grant’s residence in Brandon, Florida. The Hillsborough County Sheriff’s Office and federal investigators searched Grant’s home on January 22, 2020, and found approximately 400 rounds of 7.62 caliber ammunition inside backpacks in Grant’s bedroom closet and in the attic. All of the ammunition in the backpack in the attic was loaded in magazine clips for an AK-47 assault rifle; that backpack also contained ammunition drum magazines for that type of rifle. Because of his several prior felony offense convictions, federal law prohibits Grant from possessing ammunition.
This case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Hillsborough County Sheriff’s Office, the Florida Department of Law Enforcement, the Pinellas County Sheriff’s Office, the Pinellas Park Police Department, the St. Petersburg Police Department, and the Clearwater Police Department. It is being prosecuted by Assistant United States Attorneys Michael Sinacore and Diego Novaes.
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.
Jury Convicts Marijuana Trafficker of Drug-Related MurderRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted an Alexandria man yesterday of murdering another man in retaliation for robbing him of an ounce of marijuana, and trying to convince a witness to lie for him to cover it up.
According to court documents and evidence presented at trial, Melvin Palma Flores, 20, was a marijuana dealer who carried firearms for protection while dealing drugs. On October 25, 2019, the victim, X.B., arranged for his two associates to purchase marijuana from Palma Flores. In reality, X.B. intended for his associates to rob Palma Flores. When the associates showed up to Palma Flores’s home in Alexandria, one of them stole the marijuana from Palma Flores and brought it back to X.B.
Palma Flores then planned his retaliation against X.B. for setting up the robbery. Palma Flores, who was carrying a firearm, met with two of his associates and traveled to X.B.’s apartment complex in Alexandria. X.B., who was unarmed, was sitting on the staircase outside of his apartment. Palma Flores discharged his firearm multiple times, striking X.B. in the right arm and in the top of the head, causing X.B.’s death.
Following his arrest in February of 2020, Palama Flores wrote a letter to his girlfriend instructing her to lie about the events that occurred on the night of the murder and to influence others to lie about the incident to law enforcement.
Palma Flores was convicted of murder by firearm in relation to drug trafficking, possession with intent to distribute marijuana, and witness tampering and is scheduled to be sentenced on June 29, 2022. He faces a maximum term of life in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Kevin Davis, Fairfax County Chief of Police; and Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division, made the announcement after U.S. District Judge Rossie D. Alston, Jr. accepted the verdict.
Assistant U.S. Attorneys Michael P. Ben’Ary and Katherine E. Rumbaugh are prosecuting 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. 1:20-cr-142.
Jury Convicts Former Tallahassee Federal Correctional Officer of Sexual Abuse of InmateRead the Press Release
TALLAHASSEE, FLORIDA – A federal jury in Tallahassee convicted Jimmy Lee Highsmith, 42, of Marianna, on one count of sexual abuse of a ward while on duty at the Federal Correctional Institution in Tallahassee. The guilty verdict, returned yesterday afternoon, at the conclusion of a three-day trial, was announced by Jason R. Coody, Acting United States Attorney for the Northern District of Florida.
Evidence introduced at trial revealed that Highsmith abused his authority as a correctional officer to engage in sexual acts with an inmate on various occasions. The jury received testimony and exhibits showing that between March and April 2014, Highsmith ordered a female inmate at Federal Correctional Institution Tallahassee to meet him in his office and the officers’ bathroom to engage in illicit sexual acts. Surveillance video footage confirmed that, on April 30, 2014, Highsmith and his victim were caught by other inmates engaging in sexual acts between 11:30 p.m. and midnight in his office. The victim disclosed the illicit sex acts the next day and was taken to Tallahassee Memorial Hospital where a sexual assault examination confirmed injuries resulting from sexual activity.
“The sexual abuse of inmates by federal correctional officers is intolerable,” said Acting U.S. Attorney Coody. “Those sentenced to prison are to atone for their crimes and gain skills that will enable them to return as productive members of society. They should not be preyed upon by officers who violate their oath of office. This office will vigorously investigate and prosecute any officer who engages in such acts of abuse to the fullest extent of the law.”
“Today, Highsmith was brought to justice for abusing his authority and sexually assaulting an inmate under his supervision. The Department of Justice Office of the Inspector General will continue to investigate anyone who engages in this type of conduct,” said James F. Boyersmith, Special Agent in Charge of the Department of Justice Office of the Inspector General Miami Field Office.
Highsmith faces a maximum term of fifteen years’ imprisonment, a $250,000 fine, and five years to life on supervised release. As a result of this conviction, Highsmith is required by law to register as a sex offender.
This conviction was the result of an investigation by the Department of Justice Office of Inspector General. Assistant United States Attorneys David L. Goldberg and Lazaro P. Fields are prosecuting the case.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Joint U.S.-EU statement following the U.S.-EU Justice and Home Affairs MinisterialRead the Press Release
Attorney General Merrick B. Garland hosted the U.S.-EU Justice and Home Affairs Ministerial at the Department of Justice on Dec. 16, 2021. Joined by Secretary of Homeland Security Alejandro Mayorkas, the Attorney General welcomed Commissioner for Justice and Consumer Affairs Didier Reynders, Commissioner for Home Affairs Ylva Johansson, and Slovenian Ministers for Justice Marjan Dikaučič and for Home Affairs Aleš Hojs representing the Presidency of the EU Council. Other senior EU officials who participated in person or remotely, included the Director of Europol, President of Eurojust and EU Counterterrorism Coordinator. A joint statement was issued following the meeting, which can be found here: /media/1181601/dl?inline
Attorney General Garland and Secretary of Homeland Security Mayorkas are joined by EU Commissioners, Presidency of the EU Council and others at U.S.-EU Justice and Home Affairs Ministerial.Jefferson Parish Man Sentenced for Brandishing a Firearm During and in Relation to a Crime of ViolenceRead the Press Release
NEW ORLEANS - U.S. Attorney Duane A. Evans for the Eastern District of Louisiana, announced that TREYVON TOBIAS (“TOBIAS”), age 22, of Jefferson Parish, Louisiana was sentenced on December 16, 2021 to 125 months imprisonment today by United States District Court Judge Jane Triche Milazzo for Brandishing a Firearm During and in Relation to a Crime of Violence, in violation of Title 18, United States Code, Section 924(c)(1)(A)(ii); Hobbs Act Robbery, in violation of Title 18 United States Code, Section 1951(a), and Conspiracy to Use a Firearm During and in Relation to a Crime of Violence, in violation of Title 18, United States Code, Sections 924(o). Following imprisonment, TOBIAS was ordered to serve 3 years of supervised release and pay a $300 mandatory special assessment fee.
According to court documents, in December 2017, TOBIAS and others forcibly entered the residence of Victim-1 after pistol-whipping the victim. TOBIAS and others then robbed the victim of marijuana, money, and a cell phone at gunpoint. Analysis of cell phone location information after the robbery helped uncover the whereabouts of TOBIAS and his co-conspirators during the robbery.
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.
The U.S. Attorney’s Office praised the work of the Federal Bureau of Alcohol, Tobacco, Firearms & Explosives. The prosecution of the case was conducted by Assistant U.S. Attorney Kathryn McHugh.
Jefferson County man pleads guilty for receiving child pornographyRead the Press Release
ST. LOUIS – United States District Court Judge Matthew T. Schelp accepted a plea of guilty from Brent Lawson on today’s date for receiving child pornography. A grand jury in the Eastern District of Missouri previously indicted Lawson for the charge. Judge Schelp set sentencing for March 18, 2022.
On or between May 24, 2019 and November 24, 2020, in the Eastern District of Missouri, Lawson knowingly received and possessed images and videos over the internet of prepubescent minors, including minors under the age of twelve, engaged in sexually explicit conduct.
On May 24, 2019, Lawson, utilizing the internet, accessed child sexual abuse and exploitation material on a website that was an online bulletin board dedicated to the advertisement and distribution of child pornography. Law enforcement infiltrated that website and identified Lawson as having accessed the website.
Subsequently, law enforcement obtained a search warrant for Lawson’s residence that was executed on November 24, 2020. Forensic analysis of electronics seized by law enforcement during the search confirmed Lawson possessed fifty-four videos of child pornography that he downloaded from the internet.
Lawson was previously convicted on April 22, 2004, in the United States District Court for the Eastern District of Missouri for transportation of child pornography, attempted receipt of child pornography and possession of child pornography. In that case the defendant pled guilty and was sentenced to sixty months imprisonment, followed by a period of three years on supervised release.
The case was investigated by the Federal Bureau of Investigation.
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 Dec. 16 was:
Martin Leo Jimenez, 27, of Billings, on charges of attempted coercion and enticement. If convicted of the most serious crime, Jimenez faces a mandatory minimum 10 years to life in prison, a $250,000 fine and five years to life of supervised release. Jimenez was released pending further proceedings. The FBI investigated the case. PACER case reference. 21-104.
Appearing on Dec. 14 was:
Peter Lloyd Paskiewicz, 50, of Billings, on charges of conspiracy to possess with intent to distribute a controlled substance and possession with intent to distribute a controlled substance. If convicted of the most serious crime, Paskiewicz faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Paskiewicz was released pending further proceedings. The Drug Enforcement Administration investigated the case. PACER case reference. 21-76.
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Highlands County Man Sentenced to over 10 Years in Federal Prison for Drug TraffickingRead the Press Release
Miami, Florida – U.S. District Judge Aileen M. Cannon has sentenced a 49-year-old man from Highlands County, Florida, to 130 months in prison for drug trafficking.
According to the court record, Michael Barnett sold methamphetamine on two separate occasions in 2019. Specifically, on April 4, 2019, Barnett sold 27.60 grams of methamphetamine to a buyer in Avon Park, Highlands County, Florida, and on April 17, 2019, Barnett sold 28.00 grams of methamphetamine to a buyer in Avon Park.
Barnett previously pled guilty to distribution of five grams or more of methamphetamine.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and Deanne L. Reuter, Special Agent in Charge, Drug Enforcement Administration, Miami Field Division made the announcement.
DEA Miami investigated the case. The case was prosecuted by Assistant U.S. Attorney Michael D. Porter. Assistant U.S. Attorney Sara Klco is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-14026.
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Henniker Man Found Guilty of Unlawfully Possessing a Pipe BombRead the Press Release
CONCORD – Acting United States Attorney John J. Farley announced that a federal jury found James Leonard, 36, of Henniker, guilty of unlawfully possessing a destructive device. The verdict was returned on Thursday, December 16, 2021.
According to trial exhibits and witness testimony during the three-day jury trial, on June 12, 2018, the Bennington Police Department was called to the defendant’s apartment for a noise complaint. When the police arrived, they heard a male yelling and screaming. The police attempted to contact the defendant by knocking at his front door but were unable to contact him. The police went around to the back side of the apartment to a slider door in an effort to speak with the defendant. While they were at the back slider door, the police smelled an odor of burnt marijuana. Officers later obtained and executed a search warrant for the defendant’s residence. During the search, they located marijuana and the component parts for a pipe bomb.
The police contacted the New Hampshire State Police Bomb Squad who responded to the defendant’s residence to assist in the investigation and gather the explosive material. The ATF subsequently identified the explosive material and determined that the defendant had all the necessary component parts to readily assemble a destructive device, specifically, an explosive pipe bomb. This combination of parts was not registered on the National Firearms Registration and Transfer Record as required by law.
Leonard, who is detained, faces up to ten years in prison. He is scheduled to be sentenced on March 28, 2022.
“By constructing a pipe bomb in his residence, this defendant placed his neighbors and the community in danger,” said Acting U.S. Attorney Farley. “Thanks to good police work, law enforcement officers were able to secure this potentially-deadly device and prevent any individuals from being harmed. We will continue to work closely with our federal, state, and local law enforcement partners to protect public safety and prevent acts of violence in the Granite State.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New Hampshire State Police, and the Bennington Police Department. The Hancock, Antrim, and Francestown Police Departments also assisted with this matter. The case is being prosecuted by Assistant U.S. Attorney Debra M. Walsh.
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Glenwood Man Sentenced for Methamphetamine OffenseRead the Press Release
COUNCIL BLUFFS, IA – Joshua Matthew St. John, age 42, of Glenwood, was sentenced on December 16, 2021, by United States Chief District Court Judge John A. Jarvey to 132 months in prison for Possession with Intent to Distribute Methamphetamine. His term of imprisonment will be followed by five years of supervised release. According to court documents, St. John pleaded guilty to the methamphetamine offense in May of 2021. His co-defendant, Sarah Diane Adams, is scheduled to be sentenced on January 7, 2022.
On April 2, 2020, a confidential source arranged with St. John to purchase a quarter pound of methamphetamine. The confidential source traveled to St. John’s residence in Glenwood and was instructed by Adams to follow them to a stash location. The quarter pound of methamphetamine was measured from a larger amount and delivered by Adams to the confidential source. On April 24, 2020, the confidential source met St. John at his residence to purchase methamphetamine and reported seeing a large quantity of methamphetamine. Law enforcement executed a search warrant on St. John’s residence and recovered approximately a half pound of methamphetamine and distribution paraphernalia.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Iowa Division of Narcotics Enforcement, Council Bluffs Police Department, Pottawattamie County Sheriff’s Office, Mills County Sheriff’s Office, and Glenwood Police Department investigated the case. This case was prosecuted by the United States Attorney’s Offices for the Southern District of Iowa.
Georgia Man Pleads Guilty to Extorting Sexual Images and CyberstalkingRead the Press Release
BOSTON – A Georgia man pleaded guilty yesterday in federal court in Boston to extorting a Boston-area woman for videos, photographs and communications of a sexual nature as well as cyberstalking other women over social media.
Gary E. Leach, 24, of Athens, Ga., pleaded guilty to two counts of cyberstalking and one count of extortion through interstate threats. U.S. District Court Judge Angel Kelley scheduled sentencing for April 7, 2022. Leach was arrested and charged on April 23, 2021 and has been on home detention since he was released from custody on May 18, 2021.
From October 2019 until his arrest in April 2021, Leach, then a graduate student at the University of Georgia, targeted a Boston-area woman in an online cyberstalking and extortion campaign. Leach used anonymous Instagram accounts to obtain private video calls and photographs of a sexual nature from the victim through false promises of payment and surreptitiously recorded the victim during these calls. Leach threatened to share the recordings with the victim’s family if she did not continue to send him content of a sexual nature over Instagram and repeatedly harassed and extorted the victim for additional interactions of a sexually explicit and degrading nature.
Leach also cyberstalked other women on social media, including a woman residing in Canada. Leach recorded a video call of a sexual nature with this victim and sent the recording to her roommate. He repeatedly contacted the victim and used the recording to attempt to solicit additional interactions with her. Throughout 2019 and 2020, Leach attempted to solicit video performances of a sexual nature from at least a dozen Instagram users and initiated interactions with numerous other Instagram users for the purpose of exposing himself masturbating.
The charge of stalking by electronic means provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of extortion by interstate threat of injury to reputation provides for a sentence of up to two years in prison, one year 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 and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Assistant U.S. Attorney David M. Holcomb of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Georgetown Rapper Pleads Guilty to Possessing Nearly Two Kilograms of Black Tar Heroin located in Midlands ApartmentRead the Press Release
Charleston, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Edmund Dechane Holmes, a/k/a “Buddha SME,” 30, of Georgetown, has pleaded guilty to possession with intent to distribute more than a kilogram of heroin. Holmes’s case had been scheduled for trial in January 2022 until the change of plea this week.
Evidence presented to the Court showed that in the months leading up to August 2018, Holmes maintained an apartment in Columbia for the purpose of storing and distributing kilogram quantities of heroin. Authorities learned of his scheme after responding to a call about a disturbance at the address. Once there, officers from the Columbia Police Department obtained a search warrant based upon a small amount of drugs that were found in plain view.
During the search of a back bedroom, they located approximately 1.9 kilograms of black tar heroin along with other drug distribution paraphernalia such as a kilogram-size drug press, bulk money packaging supplies, and items used for mixing and cutting drugs. Holmes left behind several items proving his identity and acquired a renter’s insurance policy on the unit in his own name.
At the time of search, Holmes was serving a five-year term of federal supervised release after having recently been released from prison after serving a five-year sentence for a 2013 federal conviction for distribution of heroin. Holmes now faces a mandatory minimum penalty of 10 years in federal prison.
“Those who continue to push poison in their communities after serving prison sentences for these crimes deserve swift and severe punishments. That will happen in this case, and this office will continue to aggressively prosecute repeat offenders,” said Acting U.S. Attorney DeHart. “I commend our federal and state partners who helped make sure Holmes will spend at least a decade in federal prison, and who seized lethal drugs that would otherwise have ended up on the streets of South Carolina.”
“The severe punishment Holmes faces correctly reflects the criminal activities he engaged in,” said Robert J. Murphy, the Special Agent in Charge of the Drug Enforcement Administration (DEA) Atlanta Field Division. “He continuously poisoned the community with heroin despite having been arrested previously for heroin distribution. The guilty plea removes yet another dangerous criminal from our streets and sends a clear message to others who may be tempted to distribute this insidious drug: DEA and its law enforcement partners will relentlessly pursue and ultimately prosecute criminals like Holmes.”
In addition to a mandatory minimum of 10 years, Holmes faces a maximum penalty of life in federal prison. He also faces a fine of $10,000,000, at least five years of additional supervision to follow the term of imprisonment, and restitution. United States District Judge David C. Norton accepted the guilty plea and will sentence Holmes after receiving and reviewing a sentencing report prepared by the United States Probation Office.
The case was investigated by the DEA, with assistance from the Columbia Police Department and Georgetown County Sheriff’s Office. Assistant United States Attorneys Everett McMillian and Whit Sowards are prosecuting the case.
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Fraudster Sentenced to over Three Years in Federal Prison for Bank Fraud ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Erwin Boateng, age 32, of Glen Burnie, Maryland, to 42 months in federal prison, followed by three years of supervised release, for conspiracy to commit bank fraud in connection with a scheme in which the conspirators opened bank accounts using the stolen personal identifying information of other individuals, transferred or deposited funds obtained using stolen or altered checks, then quickly withdrew the funds. Judge Bennett ordered Boateng to forfeit $24,758.79.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore.
According to Boateng’s plea agreement, from September 1, 2015, through June 28, 2016, Boateng and others opened more than three dozen bank accounts using the stolen personal identifying information of other individuals or in the names of businesses. Boateng and his co-conspirators fraudulently transferred funds or deposited stolen and altered checks, then quickly transferred the fraudulently obtained funds to other accounts or withdrew the funds in cash. The total intended loss was approximately $374,076.90 and the amount successfully withdrawn was $188,176.24.
For example, on November 6, 2015, at the direction of a co-conspirator, Boateng opened a savings and a checking account at the Greenbelt, Maryland branch of a credit union, identifying himself as the brother of identity theft victim M.H., whom Boateng claimed was sponsoring his credit union membership. On November 12, 2015, Boateng and others caused a fraudulent ACH credit in the amount of $31,343.12 to be deposited into Boateng’s checking account. Boateng then withdrew $4,500 in cash and $10,000 in the form of a cashier’s check payable to Erwin Boateng from the account.
As detailed in the plea agreement, the illegally obtained proceeds from the fraudulent transactions were split between the co-conspirators.
Boateng pleaded guilty to the bank fraud conspiracy in September 2019, but subsequently engaged in a second fraud scheme, while on pre-trial release. Specifically, according to information provided during today’s sentencing hearing, Boateng attempted to open an investment account utilizing a fraudulent $9 billion “Secured Funding Bond.” Boateng represented that he wanted to deposit the bond in an investment account as collateral for a $500 million loan from the investment firm. The loan was to be used to finance “economic development in Africa” through Boateng’s Spherepoint International Group. The investment firm determined the documents were fraudulent and did not open any accounts. An individual who was attempting to assist Boateng was notified and she, in turn, notified law enforcement.
In addition to Boateng, four other co-conspirators pleaded guilty to their roles in the fraud scheme. David Livingston Attoh, age 34, a citizen of Ghana residing in Laurel, Maryland, was sentenced to three years in federal prison; Kabir Tunji Are, age 43, a Nigerian citizen residing in Silver Spring, Maryland, was sentenced to 13 months in federal prison; Kwaku Boateng Blay, age 38, a citizen of Ghana residing in Beltsville, Maryland, was sentenced to 21 months in federal prison; and Franck Ulrich Noche Nsiyabuze, age 31, of Laurel, Maryland, was sentenced to 18 months in federal prison.
United States Attorney Erek L. Barron praised the HSI for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Judson T. Mihok and Mary W. Setzer, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Four Executives Sentenced for SBA Fraud Scheme Spanning 13 YearsRead the Press Release
Four Indianapolis-area small business lending executives, all of whom worked for Banc-Serv Partners LLC (Banc-Serv) — a defunct lending service provider — were sentenced this month in the Southern District of Indiana for a 13-year conspiracy to defraud the Small Business Administration (SBA) in connection with its programs to guarantee loans made to small businesses.
Kerri Agee, 46, of Carmel, Banc-Serv’s former president, founder, and owner, was sentenced to 68 months in prison; Kelly Isley, 41, of Westfield, Banc-Serv’s former chief operating officer, was sentenced to 57 months; Chad Griffin, 48, of Carmel, Banc-Serv’s former chief marketing officer, was sentenced to 28 months; and Matthew Smith, 53, of Brownsburg, Banc-Serv’s co-founder and a former director of Bridge Business Bancorp, a lending institution that originated loans with Banc-Serv, was sentenced to 46 months. One additional co-conspirator, Nicole Smith, 44, of Indianapolis, is scheduled to be sentenced on Jan. 7, 2022. These defendants were convicted following a two-week jury trial in the U.S. District Court for the Southern District of Indiana. Agee, Isley, Griffin, and Nicole Smith were each convicted of one count of conspiracy to commit wire fraud affecting a financial institution. Additionally, Agee was convicted of four counts of wire fraud affecting a financial institution, and Isley and Nicole Smith were convicted of two counts of wire fraud affecting a financial institution. Matthew Smith was convicted of one count of conspiracy to commit wire fraud.
According to court documents and the evidence produced at trial, the defendants fraudulently obtained SBA-guaranteed loans on behalf of their clients, knowing that the loans did not meet SBA’s guidelines and requirements for the guarantees. The evidence at trial proved that from approximately 2004 until October 2017, the defendants helped originate SBA loans through Banc-Serv on behalf of various financial institutions and other lenders. On multiple occasions, they fraudulently obtained SBA guarantees for loans they knew to be ineligible. They did so by, among other things, knowingly misrepresenting what the loans would be used for, concealing disqualifying facts about the borrowers, and unlawfully diverting previously denied loan applications into expedited approval channels at the SBA. When the fraudulently guaranteed loans defaulted, the defendants caused the submission of reimbursement requests to the SBA to purchase the defaulted loans from investors and lending institutions, shifting a majority of the losses on the ineligible loans to the SBA.
“Fraud against SBA loan programs directly harms taxpayers and undermines the public’s faith in in important community programs.” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The Criminal Division is committed to prosecuting the offenders who exploit these programs and abuse the public trust.”
“These sentences hold the defendants accountable for their egregious conduct to cheat a government-guaranteed loan program — by lying on loan documentation, concealing key information, and asking the government to pay for defaulted loans,” said Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation (FDIC). “We remain committed to working with our law enforcement partners and investigating those who seek to exploit federal programs and undermine the integrity of our nation’s banks.”
“Making false statements to fraudulently gain access to SBA program funds is deplorable and it is unconscionable that anyone would steal from a program intended to help hard working Americans keep their businesses afloat,” said Acting Special Agent in Charge Gregory Nelsen of FBI Indianapolis. “The FBI and our partners will continue to work diligently to identify and pursue those engaged in such illegal activity and ensure they are no longer in a position to defraud anyone.”
“Conspiring to defraud any SBA program is a blatant attempt to selfishly rob the nation’s diverse small businesses community from supports that assist them to grow and build our strong economy,” said Special Agent in Charge Sharon Johnson of the SBA Office of Inspector General’s (OIG) Central Region. “OIG remains committed to rooting out bad actors and protecting the integrity of SBA programs every day. I want to thank the Department of Justice and our law enforcement partners for their dedication and pursuit of justice.”
In addition to their prison sentences, all four defendants were ordered to pay restitution to the SBA. Agee and Isley were each ordered to pay $2,289,681, Griffin was ordered to pay $685,022, and Matthew Smith was ordered to pay 1,651,450.
The FDIC Office of Inspector General, FBI, and SBA-OIG investigated the case.
Assistant Chief William E. Johnston and Trial Attorneys Vasanth Sridharan and Brandon Burkart of the Criminal Division’s Fraud Section prosecuted the case. The Department of Housing and Urban Development Office of Inspector General also assisted in the investigation.
Former Tallahassee Federal Correctional Officer Indicted for Bribery and Introduction of Contraband into A Federal PrisonRead the Press Release
TALLAHASSEE, FLORIDA – Jared Anderson, 26, of Tallahassee, Florida, was indicted by a federal grand jury on counts of bribery and introduction of contraband into a federal prison, announced Jason Coody, Acting United States Attorney for the Northern District of Florida, and James F. Boyersmith, Special Agent in Charge of the Department of Justice Office of the Inspector General Miami Field Office. Anderson made his initial appearance on December 17, 2021, in federal court to face the charges.
The indictment alleges that, between September and November 2021, while employed as a U.S. Bureau of Prisons Correctional Officer at the Federal Detention Center Tallahassee, Anderson accepted a bribe in exchange for smuggling synthetic cannabinoids into the detention center. The indictment further alleges that Anderson provided the synthetic cannabinoids to an inmate. Anderson faces up to 25 years’ imprisonment on the charged crimes.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The case was investigated by the Department of Justice Office of the Inspector General. The case is being prosecuted by Assistant United States Attorney Lazaro P. Fields.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office for the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Former School Superintendent Pleads Guilty in Virtual Education Fraud CaseRead the Press Release
Montgomery, Ala. – On Thursday, December 16, 2021, William L. Holladay, III, 57, now a resident of Montgomery, Alabama, pleaded guilty to conspiring with others to defraud the Alabama State Department of Education (ALSDE) by falsely inflating the number of students enrolled in public virtual schools, announced the United States Attorney’s Office for the Middle District of Alabama. Prior to October of 2020, Holladay was the superintendent of the Athens, Alabama City Schools System (ACS).
When he entered his guilty plea, Holladay admitted that he, along with co-defendant Thomas Michael Sisk, superintendent of the Limestone County Schools system (LCS), conspired to fraudulently inflate the number of students enrolled in their systems. According to court records and information contained in Holladay’s plea agreement, Holladay and Sisk did so when they submitted to the ALSDE lists of enrolled students who were, in reality, full-time students at private schools located in other parts of the state.
As a result of reporting these fraudulently enrolled students, the school systems received payments from Alabama’s Education Trust Fund as if the students actually attended public schools. Holladay, and his co-defendants, would then take portions of the money given to the school systems for their own personal use.
To obtain private school student information for use in the scheme, the defendants offered various benefits to private schools, most of which were located in Alabama’s Black Belt region. Those benefits included: laptop computers, access to online curriculum, standardized testing, and monetary payments. The students whose identities were used in the scheme had little to no connection to the public-school districts. Those students continued to attend brick-and-mortar private schools each day; they continued to participate in private school athletics; and their parents continued to pay tuition to the private schools.
At some upcoming date, Holladay will be sentenced. He faces a maximum five-year prison sentence, as well as substantial monetary penalties. Co-defendant William Richard Carter, Jr. is currently set for trial on February 7, 2022. Co-defendants Gregory Earl Corkren, David Webb Tutt, and Thomas Michael Sisk, previously pleaded guilty to conspiracy to defraud the government. Gregory Corkren also pleaded guilty to aggravated identity theft.
This case was investigated by the Federal Bureau of Investigation (FBI) and the United States Department of Education’s Office of Inspector General. Assistant United States Attorneys Jonathan S. Ross, Alice S. LaCour, and Brett J. Talley are prosecuting the case.
Former San Francisco Public Works Director Admits to String of Briberies and Corruption During Years in OfficeRead the Press Release
SAN FRANCISCO – Former San Francisco City Hall public official Mohammed Nuru agreed in a plea agreement filed today to plead guilty to honest services wire fraud, announced Acting United States Attorney Stephanie M. Hinds, Federal Bureau of Investigation Special Agent in Charge Craig D. Fair, and Internal Revenue Service–Criminal Investigation Special Agent in Charge Mark H. Pearson.
Today’s development follows the January 15, 2020, 79-page federal complaint filed against then San Francisco Department of Public Works (DPW) Director Mohammed Nuru charging him with public corruption and describing a long-running scheme involving multiple bribes and kickbacks during his tenure as DPW’s Director. Nuru, 59, of San Francisco, served as DPW’s Director from 2011 until charges were brought against him in 2020. Nuru was also charged in a second federal complaint filed on January 28, 2020, with lying to a federal agent in the course of the San Francisco City Hall corruption investigation. Today, in anticipation of entering his plea agreement resolving his cases, Nuru was arraigned today on an information – a charging document – that charges him with his sweeping scheme to defraud the San Francisco public of its right to his honest services in violation of 18 U.S.C. §§ 1343 and 1346.
“Mohammed Nuru admits to a staggering amount of public corruption in his plea agreement,” said Acting United States Attorney Stephanie M. Hinds. “For years, Nuru held a powerful and well-paid public leadership position at San Francisco City Hall, but instead of serving the public, Nuru served himself. He took continuous bribes from the contractors, developers, and entities he regulated. He now faces a prison sentence for enriching himself at the expense of the public as he sat in high office. Federal authorities will investigate public corruption wherever it leads in San Francisco and throughout the district.”
“Today’s announcement, while significant, is by no means the end of the FBI’s investigation into the corrupt conduct we have uncovered in San Francisco city government," said FBI Special Agent in Charge D. Fair. “We will continue to hold accountable those who seek to personally benefit by corrupting the fair administration of public business and we will persist in our commitment to protect the integrity of the institutions that serve the people of San Francisco.”
“Our communities place great trust and responsibility in our public figures. Mohammed Nuru ultimately betrayed this trust when he abused his power to defraud the City and County of San Francisco and its people,” said IRS Criminal Investigation Special Agent in Charge Mark H. Pearson. “We will not tolerate public corruption and will hold perpetrators accountable for their actions. Today’s guilty plea is a direct result of the hard work and dedication of IRS Criminal Investigation and our law enforcement partners towards obtaining justice.”
Nuru signed today’s plea agreement and the agreement has been filed with the United States District Court in preparation for Nuru’s upcoming appearance to enter his guilty plea orally. As the plea agreement outlines, before Nuru was appointed Director of DPW in 2011 he became DPW’s Deputy Director of Operations in 2000. The Deputy Director of Operations is DPW’s second most senior position, behind only the Director. In 2014, Nuru was also appointed to the Board of the Transbay Joint Powers Authority (TJPA) and eventually served as its Chair. As Deputy Director and eventually Director of DPW, and as Chair of the TJPA, Nuru exercised great influence over San Francisco (the City) business and policy, including public contracts, permits, and construction projects. His power and influence extended beyond DPW’s jurisdiction to numerous other City departments and agencies, making him one of the most powerful public officials in the City.
Nuru admits in his plea agreement to a spectrum of public corruption involving bribery and kickbacks he received while in DPW leadership. His admissions are summarized below:
Walter Wong:
In his plea agreement, Nuru admits he received a stream of bribes from Walter Wong. Wong did business in the City through Walter Wong Construction, among other businesses. In exchange for Wong’s bribes, Nuru helped Wong secure City contracts. Sometimes Nuru provided Wong with confidential insider City information on competitors’ bids or specifications. At other times Nuru allowed Wong to structure the requirements for the City’s Request for Proposals (RFP) for projects ahead of time, to tailor their requirements to ensure that Wong’s company would be the most-qualified bidder. Nuru also helped Wong expedite permit approvals.
Nuru admits in his plea agreement that his “corrupt relationship” with Wong began in approximately 2008 when Nuru was the Deputy Director for Operations at DPW. Wong installed a gate for free at Nuru’s San Francisco home in exchange for future business with DPW and the City. Wong continued to perform construction services for free, or nearly free, at Nuru’s San Francisco home and later primarily at Nuru’s vacation ranch property in Colusa County.
Nuru admits that, in exchange for Wong providing construction and other things of value, he exercised his official influence and took actions to benefit Wong. In one example outlined in the plea agreement, Nuru used DPW’s emergency contract process, which did not require a public bidding process, to direct construction work to Walter Wong Construction on a navigation center located at 1515 South Van Ness Street and on the Jelani House (a housing shelter), resulting in City payments to Wong’s company during fiscal years 2017-2018 and 2019-2020. In another example, Nuru used his position and official influence to direct DPW, the Market Street Association, and the San Francisco Public Utilities Commission to purchase Christmas lights from one of Wong’s businesses, regularly leading to tens of thousands of dollars’ worth of purchases.
Nuru further admits in his plea agreement that:
o between approximately 2008 and January 2020, Wong provided in excess of $260,000 in labor and materials for work on Nuru’s San Francisco home and Colusa County ranch. o Wong paid for home furnishings for Nuru, including a chandelier, kitchen appliances, and furniture. o Wong paid for Nuru to travel to China multiple times and to South America on one occasion, which included reimbursing Nuru in cash for the cost of international flights. Wong paid for Nuru and Sandra Zuniga, his girlfriend at the time, to accompany Nuru to South America and paid for their stay at the Ritz-Carlton in Santiago, Chile. o On multiple occasions, Wong handed Nuru envelopes of cash, often as much as $5,000 at a time.
Walter Wong was charged in June 2020 with conspiracy to defraud the public of its right to honest services and with conspiracy to engage in money laundering, both involving Nuru. Wong entered a guilty plea and agreed to cooperate with the government’s San Francisco City Hall corruption investigation.
Multimillion-Dollar Mixed-Use Development:
Nuru admits he received free travel, gifts, and benefits, for working with Walter Wong to use Nuru’s official position to benefit a billionaire developer from China, referred to as DEVELOPER 1 in the plea agreement, who was developing a large multimillion-dollar mixed use project in San Francisco. Wong, who worked as a consultant for DEVELOPER 1 on several of his large developments in the City, introduced Nuru to DEVELOPER 1. Nuru met with Wong, another Department of Building Inspection official, DEVELOPER 1, and others over dinner on multiple occasions and discussed DEVELOPER 1’s projects. Nuru never paid for the dinners. Nuru admits that he also met with DEVELOPER 1 multiple times in China. According to Nuru, DEVELOPER 1 owned multiple hotels in China, including five-star hotels. Nuru received gifts from him, including free hotel stays.
Nuru admits that, in exchange, he used his official position and influence to help DEVELOPER 1 obtain necessary approvals for his large, multimillion-dollar mixed-use project. Nuru admits, among other things, that he told Sandra Zuniga that DEVELOPER 1 was upset because he had spent large amounts of money and had provided “a whole list of things” that Nuru said “we need to get done[.]” Nuru admits that whenever DEVELOPER 1 or one of his employees notified him of an issue, Nuru directed one of his DPW managers to solve the problem and expedite the process. Nuru also used his official influence with other City officials to solve problems encountered by DEVELOPER 1 that fell within the other City officials’ area of responsibility.
Recology:
Recology Inc. is a waste management company headquartered in San Francisco and the parent company of Sunset Scavenger Company, Golden Gate Disposal & Recycling Company, and Recology San Francisco (referred to as the “SF Recology Group” and, collectively with Recology Inc., as “Recology”). Recology Inc. provided refuse collection and disposal services for residential and commercial customers in the City, as well as for the City itself, through the SF Recology Group.
As Director of DPW, Nuru presided over the process governing the rates Recology could charge in San Francisco. Nuru recommended to the Rate Board whether to approve any rate increase for Recology. Nuru also influenced “tipping fee” rates that Recology charged DPW when DPW dumped materials at a Recology facility, Sustainable Crushing. Nuru could approve, deny, or affect operational changes that Recology wanted to make in San Francisco which, Nuru admits in his plea agreement, gave him the ability in his official capacity to affect Recology’s business.
Nuru admits he accepted numerous valuable items from Recology and used his official position to help Recology’s business. Among other things, Recology paid for soil to be delivered to Nuru’s ranch property in Colusa County, for expensive meals for Nuru, and for a two-night trip to New York on the City’s business in December 2017.
Nuru admits that he also requested Recology to pay, and Recology did pay, hundreds of thousands of dollars to a San Francisco non-profit (Non-Profit A) in the form of donations for a cleaning program known as Giant Sweep. Non-Profit A would then donate the payments to another non-profit that administered funds for the Giant Sweep program. Nuru admitted he could then access the funds for a variety of other uses—including procuring goods and services for staff meals and appreciation events, volunteer programs, merchandise, community support, and events from specific vendors—in addition to their originally designated purpose for Giant Sweep. From 2014 through the end of 2019, Recology donated approximately $150,000 per year for Giant Sweep, in $30,000 installments—for a total of approximately $750,000.
Nuru also admits he requested Recology hire his son. Recology hired him and paid him, between 2015 and 2017, approximately $17,000. Recology also funded a paid internship for Nuru’s son at a different non-profit organization and, between 2017 and 2018, paid approximately $23,600 to fund the paid internship.
Nuru admits he requested that Recology fund his DPW holiday parties. Between 2016 and 2019, Recology paid approximately $60,000 for that purpose. Recology made the payments through the Lefty O’Doul’s Foundation, a non-profit organization run by Nick Bovis.
Two former Recology executives, Paul F. Giusti and John F. Porter, have been charged in this investigation. Giusti was charged in November 2020, and Porter was charged in April 2021. Both men were charged with bribery of Nuru and money laundering involving Nuru. Giusti pleaded guilty in August 2021 to engaging in a conspiracy to bribe Nuru and is cooperating with the government’s San Francisco City Hall corruption investigation. Porter’s charges remain pending.
The three subsidiaries of Recology, Inc. now have new leadership and have implemented enhanced corporate compliance programs to end any corrupt practices. Recology resolved corporate charges brought against them through a deferred prosecution agreement with the government. Pursuant to the agreement, the companies paid a $36 million fine, agreed to implement enhanced corporate compliance programs, and agreed to fully cooperate in the government’s San Francisco City Hall corruption investigation.
Nick Bovis:
Nuru admits in his plea agreement that he received multiple bribes from restaurateur Nick Bovis. The bribes were in exchange for Nuru using his official acts and influence to assist, or to promise to assist, in public business opportunities with the City. The bribes included free meals and entertainment for Nuru, his family, and associates at restaurants owned by Bovis and thousands of dollars in free appliances for Nuru’s ranch property. Nuru also anticipated and expected tens of thousands of dollars in kickbacks from proceeds that Bovis would earn from the City concessions or contracts awarded due to Nuru’s official acts or influence to assist Bovis.
In one plea agreement example, Nuru admits he helped Bovis in a plan to win a bid for a restaurant lease at San Francisco International Airport (SFO). Bovis expected to make money from the SFO concession, and Nuru expected Bovis would continue to provide bribes in exchange for Nuru’s help with the airport concession process and other public contracts.
In another example, Nuru admits he gave Bovis a price list of appliances that Nuru wanted for his ranch in or about 2018, a time when Bovis was seeking Nuru’s assistance with the SFO concession and other City business opportunities. Bovis purchased the appliances and brought them to Nuru’s ranch. Nuru accepted them as an exchange for his continued official acts and influence to help Bovis, and he did not pay for them. The appliances were worth approximately $22,000.
Nick Bovis pleaded guilty in May 2020 to wire fraud and honest services wire fraud involving Nuru and agreed to cooperate in the government’s San Francisco City Hall corruption investigation.
Florence Kong:
Nuru admits in his plea agreement that he accepted a gold Rolex watch from Bay Area businesswoman Florence Kong. The watch was valued at approximately $36,550. Nuru admits he used his official position to benefit Kong’s businesses and did so in exchange for the Rolex and for cash, free meals, and other items of value provided by Kong, including an iron fence that Kong installed at Nuru’s ranch. In one example, Nuru states that he used his official position to direct business to SFR Recovery Inc., a recycling business that Kong owned.
Florence Kong was charged and pleaded guilty to bribery of Nuru and to making false statements to FBI agents during the investigation. She was sentenced in February 2021 to one year and one day in prison and ordered to pay a $95,000 fine.
Balmore Hernandez, William Gilmartin, & Alan Varela:
Nuru admits in his plea agreement that between 2013 and January 2020 he accepted a series of bribes and kickbacks from Balmore Hernandez, William Gilmartin, and Alan Varela in exchange for past and future official actions benefitting their City business ventures. Nuru received free meals and entertainment, cash, and free labor and materials for his ranch – including a brand new tractor. Nuru also expected to receive a portion of the proceeds from anticipated City contracts awarded to them or their associates as a result of Nuru’s official acts or influence on their behalf.
In one example, Nuru admitted he helped Varela and Gilmartin’s joint venture win a DPW supply contract and a related lease with the Port of San Francisco (the “Port”) to operate an asphalt recycling plant and a concrete plant on the Port’s land. In the early stages, Nuru helped the group prepare their proposal by providing them inside non-public information on the project. The non-public information was delivered to Hernandez through emails or phone calls or through regular dinning meetings in San Mateo with Gilmartin and Hernandez. Gilmartin paid approximately $20,000 for the dinners, with the parties agreeing that Nuru’s dinners were worth approximately $7,000.
Nuru admits that Gilmartin promised him $100,000 for his official assistance to pressure a large developer to select one of Gilmartin and Varela’s joint-venture partners for a large project in San Francisco. The large developer complied with Nuru’s request because, as Nuru admits, the large developer needed DPW approvals for the project and for other large developments in the City.
Nuru admits that he received approximately $25,000 in cash from Hernandez and received approximately $250,000 in free labor and materials from Hernandez at Nuru’s ranch.
Nuru also requested the group give him a tractor. In February 2019, Alan Varela delivered a new tractor to the Nuru’s ranch, a benefit valued at approximately $20,000.
Balmore Hernandez was also charged in connection with this investigation. He pleaded guilty to honest services wire fraud in October 2020 and agreed to cooperate in the government’s San Francisco City Hall corruption investigation.
William Gilmartin was charged in connection with this investigation. He pleaded guilty to conspiracy to commit honest services wire fraud in May 2021 and agreed to cooperate in the government’s San Francisco City Hall corruption investigation.
Alan Varela was charged in connection with this investigation. He pleaded guilty to conspiracy to commit honest services wire fraud and was sentenced in September 2021 to two years in prison and ordered to pay a $127,000 fine.Sandra Zuniga Money Laundering:
Nuru admits that in or about 2010 he bought a 10-acre lot in Colusa County and developed it into his vacation ranch with free labor and materials provided by City contractors seeking favors from him. Nuru admits he also used the proceeds of his crimes to pay the mortgage. To conceal and launder the source of the proceeds, Nuru states he funneled the money through Sandra Zuniga who made the monthly $1,000 mortgage payments out of her checking account. Nuru admits that from 2014 through August 2017, he typically gave Zuniga approximately $1,000 per month, generally in cash, and she deposited the money into her bank account. She then made the $1,000 payment towards the mortgage. In this way, Zuniga paid at least $42,000 of the mortgage.
Zuniga was charged and pleaded guilty in March 2021 to engaging in a conspiracy to launder money with Nuru. She agreed to cooperate in the government’s San Francisco City Hall corruption investigation.
Other Bribes:
Nuru admits in his plea agreement that around 2018 he accepted a bribe of $20,000 in cash from a former government employee in exchange for Nuru using his position to help a particular person obtain an engineering job with the City. Nuru received the cash in three installments of $10,000, $5,000, and $5,000. Ultimately, the individual failed to maintain employment with the City.
Nuru also admits he accepted cash bribes from a prominent developer in San Francisco. The cash bribes usually consisted of a few thousand dollars. The developer would later call Nuru when he had any problems with DPW-related approvals or other matters that Nuru could help resolve.
In his plea agreement, Nuru admits guilt and agrees to plead guilty to one count of honest services wire fraud, in violation of 18 U.S.C. §§ 1343 and 1346. If convicted of the count, he faces a maximum penalty of 20 years in prison and a fine of $250,000 or not more than the greater of twice the gross gain or twice the gross loss of the crime.
The government indicates in the plea agreement its intent to ask for up to a 108 month (9 year) sentence for Nuru. However, any sentence imposed by the court will follow only after the court’s consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Today, in a procedural step towards orally entering his guilty plea, Nuru was arraigned and pleaded not guilty before United States Chief Magistrate Judge Joseph C. Spero to an information charging him with a count of honest services wire fraud in violation of 18 U.S.C. §§ 1343 and 1346.
Nuru’s next appearance is currently set before United States District Judge Susan Illston on January 14, 2022, at which he is currently scheduled to formally enter his guilty plea pursuant to his plea agreement. Nuru remains out of custody on bond.
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This case is part of a larger federal investigation targeting public corruption in the City and County of San Francisco. To date, 12 individuals and three corporate entities have been charged, including two high-ranking San Francisco public officials, Nuru and Harlan Kelly. Multiple city contractors and facilitators have been charged. Allegations in the complaint filed against Harlan Kelly assert that he received thousands of dollars in airfare, meals, jewelry, and travel expenses, along with repair work on his house.The case is being prosecuted by the Corporate and Securities Fraud Section of the U.S. Attorney’s Office. The case is being investigated by the FBI and IRS-Criminal Investigation.
Former San Diego Resident Pleads Guilty to Funding ISIS Terrorist Activities in SyriaRead the Press Release
Assistant U. S. Attorney Shane Harrigan (619) 546-6981 and Fred Sheppard (619) 546-8237
NEWS RELEASE SUMMARY – December 17, 2021
SAN DIEGO – Abdullahi Ahmed Abdullahi, a Canadian national and former resident of San Diego, pleaded guilty in federal court today, admitting that he conspired with others to provide material support to terrorists engaged in violent activities such as murder, kidnapping and maiming of persons in Syria.
According to his plea agreement, Abdullahi admitted that he provided money to his four cousins, including an 18-year old Minneapolis resident, as well as former San Diego resident Douglas McAuthur McCain, to support their terrorist activities in Syria.
From November 2013 through March 2014, with financial assistance from Abdullahi for the purchase of airline tickets and subsistence abroad, Douglas and the others traveled from the San Diego and Minneapolis and Edmonton, Canada to Syria, where they joined the Islamic State of Iraq and Syria (ISIS), a foreign terrorist organization, and engaged in armed battles to gain control of the territories and civilian populations within Syria on behalf of ISIS. All five individuals were subsequently reportedly killed fighting for ISIS.
Douglas McCain, a former San Diego resident, is the first known American to die fighting for ISIS. He departed from San Diego in March 2014, and on or about August 25, 2014, he was reportedly killed fighting for ISIS against Free Syrian Army forces. Douglas’ brother, Marchello McCain, was previously convicted in San Diego federal court and sentenced to 10 years in custody for illegal possession of a cache of firearms and providing false statements to FBI agents regarding his knowledge of the conspiracy, including the involvement of Abdullahi.
Pursuant to the plea agreement, Abdullahi also admitted that in order to finance the travel of others to Syria, members of the conspiracy encouraged Abdullahi and others to steal and commit fraud against the “kuffar” (a pejorative term used to describe non-Muslims), claiming that such criminal activity was permissible under Islamic law.
Abdullahi admitted that on January 9, 2014, he committed an armed robbery of an Edmonton jewelry store for the purpose of raising funds to support terrorist activities in Syria. Thereafter, on three occasions, Abdullahi wired and caused others to wire money to other members of the conspiracy in the United States -- including approximately $3,100 to Douglas – in order to finance the travel of foreign fighters from North America to support and join terrorist fighters engaged in terrorist activities in Syria.
Additionally, Abdullahi admitted that he and others wired and caused money to be wired to third-party intermediaries in Gaziantep, Turkey (located approximately 40 miles from the Syrian border) for the purpose of supporting member of the conspiracy fighting and engaging in terrorist activity in Syria.
According to the plea agreement, Abdullahi has agreed to a term of imprisonment of 20 years.
“Terrorist networks can’t survive without people like Abdullahi,” said U.S. Attorney Randy Grossman. “Our top priority is protecting Americans from terrorists, and with today’s guilty plea, we have delivered justice to someone who directly funded violence. I want to commend FBI San Diego and all of the federal, state and local law enforcement partners at the San Diego Joint Terrorism Task Force for their hard work and dedication to the multi-year, complex investigation that led to today’s guilty plea. Additionally, I am also extremely grateful for the assistance of the Department of Justice’s Office of International Affairs and our Canadian law enforcement partners, including the Royal Canadian Mounted Police; Edmonton Police Services; the Alberta Crown Prosecution Service; the Public Prosecution Service of Canada; and the Canada Crown Prosecutor’s Office, all of whom have been instrumental in the United States’ efforts to prosecute Abdullahi and combat international terrorism.”
“The defendant committed violent, criminal acts to obtain money to help fund Douglas McCain’s travel overseas to fight for ISIS, where McCain was ultimately killed,” said FBI Special Agent in Charge Suzanne Turner. “This case demonstrates the FBI’s dedication to vigorously pursue those who provide material support to terrorist organizations, financial or otherwise, and hold them accountable for those conspiratorial actions.”
On September 15, 2017, pursuant to an extradition request by the United States, Canadian authorities arrested Abdullahi. Abdullahi was detained in Canadian custody without bail, pending extradition. On October 24, 2019, Canada extradited Abdullahi to San Diego to face the material support charges in the Indictment.
DEFENDANT Criminal Case No. 17CR0622-W
Abdullahi Ahmed Abdullahi Age 33 Edmonton, Alberta, Canada
SUMMARY OF CHARGES
Conspiracy to Provide Material Support to Terrorists – Title 18, U.S.C., Sections 2339A(a)
Maximum penalty: Fifteen years in prison and $250,000 fine (per count)
Providing Material Support to Terrorists – Title 18, U.S.C., Sections 2339A(a)
Maximum penalty: Fifteen years in prison and $250,000 fine
INVESTIGATING AGENCIES
San Diego Joint Terrorism Task Force
Federal Bureau of Investigation
Federal Air Marshal Service
Department of Homeland Security, Homeland Security Investigations
Department of Homeland Security, U.S. Border Patrol
Former Ottumwa and Des Moines Man Sentenced to 15 ½ Years in Federal Prison for Sexually Exploiting ChildrenRead the Press Release
DES MOINES, IA – On November 16, 2021, United States District Court Judge Stephanie M. Rose sentenced Matthew Eric Mason, age 26, formerly of Ottumwa and Des Moines, to 188 months in prison for Receipt of Child Pornography announced United States Attorney Richard D. Westphal. Mason pleaded guilty to the offense on August 25, 2021. Following completion of his prison term, Mason will be required to register as a sex offender and will be on supervised release for ten additional years.
According to court documents, Mason began communicating with multiple minor boys in 2019 while playing online video games. Multiple times in early February 2019, Mason knowingly persuaded and enticed a 13-year-old boy, who resided in New Hampshire, to take “selfie” photographs of that boy’s genitals and send the photos to Mason via an online application. The boy did so. Mason knew that the boy was 13-years old when Mason used the boy to create and send the photographs. In the summer of 2019, Mason knowingly persuaded and enticed a 12-year-old boy, who resided in Maryland, to take a photo of the boy’s genitals and send the photo to Mason via text message. The boy did so. Mason knew the child was in middle school when Mason used the boy to create the photograph. Police searched Mason’s Des Moines apartment in November 2019 and discovered several electronic devices that contained dozens of videos of child pornography depicting adolescent boys.
This case was investigated by the Iowa Division of Criminal Investigation’s Internet Crimes Against Children Task Force, Nashua (New Hampshire) Police Department, Ottumwa Police Department, Wapello County Attorney’s Office, and the FBI Child Exploitation Task Force. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the United States Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nationwide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children. Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
Former Federal Corrections Officer Sentenced to 20 Months in for Plan to Smuggle Drugs into PrisonRead the Press Release
Ocala, FL – Senior United States District Judge John Antoon II has sentenced Wayne Grant, Jr. (28, Orlando) to 20 months in federal prison for receipt of a bribe by a public official. Grant had pleaded guilty on September 7, 2021.
According to court documents, Grant worked as a corrections officer at the Coleman Federal Correctional Complex (FCC Coleman) in Sumter County. In December 2020, Grant agreed to smuggle methamphetamine into the prison for an inmate in exchange for money. Once federal authorities were notified, Grant unwittingly began communicating with an undercover agent to complete the transaction. Federal agents mailed approximately 70 grams of fake methamphetamine and $2,000 in money orders to Grant. Agents observed Grant retrieving the package from his post office box, and he subsequently deposited the money orders into his bank account. During his assigned shift on February 4, 2021, Grant smuggled the contraband into FCC Coleman and provided it to an inmate.
This case was investigated by the Department of Justice – Office of the Inspector General and the Federal Bureau of Investigation, with assistance from the U.S. Postal Inspection Service. It was prosecuted by Assistant United States Attorney Tyrie Boyer.
Former Army National Guard Member Sentenced to Serve 25 Years in Federal Prison for Production of Child PornographyRead the Press Release
On June 11, 2021, Baldwin pleaded guilty to production of child pornography as charged in Count 1 of the Indictment. As part of his plea, Baldwin admitted that he set up a hidden camera in a bathroom and recorded a child change clothes and take a shower. He further admitted that he transmitted images of the recording outside Oklahoma using the Internet.
Today, Senior U.S. District Judge Joe Heaton sentenced Baldwin to serve 300 months in federal prison for his conduct, followed by 10 years of supervised release. In imposing the sentence, Judge Heaton noted the history and characteristics of the defendant, and the serious nature and circumstances of the offense, specifically highlighting the exploitation of those who are most vulnerable
This case is the result of an investigation by Homeland Security Investigations – Oklahoma City. Assistant U.S. Attorney Bow Bottomly prosecuted the case.
This case is part of Project Safe Childhood, a nationwide initiative by the Department of Justice (DOJ) to combat child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the DOJ Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Reference is made to court filings for further information.
Florida Return Preparer Convicted of Tax FraudRead the Press Release
A federal jury convicted a Florida man today for preparing false tax returns for his clients.
According to court documents and evidence presented at trial, Fred Pickett Jr., 54, of Belle Glade, owned and operated a tax return business that he used to prepare false individual income tax returns. From 2013 to 2016, Pickett created tax returns for some of his clients claiming they owned fictitious businesses that lost tens of thousands of dollars each year. Pickett included these made-up companies, as well as other false deductions and tax credits, on clients’ tax returns to generate refunds they were not entitled to receive.
At trial, Pickett was convicted of 22 counts of aiding and assisting the preparation of false tax returns. He is scheduled to be sentenced on March 8, 2022, and faces a maximum penalty of three years in prison for each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Special Agent-in-Charge Matthew Line of IRS Criminal Investigation (IRS-CI), Miami Field Office, made the announcement.
IRS-CI investigated the case.
Trial Attorneys Parker Tobin and Patrick Elwell of the Tax Division prosecuted the case.
Federal agent guilty of aiding drug smugglingRead the Press Release
McALLEN, Texas – A Border Patrol (BP) agent has pleaded guilty to attempting to aid and abet smuggling cocaine through a BP checkpoint, announced Acting U.S. Attorney Jennifer B. Lowery.
Oberlin Cortez Pena Jr., 22, La Joya, pleaded guilty today.
As part of his plea, Pena admitted that on two separate occasions, he helped smuggle over five kilograms of cocaine through the Falfurrias checkpoint. Specifically, he used his knowledge as a BP agent and directed loads through particular checkpoint lanes, further acting as a scout and providing information about the inspection lanes and which one to use. Pena also gave detailed instructions on how to conceal the drugs and tactics to employ in order to distract the canine unit at the checkpoint.
U.S. District Judge Randy Crane accepted the plea and set sentencing for March 1, 2022. At that time, Pena faces a minimum of 10 years and up to life in federal prison as well as a possible $10 million maximum fine.
Four others individuals have been convicted as part of the investigation. Edwin Alejandro Castillo, 23, Sullivan City; Kristian Nicole West, 32; Corpus Christi, and Jose Luis Duran, 25, and Herbey Jose Solis III, 28, both of Mission, all pleaded guilty to alien smuggling. Castillo also admitted to bribery, while Duran entered an additional plea to conspiracy to commit bribery.
Pena was permitted to remain on bond pending sentencing.
The Department of Homeland Security - Office of Inspector General conducted the investigation with assistance from Customs and Border Protection - Office of Professional Responsibility and BP. Assistant U.S. Attorneys Jongwoo Chung and John Pearson are prosecuting the case.
Federal Jury Convicts Jacksonville Sexual Predator of Possessing Child Sexual Abuse Images That He Produced Using A Hidden CameraRead the Press Release
Jacksonville, Florida – A federal jury has found James Thomas Butler II (41, Jacksonville) guilty of production, attempted production, and possession of child sexual abuse materials. In 2001, Butler was convicted of attempted capital sexual battery and lascivious molestation of a minor, and he has since been registered and designated as a sexual predator. Because of his prior child sex convictions, Butler now faces enhanced penalties of not less than 25 years, and up to 70 years, in federal prison, and a potential life term of supervised release. His sentencing hearing has not yet been scheduled.
According to court documents as well as evidence and testimony during the trial, on May 2, 2018, FBI agents and other law enforcement officers executed a federal search warrant at a residence in north Jacksonville where several sex offenders and sexual predators resided, including Butler. During an interview with law enforcement, FBI agents obtained a smart phone from Butler. A forensic examination of Butler’s phone revealed pornographic videos and images of a minor child that appeared to have been filmed using a camera concealed in the child’s bedroom. Through further investigation, law enforcement identified the child and the residence in Jacksonville where Butler had concealed the camera. On October 2, 2018, FBI agents and personnel executed a federal search warrant at this residence and also arrested Butler.
A search of the residence revealed that Butler had installed a tiny internet-enabled camera device in an air vent in the child’s bedroom and had wired the camera into the house’s electrical system through the attic. Butler was able to control this camera remotely using his smart phone, collecting videos and creating customized screenshots of the child. Butler’s smart phone contained at least 65 videos and 35 screenshots that depicted the child in the child’s bedroom.
This case was investigated by the Federal Bureau of Investigation, the Jacksonville Sheriff’s Office, and the Duval County School Police Department. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Federal Inmate Convicted at Trial for Possessing A Weapon in PrisonRead the Press Release
WILLIAMSPORT—The United States Attorney’s Office for the Middle District of Pennsylvania announced that on December 16, 2021, Hugo Reynosa, age 26, was convicted of possessing a weapon in federal prison after a bench trial before United States District Court Chief Judge Matthew W. Brann.
According to United States Attorney John C. Gurganus, the evidence presented at trial showed that on May 12, 2020, officers at the United States Penitentiary in Lewisburg, Pennsylvania, initiated a mass search of inmate cells in Hugo Reynosa’s housing block. Officers instructed the inmates to exit their cells without carrying any property. An officer spotted Reynosa exit his cell and throw a bag into a garbage can on the housing range. The officer immediately retrieved and searched the bag, which contained a 6.25-inch piece of metal with a crude handle and sharp point, commonly referred to as a “shank.”
Chief Judge Brann rendered a verdict of guilty on the sole count of the indictment, finding Hugo Reynosa guilty of possessing contraband in prison.
The case was investigated by the Federal Bureau of Prisons and the Federal Bureau of Investigation. Special Assistant U.S. Attorney Drew O. Inman and Assistant U.S. Attorney Alisan V. Martin are prosecuting the case.
The maximum penalty under federal law for this offense is five years’ imprisonment, a three-year term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is 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.
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Federal Guilty Verdict in Six-Year Insider Financial Fraud Scheme Against Delaware Medical PracticeRead the Press Release
WILMINGTON, Del. – A federal jury sitting in Wilmington convicted a Port Deposit, Maryland woman on Wednesday of wire fraud for fraudulently obtaining money from her employer, a Delaware medical practice, by charging unauthorized personal expenses to her business credit card. U.S. District Judge Leonard P. Stark presided over the trial and accepted the verdict.
According to court records and evidence presented, Kimberly Sponaugle, 44, made over 3,000 personal purchases with her business credit card totaling well over $250,000 during a six-year period. While working as a business manager for the medical practice, Ms. Sponaugle misappropriated her employer’s funds to pay for a wide range of goods, including her home power bills and multiple domestic and international vacations for herself and her personal associates. Ms. Sponaugle hid this fraudulent spending by mischaracterizing her personal purchases in the business’s bookkeeping software, denying others access to her credit card statements, and utilizing other means of deception.
David C. Weiss, U.S. Attorney for the District of Delaware, commented on the verdict, “As a business manager, Ms. Sponaugle served in a position of trust. She betrayed that trust, putting personal greed ahead of her job responsibilities and enriching herself by taking her employer’s money. My office and our law enforcement partners will continue to pursue those who commit financial fraud at the expense of their employers.”
“Ms. Sponaugle treated her company’s funds as her own personal bank account, even using them to pay for elaborate vacations and household bills,” said Thomas J. Sobocinski, Special Agent in Charge of the FBI Baltimore Field Office. “The FBI is committed to rooting out and bringing to justice company insiders who use their positions to commit this kind of unconscionable financial fraud. Companies should be reminded that the threat of fraudulent activities increasingly comes from employees on the inside.”
Ms. Sponaugle faces a maximum penalty of 20 years in prison. The sentencing date has yet to be announced. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine Ms. Sponaugle’s sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Weiss and SAC Sobocinski of the FBI Baltimore Field Office, which investigated the case through its Wilmington Resident Agency, made the announcement. Assistant U.S. Attorneys Carly Hudson and Ruth Mandelbaum are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 1:19-CR-103.