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Thursday 4 November 2021
West Haven City Employee Charged in COVID Relief Funds Fraud SchemeRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Christina D. Scaringi, Special Agent in Charge of the Office of Inspector General, U.S. Department of Housing and Urban Development, announced that JOHN BERNARDO, 65, of West Haven, was arrested today on a federal criminal complaint charging him for his role in conspiracy to defraud the City of West Haven.
Bernardo surrendered to law enforcement this morning. He appeared before U.S. District Judge Robert M. Spector in New Haven and was released on a $250,000 bond.
As alleged in the complaint, Bernardo has been employed by the City of West Haven as a Housing Specialist in the office of Community Development Administration. Michael DiMassa was employed as an Administrative Assistant to the City Council and was a Connecticut State Representative elected to represent West Haven and New Haven. In January 2021, DiMassa and Bernardo formed Compass Investment Group, LLC. Beginning in February 2021, Compass Investment Group LLC fraudulently billed the City of West Haven and its “COVID-19 Grant Department” for consulting services purportedly provided to the West Haven Health Department that were not performed. From February 2021 through September 2021, the City of West Haven paid Compass Investment Group a total of $636,783.70. It is alleged that Bernardo received at least $45,000 of these funds.
The complaint charges Bernardo with conspiracy to commit wire fraud and wire fraud. Both offenses carry a maximum term of imprisonment of 20 years.
DiMassa was arrested on a federal criminal complaint on October 20, 2021. He is released on a $250,000 bond.
Acting U.S. Attorney Boyle stressed that a criminal complaint is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the U.S. Department of Housing and Urban Development – Office of Inspector General for Investigations. The case is being prosecuted by Assistant U.S. Attorney Ray Miller.
Washington D.C. Man Sentenced to 15 Years in Prison for Armed Robbery, Shooting, and Failing to Register as a Sex OffenderRead the Press Release
RALEIGH, N.C. – A Washington D.C. man was sentenced on November 3, 2021 to 180 months in prison for brandishing a firearm in connection to a crime of violence, possession of firearm by a convicted felon, and failure to register as a sex offender. On May 6, 2021, Joshua Wendell Clark, 25, pled guilty to the charges.
According to court documents and other information presented in court, investigators with the Edgecombe County Sheriff’s Office responded to a robbery call in Tarboro, North Carolina on August 24, 2020. Detectives learned that earlier that day, Clark robbed a Pizza Hut delivery man at gunpoint. When the delivery man arrived to drop off an order, Clark drew a handgun and pointed it at the victim’s head and demanded his money. Clark ultimately took $116 in U.S. currency from the delivery man. Later that same day, officers with the Tarboro Police Department responded to a shots-fired call at the 1100 block of Chapel Street, Tarboro. There they encountered multiple eyewitnesses, including the victim in that case, who advised that Clark attempted to shoot him while the victim sat in his vehicle. When Clark drew his handgun, a physical struggle ensued between the two individuals, and Clark discharged his firearm sending a round through the roof of the victim’s car. Clark then pulled the trigger multiple times after the first round, but the gun did not discharge and appeared to have jammed. Clark then ran away from the scene on foot. While on scene, officers observed a suspicious vehicle that continued to circle the area of the shooting. When officers stopped the car, they observed Clark lying down in the back seat. In Clark’s possession, officers recovered a loaded Springfield XD-40 pistol with a spent shell casing jammed in the chamber.
Prior to the events of August 24, 2020, Clark had a prior felony conviction for second degree child sex abuse from Washington, D.C. As a result, Clark was required to register as a sex offender but never did.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Tarboro Police Department, the Edgecombe County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case and Assistant U.S. Attorney Aakash Singh prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:21-CR-15-D.
Washington County Woman Sentenced to 10 Years in Prison for Dealing DrugsRead the Press Release
PITTSBURGH – A former Washington County, PA resident has been sentenced in federal court to 10 years of imprisonment and 5 years of supervised release on her conviction for violating the federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
Senior United States District Judge Joy Flowers Conti imposed the sentence on Breanna M. Bane, 29, formerly of Fredericktown, Washington County, PA, who pleaded guilty in May 2020 to conspiring with codefendants Harvey Hicks and Matthew Pearson to distribute 400 grams or more of fentanyl and 100 grams or more of heroin between March 2019 and May 2019. While on bond for that offense, a grand jury returned an Indictment charging Bane with distributing a quantity of fentanyl analogue on July 3, 2020; Bane pled guilty to that offense on April 27, 2021.
According to information presented to the Court, beginning in March 2019, agents with the Federal Bureau of Investigation and the Pennsylvania State Police began investigating Bane and her codefendants, whom agents believed to be large-scale distributors of heroin and fentanyl in the Western District of Pennsylvania. Through various investigative methods, agents determined that Bane, Hicks, and Pearson were trafficking large quantities of heroin-fentanyl mixtures from the Harrisburg and Hershey, PA areas to the Western District of Pennsylvania for redistribution. On May 1, 2019, agents interdicted Bane and her codefendants following a trip to Hershey, PA, at which time they seized approximately 625 “bricks” – the equivalent of more than 31,000 individual dosage units – of heroin-fentanyl mixtures. Agents seized numerous firearms, ammunition, bulk U.S. currency, and heroin-fentanyl packaging materials from Bane and codefendant Hicks. In connection with her guilty plea, Bane admitted to conspiring with Hicks and Pearson to distribute the heroin-fentanyl mixtures, and that she did so knowing that the drugs were intended for redistribution. In connection with her April 2021 guilty plea, Ms. Bane admitted that on July 3, 2020, she distributed a quantity of fentanyl analogue to a known individual in Washington County, PA, in stamp bags labeled “passion”. In a subsequent search of her residence, troopers seized “passion” stamp bags and a large sum of U.S. currency. Chemical testing determined that the “passion” stamp bags contained fentanyl analogues, which are scheduled controlled substances.
Assistant United States Attorney Jerome A. Moschetta prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Federal Bureau of Investigation, the Pennsylvania State Police Drug Law Enforcement Division, and the Pennsylvania State Police Troop-B Vice Unit for the investigation leading to the successful prosecution of Bane.
Two Men Sentenced for Drug Trafficking on the Menominee Indian ReservationRead the Press Release
Richard G. Frohling, Acting United States Attorney for the Eastern District of Wisconsin, announced that two men received sentences related to their involvement in drug trafficking on the Menominee Indian Reservation on February 24, 2021. Senior United States District Judge William C. Griesbach issued the following sentences:
Defendant
Residence
Date Sentenced
Prison Sentence
Supervised Release Period
John D. Negani (Age: 37)
Lac du Flambeau, WI
October 25, 2021
36 months
48 months
Scott J. Mielkie (Age: 50)
Lake Tomahawk, WI
November 3, 2021
24 months
36 months
Negani pleaded guilty on July 21, 2021, to Possession with Intent to Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(C). Mielkie entered a guilty plea to the same charge on August 3, 2021.
The investigation revealed that in the evening hours of February 24, 2021, Negani and Mielkie were in a vehicle on the Menominee Indian Reservation. A tribal patrol officer stopped the vehicle for an equipment violation, and a subsequent alert by a drug detection police dog led to the discovery of just under 30 grams of methamphetamine and drug paraphernalia. A search of the vehicle also revealed a Dan Wesson Arms .357 Magnum revolver in the vehicle.
According to court records, tribal investigators learned that Negani and Mielkie traveled to the Menominee Indian Reservation from the Lac du Flambeau area, purchased the methamphetamine from a source of Negani’s, and were traveling back “up north” for further distribution.
At their sentencing hearings, Judge Griesbach noted the destruction caused by methamphetamine in Northeastern Wisconsin and on the Menominee Indian Reservation. Judge Griesbach explained that there was a need to send a message, not just to the defendants, but to the entire community that committing crimes while armed would not be accepted.
The Menominee Tribal Police Department and Federal Bureau of Investigation investigated the case. It was prosecuted by Assistant United States Attorney Andrew J. Maier.
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Taylor County man sentenced to 28 years for child pornography chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Dallas Edward Weber, Jr. was sentenced today to 336 months of incarceration for a child pornography charge, United States Attorney William J. Ihlenfeld, II announced.
Weber, 40, pleaded guilty in June 2021 to one count of “Aiding and Abetting Production of Child Pornography.” Weber is accused of using a minor child to engage in sexually explicit conduct and producing child pornography from that conduct in June 2020 in Taylor County.
Assistant U.S. Attorney Sarah E. Wagner prosecuted the case on behalf of the government. The Taylor County Sheriff’s Office and the FBI investigated.
U.S. District Judge Thomas S. Kleeh presided.
Tax Preparer Sentenced for Filing Fraudulent Client ReturnsRead the Press Release
A tax return preparer who filed fraudulent client tax returns was sentenced yesterday to almost two years in federal prison, announced Acting U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Carlos Hinojosa, 37, Mario Jose Sanchez, 48, and Magda Lopez-Sanchez, 51, pleaded guilty this summer to assisting in the preparation of false and fraudulent tax returns. Mr. Hinojosa was sentenced Wednesday by U.S. District Judge Ed Kinkeade to 22 months in federal prison. Mr. Sanchez and Ms. Lopez-Sanchez were each sentenced to three years’ probation. Judge Kinkeade ordered each of the defendants to pay more than $6 million in restitution, joint and severally, to the IRS.
From 2012 through 2016, Mr. Hinojosa, Mr. Sanchez, and Ms. Lopez-Sanchez worked as tax return preparers at Miguelitos Tax Service, a tax preparation service located in Carrolton, Texas.
According to plea papers, while at Miguelitos, the defendants prepared tax returns that included, among other false statements, false tuition expenses to make the clients appear eligible for education credits that they knew the clients were not eligible to receive. Mr. Hinojosa admitted that he generally included these false expenses on his clients' tax returns without the clients’ knowledge.
To conceal the falsity of the returns, the defendants attempted to have clients sign forms justifying the expenses. Mr. Hinojosa admitted he did not explain the forms to clients and most had no idea what they were signing. He further admitted that he charged clients cash for preparing their returns – sometimes as much as $2,000 – without informing them that Miguelitos would also deduct a tax preparation fee from their tax refunds.
Mr. Hinojosa, Mr. Sanchez, and Ms. Lopez-Sanchez agreed their actions, along with the conduct of coconspirators at Miguelitos, resulted in a tax loss to the Internal Revenue Service of $7,306,191 for tax years 2010 through 2016.
IRS Criminal Investigation conducted the investigation. Assistant U.S. Attorneys Douglas Brasher and Andrew Wirmani (fmr.) prosecuted the case.
Syracuse Man Sentenced for Role in Drug ConspiracyRead the Press Release
SYRACUSE, NEW YORK - Luis Carrasquillo, age 34, of Syracuse was sentenced today to serve 71 months in federal prison for his membership in a conspiracy to distribute controlled substances, and his previous guilty plea to distribution of a mixture of heroin and fentanyl, as well as cocaine, announced United States Attorney Carla B. Freedman, John B. DeVito, Special Agent in Charge of the New York Field Division of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), and Chief Kenton Buckner, City of Syracuse Police Department.
As part of his previous guilty plea, Carrasquillo admitted that he conspired with Waldemar Colon and Isidro De Los Santos to sell heroin mixed with fentanyl, and cocaine from De los Santos’s apartment on Gifford Street in Syracuse as part of a conspiracy that existed from December 2018 through January 31, 2019. Carrasquillo also pled guilty to aiding and abetting the sale of a mixture of heroin and fentanyl, as well as a separate quantity of cocaine on December 6, 2018.
On January 31, 2019, ATF Special Agents assisted by DEA and the Syracuse Police Department-Intelligence Unit executed a federal search warrant at Isidro De Los Santos’s residence and recovered over twenty-one ounces (608 grams) of heroin mixed with fentanyl in two packages. A federal search warrant executed at the adjacent apartment of another involved defendant, Anthony Moreno, on the same day resulted in the seizure of over 18 ounces (521grams) of cocaine.
Carrasquillo was also ordered to serve a 3-year term of supervised release following his prison sentence.
Isidro De Los Santos pled guilty to conspiracy to possess with intent to distribute controlled substances, and distribution of controlled substances, and was sentenced on November 13, 2020 to serve a sentence of nine years (108 months) in prison, and a 5-year term of supervised release.
Anthony Moreno pled guilty to conspiracy to possess with intent to distribute controlled substances, and on November 17, 2020 was sentenced on to serve 51 months in prison, followed by a 5-year term of supervised release.
Waldemar Colon pled guilty to conspiracy to possess with intent to distribute controlled substances, and distribution of controlled substances, and is awaiting sentencing.
This case was investigated by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Syracuse Police Department-Intelligence Section, and the United States Drug Enforcement Administration (DEA), and is being prosecuted by Assistant U.S. Attorney Richard Southwick.
Syracuse Man Sentenced for Drug SalesRead the Press Release
SYRACUSE, NEW YORK – Wilfredo Fuentes, age 36, of Syracuse was sentenced today to serve 96-months in federal prison for distributing heroin, fentanyl, and cocaine in Syracuse, announced United States Attorney Carla B. Freedman, John B. DeVito, Special Agent in Charge of the New York Field Division of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), and Chief Kenton Buckner, City of Syracuse Police Department.
Fuentes was also sentenced to a 3-year term of supervised release following his prison sentence, and to ordered to forfeit $3,400.00 in drug proceeds.
As part of his previous guilty plea, Fuentes admitted that he sold heroin, fentanyl, and cocaine on two occasions during an ATF/SPD undercover enforcement operation in Syracuse. Fuentes was previously convicted of two New York State felony drug crimes.
This case was investigated by United State Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Syracuse Police Department-Intelligence Section, and the United States Drug Enforcement Administration (DEA), with assistance from the New York State Department of Corrections and Community Supervision (DOCCS-Parole) and was prosecuted by Assistant U.S. Attorney Richard Southwick.
St. Thomas Man Convicted at Trial of Felon in Possession of a Firearm Sentenced to 33 Months in Federal PrisonRead the Press Release
St. Thomas, USVI – Leroy Henry, Jr., 30, of St. Thomas, was sentenced in District Court on one count of being a felon in possession of a firearm, United States Attorney Gretchen C.F. Shappert announced.
Chief District Court Judge Molloy sentenced Henry to 33 months of imprisonment followed by two years of supervised release.
An anonymous Crime Stoppers tip revealed that Leroy Henry, Jr., a convicted felon, possessed a hidden compartment in his blue Infiniti, where he maintained an unregistered firearm that he planned to use to exact revenge on his brother’s murderer. This information led to the FBI executing a search warrant on January 14, 2020. Federal agents searched Leroy Henry, Jr.’s car and located a fully loaded .23 Glock pistol, along with two magazines, in a hidden compartment underneath the vehicle’s center console cupholders.
During a subsequent interview, Leroy Henry Jr. acknowledged to the agents that he had previously obtained the firearm from a friend.
DNA samples collected from the gun were compared to a sample of Henry’s DNA. An FBI forensic examiner testified at the trial that a DNA analysis revealed that it was 78 septillion times more likely that Henry’s DNA was present on the Glock confiscated from his vehicle.
The Virgin Islands Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Assistant U.S. Attorneys Meredith J. Edwards and George Andrew Massucco-LaTaif prosecuted the case.
This case is part of the Department of Justice’s Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is a nationwide initiative that brings together federal, state, local and tribal law enforcement officials, prosecutors, and community leaders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. For more information on the Department of Justice’s Project Safe Neighborhoods, please see: https://www.justice.gov/psn.
St. Louis County Sex Offender Sentenced to 192 Months in Prison for Distribution of Child PornographyRead the Press Release
ST. PAUL, Minn. – A St. Louis County man was sentenced today to 192 months in prison followed by twenty years of supervised release for distribution of child pornography.
According to court documents, Michael Patrick Bushey, 32, admitted to the September 20, 2015 distribution of child sexual abuse images. Bushey further admitted that more than 3,900 images and at least 16 videos depicting children engaged in sexually explicit conduct, including images of prepubescent minors under the age of 12, were discovered in the cell phone and accounts he possessed.]
Bushey has previous State of Minnesota child pornography convictions and was on probation for those convictions when he committed the distribution offense. He served 33 months for violation of probation on those convictions before being taken into federal custody. Bushey pleaded guilty on June 14, 2021, to one count of distribution of child pornography.
Acting U.S. Attorney W. Anders Folk for the District of Minnesota made the announcement after U.S. District Judge Eric C. Tostrud sentenced the defendant.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s 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.projectsafechildhood.gov.
This case is the result of an investigation conducted by the FBI and the Minnesota Bureau of Criminal Apprehension.
This case was prosecuted by Assistant U.S. Attorney Manda M. Sertich.
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South Florida Addiction Treatment Facility Operators Convicted in $112 Million Addiction Treatment Fraud SchemeRead the Press Release
After a seven-week trial, a federal jury in the Southern District of Florida convicted two operators of two South Florida addiction treatment facilities for fraudulently billing approximately $112 million for services that were never provided or were medically unnecessary, and for paying kickbacks to patients through patient recruiters, and receiving kickbacks from testing laboratories. One defendant was also convicted of money laundering, and of separate charges of bank fraud connected to Paycheck Protection Program (PPP) loans.
According to court documents and evidence presented at trial, Jonathan Markovich, 37, and his brother, Daniel Markovich, 33, both of Bal Harbour, conspired to and did unlawfully bill for approximately $112 million of addiction treatment services that were never rendered and/or were medically unnecessary, and that were procured through illegal kickbacks, at two addiction treatment facilities that they operated, Second Chance Detox LLC, dba Compass Detox (Compass Detox), an inpatient detox and residential facility, and WAR Network LLC (WAR), a related outpatient treatment program. Jonathan Markovich, who owned both facilities, was also convicted of bank fraud in connection with PPP loan applications in which he falsely stated that Compass Detox and WAR were not engaged in illegal conduct.
The evidence showed that defendants obtained patients through patient recruiters who offered illegal kickbacks to patients (such as free airline tickets, illegal drugs, and cash payments). The defendants then shuffled a core group of patients between Compass Detox and WAR to fraudulently bill for as much as possible. Patient recruiters gave patients illegal drugs prior to admission to Compass Detox to ensure admittance for detox, which was the most expensive kind of treatment offered by the defendants’ facilities, therapy sessions were billed for but not regularly provided or attended, and excessive, medically unnecessary urinalysis drug tests were ordered. Compass Detox patients were given a so-called “Comfort Drink” to sedate them, and to keep them coming back. Patients were also given large and potentially harmful amounts of controlled substances, in addition to the “Comfort Drink,” to keep them compliant and docile, and to ensure they stayed at the facility. Certain patients were also routinely re-admitted and repeatedly cycled through Compass Detox and WAR to maximize revenue.
“These substance abuse treatment facility operators orchestrated a massive, multi-year fraudulent billing scheme by taking advantage of patients seeking treatment,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The convictions today further demonstrate the success of the Department of Justice’s Sober Homes Initiative in protecting patients and prosecuting fraudulent substance abuse treatment facilities.”
“Their tactics were brazen and the dollar losses immense,” said Special Agent in Charge George L. Piro of FBI’s Miami Field Office. “These health care fraudsters, driven by greed, sought to cheat their way to riches by billing tens of millions of dollars from various health care programs. The FBI and our law enforcement partners will investigate and criminally prosecute such fraud to the fullest extent of the law.”
Both defendants were convicted of conspiracy to commit health care fraud and wire fraud. Jonathan Markovich was convicted of eight counts of health care fraud and Daniel Markovich was convicted of two counts of health care fraud. They were also convicted of conspiracy to pay and receive kickbacks and two counts of paying and receiving kickbacks. Jonathan Markovich was separately convicted of conspiring to commit money laundering, two counts of concealment money laundering, and six counts of laundering at least $10,000 in proceeds of unlawful activities, as well as two counts of bank fraud related to his fraudulently obtaining PPP loans for both Compass Detox and WAR during the COVID-19 pandemic. Both defendants are scheduled to be sentenced on Jan. 13, 2022. They each face a maximum of 20 years for the health care fraud and wire fraud conspiracy count, 10 years for each substantive count of health care fraud and paying and receiving kickbacks, and five years for the kickbacks conspiracy. Jonathan Markovich faces additional maximum sentences of 20 years for conspiracy to commit money laundering, 20 years for each substantive count of concealment money laundering, 10 years for each additional count of money laundering, and 30 years for each substantive count of bank fraud. A federal district court judge will determine the sentences after considering the U.S. Sentencing Guidelines and other statutory factors. A related trial is scheduled to begin on Feb. 28, 2022, in the Southern District of Florida, for four other defendants charged in this case.
The FBI, the Department of Health and Human Services, Office of Inspector General, and Broward Sheriff's Office investigated the case.
Senior Litigation Counsel Jim Hayes and Trial Attorney Jamie de Boer of the Criminal Division’s Fraud Section are prosecuting the case.
The National Rapid Response Strike Force and Los Angeles Strike Force lead the Department of Justice’s Sober Homes Initiative, which was announced in the 2020 National Health Care Fraud Takedown to prosecute defendants who exploit vulnerable patients seeking treatment for drug and/or alcohol addiction.
Slidell Resident Pleads Guilty to Conspiring to Distribute Heroin, Cocaine, and Crack Drugs After Heroin Found in a Safe Being Moved from His Stash HouseRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that KENDRICK DEMOURELLE, age 40, a resident of Slidell, Louisiana, pled guilty on November 2, 2021 to conspiring to distribute a kilogram or more of heroin, five kilograms or more of cocaine, and 280 grams or more of crack cocaine. DEMOURELLE is facing a mandatory minimum of ten years and up to life in prison, a fine of up to $10,000,000, at least five (5) years of supervised release upon his release from prison, and a $100 mandatory special assessment fee for each drug offense, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(A), and 846.
According to court records, DEMOURELLE and four others, Joseph Brown, Lionel Cooley, Blake Monroe, and Kevin Gray, conspired to sell illegal narcotics in New Orleans. A portable safe being moved from DEMOURELLE’s stash house during a court-approved search contained nearly one kilogram of heroin. A repossessed GMC Sierra pickup truck used by Cooley contained nearly two kilograms of cocaine and 430 grams of crack. More than 400 grams of heroin, 125 grams of cocaine, a kilo press, and other drug paraphernalia were seized in Gray’s home in Chalmette, Louisiana, during a court-authorized search.
The evidence against DEMOURELLE includes the seizure of more than $50,000 and firearms found in his Denali truck after he sold two kilograms of cocaine to Cooley.
U.S. District Judge Wendy Vitter will sentence DEMOURELLE on February 15, 2022. DEMOURELLE, Brown, Cooley, Gray, and Monroe were charged in February 2020 with conspiring to distribute cocaine, crack, and heroin in the New Orleans area. All five had pled guilty to drug offenses.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration, Jefferson Parish Sheriff’s Office, Hammond Police Department, New Orleans Police Department, and Slidell Police Department in investigating this matter. Assistant United States Attorney David Howard Sinkman is in charge of the prosecution.
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Russian National Indicted for Making False Statements to the FBIRead the Press Release
Special Counsel John Durham today announced that a federal grand jury returned an indictment in the U.S. District Court for the Eastern District of Virginia charging Igor Danchenko, 43, a Russian citizen residing in Virginia, with five counts of making false statements to the FBI. The charges in the indictment stem from statements made by Danchenko relating to the sources he used in providing information to a U.K. investigative firm that prepared what are identified in the indictment as “Company Reports.”
The indictment was returned on Nov. 3 and unsealed today. Danchenko was arrested earlier today and is scheduled to appear before U.S. Magistrate Judge Theresa C. Buchanan today at 2:30 p.m.
According to the indictment, on June 15, 2017, March 16, 2017, May 18, 2017, Oct. 24, 2017, and Nov. 16, 2017, Danchenko made false statements regarding the sources of certain information that he provided to a U.K. investigative firm that was then included in reports prepared by the U.K. investigative firm and subsequently passed to the FBI. The June 15, 2017, false statement count alleges that Danchenko denied that he had spoken with a particular individual about material information contained in one of the Company Reports when he knew that was untrue. The March 16, 2017, May 18, 2017, Oct. 24, 2017, and Nov. 16, 2017, counts involve statements made by Danchenko on those dates to FBI agents regarding information he purportedly had received from an anonymous caller who he believed to be a particular individual, when in truth and in fact he knew that was untrue. The information purportedly conveyed by the anonymous caller included the allegation that there were communications ongoing between the Trump campaign and Russian officials and that the caller had indicated the Kremlin might be of help in getting Trump elected.
Charges contained in an indictment are only allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is being prosecuted by Assistant Special Counsel Andrew J. DeFilippis, Assistant Special Counsel Michael T. Keilty, and Assistant Special Counsel Jonathan E. Algor, with the support and assistance of other members of Special Counsel Durham’s team. The Special Counsel’s investigation is ongoing.
Rocky Mount Man Sentenced to 71 Months for Second Federal Firearm ConvictionRead the Press Release
WILMINGTON, N.C. – A Rocky Mount man was sentenced on November 3, 2021 to 48 months in prison for possession of a firearm by a convicted felon, to be served consecutive to a term of 23 months for violating supervised release on his prior federal conviction for the same offense. On August 8, 2021, Tyree Leron Stewart, 29, pled guilty to the charge.
According to court documents and other information presented in court, on September 16, 2020, officers with the Rocky Mount Police Department responded to a shot-spotter alert in the area of Henna Street, Rocky Mount, North Carolina. There, officers observed Stewart standing beside a vehicle parked in the driveway of his residence. When officers approached to ask Stewart if he had observed anything, Stewart began acting nervous and positioned his body away from the officers as if he were attempting to conceal something. Officers asked Stewart to show his hands, but Stewart did not raise his right hand. When Stewart ultimately raised his right hand, officers heard a loud thud on the ground. Officers observed a sawed-off shotgun on the ground and ordered Stewart to step away. Before officers could detain Stewart, he fled on foot throughout the area before ultimately returning to his house. Stewart then exited the residence and surrendered to police. Officers secured a search warrant for Stewart’s residence and recovered twenty-two 12-gauge shotgun shells. The firearm was identified as a sawed-off 12-gauge shotgun with a 13-inch barrel. At the time, Stewart had accrued three prior felony convictions for the same offense, possession of a firearm by a convicted felon, and was serving an active term of federal supervised release.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Rocky Mount Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case and Assistant U.S. Attorney Aakash Singh prosecuted the case.
On August 18, 2021, U.S. District Judge Louise W. Flanagan sentenced Stewart to a term of 23 months imprisonment for violating his federal supervised release.
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 Nos. 5:21-CR-194-M and 5:18-CR-168-FL.
Rochester Man Going to Prison and Ordered to Pay Millions in Restitution for His Role in Ponzi Scheme That Bilked Investors Out of Millions of DollarsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, NY – U.S. Attorney Trini E. Ross announced today that John Piccarreto, Jr., 38, of Rochester, NY, who was convicted of conspiracy to commit mail fraud and filing a false tax return, was sentenced to serve 84 months in prison by U.S. District Judge Frank P. Geraci, Jr. the defendant was also ordered to pay restitution totaling $19,842,613.66.
Assistant U.S. Attorney John J. Field, who handled the case, stated that between 2017 and June 2018, the defendant conspired with co-defendants Perry Santillo, Christopher Parris and others, to obtain money through an investment fraud commonly known as a Ponzi scheme. The scheme, which was conducted under the umbrella of a business entity called Lucian Development, involved the sale of fraudulent promissory notes that were issued under the names various entities that Santillo and Parris controlled, including Lucian Development. The issuers received money from new investors, and then redistributed that money to repay earlier investors, to pay the expenses of the scheme, and to finance the lifestyles of Santillo, Parris and others involved in the scheme. Piccarreto was initially unaware that the business was a Ponzi scheme when he began working for Lucian Development in March 2012. As he gained experience with investments and obtained a securities license, Piccarreto’s responsibilities increased. By January 2017, the defendant realized that the Lucian Development business was, indeed, a Ponzi scheme after the company stopped paying promised returns to client investors whom he serviced. However, rather than severing his association with Lucian Development, Piccarreto continued to work for Santillo and Parris, knowingly lying to investors by falsely reassuring them that their investments were safe and secure, even though he knew this was not true, and encouraging investors to “reinvest” their fraudulent investments by signing new promissory notes.
Between January 1, 2017, and June 19, 2018, Piccarreto was involved in defrauding approximately 400 investors out of approximately $18,081,556, which resulted in financial hardship to more than 25 of its investor victims. Piccarreto also admitted that, while working in Texas, he personally solicited and defrauded at least eight investors out of approximately $598,695. In addition, on his 2017 tax return, the defendant claimed a taxable income of $6,576. In fact, Piccarreto’s taxable income was approximately $538,548, which resulted in the defendant avoided paying income taxes to the IRS in the amount of approximately $159,423.
Perry Santillo and Christopher Parris were previously convicted and are awaiting sentencing.
The sentencing is the result of an investigation by the United States Postal Inspection Service, under the direction of Inspector-in-Charge Ketty Larco-Ward, Boston Division; the Federal Bureau of Investigation, Buffalo Division, under the direction of Special Agent-in-Charge Stephen Belongia, and FBI Scranton Division; the Internal Revenue Service, Criminal Investigation Division, under the direction of Thomas Fattorusso, Acting Special Agent-in-Charge; the U.S. Department of Labor, Office of Inspector General, Office of Investigations – Labor Racketeering and Fraud, under the direction of Jonathan Mellone, Special Agent-in-Charge, New York Region, the New York State Department of Financial Services, under the direction of Acting Superintendent Adrienne A. Harris; and the Securities and Exchange Commission.
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Rhode Island Man Arrested for Unemployment Fraud Scheme Related to COVID-19 PandemicRead the Press Release
BOSTON – A Rhode Island man was arrested today in Michigan and charged in federal court in Boston in connection with his alleged involvement in a fraudulent scheme to obtain over $450,000 in COVID-19-related unemployment assistance.
Dquintz Alexander, 34, of Cranston, R.I., was indicted on five counts of wire fraud, one count of conspiracy to commit wire fraud and one count of aggravated identity theft. Alexander was released on conditions following an initial appearance in the Eastern District of Michigan this afternoon and will appear in federal court in Boston at a later date.
In March 2020, in response to the global coronavirus pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which among other things, created a temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA). The PUA program, which in Massachusetts was administered by the Department of Unemployment Assistance, provided unemployment insurance benefits for individuals who are not eligible for other types of unemployment benefits.
According to the charging documents, Alexander participated in a scheme that obtained over $450,000 in proceeds from fraudulent PUA claims submitted between April and June 2020 in Massachusetts. Alexander and co-conspirator Norman Higgs allegedly opened bank accounts to receive payments on the fraudulent PUA claims. It is alleged that Alexander and Higgs used various methods to hide their identities in an effort to conceal the scheme, including Virtual Private Network (VPN) services, overseas email accounts and phone numbers from Voice over Internet Protocol (VoIP) services.
On Sept. 17, 2021, Higgs pleaded guilty to one count of wire fraud conspiracy and is scheduled to be sentenced on Dec. 17, 2021.
The charges of wire fraud and conspiracy to commit wire fraud each provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutively to any other sentence imposed. 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; and Jonathan Mellone, Special Agent in Charge of the Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigations, made the announcement today. The Massachusetts Department of Unemployment Assistance provided valuable assistance with the investigation. Assistant U.S. Attorney Christopher J. Markham of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Reno Man Indicted for Child Sexual Exploitation and Child Pornography OffensesRead the Press Release
RENO, Nev. – A Reno man made his initial court appearance yesterday for alleged sexual exploitation of children and child pornography offenses.
According to allegations in the indictment, James Patrick Burns, 53, threatened two children on social media applications to coerce them into producing multiple images and videos of child pornography. Burns then advertised and distributed those child pornography images and videos online to others. In addition, he allegedly advertised, possessed, distributed, and received sexually explicit images of children. Burns is registered as a sex offender related to a previous conviction.
Burns is charged with two counts of sexual exploitation of children, one count of advertising child pornography, one count of distribution and receipt of child pornography, and one count of possession of child pornography. He appeared before U.S. Magistrate Judge William G. Cobb and was detained pending trial.
A jury trial has been scheduled to begin on January 3, 2022 before Chief U.S. District Judge Miranda M. Du. If convicted, Burns faces a statutory maximum penalty of 50 years in prison for each count of child exploitation.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI made the announcement.
This case was investigated by the Northern Nevada Child Exploitation and Human Trafficking Task Force, FBI, Washoe County Sheriff’s Office, Sparks Police Department, Nevada Attorney General’s Office, Homeland Security Investigations, and Los Angeles County Sheriff’s Office. Assistant U.S. Attorney Andolyn Johnson is prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals, federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, visit www.usdoj.gov/psc.
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Red Lake Man Pleads Guilty to AssaultRead the Press Release
ST. PAUL, Minn. – A Red Lake man pleaded guilty today to assault resulting in substantial bodily injury, announced Acting U.S. Attorney W. Anders Folk.
According to court documents, Chad Joseph Sumner, Sr., 42, admitted to assaulting victim “Jane Doe,” at her home on June 30, 2019. As a result of the assault, Jane Doe had a laceration above her right eye and blood on her shirt.
Sumner pleaded guilty today before U.S. District Judge Eric C. Tostrud to one count of assault resulting in substantial bodily injury. A sentencing date has not been set.
This case is the result of an investigation conducted by the Red Lake Department of Public Safety and the FBI.
Assistant U.S. Attorney Deidre Y. Aanstad is prosecuting the case.
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Promoting Safe Traffic Stops: A Driver’s Education Safety Collaboration Between the U.S. Attorney’s Office, the Delaware State Police, and the Wilmington Police DepartmentRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, Delaware State Police Colonel Melissa A. Zebley, and Wilmington Police Chief Robert J. Tracy, today announced an ongoing effort with school districts throughout Delaware to teach driver’s education students how to engage safely with law enforcement. Thanks to Principal Lisa Brewington, more than 200 William Penn High School driver’s education students participated in the “Road Rules and Rights” program this week.
Road Rules and Rights is an interactive learning experience designed to encourage good decision-making during routine traffic stops for high school sophomores. During a 90-minute learning experience, driver’s education students engage in discussions with law enforcement and simulate a traffic stop. Ultimately, the program emphasizes both the Constitutional rights and statutory obligations of new drivers during law enforcement encounters.
William Penn, the State’s largest high school, is the most recent program participant. Statewide, the Road Rules and Rights Initiative has educated over 1,200 new student drivers about roles, responsibilities, and rights during traffic stops since the beginning of the 2021-2022 school year.
USA Weiss commented about this week’s work at William Penn High School:
“I want to thank our partners in the Colonial School District and schools throughout the state for embracing this needed program. Fundamentally, this is about breaking down barriers. Through classroom participation, the William Penn students interacted with Delaware State Police and Wilmington Police Department officers and a prosecutor from my office to simulate a variety of common traffic stop fact patterns. The Road Rules and Rights Initiative provides a hands-on opportunity for students to better understand common police practices. By learning basic safety tips, traffic stops will be shorter and safer for the public and those law enforcement officers who serve us on Delaware’s roadways.”
“The safety and well-being of our students remains a top priority at William Penn. We wish to thank all involved with educating our students about how to properly engage with police. Activities such as this, helps to foster relationships and instill confidence and trust between students and law enforcement,” said Principal Brewington.
Colonel Melissa A. Zebley stated, “The Delaware State Police would like to thank the United States Attorney’s Office for this program and the partnership with the school districts to allow us to provide this important training. A traffic stop can be one of the most dangerous situations our troopers are faced with in the course of their daily duties. Understanding the proper procedures of the law enforcement officer, as well as the common issues or questions the driver may have, will make it safer for the young drivers and the troopers during a traffic stop.”
“I am proud of the efforts of Wilmington Police officers who have long participated in programs like this, as part of the daily outreach we have with the community we serve,” said Chief Tracy. “This is a great example of the types of relationship building that we have seen work well in Wilmington, and among our partner agencies in Delaware.”
For more information regarding Road Rules and Rights or other school-based programs visit the U.S. Attorney’s Office website here or contact us at 302.573.6277.
Portland Man Pleads Guilty to Fraud Charges After Stealing Covid-Relief FundsRead the Press Release
PORTLAND, Ore.—A Portland man pleaded guilty today for perpetrating a scheme to steal funds intended to help small businesses during the COVID-19 pandemic.
Eric Wade Lysne, 35, pleaded guilty to bank and wire fraud.
According to court documents, in April 2020, Lysne devised and perpetrated a scheme to defraud the Small Business Administration (SBA) and various financial institutions by fraudulently applying for and obtaining Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans using false borrower information. Lysne created fictitious entities, including Paradigm Consulting Groups (Paradigm), on whose behalf he applied for and received the loans.
In May 2020, Lysne applied for an EIDL, falsely claiming Paradigm employed 10 individuals in the agriculture sector and grossed nearly $1 million for the twelve-month period ending in January 2020. Lysne also falsely claimed that he, as the applicant, had not been convicted of any felonies in the last five years when, in fact, he had been in prison for nearly a year following a May 2019 felony conviction in Washington County, Oregon, and was then on post-prison supervision.
In early June 2020, SBA disbursed a $147,400 EIDL to Paradigm through Lysne’s personal bank account. The deposit was followed by an additional $10,000 advance paid several weeks later. After receiving the funds, Lysne spent them on various personal expenses, including travel bookings and numerous cash withdrawals.
In April 2021, Lysne applied for an increase in his EIDL balance, seeking to borrow an additional $302,600. The application was pending when Lysne was indicted in May 2021. Around the same time, Lysne also applied for a $50,000 PPP loan on Paradigm’s behalf from a bank in Logan, Utah. In the application, Lysne again falsely claimed he had not been convicted of any recent felonies. He further falsely represented that Paradigm employed two individuals and had an average monthly payroll of $20,000. Based on Lysne’s fraudulent misrepresentations, the bank approved the loan application in part and disbursed a $27,700 loan to Lysne.
On May 19, 2021, a federal grand jury in Portland returned a two-count indictment charging Lysne with bank fraud and wire fraud.
Wire fraud is punishable by up to 20 years in prison, a fine of $250,000 or twice a defendant’s gross gains or the victim’s losses, and three years’ supervised release. Bank fraud is punishable by up to 30 years in prison, a $1 million fine, and five year’s supervised release.
Lysne will be sentenced on February 1, 2022 before U.S. District Court Judge Michael H. Simon.
As part of his plea agreement, Lysne has agreed to pay $360,467 in restitution to SBA and forfeit $185,100 seized by law enforcement.
This case was investigated by the U.S. Treasury Inspector General for Tax Administration (TIGTA), the SBA Office of Inspector General, and the FBI. Assistant U.S. Attorney Ryan W. Bounds is prosecuting the case.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable PPP loans to small businesses for job retention and other expenses. In April 2020, Congress authorized over $300 billion in additional PPP funding.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Polson meth trafficker sentenced to more than 13 years in prisonRead the Press Release
GREAT FALLS — A Polson man convicted by a jury of trafficking methamphetamine in the Helena community was sentenced today to 13 years and eight months in prison to be followed by five years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
A federal jury found Roy Allen Shostak, 29, guilty on July 28 of possession with intent to distribute meth after 18 minutes of deliberation following a one-day trial.
Chief U.S. District Judge Brian M. Morris presided.
In evidence presented at trial and in court documents, the government alleged that in May 2020, law enforcement in Helena received information that Shostak was driving a black Jaguar car, dealing meth from a trailer home and had absconded from state probation. After surveilling the residence, officers arrested Shostak on an outstanding warrant. Officers seized the car, searched it pursuant to a warrant and found three baggies of meth, a digital scale, a syringe, two cellular phones, a bill of sale showing Shostak had recently purchased the car and other items. A search of the phone showed messages between Shostak and others discussing Shostak’s trafficking of meth and heroin.
Assistant U.S. Attorney Jeffrey K. Starnes prosecuted the case, which was investigated by the Drug Enforcement Administration, Helena Police Department and the Missouri River Drug Task Force.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Pittsburgh Man Sentenced for Obstructing Pittsburgh Police during May 30, 2020 Pittsburgh ProtestRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, was sentenced in federal court on a charge of obstruction of law enforcement during civil disorder, Acting United States Attorney Stephen R. Kaufman announced today.
Raekwon Blankenship, 25, was sentenced to time served of five months followed by three years of supervised release by United States District Judge Arthur J. Schwab.
The court was previously advised that on May 30, 2020, Blankenship did knowingly and willfully throw projectiles at several vehicles occupied by police officers, causing the obstruction, impediment and interference of law enforcement officers engaged in the lawful performance of their official duties. Blankenship also attempted to poke a police horse during the civil disorder.
Assistant United States Attorney Jonathan D. Lusty prosecuted this case on behalf of the government.
The Pittsburgh Bureau of Police and the Federal Bureau of Investigation conducted the investigation.
Philipsburg Man Pleads Guilty in Meth ConspiracyRead the Press Release
JOHNSTOWN, Pa. – A former resident of Philipsburg, PA pleaded guilty in federal court to a charge of violating narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
Timothy Ferguson, 34, pleaded guilty to a lesser included offense at Count Two of the Superseding Indictment before Senior United States District Judge Kim R. Gibson.
In connection with the guilty plea, from July 2019 to June 2020, Ferguson did conspire to distribute a quantity of a mixture and substance containing a detectable amount of methamphetamine.
Judge Gibson scheduled sentencing for March 10, 2022. The law provides for a maximum sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pennsylvania State Police conducted the investigation that led to the prosecution of Ferguson. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, Homeland Security Investigations, Pennsylvania Office of the Attorney General, Clearfield County District Attorney’s Office, Erie County District Attorney’s Office, Millcreek Police Department, Erie Bureau of Police, and other local law enforcement agencies.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Passaic County Man Sentenced to 17 Months in Prison for Bank Fraud ConspiracyRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man was sentenced today to time served – 17 months – for his role in a bank fraud conspiracy, Acting U.S. Attorney Rachael A. Honig announced.
Miguel Ortiz, 22, of Paterson, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to an information charging him with one count of conspiracy to commit bank fraud. Judge McNulty imposed the sentence by videoconference today.
According to documents filed in this case and statements made in court:
Ortiz and others participated in a conspiracy to commit bank fraud in which they conspired to break into U.S. Postal Service collection boxes throughout New Jersey and then steal mail. The members of the conspiracy agreed to fraudulently deposit stolen checks into bank accounts associated with members of the conspiracy, despite the fact that they were not payees on the checks. Members of the conspiracy then withdrew funds from those accounts.
Judge McNulty also sentenced Ortiz to three years of supervised release and ordered him to pay $90,864 in restitution and $23,123 in forfeiture.
Acting U.S. Attorney Honig credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Katherine Calle of the Health Care Fraud Unit in Newark.
Owner of Crowdfunding Real Estate Investment Company Sentenced to Federal Prison for Mail FraudRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan has sentenced Daniel Summers (69, St. Augustine) to 21 months in federal prison for mail fraud. As part of his sentence, the court also ordered Summers to pay $486,874.11 in restitution and, separately, entered a forfeiture money judgment against him in the amount of $739,910, the proceeds of the fraud scheme.
Summers had pleaded guilty on April 29, 2021.
According to court documents, Summers owned a Jacksonville-based company called Realty E Vest, a/k/a IHT Realty Group, which operated an internet crowdfunding investment platform for real estate development projects. Summers also owned E Vest Technology, which sought to develop and license the Realty E Vest crowdfunding platform to others seeking to manage their own crowdfunding efforts. Individuals invested in projects by wiring funds to Realty E Vest, where the funds were supposed to be held in escrow until the project met its crowdfunding goal. If a project failed to meet its goal, Summers promised to return the investors’ funds.
When several Realty E Vest crowdfunding projects failed to fully fund, Summers intentionally kept the investors’ money and misappropriated it to fund the ongoing operations of his companies, including paying employee salaries. Summers gave these victims the illusion that they had successfully invested in these projects by paying investors purported investment returns for the failed projects via mailed checks or wire transfers. Summers also repaid the investments of some victims who had complained after learning the crowdfunding projects had failed to fund. However, the money funding these payments was not derived from the real estate developers or any legitimate investment activity; instead, it was derived from victims’ principal investments in other crowdfunding ventures and equity investments Summers solicited in E Vest Technology.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney David B. Mesrobian.
North Highlands Man Charged with Drug Trafficking OffenseRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against Alberto Arriaga Velazquez, 40, of North Highlands, charging him with possession with intent to distribute methamphetamine, Acting U.S. Attorney Phillip A. Talbert announced.
The charge arose out of a months-long investigation into drug trafficking in Sacramento County. According to court documents, on Oct. 13, 2021, law enforcement officers seized over 4 pounds of methamphetamine intended for distribution from Velazquez’s home.
This case is the product of an investigation by the Drug Enforcement Administration. Assistant U.S. Attorney Alstyn Bennett is prosecuting the case.
If convicted, Velazquez faces a mandatory minimum sentence of 10 years in prison and a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Nine Defendants Charged with Drug Trafficking and Firearms Crimes after Joint Federal, State, and Local OperationRead the Press Release
Florence, South Carolina --- Acting United States Attorney M. Rhett Dehart announced today that a joint team of federal, state, and local law enforcement officers arrested eight individuals who have all been charged, along with one other defendant, in federal court for their involvement in drug trafficking and firearms offenses in Florence.
The recent charges follow early-morning arrests on October 19 that were the result of a joint operation which represents a line of federal, state, and local authorities working in tandem to bring consequences to those who harm their communities. The multi-year operation has specifically targeted members and associates of several sets of a violent street gang in the region.
“This office has been clear: those who sow violence in South Carolina communities will be prosecuted,” said Acting U.S. Attorney DeHart. “I want to especially thank the federal, state, and local agents who stepped into harm’s way to execute this operation. These types of cases target entire criminal organizations and help us keep communities safer.”
“The alleged actions detailed in these indictments are troubling and remind us how the combination of illegal narcotics and gun violence can cast a dark shadow over our communities,” said Susan Ferensic, Special Agent in Charge of the Columbia Federal Bureau of Investigation (FBI) Field Office. “The FBI along with our local, state, and federal partners will continue to use aggressive approaches to identify, disrupt, and dismantle our most violent offenders and their criminal enterprises.”
“Law enforcement is never better than when we work in cooperation with other partners,” said Florence County Sheriff T.J. Joye. “This operation is a prime example of how we can improve our communities when we work together.”
“This is just the beginning of our endeavor to reduce the illegal drug trade and violent crime by actively identifying criminal gangs and their membership for prosecution,” said City of Florence Chief of Police Allen Heidler. ”We pledge to continue in this diligent collaboration with our law enforcement colleagues to bring more illegal drug trade and violent crime offenders to justice, making our communities safe.”
The eight arrested defendants have been charged in several indictments with firearms offenses and trafficking various drugs, including crack, cocaine, methamphetamine, fentanyl, and marijuana.
Demetrius Cornelius Thomas, 34, of Florence, is charged with conspiracy to distribute and distribution of crack, and possession with intent to distribute crack, cocaine and heroin;
Delonta Nathaniel Brown, 35, of Florence, is charged with conspiracy to distribute crack, possession with intent to distribute crack, cocaine and heroin, possession of a firearm in furtherance of a drug trafficking crime and felon in possession of a firearm;
Shakeam Marquise Backus, a/k/a “B.G.”, 26, of Florence, is charged with conspiracy to distribute crack, possession with intent to distribute crack, cocaine and heroin, and felon in possession of a firearm;
Marquaris Quachan Da-Whan White, a/k/a “KAP Savage,” 25, of Florence, is charged with possession with intent to distribute marijuana, possession of a firearm in furtherance of a drug trafficking crime and felon in possession of a firearm;
Ty Quez Chamon Cooper, 26, of Florence, is charged with possession with intent to distribute marijuana, two counts of possession of a firearm in furtherance of a drug trafficking crime and felon in possession of a firearm;
Jyqwon Antonio Woods, a/k/a “Cheese,” 33, of Florence, is charged with conspiracy to distribute crack and cocaine, possession with intent to distribute crack and cocaine, possession of a firearm in furtherance of a drug trafficking crime and felon in possession of a firearm;
Tyraze Tyrone-Lamonte Eaddy, 22, of Florence, is charged with robbery affecting interstate commerce, possession with intent to distribute methamphetamine, fentanyl, and marijuana, and possession of a firearm in furtherance of a drug trafficking crime; and
Joey Qurrieven York, JR., 22, of Florence, is charged with possession with intent to distribute marijuana, possession of a firearm in furtherance of a drug trafficking crime and felon in possession of a firearm.
Defendants Thomas, Brown, White, Cooper, Woods, and Eaddy face a maximum penalty of life in federal prison, and Defendant Backus faces up to 40 years in federal prison.
In addition to the defendants arrested, an additional defendant has been charged in an indictment with drug trafficking offenses.
Levester Tyyon Woods, a/k/a “Main,” 36, of Florence, is charged with conspiracy to distribute crack and cocaine, and possession with intent to distribute crack, cocaine, and marijuana.
Defendant Woods faces up to 20 years in federal prison.
According to the complaints filed against these defendants, the case involves members of a street gang who distributed drugs in the Florence area. The complaints filed against these defendants also allege that the gang members often used firearms and violence to conduct their illegal activity and further their criminal enterprise.
During the course of the investigation into the drug trafficking and firearms offenses of these defendants, agents have seized crack, cocaine, methamphetamine, heroin, fentanyl, marijuana, and firearms.
The case was investigated by the FBI, Drug Enforcement Administration (DEA), Florence County Sheriff’s Office, Florence Police Department, South Carolina Law Enforcement Division (SLED), and the Twelfth Circuit Solicitor’s Office.
Assistant United States Attorney A. Bradley Parham is prosecuting the case.
The United States Attorney stated that all charges in this indictment are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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New Orleans Tax Preparer Sentenced to Serve a Year and a Day in Federal Prison After Pleading Guilty to Failing to Declare More Than $695,000 in Income on Tax ReturnsRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced today that on November 3, 2021 QUINCY E. IRVIN, age 43 of New Orleans, Louisiana was sentenced to a year and a day in federal prison after previously pleading guilty to a one count Bill of Information for making false statements on an income tax return in violation of Title 26, United States Code, Section 7206.
In papers signed by the defendant and filed in open court, IRVIN admitted to owing two tax preparation companies, Discount Tax Services and Quincy Irvin Tax Services. IRVIN admitted to failing to declare a total of $696,060 in income for the tax years 2012, 2013, and 2014. The total tax loss to the government was $249,074 as a result of IRVIN’S false statements.
IRVIN was ordered to pay $249,074 in restitution and to serve one year supervised release after his prison term. IRVIN must also pay a $100 mandatory special assessment fee.
U.S. Attorney Evans praised the work of the Internal Revenue Service Criminal Investigation Division for their thorough investigation. The case was prosecuted by Assistant United States Attorney Carter K.D. Guice Jr.
New Orleans Man Sentenced for Violations of Federal Firearms and Narcotics LawsRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that DERRICK GROVES, age 24, of New Orleans, was sentenced on November 2, 2021 for federal firearms and narcotics violations.
According to court documents, on October 12, 2018, DERRICK GROVES possessed with intent to distribute heroin and fentanyl; on January 25, 2019, GROVES possessed with intent to distribute heroin, all in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C). DERRICK GROVES was also in possession of a firearm on those dates, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i).
U.S. District Judge Greg G. Guidry sentenced GROVES to serve 11 years and 9 months in prison, to be followed by 3 years of supervised release. Judge Guidry also imposed $400 in mandatory special assessment fees.
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.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation New Orleans Violent Crimes Task Force, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the New Orleans Police Department in investigating this matter. Assistant United States Attorney Maria M. Carboni is in charge of the prosecution.
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New Bedford Man Sentenced for Cocaine ConspiracyRead the Press Release
BOSTON – A New Bedford man was sentenced today for conspiring to distribute large quantities of cocaine.
Jaime Torres, 48, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to 78 months in prison and five years of supervised release. On June 16, 2021, Torres pleaded guilty to one count of conspiring to distribute and to possess with intent to distribute 500 grams or more of cocaine and one count of possession with intent to distribute 500 grams or more of cocaine, 100 grams or more of heroin, 40 grams or more of fentanyl and five grams or more of methamphetamine.
From at least February 2019 through December 2019, Torres conspired with others to distribute large quantities of cocaine. Investigators intercepted a number of communications between Torres and co-conspirators, including communications on or about June 17, 2019, in which Torres and various co-conspirators agreed to distribute two kilograms of cocaine or more. Later that day, investigators seized approximately two kilograms of cocaine from Torres’s storage unit as well as 117 grams of a mixture and substance containing heroin, 55 grams of a mixture and substance containing fentanyl and over 43 grams of methamphetamine.
Acting United States Attorney Nathaniel R. Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Ketty Larco-Ward, Inspector in Charge of the United States Postal Inspector Service, Boston Division; and New Bedford Police Chief Joseph C. Cordeiro made the announcement. Assistant U.S. Attorney Craig Estes of Mendell’s Narcotics and Money Laundering Unit prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
New Bedford Man Sentenced for Being a Felon in Possession of Firearms and AmmunitionRead the Press Release
BOSTON – A New Bedford man was sentenced yesterday for illegally possessing three firearms and ammunition.
Jose Montanez, 24, was sentenced by U.S. District Court Judge Richard G. Stearns to three years in prison and three years of supervised release. On June 2, 2021, Montanez pleaded guilty to one count of possessing a firearm and ammunition while being a convicted felon.
On or about July 20, 2020, Montanez had a Smith and Wesson .380 Bodyguard; an H&R .22 caliber revolver; a Springfield XD-40 .40 caliber handgun; six rounds of .380 ammunition; and 279 rounds of .22 caliber ammunition inside of a hotel room in which he was staying. Federal law prohibits Montanez from possessing a firearm or ammunition due to a prior felony conviction.
The charge of being a convicted felon in possession of a firearm and ammunition provides for a sentence of up to 10 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; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and New Bedford Police Chief Joseph C. Cordeiro made the announcement. Assistant U.S. Attorneys Kenneth G. Shine and Evan Gotlob of Mendell’s Major Crimes Unit prosecuted case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Motorcycle Club President Involved in Shootout Sentenced to 7 Years for Gun CrimeRead the Press Release
The president of a motorcycle club involved in a shootout at a Lubbock bar was sentenced today to seven years in federal prison for a firearm offense, announced Acting U.S. Attorney Chad E. Meacham.
Danny Lee Gollihugh, the 42-year-old president of the local chapter of the Kinfolk Outlaw Motorcycle Club, pleaded guilty in July to possession of an unregistered firearm. He was sentenced Thursday by U.S. District Judge James Wesley Hendrix.
In plea papers, Mr. Gollihugh admitted that he built a short-barrel rifle using an Aero Precision lower receiver, a Magpul carbine stock, and the “shortest barrel that Sharp Shooters had.” A records check revealed that the weapon was not registered to Mr. Gollihugh in the National Firearms and Transfer Records, which is required by the National Firearms Act.
At his sentencing hearing, prosecutors introduced evidence that proved Mr. Gollihugh was involved in a shootout against members of the Bandidos Outlaw Motorcycle Club at the 50th Street Caboose restaurant and bar in Lubbock on November 12, 2020.
Surveillance video admitted into evidence during the hearing shows several members of the Bandidos approaching the defendant and his associates at a pool table. Mr. Gollihugh, clad in a leather vest and backwards baseball cap, then whipped out a pistol and pulled the slide back, while another Kinfolk Outlaw member fired a round in the Bandidos direction. The defendant later admitted that he’d attempted to fire the handgun, but it jammed.
Agents discovered the unregistered short-barrel rifle, along with the pistol used in the shooting, during Mr. Gollihugh’s arrest two days later. He is currently facing pending state charges for engaging in organized criminal activity.
The Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division, Lubbock Resident Agency, the Lubbock Police Department, and the United States Marshals Service conducted the investigation. Assistant U.S Attorneys Ryan Redd and Matt McLeod prosecuted the case.
Morgantown woman admits to tax fraudRead the Press Release
CLARKSBURG, WEST VIRGINIA – Diann Carol Clark, of Morgantown, West Virginia, has admitted to a payroll tax fraud charge, United States Attorney William J. Ihlenfeld, II announced.
Clark, 59, pleaded guilty today to one count of “Willful Failure to Collect or Pay Over Employment Tax.” Clark was employed by Alpha Associates, Inc. in Morgantown. Clark was an office manager and bookkeeper at Alpha Associates, where she managed payroll between 2014 and 2018. Clark was responsible for collecting and paying over to the IRS Social Security, Medicare, and income taxes withheld from the wages of Alpha Associates employees. Despite knowing the firm withheld these payroll taxes from its employees’ paychecks, Clark did not pay over approximately $1,900,000, in such taxes to the IRS.
Clark faces up to five years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Danae DeMasi-Lemon and Trial Attorney Kevin Schneider of the Justice Department’s Tax Division are prosecuting the case on behalf of the government. The IRS investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Monroe County Man Charged with $450,000 in Covid-Relief FraudRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that on November 2, 2021, Julian J. Levons, age 64, of Henryville, Pennsylvania, was charged in an indictment with perpetrating a wire fraud and money laundering scheme to obtain and attempt to obtain approximately $450,000 in COVID-19 relief guaranteed by the Small Business Administration through the Economic Injury Disaster Loan (EIDL) program.
The EIDL program is designed to help small businesses facing financial difficulties during the COVID-19 pandemic. Funded by the March 2020 CARES Act, EIDL funds are offered in low-interest rate loans, designated for specific business expenses, such as fixed debts, payroll, and business obligation.
According to Acting United States Attorney Bruce D. Brandler, the indictment alleges that Levons obtained two EIDL loans for a combined approximate $300,000, and attempted unsuccessfully to obtain a third EIDL loan for approximately $150,000. In applying for the loans, Levons falsified revenue and expense figures for two supposed small businesses that he and his wife owned. The money was allegedly used to pay down a high interest rate line of credit for Levons’s personal expenses, and to pay off a high interest rate mortgage on a rental property, despite prohibitions on the use of EIDL funds to refinance pre-existing debt. Investigators seized over $210,000 in fraudulently obtained EIDL funds from bank accounts under his control. Levons was charged with conspiracies to commit wire fraud and money laundering, five counts of wire fraud, and three counts of illegal monetary transactions.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Phillip J. Caraballo is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the most serious offenses are 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Mexican Citizen Sentenced to Federal Prison for Transporting 10 Lbs. of Methamphetamine and Illegal Possession of FirearmRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that MARTIN ALAMEDA-PINEDA, age 37, of Mexico, was sentenced on November 3, 2021 to 180 months in prison for transporting a large amount of methamphetamine into the Eastern District of Louisiana from Texas, while armed with a firearm. ALAMEDA-PINEDA was also sentenced to five (5) years of supervised release following imprisonment and a $100 mandatory special assessment fee. Earlier this year ALAMEDA-PINEDA pled guilty as charged to a three-count indictment that was pending against him. He was charged in Count 1 with possession with the intent to distribute 500 grams or more of methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)A); Count 2 with possessing a firearm in furtherance of his drug trafficking activities, in violation of Title 18, United States Code, Section 924(c); and charged in Count 3 with being an illegal alien in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(5)(A).
According to the documents that were placed into the court record during his guilty plea, the defendant was arrested by St. Tammany Parish Sheriff Detectives after they conducted a lawful traffic stop of his vehicle and found 10 lbs. of methamphetamine in the back seat of his vehicle and a firearm in the center console. The detectives conducted the stop based on information obtained from Special Agents with the Department of Homeland Security, who had knowledge that the defendant would be transporting a significant amount of drugs to the Eastern District of Louisiana.
U. S. Attorney Evans praised the work of the Department of Homeland Security and the St. Tammany Parish Sheriff’s Office in working together to investigate this matter. The case was prosecuted by Assistant United States Attorney Maurice E. Landrieu, Jr.
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Marion County Man Pleads Guilty to Distributing Bombmaking InstructionsRead the Press Release
MARSHALL, Texas – A Jefferson man has pleaded guilty to federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas Ganjei today.
Beau Daniel Merryman, 20, pleaded guilty to distribution of information relating to explosives and destructive devices today before U.S. Magistrate Judge Roy S. Payne.
According to information presented in court, between September and October 2019, Merryman engaged in a series of online conversations with covert FBI employees. During those conversations, Merryman provided detailed instructions on how to make multiple types of improvised explosive devices (IEDs), such as pipe bombs and pressure-cooker bombs. Merryman explained how to construct the IEDs, select explosives, pack shrapnel for maximum damage, and construct fuses or detonating devices. Merryman also directed that the IEDs be used to target federal law enforcement and critical infrastructure, such as electrical substations.
“This defendant had the knowledge, intent, and capability to inflict great harm on our East Texas community,” said Acting U.S. Attorney Nicholas J. Ganjei. “Thanks to the extraordinary investigative work of our agency partners, he was stopped before any lives were lost or damage was done.”
“This defendant believed he was sharing his knowledge and expertise with individuals who would cause significant damage or injury to targets including federal law enforcement and critical infrastructure,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “The FBI is committed to protecting our communities from harm and working with our law enforcement partners to disrupt violent activity. We ask the public to stay vigilant and to continue reporting suspicious or threatening behavior to law enforcement.”
Merryman was indicted by a federal grand jury on Oct. 16, 2019. He faces up to 20 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being investigated by the Federal Bureau of Investigation Tyler Resident Agency, Bureau of Alcohol Tobacco Firearms and Explosives, Cass County District Attorney's Office, Atlanta Police Department, and Tyler Police Department. This case is being prosecuted by Assistant U.S. Attorneys Frank Coan and Ryan Locker.
Maplewood Felon Indicted for Illegal Possession of a FirearmRead the Press Release
Minneapolis, Minn. – A federal grand jury returned an indictment against a Maplewood man for illegally possessing a firearm, announced Acting U.S. Attorney W. Anders Folk.
According to court documents, on October 12, 2021, Metro Transit Police Officers were dispatched to a report of a vehicle stuck on the light rail tracks in St. Paul. At the scene they found Deandre Lenier Neal-Hill, 34, unresponsive in the driver’s seat of a maroon Chevrolet Malibu. The vehicle, with the engine still reviving, had a flat tire and was stuck in the tracks. Officers extracted an unresponsive Neal-Hill from the vehicle and began preforming life-saving measures until the paramedics arrived and took him to a hospital.
According to court documents, as officers extracted Neal-Hill from the vehicle, officers observed a black handgun on the floorboard on the driver’s side of the vehicle, which was later determined to be an FNH USA model 503 9mm semiautomatic pistol. The pistol had a round chambered, and carried a loaded magazine.
Because Neal-Hill has prior felony convictions, including convictions of drive-by shooting, assault, and drug sale, he is prohibited under federal law from possessing firearms or ammunition at any time.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is the result of an investigation conducted by the ATF, the St. Paul Police Department, and the Metro Transit Police Department.
Assistant U.S. Attorneys Matthew S. Ebert and Thomas Calhoun-Lopez are prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Man Who Pointed Apparent Firearm at Police Officer Charged with Unlawfully Possessing a FirearmRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Jeremiah Smith, 41, of Burlington, was charged today by criminal complaint with unlawfully possessing a firearm as a convicted felon. Smith is scheduled to appear on the charge before U.S. Magistrate Judge Kevin J. Doyle on November 5, 2021.
According to court records, on November 3, 2021, Burlington Police received a report of a stolen pickup truck, which had been stolen from Pine Street in Burlington. The owner also relayed that a 9mm firearm had been in the truck at the time it was stolen. Burlington Police were able to determine the vehicle was located on Pearl Street in Essex, Vermont. Essex Police Officers responded to the location of the vehicle, and observed Smith as the sole occupant. Smith refused to roll down his window or exit the vehicle after repeated requests, requiring the responding officer to break the window of truck. As the glass broke, Smith pointed what appeared to be a firearm at the Essex Police Officer. The officer drew his service firearm, backed away from the pickup, and ordered Smith out of the vehicle. Smith continued to refuse commands, and attempted to drive the pickup, which had been remotely disabled. Smith then exited the pickup truck and began walking away from the officer. Essex officers approached Smith and detained him. While taking him into custody, officers located a Ruger 9mm pistol in Smith’s jacket pocket. A search of the vehicle resulted in the seizure of a realistic-looking pistol-style pellet gun from the driver’s side floorboard. Smith is prohibited from possessing firearms under federal law due to a prior felony conviction.
If convicted of the charge alleged in the complaint, Smith faces a maximum sentence of ten years of imprisonment and a $250,000 fine. The actual sentence however, would be determined by the Court with guidance from the advisory Federal Sentencing Guidelines. The Acting United States Attorney emphasized that the charge in the complaint is merely an accusation, and that the defendant is presumed innocent unless and until he is proven guilty.
Acting United States Attorney Jonathan A. Ophardt commended the coordinated response of the Burlington Police Department and the Essex Police Department, and thanked the Bureau of Alcohol, Tobacco, Firearms, and Explosives for their investigatory assistance. Acting United States Attorney Ophardt added: “Our law enforcement officers routinely risk their lives to protect our communities. The quick work of Burlington and Essex officers not only recovered a stolen truck, but disarmed a person alleged to be prohibited from possessing firearms. I am exceedingly thankful that this armed encounter did not result in serious injury to officers or the defendant.”
“Jeremiah Smith is accused of being a convicted felon in possession of a firearm. Smith is alleged to have endangered the community by illegally possessing a gun and pointing what appeared to be a firearm at an officer. Fortunately, Smith was taken into custody without incident,” said Acting Special Agent in Charge Kenneth Kwak of the ATF Boston Field Division. “ATF and our law enforcement partners will continue to aggressively pursue those who illegally possess firearms and threaten the safety of our communities.”
“We are fortunate that this incident did not result in an officer involved shooting and that the subject was able to be taken into custody without persons being injured,” stated Essex Police Chief Ron Hoague. “This was solely due to the training and excellent judgment of our officers. They are to be commended for safely apprehending such a dangerous suspect.”
The United States is represented in this matter by Assistant U.S. Attorney Andrew Gilman. Smith has not yet retained or been appointed counsel.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see http://www.justice.gov/projectguardian/.
Man Sentenced to Six Years in Federal Prison for Possession of Child PornographyRead the Press Release
BECKLEY, W.Va. – Gregory Weymes, 58, an Australian national residing in Ridgeview, was sentenced to six years in federal prison for possession of child pornography. Weymes was also ordered to pay $6,000 in restitution to two identified victims.
According to court documents and statements made in court, Weymes previously admitted that he possessed child pornography on his cell phone on February 23, 2021. After receiving a CyberTip through the National Center for Missing and Exploited Children (NCMEC), law enforcement officers obtained a search warrant for Weymes’ residence and seized the cell phone. Weymes admitted that he used various social media platforms, including MeWe, to view and trade child pornography and that investigators would find child pornography on his phone. A forensic review of Weymes’ cell phone uncovered numerous videos depicting child pornography on the device.
Weymes will serve a ten-year term of supervised release following his release from prison. Weymes also faces potential deportation to Australia as a result of this conviction.
United States Attorney William S. Thompson made the announcement and commended the investigative work of the U.S. Department of Homeland Security-Homeland Security Investigations (HSI).
United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Kristin F. Scott prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-00080.
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Madison Man Pleads Guilty to Embezzlement by a Bank OfficerRead the Press Release
Jackson, Miss. – A Madison man pleaded guilty to embezzlement by a bank officer, announced Acting U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation in Mississippi.
According to court documents, Thomas King Robb, Jr., 37, used his position as a loan officer at a bank to approve fraudulent loans, and used the proceeds from those loans for his own benefit. Robb created false documents using his knowledge and experience as a loan officer and created fraudulent loans in the names of other people. Robb then used the money from those loans to pay off previous loans and to keep his personal business afloat.
Robb is scheduled to be sentenced on Tuesday, February 8, 2022 and faces a maximum penalty of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Federal Bureau of Investigation is investigating the case.
Assistant U.S. Attorney Charles W. Kirkham is prosecuting the case.
Lawrence Woman Sentenced to Prison for Identity Theft and Unemployment Fraud Related to COVID-19 PandemicRead the Press Release
BOSTON – A Lawrence woman was sentenced today in connection with her involvement in a scheme to fraudulently obtain COVID-19-related unemployment assistance.
Raquel Pena, 40, was sentenced by U.S. Senior District Court Judge William G. Young to three years in prison and one year of supervised release. Pena was also ordered to pay restitution for any money that the government is unable to recover from the fraudulent unemployment assistance, which is currently estimated at $360,700. On July 15, 2021, Pena pleaded guilty to wire fraud and aggravated identity theft.
In March 2020, in response to the global coronavirus pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which among other things, created a temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA). The PUA program, which in Massachusetts was administered by the Department of Unemployment Assistance, provided unemployment insurance benefits for individuals who are not eligible for other types of unemployment benefits.
Pena possessed a notebook containing the names and personal information of others, which Pena and her co-conspirators used to file fraudulent PUA claims. Pena recruited acquaintances to receive the proceeds of the fraudulent claims into their bank accounts and give all or a portion of the cash to Pena. The investigation connected Pena and her co-conspirators to $360,700 in unemployment claims paid between May 2020 and March 2021.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Jonathan Mellone, Special Agent in Charge of Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigations made the announcement today. The Massachusetts Department of Unemployment Assistance provided assistance in the investigation. Assistant U.S. Attorney Christopher J. Markham of Mendell’s Securities, Financial & Cyber Fraud Unit prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Lawrence Man Arrested on Firearms and Narcotics ChargesRead the Press Release
BOSTON – A Lawrence man was arrested today and charged with firearms and drug offenses.
Miguel Mejia, 35, was indicted on one count of dealing in firearms without a license and one count of possession with intent to distribute and distribution of 40 grams more of fentanyl. Following an initial appearance this afternoon before U.S. District Court Magistrate Judge Jennifer C. Boal, Mejia was detained pending a detention hearing scheduled for Nov. 10, 2021.
According to the indictment, between July 7, 2020 and Dec. 16, 2020, Mejia sold five privately made firearms, more commonly known as ghost-guns. Additionally, on July 31, 2020, it is alleged that Mejia sold more than 40 grams of fentanyl.
The charge of dealing in firearms without a license 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 possession with intent to distribute and distribution of 40 grams or more of fentanyl provides for a sentence of at least five years and up to 40 years in prison, at least four years and up to a lifetime of supervised release and a fine of up to $5 million. 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 James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement today. Assistant U.S. Attorney Benjamin A. Saltzman of Mendell’s Major Crimes Unit is prosecuting the case.
This prosecution is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lancaster County Man Sentenced to 120 Months’ Imprisonment for Drug TraffickingRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Dillion Scott Schaffner, a/k/a “Trigger,” age 28, formerly of Elizabethtown, Pennsylvania, was sentenced on October 29, 2021, to 120 months’ imprisonment by United States District Court Judge Christopher C. Conner for conspiracy to distribute and possess with intent to distribute 50 grams and more of methamphetamine and 500 grams and more of a mixture and substance containing cocaine hydrochloride from August 2018 until August 2020, in York County, Pennsylvania and elsewhere.
According to Acting United States Attorney Bruce D. Brandler, a joint investigation by the Drug Enforcement Administration and the Pennsylvania State Police revealed that Schaffner was trafficking methamphetamine and cocaine in the York and Lancaster County areas. On October 17, 2019, the Lancaster County Drug Task Force executed a search warrant at Schaffner’s residence. Law enforcement seized approximately 14.38 grams of cocaine, 232.3 grams of marijuana, 67.09 grams of crystal methamphetamine, 3.75 grams of LSD, and 3.08 grams of psilocyn, drug proceeds, and two firearms.
The case was investigated by the Drug Enforcement Administration, the Pennsylvania State Police and the Lancaster County Drug Task Force. Assistant U.S. Attorney Daryl Bloom 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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Lafourche Parish Man Pleads Guilty to Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – JONATHAN JOHNSON, age 31, a resident of Thibodaux, Louisiana, pled guilty on November 3, 2021 before U.S. District Judge Lance M. Africk to a one-count indictment charging him with possession with intent to distribute fifty (50) grams or more of methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), announced U.S. Attorney Duane A. Evans.
According to court documents, on March 31, 2021, Lafourche Parish Sheriff’s Office Deputies executed a traffic stop on a vehicle driven by JOHNSON on Highway 1 in Thibodaux, Louisiana. Deputies conducted a license check and learned that JOHNSON was driving with a suspended license. After noticing JOHNSON’S nervous demeanor, the deputies requested the assistance of additional units. When the other officers arrived and approached JOHNSON, they observed JOHNSON open the driver’s side door of the vehicle and discard approximately three hundred (300) grams of methamphetamine onto the ground. As a result of his plea, JOHNSON faces a mandatory minimum term of imprisonment of ten (10) years up to a maximum of life imprisonment, a fine of up to $10,000,000.00, at least five (5) years of supervised release following any term of imprisonment, and a $100.00 mandatory special assessment fee.
This case was investigated by the Drug Enforcement Administration and the Lafourche Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorney André Jones.
Justice Department Settles with Transport Packaging Services Company to Resolve Immigration-Related Discrimination ClaimRead the Press Release
The Department of Justice today announced it has reached a settlement agreement with Rehrig Pacific Company (Rehrig Pacific), headquartered in California. The settlement resolves allegations that Rehrig Pacific discriminated against a non-U.S. citizen when, because of his citizenship status, it did not give him the opportunity to produce his choice of valid documentation proving his permission to work.
“It is unlawful for employers to restrict the documentation that workers can present to prove their authorization to work based on citizenship or immigration status,” said Assistant Attorney General Kristen Clarke of the Civil Rights Division. “The Justice Department will continue to safeguard the rights of workers who face unlawful discrimination.”
The department’s investigation began after a non-U.S. citizen filed a discrimination complaint. The investigation determined that when the company was checking his continued permission to work, it instructed him to produce a new document from the Department of Homeland Security. The Immigration and Nationality Act (INA) prohibits employers from limiting or specifying the types of documentation a worker is allowed to show to prove permission to work, because of a worker’s citizenship, immigration status or national origin. As a result, even when an employer has a legal requirement to check a worker’s continued permission to work, the employer should allow the worker to present whatever valid documentation the worker chooses.
Under the settlement, Rehrig Pacific will pay civil penalties to the United States and train its employees who are responsible for verifying workers’ permission to work in the United States. The settlement also requires Rehrig Pacific to be subject to departmental monitoring and reporting requirements.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
Learn more about IER’s work and how to get assistance through this brief video. More information on how employers can avoid unfair documentary practices is available here. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify) or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER. View the Spanish translation of this press release here.
En Español
Justice Department Reaches Agreement Resolving Investigation of Religious Practice Policies and Procedures within Michigan Department of CorrectionsRead the Press Release
The Department of Justice today announced that it has reached an agreement with the Michigan Department of Corrections (MDOC) to resolve its investigation of MDOC, pursuant to the Religious Land Use and Institutionalized Persons Act (RLUIPA).
The investigation and agreement addressed MDOC’s policy of a five-person minimum for group worship and religious activities, its policy of prohibiting group religious practice for certain religious groups, including Hindu, Yoruba, Hebrew Israelite and Thelema practitioners, and its restrictions limiting access to the kosher-for-Passover diet to those on the kosher diet year-round. These policies and procedures will be changed pursuant to the agreement reached today.
“The religious rights of all people, including those detained inside our nation’s jails and prisons, must be protected,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This settlement will protect the religious practices of incarcerated persons across Michigan The Justice Department remains steadfast in its commitment to ensuring that the religious rights of prisoners are respected.”
“Federal law guarantees the right to freely exercise your religion to all Americans,” said Acting U.S. Attorney Saima Shafiq Mohsin for the Eastern District of Michigan. “We are pleased that this agreement makes it easier for prisoners in the custody of the Michigan Department of Corrections to exercise this fundamental right.”
“My office is dedicated to protecting the fundamental right to exercise one’s religion, which includes the rights of institutionalized persons to practice their faiths and worship together,” said U.S. Attorney Andrew Byerly Birge for the Western District of Michigan. “This agreement is an example of my office’s commitment to protecting religious freedom for all, and we are grateful for the MDOC’s willingness to work with us and implement new policies to ensure better protection for these rights.”
As part of the agreement, MDOC will make changes to its policies and practices. The new policies and practices will (1) remove the five-person minimum for religious services and activities; (2) remove the prohibition on group religious practice for Hindu, Yoruba, Hebrew Israelite and Thelema practitioners; and (3) remove the requirement that incarcerated persons must be on the kosher diet year-round to receive the kosher-for-Passover meal. MDOC will also provide training to staff and chaplains involved in implementing the revised policy. The Department of Justice will have access to documents and correctional facilities to assess compliance with the agreement.
For additional information about the Civil Rights Division and the Special Litigation Section, please visit www.justice.gov/crt/special-litigation-section. Those interested in finding out more about RLUIPA may visit https://www.justice.gov/crt/religious-land-use-and-institutionalized-persons-act-0. The Department of Justice issued a report on the 20th Anniversary of RLUIPA in 2020 (https://www.justice.gov/opa/press-release/file/1319031/download) and a statement on the Institutionalized Persons Provisions of RLUIPA in 2017 (/media/900231/dl?inline).
Justice Department Files Lawsuit Against the State of Texas to Protect Voting RightsRead the Press Release
The U.S. Justice Department announced today that it has filed a lawsuit against the State of Texas and the Texas Secretary of State over certain restrictive voting procedures imposed by Texas Senate Bill 1, which was signed into law in September 2021. The United States’ complaint challenges provisions of Senate Bill 1 under Section 208 of the Voting Rights Act and Section 101 of the Civil Rights Act of 1964.
“Our democracy depends on the right of eligible voters to cast a ballot and to have that ballot counted,” said Attorney General Merrick B. Garland. “The Justice Department will continue to use all the authorities at its disposal to protect this fundamental pillar of our society.”
“The Civil Rights Division is committed to protecting the fundamental right to vote for all Americans,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “Laws that impair eligible citizens’ access to the ballot box have no place in our democracy. Texas Senate Bill 1’s restrictions on voter assistance at the polls and on which absentee ballots cast by eligible voters can be accepted by election officials are unlawful and indefensible.”
The United States’ complaint contends that Senate Bill 1 violates Section 208 of the Voting Rights Act by improperly restricting what assistance in the polling booth voters who have a disability or are unable to read or write can receive. The complaint alleges that Senate Bill 1 harms those voters by barring their assistors from providing necessary help, including answering basic questions, responding to requests to clarify ballot translations or confirming that voters with visual impairments have marked a ballot as intended. The United States’ complaint also contends that Senate Bill 1 violates Section 101 of the Civil Rights Act of 1964 by requiring rejection of mail ballots and mail ballot request forms because of certain paperwork errors or omissions that are not material to establishing a voter’s eligibility to cast a ballot. The complaint asks the court to prohibit Texas from enforcing these requirements.
The department also filed a statement of interest today in a Texas federal court, in litigation brought by private plaintiffs challenging Senate Bill 1. The statement of interest addresses issues related to Section 2 of the Voting Rights Act, including explaining that Section 2 permits private plaintiffs to file suit to remedy racially discriminatory voting practices.
More information about the Voting Rights Act, the Civil Rights Act and other federal voting laws is available on the Department of Justice’s website at www.justice.gov/crt/about/vot. Complaints about discriminatory voting practices may be reported to the Voting Section of the Justice Department’s Civil Rights Division through the internet reporting portal at https://civilrights.justice.gov/ or by telephone at 1-800-253-3931.
View a list of the department’s actions to protect voting rights here.
Jury Convicts Wise County Man of Trafficking Methamphetamine from Atlanta into Southwest VirginiaRead the Press Release
ABINGDON, Va. – A federal jury convicted a Wise County man this week of trafficking methamphetamine from Atlanta, Georgia.
According to court documents and evidence presented at trial, Daniel Rowland, 46, had been trafficking large quantities of methamphetamine from a source in Atlanta, Georgia, to southwest Virginia for further distribution. Rowland was arrested in possession of over two pounds of methamphetamine, $32,500 in U.S. currency, and a loaded 9mm pistol. Rowland had been wiring money from the Food City grocery in Wise, Virginia, directly to Mexico to pay for methamphetamine he purchased in Atlanta.
A federal jury convicted Rowland of conspiracy to distribute 500 grams or more of methamphetamine, possession with intent to distribute 500 grams or more of methamphetamine, possession of a firearm by a convicted felon, possession of a firearm in furtherance of a drug trafficking crime, money laundering, use of a communication facility to facilitate a drug crime, and two counts of distributing methamphetamine.
United States Attorney Christopher R. Kavanaugh of the Western District of Virginia and Charlie J. Patterson, Special Agent in Charge of ATF’s Washington Field Division made the announcement.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, the Southwest Virginia Drug Task Force, the Wise County Sheriff’s Office, the Holston River Regional Drug Task Force, and the Virginia State Police investigated the case.
Assistant U.S. Attorney Lena L. Busscher prosecuted the case.
Jury Convicts Council Bluffs Man of Sex Trafficking Omaha Victims by Force, Fraud, and CoercionRead the Press Release
Acting United States Attorney Jan Sharp announced that on November 4, 2021, after a four-day trial, a federal jury convicted Jesse Cody, 33, of Council Bluffs, Iowa, of Sex Trafficking multiple Omaha victims by force, fraud, or coercion, as well as coercing one of the victims, who was then in foster care and a ward of the Sate of Nebraska, to travel to multiple states outside of Nebraska where the defendant forced her to have sex with men for money for the defendant’s financial gain.
The victim testified that the defendant beat, raped, and choked her when she would refuse to comply with the defendant’s demands. The defendant defrauded another victim, a recent college graduate, into sex trafficking by misrepresenting to the victim the money that she could make prostituting herself and then the defendant took most of the money for himself. Chief United States District Judge Robert F. Rossiter, Jr. presided over the trial and accepted the jury’s verdict before setting Cody’s sentencing hearing for January 28, 2022, at 2:00 pm. At sentencing, Cody faces mandatory minimum sentences of 15 years on two of the counts and up to ten years of imprisonment each on the remaining two counts. There is no parole in the federal system.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Federal Bureau of Investigation and the Omaha Police Department.
Jefferson Davis County Man Sentenced to 10 Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
Hattiesburg, Miss. – A Jefferson Davis County man was sentenced to 120 months in prison for being a felon in possession of a firearm, announced Acting U.S. Attorney Darren LaMarca and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to court records, On September 23, 2020, Enoch Ben Buckley III, 36, was found in possession of multiple firearms during the execution of an arrest warrant in Hattiesburg. Buckley has been previously convicted of multiple felonies, but was most recently convicted of possession of a weapon by a convicted felon in Jefferson Davis County Circuit Court in 2018, where he was sentenced to serve a term of ten years imprisonment.
Buckley was originally indicted for this offense on October 20, 2020. He pled guilty on April 15, 2021.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Prentiss Police Department investigated the case.
Assistant United States Attorney Andrew W. Eichner prosecuted the case.
This case was prosecuted as part of the federal, state, and local Project Safe Neighborhoods (PSN) Program. The centerpiece of the Department of Justice’s crime reduction efforts, PSN is an evidence-based program proven effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together and develop comprehensive solutions. As part of this strategy, PSN focuses enforcement efforts and partners with locally based prevention and reentry programs for lasting reductions in crime.