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6 December 2021
Nine Plaquemines Parish Residents Indicted for Conspiring to Distribute Cocaine, Crack, and MethamphetamineRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that ERIC METZ, age 38, JOSHUA MACKEY, age 35, FREDERICK TURNER, age 49, DARON WILLIAMS, age 46, LONNIE WILLIAMS, age 38, CALLEIGH AMOS, age 29, THEODORE HOLMES, JR., age 33, LESLIE PARKER, age 40, and KORAL WELLS, age 64, all from Plaquemines Parish, were charged in a sealed indictment on November 19, 2021 for conspiring to distribute a quantity of cocaine, crack, and methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1), (b)(1)(C), and 846. The indictment was unsealed on December 1, 2021.
Additionally, DARON WILLIAMS is charged in Count Two of the Indictment with possessing with intent to distribute a quantity of methamphetamine, WELLS is charged in Counts Three and Four with possessing with intent to distribute a quantity of crack and a quantity of methamphetamine, respectively, and LONNNIE WILLIAMS in charged in Count Five with possessing with intent to distribute a quantity of crack, all in violation of Title 21, United States Code, Section 841 (b)(1)(C). If convicted, each of the nine defendants face up to 20 years imprisonment, a fine up to $1,000,000, a period of at least 3 years supervised release, and a mandatory special assessment fee of $100 for each charged drug count.
METZ, HOLMES, PARKER, AMOS, TURNER, and MACKEY are also charged in Counts Six through Nine with the illegal use of a communications facility in facilitating the distribution of controlled substances, in violation of Title 21, United States Code, Sections 841(a)(1), 843(b), and Title 18, United States Code, Section 2. If convicted, the charged defendants face up to 4 years imprisonment, a fine up to $250,000, a period of one year of supervised release, and a mandatory special assessment fee of $100 for each of these counts.
METZ, a convicted felon, is also charged in Count Ten with possessing a firearm as a felon, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(e). Given his criminal history, METZ faces up to fifteen years in prison, up to $250,000 in fines, up to 5 years of supervised release, and a $100 mandatory special assessment fee.
U.S. Attorney Evans reiterated that the Indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
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 Plaquemines Parish Sheriff’s Office, the Drug Enforcement Administration, New Orleans Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, in investigating this matter. Assistant United States Attorneys David Howard Sinkman and J. Benjamin Myers are in charge of the prosecution.
Nevada Man Sentenced to 46 Months in Prison for Scams Involving Election Fundraising and COVID Relief LoansRead the Press Release
WASHINGTON – James Kyle Bell, 44, of Las Vegas, Nevada, was sentenced today to 46 months in prison for carrying out separate wide-ranging fraud schemes last year: one involving fundraising for fake political action committees (PACs) that he created, and the other involving COVID-19 relief funds he sought and received through fraudulent applications. He also must forfeit or pay back nearly $1.4 million in cash and assets.
The announcement was made by U.S. Attorney Matthew M. Graves, Wayne A. Jacobs, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division, and Amaleka McCall-Brathwaite, Special Agent in Charge of the U.S. Small Business Administration’s Office of the Inspector General, Eastern Region.
Bell registered two sham PACs with the Federal Election Commission. One, the “Keep America Great Committee,” purportedly supported Donald Trump. The other, the “Best Days Lie Ahead Committee,” purportedly supported Joseph Biden, Jr. He sought donations nationwide for both PACs using online platforms and e-mail solicitations, generating at least $346,000.
Additionally, Bell created multiple shell companies that he used to defraud the U.S. Small Business Administration’s Paycheck Protection Program (PPP), which was created by Congress to provide financial assistance to Americans who suffered economic losses due to the COVID-19 pandemic. He applied for and won approval for more than $1.1 million in four separate loans. He also applied for a fifth loan for $521,625 but withdrew the application.
“This prosecution is the first in the District of Columbia involving the creation of scam political action committees,” said U.S. Attorney Graves. “It also is another in a series of prosecutions targeting frauds committed against the COVID relief efforts. The message is clear: along with our law enforcement partners, we will protect the public against fraudsters who seek to line their pockets by exploiting the political process and government programs.”
“Today’s sentencing should serve as yet another reminder to those who deceive and steal from hardworking Americans—you will ultimately be held to account for your actions,” said Special Agent in Charge Jacobs of the FBI Washington Field Office Criminal Division. “The FBI and its partners will continue to aggressively investigate those who perpetrate fraud schemes at the expense of the American people. Bell defrauded over 2,000 victims, who were all deceived into thinking they were making a donation to the presidential candidate of their choice, but in reality, that money was going to Bell’s personal accounts. Bell also defrauded the government through the Paycheck Protection Program, pocketing money meant for Americans in need.”
“Lying to gain access to SBA’s pandemic response programs is not without consequence,” said Special Agent in Charge Amaleka McCall-Brathwaite of the SBA’s Office of Inspector General, Eastern Region. “SBA’s Paycheck Protection Program is intended to provide assistance to the nation’s small businesses struggling with the pandemic challenges. I want to thank the U.S. Attorney’s Office for its leadership and dedication to pursuing justice.”
Bell pleaded guilty in May 2021 to one count of wire fraud in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable John D. Bates. Following completion of his prison term, he will be placed on two years of supervised release.
According to the government’s evidence, between January 2020 and October 2020, Bell’s PACs sent solicitations nationwide to more than 40,000 recipients. The solicitations promised that individual donations would be “5x matched” by Bell’s PACs. The solicitations also replicated the look and feel of marketing materials used by the presidential campaigns, including official logos and slogans. Bell also set up websites to solicit donations with names like “keepamericagreatcommittee.com,” “trump2020maga.com,” and “bestdayslieaheadcommittee.com.” The sham PACs received more than $346,000 in contributions from individuals and other groups during the months before the 2020 election. However, none of the individual donations were ever “5X matched” by Bell or anyone else. Additionally, Bell made a series of false filings with the FEC in which Bell claimed that his PACs had made expenditures in support of both presidential campaigns.
During the same period, Bell applied for more than $1.6 million in PPP loans. For example, one of Bell’s companies, named “Echo Three LLC,” a company registered in Nevada with no employees and no payroll, received a PPP loan of $485,000 based on Bell’s false statements to the government that the company had 83 employees working at Bell’s private residence. In another instance, Bell obtained a PPP loan in the amount of $492,000 for a company he owned and controlled named “Myson Rules LLC” which had no employees, no payroll, no business operations, and no active business license in the State of Nevada. Bell submitted fabricated tax documents and other company records in support of all five PPP loan applications. He withdrew one application, for $521,625, before the loan could be funded.
Bell diverted almost all of the funds from PAC donors and the taxpayer-supported PPP loans to bank accounts where they could be used for Bell’s personal benefit, commingling the proceeds of the fraud and further violating federal campaign finance laws which require exacting record keeping for PACs. According to court papers, the government has located and seized $519,000 of Bell’s criminal proceeds. Bell’s plea agreement requires that Bell make full restitution to his victims and agree to the entry of a money judgement of $862,000 against him.
This matter was investigated by the FBI’s Washington Field Office and the U.S. Small Business Administration, Office of the Inspector General. Assistant United States Attorneys John W. Borchert and Elizabeth Aloi prosecuted this case.
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On May 17, 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 fraud related to COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Naples Doctor Who Operated A Pill Mill Sentenced to Three Years in Federal Prison and Ordered to Forfeit More Than $400,000 and Nine Luxury VehiclesRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell today sentenced Gerald Michael Abraham (76, Naples) to three years in federal prison for dispensing controlled substances (oxycodone and amphetamine) for no legitimate medical purpose. The court also ordered Abraham to forfeit the following items to the United States, which were proceeds of his illegal activities: a 2020 Acura NSX, a 2020 Porsche GT4, a 2021 Toyota Supra, a 2020 Chevrolet Corvette, a 2020 Aston Martin, a 2020 Nissan 370Z, a 2020 Chevrolet Camaro, two 2020 Ford Mustangs, $190,496.56 paid towards a 2021 Aston Martin, and $249,598.52 in cash.
According to court documents, Abraham was a licensed psychiatrist who practiced in Naples, Florida. His clinic operated on a cash only basis, with patients paying $400 per visit.
In October 2019, the DEA began an investigation after receiving a tip that Abraham was illegally prescribing strong opioids to patients who had no need for the medication. Over the course of the next year, the DEA conducted 18 undercover patient visits to Abraham’s office, each time receiving prescriptions for oxycodone. Abraham ignored signs of drug abuse the undercover patients pretended to have and prescribed them oxycodone without ever examining them. Additionally, Abraham repeatedly increased the strength of the prescriptions simply because the patient asked him for more. In one instance, he prescribed an undercover patient oxycodone after telling him the medical paperwork “shows you are completely normal.”
The investigation also revealed that Abraham frequently prescribed Adderall to patients for no legitimate reason. Adderall is the brand name of a drug used to treat attention deficit hyperactivity disorder and contains amphetamine, a frequently abused controlled substance. On multiple occasions, law enforcement observed Abraham prescribe Adderall simply upon a patient’s request, without asking any questions or engaging in any examination justifying the prescription.
This case was investigated by the Drug Enforcement Administration and the United States Secret Service, with assistance from the Naples Police Department and the Charlotte County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Michael V. Leeman. Assistant United States Attorneys Anita Cream and James Muench handled the forfeiture.
Mountain View Woman Pleads Guilty to Social Security FraudRead the Press Release
SPRINGFIELD, Mo. – A Mountain View, Missouri, woman who used a stolen identity to enroll in college pleaded guilty in federal court today to Social Security fraud.
Laura A. Oglesby, 48, pleaded guilty before U.S. Chief Magistrate Judge David P. Rush to one count of intentionally furnishing false information to the Social Security Administration.
By pleading guilty today, Oglesby admitted that she fraudulently applied for a Social Security card on Jan. 14, 2016, using the personal identity information of another person, identified in court documents as “L.A.H.” Based upon her false representations, the Social Security Administration issued a Social Security card to Oglesby in another person’s name.
On the same day, Oglesby used the fraudulently obtained Social Security card to obtain a Missouri driver’s license under L.A.H.’s identity.
In 2017, Oglesby used the fraudulently obtained Social Security card of L.A.H. to enroll at a university, identified in court documents as “University A.” Using the stolen identity of L.A.H., Oglesby applied for and received financial aid to attend University A. Oglesby obtained $9,400 in federal student loans, $5,920 in Pell Grants, $337 for books purchased at University A’s bookstore, and $1,863 in finance charges.
Under the terms of today’s plea agreement, Oglesby must pay $17,521 in restitution to the university, as well as restitution to the victim of her aggravated identity theft.
Under federal statutes, Oglesby is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant 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 United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Shannon Kempf. It was investigated by Social Security Administration – Office of Inspector General and the Mountain View, Mo., Police Department.
Morgan County man sentenced for child pornography chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Gunner Scott Young, of Berkeley Springs, West Virginia, was sentenced today to five years of probation for a child pornography charge, United States Attorney William J. Ihlenfeld, II announced.
Young, age 29, pled guilty to one count of “Possession of Child Pornography.” Young admitted to having pornographic images involving minors under the age of 12 in June 2019 in Morgan County.
Assistant U.S. Attorney Kimberley D. Crockett prosecuted the case on behalf of the government. The West Virginia State Police investigated.
Chief U.S. District Judge Gina M. Groh presided.
Minneapolis Felon Pleads Guilty to Illegal Possession of Unregistered FirearmRead the Press Release
MINNEAPOLIS – A Minneapolis man pleaded guilty to illegal possession of an unregistered firearm announced Acting U.S. Attorney Charles J. Kovats.
According to court documents, in July 2021, law enforcement officers obtained a search warrant for a Minneapolis residence associated with Nicholas Robert Briski-Smith, 25, who had “probable cause pickup” warrants for two recent alleged felony assaults, one of which involved a shooting, and multiple outstanding warrants. While conducting surveillance in preparation for the execution of the search warrant, officers observed Briski-Smith exit his residence and drive away in a vehicle. Officers followed Briski-Smith to a nearby corner store where they took him into custody. Following the arrest, officers recovered a loaded Stevens Arms 12-gauge short-barreled shotgun that was concealed and affixed to Briski-Smith's chest. The short-barreled shotgun was modified with a cut stock and barrel, both covered with electrical tape. During the search of Briski-Smith’s residence, officers located a Marlin, semiautomatic, .22-caliber rifle, an empty magazine for a semiautomatic firearm, a .45-caliber muzzle loader, and 17 rounds of various ammunition.
Briski-Smith pleaded guilty today before U.S. District Judge Nancy E. Brasel to one count of unlawfully possessing an unregistered firearm. A sentencing hearing will be scheduled for a later date.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Minneapolis Police Department.
Assistant U.S. Attorney Benjamin Bejar is prosecuting the case.
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Martinsburg man sentenced for his role in a firearms trafficking ringRead the Press Release
MARTINSBURG, WEST VIRGINIA – Marquis Hicks, of Martinsburg, West Virginia, was sentenced today to 54 months for his role in a conspiracy involving the illegal purchase and transportation of firearms, United States Attorney William J. Ihlenfeld, II announced.
Hicks, age 30, pleaded guilty in July 2021 to one count of “Conspiracy.” Hicks admitted to working with another individual to purchase, possess, and transfer firearms to an out of state resident, in March 2020.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
Chief U.S. District Judge Gina M. Groh presided.
Martinsburg man sentenced for drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Joseph George Ray, of Martinsburg, West Virginia, was sentenced today to 77 months of incarceration for a drug charge, United States Attorney William J. Ihlenfeld, II announced.
Ray, 56, also known as “YB,” pleaded guilty in July 2021 to one count of “Possession with Intent to Distribute a Heroin and Fentanyl Mixture.” Ray admitted to distributing heroin and fentanyl in August 2020 in Berkeley County.
These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, and the Martinsburg Police Department investigated.
Chief U.S. District Judge Gina M. Groh presided.
Lubbock Man Charged with Threatening to Kill Ex-WifeRead the Press Release
A Lubbock man who threatened to kill his ex-wife has been federally charged, announced U.S. Attorney Chad E. Meacham.
Gene Garcia Solis, 48, was charged last Friday via criminal complaint with interstate threatening communications. He had his initial appearance before U.S. Magistrate Judge D. Gordon Bryant, Jr. on Monday, Dec. 6, at which point the case against him was unsealed.
According to court documents, a Lubbock Police Officer contacted Mr. Solis on Nov. 24, 2021 to check on his welfare. Mr. Solis was distraught and allegedly told the officer he planned to kill his ex-wife and anyone who tried to stop him and then commit suicide.
Fearing for his ex-wife’s safety, officers set up surveillance at her residence.
At around 10:30 p.m., Mr. Solis allegedly drove by the residence. When officers attempted to stop his car, he fled. Nearly three hours later, law enforcement spotted the defendant in Hale Center, Texas, and once again attempted to stop his car. He attempted to flee, but hit a spike strip and crashed in the parking lot of a Texas National Guard Armory.
Mr. Solis exited the vehicle, fired several rounds from an AR 15-style rifle, and ran inside the Armory.
“Mr. Solis's actions endangered the life of his ex-wife, the law enforcement officers who responded to multiple scenes and the public at-large,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “Together with our law enforcement partners, the FBI’s priority is to protect and keep the communities we serve safe from harm.”
A criminal complaint is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Solis is presumed innocent until proven guilty in a court of law.
The Federal Bureau of Investigation’s Dallas Field Office, Lubbock Resident Agency and the Lubbock Police Department conducted the investigation with the assistance of the Hale County Sheriff’s Department. Assistant U.S. Attorneys Jeff Haag and Callie Woolam are prosecuting the case.
Loves Park Woman Pleads Guilty to Fraudulently Obtaining More Than $1 Million from EmployerRead the Press Release
ROCKFORD — A Loves Park woman has pleaded guilty to a federal charge accusing her of fraudulently obtaining more than $1 million from her employer.
TAMMY E. MOORE, 54, pleaded guilty Friday to wire fraud before U.S. District Judge Iain D. Johnston. Sentencing is set for April 19, 2022, at 1:30 p.m.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The Loves Park Police Department assisted in the investigation. The government is represented by Assistant U.S. Attorney Scott R. Paccagnini.
Moore was an office manager for a company in Loves Park that made custom components for a variety of industries. Moore admitted in a plea agreement that from 2012 to 2020, she fraudulently obtained more than $1 million from the company. Moore issued company checks to herself and her husband’s business from the company’s account, forged the signature of the company’s owner on checks, deposited the checks into her personal bank account and her husband’s business account for her personal benefit, and then initiated online transfers to move the money. Moore concealed these transactions by making it appear as though the checks were for legitimate business purposes and by deleting the company’s records of the forged checks.
Moore is required to pay restitution to the company in the amount of $1,115,629. The wire fraud charge carries a maximum sentence of 20 years in federal prison.
Los Angeles Fashion District Company Owner Sentenced to One Year in Prison for Committing Customs Violations and Tax OffensesRead the Press Release
LOS ANGELES – The owner of a garment wholesaling company in the Fashion District of downtown Los Angeles was sentenced today to 12 months and one day in federal prison for scheming to undervalue imported garments and avoid paying millions of dollars in duties to the United States, failing to report millions of dollars in income on tax returns, and failing to report large cash transactions to the federal government.
Sang Bum “Ed” Noh, 67, of Bel-Air, who owns Ambiance Apparel, was sentenced by United States District Judge Virginia A. Phillips.
Ambiance Apparel – the operating name for two corporations, Ambiance U.S.A. Inc. and Apparel Line U.S.A. Inc. – pleaded guilty in October 2020 to eight criminal counts, including conspiracy, money laundering and customs offenses, was sentenced to a term of five years’ probation and has been ordered to implement an effective anti-money laundering compliance and ethics program with an outside compliance monitor. There is a restitution order in this case for $35,227,855, a forfeiture money judgment of $81,564,856, and the additional forfeiture of $1,104,997 previously seized by law enforcement.
Court documents outline separate schemes involving Ambiance and Noh, which came to an end in September 2014 when law enforcement authorities executed dozens of search warrants as part of an investigation into money laundering and other crimes at Fashion District businesses.
Noh “made defrauding the United States a significant revenue stream for Ambiance, appropriating approximately $35,227,855.45 from U.S. Customs and Border Protection and the Internal Revenue Service in less than four years,” prosecutors argued in a sentencing memorandum. “While [Noh] was cheating the United States and facilitating money laundering [by failing to file Forms 8300], he enjoyed a house in Bel Air, bought luxury cars, and squirreled away bundles of cash worth $35 million in shoeboxes and garbage bags.”
In the customs fraud scheme, Ambiance imported clothing from Asian countries and submitted fraudulent invoices to U.S. Customs and Border Protection (CBP) that undervalued the shipments and allowed Ambiance to avoid paying the full amount of tariffs owed on the imports.
At Noh’s direction, the Asian manufacturers prepared two invoices for the clothing ordered by Ambiance – one that usually reflected 60 to 70 percent of the actual price and was paid by letter of credit, and one that reflected the balance of the actual price and was paid by wire transfer.
The first invoice, which stated only 60 to 70 percent of the shipment’s value, was fraudulently submitted to CBP and was used to calculate the tariffs due on the imports. As a result of this scheme, over the course of just over 4½ years, Ambiance undervalued imports by about $82.6 million and failed to pay more than $17.1 million in tariffs.
Ambiance also failed to file reports with the Secretary of the Treasury that documented cash transactions of more than $10,000. Ambiance employees received approximately 364 payments of more than $10,000 over a two-year period – which totaled more than $11.1 million – and the company failed to file a single Form 8300 to alert federal authorities to the cash transactions.
In conjunction with transactions made at Ambiance’s storefront, Ambiance used two sets of books to record sales, one of which documented only cash transactions and was not reported to Ambiance’s outside accountants. Noh also directed some of the second set of transactions to be underreported to the accountants. The lower sales figures were reported on 2011 and 2012 tax returns filed by Noh. Noh failed to report income for those two years and owed the IRS a total more than $16.8 million, which includes unpaid taxes, penalties and interest.
The $16,806,412 Noh owed to the IRS and the $18,421,443 he owed to CBP have been provided to the court from seized funds.
The case against Ambiance and Noh was investigated by Homeland Security Investigations, IRS Criminal Investigation, U.S. Customs and Border Protection, LA IMPACT, the Long Beach Police Department, the Los Angeles Police Department, the Gardena Police Department, and the West Covina Police Department.
Assistant United States Attorney Scott D. Dubois of the International Narcotics, Money Laundering and Racketeering Section prosecuted this case. Assistant United States Attorney Jonathan S. Galatzan, Chief of the Asset Forfeiture Section, handled the asset forfeiture portion of this case.
Long Island Man Charged with Mailing Threatening Letters to LGBTQ+ Affiliated Individuals and OrganizationsRead the Press Release
A criminal complaint was unsealed today in federal court in Central Islip charging Robert Fehring with mailing letters threatening to assault, shoot, and bomb LGBTQ+ affiliated individuals, organizations, and businesses. Fehring was arrested this morning and will make his initial appearance this afternoon before United States Magistrate Judge Steven I. Locke.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrest.
“As alleged, the defendant's hate-filled invective and threats of violence directed at members of the LGBTQ+ community have no place in our society and will be prosecuted to the fullest extent of the law," stated United States Attorney Peace. “This Office is firmly committed to protecting the civil rights of all members of every community in this district, including the LGBTQ+ community and other minority communities.” Mr. Peace thanked the Suffolk County Police Department for their invaluable assistance with the investigation.
“Fehring’s alleged threats to members of the LGBTQ+ community were not only appalling, but dangerous, despite the fact he hadn’t yet acted on his purported intentions,” stated FBI Assistant Director-in-Charge Driscoll. “As the primary federal agency responsible for investigating civil rights violations, the FBI takes all threats of this nature seriously. If you or someone you know has received a similar threat, report it to us by calling 1-800-CALLFBI. In an emergency, always call your local police department.”
As set forth in the complaint, since at least 2013, Fehring has been sending individuals associated with the LGBTQ+ community letters in which he threatened violence, including threatening the use of firearms and explosives. One letter threatened that there would “be radio-cont[r]olled devices placed at numerous strategic places” at the 2021 New York City Pride March with “firepower” that would “make the 2016 Orlando Pulse Nightclub shooting look like a cakewalk,” referencing the 2016 attack in which 49 persons were killed and dozens wounded at Pulse, a gay nightclub in Orlando, Florida.
Fehring is also alleged to have a sent a letter threatening the organizer of a June 2021 Pride event in East Meadow, New York, which stated:
“[W]e were right there you…FREAK!!! They couldn’t get a shot off at you, slithering around the back stage area like a snake. Too many cops. Very disappointed. But your time has come. . .. They are out to KILL you….and your boyfriend. You are being watched. No matter how long it takes, you will be taken out…. high-powered bullet…. bomb….knife…. whatever it takes.”
On November 18, 2021, members of the FBI’s Civil Rights Squad and the New York Joint Terrorism Task Force executed a search warrant at Fehring’s home in Bayport, New York, and recovered photographs from a June 2021 Pride event in East Meadow, New York, two loaded shotguns, hundreds of rounds of ammunition, two stun guns, and a stamped envelope addressed to an LGBTQ+ affiliated attorney containing the remains of a dead bird.
The charge in the complaint is an allegation and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s National Security and Cybercrime Section, Long Island Criminal Division and Civil Rights Section. Assistant United States Attorneys Francisco J. Navarro, Rachel A. Bennek, and Andrew P. Wenzel are in charge of the prosecution.
The Defendant:
ROBERT FEHRING
Age: 74
Bayport, New YorkE.D.N.Y. Docket No. 21-MJ-1363
Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Jan Sharp announced that Michael Louis Muhle, 52, of Omaha, Nebraska, was sentenced on December 3, 2021 by United States District John M. Gerrard to 12 years and seven months in federal prison for possession with intent to distribute 50 grams or more of methamphetamine mixture on October 28, 2020, after having been convicted for a serious drug felony. Muhle will serve this sentence after he completes a state sentence of 8-10 years for burglary from Adams County. Following his prison term, Muhle will serve eight years on supervised release. There is no parole in the federal system.
On October 28, 2020, Muhle was stopped for driving on a suspended license. Officers searched his person and his vehicle, finding a total of more than 335 grams of methamphetamine mixture along with two digital scales and multiple self-seal plastic baggies. Muhle had a prior conviction from Lancaster County District Court in 2008 for delivery/possession with intent to deliver an exceptionally hazardous drug for which he received a sentence of four to six years in prison.
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force.
Leader of International Firearm Trafficking Conspiracy Sentenced to Federal PrisonRead the Press Release
PORTLAND, Ore.—A Mexican national residing in Portland was sentenced to federal prison today for his leadership role in a conspiracy to illegally obtain hundreds of high-powered, semi-automatic rifles and high-grade firearms in and around Portland and smuggle them into Mexico for use by the Jalisco New Generation Cartel (CJNG).
David Acosta-Rosales, 51, was sentenced to 75 months in federal prison and three years’ supervised release.
“This case represents two important public safety issues. First, no state, regardless of its location and proximity to the U.S.-Mexico border, is beyond the reach of violent drug cartels. International drug trafficking may feel to most Americans like a distant, geopolitical issue with little connection to our own communities, but this could not be further from the truth. Second, every day across the U.S., drug traffickers and other criminals manipulate the legal process for obtaining firearms from licensed dealers in the U.S., of which there are hundreds of thousands. Our office will continue working closely with our law enforcement partners to prosecute anyone who attempts to illegally purchase or traffic firearms,” said Scott Erik Asphaug, Acting U.S. Attorney for the District of Oregon.
“ATF will tirelessly investigate anyone who traffics in firearms,” said ATF Seattle Special Agent in Charge Jonathan T. McPherson. “Whether they are organizing an international trafficking cell, as Acosta-Rosales was doing, or they are straw purchasing firearms for trafficking purposes, we will work to ensure that they are caught and, through the U.S. Attorney’s Office, prosecuted to the fullest extent of the law.”
According to court documents, since at least September 2019, Acosta-Rosales served as the leader of a hierarchical gun trafficking cell operating in the Portland area. In this role, Acosta-Rosales managed several co-conspirators who served as high-volume straw purchasers and recruiters of new straw purchasers. These associates would also oversee and liaise with lower-volume straw purchasers, who would, in turn, pass the guns they acquired back up to Acosta-Rosales’ direct reports.
Acosta-Rosales received orders and requests for semi-automatic rifles, high-grade firearms, and explosive devices from his “boss” in Mexico and other co-conspirators affiliated with CJNG. These co-conspirators were particularly interested and focused on obtaining high-powered, especially deadly firearms such as AR-15 and AK-47 platform rifles, semi-automatic .50 caliber rifles, and premium, military-style combat assault rifles.
Acosta-Rosales received hundreds of thousands of dollars to operate his scheme and recruited numerous straw purchasers to make the illegal gun purchases. One of Acosta-Rosales’ first recruits was his own young son who later withdrew himself from his father’s criminal enterprise. Before the illegally obtained firearms were transferred out of Oregon via courier, Acosta-Rosales himself participated in obliterating serial numbers on the guns and also recruited a co-conspirator to help obliterate serial numbers. Acosta-Rosales continued operating the conspiracy even after ATF agents arrested one of his co-conspirators and seized many of the group’s guns. In total, Acosta-Rosales facilitated the illegal purchase and transfer of approximately 150 guns to Mexico. He also acquired a grenade launcher and a .50 caliber tripod-mounted semi-automatic firearm that he intended to transfer to Mexico, but was arrested by federal agents before he could do so.
On October 6, 2020, a federal grand jury in Portland returned a 52-count indictment charging Acosta-Rosales and 10 associates with conspiracy, making false statements in connection with the acquisition of firearms, possessing and receiving firearms with obliterated serial numbers, and smuggling goods from the U.S.
Seven of Acosta-Rosales’ co-conspirators have pleaded guilty. Five have been sentenced and two are pending sentencing. The remaining three co-conspirators are pending trial.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by ATF and is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Las Vegas Man Sentenced for Distributing Child Pornography Using Instant Messaging AppRead the Press Release
LAS VEGAS – A Las Vegas man was sentenced today to 11 years in prison for distributing more than 600 child pornography images and videos using Kik Messenger, an instant messaging application.
According to court documents, between about September 27, 2019 to November 1, 2019, Cyrus Orlando Ortega (28) distributed child pornography images and videos to other Kik Messenger users, in exchange for child pornography from those users. The images and videos depicted underage victims — some as young as infants — being sexually exploited.
Ortega pleaded guilty in June 2021 to one count of distribution of child pornography. In addition to the prison term, U.S. District Judge Jennifer A. Dorsey sentenced Ortega to a lifetime term of supervised release.
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 FBI and Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Supriya Prasad prosecuted the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the 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 and for information about internet safety education, please visit www.justice.gov/psc.
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Las Cruces man pleads guilty to cyberstalking and sending threatening messagesRead the Press Release
ALBUQUERQUE, N.M. – John Benjamin Thornton, 40, of Las Cruces, New Mexico, pleaded guilty on Dec. 3 to a nine-count superseding indictment charging him with cyberstalking and making threats in interstate commerce. He will remain in custody pending sentencing, which has not been scheduled.
A federal grand jury returned the second superseding indictment on Nov. 10. According to the indictment and other court records, Thornton had been the subject of complaints since November 2020 by several people who had received disturbing or threatening messages from him. On May 18, the FBI received information about threats Thornton sent to four people, including his former wife. The messages were sent from Las Cruces within the District of New Mexico.
Thornton faces up to five years in prison for each count.
The FBI investigated this case. Assistant United States Attorneys Marisa A. Ong and Joni Stahl are prosecuting the case
Kings County Man Sentenced to 10 years in Prison for Methamphetamine SalesRead the Press Release
FRESNO, Calif. — Doug Gines, 50, of Hanford, was sentenced today by U.S. District Judge Dale A. Drozd to 10 years in prison for distributing methamphetamine, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, in June 2019, Gines was arrested as part of a multi-agency gang sweep in the Central Valley that focused on the Nuestra Familia prison gang and Norteno street gang members in Kings County. Wiretaps on several drug dealers in Kings County showed Gines to be a drug dealer. Gines was ultimately charged with distributing methamphetamine on two occasions, including the charge he was sentenced on today, distributing 216 grams of actual methamphetamine on May 26, 2019.
This case is the result of an investigation by the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Kings County Gang Task Force; the Special Operations Unit of the California Highway Patrol; the California Department of Corrections and Rehabilitation; and the Kings County District Attorney’s Office. Assistant U.S. Attorneys Justin J. Gilio, Katherine E. Schuh, and Kimberly A. Sanchez are prosecuting 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 www.justice.gov/OCDETF.
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.
Justice Department Resolves Housing Discrimination Lawsuit Against the Town of Wolcott, ConnecticutRead the Press Release
The Justice Department announced today it has reached an agreement with the Town of Wolcott, Connecticut, to settle a lawsuit alleging that the Town violated the Fair Housing Act when it refused to allow the operation of a group home for adults with disabilities in a residential neighborhood.
The settlement, which still must be approved by the U.S. District Court for the District of Connecticut, resolves a lawsuit that the department filed in December 2020. Today’s settlement also resolves a related suit brought by the housing provider and property owner of the proposed group home, SELF Inc. and L&R Realty Inc. The department’s lawsuit arose from a complaint that SELF and L&R Realty filed with the Department of Housing and Urban Development (HUD), which referred the matter to the Justice Department.
“Local governments do not have the right to use zoning laws and restrictions as a vehicle to discriminate against people with disabilities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Individuals with disabilities have the right to equal housing opportunities, and the Department of Justice is committed to vigorous enforcement of federal law to stop municipalities from violating this right.”
“Wolcott’s town officials attempted to prohibit the operation of a home that would establish a place where persons with disabilities can live productive lives,” said Acting U.S. Attorney Leonard C Boyle of the District of Connecticut. “This type of discrimination is unacceptable. The settlement agreement and future action required by the Town should serve as fair warning to other municipalities that our office is committed to pursuing violations of the Fair Housing Act in Connecticut.”
“Towns don’t have the right to enact zoning laws that make housing for persons with disabilities unavailable,” said Principal Deputy Assistant Secretary Demetria McCain of HUD’s Office of Fair Housing and Equal Opportunity. “HUD commends the Justice Department for holding municipalities accountable for violating our nation’s housing laws and we look forward to working together to do even more to protect the rights of persons with disabilities.”
The department’s lawsuit alleged that the Town of Wolcott violated the Fair Housing Act when it denied a special use permit to L&R Realty and SELF, which sought to open a residence for 13 adults with mental health disabilities. At the time, the Town’s zoning regulations permitted the operation of community residences of up to 15 adults with disabilities so long as certain conditions were satisfied, and the United States alleged that the Town’s permit denial was because of the disabilities of the proposed residents. The complaint also alleged that, after learning about the proposed group home, the Town amended its zoning regulations to prohibit any community residence for adults with disabilities from operating in the Town.
Under the settlement, the Town will allow SELF’s group home to operate with up to 13 residents and will amend its zoning regulations to comply with federal anti-discrimination laws, including permitting group homes for persons with disabilities in residential districts, with the same size limitations applied to families of similar size, and implementing a reasonable accommodation policy. The Town will also pay $350,000 in monetary damages to SELF and L&R Realty, as well as $10,000 to the United States. The Town also agreed to take a number of other actions to guard against housing discrimination, including training Town officials and employees about their obligations under federal law, designating a fair housing compliance officer, and reporting periodically to the Justice Department.
The federal Fair Housing Act prohibits discrimination in housing based on disability, race, color, religion, national origin, sex and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-833-591-0291, or submit a report online at civilrights.justice.gov. Individuals may also contact HUD at 1-800-669-9777 or through its website at https://www.hud.gov/program_offices/fair_housing_equal_opp. Individuals may also report housing discrimination, and other forms of discrimination against persons with disabilities, to the U.S. Attorney’s Office at 203-821-3700.
Justice Department Resolves Housing Discrimination Lawsuit Against the Town of WolcottRead the Press Release
WASHINGTON - The Justice Department announced today it has reached an agreement with the Town of Wolcott, Connecticut, to settle a lawsuit alleging that the Town violated the Fair Housing Act when it refused to allow the operation of a group home for adults with disabilities in a residential neighborhood.
The settlement, which still must be approved by the U.S. District Court for the District of Connecticut, resolves a lawsuit that the department filed in December 2020. Today’s settlement also resolves a related suit brought by the housing provider and property owner of the proposed group home, SELF Inc. and L&R Realty Inc. The department’s lawsuit arose from a complaint that SELF and L&R Realty filed with the Department of Housing and Urban Development (HUD), which referred the matter to the Justice Department.
“Local governments do not have the right to use zoning laws and restrictions as a vehicle to discriminate against people with disabilities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Individuals with disabilities have the right to equal housing opportunities, and the Department of Justice is committed to vigorous enforcement of federal law to stop municipalities from violating this right.”
“Wolcott’s town officials attempted to prohibit the operation of a home that would establish a place where persons with disabilities can live productive lives,” said Acting U.S. Attorney Leonard C Boyle of the District of Connecticut. “This type of discrimination is unacceptable. The settlement agreement and future action required by the Town should serve as fair warning to other municipalities that our office is committed to pursuing violations of the Fair Housing Act in Connecticut.”
“Towns don’t have the right to enact zoning laws that make housing for persons with disabilities unavailable,” said Principal Deputy Assistant Secretary Demetria McCain of HUD Office of Fair Housing and Equal Opportunity. “HUD commends the Justice Department for holding municipalities accountable for violating our nation’s housing laws and we look forward to working together to do even more to protect the rights of persons with disabilities.”
The department’s lawsuit alleged that the Town of Wolcott violated the Fair Housing Act when it denied a special use permit to L&R Realty and SELF, which sought to open a residence for 13 adults with mental health disabilities. At the time, the Town’s zoning regulations permitted the operation of community residences of up to 15 adults with disabilities so long as certain conditions were satisfied, and the United States alleged that the Town’s permit denial was because of the disabilities of the proposed residents. The complaint also alleged that, after learning about the proposed group home, the Town amended its zoning regulations to prohibit any community residence for adults with disabilities from operating in the Town.
Under the settlement, the Town will allow SELF’s group home to operate with up to 13 residents and will amend its zoning regulations to comply with federal anti-discrimination laws, including permitting group homes for persons with disabilities in residential districts, with the same size limitations applied to families of similar size, and implementing a reasonable accommodation policy. The Town will also pay $350,000 in monetary damages to SELF and L&R Realty, as well as $10,000 to the United States. The Town also agreed to take a number of other actions to guard against housing discrimination, including training Town officials and employees about their obligations under federal law, designating a fair housing compliance officer, and reporting periodically to the Justice Department.
The federal Fair Housing Act prohibits discrimination in housing based on disability, race, color, religion, national origin, sex and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-833-591-0291, or submit a report online at civilrights.justice.gov. Individuals may also contact HUD at 1-800-669-9777 or through its website at https://www.hud.gov/program_offices/fair_housing_equal_opp. Individuals may also report housing discrimination, and other forms of discrimination against persons with disabilities, to the U.S. Attorney’s Office at 203-821-3700.
Justice Department Files Lawsuit Against the State of Texas to Challenge Statewide Redistricting PlansRead the Press Release
The U.S. Department of Justice announced today that it has filed a lawsuit under Section 2 of the Voting Rights Act against the State of Texas and the Texas Secretary of State, challenging the State’s redistricting plans for the Texas congressional delegation and the Texas House of Representatives.
“Section 2 of the Voting Rights Act requires that state voting laws – including laws that draw electoral maps – provide eligible voters with an equal opportunity to participate in the democratic process and elect representatives of their choosing,” said Attorney General Merrick B. Garland. “The complaint we filed today alleges that Texas has violated Section 2 by creating redistricting plans that deny or abridge the rights of Latino and Black voters to vote on account of their race, color or membership in a language minority group.”
The United States’ complaint contends that Texas’ redistricting plan for its congressional delegation violates Section 2 of the Voting Rights Act because it has the discriminatory purpose of denying or abridging the right to vote on account of race, color or membership in a language minority group in that it deliberately minimizes the voting strength of minority communities. The lawsuit also claims that Texas violated Section 2 because its congressional redistricting plan has the discriminatory result of leading to an inequality in the opportunities for minority voters to participate in the political process and to elect representatives of their choice.
The United States’ complaint further contends that Texas’ State House redistricting plan violates Section 2 because it results in minority voters having less opportunity than other citizens to participate in the political process and elect legislators of their choice.
The United States’ complaint asks the court to prohibit Texas from conducting elections under the challenged plans and asks the court to order Texas to devise and implement new plans that comply with Section 2 of the Voting Rights Act. The complaint also asks the court to establish interim plans pending a lawful state redistricting.
On Sept. 1, the department issued guidance under Section 2 of the Voting Rights Act, for redistricting and methods of electing government bodies.
More information about the Voting Rights Act and other federal voting laws is available on the Department of Justice’s website at https://www.justice.gov/crt/voting-section.
Complaints about discriminatory voting practices may be reported to the Civil Rights Division through the internet reporting portal at https://civilrights.justice.gov or by telephone at 1-800-253-3931.
Jury Convicts Men of Hijacking 18-Wheeler Commercial Truck at GunpointRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted two New York City men last week on charges of carjacking, armed robbery and possession of a firearm in relation to a crime of violence.
According to court records and evidence presented at trial, on April 1, at 3:05 a.m., Stephen Pierre Paul, 30, Wayne Ricardo Taylor, 26, and co-conspirators traveled to a truck stop in Mount Jackson in a van with blacked out windows. Once at the truck stop, Pierre-Paul, Taylor, and the co-conspirators hijacked an 18-wheel commercial tractor-trailer with Alabama tags. The group abducted the truck driver at gunpoint and forced him into their van. Both vehicles, the van and hijacked commercial truck, were stopped at a roadblock on eastbound Interstate 66 at 5:15 a.m. in Fairfax County. The victim truck driver was rescued, and the defendants were arrested.
Co-defendants Cornelius Crossman, 37, and Odane Butler, 27, both of Brooklyn, New York, will be sentenced for their roles in the conspiracy on December 10 and January 21, 2022, respectively.
Pierre-Paul and Taylor each face a mandatory minimum sentence of 7 years and maximum of life in prison when sentenced on March 11, 2022. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Kevin Davis, Fairfax County Chief of Police; Charlie J. Patterson, Special Agent in Charge of the ATF’s Washington Field Division; Colonel Gary T. Settle, Superintendent of Virginia State Police; and Stacey A. Kincaid, Fairfax County Sheriff, made the announcement after Senior U.S. District Judge T. S. Ellis, III accepted the verdict.
Assistant U.S. Attorney Ronald L. Walutes, Jr. is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-cr-144.
Jefferson County man sentenced for firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Warren Long, of Harper’s Ferry, West Virginia, was sentenced today to 37 months of incarceration for a firearms charge, United States Attorney William J. Ihlenfeld, II announced.
Long, 33, pleaded guilty in June 2021 to one count of “Unlawful Possession of a Firearm.” Long, a person prohibited from having a firearm because of a prior conviction, admitted to having a .410 gauge shotgun in May 2020 in Jefferson County.
Assistant U.S. Attorney Timothy D. Helman prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, & Explosives and the Jefferson County Sheriff’s Office investigated.
Chief U.S. District Judge Gian M. Groh presided.
Jacksonville Man Indicted for Possessing Child Sexual Abuse Images and VideosRead the Press Release
Jacksonville, Florida – Acting U.S. Attorney Karin Hoppmann announces the return of an indictment charging Michael Ray King (41, Jacksonville) with possessing images and videos depicting the sexual abuse of children. If convicted, King faces up to 20 years in federal prison and a potential lifetime term of supervised release. King was arrested by FBI agents on November 18, 2021.
According to court documents and information provided in open court, FBI agents executed a search warrant at King’s residence on November 18, 2021. During the execution of the search warrant, FBI personnel seized a computer hard disk drive that was connected to a gaming computer. A forensic review of this disk drive revealed that it contained at least 250 images and 50 videos depicting children being sexually abused.
An indictment is only an allegation and every defendant is presumed innocent until proven guilty.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Heroin Dealer Sentenced to 40 Years for Causing DeathRead the Press Release
A man who distributed heroin to a young Cedar Falls, Iowa, woman in 2018 that resulted in her death was sentenced on December 3, 2021, to 40 years in federal prison.
Eric DeAngelo Griggs, age 40, from Chicago, Illinois, received the prison term after an April 29, 2021 jury verdict finding him guilty of distribution of heroin resulting in the death of a young woman and two counts of using a communications facility to facilitate a drug crime.
Evidence at trial showed Griggs was living in the Waterloo, Iowa, area in 2018, and was distributing heroin. On August 31, 2018, Griggs used Facebook Messenger to coordinate a heroin distribution to the victim, who was then a user of heroin. Later that evening, the victim obtained the heroin from Griggs, and died of acute heroin intoxication after using it. After the victim was found the next day, police officers used her cellular telephone to call Griggs to come pick up the victim so he could give her more heroin, resulting in his arrest.
Griggs was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Griggs was sentenced to 480 months’ imprisonment and was ordered to make $16,552.90 in restitution to the victim’s mother for funeral and trial-related expenses. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system. Griggs is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorneys Patrick Reinert and Dillan Edwards and was investigated as part of the Northern Iowa Heroin Initiative and the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Cedar Falls Police Department, Waterloo Police Department, Black Hawk County Sheriff’s Office, Tri-County Drug Task Force and the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-2062.
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Heidelberg Man Sentenced for Role in GBK Drug Trafficking OrganizationRead the Press Release
PITTSBURGH - A suburban Pittsburgh man has been sentenced in federal court to 24 months’ imprisonment on his conviction of conspiracy to possess with intent to distribute and distribute crack cocaine, United States Attorney Cindy K. Chung announced today.
Senior United States District Judge Arthur J. Schwab imposed the sentence on Antoine Dean, Sr., age 56, of Heidelberg, PA.
According to information presented to the court, in 2017, the Federal Bureau of Investigation and the Drug Enforcement Administration initiated a wiretap investigation, primarily targeting the GBK street gang and drug trafficking in and around an area known as the Greenway Projects, located in the West End of the City of Pittsburgh. The wiretap investigation revealed that from in and around November 2017 through in and around June 2018, Antoine Dean, Sr. conspired to distribute over 28 grams of crack cocaine.
Prior to imposing sentence, Senior Judge Schwab stated that the sentence was sufficient but not greater than necessary to achieve the goals of sentencing.
Assistant United States Attorneys Tonya Sulia Goodman and Yvonne M. Saadi prosecuted this case on behalf of the government.
United States Attorney Chung commended the Federal Bureau of Investigation and the Drug Enforcement Administration jointly with the Pittsburgh Bureau of Police, Allegheny County Sheriff’s Office, Pennsylvania State Police, Robinson Township Police Department, Stowe Township Police Department, Pennsylvania Attorney General’s Office, Wilkinsburg Borough Police Department, and the McKees Rocks Police Department, for the investigation leading to the successful prosecution of Dean, Sr.
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.
Hampshire County woman sentenced for role in drug trafficking operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Jessica Lee Lynch, of Augusta, West Virginia, was sentenced today to 12 months of incarceration for her role in a drug trafficking conspiracy, United States Attorney William J. Ihlenfeld, II announced.
Lynch, age 38, pleaded guilty in July 2021 to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin, Fentanyl, and Cocaine Base.” Lynch admitted to working with another individual to distribute the controlled substances from January 2020 through October 2020.
Assistant U.S. Attorney Lara K. Omps-Botteicher prosecuted the case on behalf of the government. The U.S. Attorney’s Office worked closely with the Hampshire County Prosecutor’s Office to bring this case forward. In addition, the Potomac Highlands Drug & Violent Crime task Force, a HIDTA funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.
Hampshire County man sentenced for child pornography chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Jonathan Burgess, of Augusta, West Virginia, was sentenced today to 70 months of incarceration for a child pornography charge, United States Attorney William J. Ihlenfeld, II announced.
Burgess, age 58, pleaded guilty in December 2020 to one count of “Possession of Child Pornography.” Burgess admitted to having child pornography images of a minor who hadn’t reached the age of 12 in Hampshire County in September 2019.
During a search of Burgess’s phone, investigators found more than 6,700 images. A search of his yahoo email account found more than 600 images of child pornography.
After serving his sentence, Burgess will be on supervised release for 25 years.
Assistant U.S. Attorney Kimberley D. Crockett prosecuted the case on behalf of the government. The West Virginia State Police investigated.
Chief U.S. District Judge Gina M. Groh presided.
Four Defendants Sentenced in Connection with Trafficking 13-year-old Minor VictimRead the Press Release
Miami, Florida – Four defendants were sentenced in connection with their roles in trafficking a 13-year-old minor victim through the use of online advertisements. The sentences ranged from 16 to 10 years of imprisonment, 15 to 10 years of supervised release, plus restitution and a life-time of registration as a sexual offender.
From approximately May 29, 2019, to June 4, 2019, Jeremiah Horenstein, 24, Racquel Lavette Bijou, 22, and Ashton Gary Lewinson, 26, took the minor victim to engage in at least 100 commercial sex acts at hotels and private residences throughout Miami-Dade, Broward, and Palm Beach counties. On June 5, 2019, Bijou recruited the minor victim to work for Souprina Blanc, 29, who further posted online advertisements for minor victim to engage in commercial sex acts.
Each defendant previously pled guilty to sex trafficking of a minor. U.S. District Judge Raag Singhal, who sits in Ft. Lauderdale, imposed the sentences.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida; George L. Piro, Special Agent in Charge, FBI Miami; and Alfredo Ramirez III, Director of the Miami-Dade Police Department (MDPD), announced the sentences.
FBI Miami, in particular FBI’s Child Exploitation and Human Trafficking Task Force, in partnership with MDPD’s Human Trafficking Squad, and the South Florida Human Trafficking Task Force, investigated the case. FBI Omaha, Nebraska, assisted. Assistant United States Attorney Daniel Cervantes prosecuted the case. Assistant U.S. Attorney Daren Grove is handling asset forfeiture matters.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorney’s Offices and the Criminal Divisions 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.
To report suspected human trafficking or to obtain resources for victims, please call 1-888-373-7888; text “BeFree” (233733), or live chat at HumanTraffickingHotline.org. The toll-free phone, SMS text lines, and online chat function are available 24 hours a day, 7 days a week, 365 days a year. Help is available in English, Spanish, Creole, or in more than 200 additional languages. The National Hotline is not managed by law enforcement, immigration or an investigative agency. Correspondence with the National Hotline is confidential and you may request assistance or report a tip anonymously.
To learn more about the National Resource Hotline visit www.humantraffickinghotline.org. To learn more about the U.S. Department of Justice’s efforts to combat human trafficking visit www.justice.gov/humantrafficking.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 19-cr-20535.
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Founder of Investment Advisory Firm Charged with Wire Fraud, Investment Adviser Fraud and Money LaunderingRead the Press Release
An indictment was unsealed today in federal court in Central Islip charging Jeffrey Slothower, a former registered investment adviser and founder of the New York investment advisory firm Battery Private, Inc. (“Battery Private”), with wire fraud, investment adviser fraud, and money laundering in connection with a scheme to misappropriate more than $1 million from current and prospective clients. Slothower was arrested earlier today in Southampton, New York, and will make his initial appearance via videoconference this afternoon before United States Magistrate Judge Steven L. Tiscione.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrest and charges.
“As alleged, Slothower executed a calculated scheme in which he repeatedly lied to his current and prospective clients about putting their money into legitimate investments, when in reality he stole their money to fund his lavish lifestyle,” stated United States Attorney Peace. “This Office will vigorously investigate and prosecute corrupt financial advisers like the defendant who abuse their clients’ trust and violate the law to enrich themselves.” Mr. Peace thanked the Securities and Exchange Commission, New York Regional Office, for their assistance during the investigation.
“Slothower joins the long-running list of those who exploit their position as investment advisors to siphon funds from their investors directly into their own pockets. This type of behavior is not only damaging to investors, but to the overall economy as well. The FBI continues with our dedicated efforts to investigate those who commit this type of fraud wherever and whenever we can,” stated FBI Assistant Director-in-Charge Driscoll.
As set forth in the indictment, Slothower was the founder and operator of Battery Private, a New York investment advisory firm. While operating Battery Private, Slothower solicited business from Victim-1 and Victim-2, a couple from California whose money Slothower had managed at another financial services firm. Slothower promised the victims he could beat any rate of return they were receiving and do so without market risk. Victim-2 thereafter signed an investment advisory contract with Battery Private. Slothower continued soliciting Victim-1’s business, and, in 2017, he offered to invest Victim-1’s money into what Slothower described as bonds backed by homeowner’s association fees (the “HOA Bonds”), which would pay Victim-1 an eight percent return. Based on these representations, Victim-1 agreed to invest money with Slothower through Battery Private.
Slothower sent Victim-1 wiring instructions for his investment and attached a document that made additional representations about Victim-1’s purported investment, claiming that Victim-1’s money would be held in the “capital reserves” of Battery Private. Thereafter, between January 25, 2017 and January 27, 2017, Victim-1 sent more than $500,000 to Slothower at Battery Private to be invested in the purported HOA Bonds. However, that money was not invested in HOA Bonds or held in “capital reserves” as represented by Slothower; instead, Slothower used that money to, among other things, wire money to himself, purchase a luxury automobile and pay fees for a private golf club on Long Island. To further the fraudulent scheme, Slothower thereafter made payments to Victim-1 that were falsely represented as quarterly distributions from Victim-1’s investment.
Later, Slothower sought out additional funds and asked Victim-1 to find money to invest including money from Victim-2 who was then a Battery Private client. Victim-2 learned about the HOA Bond investment from Victim-1, including the fact that Victim-1 had been receiving purported quarterly returns from the investment. Thereafter, Victim-2 agreed to invest in the same purported HOA Bonds, and in or about December 2017, Victim-2 sent more than $500,000 to Slothower at Battery Private that was for investment in the HOA Bonds. However, like Victim-1, Victim-2’s money was not invested in HOA Bonds or held in “capital reserves” as represented by Slothower. Instead, Slothower used that money to, among other things, pay personal credit card bills. To further the fraudulent scheme, Slothower made payments to Victim-2 that were falsely represented as quarterly distributions from Victim-2’s investment
In June 2018, Victim-1 made an additional investment of approximately $84,000 into the purported HOA Bonds. Again, Slothower did not invest that money in HOA Bonds or hold it as “capital reserves,” as he previously represented. Instead, Slothower used Victim-1’s money to, among other things, make purported quarterly payments to Victim-1 and Victim-2 that were falsely represented as their investment returns and to pay the private golf club on Long Island.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Slothower faces up to 20 years in prison.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Drew G. Rolle and Michael Bushwack are in charge of the prosecution.
The Defendant:
JEFFREY SLOTHOWER
Age: 43
Southampton, New YorkE.D.N.Y. Docket No. 21-CR-602 (GRB)
Former St. Louis police officer enters plea of guilty in fraud caseRead the Press Release
ST. LOUIS – United States District Court Judge Sarah E. Pitlyk accepted a plea of guilty from former St. Louis Metropolitan Police Officer Brad Stephens for 3 counts of Mail Fraud by obtaining taxpayer moneys from the Tower Grove South Concerned Citizen Special Business District (“Tower Grove South”) by means of material false representations. Sentencing is scheduled for March 11, 2022.
According to the plea agreement, Stephens was employed as a police officer by the St. Louis Metropolitan Police Department (“SLMPD”) in St. Louis, Missouri, and had been employed by the SLMPD since October 6, 2014.
Tower Grove South was established to provide special police and/or security for the protection and enjoyment of the property owners and the public within the district. The administration and operations of the business district are taxpayer funded. City Wide Security (“CWS”) is a private company that contracts with businesses and organizations to provide private security patrols. CWS contracted to provide security patrols in the Tower Grove South Neighborhood beginning during 2010.
Stephens was employed by CWS beginning in approximately 2015 to work during some of his off-duty hours to patrol the Tower Grove South Neighborhood. Stephens falsely represented to CWS certain days and shifts he agreed to work as part of the CWS security patrol in the Tower Grove South Neighborhood when, in fact, Stephens did not actually work those assigned days and shifts. During 2018, Stephens falsely represented that he worked 93 days, and during 2019, Stephens falsely represented that he worked 76 days. CWS was paid approximately $50,000 by the Tower Grove South organization based upon Stephens’ false representations, all taxpayer funds.
The case was investigated by the Federal Bureau of Investigation and the St. Louis Metropolitan Police Department.
Former Owner and CEO of Pharmaceutical Company Charged with EmbezzlementRead the Press Release
NEWARK, N.J. – The former chief executive officer and owner of a pharmaceutical company was arrested this morning for embezzling millions of dollars from the company, Acting U.S. Attorney Rachael A. Honig announced.
John Klein, 75, of Palisades Park, New Jersey, is charged by complaint with one count of wire fraud. Klein is scheduled to appear by videoconference today before U.S. Magistrate Judge Michael A. Hammer.
According to the documents filed in this case and statements made in court:
Klein was the majority shareholder and CEO of a pharmaceutical company. In July 2016, Klein hired as chief financial officer an individual who created a profit and loss statement showing the pharmaceutical company’s sales and corresponding receivables. According to that individual, Klein provided information that included an account receivable of approximately $3.9 million from a customer that had not been collected. In December 2016 and January 2017, the pharmaceutical company, with Klein’s knowledge and approval, put a reserve against the uncollected receivable in the financial statements.
Klein controlled and used a pre-existing pharmaceutical company bank account. A review of that account revealed that the approximately $3.9 million was transferred into the bank account in May 2016. In a June 2016 email, Klein acknowledged that the invoices related to the approximately $3.9 million had been paid in full. A review of the company bank account also showed that following the wire transfers of approximately $3.9 million, Klein made numerous personal expenditures out of the account, including credit card payments for his himself and his wife, payment of property taxes, and tuition payments for his child’s private school.
The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of $250,000 or twice the gross profits or twice the gross loss suffered by the victims of his offense, whichever is greatest.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorneys Anthony Torntore and Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
The charges and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.
Former Head of LADWP Agrees to Plead Guilty to Bribery ChargeRead the Press Release
INFORMATION
PLEA AGREEMENTLOS ANGELES – The former general manager of the Los Angeles Department of Water and Power (LADWP) has agreed to plead guilty to a federal criminal charge for accepting bribes from a lawyer in exchange for his official action to secure a three-year, $30 million no-bid LADWP contract for the lawyer’s company, the Justice Department announced today.
David H. Wright, 62, of Riverside, agreed to plead guilty to a one-count information charging him with bribery, a crime that carries a statutory maximum sentence of 10 years in federal prison. In the plea agreement, Wright also admitted he participated in several other corrupt schemes while the head of LADWP.
The information and Wright’s plea agreement were filed today in United States District Court. Wright is expected to make his initial appearance in this case on December 10.
According to his plea agreement, Wright served as LADWP’s general manager from September 2016 until July 2019, when he resigned at the direction of the mayor of Los Angeles. In this role, Wright was the chief executive of the largest municipal utility in the United States.
During 2016 and 2017, Wright developed a relationship with Paul O. Paradis, 58, of Scottsdale, Arizona, a lawyer appointed by the Los Angeles City Attorney’s Office to represent LADWP in a lawsuit in which the department blamed the vendor of its billing system for the misbilling of hundreds of thousands of ratepayers. Paradis and his New York-based law firm also held a $6 million LADWP contract to provide project management services in connection with the department’s remediation of the faulty billing system.
Paradis has agreed to plead guilty to a bribery charge for accepting an illicit kickback of nearly $2.2 million for getting another attorney to purportedly represent his ratepayer client in a collusive lawsuit against LADWP related to the billing debacle. Paradis is cooperating with the ongoing investigation into the collusive litigation and corruption at LADWP. Paradis is expected to make his initial court appearance on December 16.
By early 2017, Wright and Paradis agreed that — in exchange for Wright’s support of a “no-bid” $30 million contract for Paradis’s downtown Los Angeles-based company Aventador Utility Services LLC — Paradis would give Wright a million-dollar-per-year job as Aventador’s CEO and a luxury company car once Wright retired from LADWP.
In exchange, Wright lobbied members of the LADWP board of directors to persuade them to vote in favor of the contract for Aventador, whose company name was taken from a model of Lamborghini sports car. He also drafted a letter to the LADWP board touting the purpose of the contract and the company’s capabilities and explaining why the contract had to be granted on a no-bid basis, rather than allowing competitive bids from other companies. Wright enlisted the help of LADWP employees, including other senior executives, to support the Aventador contract, and he prepared an oral and written presentation to the LADWP board urging the contract’s approval.
In his public presentation to the LADWP board, Wright cited to a report from a court-appointed independent monitor overseeing the ratepayer settlement and warned that LADWP could not meet its court-ordered obligations unless it contracted with Aventador. Wright did not inform the LADWP board that the independent monitor’s report had been secretly ghostwritten by Paradis, a fact that Wright knew because he had planned it with Paradis.
At the time it approved the $30 million no-bid contract in June 2017, the LADWP board was also not informed of Wright’s agreement with Paradis to take a lucrative job as Aventador’s CEO upon retiring from LADWP.
After the awarding of the contract, through early 2019, Wright continued to collaborate with Paradis to build and market Aventador and to seek additional lucrative business opportunities for it — and thus for Wright and Paradis — both inside and outside LADWP. For example, Wright directed Paradis to draft an LADWP settlement agreement in a way that would create future business opportunities for the company. Wright also told Paradis that they should do “the minimal possible” with respect to the LADWP billing system upgrade so that the project would not need to occupy Wright’s attention during his remaining tenure. Beyond LADWP, Wright used his position as LADWP’s general manager to advertise Aventador's services at industry events and in meetings and discussions with other industry officials and executives.
In May 2018, Wright and Paradis met with executives from a global company providing cybersecurity training services, identified in court documents as “Cyber Company.” Wright and Paradis invested in a Cyber Company franchise in Los Angeles in which they each would have an ownership interest. They further agreed that Wright would use his position and influence as general manager to convince the LADWP Board to authorize the department’s purchase of $15 million in services from their Cyber Company franchise, which secretly would benefit both Wright and Paradis financially.
By March 2019, Paradis had been forced to resign from his role as special counsel to the City Attorney’s Office. Around this time, the LADWP board voted to terminate Aventador’s contract, but agreed to retain the company’s services if Paradis sold his stake in the company and disavowed any interest in the company, which Paradis purported to do. In late March 2019, after Paradis sold the company to an employee, Aventador officially changed its name to Ardent Cyber Solutions LLC.
In late March 2019, after Paradis had begun covertly cooperating with the FBI, Wright met with Paradis at Wright’s home and directed Paradis to destroy their incriminating text messages and emails from Wright’s cell phone and Apple iCloud account, and to take back an Aventador laptop and wipe it clean. Wright told Paradis that he had already gone through his office at LADWP and destroyed all incriminating physical evidence.
At this meeting, Wright also told Paradis that he still wanted to continue their secret plans, stating that he felt that his future had been “resurrected” by the opportunity to further their corrupt scheme. Wright cautioned that they would need to create a new company, which they referred to as “Newco,” to replace Aventador and its successor Ardent, because those companies were tarnished because of bad publicity. The two men continued to contact and meet one another in private. Due to Wright’s fears that their corrupt communications would be detected, they orchestrated a clandestine dead-drop maneuver for Paradis to deliver Wright’s wiped cell phone and a “burner” cell phone for Wright’s use so that they could communicate in secret.
In April 2019, Wright used his position to urge the LADWP board to support the award of a new cybersecurity contract to Ardent for more than $10 million. Wright again did not inform the board of his secret arrangement with Paradis, which by then included their agreement that Wright would receive a “substantial sign-on bonus” of $600,000 or $1.2 million, as well as an increase in his ownership of their company, in addition to a previously agreed-to $1 million annual salary and luxury car.
In May 2019, Wright suggested to Paradis that he remain in his role as LADWP general manager for a few more months so he could help ensure that Ardent secured yet another contract from the department. Understanding that he could not legally receive payment from Ardent while he was still employed by LADWP, Wright suggested that he could secretly begin working for Ardent before his retirement and then later be compensated by “some retroactive money” for those services. In proposing this illicit payment arrangement, Wright referred to Paradis as his “ATM.”
Wright admitted in his plea agreement that he deprived LADWP and its ratepayers of their right to his honest services and violated the fiduciary duty that he, as general manager, owed to LADWP and its ratepayers. Wright further admitted that he lied to federal investigators in June 2019 when he told them that he did not have any financial or business interest – including future interests – in any company in which Paradis was associated. Wright also admitted that he destroyed evidence with the intent to obstruct the federal investigation.
The FBI is investigating this matter. Any member of the public who has information related to this or any other public corruption matter in the City of Los Angeles is encouraged to send information to the FBI’s tip line at tips.fbi.gov or to contact the FBI’s Los Angeles Field Office at (310) 477-6565.
Assistant United States Attorneys Melissa Mills, Jamari Buxton, and Susan Har of the Public Corruption and Civil Rights Section are prosecuting this case.
Former Executive Director of Madison Daycare Center Pleads Guilty to Wire FraudRead the Press Release
MADISON, WIS. - Timothy M. O'Shea, Acting United States Attorney for the Western District of Wisconsin announced that on Friday, December 3, Nichole Genz, 41, Evansville, Wisconsin, pleaded guilty to wire fraud in U.S. District Court in Madison.
At the plea hearing, Genz pleaded guilty to an indictment that charged her with wire fraud against her employer Park Towne Development Corporation (PTD). According to the indictment, PTD was a Madison-based real estate development and management company that focused its real estate efforts on commercial buildings and land development. PTD also had various subsidiary entities, including Learning Gardens Child Development Center. Genz worked as the Executive Director at Learning Gardens from September 3, 2013 to October 2, 2018. She was responsible for all Learning Gardens functions including hiring and firing of staff, compliance with all state licensing regulations, and maintaining the petty cash account which encompassed issuing petty cash checks for expense reimbursements and coding the payments for entry into the general ledger.
According to the indictment, Genz and the PTD accounting manager participated in a scheme to defraud PTD through various methods of embezzlement, which included: (1) diverting Learning Gardens tuition checks into the Learning Gardens petty cash account and cashing them; (2) cashing voided and altered PTD checks by diverting them to the Learning Gardens petty cash account and cashing them; (3) creating false bank statements for the Learning Gardens petty cash bank statement that hid the check diversions; and (4) misuse of the US Bank VISA company credit card for personal purchases. In particular, Genz submitted monthly expense reports that falsely coded her personal expenses on the VISA credit card statement as Learning Gardens business expenses. Genz attached receipts to the expense reports with handwritten notations falsely indicating the purchases were Learning Gardens business expenses.
As part of her plea agreement to Count 5 of the indictment, Genz admitted that she charged personal expenses on her company credit card and falsely claimed they were for meal service for children at Learning Gardens. She further admitted that many of these claimed business expenses were for a separate personally-owned ice cream shop business.
The maximum penalty for the wire fraud charge is 20 years in prison, 3 years of supervised release, and a $250,000 fine. Sentencing for Genz is set for February 10, 2021, at 2:30 p.m., before U.S. District Judge James D. Peterson at the U.S. Courthouse in Madison, Wisconsin.
The charges against Genz are the result of an investigation conducted by the Madison Police Department. Assistant U.S. Attorney Daniel J. Graber is handling the prosecution.
Former Employee Sentenced for Defrauding the Veterans AdministrationRead the Press Release
Assistant U. S. Attorneys Dylan M. Aste (619) 546-7621 and Valerie H. Chu (619) 546-6750
NEWS RELEASE SUMMARY – December 6, 2021
SAN DIEGO – Anthony Medrano, a veteran of the U.S. Marine Corps and former employee of the Veterans Administration, was sentenced in federal court today to eight months in custody for defrauding the Department of Veterans Affairs out of more than $183,000.
According to his plea agreement, Medrano admitted that between approximately November 2015 and May 2020, he submitted claims to the Veterans Administration (VA) in which he purported to be disabled so that he could obtain caregiver benefits for his wife, when he was actually able-bodied and even participating in fitness challenges and coaching youth sports.
Medrano executed this scheme while employed in the VA’s Veterans Benefits Administration as a Veterans Service Representative, a position in which he explained benefit programs and entitlement criteria to veterans applying for VA benefits. As a representative, Medrano’s responsibilities included adjudicating claims, authorizing payments, and inputting data necessary to generate the award and notification letter to the veteran. After the Veterans Benefits Administration authorizes payment, the Veterans Benefits Administration—a separate VA branch—administers the payment to disabled veterans who require substantial caregiving and need assistance to pay for such care. Using the knowledge gained from his VA employment, Medrano stole $183,034.38 from the VA through a series of lies.
According to court documents, Medrano first lied during the physician evaluation conducted to determine eligibility in the Caregiver Support Program. Medrano lied about needing high-level assistance for daily activities (e.g., dressing and undressing himself, personal hygiene, grooming), and he lied about needing high-level assistance in other activities (e.g., planning and organizing, recent memory, self-regulation). Medrano tricked the VA into awarding him assistance that paid the primary caregiver -his wife - an amount equivalent to a full-time home health aide’s 40-hour-per-week payment.
Medrano’s lies continued for years so that the money would keep coming in. Medrano told VA representatives that he was unemployed since 2012 and unable to work; his caregiver was “doing everything” for him, including washing his back while bathing. He said that he could not stand for more than 5-10 minutes; and he could not lift more than 20 pounds. But while Medrano was making those statements, he was employed, he was washing his own back, and was often lifting weights greater than 20 pounds while working out.
For example, immediately following an active-duty stint in the United States Marine Corps, the VA fully employed Medrano from March 2013 through February 19, 2021. Medrano was also walking, jogging, and coaching youth sports teams while stating he could not stand for more than 5-10 minutes. And only a few weeks after stating he could not lift more than 20 pounds, Medrano posted videos of himself on Facebook participating in the “push-up challenge,” doing push-ups with a 25-pound weight on his back.
In court, prosecutor Dylan M. Aste noted that, due to his position, Medrano knew the inner workings of the VA’s approval requirements for disability benefits and used that insider information to exploit the VA system and steal $183,000 from the VA and disabled veterans in need of such benefits programs.
“This defendant used his position to game the system at the expense of those with legitimate claims and taxpayers in general,” said Acting U.S. Attorney Randy Grossman. “It’s not only outrageous when an undeserving person claims a disability. It’s also a crime. And unfortunately for this defendant, he is going to jail.” Grossman thanked the prosecution team and the Department of Veterans Affairs, Office of Inspector General, for their excellent work on this case.
“Our nation’s service-disabled veterans receive a wide variety of benefits from the Department of Veterans Affairs. Unfortunately, some veterans fraudulently misrepresent their situation to obtain benefits they do not deserve,” said Special Agent in Charge Rebeccalynn Staples of the Department of Veterans Affairs Office of Inspector General’s Western Field Office. “The VA OIG remains committed to diligently pursuing these cases in an effort to maintain the integrity of VA programs.”
To report fraud in a VA program, call the VA-OIG hotline at 1-800-488-8244 or visit https://www.va.gov/oig/hotline/.
DEFENDANT Case Number 21cr01071-BAS
Anthony Medrano Age: 42 Spring Valley, CA
SUMMARY OF CHARGES
Theft of Government Property – Title 18, U.S.C., Section 641
Maximum penalty: Ten years in prison and $500,000 fine
AGENCY
United States Department of Veteran’s Affairs, Office of the Inspector General
Federal Officials Close Cold Case Re-Investigation of Murder of Emmett TillRead the Press Release
The Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office for the Northern District of Mississippi announced today that it has closed its investigation into a witness’s alleged recantation of her account of the events leading up to the murder of Emmett Till. The investigation was conducted in conjunction with the Mississippi District Attorney’s Office, Fourth District. Till’s murder is one of the most infamous acts of racial violence in our country’s history.
Today, Assistant Attorney General Kristen Clarke, Acting U.S. Attorney Clay Joyner, District Attorney W. Dewayne Richardson and career attorneys and employees from the Civil Rights Division and the FBI met with members of Till’s family, including a family member who had been a witness to the events preceding Till’s abduction and murder. The purpose of the meeting was to explain the reasons for closing the investigation and to give the family an opportunity to ask questions about the department’s investigation and conclusions.
The department conducted the investigation as part of its Cold Case Initiative and pursuant to the passage of the Emmett Till Unsolved Civil Rights Crime Act (Till Act). The Cold Case Initiative is a comprehensive effort to identify and investigate racially motivated murders committed decades ago. As in all federal cases, the department may only bring a case with laws that were enacted at the time of the crime and are still within the statute of limitations. However, under the Till Act, the federal government is authorized to assist state and local jurisdictions with investigating and, where possible, prosecuting such crimes.
Because there were no federal hate crime statutes at the time of Till’s death, the case was not then opened for federal investigation. In 2004, the department opened an investigation into Till’s murder as part of its Cold Case Initiative, but determined after a thorough review that it lacked jurisdiction to bring federal charges.
The department reopened the matter in 2017 after a professor alleged in a book he had written that a white woman, who was a witness to crucial events leading up to Till’s abduction and murder, had recanted her previous accounts of those events. In response, the department and the FBI examined whether the woman had recanted and, if so, whether she had information that would allow prosecution of any living person.
In the summer of 1955, the 14-year-old Till traveled from Chicago to Money, Mississippi, to visit relatives. He stayed with family members in their home just east of Money. On Aug. 24, 1955, Till and approximately six other youths drove to a store in Money. A witness indicated that, contrary to long-standing belief about the events in and near the store, no one challenged Till to speak to or flirt with a white woman who was at the store. Nor did Till show a photo of a white girl to the men standing outside the store. Rather, Till bought some items in the store and left with one of his companions without incident. According to this witness, the woman then left the store, unhurried and undisturbed, at which time Till whistled at her. Till’s companions, aware of the dangers posed to Black men perceived to have violated the unwritten, racist code prevalent in the Jim Crow South, hurried to get Till away from the store.
A few days later, in the early morning hours of Aug. 28, Roy Bryant, his half-brother John William (J.W.) Milam, and at least one other person abducted Till from the home of his relatives. Three days later, a teenager fishing in the Tallahatchie River discovered Till’s brutally beaten body floating in the river. Till’s assailants had weighed him down with a 75-pound cotton gin fan, which they tied to his body with barbed wire.
State officials charged Roy Bryant and J.W. Milam with murder; they were tried the following month and acquitted by an all-white jury. During the trial, the woman at the store testified under oath, but not in front of the jury, that Till had propositioned her and physically touched her hand, arm and waist while they were both inside the store. Following their acquittals, both Roy Bryant and J.W. Milam confessed to kidnapping and murdering Till in an account published in Look magazine in January 1956.
In early 2017, new information emerged suggesting that the woman may have confessed to a professor, who later wrote a book about Till’s murder, that the account she provided to the state court in 1955 was untrue. Specifically, the professor asserted that, during a 2008 interview with the woman, she handed him a transcript of her sworn 1955 testimony and said, “[t]hat part’s not true.” If credible, the professor’s assertion suggests that the woman lied in state court and confessed to having done so. The alleged recantation raised questions about whether the woman would be willing to acknowledge to federal authorities that her prior versions of events had been untruthful and whether she now would provide new and accurate information relating to the abduction and murder of Till.
The woman however, when asked about the alleged recantation, denied to the FBI that she ever recanted her testimony and provided no information beyond what was uncovered during the previous federal investigation. Although lying to the FBI is a federal offense, there is insufficient evidence to prove beyond a reasonable doubt that she lied to the FBI when she denied having recanted to the professor. There is insufficient evidence to prove that she ever told the professor that any part of her testimony was untrue. Although the professor represented that he had recorded two interviews with her, he provided the FBI with only one recording, which did not contain any recantation. In addition, although an assistant transcribed the two recordings, neither transcript contained the alleged recantation. The professor also provided inconsistent explanations about whether the missing recording included the alleged recantation or whether, instead, the woman made the key admission before he began recording the interview.
A federal prosecution of the woman would be complicated by the fact that, according to the professor’s account, when she said “that part’s not true,” she did not expressly reference her state court testimony or refer to any specific part of that testimony. Rather, the professor stated that he understood her to be referring to her allegation that Till physically accosted her in the store from the context of their conversation. It would thus be impossible for prosecutors to prove beyond a reasonable doubt that the woman intentionally recanted all or part of her state court testimony, and that she then lied to the FBI when she denied having done so.
Even if the government could prove that she recanted her prior state court testimony, the federal government could not prosecute her for perjury for her 1955 testimony. Perjury in state court is not a federal offense. Moreover, the statute of limitations, a deadline for bringing a prosecution, expired in 1960 on any state perjury offense. Similarly, the five-year statute of limitations has expired on any claim that she lied to the FBI during the 2004 investigation. However, in closing this matter without prosecution, the government does not take the position that the state court testimony the woman gave in 1955 was truthful or accurate. There remains considerable doubt as to the credibility of her version of events, which is contradicted by others who were with Till at the time, including the account of a living witness.
The government’s re-investigation found no new evidence suggesting that either the woman or any other living person was involved in Till’s abduction and murder. Even if such evidence could be developed, no federal hate crime laws existed in 1955, and the statute of limitations has run on the only civil rights statutes that were in effect at that time. As such, even if a living suspect could now be identified, a federal prosecution for Till’s abduction and murder would not be possible. A copy of the memorandum explaining the reasons for closing the investigation is available at: Emmett Till | CRT | Department of Justice.
The Department of Justice remains committed to identifying and investigating racially motivated crimes of violence committed decades ago through its Cold Case Initiative, and through the Emmett Till Unsolved Civil Rights Crime Act and its reauthorization. Those who have information related to an unsolved or un-vindicated cold case that occurred on or before Dec. 31, 1979, and have reason to believe are hate crimes or crimes that would violate other civil rights law should contact the Civil Rights Division’s Cold Case Unit.
Federal Jury Convicts Tulsa Man of Sexually Abusing a Minor Under the Age of 12Read the Press Release
On Friday, a federal jury found Edward Joseph Parson, 31, of Tulsa, guilty of aggravated sexual abuse of a minor in Indian Country.
“Edward Parson repeatedly sexually abused a young child. He preyed upon the vulnerable child left in his care and then exploited her fear to hide his crimes,” said Acting U.S. Attorney Clint Johnson. “His attempts to intimidate the victim into silence ultimately failed, and she spoke out three years ago. With the support of family, DHS workers, interviewers, and counselors, she was able to bravely continue to speak out against him, even in the face of enormous pressure at trial. Although still under twelve years old, her testimony last week helped bring this predator to justice.”
“Stopping predators like Mr. Parson is why the FBI works tirelessly with our partners. We are grateful for the conviction of someone who would target our most vulnerable population,” said Rebecca Day, Acting Special Agent in Charge of FBI Oklahoma City.
Beginning likely in 2017 and continuing through most of 2018, Parson repeatedly sexually abused the minor victim who was under the age of twelve. The child eventually disclosed to several adults that Parson had abused her. Unfortunately, the first adults she trusted tried to silence her. Five months later, when she was safely placed with supportive caregivers, she disclosed a portion of the abuse again. That time, her new caregivers listened and called authorities. As the jury heard from a child sexual abuse expert, children often do not disclose sexual abuse immediately. When children do disclose, they frequently disclose in pieces over time as they become more comfortable and as they are met with acceptance and support. The minor victim was then interviewed by child specialists at the Children’s Advocacy Center. During those interviews, she disclosed multiple instances of physical abuse and extensive sexual abuse.
The defendant is a citizen of the Cherokee Nation, and the crime occurred within the boundaries of the Cherokee Nation Reservation. The victim is also a citizen of the Cherokee Nation.
The FBI conducted the investigation. Assistant U.S. Attorneys Chantelle D. Dial and Vani Singhal are prosecuting the case.
Federal Jury Convicts Tampa Man of Theft of Government Funds and Making False Statement to U.S. Department of Veterans AffairsRead the Press Release
Tampa, Florida – A federal jury has found Barry Wayne Hoover (50, Tampa) guilty of theft of government funds and making a false statement to a federal agency. Hoover faces a maximum penalty of 10 years in federal prison. His sentencing hearing is scheduled for March 2022.
Hoover had been indicted on January 30, 2020.
According to evidence presented at trial, Hoover, a veteran of the United States Navy, exaggerated the extent of his visual impairment in order to receive U.S. Department of Veterans Affairs (VA) disability benefits to which he was not entitled. Specifically, Hoover manipulated the results of subjective tests of his peripheral vision to reflect that he had only a five-degree visual field and was legally blind. The VA found that Hoover was 100% disabled based on those manipulated tests.
Additionally, during a recorded phone call, Hoover falsely stated to the VA that he is not able to drive himself, has someone drive for him, and had last driven a few months previously – but only down the street, for about three blocks, during daytime.
Despite his claimed limited peripheral vision and his statements to the VA, surveillance, video footage, social media posts, and other evidence showed Hoover had no such limitations – without assistance, he readily performed activities of daily life such as shopping and driving a car, in addition to operating a three-wheeled motorcycle, an ATV, and a boat. Authorities also observed Hoover mowing his lawn, operating power tools such as a chain saw, hunting, fishing, and scuba diving, all also without assistance. Expert testimony at trial established that an individual with the five-degree visual field Hoover claimed could not drive and would be reliant on a white cane to function in public.
As a result of his misrepresentations, Hoover received approximately $429,569.09 in VA benefits to which he was not entitled.
This case was investigated by the Department of Veterans Affairs – Office of the Inspector General. It is being prosecuted by Assistant United States Attorney Tiffany Fields and Special Assistant United States Attorney Suzanne Huyler.
El Paso Man Sentenced to over 12 Years in Prison for Enticement of a MinorRead the Press Release
EL PASO – An El Paso man was sentenced today to 151 months in prison for coercion and enticement of a minor.
According to court documents, on August 25, 2021, Eduardo Lara Jr., 24, pleaded guilty to one count of enticing a minor to engage in sexual activity. By pleading guilty, Lara admitted that he engaged in sexual activity with a 13-year-old on at least two occasions in El Paso in February and March 2020. In March 2021, the parents of the minor reported the child missing. It was later determined that Lara took the child to Mexico where he engaged in sexual activity with the child over the course of several days. Lara further admitted that he sent the child sexually explicit photographs via a social media application and requested such photographs in return.
Lara has remained in custody since his arrest on April 17, 2020.
“This case epitomizes every parent’s worst nightmare. A cyber predator befriended and manipulated a child into running away with him,” said U.S. Attorney Ashley C. Hoff. “We have a mandate to protect the children in our community from criminals that want to harm them. Today’s sentence reflects this office’s dedication to that mandate.”
“Homeland Security Investigations (HSI) special agents and our law enforcement partners, successfully took another child predator off the streets,” said Taekuk Cho, Acting Special Agent in Charge of HSI El Paso. “This sentence exemplifies the commitment of HSI to identify, apprehend, and prosecute those individuals who engage in coercing and enticing minors via the internet.”
HSI, with invaluable assistance from the El Paso Police Department and Customs and Border Protection, investigated the case.
Assistant U.S. Attorney Michelle Winters prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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.justice.gov/psc.
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Dover Man Sentenced to 18 Months for Fentanyl Trafficking ChargesRead the Press Release
CONCORD - Marc Martin, 44, of Dover, was sentenced to 18 months in federal prison for two counts of possession of fentanyl with intent to distribute, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in June of 2019, Dover police were notified that Martin was suspected of distributing drugs from his Dover apartment. On June 19, 2019, detectives conducted surveillance of Martin’s apartment and observed a male enter and leave the apartment within a few minutes. Officers confronted the male and he admitted he had just purchased fentanyl from Martin in the apartment. After obtaining a search warrant, officers entered the apartment and located over 32 grams of fentanyl, drug packaging, and a cell phone that contained evidence of drug activity.
On January 14, 2020, the same detectives followed Martin as he drove to Massachusetts and pulled into a parking lot in Amesbury. After a brief period, Martin drove northbound back to New Hampshire, where he was stopped for speeding. During the stop, Martin admitted he had drugs with him and relinquished a bag containing over 39 grams of fentanyl.
Martin previously pleaded guilty on August 25, 2021.
“Fentanyl traffickers continue to cause serious harm to communities throughout New Hampshire,” said Acting U.S. Attorney Farley. “To protect the public from the grave harm caused by fentanyl, we will continue to work closely with the Dover Police Department and all of our law enforcement partners to identify and prosecute the drug dealers who are selling fentanyl and other deadly substances in the Granite State.”
This matter was investigated by the Dover Police Department. The case was prosecuted by Assistant U.S. Attorney Joachim H. Barth.
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Dos ciudadanos peruanos se declaran culpables de defraudar a miles de inmigrantes estadounidenses de habla hispana.Read the Press Release
Dos ciudadanos peruanos responsables de operar una serie de centros de llamadas en Perú, que defraudaron a residentes estadounidenses de habla hispana al amenazarlos falsamente con arresto, deportación y otras consecuencias legales, se declararon culpables de cargos federales en el Tribunal de Distrito de Estados Unidos para el Distrito Sur de Florida.
Josmell Espinoza Huerta (Josmell Espinoza), de 32 años, y su hermano Carlos Alberto Espinoza Huerta (Carlos Espinoza), 40 de años, ambos originarios de Lima, Perú, se declararon culpables por su papel en la conspiración para cometer fraude postal y fraude electrónico por medio de varios centros de llamadas en Perú de los que ellos era propietarios y operaban.
De acuerdo con los documentos judiciales, Josmell y Carlos Espinoza eran copropietarios y operaban el centro de llamadas JFC Perú, en Perú. Además, Josmell Espinoza era propietario y operaba los centros de llamadas Camino Al Progreso y Latin Shop y Carlos Espinoza era propietario y operaba por separado los centros de llamadas Latinos en Acción and Latin Force en Perú.
Desde abril de 2011 hasta julio de 2019, los hermanos Espinoza y sus cómplices en Perú le llamaron a las víctimas, muchos de ellos habían inmigrado recientemente de Centroamérica, México y otros países de habla hispana, y los amenazaron de forma fraudulenta con consecuencias legales si no cumplían con los pagos de productos que supuestamente se habían entregado y el pago de clases del idioma inglés. Los acusados y sus cómplices utilizaron falsas declaraciones y amenazas para obtener dinero de las víctimas en todo Estados Unidos al decirle a las víctimas que debían aceptar y pagar cursos del idioma inglés y otros productos educativos y de no hacerlo se pondrían en riesgo legal. Los acusados y sus cómplices entonces amenazaban falsamente a las víctimas con arresto y deportación para obtener los pagos de muchas víctimas vulnerables en el Sur de Florida y en todo Estados Unidos.
Al declararse culpables, ambos acusados admitieron que ellos y sus empleados afirmaron falsamente se abogados, funcionarios judiciales, agentes federales y representantes del llamado “tribunal de delitos menores”, que no existe. Las personas que llamaron amenazaron falsamente a las víctimas con procedimientos judiciales, marcas negativas en sus reportes de crédito, cárcel y consecuencias migratorias si no pagaban de inmediato los productos que supuestamente se entregaron y las cuotas de liquidación. Carlos Espinoza provocó que las víctimas perdieran más de $1.3 millones y Josmell Espinoza provocó que las víctimas perdieran más de $700,000.
“La rama de Protección del Consumidor del Departamento de Justicia perseguirá y enjuiciará firmemente a los criminales transnacionales que defrauden a consumidores estadounidenses vulnerables”, dijo el Secretario de Justicia General Interino, Brian M. Boynton, de la División Civil del Departamento de Justicia. “Quienes se hagan pasar por funcionarios del gobierno de Estados Unidos y amenacen para aprovecharse de nuestras comunidades de inmigrantes se enfrentarán a la justicia y se harán responsables ante los tribunales de Estados Unidos”.
“Este caso demuestra que el gran brazo de la justicia no tiene límites cuando se trata de llegar hasta los estafadores que se aprovechan de las poblaciones más vulnerables de nuestra nación”, dijo el Fiscal Federal Interino de Estados Unidos, Juan Antonio González, del Distrito Sur de Florida. “Continuaremos llevando la justicia a los criminales transnacionales que utilizan tácticas de miedo e intimidación para robar dinero de los inmigrantes, personas mayores y otras personas que viven en este país”.
“Durante muchos años, el Servicio de Inspección Postal de Estados Unidos y sus socios del orden público encargados de investigar y procesar las redes criminales internacionales que tienen como objetivo consumidores estadounidenses para robar el dinero que tanto les costó ganar”, dijo el Inspector a Cargo, Joseph Cronin, de la División de Miami del Servicio de Inspección Postal de Estados Unidos. “Continuaremos persiguiendo a estos criminales para garantizar que se procesan con todo el peso de la ley”.
Al declararse culpable Carlos Espinoza hoy en Miami, ya se declararon culpables los siete acusados en este asunto. En julio de 2019 se arrestó a cuatro de los cómplices acusados y en enero de 2020 se arrestó a otro. Esos cinco acusados se extraditaron al Distrito Sur de Florida en octubre de 2020 y fueron sentenciados a cumplir importantes condenas de prisión a principios de este año. Se sentenció a Henrry Milla a 110 meses de prisión, Jerson Rentería fue sentenciado a 100 meses en prisión y Evelyng Milla, Fernan Huerta y Omar Cuzcano cada uno fue sentenciado a 90 meses en prisión.
Carlos Espinoza y Josmell Espinoza evitaron ser arrestados cuando se arrestó a sus cómplices y después fueron localizados en Perú y se extraditaron a Estados Unidos el 25 de junio. El Juez de Distrito de Estados Unidos Robert N. Scola, Jr. sentenciará a Josmell Espinoza en Miami el 9 de febrero de 2022 y a Carlos Espinoza el 14 de febrero de 2022.
El Servicio de Inspección de Estados Unidos y la División de Protección al Consumidor de la División Civil investigaron el caso. El Abogado Litigante Principal Phil Toomajian y el Abogado Litigante Max Goldman de la Rama de Protección al Consumidor están procesando el caso. La Comisión Federal de Comercio, la Oficina de Asuntos Internacionales del Departamento de Justicia, la Oficina del Fiscal de Estados Unidos para el Distrito Sur de Florida, el Servicio de Seguridad Diplomática del Departamento de Estado y la Policía Nacional de Perú proporcionaron asistencia de crítica importancia.
La información sobre la iniciativa contra el fraude a personas mayores del Departamento de Justicia se encuentra disponible en www.justice.gov/elderjustice. Se puede encontrar información adicional sobre la Rama de Protección al Consumidor y sus esfuerzos para hacer cumplir el fraude a personas mayores en www.justice.gov/civil/consumer-protection-branch. Si usted o alguien que conoce que tiene 60 años o más y fue víctima de fraude financiero, puede encontrar ayuda en la Línea Directa Nacional Contra el Fraude a Personas Mayores: 1-833-FRAUD-11 (1-833-372-8311).
Dillsburg Man Sentenced to 45 Months’ Imprisonment for Possessing A Destructive DeviceRead the Press Release
HARRISBURG—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Kevin Madziarek, age 38, of Dillsburg, Pennsylvania, was sentenced to 45 months’ imprisonment on December 3, 2021, by United States District Court Judge Christopher C. Conner for unlawfully possessing a destructive device. The sentence also includes a two-year term of supervised release, which will follow the term of imprisonment.
According to United States Attorney John C. Gurganus, Madziarek previously admitted that in August 2020, he possessed a destructive device, along with an electrical box that could have initiated the device, on a wooded property in Cumberland County. The device, which was made out of PVC pipe, was capable of causing death, serious bodily injury, and property damage.
The case was investigated by the Federal Bureau of Investigation and the Pennsylvania State Police. Assistant U.S. Attorney Carlo D. Marchioli and former Assistant U.S. Attorney Kim Douglas Daniel prosecuted the case.
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Detroit man sentenced for his role in a drug conspiracyRead the Press Release
CLARKSBURG, WEST VIRGINIA – William D. Charleston, of Detroit, Michigan, was sentenced today to 57 months of incarceration for his role in a drug trafficking conspiracy, United States Attorney William J. Ihlenfeld, II announced.
Charleston, also known as “Jay,” 41, pleaded guilty in June 2021 to one count of “Possession with Intent to Distribute Heroin and Fentanyl in Proximity to a Protected Location.” Charleston admitted to distributing heroin and fentanyl near Fairmont Senior High School and Fairmont State University in August 2020.
Assistant U.S. Attorney Brandon S. Flower prosecuted the case on behalf of the government. The Three Rivers Drug Task Force investigated.
U.S. District Judge Thomas S. Kleeh presided.
Detroit Man Sentenced to Prison for Federal Drug OffenseRead the Press Release
HUNTINGTON, W.Va. - A Detroit, Michigan man was sentenced today to one year and two months in prison, to be followed by three years of supervised release for his involvement in distributing heroin and methamphetamine.
According to court documents, Londel Sanders, 27, sold heroin and methamphetamine to an undercover informant on four separate occasions in 2019.
United States Attorney William S. Thompson made the announcement and commended the investigative work of the Violent Crime and Drug Task Force West.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie S. Taylor prosecuted the case on behalf of the Government.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:20-cr-00015.
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Denver Man Sentenced to 14 Years in Prison for Distributing Illicit DrugsRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Luis Gerardo Palacios, age 31, of Denver, was sentenced to 14 years in federal prison for conspiracy to distribute and possess with intent to distribute methamphetamine, cocaine, fentanyl, and heroin.
According to the plea agreement and court filings, from sometime in 2019 until February 12, 2020, the defendant served a drug trafficking organization that engaged in the interstate transportation and local distribution of large quantities of illegal drugs sourced from Mexico. The defendant aided the organization by helping find one of the drivers that brought more than 50 pounds of methamphetamine from California to Colorado in October 2019, and by assisting in coordinating a load run of approximately 2.5 pounds of heroin, a kilogram of fentanyl, and 40 pounds of methamphetamine in December 2019. The defendant also arranged for the delivery of 10,000 fentanyl pills from California to Colorado in January 2020, and then distributed or made attempts to distribute a portion of those pills in Colorado. At the time of the defendant’s arrest, federal agents seized a Sig Sauer pistol as well as over $20,000 cash in the defendant’s apartment. The weapon and cash were forfeited.
“Together with our law enforcement partners, the U.S. Attorney’s Office is committed to stopping criminals from poisoning our communities with illicit narcotics,” said United States Attorney Cole Finegan. “With this sentencing a dangerous drug dealer is off the street and Colorado is safer as a result.”
“This lengthy sentence shows the commitment to stop the poison of drugs into our communities," said FBI Special Agent in Charge Michael Schneider of the FBI Denver Division. "The FBI is steadfast in investigating criminals like Palacios and the threat posed by the illicit drug culture he promotes that endangers our society. The FBI and our partners will continue to pursue these bad actors who feel they are above the law as we work to protect youth and other vulnerable populations from being their next victim.”
“Our special agents and criminal analysts work night and day to keep every corner of Colorado free from the scourge of dangerous drugs like meth and fentanyl,” said Ryan L. Spradlin, Special Agent in Charge, HSI Denver. “This sentence highlights the commitment our investigators, prosecutors from the United States Attorney’s Office and law enforcement partners have to stop the flow of drugs into our communities.”
“This sentence of Palacios is a great example of the collaborative environment the OCDETF Strike Force Group-II has created which has enabled us to thoroughly investigate this drug trafficking organization, including their money laundering activities” said Andy Tsui, IRS Criminal Investigation Special Agent in Charge. “We are proud to provide our financial expertise as we work alongside our law enforcement partners to bring criminals to justice.”
United States District Court Judge Raymond P. Moore sentenced the defendant on November 29, 2021.
The FBI, ICE ERO, HSI, IRS-CI, the Colorado State Patrol, the Arapahoe County Sheriff’s Office, and the Douglas County Sheriff’s Office conducted the investigation. Assistant United States Attorney Cyrus Chung handled the prosecution of the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Force (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.
Case No. 20-cr-00028-RM
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Defendant Sentenced to 18 Years in Prison for 2011 Murder of Joshua RubinRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that MICHAEL MAZUR was sentenced by U.S. District Court Judge Jed S. Rakoff to 216 months in prison for his role in the October 31, 2011, murder of Joshua Rubin in Brooklyn, New York.
U.S. Attorney Damian Williams said: “Michael Mazur participated in the robbery that led to the murder of Joshua Rubin, and then he and his codefendants put Rubin’s body in the trunk of a car, drove it to Pennsylvania, dumped it in a garbage can, and set it afire to cover up the crime. Thanks to our law enforcement partners and the Special Agents of my Office, Mazur will now serve a lengthy prison sentence for his callous crime.”
According to the allegations in the Indictment and other documents filed in federal court, as well as statements made in public court proceedings:
On or about October 31, 2011, MICHAEL MAZUR, Kevin Taylor, and Gary Robles agreed to rob Joshua Rubin of a pound of marijuana. Robles agreed to bring a firearm to the robbery. Taylor lured Rubin to a Brooklyn apartment where, under the guise of purchasing the marijuana, the trio planned to rob Rubin of the drugs. On the night of the robbery, Taylor and Robles waited inside the apartment while MAZUR was positioned outside to serve as a lookout. After Rubin entered the apartment, Taylor and Robles demanded that Rubin surrender the marijuana. When Rubin refused, Robles shot and killed Rubin.
After the murder, MAZUR, Taylor, and Robles placed Rubin’s body into the trunk of a car and drove to rural Pennsylvania. There, MAZUR, Taylor, and Robles put Rubin’s body in a garbage can, doused it with an accelerant, and set the body on fire. MAZUR, Taylor, and Robles then drove back to New York in the early morning hours of November 1, 2011. Over 230 pounds of marijuana and approximately $200,000 were found in MAZUR’S residence at the time of his arrest.
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MAZUR, 27, pled guilty to one count of Hobbs Act robbery, in violation of 18 U.S.C. § 1951, and in connection with his guilty plea admitted to his role in the murder. In addition to his prison sentence, MAZUR, was sentenced to three years of supervised release.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation, the New York City Police Department, and the Special Agents of the United States Attorney’s Office for the Southern District of New York. He also thanked the Lehigh County District Attorney’s Office, the Pennsylvania State Police, and the South Whitehall Township Police Department for their assistance in the investigation.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Alexandra N. Rothman, Mollie Bracewell, and Dominic A. Gentile are in charge of the prosecution.
Council Bluffs Man Sentenced to Prison in Child Enticement StingRead the Press Release
Acting United States Attorney Jan Sharp announced that Amitkumar Patel, age 42, of Council Bluffs, Iowa, was sentenced on December 3, 2021 to 96 months’ imprisonment by Chief United States District Court Judge Robert F. Rossiter, Jr. for Travel with Intent to Engage in Illicit Sexual Conduct. There is no parole in the federal system. After his release, Patel will serve a 10-year term of supervised release.
On August 29, 2020, officers with the FBI’s Child Exploitation and Human Trafficking Task Force placed an advertisement on skipthegames.com, a website known to be used for prostitution. The advertisement was entitled “A Warm, Wet, PRINCESS Fairy Tale.” The advertisement stated that the escort provided services to men to include face sitting, intercourse-vaginal, intercourse-oral, and oral-receiving.
On September 4, 2020, Patel responded to the advertisement by cellular phone. Patel was informed that the purported provider was 15 years of age. Patel and the purported 15-year-old agreed on a price of $100 for a half hour and Patel, in referencing the advertisement, indicated that he was interested in having vaginal and oral sex with the purported 15-year-old. Patel also agreed to bring a Jimmy John’s sandwich for the purported 15-year-old’s younger sister. Patel then traveled from Council Bluffs, Iowa to Omaha, Nebraska and arrived at the agreed upon meeting spot.
Patel was met by officers in the area of 162nd and Bedford Streets in Omaha. In Patel’s possession was his iPhone, a Jimmy John’s sandwich order, 2 condoms, and $100 cash.
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 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.justice.gov/psc.
This case was investigated by the Federal Bureau of Investigation’s Child Exploitation and Human Trafficking Task Force and the Douglas County Sheriff’s Office.
Convicted Felon Pleads Guilty to Gun and Drug ChargesRead the Press Release
PROVIDENCE, R.I. – A convicted felon charged as the result of a Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and Providence Police Department Project Safe Neighborhoods firearm and drug trafficking investigation today pleaded guilty to federal firearm and drug charges in U.S. District Court, announced Acting United States Attorney Richard B. Myrus.
Joaquin Fabian, 24, pleaded guilty to possession of a firearm by a prohibited person, possession of cocaine with intent to distribute, and possession of marijuana with intent to distribute.
At the time of his arrest in this matter in April 2021, Fabian, who had previously been convicted and sentenced in Rhode Island state court on a drug trafficking charge, was free on bail while awaiting trial in state court on unrelated assault and firearm charges.
According to court documents and information presented to the court, beginning in January 2021, ATF agents and Providence Police, employing various surveillance techniques, determined that on several occasions Fabian drove to Southeastern Massachusetts to conduct his drug trafficking business. During this time, Fabian routinely changed vehicles and, at times, employed counter-surveillance techniques while driving.
On April 14, 2021, Fabian drove to Franklin, MA, consistent with past trips he made to meet with his drug customers. Fabian also posted a photograph online of a handgun positioned in between his legs while seated in a motor vehicle. As Fabian returned to the area of his Providence residence, ATF agents and Task Force officers conducted a traffic stop of his vehicle. Fabian exited the vehicle, hesitated, grabbed towards his waistline consistent with the drawing of a firearm, and fled on foot. Agents quickly located and approached Fabian, who had his hands raised. A Glock semi-automatic pistol, consistent with the firearm in the photograph, was located on the ground nearby.
Following Fabian’s arrest, ATF agents and Task Force members seized from his vehicle and his residence a total of 64.8 grams of cocaine, 1,030.9 grams of marijuana, three loaded magazines of ammunition, nearly 300 rounds of assorted ammunition, and $18,802 in cash.
Fabian is scheduled to be sentenced by U.S. District Court Mary S. McElroy on March 2, 2022. Possession of a firearm by a prohibited person is punishable by statutory penalties of up to10 years in federal prison to be followed by a term of supervised release of 3 years. Possession of cocaine with intent to distribute and possession of marijuana with intent to distribute are punishable by up to 20 years imprisonment followed by 3 years of federal supervised release.
The case in federal court is being prosecuted by Assistant U.S. Attorney William J. Ferland.
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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Connecticut Man Sentenced to 46 Months Imprisonment for Selling Crack Cocaine Within 1,000 Feet of Huntington Elementary SchoolRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Dorian Johnson (a.k.a. “Jon”), 28, of Bloomfield, Connecticut was sentenced today to 46 months of imprisonment and three years of supervised release following his conviction on two counts of drug trafficking. Johnson had previously pled guilty to distributing cocaine base within 1,000 feet of the Brewster Pierce Memorial School in Huntington, Vermont on November 5, 2020; and, possession with intent to distribute cocaine base, on January 1, 2021.
According to court records, on November 5, 2020, Johnson distributed approximately 25 grams of cocaine base at a residence on Main Road in Huntington, within 1,000 feet of the Brewster Pierce Memorial School. The street name for cocaine base is crack. The defendant also distributed smaller amounts of heroin and fentanyl in Huntington. On January 1, 2021, during a traffic stop in Richmond, Vermont, law enforcement seized approximately 88 grams of cocaine base and 45 grams of cocaine powder. These drugs belonged to Johnson, who was a passenger in this vehicle, and Johnson intended to sell the drugs in Vermont. The vehicle had just made a short-duration trip from Vermont to Connecticut and back.
This case was investigated by the Vermont State Police Narcotics Investigation Unit, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
This case was prosecuted by Assistant U.S. Attorney Joseph Perella. The defendant was represented by Assistant Federal Public Defender Steven Barth.
Colorado Man Sentenced to 15 Years in Federal Prison for Involvement in Pine Ridge MurderRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Denver, Colorado, man convicted of Accessory After the Fact to First Degree Murder was sentenced on November 29, 2021, by Judge Jeffrey L. Viken, U.S. District Court.
Estevan Baquera, a/k/a “Obama,” age 28, was sentenced to 15 years in federal prison, followed by three years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Baquera was indicted by a federal grand jury on March 20, 2018, and pleaded guilty on July 16, 2021.
The conviction stems from the October 16, 2016, assault and shooting death of Vincent Von Brewer III in front of the SuAnne Big Crow Center in Pine Ridge, South Dakota. Baquera kept bystanders from approaching and participated in Brewer’s assault. Two other individuals, Francisco Villanueva and Adan Corona, then proceeded to shoot Brewer 15 times with an assault rifle and a 9mm handgun, as Brewer attempted to flee. Additionally, Baquera assisted in changing license plates on a motor vehicle involved with the crime in order to evade detection. Villanueva was recently sentenced to two consecutive life sentences. Corona is awaiting sentencing and faces a mandatory life sentence.
The investigation was conducted by the Federal Bureau of Investigation, Oglala Sioux Tribe Department of Public Safety Criminal Investigations, and the Denver and Aurora, Colorado, Police Departments. The investigation was also supported by numerous other state and federal law enforcement agencies.
Assistant U.S. Attorneys Sarah Collins and Benjamin Patterson prosecuted the case.
Baquera was immediately remanded to the custody of the U.S. Marshals Service.
Coldspring man gets life in postal carrier death caseRead the Press Release
HOUSTON – A 45-year-old rural Houston resident has admitted he murdered a U.S. Postal Service (USPS) mail carrier while she was in the performance of her official duties, announced Acting U.S. Attorney Jennifer B. Lowery.
James Wayne Ham pleaded guilty today. Immediately thereafter, U.S. District Judge Lynn N. Hughes handed down a life sentence.
“Any murder against our citizens is egregious and intolerable,” said Lowery. “Even worse is someone who attacks our workforce while they are simply doing their job. This plea and sentence shows our determination to stand firm with our partners to ensure no one escapes justice for such vicious crimes.”
At the hearing, Ham admitted he murdered a USPS employee May 17, 2013, by shooting her with a firearm and then setting her on fire.
“USPS letter carriers are in our neighborhoods every day, delivering mail to homes and businesses across this country,” said Acting Inspector in Charge Dana Carter of the U.S. Postal Inspection Service (USPIS). “The investigation and arrest of Ham for his shocking and heinous crimes against a USPS letter carrier was the highest priority for the USPIS. Our thoughts continue to be with the victim’s family and all affected by this senseless crime.”
On May 17, 2013, Ham obtained a rifle, lighter fluid and extra ammunition. He then hid in the tree line near his home. Once the mail carrier delivered his mail and began leaving the area, Ham shot her approximately four times. He soon got into her vehicle and drove a short distance away to a water supply station. There, he doused the vehicle with lighter fluid and set it on fire. The victim’s body was still inside.
The victim’s son alerted law enforcement to the murder. He had been on the phone with the victim when Ham shot her. He advised that he had heard two loud noises, and upon questioning, she stated she thought she had been shot.
The son also heard an unintelligible male's voice over the telephone. During the call, he heard his mother say “Please don't kill me, please don't kill me.” The call was disconnected, after which he called 911.
Authorities later found Ham hiding in a vacant residence near the scene of the murder. They arrested him where he ultimately confessed. After the interview, Ham took law enforcement to the scene of the murder and showed them where he had hidden the gun as well as the location where he had shot the victim.
Ham has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
USPIS conducted the investigation. Assistant U.S. Attorneys Jill Stotts and Erin Epley prosecuted the case along with Trial Attorney Barry Disney of the Justice Department's Capital Case Section.