Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Monday 18 October 2021
Broken Arrow Man Pleads Guilty to Coercion and Enticement of a MinorRead the Press Release
A Broken Arrow man whose trial was slated to start this week in federal court pleaded guilty today for sexually abusing a minor, announced Acting U.S. Attorney Clint Johnson.
Christopher Dean Dana, 35, pleaded guilty to coercion and enticement of a minor in Indian Country.
In his plea agreement, Dana, a non-Indian, admitted that he sexually abused the victim when she was between the ages of seven and 11 then again when she was between 12 and 16 years old. When she resisted his advances, Dana would further pressure the victim by offering her money. The victim is a citizen of the Choctaw Nation, and the crimes occurred within the boundaries of the Muscogee Nation reservation.
“Christopher Dana betrayed this young victim. He should have been an adult she could trust but instead was a sexual predator,” said Acting U.S. Attorney Clint Johnson. “My office and our law enforcement partners will not tolerate the abuse of the most vulnerable in our communities- children.”
Chief U.S. District Judge John F. Heil III will sentence Dana on Feb. 25, 2022.
The FBI and Broken Arrow Police Department conducted the investigation. Assistant U.S. Attorneys Stacey P. Todd and Gina S. Gilmore are prosecuting the case.
Bitcoin Money Transmitters and Launderers Plead GuiltyRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Christopher Allan Boden, a/k/a “Captain,” 46, of Grand Rapids, Daniel Reynold DeJager, a/k/a “Daniel Miester,” and “Danichi,” 35, of Tacoma, Washington, and Leesa Beth Vogt, a/k/a “Lis Bokt,” and “Moose,” 37, also of Grand Rapids, pled guilty to various financial crimes. Boden pled guilty to operating an unlicensed money transmitting business, money laundering, and structuring deposits to evade financial institution reporting requirements. DeJager pled guilty to conspiracy to operate an unlicensed money transmitting business and money laundering. Vogt pled guilty to structuring while operating the unlicensed money transmitting business. The pleas occurred before the Honorable Robert J. Jonker, Chief United States District Judge. Boden and DeJager pled to offenses carrying a maximum of up to twenty years in prison, and Vogt pled to an offense carrying a maximum of ten years. The defendants also are subject to financial penalties. The Court scheduled Vogt’s sentencing hearing for February 17, DeJager’s sentencing hearing for February 22, and Boden’s sentencing hearing for February 25.
According to the plea agreements and other public records, Boden, DeJager, and Vogt operated an unlicensed money transmitting business at The Geek Group, a registered non-profit entity, between March 2017 and December 2018, when federal agents searched the business, leading to its closure. DeJager purchased bitcoin from registered exchanges, often laundered it, and then sent it to Boden to sell. Boden and other staff at The Geek Group, including Vogt, would sell bitcoin to customers. Boden, Vogt, and others then “structured” deposits of the cash proceeds so as to avoid detection of their operation and in order to purchase more bitcoin. The defendants sold more than $740,000 in bitcoin. Boden’s customers included drug dealers, and he held himself out to be a money launderer, explaining to prospective customers that “people buy from” him because he sold “clean” bitcoin, not “dirty” bitcoin that could be traced.
“Cryptocurrency is not a license or invitation to commit crime,” said U.S. Attorney Birge. “Federal law regulates those who deal in cryptocurrency as it does those who deal in government-issued currency. We will root out and prosecute crypto criminals wherever we find them. Whether cryptocurrency will be with us for years to come remains to be seen, but its vitality is contingent upon the willingness of those who use it to follow the law.”
“HSI is in the forefront of investigating crimes that utilize cryptocurrency to launder criminal proceeds or to purchase illegal services from throughout the world,” said Homeland Security Investigations Detroit Special Agent in Charge Vance Callender. “Our special agents, working with the IRS, dismantled this unlicensed money transmitting business and put a stop to their illegal enterprise.”
“Financial transactions designed to mask the origin of proceeds from the sale of controlled substances often involve multiple crimes including money laundering, structuring and even unlicensed money service businesses. Stopping complex financial schemes that inject proceeds from illicit sources into the financial system is paramount to dismantling criminal enterprises,” said IRS Criminal Investigation’s Acting Special Agent in Charge Brian Thomas. “IRS-CI is committed to following the money every step, investigating and uncovering complex criminal financial schemes to disrupt and dismantle organized criminal enterprises.”
The investigation was conducted by Homeland Security Investigations and IRS Criminal Investigation, with assistance from the Grand Rapids Police Department. Assistant U.S. Attorney Justin M. Presant is prosecuting the case.
###
Area man pleads guilty to his role in carjacking plotRead the Press Release
ST. LOUIS – United States District Court Judge Sarah E. Pitlyk accepted a plea of guilty from Paul Eric Latham on October 14, 2021 for aiding and abetting a carjacking in January 2020.
A grand jury in the Eastern District of Missouri indicted Latham in May 2021 for aiding and abetting Antwan Jones in carjacking a victim in St. Louis the previous year. According to the plea agreement, Latham stopped his SUV next to the victim on January 15, 2020. Latham waited in the SUV while his co-defendant approached the victim at gunpoint and demanded her purse. The carjacking victim surrendered her purse, which contained the keys to her car. Latham and his co-defendant drove around the area and used the victim’s key fob to locate her Mercedes Benz. Once they found the car parked nearby, Latham used the victim’s keys to drive her car away while his co-defendant drove away in Latham’s SUV.
Later that night, police tracked the victim’s phone to East St. Louis, Illinois. There, police discovered Latham’s SUV parked in the 1800 block of Boismenue Avenue with the victim’s purse still inside.
The case was investigated by the Federal Bureau of Investigation and the St. Louis Metropolitan Police Department. Kourtney Bell and Ryan Finlen are handling the case for the U.S. Attorney’s Office.
Amherst Man Sentenced to 18 Months in Prison for Trafficking Exotic African CatsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. – A New York man was sentenced to 18 months in prison today in the Western District of New York for violating the Lacey Act and the Animal Welfare Act by trafficking African wild cats.
Christopher Casacci, 39, of Amherst, was doing business as “ExoticCubs.com,” through which he advertised, imported and sold exotic African cats. Between February and June of 2018, Casacci imported and sold dozens of caracals (Caracal caracal) and servals (Leptailurus serval), for $7,500 to $10,000 each. Casacci claimed that he was operating as a big cat rescue organization in an attempt to avoid New York prohibitions against possessing and selling wild animals. Casacci also falsified transport documents to hide the true species of the cats, instead calling the animals domestic crossbreeds, such as Bengal cats or Savannah cats. Further, Casacci was not permitted to sell the cats because he was not approved to do so under the Animal Welfare Act.
“Selling wild animals as pets not only breaks the law, but also endangers local communities and environments,” said Assistant Attorney General Todd Kim for the Justice Department’s Environment and Natural Resources Division (ENRD). “The Department of Justice is dedicated to protecting the public and our native wildlife from the irresponsible actions of wildlife traffickers.”
“The purpose of the Lacey Act and the Animal Welfare Act is to protect fish, wildlife and other animals, especially those that may be endangered, from individuals who seek to profit from trafficking,” said U.S. Attorney Trini E. Ross for the Western District of New York. “Enforcing these measures is important to ensure that animals, such as the exotic African cats in this case, are safeguarded.”
“Criminals who flout wildlife laws such as the Lacey Act put humans and animals at great risk,” said Assistant Director Edward Grace of the U.S. Fish and Wildlife Service’s (FWS) Office of Law Enforcement. “Wildlife trafficking is decimating the world’s natural resources, so it is essential we work with our partners to put a stop to these types of illegal activities. This will help protect against risks to human health and safety and to native wildlife and their habitats and ensure future generations can enjoy and benefit from our cherished wild heritage.”
Caracals, also known as the “desert lynx,” are wild cats native to Africa that grow to approximately 45 pounds. Servals, also wild cats native to Africa, grow to approximately 40 pounds. All of the animals were sold while still kittens and, despite their size and wild nature, Casacci marketed them as “house pets.” Both species are protected under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), and their commercial possession and sale is restricted under New York state law. Multiple kittens imported by Casacci died while in his care or days after he sold them, and many live kittens were seized from Casacci during the investigation. The seized animals are now permanently residing within accredited animal sanctuaries.
Casacci was previously indicted for his actions in January of 2020. The investigation was conducted by the U.S. Fish & Wildlife Service’s Office of Law Enforcement, under the direction of Special Agent in Charge Ryan Noe, and the New York State Department of Environmental Conservation, Bureau of Environmental Crimes Investigation, Region 9.
The case is being prosecuted by Trial Attorney Patrick Duggan of the ENRD’s Environmental Crimes Section and Assistant U.S. Attorney Aaron J. Mango of the Western District of New York.
# # # #
Administrator Sentenced to 46 Months in Prison and 3 Years’ Supervised Release for Converting $1.5 Million from FEMA Grant to His Own Use, Filing False Tax ReturnsRead the Press Release
JOHNSTOWN, Pa. – A resident of Duncansville, PA, has been sentenced in federal court to a total of 46 months in prison and three years’ supervised release on his conviction of conversion of government funds and filing false tax returns. Acting United States Attorney Stephen R. Kaufman announced today.
Senior United States District Judge Kim R. Gibson imposed the sentence on Benjamin Allen Rhine, 49, of Duncansville, Pennsylvania.
According to information presented to the court, on or about April 19, 2013, to on or about June 18, 2017, Rhine received and converted falsely to his own use a total of $1,590,257 in federally-funded grant money from the Federal Emergency Management Agency, with payments made to him to which he was not entitled. Further, on Feb. 12, 2015, Feb. 20, 2016, and April 10, 2017, Rhine willfully filed Income Tax Return Form 1040, in which a written declaration was made under the penalties of perjury, and which he did not believe to be true and correct. The tax returns reported no taxable income; whereas Rhine knew and believed he had a taxable income resulting in additional tax due in the amounts of $103,626 for tax year 2014, $138,115 for tax year 2015, and $60,157 for tax year 2016.
“Benjamin Rhine’s greed overtook his good sense,” said U.S. Attorney Kaufman. “Massive thefts of government funds will be prosecuted aggressively.”
“Mr. Rhine's actions resulted in him illegally enriching himself and shortchanging the community he was supposed to be serving,” said Yury Kruty, Acting Special Agent in Charge of IRS-Criminal Investigation. “The Special Agents of IRS-CI will continue working with our law enforcement partners to prosecute others who participate in schemes like this.”
“I want to thank our law enforcement partners who worked tirelessly to bring Mr. Rhine to justice” said Inspector General Joseph V. Cuffari, of the Department of Homeland Security-Office of the Inspector General.
Assistant United States Attorney Arnold P. Bernard, Jr. prosecuted this case on behalf of the government.
Acting U.S. Attorney Kaufman commended the Internal Revenue Service-Criminal Investigation and the Department of Homeland Security-Office of the Inspector General for the investigation that led to the successful prosecution of Rhine.
A dozen Western Washington cities receive DOJ funding for crime prevention, community outreach, and officer safety equipmentRead the Press Release
Seattle – A dozen cities in Western Washington will receive funding from the U.S. Department of Justice for specific community safety needs identified by their local police departments, announced U.S. Attorney Nicholas W. Brown. The grants from DOJ’s Bureau of Justice Assistance, are aimed at preventing crime and assisting criminal justice programs based on local needs identified by the jurisdiction.
“From innovative communication APPs, to de-escalation and implicit bias training and less lethal equipment, our cities have identified ways these grant funds will make our communities safer,” said U.S. Attorney Brown. “I congratulate them on successfully competing for this federal funding.”
Both Seattle and Tacoma are receiving large grants aimed at reducing violence. Seattle will receive $771,127 under the Byrne Grant program. Tacoma will receive $303,790 to enhance their community violence intervention program. Other grantees include:
Vancouver - $107,942 to fund a crime prevention, domestic violence task force.
Puyallup - $12,968 to purchase officer safety/less lethal equipment
Kitsap County - $42,903 for training and equipment
Olympia -$25,269 for de-escalation training
Marysville -$15,768 for “stop sticks” in police vehicles
Lynnwood- $11,868 for a community engagement APP
Lakewood -$42,903 for a crime scene mapping scanner
Everett -$41,370 for equipment
Bremerton -$18,035 for the community resource unit
Bellingham -$38,736 for training in implicit bias and community policing
Additionally, Washington State received $3,644,335 in Byrne grant funding. The monies will be funneled to state and local organizations supporting a variety of initiatives including anti-gang and drug task forces, crime prevention, and officer safety.
The Byrne Grants are named in honor of New York City Police Officer Edward R. Byrne, who was killed in the line of duty on February 26, 1988. Officer Byrne was just 22 years old.
Friday 15 October 2021
Yankton Man Charged with Multiple Counts of Production of Child PornographyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Yankton, South Dakota, man has been indicted by a federal grand jury on four counts of Production of Child Pornography.
Jason Sejnoha, age 43, was indicted on October 5, 2021. He appeared before U.S. Magistrate Judge Veronica L. Duffy on October 13, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 30 years in federal prison and/or a $250,000 fine, life of supervised release, and up to $400 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between May 6, 2021, and August 12, 2021, Sejnoha knowingly used three minor females and one minor male to produce visual depictions of sexually explicit conduct, knowing that such visual depictions would be produced with materials that had been made out of state.
The charges are merely accusations and Sejnoha is presumed innocent until and unless proven guilty.
The investigation is being conducted by Homeland Security Investigations. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Sejnoha was released on bond pending trial, which has been set for December 21, 2021.
Woodbury County Man Pleads Guilty to Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine pled guilty October 12, 2021, in federal court in Sioux City.
Matthew Sandoval, 28, from Sioux City, Iowa, was convicted of conspiracy to distribute methamphetamine. At the plea hearing, Sandoval admitted that between on or about 2016 and continuing to on or about June 2021, he and others conspired to distribute over 500 grams of methamphetamine.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Sandoval remains in custody of the United States Marshal pending sentencing. Sandoval faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least five years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4059.
Follow us on Twitter @USAO_NDIA.
Wolf Point man admits assaulting man in the head with batRead the Press Release
GREAT FALLS – A Wolf Point man accused of attacking a man in the head with a bat on the Fort Peck Indian Reservation admitted to an assault charge today, Acting U.S. Attorney Leif M. Johnson said.
Harry B. Azure, 21, pleaded guilty to assault resulting in serious bodily injury. Azure faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris set sentencing for Feb. 17, 2022. Azure was detained pending further proceedings.
In court documents filed in the case, the government alleged that on Nov. 19, 2019 in Wolf Point, Azure and another individual broke through the door of the residence of the victim, identified as John Doe, struck the victim multiple times in the head with a small baseball bat and left. The victim initially was treated at a local hospital then flown to Billings because of the severity of injuries. The victim later told law enforcement that the assault occurred days after an incident involving the other individual.
Assistant U.S. Attorney Wendy A. Johnson is prosecuting the case, which was investigated by the FBI and Fort Peck Tribal Police.
XXX
USP Allenwood Inmate Charged with Possession A WeaponRead the Press Release
WILLIAMSPORT –The United States Attorney’s Office for the Middle District of Pennsylvania announced that yesterday Alfonso Algeria, age 39, an inmate at the United States Penitentiary Allenwood (USP Allenwood) was indicted by the federal grand jury for possessing a weapon in prison.
According to Acting United States Attorney Bruce D. Brandler, the indictment charges that on September 4, 2021, while an inmate at USP Allenwood, Algeria possessed an approximately 7 1/2-inch long piece of wood, sharpened to a point and wrapped with tape and cord to form a hand grip and lanyard, concealed within his rectal cavity.
This case was investigated by the federal Bureau of Prisons and the FBI. Assistant United States Attorney George J. Rocktashel is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Algeria faces a maximum term of 5 years’ imprisonment on the single count of the indictment, a fine of up to $250,000, and a maximum term of supervised release of three years. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
USP Allenwood Inmate Charged with Possessing A Weapon and Threatening A Law Enforcement OfficerRead the Press Release
WILLIAMSPORT –The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Ronald Rogers, age 31, an inmate at the United States Penitentiary Allenwood (USP Allenwood) was indicted by the federal grand jury for possessing a weapon in prison and threatening to assault and murder a law enforcement officer.
According to Acting United States Attorney Bruce D. Brandler, the two-count indictment charges that on April 13, 2021, while an inmate at USP Allenwood, Rogers possessed a piece of plastic-like material with a metal screw sharpened to a point, measuring approximately 6-inches in length. The indictment also charges Rogers with threatening to assault and murder a correctional officer following the recovery of the weapon.
This case was investigated by the federal Bureau of Prisons and the FBI. Assistant United States Attorney George J. Rocktashel is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Algeria faces a total maximum term of 15 years’ imprisonment on both counts of the indictment, a fine of up to $500,000 on both counts, and a maximum term of supervised release of three years on each count. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Two Montgomery Tax Preparers Plead Guilty for Their Roles in Filing False Tax ReturnsRead the Press Release
Montgomery, Ala. – Today, Acting United States Attorney Sandra J. Stewart and IRS-Criminal Investigation Special Agent in Charge James E. Dorsey announced that two Montgomery women, operating separate tax preparation businesses, have pleaded guilty to aiding and assisting in the preparation of false income tax returns. On October 14, 2021, Alisaya Danita Thompson-Dixon, 43, entered a guilty plea to for her role in filing false tax returns. Last month, Lashunda Deann Crittenden, 42, pleaded guilty to the same charge.
According to court records, Ms. Thompson-Dixon operated a tax preparation business under the name Magic Tax Service in Montgomery. In June of 2021, a grand jury returned an indictment against Ms. Thompson-Dixon charging her with numerous counts of aiding and assisting in the filing of false returns for clients from 2015 through 2017. During her plea hearing, Ms. Thompson-Dixon specifically admitted to assisting in filing false tax returns on at least two occasions. First, on February 15, 2016, Ms. Thompson-Dixon aided a client in a tax return that falsely claimed business income in the amount of $2,150.00 while claiming expenses in the amount of $67,107.00. Ms. Thompson-Dixon knew the client was not entitled to claim any business income or expenses and this deception resulted in a loss of $11,294.00 to the IRS. In addition, Ms. Thompson-Dixon also admitted to facilitating an illegal tax return on January 16, 2018. In similar fashion, she claimed false business revenue and expenses for a client that resulted in a tax loss of $10,499.00.
In the second case, Lashunda Deann Crittenden operated a tax preparation service located on South Court Street in Montgomery, Alabama where she prepared federal income tax returns for others. During her plea hearing, Ms. Crittenden admitted that on February 26, 2018, she electronically transmitted a return prepared by her that claimed a client incurred $8,726.00 in qualified solar electric property costs, $6,358.00 in medical and dental expenses, and $8,364.00 in gifts to charity despite knowing that the client was not entitled to claim these items for calendar year 2017. The IRS subsequently paid a larger refund to the taxpayer based on Ms. Crittenden’s misrepresentations.
“By aiding in the completion and filing of these fraudulent tax returns, both defendants stole taxpayers’ hard-earned money,” stated Acting United States Attorney Sandra J. Stewart. “I applaud the Internal Revenue Service for their efforts to identify tax fraud like this and hold the offenders accountable.” Acting U.S. Attorney Stewart also encourages all taxpayers to review their returns and confirm that they recognize the items on them. If a tax preparer refuses to let you examine your tax return before it is filed, or if you review your tax return and see a business that is not yours or expenses you do not recognize, ask for clarification or seek a second opinion from a different return preparer. For additional guidance, see the IRS fact sheet on their website at https://www.irs.gov/pub/irs-news/fs-08-10.pdf.
“Thompson-Dixon and Lashunda Crittenden knowingly manipulated taxpayers’ returns for the sole purpose of generating large refunds and preparer fees,” said James E. Dorsey, Special Agent in Charge, IRS-Criminal Investigation. “Please be advised, if you file false tax returns for others, it is illegal, and you will face the consequences.”
A sentencing hearing will be held for Ms. Thompson-Dixon and Ms. Crittenden in the coming months. At their hearings, they will be facing up to 3 years in prison for each count along with significant fines. They will also be subject to an order of restitution to the IRS after the total losses are determined by the court.
These cases were investigated by the Internal Revenue Service’s Criminal Investigations Division. Assistant United States Attorney Megan Kirkpatrick is prosecuting the cases.
Two Men Plead Guilty to Child Sex Trafficking OffensesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that JOEL LINDSAY, also known as “Joey Guapo,” 23, and JOSEPH PINA, 24, both of East Hartford, have pleaded guilty in Hartford federal court to offenses related to the sex trafficking of a minor.
According to court documents and statements made in court, in October 2019, Lindsay and Pina recruited, enticed and transported a minor victim to engage in commercial sex acts. Specifically, on October 17, 2019, Lindsay, Pina and another individual picked up the minor victim and took her to a hotel in East Windsor. At the hotel, they took photographs of the minor victim and posting her photos on a website and advertised her sexual services. Lindsay and Pina than arranged prostitution appointments for the minor victim. On that night, the minor victim earned at least $100 from prostitution appointments, all of which she gave to Lindsay.
On October 18, 2019, Lindsay and Pina posted more advertisements on the same web site and arranged prostitution appointments for the minor victim at a hotel in Windsor Locks. The following two days, Lindsay and Pina posted additional advertisements on the website and the minor victim saw prostitution customers each day. The victim again gave all of the money earned through these appointments to Lindsay.
The investigation further revealed that Lindsay and Pina engaged in sexual activity with the minor victim, even though they knew that she was under the age of 18.
Lindsay pleaded guilty today to one count of sex trafficking of a minor, an offense that carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life. He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on January 12, 2022. Lindsay, a citizen of Jamaica, has been detained since arrest on August 20, 2020.
On October 6, 2021, Pina pleaded guilty to one count of conspiracy to commit sex trafficking of a minor, and offense that carries a maximum term of imprisonment of life. He is released on a $100,000 bond while awaiting sentencing, which is scheduled for January 19, 2022.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Angel M. Krull.
Two Indicted for Drug Trafficking and Hostage TakingRead the Press Release
Assistant U. S. Attorneys Mario Peia and Alexandra F. Foster (619) 546-9706/6735
NEWS RELEASE SUMMARY – October 15, 2021
SAN DIEGO – A federal magistrate judge denied bond today for one of two Mexican nationals indicted by a federal grand jury in connection with the kidnapping and death of a 19-year-old San Diego man in May of 2020.
The defendant, Wyatt Valencia-Pacheco of Tijuana, is charged along with fugitive Jonathan Emmanuel Montellano-Mora, also from Tijuana. They were indicted on June 3, 2021, for Hostage Taking Resulting in Death, Conspiracy to Take Hostages Resulting in Death, and Intentional Killing While Engaged in Drug Trafficking. The indictment was unsealed last week.
According to the indictment, Valencia and Montellano worked with others to arrange the killing of the victim, M.A.R., as part of their methamphetamine importation and trafficking activities.
The indictment further alleges that Valencia and Montellano worked with others to kidnap, detain and threaten the victim at a location outside the United States, in order to compel the victim’s family to pay with money or methamphetamine to gain his release. The victim was ultimately killed.
At Valencia’s detention hearing today before U.S. Magistrate Judge Allison H. Goddard, the government provided greater detail as to Valencia’s alleged involvement. The government identified the victim as a 19-year-old U.S. citizen who had been arrested twice before for strapping drugs onto his body and attempting to cross into the United States through a port of entry. The victim was tortured and killed over the theft of three pounds of methamphetamine, the government told the court.
At the hearing, the government provided the following chronology of the alleged crimes:
On May 28, 2020, the victim stole three pounds of methamphetamine from a drug trafficker connected to the defendants in Tijuana. Almost immediately after the theft, Valencia started sending the victim threats over Facebook Messenger, ordering the victim to return the drugs immediately or pay them $2,000. In Spanish, Valencia told the victim that he “fucked up” and now had to take responsibility, because “they only gave us two hours to pay for that shit.”
The victim asked for more time or a smaller payment, to which Valencia responded: “I don’t know how you’re going to do it, but I want it today.” The victim asked for Valencia to trust him and promised to pay later. Valencia replied, “I don’t give a fuck. You’ll see how I make you pay today.” Valencia even told others that he planned to kidnap the victim.
On May 29, 2020, approximately four hours after the victim was supposed to have crossed the drugs, Valencia was in conversation with a co-conspirator on Facebook Messenger, assuring the co-conspirator that he (Valencia) was in touch with the victim, and they would find him. Valencia assured his co-conspirator that the victim was scared.
About eleven hours later, at a little after 11 a.m. that same day, Valencia told a girlfriend that he was angry, because a guy stole “work” from him, and Valencia was looking for the guy. When asked why he was looking for the guy, Valencia answered, “because I’m going to kill him.” Valencia said he gave the guy until 5 p.m. to return and pay for the “work,” or else Valencia was “going to send people to his house … here and there … here I’m going to shoot it up.”
About an hour later, Valencia communicated with a co-conspirator to plan how best to kidnap the victim.
At 11:57 p.m. on May 29, 2020, three males forcibly took the victim from a hotel in Tijuana at gunpoint. The event was captured by hotel surveillance cameras. One of the kidnappers was wielding a gun, which he used to beat the victim.
In the early morning hours of May 30, 2020, the kidnappers began contacting the victim’s mother and stepfather to demand money (sometimes $2,000, other times $3,000) or methamphetamine. The hostage takers permitted the victim’s family to see him through FaceTime, as proof of life. The victim appeared bloodied and beaten.
During this same time, a co-conspirator asked Valencia, “Hey, dude, give us ideas where we can get him signed,” that is, where to kill the victim.
After a few minutes, and after insisting that he did not want to get further involved, Valencia answered the previous question about “where can we get him signed.” Valencia offered, “Smoke the guy by the dam, dude. Or by Cerro Colorado. … Or in the canal. It’s around the corner.” The co-conspirator asked, “Which canal?” To which Valencia responded, “The one by La Rapida (laughs)”
The family’s last contact with the victim occurred on May 30, 2020, at 12:30 p.m. No one has heard from or seen the victim since that time.
At the close of the hearing, U.S. Magistrate Judge Goddard detained Valencia, finding that there were no conditions of release which would guarantee his return to court. She detained the defendant based on the nature and circumstances of the criminal activity, the lengthy period of incarceration which the defendant faced, the defendant’s use of weapons, the fact that he would be subject to immigration removal to Mexico if he were released from custody, his significant ties outside the United States, and the weight of the evidence against him.
“The narcotic netherworld is full of extreme danger and tragedy, and this case is no exception,” said Acting U.S. Attorney Randy Grossman. “A misguided young man tangled with the wrong people and paid a terrible price, and now his family lives with the unspeakable horror of their loss. We will always seek justice for victims of drug-related violence that destroys families, communities and futures.” Grossman thanked prosecutors Mario Peia and Alexandra Foster, as well as the investigating FBI agents, for their excellent work on this case.
“The FBI will vigorously pursue justice for U.S. citizens who fall victim to violence regardless of where the crime occurs,” said FBI Special Agent in Charge Suzanne Turner. “The victim was killed over a $2,000 drug debt. May these charges serve as a warning to those who think violence against U.S. citizens committed outside of the United States exempts them from prosecution here; It does not.”
Valencia is next in court on December 16, 2021, at 9 a.m. before U.S. District Court Judge William Q. Hayes. Montellano has not yet been apprehended.
DEFENDANTS Case Number 21CR1683-WQH
Wyatt Valencia-Pacheco,
aka “JC HF,” aka “Jacob,” aka “Jacob Herrera” Age: 21 Tijuana
Jonathan Emmanuel Montellano-Mora,
aka “Che Cho” aka “Chori,” Age: 22 Tijuana
SUMMARY OF CHARGE
21 USC Sec. 848(e) (1) (A) - Intentional Killing While Engaged in Drug Trafficking
Maximum Penalty: Life or Death Penalty; Mandatory Minimum: Twenty years in prison
18 USC Sec. 1203 - Hostage Taking Resulting in Death
Maximum Penalty: Life or Death Penalty; Mandatory Minimum: Life in prison
18 USC Sec. 1203 - Conspiracy to Take Hostages Resulting in Death
Maximum Penalty: Life or Death Penalty; Mandatory Minimum: Life in prison
INVESTIGATING AGENCY
Federal Bureau of Investigation
Tulsa Man Pleads Guilty to Possessing Firearms in Furtherance of a Drug Trafficking CrimeRead the Press Release
A Tulsa man who possessed a revolver and shotgun to protect himself and the marijuana he was illegally distributing pleaded guilty Thursday in federal court, announced Acting U.S. Attorney Clint Johnson.
LeMorris Walton Jr., 33, pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime. U.S. District Judge Claire V. Eagan will sentence Walton on Feb. 15, 2022.
“Violating federal firearms laws has consequences. The prosecution of these cases reduces violent crime,” said Acting U.S. Attorney Clint Johnson. “This office is committed to investigating and prosecuting individuals who illegally buy, sell, use, or possess firearms.”
Walton admitted that on Nov. 9, 2020, he possessed firearms at his residence in Tulsa for the purpose of protecting and furthering his marijuana distribution operation. The defendant possessed a Herman Weihrauch .38 special revolver, a Maverick 12 gauge shotgun, and 33 rounds of ammunition. Walton is also a felon and is prohibited from possessing firearms and ammunition.
The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorneys Thomas E. Buscemi and Mark R. Morgan are prosecuting the case.
This case is being prosecuted as part of the 2150 Initiative. The initiative is a collaborative effort between the U.S. Attorney’s Office for the Northern District of Oklahoma, Tulsa Police Department, ATF, and all other local, state, tribal and federal law enforcement partners to combat violent crime by focusing efforts on prohibited persons in possession of firearms as well as straw purchasers.
Tompkins County Man Charged with Sexually Exploiting a ChildRead the Press Release
SYRACUSE, NEW YORK – Remanu Phillips, 31, of Ithaca New York, appeared in federal court yesterday on charges that he sexually exploited a child.
The announcement was made by United States Attorney Carla B. Freedman, Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and New York State Police (NYSP) Superintendent Kevin P. Bruen.
A criminal complaint filed in United States District Court alleges that in June 2019 Phillips produced 3 sexually explicit videos of a 10-year-old child. United States Magistrate Judge Miroslav Lovric ordered Phillips detained pending a hearing on October 18, 2021. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted, Phillips faces a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 30 years, a maximum fine of $250,000, and a term of supervised release of between 5 years and life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. He would also be required to register as a sex offender.
This case is being investigated by the FBI Syracuse Mid-State Child Exploitation Task Force, comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI), with assistance from the Tompkins County Sheriff’s office. The case is being prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown as a part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Syracuse Man Pleads Guilty to Unlawfully Possessing and Selling Firearms and AmmunitionRead the Press Release
SYRACUSE, NEW YORK – Jovaun Clark, age 45, of Syracuse, pled guilty yesterday to possessing unregistered machine guns and short-barreled rifles, possessing firearms and ammunition while a convicted felon, and selling firearms and ammunition to a convicted felon, announced United States Attorney Carla B. Freedman, John B. DeVito, Special Agent in Charge of the New York Field Division of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Chief Kenton Buckner, City of Syracuse Police Department, and Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division.
As part of his guilty plea, Clark admitted to selling seven firearms and numerous rounds of ammunition to a confidential informant during four meetings in January 2019. Five of the firearms were “ghost guns” bearing no serial number, two were handguns that had been modified to operate as machine guns, and two were short-barreled rifles. None of the machine guns and short-barreled rifles were registered to the defendant as required by federal law. In 1999, the defendant was convicted in Onondaga County Court of Criminal Possession of a Controlled Substance in the Third Degree, a felony offense. The confidential informant to whom Clark sold the firearms and ammunition also was a convicted felon.
Sentencing is scheduled for February 10, 2022, before United States District Judge David N. Hurd in Utica, New York, at which time Clark faces up to 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. The Court has discretion to order the sentences on separate counts to be served concurrently or consecutively in some circumstances. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Syracuse Police Department, and the United States Drug Enforcement Administration (DEA), and is being prosecuted by Assistant U.S. Attorneys Thomas Sutcliffe and Andrew Beaty.
Sudbury Man Arrested for Child Pornography OffensesRead the Press Release
BOSTON – A Sudbury man was arrested today on child pornography charges.
Tyson Tu, 49, was indicted on one count of receipt of child pornography and one count of possession of child pornography. Tu will make an initial appearance in federal court in Boston this afternoon.
According to the charging document, from approximately Feb. 20, 2021 through April 13, 2021, Tu received child pornography. Tu also allegedly possessed child pornography on or about April 13, 2021.
The charge of receipt of child pornography provides for a sentence of at least five years and up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of $250,000. The charge of possession of child pornography provides for a sentence of up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the United States Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; and Sudbury Police Chief Scott Nix made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Mendell’s Major Crimes Unit is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identity and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Suburban Chicago Man Sentenced to More Than Three Years in Federal Prison for Misappropriating Funds from Non-Profit OrganizationRead the Press Release
CHICAGO — A suburban Chicago man has been sentenced to three and a half years in federal prison for fraudulently misappropriating hundreds of thousands of dollars from a non-profit organization for physically and psychologically challenged children.
From 2011 to 2016, STUART NITZKIN worked as Executive Director of an Illinois-based non-profit organization whose mission was the rehabilitation of physically and psychologically challenged children. During that time, Nitzkin knowingly submitted to the organization invoices and receipts for payment and reimbursement of expenses that Nitzkin claimed were incurred on behalf of the organization. In reality, Nitzkin knew the expenses were actually incurred by Nitzkin for his and others’ personal benefit.
The expenses included luxury vacations for Nitzkin and his family to Nevada, Florida, Ireland, and Puerto Rico, personal golfing expenses, tickets to professional sporting events, personal medical expenses, real estate taxes for his family residence, health club dues, and household goods. Nitzkin also pocketed cash from the organization’s fundraising events and took money from the charity’s bank accounts through ATM and other withdrawals, all for his personal benefit.
Nitzkin, 45, of Deerfield, Ill., pleaded guilty earlier this year to a wire fraud charge. In addition to the 42-month prison sentence, U.S. District Judge Sara L. Ellis on Thursday fined Nitzkin $150,000 and ordered him to pay the remaining restitution of $516,400.
The sentence 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 government is represented by Assistant U.S. Attorney Sheri H. Mecklenburg.
St. Petersburg Man Pleads Guilty to 2014 Robbery and 2018 Murder Relating to Nightclub Drug ConspiracyRead the Press Release
Tampa, Florida – Corey Small (43, St. Petersburg) has pleaded guilty to interfering with commerce by robbery and to using and brandishing a firearm in furtherance of a crime of violence, as well as to conspiring to distribute cocaine and cocaine base, possessing a firearm after being convicted of a felony offense, and possessing, brandishing, and discharging a firearm in furtherance of a drug trafficking crime, causing death by murder. He faces a maximum penalty of life in federal prison.
Regarding the robbery and the use and brandishing offenses listed above, according to court documents, in 2014 Small robbed a dry-cleaning business in St. Petersburg. During the robbery, he pointed a gun at the clerk and stole $51.41.
Regarding the three other offenses listed above, which are unrelated to the 2014 crimes, court documents show that in 2018 Small conspired with an employee of a night club to sell cocaine for him. Later that year, the victim, who was a friend of the nightclub employee, attempted to persuade the employee to leave the club and stop selling drugs for Small. In response to this attempted interference with his drug business, Small argued with the victim and then shot him four times, killing him. Small, a previously convicted felon, was later arrested and found to be in possession of a firearm.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pinellas Park Police Department, the St. Petersburg Police Department, and the Pinellas County Sheriff’s Office.
This case is being prosecuted by Assistant United States Attorney Natalie Hirt Adams.
Springfield Man and Woman Charged with Bank RobberyRead the Press Release
SPRINGFIELD, Ill. – Two Springfield, Illinois, residents - Heather Horrighs, 42, and Theodis Parnell, 50 – were arrested on October 14, 2021, for allegedly robbing the Alliance Community Bank on September 13, 2021.
Horrighs and Parnell were charged via a criminal complaint in the United States District Court for the Central District of Illinois. Both defendants appeared in federal court in Springfield today in front of Magistrate Judge Tom Schanzle-Haskins, at which time the criminal complaint against them was unsealed.
According to the complaint affidavit, Horrighs entered the bank carrying a box with a note attached to it. The note stated that the box contained a bomb and demanded that bank employees hand over money. Parnell is alleged to have acted as an accomplice and getaway driver in the robbery.
Both defendants remain in the temporary custody of the United States Marshals Service pending detention hearings that are set for next week.
If convicted, the maximum statutory penalties for the alleged crimes charged are up to 20 years in prison and a $250,000 fine.
The United States has thirty days to present the case to a grand jury, which will decide if there is probable cause. Members of the public are reminded that a complaint is merely an accusation; the defendant is presumed innocent unless proven guilty.
Agencies participating in the investigation include the Federal Bureau of Investigation, Springfield Office; the United States Marshal’s Service; the Sangamon County Sheriff’s Office; the Springfield Police Department; the Sherman Police Department; and the Chatham Police Department. Assistant U.S. Attorney Matthew Weir is representing the government in the prosecution.
Six Individuals in Hawaii Charged with Conspiring to Defraud the IRS and Other Fraud OffensesRead the Press Release
Three individuals were arrested this week in the District of Hawaii on conspiracy to defraud the IRS and other fraud charges.
Marciaminajuanequita Dumlao, Elvah Miranda and Daniel Miranda were arrested and made their initial appearances before U.S. Magistrate Judge Wes Reber Porter of the U.S. District Court for the District of Hawaii. A federal grand jury in Honolulu, Hawaii, returned a 45-count superseding indictment on Sept. 9 charging Rosemarie Lastimado-Dradi, Dumlao, Elvah Miranda, Daniel Miranda, Lazerrick Lawrence and Danitta Ross Morton with conspiring to defraud the United States. Additionally, Lastimado-Dradi was charged with aiding and assisting in the preparation of a false tax return, and Daniel and Elvah Miranda and Dumlao were charged with filing false tax returns and with making false statements under oath in a bankruptcy proceeding. The superseding indictment also charged Lastimado-Dradi, Dumlao and Elvah Miranda with money laundering.
According to the superseding indictment, from at least January 2015 through September 2018, the defendants conspired to defraud the IRS. As part of the tax fraud scheme, the conspirators allegedly filed fraudulent individual tax returns and other tax documents that reported false withholdings from mortgage lenders and then claimed substantial refunds from the IRS. After processing the false returns, the IRS allegedly issued refunds totaling over $1 million. To prevent the IRS from recovering the fraudulently obtained refunds, the conspirators allegedly created trusts, opened new bank accounts in the name of business entities and the trusts, and transferred the criminal proceeds between the accounts to conceal the funds from the IRS. Lawrence also allegedly filed retaliatory liens on behalf of Dumlao and the Mirandas against an IRS employee assigned to recover the fraudulently obtained refunds. The superseding indictment further alleges that Lastimado-Dradi, Dumlao and Elvah Miranda laundered the fraudulently obtained refunds through a series of bank transactions.
Lawrence and Ross Morton were arrested on Sept. 15 and were arraigned on Sept. 23 before U.S. Magistrate Judge Rom A. Trader of the U.S. District Court for the District of Hawaii.
If convicted, each of the six individuals charged face a maximum sentence of five years for conspiracy to defraud the United States. Lastimado-Dradi, Dumlao and Elvah Miranda each face a maximum sentence of 10 years in prison for each count of money laundering. The Mirandas and Dumlao each face a maximum sentence of three years for each count of filing a false tax return and a maximum sentence of five years for each count of making false statements under oath in a bankruptcy proceeding. Lastimado-Dradi faces a maximum sentence of three years for each count of aiding and assisting in the preparation of false tax returns. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Judith A. Philips for the District of Hawaii made the announcement.
The IRS-Criminal Investigation is investigating the case.
Trial Attorneys Sarah A. Kiewlicz and Valerie G. Preiss of the Tax Division and Assistant U.S. Attorney Gregg Paris Yates of the U.S. Attorney’s Office for the District of Hawaii are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Six Defendants Charged with Conspiring to Defraud the IRS and Other Fraud OffensesRead the Press Release
HONOLULU – Three defendants were arrested this week in Hawaii on conspiracy to defraud the IRS and other fraud charges. Marciaminajuanequita Dumlao, Elvah Miranda, and Daniel Miranda were arrested and made their initial appearances before U.S. Magistrate Judge Wes Reber Porter of the U.S. District Court for the District of Hawaii. A federal grand jury in Honolulu, Hawaii, returned a 45-count superseding indictment on September 9, 2021 charging Rosemarie Lastimado-Dradi, Dumlao, Elvah Miranda, Daniel Miranda, Lazerrick Lawrence, and Danitta Ross Morton with conspiring to defraud the United States. Additionally, Lastimado-Dradi was charged with aiding and assisting in the preparation of a false tax return, and Daniel and Elvah Miranda and Dumlao were charged with filing false tax returns and with making false statements under oath in a bankruptcy proceeding. The superseding indictment also charged Lastimado-Dradi, Dumlao, and Elvah Miranda with money laundering.
According to the superseding indictment, from at least January 2015 through September 2018, the defendants conspired to defraud the Internal Revenue Service (IRS). As part of the tax fraud scheme, the conspirators allegedly filed fraudulent individual tax returns and other tax documents that reported false withholdings from mortgage lenders and then claimed substantial refunds from the IRS. After processing the false returns, the IRS allegedly issued refunds totaling over $1 million. To prevent the IRS from recovering the fraudulently obtained refunds, the conspirators allegedly created trusts, opened new bank accounts in the name of business entities and the trusts, and transferred the criminal proceeds between the accounts to conceal the funds from the IRS. Lawrence also allegedly filed retaliatory liens on behalf of Dumlao and the Mirandas against an IRS employee assigned to recover the fraudulently obtained refunds. The superseding indictment further alleges that Lastimado-Dradi, Dumlao, and Elvah Miranda laundered the fraudulently obtained refunds through a series of bank transactions.
Lawrence and Ross Morton were arrested on September 15 and were arraigned on September 23 before U.S. Magistrate Judge Rom A. Trader of the U.S. District Court for the District of Hawaii.
If convicted, each of the six individuals charged face a maximum sentence of five years for conspiracy to defraud the United States. Lastimado-Dradi, Dumlao, and Elvah Miranda each face a maximum sentence of ten years in prison for each count of money laundering. The Mirandas and Dumlao each face a maximum sentence of three years for each count of filing a false tax return and a maximum sentence of five years for each count of making false statements under oath in a bankruptcy proceeding. Dradi faces a maximum sentence of three years for each count of aiding and assisting in the preparation of false tax returns. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Judith A. Philips for the District of Hawaii made the announcement.
The IRS-Criminal Investigation is investigating the case.
Trial Attorneys Sarah A. Kiewlicz and Valerie G. Preiss of the Tax Division and Assistant U.S. Attorney Gregg Paris Yates of the U.S. Attorney’s Office are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Sioux Falls Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Eugene Leon Featherman, age 33, was indicted on October 5, 2021. He appeared before U.S. Magistrate Judge Mark A. Moreno on October 13, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, mandatory minimum five years of supervised release, up to life, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between July 19, 2021, and September 7, 2021, in the District of South Dakota, Featherman a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction under federal law, knowingly failed to register and update his registration.
The charge is merely an accusation and Featherman is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Abby Roesler is prosecuting the case.
Featherman was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Sioux Falls Couple Sentenced for Meth Trafficking ConspiracyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Sioux Falls, South Dakota, man and a Sioux Falls, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance were sentenced by U.S. District Judge Karen E. Schreier.
Lanny Leif Vensand, Jr., age 58, was sentenced on September 27, 2021, to 235 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Robin Jo Vensand, a/k/a Robin Jo Graff, age 57, was sentenced on October 13, 2021, to 262 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
The Vensands were indicted by a federal grand jury on January 12, 2021. Lanny pled guilty on June 18, 2021, and Robin pled guilty on June 21, 2021.
The convictions stemmed from incidents beginning on an unknown date and continuing until on or about January 12, 2021, when the Vensands knowingly and intentionally combined, conspired, confederated, and agreed together and with others, to distribute 500 grams or more of a mixture and substance containing methamphetamine, which is a Schedule II controlled substance.
They voluntarily and intentionally joined in an agreement or understanding to distribute methamphetamine. At the time they joined in the agreement or understanding, they both knew the purpose of that agreement or understanding.
They purchased over 500 grams of methamphetamine from co-conspirators, which they sold to other co-conspirators. They were aware that the methamphetamine supplied would be distributed to drug customers in South Dakota and elsewhere.
This case was investigated by the Sioux Falls Area Drug Task Force and the Drug Enforcement Administration. Special Assistant U.S. Attorney Mark Hodges prosecuted the case.
Lanny Vensand and Robin Vensand were immediately turned over to the custody of the U.S. Marshals Service.
Recidivist Maritime Drug Trafficker Sentenced to 200 Months in Prison for Operating a Semi-Submersible with 4,400 pounds of CocaineRead the Press Release
Special Assistant U.S. Attorney Nicole Bredariol (619) 546-8419 and Assistant U.S. Attorney Joshua Mellor (619) 546-9733
NEWS RELEASE SUMMARY – October 15, 2021
SAN DIEGO – Jose Rosario Segura Balentierra, a Colombian national interdicted by the United States Coast Guard on a semi-submersible vessel containing approximately 2,000 kilograms (4,4000 pounds) of cocaine, was sentenced on Tuesday in federal court to 200 months in prison for operating a semi-submersible vessel on the high seas twice in less than five years.
Balentierra was interdicted by United States Coast Guard Cutter BERTHOLF on a semi-submersible vessel with his three co-defendants on August 14, 2020, over 500 nautical miles from Central America.
The Defendants on the semi-submersible vessel failed to stop when ordered by the Coast Guard. The Coast Guard first tried warning shots, and then used disabling fire, shooting at the engines of the vessel to try to get the defendants to stop. When even this failed, one of the Coast Guard boarding officers jumped onto the moving vessel, took control of the engines, and removed the fuel lines to finally stop the vessel.
The Coast Guard observed two to three feet of water in the bottom of the semi-submersible vessel, indicating the defendants attempted to scuttle or sink the vessel to evade capture and seizure of its cargo. The semi-submersible vessel itself was stuffed with packages of cocaine, totaling over 2,000 kilograms (4,400 pounds) and worth over $35 million.
Balentierra was previously convicted in 2016 in the Southern District of Florida for Conspiracy to Operate and Embark on a Semi-Submersible Vessel Without Nationality with Intent to Evade Detection, and Operating and Embarking on a Semi-Submersible Vessel Without Nationality with Intent to Evade Detection. Similarly, in that case he was interdicted by the U.S. Coast Guard on a semi-submersible vessel approximately 300 nautical miles from Mexico. That semi-submersible vessel rapidly sunk to the bottom of the ocean floor and no drugs were recovered. He was sentenced to 41 months in custody and three years of supervised release. After serving his sentence he was deported to his home country of Colombia. In 2020, just over eighteen months after returning to Colombia, he engaged in this almost identical offense.
On July 14, 2021, Balentierra pleaded guilty to Possession of Cocaine with Intent to Distribute on Board a Vessel in violation of 46 U.S.C. § 70503 and Operation of a Semi-Submersible Vessel without Nationality in violation of 18 U.S.C. § 2285. On Tuesday he was sentenced to 182 months in custody and five years of supervised release on each of the charges, to run concurrently. He was also sentenced to 18 months in custody, to run consecutively, for violating the terms of his 2016 supervised release by engaging in trafficking cocaine. He was sentenced to a total custodial term of 200 months.
“The Pacific Ocean is not a freeway for drug traffickers,” said Acting U.S. Attorney Randy Grossman. “The sentence issued in this case sends a clear message that repeated maritime drug smuggling will not be tolerated in the Southern District of California.” Grossman thanked prosecutors Nicole Bredariol and Josh Mellor and the U.S. Coast Guard and San Diego Strike Force for their excellent work on this case.
“Due to the dedicated actions of the Coast Guard Cutter Bertholf’s commanding officer and crew, these smugglers have been brought to justice,” said Rear Adm. Brian Penoyer, the Eleventh Coast Guard District commander. “The Coast Guard kept $35 million worth of drugs off our streets, and we will continue to patrol the maritime domain to fight against the trafficking of narcotics.”
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
DEFENDANT Case Number 20cr2671-LAB
Jose Rosario Segura Balentierra Age: 35 Colombia
SUMMARY OF CHARGES
Possession with Intent to Distribute Cocaine Onboard a Vessel Subject to the Jurisdiction of the United States – Title 46, U.S.C., Section 70503
Maximum Penalty: Life in prison and $10 million fine
Operation of a Semi-Submersible Vessel without Nationality, with Intent to Evade Detection –
Title 18, U.S.C., Section 2285
Maximum Penalty: Fifteen years in prison and $250,000 fine
AGENCY
United States Coast Guard
San Diego Strike Force
Organized Crime and Drug Enforcement Taskforce (OCDETF)Reagor Dykes Owner Found Guilty of Lying to BankRead the Press Release
Reagor Dykes Auto Group owner Bart Reagor was convicted today of lying to a bank about his company's prospects, announced Acting U.S. Attorney for the Northern District of Texas Chad Meacham.
After 12 hours of deliberation, a federal jury found Bart Wade Reagor, 55, guilty of making false statements to a bank insured by the FDIC. Mr. Reagor, whose trial lasted four days, now faces up to 30 years in federal prison.
“Bart Reagor’s greed and insatiable need to flaunt his wealth led him to lie to a federally-insured bank and ultimately resulted in that bank suffering a loss of over $20 million dollars.” said Acting U.S. Attorney Chad Meacham. “He’s now bracing for a possibly decades-long sentence. The Department of Justice will not permit this kind of abuse of our nation’s financial institutions and the funds of its hard-working depositors.”
“This multi-year investigation was extremely complicated and required dedicated complex financial crimes resources and today’s outcome demonstrates the government’s commitment to protecting the best interests of the American people,” said Dallas FBI Special Agent in Charge Matthew J. DeSarno. “The resulting loss caused by false statements has the potential to harm the U.S. economy and investor confidence, and we will continue to work alongside the U.S. Attorney’s Office and our law enforcement partners to ensure that justice is served.”
According to evidence presented at trial, in 2017, Mr. Reagor told International Bank of Commerce (IBC) that the auto group was experiencing tremendous growth and expected to go public. He claimed the company needed a cash infusion to sustain its upward trajectory and maintain a cash cushion for each of the dealerships to operate.
Relying on that information, IBC granted Reagor Dykes a $10 million working capital loan, which was distributed in two tranches: $5,000,000 in July 2017 and another $5,000,000 in February 2018, to be disbursed to the various RDAG entities.
Instead of investing all of the money into the business as he’d said he would, Mr. Reagor diverted more than $1.7 million to his personal account at Prosperity Bank – $766,277 in July 2017, following IBC’s disbursement of the first tranche of money, and $1 million in February 2018, following IBC’s disbursement of the second tranche of money.
Reagor Dykes’ CFO, Shane Smith, testified that Mr. Reagor and his partner, Rick Dykes, routinely drew money out of the business. Over a 10-year-period, Mr. Smith estimated, the pair withdrew more than $25 million.
While the jury convicted Mr. Reagor of lying to an FDIC-insured bank, they acquitted him of bank fraud. His sentencing date has not yet been set.
Fifteen of Mr. Reagor’s employees previously pleaded guilty to various crimes involving dummy flooring and check kitting at Reagor Dykes, including:
- Shane Andrew Smith, Reagor Dykes’ CEO, who pleaded guilty in June 2019 to conspiracy to commit wire fraud
- Diana Urias, an office manager in Reagor Dykes’ used car mall in Levelland, who pleaded guilty in September 2019 to conspiracy to commit bank fraud.
- Sheila Miller, an RDAG group controller, who pleaded guilty in September 2019 to conspiracy to commit bank fraud
- Paige Johnston, an office manager in Reagor Dykes’ Chevrolet store in Floydada, who pleaded guilty in October 2019 to conspiracy to commit wire fraud
- Lindsay Williams, and RDAG group accounting manager, who pleaded guilty in October 2019 to conspiracy to commit bank fraud
- Sherri Wood, an office manager at Reagor Dykes’ Ford store in Plainview, who pleaded guilty in October 2019 to conspiracy to commit wire fraud
- Pepper Rickman, an accounting controller at Reagor Dykes’ Toyota store in Plainview, who pleaded guilty in October 2019 to conspiracy to commit wire fraud
- Brad Fansler, an RDAG group administrative director, who pleaded guilty in November 2019 to conspiracy to commit wire fraud
- Ashley Dunn, executive assistant to the CEO, who pleaded guilty in December 2019 to conspiracy to commit bank fraud
- Whitney Maldonado, an office manager at Reagor Dykes’ Mitsubishi store in Lubbock, who pleaded guilty in December 2019 to conspiracy to commit wire fraud
- Elaina Cabral, an office manager at Reagor Dykes’ Toyota store in Plainview, who pleaded guilty in December 2019 to conspiracy to commit wire fraud-
- Mistry Canady, an office manager at Reagor Dykes’ Ford store in Lamesa, who pleaded guilty in January 2020 to conspiracy to commit wire fraud
- Andrea Kate Phillips, an office manager at Reagor Dykes’ Ford store in Plainview, who pleaded guilty in February 2020 to misprision of a felony
- Wesley Neel, RDAG Safety & Compliance Manager, who pleaded guilty in March 2020 to conspiracy to commit wire fraud
- Steven Reinhart, RDAG Legal Compliance Director, who pleaded guilty in February 2021 to misprision of a felony
The Federal Bureau of Investigation’s Dallas Field Office and Internal Revenue Services - Criminal Investigation Division conducted the investigation. Assistant U.S. Attorneys Joshua Frausto, Jeffrey Haag, and Amy Burch are prosecuting the case.
Readout of Roundtable with Deputy Attorney General Lisa O. Monaco, Associate Attorney General Vanita Gupta and State and Local Law Enforcement LeadersRead the Press Release
In honor of Police Week, Deputy Attorney General Lisa O. Monaco and Associate Attorney General Vanita Gupta hosted a roundtable discussion Thursday with various leaders from state and local law enforcement to discuss the importance of health and wellness.
Deputy Attorney General Monaco opened the discussion by thanking everyone for their partnership in this area and reiterating the department’s commitment to the health and wellness of those in law enforcement. Associate Attorney General Gupta acknowledged how the weight of the pandemic has been borne by so many communities, including first responders and law enforcement professionals. Throughout the discussion, the department’s leadership emphasized the importance of having meaningful and honest conversations about mental health and meeting the needs of those who work and serve our communities under tremendous stress. They described some of the heartrending trends of officer suicide, and recognized the tireless work of those in attendance to address officer wellness.
Moderating the discussion was Community Oriented Policing Services (COPS Office) Acting Director Robert Chapman, who spoke about the office’s commitment to engaging the law enforcement community in order to better understand their needs. He also noted that the COPS Office announced $7 million in mental health and wellness grant funding for law enforcement. Those in attendance also shared recommendations on ways the department could better support law enforcement on these issues.
Associate Deputy Director Vince Davenport of the department’s Bureau of Justice Assistance (BJA) spoke about BJA’s commitment to funding, training and supporting law enforcement across health and wellness topics. For instance, he discussed the recent release of BJA’s COVID-19 toolkit for law enforcement.
Themes throughout the hour-long discussion ranged from the impact that COVID-19 has had on law enforcement and the need to fund mental health and wellness programs for not just sworn officers but professional staff and prosecutors, as well; to the need for investment in long-term sustainable care, such as counseling and therapy, to providing better training specific to mental and physical health to leadership. Deputy Attorney General Monaco and Associate Attorney General Gupta closed by emphasizing that officer wellness is a top priority across the federal government and pledged the department’s full support to improving the wellbeing of law enforcement professionals, their loved ones and the communities they serve.
Rapid City Man Indicted on Child Pornography ChargesRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Receipt of Child Pornography and Possession of Child Pornography.
Nathan David Hankins, age 28, was indicted on December 17, 2019. He appeared before U.S. Magistrate Judge Daneta Wollmann on October 1, 2021, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is a mandatory minimum of five up to 20 years in federal prison and/or a $250,000 fine, up to lifetime supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Hankins receiving and possessing child pornography between August 2019 and December 2019, at Rapid City. The charges are merely an accusation and Hankins is presumed innocent until and unless proven guilty.
The investigation is a joint effort between Homeland Security Investigations, the South Dakota Division of Criminal Investigation, the Rapid City Police Department, and the Pennington County Sheriff’s office. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Hankins was remanded to the custody of the U.S. Marshals Service pending trial.
Raeford Certified Nursing Assistant Sentenced for Elder FraudRead the Press Release
Raleigh, N.C. – A Raeford, NC woman was sentenced today to 12 months and a day imprisonment and ordered to pay $90,003 in restitution for committing wire fraud involving an elderly veteran in her care. On July 6, 2021, McNeill pled guilty to the charge.
According to court documents, Tracey McNeill, 51 years old, between February 2015 and February 2017, fraudulently obtained VA and OPM benefits by executing a power of attorney (POA) over a disabled veteran, W.R., who served in the U.S. Army, and worked for the U.S. Postal Service for 41 years. The investigation revealed that McNeill arranged for the victim, who had dementia, to move into her home in February 2015, and then directed the VA and OPM to deposit W.R’s benefits into McNeill’s bank account between April, 2015, and December 2016. W.R. passed away on December 6, 2016. In total, OPM deposited $61,318, and the VA deposited $11,151 into her account. A financial analysis showed that most of the funds were spent on McNeill’s personal expenses, including rent, utilities, credit card payments, and personal purchases. Further, McNeill completed Beneficiary forms listing herself as the beneficiary of the victim’s retirement and life insurance benefits. OPM disbursed W.R.’s life insurance proceeds in the amount of $17,533 to McNeill.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by United States District Judge James C. Dever, III. The Department of Veterans Affairs Office of Inspector General (VA-OIG) and the U.S. Office of Personnel Management’s Office of Inspector General (OPM-OIG) assisted in this investigation. Assistant U.S. Attorney Ethan Ontjes is prosecuting the case.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-cr-000474-D.
Prior Federal Felon Convicted on Armed Robbery Charges of Publix SupermarketRead the Press Release
PENSACOLA, FLORIDA – Nathaniel O. Cox, 30, was found guilty by a federal jury on Thursday of Hobbs Act robbery and brandishing a Kel-Tec SUB-2000 assault rifle during the commission of a crime of violence, announced Acting United States Attorney Jason R. Coody. Cox was previously convicted of a similar crime in the Middle District of Georgia in 2015; for which he was sentenced to the Federal Bureau of Prisons, having been released in May 2020.
Trial evidence revealed that on the evening of October 22, 2020, Cox entered the Publix supermarket located at 5998 Mobile Highway in Pensacola, Florida, where he confronted a store manager and another employee, warning that he was armed and there to rob the store. Cox then instructed them to take him to the money room. Once inside, Cox brandished his semi-automatic rifle and instructed the two employees, along with a third employee who was inside the room, to gather the money and place it in his backpack. The employees were then ordered to lay on top of each other and to count out loud or they would be shot. Cox then fled the supermarket with the stolen United States currency. The Escambia County Sheriff’s Office was the first to respond to and investigate the crime scene. Working in conjunction with the Bureau of Alcohol, Tobacco, Firearms, and Explosives, law enforcement officers were able to locate Cox at the international airport in Jacksonville, Florida, after he fled Pensacola, where he was taken into custody without incident. Law enforcement also recovered the assault rifle used to commit the robbery.
“The investigation and prosecution of violence crime – in this case by an armed repeat offender – is central to our mission to protect the public,” stated Acting U.S. Attorney Coody. “As a result of the collaboration and outstanding investigative work of our law enforcement partners at the Escambia County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, this violent, armed robber has been adjudicated guilty and will be sentenced for his criminal conduct.”
“A priority for ATF is reducing violent crime and protecting the public. Through collaborative efforts with our local law enforcement partner’s, we were able to capture this dangerous felon and prevent him from any further threats to our communities. This prosecution demonstrates that working jointly with our local partners makes the communities safer,” said ATF Special Agent in Charge Craig W. Saier.
“We are pleased that our working relationship with our federal partners led to the arrest and conviction of Mr. Cox. This is another example of local law enforcement and federal agencies coming together to serve and protect our community,” said Escambia County Chief Deputy Tommi Lyter
This conviction was the result of a joint investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Escambia County Sheriff’s Office. Assistant United States Attorneys David L. Goldberg and Jennifer H. Callahan prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders works 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.
As part of its PSN strategy, the United States Attorney’s Office is encouraging everyone to lock their car doors, particularly at night. Burglaries from unlocked automobiles are a significant source of guns for criminals in the Northern District of Florida. Please do your part and protect yourself by locking your car doors.
Cox’s sentencing hearing is scheduled for December 21, 2021, at 10:00 am at the United States Courthouse in Pensacola before the Honorable United States District Judge M. Casey Rodgers. Due to a prior federal violent crime conviction, Cox faces a mandatory minimum 25 years’ imprisonment on the charges.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Possessing over a Kilogram of Meth and Guns Leads to More Than Two Decades in Federal PrisonRead the Press Release
Taylor James Kruckenberg, age 29, from Waterloo, Iowa, received the prison term after an April 15, 2021 guilty plea to conspiracy to distribute a controlled substance and being a felon in possession of a firearm.
In a plea agreement, Kruckenberg admitted that in February 2020, law enforcement officers searched Kruckenberg’s car and recovered methamphetamine, $7,000, and a handgun. On the same date, officers recovered over 1,600 grams of methamphetamine and a loaded shotgun from his residence. At sentencing, the court found that Kruckenberg possessed the firearms in connection with his drug trafficking. Kruckenberg had previous felony convictions for possession of a firearm as a felon, trafficking in stolen firearms, and possession of marijuana with intent to deliver.
Kruckenberg was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Kruckenberg was sentenced to 277 months’ imprisonment. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Kruckenberg is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Alex Geocaris and Assistant United States Attorney Emily K. Nydle and investigated by the Waterloo Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Tri-County Drug Taskforce, the Black Hawk County Sheriff’s Office, and the Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-cr-2038.
Follow us on Twitter @USAO_NDIA.
Pocahontas County man sentenced for firearms chargesRead the Press Release
ELKINS, WEST VIRGINIA – Julian N. Waddell, of Durbin, West Virginia, was sentenced today to 84 months of incarceration for firearms charges, United States Attorney William J. Ihlenfeld, II announced.
Waddell, 37, pleaded guilty in April 2021 to two counts of “Unlawful Possession of a Firearm.” Waddell, a person who isn’t permitted to have a firearm because of a prior conviction, admitted to having three revolvers, a shotgun, and a semi-automatic rifle in April and July 2019 in Pocahontas County.
Assistant U.S. Attorney Christopher L. Bauer prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives and the Mountain Region Drug Task Force investigated.
U.S. District Judge Thomas S. Kleeh presided.
Pittsburgh Man Sentenced to 42 Months for Fentanyl and Methamphetamine TraffickingRead the Press Release
CONCORD - Howard Poole, 43, of Pittsburg, was sentenced on Thursday to 42 months in federal prison for possession of fentanyl and methamphetamine with intent to distribute, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on December 16, 2020, law enforcement officers received information that Poole was distributing drugs and was the subject of multiple arrest warrants. Based on the information, investigators set up surveillance and observed Poole leaving a Manchester motel in a car driven by his wife. The vehicle pulled into a gas station and a state trooper conducted a motor vehicle stop. After the trooper informed Poole of the active warrants, Poole admitted he possessed methamphetamine, opiates, and cash. The trooper observed a large amount of currency and a baggie containing methamphetamine in the vehicle. A consensual search of the vehicle and a search of Poole’s person revealed $6,786 in cash, over 278 grams of fentanyl, and over 25 grams of methamphetamine.
Poole previously pleaded guilty on June 4, 2021.
“Drug traffickers like Mr. Poole endanger our communities by peddling deadly and addictive substances,” said Acting U.S. Attorney Farley. “In order to protect our community, we continue to work closely with our law enforcement partners to identify those who are profiting from the sale of illegal drugs and hold them accountable for their unlawful conduct.”
This matter was investigated by the Drug Enforcement Administration, New Hampshire State Police, and Manchester Police Department. The case was prosecuted by Assistant U.S. Attorney Joachim H. Barth.
# # #
Pine Ridge Man Acquitted of Assault ChargesRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Pine Ridge, South Dakota, man was acquitted of Assault with a Dangerous Weapon, Assault Resulting in Serious Bodily Injury, Assault with Intent to Commit Murder, and Discharge of a Firearm During the Commission of a Crime of Violence following a three-day federal jury trial in Rapid City, South Dakota, commencing on October 5, 2021.
Charles Schrader, age 55, was indicted by a federal grand jury on December 8, 2020.
The investigation was conducted by the Oglala Sioux Tribe Department of Public Safety and the Federal Bureau of Investigation. The U.S. Attorney's Office prosecuted the case.
Pierre Woman Charged with Conspiracy to Distribute MethRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Pierre, South Dakota, woman has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance.
Taylor Huemoeller, a/k/a Taylor Klein, age 31, was indicted on September 14, 2021. She appeared before U.S. Magistrate Judge Mark A. Moreno on October 13, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison, with a mandatory minimum custody sentence of 10 years, and/or a $10,000,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between July 13, 2021, and July 14, 2021, in Pierre, Huemoeller conspired with others to knowingly and intentionally distribute and possess with the intent to distribute 500 grams or more of methamphetamine in central South Dakota.
The investigation is being conducted by the Federal Bureau of Investigation and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan Dilges is prosecuting the case.
Huemoeller was released on conditions and a jury trial is currently set for November 30, 2021.
Parker Man Sentenced for Meth Trafficking ConspiracyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Parker, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on October 14, 2021, by U.S. District Judge Karen E. Schreier.
David Lee King, age 53, was sentenced to 200 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
King was indicted by a federal grand jury on February 2, 2021. He pled guilty on May 10, 2021.
The conviction stemmed from incidents beginning on an unknown date until on or about February 2, 2021, when King knowingly and intentionally combined, conspired, confederated, and agreed with others to knowingly and intentionally distribute 500 grams or more of a mixture and substance containing methamphetamine, which is a Schedule II controlled substance.
This case was investigated by the Sioux Falls Area Drug Task Force, Homeland Security Investigations, the U.S. Postal Inspection Service, and the Internal Revenue Service. Special Assistant U.S. Attorney Tamara Nash prosecuted the case.
King was immediately turned over to the custody of the U.S. Marshals Service.
Pamlico and Craven County Operations Continue to Target Narcotics Traffickers in the CommunityRead the Press Release
RALEIGH, N.C. – Today, a New Bern man was sentenced to 144 months in prison for the distribution of controlled substances in Craven and Pamlico counties. On June 17, 2021, William Roger Swain, Jr., also known as “Swoon”, 37, pled guilty to Federal charges related to the distribution of methamphetamine, heroin, marijuana, and cocaine.
Arising out of the same law enforcement operation, Kelly Jackson Gibbs, Jr. was sentenced to 120 months on September 27, 2020, for the distribution of heroin in Pamlico County.
According to court documents and other information presented in court, Swain’s and Gibb’s prosecutions are the result of an investigation, led by the U.S. Attorney’s Office in conjunction with local, state, and federal authorities, into several drug traffickers operating in Pamlico and Craven counties.
In total, Investigators attributed over 4,852 grams of heroin, 1,960 grams of cocaine, 141 grams of methamphetamine, and 684 grams of marijuana distributed into the community from 2012 until 2020 by the two men.
“This is an excellent example of the continued efforts of local, state, and federal partners working together to combat the sale of heroin and other illicit drugs in our neighborhoods, with a focus on violent, repeat offenders,” said Pamlico County Sheriff Chris Davis.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after the sentencings by U.S. District Judge James C. Dever III. Pamlico County Sheriff’s Office, New Bern Police Department, Craven County Sheriff’s Office, the North Carolina State Bureau of Investigation, Homeland Security Investigations, and the District Attorney’s Office for the Prosecutorial District 4 assisted with the investigation of the case and Assistant U.S. Attorney J.D. Koesters and Special Assistant United States Attorney John Newby prosecuted the cases.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:20-cr-00078-D.
Ohio Man Charged with Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Toledo, Ohio, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Maurice Anthony Streater, age 31, was indicted on September 9, 2021. He appeared before U.S. Magistrate Judge Veronica L. Duffy on October 12, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between January 1, 2021, and September 9, 2021, Streater, a person required to register under the Sex Offender Registration and Notification Act and a sex offender by reason of a conviction under state law, and having traveled in interstate commerce, knowingly failed to register and update his registration.
The charge is merely an accusation and Streater is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Ann M. Hoffman is prosecuting the case.
Streater was released on bond pending trial. A trial date has not been set.
Norwalk Man Sentenced to Prison for Tax EvasionRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that MICHAEL C. MONROE, 48, of Norwalk, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to six months of imprisonment, six months of home confinement, three years of supervised release, and 90 hours of community service, for tax evasion.
According to court documents and statements made in court, Monroe operated a construction business known as Monroe Construction. From 2008 through 2013, Monroe owed substantial unpaid income taxes and penalties to the IRS. In 2014, the IRS levied the business bank account used by Monroe as the operating account for his construction company. Monroe subsequently closed his business bank account and, between approximately November 2014 and November 2017, evaded payment to the IRS of his preexisting tax obligations by using a check cashing service to cash approximately $1.5 million in customer checks paid to his business. For the 2014 and 2015 tax years, Monroe failed to report to the IRS a total of more than $700,000 that his business generated in gross revenues. In addition to evading payment to the IRS of more than $107,000, he understated the federal income taxes he owed in 2014 and 2015 by approximately $34,000.
Judge Underhill ordered Monroe to pay total back taxes of $141,041, plus interest and penalties.
On March 15, 2021, Monroe pleaded guilty to one count of tax evasion.
Monroe is required to report to prison by December 9, 2021.
This investigation was conducted by the Internal Revenue Service, Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
North Carolina Man Indicted for Drug TraffickingRead the Press Release
WILLIAMSPORT -The United States Attorney’s Office for the Middle District of Pennsylvania announced that on October 14, 2021, Jelani Lee, of Durham, North Carolina was indicted yesterday by a federal grand jury for methamphetamine distribution.
According to Acting United States Attorney Bruce D. Brandler, the indictment alleges that on multiple occasions in July 2021, Lee sold methamphetamine to others in Wyoming and Luzerne counties.
The case was investigated by the Federal Bureau of Investigation and Pennsylvania State Police. Assistant U.S. Attorney Geoffrey W. MacArthur is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this count is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
###
New Jersey Men Indicted in Cocaine ConspiracyRead the Press Release
ALBANY, NEW YORK – Richard “Richie” Sinde, age 56, of Fort Lee, New Jersey, and Robert “Bobby” Ingrao, age 74, of Lodi, New Jersey, were indicted last month for trafficking 9 kilograms of cocaine.
The announcement was made by United States Attorney Carla B. Freedman and Ray Donovan, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), New York Division.
Sinde and Ingrao are each charged with conspiring to distribute 5 kilograms or more of cocaine, and with possessing and intending to distribute 5 kilograms or more of cocaine. Sinde was arraigned today before United States Magistrate Judge Daniel J. Stewart and released with conditions. Ingrao will be arraigned at a later date.
On April 2, 2021, Ingrao was driving a 2018 Jeep Grand Cherokee north on Interstate 87, according to a criminal complaint previously filed against him. New York State Police conducted a traffic stop on the vehicle in Greene County. Ingrao, who was driving alone, told Troopers that he was returning the vehicle to Schenectady, according to the complaint. Troopers discovered that Ingrao lacked a driver’s license, and decided to arrest him and tow the Jeep. While taking an inventory of the Jeep’s contents, according to the complaint, Troopers discovered a hidden compartment, or “trap,” in the vehicle’s trunk area. The trap concealed 9 kilograms of cocaine, according to the complaint.
The charges in the indictment and complaint are merely accusations. The defendants are presumed innocent unless and until proven guilty.
If convicted, each man faces at least 10 years and up to life in prison, as well as at least 5 years of supervised release. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the DEA’s Capital District Drug Enforcement Task Force, which includes DEA Special Agents and investigators from state and local police agencies, including the Saratoga Springs Police Department, the Saratoga County Sheriff’s Office, the Washington County Sheriff’s Office, and the New York State Police. The case is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Mt. Vernon, Washington man sentenced to 8+ years in prison for dealing deadly fentanylRead the Press Release
Seattle – A 22-year-old Mount Vernon, Washington, man was sentenced today in U.S. District Court in Seattle to 100 months in prison and 4 years of supervised release for conspiracy to distribute fentanyl, announced U.S. Attorney Nicholas W. Brown. Defendant Jiovanni Nunez supplied counterfeit oxycodone pills tainted with fentanyl to an associate, who distributed them in Skagit and Whatcom Counties. The pills are connected to at least two overdoses, including the overdose death of a Bellingham 17-year-old. At the sentencing hearing Chief U.S. District Judge Ricardo S. Martinez said, “This entire case is tragic… the victim’s family continues to suffer as a direct consequence of the defendant’s actions.”
“Far too many people are dying from these fentanyl tainted pills — especially the young and vulnerable,” said U.S. Attorney Brown. “It is critical that we not only stem the flow of the drugs into our community, but also remind people that using these pills often leads to death and devastation, with families left to mourn.”
Nunez and co-conspirator, Rosaliana Lopez-Rodriguez, 23, of Mount Vernon, were arrested in late 2019 after an investigation to track down the source of the tainted pills. According to records filed in the case, a family member found the 17-year-old victim unresponsive on November 9, 2019. Despite efforts of emergency responders to resuscitate him, the victim died; his cause of death was later determined to be fentanyl overdose. Investigators found a whole and a partial pill near the 17-year-old victim. The pills were designed to look like oxycodone 30-milligram pills, with “M” and “30” stamped on them. But they were fakes tainted with fentanyl. Similar pills have been linked to other overdose deaths throughout the Puget Sound region. In fact, a friend of the 17-year-old victim nearly died after smoking one of the pills on November 2, 2019. Nunez’s co-conspirator knew of that near-fatal overdose when she sold the 17-year-old victim more pills a week later, on November 9, 2019.
During this investigation, law enforcement executed court-authorized search warrants at each defendant’s residence. At Nunez’s residence, law enforcement found a safe containing more than 900 fake oxycodone pills that matched the appearance of the fentanyl-laced pills linked to the fatal overdose. Co-conspirator Lopez-Rodriguez admitted that Nunez supplied her with the pills that killed the Bellingham 17-year-old.
Speaking to the court today, the victim’s mother talked about her son as a bright light for many people. Her son’s death left “a big hole of grief we carry that nothing can fill.” The mother noted that Nunez “knew how deadly the pills were,” and continued “dealing lethal poison in our community.”
Lopez-Rodriguez was sentenced to 84 months in prison in August 2021.
The case was investigated by the Drug Enforcement Administration (DEA), the Whatcom County Sheriff’s Office, the Skagit County Interlocal Drug Enforcement Unit (SCIDEU), and the Whatcom County Drug and Gang Task Force, which is made up of members of the Whatcom County Sheriff’s Office, Washington State Department of Corrections, U.S. Customs and Border Protection, and Homeland Security Investigations.
The case was prosecuted by Assistant United States Attorney Jonas Lerman.
Mitchell Man Charged with Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Mitchell, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Russell Duane Hubbeling, age 57, was indicted on October 5, 2021. He appeared before U.S. Magistrate Judge Veronica L. Duffy on October 8, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that Hubbeling, who had previously been convicted of a sex crime and required to register under the Sex Offender Registration and Notification Act, failed to do so between August 5, 2021, and September 2, 2021.
The charge is merely an accusation and Hubbeling is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Hubbeling was remanded to the custody of the U.S. Marshals Service pending trial, which has been set for December 14, 2021.
Missing Person Investigation Results in Three Convictions and a Life SentenceRead the Press Release
A man who robbed and murdered another man was sentenced today to life in federal prison.
Matthew Barrett Robbins, age 49, from Cedar Rapids, Iowa, received the prison term after a May 3, 2021 jury verdict finding him guilty of robbery affecting interstate commerce, conspiracy to commit robbery affecting interstate commerce, and using a firearm during a crime of violence resulting in a death that constitutes murder.
Evidence at trial showed that Robbins was a methamphetamine user who became unhappy with the quality of methamphetamine distributed by his source of supply. Robbins, along with Danielle Busch and William Leo Yancey, concocted a plan to lure his drug dealer to a rural farmhouse outside of Ely. Once at the farmhouse, Robbins used a sawed-off shotgun to rob the victim of a quarter-ounce of methamphetamine and approximately $150. During the robbery, Robbins’ firearm discharged, killing the victim. Robbins then took steps to dismember and conceal the body by burning it in a burn pit in his back yard. Robbins then discarded the ashes in the Cedar River.
Robbins was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Robbins was sentenced to life in prison. He must also serve a five-year term of supervised release if ever released from prison. There is no parole in the federal system. While announcing sentence, Chief Judge Strand said Robbins was “the poster child for a life sentence given the facts of this case and what the jury has found in this case. Mr. Robbins absolutely deserves a life sentence.”
Busch and Yancey were previously sentenced on September 15, 2021. Busch was sentenced to 120 months’ and one day imprisonment. She must also serve a five-year term of supervised release after the prison term. Yancey was sentenced to 400 months’ imprisonment. Yancey is currently serving a 188-month prison term for conspiring to manufacture methamphetamine and will begin serving this sentence once he finishes serving that term of imprisonment. He must also serve a five-year term of supervised release after the prison term.
“Matthew Robbins’ criminal conduct resulted in a tragic death. The hard work and team effort by the law enforcement agencies involved in this investigation ensured he would be held accountable for his crimes. Robbins earned every day of the life sentence the court imposed today,” said Acting United States Attorney Sean R. Berry. “The United States Attorney’s Office and our law enforcement partners are committed to vigorously prosecuting those who mix drugs, guns, and violence.”
Robbins 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 Lisa C. Williams and Emily K. Nydle and was investigated by the Marion Police Department, the Iowa Department of Criminal Investigation, the Linn County Sheriff’s Office, the Drug Enforcement Administration, the Cedar Rapids Police Department, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Iowa City Police Department, the United States Marshals Service, the Davenport Police Department, the Iowa Division of Narcotics Enforcement, the Benton County Sheriff’s Office, the Cedar County Sheriff’s Office, the Madison County Sheriff’s Office, and the Daytona Beach Shores Florida Police Department. Assistance was also provided by the Waypoint Services Survivor's Program in Cedar Rapids, Iowa.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-cr-53.
Follow us on Twitter @USAO_NDIA.
Mercer County Man Sentenced to 10 Years in Prison for Possessing Firearm Loaded with 30 Rounds of Ammunition in Furtherance of Drug Trafficking CrimeRead the Press Release
TRENTON, N.J. – A Mercer County, New Jersey, man was sentenced today to 120 months in prison for possessing a handgun in furtherance of a drug crime, Acting U.S. Attorney Rachael A. Honig announced.
Armond Holloway, 45, of Hamilton, New Jersey, previously pleaded guilty before U.S. District Judge Michael A. Shipp via videoconference to Count Two of an indictment charging him with possession of a firearm in furtherance of possession with intent to distribute heroin. Judge Shipp imposed the sentence by videoconference today.
According to documents filed in this case and statements made in court:
On July 31, 2017, Holloway was on parole after having served a term of imprisonment. Holloway’s parole officer received information from an anonymous source that Holloway, who had known gang affiliations, was in possession of a gun, 300-400 bricks of heroin, and a large amount of money at his residence.
On Aug. 1, 2017, the parole officer, along with other law enforcement officers, conducted a parole search of Holloway’s residence, where they recovered a Masterpiece Arms 9 mm firearm with an obliterated serial number, loaded with 30 rounds of ammunition, under Holloway’s bed. They also found a barrel extension that fit the gun. Also recovered from Holloway’s bedroom was more than $14,000 in cash and more than 400 bricks of heroin from Holloway’s basement.
In addition to the prison term, Judge Shipp sentenced Holloway to five years of supervised release.
Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Jeffrey L. Matthews in Newark; the New Jersey State Parole Board, under the direction of Chairman Samuel J. Plumeri Jr.; and the New Jersey State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Elisa T. Wiygul and Michelle S. Gasparian of the U.S. Attorney’s Office’s Criminal Division in Trenton.
Member of $4 Million National Luxury Stolen Car Ring Sentenced to Five Years in PrisonRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that LASHAUMBA RANDOLPH was sentenced today to 60 months in prison for providing fake titles and other fraudulent vehicle documentation used to defraud car buyers as part of a national stolen car ring involving approximately 60 stolen luxury cars, including Ferraris, Lamborghinis, and Corvettes, worth more than $4 million. RANDOLPH previously pled guilty to conspiracy to commit wire fraud, and was sentenced today before U.S. District Judge Cathy Seibel.
All defendants have pled guilty and RANDOLPH is the ninth defendant sentenced to date. Earlier in the case, Judge Seibel sentenced eight co-defendants for their roles in the $4 million stolen car ring. CLIPHAS BELFON, a/k/a “Cliff,” who supplied from Florida many of the stolen cars sold by the ring, was sentenced to 52 months in prison on May 27, 2021. COLIN BURNETT, a/k/a “Greg,” who made fraudulent documentation for the cars, was also sentenced to 52 months in prison on October 6, 2021. BESAR ISMAILI, who supplied, stored, and sold stolen cars to secondhand buyers, was sentenced to 42 months in prison on April 20, 2021. ROBERT PINSKY, a supplier of stolen cars and false vehicle documentation, was sentenced to 40 months in prison on July 9, 2021. ANTONIO SANTIAGO, another Florida supplier of stolen cars, was sentenced to 30 months in prison on January 21, 2020. CHARLES WALTON, a Michigan-based supplier of stolen cars, was sentenced to 21 months in prison on August 27, 2020. STEVEN KLEIN, who provided financing for the scheme and resold stolen cars to secondhand buyers, was sentenced to 18 months in prison on June 11, 2021. NICHOLAS DIXON, who transported some of the stolen cars, was sentenced to time served on September 10, 2020.
As a result of the investigation, law enforcement recovered more than 30 stolen cars, and the defendants have already paid more than $443,000 in combined restitution to victims of the stolen car ring, forfeiture, and fines.
U.S. Attorney Damian Williams said: “These defendants used sophisticated methods to traffic scores of stolen luxury cars worth more than $4 million, stealing from rightful owners and defrauding buyers and state departments of motor vehicles. This unacceptable crime harms car owner victims, muddies up car records relied upon by the public, and also imposes hidden costs on the public, including anyone paying for car insurance. It will not be tolerated.”
According to the allegations in the Indictment, as well as other public documents and court proceedings:
From October 2017 through November 2018, MARVIN WILLIAMS, CLIPHAS BELFON, a/k/a “Cliff,” COLIN BURNETT, a/k/a “Greg,” NICHOLAS DIXON, a/k/a “Robbie,” BESAR ISMAILI, STEVEN KLEIN, ROBERT PINKSY, LASHAUMBA RANDOLPH, ANTONIO SANTIAGO, and CHARLES WALTON operated a sophisticated, interstate stolen car ring, during which they (1) obtained stolen cars from, among other places, Michigan and Florida; (2) transported the stolen cars to, among other places, the Southern District of New York and Connecticut, for resale; (3) created and/or obtained false titles, registrations, and temporary license plates for the stolen cars; (4) used the false car records to deceive car buyers and the South Dakota Division of Motor Vehicles; and (5) used online markets, such as eBay, to solicit buyers of the stolen cars in various states. Through this extensive criminal scheme, the co-conspirators obtained, transported, and sold or attempted to sell more than 60 cars worth, in total, more than $4 million.
To carry out the stolen car ring, its members performed multiple and various roles. Some members stole and/or obtained luxury cars from the rightful, original owners, including dealerships and car rental businesses in Florida and Michigan. Others assisted in transporting the cars from Florida and Michigan to, among other places, New York or Connecticut. Others provided financing and assisted in purchasing or finding buyers for stolen cars. Others attempted to conceal the scheme from or deceive car buyers, law enforcement, and the SDDMV by “re-VINning cars,” and using fraudulent documents, such as fraudulent titles and VIN stickers, to acquire new titles and registrations for the stolen cars, making it appear as if the stolen cars were not, in fact, stolen.
* * *
RANDOLPH, 46, of Atlanta, Georgia, pled guilty on February 2, 2021 to conspiring to commit wire fraud from in or about October 2017 through in or about November 2018. In addition to the prison term, RANDOLPH was sentenced today to three years of supervised release, and ordered to pay forfeiture of $9,500 and restitution of 26,098.47.
BELFON, 28, of Miami, Florida, pled guilty on May 14, 2020, to conspiring to receive, possess, and sell stolen cars from in or about October 2017 through in or about November 2018, and was sentenced on May 27, 2021 to 52 months in prison, and forfeiture of $17,000.
BURNETT, 30, of Atlanta, Georgia, pled guilty on September 15, 2020, to conspiring to receive, possess, and sell stolen cars from in or about October 2017 through in or about November 2018, and was sentenced on October 6, 2021 to 52 months in prison, forfeiture of $8,577, and restitution of $24,991.24.
ISMAILI, 40, of Waterbury, Connecticut, pled guilty on December 22, 2020 to conspiring to commit wire fraud from in or about October 2017 through in or about November 2018, and was sentenced on April 20, 2021 to 42 months in prison, forfeiture of $76,000, and restitution of $393,329.96.
PINSKY, 52, of Howell, New Jersey, pled guilty on March 12, 2020 to conspiring to receive, possess, and sell stolen cars from in or about October 2017 through in or about November 2018, and was sentenced on July 9, 2021 to 40 months in prison, forfeiture of $77,000, and restitution of $51,444.08.
SANTIAGO, 38, of Pompano Beach, Florida, pled guilty on June 11, 2019 to conspiring to receive, possess, and sell stolen cars from in or about October 2017 through in or about November 2018, and was sentenced on January 21, 2020 to 30 months in prison, forfeiture of $22,500, and restitution of $66,671.91.
WALTON, 35, of Detroit, Michigan, pled guilty on March 17, 2020 to conspiring to receive, possess, and sell stolen cars from in or about October 2017 through in or about November 2018, and was sentenced on August 27, 2020 to 21 months in prison, forfeiture of $36,000, and restitution of $41,365.33.
KLEIN, 58, of Easton, Connecticut, pled guilty on March 3, 2021 to conspiring to commit wire fraud, and was sentenced on June 11, 2021 to 18 months in prison, forfeiture of $70,000, restitution of $240,000, and a fine of $15,000.
DIXON, 46, of Tamarac, Florida, pled guilty on May 7, 2020 to receiving a stolen car, and was sentenced on September 10, 2020 to time served, forfeiture of $34,050, and restitution of $6,849.59.
WILLIAMS, 35, of Torrington, Connecticut, pled guilty on October 11, 2019, and is awaiting sentencing.
Mr. Williams praised the excellent work of the Federal Bureau of Investigation and the New York State Police.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Emily Deininger and David Felton are in charge of the prosecution.
Maryland Couple Pleads Guilty to Kickback Scheme Related to NASA ContractRead the Press Release
ALEXANDRIA, Va. – A Gaithersburg, Maryland, husband and wife pleaded guilty on September 30 and today, respectively, to engaging in a kickback scheme in which they unlawfully received money related to a National Aeronautics and Space Administration (NASA) grant program and to conspiring to defraud the Internal Revenue Service (IRS) by not paying income taxes on the kickbacks they received.
According to court documents, since around 2002 through 2019, Ana Veronica Giri, 49, a NASA subcontractor, conspired with her husband, Vishesh Giri, 45, to receive kickbacks in exchange for Ana Giri ensuring that a specific vendor would be selected to provide information technology and audio-visual services necessary for a NASA contract. Vishesh Giri served as a runner by traveling to the vendor’s office locations in the Eastern District of Virginia to collect the payments.
Court records show the Giris and the vendor agreed to a payment routine in which the Giris would receive 10% of each contract awarded to the vendor. In addition to the monetary kickbacks, the vendor provided the Giris with televisions, computers, and other electronic equipment. Since 2011, the Giris received at least $707,331, paid through 260 kickback payments. The Giris did not report these earnings on their 2011 through 2019 income tax returns, which resulted in a tax loss of at least $165,471. As a result of this conspiracy, the Giris were able to maintain a lavish lifestyle, including the purchase of multiple real estate properties between 2005 and 2018 in Maryland and North Carolina.
The Giris pleaded guilty to conspiracy to commit honest services wire fraud and to defraud the IRS. Ana Giri and Vishesh Giri are scheduled to be sentenced on February 25, 2022. The Giris each face a maximum penalty of five years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division; NASA Inspector General Paul K. Martin; and Darrell J. Waldon, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation, made the announcement after Senior U.S. District Judge T.S. Ellis, III accepted the pleas.
Assistant U.S. Attorneys Kimberly M. Shartar and Jamar K. Walker are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 1:21-cr-196 and 1:21-cr-197.
Marshall County Man Sentenced to 8 Years in Federal Prison for Importing and Distributing U-477ooRead the Press Release
PADUCAH, KY – A Marshall County, Kentucky man was sentenced on October 13, 2021, to 8 years in federal prison for Importing and Distributing U-47700, commonly known as “U-4” or “Pink,” a Schedule I controlled substance.
According to court documents, Jevan Sheppard, 29, of Marshall County, Kentucky, admitted to conspiring with others to distribute and to possess with the intent to distribute U-4, a Schedule I controlled substance over the period from November 14, 2016, to March 22, 2017. Further, Sheppard admitted to distributing U-4 on or about March 13 and 14, 2017, and to possessing U-4 with the intent to distribute on or about March 22, 2017. Sheppard also admitted to importing U-4 into the United States from China during the period from November 14, 2016, until March 22, 2017.
“I commend the federal, state, and local law enforcement agencies and the Assistant United States Attorneys who worked tirelessly to ensure the successful prosecution of Mr. Sheppard,” stated Acting United States Attorney Michael A. Bennett. “Individuals who traffic drugs in the Western District take notice. No matter the type or source of the poison you trade in, you will be identified, prosecuted, and sent to prison.”
“Mr. Sheppard, and others like him who damage our communities by selling illicit drugs, deserve to be put away,” said Special Agent in Charge Todd Scott, who heads the U.S. Drug Enforcement Administration’s Louisville Division. “I’m very proud of the work done by DEA and our law enforcement partners to ensure he feels the full weight of the justice system.”
The United States Drug Enforcement Administration (DEA), Calvert City Police Department, Marshall County Sheriff’s Department, McCracken County Sheriff’s Department, Paducah Police Department, and United States Customs and Border Protection all investigated the case, with assistance from the Marshall County Attorney’s Office and the Commonwealth’s Attorney for Marshall County.
Assistant U.S. Attorneys Seth A. Hancock and Raymond McGee prosecuted the case with assistance from Assistant U.S Attorneys Nicole Elver and Amy Sullivan.
###
Man Sentenced to Federal Prison Again After Conviction for Conspiring to Distribute MethamphetamineRead the Press Release
A man who previously was convicted of a federal drug trafficking offense was sentenced to more than 12 years in federal prison.
Michael Wayne Bailey, age 43, from Cedar Rapids, Iowa, received the prison term after an April 16, 2021 guilty plea to conspiracy to distribute a controlled substance after having been convicted of a serious drug felony.
At the guilty plea, Bailey admitted he was involved in a conspiracy to distribute methamphetamine beginning in late 2019 and continuing to March 2020. Baily was previously convicted in 2007 of federal conspiracy to distribute methamphetamine and distribution of marijuana charges.
Bailey was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Bailey was sentenced to 153 months’ imprisonment. He must also serve a ten-year term of supervised release after the prison term. There is no parole in the federal system.
Bailey is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Cedar Rapids Police Department, the Federal Bureau of Investigation, the Iowa Division of Narcotics Enforcement, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Linn County Sheriff’s Office, the Marion Police Department, and the Drug Enforcement Administration.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-cr-78.