Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 14 October 2021
Biloxi Man Pleads Guilty to Firearm OffenseRead the Press Release
Gulfport, Miss. – A Biloxi man pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime, announced Acting U.S. Attorney Darren J. LaMarca and Special Agent in Charge Brad Byerley of the Drug Enforcement Administration (“DEA”).
According to court records, Kristopher Weaver, 29, was indicted on June 29, 2021, for his role in a drug trafficking conspiracy which included the acquisition and distribution of marijuana, prescription pills, and firearms. Law enforcement officers executed a search warrant on Weaver’s home where they found approximately 58.5 pounds of THC edibles, marijuana, cocaine, and other suspected controlled substances. Some of the controlled substances, eight firearms, a large cache of ammunition, and a drug ledger were all discovered in Weaver’s bedroom.
Weaver pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime. He is scheduled to be sentenced on January 20, 2022. He faces a minimum sentence of 5 years imprisonment and a maximum sentence of life imprisonment. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The DEA, Gulfport Police Department, and Biloxi Police Department investigated the case.
Assistant U.S. Attorney Jonathan Buckner 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.
Beckley Woman Pleads Guilty to Federal Gun CrimesRead the Press Release
BECKLEY, W.Va. – Cayla Danielle Lindsay, 28, of Beckley, pleaded guilty today to using and carrying a firearm in relation to a drug trafficking crime and to being a felon in possession of a firearm.
According to court documents, Lindsay admitted that on July 23, 2020, during a traffic stop of a car she was driving in Beckley, law enforcement officers found approximately 27 grams of heroin that she intended to distribute. They also found a Springfield, XDS 9, 9mm semi-automatic pistol Lindsay was carrying at the time. Lindsay also admitted that on May 6, 2021, she possessed a SCCY, CPX-2, 9mm semi-automatic pistol. The firearm was found during a search law enforcement conducted at her residence in Beckley. Lindsay acknowledged that at the time she possessed the firearm, she knew she had been previously convicted in federal court of the felony offense of distribution of oxycodone and was prohibited from possessing firearms.
Lindsay faces up to 10 years in prison for being a felon in possession of a firearm, followed by a mandatory consecutive five years for carrying a firearm during and in relation to a drug trafficking crime when she is sentenced on February 4, 2022.
United States Attorney William S. Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Beckley/Raleigh County Drug and Violent Crime Unit.
United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney Timothy D. Boggess is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:21-cr-00090.
###
Bakersfield Man Indicted for Unlawful Possession of AmmunitionRead the Press Release
FRESNO, Calif. — Raylon Thijay Randle, 24, of Bakersfield, was charged today by a federal grand jury with being a felon in possession of ammunition, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Aug. 19, 2021, law enforcement officers stopped a vehicle in which Randle was a passenger and discovered that he possessed a 9 mm handgun loaded with 31 rounds of ammunition. Randle cannot lawfully possess firearms or ammunition because he was convicted in 2016 of first degree burglary and in 2018 of being a felon in possession of a firearm.
This case is the product of an investigation by Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Bakersfield Police Department. Assistant U.S. Attorney Christopher D. Baker is prosecuting the case.
If convicted, Randle faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charge is only an allegation; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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.
Armed Savannah criminal sentenced to maximum term in prison for illegal firearms possessionRead the Press Release
SAVANNAH, GA: A Chatham County man with a history of violent behavior has been sentenced to 10 years in federal prison for illegally possessing a firearm.
King Coney, 29, of Savannah, was sentenced to the statutory maximum 120 months in prison after pleading guilty to Possession of a Firearm by a Convicted Felon, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge R. Stan Baker also ordered Coney to serve three years of supervised release after completion of his prison sentence. There is no parole in the federal system.
“King Coney has no business carrying a gun,” said Acting U.S. Attorney Estes. “His history of violent behavior, particularly toward women and police officers, makes it clear the community will be safer with him disarmed and behind bars.”
Savannah Police officers in August 2020 investigated a report that Coney had pointed a pistol at the head of a pregnant woman and dragged her down the street. When officers located Coney two weeks later and attempted to question him, Coney ran away and was arrested after a brief chase. Officers then found a loaded pistol in his backpack, and agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives verified that as a previously convicted felon, Coney is prohibited from possessing firearms. Coney still faces state charges related to the case, including kidnapping, aggravated assault, and cruelty to children.
“The criminal possession and use of firearms by felons is a crime that impacts the safety of our community everyday” said ATF Assistant Special Agent in Charge Beau Kolodka. “By imposing the maximum sentence for this crime, the Court has sent a strong message to Coney and others like him that such conduct will not be tolerated.”
In separate cases in U.S. District Court, Judge Baker also sentenced three other defendants to federal prison terms after each pled guilty to Possession of a Firearm by a Convicted Felon:
- Javonta Sheppard, 26, of Savannah, sentenced to 46 months in prison followed by three years of supervised release;
- Tyshaun Richey, 25, of Savannah, sentenced to 46 months in prison followed by three years of supervised release; and,
- Leaa Jones, 23, of Savannah, sentenced to 24 months in prison followed by three years of supervised release; and,
The cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Savannah Police Department, and prosecuted for the United States by Assistant U.S. Attorneys Marcela C. Mateo, John P. Harper III, and Tania G. Groover.
Armed Millbrook Meth Dealer Sentenced to Fifteen YearsRead the Press Release
MOBILE, AL – A Millbrook, Alabama, man was sentenced to 15 years in prison for conspiracy to possess with intent to distribute methamphetamine and possession of a firearm in relation to a drug trafficking felony.
According to court documents, Jeremy Haynes Stubbs, 41, was identified by a confidential informant as a distributor of methamphetamine in the Selma area. As the result of a recorded phone call with the informant, Stubbs and his co-defendant Craig Charles Plyler, traveled to a pre-arranged meeting location where investigators confronted them. Methamphetamine and a firearm were recovered from their vehicle. Stubbs plead guilty to the two charges in September of 2020.
United States District Court Judge William H. Steele imposed the sentence of 15 years and one month in Stubbs’ case on October 13, 2021, consisting of 121 months on the drug charge and 60 months on the firearms charge, to run consecutively to the sentence on the drug count. The judge ordered that Stubbs will serve a total of five years under supervision when he is released from custody. Special conditions of his supervision include drug testing and treatment, a mental health evaluation and treatment if necessary, and a model search condition. No fine was imposed, but the judge ordered that Stubbs pay $200 in special assessments, and that the firearms seized during the investigation are to be forfeited to the United States.
The case was investigated by the United States Postal Inspectors and the 4th Judicial Circuit Task Force. Assistant United States Attorney Gloria Bedwell prosecuted the case on behalf of the United States.
Anheuser-Busch In-Bev employee pleads guilty in health care fraud schemeRead the Press Release
ST. LOUIS – United States District Court Judge Henry E. Autrey accepted a plea of guilty from Shannon Nenninger on October 12, 2021 for the crimes of conspiracy involving health care fraud, making false statement to a government agency, theft of government funds, and social security fraud.
In September 2020, a federal grand jury indicted Nenninger and others. According to the plea agreement, Nenninger, who was a former Anheuser-Busch In-Bev employee learned that Dr. Thomas Hobbs could assist her in obtaining disability payments from the Social Security Administration, Prudential Insurance of America Companies, and MetLife by exaggerating her medical conditions and claiming that she was totally and permanently disabled. As a result, between January 8, 2013 and November 28, 2017, Nenninger paid Dr. Hobbs $6,100 for his efforts in exaggerating Nenninger’s medical conditions to qualify her for the disability payments. These fees were in addition to those charged by Dr. Hobbs for any medical treatments.
While Nenninger claimed to be so disabled that she could not work, she was travelling internationally and throughout the United States, attending concerts, working in her yard, washing her car, going to various social events, and going fishing. Believing the misrepresentations to be true, the Social Security Administration and the private insurers granted Nenninger disability benefits. Between January 8, 2013 and September 30, 2021, Nenninger fraudulently received more than $457,104 in disability benefit payments and caused the payment of $3,501.88 by Blue Cross Blue Shield to the chiropractors for their medically unnecessary tests and treatments.
The case was investigated by the Social Security Administration – Office of Inspector General and the Federal Bureau of Investigation. Dorothy McMurtry and Tracy Berry are handling the case for the U.S. Attorney’s Office.
*****
Acting United States Attorney Bruce D. Brandler Thanks WVIA for Producing “A Call to Care”Read the Press Release
HARRISBURG – WVIA will premiere the original documentary film “A Call to CARE” on Thursday, October 14th, at 8 p.m. on WVIA TV. WVIA is the PBS and NPR affiliate serving over 22 counties in northeastern and central Pennsylvania and encores of the documentary will air on Friday, October 15th, at 1 p.m., Sunday, October 17th, at 12:30p.m., Thursday October 21st, at 9 p.m., and Friday, October 22nd, at 2 p.m. In addition, it will also be available to watch on-demand at WVIA.org and on the PBS and WVIA Apps after the broadcast premiere.
“A Call to CARE” is a one-hour original documentary film produced by WVIA that explores the Court-Assisted Re-Entry (CARE) Program that exists in the United States District Court for the Middle District of Pennsylvania. The Middle District’s CARE program is designed to help individuals released from prison avoid a devastating relapse into criminal behavior. As described by WVIA, “the documentary chronicles the program’s comprehensive rehabilitative process and celebrates its healing resonance in the community.”
“The Middle District’s CARE program was one of the first re-entry programs to operate in the federal system and represents one of the most important initiatives of the Department of Justice,” stated Acting United States Attorney Bruce D. Brandler. “Re-entry programs are not just a matter of public safety-it’s also an issue of housing and health care; a question of education and employment; and a family challenge that affects millions across the country every year. Since 2009 we have proudly participated in CARE along with many others in the federal judiciary, the Federal Public Defender’s Office, and the U.S. Probation Office. Numerous private individuals and private organizations have also devoted significant time and money to implement ground-breaking public-private partnerships to provide participants with access to a range of otherwise unavailable resources. We are gratified that WVIA has dedicated its resources to chronicle our efforts and the numerous successful outcomes that have resulted. I want to thank all those who played a part in producing this remarkable documentary and I also want to express my appreciation to all the private individuals and private organizations who have contributed to the program’s success over the years.”
###
10 Years in Prison for Highlands County Drug TraffickersRead the Press Release
Miami, Florida – U.S. District Judge K. Michael Moore has sentenced a 53-year-old man from Highlands County, Florida, to 120 months in prison for drug trafficking.
According to the court record, in 2019, Leon McNeil Roberts sold methamphetamine in Avon Park, Highlands County on three separate occasions. Specifically, on June 19, 2019, Roberts sold 27.38 grams of methamphetamine (actual) to a buyer. On June 28, 2019, Roberts sold 27.227 grams of methamphetamine (actual) to a buyer. And, on July 24, 2019, Roberts he sold 26.949 grams of methamphetamine (actual) to a buyer.
Roberts previously pled guilty to distribution of five grams or more of methamphetamine.
Juan Antonio Gonzalez, Acting U.S. Attorney for the Southern District of Florida, and La Verne J. Hibbert, Acting Special Agent in Charge, Drug Enforcement Administration, Miami Field Division made the announcement.
DEA Miami investigated this case. Assistant U.S. Attorney Michael D. Porter is prosecuting it.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-14005.
###
Wednesday 13 October 2021
Youngstown men appear in federal court on multiple drug chargesRead the Press Release
WHEELING, WEST VIRGINIA – Kamron Eugene Miller, Sr. and Andre Duana Bundy, both of Youngstown, Ohio, are appearing today on multiple drug charges, United States Attorney William, J. Ihlenfeld, II announced.
Miller, 34, and Bundy, 38, are each charged with one count of “Conspiracy to Distribute and Possess with the Intent to Distribute 50 Grams or More of Methamphetamine, Fentanyl, Cocaine Hydrochloride, and Cocaine Base,” three counts of “Distribution of 50 Grams or More of Methamphetamine,” one count of “Distribution of Methamphetamine,” and one count of “Distribution of Fentanyl.” Miller and Bundy are accused of working together to distribute the drugs from May to September 2021 in Hancock County and elsewhere, including the Northern District of Ohio.
The indictment also includes a forfeiture allegation involving more than $210,000 in cash, an assault rifle, two pistols, and several rounds of ammunition seized during the investigation of the case.
Assistant U.S. Attorneys Shawn M. Adkins and Clayton J. Reid are prosecuting the case on behalf of the government. The Hancock-Brooke-Weirton Drug Task Force, a HIDTA-funded initiative; the Drug Enforcement Administration Wheeling; the Drug Enforcement Administration Youngstown; and the Ohio Highway Patrol investigated. The Marshall County Drug Task Force, a HIDTA-funded initiative; the Ohio Valley Drug Task Force, a HIDTA-funded initiative; and the Mahoning County, Ohio Sheriff’s Office assisted in the investigation.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Magistrate Judge James P. Mazzone presided.
William S. Thompson Sworn in as United States Attorney for the Southern District of West VirginiaRead the Press Release
U.S. Attorney William S. ThompsonCHARLESTON, W.Va. – William S. Thompson took the oath of office today to become the United States Attorney for the Southern District of West Virginia. President Joseph R. Biden, Jr. announced Thompson’s nomination on August 10, 2021, and the United States Senate confirmed him on October 5, 2021. Thompson was sworn in by Chief United States District Judge Thomas E. Johnston in a private ceremony.
“It is an honor to serve as the U.S. Attorney for the Southern District of West Virginia,” said U.S. Attorney William S. Thompson. “I look forward to leading the dedicated public servants in the office as we work in partnership with federal, state and local law enforcement to make communities throughout southern West Virginia safer places to live.”
As United States Attorney, Thompson is the top-ranking law enforcement official in the Southern District of West Virginia. Thompson will oversee a staff of 34 attorneys and 41 non-attorney personnel located in offices in Charleston, Huntington, and Beckley. The office is responsible for prosecuting federal crimes in the district, including crimes related to terrorism, public corruption, child exploitation, firearms, and narcotics. The office also defends the United States in civil cases and collects debts owed to the United States.
Prior to taking office as United States Attorney, Thompson was a Circuit Court Judge in West Virginia’s 25th Judicial Circuit. He was appointed to that position in 2007 and re-elected in 2008 and 2016. Thompson presided over several treatment courts, including the first family treatment court in West Virginia. Prior to becoming a Circuit Court Judge, Thompson practiced law at the law firm of Cook and Cook in Boone County. There, he focused on litigation, which included representing several hundred indigent clients in criminal defense and other matters. Thompson also previously served as President of Madison Healthcare, Inc. and as Vice President of Danville Lumber Company.
Thompson was born in Charleston and raised in Boone County, West Virginia. He earned a degree in civil engineering from West Virginia University and a law degree from West Virginia University College of Law.
Thompson and his wife, Keri, are the proud parents of four children.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia.
Westmoreland County Man Pleads to Drug Possession ChargeRead the Press Release
JOHNSTOWN, Pa. – A former resident of New Florence, PA pleaded guilty in federal court to a charge of violating federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
Nicholas Beard, 28, pleaded guilty to Count One of the Indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on or about October 9, 2020, Beard did possess with intent to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine, and a quantity of a mixture and substance containing a detectable amount of fentanyl.
Judge Gibson scheduled sentencing for Feb. 16, 2022 at 9:30 a.m. The law provides for a minimum sentence of 5 years in prison to a maximum of 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Arnold P. Bernard Jr. is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Laurel Highlands Resident Agency, Southwest Pennsylvania Safe Streets Task Force, and the Indiana County Drug Task Force led the prosecution of Beard.
West Plains Man Sentenced for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A West Plains, Missouri, man was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine in Howell, Greene, and Texas counties.
Jose I. Gonzales, 39, was sentenced by U.S. District Judge Stephen R. Bough to 10 years in federal prison without parole.
On July 23, 2020, Gonzales pleaded guilty to participating in a conspiracy to distribute methamphetamine from Dec. 31, 2015, to June 21, 2019. Gonzales admitted that he received distributive amounts of methamphetamine from co-defendants Shirley J. Hicks, 63, of West Plains, and Luis Ortiz Rodriguez, 38, address unknown, both of whom have pleaded guilty and await sentencing. Gonzales then distributed methamphetamine to others.
When Gonzales was stopped by law enforcement officers on July 24, 2018, he was in possession of 76.1 grams of methamphetamine. Gonzales admitted that he had recently purchased methamphetamine from Hicks. Law enforcement officers executed a search warrant at Hicks’s residence on the same day. They found a red toolbox inside a shop/barn that contained six bags with a total of 5.627 kilograms of pure methamphetamine. Inside a bedroom closet in the house, officers also found 12 bags with a total of 243 grams of pure methamphetamine inside a black leather bag, and a bag of methamphetamine inside a blue waterproof box that contained 122.892 grams of pure methamphetamine. Officers also seized a total of $20,393, which Hicks admitted was proceeds from her distribution of methamphetamine.
On March 20, 2019, law enforcement officers executed a search warrant at the residence of Gonzales’s girlfriend, where they found a baggie that contained approximately 9.4 grams of methamphetamine, a baggie that contained approximately .15 grams of methamphetamine, a baggie that contained assorted pills, a baggie that contained a small amount of marijuana, several glass smoking devices, and a loaded Bersa .380-caliber pistol.
Gonzales is the fourth defendant sentenced in this case. Benny D. Griffin, 59, of West Plains, was sentenced to 15 years in federal prison without parole. Jordan W. Gutierrez, 27, of West Plains, was sentenced to 12 years and six months in federal prison without parole. Fontella J. Noose, 40, of Springfield, Mo., was sentenced to 20 years in federal prison without parole.
Co-defendants Shaun M. Ross, 43, and Raymon F. Ortega, 65, both of West Plains, and James Cooper, 54, of Mountain View, Mo., also have pleaded guilty and await sentencing.
This case is being prosecuted by Assistant U.S. Attorney Jessica R. Sarff. It was investigated by the South Central Drug Task Force, the Drug Enforcement Administration, the Missouri State Highway Patrol, the Howell County, Mo., Sheriff’s Department, the West Plains, Mo., Police Department, and the Mountain View, Mo., Police Department.
Wausau Woman Sentenced to 90 Months Imprisonment for Child Pornography DistributionRead the Press Release
Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on October 12, 2021, Natalie J. Ticho (age: 25) of Wausau, Wisconsin, was sentenced to 90 months in federal prison by Senior United States District Judge William C. Griesbach for distribution of child pornography.
According to court filings, on November 17, 2020, undercover investigators received digital images of child pornography from an online user named “kiikii_24.” “Kiikii_24” also engaged in explicit conversations concerning the sexual abuse of children with the undercover investigators. It was subsequently determined that “kiikii_24” was, in fact, Natalie J. Ticho. A search warrant was obtained for Ticho’s residence and electronic devices. A review of those items revealed hundreds of images of child pornography and several online accounts used for the purpose of obtaining and distributing illegal images.
At sentencing, Judge Griesbach noted the serious nature of the charge and the need for just punishment for such a “terrible crime.” Following her release from prison, Ticho will spend ten years on supervised release. She will also be required to register as a sexual offender.
Ticho’s arrest and subsequent conviction were part of Operation Kick Boxer, a collaborative effort involving the Milwaukee Division of the Federal Bureau of Investigation (FBI), the U.S. Attorney's Office for the Eastern District of Wisconsin, and the Winnebago County Sheriff's Office. (https://go.usa.gov/xfPHh). The Wausau Police Department, the Marathon County Sheriff’s Office, and the Marathon County District Attorney’s Office also assisted in the investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
# # #
For Additional Information Contact:
Public Information Officer Kenneth Gales 414-297-1700
Follow us on Twitter
Waterloo Shooting Results in Federal ConvictionRead the Press Release
A Waterloo man who exchanged gunfire with others in the 900 block of West Fifth Street in Waterloo, Iowa, on July 31, 2020, pled guilty today in federal court in Cedar Rapids.
Tony Terrell Campbell, age 37, from Waterloo was convicted of one count of being a felon in possession of a firearm.
At the plea hearing, Campbell admitted he had a firearm on July 31, 2020, and had previously been convicted of multiple felony offenses including three burglary offenses, theft of lottery tickets, conspiracy to commit a forcible felony, and assault while participating in a felony.
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.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Campbell remains in custody of the United States Marshal pending sentencing. Campbell faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and 3 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Patrick Reinert and was investigated by the Waterloo Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-2050. Follow us on Twitter @USAO_NDIA.
U.S. Attorney’s Office presents Medicolegal Symposium to discuss the case against Reta Mays, convicted VA hospital murdererRead the Press Release
CLARKSBURG, WEST VIRGINIA – The U.S. Attorney’s Office, Northern District of West Virginia, is teaming up with Department of Veterans Affairs Office of Inspector General, the FBI, and West Virginia University to hold a symposium discussing the cutting-edge methods used to convict a serial killer who preyed on veterans at the veteran’s hospital in Clarksburg.
In May 2021, Reta Mays, a former nursing assistant at the veteran’s hospital in Clarksburg, was sentenced to seven life terms in prison plus 20 years for murdering seven patients with insulin and attempting to murder an eighth veteran. The two-year investigation that preceded the July 2020 guilty pleas was highly complex.
The symposium consists of examining the clinical, forensic, psychiatry, and legal prosecution techniques used to ensure justice for Mays’ victims and their families. The prosecution team, investigators, and experts from around the globe will be presenting during this dynamic event. The symposium has been approved for CLE and CME credits. Credits for LE in-service are pending.
“The Medicolegal Symposium on the Serial Murder Case of Reta Mays” will be held at the WVU College of Law on Thursday, October 14 from 9:00 a.m.-4:30 p.m.
###
U.S. Attorney’s Office Commemorates Domestic Violence Awareness MonthRead the Press Release
In commemoration of October as Domestic Violence Awareness Month, the U.S. Attorney's Office for the Northern District of Ohio is announcing more than $3.3 million in grant funding awarded to programs in the District that address sexual assault, domestic violence, dating violence and stalking in Northern Ohio communities. This grant funding is awarded through the Department of Justice’s Office on Violence Against Women (OVW).
The following is a brief description of the programs and recipients receiving awards.
Transitional Housing Assistance for Victims of Domestic Violence, Dating Violence, Sexual Assault, and Stalking Program (Transitional Housing Program). Recipients include:
- Asian Service In Action, Inc., $475,000
- Cleveland Rape Crisis Center, $325,000
The Transitional Housing Program provides aid to victims of domestic violence, dating violence, sexual assault, and stalking who are homeless, or in need of transitional housing or other housing assistance, as a result of their victimization, and for whom emergency shelter services or other crisis intervention services are unavailable or insufficient.
Sexual Assault Services Culturally Specific Program (SAS Culturally Specific Program). Recipients include:
- Asian Service In Action, Inc., $475,000
The SAS Culturally Specific Program provides intervention and assistance to victims of sexual assault from culturally specific communities that confront unique challenges when seeking assistance, such as language and cultural barriers.
Legal Assistance for Victims (LAV) Grant Program. Recipients include:
- The Ohio Alliance to End Sexual Violence, $800,000.
The LAV program aims to increase the availability of civil and criminal legal assistance for adult and youth victims of domestic violence, dating violence, sexual assault and stalking by providing funds for legal services to victims in matters relating to or arising out of that abuse or violence.
Grants to Support Families in the Justice System program (referred to as the Justice for Families Program). Recipients include:
- Community Legal Aid Service Inc, $650,000
- Legal Aid of Western Ohio, Inc. $650,000
The Justice for Families Program seeks to improve the response of the civil and criminal justice system to families with a history of domestic violence, dating violence, sexual assault and stalking or in cases involving allegations of child sexual abuse.
The Office on Violence Against Women provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges.
Learn more at www.justice.gov/ovw.
To sign up for OVW alerts visit this webpage or follow OVW on Twitter @OVWJustice.
U.S. Attorney Damian Williams Announces the Selection of Deputy U.S. Attorney and Chief of the Criminal DivisionRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, today announced the selection of Margaret Garnett as Deputy United States Attorney and Daniel M. Gitner as Chief of the Office’s Criminal Division.
Since December 2018, Ms. Garnett has served as the Commissioner of New York City’s Department of Investigation (“DOI”), one of the oldest municipal anti-corruption agencies in the United States. Prior to her service at DOI, Ms. Garnett served as Executive Deputy Attorney General for Criminal Justice in the Office of the New York State Attorney General. Ms. Garnett was an Assistant U.S. Attorney in the Office for 12 years, serving at times as Chief of Appeals and Chief of the Violent and Organized Crime Unit. She received the Director’s Award for Outstanding Performance and the Stimson Medal for her exceptional service in the Criminal Division. Prior to her public service, Ms. Garnett worked as an associate at Wachtell, Lipton, Rosen & Katz. She began her public service career as a law clerk to the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York. Ms. Garnett received her B.A. from the University of Notre Dame, her M.A. from Yale University, and her J.D. from Columbia University.
Mr. Gitner returns to the Office from the law firm of Lankler Siffert & Wohl, where he has served as a partner since 2005. From 1997 to 2005, he served as an Assistant U.S. Attorney in the Southern District of New York and served, from 2003 to 2005, as Chief of the General Crimes Unit. During his tenure, he received the Director’s Award for Superior Performance and was named the Federal Prosecutor of the Year in 2003 by the Federal Law Enforcement Foundation. He began his legal career as a law clerk to the Honorable Naomi Reice Buchwald and to the Honorable Barbara S. Jones, both of the U.S. District Court for the Southern District of New York. Mr. Gitner received his B.A. from Cornell University and his J.D. from Columbia University.
In making these selections, U.S. Attorney Damian Williams said: “I am pleased to welcome Margaret and Dan back to the U.S. Attorney’s Office. Margaret was a legendary Assistant U.S. Attorney. During her time in the Office, she led some of the Office’s most important investigations and prosecutions, and mentored countless AUSAs. Her storied career in public service leaves no doubt that she will be an exceptional Deputy U.S. Attorney. Dan was one of the best AUSAs of his generation when he was in the Office, and he has been one of the best trial lawyers in America since he left. I am confident that his experience, judgment, and love for the Office will make him an outstanding Chief of the Criminal Division. I want to thank Ilan Graff and Laura Birger for their friendship and outstanding service to the Office during some of the most unprecedented times in the history of the Southern District of New York. I have asked Ilan and Laura to continue their service until Margaret’s and Dan’s arrival and to advise the new Executive staff, and me, during this period of transition.”
U.S. Attorney Announces Charges Against 11 Members of Money Laundering and Bank Fraud RingRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Patrick J. Freaney, the Special Agent-in-Charge of the New York Field Office of the United States Secret Service (“Secret Service”), announced today the unsealing of an Indictment charging 11 defendants with conspiracy to commit money laundering, conspiracy to commit bank fraud, and aggravated identity theft, in connection with their involvement in laundering millions of dollars in proceeds derived from business email compromises and romance fraud schemes. Nine defendants were arrested today in the District of New Jersey and the Eastern District of New York, and will be presented this afternoon before United States Magistrate Judge Sarah Netburn in the Southern District of New York. One defendant was arrested in the Southern District of Texas, and will be presented today in that district’s federal court. One defendant remains at large.
U.S. Attorney Damian Williams said: “As alleged, the defendants were part of a criminal enterprise that not only defrauded businesses by assuming the online identities of legitimate counterparties, but also preyed on vulnerable elderly people, deceiving victims into sending money in phony romance scams. Thanks to the Secret Service, the defendants are now facing federal felony charges.”
Secret Service Special Agent-in-Charge Patrick J. Freaney said: “As the continued threat posed by cyber enabled fraud remains ever present, the U.S. Secret Service remains steadfast in its pursuit of those who threaten our collective financial security. This case is no exception, as the defendants allegedly utilized a myriad of fraud schemes, to include romance scams and business email compromises, to defraud over 50 victims in excess of $9 million. Due to the efforts of the Secret Service and our partners at the New York City Police Department Financial Crimes Task Force, this organized group will no longer be able to operate its alleged scheme to defraud and will answer the charges brought against them in the Southern District of New York.”
As alleged in the Indictment unsealed in Manhattan federal court[1]:
ADEDAYO JOHN, OLUWADAMILOLA AKINPELU, KAZEEM RAHEEM, MORAKINYO GBEYIDE, WARRIS ADENUGA, a/k/a “Blue,” SMART AGUNBIADE, LATEEF GOLOBA, SAMSONDEEN GOLOBA, OLAWALE OLANIYAN, OLAWOYIN PETER OLAREWAJU, and EMMANUEL ORONSAYE-AJAYI (collectively, the “Defendants”) participated in one or both of a money laundering conspiracy and bank fraud conspiracy, which received funds stolen from victims.
Victims were typically defrauded in one of two ways. In some instances, business email compromise fraud schemes were used to trick businesses into transferring funds to bank accounts the victims believed were under the control of legitimate recipients of the funds as part of normal business operations, when in fact the bank accounts were under the control of the Defendants or their co-conspirators. In other instances, romance scams were used, primarily through electronic messages sent via email, text messaging, social media, or online dating websites, to deceive victims – many of whom were vulnerable older men and women – into believing they were in romantic relationships with fake identities, and then using false pretenses to cause the victims to transfer funds to bank accounts controlled by the Defendants or their co-conspirators.
As a result of these frauds, law enforcement officers have identified more than 50 victims who have transferred more than $9 million to bank accounts under the control of the Defendants.
* * *
Ten defendants – ADEDAYO JOHN, 32, OLUWADAMILOLA AKINPELU, 26, KAZEEM RAHEEM, 29, MORAKINYO GBEYIDE, 39, WARRIS ADENUGA, a/k/a “Blue,” 26, LATEEF GOLOBA, 27, SAMSONDEEN GOLOBA, 29, OLAWALE OLANIYAN, 41, OLAWOYIN PETER OLAREWAJU, 34, and EMMANUEL ORONSAYE-AJAYI, 30 – are each charged with one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison. Nine defendants – ADEDAYO JOHN, 32, SMART AGUNBIADE, 28, OLUWADAMILOLA AKINPELU, 26, MORAKINYO GBEYIDE, 39, WARRIS ADENUGA, a/k/a “Blue,” 26, LATEEF GOLOBA, 27, SAMSONDEEN GOLOBA, 29, OLAWOYIN PETER OLAREWAJU, 34, and EMMANUEL ORONSAYE-AJAYI, 30 – are each charged with one count of conspiracy to commit bank fraud, which carries a maximum sentence of 30 years in prison. One defendant – MORAKINYO GBEYIDE, 39 – is also charged with one count of aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison. The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by a judge.
Mr. Williams praised the outstanding investigative work of the Secret Service. The case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Kaylan E. Lasky and Matthew Weinberg are in charge of the prosecution.
The charges contained in the Indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations and every fact described should be treated as an allegation.
Two Individuals Sentenced for COVID-19 Relief FraudRead the Press Release
A Georgia man was sentenced today to 18 months in federal prison for fraudulently obtaining $285,742 through a Paycheck Protection Program (PPP) loan guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security Act.
Dennes Garcia, 28, of Atlanta, pleaded guilty in the Southern District of Florida to conspiracy to commit wire fraud on July 6. According to court documents, Garcia admitted to obtaining a PPP loan of $285,742 for his own company, Dhanda Corporation, based on false information about the company’s number of employees and average payroll, and based on false supporting tax documents. Garcia also admitted that he wrote himself a check for $100,000 using the PPP loan proceeds, and further admitted that he paid more than $71,000 to an alleged co-conspirator, James Stote, as a kickback for his assistance in preparing and submitting the fraudulent loan application. In addition to his prison sentence, Garcia was ordered to pay $285,742 in restitution and $285,742 in forfeiture.
Relatedly, Cindi Denton, 63, of Eastvale, California, was sentenced on Oct. 8 to six months in prison and 12 months of home confinement after pleading guilty in the Southern District of Florida to conspiracy to commit wire fraud on July 22. According to court documents, Denton admitted to obtaining a PPP loan of $491,310 for her own company, Emerald Jade Solutions Inc., based on false information about the company’s number of employees and average payroll and based on false supporting tax documents. Denton also admitted that she sent a $150,000 wire to her personal checking account using the PPP loan proceeds, and further admitted that she paid more than $98,000 to alleged co-conspirator Stote as a kickback for his assistance in preparing and submitting the fraudulent PPP loan application. In addition to her prison sentence, Denton was ordered to pay $377,883.91 in restitution and $377,883.91 in forfeiture.
Stote was charged by complaint on June 24, 2020, with wire fraud, bank fraud, and conspiracy to commit wire fraud. His case remains pending.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Juan Antonio “Tony” Gonzalez of the Southern District of Florida; Special Agent in Charge Michael J. De Palma of the IRS-Criminal Investigation (IRS-CI) Miami Field Office; Special Agent in Charge George L. Piro of the FBI’s Miami Field Office; and Special Agent in Charge Amaleka McCall-Brathwaite of the SBA’s Office of Inspector General (SBA-OIG) Eastern Region made the announcement.
IRS-CI, the FBI, and SBA-OIG investigated the cases.
Trial Attorney Philip Trout of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Lindsey Lazopoulos Friedman of the Southern District of Florida prosecuted the cases.
The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. Since the PPP began, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Individuals Sentenced for COVID-19 Relief FraudRead the Press Release
Miami, Florida – A Georgia man was sentenced today to 18 months in federal prison for fraudulently obtaining $285,742 through a Paycheck Protection Program (PPP) loan guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Dennes Garcia, 28, of Atlanta, pleaded guilty in the Southern District of Florida to conspiracy to commit wire fraud on July 6. According to court documents, Garcia admitted to obtaining a PPP loan of $285,742 for his own company, Dhanda Corporation, based on false information about the company’s number of employees and average payroll and based on false supporting tax documents. Garcia also admitted that he wrote himself a check for $100,000 using the PPP loan proceeds, and further admitted that he paid $71,435.50 to an alleged co-conspirator, James Stote, as a kickback for his assistance in preparing and submitting the fraudulent loan application. In addition to his prison sentence, Garcia was ordered to pay $285,742 in restitution and $285,742 in forfeiture.
Relatedly, Cindi Denton, 63, of Eastvale, California, was sentenced on Oct. 8 to six months in prison and 12 months of home confinement after pleading guilty in the Southern District of Florida to conspiracy to commit wire fraud on July 22. According to court documents, Denton admitted to obtaining a PPP loan of $491,310 for her own company, Emerald Jade Solutions Inc., based on false information about the company’s number of employees and average payroll and based on false supporting tax documents. Denton also admitted that she sent a $150,000 wire to her personal checking account using the PPP loan proceeds, and further admitted that she paid $98,262 to alleged co-conspirator Stote as a kickback for his assistance in preparing and submitting the fraudulent PPP loan application. In addition to her prison sentence, Denton was ordered to serve three years of supervised release, and to pay $377,883.91 in restitution and $377,883.91 in forfeiture.
Stote was charged by complaint on June 24, 2020, with wire fraud, bank fraud, and conspiracy to commit wire fraud, and his case remains pending.
Acting U.S. Attorney Juan Antonio Gonzalez of the Southern District of Florida; Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Special Agent in Charge Michael J. De Palma of the IRS-Criminal Investigation (IRS-CI) Miami Field Office; Special Agent in Charge George L. Piro of the FBI’s Miami Field Office; and Special Agent in Charge Amaleka McCall-Brathwaite of the SBA’s Office of Inspector General (SBA-OIG) Eastern Region made the announcement.
The IRS-CI, FBI, and SBA-OIG investigated the case.
Assistant U.S. Attorney Lindsey Lazopoulos Friedman and of the Southern District of Florida and Trial Attorney Philip Trout of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. Since the PPP began, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
###
Trini E. Ross Sworn in as U.S. Attorney for the Western District of New YorkRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. – Trini E. Ross was sworn in on Monday, October 11, 2021, as United States Attorney for the Western District of New York. Ms. Ross was nominated by President Joseph R. Biden, Jr. on July 26, 2021, and unanimously confirmed by the Senate on September 30, 2021, for the Western District of New York. President Biden signed Ms. Ross’s commission on October 5, 2021. Chief U.S. District Judge Elizabeth A. Wolford administered the oath of office to U.S. Attorney Ross on Monday.
“It is an honor to serve as the United States Attorney for the Western District of New York,” stated U.S. Attorney Ross. “I look forward to working with the dedicated staff in our office, as well as our law enforcement partners at the federal, state and local levels, as we all work together to uphold the mission of the Department of Justice. I also look forward to working with our community partners as we strive to make the neighborhoods throughout our district safe and secure for all residents.”
As U.S. Attorney, Ms. Ross is responsible for overseeing the prosecution of any federal criminal case brought within the 17 counties of Western New York. The Office also represents the United States in all civil matters brought within this territory.
Ms. Ross most recently served as the Director of Investigations, Legal Division, with the National Science Foundation’s Office of Inspector General since 2018. Ms. Ross has also been an adjunct professor at The State University of New York, at Buffalo, School of Law, since 2006. From 1995 to 2018, Ms. Ross was an Assistant United States Attorney for the Western District of New York, where she served as the Senior Litigation Counsel and the Chief of the Anti-Fraud and Corruption Section from 2012 to 2017. Ms. Ross also served as an Assistant Counsel with the Department of Justice’s Office of Professional Responsibility from 2007 to 2009. She was previously a civil litigation associate at Hiscock & Barclay, LLC from 1994 to 1995. Ms. Ross served as an Appellate Court Attorney for the New York State Supreme Court from 1992 to 1994.
Ms. Ross, native of Buffalo, NY, received her J.D., cum laude, from The State University of New York, at Buffalo, School of Law, in 1992, her M.A. from Rutgers University in 1990, and her B.A. from The State University of New York, at Fredonia, in 1988.
# # # #
Tijuana Man Sentenced to Nearly 9 Years in Prison for Attempting to Buy Machine Guns, Grenades in Exchange for Fentanyl and HeroinRead the Press Release
LOS ANGELES – A former San Bernardino County resident was sentenced today to 105 months in federal prison for providing approximately 1 kilogram of fentanyl and 1 kilogram of heroin in exchange for machine guns, grenade launchers and a case of what he believed were six dozen live grenades.
Pedro Roberto Hernandez-Gomez, 32, formerly of San Bernardino and who was a resident of Tijuana, Mexico at the time of his arrest, was sentenced by United States District Judge André Birotte Jr. Hernandez-Gomez pleaded guilty on March 12 to one count of distribution of fentanyl.
In January 2020, Hernandez-Gomez agreed to provide narcotics in exchange for firearms to a person he believed was a drug customer, but who was in fact a source working with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Hernandez-Gomez provided 999.25 grams of heroin and 1,001.19 grams of fentanyl to the source and an undercover ATF agent.
In exchange for the narcotics, Hernandez-Gomez received three machine guns, two grenade launchers and one case of 72 inert grenades, which Hernandez-Gomez believed were actual grenades.
Hernandez-Gomez possessed these firearms despite having been previously convicted of a felony offense – possession with intent to distribute heroin – in federal court in Arizona in February 2014. He was sentenced to three years in federal prison for that offense.
“The distribution of illegal drugs poses a serious danger to the community, especially the distribution of fentanyl, a potent and powerful opioid,” prosecutors wrote in their sentencing memorandum. “Further concerning is that [Hernandez-Gomez] was providing this large quantity of drugs in exchange for dangerous firearms, that is, machine guns and grenade launchers.”
The ATF investigated this matter.
Assistant United States Attorney Ashley Fillmore of the General Crimes Section prosecuted this case.
Third and Final Defendant Sentenced for Stealing from Railroad CarsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Paul Krieger, 46, of Sloan, NY, who was convicted of breaking into and larceny from interstate carrier facilities, was sentenced to serve 57 months in prison by U.S. District Judge John L. Sinatra, Jr.
Assistant U.S. Attorney Laura A. Higgins, who handled the case, stated that on 10 dates in May and June 2018, the defendant and co-defendants Ray Chrostowski and Nicholas Birdwell went to the railyards in the vicinity of Broadway and Bailey Avenue in Buffalo, broke into railcars using a crowbar, bolt-cutters, and other tools, entered the cars, and stole property. The property included televisions, sound systems, microwaves, sneakers, liquor, tires and rims from vehicles, and UPS shipping parcels. On each occasion, Krieger directed Birdwell and Chrostowski regarding which railcar to enter, what property to remove, where to hide the stolen items, and the manner by which each should conduct themselves in order to conceal their conduct from the attention of law enforcement and railyard personnel.
• On June 8, 2018, the three defendants broke into a railcar carrying automobiles and removed the tires and rims from a 2018 Jeep and a 2018 Dodge.
• On June 22, 2018, the defendants stole approximately 20 cases (120 bottles) of Jefferson bourbon, and sold them for profit.
• On June 26, 2018, the defendants stole a 50-inch Samsung television.Chrostowski and Birdwell were previously convicted and sentenced to serve 18 months in prison.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and the CSX Police, under the direction of Chief Sean Douris.
# # # #
Texas Pharmacist Pleads Guilty to Adulterating Drug Used in Cataract SurgeriesRead the Press Release
A Texas man pleaded guilty Tuesday to one count of adulterating a drug that was used in cataract surgeries.
According to court documents, Jack Randall Munn, 71, of Dallas, a licensed pharmacist and former owner of Guardian Pharmacy Services (Guardian), a Dallas pharmacy, oversaw the compounding of the drug for two outpatient Dallas surgical centers in 2016 and 2017. The drug, a combination of an antibiotic and a steroid, contained an excessive amount of an inactive ingredient that can damage sensitive eye tissue.
At the time of the events described in court documents, Munn represented to the surgical centers that Guardian could compound the drug in a manner safe for injection into patients’ eyes. However, the drug made by Guardian contained an excessive amount of the inactive ingredient, causing its purity and quality to fall below that which it was represented to possess.
Munn pleaded guilty to one misdemeanor count of distributing an adulterated drug in violation of the Federal Food Drug and Cosmetic Act. He is scheduled to be sentenced on Feb. 3, 2022 and faces a maximum penalty of one year in prison and a fine of up to $100,000. The federal magistrate judge who presided over Munn’s guilty plea will determine sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Food and Drug Administration’s (FDA) Office of Criminal Investigations investigated the case.
Assistant Director John Claud, Senior Trial Counsel David A. Frank and Trial Attorney Sarah Williams of the Civil Division’s Consumer Protection Branch are prosecuting the case. Associate Chief Counsel for Enforcement Karen Towns with the FDA’s Office of Chief Counsel, and the U.S. Attorney’s Office for the Northern District of Texas provided valuable assistance in the case.
Texas Man Sentenced for Hate Crime and Other Charges After Using Dating App to Target Gay Men for Violent CrimesRead the Press Release
Daniel Jenkins, 22, of Dallas was sentenced today for committing violent crimes as part of a conspiracy to target users of the dating app Grindr. Jenkins was sentenced to a federal prison term of 280 months for his involvement in the scheme to target gay men for violent crimes. He is the last of four defendants to be sentenced in this case.
According to documents filed in connection with this case, the defendant admitted that he conspired to and then targeted nine men in and around Dallas for violent crimes, including kidnapping, carjacking and hate crimes, because of his perception of the victims’ sexual orientation, that is, because he believed the victims were gay men. Beginning on or around Dec. 6, 2017, members of the conspiracy used Grindr, a social media dating platform used primarily by gay men, to lure men to an apartment complex in Dallas. When the men arrived, the conspirators held the men at gunpoint and forced them to drive to local ATMs to withdraw cash from their accounts.
“This defendant targeted innocent victims for violent crimes simply because he believed they were gay,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This sentence affirms that bias-motivated crimes run contrary to our national values and underscores the Justice Department’s commitment to aggressively prosecuting bias-motivated crimes, including crimes against the LGBTQI community. We will continue to pursue justice for victims of bias-motivated crimes, wherever they occur.”
“This defendant singled out victims based on their perceived sexual orientation, then viciously assaulted them. The Department of Justice will not tolerate these sorts of heinous, hate-based attacks,” said Acting U.S. Attorney Chad Meacham for the Northern District of Texas. “Unfortunately, despite our best efforts, bigots often lurk online. We urge users of dating apps like Grindr to remain vigilant.”
“This sentence sends a strong message that individuals who conduct violent, targeted attacks will be held accountable,” said Special Agent in Charge Matthew J. DeSarno of the FBI Dallas Field Office. “Investigating hate crimes is one of the FBI's highest priorities and we will continue to vigorously pursue offenders that threaten our families and communities. Everyone deserves to be and feel safe and we take this opportunity to urge the public to report suspected hate crimes to the FBI and local law enforcement.”
With his guilty plea on June 2, Jenkins admitted to joining the conspiracy to target gay men for violent crimes. Starting in December of 2017, Jenkins and a coconspirator created user profiles on Grindr and used the profiles to lure men they perceived to be gay to a location to rob them. Jenkins further admitted that on Dec. 11, 2017, he and others lured multiple victims to the apartment complex, pointed a handgun at them, took their personal property and assaulted them, causing at least one victim physical injury. Jenkins admitted that he knew that members of the conspiracy used gay slurs and taunted the victims, and that at least one member of the conspiracy attempted to sexually assault a victim. Jenkins also admitted to participating in the carjacking of at least one victim.
Jenkins was the last of four defendants to plead guilty in this case. Jenkins pleaded guilty to one count of conspiracy to commit hate crimes, kidnapping, and carjacking; one hate crime count; and one count of use of a firearm during and in relation to a crime of violence. Under the plea agreement, Jenkins faced a maximum sentence of 26 years in prison. Jenkins’ coconspirators: Michael Atkinson, Pablo Ceniceros-Deleon and Daryl Henry, had previously pleaded guilty. Atkinson was sentenced to more than 11 years in prison, Ceniceros-Deleon was sentenced to 22 years in prison and Henry was sentenced to 20 years in prison.
The FBI’s Dallas Field Office conducted the federal investigation; a separate criminal investigation is being conducted by the Dallas Police Department. Deputy Chief Rose E. Gibson and Trial Attorney Kathryn Gilbert of the Justice Department’s Civil Rights Division, along with Assistant U.S. Attorney Nicole Dana, prosecuted the case.
Trial Set for Five Defendants Charged in Firearm Trafficking ConspiracyRead the Press Release
Acting United States Attorney Bob Murray announced today that the United States District Court for the District of Wyoming has completed arraignment hearings and set a trial date for five defendants charged by indictment with conspiracy to make false statements during the purchase of firearms and to unlawfully transport and transfer firearms outside of the state of Wyoming. The co-conspirators charged include SHERWIN J. WILLIAMS, 26, of Lancaster, California, TIERRA HOLLAND, 33 of Cheyenne, Wyoming, DARWIN FRANCISCO THOMAS, 33, of Cheyenne, Wyoming, DEXTER ALFRED THOMAS, 31, of Gardena, California, and PHILLIP MARTIN FLORES, of Las Vegas, Nevada. The trial is set for January 18, 2022 and is expected to last eight days.
These crimes are being investigated by the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Wyoming Division of Criminal Investigation; Laramie Police Department, and the Cheyenne Police Department. Assistant United States Attorney Timothy J. Forwood is prosecuting the case.
An indictment merely containsSt. Paul Man Pleads Guilty to St. Paul Robbery SpreeRead the Press Release
ST. PAUL, Minn. – A St. Paul man pleaded guilty to one count of Hobbs Act robbery in relation to a robbery spree of St. Paul businesses, announced Acting U.S. Attorney W. Anders Folk.
According to court documents, on June 14, 2021, Warren Dean, 27, entered a Speedway gas station, flashed a realistic looking replica gun at the employees, and ordered them to give him money from the cash register. Dean ordered the employees to lay on the ground and fled the scene with approximately $292 in cash.
As part of his guilty plea to the Speedway robbery, Dean also admitted to robbing or attempting to rob another six St. Paul businesses between June 14 and 16, 2021. After his last robbery on June 16, St. Paul police attempted to apprehend Dean, but he fled from officers and led them on a 30-mile car chase that ended in north Minneapolis after Dean crashed into multiple parked cars. After his vehicle stopped, Dean refused to surrender and a four-hour standoff ensued before officers were able to take Dean into custody without incident.
Dean entered his guilty plea yesterday before Senior U.S. District Judge Michael J. Davis. A sentencing date has not been set.
This case is the result of investigations conducted by the FBI, the St. Paul Police Department, and the Minneapolis Police Department.
Assistant U.S. Attorney Harry M. Jacobs is prosecuting the case.
St. Charles man pleads guilty to distribution of fentanyl that led to death of area manRead the Press Release
ST. LOUIS – United States District Court Judge Henry E. Autrey accepted a plea of guilty from Keith A. Kos, Jr., on October 12, 2021, for the crimes of distribution of fentanyl and methamphetamine, possession with intent to distribute fentanyl and knowingly possessing a firearm in furtherance of a drug trafficking crime. Judge Autrey set sentencing for January 18, 2022.
According to the plea agreement, the case began on January 6, 2020, when the St. Charles County Police Department were dispatched to an area residence for an overdose death. A subsequent examination and toxicology analysis revealed the victim’s cause of death was the result of fentanyl and methamphetamine intoxication.
The investigation led to the identification of Kos. The investigators obtained a state search warrant for Kos’s residence. Investigators executed the search warrant and seized items including a pistol, more than 400 capsules of fentanyl and other drug paraphernalia. A subsequent lab analysis revealed the capsules contained 40 grams or more of fentanyl.
Pursuant to the plea agreement, Kos acknowledged and admitted that he knowingly distributed fentanyl and methamphetamine, knowingly possessed with the intent to distribute fentanyl and possessed a firearm while doing so.
The case was investigated by the St. Charles County Police Department and the Drug Enforcement Administration.
*****
South Florida Armed Robber Sentenced to 30 Years in Federal PrisonRead the Press Release
Miami, Florida – U.S. District Judge William P. Dimitrouleas handed down a 30-year federal prison sentence for Bryan David Burke, an Oakland Park man who went on a one-month armed robbery spree in South Florida earlier this year. The judge sentenced a second armed robber, Fort Lauderdale resident Kelvyn Lavon Cross, Jr., to 17 years’ imprisonment.
From February 24 to March 31, Burke robbed 10 stores in Broward and Palm Beach counties at gunpoint (including convenience stores, a liquor store, and a gas station). During each robbery, Burke pointed a firearm at the store cashier while an accomplice grabbed money, lottery tickets, and other valuables. Burke recruited Kelvyn Lavon Cross Jr. – who was on state probation after serving 13 years in prison for committing multiple robberies – to assist him on six of the robberies. Cross brandished a firearm during two of those robberies. On the day of Burke’s arrest, before officers took him into custody, Burke led officers on a high-speed chase, abandoned his vehicle, ran through multiple private backyards, and broke into a home where he had a fist fight with someone inside. After taking Burke into custody, officers seized two firearms and ammunition from him. Burke tried to discard one of the firearms while fleeing from officers.
On July 7, Burke pled guilty to five counts of federal robbery (Hobbs Act) and three counts of brandishing a firearm during a crime of violence. On July 28, Cross pled guilty to three counts of federal robbery (Hobbs Act) and two counts of possessing a firearm during a crime of violence.
A third South Florida resident, Brandon Xavier Jones, pled guilty in this case to two counts of federal robbery (Hobbs Act). Judge Dimitrouleas will sentence Jones on November 19, at 1:15 p.m., in federal district court in Fort Lauderdale.
Juan Antonio Gonzalez, Acting U.S. Attorney for the Southern District of Florida, and Robert Cekada, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, made the announcement.
ATF Miami (Plantation) investigated the case, with assistance from Broward Sheriff’s Office, Fort Lauderdale Police Department, Wilton Manors Police Department, and Delray Beach Police Department. Assistant United States Attorneys Ajay Alexander and Brooke Latta are prosecuting this case.
This case stems from Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. In 2017, PSN was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-60144.
###
Senior Executive of Oil-Services Company Pleads Guilty to Securities Fraud Scheme that Caused over $886 Million in Shareholder LossesRead the Press Release
A North Dakota man, formerly the executive vice president of U.S. operations at a publicly traded Canadian oil-services company, pleaded guilty today to perpetrating a scheme to fraudulently inflate the company’s reported revenue that resulted in shareholder losses in excess of $886 million.
According to court documents, Joseph A. Kostelecky, 60, of Dickinson, admitted that he engaged in a scheme to defraud while serving as the highest-ranking U.S. executive of Poseidon Concepts Corporation (Poseidon) from approximately November 2011 to December 2012. Kostelecky admitted that, in his role, he caused Poseidon to falsely report approximately $100 million in revenue from purported long-term contracts with oil and natural-gas companies that were Poseidon’s customers. Kostelecky’s misconduct included fraudulently directing Poseidon’s accounting staff at the U.S. corporate headquarters in Denver, Colorado, as well as its field office in Dickinson, to record revenue from such contracts and then assuring management that the associated revenue was collectable, when he knew that the contracts either did not exist or that the associated revenue was not collectable. After Poseidon reported a partial write-down of uncollectable accounts in its financial statements, resulting in a drop in the company’s stock price, Kostelecky fraudulently caused the issuance of a public filing falsely reporting that he had purchased a substantial number of shares of the company, when in fact he had made no such purchase. Kostelecky admitted that when the inflated revenue came to light at the end of 2012, Poseidon’s stock price plunged and the company was forced into bankruptcy, causing over $886 million in shareholder losses. Kostelecky further admitted that he perpetrated the scheme to inflate the value of the company’s stock price and to enrich himself through the continued receipt of compensation and appreciation of his own stock and stock options.
“Joseph Kostelecky engaged in a fraudulent scheme with catastrophic consequences to Poseidon Concepts Corporation and its shareholders, resulting in hundreds of millions of dollars in victim losses,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Today’s guilty plea demonstrates the department’s continued commitment to prosecuting executives at all levels of public companies, holding them accountable for their misconduct, and protecting the investing public from corporate malfeasance.”
“The U.S. Postal Inspection Service has a history of protecting American investors from fraudulent schemes perpetrated by individuals driven by sheer greed,” said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service’s Criminal Investigations Group. “Today’s guilty plea demonstrates corporate executives are not exempt from justice. The U.S. Postal Inspection Service and its federal law enforcement partners will continue to exhaust all their efforts to protect American shareholders from corporate fraud.”
Kostelecky pleaded guilty to one count of wire fraud and one count of securities fraud in the District of North Dakota. He is scheduled to be sentenced on Jan. 10, 2022, and faces a maximum total penalty of 40 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Postal Inspection Service Criminal Investigation Group’s DOJ Mail Fraud Team is investigating the case.
Assistant Deputy Chief Anna G. Kaminska and Trial Attorney Jason M. Covert of the Criminal Division’s Fraud Section are prosecuting the case. The Securities and Exchange Commission and the U.S. Attorney’s Office for the District of North Dakota provided valuable assistance in this matter.
Senior Executive of Oil-Services Company Pleads Guilty to Securities Fraud Scheme that Caused over $886 Million in Shareholder LossesRead the Press Release
WASHINGTON: A North Dakota man, formerly the executive vice president of U.S. operations at a publicly traded Canadian oil-services company, pleaded guilty today to perpetrating a scheme to fraudulently inflate the company’s reported revenue that resulted in shareholder losses in excess of $886 million.
According to court documents, Joseph A. Kostelecky, 60, of Dickinson, admitted that he engaged in a scheme to defraud while serving as the highest-ranking U.S. executive of Poseidon Concepts Corporation (Poseidon) from approximately November 2011 to December 2012. Kostelecky admitted that, in his role, he caused Poseidon to falsely report approximately $100 million in revenue from purported long-term contracts with oil and natural-gas companies that were Poseidon’s customers. Kostelecky’s misconduct included fraudulently directing Poseidon’s accounting staff at the U.S. corporate headquarters in Denver, Colorado, as well as its field office in Dickinson, to record revenue from such contracts and then assuring management that the associated revenue was collectable, when he knew that the contracts either did not exist or that the associated revenue was not collectable. After Poseidon reported a partial write-down of uncollectable accounts in its financial statements, resulting in a drop in the company’s stock price, Kostelecky fraudulently caused the issuance of a public filing falsely reporting that he had purchased a substantial number of shares of the company, when in fact he had made no such purchase. Kostelecky admitted that when the inflated revenue came to light at the end of 2012,
Poseidon’s stock price plunged and the company was forced into bankruptcy, causing over $886 million in shareholder losses. Kostelecky further admitted that he perpetrated the scheme to inflate the value of the company’s stock price and to enrich himself through the continued receipt of compensation and appreciation of his own stock and stock options.
"Joseph Kostelecky engaged in a fraudulent scheme with catastrophic consequences to Poseidon Concepts Corporation and its shareholders, resulting in hundreds of millions of dollars in victim losses," said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. "Today’s guilty plea demonstrates the department’s continued commitment to prosecuting executives at all levels of public companies, holding them accountable for their misconduct, and protecting the investing public from corporate malfeasance."
The U.S. Postal Inspection Service has a history of protecting American investors from fraudulent schemes perpetrated by individuals driven by sheer greed," said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service’s Criminal Investigations Group. "Today’s guilty plea demonstrates corporate executives are not exempt from justice. The U.S. Postal Inspection Service and its federal law-enforcement partners will continue to exhaust all their efforts to protect American shareholders from corporate fraud."
Kostelecky pleaded guilty to one count of wire fraud and one count of securities fraud in the District of North Dakota. He is scheduled to be sentenced on Jan. 10, 2022, and faces a maximum total penalty of 40 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Postal Inspection Service Criminal Investigation Group’s DOJ Mail Fraud Team is investigating the case.
Assistant Deputy Chief Anna G. Kaminska and Trial Attorney Jason M. Covert of the Criminal Division’s Fraud Section are prosecuting the case. The Securities and Exchange Commission and the U.S. Attorney’s Office for the District of North Dakota provided valuable assistance in this matter.
# # #
Savannah man sentenced to prison for setting fire at hotelRead the Press Release
SAVANNAH, GA: A transient man living in Savannah has been sentenced to federal prison for setting a February fire at a Savannah hotel.
Gary Taylor Smith, 35, of Savannah, was sentenced to 60 months in prison after pleading guilty to one count of Arson, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge William T. Moore Jr. also ordered Smith to pay $1,464.53 in restitution and to serve three years of supervised release after completion of his prison term. There is no parole in the federal system.
“Deliberately setting a fire at an occupied hotel is a cowardly and potentially deadly act,” said Acting U.S. Attorney Estes. “Thanks to quick work from the Savannah Fire Department and the ATF, Gary Smith is being held accountable for his crime.”
Smith was captured on video surveillance just after 3 a.m. on Feb. 28, 2021, when he set fire to a pile of rags behind the Marshall Hotel on East Broughton Street. Firefighters extinguished the blaze, which caused only minor smoke damage inside the hotel. All 68 occupants of the hotel were safely evacuated. Savannah Police officers arrested Smith three weeks later after identifying him from a surveillance photo.
“The identification and prosecution of arson crimes continues to be a core mission for ATF,” said ATF Assistant Special Agent in Charge Beau Kolodka. “Arson is a crime of violence that can result in death, injuries and property damage and we are proud to have worked with the Savannah Fire Department to quickly identify and apprehend Mr. Smith.”
“This case is another example of the importance of a strong working relationship between local and federal law enforcement,” said Savannah Fire Department Chief Fire Investigator Fred Anderson. “Together we were able to combine our investigative resources and bring this arsonist to justice.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Savannah Fire Department Arson Unit, and the Savannah Police Department, and prosecuted for the United States by Assistant U.S. Attorney Tania G. Groover.
Savannah man sentenced to federal prison for distributing child pornographyRead the Press Release
SAVANNAH, GA: A Chatham County man has been sentenced to more than seven years in prison after admitting to distributing hundreds of images of child pornography.
James Groover, 57, of Savannah, was sentenced to 88 months in prison after pleading guilty to Distribution of Child Pornography, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge R. Stan Baker also ordered Groover to pay $15,000 in restitution to victims, register as a sex offender, and serve 15 years of supervised release after completion of his prison term.
There is no parole in the federal system.
“Every single act of sharing an image of child exploitation further harms the vulnerable victim,” said Acting U.S. Attorney Estes. “James Groover shared hundreds of such images until our vigilant law enforcement partners brought his reprehensible crimes to a halt.”
As described in court documents and testimony, the National Center for Missing and Exploited Children alerted Georgia’s Internet Crimes Against Children Task Force after identifying graphic child pornography shared from Groover’s address between September 2019 and February 2020. A subsequent search of his residence discovered hundreds of images and videos of child pornography on multiple devices belonging to Groover.
“Individuals who engage in this reprehensible crime perpetuate the trauma endured by victims and cause irreparable harm to our nation’s most vulnerable population,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI special agents will continue to work with law enforcement partners to find and remove these offenders from our communities.”
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 800-843-5678, or https://report.cybertip.org/.
The case was investigated by Homeland Security Investigations and the Savannah Police Department, and Prosecuted for the United States by Assistant U.S. Attorney and Project Safe Childhood Coordinator Tara M. Lyons.
Salisbury Man Pleads Guilty to Large-Scale Heroin Distribution Operation on the Dark WebRead the Press Release
Baltimore, Maryland – Jason Lawrence Green, age 40, of Salisbury, Maryland, pleaded guilty to possession with intent to distribute heroin, which he sold on the dark web (a part of the internet that is only accessible by using specific software the disguises the true location and identity of computers using the software to communicate). The guilty plea was entered on October 12, 2021.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Postal Inspector in Charge Daniel A. Adame of the U.S. Postal Inspection Service - Washington Division; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police; and Dorchester County Sheriff James W. Phillips, Jr.
According to Green’s guilty plea, from at least 2018 through October 2019, Green used an apartment and a storage unit in Salisbury, Maryland to sell and distribute heroin on the dark web and using encrypted email services.
As detailed in the plea agreement, Green initially operated as “CaliClaire” on the Dream Market, a dark web marketplace for controlled substances and other illegal goods. After Dream Market closed in April 2019, Green sold heroin through encrypted email services under the usernames “CaliClaire” and “clairebear2.” Green sent the heroin to buyers throughout the country using the U.S. mail (USPS).
For example, on June 20 and August 28, 2018, an undercover investigator purchased one gram of heroin from CaliClaire’s vendor site on Dream Market for approximately $200 in bitcoin. The next day, law enforcement surveilled Green as he drove a white BMW from his home to the post office in Ocean City, Maryland and Salisbury, respectively, and deposited parcels in a mailbox. After the BMW drove away, investigators searched the mailbox and recovered the parcel addressed to the address provided to CaliClaire by the undercover investigator. Each parcel contained one gram of a substance that field-tested positive for heroin. Investigators also recovered two additional parcels that Green had placed in the mailbox in Salisbury. After obtaining search warrants, investigators found that the parcels contained 3.5 and 4.5 grams, respectively, of a tan powdery substance that appeared to be heroin.
CaliClaire was inactive on Dream Market from September 7, 2018 until December 4, 2018—the same time that Green was in custody after being arrested by Ocean City police on unrelated state charges. Green was released on electronic monitoring on December 4, 2018. Six days later, CaliClaire posted an update on Dream Market claiming that the vendor had taken a “break” due to the loss in value of bitcoin, followed by another update on December 21, 2018 stating that heroin would be available for purchase again starting on December 25, 2018. Dream Market was shut down sometime between January and April 2019.
In June and September 2019, law enforcement seized two USPS parcels (later found to contain heroin) being shipped to addresses in Fairfax County, Virginia and Washington County, Oregon. Investigators contacted the intended recipients and learned that they were former CaliClaire customers on Dream Market. The Virginia recipient told investigators that CaliClaire had resumed selling heroin directly to customers under the CaliClaire username on Encrypted Email Service A. Investigators learned from the Oregon customer that CaliClaire was also selling heroin directly to customers under the username “clairebear2” on Encrypted Email Service B.
As detailed in the plea agreement, in September and October 2019, investigators conducted two undercover purchases from clairebear2 on Encrypted Mail Service B, each time obtaining 2 grams of heroin for $300 in bitcoin. Investigators surveilled Green following each undercover purchase. After the first purchase, investigators observed Green delivering parcels to a drive-up mailbox in Delaware. The mailbox where Green deposited the parcel was searched and the parcel addressed to the undercover officer was found. It contained three grams of a substance that field-tested positive for heroin. After the second purchase, Green was seen accessing a storage unit he was renting and later that day depositing multiple parcels in a mailbox in Berlin, Maryland. The parcel addressed to the undercover officer was delivered to investigators a few days later and contained a clear zip-top bag holding approximately 2.5 grams of a substance that field-tested positive for heroin.
Search warrants were executed at Green’s residence and storage unit on October 16, 2019. Law enforcement recovered a total of 77 grams of heroin; approximately 41 grams of cocaine; approximately five grams of MDA, a controlled substance often sold as “ecstasy”; approximately 33 grams of amphetamine; more than 1.4 kilograms of marijuana, with all but 48 grams packaged in heat sealed bags; 334 grams of cutting agent; and drug paraphernalia, including numerous digital scales, a money counter, and packaging materials. In addition, investigators seized six firearms, including a .40 caliber pistol which had been reported stolen from an officer with the Federal Air Marshal Service; a Level 3A body armor vest; ammunition; $13,796 in cash; mailing materials; a laptop computer and several cellular phones, including an iPhone.
A subsequent forensic analysis of Green’s iPhone found data of Green’s use of Encrypted Mail Service B and a mobile cryptocurrency storage application which showed that before the phone was seized, the wallet held approximately 15.97 bitcoin, which at that time was worth approximately $130,000. A forensic analysis of the laptop revealed, among other things, internet searches related to the addresses of customers; the names and addresses of approximately 56 individuals who appeared in either return or recipient addresses on parcels seized during the investigation and found to contain heroin, including undercover purchases; email addresses for Encrypted Email Service A and B; a password to Encrypted Email Service B; USPS tracking numbers, including for the undercover parcels; and approximately 44 PDF files containing USPS shipping labels from nearly every heroin parcel seized during the investigation.
Green and the government have agreed that, if the Court accepts the plea agreement, Green will be sentenced to five years in federal prison. U.S. District Judge Catherine C. Blake has scheduled sentencing for February 11, 2022 at 2:00 p.m.
This case was prosecuted utilizing resources from the Dark Market and Digital Currency Crimes (DMDCC) Task Force. The DMDCC Task Force is a joint effort between the U.S. Attorney’s Office, HSI – Baltimore, the U.S. Secret Service, the U.S. Postal Inspection Service; the Food and Drug Administration, the Internal Revenue Service – Criminal Investigation, the Drug Enforcement Administration, the Defense Criminal Investigative Service, the Baltimore Police Department, and the Baltimore County Police Department, targeting the use of dark net marketplaces and digital currencies to facilitate criminal activities. The past several years have witnessed a significant increase in the use of the internet (both the clear net and dark net) and digital currencies to facilitate, for example, the illegal sale and distribution of narcotics and firearms, computer technologies (including hacking tools), and Personal Identifiable Information (PII). In response to this rising threat, the U.S. Attorney’s Office, HSI, and their partners formed the DMDCC Task Force to facilitate stronger collaboration among law enforcement partners combatting these crimes.
United States Attorney Erek L. Barron commended HSI, the U.S. Postal Inspection Service, the Maryland State Police, and the Dorchester County Sheriff’s Office for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Jeffrey J. Izant and Christopher M. Rigali, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
# # #
Sheridan Man Arrested for Illegal Possession of Firearms and MethamphetamineRead the Press Release
Acting United States Attorney Bob Murray announced today that ADAM LEE GODWIN, age 35, of Sheridan, Wyoming was charged by indictment and arrested for being an unlawful user of a controlled substance in possession of a firearm and possession with intent to distribute methamphetamine.
Godwin appeared before Federal District Court Judge Nancy D. Freudenthal on October 12, 2021, for an arraignment hearing and pleaded not guilty to the charges. Judge Freudenthal set a jury trial to be held in Cheyenne on December 13, 2021. Godwin was remanded to the custody of the United States Marshals Service. These crimes carry a term of five to 40 years imprisonment, up to five years of supervised release, and over $5 million in fines and special assessments.
This crime was investigated by the Bureau of Alcohol, Tobacco and Firearms and the Sheridan County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Jonathon C. Coppom.
An indictment merely contains allegations, and every defendant is presumed innocent unless and until proven guilty.
Postal Worker Charged with Issuing Money Orders Without Receiving Full PaymentRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that SHANNEL SMITH, age 41, of Orleans Parish, Louisiana, was charged on October 12, 2021 in a one-count superseding bill of information for issuing money orders without receiving full payment in violation of Title 18, United States Code, Section 500.
According to court documents, beginning in May 2019 and continuing until August 2019, SMITH, being an employee of the Postal Service, for the purpose of fraudulently enabling herself to obtain and receive, directly and indirectly, a sum of money from the United States, issued eight (8) postal money orders with face amounts of $150.00, $110.71, $100.00, $125.00, $80.00, $140.00, $100.00, and $150.00 without having previously received the full amount payable to the United States for these money orders.
If convicted, SMITH faces a maximum penalty of five (5) years imprisonment, followed by up to three (3) years of supervised release, up to a $250,000.00 fine, and a mandatory $100 special assessment fee based on the charge outlined in the superseding bill of information.
U.S. Attorney Evans stated that the superseding bill of information is merely a charge and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by special agents from the U.S. Postal Service, Office of Inspector General (“USPS-OIG”). The prosecution of this case is being handled by Assistant U.S. Attorney Rachal Cassagne.
Philadelphia Father and Son Felons Charged with Illegally Possessing a Firearms and AmmunitionRead the Press Release
PITTSBURGH, PA - Two former residents of Philadelphia, Pennsylvania, have been indicted by a federal grand jury in Pittsburgh on a charges of violating federal firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
The two-count Indictment named the defendants as Angel Perez, 55, formerly of Philadelphia, PA 19134 and his son, Troy Perez, 28, formerly of Philadelphia, PA 19125.
According to Indictment, on or about September 15, 2021, Angel Perez and Troy Perez, both convicted felons, were each in possession a firearm and ammunition. Federal law prohibits a convicted felon from possessing both firearms and ammunition.
At each count, the law provides for a maximum total sentence of not more than 10 years in prison, a fine of not more than $250,000.00 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Barbara K. Doolittle is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and Pennsylvania State Police conducted the investigation leading to the Indictment in this case. The case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods (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.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Peruvian Woman Sentenced to 30 Months in Prison for Smuggling Seven Kilos of Cocaine into United States through Newark AirportRead the Press Release
NEWARK, N.J. – A Peruvian woman was sentenced today to 30 months in prison for smuggling approximately seven kilograms of cocaine into the United States from Peru, Acting U.S. Attorney Rachael A. Honig announced.
Yolanda Fonseca Melgarejo, 60, a legal permanent resident of the United States and a citizen of Peru, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging her with one count of importation of controlled substances. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Fonseca Melgarejo arrived at Newark Liberty International Airport aboard a flight from Lima, Peru, on March 31, 2019. Law enforcement officers discovered that Fonseca Melgarejo possessed approximately seven kilograms of cocaine concealed within wrapped chocolate candy in her luggage.
In addition to the prison term, Judge Wigenton sentenced Melgarejo to two years of supervised release.
Acting U.S. Attorney Honig credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, New Jersey Division, under the direction of Special Agent in Charge Jason J. Molina; and officers of U.S. Customs and Border Protection, New York Field Office, under the direction of Director of Field Operations Frank Russo, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Tracey Agnew of the Organized Crime and Gangs Unit in Newark.
Oregon Marijuana Exporter Pleads Guilty in Federal CourtRead the Press Release
PORTLAND, Ore.—A former resident of Milwaukie, Oregon pleaded guilty today in federal court for illegally exporting marijuana grown in Oregon to Georgia for resale and laundering the proceeds.
Dante Baldocchi, 29, currently a resident of Altadena, California, waived indictment and pleaded guilty to conspiring to distribute marijuana and commit money laundering.
According to court documents, between January 2017 and June 2020, Baldocchi purchased marijuana in Oregon and arranged to have it shipped via freight to Georgia where he and others sold it to distributors in the Atlanta area and in North Carolina. Baldocchi and his associates shipped portions of the proceeds from Georgia back to Oregon in vacuum-sealed bags and other portions concealed in buckets of drywall spackle.
On June 9, 2020, a federal search warrant was executed on Baldocchi’s then-residence in Milwaukie. Investigators located more than 330 pounds of marijuana grown in Oregon.
On August 19, 2021, Baldocchi and an associate—Hunter Lacaden, 27, of Portland—were charged by criminal information with conspiring to distribute marijuana and commit money laundering.
Baldocchi faces a maximum sentence of 60 years in federal prison with a five-year mandatory minimum, a $5.5 million fine and four years of supervised release. He will be sentenced on January 6, 2022, before U.S. District Court Judge Michael H. Simon.
On September 21, 2021, Lacaden pleaded guilty to conspiring to distribute marijuana. He will be sentenced on December 13, 2021.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by Homeland Security Investigations and IRS-Criminal Investigation with assistance from the Clackamas County Sheriff’s Office and Portland Police Bureau. Assistant U.S. Attorney Julia E. Jarrett is prosecuting the case.
Omaha Man Sentenced to More than 12 Years for Transporting Minor to Nebraska for SexRead the Press Release
Acting United States Attorney Jan Sharp announced that Mitchel D. Abraham, 23, of Omaha, Nebraska, was sentenced today in federal court in Omaha for transportation of a minor with the intent to engage in criminal sexual activity. United States District Judge Brian C. Buescher sentenced Abraham to 12 years and 6 months’ imprisonment. There is no parole in the federal system. After his release from prison, Abraham will begin and 30-year term of supervised release and will be required to register as a sex offender. Judge Buescher ordered Abraham to pay a $10,000 fine.
An investigation conducted by the Federal Bureau of Investigation determined that on or about December 5, 2020, a 15-year-old minor’s parents, located in Pennsylvania, reported their daughter missing. Through its investigation the FBI learned that the minor was located at a residence in Omaha. On December 31, 2020, the FBI made contact with Abraham at his residence in Omaha. Also present in the residence was the minor.
The investigation revealed that Abraham had previously met the minor on the online platform Snapchat in November 2020. At that time Abraham was 22 years old and the minor was 15 years old. It was determined that on December 8, 2020, Abraham traveled to Pennsylvania in a white Kia sedan to pick up the minor and return to Nebraska where he lived. After arriving in Pennsylvania, Abraham transported the minor to Nebraska with the intent of engaging in sexual activity with the minor. After arriving in Nebraska, Abraham and the minor engaged in sexual activity, which is unlawful under the laws of the State of Nebraska.
This case was investigated by the Federal Bureau of Investigation.
Omaha Man Sentenced to 10 Years for Methamphetamine and a FirearmRead the Press Release
Acting United States Attorney Jan Sharp announced that Jackie Major, 46, of Omaha, Nebraska, was sentenced today in federal court for conspiracy to distribute methamphetamine and using a firearm during a drug trafficking offense. United States District Judge Brian C. Buescher sentenced Major to consecutive sentences of 60 months on each count for a total term of 120 months’ imprisonment. There is no parole in the federal system. After his release from prison, Major will begin a three-year term of supervised release.
In July 2020 FBI Safe Streets Task Force officers utilized a confidential informant to order methamphetamine from Major. A search warrant of his West Omaha hotel room recovered 17 grams of methamphetamine and a Mossberg pump shotgun.
This case was investigated by the Omaha Police Department. and the FBI Safe Streets Task Force as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
North Carolina Man Sentenced for Conspiring to Defraud Massachusetts-Based Uniform Supply CompanyRead the Press Release
BOSTON – A North Carolina man was sentenced yesterday in connection with a scheme to defraud his former employer, a Massachusetts-based uniform-supply company, by falsifying invoices.
Keith Smedley, 49, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to three years in prison and one year of supervised release. Smedley was also ordered to pay restitution of $1,548,467 and forfeiture of $500,000. On June 8, 2021, Smedley pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud.
Between approximately 1998 and March 2019, Smedley and others defrauded the uniform-supply company by causing the company to pay fake invoices for products that were not actually delivered, and by diverting other products that they re-sold for their own benefit. In addition, Smedley and his co-conspirators created a fake supply company and caused the uniform-supply company to pay more than $1.5 million in fraudulent invoices for purported products that he knew would never be delivered or used.
Smedley is the second former employee of the uniform-supply company to be sentenced in connection with the conspiracy. Co-conspirator Richard Ritz was sentenced on Sept. 8, 2021 to 21 months in prison and two years of supervised release. Co-conspirator Brian Halpern pleaded guilty in August 2021 and is scheduled to be sentenced on Dec. 16, 2021.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Assistant U.S. Attorneys Sara Miron Bloom and Ian Stearns of Mendell’s Securities, Financial & Cyber Fraud Unit prosecuted the case.
New York and Florida Resident Admits to $6.8 Million Paycheck Protection Program Fraud SchemeRead the Press Release
NEWARK, N.J. – A dual New York and Florida resident today admitted his role in a scheme to fraudulently obtain federal Paycheck Protection Program (PPP) loans totaling over $6.8 million, Acting U.S. Attorney Rachael A. Honig and Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division announced today.
Gregory J. Blotnick, 34, of Florida, pleaded guilty before U.S. District Judge Brian R. Martinotti to an information charging him with one count of wire fraud and one count of money laundering.
According to documents filed in this case and statements made in court:
From April 2020 through March 2021, Blotnick submitted 21 fraudulent PPP loan applications to 13 lenders on behalf of nine purported businesses that Blotnick controlled.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
On Blotnick’s fraudulent PPP applications, which sought a total of approximately $6.8 million in total loans, Blotnick falsified various information to the lenders, including the number of employees, the federal tax returns for his purported businesses, and payroll documentation. Blotnick obtained approximately $4.6 million in PPP funds and then misused the loan proceeds, including by transferring the funds to brokerage accounts from which he placed more than approximately $3 million in losing stock trades.
The charge of wire fraud carries a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits or loss, whichever is greatest. The charge of money laundering carries a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest. Sentencing is scheduled for March 1, 2022.
Acting U.S. Attorney Rachael Honig credited special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; special agents of the Social Security Administration, Office of the Inspector General, New York Field Division, under the direction of Special Agent in Charge John F. Grasso; special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, under the direction of Special Agent in Charge Patricia Tarasca in New York; and special agents of the Board of Governors of the Federal Reserve System Consumer Financial Protection Bureau, Office of Inspector General, under the direction of Special Agent in Charge Stephen Donnelly, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Fatime Meka Cano of the U.S. Attorney’s Office Government Fraud Unit in Newark and Trial Attorney Cory E. Jacobs of the Department of Justice, Criminal Division, Market Integrity and Major Frauds Unit.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
New York Man Pleads to Meth Conspiracy Count in Federal Court in Johnstown, PARead the Press Release
JOHNSTOWN, Pa. – A former resident of Jamestown, NY pleaded guilty in federal court to a charge of violating federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
Peter Shawbrougham, 27, pleaded guilty to a lesser-included offense at Count Two of the Superseding Indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on or about July 2019 through in and around June 2020, Shawbrougham conspired to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine.
Judge Gibson scheduled sentencing for Feb. 17, 2022. The law provides for a minimum sentence of 5 years in prison to a maximum of 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Maureen Sheehan-Balchon. is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pennsylvania State Police led the prosecution of Shawbrougham.
New Jersey Man Receives 10 Years for Sex TraffickingRead the Press Release
RALEIGH, N.C. – An Elmwood Park, New Jersey man was sentenced today to 120 months in prison for sex trafficking. Mark Daniel Benavidez was also ordered to pay $32,800 in restitution to his victims. On March 8, 2021 Benavidez pleaded guilty to one count of transporting a victim across state lines for the purpose of prostitution.
According to court documents and other information presented in court, Benavidez, 40, was arrested in connection with an undercover prostitution sting at a hotel in Cary, North Carolina on July 21, 2017. Benavidez had rented two rooms at the hotel and was posting online prostitution ads for three different women. Benavidez had over $4,600 on his person at the time of arrest and drugs were found on one of the victims and in a bag in one of the rooms.
Investigation revealed that Benavidez began prostituting one of the victims in 2016 in New Jersey. While still in New Jersey, Benavidez recruited a second woman. Benavidez prostituted both women in New Jersey before traveling to North Carolina in early July 2017. Once in North Carolina, Benavidez recruited his third victim. Benavidez was physically violent with one of the victims, reportedly abusing her on a weekly basis. Benavidez exploited the drug addictions of the other two victims, becoming their sole supplier, worsening their addictions, and using the promise of drugs, especially heroin, to keep them prostituting for him. Benavidez controlled all aspects of their prostitution and took all the money the victims earned. The investigation also led to storage units that Benavidez rented in North Carolina and New Jersey, where investigators seized over $13,500 and $21,000, respectively.
“It is difficult to calculate the scope of damage caused by sexual exploitation and trafficking, which often leave victims with long-lasting trauma. Benavidez used fear, coercion, and violence to exploit and abuse his victims,” said Special Agent in Charge Ronnie Martinez, who oversees Homeland Security Investigations (HSI) operations in North Carolina and South Carolina. “HSI special agents, along with our law enforcement partners, are committed to pursuing those who perpetuate these horrendous crimes.”
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Senior U.S. District Judge W. Earl Britt. The Department of Homeland Security, Homeland Security Investigations (“HSI”) and the Cary Police Department investigated the case, and former Assistant U.S. Attorney Erin Blondel and Assistant United States Attorney Bryan Stephany prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-CR-00337-BR.
Munhall Woman Charged with Filing Fraudulent Applications for Pandemic-Relief FundsRead the Press Release
PITTSBURGH, PA - One resident of Munhall, PA, has been indicted by a federal grand jury in Pittsburgh on charges of wire fraud, Acting United States Attorney Stephen R. Kaufman announced today.
The twelve-count Indictment, returned on Sept. 28, 2021 and unsealed today following her arrest, named Jaime Jones, 45, of Munhall, PA 15120, as the sole defendant.
According to Indictment, from May 2020 to September 2020, Jones filed fraudulent applications on behalf of herself and others for pandemic-relief funding through the Small Business Administration’s Economic Injury Disaster Loan program. As part of these fraudulent applications, Jones made misrepresentations about, among other things, whether particular businesses existed as well as the number of people employed by particular businesses, in an attempt to maximize the funding they received.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jeffrey R. Bengel is prosecuting this case on behalf of the government.
The United States Secret Service, the United States Postal Inspection Service, and the Small Business Administration’s Office of the Inspector General conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Minneapolis Felon Indicted for Making Threats Against Hennepin County Government Officials, Illegal Possession of FirearmsRead the Press Release
MINNEAPOLIS – A federal grand jury returned an indictment against a Minneapolis man for making threats against Hennepin County employees and illegally possessing firearms as a felon, announced Acting U.S. Attorney W. Anders Folk.
According to court documents, on June 24, 2021, the Hennepin County District Court issued an arrest warrant for Peter Robert Berry, 60, after he failed to appear in court for a hearing. Berry called an employee of Hennepin County Community Corrections to ask questions about his court appearance. During the call Berry became angry and began yelling and threatened to “shoot up the place.” That same day, Berry left a voice message for a Hennepin County Probation Officer in which Berry demanded a call back before he starts “killing everybody.” On June 25, 2021, Berry called a Hennepin County Service Center employee who informed him of the active warrant for his arrest due to his failure to appear in court. Upon learning about the warrant, Berry stated that he was going to “come down and kill everybody, all the judges, clerks, and deputies.” On June 29, 2021, Berry left a voice message for a Hennepin County Public Defender in which Berry expressed his dissatisfaction with the representation he received in his criminal case and threatened that people were going to die and stated that he knew where the public defender lived.
According to court documents, on July 10, 2020, and on April 7, 2021, Berry unlawfully possessed three firearms, including a Beretta .25 caliber semi-automatic pistol, a Smith and Wesson 9 mm pistol, and a Diamondback DB15 rifle. Because Berry has prior felony convictions in Hennepin, Dakota, and Ramsey Counties, he is prohibited under federal law from possessing firearms or ammunition at any time.
Berry is charged with two counts of possessing firearms as a felon and three counts of interstate transmission of threats.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is the result of an investigation conducted by the FBI, the Hennepin County Sheriff’s Office, and the Minneapolis Police Department.
Assistant U.S. Attorney Allison K. Ethen is 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.
Melrose Man Sentenced for Unemployment Insurance ScamRead the Press Release
BOSTON – A Melrose man was sentenced today in connection with his role in an unemployment insurance fraud scheme.
Alan Neal Scott, 68, was sentenced by U.S. District Court Judge Leo T. Sorokin to 87 months in prison and three years of supervised release. On July 1, 2021, Scott pleaded guilty to four counts of mail fraud, one count of wire fraud and five counts of aggravated identity theft.
Over the course of six years, Scott submitted numerous fraudulent unemployment insurance claims with the Massachusetts Department of Unemployment Assistance (DUA). Scott submitted these claims using his own identity as well as the identities of various individuals, including some who were not eligible for unemployment benefits because they were incarcerated at the time and could not have been employed. Moreover, the fraudulent claims all reported prior employment at a non-operational Massachusetts-based business also associated with Scott. As a result of these fraudulent claims, the DUA sent unemployment benefits funds to several addresses connected to Scott and deposited funds into accounts he controlled. Scott also submitted fraudulent pandemic unemployment insurance claims in the names of others.
Acting United States Attorney Nathaniel R. Mendell; Jonathan Mellone, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigation; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service; and Jermaine Jack, Acting Special Agent in Charge of the Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Division, made the announcement. The Commonwealth of Massachusetts, Department of Unemployment Assistance, Program Integrity Unit also provided assistance with the investigation. Assistant U.S. Attorney Sara Miron Bloom of Mendell’s Securities, Financial & Cyber Fraud Unit prosecuted the case.
Media AdvisoryRead the Press Release
On October 15, 2021, at 9:00 a.m., Matthew Robbins will be sentenced in federal district court in Cedar Rapids, Iowa, following his convictions at trial for robbery and discharging a firearm during a crime of violence resulting in murder.
On October 15, 2021, at 1:00 p.m., representatives of the United States Attorney’s Office and law enforcements agencies involved in the investigation will hold a press conference at the United States Attorney’s Office in the federal courthouse, 111 Seventh Ave SE, in Cedar Rapids, Iowa, to discuss Robbins’ sentencing.
Event Details
When: October 15, 2021
Where: Cedar Rapids Federal Courthouse (United States Attorney’s Office), 111 Seventh Ave. SE
Time: 1:00 p.m.
Press releases and interview opportunities will be available.
To RSVP, please email Tony Morfitt at [email protected] or call 319-363-6333.
Follow us on Twitter @USAO_NDIA.
Mark Ridley-Thomas Charged Along with Former University Dean in Federal Grand Jury Indictment Alleging Bribery and Fraud SchemeRead the Press Release
INDICTMENTLOS ANGELES – Longtime politician Mark Ridley-Thomas and the former dean of the School of Social Work at a university in Southern California were indicted today on federal corruption charges that allege a bribery scheme in which a Ridley-Thomas relative received substantial benefits from the university in exchange for Ridley-Thomas supporting county contracts and lucrative contract amendments with the university while he served on the Los Angeles County Board of Supervisors.
The 20-count indictment alleges that Ridley-Thomas, now a member of the Los Angeles City Council, conspired with Marilyn Louise Flynn, formerly a tenured professor and the dean of the university’s School of Social Work, who agreed to provide the Ridley-Thomas relative with graduate school admission, a full-tuition scholarship, a paid professorship, and a mechanism to funnel Ridley-Thomas campaign funds through the university to a non-profit to be operated by the relative.
In exchange, the indictment alleges, Ridley-Thomas supported contracts involving the Social Work School, including contracts to provide services to the Department of Children and Family Services (DCFS) and Probation Department, as well as an amendment to a contract with the Department of Mental Health (DMH) that would bring the school millions of dollars in new revenue.
Ridley-Thomas, 66, of Los Angeles, and Flynn, 83, also of Los Angeles, were informed of the indictment this afternoon and have agreed to appear for their arraignments in United States District Court in the coming weeks.
“This indictment charges a seasoned lawmaker who allegedly abused the public's trust by taking official actions to benefit his family member and himself,” said Acting U.S. Attorney Tracy L. Wilkison. “The corrupt activities alleged in the indictment were facilitated by a major university’s high-ranking administrator whose desire for funding apparently trumped notions of integrity and fair play. Public corruption cases are among the most important matters we pursue, and we will continue to investigate and prosecute whenever public officials and others entrusted with taxpayer funds break the law.”
“This investigation should send a message to public officials that government contracts are not for sale,” said Kristi K. Johnson, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “This indictment reaffirms the FBI’s commitment to rooting out corruption by holding accountable those who abuse the trust of the people they serve and who exploit their powerful positions to obtain benefits at the expense of taxpayers.”
The indictment outlines a scheme in 2017 and 2018 in which then-supervisor Ridley-Thomas sought benefits from Flynn and university officials to benefit his close relative – described as “MRT Relative 1” in the indictment – at a time when MRT Relative 1 was the subject of an internal sexual harassment investigation in the California State Assembly, likely to resign from elected office, and significantly in debt. Ridley-Thomas allegedly wanted to help secure paid employment for his relative to minimize any public fallout for them both in the wake of the sudden resignation from office. Meanwhile, the Social Work School was facing a multimillion-dollar budget deficit, which threatened the school’s viability as well as Flynn’s position and reputation as the school’s longtime dean, according to the indictment.
As part of the bribery scheme, Ridley-Thomas and Flynn allegedly took steps “to disguise, conceal, and cover up the bribes, kickbacks, and other benefits defendant Ridley-Thomas and MRT Relative 1 received,” which included concealing the official acts Ridley-Thomas agreed to perform and did perform in exchange for the financial benefits. The pair also concealed, according to the indictment, the true purpose of the money funneled to MRT Relative 1’s nonprofit through the university, which also violated multiple university policies regarding the funding of nonprofits.
Within weeks of Ridley-Thomas contacting Flynn in May 2017 about his relative wanting a postgraduate degree from the university, Flynn began a campaign to secure both university admission and a full scholarship for the relative. Flynn wrote in an email that she “intend[ed] to open every door for [MRT Relative 1],” whom she noted was closely related to the then-supervisor, the indictment alleges. When a university official said Ridley-Thomas had “lots of discretionary money” and should give the university “$1M each year for three years,” according to the indictment, Flynn responded that she and another university official intended to offer the relative a full scholarship, characterizing the exchange as a “full scholarship for our [Social Work School] funds.”
During a June 2017 meeting, Ridley-Thomas and Flynn allegedly reached a quid pro quo agreement, which Flynn later memorialized in a confidential letter she had hand-delivered to Ridley-Thomas. The indictment alleges that Flynn’s letter detailed her expectations that Ridley-Thomas would steer new contracts with DCFS and Probation to the Social Work School and secure a lucrative amendment to an existing Telehealth-DMH contract. With the new amendment, Flynn expected the Telehealth contract to generate approximately $9 million per year for Flynn’s Social Work School.
In exchange for Flynn’s efforts to help MRT Relative 1, the indictment alleges that Ridley-Thomas took a series of official actions, including voting in August 2017 to approve a motion to establish a partnership between the county and Social Work School and voting in October 2017 to approve a motion, related to “Probation University,” that would create a new county payment source for the school. Flynn told university officials in emails that she was “very happy to see that [defendant Ridley-Thomas] was as good as his word” and that he was “really trying to deliver,” the indictment alleges.
In the fall of 2017, Ridley-Thomas and MRT Relative 1 began soliciting from Flynn and other university officials a paid professorship for MRT Relative 1 while concealing that MRT Relative 1 was the subject of a sexual harassment investigation. By December 2017, in conjunction with speculation that MRT Relative 1 could be forced out of office, Ridley-Thomas and his relative increased their efforts to secure a paid faculty position for MRT Relative 1, efforts that included Ridley-Thomas exerting pressure on another high-ranking public official to support the Telehealth contract amendment.
On December 14, 2017, about an hour after Ridley-Thomas emailed Flynn saying the high-ranking public official was “ready to go,” Flynn expedited the relative’s enrollment at the university, instructing that the admission should be given the “highest priority,” according to the indictment. Flynn also agreed, despite the school’s multimillion-dollar budget deficit, to tap the Social Work School’s endowed funds to award a scholarship. At Flynn’s direction, MRT Relative 1 received a full scholarship worth $26,000 for the 2018 spring and summer terms.
The day after learning that the high-ranking public official was “ready to go,” Flynn also endeavored to quickly secure the paid professorship, even though MRT Relative 1’s dual student-faculty status would violate university policy. On December 15, 2017, Flynn allegedly sent an “urgent” email to a university official, urging the official to get the offer letter “out before the holidays” to MRT Relative 1 “in the interests of showing MRT [defendant Ridley-Thomas] that we can deliver.” The university thereafter offered MRT Relative 1 the paid teaching position with a salary of $50,000.
When MRT Relative 1 received an email on February 13, 2018 indicating that the usual hiring process had been waived for his paid professorship, MRT Relative 1 forwarded the email to Ridley-Thomas, who then emailed Flynn the same day to discuss the “Probation Reform motion.” Days later, when Flynn emailed Ridley-Thomas to request a profitable amendment to the Telehealth-DMH contract, Ridley-Thomas responded to Flynn: “Your wish is my command.”
In addition to obtaining university admission, a full scholarship and the paid faculty position, Ridley-Thomas also sought to help his relative become the director of a nonprofit. In December 2017, Ridley-Thomas donated $100,000 in campaign funds to a fiscal sponsor (Fiscal Sponsor A) supporting the nonprofit MRT Relative 1 was planning to head (Nonprofit A). Concerned about the optics of a politician donating campaign funds to benefit the politician’s relative, Fiscal Sponsor A refunded the $100,000.
MRT Relative 1 then abandoned efforts to head Nonprofit A, founded a new nonprofit (Nonprofit B) with a new fiscal sponsor (Fiscal Sponsor B), and began raising money for Nonprofit B in order to take a salary, obtain healthcare benefits and hire staff. According to the indictment, while soliciting official action from Ridley-Thomas during a meeting on April 26, 2018, Flynn agreed to funnel $100,000 from the Mark Ridley-Thomas Committee for a Better L.A. through the university and Social Work School to Fiscal Sponsor B for the benefit of Nonprofit B and, in turn, MRT Relative 1. Around this time, Flynn allegedly told a university official that the school would get the Telehealth contract but that she had to do a “favor” to get it.
After the Ridley-Thomas campaign funds were transferred through the university to Fiscal Sponsor B, Ridley-Thomas voted on July 31, 2018 in favor of the amendment to the school’s Telehealth agreement that would sustain the program for an additional year and was consistent with the terms Flynn previously requested of Ridley-Thomas.
Both Ridley-Thomas and Flynn are charged with one count of conspiracy, and each defendant is charged with one count of bribery. The indictment also charges both defendants with two counts of “honest services” mail fraud and 15 counts of “honest services” wire fraud.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The conspiracy count alleged in the indictment carries a statutory maximum penalty of five years in federal prison. Each bribery count carries a maximum possible sentence of 10 years. Each of the mail fraud and wire fraud charges carry a statutory maximum penalty of 20 years.
The FBI is investigating this matter.
Assistant United States Attorneys Ruth C. Pinkel and Lindsey Greer Dotson of the Public Corruption and Civil Rights Section are prosecuting this case.