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Newest first across public DOJ and U.S. Attorney press releases.
Wednesday 13 October 2021
Caldwell Man Pleads Guilty to Possession with Intent to Distribute MethamphetamineRead the Press Release
BOISE – A Caldwell man pleaded guilty to possessing methamphetamine with the intent to distribute it to others.
According to court records, Jesus Enrique Morales, 30, of Caldwell, was pulled over on June 9, 2021, for failing to maintain his lane. During the Idaho State Police trooper’s routine license and registration check, he discovered that Morales had an outstanding warrant for his arrest. The trooper asked Morales to step out of the vehicle so he could place him under arrest. Morales stepped out of his vehicle and immediately began to argue with the officer about his pending arrest. That argument turned into a physical altercation and after a prolonged fight on the ground, Morales ran towards the freeway in the direction of oncoming traffic. The trooper tased Morales, dragged him off the road to ensure that he would not be struck by any oncoming traffic, and placed him under arrest. As the trooper and other law enforcement officers waited for an ambulance to arrive to check on Morales, a police dog, which was trained and certified to detect the odor of controlled substances, positively alerted to the odor of a controlled substance in Morales’ vehicle. A subsequent search of the vehicle uncovered 345.4 grams of methamphetamine. Morales has admitted that he possessed the methamphetamine with the intent to distribute it to others.
Morales is scheduled to be sentenced on January 12, 2022 and faces a statutory mandatory minimum sentence of at least five years and a maximum sentence of forty years in federal prison, a five million dollar fine, and at least four years of supervised release. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the investigation by troopers with Idaho State Police District 3, Meridian, which led to charges. “The community needs to know that methamphetamine is a very dangerous drug. Meth use is associated with numerous serious physical problems: rapid heart rate, increased blood pressure, and damage to the small blood vessels in the brain, all of which can lead to stroke. Chronic use of the drug can result in inflammation of the heart lining. Overdoses can cause hyperthermia (elevated body temperature), convulsions, and death,” Gonzalez added.
This case was prosecuted by the Special Assistant U.S. Attorney hired by the Ada County Prosecuting Attorney’s Office with funds provided by the High Intensity Drug Trafficking Areas (HIDTA) program. HIDTA is part of the Office of National Drug Control Policy (ONDCP) created by Congress with the Anti-Drug Abuse Act of 1988. It provides assistance to federal, state, and local law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States. Idaho is part of the Oregon-Idaho HIDTA. The Idaho HIDTA is a collaboration of local, multi-jurisdictional law enforcement drug task forces, and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada, Canyon, Bannock, Kootenai, and Malheur Counties.
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Buckeye and West Shore Pipelines to Pay $8.7 Million in Civil Penalties and Damages for Injuries to Natural Resources Resulting from 2010 Crude Oil Spill near Lockport, IllinoisRead the Press Release
The owner and operator of a pipeline have agreed to pay a $1.5 million civil penalty under the Clean Water Act and $7.2 million in damages and mitigation to resolve federal and state Oil Pollution Act and Clean Water Act claims arising from a 2010 spill of over 1,800 barrels of oil into a globally rare dolomite wetland from a pipeline near Lockport, Illinois. The complaint, filed along with the settlement, alleges that the crude oil spill injured a critical habitat for the federally-endangered Hine’s emerald dragonfly.
“Pipeline companies have a responsibility to protect our waters, people, wildlife and diverse habitats from oil spills, and will be held accountable for the harms they cause,” said Assistant Attorney General Todd Kim for the Justice Department’s Environment and Natural Resources Division. “This major settlement will not only deter future oil spills, but also help restore and enhance the diminishing habitat of an endangered species.”
“The settlement funds will help us improve the remaining habitat for the dragonfly and increase their population, as well as provide benefits for other wildlife injured by the spill,” said Regional Director Charlie Wooley for the U.S. Fish & Wildlife Service’s Great Lakes Region.
“EPA and our partners have worked extensively to clean up and mitigate damage from this pipeline breach that released more than 1,800 barrels of crude oil into wetlands,” said Acting Assistant Administrator Larry Starfield for EPA’s Office of Enforcement and Compliance Assurance. “Today’s settlement marks the culmination of a 10-year project to clean up the spill and prepare the site for restoration activities.”
“Illinois wetlands are some of our most valuable natural resources that provide residents and visitors with opportunities for recreation and study, as well as providing scarce habitat for some of Illinois’ endangered species,” said Attorney General Kwame Raoul for Illinois. “I am pleased that this settlement will mitigate contamination from the oil spill and support the restoration of wetlands near Lockport for future generations.”
“In partnership with federal and state trustees, the Corps reviewed the extent of the unauthorized fill material in the Hine’s emerald dragonfly wetlands and approved a comprehensive mitigation proposal to offset the impacts,” said Chief Kathleen Chernich of the East Section Regulatory Branch for the U.S. Army Corps of Engineers, Chicago District. “We were proud to partner with the federal and state trustees to craft a solution that is designed to mitigate more than 100 acres of wetland losses caused by the spill.”
The December 2010 spill resulted from a breach in a 12-inch buried pipeline that discharged crude oil into a wetland adjacent to the Illinois-Michigan Canal near Lockport, Illinois. West Shore Pipe Line Co. of Lemont, Illinois, the owner of the crude oil pipeline, and Houston-based Buckeye Pipe Line Co., the operator, previously undertook responsibility for the cleanup of the spill site overseen by the EPA.
In the settlement filed today, Buckeye and West Shore have also agreed to pay $7.2 million for injury to the Hine’s emerald dragonfly and other natural resources in the wetland which the federal and state trustees, and the U.S. Army Corps of Trustees (Corps), will jointly use to plan, design and perform restoration projects to compensate for the harms caused by the oil spill, as well as mitigation for impacts to wetlands.
Today’s action was filed by the Department of Justice and the State on behalf of the federal and state trustees for natural resources. The designated federal trustees for the natural resources impacted by Buckeye’s oil spill are the U.S. Department of the Interior’s Fish and Wildlife Service. The designated state trustees are the Illinois Department of Natural Resources and the Illinois Environmental Protection Agency. The federal and state trustees have worked together to perform substantial injury assessment work and are engaged in joint restoration planning efforts. The complaint was also filed on behalf of the U.S. Army Corps of Engineers to address violations of a Clean Water Act Section 404 permit in connection with the cleanup of the oil spill in waters of the United States.
The consent decree, lodged in the U.S. District Court for the Northern District of Illinois, is subject to a 30-day public comment period and final court approval. The consent decree will be available for viewing here.
Berkeley County man admits to drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Brian C. Dixon, of Martinsburg, West Virginia, has admitted to a drug charge, United States Attorney William J. Ihlenfeld, II announced.
Dixon, 49, pleaded guilty today to one count of “Possession with Intent to Distribute Cocaine Hydrochloride.” Dixon admitted to having cocaine hydrochloride in March 2021 in Berkeley County.
Dixon faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Lara Omps-Botteicher and Timothy D. Helman are prosecuting the case on behalf of the government. The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Find the related case here: https://www.justice.gov/usao-ndwv/pr/34-indicted-expansive-drug-trafficking-operation
Bank Teller Pleads Guilty to Embezzling Customer FundsRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that DEMETRIA MYERS SILVIO, age 32, of New Orleans, Louisiana, pled guilty on October 13, 2021 to Wire Fraud, in violation of Title 18, United States Code, Section 1343.
According to court documents, between December 3, 2018 and December 6, 2019, SILVIO forged approximately 66 checks that were drawn on IberiaBank accounts belonging to five customers. SILVIO deposited the fraudulent checks into her own bank accounts with Chase Bank and Capital One. Through this scheme, SILVIO embezzled approximately $63,059.82.
SILVIO faces a maximum term of twenty (20) years imprisonment and/or a fine of $250,000.00 or the greater of twice the gross gain to the defendant or twice the gross loss to any person. In addition, SILVIO faces a term of supervised release of up to three (3) years after her release from prison and a mandatory special assessment fee of $100. The Honorable Wendy B. Vitter set sentencing for January 18, 2022.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Maria M. Carboni.
Activity in the United States Attorney's OfficeRead the Press Release
Federal District Court Judge Nancy D. Freudenthal sentenced NATOSHA MARTIN, 37, of Cody, Wyoming on October 12, 2021 for conspiracy to distribute methamphetamine. She received 37 months of imprisonment to be followed by three years of supervised release. Martin was ordered to pay a $100.00 special assessment and a $300.00 community restitution. The Postal Inspector with the United States Postal Service and the Wyoming Division of Criminal Investigation investigated this case.
Federal District Court Judge Nancy D. Freudenthal sentenced CHRISTOPHER RYAN GROSS, 34, of Cheyenne, Wyoming on September 30, 2021 for felon in possession of a firearm. He received 37 months of imprisonment to be followed by 37 months of supervised release. Gross was ordered to pay a $100.00 special assessment. The Laramie County Sheriff’s Office investigated this case.
Chief Federal District Court Judge Scott W. Skavdahl sentenced EDRAS PANTOJA-VILLAFRANCA, 22, of San Francisco, California on February 12, 2021 for possession with intent to distribute fentanyl, cocaine, and aiding and abetting. Pantoja-Villafranca was arrested in Evanston, Wyoming. He received 70 months of imprisonment, to be followed by five years of supervised release, and ordered to pay $200.00 in community restitution and a $100.00 special assessment. The Uinta County Sheriff’s Office and Drug Enforcement Administration investigated this case. Luis Ramon Medina-Saucedo was a co-conspirator in this case.
Chief Federal District Court Judge Scott W. Skavdahl sentenced LUIS RAMON MEDINA-SAUCEDA, 23, of Aurora, Colorado on February 12, 2021 for possession with intent to distribute fentanyl, cocaine, and aiding and abetting. Medina-Saucedo was arrested in Evanston, Wyoming. He received 70 months of imprisonment, to be followed by five years of supervised release, and ordered to pay $200.00 in community restitution and a $100.00 special assessment. The Uinta County Sheriff’s Office and Drug Enforcement Administration investigated this case.
Tuesday 12 October 2021
“Diamond Enterprise” Boss Pleads Guilty to Racketeering, Interstate Threats, Money Laundering, Fraud, and Gambling OffensesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that ABDURAMAN ISENI, a/k/a “Diamond,” pled guilty today to eight counts of criminal conduct, including overseeing a multi-year racketeering enterprise, interstate threats, money laundering, bank fraud conspiracy, false statements to a bank, and two gambling conspiracy offenses. ISENI pled guilty before U.S. District Judge Andrew L. Carter, to whom the case is assigned.
U.S. Attorney Damian Williams said: “As he admitted today, Abduraman Iseni led a network of underground gambling establishments to prop up a criminal enterprise under his control. Iseni engaged in a series of additional crimes, including money laundering, threatening a victim with physical violence, and defrauding and lying to banks in an effort to receive money to which he was not entitled. Thanks to the hard work of our partners at the FBI, Iseni stands convicted of numerous offenses and awaits sentencing for his years of crime.”
According to the Indictment, public court filings, and statements made in court:
ISENI oversaw a racketeering enterprise referred to in the Indictment as the “Diamond Enterprise.” The Diamond Enterprise was an organized criminal group operating under ISENI’s direction. ISENI offered his protection, connections, and substantial influence in the criminal underworld to other members of the racketeering enterprise, in exchange for a share of their illegal profits. The Diamond Enterprise thrived in part on the revenues generated by a network of illegal gambling parlors – “Sports Café,” “Friendly Café,” and “Oasis Café” – located throughout Brooklyn that hosted underground poker games and hosted illegal sports books. Some of these revenues, in turn, were laundered through a series of bank accounts in an effort to conceal and facilitate the Enterprise’s continued operations.
In addition to the Enterprise’s operations, ISENI separately admitted to threatening a victim with physical violence, and a host of additional crimes, including money laundering, bank fraud conspiracy, and making false statements to a bank for the purpose of inducing the bank to release funds to which ISENI was not entitled.
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ISENI, 56, of Staten Island, New York, is scheduled to be sentenced by Judge Carter on January 18, 2022, at 3:30 p.m. Under the terms of his plea agreement, ISENI also agreed to pay forfeiture of $349,000.
Mr. Williams praised the outstanding work of New York FBI’s Balkans and Middle East Organized Crime Squad. He also thanked the FBI’s Newark Office, the New York City Police Department, the State Department’s Diplomatic Security Service, the Small Business Administration Office of the Inspector General, the Social Security Administration Office of the Inspector General, the New York State Liquor Authority, and United States Customs and Border Protection for their investigative efforts and ongoing support and assistance with the case.
The prosecution of this case is being overseen by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Samuel L. Raymond and David R. Felton are in charge of the case.
York Man Convicted of Drug-Trafficking and Firearms OffensesRead the Press Release
HARRISBURG—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Eric Banks, age 41, of York, Pennsylvania, was convicted on October 8, 2021, following a four-day jury trial held before United States District Court Judge Jennifer P. Wilson of conspiracy to distribute heroin, possession with intent to distribute fentanyl, crack cocaine, and powder cocaine, possession of firearms in furtherance of drug trafficking, and possession of firearms as a previously convicted felon.
According to Acting United States Attorney Bruce D. Brandler, Banks distributed significant quantities of heroin, fentanyl, crack cocaine, and powder cocaine in the York area in 2017 and 2018. In January 2018, during the execution of a search warrant at Banks’ York residence, law enforcement recovered drugs, drug-packaging materials, and three loaded handguns. Two of the handguns had been reported stolen.
The case was investigated by the Federal Bureau of Investigation and the York County Drug Task Force. Assistant U.S. Attorneys Carlo D. Marchioli and Christian T. Haugsby are 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.”
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for these offenses is imprisonment for life, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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William J. Ihlenfeld, II sworn in as United States Attorney for the Northern District of West VirginiaRead the Press Release
U.S. Attorney William J. Ihlenfeld, IIWHEELING, WEST VIRGINIA – William J. Ihlenfeld, II has taken the oath of office to become the United States Attorney for the Northern District of West Virginia. Ihlenfeld was nominated by President Biden on August 10, 2021 and confirmed by the U.S. Senate on October 5, 2021. U.S. District Judge Thomas S. Kleeh administered the oath of office to U.S. Attorney Ihlenfeld today.
As U.S. Attorney, Ihlenfeld is the top-ranking federal law enforcement official in the Northern District of West Virginia, which includes offices in Wheeling, Martinsburg, Clarksburg, and Elkins. He oversees a staff of 53 employees, including 24 attorneys and 28 non-attorney support personnel. 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.
Ihlenfeld’s career in the law has been punctuated by terms of public service. He previously served as the United States Attorney in the Northern District of West Virginia, from 2010 until 2016. Prior to that, he was a state prosecutor for thirteen years in Ohio County and Brooke County, including three years as a domestic violence prosecutor. Most recently, he was a member of the West Virginia Legislature.
During his first term as U.S. Attorney, Ihlenfeld investigated and prosecuted British banking giant HSBC for its failure to identify money laundering transactions by Mexican drug cartels and terror groups. He also helped to broker a $150 million settlement with the McKesson Corporation for its filling of suspicious orders of painkillers from West Virginia pharmacies.The prevention and prosecution of public corruption has been a priority of Ihlenfeld throughout his career and will continue to be during his second term as U.S. Attorney.
Ihlenfeld has been honored by the Drug Enforcement Administration, the White House Office of National Drug Control Policy, and the FBI Citizens Academy for his efforts to address substance abuse.He served for many years as an executive board member of the West Virginia Coalition Against Domestic Violence as well as the Upper Ohio Valley Sexual Assault Help Center.
Ihlenfeld graduated with honors from Ohio University and earned his law degree from West Virginia University.
Wetzel County man admits to firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – Samuel Amos Minger, of New Martinsville, West Virginia, has admitted to firearms charge, United States Attorney William J. Ihlenfeld, II announced.
Minger, 42, pleaded guilty today to one count of “Unlawful Possession of a Firearm.” Minger, a person prohibited from having a firearm because of prior offenses, admitted to having a six-shot revolver in November 2020 in Tyler County.
Minger faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David J. Perri is prosecuting the case on behalf of the government. The Tyler County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
U.S. Magistrate Judge James P. Mazzone presided.
U.S. Attorney Announces Arrest of Iranian Large-Scale Heroin TraffickerRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Anne Milgram, the Administrator of the U.S. Drug Enforcement Administration (“DEA”), announced today the arrest of MALEK MOHAMMAD BALOUCHZEHI, a/k/a “Malek Khan,” for conspiring to import heroin into the United States and distributing heroin for importation into the United States. BALOUCHZEHI, a citizen of Iran, was taken into custody by Kenyan authorities expelled to the United States from Kenya on October 9, 2021. BALOUCHZEHI was presented before United States Magistrate Judge Sarah Netburn earlier today.
U.S. Attorney Damian Williams said: “From thousands of miles away, Malek Balouchzehi allegedly arranged the importation of massive quantities of heroin into the United States with seemingly little regard for the devastation that highly addictive opiates cause after landing at our shores. Balouchzehi’s expulsion to the United States is a direct result of this Office’s successful ongoing partnership with the D.E.A., and we commend the outstanding work of the agents both here and abroad who made today’s charges possible.”
D.E.A. Administrator Anne Milgram said: “This investigation demonstrates our collective resolve to pursue criminals who traffic in these dangerous, addictive substances. For decades, DEA’s partnerships with our law enforcement partners around the world have been the key to bringing to justice those threatening our communities. DEA will continue to bring all that we have to bear to combat and defeat the criminal drug traffickers putting Americans’ safety and health at risk.”
According to the allegations contained in the Complaint charging the defendant,[1] which was unsealed today in Manhattan federal court:
BALOUCHZEHI is an Iran-based drug trafficker who distributes methamphetamine and manufactures and distributes heroin. In or about September 2019, BALOUCHZEHI and his associate began communicating and meeting with individuals whom BALOUCHZEHI believed were heroin traffickers interested in large quantities of heroin for importation into the United States, as well as methamphetamine for distribution in Australia. Those individuals were, in fact, a confidential source working at the DEA’s direction, and an undercover DEA agent posing as a New York-based heroin distributor. In December 2019, BALOUCHZEHI caused a sample of approximately two kilograms of heroin to be delivered in Mozambique, with the understanding that those drugs would be transported to the United States for testing and sale. Following this sample shipment, BALOUCHZEHI planned to supply larger quantities of heroin for importation to and distribution within the United States, and in December 2019, BALOUCHZEHI discussed providing as many as 400 kilograms of heroin for importation to the United States in the next transaction.
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BALOUCHZEHI, 38, a citizen of Iran, is charged with one count of conspiring to import heroin into the United States and one count of distributing heroin intending that the narcotics would be imported into the United States. Both counts carry a maximum sentence of life in prison and a mandatory minimum sentence of 10 years in prison. The statutory minimum and maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding investigative efforts of the DEA’s Special Operations Division, Bilateral Investigations Unit and New York Field Division; the DEA’s Nairobi, Maputo, Pretoria, Bucharest, and Jakarta Country Offices; the Kenyan National Police, Directorate of Criminal Investigations; the Mozambique National Criminal Investigation Services; and the Western Australia Police Force. Mr. Williams also thanked the U.S. Department of Justice’s Office of International Affairs for its assistance.
The case is being prosecuted by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Michael D. Lockard and Kimberly J. Ravener are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations and every fact described should be treated as an allegation.
Two Men Sentenced to Prison for Methamphetamine Distribution in Greater MinnesotaRead the Press Release
ST. PAUL, Minn. – Two men have been sentenced to prison for their roles in a methamphetamine distribution ring in greater Minnesota.
According to court documents, Jonathan Stuart Listrom, 35, of Circle Pines, conspired with his co-defendant Steven Leroy Johnson, 53, of Glenwood, to sell methamphetamine in the Alexandria area. On August 25, 2019, law enforcement arrested Johnson in Alexandria on an outstanding warrant and found 240 grams of methamphetamine in his vehicle. On August 27, 2019, law enforcement arrested Listrom in Alexandria with 886 grams of 99 percent pure methamphetamine that he intended to distribute to Johnson. On January 23, 2020, Listrom was arrested again with approximately 70 grams of methamphetamine.
Listrom pleaded guilty to one count of conspiracy to distribute methamphetamine and was sentenced on October 6, 2021 to 192 months in prison followed by five years of supervised release. Johnson pleaded guilty to one count of possession with intent to distribute methamphetamine and was sentenced today to 120 months in prison followed by five years of supervised release.
Acting U.S. Attorney W. Anders Folk for the District of Minnesota made the announcement after U.S. District Judge Wilhelmina M. Wright sentenced the defendants.
This case was the result of an investigation conducted by the West Central Minnesota Drug and Violent Crime Task Force, the Alexandria Police Department, the Douglas County Sheriff’s Office, the Minnesota Bureau of Criminal Apprehension, and the United States Drug Enforcement Administration.
This case was prosecuted by Assistant U.S. Attorney Thomas M. Hollenhorst.
Two Individuals Sentenced in Methamphetamine and Fentanyl Distribution CaseRead the Press Release
BOISE – A Boise man and an Arizona man were sentenced to federal prison for conspiracy and for possessing methamphetamine and fentanyl with the intent to distribute it to others.
Chief U.S. District Judge David C. Nye sentenced Derek J. Tuschoff, 36, of Boise, to seven years imprisonment and Robert B. Mahan Jr., 38, of Phoenix, to ten years imprisonment. Both Tuschoff and Mahan were ordered to serve five years of supervised release upon completion of their prison sentences.
According to court records, beginning in January 2019, law enforcement investigated Tuschoff for distributing large quantities of methamphetamine in the Treasure Valley. In May 2019, Tuschoff was monitored by law enforcement while he traveled from Boise to Phoenix to meet with individuals that investigators believed were his drug suppliers. Later, in July 2019, Tuschoff met with one of these suppliers, Mahan, at a hotel in Pocatello. After leaving the hotel and while driving back towards Boise, Tuschoff was stopped and arrested by law enforcement officers. Investigators found approximately two pounds of methamphetamine and 234 fentanyl pills in Tuschoff’s car. The following day when law enforcement officers arrested Mahan, they found more methamphetamine, heroin, and 196 fentanyl pills. Law enforcement officers also recovered $37,775 of drug proceeds hidden in Mahan’s car.
Acting U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the cooperative efforts of the Idaho State Police, Drug Enforcement Administration, Boise Police Department, Fort Hall Police Department, and members of the BADGES Task Force that include investigators from the Pocatello Police Department, Chubbuck Police Department, and Bannock County Sheriff's Office.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case was prosecuted by the Special Assistant U.S. Attorney hired by the Ada County Prosecuting Attorney’s Office with funds provided by the High Intensity Drug Trafficking Areas (HIDTA) program. HIDTA is part of the Office of National Drug Control Policy (ONDCP) created by Congress with the Anti-Drug Abuse Act of 1988. It provides assistance to federal, state, and local law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States. Idaho is part of the Oregon-Idaho HIDTA. The Idaho HIDTA is a collaboration of local, multi-jurisdictional law enforcement drug task forces, and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada, Canyon, Bannock, Kootenai, and Malheur Counties.
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Texas Man Indicted for Sending Violent Threats to Prominent Maryland Doctor Who Had Been a Vocal Advocate of the COVID-19 VaccineRead the Press Release
A federal grand jury in Baltimore, Maryland, has indicted a Texas man for sending a threatening communication to a Maryland doctor.
The indictment was unsealed today following the arrest of Scott Eli Harris, 51, of Aubrey, Texas, who is scheduled to have an initial appearance on Wednesday, Oct. 13, in U.S. District Court in Plano, Texas.
The indictment charges Harris with a single count of willfully transmitting in interstate commerce a threat to injure another person. Specifically, it alleges that Harris sent a message from his cellular phone to the doctor, who had been a vocal proponent of the COVID-19 vaccine, that included violent and explicit threats, such as, “Never going to take your wonder drug. My 12 gauge promises I won’t,” and “… I can’t wait for the shooting to start.” The message also referenced the doctor’s race and national origin.
If convicted, Harris faces a maximum sentence of five years in prison and a fine of up to $250,000.
The indictment was announced by Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Erek L. Barron for the District of Maryland and Special Agent in Charge Thomas J. Sobocinski of the FBI Baltimore Field Office.
This case was investigated by the FBI. Assistant U.S. Attorney P. Michael Cunningham of the District of Maryland and Trial Attorney Katherine G. DeVar of the Justice Department’s Civil Rights Division are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence of guilt, and the defendant is presumed innocent unless proven guilty.
Texas Man Facing Federal Indictment in Maryland for Threatening a Medical Doctor Who Publicly Advocated for the COVID-19 VaccineRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging Scott Eli Harris, age 51, of Aubrey, Texas for the federal charges of threats transmitted by interstate communication, related to a threatening message sent to a Maryland medical doctor, who publicly advocated for the COVID-19 vaccine. The indictment was returned on September 29, 2021, and unsealed today upon Harris’ arrest. Scott has an initial appearance scheduled on Wednesday, October 13, 2021, at 10:00 a.m., in U.S. District Court in Plano, Texas.
The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
“We take seriously threats and intimidation, and this charge makes clear that such conduct will be prosecuted federally,” said United States Attorney Erek L. Barron. “We will continue to work with our law enforcement partners to investigate and prosecute those making such threats.”
The one-count indictment alleges that, on July 12, 2020, Harris sent a threat from his cell phone to the Maryland doctor who had been a vocal advocate of the Covid-19 vaccine. Harris’ alleged threats included violent statements including “Never going to take your wonder drug. My 12 gauge promises I won’t .… I can’t wait for the shooting to start.”
If convicted, Harris faces a maximum sentence of five years in federal prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. Harris is expected to have an initial appearance in U.S. District Court in Baltimore at a later date.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Erek L. Barron commended the FBI for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney P. Michael Cunningham and Trial Attorney Katherine DeVar of the Justice Department’s Civil Rights Division, who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/civil-rights and https://www.justice.gov/usao-md/community-outreach.
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Tallahassee Man Sentenced to Forty-Four Months in Federal Prison for Communicating Threats of ViolenceRead the Press Release
TALLAHASSEE, FLORIDA – Daniel Alan Baker, 34, of Tallahassee, Florida was sentenced to forty-four months in federal prison for two counts of transmitting a communication in interstate commerce containing a threat to kidnap or injure another person. The sentence was announced by Jason R. Coody, Acting United States Attorney for the Northern District of Florida.
Baker’s sentence was the result of a federal jury returning a guilty verdict on May 6, 2021, finding Baker guilty of two counts of transmitting a communication in interstate commerce containing a threat to kidnap or injure another person.
Baker was arrested by agents of the Federal Bureau of Investigation on January 15, 2021, after he issued a “Call to Arms” for like-minded individuals to violently confront protestors that may gather at the Florida Capitol in the wake of the January 6 riots at the U.S. Capitol. He specifically called for others to join him in encircling any protestors and confining them at the state Capitol complex using firearms. Baker posted two such threatening communications on January 12 and 14, 2021.
“The free exercise of speech is central to our democracy,” stated Acting U.S. Attorney Coody. “However, the defendant’s threats of armed violence to inhibit expression of political views different than his own are both unlawful and dangerous. Today’s sentence acknowledges the defendant’s threats to incite violence and should serve as a significant deterrent to those who would solicit others to join them in conducting criminal acts rather than engage in lawful debate.”
"This case proves that the FBI will not tolerate those who seek to wreak havoc in our communities," said Rachel L. Rojas, Special Agent in Charge of the FBI Jacksonville Division. "Violence designed to intimidate citizens and influence government is what the FBI's counterterrorism team was designed to combat, and our team remains laser focused on identifying, investigating, and disrupting individuals who cross the line from expressing beliefs to violating federal law by inciting violence or engaging in criminal activity. The communities of North Florida deserve nothing less than our full commitment to aggressively pursue these cases, and we will continue to work alongside our federal, state, and local law enforcement partners. We are especially grateful for the work of the Florida Department of Law Enforcement, Leon County Sheriff’s Office and Tallahassee Police Department in this case."
This case was the result of a collaborative investigation by the Federal Bureau of Investigation, Florida Department of Law Enforcement, Leon County Sheriff’s Office, and the Tallahassee Police Department. Assistant United States Attorneys Stephen Kunz and Lazaro Fields prosecuted this case.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Suburban Pittsburgh Man Sentenced to 7+ Years in Prison for Violating Child Sexual Exploitation LawsRead the Press Release
PITTSBURGH - A suburban Pittsburgh resident has been sentenced in federal court to 90 months’ imprisonment on his conviction of federal child exploitation laws, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge Robert J. Colville imposed the sentence on Anthony Bellisario, 58, formerly of Robinson Township, PA.
According to information presented to the court, as a result of a large-scale, international investigation into the darknet site “Welcome 2 Video”, which offered child sexual exploitation images and videos for sale using the cryptocurrency bitcoin, Bellisario was identified as a user of this Website. Namely, from January 21, 2017 through February 27, 2018, Bellisario downloaded approximately 1,673 files of child sexual abuse material (commonly referred to as child pornography) and uploaded approximately six files to the Website and in return received credits to obtain “free” videos of child sexual abuse material.
The Court was further advised that on March 27, 2018, during the execution of a federal search warrant at Bellisario’s residence, law enforcement seized two laptops owned by Bellisario. On these laptops, law enforcement found 1,000 unique videos and 443 unique images of child sexual abuse material; as well as 769 unique videos and 9,340 unique images of child erotica.
Bellisario used a Virtualized Private Network (VPN) in an effort to mask his identity online because he “[knew] what [he was] doing was illegal. That way people can’t find you for doing things that are illegal.” The Court was further informed that Bellisario admitted to law enforcement that he had been looking at child sexual abuse material for the last 15 years.
Judge Colville remanded Bellisario into custody, denying Bellisario’s request to self-report to the Bureau of Prisons on a later date.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
Assistant United States Attorney Rebecca L. Silinski prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Department of Homeland Security – Homeland Security Investigations, with the assistance of the North Strabane Police Department, Robinson Township Police Department and the Pennsylvania Office of the Attorney General, for the investigation leading to the successful prosecution of Bellisario.
Springfield Man Pleads Guilty to Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Missouri, man pleaded guilty in federal court today to receiving and distributing hundreds of images and videos of child pornography.
Chandler Durham, 31, pleaded guilty before U.S. Chief Magistrate Judge David P. Rush to one count of receiving and distributing child pornography.
On Feb. 5, 2020, a detective with the Southwest Missouri Cyber Crimes Task Force reviewed several CyberTips from the National Center for Missing and Exploited Children. Instagram, Twitter, and Google had reported that Durham uploaded child pornography to his accounts. During the investigation, the detective received approximately 50 CyberTips that reported uploads of child pornography by Durham. The detective identified 1,500 images and 233 videos of child pornography uploaded to Durham’s Google account, including videos of child bestiality and child bondage.
Law enforcement officers executed a search warrant at Durham’s residence on July 6, 2020, and seized seven electronic items. Investigators located both images and videos of child pornography on Durham’s electronic devices and accounts.
Under federal statutes, Durham is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Stephanie L. Wan. It was investigated by the Springfield, Mo., Police Department, the Southwest Missouri Cyber Crimes Task Force, and U.S. Immigration and Customs Enforcement.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Shreveport Police Department Chosen as Participant in Partnership with U.S. Department of Justice to Help Reduce Violent Crime in ShreveportRead the Press Release
SHREVEPORT, La. – Acting United States Attorney Alexander C. Van Hook has announced that the City of Shreveport Police Department has been chosen to participate in the National Public Safety Partnership with the U.S. Department of Justice (DOJ) and Bureau of Justice Assistance (BJA). Acting United States Attorney Alexander C. Van Hook, along with Interim Shreveport Police Chief Wayne Smith, Shreveport Mayor Adrian Perkins, and Caddo District Attorney James Stewart held a press conference today to provide details about the announcement.
The Justice Department announced the 10 new National Public Safety Partnership (PSP) sites that will work with the Department of Justice, local agencies and community organizations to reduce violence in areas with elevated crime rates. PSP serves as a Justice Department- wide initiative that enables communities to receive coordinated training and technical assistance and an array of resources from the Department’s programmatic and law enforcement components. In addition to Shreveport, Louisiana, the 10 sites include: Antioch, California; Aurora, Colorado; Chattanooga, Tennessee; Gary, Indiana; Louisville, Kentucky; North Charleston/Charleston, South Carolina; Philadelphia, Pennsylvania; Phoenix, Arizona; and Richmond, Virginia.
“The acceptance into this partnership has taken a long time and the involvement of many before the current administration,” stated Acting U.S. Attorney Alexander C. Van Hook. “Violent crime in the Shreveport area has grown despite the Herculean efforts of federal, state and local law enforcement to combat it. The assistance that will be given through this partnership to the Shreveport Police Department will equip our officers and city leaders to combat these growing trends and help to curtail the continued increase of crime.”
“Violence – gun violence in particular - has taken a heavy toll on communities across the country, and its impact has been felt most deeply in neighborhoods where resources have always been scarce and justice has historically been elusive,” said Amy L. Solomon, Acting Assistant Attorney General of the Justice Department’s Office of Justice Programs, whose Bureau of Justice Assistance administers the PSP initiative. “We are proud to join local leaders and our partners from across the Department of Justice as we work together to stem the tide of violent crime in these hard-hit communities.”
“From five to now 50 jurisdictions in seven years, PSP has taught the Department a new way to work with communities. We have learned that it is only by leveraging the power of community and using all our collective resources and dedicating all our efforts that we will reduce crime,” said BJA Acting Director Kristen Mahoney. “We look forward to partnering with the 10 new sites to achieve what we are all working toward—safe places to live and work.”
After decades of falling crime rates, statistics show that in many cities across the county violent crime increased in 2020. To address the increase in violence, specifically gun violence, on May 26, 2021, the Attorney General announced the Department’s new Comprehensive Strategy for Reducing Violent Crime. The addition of 10 new PSP sites is one prong in that strategy. The PSP program began as a pilot in 2014 and was formally adopted by the Department as an intensive training and technical assistance protocol in June 2017. Sites must apply to participate. To be considered for selection, a site must have sustained levels of violence that far exceed the national average and demonstrate a commitment to reducing crime and enhancing community engagement.
More than 40 cities have participated in PSP in prior cohorts. The primary participating Justice Department components include the Office of Justice Programs; the Office on Violence Against Women; the Office of Community Oriented Policing Services; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Federal Bureau of Investigation; the U.S. Drug Enforcement Administration; and the U.S. Marshals Service.
More information about PSP can be found at: http://www.nationalpublicsafetypartnership.org.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
In addition to leadership from local and federal partners, DOJ dedicates specific individuals to support each PSP site throughout the three-year engagement, to include a retired law enforcement executive, a DOJ Program Office Champion to serve as the point of contact for the site, federal law enforcement partners, and a program advisor. PSP federal law enforcement partners include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), and U.S. Marshals Service (USMS).
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Seven-Time Felon Who Possessed Firearm and Crack Pleads Guilty to Federal CrimesRead the Press Release
A man who illegally possessed a firearm and possessed crack cocaine he intended to distribute pled guilty today in federal court in Cedar Rapids.
Patrick Green, age 50, from Dubuque, Iowa, was convicted of one count of being a felon in possession of a firearm and one count of possessing with intent to distribute cocaine base, which is also known as crack cocaine.
At the plea hearing, Green admitted that he illegally possessed the firearm in July 2017 and that he possessed the crack in October 2018. Green had previously been convicted of seven felonies, including four drug felonies, two armed robberies, and aggravated discharge of a firearm.
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. Green remains in the custody of the United States Marshal pending sentencing. Green 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 investigated by the Dubuque Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Dubuque Drug Task Force, and is being prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is CR‑19‑1018‑CJW‑MAR.
Follow us on Twitter @USAO_NDIA.
Seven men indicted for illegal firearms possession, drugsRead the Press Release
SAVANNAH, GA: Seven defendants face federal charges including drug trafficking and illegal possession firearms after separate indictments by a grand jury in the Southern District of Georgia, while recent actions in U.S. District Court include guilty pleas and criminal sentences.
The indicted cases are being investigated as part of Project Safe Neighborhoods in collaboration with federal, state and local law enforcement agencies, including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the FBI, in an ongoing effort to reduce violent crime by targeting those who illegally possess firearms.
“Convicted felons are prohibited from possessing firearms,” said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. “We will continue to relentlessly pursue those whose illegal possession of guns threatens the safety of our community.”
In the past three years, nearly 700 defendants have been federally charged in the Southern District of Georgia for illegal firearms offenses – most often for possessing a firearm after conviction for a previous felony. That charge carries a statutory penalty upon conviction of up to 10 years in prison, and there is no parole in the federal system.
Defendants named in federal indictments from the October 2021 term of the U.S. District Court grand jury include:
- Dwight Eady, 39, of Milan, Ga., charged with Possession with Intent to Distribute Methamphetamine; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; Possession of a Firearm by a Convicted Felon; and Possession of Ammunition by a Convicted Felon;
- Darren Nathaniel Mathis, 35, of Savannah, charged with Possession of Methamphetamine with Intent to Distribute; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and Possession of a Firearm by a Convicted Felon;
- Tommy Greene, 34, of Savannah, Possession with Intent to Distribute Eutylone (Bath Salts) and Methamphetamine, Possession of a Firearm by a Convicted Felon; and Possession of a Firearm in Furtherance of a Drug Trafficking Crime;
- Derek Hayes, 50, of Savannah, charged with Possession of a Firearm by a Convicted Felon, and Possession of Cocaine;
- Rasheen Dyshawn Stephens, 30, of Savannah, charged with Possession of a Firearm by a Convicted Felon;
- Jonathan R. White, 24, of Savannah, charged with Possession of a Firearm by a Convicted Felon; and,
- Kenya Leon Parker, 33, of Savannah, charged with Possession of a Firearm by a Convicted Felon
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
Additional defendants recently have been adjudicated on federal charges that include illegal firearms possession:
- Bradley Harrison, 25, of Brunswick, Ga., was sentenced to 84 months in prison followed by four years of supervised release after pleading guilty to Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine and Heroin, and Possession of a Firearm by a Convicted Felon. Harrison was one of eight defendants indicted in Operation Krack Down II, which targeted a drug trafficking conspiracy in the Brunswick area.
- Khari Courtney Osborne, 27, of Hephzibah, was sentenced to 38 months in prison followed by three years of supervised release after pleading guilty to Possession of a Firearm by a Convicted Felon. A member of the Gangster Disciples criminal street gang, Osborne was on state probation after serving time in prison for armed robbery when Richmond County Sheriff’s deputies found him in possession of a loaded pistol during a February 2020 traffic stop.
- Julian Theophilus Moffett, 39, of Augusta, was sentenced to 63 months in prison followed by three years of supervised release and fined $1,000 after pleading guilty to Possession of a Firearm by a Convicted Felon. Moffett is a member of the Gangsta Killa Bloods criminal street gang and has a criminal history that includes convictions for drug trafficking and gun violence. He was arrested in March 2020 when Richmond County sheriff’s deputies found a pistol in his vehicle during a traffic stop.
- Terrence Latroy Brown, 31, of North Charleston, S.C., was sentenced to 37 months in prison followed by three years of supervised release after pleading guilty to Possession of a Firearm by an Illegal Drug User. Brown admitted that on April 29, 2020, he was an illegal user of methamphetamine and Eutylone (bath salts) when Richmond County Sheriff’s deputies during a traffic stop found an assault-style rifle and multiple high-capacity magazines in his vehicle.
- Curtavious Bonner, 30, of Thomson, Ga., was sentenced to 48 months in prison and ordered to serve three years of supervised release after pleading guilty to Possession of a Firearm by a Convicted Felon. Bonner was arrested in July 2019 when Thomson Police officers checking on suspicious activity outside a residence found two pistols in Bonner’s vehicle.
- Malcolm Robinson Brown, 39, of Augusta, was sentenced to 37 months in prison followed by three years of supervised release after pleading guilty to Possession of a Firearm and Ammunition by a Convicted Felon. Brown was arrested when Richmond County sheriff’s deputies in May 2020 found him in possession of a pistol and ammunition while arresting him at his home on an outstanding warrant on state charges.
- Dequan Beniman, 27, of Savannah, was sentenced to 24 months in prison followed by three years of supervised release after pleading guilty to Possession of a Firearm by a Convicted Felon. Beniman was arrested in January 2020 when Savannah Police officers found Beniman with two loaded pistols in his pockets, along with a bag containing additional ammunition.
- Willie Lee Batten, 59, of Jacksonville, Ga., was sentenced to 18 months in prison followed by three years of supervised release after pleading guilty to Possession of a Firearm by a Convicted Felon. Batten was charged in November 2020 as part of Operation Rat Trap II, targeting a drug trafficking conspiracy in south Georgia. With the exception of one defendant who is awaiting trial, all remaining defendants identified in Operation Rat Trap II have been sentenced or await sentencing after pleading guilty.
- Chance Derrell Christian, 42, of Kingstree, S.C., was sentenced to 15 months in prison followed by three years of supervised release and fined $5,500 after pleading guilty to Possession of a Firearm by a Convicted Felon. Christian was arrested in May 2020 during a traffic stop by the Georgia State Patrol when troopers found a pistol in his vehicle.
- Marcus Rashad Allen, 33, of Savannah, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah Police officers found him in possession of a pistol in August 2020 after he ran from officers attempting to arrest him on an outstanding warrant.
- Jeffrey Brian Voorhees, 37, of Douglas, Ga., awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Voorhees was charged along with 47 co-defendants in Operation Sandy Bottom, targeting a gang-related drug trafficking conspiracy in the Coffee County area.
- David Bryson Murphy, 20, of Thomson, Ga., awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. McDuffie County sheriff’s deputies charged Murphy in April after finding him carrying a pistol during a traffic stop.
- Damario Antron Williams, 36, of Augusta, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Williams was wanted on outstanding state warrants for aggravated assault and firearms offenses when Richmond County Sheriff’s deputies investigating a report of a disturbance at an Augusta residence in January found Williams in the back yard with a loaded pistol in his waistband.
- Charles Edward Bennett, 31, of Augusta, awaits sentencing after pleading guilty to an Information charging him with Possession of a Firearm by an Illegal Drug User. Bennett was charged in January 2019 after Richmond County Sheriff’s deputies found him in possession of a pistol.
These cases also are being investigated under the Prosecutor to Prosecutor Program (P3), in which federal and state prosecutors collaborate to determine the most appropriate venue for adjudication of alleged crimes.
Agencies investigating these cases include the ATF, the FBI, the Drug Enforcement Administration, the Georgia State Patrol, the Savannah Police Department, the Richmond County Sheriff’s Office, the McDuffie County Sheriff’s Office, the Coffee County Sheriff’s Office, the Thomson Police Department, the Brunswick Police Department, and the Glynn County Police Department.
The cases are being prosecuted for the United States by Southern District U.S. Attorney’s Office Assistant U.S. Attorneys, including Henry W. Syms Jr., Patricia G. Rhodes, Tania D. Groover, Joshua S. Bearden, and Special Assistant U.S. Attorney Darron J. Hubbard.
Under federal law, it is illegal for an individual to possess a firearm if he or she falls into one of nine prohibited categories including being a felon; illegal alien; or unlawful user of a controlled substance. Further, it is unlawful to possess a firearm in furtherance of a drug trafficking offense or violent crime. It is also illegal to purchase – or even to attempt to purchase – firearms if the buyer is a prohibited person or illegally purchasing a firearm on behalf of others. Lying on ATF Form 4473, which is used to lawfully purchase a firearm, also is a federal offense.
For more information on the lawful purchasing of firearms, please see: https://www.atf.gov/qa-category/atf-form-4473.
Sean Merchant, a/k/a “Bronxwood,” Sentenced to More Than 16 Years in Prison for Sex Trafficking of MinorsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that SEAN MERCHANT was sentenced today to 196 months in prison for sex trafficking of three minor females. MERCHANT was sentenced by U.S. District Judge Kimba M. Wood, before whom he previously pled guilty to one count of sex trafficking of a minor. As part of his plea, MERCHANT acknowledged that he trafficked three minor females.
U.S. Attorney Damian Williams said: “Sean Merchant preyed upon three minor females who had previously resided at a residential treatment facility for at-risk children and adolescents. Merchant placed these young women in harm’s way by enticing them to perform commercial sex acts for money, and in turn providing them with addictive drugs. It is hard to imagine a more selfish and inhumane act than coercing a minor to have sex with strangers for profit, and Merchant has justly been sentenced to more than 16 years in prison for his outrageous conduct.”
According to the allegations contained in the Indictment and other court documents filed in Manhattan federal court:
From at least in or about March 2017 to at least in or about October 2017, SEAN MERCHANT, a/k/a “Bronxwood,” the defendant, engaged in the sex trafficking and sexual exploitation of three minor victims (“Minor Victim-1,” “Minor Victim-2,” and “Minor Victim-3,” and together, the “Minor Victims”). The defendant recruited, enticed, harbored, transported, provided, obtained, and maintained the Minor Victims for the purpose of commercial sex. Prior to being trafficked by MERCHANT, each of the Minor Victims previously resided at a residential treatment facility located in Westchester County, which provided housing for at-risk troubled children and adolescents on behalf of department of social services for certain counties in New York State.
The defendant recruited the Minor Victims to engage in commercial sex. Subsequently, the defendant used the website Backpage.com, an online classifieds website, to post advertisements of the Minor Victims for commercial sex. The defendant provided Minor Victim-1 and Minor Victim-2 with drugs, and directed them to engage in commercial sex acts in particular locations in the Bronx, New York.
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In addition to his prison sentence, MERCHANT, 32, was sentenced to five years of supervised release.
MERCHANT is the third defendant to be sentenced in this case by Judge Wood for his participation in sex trafficking of minors. Steven Lesane, who pled guilty to sex trafficking of two minor victims, was sentenced to a term of 256 months in prison on July 27, 2021. Jermaine Myrie, who pled guilty to participating in a conspiracy to commit sex trafficking of a minor, was sentenced to a term of 135 months in prison on February 12, 2020. Reuben Sands, who pled guilty to conspiracy to violate the Travel Act, was sentenced to a term of 60 months in prison on December 18, 2019. The final defendant, Martique Mcgriff, is scheduled to be sentenced on December 8, 2021.
This case is part of an ongoing prosecution of 19 defendants, set forth in eight indictments, for the sex trafficking of at least 20 minor girls and young adults in New York State’s social services system. All 19 of the defendants have been convicted, either via guilty plea or following trial.
Any individuals who believe that they have information that may be relevant to this investigation should contact the FBI at 1-212-384-1000 or https://tips.fbi.gov.
Mr. Williams thanked the FBI and the NYPD for their outstanding work in this matter and, in particular, the New York Child Exploitation and Human Trafficking Task Force.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Mollie Bracewell, Elinor Tarlow, Jacob Gutwillig, and Peter Davis are in charge of the prosecution.
Saugus Woman Convicted of Wire Fraud and Aggravated Identity TheftRead the Press Release
BOSTON – A Saugus woman was convicted today by a federal jury in Boston in connection with a scheme to defraud her elderly uncle of his life’s savings.
Jayne Carbone, 52, was convicted following a 5-day trial of four counts of wire fraud and four counts of aggravated identity theft. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Feb. 16, 2022. Carbone was indicted in February 2020.
Between approximately January 2017 and September 2018, Carbone stole over $400,000 from her elderly uncle, whose personal finances she managed. She fraudulently withdrew funds from his retirement annuity and transferred funds from his personal checking account to bank accounts held by Carbone. To conceal the scheme, Carbone provided her uncle with falsified statements for his financial accounts reflecting inflated balances.
The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release, and a fine of up to $250,000 or twice the gross gain or loss from the offense. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison consecutive to any other sentence imposed, up to one year of supervised release, and a fine of up to $250,000 or twice the gross gain or loss from the offense. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Joshua McCallister, Acting Inspector in Charge of the U.S. Postal Inspection Service made the announcement today. Assistant U.S. Attorneys Christopher J. Markham and James R. Drabick of Mendell’s Securities, Financial & Cyber Fraud Unit prosecuted the case.
San Gabriel Valley Man Sentenced to 3 Years in Federal Prison for Scheming to Launder Drug Money via ‘Black Market Peso Exchange’Read the Press Release
LOS ANGELES – A West Covina man was sentenced today to 36 months in federal prison for laundering more than $900,000 in drug money over a two-year period via a “Black Market Peso Exchange” for Mexico-based drug traffickers.
Oscar Sanchez, 52, was sentenced by United States District Judge Virginia A. Phillips. Sanchez pleaded guilty in November 2020 to a single-count information charging him with concealment money laundering.
A Black Market Peso Exchange scheme allows drug traffickers who have their proceeds in U.S. dollars to convert it to a different currency, such as Mexican pesos, via the sale of goods shipped across international borders.
From 2017 to 2019, Sanchez, who worked in downtown Los Angeles, laundered drug money from the United States to Mexico. According to court documents, co-conspirators based in Mexico told drug traffickers to deliver drug proceeds to Sanchez. The drug traffickers contacted Sanchez and used coded language to arrange the delivery of money. Sanchez met with the traffickers at his place of business in Los Angeles and at other locations where he received the money. Using coded language, Sanchez reported to his co-conspirators the amount of money received.
The co-conspirators directed Sanchez to provide the money to third parties in the United States and pay invoices at Los Angeles-based businesses to conceal the source of the money. The U.S.-based third parties who received the money directed payments to be made to co-conspirators in Mexico, completing the money laundering cycle.
For example, in August 2018, a California-based drug trafficker told Sanchez he was speaking on a Mexico-based co-conspirator’s behalf and that he was instructed to deliver something, according to the prosecution’s sentencing memorandum. Sanchez asked if he would be delivering “merchandise” – coded language for money – and agreed to meet. Sanchez later met with the trafficker in Los Angeles, where he received the U.S. dollars in cash.
Shortly after the meeting, a Mexico-based co-conspirator called Sanchez and asked him if someone stopped by to take some “samples” from him. Sanchez said a total of 34 “bras” – coded language for $34,000 – was taken. Sanchez knew the money he received was drug proceeds.
In total, Sanchez laundered at least $914,641 in drug proceeds.
“By assisting members of Mexico-based narcotics trafficking organizations move their proceeds to Mexico, [Sanchez] contributed to the cycle of narcotics distribution that causes substantial harm to communities in the United States,” prosecutors wrote in a sentencing memorandum. “[Sanchez’s] use of coded language during dozens of intercepted calls demonstrate that he was deeply involved in the conduct.”
The FBI, the Drug Enforcement Administration and IRS Criminal Investigation investigated this matter.
Assistant United States Attorneys Joseph T. McNally and Chelsea Norell of the Violent and Organized Crime Section prosecuted this case.
Rhode Island Man Who Sought $4.7 Million in COVID Relief Loans Sentenced for Defrauding CARES Act Paycheck Protection ProgramRead the Press Release
PROVIDENCE – For the second time in one week, a defendant has been sentenced in U.S. District Court in Providence, RI, to a significant term of incarceration in federal prison for defrauding or attempting to defraud the Paycheck Protection Program administered by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, announced Acting United States Attorney Richard B. Myrus.
Today, Michael C. Moller, 42, a Middletown, R.I., man previously convicted and sentenced to 108 months in federal prison for committing four armed bank robberies while on home confinement for an even earlier tax fraud conviction, was sentenced to 82 months and one day in federal prison for fraudulently seeking more than $4.7 million in Paycheck Protection Program loans and violating the terms of his term of federal supervised release.
Today’s sentence follows the October 7, 2021, resolution of criminal charges against David Adler Staveley, a/k/a Kurt David Sanborn, a/k/a David Sanborn, 54, of Andover, MA, the first person in the country charged with defrauding or attempting to defraud the Paycheck Protection Program. Staveley was sentenced to 56 months in federal prison for filing four fraudulent loan applications totaling more than $543,700 for business he did not own.
In this most recent case, an investigation by the FBI and Internal Revenue Service Criminal Investigation determined that, while on federal supervised release, having completed his term of incarceration on the bank robbery convictions, Michael C. Moller, 42, submitted 11 fraudulent loan applications totaling $4,725,742 in his own name, as well as in the names of his father, and in the names of his girlfriend’s son and the brother. Moller received $599,251 from these fraudulent loans, which were designed to assist small businesses that were struggling to survive because of the pandemic.
According to court records, prior to his convictions for robbing four banks and for defrauding the Paycheck Protection Program, Moller was convicted in state courts in Rhode Island and Massachusetts nine times for larceny/obtaining money under false pretenses. Additionally, he was twice convicted in federal courts on tax fraud charges.
According to court documents filed while Moller was awaiting sentencing for defrauding the Paycheck Protection Program, an FBI investigation determined that while detained at the Wyatt Detention Center, he defrauded two fellow inmates by convincing them to give him thousands of dollars in cash as payment for the services of a purported lawyer who would assist them in their criminal and immigration cases. In calls made by Moller from inside the Wyatt Detention Center and reviewed by the FBI, Moller impersonated an attorney named “Sam” and directed individuals associated with the inmates to provide his girlfriend with thousands of dollars in cash. The wife of one inmate delivered $5,000 in cash to Moller’s girlfriend; a friend of another inmate is believed to have delivered approximately $12,000 in cash. One of the victims reported that Moller told him to pack his belongings because the attorney Moller had supposedly hired had arranged for bail to be posted. Bail was never posted.
In recorded conversations between Moller and his girlfriend, and reviewed by the FBI, it was learned that the money was spent on marijuana, gambling, and on Moller’s commissary account at the Wyatt Detention Center.
Appearing today before U.S. District Court Judge Mary S. McElroy, Moller was sentenced to a total of 82 months and one day in federal prison to be followed by 3 years of federal supervised release. Moller was ordered to pay restitution to banks totaling $599,251.
The cases were prosecuted by Assistant U.S. Attorney Lee H. Vilker.
Acting United States Attorney Myrus thanks the SBA Office of Inspector General and the FDIC Office of Inspector General for their assistance in the investigation that determined that Moller had defrauded the Paycheck Protection Program.
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.
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Preston County woman admits to drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – Angela Dawn Yuchek, of Tunnelton, West Virginia, has admitted to a drug charge, United States Attorney William J. Ihlenfeld, II announced.
Yuchek, 32, pleaded guilty today to one count of “Distribution of Methamphetamine.” Yuchek admitted to selling methamphetamine in March 2019 in Preston County.
Yuchek faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Potomac Highlands Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The task force consists of the FBI, West Virginia State Police, Mineral County Sheriff’s Office, Hampshire County Sheriff’s Office, Grant County Sheriff’s Office, and the Keyser Police Department.
U.S. Magistrate Judge Michael John Aloi presided.
Port Neches Man Guilty of Child Pornography ViolationsRead the Press Release
BEAUMONT, Texas – A Port Neches man has pleaded guilty to federal child pornography violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Rion Carlos, 40, pleaded guilty to transportation of child pornography today before U.S. Magistrate Judge Christine L. Stetson.
“Viewing, possessing, trading, or transporting child pornography ultimately drives demand for its production,” said Acting U.S. Attorney Nicholas J. Ganjei. “EDTX is committed to punishing those on both the production and consumption side of this disgraceful and exploitive industry.”
According to court documents, Carlos admitted to using the internet and a cellular phone to provide an individual with links to a cloud storage service, causing the transport of over 300 images of child pornography, including some images that depicted prepubescent minors.
Carlos was indicted by a federal grand jury on June 2, 2021. He faces up to 20 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the 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.justice.gov/psc.
This case is being investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Rachel Grove.
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Police Officer Indicted on Federal Bank Fraud Charge Involving Paycheck Protection Program LoansRead the Press Release
WASHINGTON – A Metropolitan Police Department (MPD) Officer was indicted today on a federal bank fraud charge stemming from a scheme involving $18,345 in Paycheck Protection Program (PPP) loans.
The announcement was made by Acting U.S. Attorney Channing D. Phillips and Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division.
Roberto Adams, 34, was indicted by a grand jury in the U.S. District Court for the District of Columbia. He was arrested on Aug. 13, 2021, following the filing of a criminal complaint in the case and remains free on personal recognizance pending further proceedings. The indictment includes a forfeiture count seeking an $18,345 money judgment.
According to the indictment, Adams made false and fraudulent claims last year to take advantage of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a federal law that is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of forgivable loans to small businesses for job retention and certain other expenses through the PPP. The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set timeframe and use at least a certain percentage of the loan towards payroll expenses.
As alleged in the indictment, Adams sought and received approximately $18,345 in PPP loans through an application to a participating financial lender on behalf of SUPERKLEAN LLC, a Maryland corporation. On loan documents submitted to an FDIC-insured financial institution, Adams claimed to be an eligible self-employed individual with a monthly payroll of $7,338 and sought a forgivable loan to cover payroll expenses. Adams further certified that his business was in operation on Feb. 15, 2020, and “had employees for whom it paid salaries and payroll taxes or paid independent contractors, as reported on Form(s) 1099-MISC.” He also certified that all loan proceeds would be “used only for business-related purposes as specified in the loan application.” Adams submitted a false and fraudulent 2019 Form 1040 Schedule C reporting $94,250 in gross income, $4,120 in expenses, and $88,060 in profits for SUPERKLEAN (which calculates to net profits of $7,338 per month). The Schedule C form indicated that Adams was the sole proprietor and that the business provided janitorial services. Tax records confirm that this 2019 Form 1040 Schedule C was never filed with the Internal Revenue Service, as was falsely and fraudulently claimed in the PPP loan application.
The loan application was approved, and the funds were electronically deposited in Adams’s bank account on Aug. 4, 2020.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI’s Washington Field Office. It is being prosecuted by Assistant U.S. Attorney Joshua S. Rothstein of the Fraud Section of the U.S. Attorney’s Office for the District of Columbia.
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
Pittsburgh Man Sentenced to Prison for Possessing Heroin and Fentanyl While on ProbationRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania, was sentenced today following his guilty plea to a charge of possession with intent to distribute a quantity of heroin and fentanyl, Acting United States Attorney Stephen R. Kaufman announced today.
Quenton McCoy, age 35, pleaded guilty to one count and was sentenced before United States District Judge Marilyn Horan.
In connection with the guilty plea, the court was advised that McCoy had pleaded guilty to possession with intent to distribute heroin and fentanyl in federal court in 2020. In August 2020, McCoy was sentenced to four years’ probation, including 10 months of home detention. In February 2021, while McCoy was still on home detention, a Penn Hills police officer stopped McCoy for a traffic violation. Over the course of the stop, the officer believed that McCoy was involved in criminal activity, and the officer obtained a search warrant for the car. During a search of the car, Penn Hills police officers found distribution quantities of heroin and fentanyl. By possessing heroin and fentanyl, McCoy violated the terms of his probation.
Judge Horan sentenced McCoy for the charge in the Indictment and the probation violation. In total, McCoy was sentenced to 28 months’ imprisonment to be followed by three years of supervised release.
Assistant United States Attorney Brian M. Czarnecki is prosecuting this case on behalf of the government.
The Penn Hills Police Department and the Federal Bureau of Investigation conducted the investigation that led to the prosecution of McCoy.
Physician Agrees to Pay $640,000 to Resolve Allegations of Anti-Kickback ViolationsRead the Press Release
SHREVEPORT, La. - Acting United States Attorney Alexander C. Van Hook announced today that Dr. Llewelyn Simon, an internal medicine physician from Monroe, Louisiana, has agreed to pay the United States $640,000 to resolve allegations that he accepted payments for referrals of home health patients.
Dr. Simon served as a medical director for the now defunct United Home Care home health agency and in that capacity, received monthly payments. The United States alleged that the medical director fees exceeded the fair market value of the services provided by Simon and that the excess fees were for referrals of patients, many of whom were Medicare beneficiaries.
Congress passed the Anti-Kickback Statute to prevent financial incentives from improperly influencing medical decision-making which can lead to excessive and unnecessary services. Specifically, the Anti-Kickback Statute prohibits offering or paying anything of value to induce the referral of items or services covered by federal health care programs.
“Improper financial relationships between health care providers can lead to overutilization and increase the cost of health care services paid for by the taxpayers,” stated Acting United States Attorney Alexander C. Van Hook. “We will continue to ensure that health care decisions are based on the needs of patients rather than the financial interests of providers.”
The investigation of this matter was conducted by the Department of Health and Human Service’s Office of Inspector General. Assistant United States Attorney Melissa Theriot handled the case. The resolution was the result of a coordinated effort between federal agencies and illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act.
Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
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Pennsylvania man sentenced for his role in a drug trafficking operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Lance Smith, of Confluence, Pennsylvania, was sentenced today to time served for his role in a drug trafficking conspiracy, United States Attorney William J. Ihlenfeld, II announced.
Smith, 48, pled guilty in April 2021 to one count of “Conspiracy to Distribute Heroin and Cocaine Base.” Smith admitted to working with others to distribute heroin and cocaine base, also known as “crack,” from March 2018 to September 2020 in Monongalia County and elsewhere.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Drug Enforcement Administration, the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Monongalia County Sheriff’s Office investigated.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
U.S. District Judge Thomas S. Kleeh presided.
Related press release: https://www.justice.gov/usao-ndwv/pr/seventeen-people-charged-heroin-and-crack-cocaine-distribution-operation
Owner of Debt Collection Company Pleads Guilty to Corruptly Providing Benefits to Public OfficialRead the Press Release
CHICAGO — The former owner of a debt collection company pleaded guilty today to a federal criminal charge for corruptly agreeing to underwrite certain expenses for a special event hosted by the former Cook County Circuit Court Clerk.
DONALD DONAGHER, JR., 69, of Harrisburg, Pa., pleaded guilty to one count of corruptly giving something of value to reward a public official. U.S. District Judge John Z. Lee set sentencing for Jan. 21, 2022.
Donagher was a former owner and Chief Executive Officer of Harrisburg, Pa.-based PENN CREDIT CORPORATION, which in 2014 had a non-exclusive contract with Cook County to perform debt collection work. Donagher admitted in a plea agreement that in March 2014 he agreed to underwrite certain expenses for a Women’s History Month Celebration hosted by the Circuit Court of Cook County. The expenses included the payment of plaques that were presented to judges honored at the event. Donagher admitted that he underwrote the expenses in an effort to corruptly reward the Clerk of the Circuit Court for her perceived favorable treatment with respect to the awarding of debt collection work to Penn Credit.
Relatedly, the criminal investigation of Penn Credit was resolved today with a deferred prosecution agreement under which Penn Credit admitted to engaging in the Cook County corruption scheme at the direction of Donagher. Under the agreement, the government will defer prosecution of Penn Credit for two years and then seek to dismiss a conspiracy charge against it if the company abides by certain conditions, to include taking remedial measures to enhance its ethics and compliance programs and continuing to cooperate with the government with respect to any matter relating to this conduct. The deferred prosecution agreement, which was approved today by the U.S. District Court, also requires Penn Credit to pay a monetary penalty of $225,000.
Donagher’s plea agreement and Penn Credit’s deferred prosecution agreement were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Justin Campbell, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago; and Patrick M. Blanchard, Cook County Inspector General. The government is represented by Assistant U.S. Attorney Christopher V. Parente.
Orchard Park Gang Member Sentenced for Drug Distribution and Firearm OffensesRead the Press Release
BOSTON – A Boston man with ties to the Orchard Park housing development in Roxbury was sentenced to more than nine years in federal prison on Friday, Oct. 8, 2021 for drug trafficking and firearm offenses.
Lyndon Scott, 32, was sentenced by U.S. District Court Judge Patti B. Saris to 117 months in prison and three years of supervised release. On May 20, 2021, Scott pleaded guilty to possession with intent to distribute cocaine base, being a felon in possession of a firearm and ammunition and possession of a firearm during and in relation to a drug trafficking offense. Scott also received an 18-month concurrent sentence for violating his terms of federal supervised release.
In September 2019, investigators conducted a search of Scott’s vehicle and recovered approximately 17 grams of crack cocaine packaged for sale and a Taurus 9-millimeter pistol loaded with 13 rounds of 9-millimeter ammunition from a hidden compartment in the center console of his car. Additional cocaine and drug trafficking paraphernalia were recovered from Scott’s apartment.
Scott was previously convicted on two occasions for unlawful possession of a loaded firearm, making this conviction his third firearm-related offense. At the time of his arrest, Scott was on supervised release for a 2017 federal conviction for cocaine distribution near a housing development.
Acting United States Attorney Nathaniel R. Mendell; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Suffolk County Sheriff Steven W. Tompkins; and Boston Police Acting Commissioner Gregory Long made the announcement. Assistant U.S. Attorney Christopher Pohl of Mendell’s Narcotics and Money Laundering Unit prosecuted the case.
Omaha Man Sentenced to 77 Months on Firearms ChargesRead the Press Release
Acting United States Attorney Jan Sharp announced that Troy Murphy, 30, of Omaha, Nebraska was sentenced on October 12, 2021 in federal court for selling firearms to a felon and being a user of methamphetamine in possession of firearms. United States District Judge Brian C. Buescher sentenced Murphy to concurrent terms of 77 months’ imprisonment. There is no parole in the federal system. After his release from prison, Murphy will begin a three-year term of supervised release.
Murphy sold an individual, who he knew to be a felon, four firearms between July 13 and October 25, 2018. Murphy was arrested by Omaha Police and members of the FBI Safe Streets Task Force on January 2, 2020. He was in possession of two additional firearms, including a short shotgun with a sawed-off barrel, and a user quantity of methamphetamine.
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.
Ohio Man Sentenced to Prison for Heroin DistributionRead the Press Release
HUNTINGTON, W.Va. – Maurice Lavelle Miller Jr., 31, of Columbus, was sentenced today to seven months in federal prison for distribution of heroin.
According to court documents and statements made in court, Miller sold approximately 0.8 grams of heroin to a confidential informant on Davis Street in Huntington on February 25, 2019. The substance was confirmed by the West Virginia State Police Laboratory as containing heroin, fentanyl, and a synthetic cannabinoid.
Acting United States Attorney Lisa G. Johnson made the announcement and commended the investigative efforts of the Cabell County Sheriff’s Office and the FBI’s Southern West Virginia Transnational Organized Crime (TOC) West Task Force.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Ryan A. Keefe handled 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. 3:19-cr-00155.
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Nampa Man Pleads Guilty to Distribution of MethamphetamineRead the Press Release
BOISE – A Nampa man pleaded guilty to distribution of methamphetamine.
According to court records, Allen Eugene McLean, 20, of Nampa, sold another person methamphetamine on two different occasions. On June 23, 2020, McLean sold 4.5 grams of methamphetamine and on August 13, 2020, he sold 26.7 grams of methamphetamine. As part of the plea agreement, McLean also admitted that he sold another person fentanyl pills on three occasions. On January 27, 2021, he sold 10 compressed fentanyl pills; on February 2, 2021, he sold 20 compressed fentanyl pills; and on February 8, 2021, he sold 15 compressed fentanyl pills. During the transaction on January 27, 2021, he told the purchaser to be careful when ingesting the pills because the pills were “hot” and had caused seven or eight overdose deaths.
McLean is scheduled to be sentenced on January 10, 2022 and faces a statutory mandatory minimum sentence of at least five years and a maximum sentence of forty years in federal prison, a five million dollar fine, and at least four years of supervised release. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the cooperative efforts of the Drug Enforcement Administration and the Treasure Valley Metro Violent Crimes Task Force, which led to charges. The Task Force is comprised of federal, state, and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Ada County Sheriff’s Office; Boise Police Department; Caldwell Police Department; Canyon County Sheriff’s Office; Meridian Police Department; Nampa Police Department; and Idaho Department of Correction.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case was prosecuted by the Special Assistant U.S. Attorney hired by the Ada County Prosecuting Attorney’s Office with funds provided by the High Intensity Drug Trafficking Areas (HIDTA) program. HIDTA is part of the Office of National Drug Control Policy (ONDCP) created by Congress with the Anti-Drug Abuse Act of 1988. It provides assistance to federal, state, and local law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States. Idaho is part of the Oregon-Idaho HIDTA. The Idaho HIDTA is a collaboration of local, multi-jurisdictional law enforcement drug task forces, and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada, Canyon, Bannock, Kootenai, and Malheur Counties.
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Michigan Felon Sentenced to Prison for Illegal Possession of a Firearm Following a Deadly Shootout in MinneapolisRead the Press Release
MINNEAPOLIS – A Michigan man was sentenced today to 84 months in prison followed by two years of supervised release for possessing a firearm as a felon after he and two others were involved in a deadly shootout in downtown Minneapolis.
According to court documents, in September 2019, Marvin Lavell-Caine Lomax, 25, of Detroit, Michigan, and his associate engaged in a shootout during the early evening commute hours at the Hawthorne Bus Terminal in downtown Minneapolis. Surveillance video showed bystanders fleeing the area as Lomax and his associate exchanged gunfire with a third person. The third person was shot multiple times and later died as a result of his injuries. Lomax and his associate fled the area, threw their guns into a trash bin, and boarded a commuter bus back to Detroit.
Hours after the shooting, the firearms, a loaded .45-caliber semiautomatic pistol and a loaded .380-caliber semiautomatic pistol, were found in the trash bin by Minneapolis police officers. Both firearms had previously been reported stolen. Ballistics analysis linked the discarded shell casings found at the scene to the two recovered firearms. Additionally, Lomax’s DNA matched the DNA found on one of the .45-caliber shell casings recovered at the scene. Investigators searched Lomax’s social media accounts and found a video of him talking and laughing with his associate about the shooting incident.
In December 2019, Lomax was indicted by a federal grand jury and on June 3, 2021, Lomax pleaded guilty to one count of possessing a firearm as a felon.
Acting U.S. Attorney W. Anders Folk for the District of Minnesota made the announcement after U.S. District Judge Patrick J. Schiltz sentenced the defendant.
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 was the result of an investigation conducted by the Minneapolis Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case was prosecuted by Assistant U.S. Attorney Benjamin Bejar.
Miami Man Guilty of Child ExploitationRead the Press Release
Miami, Florida – Miami resident Michael Mendoza, 61, pled guilty last week in South Florida federal district court to receiving and possessing child pornography. He faces up to 20 years in prison on each of the counts.
According to case documents and statements made in court, law enforcement executed a federal search warrant at Mendoza’s home, where he lived with his wife and two adult children. Officers found a desktop computer and two external hard drives containing videos and photographs of child pornography and 11 compact discs with labels indicative of child pornography. Some of the over 300 videos and photographs of child pornography that Mendoza had showed toddlers being forced to perform sexual acts on adults. Forensic analysis of the media showed Mendoza has been viewing and storing child pornography for almost two decades. Mendoza admitted that he downloaded child pornography to his computer using a peer-to-peer sharing application and that he stored child pornography for later viewing.
U.S. District Judge Jose E. Martinez will sentence Mendoza on December 17, 2021 at 11:30 a.m. in Miami.
Juan Antonio Gonzalez, Acting U.S. Attorney for the Southern District of Florida, and Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HSI), Miami Field Office, announced the guilty plea.
HSI Miami investigated the case with assistance from Florida Department of Law Enforcement, Miami-Dade Police Department, Hialeah Police Department, and City of Miami Police Department.
Assistant U.S. Attorneys Yara Dodin and Quinshawna Landon are prosecuting this case. AUSA Peter Laserna is handling asset forfeiture.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about the Project Safe Childhood initiative and for information regarding Internet safety, please visit www.justice.gov/psc.
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 20-cr-20113.
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McKees Rocks Felon Sentenced to 3 Years for Illegally Possessing a FirearmRead the Press Release
PITTSBURGH - A former resident of McKees Rocks, PA, has been sentenced to 36 months of imprisonment on a charge of violating federal firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Tyrell Rankin, age 31, formerly of Washington Street.
In connection with the guilty plea, the court was advised that on August 6, 2020, a search warrant was executed on Rankin’s residence, and a firearm was seized. Rankin informed law enforcement officers that the firearm belonged to him. Rankin is prohibited from possessing a firearm due to a previous conviction.
Assistant United States Attorney Jonathan D. Lusty prosecuted this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Western Pennsylvania Fugitive Task Force, and the Pittsburgh Bureau of Police conducted the investigation leading to the Indictment in this case.
Laplace Man Sentenced for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LA – United States District Judge Mary Ann Vial Lemmon sentenced RICHARD GRAY, age 60, of LaPlace, Louisiana, on October 7, 2021 to 18 months in the Bureau of Prisons for violating the Federal Controlled Substances Act, Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), 846, 843(b), and 18 U.S.C. Section 2, announced U.S. Attorney Duane A. Evans.
According to the court records, in Count One, GRAY conspired to distribute and possess with the intent to distribute a quantity of a mixture or substance containing a quantity of cocaine hydrochloride. In Count Six, GRAY knowingly and intentionally used a telephone in committing, causing, and facilitating the commission of the violation in Count One. During the investigation, law enforcement learned GRAY transported cocaine hydrochloride from Texas to Louisiana and used a cellular phone to facilitate the transportation of the narcotics.
District Judge Lemmon sentenced GRAY to the 18 months imprisonment to be followed by three (3) years of supervised release as to Counts One and Six of the Indictment. Judge Lemmon also ordered that GRAY pay a $200 mandatory special assessment fee.
The case was investigated by the United States Drug Enforcement Administration and the Saint John the Baptist Sheriff’s Office. Assistant United States Attorney Bayonle Osundare prosecuted the matter.
Judge Sentences Milwaukee Man to 45 Years’ Imprisonment for Sex TraffickingRead the Press Release
Richard G. Frohling, Acting United States Attorney for the Eastern District of Wisconsin, announced that on October 4, 2021, Calvin C. Freeman, Jr. was sentenced to a term of 45 years’ imprisonment, followed by five years of supervised release after being convicted of 14 federal crimes, including sex trafficking by force, fraud, or coercion, interstate transportation for prostitution, interstate transportation of a minor for criminal sexual activity, possession of a firearm and ammunition by a felon, as well as obstruction and contempt of court.
In announcing the sentence, Chief United States District Judge Pamela Pepper recounted the decades of violence that Freeman inflicted on his victims. She cited many examples of his tactics, including incidents in which Freeman slammed one of his victims into a bathtub, put a cigarette out on a victim’s face, beat a victim with an iron, and forced a victim to continue walking the street looking for prostitution dates immediately after she had been violently raped and robbed. Judge Pepper also described Freeman’s disturbing pattern of beating his victims with a belt, noting that those beatings often left the imprint of Freeman’s designer belt buckle on their bodies. She noted that while the violence itself was “ugly” and “vicious,” the fact that Freeman used this violence to compel women to engage in commerce sex acts for his profit made it all the more egregious.
Chief Judge Pepper rejected Freeman’s arguments that his conduct was the result of his upbringing or that his victims had voluntarily entered the lifestyle and thus knew what they were signing up for. She described Freeman’s conduct as “the most heinous” example of sex trafficking she had ever seen in her career.
“The 45-year sentence reflects Mr. Freeman’s relentless criminal activity and his willingness to abuse and dehumanize others for his own financial benefit,” stated Acting U.S. Attorney Frohling. “Mr. Freeman’s conviction and sentence were the direct result of the courage and resilience shown by his victims in agreeing to testify to the abuse they suffered at his hands. Today’s sentence stems from their resolve and from the extraordinary efforts of law enforcement and the prosecution team in this case.”
“Let this 45 year prison sentence send a strong message to those who prey on victims of sex trafficking using violence and manipulation,” said Special Agent in Charge Hughes. “The FBI will utilize all resources available to bring violent offenders to justice, and provide help for victims through our Victim Assistance Program.”
Special Agent in Charge Kathy A. Enstrom stated, “The FDIC OIG’s investigation of the financial crimes in this case led to the discovery of the human trafficking ring in the Milwaukee area. Due to the diligence of the investigative team and the courage of the witnesses, Mr. Freeman was brought to justice. We appreciate the cooperation of our law enforcement partners in the investigation and prosecution of this case.”
The Federal Bureau of Investigation, the Federal Deposit Insurance Corporation– Office of Inspector General (FDIC-OIG), and the Milwaukee Police Department investigated the case with the assistance of the Las Vegas Metropolitan Police Department, the Philadelphia Police Department, and the Wisconsin Department of Justice Division of Criminal Investigation. Assistant United States Attorneys Erica J. Lounsberry and Julie F. Stewart prosecuted the case.
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Judge Sentences Fentanyl-Dealing Pittsburgh Felon with Firearms to 30 YearsRead the Press Release
PITTSBURGH - A resident of Pittsburgh, PA, has been sentenced in federal court to a total of 30 years’ imprisonment on his conviction of federal drug and gun offenses and money laundering charges, Acting United States Attorney Stephen R. Kaufman announced today.
Senior United States District Judge David S. Cercone imposed the sentence on Lynell Guyton, age 32, formerly of Lakewood Street, Pittsburgh, PA.
On January 10, 2020, the defendant was found guilty by jury verdict of all nine counts of a Third Superseding Indictment, which charged Guyton with conspiracy to distribute more than 100 grams of a fentanyl analogue, possession with intent to distribute 100 grams or more of a fentanyl analogue, two counts of possession with intent to distribute a quantity of a fentanyl analogue, attempted possession with intent to distribute 10 grams or more of a fentanyl analogue, two counts of possession of firearms and ammunition by a convicted felon, and two counts of money laundering.
The evidence presented to the jury established that from May of 2017 through August of 2017, Guyton conspired to distribute and possessed with intent to distribute various analogues of fentanyl, which he obtained through suppliers in China and paid for via wire transfers to China. The evidence also established that Guyton possessed numerous firearms and ammunition, which he knew he was prohibited from possessing because of his prior felony convictions. On August 9, 2017, law enforcement officers executing a search warrant at Guyton’s stash house had to be transported to UPMC Mercy Hospital after a table on which Guyton and his conspirators were processing cyclopropyl fentanyl, an analogue of fentanyl, had been tipped over, causing some officers to experience dizziness and numbness.
Prior to imposing sentence, Senior Judge Cercone stated that the sentence was sufficient but not greater than necessary to achieve the goals of sentencing.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended U.S. Immigration and Customs Enforcement’s (ICE)/ Homeland Security Investigations (HSI), the United States Postal Inspection Service, the Pennsylvania State Police and the Pittsburgh Bureau of Police, including the Pittsburgh Police SWAT Team, for the investigation leading to the successful prosecution of Guyton.
Jessica D. Aber Sworn in as U.S. Attorney for the Eastern District of VirginiaRead the Press Release
ALEXANDRIA, Va. – Jessica D. Aber was officially sworn in today as the 63rd United States Attorney for the Eastern District of Virginia by Chief United States District Judge Mark S. Davis and United States District Judge M. Hannah Lauck at the federal courthouse in Norfolk.
“I am grateful to the President for my nomination and to Senators Warner and Kaine for their recommendation and endorsement,” said Aber. “After serving as an Assistant U.S. Attorney for more than a decade, I am honored to lead this tremendous district with its dedicated public servants and to help preserve public safety with our law enforcement and community partners. I look forward to working in support of the mission of the Department of Justice and toward the realization of fair and equal justice for all.”
U.S. Attorney Aber was nominated by President Joseph R. Biden, Jr. on August 10 and unanimously confirmed by the Senate on October 5 for the position of United States Attorney for the Eastern District of Virginia. President Biden signed Aber’s commission on October 7.
Aber began her service to EDVA in 2009 as an Assistant U.S. Attorney, handling a variety of financial fraud, public corruption, violent crime, and child exploitation cases. She has served as the EDVA representative to the Richmond Division’s drug court for her entire tenure. From 2015 to 2016, she served on a detail assignment as counsel to the Assistant Attorney General for the Criminal Division of the Department of Justice. Since 2016, Aber has served as the Deputy Chief of the Criminal Division for EDVA.
Prior to joining the Department of Justice, Aber was an associate at McGuireWoods LLP from 2007 to 2008. She served as a law clerk for then-Magistrate Judge M. Hannah Lauck on the United States District Court for the Eastern District of Virginia from 2006 to 2007.
Aber received her J.D. from William & Mary Law School in 2006 and her B.A., magna cum laude, from the University of Richmond in 2003.
As U.S. Attorney, Aber supervises the prosecution of all federal crimes and the litigation of all civil matters in which the United States has an interest. She leads a staff of approximately 300 prosecutors, civil litigators, and support personnel across four Divisions located in Alexandria, Richmond, Norfolk, and Newport News. The district serves over six million residents.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia.
Inmate admits to indecent exposure charge, sentencedRead the Press Release
CLARKSBURG, WEST VIRGINIA – Joseph Williams, an inmate at U.S. Penitentiary Hazelton in Bruceton Mills, West Virginia, has admitted to an indecent exposure charge and was sentenced today to four additional months of incarceration, United States Attorney William J. Ihlenfeld, II announced.
Williams, 63, pleaded guilty today to one count of “Indecent Exposure.” Williams admitted to exposing himself to another at USP Hazleton in January 2020 in Preston County.
Assistant U.S. Attorney Christopher L. Bauer prosecuted the case on behalf of the government. The Bureau of Prisons investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Independence Man Pleads Guilty to Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – An Independence, Missouri, man pleaded guilty in federal court today to his role in a conspiracy to distribute more than 250 kilograms of methamphetamine in the Kansas City metropolitan area.
Noah Frazier, 39, pleaded guilty before U.S. District Judge Gary A. Fenner to one count of conspiracy to distributed methamphetamine and one count of being a felon in possession of a firearm.
By pleading guilty today, Frazier admitted that he distributed at least five kilograms of methamphetamine to individuals throughout the Kansas City metropolitan area from 2018 until his arrest in February 2019. Frazier and co-conspirators distributed methamphetamine out of his residence in Independence.
Law enforcement officers executed a search warrant at Frazier’s residence on Feb. 27, 2019. Officers seized gun parts, body armor, a Savage .22-caliber rifle, a stolen Colt .45-caliber handgun with an extended magazine, an American Bulldog revolver, an unknown revolver, more than 200 rounds of ammunition, magazines, and drug paraphernalia.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Frazier has a prior felony conviction for distribution of a controlled substance.
Frazier is the third defendant in this case to plead guilty.
Co-defendant Charles E. Wilhelm, 33, of Independence, pleaded guilty on April 6, 2021, to his role in the conspiracy to distribute methamphetamine, as well as to possessing Oxycodone with the intent to distribute, possessing a firearm in furtherance of a drug-trafficking crime, and being a felon in possession of a firearm. Wilhelm admitted that he took part in the distribution of more than 250 kilograms of methamphetamine throughout the Kansas City metropolitan area from January 2018 until his arrest in June 2019. Wilhelm led a distribution network that involved more than a dozen individuals who distributed substantial amounts of methamphetamine.
Co-defendant Sabrina M. Keller, 24, of Independence, pleaded guilty on Sept. 2, 2021, to her role in the drug-trafficking conspiracy and to one count of being an unlawful user of a controlled substance in possession of a firearm. Keller admitted that she distributed methamphetamine in half-pound quantities.
Under federal statutes, Frazier is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 50 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Matt Moeder. It was investigated by the Independence, Mo., Police Department, the FBI, and the Kansas City, Mo., Police Department.
Huntington Man Pleads Guilty to Federal Firearms OffenseRead the Press Release
HUNTINGTON, W.Va. – A Huntington felon who was caught with guns earlier this year pleaded guilty today in federal court. Kevlin Jerrod Jackson, 41, entered a guilty plea to prohibited possession of firearms by a convicted felon.
According to court documents and statements made in court, Jackson admitted that on May 12, 2021, investigators executed a search warrant at his residence located on 7th Street in Huntington. Jackson, who was present just prior to the search, was arrested after investigators seized a .45 caliber pistol and a 9mm pistol from his residence. Jackson later admitted that he possessed the firearms, that he was a convicted felon, and that he used another individual to purchase the firearms on his behalf. Jackson was convicted of distributing cocaine in 2011 in the United States District Court for the Southern District of West Virginia and was prohibited from possessing firearms by virtue of his conviction.
Jackson faces up to 10 years in federal prison when he is sentenced on January 18, 2022.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Huntington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams 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. 3:21-cr-00091.
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Havre man admits trafficking methamphetamine, fentanyl and illegal possession of firearmRead the Press Release
GREAT FALLS – A Havre man admitted to drug trafficking and firearms crimes today after law enforcement found methamphetamine, fentanyl, a gun and a large amount of cash in his Havre motel room, said Acting U.S. Attorney Leif M. Johnson.
Brandon Wayne Glover, 38, pleaded guilty to possession with intent to distribute controlled substances and to felon in possession of a firearm. Glover faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release on the drug crime.
Chief U.S. District Judge Brian M. Morris presided. Glover was detained pending further proceedings. Sentencing was set for Feb. 3, 2022.
The government alleged in court documents that in 2014, Glover was convicted in federal court of possession with intent to distribute meth. In November 2020, law enforcement received information that Glover was distributing meth in Havre, and an informant bought about a half-ounce of meth from Glover at a Havre casino. In December 2020, officers coordinated a stop of Glover’s vehicle and arrested Glover on a warrant based on supervised release violations in his prior federal meth trafficking case. Agents then went to the motel where Glover had been staying, secured his room and applied for a search warrant. In the meantime, agents received recorded jail calls Glover had with his mother after his arrest. In the calls, Glover asked his mother for help retrieving items from the room where he had been staying and specifically asked her to look under the bed. Glover’s mother went to the motel room and was turned away. Agents executed a search warrant for the motel room and found 420 grams, or almost a pound, of meth, a firearm, drug paraphernalia, and fentanyl pills. Agents also found about $12,100 in cash under the bed.
Assistant U.S. Attorney Ethan R. Plaut is prosecuting the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Havre Police Department and the Tri-Agency Task Force.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Four People Sentenced in Drug Trafficking RingRead the Press Release
KANSAS CITY, KAN. – Four people received prison sentences following convictions in relation to a drug trafficking ring that operated for years in the Kansas City metropolitan area.
According to court documents, the Jackson County Drug Task Force began an undercover operation in 2016 surrounding a drug trafficking ring. The Drug Enforcement Administration (DEA) later partnered in the investigation which included controlled purchases of confirmed methamphetamine and surveillance. In 2019, law enforcement arrested Juan Ceniceros, 28, of Kansas City, Missouri, and several of co-conspirators including Ryan Goodall, 25, Julio Rodriguez, 57, and Donald Brown, 51.
Juan Ceniceros was sentenced to 144 months in prison for conspiracy to possess with intent to distribute and to distribute 50 grams or more of methamphetamine. He also pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime.
Ryan Goodall was sentenced to 124 months in prison for conspiracy to possess with intent to distribute and distribute of 50 grams or more of methamphetamine. Goodall also pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime.
Julio Rodriguez of Glendale, Arizona, was sentenced to 70 months in prison for possession with the intent to distribute a mixture and substance containing 50 grams or more of methamphetamine.
Donald Brown of Kansas City, Missouri, was sentenced to 81 months in prison for conspiracy to possess with intent to distribute and distribution of methamphetamine.
“The fact that this investigation spanned several years is a testament to the patience and steadfast dedication of local and federal law enforcement agencies. Their commitment to staying with the investigation as long as necessary ensured appropriate convictions for this illegal behavior which harms our communities,” said Acting U.S. Attorney Duston Slinkard.
The Jackson County Drug Task Force, the Drug Enforcement Administration (DEA), and the Federal Bureau of Investigation (FBI) investigated the case. The United States Marshals Service assisted with identification and apprehension in this matter.
Assistant U.S. Attorney Sheri Catania prosecuted the case.
OCDETF STRIKE FORCE CASES
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The Kansas City Metro Strike Force’s mission also includes disrupting and dismantling major drug trafficking organizations and transnational drug cartels, with emphasis on groups engaged in illicit activities involving methamphetamine and firearms that present a threat to public safety in the Kansas City metropolitan area.
###Founders of Crypto ICO Plead Guilty to Tax Evasion After Raising $24 Million from InvestorsRead the Press Release
The owners of a cryptocurrency company have pleaded guilty to tax evasion, announced Acting U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Bitqyck founders Bruce Bise, 60, and Samuel Mendez, 65, were charged with tax evasion in August. Mr. Bise pleaded guilty on Sept. 9; Mr. Mendez pleaded guilty this morning.
According to plea papers, Mr. Bise and Mr. Mendez admitted that Bitqyck raised approximately $24 million from more than 13,000 investors. Instead of fulfilling their promises to these investors, the defendants used Bitqyck funds on personal expenses, including casino trips, cars, luxury home furnishings, art, and rent.
“Transacting in virtual currencies does not exempt businesspeople from paying income taxes,” said Acting U.S. Attorney Chad Meacham. “These crypto-savvy defendants exploited an emerging technology, lying to their investors, pocketing the proceeds, and concealing the income from the IRS. The Department of Justice is committed to ensuring that every taxpayer pays his or her fair share – and to protecting the crypto space from bad actors.”
“As digital currencies continue to emerge as an investment option for taxpayers, we must continue to increase the pressure on anyone who tries to take advantage of their investors and taxpayers through fraud and tax evasion. The great work from both the Dallas and Los Angeles IRS-CI field offices firmly puts that pressure on these two cybercriminals and serves as a warning to others,” saidChristopher J. Altemus Jr., Special Agent in Charge of IRS-CI's Dallas Field Office.
“Mr. Bise and Mr. Mendez exploited the growing appeal of digital currency and defrauded thousands of victim-investors out of millions of dollars that they used to pay their personal expenses, rent, gambling activities, and purchases of vehicles and art,” said Ryan L. Korner, Special Agent in Charge of IRS -CI's Los Angeles Field Office. “These fraudsters required investors to produce cash, and then converted the fraud proceeds to cryptocurrency to purposefully circumvent financial reporting requirements. IRS Criminal Investigation is committed to protecting Americans and pursuing financial schemes even into the crypto world. ”
In marketing materials, the pair promoted the company’s cryptocurrency, Bitqy, as a way for “those individuals who missed out on Bitcoin” to get rich. They held their initial coin offering, or ICO, in 2016. (An ICO is a process in which a company attempts to raise capital by selling a new cryptocurrency, which investors may purchase in the hope that the value of the cryptocurrency will increase.) In an attempt to legitimize Bitqy tokens – and to avoid scrutiny over selling unregistered securities – the company characterized the cryptocurrency as an “earned gift” that rewarded consumers for certain internet purchases.
A white paper posted on the Bitqyck website promised investors that each Bitqy token came with 1/10th of a share of Bitqyck common stock. Mr. Bise and Mr. Mendez admitted, however, that they never actually distributed shares to token holders nor embedded the shares within the Ethereum Smart Contract. The only shares of common stock Bitqyck issued were to Bise and Mendez, who collectively owned 100% of Bitqyck’s common stock.
About nine months after launching Bitqy, Mr. Bise and Mr. Mendez began marketing another token, BitqyM, arbitrarily priced at $1. They claimed buying the token allowed investors to join “Bitcoin mining operations,” by paying to power a Bitqyck Bitcoin mining facility in Washington state. In reality, Mr. Bise and Mr. Mendez admitted in plea papers, no such mining facility ever existed. Unbeknownst to investors, the defendants contracted with an overseas third-party company in an attempt to mine the Bitcoin they’d promised to investors.
(Bitcoin mining involves solving complex mathematical problems in order to verify transactions on a public ledger, known as the Blockchain. The problems require computing power, which in turn requires a significant amount of electricity.)
Mr. Bise and Mr. Mendez profited from Bitqyck by diverting income from the company for their personal use at their shareholders’ expense. From 2016 to 2018, Mr. Bise and Mr. Mendez raked in roughly $4.68 million and $4.48 million, respectively.
Taxpayers transacting in virtual currency are required by law to report those transactions on their tax returns. For 2016 and 2017, Mr. Bise underreported his income to the IRS, resulting in a tax loss of $371,278. For that same period, Mr. Mendez also underreported his income to the IRS, resulting in a tax loss of $311,155. In 2018, Bitqyck failed to file any corporate tax returns at all despite netting more than $3.5 million from investors. The total tax loss joint and severally to the United States government between Mr. Bise and Mr. Mendez is more than $1.6 million dollars.
Both men now face up to five years in federal prison.
The defendants’ guilty pleas come on the heels of a civil settlement with the Securities & Exchange Commission (SEC), in which Bitqyck agreed to pay an $8.3 million penalty to resolve claims that it defrauded investors and operated an unregistered digital asset exchange. As part of that settlement, Mr. Bise and Mr. Mendez agreed to pay disgorgement and penalties of $890,254 and $850,022, respectively.
The Internal Revenue Services’ Criminal Investigations Divisions in Dallas and Los Angeles conducted the investigation. Assistant U.S. Attorney Sid Mody is prosecuting the case.
Former University Volleyball Coach Involved in College Admissions Case Enters into Deferred Prosecution AgreementRead the Press Release
BOSTON – The former Wake Forest University women’s volleyball coach has entered into a deferred prosecution agreement (DPA) relating to his involvement in the college admission scheme.
William Ferguson, 51, of Winston-Salem, N.C., has entered into a DPA with the U.S. Attorney’s Office, which was accepted by the District Court. If, after a period of two years and payment of a $50,000 fine, Ferguson complies with the DPA, the government will move to dismiss the pending charge.
According to the DPA, Ferguson accepted responsibility for his conduct as outlined in the Statement of Facts filed with the court. According to the Statement of Facts, in or about June 2016, Ferguson was hired to be the head coach of women’s volleyball at Wake Forest. In or about February 2017, Ferguson agreed with William “Rick” Singer to secure admission to Wake Forest for a student by designating the student as a recruit to the women’s volleyball team in exchange for future purported donations that would inure to Ferguson’s personal benefit. The student had previously been placed on the wait list for admission to the university.
On or about March 24, 2017, Ferguson designated the student as a volleyball recruit, but did not disclose to the Wake Forest admissions office that he did so in exchange for future purported donations that would inure to Ferguson’s personal benefit.
In March 2019, Ferguson was charged and arrested in connection with this case. In September 2020, Ferguson was charged in a second superseding indictment with conspiracy to commit mail and wire fraud and honest services mail and wire fraud.
Case information, including the status of each defendant, is available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Mark Deckett, Resident Agent in Charge of the Department of Education, Office of Inspector General made the announcement today. Assistant U.S. Attorneys Leslie A. Wright, Kristen A. Kearney and Kriss Basil of Mendell’s Securities, Financial & Cyber Fraud Unit are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Member of Connecticut Latin Kings Chapter Pleads Guilty to Racketeering ConspiracyRead the Press Release
BOSTON – A former member of the Connecticut Chapter of the Massachusetts Almighty Latin King and Queen Nation (Latin Kings) pleaded guilty today to racketeering charges.
Esther Ortiz, a/k/a “Queen India,” 50, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Jan. 19, 2022.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
Ortiz admitted to her membership in the Latin Kings and the Latin Kings’ Regional Crown Council. As Regional Crown Council member, Ortiz advised leadership, heard evidence concerning violations of the manifesto and determined punishment for members who violated the rules of the Latin Kings. One such trial, which took place in March 2019, was captured on video. This trial involved complaints against Angel Roldan, a/k/a “King Big A,” the former second-in-command, or Cacique, of the Latin Kings in Massachusetts, who had reportedly robbed fellow gang members of drugs and failed to repay drug debts owed to the leader of the New Bedford Chapter.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Ortiz is the 52nd defendant to plead guilty in the case. Roldan pleaded guilty and was sentenced in July 2021 to seven years in prison.
The RICO conspiracy charge provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorney Philip A. Mallard of Mendell’s Criminal Division is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.