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Tuesday 12 October 2021
Former Medical Office Manager Sentenced to 27 Months for Embezzling Money from PracticeRead the Press Release
Sean P. Costello, the United States Attorney for the Southern District of Alabama, announces that Chief Judge Jeffery Beaverstock has sentenced defendant Betty Fables Harrison to 27 months in prison and ordered her to pay $549,000.00 in restitution.
In April 2021, Harrison pleaded guilty to an Information charging her with wire fraud. As part of her plea agreement with the United States, Harrison admitted that she worked as a business manager and administrator for two related medical practices in Mobile County — Bay Area Community Medicine and Independent Practice Management — from 2005 through October 2017. In this capacity, Harrison handled payroll and had access to multiple business bank accounts.
Starting in 2006, Harrison began using business funds for unauthorized personal expenditures, such as horse saddles, equine vet bills, musical instruments, furniture, and vacations. These unauthorized purchases continued for eleven years until Harrison’s termination in October 2017. Also during this time, Harrison fraudulently paid herself bonuses and consulting fees as well as increased her salary without authorization. This resulted in a substantial financial loss to both medical practices.
During the sentencing hearing, Chief Judge Beaverstock noted that Harrison’s crimes went on for years and were a serious breach of trust. Accordingly, Chief Judge Beaverstock agreed with the United States’ sentencing recommendation and sentenced Harrison to 27 months in federal prison. Harrison was also ordered to pay $549,000.00 in restitution to Dr. George Sutton, the owner of both medical practices.
This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Christopher Bodnar. A related state criminal case against Harrison is pending in Mobile County Circuit Court.
Former Internal Revenue Service Agent Sentenced to 30 Months in Prison for Identity Theft and Making False Statements During Security Background InvestigationRead the Press Release
Earlier today, in federal court in Brooklyn, Bryan Cho, a former Special Agent with the Internal Revenue Service Criminal Investigation (“IRS-CI”), was sentenced by United States District Judge Ann M. Donnelly to 30 months’ imprisonment for wire fraud and aggravated identity theft in connection with a scheme to create false identification documents and passports using the stolen identity of the former subject of an IRS-CI investigation. Additionally, the defendant forfeited $394,374.63 as part of the plea agreement. Cho pleaded guilty to the charges in June 2021. Cho’s employment was terminated since his arrest.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, announced the sentence.
“The defendant’s fraud and corruption extended to creating an entirely false identity by stealing information he obtained while conducting an investigation in his official capacity as an IRS Special Agent,” stated Acting United State Attorney Kasulis. “Today’s sentence demonstrates that this Office will vigorously prosecute and hold accountable law enforcement officials who betray the public trust and violate their sworn duty to uphold the law.” Ms. Kasulis thanked the Federal Bureau of Investigation, New York Field Office, and the Treasury Inspector General for Tax Administration for their outstanding work on the case.
Cho stole the identity of a former subject in one of his investigations and used it to create fake identification documents in the person’s name. The false documents included purported identification cards and passports from the Republic of Marshall Island, the Philippines and the Republic of Guinea Bissau. Some of the documents, including identification cards from the Philippines and the Republic of Guinea Bissau, featured Cho’s picture. One false identification document was used by Cho to register a corporation overseas in the name of the subject. Cho then lied during an official background investigation when he failed to disclose this conduct and denied having any aliases or foreign interests.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Elizabeth Geddes and Turner Buford are in charge of the prosecution.
The Defendant:
BRYAN CHO (also known as “Yong Hee Cho”)
Age: 50
New York, New YorkE.D.N.Y. Docket No. 21-CR-40 (AMD)
Former Chief Executive Officer of Petrochemical Company Sentenced to 20 Months in Prison for Foreign Bribery SchemeRead the Press Release
A Brazilian man who previously served as the chief executive officer (CEO) of Braskem S.A. (Braskem), a publicly-traded Brazilian petrochemical company, was sentenced today in the Eastern District of New York to 20 months in prison for a scheme to divert hundreds of millions of dollars from Braskem into a secret slush fund and to pay bribes to government officials, political parties, and others in Brazil.
Jose Carlos Grubisich, 64, of Brazil, pleaded guilty on April 15 to one count of conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA) and one count of conspiracy to violate the books and records provision of the FCPA and to fail to accurately certify Braskem’s financial reports. According to court documents, between approximately 2002 and 2014, Grubisich, who served as the CEO and a member of the board of directors of Braskem — as well as in various capacities for Braskem’s parent company, Odebrecht S.A. (Odebrecht) — engaged in a scheme to bribe Brazilian government officials. As part of the scheme, Grubisich and his co-conspirators diverted approximately $250 million from Braskem into a secret slush fund, which Grubisich and others generated through fraudulent contracts and offshore shell companies secretly controlled by Braskem. In addition to his prison sentence, Grubisich was ordered to forfeit $2.2 million and pay a $1 million fine.
In December 2016, Braskem and Odebrecht each pleaded guilty in the Eastern District of New York to conspiracy to violate the anti-bribery provisions of the FCPA. Braskem also resolved related civil proceedings with the Securities and Exchange Commission (SEC) on the same day.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, Acting U.S. Attorney Jacquelyn M. Kasulis for the Eastern District of New York, and Assistant Director-in-Charge Michael J. Driscoll of the FBI’s New York Field Office made the announcement.
The FBI’s International Corruption squad in New York investigated the case. The Criminal Division’s Office of International Affairs provided substantial assistance. The department also expresses its appreciation for the assistance provided by the SEC’s Division of Enforcement, Ministério Público Federal and the Departamento de Polícia Federal in Brazil, the Office of the Attorney General and the Federal Office of Justice in Switzerland, and the governments of Portugal, Andorra, the United Kingdom, and Panama.
Acting Co-Principal Deputy Chief Lorinda Laryea and Trial Attorney Leila Babaeva of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Julia Nestor and Alixandra Smith of the Eastern District of New York prosecuted the case. Assistant U.S. Attorney Laura Mantell of the Asset Recovery Section of the Office’s Criminal Division is handling related forfeiture matters.
Former CEO of Braskem Sentenced to 20 Months in Prison for Foreign Bribery and Securities Law ViolationsRead the Press Release
BROOKLYN, NY – Earlier today, in federal court in Brooklyn, Jose Carlos Grubisich, a Brazilian national and the former Chief Executive Officer of Braskem S.A. (Braskem), a publicly traded Brazilian petrochemical company, was sentenced by United States District Judge Raymond J. Dearie to 20 months in prison for conspiring to divert hundreds of millions of dollars from Braskem into a secret slush fund and to pay bribes to government officials, political parties and others in Brazil to obtain and retain business. In addition, the Court imposed a $1 million fine and Grubisich was ordered to pay $2.2 million in forfeiture.
On April 15, 2021, Grubisich pleaded guilty to one count of conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA) and one count of conspiracy to violate the books and records provision of the FCPA and to fail to accurately certify Braskem’s financial reports.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, Kenneth A. Polite, Jr., Assistant Attorney General of the Justice Department’s Criminal Division, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
As set forth in court filings and at today’s proceedings, between approximately 2002 and 2014, Grubisich, who served as the CEO and a member of the board of directors of Braskem—as well as in various capacities for Braskem’s parent company, Odebrecht S.A. (Odebrecht)—engaged in a scheme to bribe Brazilian government officials in violation of the FCPA. As part of the scheme, Grubisich and his co-conspirators diverted approximately $250 million from Braskem into a secret slush fund, which Grubisich and others generated through fraudulent contracts and offshore shell companies secretly controlled by Braskem.
In December 2016, Braskem and Odebrecht each pleaded guilty in the Eastern District of New York to separate one-count criminal informations charging them with conspiracy to violate the anti-bribery provisions of the FCPA. Braskem also resolved related civil proceedings with the U.S. Securities and Exchange Commission (SEC) on the same day.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant U.S. Attorneys Julia Nestor and Alixandra Smith of the Eastern District of New York are in charge of the prosecution with Co-Principal Deputy Chief Lorinda Laryea and Trial Attorney Leila Babaeva of the Criminal Division’s Fraud Section. Assistant U.S. Attorney Laura D. Mantell of the Asset Recovery Section of the Office’s Criminal Division is handling forfeiture matters. The FBI’s International Corruption squad in New York is investigating the case.
The FBI’s International Corruption squad in New York investigated the case. The Criminal Division’s Office of International Affairs provided substantial assistance. The department also expresses its appreciation for the assistance provided by the SEC’s Division of Enforcement, Ministério Público Federal and the Departamento de Polícia Federal in Brazil, the Office of the Attorney General and the Federal Office of Justice in Switzerland, and the governments of Portugal, Andorra, the United Kingdom, and Panama.
The Defendant
JOSE CARLOS GRUBISICH
Age: 64
Sao Paulo, BrazilE.D.N.Y. Docket No. 19-CR-102 (RJD)
Former Buckley, Washington resident convicted of enticement of a minorRead the Press Release
Seattle – A 34-year-old former resident of Buckley, Washington, was convicted late Friday, October 8, 2021, of attempted enticement of a minor, announced U.S. Attorney Nicholas W. Brown. Taylor J. Matson was arrested in February 2019, following an undercover investigation by the Seattle Police Department Internet Crimes Against Children (ICAC) task force. The jury deliberated about three hours following a three-day trial. U.S. District Judge James L. Robart scheduled sentencing for January 25, 2022.
According to records filed in the case and testimony at trial, Matson responded to an advertisement posted on the internet ostensibly from the mother of three young children. The ad used terms to imply the children would be made available for sex with adults. The advertisement was actually posted by an undercover detective. Matson made clear, via his communication both online and via text message, that he wanted to sexually assault the fictitious 12-year-old girl. Matson met with the undercover detective at a bar to further the plan. He fulfilled various requirements posed by the detective, such as obtaining sexually transmitted disease (STD) testing, and bringing condoms to the scheduled meet. On February 6, 2019, Matson went to a hotel in south Seattle where he believed he would have sex with the child. He was arrested when he entered the hotel room.
Enticement of a minor is punishable by a mandatory minimum 10 years in prison and up to life in prison. Judge Robart will determine the appropriate sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the Seattle Police Department and the FBI.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The case was prosecuted by Assistant United States Attorney Cecelia Gregson and Special Assistant United States Attorney Laura Harmon. Ms. Harmon is a King County Deputy Prosecutor specially designated to prosecute child exploitation cases in federal court.
Former Bookkeeper Sentenced to 63 Months in Prison for FraudRead the Press Release
BENTON, Ill. – Paula R. Hise, 55, of Shawneetown, Illinois, was sentenced yesterday in United
States District Court in Benton to 63 months in prison for defrauding her former employer of over
$1,500,000.00, announced Steven D. Weinhoeft, United States Attorney for the Southern District of
Illinois. Hise had previously pled guilty on April 19, 2021 to an Indictment charging her with
two counts of wire fraud.Information introduced in support of the guilty plea and sentence showed that between 2007 and
2017, Hise used her trusted position as a bookkeeper for her employer to steal funds from her
employer by obtaining an unauthorized credit card, using that credit card for personal purchases,
and then paying the balance of the credit card using her employer’s business checking account. Hise
concealed her crime by creating false entries in the business’ account ledgers, creating false
accounting reports, and providing false information to her employer.“The FBI is committed to investigating those who commit financial fraud in order to
protect American citizens and businesses,” said Special Agent in Charge David Nanz. “This sentence
holds Hise accountable for the damage she caused and sends a message that fraud is a serious crime
with serious consequences.”In addition to the 63-month term of imprisonment, Hise was also ordered to pay the United States
$200 in special assessments, and to pay a total of $1,550,379.14 in restitution to
her former employer, less any amounts received from a related civil suit. Hise was also placed
on a 3-year term of supervised release to follow her incarceration.This case was investigated by the Federal Bureau of Investigation – Springfield Division.
Assistant United States Attorney Casey E. A. Bloodworth prosecuted the case.
Former Bath County Deputy Sheriff Pleads Guilty to the Production of Child PornographyRead the Press Release
LEXINGTON, Ky. – A Morehead, Ky., man, and former Bath County Deputy Sheriff, Joshua Preece, 40, pleaded guilty on Tuesday, before U.S. District Judge Karen Caldwell to the enticing a minor victim to engage in sexually explicit conduct for the purpose of producing child pornography.
According to Preece’s plea agreement, on November 5, 2018, he admitted to answering a call about a minor victim who was acting out of control at her residence and transporting the victim to a remote area in Bath County. At the remote location, Preece admitted to sexually assaulting the victim and later asking for photos via Snapchat. When reviewing Preece’s phone, law enforcement found multiple sexually explicit images.
Preece was indicted in April 2021.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Robert Holman, Special Agent in Charge, United States Secret Service; and Colonel Phillip Burnett, Commissioner, Kentucky State Police; jointly announced the guilty plea.
The investigation was conducted by U.S. Secret Service and KSP. The United States was represented by Assistant U.S. Attorney David Marye.
Preece is scheduled to be sentenced on February 1, 2022. He faces a minimum of 15 years and not more than 30 years in prison, a fine of not more than $250,000, and a term of supervised release of not less than five years and up to life. However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Fayette County Man Sentenced to 262 Months for Armed Cocaine TraffickingRead the Press Release
LEXINGTON, Ky.— A Lexington, Ky., man, Jymie S. Salahuddin, 53, was sentenced to 262 months in federal prison on Tuesday, by Senior U.S. District Judge Joseph Hood, after pleading guilty to possession with intent to distribute cocaine and possession of firearms in furtherance of drug trafficking.
According to Salahuddin’s plea agreement, on September 19, 2020, while serving a parole violation warrant, law enforcement stopped Salahuddin’s vehicle and found him in possession of 79.42 grams of cocaine and a large amount of currency. A search of his vehicle also revealed a .40 pistol and a .380 pistol, along with additional currency. Salahuddin admitted that he possessed the cocaine with the intent to distribute it, and that he possessed the firearms in furtherance of his drug trafficking.
Salahuddin pleaded guilty in July 2021.
Under federal law, Salahuddin must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for six years.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; and Chief Lawrence Weathers, Police Chief, Lexington Police Department, announced the sentence.
The investigation was conducted by ATF and the Lexington Police Department. The United States was represented by Assistant U.S. Attorney Francisco Villalobos
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, Acting U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Father and daughter who sold stolen retail products online sentencedRead the Press Release
ATLANTA - Robert Whitley, and his daughter Noni Whitley, have been sentenced to federal prison for selling millions of dollars of stolen retail products through their online businesses, Closeout Express and Essentials Daily Discounts.
“These crimes impact not only the retailers, but every consumer,” said Acting U.S. Attorney Kurt R. Erskine. “Organized retail crime and other massive frauds have become more common through online platforms. We and our law enforcement partners will continue to seek out and prosecute these criminal enterprises.”
“The Whitley’s are now paying the price for inflicting financial harm to legitimate small businesses and consumers affected by those businesses losses,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI and our law enforcement partners are committed to working together to protect consumers and businesses from these types of crimes.”
“Postal Inspectors will continue to vigorously pursue individuals that are driven by their own insatiable greed and also demonstrate a blatant disregard for the economic impact that can occur,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “This sentence is the culmination of a successful joint investigative effort to dismantle an ongoing retail crime ring and continue to ensure the integrity of the mail system.”
According to Acting U.S. Attorney Erskine, the charges and other information presented in court: Between approximately January 2011 and November 2019, Robert and Noni Whitley operated an organized retail crime operation (“ORC”) in Atlanta through several entities, including Closeout Express and Essentials Daily Discounts.
An ORC operation refers to a professional shoplifting, cargo theft, or retail crime ring, or other organized crime occurring in a retail environment. Robert Whitley was the owner and operator of Closeout Express. Noni Whitley worked with her father and helped operate and manage their ORC operation.
Closeout Express and Essential Daily Discounts operated from a warehouse and several residences in Atlanta. The defendants relied on “boosters”—who are essentially professional shoplifters—to steal specific retail products or categories of items, including over-the-counter medications (e.g., Prilosec, Nexium, Rogaine, and Claritin), shaving razors, oral care products, and health and beauty aids. The boosters stole these products from various retailers, national drugstore chains, and national supermarket chains throughout metro Atlanta, including CVS, Kroger, Publix, Target, and Walgreens. The boosters would typically bring the stolen product in large trash bags to Closeout Express’s warehouse in southwest Atlanta. Robert and Noni Whitley paid the boosters in cash for the stolen product. The investigation revealed that Robert and Noni Whitley paid dozens of boosters to steal product over the years.
Closeout Express sold the stolen retail products—at below retail or even wholesale cost—mainly online at its own websites and through various online e-commerce platforms, including the Amazon Marketplace, the Walmart Marketplace, and the Sears Marketplace. In exchange for a monthly fee or some percentage of the sales, these platforms permit third-party sellers to establish “online storefronts” to sell new or used products on a fixed-price online marketplace alongside these companies’ regular offerings. Closeout Express established “online storefronts” on each of these marketplaces to sell the stolen retail product. Specifically, Closeout Express operated an online storefront on the Amazon Marketplace from approximately January 2011 until July 2018. During that time, Closeout Express sold more than 140,000 items through this storefront. With respect to the Walmart and Sears Marketplaces, Closeout Express operated online storefronts beginning in September 2017 and December 2014, respectively. Through these two online storefronts, Closeout Express processed more than 30,000 orders.
In November 2019, after an investigation, law enforcement shut down the Whitleys’ operation. That month, the FBI and U.S. Postal Inspection Service executed multiple search warrants at Closeout Express’s southwest Atlanta warehouse and multiple residences connected to Robert and Noni Whitley. These locations had been used to sort, store, and process the stolen retail product (e.g., to “clean” the items of identifying information or anti-theft devices). Among other evidence of the ORC operation, agents recovered more than $1 million in stolen retail product.
While in operation, Robert and Noni Whitley sold stolen retail product valued at more than $6.1 million through Closeout Express and Essential Daily Discounts across the various e-commerce platforms. Robert Whitley and Noni Whitley also sold hundreds of thousands of dollars of stolen product through Essential Daily Discounts’ own website.
On October 5, 2021, the defendants were sentenced by U.S. District Judge J.P. Boulee, to the following:
- Robert Whitley a/k/a Mr. Bob, 70, of Atlanta, Georgia, was sentenced to five years, ten months in prison to be followed by three years of supervised release. He previously pleaded guilty to one count of interstate transportation of stolen property.
- Noni Whitley, 47, of Atlanta, Georgia, was sentenced to five years in prison to be followed by three years of supervised release. She previously pleaded guilty to one count of conspiracy to commit interstate transportation of stolen property,
Both defendants were also ordered to pay $4,348,762.90 in restitution to the victim retailers.
This case was investigated by the Federal Bureau of Investigation and United States Postal Inspection Service.
Assistant U.S. Attorney Alex R. Sistla is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Fort Washakie Man Charged in Two Indictments Enters Guilty PleasRead the Press Release
Acting United States Attorney Bob Murray announced today that ROYCE NEIL PERRY JR a/k/a “Chucky,” 24, of Fort Washakie, Wyoming pleaded guilty to one count of assault resulting in serious bodily injury and one count of involuntary manslaughter at a change of plea hearing held in front of United States District Chief Judge Scott W. Skavdahl on September 29, 2021.
Perry was indicted by a federal grand jury on July 22, 2021, in two indictments. The first indictment alleged that he assaulted an individual in 2019 by hitting them with closed fists and kicking them in the head and face repeatedly with steel toed shoes. By pleading guilty to assault resulting in serious bodily injury, Perry could face up to 10 years imprisonment, three years of supervised release, $250,000 fine and $100 special assessment.
In the second indictment, Perry was charged with one count of involuntary manslaughter and two counts of child abuse. According to that indictment, on November 2, 2020, Perry drove a motor vehicle, under the influence of controlled substances, in a reckless manner, killing the passenger and injuring two children. By pleading guilty to one count of involuntary manslaughter, Perry could face up to eight years imprisonment, three years of supervised release, $250,000 fine and $100 special assessment.
Chief U.S. District Court Judge Scott W. Skavdahl accepted Perry’s plea and scheduled the sentencing hearing on December 20, 2021 in Casper, Wyoming.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Michael J. Elmore prosecuted the case.
Edjay Jaime Sablan Sentenced to 97 Months ImprisonmentRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Edjay Jaime Sablan, age 24, from Saipan, was sentenced in the United States District Court of the Northern Mariana Islands to 97 months imprisonment for Possession of Child Pornography, in violation of 18 U.S.C. § 2252(a)(4)(B). The Court also ordered five years of supervised release following imprisonment, 40 hours of community service, and a mandatory $100.00 special assessment fee. Sablan will also be required to register as a sex offender for 15 years following his release from prison.
On January 6, 2021, federal agents executed a search warrant at Sablan’s apartment on Saipan. At the time, Sablan was a police officer with the CNMI Department of Public Safety. Based on an undercover investigation, agents believed that the apartment contained evidence of child sex abuse material. Sablan arrived at his apartment during the search. Upon learning the subject of the investigation, he gave a recorded statement admitting that he frequently viewed this material, including videos of infants and toddlers, and that such files would be found on his laptop computer. Subsequent forensic analysis of the computer revealed images and videos depicting extreme acts of sadomasochism on children.
U.S. Attorney Anderson stated, “Our public servants are held to high standards of conduct. This is particularly true for members of law enforcement. The possession of child sexual abuse material is an unconscionable crime. Unfortunately, once the images reach the internet, a victim endures a lifetime of continued exploitation. The Department of Justice will pursue justice for these victims at every opportunity. We applaud the work of our federal task force partners in keeping our communities safe.”
“Sexual predators who prey on the most vulnerable members of our society will be identified, investigated and find themselves in prison. The fact that Sablan was an active-duty police officer - sworn to protect the public - makes this case particularly appalling," said FBI Honolulu Steven Merrill. "This verdict case demonstrates the importance of the FBI’s commitment to work closely with our partners on the Marianas Child Exploitation and Human Trafficking Task Force (MCEHTTF) to investigate cases such as this with a sense of urgency and to the fullest extent allowable by law."
This matter was investigated by the Federal Bureau of Investigation in partnership with the Marianas Child Exploitation and Human Trafficking Task Force. The case was prosecuted by Eric S. O’Malley, Assistant United States Attorney in the District of the Northern Mariana Islands.
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 epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Distribution of child pornography sends Great Falls man to prison for more than 12 yearsRead the Press Release
GREAT FALLS — A Great Falls man who admitted to sending child pornography videos to an undercover agent in an online chat room was sentenced today to 12 years and six months in prison to be followed by 15 years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
Joshua Nathan Stillman, 46, pleaded guilty in June to distribution of child pornography.
Chief U.S. District Judge Brian M. Morris presided.
In court documents, the government alleged that in November and December 2020, an undercover FBI agent was in an online chat room on an application available to cell phone users. On Nov. 23, 2020, a user in that chat room distributed two videos depicting child pornography to the undercover agent. An investigation determined that Stillman was the user who distributed the videos to the agent, and Stillman admitted that he distributed the videos in the chat room. A search warrant was executed on Stillman’s residence, and law enforcement seized and analyzed Stillman’s cell phone. Stillman’s cell phone contained more than 300 images and videos depicting child pornography.
Assistant U.S. Attorney Cyndee L. Peterson prosecuted the case, which was investigated by the Internet Crimes Against Children Task Force, the FBI and Montana Department of Justice’s Division of Criminal Investigation.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative, which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.
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Detroit Tax Preparer Indicted for Preparing False Tax ReturnsRead the Press Release
A federal grand jury in Detroit, Michigan, charged a Detroit tax preparer on Oct. 7 with 15 counts of aiding and assisting in the preparation of false tax returns.
According to the indictment, Daneilla Allen, who at times resided in Detroit, was one of the owners and operators of a tax preparation business through which she prepared false individual income tax returns. Allen allegedly prepared 2015, 2016, 2019 and 2020 tax returns that falsely claimed deductions, business losses and tax credits in an effort to obtain refunds for clients greater than those to which the clients were entitled. The indictment alleges that even after being notified by special agents of IRS–Criminal Investigation that she was under criminal investigation for preparing false tax returns, Allen allegedly prepared additional false returns.
If convicted, Daneilla Allen faces a maximum penalty of three years in prison for each false return count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
Trial Attorneys Jeffrey A. McLellan and Sam Bean of the Justice Department’s Tax Division are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
DOJ and University of Washington resolve claims researcher falsified grant applicationRead the Press Release
Seattle – The U.S. Department of Justice and the University of Washington have settled allegations that a professor in the College of Engineering falsified documentation provided to the National Science Foundation associated with a grant that UW received from the Foundation. The University will pay the government $801,756, to resolve allegations under the False Claims Act, which includes restitution and a penalty.
According to settlement documents, between August of 2018 and September 2019, the principal investigator on the grant submitted false documents regarding the grant to the National Science Foundation. The grant was part of the highly competitive “Designing Materials to Revolutionize and Engineer our Future” program.
“Academic integrity demands accurate reports to grant funders,” said U.S. Attorney Nicholas Brown. “This is an expensive, but critical, lesson that researchers must accurately report who worked on a project, as well as the results from their research.”
“The National Science Foundation Office of Inspector General is committed to ensuring the integrity of our grant recipients by holding accountable those who choose to engage in false claims and misrepresentation schemes. We appreciate the efforts of the Department of Justice in pursuing this matter and will continue to vigorously pursue oversight of taxpayer funds devoted to scientific research,” said Inspector General Allison Lerner.
The investigation began with a whistleblower complaint regarding work performed under the grant and the grant application.
Assistant United States Attorneys Ashley Burns and Kayla Stahman handled the case for the U.S. Attorney’s Office.
Columbia Couple Pleads Guilty to Selling Counterfeit Disney Movies on eBayRead the Press Release
JEFFERSON CITY, Mo. – A Columbia, Missouri, couple pleaded guilty in federal court today to a scheme to smuggle counterfeit Disney DVDs into the United States and sell them on eBay.
Tabitha Nicole Rodgers, 42, and her husband, Clint Travis Rodgers, 48, pleaded guilty in separate appearances before Magistrate Judge Willie J. Epps, Jr. Tabitha Rodgers pleaded guilty to one felony count of criminal copyright infringement for profit. Clint Rodgers pleaded guilty to a misdemeanor count of criminal infringement of a copyright.
In July 2014, Homeland Security Investigations (HSI) received information from the National Intellectual Property Rights Coordination Center indicating that Clint Rodgers had received more than 443 shipments of counterfeit DVDs from companies in Hong Kong known to sell and export counterfeit goods. HSI agents identified two shipments that had been seized prior to delivery to the Rodgers’ home in Columbia. One shipment contained 200 counterfeit “Beauty and the Beast” DVDs and another shipment contained 260 counterfeit “Aladdin” DVDs. On Feb. 4, 2015, Customs and Border Protection agents seized a parcel addressed to Clint Rodgers that contained 200 counterfeit Disney DVDs.
According to today’s plea agreement, undercover federal agents purchased several counterfeit Disney DVDs from the Rodgers on eBay in February and March 2015. The Rodgers represented that the DVDs were genuine and authentic Disney products, when in reality, they were aware the products were counterfeit. During the investigation, agents contacted two persons who assisted the Rodgers in selling counterfeit DVDs on eBay. They told agents they were aware of numerous complaints from customers, including complaints that the DVDs didn’t work.
On Aug. 25, 2015, HSI agents executed a search warrant at the Rodgers’ residence. Agents seized an assortment of counterfeit goods, including numerous counterfeit Disney DVDs. Tabitha Rodgers admitted that she conducted the day-to-day operation of the business. She corresponded via email with the counterfeit DVD supplier in Hong Kong and placed orders for the DVDs. She also packaged and sent the DVDs to customers and processed customer complaints when DVDs were inoperable.
Under the terms of today’s plea agreement, Tabitha Rodgers must forfeit to the government a money judgment in an amount to be determined by the court at sentencing that represents her share of the proceeds from the criminal activity.
Under federal statutes, Tabitha Rodgers is subject to a sentence of up to five years in federal prison without parole. Clint Rodgers is subject to a sentence of up to one year 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 defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by Homeland Security Investigation and the U.S. Department of Agriculture.
Cincinnati man sentenced to more than 10 years in prison for robbing restaurantRead the Press Release
CINCINNATI – The lead of four defendants convicted of robbing an area chicken wings restaurant at gunpoint was sentenced in federal court to 126 months in prison.
Jammell Johnson, 28, of Cincinnati, received a sentence at the top of the federal sentencing guidelines for his role in the armed robbery conspiracy.
According to court documents, on July 28, 2019, Johnson and three others – including the restaurant’s manager Michael Jointer – robbed the WingStop on Galbraith Road in Springfield Township.
Johnson’s plea documents detail that he and the co-defendants had planned to place a carryout food order around closing time, which WingStop would honor after the restaurant had closed. According to their plan, Johnson and co-conspirator Martez Brown would rob the restaurant and manager Jointer would lead them to the safe. Jointer chose the date based on when the safe would contain the most cash.
Springfield Township police officers became aware of the plan and initiated surveillance.
A fourth defendant, Dwayne Palmore, purchased clothing items and gloves for use during the robbery and acted as a lookout on scene at WingStop.
Johnson and Brown brandished firearms and stole approximately $2,600 in cash from the restaurant.
Law enforcement officials used physical and aerial surveillance prior to, during, and after the robbery. Co-conspirators were arrested following vehicle and foot pursuits. Officers deployed nearby K-9 units to help apprehend the defendants.
Jointer, Brown and Palmore have each pleaded guilty and await sentencing.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Springfield Township Police Chief Rick Bley; and Roland Herndon, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), announced the sentence imposed by Senior U.S. District Court Judge Susan J. Dlott. Assistant United States Attorney Ashley N. Brucato is representing the United States in this case.
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Christopher R. Kavanaugh Sworn in as United States Attorney for the Western District of VirginiaRead the Press Release
ROANOKE, Va. – In a ceremony Thursday evening, Christopher Robert Kavanaugh was sworn in as United States Attorney for the Western District of Virginia. The Honorable Lisa O. Monaco, Deputy Attorney General for the Department of Justice, administered the oath office at a private ceremony at the Department of Justice in Washington D.C.
President Joseph R. Biden nominated Mr. Kavanaugh to be the United States Attorney on August 10, 2021. The United States Senate confirmed his nomination on October 5, 2021.
“It is the honor of my life to serve as United States Attorney for the Western District of Virginia. I know that the federal prosecutors here tirelessly serve the citizens of the Western District of Virginia in their pursuit of justice, and I am grateful for the opportunity to lead such a talented and dedicated team of public servants,” U.S. Attorney Kavanaugh said today. “I look forward to working closely with our law enforcement partners, defense counsel, and the court in serving the District.”
U.S. Attorney Kavanaugh, 41, of Charlottesville, is a career federal prosecutor, having served as an Assistant United States Attorney for both the United States Attorney’s Office in Charlottesville as well as the District of Columbia. During his career, Mr. Kavanaugh directed numerous multi-agency investigations and prosecutions, including the hate crimes prosecution of James Fields for the August 12, 2017 car attack in Charlottesville, Virginia. Mr. Kavanaugh also served as the District’s chief national security prosecutor, and spent time supervising and training fellow prosecutors while serving as the Counsel to the U.S. Attorney and Senior Litigation Counsel. Most recently, Mr. Kavanaugh was Senior Counsel to the Deputy Attorney General at the U.S. Department of Justice in Washington, D.C.
Mr. Kavanaugh graduated summa cum laude from Georgia Tech, where received his Bachelor of Science in Industrial and Systems Engineering. He earned his law degree from the University of Virginia School of Law. Following law school, he clerked for the Honorable James C. Cacheris, U.S. District Court Judge for the Eastern District of Virginia.
Chestnut Hill Private School Teacher Ordered Detained Before Trial After Arrest on Child Pornography ChargesRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Andrew Wolf, 41, of Philadelphia, PA, and a teacher at Springside Chestnut Hill Academy in Philadelphia, was ordered detained pending trial at a hearing in U.S. Magistrate Court earlier today, following his arrest on October 7, 2021. The defendant was charged by Criminal Complaint with multiple child exploitation offenses including receiving child pornography and distribution of child pornography.
According to the Complaint, the charges stem from the defendant’s July 2021 electronic communication with a 13-year-old boy in order to purchase several sexually explicit videos of the child in exchange for a PlayStation card worth $100. He was arrested after the FBI executed a federal search warrant at his residence.
“As alleged in the Criminal Complaint, the defendant communicated with a child for the purpose of sexually exploiting the child’s naiveté – an abhorrent crime made even worse because of the defendant’s position as a teacher,” said Acting U.S. Attorney Williams. “The convenience and accessibility of digital communications, coupled with the ease with which child sexual exploitation crimes can be concealed online, make these cases extremely difficult to investigate and prosecute. However, our Office and our law enforcement partners are committed to doing this difficult work in order to hold child sexual predators accountable, especially people like this defendant who have selected careers working with children.”
“Any adult who manipulates a child into providing explicit images of themselves, as alleged here, needs to answer for it,” said Bradley S. Benavides, Acting Special Agent in Charge of the FBI's Philadelphia Division. “It's especially pressing when the adult in question works with kids every day. Our Crimes Against Children Task Force is driven to keep identifying and investigating online predators. It's critical we protect children from such disgusting sexual exploitation.”
If convicted, the defendant faces a maximum possible sentence of 40 years in prison.
The case was investigated by the FBI and is being prosecuted by the United States Attorney’s Office for the Eastern District of Pennsylvania.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Buffalo Man Pleads Guilty to Throwing A Burning Basket into Buffalo City Hall During Violent ProtestsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. – U.S. Attorney Trini E. Ross announced today that Courtland Renford, 22, of Buffalo, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to rioting. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Jeremiah E. Lenihan, who is handling the case, stated that on May 30, 2020, the defendant participated in the looting and rioting of a 7-11 convenience store located on the corner of Elmwood Avenue and Summer Avenue in Buffalo. At approximately 10:10 p.m., a large group shattered the front door of the 7-11 and began looting the store. Renford was one of the first individuals to enter the 7-11 and his conduct was captured on surveillance footage.
Later that same evening, at approximately 11:25 p.m., Renford participated in a public protest near Buffalo City Hall, resulting in significant property damage and looting. During the protest Renford threw a burning laundry basket into a broken window of Buffalo City Hall, resulting in a fire inside the building. Buffalo firefighters extinguished the fire, which damaged and/or destroyed items inside Buffalo City Hall.
The plea is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
Sentencing is scheduled for December 17, 2021, before Judge Arcara.
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Brooklyn Felon Sentenced to 48 Months’ Imprisonment for Possessing Arsenal of Weapons Including “Ghost Guns”Read the Press Release
Earlier today, at the federal courthouse in Brooklyn, Gary Brown was sentenced by United States District Judge Eric R. Komitee, to 48 months’ imprisonment for being a convicted felon in possession of numerous firearms and ammunition. Brown pleaded guilty to the charge in April 2021.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, and John B. DeVito, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Division (ATF), announced the sentence.
“As a result of the outstanding investigation conducted by agents of the ATF, the defendant has been brought to justice and his extensive collection of dangerous weapons and ammunition – including untraceable ghost guns –- no longer pose a threat to the safety of our community,” stated Acting United States Attorney Kasulis. “This Office is working tirelessly with our federal partners and local law enforcement to stem the epidemic of gun violence in this district.” Ms. Kasulis also thanked the Social Security Administration, Office of Inspector General, for their assistance with the case.
In July 2019, the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives began investigating the manufacture, distribution and possession of privately made firearms (“PMFs”), which are commonly referred to as “ghost guns.” Through that investigation, law enforcement agents learned that Brown had purchased hundreds of rounds of ammunition, enough PMF parts to assemble at least fourteen separate firearms and a Ghost Gunner 2, which is a machine that can be used to assemble PMFs. On August 12, 2020, law enforcement executed a search of Brown’s residence in Brooklyn and found an arsenal of weapons, including traditional firearms, PMFs, numerous high-capacity magazines, including one 100 round magazine and multiple magazines with a capacity of thirty rounds or more and hundreds of rounds of ammunition. The firearms were strewn about the residence, where the defendant lived with his fiancé and toddler daughter, in unsecured bags and drawers. A later search of a storage locker used by Brown also revealed a 12 Gauge Shotgun, additional PMF parts, hundreds of additional rounds of ammunition and a Ghost Gunner 2.
Brown was previously convicted in May 2009 of manslaughter stemming from a 2008 incident in which Brown threw a woman to the ground causing severe head trauma, and ultimately, her death.
The government’s case is being prosecuted by Assistant United States Attorney Rachel A. Bennek.
The Defendant:
GARY BROWN
Age: 40
Brooklyn, New YorkE.D.N.Y. Docket No. 20-CR-352 (EK)
Birmingham Man Sentenced to 24 Years in Prison on Drug ChargesRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a Birmingham man on drug charges, announced U.S. Attorney Prim F. Escalona and U.S. Postal Inspection Service Acting Inspector-in-Charge, Houston Division, Dana Carter.
U.S. District Court Judge Annemarie C. Axon sentenced Louis Dejuan Owens, 44, to 290 months in prison followed by five years of supervised release for possession with the intent to distribute methamphetamine. Owens pleaded guilty to the charge in May.
“Methamphetamine continues to devastate communities across Alabama,” said U.S. Attorney Escalona. “Keeping dangerous drugs off the streets helps reduce violence and saves lives. We are grateful for the work of the U.S. Postal Inspection Service and the Alabama Law Enforcement Agency on this case.”
“Louis Dejuan Owens’ greed placed the lives of U.S. Postal Service workers and the community at large in grave risk with little regard to their safety,” said acting Inspector-in-Charge Dana Carter, US Postal Inspection Service, Houston Division. “Today’s criminal sentence calling for over two decades in prison is a firm reminder that postal inspectors, partnering with other law enforcement agencies, such as ALEA, persistently work in the background to keep the U.S. Mail safe and secure.”
According to the plea agreement, on four separate occasions between October 4, 2019 and November 1, 2019, Alabama Law Enforcement Agency-State Bureau of Investigations (ALEA-SBI) special agents used a confidential informant to make numerous controlled purchases of methamphetamine from Owens.
On November 1, 2019, ALEA-SBI special agents and the State Trooper Tactical Team established surveillance in the area of the location where the final buy was to take place. As Owens arrived, State Troopers attempted to stop Owens. Owens attempted to flee, and his vehicle struck a utility pole. Owens was taken into custody by the State Troopers, who found large quantities of methamphetamine in his vehicle.
Evidence at sentencing revealed that, on November 1, 2019, Owens was in possession of at least 1810 net grams of 98% pure methamphetamine. In addition, State Troopers seized narcotics packaging materials and over $7,000. The money was forfeited by the United States at today’s sentencing.
U.S. Postal Inspection Service investigated the case along with the Alabama Law Enforcement Agency. Assistant U.S. Attorney Allison J. Garnett prosecuted the case.
Billings man sentenced to prison for illegal gun possession while charged with feloniesRead the Press Release
BILLINGS — A Billings man who was arrested during a disturbance and who admitted to illegally possessing a firearm while having been charged with two felonies was sentenced today to 30 months in prison to be followed by three years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
Joseph Daniel Boggio, 41, pleaded guilty on May 6, 2021, to illegal receipt of a firearm by a person under indictment.
U.S. District Judge Susan P. Watters presided.
In court documents filed in the case, the government alleged that in January 2020 and again in May 2020, Boggio was charged with two separate felonies of driving while under the influence. Boggio signed his conditions of release, which stated that he “may not possess a firearm, destructive device or other dangerous weapon.” In October 2020, Yellowstone County Sheriff’s Office deputies responded to a disturbance at a Billings residence and found an individual holding down Boggio. Both Boggio and the individual had blood on them. Boggio was arrested and taken to the hospital with minor injuries. Investigators learned from witnesses that Boggio had sent the individual and other occupants threatening messages, had come to the residence, and started fighting with the individual. Boggio was under the influence and threatening to shoot people as he reached behind his back. Another person saw a gun protruding from Boggio’s pants waistband, grabbed it, and secured it in another room. The owner of the firearm advised law enforcement that Boggio had taken the gun without her permission or knowledge.
Assistant U.S. Attorney Karla E. Painter prosecuted the case, which was investigated by the Yellowstone County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
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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Bellevue Man Who Spent Cattle Loan Funds on Gambling Sentenced to Federal PrisonRead the Press Release
A man who spent federal loan money intended for the purchase of cattle on his personal expenses, including gambling and alcohol, was sentenced on October 4, 2021, to ten months in federal prison.
Briar Robert Detwiler, age 26, from Bellevue, Iowa, received the prison term after a March 23, 2021 guilty plea to one count of conversion of property pledged to a farm credit agency.
Information from a plea agreement and at sentencing showed that the United States Department of Agriculture Farm Service Agency approved Detwiler’s loan request for $50,000 to purchase fifty beef calves in December 2017. Detwiler then requested a disbursement of $9,000 of the funds, falsely stating that the money was for the purchase of cattle. Detwiler immediately spent the $9,000 on construction materials for his personal residence. Detwiler then asked for the remaining $41,000 of loan funds. Of these funds, Detwiler spent $32,230.08 on 35 head of cattle. Detwiler spent the remaining funds on gambling, bars, and food. In October and November 2018, Detwiler sold 22 head of the cattle for $33,976.41. As Detwiler later admitted, instead making any repayment towards the loan, Detwiler spent all of the proceeds he received from the cattle sales in a casino and in bars.
Detwiler was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Detwiler was sentenced to 10 months’ imprisonment. He was ordered to make $52,684.38 in restitution to the Farm Service Agency. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Detwiler was released on the bond previously set and is to surrender to the United States Marshal on October 18, 2021.
The case was prosecuted by Assistant United States Attorney Kyndra Lundquist and investigated by the United States Department of Agriculture Office of Inspector General.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-1021.
Follow us on Twitter @USAO_NDIA.
Bay Area Woman Pleads Guilty to Wire Fraud for Soliciting Donations in Bogus Cancer Treatment SchemeRead the Press Release
SAN JOSE – Amanda Christine Riley pleaded guilty in federal court today to wire fraud in connection with a scheme to solicit donations from individuals to help her pay for cancer treatments she never needed nor received, announced Acting United States Attorney Stephanie M. Hinds and Internal Revenue Service (IRS) Criminal Investigation, Special Agent in Charge Mark H. Pearson. The Honorable Beth Labson Freeman, U.S. District Judge, accepted the plea.
According to the written plea agreement, Riley, 36, admitted that in September 2012, when she was living in San Jose, she devised and executed a plan to obtain money from donors by falsely claiming she had Hodgkin’s lymphoma, a type of cancer. Riley acknowledged her intent was to deceive people into believing she had cancer and, in doing so, to convince them to donate money to her. She continued to execute that plan until at least January 3, 2019.
In approximately October 2012, Riley began documenting her purported illness on social media, including on Facebook, Instagram, and Twitter. She also created a blog located at http://lymphomacansuckitblogspot.com/. On these social media platforms, she posted photos of medications, photos of herself at hospitals, and photos of herself allegedly suffering the side effects of chemotherapy. Riley added captions to the photos with false statements claiming that she was taking cancer drugs and receiving cancer treatment. She even shaved her head to make it appear as if she had lost her hair as a result of chemotherapy.
Riley admitted taking additional steps to raise money for her phony illness. For example, Riley’s blog included a link to a support page, http://www.supportamanda.com, which also included false information about Riley’s purported “battle with cancer.” The support page featured a clickable “donate now” icon for visitors to donate money online, and encouraged visitors to donate money to “support Amanda” and help “Amanda’s battle with cancer.” In addition, Riley organized several fundraisers, including in-person fundraisers at the Family Community Church in San Jose, to solicit donations and raise money for her supposed cancer-related expenses.
In reality, Riley did not have – and has never had – Hodgkin’s lymphoma, or any other type of cancer. When people donated to Riley over the internet or at in-person fundraisers, they believed their donations would be used to pay Riley’s cancer-related expenses. In fact, Riley had no cancer-related expenses, and donors’ funds were simply deposited into Riley’s personal bank account. In total, Riley admitted she received over four-hundred donations worth approximately $106,272 from her fake cancer fundraising scheme.
Today, Riley pleaded guilty to one count of wire fraud in violation of 18 U.S.C. § 1343. Riley was charged on January 6, 2021, by felony information.
Judge Freeman scheduled Riley’s sentencing for February 22, 2022. Riley faces a maximum statutory penalty of up to 20 years in prison and a fine of $250,000 (or twice the gross gain or loss resulting from the scheme). In addition, the court may order additional terms of supervised release and restitution. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Scott Simeon and Michael G. Pitman are prosecuting the case with the assistance of Sahib Kaur. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation, and the San Jose Police Department.
Arapahoe Man Pleads Guilty to Using and Carrying a Firearm During and in Relation to a Crime of ViolenceRead the Press Release
Acting United States Attorney Bob Murray announced today that RONALD BLAISE JENKINS, 25, of Arapahoe Wyoming, pleaded guilty to using and carrying a firearm during and in relation to a crime of violence. The change of plea hearing was held in front of United States District Chief Judge Scott W. Skavdahl who set sentencing for December 20, 2021.
The investigation was conducted by the Bureau of Indian Affairs Wind River Police Department, with assistance from the Riverton Police Department. Assistant United States Attorney Kerry J. Jacobson prosecuted the case.
25th Operation High Tide Defendant Sentenced for Drug and Gun CrimesRead the Press Release
NORFOLK, Va. – A Portsmouth man, who was the 25th defendant associated with Operation High Tide, was sentenced today to five years in prison for his role in trafficking firearms and selling heroin.
According to court documents, in 2017, Shon E. Melton, 32, of Portsmouth, was attributed with trafficking 19 firearms, including a concealable short barrel shotgun, assault rifles, and stolen guns, one of which was a Ruger with a scope and laser modification. Firearms trafficked by Melton include stolen guns connected to burglaries in the London Oaks neighborhood of Portsmouth, sold within days or weeks of the home invasions.
Operation High Tide is a large-scale narcotics trafficking and firearms investigation that has resulted in the recovery of over 65 firearms, over 7 kilograms of cocaine, nearly a kilogram of crack cocaine, over 625 grams of heroin, over 100 grams of fentanyl, 75 grams of acetyl fentanyl, 12 pounds of marijuana, 621 grams of hash oil, 24 grams of MDMA (commonly known as ecstasy), 120 grams of methamphetamine, and over $560,000 in cash. The narcotics seized have a street value of nearly $1 million.
To date, Operation High Tide defendants have been sentenced to a combined total of over 250 years:
Name, Age
Hometown
Charges
Sentence
Brian D. Best, 34
Virginia Beach
Conspiracy to Distribute and Possess with Intent to Distribute Methamphetamine
92 months
Antisha Carrington, 25
Virginia Beach
Conspiracy to Distribute and Possess with Intent to Distribute Cocaine, Heroin, Fentanyl, and Marijuana
33 months
Portia L. Carrington-Green, 46, Chesapeake
Transferring a Firearm to a Prohibited Person
12 months and one day
Kawanta D. Epps, 40
Norfolk
Conspiracy to Distribute and Possess with Intent to Distribute Cocaine, Heroin, Fentanyl, and Marijuana; Distribution of Heroin
46 months
Glenn Farris, 36
Norfolk
Using a Communication Facility to Commit, Cause, and Facilitate the Distribution of Controlled Substances
30 months
Armad J. Gatling, 26, Portsmouth
Felon in Possession of a Firearm, Aggravated Identity Theft, and Credit Union Fraud
216 months
Corey L. Jones, 50
Portsmouth
Conspiracy to Manufacture, Distribute, and Possess with Intent to Manufacture and Distribute Heroin; Possessing a Firearm in Furtherance of a Drug-Trafficking Crime
240 months
Dominic D. Jones, 26
Portsmouth
Conspiracy to Manufacture, Distribute, and Possess with Intent to Manufacture and Distribute Heroin; Possessing a Firearm in Furtherance of a Drug-Trafficking Crime
60 months
Malcolm D. Jones, Sr., 45
Portsmouth
Conspiracy to Manufacture, Distribute, and Possess with Intent to Manufacture and Distribute Heroin; Distribution of Heroin, Fentanyl; Distribution of Acetyl Fentanyl
246 months
Malcom Jones, Jr., 25
Portsmouth
Conspiracy to Manufacture, Distribute, and Possess with Intent to Manufacture and Distribute Heroin
156 months
Razagin K. Lee, 49, Elizabeth City, North Carolina
Conspiracy to Distribute and Possess with Intent to Distribute Cocaine
140 months
Shon E. Melton, 30
Portsmouth
Distribution of Heroin; Possessing a Firearm in Furtherance of a Drug-Trafficking Crime; Possession of an Unregistered National Firearms Act Firearm
60 months
Hasheed Mills, 25
Portsmouth
Distribution of Heroin; Possession of a Firearm in Furtherance of a Drug-Trafficking Crime; Distribution of Cocaine
60 months
Gary Norfleet, 52
Chesapeake
Possession with Intent to Distribute Cocaine; Felon in Possession of a Firearm
151 months
Jermaine C. Parker, 35
Chesapeake
Distribution of Fentanyl; 2 counts of Possession of a Firearm in Furtherance of a Drug-Trafficking Crime
240 months
Takieon J. Perkins, 36, Chesapeake
Felon in Possession of a Firearm
180 months
Raewkon A. Pierce, 24
Portsmouth
Distribution of Cocaine
140 months
Corey S. Reed, 38
Norfolk
Distribution of Heroin; Possession with Intent to Distribute Heroin
156 months
Tajh Rodgers, 29
Portsmouth
Robbery Affecting Commerce; Using, Carrying, and Brandishing a Firearm During and in Relation to a Crime of Violence; and 3 counts of Possessing a Firearm in Furtherance of a Drug-Trafficking Crime
336 months
Johnnie Ross, 29
Portsmouth
Distribution of Fentanyl
60 months
Jameel M. Simmons, 37
Portsmouth
Possession with Intent to Distribute Heroin; Possession of a Firearm in Furtherance of a Drug-Trafficking Crime
123 months
Jelami M. Smith, 43
Portsmouth
Distribution of Heroin
24 months
Robert B. Spruill, 39
Chesapeake
Conspiracy to Distribute and Possess Methamphetamine
60 months
Paul C. Voskanyan, 36
Possession with Intent to Distribute Crack Cocaine
144 months
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Charlie J. Patterson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; Colonel Gary T. Settle, Superintendent of Virginia State Police; Larry D. Boone, Chief of Norfolk Police; Col. K.L. Wright, Chief of Chesapeake Police; and Renado Prince, Chief of Portsmouth Police, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
Assistant U.S. Attorneys Kristin G. Bird, Andrew C. Bosse, John F. Butler, Megan M. Cowles, Sherrie Capotosto, Kevin M. Comstock, Joseph E. DePadilla, William B. Jackson, Darryl Mitchell, and William D. Muhr prosecuted the cases referenced above.
This case is part of Project Safe Neighborhoods (PSN), which 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.
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 on the Melton case are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-145. Other Operation High Tide cases can be found by searching for Case Nos. 2:19-cr-80, 111, 138, 145, 146, 147, 148, 149, 150, 151, 154, 155, 170, 193, and 2:20-cr-15.
Monday 11 October 2021
Department of Justice Redoubles Efforts to Find and Prosecute Those Responsible for the 2001 Murder of Federal Prosecutor Tom WalesRead the Press Release
WASHINGTON – Deputy Attorney General Lisa O. Monaco today announced that the Department of Justice has doubled the $1 million reward for information leading to the arrest and conviction of those responsible for the October 2001 murder of Seattle Assistant U.S. Attorney Thomas Wales.
With the inclusion of reward funds raised by the National Association of Former U.S. Attorneys, the total reward now stands at approximately $2.5 million. Wales worked as a federal prosecutor in the Western District of Washington for 18 years before he was shot and killed in his home the evening of Oct. 11, 2001.
“The Department of Justice will never forget Tom’s contributions to the department and the cause of justice, nor will we forget the tragedy of his death,” said Deputy Attorney General Monaco. “Although two decades have passed, the Department of Justice remains committed to this investigation. Somebody knows something about this murder, and we want to do everything we can to encourage them to come forward now.”
In addition to doubling the reward, the department announced steps to redouble its efforts to pursue justice in the investigation. The U.S. Attorney’s Office for the Western District of Washington will be joining the Seattle Prosecutor Murder (SEPROM) Task Force. The department will augment the prosecution effort with additional Seattle-based resources, including personnel with expertise in homicide investigations.
“The addition of these resources, including attorneys and investigators from the U.S. Attorney’s Office for the Western District of Washington and FBI, will put the department in the strongest possible position to solve Tom’s murder,” said Deputy Attorney General Monaco.
The SEPROM Task Force is now a joint effort by the FBI, the Seattle Police Department, the Department of Justice, the U.S. Attorney’s Office for the Western District of Washington and the King County Prosecuting Attorney’s Office. The task force is also leveraging emerging and evolving technologies in the effort.
Anyone with information is encouraged to contact the FBI and can do so confidentially by phone at (206) 622-0460 or by e-mail at [email protected]. Tips can also be sent to the FBI at 1110 Third Avenue, Seattle, WA, 98101. The complete library of information, including multi-media materials for download and use, the FBI Seeking Information poster, details about the tip lines and more can be found at https://www.fbi.gov/wanted/seeking-info/thomas-crane-wales.
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U.S. Attorney Nicholas Brown participates in tree planting in memory of AUSA Tom WalesDepartment of Justice Redoubles Efforts to Find and Prosecute Those Responsible for the 2001 Murder of Federal Prosecutor Tom WalesRead the Press Release
Deputy Attorney General Lisa O. Monaco today announced that the Department of Justice has doubled the $1 million reward for information leading to the arrest and conviction of those responsible for the October 2001 murder of Seattle Assistant U.S. Attorney Thomas Wales.
With the inclusion of reward funds raised by the National Association of Former U.S. Attorneys, the total reward now stands at approximately $2.5 million. Wales worked as a federal prosecutor in the Western District of Washington for 18 years before he was shot and killed in his home the evening of Oct. 11, 2001.
“The Department of Justice will never forget Tom’s contributions to the department and the cause of justice, nor will we forget the tragedy of his death,” said Deputy Attorney General Monaco. “Although two decades have passed, the Department of Justice remains committed to this investigation. Somebody knows something about this murder, and we want to do everything we can to encourage them to come forward now.”
In addition to doubling the reward, the department announced steps to redouble its efforts to pursue justice in the investigation. The U.S. Attorney’s Office for the Western District of Washington will be joining the Seattle Prosecutor Murder (SEPROM) Task Force. The department will augment the prosecution effort with additional Seattle-based resources, including personnel with expertise in homicide investigations.
“The addition of these resources, including attorneys and investigators from the U.S. Attorney’s Office for the Western District of Washington and FBI, will put the department in the strongest possible position to solve Tom’s murder,” said Deputy Attorney General Monaco.
The SEPROM Task Force is now a joint effort by the FBI, the Seattle Police Department, the Department of Justice, the U.S. Attorney’s Office for the Western District of Washington and the King County Prosecuting Attorney’s Office. The task force is also leveraging emerging and evolving technologies in the effort.
Anyone with information is encouraged to contact the FBI and can do so confidentially by phone at (206) 622-0460 or by e-mail at [email protected]. Tips can also be sent to the FBI at 1110 Third Avenue, Seattle, WA, 98101. The complete library of information, including multi-media materials for download and use, the FBI Seeking Information poster, details about the tip lines and more can be found at https://www.fbi.gov/wanted/seeking-info/thomas-crane-wales.
Bronx Man Who Attempted to Travel to Afghanistan in 2019 to Join Taliban Convicted of Attempting to Provide Material Support for TerrorismRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that a jury returned a guilty verdict last Friday against DELOWAR MOHAMMED HOSSAIN on both counts of the Superseding Indictment, for attempting to provide material support for terrorism and attempting to make a contribution of funds, goods, and services to the Taliban. United States District Judge Sidney H. Stein presided over the one-week trial.
U.S. Attorney Damian Williams said: “As the jury found, Delowar Hossain made elaborate preparations to travel to Afghanistan to join the Taliban and kill American troops, and he was intercepted at JFK Airport attempting to board a flight while carrying mountain survival gear and thousands in cash for weapons to achieve his murderous plan. I commend the excellent work of the Joint Terrorism Task Force to uncover the plot and stop Hossain, who now awaits sentencing for his crimes.”
According to court documents and the evidence at trial:
Beginning in the fall of 2018, HOSSAIN expressed his desire to travel to Afghanistan, join the Taliban, and kill American servicemembers. Over the next approximately 10 months, HOSSAIN attempted to recruit several other individuals into his plot; attempted to contact at least one individual in Pakistan who was associated with the Taliban; saved at least approximately $10,000, with which he planned to buy weapons to use after he joined the Taliban; and bought survival gear for the mountains of Afghanistan. During recorded conversations with two confidential sources working with the Federal Bureau of Investigation (“FBI”), HOSSAIN consistently reiterated his desire to join the Taliban and kill Americans. HOSSAIN also took steps to develop a cover story designed to disguise his extremism and evade detection by the FBI, which included traveling to Thailand on his way to Afghanistan.
On July 26, 2019, the FBI arrested HOSSAIN at John F. Kennedy International Airport as he was walking down the jet bridge to a flight that would have taken him to Thailand, the first leg of his planned journey to Afghanistan to join the Taliban. A subsequent search of HOSSAIN’s person and luggage revealed approximately $10,000 in cash and survival gear, including a machete, an ax, a knife, a tent, sleeping bags rated for freezing temperatures, emergency thermal blankets, personal water filters, and solar power panels.
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HOSSAIN, 36, of the Bronx, New York, was convicted of one count of attempting to provide material support for terrorism, which carries a maximum sentence of 15 years in prison, and one count of attempting to make a contribution of funds, goods, and services to the Taliban, which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by Judge Stein. Sentencing before Judge Stein is scheduled for January 12, 2022, at 2:30 p.m.
Mr. Williams praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which consists principally of agents from the FBI and detectives from the New York City Police Department. Mr. Williams also thanked the Counterterrorism Section of the Department of Justice’s National Security Division, as well as the New York Office of U.S. Customs and Border Protection.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys David W. Denton Jr., Jessica K. Fender, and Benjamin Woodside Schrier are in charge of the prosecution, assisted by Paralegal Specialist Daniel Sitko, and with assistance from Trial Attorney Jennifer Burke of the Counterterrorism Section.
Sunday 10 October 2021
Maryland Nuclear Engineer and spouse arrested on espionage-related chargesRead the Press Release
Jonathan and Diana Toebbe, both of Annapolis, Maryland, were arrested in Jefferson County, West Virginia by the Federal Bureau of Investigation (FBI) and the Naval Criminal Investigative Service (NCIS) on Saturday, October 9, 2021. They will have their initial appearances on Tuesday, October 12, 2021, in federal court in Martinsburg, West Virginia. For almost a year, Jonathan Toebbe, 42, aided by his wife, Diana, 45, sold information known as Restricted Data concerning the design of nuclear powered warships to a person they believed was a representative of a foreign power. In actuality, that person was an undercover FBI agent. The Toebbes have been charged in a criminal complaint alleging violations of the Atomic Energy Act.
“The complaint charges a plot to transmit information relating to the design of our nuclear submarines to a foreign nation,” said Attorney General Merrick B. Garland. “The work of the FBI, Department of Justice prosecutors, the Naval Criminal Investigative Service, and the Department of Energy was critical in thwarting the plot charged in the complaint and taking this first step in bringing the perpetrators to justice.”
Jonathan Toebbe is an employee of the Department of the Navy who served as a nuclear engineer and was assigned to the Naval Nuclear Propulsion Program, also known as Naval Reactors. He held an active national security clearance through the U.S. Department of Defense, giving him access to Restricted Data. Toebbe worked with and had access to information concerning naval nuclear propulsion including information related to military sensitive design elements, operating parameters, and performance characteristics of the reactors for nuclear powered warships.
The complaint affidavit alleges that on April 1, 2020, Jonathan Toebbe sent a package to a foreign government, listing a return address in Pittsburgh, Pennsylvania, containing a sample of Restricted Data and instructions for establishing a covert relationship to purchase additional Restricted Data. The affidavit also alleges that, thereafter, Toebbe began corresponding via encrypted email with an individual whom he believed to be a representative of the foreign government. The individual was really an undercover FBI agent. Jonathan Toebbe continued this correspondence for several months, which led to an agreement to sell Restricted Data in exchange for thousands of dollars in cryptocurrency.
On June 8, 2021, the undercover agent sent $10,000 in cryptocurrency to Jonathan Toebbe as “good faith” payment. Shortly afterwards, on June 26, 2021, Jonathan and Diana Toebbe traveled to a location in West Virginia. There, with Diana Toebbe acting as a lookout, Jonathan Toebbe placed an SD card concealed within half a peanut butter sandwich at a pre-arranged “dead drop” location. After retrieving the SD card, the undercover agent sent Jonathan Toebbe a $20,000 cryptocurrency payment. In return, Jonathan Toebbe emailed the undercover agent a decryption key for the SD Card. A review of the SD card revealed that it contained Restricted Data related to submarine nuclear reactors. On August 28, 2021, Jonathan Toebbe made another “dead drop” of an SD card in eastern Virginia, this time concealing the card in a chewing gum package. After making a payment to Toebbe of $70,000 in cryptocurrency, the FBI received a decryption key for the card. It, too, contained Restricted Data related to submarine nuclear reactors. The FBI arrested Jonathan and Diana Toebbe on October 9, after he placed yet another SD card at a pre-arranged “dead drop” at a second location in West Virginia.
Trial Attorneys Matthew J. McKenzie and S. Derek Shugert, Counterintelligence and Export Control Section, U.S. Department of Justice, National Security Division, Assistant U.S. Attorneys Jarod J. Douglas and Lara Omps-Botteicher, Northern District of West Virginia, and Special Assistant U.S. Attorney Jessica Lieber Smolar, Western District of Pennsylvania, are prosecuting the case on behalf of the government. The FBI and the NCIS investigated.
A complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Maryland Nuclear Engineer and Spouse Arrested on Espionage-Related ChargesRead the Press Release
Jonathan and Diana Toebbe, both of Annapolis, Maryland, were arrested in Jefferson County, West Virginia, by the FBI and the Naval Criminal Investigative Service (NCIS) on Saturday, Oct. 9. They will have their initial appearances on Tuesday, Oct. 12, in federal court in Martinsburg, West Virginia. For almost a year, Jonathan Toebbe, 42, aided by his wife, Diana, 45, sold information known as Restricted Data concerning the design of nuclear-powered warships to a person they believed was a representative of a foreign power. In actuality, that person was an undercover FBI agent. The Toebbes have been charged in a criminal complaint alleging violations of the Atomic Energy Act.
“The complaint charges a plot to transmit information relating to the design of our nuclear submarines to a foreign nation,” said Attorney General Merrick B. Garland. “The work of the FBI, Department of Justice prosecutors, the Naval Criminal Investigative Service and the Department of Energy was critical in thwarting the plot charged in the complaint and taking this first step in bringing the perpetrators to justice.”
Jonathan Toebbe is an employee of the Department of the Navy who served as a nuclear engineer and was assigned to the Naval Nuclear Propulsion Program, also known as Naval Reactors. He held an active national security clearance through the U.S. Department of Defense, giving him access to Restricted Data. Toebbe worked with and had access to information concerning naval nuclear propulsion including information related to military sensitive design elements, operating parameters and performance characteristics of the reactors for nuclear powered warships.
The complaint affidavit alleges that on April 1, 2020, Jonathan Toebbe sent a package to a foreign government, listing a return address in Pittsburgh, Pennsylvania, containing a sample of Restricted Data and instructions for establishing a covert relationship to purchase additional Restricted Data. The affidavit also alleges that, thereafter, Toebbe began corresponding via encrypted email with an individual whom he believed to be a representative of the foreign government. The individual was really an undercover FBI agent. Jonathan Toebbe continued this correspondence for several months, which led to an agreement to sell Restricted Data in exchange for thousands of dollars in cryptocurrency.
On June 8, 2021, the undercover agent sent $10,000 in cryptocurrency to Jonathan Toebbe as “good faith” payment. Shortly afterwards, on June 26, Jonathan and Diana Toebbe traveled to a location in West Virginia. There, with Diana Toebbe acting as a lookout, Jonathan Toebbe placed an SD card concealed within half a peanut butter sandwich at a pre-arranged “dead drop” location. After retrieving the SD card, the undercover agent sent Jonathan Toebbe a $20,000 cryptocurrency payment. In return, Jonathan Toebbe emailed the undercover agent a decryption key for the SD Card. A review of the SD card revealed that it contained Restricted Data related to submarine nuclear reactors. On Aug. 28, Jonathan Toebbe made another “dead drop” of an SD card in eastern Virginia, this time concealing the card in a chewing gum package. After making a payment to Toebbe of $70,000 in cryptocurrency, the FBI received a decryption key for the card. It, too, contained Restricted Data related to submarine nuclear reactors. The FBI arrested Jonathan and Diana Toebbe on Oct. 9, after he placed yet another SD card at a pre-arranged “dead drop” at a second location in West Virginia.
Trial Attorneys Matthew J. McKenzie and S. Derek Shugert of the National Security Division's Counterintelligence and Export Control Section, Assistant U.S. Attorneys Jarod J. Douglas and Lara Omps-Botteicher of the Northern District of West Virginia, and Special Assistant U.S. Attorney Jessica Lieber Smolar for the Western District of Pennsylvania are prosecuting the case on behalf of the government. The FBI and the NCIS are investigating the case.
A complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Saturday 9 October 2021
Federal Jury Convicts Russian Man of Visa Fraud and False Statement ChargesRead the Press Release
PORTLAND, Maine—A Russian man was convicted Thursday of conspiring to commit visa fraud, making false statements to a federal law enforcement agency and visa fraud following a two-day jury trial, U.S. Attorney Darcie N. McElwee announced. This was the first jury trial held in the Portland federal court since the onset of the COVID-19 pandemic.
According to court records, Alexander Gormatov, 33, a Russian national, entered the U.S. on a student/work visa in 2009, and later successfully adjusted his status to that of an academic student visa by attending Southern Maine Community College in 2010. In 2011, he met a 17-year-old female U.S. citizen through a Craigslist employment advertisement. Just a few months later, when she reached age 18, he paid her to marry him in his pursuit of a permanent immigration benefit. He then quit school. By November 2012, when he failed to re-enroll at the college, he became unlawfully present in the U.S.
In January 2013, per their agreement, the sham couple made a series of materially false statements on immigration documents that Gormatov later filed seeking a formal adjustment to his immigration status. In April 2013, the couple was interviewed by U.S. Citizenship and Immigration Services in South Portland, during which, per Gormatov’s instruction, the couple falsely claimed to be living as husband and wife. Following the interviews, based on the fraud, Gormatov obtained conditional lawful permanent resident status in the U.S.
In January 2014, Gormatov’s wife gave birth to a child she conceived with her actual live-in boyfriend, but Gormatov’s name was placed on the birth certificate. In March 2015, Gormatov filed a petition in order to remove the conditions of his permanent residence accompanied by a copy of the child’s falsified birth certificate.
In January 2017, after learning he was under investigation, Gormatov departed the U.S. for Russia, and failed to return within one year. In May 2019, to return to the U.S., he falsely represented the paternity of his sham wife’s child on a form filed in Riga, Latvia.
During the trial, the young sham wife testified that Gormatov had told her to “just trust him” because such sham marriages happen all the time and “nobody cares.”
Gormatov faces up to five years in prison for the conspiracy and false statement charges, and up to 10 years in prison for the visa fraud charge. He also faces a fine of up to $250,000 per count and a supervised release term of up to three years. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Cumberland County Sheriff’s Office, Homeland Security Investigations and the U.S. Department of State’s Diplomatic Security Service investigated the case.
Friday 8 October 2021
Winnebago County Man Arrested on Federal Firearm and Drug Trafficking ChargesRead the Press Release
ROCKFORD — A Winnebago County man has been indicted on federal firearm and drug trafficking charges.
XZAVIOR SMITH, 22, of Roscoe, Ill., is charged with possession of a firearm as a previously convicted felon, possession with intent to distribute fentanyl and cocaine, and possession of a firearm in furtherance of a drug trafficking crime. Smith was arrested Thursday.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The Stephenson County Sheriff’s Office, Freeport Police Department, Roscoe Police Department, and Beloit Police Department’s Crime Interdiction Team provided valuable assistance in the investigation. The government is represented by Assistant U.S. Attorney Robert S. Ladd.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The drug possession charge carries a maximum sentence of 20 years in federal prison, while the illegal firearm possession charge carries a maximum sentence of ten years. The charge of possession of a firearm in furtherance of a drug trafficking crime carries a mandatory minimum sentence of five years in prison. If Smith is convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
West Palm Beach Investment Fraudster Guilty of Wire Fraud, Victim Losses in the MillionsRead the Press Release
Miami, Florida – Fifty-four-year-old West Palm Beach, Florida resident Salvatore Renaldi pled guilty this week in South Florida federal district court to orchestrating and running two investment fraud schemes that led victims across the country to collectively lose over $3 million.
Renaldi was the founder and CEO of The Sanctum Group of Companies, Inc., Sanctum Publishing and Marketing, Ltd., and Sanctum Media Group, Inc. (the “Sanctum companies”). During the change of plea hearing before U.S. District Judge Roy K. Altman, Renaldi admitted that he and others used the Sanctum companies to solicit funds from victim investors. To induce people to invest, Renaldi lied to them, promising to use their money to build a profitable business and guaranteeing a solid return on their investment. In addition, Renaldi failed to tell investors that he had a history of violating federal securities laws and that he used most of their money to pay for his personal expenses, make cash withdrawals, pay prior investors, and pay undisclosed commissions and fees. From about 2011 to 2015, Renaldi defrauded approximately 14 Sanctum company investors out of almost $1.5 million.
Renaldi also was associated with Magnum Health Management, Magnum Media Management, and Magnum Media Mining (the “Magnum companies”). During the change of plea hearing, Renaldi admitted that he represented himself to the public as the Magnum companies’ CEO, owner and operator. When soliciting funds for the Magnum companies, Renaldi falsely told investors that he would use their money as working capital and to build diabetes clinics. Instead, Renaldi used almost all the money for his personal use and benefit. From about 2017 to 2019, Renaldi defrauded approximately 14 Magnum company investors out of more than $1.6 million.
Renaldi pled guilty to one count of wire fraud. Judge Altman will sentence Renaldi on January 4, 2022, at 2:00 p.m., in federal district court in Fort Lauderdale. He faces up to 20 years in federal prison.
Juan Antonio Gonzalez, Acting U.S. Attorney for the Southern District of Florida, and George L. Piro, FBI Miami, announced the guilty plea.
This case is prosecuted by Assistant U.S. Attorney Yisel Valdes.
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-80045-Altman/Brannon.
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Ventura County Man Pleads Guilty to Dark Web Narcotics Distribution ConspiracyRead the Press Release
SACRAMENTO, Calif. — Ian Hoffmann, 42, of Bell Canyon, pleaded guilty on Tuesday, Oct. 5, 2021, to conspiracy to distribute and possess with intent to distribute heroin, cocaine, and methamphetamine, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Hoffmann and his co-conspirators sold heroin, cocaine, and methamphetamine using the dark web vendor accounts CALICARTEL and BUXOMBRUNETTE on the dark web Dream marketplace, PLAYGROUND on the Silk Road 3.1 marketplace, and GAMBINOCRIMEFAMILY on the Wall Street Market. Federal agents served a search warrant at Hoffmann’s residence in May 2019, and seized more than 2 kilograms of a mixture or substance containing heroin, more than 7 kilograms of a mixture or substance containing cocaine, and more than 19 kilograms of a mixture or substance containing methamphetamine. Agents also seized a firearm and cryptocurrency as part of their investigation into Hoffman’s narcotics distribution operation.
This case was the product of an investigation by the Northern California Illicit Digital Economy (NCIDE) Task Force, which includes agents from Homeland Security Investigations, the Federal Bureau of Investigation, the United States Postal Inspection Service, the United States Postal Service Office of Inspector General, the Internal Revenue Service - Criminal Investigation, and the Drug Enforcement Administration. The NCIDE Task Force is a federal task force focused on targeting all forms of illicit dark web and cryptocurrency activity in the Eastern District of California and beyond. Assistant U.S. Attorneys Paul Hemesath and Sam Stefanki are prosecuting the case.
Hoffmann is scheduled to be sentenced by U.S. District Judge John A. Mendez on Jan. 11, 2022. Hoffmann faces a maximum statutory penalty of life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
USMM and VPA Pay $8.5 Million to Resolve Overpayment of Medicare Claims for Laboratory and Diagnostic TestingRead the Press Release
DETROIT - U.S. Medical Management, LLC (“USMM”) and VPA, P.C. (“VPA”), providers of home-based healthcare services, have agreed to pay the United States $8.5 million to resolve allegations that USMM and VPA submitted to the Medicare program claims for payment for laboratory and diagnostic testing services performed from January 1, 2010 through December 31, 2015, which were not reasonable and necessary for the diagnosis or treatment of an illness or injury. The United States contends that the payments USMM and VPA received in connection with these claims were overpayments.
“USMM and VPA received millions of dollars from the United States for Medicare claims that were not eligible for reimbursement,” said Acting U.S. Attorney Saima Mohsin for the Eastern District of Michigan. “With this lawsuit and the accompanying resolution, USMM and VPA are being held to account for their improper receipt of Medicare claim reimbursements.”
Under the alternate remedy provision of the False Claims Act, 31 U.S.C. §§ 3729-3733, this settlement resolves allegations that were raised in five lawsuits filed under the qui tam, or whistleblower, provisions of that law. The False Claims Act permits private parties to file suit on behalf of the United States and to share in any recovery. Although the United States has not intervened in any of the False Claims Act allegations, under the alternate remedy provision of that law, the first-to-file whistleblower in this case will receive $1.53 million of the settlement amount.
The matter was handled by Assistant United States Attorney John Spaccarotella from the U.S. Attorney’s Office for the Eastern District of Michigan.
The five qui tam cases are docketed as United States ex rel. Irfan Mahmood v. U.S. Medical Management, LLC, et al., No. 2:10-cv-12022; United States ex rel. Lisa R. Hines v. VPA, P.C. d/b/a Visiting Physicians Association, et al., No. 14-cv-13385; United States ex rel. Muhammad S. Rais, M.D. v. U.S. Medical Management, Inc., et al., No. 2:12-cv-15518; United States ex rel. Pamela Henkels and Margaret Wisniewski v. U.S. Medical Management, LLC, et al., No. 2:14-cv-11944; and United States ex rel. Sian Ghosh v. U.S. Medical Management, LLC, et al., No. 18-10029. The claims resolved by the settlement are allegations only; there has been no determination of liability.
Two Parents Convicted by Jury in College Admissions SchemeRead the Press Release
BOSTON – Two former executives were convicted today by a federal jury in Boston in connection with conspiring to bribe athletic officials to facilitate their children’s admission to the University of Southern California (USC) as purported athletic recruits.
John Wilson, 62, of Lynnfield, Mass., and Gamal Abdelaziz, 64, of Las Vegas, Nev., were convicted of one count of conspiracy to commit mail and wire fraud and honest services mail and wire fraud and one count of conspiracy to commit federal programs bribery. Wilson was also convicted of three counts of wire fraud and honest services wire fraud, two counts of federal programs bribery, and one count of filing a false tax return. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Feb. 16, 2022 for Abdelaziz and Feb. 17, 2022 for Wilson.
In 2013, Wilson agreed to pay William “Rick” Singer $220,000 to facilitate his son’s admission to USC as a purported water polo player. More specifically, in October 2013, Singer sent Wilson a water polo profile for Wilson’s son that included fabricated awards and swim times. After Wilson’s son was accepted to USC, Wilson wired $100,000 to Singer’s sham charity, the Key Worldwide Foundation (KWF), $100,000 to Singer’s company, The Key, and $20,000 directly to Singer. Wilson paid the bribe from a corporate account and deducted it as a business expense. In 2018, Wilson agreed to pay Singer $1.5 million to have his twin daughters admitted to Harvard University and Stanford University as purported sailing recruits.
In 2017, Abdelaziz agreed to pay Singer $300,000 to facilitate the admission of his daughter to USC as a purported basketball recruit, despite the fact that she did not make her high school’s varsity team and did not play basketball at all during her junior and senior years in high school. In a July 2017 email, Singer asked Abdelaziz for an action shot of his daughter playing basketball to be used in an athletic profile for USC. A co-conspirator, Laura Janke, created a phony athletic profile for Abdelaziz’s daughter which included falsified awards and athletic honors. In October 2017, Abdelaziz’s daughter was admitted to USC as a basketball recruit and in March 2018, she was formally accepted and Abdelaziz wired $300,000 to KWF.
Singer and Janke previously pleaded guilty and are awaiting sentencing.
Case information, including the status of each defendant, is available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of conspiracy to commit mail and wire fraud and honest services mail and wire fraud provides for a maximum sentence of 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of conspiracy to commit federal programs bribery provides for a sentence of up to five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of wire fraud and honest services wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of federal programs bribery provides for a sentence of up to 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of filing a false tax return provides for a sentence of up to three years in prison, one year of supervised release and a fine of $100,000. 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; Joleen 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 Stephen E. Frank, Leslie A. Wright, Kristen A. Kearney and Ian Stearns 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.
UPDATE: In May 2023, The First Circuit Court of Appeals vacated the jury conviction of defendant Gamal Abdelaziz and all but one conviction of defendant John Wilson. In June 2023, the government moved to dismiss all criminal charges against defendant Gamal Abdelaziz and four of the five criminal charges against defendant John Wilson.
Two Men Sentenced to Prison for Aggravated Identity TheftRead the Press Release
BOISE – Two men were sentenced to 24 months in federal prison for aggravated identity theft.
According to court records, Atilla Ferenc Orban, a/k/a David Babos, 37, and Hakim Slafti Hannaoui, 33, admitted that they conspired to commit access device fraud. As part of the scheme, the defendants attached electronic devices known as “skimmers” to ATMs. Once installed, the skimmers captured the information stored on the magnetic strips of payment cards inserted into the ATMs. The defendants retrieved the information captured by the skimmers and used equipment to encode the fraudulently obtained payment card information onto the magnetic strips of physical cards. They then used the re-encoded cards to unlawfully acquire money and other goods.
Senior U.S. District Bill R. Wilson presided over the sentencings. Orban and Hannaoui pleaded guilty to the charges on August 24, 2021.
Acting U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the cooperative efforts of the U.S. Secret Service, Idaho State Police, Boise Police Department, Caldwell Police Department, Nampa Police Department, Ada County Sheriff’s Office, Vancouver Police Department and the Federal Bureau of Investigation, which led to charges.
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Two Men Sentenced to 8 Years in Federal Prison for Role in Trafficking FentanylRead the Press Release
Florence, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Fernando Contreras-Herrera, 25, and Cesar Inda-Silva, 25, both from Mexico, were each sentenced to eight years in federal prison after pleading guilty to possession with intent to distribute fentanyl.
Evidence presented to the Court showed that, on January 22, 2021, officers with the Myrtle Beach Police Department intercepted a shipped package with indicators of narcotics. A subsequent search revealed that the shipping box contained an inner box. Inside that box was a locked safe, and inside the safe were three wrapped “bricks” consistent with kilogram quantities of narcotics.
After replacing several of the bricks with “sham” narcotics, law enforcement repackaged the parcel and conducted a controlled delivery of the parcel to its intended address in Myrtle Beach. Contreras-Herrera retrieved the package from the porch of the house and Inda-Silva arrived immediately after that.
Law enforcement then executed a search warrant at the address. Contreras-Herrera and Inda-Silva were located in the living room of the home together with the package which had just been delivered. In the minutes since the delivery, the inner and outer boxes of the package and the safe had been opened, the “bricks” had been removed, and one of the “bricks” had been slit open. The suspected controlled substance intercepted was later confirmed to be just over three kilograms of fentanyl, a powerful synthetic opioid. Further investigation revealed that Contreras-Herrera and Inda-Silva were to receive the fentanyl and deliver it to another individual.
United States District Judge Sherri A. Lydon sentenced Contreras-Herrera and Inda-Silva each to 96 months in federal prison, to be followed by a four-year term of court-ordered supervision. There is no parole in the federal system. During the sentencing hearing, Judge Lydon commented on the dangers of fentanyl, and noted that it was fortunate the fentanyl in this case was now off the streets.
The case was investigated by Homeland Security Investigations, Horry County Police Department, Myrtle Beach Police Department, and the South Carolina Law Enforcement Division.
Assistant United States Attorney Katherine Flynn of the Florence office prosecuted the case. This prosecution was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. 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.
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Tucson Man Sentenced to 10 Years for Child Pornography ChargesRead the Press Release
TUCSON, Ariz. – Robert Henderson, Jr., 59, of Tucson, Arizona, was sentenced yesterday by U.S. District Judge Jennifer G. Zipps to 10 years in prison. Henderson previously pleaded guilty to Distribution of Child Pornography.
Henderson was charged with child pornography offenses on June 26, 2019, after a law enforcement investigation identified him as using a file-sharing network to obtain child sex abuse material in 2018. Upon release from prison, Henderson will be placed on lifetime supervised release with stringent conditions of supervision. He will also be required to register as a sex offender and to complete a sex offender treatment program.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Homeland Security Investigations, Tucson, conducted the investigation in this case. Assistant U.S. Attorney, Carin C. Duryee, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR 19-01675-TUC-JGZ
RELEASE NUMBER: 2021- 068_Henderson# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Three Men Sentenced to Prison for Violent Robbery of a Minneapolis Jewelry StoreRead the Press Release
ST. PAUL, Minn. – Three Minneapolis men have been sentenced to prison for violently robbing a south Minneapolis jewelry store.
According to court documents, on May 16, 2019, Demilo Demontez Martin, 30, Dierre Jameson Martin, 32, and Corey Roscell Chester, 29, robbed the Joyeria Ecuador jewelry store on Lake Street in Minneapolis. Dierre Martin smashed the jewelry cases and stole jewelry while Chester and Demilo Martin restrained and assaulted the store owner. The defendants stole between $50,000 and $60,000 worth of jewelry.
The defendants each pleaded guilty to one count of interference with commerce by robbery (Hobbs Act). Demilo Martin was sentenced to 100 months in prison, Dierre Martin was sentenced to 80 months in prison, and Chester was sentenced to 100 months in prison. All three defendants were also ordered to pay $46,755.63 in restitution to the victim.
The Hobbs Act, passed by Congress in 1946, allows federal prosecutors to prosecute individuals who commit armed robberies of businesses engaged in interstate commerce.
Acting U.S. Attorney W. Anders Folk for the District of Minnesota made the announcement after U.S. District Judge Eric C. Tostrud sentenced the defendant.
This case was 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 FBI, the Minneapolis Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case was prosecuted by Assistant U.S. Attorney Thomas Calhoun-Lopez.
Three Men Convicted of Drug Trafficking and Firearms OffensesRead the Press Release
TRENTON, N.J. – A federal jury today found three men guilty of various narcotics and firearms offenses for their roles in a Trenton-based drug trafficking conspiracy, Acting U.S. Attorney Rachael A. Honig announced.
Jerome Roberts, 51, of Delran, New Jersey, was convicted of one count of conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin and one count of distribution and possession with intent to distribute 100 grams or more of heroin
Timothy Wimbush, 31, of Trenton, was convicted of one count each of conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin; possession with intent to distribute heroin; possession of firearms in furtherance of a drug-trafficking crime; and being a felon in possession of firearms and ammunition.
Taquan Williams, 24, of Trenton, was convicted of being a felon in possession of firearms and ammunition. The jury found Williams not guilty of possession with intent to distribute heroin and possession of firearms in furtherance of a drug-trafficking crime.
The jury deliberated for approximately 2½ days before returning the verdicts following a three-week trial before Chief U.S. District Judge Freda L. Wolfson in Trenton federal court.
In October 2018, Roberts, Wimbush, Williams, and 23 other individuals were charged by criminal complaint with conspiracy to distribute heroin; Wimbush, Williams, and others also were charged with firearms offenses. On Feb. 27, 2020, a grand jury returned a 10-count third superseding indictment charging Roberts, Wimbush, Williams, and four other defendants with conspiracy to distribute one kilogram or more of heroin and various other drug and firearms offenses. Roberts, Wimbush, and Williams are the last of the 26 defendants charged in the original criminal complaint to be convicted of one or more federal criminal offenses. The other 23 defendants have pleaded guilty.
According to documents filed in this case and the evidence at trial:
In 2018, Roberts, Wimbush, and others participated in a large drug trafficking conspiracy that operated in various areas of Trenton, and which sought to profit from the distribution of heroin. Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, controlled purchases of heroin, the use of confidential sources of information, and other investigative techniques, law enforcement learned that defendant Jerome Roberts and conspirator Jakir Taylor obtained regular supplies of hundreds of “bricks” of heroin from conspirator David Antonio, whom they referred to as “Pop” and “Papi,” and that they distributed those supplies of heroin to other dealers and end users in and around Trenton. In August and September 2018, Roberts and Taylor agreed to obtain a massive supply of heroin of more than 1,400 “bricks,” which Roberts referred to as “the motherload.” On Oct. 25, 2018, law enforcement executed a search of supplier Antonio’s residence in Trenton and recovered nearly 1½ kilograms of heroin and a substantial amount of packaging paraphernalia.
On Sept. 6, 2018, law enforcement officers stopped a green 2002 Volkswagen Passat after observing Williams, a previously convicted felon, enter the vehicle carrying a yellow plastic bag believed to contain contraband. The Passat was driven by, and registered to, Wimbush, who also was a previously convicted felon. During a subsequent search of the vehicle, law enforcement officers recovered from a secret trap compartment installed under the rear passenger’s seat approximately 57 bricks of heroin, four semiautomatic firearms – including a .223 caliber assault rifle linked with a shooting in Trenton four days earlier – hundreds of rounds of ammunition, and the yellow plastic bag that defendant Williams had carried into the vehicle moments earlier. Law enforcement officers discovered in the yellow bag two boxes of .45 caliber ammunition and three .45 caliber firearm magazines, which matched one of the semiautomatic firearms also found in the trap compartment. Law enforcement officers identified the heroin as having been supplied by Taylor and another member of the conspiracy.
Roberts faces a combined statutory mandatory minimum sentence of 10 years in prison and a potential maximum sentence of life in prison, and a maximum fine of $10 million. Wimbush faces a combined statutory mandatory minimum sentence of 15 years in prison and a potential maximum sentence of life in prison, and a maximum fine of $5 million. Williams faces a statutory a maximum term of imprisonment of 10 years, and a maximum fine of $250,000.
Acting U.S. Attorney Honig credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, Trenton Field Office, under the direction of Special Agent in Charge Jeffrey L. Matthews; officers of the Trenton Police Department, under the direction of Police Director Steve Wilson; officers of the Princeton Police Department, under the direction of Chief of Police Christopher Morgan; officers of the Ewing Police Department, under the direction of Chief of Police Albert Rhodes; officers of the Burlington Township Police Department, under the direction of Acting Public Safety Director James Sullivan; and detectives of the Burlington County Prosecutor’s Office, under the direction of Prosecutor Scott A. Coffina, with the investigation leading to today’s charges. She also thanked officers of the New Jersey State Police, under the direction of Superintendent Col. Patrick J. Callahan; detectives of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo Onofri; officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler; and members of the New Jersey State Board of Parole for their assistance in the investigation and prosecution of the case.
The government is represented by Attorney-in-Charge J. Brendan Day and Assistant U.S. Attorney Alexander Ramey of the U.S. Attorney’s Office’s Criminal Division in Trenton.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Greater Trenton Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies to enhance the identification, apprehension, and prosecution of individuals involved in gang-related activities, violent crime, and drug distribution in and around the greater Trenton area. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
The City of Knoxville Receives $200,000 in Federal Funding for Community Policing Development ProgramsRead the Press Release
KNOXVILLE, Tenn. – The City of Knoxville will receive $200,000 from the Department of Justice’s Office of Community Oriented Policing (COPS) that will support practices and strategies for creative approaches to preventing crime and de-escalation training, announced Acting United States Attorney Francis M. Hamilton III.
The Department of Justice’s Office of Community Oriented Policing Services (COPS Office) has announced over $33 million in funding to advance the practice of community policing in law enforcement. Community Policing Development (CPD) program funds are used to support promising practices through the development and testing of innovative strategies; building knowledge about effective practices and outcomes; and supporting new, creative approaches to preventing crime and promoting safe communities. Approximately $13 million will support the creation and delivery of national level de-escalation training efforts, as well as state and local law enforcement agency efforts to build and maintain their officers’ de-escalation proficiency.
The funding awarded to the City of Knoxville will help enhance the Knoxville Police Department’s capacity to implement, evaluate, and monitor de-escalation techniques. De-escalation techniques have the potential to help prevent the need for use of force in many police and community encounters.
The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide. The only Department of Justice agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products and training and technical assistance. Through the years, the COPS Office, has become the go-to organization for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served. The COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of more than 134,000 officers. More information on all the awards announced can be found on the COPS Office website at https://cops.usdoj.gov/cpd-award.
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St. Louis Man Pleads Guilty to Drug and Gun OffensesRead the Press Release
EAST ST. LOUIS, Ill. - Deandre Young, 42, of Saint Louis, Missouri, pled guilty to one count of
aiding and abetting co-defendant Lamondra Beckley’s possession with intent to
distribute methamphetamine and one count of possession of a firearm in furtherance of a
drug trafficking offense on Thursday, October 7 in federal court in East St. Louis, Illinois.
Young was charged for the offenses on April 6, 2021. Young acknowledged that on March 11, 2021,
he helped arrange the sale of approximately 114 grams of methamphetamine by his co-defendant
Lamondra Beckley to a customer at a gas station in Fairview Heights, Illinois. Young
was in possession of a firearm when agents from the Drug Enforcement Administration arrested him.Sentencing is scheduled on February 9, 2022. Under federal law, Young faces a
mandatory minimum of 5 years imprisonment for these offenses.This matter was investigated by the Drug Enforcement Administration.
Assistant U.S. Attorney Daniel T. Kapsak is prosecuting the case.
Six South Carolina Residents Charged in Interstate Gun Trafficking ConspiracyRead the Press Release
NEWARK, N.J. – Six South Carolina residents have been charged with conspiring to illegally sell firearms, including nine handguns, in and around New Jersey, Acting U.S. Attorney Rachael A. Honig announced.
Kendell McFadden, 28, Laronmir McFadden, 27, Savon Harrison, 25, Dontavian Jones, 24, Donjanea McClary, 24, and Michael Gamble, 31, all of Florence, South Carolina, are each charged by amended criminal complaint with one count of conspiracy to engage in the business of unlicensed firearms dealing. Kendell McFadden is also charged with one count of possession of firearms and ammunition by a convicted felon.
Gamble made his initial appearance today before U.S. Magistrate Judge Jessica S. Allen and was released on $100,000 unsecured bond.
McClary had her initial appearance before Judge Waldor by videoconference on Sept. 28, 2021 Kendell McFadden, Laronmir McFadden, Harrison, and Jones, appeared by video conference before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court on Sept. 27, 2021. All of these defendants were released on $100,000 unsecured bonds.
According to documents filed in this case and statements made in court:
From August 2019 through September 2021, Kendell McFadden, Laronmir McFadden, Harrison, Jones, McClary, and Gamble and others engaged in a conspiracy to traffic firearms from South Carolina to New Jersey. Kendell McFadden, a convicted felon, and Laronmir McFadden, directed Harrison, McClary and other straw purchasers to purchase firearms in or around Florence, South Carolina, and then transported and sold those firearms to individuals in and around Paterson, New Jersey, and elsewhere.
On Sept. 26, 2021, law enforcement intercepted a vehicle containing Kendell McFadden, Laronmir McFadden, Jones and Harrison traveling from South Carolina to New Jersey and recovered nine firearms. Two of the firearms recovered were purchased by McClary in South Carolina.
On July 9, 2021, Harrison and Gamble purchased approximately five firearms in South Carolina using Gamble’s debit card. One of the firearms purchased using Gamble’s card was recovered approximately four days later in Paterson. Another firearm purchased using Gamble’s card was recovered in Paterson last week. And records obtained from accounts associated with Kendell McFadden showed that Kendell McFadden had transmitted multiple payments to Gamble in and around July 9, 2021.
The count of conspiracy to engage in the business of unlicensed firearms dealing carries a maximum potential penalty of five years in prison and a $250,000 fine. The count of possession of a firearm by a felon carries a maximum potential penalty of 10 years in prison and a $250,000 fine.
In July 2021 the U.S. Department of Justice launched five cross-jurisdictional strike forces to help reduce gun violence by disrupting illegal firearms trafficking in key regions across the country. Leveraging existing resources, the regional strike forces will better ensure sustained and focused coordination across jurisdictions and help stem the supply of illegally trafficked firearms from source cities, through other communities, and into five key market regions: New York, Chicago, Los Angeles, the San Francisco Bay Area/Sacramento Region and Washington, D.C. According to gun trace data, a significant number of firearms recovered in the New York/northern New Jersey area originate from outside the area. The new strike force will help ensure sustained and focused coordination between law enforcement and prosecutors in the New York/northern New Jersey area with their counterparts in those other locations.
Acting U.S. Attorney Honig credited special agents and task force officers of the ATF, under the direction of Special Agent in Charge Jeffrey L. Matthews, Newark Division, and Special Agent in Charge Vince Pallozzi, Charlotte, South Carolina Division; and the New Jersey State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Sophie E. Reiter of the U.S. Attorney’s Office Cybercrime Unit.
The charges and allegations contained in the amended complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Sheldon Man Pleads Guilty to Conspiring to Distribute Methamphetamine and Possessing a GunRead the Press Release
A Sheldon man who sold large amounts of methamphetamine he received through the mail pled guilty on October 7, 2021, in federal court in Sioux City.
Scott Demers, age 39, from Sheldon, Iowa was convicted of conspiracy to distribute methamphetamine and possession of a firearm in furtherance of drug trafficking crimes. Demers admitted to receiving large quantities of methamphetamine through the mail and redistributing it. Demers also admitted to possessing a firearm in furtherance of trafficking methamphetamine.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Demers remains in custody of the United States Marshal pending sentencing. For conspiracy to distribute methamphetamine, Demers faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and 5 years up to life of supervised release following any imprisonment. For possessing a firearm in furtherance of a drug trafficking crime, Demers faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of life imprisonment, a $250,000 fine, and up to 5 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Ron Timmons and investigated by the United States Postal Inspection Service and the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Woodbury County Sheriff's Office; the Sioux City Police Department; the South Sioux City Police Department; and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4019.
Follow us on Twitter @USAO_NDIA.
Scott Phillips Indicted for Unlawfully Possessing a FirearmRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Scott Phillips, 36, of Mechanicville, New York, was arraigned today after having been indicted by the grand jury for unlawfully possessing a firearm as a convicted felon. Phillips pleaded not guilty at today’s hearing. U.S. Magistrate Judge Kevin J. Doyle ordered Phillips detained pending further proceedings.
According to court records, Phillips possessed a loaded pistol in Winooski, Vermont, on July 16, 2021. Officers encountered Phillips that day when responding to a call about a suspicious vehicle. Phillips attempted to drive away when a police officer approached him, dragging the officer a short distance. A search of Phillips’ car yielded a pistol, ammunition, and suspected controlled substances. Phillips is prohibited from possessing firearms under federal law due to his criminal record.
If convicted of the charge alleged in the federal indictment, Phillips faces a maximum sentence of ten years of imprisonment and a $250,000 fine. The actual sentence however, would be determined by the Court with guidance from the advisory Federal Sentencing Guidelines. The Acting United States Attorney emphasizes that the charge in the indictment is merely an accusation, and that the defendant is presumed innocent unless and until he is proven guilty.
The United States is represented in this matter by Assistant U.S. Attorney Spencer Willig. Federal Public Defender Michael L. Desautels and Assistant Federal Public Defender Sara M. Puls represent the defendant.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian and other law enforcement partners: the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; and the Winooski Police Department. For more information about Project Guardian, please see http://www.justice.gov/projectguardian/
Ringleader of Gloucester City Drug Ring and His Son Sentenced for Trafficking Prescription Pills and Engaging in SNAP FraudRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man was sentenced today to a federal prison term for leading a conspiracy to distribute and sell oxycodone, Adderall, and Xanax while also defrauding the federal Supplemental Nutrition Assistance Program (SNAP), and his son was sentenced for conspiring with his father to distribute Adderall, distributing oxycodone, and defrauding the SNAP program by using unlawfully obtained benefits sold to him by his father, Acting U.S. Attorney Rachael A. Honig announced.
Rocco DePoder, 68, of Gloucester City, New Jersey, was sentenced to 70 months in prison. His son, Michael DePoder, 41, also of Gloucester City, was sentenced to five years of probation, with 14 months of home detention with location monitoring. Rocco DePoder previously pleaded guilty before U.S. District Judge Renée Marie Bumb to an information charging him with conspiring to distribute and possess with intent to distribute oxycodone, distributing a quantity of oxycodone, and unlawfully acquiring SNAP benefits in exchange for controlled substances and unlawfully using and possessing those and other SNAP benefits. Michael DePoder previously pleaded guilty by videoconference before Judge Bumb to an information charging him with conspiring to distribute and possess with intent to distribute Adderall, distributing oxycodone, and unlawfully acquiring and using SNAP benefits. Judge Bumb imposed both sentences today in Camden federal court.
According to documents filed in this case and statements made in court:
Rocco DePoder admitted that on multiple occasions from June 2019 to March 2020, he worked with Erick Bell and others to sell oxycodone in New Jersey. Rocco DePoder obtained 60 80 mg. oxycodone pills for $25 per pill from Bell on February 3, 2020, with the intention of distributing the pills to other people. He also admitted to purchasing resale quantities of oxycodone, Adderall, and Xanax from conspirators and reselling the pills to others, serving as a leader of criminal activity in that conspiracy. Rocco DePoder admitted to selling oxycodone, Adderall, and Xanax pills to another person in exchange for a total of $8,374 in SNAP benefits, which were on Electronic Benefit Transfer (EBT) cards, and then personally using some of those SNAP benefits and selling and giving EBT cards to others so they could unlawfully use the SNAP benefits. SNAP, formerly known as the Food Stamp program, is administered by the U.S. Department of Agriculture. EBT cards are similar to debit cards and are used to make food purchases with SNAP benefits – when an EBT card is swiped at a food store authorized for participation in the SNAP program, the amount of the purchase is deducted electronically from the SNAP benefits reserved for the customer and the purchase amount is credited to the retailer’s designated bank account.
Michael DePoder admitted that on multiple occasions from December 2019 to March 2020, he distributed Adderall to his father, Rocco DePoder, as part of a drug distribution conspiracy. Michael DePoder also independently sold oxycodone pills to an associate on multiple occasions. He also admitted to unlawfully acquiring SNAP benefits from his father and unlawfully using and possessing those and other SNAP benefits totaling $2,676.
In addition to the prison terms, Judge Bumb sentenced Rocco DePoder three years of supervised release, ordered him to pay restitution of $8,374 and forfeit cellphones, a police badge and $6,598 in case. She ordered Michael DePoder pay $2,676 in restitution.
Nine other defendants – Marcus Rushworth, 48of Gloucester City; Alfred Kee, Jr., 52, of Blackwood, New Jersey; Robert Pratt, 58, of Myrtle Beach, South Carolina, formerly of Blackwood; Eric Bell, 50, Steven Walker, 50, William Summers, 69, and Neal Thompson, 58, all of Camden; Antwan Tucker, 51, of Woodbury, New Jersey; and Anwar Abdullah, 32, of Pennsauken, New Jersey – previously pleaded guilty before Judge Bumb to informations charging them with drug trafficking offenses involving the distribution of prescription drugs. They are all awaiting sentencing. Kenneth Rushworth, 60, of Gloucester City, was previously sentenced to 1 year in federal prison, and Alexander Siaca, 56, of Camden was sentenced to 3 years’ probation, including 3 months of home detention with location monitoring. Charges remain pending against Maurice Williams, 40, and Lolita Paynter, 56, both of Camden, and Holly Clark, 40, of West Deptford, New Jersey.
Acting U.S. Attorney Honig credited special agents of the FBI Philadelphia Division, South Jersey Resident Agency, under the direction of Acting Special Agent in Charge Bradley S. Benavides; the U.S. Department of Health and Human Services-Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; the Camden County Sheriff's Office, under the direction of Sheriff Gilbert L. Wilson; the New Jersey Office of Homeland Security and Preparedness, under the direction of Acting Director Laurie R. Doran; the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; and the U.S. Department of Agriculture-Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins, with the investigation leading to today’s sentencings.
She also thanked the FBI Newark Division, New Jersey State Police, Camden County Prosecutor’s Office, and U.S. Drug Enforcement Administration for their assistance.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the Special Prosecution Division in Newark.
Pittsfield Man Pleads Guilty to Distribution of Child Sexual Abuse MaterialRead the Press Release
CONCORD - Charles Paul Jansen, 35, of Pittsfield, pleaded guilty in federal court to distribution of child pornography, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on April 11, 2020, an undercover officer (UC) was conducting an investigation on Kik in an attempt to identify users who were using the platform to exchange child sexual abuse material. Kik is a social media platform that facilitates communication by users over the internet. The UC identified an individual who posted an image to a Kik group devoted to the exchange of child sexual abuse material. Further investigation indicated identified Jansen as the individual who posted the image. A search warrant was executed at his residence in Pittsfield. During a voluntary interview, Jansen admitted using Kik and other online applications to view, download, and store pornographic images, some of which contained child sexual abuse material.
Jansen is scheduled to be sentenced on January 18, 2022.
“Protecting innocent children is one of the foremost duties of law enforcement,” said Acting U.S. Attorney Farley. “As part of our effort to fulfill this duty, the law enforcement community is committed to identifying and prosecuting those who engage in child pornography crimes. Those who distribute these horrific images are further victimizing innocent victims of child sexual abuse. As this case demonstrates, such unlawful conduct will not be tolerated in New Hampshire.”
“Simply put, Charles Jansen is a predator who admitted today to sexually exploiting children by distributing and exchanging their images online for his own gratification,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “What he did is despicable, and the FBI and our partners won’t ever stop fighting to protect children and making sure their abusers are held accountable.”
This matter was investigated by the Federal Bureau of Investigation and the Pittsfield Police Department. The case is being prosecuted by Assistant U.S. Attorney Kasey Weiland.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Peoria Man Pleads Guilty to Stealing Guns from a Federally Licensed Firearms Dealer in Tazewell CountyRead the Press Release
PEORIA, Ill. – Zabian Hatcher, 21, of the 2600 block of Montana Ave, in Peoria, Illinois, pleaded guilty today to charges including conspiring to steal guns from a federal firearms licensee, burglary of a federal firearms licensee, possession of stolen firearms, and possession of firearms by a felon. Sentencing has been scheduled for February 10, 2022.
In court today, before U.S. District Judge James Shadid, Hatcher admitted his involvement in the theft of nine firearms – including a Colt 9mm AR15 rifle equipped with a high- capacity magazine – during the burglary of a gun store in fall 2020.
During the change-of-plea hearing, the government stated that on October 29, 2020, at approximately 2 a.m., Creve Coeur police officers were dispatched to a gun store known as “Thompson Trading Company,” after a window was shattered during a break-in that was captured on store security camera footage. Six individuals participated in the burglary, three of whom were video-recorded as they stole the firearms and three others who remained outside the store.
The government stated that the individuals then fled from an East Peoria police officer in a getaway car until the car struck a curb and sustained damage. Six of the occupants fled, but a seventh person, the driver, stayed in the vehicle and was taken into custody. Two firearms stolen from “Thompson Trading Company” were recovered and two additional firearms from the burglary were found in a nearby driveway. An identification card for Zabian Hatcher was found in the car.
The government noted that shortly after investigators discovered that an Uber driver had picked up five of the six men involved in the burglary after they abandoned the get-away car and dropped them off at residences in North Peoria.
According to the government’s statements in court, Hatcher subsequently acknowledged to investigators that he had participated in the burglary by entering “Thompson Trading Company” and stealing firearms. At the time of the burglary and possession of the guns, Hatcher had been previously convicted of a crime punishable by more than one year in prison.
Hatcher remains in custody of the U.S. Marshals Service pending sentencing.
Three others charged in the conspiracy – Tyruis Bramlett, Deondra Proctor, and Devin Price – have also pleaded guilty. All have either been sentenced or have sentencing hearings scheduled. Charges against a fifth individual, Jaquon Timothy, remain pending, and members of the public are reminded that an indictment is merely an accusation and a defendant is presumed innocent unless proven guilty.
Agencies participating in the investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the East Peoria Police Department; the Creve Coeur Police Department; and the Peoria Police Department. Assistant U.S. Attorney Ronald L. Hanna is representing the government in the prosecution.
For the offense of conspiracy to steal from a licensed firearms dealer, the statutory penalty is up to five years in prison, a fine of up to $250,000, and three years of supervised release following imprisonment.
The offenses of stealing from a licensed firearms dealer, possession of stolen firearms, and possession of a firearm by a felon each carry a statutory penalty of up to ten years in prison, a fine of up to $250,000, and three years of supervised release following imprisonment.