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Wednesday 29 September 2021
Individual Pleads Guilty to Murder in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Neil Shai-Cameron Lewis, age 26, entered a guilty plea to one count of Murder (Second Degree) in Indian Country.
The Indictment alleged that the crime occurred on or about March 21, 2020, at a Muscogee (Creek) Nation Low Rent Housing Edition located in Okmulgee County, Oklahoma. The defendant was homeless and staying with someone in the complex, and during the course of hours, a group of men drank and socialized in an apartment in the complex. They drank to excess and became intoxicated, and the defendant started to become argumentative and aggressive toward the other drinkers. The defendant then struck one of the men outside of the apartment, and the man was injured enough that EMS and the police were summoned. After attending to the injured man, the police knocked on the door to the apartment where the defendant and the other men had been drinking. Eventually, the defendant answered the door with blood all over his person, and the police discovered the victim, Deslin Gouge, who had been beaten severely and was lying on the floor. It appeared that the television set and a coat rack were used as weapons to inflict blunt force trauma on the victim. The victim subsequently died, and while in the county jail the defendant admitted to another inmate that he was a killer.
The charges arose from an investigation by the Muscogee Creek Nation Lighthorse Police and the Federal Bureau of Investigation.
The Honorable Kimberley West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant U.S. Attorney George Gialketsis represented the United States.
Individual Pleads Guilty to Coercion and Enticement of A MinorRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Santiago “Jimmy” Perez III, age 40, entered a guilty plea to one count of Coercion and Enticement of a Minor, in violation of 18 United States Code Section 2422(b), punishable by a term of imprisonment of at least 10 years, a fine of up to $250,000.00, or both, a term of supervised release of at least 5 years, and a special assessment fee in the amount of $100.00.
The Indictment charged the defendant with crimes stemming from an incident occurring on or about May 3, 2019, in which the defendant visited the school of the victim, who was eleven years old at that time. The defendant removed the victim from school without the parents’ knowledge or consent, and the defendant took the victim to his residence in Westville, Oklahoma, which is in Adair County. Once in the home, the defendant attempted to sexually abuse the victim.
The charges arose from an investigation by the Adair County Sheriff’s Office, the Oklahoma State Bureau of Investigation, and the Federal Bureau of Investigation.
The Honorable Jodi Dishman, U.S. District Judge in the United States District Court for the Western District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report.
Assistant U.S. Attorney Anthony Marek represented the United States.
Individual Pleads Guilty to Child Neglect and Sexual Abuse in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Henry Charles Littlebear Redhat, age 29, entered a guilty plea to one count of child neglect, in violation of 18 United States Code Sections 1151, 1153, 2, and 21 Oklahoma Statute Section 843.5(C), punishable by a term of imprisonment of up to life imprisonment, and/or a fine of up to $250,000.00, a term of supervised release determined by the court, and a special assessment fee in the amount of $100.00, and one count of sexual abuse in Indian Country, in violation of 18 United States Code Sections 2242(2), 2246(2)(A), 2, 1151, and 1153, punishable by a term of imprisonment of up to life imprisonment, and/or a fine of up to $250,000.00, a term of supervised release determined by the court, and a special assessment fee in the amount of $100.00.
The Indictment alleged that the crimes occurred on or about February 26, 2020, at a residence in Ardmore, Oklahoma. Defendant Redhat engaged in sexual acts with a female victim who was unconscious and physically incapable of declining participation in such sex acts. A three-old child was awake and present during these events and Redhat willfully and maliciously failed to protect the child from exposure to the illicit sexual activity and the possession of marijuana.
The charges arose from an investigation by the Ardmore Police and the Federal Bureau of Investigation.
The Honorable Kimberley West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant U.S. Attorney Edith Singer represented the United States.
Individual Pleads Guilty to Child NeglectRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Brooke Lynn Davidson, age 29, entered a guilty plea to one count of child neglect, in violation of 18 United States Code Sections 1151, 1153, 2, and 21 Oklahoma Statute Section 843.5(C), punishable by a term of imprisonment of up to life imprisonment, and/or a fine of up to $250,000.00, a term of supervised release determined by the court, and a special assessment fee in the amount of $100.00.
The Indictment alleged that the crime occurred on or about February 26, 2020, at a residence in Ardmore, Oklahoma. Defendant willfully and maliciously failed to protect a child from exposure to illicit sexual activity and the possession of marijuana.
The charges arose from an investigation by the Ardmore Police Department and the Federal Bureau of Investigation.
The Honorable Kimberley West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant U.S. Attorney Edith Singer represented the United States.
Houston Man Guilty of Trafficking Fentanyl through Eastern District of TexasRead the Press Release
BEAUMONT, Texas – A Houston man has pleaded guilty to drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Jorge Sayon, Jr., 38, pleaded guilty to conspiracy to possess 400 grams or more of fentanyl today before U.S. Magistrate Judge Zack Hawthorn.
“Fentanyl is among the deadliest drugs that America has ever encountered. Even a small dosage can greatly increase the user’s chance of overdose or death. Simply put, there is no safe amount of fentanyl,” said Acting U.S. Attorney Nicholas J. Ganjei. “Taking these drugs off the street undoubtedly saved lives, and we are grateful to our law enforcement partners for their continued vigilance.”
According to information presented in court, since at least May 2017, Ruben Flores Pulido, Ivan Castano-Aguirre, and Javier Hernandez, supervised, managed and controlled a drug trafficking organization of more than five people that distributed cocaine and fentanyl and laundered narcotics proceeds in Houston, Texas, Southeast Texas, Atlanta, Georgia, Chicago, Illinois, and Monterrey, Mexico.
On June 26, 2018, agents intercepted a call where Flores told Castano-Aguirre that Jorge Sayon had picked up illegal narcotics and was traveling back to Houston. Agents relayed this information to Texas DPS who were able to locate the Sayon traveling southbound on Interstate 45 through Montgomery County. During a subsequent traffic stop of Sayon, DPS Troopers located two bags that contained approximately 2 kilograms of cocaine and 16.5 kilograms of fentanyl, 11.5 kilograms of which were in pill form.
Sayon was indicted by a federal grand jury on June 3, 2020. He faces up to life in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case is being investigated by the U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Christopher Rapp.
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Holbrook Man Pleads Guilty to Cocaine TraffickingRead the Press Release
BOSTON – A Holbrook man pleaded guilty yesterday to his role in a cocaine trafficking conspiracy.
Andre Echevarria, 41, of Holbrook, pleaded guilty to conspiracy to distribute and to possess with intent to distribute cocaine. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Feb. 1, 2022.
Echevarria was charged along with 24 others as part of Operation Snowfall. According to the charging documents, beginning in November 2018, law enforcement investigated drug trafficking activities by Boston-based street gang members and associates in the Commonwealth Development in Brighton, formerly known as Fidelis Way, a multi-apartment public housing development. It is alleged that the defendants, through their drug trafficking activities, assumed control over multiple apartments, where they stored, cooked, packaged and sold drugs. As a result, their activities caused a blight of the development and reduced the quality of life of the other residents.
The investigation also targeted large-scale drug suppliers and their associates. It is alleged that the targets continued to distribute cocaine and cocaine base throughout the COVID-19 pandemic and shutdown.
Echevarria was identified as a customer for co-defendants and wholesale drug suppliers Winston McGhee and, allegedly, Derek Hart. Over the course of the investigation, McGhee and, allegedly, Hart provided quantities of cocaine to Echevarria for purposes of drug trafficking. In June 2021, McGhee was sentenced by Judge Stearns to 115 months in prison. Hart has not yet been apprehended and remains a fugitive.
Echevarria is the eighth defendant to plead guilty in the case. The 17 remaining defendants are pending trial.
The charge of conspiracy to distribute and possession with intent to distribute cocaine provides for a sentence of up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of up to $1 million. 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; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Douglas Bartlett, Acting U.S. Marshal for the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Boston Police Acting Commissioner Gregory Long made the announcement. Assistance with the investigation was provided by the Braintree, Cambridge, Canton, Randolph and Weymouth Police Departments; the Suffolk, Norfolk and Bristol County District Attorneys’ Offices; and the Suffolk, Plymouth and Norfolk County Sheriffs’ Office. Assistant U.S. Attorneys Kaitlin R. O’Donnell and Timothy E. Moran of Mendell’s Organized Crime & Gang Unit are prosecuting the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. 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. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Guilty Verdict in 77-Kilogram Cocaine ConspiracyRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that a federal jury convicted a Bear, Delaware man on Monday on charges of conspiracy to distribute five kilograms or more of cocaine and possession with intent to distribute marijuana. The defendant was acquitted on two related charges. U.S. District Judge Leonard P. Stark accepted the verdict.
According to court records and evidence presented at trial, Omar Morales Colon, age 44, imported 77 kilograms of cocaine into Delaware from California. The cocaine was smuggled inside four-foot-tall oxygen tanks. Colon was arrested shortly after giving his cocaine supplier $382,045 in cash in a hotel parking lot in Newark, Delaware. The Drug Enforcement Administration (DEA) also discovered a secret underground bunker beneath Colon’s residence, accessed by a tunnel behind a false fireplace, in which Colon hid a marijuana grow operation.
Colon and his wife, Shakira Martinez, have also been charged with various money laundering offenses. A trial date for the money laundering charges has not yet been set.
U.S. Attorney Weiss commented on the case, “The defendant was a sophisticated drug trafficker who conspired with others, including members of the Sinaloa cartel, to bring vast amounts of cocaine into Delaware. The DEA’s investigation led to the seizure of 17 kilograms of cocaine, pounds of marijuana, nearly $1 million in cash, and the conviction of a major drug trafficker. My office will continue working with our law enforcement partners to hold accountable those who profit from illegal drug operations.”
Colon faces a mandatory minimum of ten years in prison when sentenced. Judge Stark will determine the defendant’s sentence, after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorneys Jennifer K. Welsh and Whitney C. Cloud are prosecuting the case. This case was investigated by the DEA Philadelphia Division.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 1:17-cr-00047-LPS.
Grand Rapids Man Sentenced to Five Years, $1.6 Million in Restitution for ArsonRead the Press Release
GRAND RAPIDS, MICHIGAN —U.S. Attorney Andrew Birge announced that today Kevin Daniel Baker, of Grand Rapids, Michigan, was sentenced to 60 months’ imprisonment, followed by two years’ supervised release, by U.S. District Judge Janet T. Neff.
Mr. Baker admitted to breaking into Austin Jordan Engines, an automotive repair business located in Wyoming, Michigan, to find items that he could steal and sell to support his drug addiction. To conceal the evidence of his burglary, Mr. Baker set the business on fire and then drove away in a stolen car packed with stolen goods. The next day, Mr. Baker drove the stolen car to a local business and attempted to cash checks that he had stolen from Austin Jordan Engines. A suspicious employee called law enforcement and Mr. Baker was quickly placed under arrest.
Judge Neff commented that Mr. Baker “was extremely lucky no one was injured or killed” because of his arson. The blaze severely damaged Austin Jordan Engines, resulting in over $1.6 million dollars of loss and damages, which Judge Neff ordered Mr. Baker to pay back as a part of his sentence.
“Setting a fire to conceal evidence of another crime is extremely dangerous” commented U.S. Attorney Andrew Birge. “Arson is an inherently violent act that puts many of our community members at risk, including the firefighters who respond to the scene. With today’s sentence, Mr. Baker is held accountable for his actions.”
“Our partnerships with the U.S. Attorney’s Office and our State and local counterparts, along with our considerable fire investigative resources, ensures those responsible for violent crimes like arson are apprehended and prosecuted,” said Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Acting Special Agent in Charge Keith Krolczyk.
This case was investigated by the ATF and Wyoming Fire Department and was prosecuted by Assistant U.S. Attorney Erin K. Lane.
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Goffstown Man Sentenced to 78 Months for Transportation and Possession of Child Sexual Abuse MaterialRead the Press Release
CONCORD - Timothy P. Diggins, 60, of Goffstown, was sentenced on Tuesday to 78 months in federal prison for transportation and possession of child sexual abuse material, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, Microsoft OneDrive is an online cloud-based storage service used to store and share digital files, images and/or video. On or about January 1, 2019, Microsoft’s automated system detected potential child exploitation material on an account associated with an IP address located at Diggins’ Goffstown home. The matter was referred to law enforcement for investigation.
On September 18, 2019, investigators conducted a consensual interview with Diggins at his home. Diggins confirmed he lived alone and admitted to using the internet to view child sexual abuse material. Investigators subsequently obtained a search warrant for Diggins’ residence and seized cellular phones, computer equipment and various electronic media for forensic examination. The examination revealed that Diggins downloaded child sexual abuse material from the internet and saved his collection of over 1,000 of the images on his computer equipment and electronic media.
“Protecting children from abuse is one of the highest priorities of law enforcement,” said Acting U.S. Attorney Farley. “Criminals who possess or transport child pornography are furthering the abuse of the innocent victims who appear in these images. As part of our effort to protect children, we work closely with our law enforcement partners to identify and prosecute those who commit offenses involving images of child sexual abuse.”
"The New Hampshire Internet Crimes Against Children Task Force is proud to work with our local and Federal partners in law enforcement in an effort to protect the children of New Hampshire.” said Eric Kinsman, Commander, NH ICAC. “We encourage parents to talk to their children about internet safety and to visit https://www.missingkids.org/ for resources and helpful information."
This matter was investigated by Homeland Security Investigations, the New Hampshire Internet Crimes Against Children Task Force and the Goffstown Police Department. The case was prosecuted by Assistant U.S. Attorney Cam Le.
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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Gang Members Plead Guilty to Federal Charges in Armed Robbery and Shooting at Beverly Hills RestaurantRead the Press Release
LOS ANGELES – Two South Los Angeles men pleaded guilty today to federal charges stemming from an armed robbery earlier this year on the crowded patio of a Beverly Hills restaurant in which one customer had a gun held to his head while the robbers removed his $500,000 wristwatch, and a second restaurant patron was shot and wounded.
Malik Lamont Powell, 21, and Khai McGhee, a.k.a. “Cameron Smith,” 18, each pleaded guilty today to three felony counts: conspiracy to interfere with commerce by robbery, interference with commerce by robbery, and using and discharging a firearm during a crime of violence.
A third defendant who participated in the robbery – Marquise Anthony Gardon, 41, also of South Los Angeles – pleaded guilty on September 10 to two counts: interference with commerce by robbery, and using and discharging a firearm during a crime of violence.
According to court documents, the three defendants – each of whom is a documented member of the Rollin’ 30s Crips street gang – drove to Beverly Hills on the afternoon of March 4 to commit an armed robbery. After scouting Beverly Hills for potential victims, the defendants decided to target a man wearing a Richard Mille wristwatch who was seated in the outdoor dining section of the Il Pastaio restaurant.
During the robbery, the victim was held at gunpoint. A struggle for the gun ensued, and at least two rounds were discharged from the firearm, one of which struck another restaurant patron in the leg. The gun was left at the scene, but the robbers fled with the watch, which was worth approximately $500,000.
United States District Judge John F. Walter is scheduled to sentence Powell and McGhee on February 14, 2022. Gardon’s sentencing hearing was previously scheduled for November 29.
As a result of their guilty pleas, each defendant faces up to 20 years in federal prison for each of the robbery-related offenses. The firearms charge, because the weapon was discharged, carries a mandatory minimum penalty of 10 years in federal prison and a statutory maximum sentence of life.
The FBI and the Beverly Hills Police Department investigated this matter.
Assistant United States Attorneys Joseph D. Axelrad and Jeffrey M. Chemerinsky of the Violent and Organized Crime Section are prosecuting this case.
Former New York City Department of Education Senior Official and Three Others Charged with Extortion Conspiracy and BriberyRead the Press Release
A complaint was unsealed today in federal court in Brooklyn charging Eric Goldstein, the former Chief Executive Officer of the New York City Department of Education’s (“NYC DOE”) Office of School Support Services (“OSS”), Blaine Iler, Michael Turley and Brian Twomey with conspiring to commit extortion under color of official right and solicitation and giving of bribes relating to programs receiving federal funds. Goldstein was arrested this morning, made his initial appearance this afternoon before United States Magistrate Judge Lois M. Bloom and was released on a $150,000 bond. Turley was arrested in Arkansas this morning and will make his initial appearance in the Western District of Arkansas tomorrow. Iler and Twomey will make their initial appearances in the Northern District of Texas this afternoon.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrests and charges.
“Goldstein is alleged to have abused his position as a senior executive with the Department of Education by soliciting and accepting thousands of dollars in bribes for pure financial gain. In exchange, Goldstein’s co-conspirators obtained lucrative contracts to provide food services that consisted of substandard products that were served to students, teachers and staff in public schools.” stated Acting U.S. Attorney Kasulis. “This Office and its law enforcement partners are committed to ensuring integrity in government contracts, and will not tolerate corruption that compromises the quality of food that is served in New York City public schools.”
“As alleged, Goldstein used his position within the DOE to help promote a business in which he had a financial interest, which is not only illegal, but also doesn’t allow for a fair bidding process between competing interests. As a result of this scheme, Goldstein—and his coconspirators—learned a lesson of their own today in what not to do with taxpayer money,” stated FBI Assistant Director-in-Charge Driscoll.
As alleged in the complaint, from 2008 to 2018, Goldstein was the Chief Executive Officer of OSS. In that role, Goldstein was the NYC DOE senior executive in charge of overseeing the management, budget and operations of several NYC DOE departments, including the Office of Food and Nutrition Services, also known as SchoolFood, which is responsible for managing the food service operations for all New York City public schools. Iler, Turley and Twomey were the founders and operators of a food services company (the “Food Service Company”) that sold food products to retail and food service markets, including schools.
Between 2015 and 2016, Goldstein, while he was head of OSS, together with Iler, Turley and Twome, formed and operated a grass-fed beef importation business called Range Meats Supply Co., LLC (“RMSCO”). During the same time, between 2015 and 2016, Goldstein used his official position within SchoolFood to ensure that the food products promoted and sold by the Food Service Company would be purchased by SchoolFood and served in New York City public schools. In exchange, Iler, Turley and Twomey transferred tens of thousands of dollars to RMSCO for Goldstein’s benefit, including a payment of $7,000 to Goldstein’s personal divorce lawyer and a $3,000 wire transfer to a close relative of Goldstein.
In one instance alleged in the complaint, in October 2016, SchoolFood stopped serving the Food Service Company’s chicken tenders after a NYC DOE employee choked on a bone that had not been removed from a chicken tender supplied by the Food Service Company. Goldstein, who had final approval as to whether and when the chicken tenders would be allowed back in schools, delayed approving the reintroduction of the tenders until Iler, Turley and Twomey agreed to transfer the Food Service Company’s ownership interest in RMSCO to Goldstein as well as to transfer $66,670 to a bank account in RMSCO’s name that Goldstein had opened and controlled. Following weeks of negotiations, on November 29, 2016, Iler, Turley and Twomey agreed to pay the bribe Goldstein was soliciting and one day later, on November 30, 2016, Goldstein approved reintroduction of the Food Service Company’s chicken products in schools. The products were served in schools until April 2017 when, following repeated complaints from students and staff that the chicken tenders continued to contain foreign objects, including plastic, metal and bones, SchoolFood decided to remove all of the Food Service Company’s food products from New York City public schools.
The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Robert Polemeni and Laura Zuckerwise are in charge of the prosecution.
The Defendants
ERIC GOLDSTEIN
Age: 53
New Rochelle, New YorkBLAINE ILER
Age: 34
Dallas, TexasMICHAEL TURLEY
Age: 51
Fayetteville, ArkansasBRIAN TWOMEY
Age: 48
Dallas, TexasE.D.N.Y. Docket No. 21-MJ-1102
Former CEO of Melrose Credit Union Sentenced to Nearly 4 Years in Prison for Violating Bank Bribery StatuteRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that ALAN KAUFMAN, who at the time of the offense was the chief executive officer of Melrose Credit Union (“Melrose CU”), was sentenced today to 46 months in prison. KAUFMAN was previously convicted, following a three-week jury trial, of participating in a scheme in which he accepted from Tony Georgiton free housing and hundreds of thousands of dollars in financing for the purchase of his personal residence, after approving millions of dollars in loans to Georgiton’s companies at favorable terms. KAUFMAN was also convicted for accepting lavish vacations, including to Paris and Hawaii, from CBS Radio after increasing Melrose CU’s advertising purchases at CBS Radio. KAUFMAN’s sentence was imposed by United States District Judge Lewis A. Kaplan.
U.S. Attorney Audrey Strauss said: “Alan Kaufman accepted lavish gifts from Tony Georgiton as a reward for favorable loan rates for Georgiton’s companies. In addition, Kaufman accepted luxury travel and hotel accommodations in return for approval of advertising spending by Melrose Credit Union at CBS Radio and elsewhere. Kaufman shirked his duty to act in the best interests of the credit union and its account holders, exploiting his position for personal gain. Now, thanks to the work of the FBI, Kaufman will spend time in federal prison for his crimes.”
According to the Indictment, documents previously filed in the case, and evidence presented at trial:
In 2010, Georgiton purchased a home in Jericho, New York (the “Jericho Residence”), and permitted KAUFMAN to live in that home rent-free for over two years. While KAUFMAN was living rent-free at the Jericho Residence, KAUFMAN personally approved the refinancing of over $100 million worth of loans at Melrose CU held by a company owned by Georgiton with favorable terms. The head of Melrose CU’s loan department did not sign off on the loans made to Georgiton because, among other things, he believed that the terms were too favorable and did not comply with Melrose CU’s loan policy.
In 2011, KAUFMAN sought approval from Melrose CU’s board of directors (the “Melrose Board”) for Melrose CU to purchase the naming rights to a ballroom under construction in Astoria, Queens (the “Melrose Ballroom”). That ballroom was owned by a company that was in turn owned by Georgiton. KAUFMAN did not disclose to the Melrose Board that he was living rent-free in a house owned by Georgiton at the time he sought Melrose Board approval for the naming rights acquisition. Over the next five years, Melrose CU paid $2 million to Georgiton’s company for the naming rights to the Melrose Ballroom. KAUFMAN also directed that payment for the naming rights be paid a year in advance of the Melrose Ballroom’s actual opening for operations.
In 2013, KAUFMAN purchased the Jericho Residence from Georgiton, with financing that largely came from Georgiton. To purchase the Jericho Residence, KAUFMAN took out a $200,000 loan from Melrose CU, co-signed by Georgiton and secured by Georgiton’s shares in Melrose CU. Georgiton also gave KAUFMAN a $240,000 unsecured personal “loan.” Georgiton has never made a demand for payment on that purported loan and KAUFMAN has never made a payment on that purported loan. Rather than repay the loan, the following year, KAUFMAN purchased a used Maserati sports car valued at over $100,000 for his wife.
In addition, from in or about 2010 through in or about 2015, KAUFMAN solicited and accepted lavish vacations and other gifts worth tens of thousands of dollars from CBS Radio and other media vendors, after KAUFMAN approved advertising spending by Melrose CU. For example, in 2010, CBS Radio paid for KAUFMAN and his wife, who also worked at Melrose CU, to fly to Paris, France, and stay at the Four Seasons George V Paris. In 2012, CBS Radio paid for KAUFMAN and his wife to fly to Maui, Hawaii, and stay at the Four Seasons in Wailea. In 2013, CBS Radio paid for KAUFMAN and his wife to attend the Super Bowl in New Orleans.
KAUFMAN did not seek approval for these vendor-paid trips from the Melrose Board, nor did he disclose these vendor-paid trips to the Melrose Board, in violation of Melrose CU’s anti-bribery policy.
* * *
In addition to the prison term, KAUFMAN, 62, of Jericho, New York, was sentenced to two years of supervised release and ordered to forfeit specified property, pay restitution to the National Credit Union Administration in the amount of $2 million, and pay a fine of $30,000.
On January 11, 2021, Georgiton was sentenced to three years’ probation, a fine of $95,000, forfeiture of $286,663.65, and a special condition of nine months’ home confinement.
Ms. Strauss praised the outstanding work of the Federal Bureau of Investigation. She also thanked the National Credit Union Administration for their efforts and ongoing support and assistance with the case.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Dina McLeod, Michael McGinnis, and Nicholas Chiuchiolo are in charge of the prosecution.
Former Alorton Police Officer Pleads Guilty to Obtaining Funds from the Village of Alorton Police Department by FraudRead the Press Release
EAST ST. LOUIS, Ill. – Ricky Perry, 51, of East St. Louis, Illinois, formerly a police officer with
the Village of Alorton Police Department, entered a plea of guilty to “Obtaining Funds by Fraud
from the Village of Alorton Police Department, a Unit of a Government that Received Federal Funds.”As part of the plea, Perry acknowledged that he obtained funds by fraud from May 2018 through April
2021 claiming to be working when he was out of the jurisdiction, usually at his residence in East
St. Louis. The Information alleges that there was approximately 4000 hours where
Perry claimed he was working but he was outside the jurisdiction of the Village of
Alorton causing a financial loss of approximately $60,000. Sentencing is scheduled for January
26, 2022.U.S. Attorney Steven D. Weinhoeft said, “We proudly support the thousands of law
enforcement officers in this district who serve the public with honor, integrity, and dedication.
The Metro-East police departments are staffed by many such officers, and this guilty plea should
not undermine the public’s confidence in the work of law enforcement as a whole. This case shows
that law enforcement will police their own, and that officers are held accountable when they
violate the law.”
Embezzling money from an organization that receives federal funds carries a maximum sentence of ten
years in prison, a fine of up to $250,000, and restitution.The investigation was conducted by the Southern Illinois Public Corruption Task Force,
which consists of agents with the FBI, and the Illinois State Police.The prosecution is being handled by Assistant U.S. Attorney Norman R. Smith.
Citizens are encouraged to report suspicions of public corruption to the Southern Illinois
Public
Corruption Task Force Tip Line at (618) 589-7373.
Federal Indictment in Chicago Charges Turkish National with Directing Cyber Attack on Multinational Hospitality CompanyRead the Press Release
CHICAGO — An alleged cyber attacker from Turkey has been indicted in federal court in Chicago for allegedly orchestrating a distributed denial-of-service (DDoS) attack on a Chicago-based multinational hospitality company.
In August 2017, IZZET MERT OZEK used the WireX botnet, which consisted of compromised Google Android devices, to direct large amounts of network traffic to the hospitality company’s website, preventing legitimate users from completing hotel bookings, according to an indictment returned Tuesday in U.S. District Court in Chicago. The hospitality company, which managed luxury hotels and resorts, was headquartered in Chicago and the servers for its website were located in northern Illinois.
The indictment charges Ozek, 32, with one count of intentionally causing damage to a protected computer. Ozek is believed to be residing in Turkey, and a warrant for his arrest will be issued.
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 government is represented by Assistant U.S. Attorney Vikas Didwania.
The public is reminded that an indictment 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 charge in the indictment is punishable by up to ten years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Federal Grand Jury Indicts 15 for Their Roles in Methamphetamine Trafficking Organization Operating in Kanawha CountyRead the Press Release
Approximately 10 pounds of methamphetamine and 40 firearms seized
CHARLESTON, W.Va. – Acting United States Attorney Lisa G. Johnston announced that a federal grand jury has returned two indictments charging 15 individuals for their roles in a drug trafficking organization responsible for distributing large quantities of methamphetamine in Kanawha County.
Charged in a 15-count indictment are: Ramon David Alston, 41, of Decatur, Georgia; Jonathan Gregory Bush, 38, of Dunbar, West Virginia; Kelly Cordle, 43, of Kimberly, West Virginia; Scott Edward Hudson, 49, and Jason Robert Oxley, 38, of St. Albans, West Virginia; Leo Antoine Smith, of Cross Lanes, West Virginia; and James Edward Bennett III, 30, Treydan Burks, 31, Kaitlyn Brooke Combs, 24, Denise Marie Cottrell, 63, Brittany Frances Gilbert, 33, Brian Dangelo Terry, 36 and Douglas Johnathan Wesley, 32, all of Charleston, West Virginia. The indictment charges 11 of the defendants with conspiracy to distribute methamphetamine in Kanawha County from March 2019 to September 2021. The indictment also charges various drug and gun crimes carried out in connection with the DTO.
In a separate 10-count indictment, Shane Kelly Fulkerson, 43, of Saint Albans, West Virginia and Timothy Wayne Dodd, 45, of Charleston, West Virginia are charged with conspiracy to distribute methamphetamine in Kanawha County from March to September 2021. Additional charges against Fulkerson include distribution of methamphetamine, possession with intent to distribute methamphetamine, felon in possession of a firearm, and possession of firearms in furtherance of a drug trafficking crime.
During the course of the nearly 18-month-long investigation, law enforcement seized approximately 10 pounds of methamphetamine, 40 firearms, more than $80,000 cash, and several vehicles. Several of the vehicles and firearms had been reported stolen.
“The indictments unsealed earlier today are the result of tremendous effort, teamwork, and cooperation between our federal, state and local law enforcement partners,” said Acting United States Attorney Lisa G. Johnston. “I commend their efforts and thank them for their countless hours of hard work in bringing down this violent drug organization.”
“Charleston and the surrounding areas have been plagued by illegal drugs and the fear of violence for too long,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “The FBI and our local, state and federal partners will not let drug dealers hold a community hostage. We are committed to cleaning up the streets and holding those individuals accountable for the violence and drug trafficking they engage in.”
“The number of offenders, the quantity of drugs seized, and the guns taken off our streets is impressive work, but it does not begin to tell the full story of how this impacts the City of Charleston and our surrounding cities,” said Chief James “Tyke” Hunt of the Charleston Police Department. “Violence was curbed, and lives were saved multiple times throughout this investigation and that is the bigger picture, that is why all of us standing before you today do what we do.”
The investigation was conducted by the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the United States Marshals Service, the Charleston Police Department, the Metropolitan Drug Enforcement Network Team (MDENT), and the Putnam County Sheriff’s Office.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
Please note: An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 2:21-cr-00171 (Fulkerson, et al.) and 2:21-cr-00172 (Alston, et al.).
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Federal Court Orders Miami-Area Tax Preparer to Pay Contempt Sanction for Violating Permanent InjunctionRead the Press Release
A federal court in the Southern District of Florida has ordered a Miami-area tax preparer to pay a $403,969.70 contempt sanction for violating a permanent injunction that barred her from preparing, filing or assisting in the preparation or filing of federal tax returns for others.
The United States filed a complaint against Milagros Espinal on Feb. 7, 2011, that alleged that she had prepared returns for customers that claimed deductions for fraudulent medical expenses, charitable contributions and unreimbursed employee business expenses. According to the complaint, an IRS review of returns she prepared uncovered errors in 97% of the returns the agency examined. The parties contemporaneously filed a consent order, in which Espinal agreed to a full bar on return preparation. On Feb. 16, 2011, the court issued a permanent injunction.
On Aug. 18, 2021, following an evidentiary hearing, the court found that the United States proved by clear and convincing evidence that Espinal continued to prepare returns in violation of the injunction and held Espinal in contempt. The court stated in its order that it would decide the appropriate contempt sanction at a later date. Today, in ordering her to pay $403,969.70 to coerce her compliance with the injunction, and to compensate the Treasury for the harm Espinal caused, the court found that the government “had demonstrated that $395,280 is a reasonable approximation of [Espinal’s] ill-gotten gains.” According to the order, the balance of the sanction ($8,689.75) represents the costs the United States incurred to investigate and litigate Espinal’s actions violating the court’s injunction.
Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Return preparer fraud is one of the IRS’s’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. (More information can also be found here.) The IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers, and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Ex-Roommate and Co-Schemer of Former Eagles Linebacker Found Guilty of Trading on Inside Information Provided to ThemRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Mark Ramsey, 31, of San Francisco, CA, was convicted today at trial of insider trading charges arising from his use of non-public information provided to him and former Philadelphia Eagles linebacker Marvin Mychal Kendricks by a Goldman Sachs investment banker with respect to four separate stocks.
Evidence presented at trial showed that the defendant traded on inside information provided by Damilare Sonoiki, at the time a junior analyst at Goldman Sachs, who had offered Kendricks information regarding upcoming mergers involving four Goldman Sachs clients. Ramsey and Kendricks purchased call options in the target companies between July 2014 and November 2014. When the proposed merger was announced in each case, the value of the options purchased by Ramsey and Kendricks increased significantly. During the period of the conspiracy, the trading conducted by Ramsey and Kendricks from Kendricks’ account resulted in profits of nearly $1.2 million on the four securities listed in the Superseding Indictment:
- The trading began when Sonoiki and Kendricks purchased call options for Compuware based on pending acquisition of Compuware that was known to Sonoiki. When Compuware announced on September 2, 2014, that it had been acquired by a private company, Kendricks made $78,423 in profits.
- Sonoiki provided Kendricks and Ramsey inside information on a second deal in which Goldman represented News Corporation, which was in talks to acquire Move, Inc. Ramsey and Kendricks purchased call options in Move during the month of September. When the News Corporation acquisition of Move was announced on September 30, 2014, Ramsey and Kendricks sold the open options contracts at profit of $278,701.
- In early October 2014, Sonoiki provided Kendricks and Ramsey with inside information about a pending acquisition of Sapient, another company represented by Goldman. Sapient was in discussions with Publicis Corporation regarding a merger deal. Ramsey began trading in Sapient on October 6, 2014. On November 3, the merger was announced, and Ramsey and Kendricks made a profit of $489,079.
- In October 2014, Oplink was in discussions with Molex, a subsidiary of Koch Industries, regarding a merger deal. Goldman represented Molex and Koch Industries. Ramsey purchased call options in Kendricks’s account between October 31 and November 17, 2014. Ramsey’s trading occupied so much of the open call option market that there was a Reuters article on November 19, 2014, suggesting that someone must have had insider information. The deal was announced on November 19, 2014, at which time Ramsey and Kendricks made a profit of $351,872.
Defendants Sonoiki and Kendricks previously pled guilty to insider trading and conspiracy charges based on these same events.
“Insider trading undermines faith in our financial markets and harms ordinary investors who play by the rules,” said Acting U.S. Attorney Williams. “Mark Ramsey placed himself above the law by cheating in the market and cheating other investors, and for that crime, a jury found him guilty. Our Office will continue to work with our law enforcement partners to maintain the integrity of the financial markets.”
“Mark Ramsey was given material, non-public information that he used to score an investment windfall. Exploiting such knowledge is illegal and today a jury has held him accountable,” said Bradley S. Benavides, Acting Special Agent in Charge of the FBI’s Philadelphia Division. “Insider trading undermines the trust necessary for our financial markets to function properly. The FBI is working hard to derail dishonest profiteers who cheat the system in this way.”
The case was investigated by the Federal Bureau of Investigation and the Securities and Exchange Commission, and is being prosecuted by Assistant United States Attorneys David Ignall and Eileen Zelek.
- The trading began when Sonoiki and Kendricks purchased call options for Compuware based on pending acquisition of Compuware that was known to Sonoiki. When Compuware announced on September 2, 2014, that it had been acquired by a private company, Kendricks made $78,423 in profits.
Essex County Man Sentenced to 30 Months in Prison for Conspiring to Defraud Banks of over $250,000 using Credit Cards and Blank ChecksRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 30 months in prison for conspiring to defraud two banks of more than $250,000 using stolen credit cards and blank checks, Acting U.S. Attorney Rachael A. Honig announced.
Qshaun Brown-Guinyard, 27, of Newark, previously pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an information charging him with one count of conspiracy to commit bank fraud. Judge Wigenton imposed the sentence today by videoconference.
According to documents filed in this case and statements made in court:
From August 2018 through January 2020, Brown-Guinyard and his conspirators engaged in a scheme to use stolen credit cards and checks to fraudulently make purchases and withdraw money from two banks, leaving the banks to bear the losses of the scheme. The credit cards were stolen from facilities used by the U.S. Postal Service in Pine Brook and Warren, New Jersey. Because the cards were stolen, they never reached the intended cardholders. After obtaining the stolen cards, Brown-Guinyard and his conspirators used them to make unauthorized purchases at various retail stores and withdraw cash from automated teller machines (ATMs) in New Jersey and elsewhere.
The blank checks were also stolen from various New Jersey-based post office facilities, and never reached their intended recipients. Once obtained, Brown-Guinyard and his conspirators altered the date, payee, and amount of the stolen checks prior to deposit. He and his conspirators would then fraudulently withdraw money at various ATMs from the third-party account holders’ accounts.
Four of Brown-Guinyard’s conspirators – Nasheed Jackson, Alexander Varice, Dashawn Duncan, and Allen Varice– have previously pleaded guilty to identical informations. Jackson and Duncan were each sentenced to 24 months in prison, and Allen Varice was sentenced to 27 months in prison. Alexander Varice is scheduled to be sentenced Oct. 5, 2021.
In addition to the prison term, Judge Wigenton sentenced Brown-Guinyard to five years of supervised release and ordered him to pay restitution of $181,158.
Acting U.S. Attorney Honig credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Blake Coppotelli of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Engineer ends trial by pleading guilty to the federal crime of conspiring to steal trade secretsRead the Press Release
SAVANNAH, GA: A South Carolina man who joined in a conspiracy to steal trade secrets from aircraft companies faces sentencing in federal court after admitting guilt during his trial.
Gilbert Basaldua, 62, of Hilton Head, S.C., awaits sentencing after pleading guilty to Conspiracy to Steal Trade Secrets and Interstate Transportation of Stolen Property during the second day of his jury trial in U.S. District Court in Statesboro, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. Basaldua faces a statutory sentence of up to 10 years in prison on each charge, plus substantial financial penalties. There is no parole in the federal system.
“Gilbert Basaldua stole an aircraft company’s intellectual property in order to avoid having to spend millions of dollars and years of research to develop an icing wind tunnel testing plan that could win FAA certification,” said Acting U.S. Attorney Estes. “On the second day of his jury trial however, Basaldua could not overcome the overwhelming evidence presented against him and learned that his theft of another company’s intellectual property would be prosecuted to the fullest extent of the law.”
As alleged in the superseding indictment in the case filed in August 2020, Basaldua worked as a numerical control engineer contractor for an aircraft manufacturer in the Southern District from October 2016 through November 2018. During that time, Basaldua conspired with his co-conspirators to steal valuable proprietary aircraft wing designs and anti-icing testing information from various aircraft manufacturers, including the company where Basaldua worked. The conspirators intended to use the stolen information to quicken the process of obtaining Federal Aviation Administration certification for another company’s product.
“Basaldua chose to steal the secrets of a U.S. company rather than commit to putting in the money and hard work that is necessary to succeed, and for that he will pay,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI takes the theft of intellectual property very seriously, and we will not allow anyone to circumvent the system by using deceptive practices to steal protected information.”
The case was investigated by the FBI and prosecuted for the United States by Assistant U.S. Attorneys Jennifer G. Solari and Steven H. Lee.
East St. Louis Man Pleads Guilty to Drug and Gun OffensesRead the Press Release
EAST ST. LOUIS, Ill. – Anthony Wisham, 59, of East St. Louis, Illinois, pled guilty to two counts
of distribution of fentanyl, one count of possession with intent to distribute cocaine, and one
count of felon in possession of a firearm, on September 27, in federal court in East St. Louis,
Illinois.
As part of his guilty plea, Wisham admitted to distributing ounce quantities of fentanyl on
September 15, 2020, in East St. Louis, Illinois. Wisham further admitted that on
December 10, 2020, he possessed with the intent to distribute approximately 21.3 grams of
cocaine and that he possessed a firearm after having previously been convicted of a felony offense.Sentencing is scheduled for December 29 at 10:30 a.m. in East St. Louis. Under federal law,
Wisham faces a maximum sentence of 20 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.EAST ST. LOUIS, Ill. – Anthony Wisham, 59, of East St. Louis, Illinois, pled guilty to two counts
of distribution of fentanyl, one count of possession with intent to distribute cocaine, and one
count of felon in possession of a firearm, on September 27, in federal court in East St. Louis,
Illinois.
As part of his guilty plea, Wisham admitted to distributing ounce quantities of fentanyl on
September 15, 2020, in East St. Louis, Illinois. Wisham further admitted that on
December 10, 2020, he possessed with the intent to distribute approximately 21.3 grams of
cocaine and that he possessed a firearm after having previously been convicted of a felony offense.Sentencing is scheduled for December 29 at 10:30 a.m. in East St. Louis. Under federal law,
Wisham faces a maximum sentence of 20 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.
EDVA Commemorates National Hispanic Heritage MonthRead the Press Release
ALEXANDRIA, Va. – The U.S. Attorney’s Office for the Eastern District of Virginia (EDVA) honors and celebrates the countless achievements, cultural contributions, and rich history of the Hispanic American community during this year’s National Hispanic Heritage Month.
“Hispanic Americans have enriched our Office, our communities, and our country through their strong bonds of family and friendship, tenacity, kindness, and invaluable contributions to all facets of our lives,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “This year’s theme of resilience and hope comes at a critical time, as we continue to fight prejudice and collectively work to remove barriers to equality that have too often disproportionately impacted minority communities. EDVA expresses its deep gratitude to the many Hispanic Americans who have defended our Nation and to those who have dedicated their lives to upholding our Nation’s most sacred values. Hispanic Americans, through their courageous leadership, tireless efforts, and extensive civic contributions, consistently remind us of the importance of unity as we strive to achieve our cherished goal of ensuring that our system of justice is equal and fair to all.”
Each year, from September 15 to October 15, National Hispanic Heritage Month commemorates the contributions of Hispanic American communities to the social fabric of our country by recognizing the exceptional impact that these diverse communities have on American society. The unique timing of Hispanic Heritage Month coincides with the Independence Day celebrations of several Latin American nations. For example, on September 15, 1812, Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua declared their independence from Spain. Mexico and Chile declared independence from Spain on September 16 and September 18, 1810 respectively. Belize also declared its independence from Great Britain on September 21, 1981.
The National Council of Hispanic Employment Program Managers announced that the theme of the 2021 celebration is: “Esperanza: A Celebration of Hispanic Heritage and Hope.” We are all invited to celebrate Hispanic Heritage and to reflect on the resilient nature of Hispanic Americans in the face of profound challenges and to look to the future with hope.
EDVA’s commemoration of National Hispanic Heritage Month will include an office-wide virtual panel discussion with the Honorable Mary H. Murguia, who began serving as a judge on the U.S. Court of Appeals for the Ninth Circuit in 2011 and who became the first Latina to ever serve as a judge on the federal bench in Arizona in 2000; and the Honorable Adalberto J. Jordán, who became the first Cuban American to serve as a judge on the U.S. Court of Appeals for the Eleventh Circuit in 2012.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Drug User Indicted on Firearms ChargesRead the Press Release
PITTSBURGH, PA - A Greene County resident has been indicted by a federal grand jury in Pittsburgh on charges of violating federal firearm laws, Acting United States Attorney Stephen R. Kaufman announced today.
The two-count Indictment named Chester Aaron Hostutler, 34, of New Freeport, PA, as the sole defendant.
According to the indictment presented to the court, on two separate occasions in August 2020, Hostutler knowingly possessed a firearm and ammunition as a drug user or addicted person.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan J, McKenna is prosecuting this case on behalf of the government.
The Pennsylvania State Police and Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case, with assistance from the Bureau of Alcohol, Tobacco, Firearm and Explosives.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.Dominican National Sentenced for Trafficking FentanylRead the Press Release
BOSTON – A Dominican national was sentenced today in federal court in Boston for his involvement with a drug trafficking organization based in Lawrence.
Leisy Baez-Zapata, 23, was sentenced by U.S. District Court Judge Leo T. Sorokin to time served (approximately 26 months in prison). Baez-Zapata will be subject to deportation proceedings. On April 21, 2021, Baez-Zapata pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and one count of distribution of and possession with intent to distribute 400 grams or more of fentanyl.
According to court documents, in October 2018, federal agents began investigating a Lawrence-based drug trafficking organization that distributed fentanyl in the Lawrence area of Massachusetts. Between October 2018 and July 2019, agents used a cooperating witness to make controlled purchases of fentanyl from the drug trafficking organization. On July 25, 2019, Baez-Zapata delivered approximately one kilogram of fentanyl as part of one of those controlled purchases.
Acting United States Attorney Nathaniel R. Mendell and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement. Assistant U.S. Attorney Alathea Porter of Mendell’s Narcotics and Money Laundering Unit prosecuted the case.
Dallas Attorney Pleads Guilty to Laundering Purported Drug MoneyRead the Press Release
A Dallas lawyer pleaded guilty today to conspiring to launder money he believed was linked to narcotics trafficking, announced Acting U.S. Attorney Prerak Shah.
Rayshun Jackson, the 52-year-old defense attorney at the helm of The Jackson Law Firm, was arrested in April. On Wednesday, he pleaded guilty to conspiracy to launder money before Chief U.S. District Judge Barbara M.G. Lynn.
“As an attorney, Mr. Jackson swore an oath to uphold the rule of law – an oath he violated completely when he conspired with purported drug traffickers to commit a federal offense,” said Acting U.S. Attorney Prerak Shah. “Street-level dealers may be the most conspicuous sign of our nation’s drug epidemic, but the men and women who launder the profits are no less culpable. The drug trade would die if it weren’t lucrative. Mr. Jackson attempted to profit off the backs of addicted individuals, and we are gratified to bring him to justice.”
“Money launderers, like Mr. Jackson, complete the circle of drug trafficking by returning ill-gained profits to criminal organizations,” said DEA Dallas Special Agent in Charge Eduardo A. Chávez. “As a defense attorney, Mr. Jackson disregarded his oath to promote respect and confidence in the legal profession. Today’s plea reflects that nobody is above DEA’s reach, especially those who swore to defend the rule of law.”
In plea papers, Mr. Jackson admitted to laundering $380,000 for an individual he believed was a drug trafficker, but was actually an undercover DEA agent.
He was introduced to the agent on Sept. 3, 2020 by “Person A,” the leader of a large-scale opioid distribution ring known to deal in illegally diverted narcotics. After Person A vouched for each individual’s credibility, Mr. Jackson and the undercover agent discussed how the attorney could “clean” the agent’s “dope money.”
Mr. Jackson advised the agent that he could launder around $500,000 a month by funneling it through non-traceable cash businesses (i.e., coin laundries, car washes) and shell corporations. He agreed to use his firm’s bank accounts, as well as charitable bank accounts established for providing legal services to indigent persons, to transfer the money into and out of the undercover agent’s bank account.
“Ray is the bomb... He’s a thug, he’s just got a law degree,” Person A told the undercover agent after the meeting, according to court documents.
Three weeks later, the undercover agent delivered a black backpack stuffed with $100,000 cash to Mr. Jackson at his office. The attorney agreed to launder the money in return for 5% cash up front. After depositing the remaining $95,000 into his various bank accounts in various amounts on various days, he eventually transferred the entire sum into the DEA’s undercover bank account.
The next month, the undercover agent delivered an additional $300,000 cash to Mr. Jackson at his office. Again, the attorney agreed to a 5% up-front fee in return for laundering the money. After depositing the remaining $285,000 into his various bank accounts in various amounts on various days, he eventually transferred the same amount into the DEA’s undercover bank account.
In plea papers, Mr. Jackson admitted he knew of the unlawful purpose of the agreement and joined in it willingly.
Per his plea agreement, he now faces five years in federal prison and a forfeiture money judgment of $20,000 (an amount equal to the amount he collected in fees from the undercover agent). According to the Texas State Bar’s compulsory discipline policy, he will likely be stripped of his law license.
The Drug Enforcement Administration’s Dallas Field Office conducted the investigation with the assistance of IRS – Criminal Investigations and the Dallas Police Department. Assistant U.S. Attorney Courtney Coker, the Northern District of Texas’ Deputy Criminal Chief, is prosecuting the case along with Assistant U.S. Attorneys Juanita Fielden and Nashonme Johnson.
Columbus police officers charged with crimes related to distributing at least 7 kilograms of fentanylRead the Press Release
COLUMBUS, Ohio – Federal agents arrested two officers with the Columbus Division of Police’s drug cartel unit.
Marco R. Merino, 44, of Columbus, and John J. Kotchkoski, 33, of Marengo, Ohio, were allegedly involved in the distribution of approximately seven and a half kilograms of fentanyl. Merino also allegedly accepted bribes to protect the transportation of cocaine.
According to an affidavit filed in support of a criminal complaint, Merino allegedly tried to recruit a confidential informant to traffic drugs with him. Merino allegedly promised law enforcement protection to the individual and said he could intervene if other law enforcement agencies attempted to investigate the confidential informant.
Court documents detail that Merino intended to gain citizenship in Mexico as part of a plan to launder their drug proceeds. Merino allegedly planned to buy properties in Mexico to run as Airbnb properties and traveled to Mexico in July.
Specifically, it is alleged that, in March, April, May, August and September 2021, Merino accepted a total of $44,000 in cash in exchange for protecting the safe transport of at least 27 kilograms of cocaine. Unbeknownst to Merino, there was no actual cocaine and each of the transactions was controlled by federal law enforcement.
During the transports of the purported cocaine, it is alleged Kotchkoski made himself available by radio to make any calls that Merino might need, including to other law enforcement officials, to protect the safe transportation of the cocaine. According to an affidavit, cell phone data places Kotchkoski near Merino during the transports.
In June and August 2021, Merino allegedly distributed approximately seven and a half kilograms of fentanyl that Kotchkoski provided to him. It is alleged that Merino would make between $60,000 and $80,000 for the sale of the fentanyl.
Possessing with intent to distribute 400 grams or more of fentanyl is a federal crime punishable by 10 years and up to life in prison. Federal Program Bribery is punishable by up to 10 years in prison.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Ohio Attorney General Dave Yost announced the charges. Assistant United States Attorney Peter K. Glenn-Applegate is representing the United States in this case.
A criminal complaint is merely an allegation, and defendants are presumed innocent unless proven guilty in a court of law.
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Charlotte Man Is Sentenced to Six and A Half Years for Armed CarjackingRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Frank D. Whitney sentenced Ricky Lewis Bush, 21, of Charlotte, to 78 months in prison late yesterday, for carjacking and gun charges, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. Judge Whitney also ordered Bush to serve three years under court supervision after completing his prison term and to pay restitution to the victim of the carjacking.
Acting U.S. Attorney Stetzer is joined in making today’s announcement by Vincent C. Pallozzi, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Johnny Jennings of the Charlotte-Mecklenburg Police Department (CMPD).
According to filed court documents and the sentencing hearing, on the night of January 13, 2021, Ricky Lewis Bush and his co-defendant, Jontez Xavier McLeod, carjacked at gunpoint a female victim identified in court documents as C.K. Court records show that C.K. was exiting her vehicle which was parked at the parking lot of an apartment complex in Charlotte, when Bush and McLeod approached the victim. Bush pointed a firearm at the victim, and the two men grabbed the victim and pulled her from her vehicle. Bush and McLeod then got into the victim’s car and fled the scene, leaving the victim in the parking lot.
According to court documents, CMPD officers located the victim’s car. McLeod was driving the vehicle and Bush was in the front passenger seat. When officers attempted to stop the vehicle, the defendants sped off in an attempt to evade the police. CMPD officers pulled over the vehicle and arrested Bush and McLeod. Over the course of the investigation, CMPD officers recovered several videos from Bush’s cell phone, taken shortly before and after the carjacking. In one of the videos, Bush is holding the same firearm used in the carjacking.
On November 12, 2020, Bush pleaded guilty to carjacking and brandishing a firearm during and in relation to a crime of violence. He is currently in federal custody. Upon designation of a federal facility, he will be transferred to the custody of the federal Bureau of Prisons.
McLeod has also pleaded guilty for his role in the case and will be sentenced at a later date.
The ATF and CMPD investigated the case. Assistant U.S. Attorney Taylor G. Stout, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
Charlotte Man Is Sentenced to 15 Years in Prison on Drug and Gun ChargesRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Max O. Cogburn Jr. ordered Malik Eli Davis, 41, of Charlotte, to serve 15 years in prison and three years of supervised release for drug and gun charges, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.
Acting U.S. Attorney Stetzer is joined in making today’s announcement by Vincent C. Pallozzi, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Johnny Jennings of the Charlotte-Mecklenburg Police Department (CMPD).
According to filed court documents and information at today’s sentencing hearing, in June 2019, CMPD officers learned that Davis was dealing cocaine from motel room in Charlotte. On June 29, 2019, law enforcement executed a search warrant at the motel room and Davis’s vehicle. Law enforcement recovered from the room cocaine, various material that indicated Davis was manufacturing crack cocaine, other drug paraphernalia, more than $2,800 in cash, and a loaded firearm. Court records show that law enforcement found in Davis’s vehicle a semi-automatic pistol loaded with a high capacity magazine and over $1,600 in cash.
Davis pleaded guilty on November 12, 2020, to possession with intent to distribute cocaine and possession of a firearm by a felon. Under the United States Sentencing Guidelines, Davis qualified for a sentencing enhancement due to his prior criminal convictions and was sentenced as an armed career criminal.
Davis is currently in federal custody. He will be transferred to the custody of the federal Bureau of Prisons upon the designation of a federal facility.
The investigation was handled by the ATF and CMPD. The case was prosecuted by Assistant United States Attorney Christopher Hess of the U.S. Attorney’s Office in Charlotte.
Cedar Rapids Man Charged with Being a Drug User in Possession of Firearms and AmmunitionRead the Press Release
Douglas Studer, age 62, of Cedar Rapids, Iowa, has been charged with being a drug user in possession of firearms and ammunition. The charge is contained in an Indictment unsealed on September 27, 2021, in United States District Court in Cedar Rapids.
The Indictment alleges that, in May 2019, Studer possessed two firearms and ammunition when he was an unlawful user of methamphetamine and marijuana.
If convicted, Studer faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and three years on supervised release following any imprisonment.
Studer appeared for a detention hearing on September 28, 2021, in federal court in Cedar Rapids and was released on bond. Studer’s next appearance for trial is set for November 29, 2021.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and is being investigated by the Dubuque Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Iowa Division of Criminal Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 21-1027.
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Camden-Wyoming Man Who Threw A Lighted Bottle onto Apartment Building Roof Sentenced to Five Years in PrisonRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that a Camden-Wyoming man was sentenced yesterday to 5 years in prison for Malicious Use of a Fire to Damage Interstate Commerce. Chief U.S. District Judge Colm F. Connolly pronounced the sentence.
According to court documents, Benjamin Glanden, was arrested on June 29, 2020, after officers with the Dover Police Department and the Dover City Fire Marshal’s Office were called to the Liberty Court Apartments, 1289 Walker Road, Dover, Delaware, for a report of an individual setting fires. Surveillance video from the scene showed Glanden walking up to Apartment Building C, lighting a bottle which contained gasoline and a paper towel, and throwing the bottle onto the building’s roof. At the time Glanden threw the lighted bottle on its roof, Building C was occupied by 8 adults and 10 children.
Before imposing sentence, Chief Judge Connolly noted the seriousness of the defendant’s incredibly reckless behavior, indicating that tragic consequences could have resulted from Glanden’s actions.
U.S. Attorney Weiss commented, “Defendant’s grossly irresponsible behavior jeopardized the safety of innocent apartment dwellers. But for timely reporting to law enforcement, defendant’s fire setting could quickly have led to substantial property damage with potentially deadly consequences. My office will continue to vigorously prosecute those, like the defendant, whose actions directly threaten public safety.”
“The defendant’s reckless disregard for human life could have easily resulted in tragedy,” said ATF Baltimore Special Agent in Charge Timothy Jones. “We are grateful for the public’s quick reporting and fast response by our Dover law enforcement and fire service partners that prevented that tragedy from happening. By combining ATF arson investigation resources with the knowledge and experience of our partners, we were able to ensure this defendant was brought to justice. ATF is unwavering in its commitment to remove violent offenders like this from Delaware communities.”
Assistant U.S. Attorney Maureen McCartney prosecuted the case, which was investigated by Dover Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware.
Butte meth trafficker sentenced to five years in prison after law enforcement intercepts 10-pound packageRead the Press Release
MISSOULA — A Butte man who admitted to accepting packages of methamphetamine in the mail for redistribution after investigators seized a 10-pound shipment destined for his residence was sentenced today to five years in prison to be followed by five years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
Steven Douglas Shipe, 52, pleaded guilty in June to conspiracy to possess with intent to distribute meth.
U.S. District Judge Dana L. Christensen presided. Shipe was allowed to self-surrender.
The government alleged in court documents that law enforcement learned Shipe was involved in drug trafficking in Montana and purchased about one ounce of meth from Shipe in June 2019. Law enforcement also learned that Shipe was receiving packages of meth in the mail. Investigators recovered a package containing approximately 10 pounds of meth that was addressed to Shipe’s residence in Butte. Ten pounds of meth is the equivalent of 36,240 doses. The drugs were intercepted in Bakersfield, California, and the shipping label indicated that the parcel was sent by another individual in that city. In addition, Shipe used local co-conspirators to help with meth deals. Local co-conspirators would bring prospective buyers to Shipe’s house to complete the transactions.
Assistant U.S. Attorney Ryan G. Weldon prosecuted the case, which was investigated by the Montana Division of Criminal Investigation, Drug Enforcement Administration, Homeland Security Investigations and the U.S. Postal Service.
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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Buffalo Man Pleads Guilty After Cocaine and A Loaded Weapon Were Found in His ResidenceRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Adrian Funderburk, 37, of Buffalo, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to possessing a firearm in furtherance of a drug trafficking offense. The charge carries a mandatory minimum penalty of five years in prison and a maximum of life.
Assistant U.S. Attorney Charles E. Watkins, who is handling the case, stated that on January 6, 2021, the Buffalo Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives executed a search warrant at the defendant’s residence on Wecker Street in Buffalo. Investigators recovered a loaded .40 caliber pistol, approximately 36 grams of cocaine, approximately seven pounds of marijuana, and $70,000 in cash. Funderburk possessed the firearm in furtherance of his drug trafficking in order to protect himself, his drugs, and his drug proceeds.
The plea is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Byron Lockwood, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito.
Sentencing is scheduled for February 18, 2022, before Judge Vilardo.
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Buffalo Man Going to Prison for Being A Felon in Possession of A Firearm and AmmunitionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Denzel Robinson a/k/a Sparks, 27, of Buffalo, NY, who was convicted of being a felon in possession of a firearm and ammunition, was sentenced to serve 38 months in prison by U.S. District Judge John L. Sinatra, Jr.
Assistant U.S. Attorneys Michael J. Adler and Charles E. Watkins, Jr., who handled the case, stated that on April 28, 2020, the Buffalo Police Department executed a search warrant at the defendant's residence on Sun Street in Buffalo and recovered a .22 caliber rifle and multiple rounds of ammunition. In June 2018, Robinson was convicted in Erie County Court of bail jumping and is legally prohibited from possessing a firearm and ammunition.
The sentencing is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Byron Lockwood, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
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Brockton Man Pleads Guilty to Selling Drugs via the Dark WebRead the Press Release
BOSTON – A Brockton man pleaded guilty today in federal court in Boston in connection with conspiring to manufacture and distribute controlled substances.
Binh Thanh Le, 25, pleaded guilty to conspiracy to manufacture, distribute and possess with intent to distribute 3,4-Methylenedioxymethamphetamine (MDMA), commonly known as ecstasy, Ketamine and Alprazolam (Xanax). U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Jan. 19, 2022.
Le was indicted in June 2019 along with co-conspirators Steven McCall and Allante Pires.
According to court records, Le received wholesale quantities of controlled substances in the mail. Le and, allegedly, his co-conspirators then processed and manufactured those controlled substances at an office space Le rented in Stoughton. To distribute the drugs, Le created and operated a vendor site called “EastSideHigh” on Dark Net Market websites, where various drugs for sale, including cocaine, MDMA, Ketamine and Xanax, were advertised.
During the investigation, an undercover agent ordered MDMA from one of the “EastSideHigh” vendor sites on a Dark Net Marketplace, and later observed Le deposit the envelope containing the order into a U.S. Postal Service collection box in Stoughton. Numerous other envelopes containing MDMA and Ketamine, which are connected to this drug distribution scheme, were intercepted.
On March 27, 2019, Le met with undercover law enforcement officers at a hotel in Norwood to exchange $200,000 worth of Bitcoin for cash. Le was arrested after he transferred the bitcoin to the agents.
More than 18 kilograms of MDMA, almost seven kilograms of Ketamine, more than $200,000 worth of Bitcoin and more than $100,000 in cash were seized by authorities. Investigators also recovered from the office space in Stoughton a computer with the “EastSideHigh” vendor page open, numerous packages containing MDMA and Ketamine, various shipping and packaging materials and a pill press.
McCall and Pires have pleaded not guilty and are considered innocent until proven guilty.
Acting United States Attorney Nathaniel R. Mendell; Joshua McCallister, Acting Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; Jennifer De La O, Director of Field Operations of U.S. Customs and Border Protection, Boston Field Office; and Norfolk County District Attorney Michael W. Morrissey made the announcement. Special assistance with the investigation was provided by the Homeland Security Investigations in Colorado; Postal Inspectors from around the country; and the Stoughton, Norwood, and Brockton Police Departments. Assistant U.S. Attorney James E. Arnold of Mendell’s Narcotics & Money Laundering Unit is 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.
Bland County Man Pleads Guilty to 17 Counts of Production of Child Pornography, Illegal Possession of a FirearmRead the Press Release
ABINGDON, Va.– A Bland County, Virginia man pleaded guilty yesterday to 17 counts of producing child pornography at his home and illegally possessing a firearm after previously being convicted of a felony offense.
According to court documents, William Dean Blankenship, 42, was a previously convicted felon residing in Bland County, Virginia. On February 12, 2021, the Bland County Sheriff’s Office and Virginia State Police executed a state search warrant at Blankenship’s home after receiving information that the defendant had engaged in sexual acts with children and was in possession of child pornography.
During that search, law enforcement found a firearm, cellular phone and other electronic devices that belonged to Blankenship. Blankenship’s phone contained over 50 video files of child pornography produced by the defendant which depicted him engaging in sexual intercourse with two minors under the age of 18. Further investigation determined Blankenship routinely coerced and enticed the two minors to engage in sexual activity with Blankenship and with one another after providing the minors with narcotics and other controlled substances. Blankenship’s abuse began when the minors were approximately 14 and 13 years old.
“Blankenship repeatedly used coercive means to abuse his child victims, and now faces a lengthy prison sentence for these horrific acts,” Acting United States Attorney Bubar stated today. “I am thankful for the hard work of the Department of Homeland Security Investigations and Virginia State Police, who will continue to investigate and, together with our office, prosecute anyone like Blankenship who seeks to prey on our children.”
“Homeland Security Investigations is proud to have partnered with the Bland County Sheriff’s Office, the Virginia State Police, and the U.S. Attorney’s Office to hold Mr. Blankenship accountable for his reprehensible actions,” said Raymond Villanueva, Special Agent in Charge of Washington D.C. Homeland Security Investigations. “His sentencing should serve as a reminder to others who victimize children; we will work tirelessly to bring predators to justice.”
Blankenship pleaded guilty yesterday to 17 counts of production of child pornography and one count of illegal possession of a firearm by a previously convicted felon. He is scheduled to be sentenced on December 17, 2021 and faces an agreed upon sentencing range of between 20-50 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Department of Homeland Security Investigations and Virginia State Police are investigating the case.
Assistant U.S. Attorney Daniel J. Murphy is prosecuting the case.
Birmingham Business Owner Sentenced for Wire Fraud in Connection with a $23 Million Scheme to Defraud Local Real Estate InvestorsRead the Press Release
DETROIT - Viktor Gjonaj, 44, a Troy based commercial real estate broker and investor was sentenced today to 53 months in prison after having pleaded guilty to devising and executing a scheme to obtain money by means of false material promises and representations from victim-investors, Acting U.S. Attorney Saima S. Mohsin announced.
Mohsin was joined in the announcement by Special Agent in Charge Timothy T. Waters, Federal Bureau of Investigation.
Imposing the sentence was Honorable Linda Parker, United States District Judge.
According to court records, Gjonaj admitted that in June 2016, he thought he had discovered a guaranteed way to win huge jackpots in the Michigan Lottery Dailey 3 and 4 games. To accomplish this, he had to substantially increase the times he played and amounts he spent. In 2017, Gjonaj began losing more money than he won and more money than he could afford to lose. Rather than ending his gambling, Gjonaj devised a scheme to trick individuals into giving him money by falsely promising them he would invest it in lucrative real estate deals. To make the deals look legitimate, Gjonaj created a fake title company and instructed the victim-investors to wire transfer money into the bank account of the fake company. Gjonaj described the fraudulent real estate deals in great detail and encouraged victim-investors to continue giving him money by disbursing payments to them which he falsely claimed were profits on their “investment.” By early 2019, Gjonaj was betting over $1 million a week on Michigan Lottery games using money fraudulently obtained from victims. In August 2019, Gjonaj’s scheme to defraud unraveled resulting in over $23 million in losses to victims.
Following his release from prison, Gjonaj will serve a three-year term of supervised release and the Court also ordered Gjonaj to make restitution to his victims in the amount of $25,299,120.00 and to forfeit $ $19,025,000.
“White collar criminals may use sophisticated methods and apparently legitimate businesses, but their crimes amount to nothing more than stealing other people’s money. Gjonaj used his previous business successes and relationships with victim-investors to lure them into his scheme, to convince them his false promises were true, and to steal their money,” said Acting United States Attorney Saima S. Mohsin.
"In just over two years, Viktor Gjonaj stole more than $23 million from his victims with promises of lucrative real estate deals," said Timothy Waters, Special Agent in Charge of the FBI in Michigan. "Gjonaj violated the trust his victims placed in him and left many financially devastated. Today's sentence provides the victims with a measure of justice and serves as a signal to others that white collar criminals will be aggressively pursued by the FBI."
The investigation was conducted by the FBI. The Securities and Exchange Commission’s cooperation in this investigation is appreciated.
Berks County Group to Pay $121,655 under the False Claims Act for Alleged Double-Billing of Home Renovation ExpensesRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that the Berks County Coalition to End Homelessness (“BCEH”) will pay $121,655 to resolve False Claims Act allegations that the public-private partnership organization illegally double-billed the U.S. Department of Housing and Urban Development (“HUD”) for renovations performed on a property located in Reading, Pennsylvania.
The settlement resolves allegations that BCEH knowingly submitted duplicate requests for payment for the framing, electrical, and plumbing renovations performed on a single project. In the settlement agreement, the United States alleges that on September 14, 2017, BCEH knowingly submitted a request to draw approximately $40,000 from HUD’s Continuum of Care Program to be used towards renovation costs on the project. Then, on December 14, 2017, BCEH is alleged to have knowingly submitted to the City of Reading’s HOME Program a request for reimbursement of the same renovation costs that were to have been paid by the earlier draw request. The United States alleges that by submitting for the same renovation costs twice, BCEH received approximately $40,000 to which it was not entitled.
“Our office will pursue anyone that that abuses federal programs for their personal gain,” said Acting U.S. Attorney Williams, “Those entrusted with properly administering HUD funds must do so honestly or face the consequences.”
“Duplicate billing will not be tolerated and will be investigated by the U.S. Department of Housing and Urban Development, Office of Inspector General. HUD-OIG is committed to working with the Department of Justice to ensure that HUD funds are used for their intended purpose. In this case, HUD program funds were misappropriated by BCEH when they double billed the City of Reading, PA to obtain unauthorized HUD funding desperately needed in the fight against homelessness,” said Special Agent in Charge Shawn Rice. “Today’s settlement underscores the government’s commitment to protecting HUD’s programs and holding organizations like BCEH accountable for their actions.”
This case was investigated by the U.S. Department of Housing and Urban Development, Office of Inspector General and the United States Attorney’s Office’s fraud investigator Frank O’Connor. Assistant United States Attorney Paul J. Koob handled the settlement.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Anson County Man Is Sentenced to Six and A Half Years on Gun ChargeRead the Press Release
CHARLOTTE, N.C. – Dyral Keith Shankle, 34, of Wadesboro, N.C., was sentenced to 78 months in prison today, followed by two years of supervised release, for a firearms offense, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.
According to information contained in filed court documents and today’s sentencing hearing, on January 22, 2020, at approximately 11:00 p.m., Shankle drove his vehicle to a Wadesboro hospital emergency room. When Shankle arrived at the hospital, he got out of his vehicle and ran into the hospital holding a gun in his hand. Court records show that when the hospital security officer asked Shankle to hand over his gun, Shankle refused and claimed that “people were coming after him.” The security officer was eventually able to take the firearm, which was loaded with a high capacity magazine, after Shankle moved his finger off the trigger. Shankle was subsequently treated by hospital staff for a gunshot wound. Over the course of the investigation, law enforcement recovered two additional firearms that belonged to Shankle, ecstasy pills, marijuana and more than $10,000 in cash.
In October 2020, Shankle pleaded guilty to possession of a firearm by a felon. He is currently in federal custody. Upon designation of a federal facility, he will be transferred to the custody of the federal Bureau of Prisons.
In making today’s announcement, Acting U.S. Attorney Stetzer commended the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Wadesboro Police Department, and the Monroe Police Department for their investigation of the case. Acting U.S. Attorney Stetzer also thanked Anson County District Attorney Reece Saunders for his office’s coordination and assistance throughout the case.
Special Assistant U.S. Attorney Stephanie Spaugh, of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Anamosa Man Charged with Being a Prohibited Person in Possession of Firearms and AmmunitionRead the Press Release
Douglas Hurt, age 41, of Anamosa, Iowa, has been charged with being a prohibited person in possession of firearms and ammunition. The charge is contained in an Indictment unsealed on September 17, 2021, in United States District Court in Cedar Rapids.
The Indictment alleges that, in June 2020, Hurt possessed two firearms and ammunition after having been convicted of one felony and three misdemeanor crimes of domestic violence.
If convicted, Hurt faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and three years on supervised release following any imprisonment.
Hurt appeared for a detention hearing on September 23, 2021, in federal court in Cedar Rapids and was released on bond. Hurt’s next appearance for trial is set for November 22, 2021.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and is being investigated by the Jones County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Iowa Division of Criminal Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 21-59.
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American Honda Finance Corp. Agrees to Pay over $1.5 Million to Compensate Servicemembers Whose Federal Rights Were ViolatedRead the Press Release
LOS ANGELES – The Department of Justice announced today that American Honda Finance Corporation (AHFC) has agreed to settle a federal lawsuit alleging that it violated the Servicemembers Civil Relief Act (SCRA) by failing to refund a type of up-front lease payment to servicemembers who lawfully terminated their motor vehicle leases early. Under the settlement agreement, AHFC must pay up to $1,585,803 in compensation to 714 servicemembers who were harmed by the alleged violations.
“Servicemembers selflessly heed the call to duty, and their sacrifice should not subject them to unlawful economic harm,” said Acting U.S. Attorney Tracy L. Wilkison. “This settlement is the latest resulting from investigations my office has conducted in conjunction with Justice Department attorneys to ensure our brave men and women in uniform can perform without having to worry about unjust actions at home.”
“This case illustrates the Justice Department’s steadfast commitment to protecting the rights of servicemembers,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We will continue to vigorously enforce federal law to ensure that no servicemember faces unlawful treatment by auto leasing companies or other entities.”
The SCRA permits servicemembers to terminate motor vehicle leases early without penalty after entering military service or receiving qualifying military orders for a permanent change of station or to deploy. When servicemembers lawfully terminate motor vehicle leases, the SCRA requires that they be refunded all lease amounts paid in advance.
AHFC is a California-based auto financing company that provides auto leasing for customers of Honda and Acura. Individuals who lease vehicles from AHFC, including servicemembers, often contribute an up-front monetary amount at lease signing, in the form of a cash payment, credit for a trade-in vehicle, or rebates or other credits. A portion of this up-front amount can be applied to the first month of the lease and certain up-front costs such as licensing and registration fees. The remainder, which is called the capitalized cost reduction amount, operates to reduce the monthly payment the lessee must make over the term of the lease.
Today’s settlement, which must be approved by a federal judge, resolves a lawsuit filed today by the Department of Justice in United States District Court in Los Angeles. The lawsuit alleges that, while AHFC regularly provided refunds of cash payments toward capitalized cost reduction made by servicemembers, AHFC failed to provide refunds of vehicle trade-in credit that was applied toward capitalized cost reduction, in violation of the SCRA.
In addition to compensating 714 servicemembers, the settlement requires AHFC to pay $64,715 to the U.S. Treasury, as well as to adopt new policies and implement new training requirements.
Servicemembers and their dependents who believe their SCRA rights have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations can be found at http://legalassistance.law.af.mil/.
The Justice Department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section and U.S. Attorney’s Offices throughout the country. Since 2011, the department has obtained over $476 million in monetary relief for over 121,000 servicemembers through its enforcement of the SCRA. Additional information on the department’s enforcement of the SCRA and other laws protecting servicemembers is available at www.servicemembers.gov
Acton Man Convicted of Scheme to Defraud the Treasury Department of over $50 Million in Tax-Free Energy GrantsRead the Press Release
BOSTON – An Acton man was convicted by a federal jury yesterday in connection with his role in a scheme to defraud the U.S. Treasury Department of more than $50 million in tax-free energy grants as part of the American Recovery and Reinvestment Act of 2009.
Christopher N. Condron, 49, was convicted following a 13-day jury trial of conspiracy to defraud the United States with respect to claims and three counts of wire fraud. U.S. District Court Judge Indira Talwani scheduled sentencing for Feb. 4, 2022.
In August 2017, Condron was indicted along with his partner, Jessica Metivier, for conspiring to submit fraudulent applications to the Treasury Department for energy grants available as part of the American Recovery and Reinvestment Act of 2009. The Recovery Act provided tax-free grants to individuals and businesses who put certain “specified energy property”—such as wind farms and gasification systems that convert trash into electricity—into service in a trade or business.
From May 2009 to June 2013, Condron and Metivier submitted fraudulent grant applications to the Treasury Department on behalf of four different Massachusetts companies, Acton Bio Energy, Concord Nurseries, Kansas Green Energy and Ocean Wave Energy. For each of the applications, Condron and Metivier falsely claimed that Metivier and her entities had acquired, placed into service, or started construction of energy property, which included three different bio-fuel gasification systems, purportedly built at a cost of approximately $88 million, and an $84 million wind farm project. Condron and Metivier sought to be reimbursed for more than $50 million based on those costs—which they never actually incurred. To support their applications, Condron and Metivier submitted fraudulent documentation to a Massachusetts-based attorney who, in turn, submitted the applications to the Treasury Department on their behalf. Evidence at trial demonstrated that Condron vastly overstated property costs in the grant applications and as a result, defrauded the government out of more than $8.7 million. Additionally, further evidence showed that Condron attempted to obtain another $17 million in energy grants.
On Feb. 26, 2021, Metivier was sentenced by Judge Talwani to one year of probation.
The charge of conspiracy to defraud the United States with respect to claims 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 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. 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 and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement. Special assistance was provided by the U.S. Department of Treasury, Office of Inspector General, Office of Investigations. Assistant U.S. Attorneys Neil J. Gallagher, Jr. and Elysa Q. Wan of Mendell’s Criminal Division are prosecuting the case.
24 Federal Prosecutors Take the Oath of Office in the Northern District of OklahomaRead the Press Release
TULSA, Okla. – Twenty-four federal prosecutors have joined the U.S. Attorney’s Office within the last year and were sworn-in Wednesday by Chief U.S. District Judge John F. Heil III, announced Acting U.S. Attorney Clint Johnson.
The prosecutors were hired from across the nation to help prosecute the exponential increase in Indian Country cases following the Supreme Court’s decision in McGirt v Oklahoma. The Court asserted the Creek Nation reservation was never disestablished by Congress when Oklahoma became a state; therefore, criminal jurisdiction within the reservation’s boundaries lay with the Federal Government and the Muscogee Nation.
“Twenty-four Assistant U.S. Attorneys have answered the call to uphold federal law and serve the citizens of the Northern District of Oklahoma,” said Acting U.S. Attorney Clint Johnson. “I have witnessed their talent, innovation and willingness to learn as this office has faced numerous challenges over the last year due to our expanded jurisdiction. I am proud of their work and commend them for their spirit of service and dedication to justice.”
Judge Heil thanked the prosecutors for their service to the United States and to the district’s citizens. He further explained that as prosecutors for the United States they wield great power, but he reminded them to do so with wisdom and discernment. He then administered the oath of office to the following individuals:
Adam Bailey is a Colorado native who attended the University of Colorado and received his JD from the University of Denver. After nearly ten years as a state prosecutor, he served as counsel for the Department of Homeland Security’s Denver Field Office before coming to Oklahoma and the Northern District of Oklahoma.
Justin Bish attended undergraduate and law school at The Pennsylvania State University. While serving as an Assistant U.S. Attorney in the Western District of New York, Justin volunteered for a six-month detail to the Northern District of Oklahoma to assist with the large numbers of Indian Country cases following the Supreme Court’s ruling in July 2020 and has remained with the office.
Niko Boulieris grew up in Chicago and holds degrees from Marquette University and the Hamline University School of Law in St. Paul, Minnesota. He came to the Northern District of Oklahoma from the Hennepin County Attorney's Office in Minneapolis, after five years as a prosecutor.
John Brasher graduated from Texas A&M and obtained his law degree from Oklahoma City University. He served as an Assistant District Attorney in Tulsa County for 12 years after two years with the Oklahoma Attorney General’s and came to the Northern District of Oklahoma Office.
Steve Briden went to law school at the University of New Hampshire School of Law. After graduation, he worked for New Hampshire Governor Maggie Hassan, and then served as a prosecutor in Carroll County, New Hampshire, for four years before joining the Northern District of Oklahoma.
Thomas Buscemi attended undergraduate and law school at the University of Georgia. He joined the Northern District of Oklahoma after serving as an Assistant District Attorney in Glynn County, Georgia, for five years.
Julie Childress graduated from Appalachian State University and received her JD from Elon University School of Law. Before joining the Northern District of Oklahoma, she was a member of the U.S. Women’s Bobsled Team, interned with the United Nations at the Hague, and served as the Domestic Violence prosecutor in North Carolina.
Chantelle Dial grew up in Washington State, where she taught junior high Language Arts before attending Michigan State University College of Law. She joined the U.S. Attorney’s Office in Seattle as the 2017 Department of Justice Honors Indian Country Fellow and later volunteered for a detail to the Northern District of Oklahoma after the Supreme Court’s ruling. She has remained with the office.
Gina Gilmore graduated from the University of Texas and received her JD from the University of Arkansas School of Law. After serving as an Assistant District Attorney in Galveston County, Texas, for eight years, she became an Assistant U.S. Attorney in the Western District of Texas. She initially came to the Northern District of Oklahoma as a volunteer following the Supreme Court’s ruling and has remained with the office.
Michael Harder graduated from Willamette University in 2015 and obtained his law degree from the University of Oregon in 2020. While in law school, he interned at the Northern District of Oklahoma. After graduation, he rejoined the office as the 2020 Department of Justice Honors Indian Country Fellow.
George Jiang graduated from Vanderbilt University and received his JD from Notre Dame Law School. He clerked for a U.S. Magistrate Judge in the Southern District of Texas and a U.S. District Judge in the Western District of Pennsylvania. Before joining the Northern District of Oklahoma, he served as a Special Assistant U.S. Attorney at the U.S. Attorney’s Office in Washington D.C.
Aaron Jolly completed his undergraduate degree at Columbia College while working as a deputy sheriff and detective in Camden, Missouri. He later earned his JD from the University of Missouri–Columbia, served for three years as a Special Assistant U.S. Attorney in the Western District of Missouri, and then joined the Northern District of Oklahoma.
Chris Kelly attended Binghamton University and earned his JD from the University of Richmond. Before joining the NDOK, he served as an Assistant District Attorney in New York for fourteen years.
Valeria Luster received her BA from Oklahoma State University and a JD from the University of Oklahoma College of Law. Before joining the Northern District of Oklahoma, she served as an Assistant District Attorney in Adair County for nearly six years.
Nathan Michel is a native of Dodge City, Kansas, and a graduate of Baker University and the University of Kansas School of Law. Before joining the U.S. Attorney’s Office, he served for ten years as a judge advocate in the U.S. Marine Corps.
David Nasar attended the New York University School of Law and graduated in 2003. Before joining the Northern District of Oklahoma, he served an Assistant District Attorney at the New York County District Attorney’s Office for 17 years. Nasar joined the office’s Organized Crime Drug Enforcement Task Force team.
Leah Paisner received her BA from the University of Virginia and her JD and MA from American University. Before joining the Northern District of Oklahoma, she was a Special Assistant U.S. Attorney in the U.S. Attorney’s Office for the Northern District of California in Oakland.
Alex Scott grew up in Marshall, Missouri, before attending the University of Missouri and later graduating from the University of Missouri–Kansas City School of Law. He joined the Northern District of Oklahoma in August, after serving as an Assistant District Attorney in Kansas for more than eight years.
Brandon Skates was born and raised in Indiana, where he earned his law degree from Indiana University’s McKinney School of Law. Before joining the Department of Justice, he spent six years as an Assistant District Attorney and another two years as a Deputy Attorney General in Indiana.
Stacey Todd received her BA from Benedictine College and a JD from Quinnipiac University School of Law. Before joining the Northern District of Oklahoma, she served as the Assistant District Attorney of Modoc County for more than five years. She also served two years in civil litigation in Southern California.
Ben Tonkin grew up in Asheboro, North Carolina, and graduated from Duke University and the University of Pennsylvania Carey Law School. He practiced at a firm in New York City and as an Assistant U.S. Attorney in the Western District of Texas. After the Supreme Court’s ruling, Ben volunteered to come to the Northern District of Oklahoma to assist and has remained with the office.
Sandra Urban was born and raised in Delaware County, Pennsylvania, attended Widener University, and earned her JD from the Stetson University College of Law. Before arriving in the Northern District of Oklahoma, she served as an Assistant District Attorney in the greater Philadelphia area for 12 years.
David Whipple holds undergraduate and graduate accounting degrees from Brigham Young University and received his JD from George Washington University Law School. Before joining the Northern District of Oklahoma, he worked at Fried Frank in Washington D.C. for three years and as trial counsel for the U.S. Securities and Exchange Commission for seven years in Ft. Worth and Salt Lake City. Whipple works white collar crime cases for the district.
Cymetra Williams graduated from Holy Cross, earned two masters degrees at Columbia University, and received her law degree from Seton Hall. After two judicial clerkships, she worked in private practice and served as an Assistant U.S. Attorney in New Jersey. She later volunteered to assist the Northern District of Oklahoma following the Supreme Court’s ruling and has remained with the office.
Tuesday 28 September 2021
Wilson Man Determined to be Career Offender, Sentenced for Distributing Illegal DrugsRead the Press Release
NEW BERN, N.C. – A Wilson man was sentenced today to 151 months in prison for two counts of Distribution of Cocaine Base (Crack); one count of Distribution of Cocaine Base (Crack) and Marijuana; and two counts of Possession with Intent to Distribute Cocaine Base (Crack).
According to court documents, Frank Roosevelt Giggetts, Jr., pled guilty to the charges on February 5, 2020.
In March 2018, officers with the Wilson Police Department learned that Giggetts was selling cocaine base (crack) from his residence in Wilson. Officers then conducted three controlled purchases of controlled substances from Giggetts, including cocaine base (crack) and marijuana.
On August 2, 2018, officers executed a search warrant at Giggetts’s residence and seized additional cocaine base (crack).
On November 9, 2018, Giggetts was arrested on outstanding warrants and was found in possession of additional cocaine base (crack).
Giggetts has 22 prior convictions, including convictions for assault, burglary and drug trafficking. Based on his criminal history, Giggetts was determined to be a Career Offender, resulting in an enhanced recommended sentence.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Wilson Police Department investigated the case and Assistant U.S. Attorney Scott A. Lemmon prosecuted the case.
This case is part of the United States Attorney’s Office’s Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For additional information about this initiative, click here https://www.justice.gov/usao-ednc/tbnc.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-cr-00241-FL-1.
Wenham Man Charged with Fraud Scheme Related to COVID-19 Pandemic ReliefRead the Press Release
BOSTON – A Wenham man was arrested today in connection with a scheme to obtain fraudulent Paycheck Protection Program funds made available under the Coronavirus Aid, Relief, and Economic Security (CARES) Act by submitting false applications.
James Joseph Cohen, 58, was charged with one count of bank fraud. Cohen was released on conditions following an initial appearance in federal court in Boston.
According to the charging documents, between April 2020 and September 2021, Cohen submitted six false applications to financial institutions and to the Small Business Administration to obtain pandemic-related relief funds on behalf of companies that he controlled. It is alleged that in the applications, Cohen falsely misstated the revenues of the companies, the persons employed, or amounts paid to those employees in the 12-month period preceding the application. In total, Cohen is alleged to have fraudulently obtained more than $1.2 million in pandemic relief funds based upon these false submissions.
The charge of bank fraud provides a sentence of up to 30 years in prison, five years of supervised release and a fine of up to $1 million or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorney Sara Miron Bloom of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Washington Man Sentenced to 120 Months in Prison for Attempted Enticement of a Child to Engage in Sexual ActivityRead the Press Release
PEORIA, Ill. – On September 21, 2021, United States District Court Judge James E. Shadid sentenced Thomas R. Alt, 28, of Washington, Ill., to 120 months of imprisonment, to be followed by 15 years of supervised release, for Attempted Enticement of a Child to Engage in Sexual Activity.
Alt was found guilty on May 5, 2021, following a jury trial, in which the United States presented evidence to establish that Alt used the mobile application Grindr to arrange to meet a person he believed to be a 15-year-old minor for sexual activity.
The Federal Bureau of Investigation, Springfield Division, Illinois State Police, Peoria County Sheriff’s Office, and the Peoria Metropolitan Enforcement Group (MEG) investigated the case. Assistant U.S. Attorneys Paul Morris and Keith Hollingshead-Cook represented the government in the prosecution.
“The district-wide ongoing operation to investigate, arrest, and prosecute individuals who use modern communication technology to solicit sex with people they believe to be children has been a tremendous success,” said Acting United States Attorney Doug Quivey. “We will continue to work closely with the FBI and our other law enforcement partners to identify and prosecute those who intend to sexually harm children.”
“A child’s vulnerability to sexual exploitation is magnified over the internet,” said FBI Special Agent in Charge David Nanz. “Today’s sentencing effectively ends Alt’s ability to sexually exploit children and underscores the FBI’s commitment to keep our children safe by going after those who seek to exploit their innocence online. The FBI, along with our law enforcement partners, will aggressively investigate where persons prey on our children.”
The case against Alt was brought as part of Project Safe Childhood, a Department of Justice initiative 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 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.
Virginia Beach Businessman Sentenced for $2.5 Million Tax FraudRead the Press Release
NEWPORT NEWS, Va. – A Virginia Beach man was sentenced yesterday to 48 months in prison for defrauding the IRS out of more than $2.5 million of taxes by, among other things, hiding assets, making false statements about his ability to pay, using a nominee company to conduct business, and diverting huge sums of money to pay creditors instead of the IRS.
“The defendant has been held accountable for attempting to evade the payment of over $2.5 million in tax obligations while he was earning and spending millions of dollars on personal luxury expenses and the mortgage for his oceanfront home in Virginia Beach,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “The sentence imposed in this case should send a clear message of deterrence to others who may be considering unlawfully enriching themselves at the expense of the American taxpayer.”
According to court documents, Richard Yanek, 53, has owned and operated a credit card processing business since at least 1995. Between 2013 and 2018, Yanek withheld employment taxes from his employees, but he failed to consistently pay more than a million dollars of those withholdings to the IRS. Each year, Yanek provided false employment tax forms to his employees, who filed their own taxes and mistakenly believed that the amounts withheld from their wages had been paid to the Social Security program.
“Yanek betrayed his employees’ trust and violated U.S. tax laws for personal financial gain,” said Darrell J. Waldon, Acting Special Agent in Charge of the IRS-Criminal Investigation (IRS-CI) Washington, D.C. Field Office. “He deliberately chose not to pay over employment taxes he withheld from his employees, instead opting to use those monies to fund a life of opulence. For years, he spent millions of dollars on luxury items. Today, justice was served.”
Until recently, Yanek had not filed a personal income tax return or paid personal income taxes since 2010, despite earning and spending millions of dollars on the mortgage for his oceanfront home, personal credit cards, private school tuition, and golf and yacht club dues. Yanek had his personal tax returns prepared by his accountant for the years 2011 through 2016, all of which reported substantial taxes due and owing. However, Yanek intentionally chose not to file these returns with the IRS, and he later made false statements to the IRS and law enforcement when asked why those returns had not been filed.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Darrell J. Waldon, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.
Assistant U.S. Attorney Mack Coleman and former Assistant U.S. Attorney Howard Zlotnick prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:21-cr-26.
Undocumented Individual Sentenced for Trafficking of FirearmsRead the Press Release
LAS VEGAS, Nev. – An undocumented individual residing in Las Vegas was sentenced today to 46 months in prison for trafficking firearms, specifically three AK-47 rifles and one AR-style rifle.
In February 2021, Eduardo Israel Islas-Orozco, 38, pleaded guilty to two counts of illegal alien in possession of a firearm. In addition to the prison term, U.S. District Judge Kent J. Dawson sentenced Islas-Orozco to three years of supervised release.
According to court documents and admissions made in court, on May 19, 2016 and June 9, 2016, Islas-Orozco — who is undocumented — sold three AK-47s and one AR-style semi-automatic firearms to an undercover Las Vegas Metropolitan Police Department (LVMPD) task force officer working with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). When selling these firearms, Islas-Orozco insisted on completing a bill of sale, but did not use his own name as the seller. He also admitted that he believed the firearms would be transported out of the United States to Mexico.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Patrick Gorman for the ATF made the announcement.
This case was investigated by the ATF, with assistance by LVMPD. Assistant U.S. Attorney Jared Grimmer prosecuted the case.
The case was brought as part of Project Safe Neighborhoods (PSN), a nationwide program by the Department of Justice that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Department announced the reinvigoration of PSN. For more information about PSN, visit www.justice.gov/usao-nv.
The public is urged to report illegal firearms activity to the ATF at 1-800-ATF-GUNS (1-800-283-4867).
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U.S. Attorney Announces Unsealing of Indictment Charging Six Individuals and One Corporate Entity with Tax Fraud Conspiracy, and Related Guilty PleaRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, Stuart M. Goldberg, Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division, and James C. Lee, Chief of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the unsealing of an Indictment charging six foreign individuals and a Swiss financial services company with conspiring to defraud the IRS by helping three high-value U.S. taxpayer-clients conceal more than $60 million in income and assets held in undeclared, offshore bank accounts and to evade U.S. income taxes. The case has been assigned to U.S. District Judge Gregory H. Woods. One of the charged defendants was recently arrested in Spain.
Ms. Strauss, Mr. Goldberg, and Mr. Lee also announced today the unsealing of the guilty plea of Wayne Franklyn Chinn, one of the U.S. taxpayer-clients who participated in the tax fraud scheme. The case against CHINN is assigned to U.S. District Judge Victor Marrero. Through a related civil forfeiture action, the Government forfeited approximately $2.2 million in CHINN’s untaxed funds and repatriated these funds from Singapore to the United States.
Manhattan U.S. Attorney Audrey Strauss said: “As alleged, the individual defendants and the Swiss firm Allied Finance conspired to defraud the IRS by assisting U.S. taxpayers in avoiding their tax obligations. They allegedly did this through an elaborate scheme that involved concealing customer assets at a Swiss private bank through nominee bank accounts in Hong Kong and elsewhere, with funds returning to the private bank in the name of a Singapore firm. One such U.S. customer, Wayne Chinn, pled guilty to his participation in the so-called ‘Singapore Solution,’ forfeited more than $2 million to the United States, and awaits sentencing for his admitted crime.”
Acting Deputy Assistant Attorney General Stuart M. Goldberg said: “Prosecuting offshore tax evasion remains one of the Tax Division’s highest priorities. Taxpayers contemplating hiding money abroad – and the foreign bankers, attorneys and finance professionals who design and execute strategies to assist their evasion – should know that the Tax Division and IRS have the investigative resources and expertise to unravel even the most elaborate schemes.”
IRS-CI Chief James C. Lee said: “The defendants allegedly helped their clients conceal more than $60 million in income and assets in an attempt to evade their U.S. tax responsibilities. Through the hard work of IRS-CI and the cooperation of our law enforcement partners, we were able to uncover the massive fraud allegedly being perpetrated by these individuals and hold them accountable for their actions. We are also proud to recognize the guilty plea of Mr. Wayne Chinn. His actions demonstrate complete disregard for the United States tax laws, but thanks to the commitment of our agents, we were able to unravel his scheme and bring him to justice.”
According to the allegations in the Indictment unsealed today[1]:
From in or about 2009 to in or about 2014, Ivo Bechtiger, Bernhard Lampert, Peter Rüegg, Roderic Sage, Rolf Schnellmann, Daniel Wälchli, and Allied Finance Trust AG of Zurich, Switzerland (“ALLIED FINANCE”), the defendants, defrauded the IRS by concealing income and assets of certain U.S. taxpayer-clients with undeclared bank accounts located at Privatbank IHAG Zurich AG (“IHAG”), a Swiss private bank in Zurich, Switzerland,[2] and elsewhere. In order to assist the U.S. taxpayer-clients, the defendants and others devised and implemented a scheme dubbed the “Singapore Solution” to fraudulently conceal the bank accounts of the U.S. taxpayer-clients, their assets, and their income from U.S. authorities. In furtherance of the fraudulent scheme, the defendants and others conspired to transfer more than $60 million from undeclared IHAG bank accounts of three U.S. taxpayer-clients through a series of nominee bank accounts in Hong Kong and other locations before returning the funds to newly opened accounts at IHAG in the name of a Singapore-based asset-management firm. The U.S. taxpayer-clients paid large fees to IHAG and others to help them conceal their funds and assets and evade taxes.
On or about August 16, 2021, defendant PETER RÜEGG, 61, of Switzerland was arrested in Spain. As alleged in the Indictment, RÜEGG was a member of IHAG’s management and a relationship manager for one of the U.S. taxpayer-clients who participated in the Singapore Solution scheme. RÜEGG is alleged to have helped the U.S. taxpayer-client conceal approximately $50 million in undeclared assets at IHAG through the Singapore Solution.
If convicted, the individual defendants face a maximum penalty of five years in prison, and ALLIED FINANCE faces monetary penalties.
The charges in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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Also unsealed today was the guilty plea of Wayne Franklyn Chinn, one of the U.S. taxpayer-clients who participated in the Singapore Solution scheme. According to statements made during CHINN’s plea proceeding, and related court filings:
From at least in or about 2001 through at least in or about January 2019, CHINN concealed approximately $5 million in undisclosed and untaxed income for tax years 2001 through 2018. During this period, CHINN held offshore accounts at IHAG in nominee names. Beginning in 2010, CHINN and others transferred funds from these offshore accounts at IHAG through nominee accounts outside of Switzerland, including in Hong Kong, before returning them to newly opened accounts at IHAG held in the name of a Singapore-based trust company purportedly on behalf of two foundations created by a co-conspirator. They did so to continue to conceal CHINN’s income and assets from U.S. authorities. CHINN subsequently transferred the funds out of Switzerland to undeclared accounts in Singapore. CHINN did not file any tax returns or disclose his offshore bank accounts during the years at issue.
CHINN, 79, of Ho Chi Minh City, Vietnam, and San Francisco, California, pled guilty on December 19, 2019, before U.S. Magistrate Judge Kevin Nathaniel Fox to one count of tax evasion for the calendar years 2001 through 2018, in violation of 26 U.S.C. § 7201, which carries a maximum penalty of five years in prison. CHINN also consented to the civil forfeiture of 83% of the funds held in five accounts at two Singapore banks, which resulted in the successful forfeiture and repatriation to the United States of approximately $2.2 million. The civil forfeiture proceeding is United States of America v. Certain Funds on Deposit in Various Accounts, 20 Civ. 3397 (LJL).
CHINN is scheduled to be sentenced by Judge Marrero on November 19, 2021.
The maximum potential sentences set forth above are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the Court.
Ms. Strauss and Mr. Goldberg praised the outstanding work of IRS-CI. Ms. Strauss thanked the Department of Justice’s Tax Division for their partnership on this case. Ms. Strauss, Mr. Goldberg, and Mr. Lee also thanked the Department of Justice’s Office of International Affairs, the Singapore Attorney-General’s Chambers, and the Commercial Affairs Department of the Singapore Police Force for their assistance in this matter.
This prosecution is being handled by the Complex Frauds and Cybercrime Unit of the United States Attorney’s Office for the Southern District of New York and the Department of Justice’s Tax Division. Assistant U.S. Attorney Olga I. Zverovich of the United States Attorney’s Office for the Southern District of New York and Senior Litigation Counsel Nanette Davis and Trial Attorney Sean Green of the Tax Division are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
[2] In November 2015, IHAG entered into a non-prosecution agreement with the Department of Justice, paid a penalty of approximately $7.4 million, and agreed to cooperate with U.S. authorities.
Two Plead Guilty to Health Care Fraud SchemeRead the Press Release
NEW ORLEANS - U.S. Attorney Duane A. Evans announced DONALD PETER AUZINE (“AUZINE”) and BONNIE JEAN LAWLESS DIAZ (“DIAZ”) have each pled guilty in federal court relating to their roles in a health care fraud conspiracy.
AUZINE, age 51, a resident of Baton Rouge, Louisiana, pled guilty on September 23, 2021 before U.S. District Judge Jay C. Zainey to Count One of an Indictment charging him with conspiracy to commit health care fraud, in violation of Title 18, United States Code, Sections 1347 and 1349.
DIAZ, age 46, a resident of Slidell, Louisiana, pled guilty on September 23, 2021 before U.S. District Judge Jay C. Zainey to Count One of a Superseding Bill of Information charging her with misprision (or knowing concealment) of the commission of a felony, in violation of Title 18, United States Code, Section 4.
According to the Indictment, in or around March 2014, continuing through in or around October 2016, AUZINE, conspired to knowingly and willfully execute a scheme and artifice to defraud TRICARE, a federal health care benefit program affecting commerce, and other health care benefit programs.
AUZINE was the marketing manager of Prime Pharmacy Solutions (“Prime”), which was located in Slidell, Louisiana. Prime Pharmacy was primarily a closed-door pharmacy whose primary business focus was the production of compounded medication, which, when created properly, were drugs combined, mixed, or altered by licensed pharmacists or other practitioners to meet the specialized needs of individual patients. The Pharmacist-in-Charge (“PIC”) was responsible for supervision, management, and compliance with all federal and state pharmacy laws and regulations pertaining to Prime Pharmacy’s pharmacy practice.
The owner, on behalf of Prime Pharmacy, contracted with various entities, including Pharmacy Benefit Managers (“PBMs”), obligating Prime Pharmacy to collect copayments from beneficiaries in order to be reimbursed by various health care benefit programs, including TRICARE. Additionally, the owner of Prime worked with AUZINE to market the compounded medications produced by Prime Pharmacy. AUZINE found other marketers outside of the state to find beneficiaries that were willing to receive medically unnecessary compounds and doctors willing to prescribe compounds without medical necessity.
AUZINE would pressure the pharmacists to fill prescriptions for beneficiaries where no doctor-patient relationship existed. He also aided in the creation of the prescription pads that had the highest value prescription
Beginning in or around March 2014, and continuing through in or around April 2016, Prime Pharmacy dispensed prescriptions for High-Yield Compounded Medications to beneficiaries of TRICARE and other health care benefit programs that were not medically necessary, induced by kickback payments, or where copayments were either waived or credited by Prime Pharmacy, and accordingly, submitted or caused to be submitted false and fraudulent claims for reimbursement to TRICARE, other health care benefit programs, and PBMs.
AUZINE received a percentage of Prime Pharmacy’s profits, including a percentage of the reimbursements paid by TRICARE and other health care benefit programs procured through fraud.
According to the Superseding Bill of Information, DIAZ had knowledge of the commission of the health care fraud. DIAZ concealed the fraud by knowingly submitting or caused to be submitted compounded medications for which there was no medical necessity and did not as soon as possible make known the same to some judge or other person in civil or military authority under the United States.
“Individuals involved in this scheme illegally billed TRICARE out of close to $15 million and I am pleased that the U.S. Attorney’s Office is requiring justice,” said Special Agent in Charge Cynthia Bruce, Defense Criminal Investigative Service, Southeast Field Office. “There are no victimless crimes and DCIS agents will continue to pursue unscrupulous greedy individuals who steal from our military health care system and all taxpayers."
The Court set sentencing of AUZINE and DIAZ for January 4, 2022.
AUZINE faces a maximum term of imprisonment of ten years, a $250,000 fine, three (3) years supervised release, a $100 special assessment fee, and restitution in the amount of $1.2 million.
DIAZ faces a maximum term of imprisonment of three years, a $250,000 fine, up to one (1) year of supervised release following any term of imprisonment, a $100 special assessment fee, and restitution in the amount of $180,000.
The U.S. Attorney’s Office praised the work of the Defense Criminal Investigative Service – Office of Inspector General, the Department of Homeland Security, the Department of Veterans Affairs – Office of Inspector General, and the United States Postal Service – Office of Inspector General.
The prosecution of the case is being handled by Assistant United States Attorney Kathryn McHugh.
Two Niagara County Men Sentenced for Forcing Undocumented Immigrants to Work in Their Mexican RestaurantRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Roberto Montes-Villalpando, 60, of Sanborn, NY, and Abraham Montes, 29, of North Tonawanda, NY, who were convicted of conspiring to harbor aliens for financial gain and causing serious bodily injury, were sentenced by U.S. District Judge Lawrence J. Vilardo. Roberto Montes-Villalpando was sentenced to serve 18 months home incarceration, while his son, Abraham Montes was sentenced to serve six months in prison and six months home detention.
Assistant U.S. Attorneys Meghan A. Tokash and Laura A. Higgins, who handled the case, with support from the Department of Justice’s Civil Rights Division’s Human Trafficking Prosecution Unit, stated that the defendants owned and operated El Cubilete Mexican Restaurant, in Niagara Falls, NY. Between December 2014 and late 2018, the restaurant was located at 9400 Niagara Falls Boulevard. In late-2018, the restaurant moved to 2050 Cayuga Extension in Niagara Falls. Defendant Montes-Villalpando managed the restaurant, supervised the staff, including wait and kitchen staff, made hiring and firing decisions, and determined payroll. Defendant Montes supervised the kitchen staff, which included Victims 1, 2, 3, and 4, who were each natives and citizens of Mexico. The victims—none of whom had legal status in the United States—were employed by the defendants as cooks, food preparers, and dishwashers. In addition, the victims sublet a Niagara Falls apartment rented by defendant Montes-Villalpando.
Between November 1, 2014, and February 18, 2018, the defendants recruited and hired undocumented foreign nationals who had entered the United States illegally to work for them. Montes-Villalpando and Montes enticed prospective laborers who lived and worked in Ohio, including Victim 1 and Victim 2, to work at El Cubilete by promising them better pay and fewer hours. During their employment, Victims 1, 2, 3, and 4 were paid less than required by the Fair Labor Standards Act and by New York State law, which required a minimum wage of $9/hour. According to analysis performed by the Department of Labor, Office of the Inspector General, the victims were underpaid in the following amounts respectively: Victim 1—$5,386.60; Victim 2—$8,513.44; Victim 3—$61,665.40; and Victim 4—$6,006.60.
Additionally, in about February 2018, defendant Montes punched Victim 3 in the nose and stated he would kill Victim 3. Montes then used a fire extinguisher to strike Victim 3 in the head causing him to fall to the ground. Victim 3 was transported to a hospital for medical treatment where he was diagnosed with a broken nose and a laceration on his head was closed with staples.
The sentencings are the result of an investigation by the Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Matthew Scarpino; the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard; the U.S. Department of Labor, Office of Inspector General, Office of Investigations – Labor Racketeering and Fraud, under the direction of Jonathan Mellone, Special Agent-in-Charge of the New York Region; and the Human Trafficking Task Force of Western District New York, which is co-led by the United States Attorney's Office, Erie County Sheriff's Office, and International Institute of Buffalo.
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Three Men Sentenced for Carjacking Lyft DriverRead the Press Release
DETROIT – Three Detroit men have been sentenced for their role in the carjacking of a Lyft driver, announced Acting United States Attorney Saima Mohsin.
Mohsin was joined in the announcement by Special Agent in Charge Timothy Waters, Federal Bureau of Investigation, Detroit Division.
Sentenced were Marquel Bazemore, 20, Jesse Evans, 21 and Joseph Shade-Hubbard, 21. United States District Judge Nancy Edmunds sentenced Bazemore to 96 months in federal prison, Evans to 114 months in federal prison and Shade-Hubbard to 120 months in federal prison.
According to court documents, on August 9, 2019, Bazemore, Evans, and Shade-Hubbard ordered a Lyft (ride-sharing service) through the Lyft mobile application. At approximately 4 a.m. on that day, the Lyft driver (victim) picked up the defendants in a Cadillac Escalade from the area of 8 Mile and 75 in the city of Detroit. The defendants entered the victim’s vehicle and were driven to the area of Mark Twain and Lyndon in Detroit. As the victim attempted to drop the defendants off, defendants Bazemore and Shade-Hubbard exited the Cadillac and began punching the victim. Evans was the front seat passenger, and he (Evans) pulled out a firearm, pointed the firearm at the victim and demanded that he give him everything he had. Bazemore and Shade-Hubbard began going through the victim's pockets and took his wallet, credit cards, and money.
This case was investigated by special agents of the FBI and is being prosecuted by Assistant US Attorney Jeanine Brunson.
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