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5 November 2021
Convicted Felon Sentenced for Unlawful Possession of Firearms, Including Stolen AR-15Read the Press Release
LAS VEGAS, Nev. – A Las Vegas man with multiple prior felony convictions was sentenced today to four years and seven months in prison for unlawful possession of firearms, including a stolen assault rifle.
According to court documents, on January 27, 2020, Matthew Robert Smith, 38, was arrested after law enforcement officers found an AR-15 rifle and a Glock 9mm pistol in his car. Both weapons previously had been stolen from parked vehicles. Smith is legally prohibited from possessing a firearm due to prior felony convictions in Nevada and California.
Smith pleaded guilty in November 2020 to one count of unlawful possession of a firearm. In addition to the prison term, U.S. District Judge James C. Mahan sentenced Smith to three years of supervised release.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Patrick Gorman for the Bureau of Alcohol, Tobacco, Explosives and Firearms (ATF) made the announcement.
This case was investigated by the ATF. Assistant U.S. Attorney Shaheen Torgoley prosecuted the case.
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Connecticut Man Sentenced for Stolen Firearms Offenses and Making False StatementsRead the Press Release
BOSTON – A Connecticut man was sentenced today in federal court in Springfield in connection with stealing 17 firearms from a West Springfield gun shop and making false statements to federal agents.
Fernando Rivera, 25, of New Britain, Conn., was sentenced by U.S. District Court Judge Mark G. Mastroianni to 87 months in prison and three years of supervised release. On May 5, 2021, Rivera pleaded guilty to one count each of theft of a firearm from a Federal Firearms Licensee; being a felon in possession of a firearm; interstate transportation of a stolen firearm; receipt, possession, concealment, storage, barter, sale, or disposition of a stolen firearm in interstate commerce; and making false statements to a federal official.
Shortly after midnight on or about Aug. 29, 2020, Rivera and co-defendant Christian Castro engaged in a crime spree in Vermont, New Hampshire and Massachusetts that included seven ATM thefts or attempted thefts and culminated in the theft of 17 firearms from a federal firearms licensee in West Springfield. At the time of his offenses, Rivera was a felon on state probation for a prior narcotic charge in Connecticut.
On Sept. 18, 2020, federal agents arrested Rivera and Castro at their homes in Connecticut. During interviews with investigators, Castro admitted that he drove to and from several ATM robberies and the gun store robbery, but falsely stated he never received, kept or even touched any of the stolen guns.
During a search of Rivera’s phone, investigators identified several photographs and videos depicting Rivera (and Castro in one instance) with many of the stolen firearms. A forensic extraction of the defendants’ phones revealed communications indicating that on Sept. 4, 2020, Rivera discovered that he was a suspect in the thefts and then traveled with Castro to New York to sell at least three of the firearms.
On Oct. 29, 2021, Castro was sentenced by Judge Mastroianni to 87 months in prison and three years of supervised release.
Acting United States Attorney Nathaniel R. Mendell and James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division made the announcement. Special assistance was provided by the Massachusetts State Police; Springfield, Hadley, West Springfield, New Britain (Conn.) and Middletown (Conn.) Police Departments; Connecticut State Police; Connecticut Department of Correction; and Connecticut Judicial Branch Adult Probation. Assistant U.S. Attorneys Steven H. Breslow and Julian Canzoneri of Mendell’s Springfield Branch Office prosecuted the case.
Company Agrees to Pay $175,000 in Civil Penalties to Resolve Alleged Violations of Controlled Substances ActRead the Press Release
OCEAN SPRINGS, Miss. – Acting United States Attorney Darren LaMarca announced today that Pharmaceutical Trade Services, Inc., which does business as Durbin USA, an importer, distributor, and exporter of pharmaceuticals in Ocean Springs, Mississippi, has agreed to pay the United States $175,000 to resolve allegations that it violated the Controlled Substances Act (CSA) by failing to maintain complete and accurate records of controlled substances, including thousands of doses of Schedule II-IV substances.
In addition to paying $175,000 to resolve the government’s allegations, Durbin USA has entered into a three-year Memorandum of Agreement (MOA) with the Drug Enforcement Administration (DEA), which includes additional responsibilities regarding the handling of controlled substances. The MOA imposes compliance obligations beyond those contained in the applicable laws and regulations.
Congress enacted the CSA to deter the illegal importation, manufacture, distribution, possession, and improper use of controlled substances, including prescription medications. To help achieve this aim, the CSA subjects all registered handlers of controlled substances to strict requirements regarding the inventory control and recordkeeping of controlled substances. These requirements ensure that DEA registrants account for controlled substances from the time that they are purchased until the time that they are delivered to other registrants, dispensed to patients, or discarded. The CSA’s recordkeeping requirements play a vital role in ensuring the appropriate handling, accounting, and distribution of controlled substances.
In response to the Department of Justice’s focus on combatting the opioid epidemic, the DEA has continued to conduct inspections and audits of DEA registrants, including pharmacies, narcotics treatment programs, medical providers, and distributors, throughout the Southern District of Mississippi. Based on results from multiple DEA audits of Durbin USA’s Ocean Springs facility, the United States alleges that Durbin USA violated the CSA by negligently failing to keep accurate records and inventories associated with Schedule II-IV narcotics that the company imported, distributed, and exported between 2013 and 2020.
“This settlement demonstrates our office’s continued commitment to combating the opioid epidemic on all fronts,” said Acting U.S. Attorney LaMarca. “Part of our strategy is making sure that registered opioid handlers keep accurate records of these highly addictive and potentially dangerous drugs. All individuals and facilities, large or small, licensed to handle controlled substances are responsible for maintaining accurate records, and all will be held accountable for any failures.”
“Prescription drug abuse has risen to epidemic proportions, with over 70,000 opioid related overdose deaths in 2020,” said DEA Special Agent in Charge Brad L. Byerley. "DEA Registrants, which include all importers, exporters and distributors, have an obligation to ensure that controlled prescription drugs are being distributed for legitimate use and not being diverted for abuse. Through enforcement and regulatory actions, education, and training, DEA is committed to keeping our communities safe from those who facilitate and enable the abuse of prescription drugs,” said Byerley.
Acting U.S. Attorney LaMarca commended the work of the U.S. Drug Enforcement Administration for its work on this case.
The claims resolved by this settlement are allegations only, and there has been no determination or admission of civil or criminal liability.
Colorado Man Sentenced to Federal Prison for Distributing Fentanyl Disguised as OxycodoneRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces Victor Manuel Ortega-Ochoa, age 47, was sentenced to 41 months in a federal prison followed by two years of supervised release for distribution and possession with intent to distribute fentanyl and possession of a firearm by a prohibited person.
According to the plea agreement, Ortega-Ochoa conspired with others to distribute thousands of pills having the appearance of Oxycodone tablets but that actually contained fentanyl. Ortega-Ochoa personally distributed approximately 3000 of these counterfeit pills during controlled purchases conducted by investigators. During these purchases, Ortega-Ochoa also quoted prices for, and agreed to distribute, multiple pounds of methamphetamine and a kilogram of cocaine. During a search of Ortega-Ochoa’s home, agents discovered two firearms and ammunition in the bedroom where Ortega-Ochoa was arrested. It was illegal for Ortega-Ochoa, who was present in the United States illegally, to be in possession of these firearms.
“The tens of thousands of counterfeit Oxycodone pills currently streaming into our state often contain fentanyl,” said Acting U.S. Attorney Matt Kirsch. “We will continue to aggressively prosecute people distributing these pills, which often cause fatal overdoses.”
“This investigation demonstrates DEA’s commitment to addressing the surge in overdose deaths across our country and more notably here in the State of Colorado. This is unfortunately another example of someone selling counterfeit fentanyl-laced pills disguised as a legitimate diverted medication in our community,” said Acting Special Agent in Charge David Olesky of the DEA Denver Field Division. “We applaud the work of our agents and our partners with IRS Criminal Investigation and the United States Attorney’s Office for their efforts and success in putting this case together.”
United States District Court Judge Christine M. Arguello sentenced Mr. Ortega-Ochoa on November 2, 2021.
The DEA and IRS Criminal Investigation conducted the investigation. Assistant United States Attorney Jeremy Chaffin handled the prosecution of the case.
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Camp Hill Attorney Found Guilty of Obstructing JusticeRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Charles W. Johnston, age 74, of Fairfax County, Virginia, was convicted on November 4, 2021, following a four-day bench trial before United States District Court Judge Jennifer P. Wilson for obstructing a United States Department of Labor (DOL) investigation to determine whether any person had violated federal laws and regulations governing the administration of a labor union pension plan.
According to Acting United States Attorney Bruce D. Brandler, Johnston previously maintained a law office in Camp Hill, Pennsylvania, and is now retired. Johnston began serving as legal counsel to the Plumbers and Pipefitters Local 520 Health and Welfare, Pension, and Annuity Plans in 1972. In 2014, DOL served a subpoena for records on the pension plan in connection with an investigation it was conducting into the pension plan’s financial activities. Johnston contacted the DOL investigator assigned to the investigation and informed him that as the attorney for the pension plan, he would be producing the records.
At trial, the Government proved that Johnston intentionally concealed and withheld from the Department of Labor emails and documents related to an internal audit of the union’s pension plan. The audit findings, which the Government established Johnston received, reported miscalculations of both pension and health and welfare benefits. When asked by DOL whether he had produced all the requested documents, Johnston lied and stated he had done so.
“Obstructing lawful government investigations into financial mismanagement by pension plans is serious criminal behavior and cannot be tolerated,” stated Acting United States Attorney Bruce D. Brandler. “When attorneys engage in this behavior it is particularly serious because attorneys hold a position of trust when representing clients and are expected to uphold the law, not violate it.”
“Charles W. Johnston Esq., attorney for the Plumbers and Pipefitters Local 520 Health and Welfare, Pension and Annuity Plans, illegally obstructed a U.S. Department of Labor, Employee Benefits Security Administration (EBSA) investigation by concealing subpoenaed documents,” said Syreeta Scott, Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General. “This guilty verdict is an affirmation of our commitment to continuing to work with EBSA and our law enforcement partners to investigate those individuals who attempt to derail DOL proceedings that protect the integrity of labor unions and their affiliated benefit plans.”
“The U.S. Department of Labor, Employee Benefits Security Administration, will pursue to the fullest extent of the law those who obstruct the investigative activities of the Agency,” said Michael Schloss, Regional Director of EBSA’s Philadelphia Regional Office.
“Anyone who obstructs a federal investigation is attempting to subvert the course of justice,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “When an attorney, an officer of the court, is doing so, that’s even more egregious. The FBI and our partner agencies will always seek to hold accountable those foolish enough to try to interfere with our cases.”
The case was investigated by the U.S Department of Labor Office of Inspector General, the Federal Bureau of Investigation, and the Employee Benefits Security Administration. Assistant U.S. Attorneys Joseph Terz and Samuel Dalke are prosecuting the case.
The maximum penalty under federal law for this offense is five years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances, and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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California Man Indicted for Firearms OffensesRead the Press Release
LAS VEGAS, Nev. – A California man made his initial court appearance today for allegedly making false statements in connection with the unlawful purchase of multiple firearms and selling the firearms without a license.
According to allegations contained in the indictment, from about May 13, 2020, to about August 17, 2021, Kenneth Earl Smith Jr. — 28, of Lancaster, California — engaged in dealing firearms without a firearms business license. During the purchase of 19 firearms at several Federal Firearms Licensees in Las Vegas, he made false statements on ATF Firearms Transactions Records (Form 4473). As alleged, Smith represented that he was the buyer of the firearms, when in fact he was acquiring the firearms on behalf of other persons. Smith likewise represented that he was a Nevada resident, when in fact he was a California resident.
Smith is charged with eight counts of illegal acquisition of a firearm and one count of engaging in the firearms business without a license. He was arraigned today before U.S. Magistrate Judge Daniel J. Albregts. A jury trial has been scheduled to begin on January 3, 2022 before U.S. District Judge Gloria M. Navarro. If convicted, Smith faces a statutory maximum penalty of 90 years in prison.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Patrick Gorman for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) made the announcement.
This case was investigated by ATF. Assistant U.S. Attorney Dan Cowhig is prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Anyone with information about the unlawful purchase of firearms can call ATF at 1-888-ATF-TIPS (1-888-283-8477), email [email protected], or submit information anonymously at www.reportit.com/.
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Caddo Parish Commissioner and Sister Plead Guilty to Federal Charges Just Days Before Trial Set to BeginRead the Press Release
SHREVEPORT, La. - Acting United States Attorney Alexander C. Van Hook announced that two defendants scheduled to begin trial Monday, November 8, 2021, each entered guilty pleas this evening before United States District Judge Elizabeth E. Foote.
Lynn D. Cawthorne, 54, a Caddo Parish Commissioner and resident of Shreveport, along with his sister, Belena C. Turner, 50, also of Shreveport, each appeared in United States District Court this evening and pleaded guilty to wire fraud in connection with their involvement in a scheme to defraud the Food and Nutrition Service, an agency of the United States Department of Agriculture (USDA) which administers the Child Nutrition Programs. Cawthorne also pleaded guilty to a charge of aiding and assisting in making and subscribing a false tax return in connection with a separate indictment that was returned by a federal grand jury against him in December 2019.
According to information introduced at the hearing, the Child Nutrition Programs administered by the USDA include the Summer Feeding Service Program (SFSP). The SFSP was established to ensure that children in low-income areas continue to receive nutritious meals when school is not in session during the summer. In Louisiana, the SFSP is administered by the Louisiana Department of Education’s (LDOE) Division of Nutrition Support. Meals are prepared and served by SFSP sponsors who are required to follow rules and regulations issued by the USDA and LDOE.
To participate in the SFSP, sponsors are required to submit a “sponsor application” that includes, among other things, a budget estimating revenues and expenses related to the feeding program. Sponsors are also required to submit a “site application” listing the physical address where meals will be served. In the application, sponsors agree to oversee the administration of SFSP at each approved site. Based on guidelines published by the USDA, LDOE regulations require sponsors to maintain certain records, including but not limited to, daily site records documenting the number of Eligible Meals served to Eligible Persons. Sponsors are reimbursed for expenses after electronically submitting claims to LDOE certifying that each claim is true and accurate. Sponsors can also receive an advance of funds to help pay approved expenses.
In 2013, Cawthorne was president of United Citizens and Neighborhoods, Inc. (UCAN) and Turner was the executive director. In 2013, Turner and Cawthorne caused UCAN to apply to the LDOE to participate in the SFSP at various feeding sites in the Western District of Louisiana. In late May 2013, Cawthorne created Harvest Catering, Inc. (Harvest Catering) in the name of an unindicted co-conspirator. However, Cawthorne maintained actual control and decision making over Harvest Catering’s financial activity. More specifically, Cawthorne drafted Harvest Catering checks and maintained a Harvest Catering debit card.
Turner and Cawthorne represented to the LDOE that Harvest Catering would be providing catering services to UCAN at its SFSP sites. In a claim for reimbursement, the defendants submitted a false claim which resulted in a wire being sent on May 20, 2013. On that same date, the LDOE electronically transferred $33,080.78 to UCAN’s bank account using a wire communication traveling in interstate commerce through the Western District of Louisiana. On May 24, 2013, Turner drafted and eventually negotiated a check made payable to a non-profit under her control called Dreamkeepers Academy. In addition, on May 30, 2013, Cawthorne drafted a UCAN check made payable to Harvest Catering in the amount of $8,000. Cawthorne and Turner either via cash withdrawal, check negotiation or debit card used a portion of these funds for personal use and not for the SFSP. The government and the defendants agreed that the loss amount caused by the fraud scheme would be determined at sentencing.
In connection with the tax fraud charge, Cawthorne admitted to hiring a tax return preparer to prepare his 2013 tax return and admitted that he assisted in the preparation of his tax return for the 2013 tax year. Cawthorne received income from Harvest Catering that he failed to report, and he fraudulently reported an adjusted gross income of $7,555 during the 2013 calendar year. Cawthorne knew the statement in his 2013 tax return was false and filed the 2013 tax return on or about April 15, 2014 knowing that it contained false information, in that the amount of his income was higher.
Cawthorne and Turner each face a sentence of up to 20 years in prison, 3 years of supervised release, and a fine of up to $250,000, on the wire fraud count. In addition, Cawthorne faces up to 3 years in prison, a $100,000 fine, or both, on the tax fraud count.
Sentencing for Cawthorne and Turner has been set for March 16, 2022 beginning at 9:30 a.m.
The Louisiana Office of the State Inspector General, FBI, IRS-Criminal Investigation, and USDA-OIG investigated the case. Assistant U.S. Attorneys Tennille M. Gilreath and Brandon B. Brown prosecuted the case.
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Brockton Woman Pleads Guilty to Stealing Veterans Affairs FundsRead the Press Release
BOSTON – A Brockton woman pleaded guilty today in federal court in Boston to stealing veteran affairs benefits.
Robin Calef, 63, pleaded guilty to one count of theft of public funds. U.S. Senior District Court Judge Douglas P. Woodlock scheduled sentencing for March 1, 2022.
In December 2006, Calef’s sister, who was receiving monthly benefits from the Department of Veterans Affairs (VA), passed away. Calef failed to inform the VA of her sister’s death, and the VA continued to deposit monthly benefits into a bank account held by Calef and her sister. From Dec. 1, 2006 to Sept. 20, 2017, Calef stole approximately $102,289 in VA funds from that bank account.
The charge of theft of government funds provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Christopher Algieri, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Mendell’s Major Crimes Unit is prosecuting the case.
Bridgeport Gang Member Sentenced to 78 Months for Federal Gun Possession OffenseRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that CHAZ DEAR, also known as “Spazz,” 24, of Bridgeport, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 78 months of imprisonment, followed by three years of supervised release, for illegally possessing a loaded handgun.
According to court documents and statements made in court, in late 2019, law enforcement received information that Dear, who was on state parole, was selling marijuana. Investigators subsequently made a controlled purchase of marijuana from Dear. On January 30, 2020, Dear was arrested after a court-authorized search of his residence revealed a Glock 27, .40 caliber handgun with an extended magazine loaded with 23 rounds of ammunition, as well as small quantities of heroin and crack cocaine.
Dear has been a member of the “Greene Homes Boyz” (“GHB/Hotz”), a gang based in the Charles F. Greene Homes Housing Complex in Bridgeport’s North End, and his criminal history includes state felony convictions for narcotics, weapon and larceny offenses. In text messages in the weeks prior to his arrest in this case, Dear and other GHB/Hotz members discussed their prior and planned shootings of rival gang members. Judge Bryant found that, in the approximately six months Dear was on state parole prior to his arrest, he was dealing narcotics and firearms, and that the Glock 27 he possessed had the potential to aid those other felony offenses.
Dear has been detained since his arrest. On March 31, 2021, he pleaded guilty to possession of a firearm by a felon.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), Connecticut State Police Statewide Narcotics Task Force and Bridgeport Police Department. The case was prosecuted by Assistant U.S. Attorney Rahul Kale.
This prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN), Project Longevity and Organized Crime Drug Enforcement Task Forces (OCDETF) programs.
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.
Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it. If a group member elects to engage in gun violence, the focused attention of federal, state and local law enforcement will be directed at that entire group.
OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Bonifay Doctor Pleads Guilty to Federal Income Tax CrimesRead the Press Release
PENSACOLA, FLORIDA – Ahmad T. Ismail, 70, of Bonifay, Florida, pled guilty on Wednesday to the subscription and transmission of multiple fraudulent federal income tax returns, announced Jason R. Coody, Acting United States Attorney for the Northern District of Florida.
“The United States relies on the payment of taxes to defend our country and maintain its operations,” stated Acting United States Attorney Coody. “We remain committed to the investigation and prosecution of those who falsely misrepresent their income – whether by traditional evasion or the filing of fraudulent tax income returns.”
At his guilty plea, Ismail admitted in federal court that he filed false federal income returns for the years 2017 and 2018. Ismail agreed that he knowingly understated his gross income by thousands of dollars per year by failing to report all the cash payments he received from patients at his medical practice over the course of the two years in question. During the execution of a federal search warrant on his residence in 2020, law enforcement located $39,000 in cash in Ismail’s residence along with hundreds of thousands of dollars in cash receipts from his practice. The Internal Revenue Service estimates the overall tax loss perpetrated by Ismail to be over $100,000.
“We owe it to every American taxpayer to use all lawful means to identify and prosecute those who evade their taxes,” said IRS Criminal Investigation Special Agent in Charge Brian Payne. “By his own admission, Ismail cheated the U.S. government out of tens of thousands of dollars, and there are consequences for individuals who intentionally conceal income and evade taxes which can include serving time in federal prison and paying back all of the taxes owed with costly penalties and interest.”
Ismail’s sentencing hearing is scheduled for January 20, 2022, at 9:00 am, at the United States Courthouse in Pensacola before the Honorable United States District Judge T.K. Wetherell. Ismail faces up to 6 years imprisonment for the tax crimes as well as the payment of restitution to the Internal Revenue Service.
“FDLE appreciates our federal criminal justice partnerships in keeping those in a position of trust accountable,” said Chris Williams, Florida Department of Law Enforcement Special Agent in Charge, Pensacola Region.
The case was investigated by the Internal Revenue Service – Criminal Investigation, the Florida Department of Law Enforcement, and the Medicaid Fraud Control Unit of the Office of the Attorney General for the State of Florida. The case is being prosecuted by Assistant United States
Attorneys David L. Goldberg and Kaitlin Weiss.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of
Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.Bogalusa Man Pleads Guilty to Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – CHRISTOPHER HARRIS, age 27, a resident of Bogalusa, Louisiana, pled guilty on November 4, 2021 before U.S. Chief District Judge Nannette Jolivette Brown to two counts of an indictment charging him with conspiracy to distribute and possess with intent to distribute fifty (50) grams or more of a mixture or substance containing a detectable amount of methamphetamine, and distribution of fifty (50) grams or more of a mixture or substance containing a detectable amount of methamphetamine; both in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B), announced U.S. Attorney Duane A. Evans.
According to court documents, on July 26, 2019, Agents with the Bureau of Alcohol, Tobacco and Firearms used a confidential source to make a controlled purchase of methamphetamine from HARRIS. The confidential source, under the direction of agents, went to 1100 block of Columbia Street to meet HARRIS to purchase the drugs. The source was greeted at the door by Derrick Mark who made a telephone call to HARRIS to inform him that the source was at the residence to purchase the drugs from him. When HARRIS arrived at the residence, he entered the source’s vehicle and sold the source approximately one hundred six (106) grams of drugs that tested positive for methamphetamine.
HARRIS faces a mandatory minimum term of imprisonment of five (5) years up to a maximum term of imprisonment of forty (40) years, a fine of up to $5,000,000.00, at least four (4) years of supervised release following any term of imprisonment, and a mandatory $100.00 special assessment fee per count.
This prosecution was part of an extensive investigation by the Bureau of Alcohol, Tobacco, and Firearms and the Bogalusa Police Department of individuals suspected of trafficking large quantities of methamphetamine and/or firearms in the Bogalusa area. The prosecution is being handled by Assistant United States Attorney André Jones.
Bicycle Casino Agrees to Pay $500,000 Settlement and Submit to Increased Review of Anti-Money Laundering Compliance ProgramRead the Press Release
NON-PROSECUTION AGREEMENTLOS ANGELES – To resolve an investigation into alleged violations of the anti-money laundering provisions of the Bank Secrecy Act (BSA), the partnership that operates the Bicycle Hotel & Casino in Bell Gardens has agreed to pay $500,000 and undergo enhanced review and reporting requirements designed to prevent future violations of federal law.
According to a Non-Prosecution Agreement (NPA) with federal prosecutors, the Bicycle accepted responsibility for failing to properly file reports for a foreign national who conducted millions of dollars in cash transactions at the casino in 2016. The casino failed to file Currency Transaction Reports (CTRs) and Suspicious Activity Reports for Casinos (SARCS) that are required under the BSA, a law intended to thwart money laundering.
Federal prosecutors entered into the NPA in recognition of the Bicycle’s remedial efforts to strengthen its anti-money laundering program, as well as its acceptance of responsibility, cooperation with authorities during this investigation, and agreement to make a $500,000 payment.
Under the BSA, casinos like the Bicycle are required to implement and maintain programs designed to prevent criminals from using the casino to launder the large sums of cash that illegal activity can generate. For example, casinos must record and report to the government the details of transactions involving more than $10,000 in cash by any one gambler in a 24-hour period. The BSA also requires casinos to file reports documenting suspicious activity, such as efforts designed to avoid the filing of accurate currency transaction reports.
As part of the NPA, the Bicycle admitted that a “high roller” Chinese national gambled at the casino approximately 100 times over an eight-month period in 2016, playing high-limit baccarat in a VIP room with huge sums of cash that on some occasions he transported to and from the casino in duffle bags. A Statement of Facts in the NPA also chronicles some of the high roller’s marathon play sessions, such as one occasion where he withdrew $2 million from his player account at approximately 2:45 p.m. and played in a VIP room through 1:20 a.m. the following morning.
When conducting cash transactions, the high roller relied on an assistant to conduct over $100 million in cash-in or cash-out transactions on his behalf. The Bicycle admitted in the agreement that, from at least January 7, 2016, through July 27, 2016, it improperly filed currency transaction reports in the name of the assistant when it should have referenced the high roller in those reports. The casino also failed to file any SARCs during this period.
Bicycle staff informed senior management in July 2016 of the failure to file CTRs or SARCs in the high roller’s name, according to the Statement of Facts. The Bicycle then took various remedial actions, including amending the CTRs to indicate that the cash transactions were done on the high roller’s behalf, regularly filing SARCs for the high roller based on the suspicious nature of his source of funds, supplementing its compliance department with additional staff and resources, and creating an Anti-Money Laundering Committee comprising members of senior management to meet regularly to discuss BSA compliance issues.
Under the terms of the agreement, the Bicycle agreed to pay the United States $500,000, which represents the revenue the Bicycle made from the high roller. The Bicycle must also implement additional review and reporting requirements to assure BSA compliance, including an audit by a third party and regular reporting to the U.S. Attorney’s Office. The agreement also requires the Bicycle to cooperate with law enforcement in any additional investigations or proceedings arising from the conduct described in the agreement’s statement of facts.
Criminal investigators with the California Department of Justice’s Bureau of Gambling Control, IRS Criminal Investigation, and Homeland Security Investigations investigated this matter.
Assistant United States Attorney Alexander B. Schwab of the Major Frauds Section negotiated the resolution of this investigation.
Atlanta restaurateur sentenced for willful failure to remit payroll taxesRead the Press Release
ATLANTA - Shanga A. Hankerson, the former owner of the Gladys Knight’s Chicken and Waffles restaurant in Atlanta, Georgia, has been sentenced for willful failure to remit payroll taxes.
“Hankerson willfully disregarded his tax obligations for many years,” said Acting U.S. Attorney Kurt R. Erskine. “Payroll taxes fund social insurance programs, including Social Security and Medicare, and are a large source of revenue for the federal government. Employers who fail to comply with their legal obligations will be held accountable.”
“While ownership of a well-known restaurant in our community has its perks, it also comes with great responsibility,” said IRS Criminal Investigation Special Agent in Charge James E. Dorsey. “Paying taxes is a way to give back to the community, but unfortunately Hankerson chose to use those funds for other means. This sentencing emphasizes that all employers, big and small, have equal responsibility to collect, report, and pay over their payroll taxes.”
According to Acting U.S. Attorney Erskine, the charges and other information presented in court: In 1997, Hankerson opened his first restaurant, Gladys Knight’s Chicken and Waffles, in Atlanta. Over the next several years, Hankerson expanded the concept to at least three other locations in northern Georgia and Washington, D.C. Hankerson was the sole owner of the businesses that operated the restaurants.
As an employer, Hankerson’s companies were required to withhold from employees’ gross pay Federal Insurance Contributions Act (“FICA”) taxes, which represent Social Security and Medicare taxes, and federal income taxes. Collectively, these withheld taxes are referred to as “payroll taxes.” Specifically, employers are required to file, one month after the conclusion of the calendar quarter, an Employer’s Quarterly Federal Tax Return, setting forth the amount of payroll taxes due.
An individual is responsible for collecting, accounting for, and paying over the payroll taxes if he or she has the authority required to exercise significant control over the employer’s financial affairs. As the sole owner, Hankerson was the responsible person, and he had the responsibility to collect, truthfully account for, and pay over payroll taxes due. From at least 2012 to 2016, Hankerson failed to fully remit over $1 million in payroll taxes due.
Shanga Hankerson, 45, of Atlanta, Georgia, was sentenced by U.S. District Judge Michael L. Brown to serve two years in prison, one year of supervised release, and ordered to pay restitution of $1,039,310.65. Hankerson was convicted on July 21, 2021, after he pleaded guilty.
This case is being investigated by the Internal Revenue Service Criminal Investigation.
Assistant U.S. Attorney Bernita B. Malloy prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
25 Individuals Charged in Rocky Mount Cigarette Smuggling and Money Laundering OperationRead the Press Release
RALEIGH – G. Norman Acker III, Acting United States Attorney for the Eastern District of North Carolina announced today that on October 20, 2021, a federal grand jury sitting in the Eastern District of North Carolina returned a sealed, twelve-count indictment charging 24 individuals with a scheme to defraud the federal government, the State of North Carolina, the State of New York, the State of New Jersey, and the Commonwealth of Virginia, of millions of dollars in tax revenues from the sale of cigarettes.
This investigation is an effort to end large scale tax fraud and to hold these defendants accountable for the millions in lost tax revenue as the result of their illegal scheme. The individuals charged are:
- Bahjet Shaher Ahmed Dari, 58
- Shaher Bahjat Dari, a/k/a “Boo”, 32
- Hashem Faraj Hatu, 30
- Tamara Delilah Richardson, 27
- Bismillah Barak, 38
- Khalid Naser Hizan, 23
- Jymonica Arnez Gorham, 29
- Adam Husam Salem, 21
- Husam Khaled Salem, 60
- Shelton Dewain Tenor, a/k/a “DC”, 50
- Sierra Nicole Strickland, 28
- Noe De Jesus Vega, 45
- Jermaine Tyrell Underhill, 28
- Sameer Mohammad Dari, 53
- Ali Osama Dari, 22
- Anastasia Chante Harrison, 29
- Leandro Alberto De Los Angeles-Perez, 43
- Amer Mohammed Zughbi, a/k/a “Amer Mohammad Zughbi”, 21
- Toribio Antonio Perez, 55
- Francisco Odalis Perez, 37
- Jason Peralta, 22
- Ahmad Awni Said Marzouq, 35
- Abdulla Mohamed Aezah, 30
- Alicia Walker, a/k/a “Alicia Mendez,” 44
The defendants were arrested yesterday and will be presented before U.S. Magistrate Judge Robert T. Numbers today. U.S. District Judge James C. Dever III presides over the case.
In Count One, the grand jury alleges that the 24 individuals listed in the indictment, had been engaged in a conspiracy, beginning in May of 2021 and continuing until at least the time the indictment was returned, to ship, transport, receive, possess, sell, distribute and purchase cigarettes, in quantities exceeding 10,000 cigarettes (as required by the relevant statute), which bore no evidence of the payment of applicable State or local cigarette taxes in the state and locality where they were found. The object of the conspiracy was to profit from the purchase of cigarettes with cash in North Carolina, drive those cigarettes to the northeast, and sell them without paying the applicable sales tax. This is all alleged to be in violation of Title 18, United States Code, Section 2342 (a) (which prohibits the trafficking in contraband cigarettes and smokeless tobacco) and Title 18, United States Code, Section 371, the general conspiracy statute.
It is alleged in the indictment that members of the conspiracy would repeatedly purchase large quantities of cigarettes from wholesale cigarette outlets in Rocky Mount and Wilson, and then transport those quantities of cigarettes to storage locations for future shipment to Virginia, New Jersey, and New York. After purchasing the cigarettes from the wholesalers, members of the conspiracy would then prepare for transporting the cigarettes to the northeast by using large vehicles and cross into the Commonwealth of Virginia.
Counts Two through Eight allege seven specific instances where the individual(s) named in those counts (and who were part of the conspiracy charged in Count One) knowingly shipped, transported, received, possessed, or aided and abetted contraband cigarettes (in amounts greater than 10,000) which bore no evidence of the payment of applicable state cigarette taxes in the Commonwealth of Virginia. Each of these instances is alleged to be in violation of Title 18, United States Code, Section 2342(a), as well.
Count Nine alleges that all 24 defendants were engaged in a conspiracy to launder money in violation of Title 18, United States Code, Section 1956(h). In this count, the grand jury alleges that members of the conspiracy (a) conducted and attempted to conduct financial transaction affecting interstate commerce which involved the proceeds of specified unlawful activity, that is, cigarette trafficking, with the intent to further the goals of that crime, and that they knew that the property involved in the crime was in fact the proceeds of some form of unlawful activity; and (b) that while they conducted or attempted to conduct the specified unlawful activity – again, cigarette trafficking –the transactions were designed in whole or in part to conceal and disguise the nature, location, source, ownership and control of the proceeds of the unlawful activity. So, in sum, the money laundering conspiracy count alleges that the members of the conspiracy were trying to either further the goals of the crime or to conceal the crime by using the proceeds of the crime in some way or do both those things.
Count Ten alleges that Shaher Bahjat Dari, a/k/a “Boo Boo,” an alien illegally and unlawfully in the United States, possessed a firearm and ammunition.
Count Eleven alleges that Shaher Bahjat Dari, a/k/a “Boo Boo,” possessed with intent to distribute more than fifty (50) kilograms of marijuana.
Count Twelve alleges that Tamara Delilah Richardson possessed with intent to distribute a quantity of marijuana.
If convicted of Count One, the general conspiracy to traffic in contraband cigarettes, each defendant faces up to five years in federal prison and fines of up to $250,000 or both. If convicted of Counts Two through Eight, each defendant named therein faces up to five years in federal prison and fines of up to $250,000. If the defendants are convicted of money laundering as alleged in Count Nine, they each face up to 20 years imprisonment, a $500,000 fine or twice the value of the property involved in the transaction, whichever is greater, or both. In Count Ten, the defendant faces up to 10 years imprisonment, a $250,000 fine or both. In Count Eleven, the defendant faces up to 20 years imprisonment, $250,000 fine or both. In Count Twelve, the defendant faces up to 5 years imprisonment, $250,000 fine or both.
In addition, the grand jury included a forfeiture notice in the indictment. That section of the indictment provides notice to each defendant that the items of property listed in that notice, and any other property which is the proceeds of or involved in the crime, is forfeitable to the United States. The forfeiture notice includes approximately 10,000 cartons of cigarettes, $440,000 in U.S. currency and vehicles that were seized during the investigation.
Further, on November 5, 2021, Wasim Bahgat Dari, 30, will be presented for an initial appearance based on a criminal complaint filed today charging him with trafficking in contraband cigarettes, conspiracy to traffic in contraband cigarettes and conspiracy to commit money laundering.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina said “North Carolina continues to be a target for cigarette trafficking organizations to take advantage of North Carolina as a source of supply of untaxed cigarettes. Any criminal activity that primarily conducts its illicit business with bulk cash, is susceptible to violent crimes occurring in those communities, can attract sophisticated and organized criminal groups, and could be a source of funding for terrorists. This office will continue to aggressively prosecute those organizations that are travelling to or are operating in the Eastern District.”
“Dari’s scheme to launder money and sell contraband cigarettes has gone up in smoke and he will have to answer for his crimes,” said Special Agent In Charge Ronnie Martinez, who oversees Homeland Security Investigations (HSI) operations in North Carolina and South Carolina. “Disrupting and dismantling criminal organizations is a priority for HSI and we will continue to find, arrest and prosecute these criminals.”
“Yesterday morning, Deputy United States Marshals from the Eastern District of North Carolina, and the Carolinas Regional Fugitive Task Force assisted Homeland Security Investigators, Nash County Sheriff’s Office Detectives and other state and local law enforcement officers in the simultaneous arrest of 22 individuals on federal charges. The coordinated arrests occurred in Nash County and surrounding areas, as well as in NY, FL & PA,” commented United States Marshal Michael East. “The arrests were the culmination of extensive investigative work by HSI, the Nash County Sheriff’s Office and the United States Attorney’s Office for the Eastern District of North Carolina. The United States Marshals Service is always willing to assist our federal, state and local partners in the apprehension of criminal suspects and fugitives.”
Nash County Sheriff Keith Stone stated, “This is a perfect example of well-trained law enforcement officers partnering with federal authorities for safer communities. With this case, it’s more than drug cigarette smuggling, it includes acts of violence. This is just another example of organized crime.”
"Edgecombe County Sheriff's Office prides itself on working with federal, state and, local partnerships to ensure our county and surrounding areas are safe and we will continue that relationship," commented Sheriff Clee Atkinson.
This case is being investigated by Homeland Security Investigations, Nash County Sheriff’s Office, Edgecombe County Sheriff’s Office, United States Marshals Service, and the Henrico County, Virginia Sheriff’s Office.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:21-CR-394.
An indictment is merely an accusation. The defendants are presumed innocent until proven guilty.
11 Central Ohio men convicted of conspiring to illegally smuggle hundreds of guns to Canada for profitRead the Press Release
COLUMBUS, Ohio – Eleven defendants have been convicted and sentenced in a conspiracy to smuggle at least 200 firearms from Ohio to Canada for tens of thousands of dollars.
Abdulwahab Sharif Mohamed Hassan, 30, of Columbus, Ohio, was sentenced in federal court today to 72 months in prison.
A federal grand jury charged the co-conspirators in indictments returned on Aug. 19, 2020, and Nov. 19, 2020. Defendants were sentenced to prison terms ranging from 12 months and 1 day to 72 months of imprisonment.
The defendants acquired firearms both legally and illegally, stockpiled the firearms, and smuggled them to Canada to re-sell them for a profit.
The group bought guns both through private sales and through straw purchases at gun shows.
For example, in April 2019, co-conspirators caused two individuals to conduct straw purchases of four firearms at the C&E Gun Show at the Ohio Expo Center in Columbus.
Defendants recruited female drivers to smuggle firearms across the border or to bring money back from Canada through promises of a free trip to Canada, payment, and access to drugs and alcohol.
In July 2018, more than $11,000 was seized by law enforcement from two of the defendants on one trip back to Ohio from Canada. Two months later, more than $25,000 in cash was seized from two other defendants at the John Glenn International Airport. For his part, Abdulwahab Hassan reported during the sentencing process that he had approximately $88,000 in cash on hand, despite not having a job during time periods relevant to the firearms-trafficking conspiracy.
On various occasions in 2019, individuals related to the conspiracy attempted to travel to Canada and were stopped by law enforcement. During each incident, multiple firearms were discovered in the vehicles.
In total, the defendants conspired to smuggle more than 200 guns from Ohio to Canada from approximately July of 2018 through about the middle of 2019. To date, at least 10 of those guns have been directly traced to crimes in Canada.
Those convicted in the conspiracy include:
Name
Also Known As
Age
City of Residence
Abdulwahab Sharif Mohamed Hassan
China
30
Columbus, Ohio
Omar Sharif Mohamed Hassan
O-Bandz
26
Columbus, Ohio
Jamil Jamal Abdalla
22
Columbus, Ohio
Mohamed Abdulkadir Mohamud
Bash
23
Columbus, Ohio
Mohamed Abdi Hirad
Mo Trippin’, Trippin’
21
Columbus, Ohio
Abdirahim Mahmoud Dualeh
A.D.
25
Columbus, Ohio
Shamarke Igal
Marke
25
Columbus, Ohio
Ahmed Ahmed
Seven
22
Columbus, Ohio
Abdiaziz Said Ahmed
Breezy
26
Columbus, Ohio
Ibrahim Ali
Ebey
25
Columbus, Ohio
Mohamed Sharif Ali Mohamed
MoMo
23
Columbus, Ohio
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Roland Herndon, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Columbus Police Chief Elaine Bryant; United States Marshal Pete Tobin; Ohio Highway Patrol Superintendent Lt. Col. Richard Fambro; and Franklin County Sheriff Dallas Baldwin announced the sentences imposed. Assistant United States Attorneys S. Courter Shimeall and Kelly A. Norris represented the United States in this case.
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4 November 2021
Wolf Point man admits murder charge in shooting on Fort Peck Indian ReservationRead the Press Release
GREAT FALLS – A Wolf Point man admitted to a murder charge today in the November 2020 shooting of a man on the Fort Peck Indian Reservation, Acting U.S. Attorney Leif M. Johnson said.
Doratello “DJ” Juan Fischer, 36, pleaded guilty to second degree murder as charged in an information. Fischer faces a maximum of life in prison, a $250,000 fine and five years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris set sentencing for March 9, 2022. Fischer was detained pending further proceedings.
The government alleged in court documents that on Nov. 25, 2020, 911 received a call of a man, later identified as the victim, John Doe, outside of a bar in Wolf Point, on the Fort Peck Indian Reservation, waiving around a gun. Law enforcement determined that Doe shot one round into the ground and then pointed the gun at Fischer. No injuries were reported. On Nov. 27, 2020, a caller to 911 advised that shots had been fired in an area of 5th Avenue South and Helena Street in Wolf Point. A few minutes later, another call to 911 advised that Doe had been shot and was lying on the floor of a residence. Emergency responders and law enforcement transported Doe to a local hospital where he was pronounced dead. An autopsy determined the cause of death was a gunshot wound to the back of Doe.
The government further alleged that immediately before the Nov. 27, 2020 shooting, Doe was seen outside of a residence on 5th Avenue South by at least one of the residents. Law enforcement learned that an individual was driving Fischer around Wolf Point and stopped the car in an alley. Fischer exited the vehicle and shot Doe in the back as Doe was running away. At least one of the residents saw, at the time of the shooting, a man firing a rifle at Doe, who was running down 5th Avenue South. Fischer later told the driver he had killed Doe.
Assistant U.S. Attorneys Lori Harper Suek and Jared C. Cobell are prosecuting the case, which was investigated by the FBI, Fort Peck Tribes Criminal Investigation and Wolf Point Police Department.
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Windham Man Pleads Guilty to Failure to File a Foreign Bank Account ReportRead the Press Release
CONCORD - Georges Mazraani, 57, of Windham, pleaded guilty in federal court on Wednesday to willful failing to file a foreign bank account report, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, federal law requires that a U.S. person having a financial interest in, or signature or other authority over, a bank or other financial account in a foreign country, must file a Foreign Bank Account Report (“FBAR”) with the Treasury Department identifying each foreign account if the aggregate balance of all foreign accounts exceeds $10,000 at any point in the calendar year. FBAR information is used by the federal government in criminal, tax, or regulatory investigations or proceedings. A willful failure to file a required FBAR is a felony.
Defendant Mazraani owned and operated Dot Square, a New Hampshire corporation that exported computers and related goods primarily to Lebanon. He also had a financial interest in bank accounts held in Lebanon, from which he sometimes wired money to Dot Square’s bank account held in Salem, New Hampshire. For calendar year 2012, Mazraani filed an FBAR identifying three accounts in Lebanon. During the years 2013 through 2017, however, Mazraani did not file FBARs, even though he had an interest in at least one Lebanese bank account holding more than $10,000 during each of those years. For example, in calendar year 2017, $554,245 was wired, in 13 separate wire transmissions, from Mazraani’s account at a bank in Beirut to Dot Square’s business checking account in New Hampshire. Although Mazraani’s tax preparer advised the defendant’s bookkeeper about the FBAR filing requirement and Mazraani acknowledged on his 2016 and 2017 tax returns that he was required to file an FBAR, he nevertheless failed to file the report.
Mazraani is scheduled to be sentenced on February 14, 2022.
“Failing to file a Foreign Bank Account Report is a federal crime,” said Acting U.S. Attorney Farley. “By failing to file these reports from 2013 to 2017, the defendant concealed information about foreign bank accounts that he was required to disclose. We will continue to work with our law enforcement partners to identify and prosecute those who commit tax crimes and other financial offenses.”
“The law requires companies who use our country’s financial system to provide financial institutions with truthful information about their business operations, but Georges Mazraani admitted today that he knowingly and willfully failed to do that, over the course of five years. In fact, he went out of his way to conceal his bank accounts in Lebanon, despite a reminder from his bookkeeper,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “The FBI will not hesitate to aggressively investigate companies who are doing business in the United States but failing to adhere to our laws.”
“The accurate reporting of foreign bank accounts ensures fairness and integrity in the U.S. tax system. By his own admission today, Mr. Mazraani deliberately avoided his reporting requirements in an attempt to hide assets. As a result of his actions, he is now subject to a federal felony conviction,” said Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation Division, Boston Field Office.
This matter was investigated by the Internal Revenue Service, Criminal Investigation Division, the Department of Commerce, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney John S. Davis.
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Whiteville Man Sentenced to 17 Years in Drug and Gun CaseRead the Press Release
RALEIGH, N.C. – A Whiteville man was sentenced today by Judge James C. Dever to a total of 204 months for Possession of a Firearm by a Felon, Possession with Intent to Distribute a Quantity of Cocaine and Possessing a Firearm in Furtherance of a Drug Trafficking Crime. On June 24, 2021, Samuel Arnett Jr., 43, pled guilty to the charges.
According to court documents and other information presented in court, the Columbus County Sheriff’s Office engaged in a four-month long narcotics investigation into Arnett. During the summer of 2019, investigators purchased crack cocaine and firearms from Arnett utilizing a confidential source of information. On five separate occasions, Arnett sold quantities of crack cocaine. On two other occasions, Arnett sold firearms to the confidential source and on two additional occasions, Arnett sold both firearms and crack cocaine to the source of information. Based on that investigation, law enforcement executed a search warrant at Arnett’s house in Whiteville. Law enforcement found additional cocaine, drug paraphernalia indicative of the sale of narcotics, two other firearms, ammunition and United States currency.
Arnett was found to be a Career Offender, having two or more convictions for violent felonies. In 2003 Arnett was convicted of two separate Robbery with a Dangerous Weapon charges and in 2005 he was convicted again of Robbery with a Dangerous Weapon.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after the sentencing by U.S. District Judge James C. Dever III. The Bureau of Alcohol, Tobacco and Firearms, Columbus County Sheriff’s office investigated the case and Assistant U.S. Attorney Charity Wilson prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:20-cr-00141-D-1.
West Haven City Employee Charged in COVID Relief Funds Fraud SchemeRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Christina D. Scaringi, Special Agent in Charge of the Office of Inspector General, U.S. Department of Housing and Urban Development, announced that JOHN BERNARDO, 65, of West Haven, was arrested today on a federal criminal complaint charging him for his role in conspiracy to defraud the City of West Haven.
Bernardo surrendered to law enforcement this morning. He appeared before U.S. District Judge Robert M. Spector in New Haven and was released on a $250,000 bond.
As alleged in the complaint, Bernardo has been employed by the City of West Haven as a Housing Specialist in the office of Community Development Administration. Michael DiMassa was employed as an Administrative Assistant to the City Council and was a Connecticut State Representative elected to represent West Haven and New Haven. In January 2021, DiMassa and Bernardo formed Compass Investment Group, LLC. Beginning in February 2021, Compass Investment Group LLC fraudulently billed the City of West Haven and its “COVID-19 Grant Department” for consulting services purportedly provided to the West Haven Health Department that were not performed. From February 2021 through September 2021, the City of West Haven paid Compass Investment Group a total of $636,783.70. It is alleged that Bernardo received at least $45,000 of these funds.
The complaint charges Bernardo with conspiracy to commit wire fraud and wire fraud. Both offenses carry a maximum term of imprisonment of 20 years.
DiMassa was arrested on a federal criminal complaint on October 20, 2021. He is released on a $250,000 bond.
Acting U.S. Attorney Boyle stressed that a criminal complaint is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the U.S. Department of Housing and Urban Development – Office of Inspector General for Investigations. The case is being prosecuted by Assistant U.S. Attorney Ray Miller.
Washington D.C. Man Sentenced to 15 Years in Prison for Armed Robbery, Shooting, and Failing to Register as a Sex OffenderRead the Press Release
RALEIGH, N.C. – A Washington D.C. man was sentenced on November 3, 2021 to 180 months in prison for brandishing a firearm in connection to a crime of violence, possession of firearm by a convicted felon, and failure to register as a sex offender. On May 6, 2021, Joshua Wendell Clark, 25, pled guilty to the charges.
According to court documents and other information presented in court, investigators with the Edgecombe County Sheriff’s Office responded to a robbery call in Tarboro, North Carolina on August 24, 2020. Detectives learned that earlier that day, Clark robbed a Pizza Hut delivery man at gunpoint. When the delivery man arrived to drop off an order, Clark drew a handgun and pointed it at the victim’s head and demanded his money. Clark ultimately took $116 in U.S. currency from the delivery man. Later that same day, officers with the Tarboro Police Department responded to a shots-fired call at the 1100 block of Chapel Street, Tarboro. There they encountered multiple eyewitnesses, including the victim in that case, who advised that Clark attempted to shoot him while the victim sat in his vehicle. When Clark drew his handgun, a physical struggle ensued between the two individuals, and Clark discharged his firearm sending a round through the roof of the victim’s car. Clark then pulled the trigger multiple times after the first round, but the gun did not discharge and appeared to have jammed. Clark then ran away from the scene on foot. While on scene, officers observed a suspicious vehicle that continued to circle the area of the shooting. When officers stopped the car, they observed Clark lying down in the back seat. In Clark’s possession, officers recovered a loaded Springfield XD-40 pistol with a spent shell casing jammed in the chamber.
Prior to the events of August 24, 2020, Clark had a prior felony conviction for second degree child sex abuse from Washington, D.C. As a result, Clark was required to register as a sex offender but never did.
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 James C. Dever III. The Tarboro Police Department, the Edgecombe County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case and Assistant U.S. Attorney Aakash Singh prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:21-CR-15-D.
Washington County Woman Sentenced to 10 Years in Prison for Dealing DrugsRead the Press Release
PITTSBURGH – A former Washington County, PA resident has been sentenced in federal court to 10 years of imprisonment and 5 years of supervised release on her conviction for violating the federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
Senior United States District Judge Joy Flowers Conti imposed the sentence on Breanna M. Bane, 29, formerly of Fredericktown, Washington County, PA, who pleaded guilty in May 2020 to conspiring with codefendants Harvey Hicks and Matthew Pearson to distribute 400 grams or more of fentanyl and 100 grams or more of heroin between March 2019 and May 2019. While on bond for that offense, a grand jury returned an Indictment charging Bane with distributing a quantity of fentanyl analogue on July 3, 2020; Bane pled guilty to that offense on April 27, 2021.
According to information presented to the Court, beginning in March 2019, agents with the Federal Bureau of Investigation and the Pennsylvania State Police began investigating Bane and her codefendants, whom agents believed to be large-scale distributors of heroin and fentanyl in the Western District of Pennsylvania. Through various investigative methods, agents determined that Bane, Hicks, and Pearson were trafficking large quantities of heroin-fentanyl mixtures from the Harrisburg and Hershey, PA areas to the Western District of Pennsylvania for redistribution. On May 1, 2019, agents interdicted Bane and her codefendants following a trip to Hershey, PA, at which time they seized approximately 625 “bricks” – the equivalent of more than 31,000 individual dosage units – of heroin-fentanyl mixtures. Agents seized numerous firearms, ammunition, bulk U.S. currency, and heroin-fentanyl packaging materials from Bane and codefendant Hicks. In connection with her guilty plea, Bane admitted to conspiring with Hicks and Pearson to distribute the heroin-fentanyl mixtures, and that she did so knowing that the drugs were intended for redistribution. In connection with her April 2021 guilty plea, Ms. Bane admitted that on July 3, 2020, she distributed a quantity of fentanyl analogue to a known individual in Washington County, PA, in stamp bags labeled “passion”. In a subsequent search of her residence, troopers seized “passion” stamp bags and a large sum of U.S. currency. Chemical testing determined that the “passion” stamp bags contained fentanyl analogues, which are scheduled controlled substances.
Assistant United States Attorney Jerome A. Moschetta prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Federal Bureau of Investigation, the Pennsylvania State Police Drug Law Enforcement Division, and the Pennsylvania State Police Troop-B Vice Unit for the investigation leading to the successful prosecution of Bane.
Two Men Sentenced for Drug Trafficking on the Menominee Indian ReservationRead the Press Release
Richard G. Frohling, Acting United States Attorney for the Eastern District of Wisconsin, announced that two men received sentences related to their involvement in drug trafficking on the Menominee Indian Reservation on February 24, 2021. Senior United States District Judge William C. Griesbach issued the following sentences:
Defendant
Residence
Date Sentenced
Prison Sentence
Supervised Release Period
John D. Negani (Age: 37)
Lac du Flambeau, WI
October 25, 2021
36 months
48 months
Scott J. Mielkie (Age: 50)
Lake Tomahawk, WI
November 3, 2021
24 months
36 months
Negani pleaded guilty on July 21, 2021, to Possession with Intent to Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(C). Mielkie entered a guilty plea to the same charge on August 3, 2021.
The investigation revealed that in the evening hours of February 24, 2021, Negani and Mielkie were in a vehicle on the Menominee Indian Reservation. A tribal patrol officer stopped the vehicle for an equipment violation, and a subsequent alert by a drug detection police dog led to the discovery of just under 30 grams of methamphetamine and drug paraphernalia. A search of the vehicle also revealed a Dan Wesson Arms .357 Magnum revolver in the vehicle.
According to court records, tribal investigators learned that Negani and Mielkie traveled to the Menominee Indian Reservation from the Lac du Flambeau area, purchased the methamphetamine from a source of Negani’s, and were traveling back “up north” for further distribution.
At their sentencing hearings, Judge Griesbach noted the destruction caused by methamphetamine in Northeastern Wisconsin and on the Menominee Indian Reservation. Judge Griesbach explained that there was a need to send a message, not just to the defendants, but to the entire community that committing crimes while armed would not be accepted.
The Menominee Tribal Police Department and Federal Bureau of Investigation investigated the case. It was prosecuted by Assistant United States Attorney Andrew J. Maier.
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For further information contact:
Public Information Officer Kenneth Gales
(414) 297-1700
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Taylor County man sentenced to 28 years for child pornography chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Dallas Edward Weber, Jr. was sentenced today to 336 months of incarceration for a child pornography charge, United States Attorney William J. Ihlenfeld, II announced.
Weber, 40, pleaded guilty in June 2021 to one count of “Aiding and Abetting Production of Child Pornography.” Weber is accused of using a minor child to engage in sexually explicit conduct and producing child pornography from that conduct in June 2020 in Taylor County.
Assistant U.S. Attorney Sarah E. Wagner prosecuted the case on behalf of the government. The Taylor County Sheriff’s Office and the FBI investigated.
U.S. District Judge Thomas S. Kleeh presided.
Tax Preparer Sentenced for Filing Fraudulent Client ReturnsRead the Press Release
A tax return preparer who filed fraudulent client tax returns was sentenced yesterday to almost two years in federal prison, announced Acting U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Carlos Hinojosa, 37, Mario Jose Sanchez, 48, and Magda Lopez-Sanchez, 51, pleaded guilty this summer to assisting in the preparation of false and fraudulent tax returns. Mr. Hinojosa was sentenced Wednesday by U.S. District Judge Ed Kinkeade to 22 months in federal prison. Mr. Sanchez and Ms. Lopez-Sanchez were each sentenced to three years’ probation. Judge Kinkeade ordered each of the defendants to pay more than $6 million in restitution, joint and severally, to the IRS.
From 2012 through 2016, Mr. Hinojosa, Mr. Sanchez, and Ms. Lopez-Sanchez worked as tax return preparers at Miguelitos Tax Service, a tax preparation service located in Carrolton, Texas.
According to plea papers, while at Miguelitos, the defendants prepared tax returns that included, among other false statements, false tuition expenses to make the clients appear eligible for education credits that they knew the clients were not eligible to receive. Mr. Hinojosa admitted that he generally included these false expenses on his clients' tax returns without the clients’ knowledge.
To conceal the falsity of the returns, the defendants attempted to have clients sign forms justifying the expenses. Mr. Hinojosa admitted he did not explain the forms to clients and most had no idea what they were signing. He further admitted that he charged clients cash for preparing their returns – sometimes as much as $2,000 – without informing them that Miguelitos would also deduct a tax preparation fee from their tax refunds.
Mr. Hinojosa, Mr. Sanchez, and Ms. Lopez-Sanchez agreed their actions, along with the conduct of coconspirators at Miguelitos, resulted in a tax loss to the Internal Revenue Service of $7,306,191 for tax years 2010 through 2016.
IRS Criminal Investigation conducted the investigation. Assistant U.S. Attorneys Douglas Brasher and Andrew Wirmani (fmr.) prosecuted the case.
Syracuse Man Sentenced for Role in Drug ConspiracyRead the Press Release
SYRACUSE, NEW YORK - Luis Carrasquillo, age 34, of Syracuse was sentenced today to serve 71 months in federal prison for his membership in a conspiracy to distribute controlled substances, and his previous guilty plea to distribution of a mixture of heroin and fentanyl, as well as cocaine, announced United States Attorney Carla B. Freedman, John B. DeVito, Special Agent in Charge of the New York Field Division of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), and Chief Kenton Buckner, City of Syracuse Police Department.
As part of his previous guilty plea, Carrasquillo admitted that he conspired with Waldemar Colon and Isidro De Los Santos to sell heroin mixed with fentanyl, and cocaine from De los Santos’s apartment on Gifford Street in Syracuse as part of a conspiracy that existed from December 2018 through January 31, 2019. Carrasquillo also pled guilty to aiding and abetting the sale of a mixture of heroin and fentanyl, as well as a separate quantity of cocaine on December 6, 2018.
On January 31, 2019, ATF Special Agents assisted by DEA and the Syracuse Police Department-Intelligence Unit executed a federal search warrant at Isidro De Los Santos’s residence and recovered over twenty-one ounces (608 grams) of heroin mixed with fentanyl in two packages. A federal search warrant executed at the adjacent apartment of another involved defendant, Anthony Moreno, on the same day resulted in the seizure of over 18 ounces (521grams) of cocaine.
Carrasquillo was also ordered to serve a 3-year term of supervised release following his prison sentence.
Isidro De Los Santos pled guilty to conspiracy to possess with intent to distribute controlled substances, and distribution of controlled substances, and was sentenced on November 13, 2020 to serve a sentence of nine years (108 months) in prison, and a 5-year term of supervised release.
Anthony Moreno pled guilty to conspiracy to possess with intent to distribute controlled substances, and on November 17, 2020 was sentenced on to serve 51 months in prison, followed by a 5-year term of supervised release.
Waldemar Colon pled guilty to conspiracy to possess with intent to distribute controlled substances, and distribution of controlled substances, and is awaiting sentencing.
This case was investigated by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Syracuse Police Department-Intelligence Section, and the United States Drug Enforcement Administration (DEA), and is being prosecuted by Assistant U.S. Attorney Richard Southwick.
Syracuse Man Sentenced for Drug SalesRead the Press Release
SYRACUSE, NEW YORK – Wilfredo Fuentes, age 36, of Syracuse was sentenced today to serve 96-months in federal prison for distributing heroin, fentanyl, and cocaine in Syracuse, announced United States Attorney Carla B. Freedman, John B. DeVito, Special Agent in Charge of the New York Field Division of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), and Chief Kenton Buckner, City of Syracuse Police Department.
Fuentes was also sentenced to a 3-year term of supervised release following his prison sentence, and to ordered to forfeit $3,400.00 in drug proceeds.
As part of his previous guilty plea, Fuentes admitted that he sold heroin, fentanyl, and cocaine on two occasions during an ATF/SPD undercover enforcement operation in Syracuse. Fuentes was previously convicted of two New York State felony drug crimes.
This case was investigated by United State Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Syracuse Police Department-Intelligence Section, and the United States Drug Enforcement Administration (DEA), with assistance from the New York State Department of Corrections and Community Supervision (DOCCS-Parole) and was prosecuted by Assistant U.S. Attorney Richard Southwick.
St. Thomas Man Convicted at Trial of Felon in Possession of a Firearm Sentenced to 33 Months in Federal PrisonRead the Press Release
St. Thomas, USVI – Leroy Henry, Jr., 30, of St. Thomas, was sentenced in District Court on one count of being a felon in possession of a firearm, United States Attorney Gretchen C.F. Shappert announced.
Chief District Court Judge Molloy sentenced Henry to 33 months of imprisonment followed by two years of supervised release.
An anonymous Crime Stoppers tip revealed that Leroy Henry, Jr., a convicted felon, possessed a hidden compartment in his blue Infiniti, where he maintained an unregistered firearm that he planned to use to exact revenge on his brother’s murderer. This information led to the FBI executing a search warrant on January 14, 2020. Federal agents searched Leroy Henry, Jr.’s car and located a fully loaded .23 Glock pistol, along with two magazines, in a hidden compartment underneath the vehicle’s center console cupholders.
During a subsequent interview, Leroy Henry Jr. acknowledged to the agents that he had previously obtained the firearm from a friend.
DNA samples collected from the gun were compared to a sample of Henry’s DNA. An FBI forensic examiner testified at the trial that a DNA analysis revealed that it was 78 septillion times more likely that Henry’s DNA was present on the Glock confiscated from his vehicle.
The Virgin Islands Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Assistant U.S. Attorneys Meredith J. Edwards and George Andrew Massucco-LaTaif prosecuted the case.
This case is part of the Department of Justice’s Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is a nationwide initiative that brings together federal, state, local and tribal law enforcement officials, prosecutors, and community leaders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. For more information on the Department of Justice’s Project Safe Neighborhoods, please see: https://www.justice.gov/psn.
St. Louis County Sex Offender Sentenced to 192 Months in Prison for Distribution of Child PornographyRead the Press Release
ST. PAUL, Minn. – A St. Louis County man was sentenced today to 192 months in prison followed by twenty years of supervised release for distribution of child pornography.
According to court documents, Michael Patrick Bushey, 32, admitted to the September 20, 2015 distribution of child sexual abuse images. Bushey further admitted that more than 3,900 images and at least 16 videos depicting children engaged in sexually explicit conduct, including images of prepubescent minors under the age of 12, were discovered in the cell phone and accounts he possessed.]
Bushey has previous State of Minnesota child pornography convictions and was on probation for those convictions when he committed the distribution offense. He served 33 months for violation of probation on those convictions before being taken into federal custody. Bushey pleaded guilty on June 14, 2021, to one count of distribution of child pornography.
Acting U.S. Attorney W. Anders Folk for the District of Minnesota made the announcement after U.S. District Judge Eric C. Tostrud sentenced the defendant.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case is the result of an investigation conducted by the FBI and the Minnesota Bureau of Criminal Apprehension.
This case was prosecuted by Assistant U.S. Attorney Manda M. Sertich.
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South Florida Addiction Treatment Facility Operators Convicted in $112 Million Addiction Treatment Fraud SchemeRead the Press Release
After a seven-week trial, a federal jury in the Southern District of Florida convicted two operators of two South Florida addiction treatment facilities for fraudulently billing approximately $112 million for services that were never provided or were medically unnecessary, and for paying kickbacks to patients through patient recruiters, and receiving kickbacks from testing laboratories. One defendant was also convicted of money laundering, and of separate charges of bank fraud connected to Paycheck Protection Program (PPP) loans.
According to court documents and evidence presented at trial, Jonathan Markovich, 37, and his brother, Daniel Markovich, 33, both of Bal Harbour, conspired to and did unlawfully bill for approximately $112 million of addiction treatment services that were never rendered and/or were medically unnecessary, and that were procured through illegal kickbacks, at two addiction treatment facilities that they operated, Second Chance Detox LLC, dba Compass Detox (Compass Detox), an inpatient detox and residential facility, and WAR Network LLC (WAR), a related outpatient treatment program. Jonathan Markovich, who owned both facilities, was also convicted of bank fraud in connection with PPP loan applications in which he falsely stated that Compass Detox and WAR were not engaged in illegal conduct.
The evidence showed that defendants obtained patients through patient recruiters who offered illegal kickbacks to patients (such as free airline tickets, illegal drugs, and cash payments). The defendants then shuffled a core group of patients between Compass Detox and WAR to fraudulently bill for as much as possible. Patient recruiters gave patients illegal drugs prior to admission to Compass Detox to ensure admittance for detox, which was the most expensive kind of treatment offered by the defendants’ facilities, therapy sessions were billed for but not regularly provided or attended, and excessive, medically unnecessary urinalysis drug tests were ordered. Compass Detox patients were given a so-called “Comfort Drink” to sedate them, and to keep them coming back. Patients were also given large and potentially harmful amounts of controlled substances, in addition to the “Comfort Drink,” to keep them compliant and docile, and to ensure they stayed at the facility. Certain patients were also routinely re-admitted and repeatedly cycled through Compass Detox and WAR to maximize revenue.
“These substance abuse treatment facility operators orchestrated a massive, multi-year fraudulent billing scheme by taking advantage of patients seeking treatment,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The convictions today further demonstrate the success of the Department of Justice’s Sober Homes Initiative in protecting patients and prosecuting fraudulent substance abuse treatment facilities.”
“Their tactics were brazen and the dollar losses immense,” said Special Agent in Charge George L. Piro of FBI’s Miami Field Office. “These health care fraudsters, driven by greed, sought to cheat their way to riches by billing tens of millions of dollars from various health care programs. The FBI and our law enforcement partners will investigate and criminally prosecute such fraud to the fullest extent of the law.”
Both defendants were convicted of conspiracy to commit health care fraud and wire fraud. Jonathan Markovich was convicted of eight counts of health care fraud and Daniel Markovich was convicted of two counts of health care fraud. They were also convicted of conspiracy to pay and receive kickbacks and two counts of paying and receiving kickbacks. Jonathan Markovich was separately convicted of conspiring to commit money laundering, two counts of concealment money laundering, and six counts of laundering at least $10,000 in proceeds of unlawful activities, as well as two counts of bank fraud related to his fraudulently obtaining PPP loans for both Compass Detox and WAR during the COVID-19 pandemic. Both defendants are scheduled to be sentenced on Jan. 13, 2022. They each face a maximum of 20 years for the health care fraud and wire fraud conspiracy count, 10 years for each substantive count of health care fraud and paying and receiving kickbacks, and five years for the kickbacks conspiracy. Jonathan Markovich faces additional maximum sentences of 20 years for conspiracy to commit money laundering, 20 years for each substantive count of concealment money laundering, 10 years for each additional count of money laundering, and 30 years for each substantive count of bank fraud. A federal district court judge will determine the sentences after considering the U.S. Sentencing Guidelines and other statutory factors. A related trial is scheduled to begin on Feb. 28, 2022, in the Southern District of Florida, for four other defendants charged in this case.
The FBI, the Department of Health and Human Services, Office of Inspector General, and Broward Sheriff's Office investigated the case.
Senior Litigation Counsel Jim Hayes and Trial Attorney Jamie de Boer of the Criminal Division’s Fraud Section are prosecuting the case.
The National Rapid Response Strike Force and Los Angeles Strike Force lead the Department of Justice’s Sober Homes Initiative, which was announced in the 2020 National Health Care Fraud Takedown to prosecute defendants who exploit vulnerable patients seeking treatment for drug and/or alcohol addiction.
Slidell Resident Pleads Guilty to Conspiring to Distribute Heroin, Cocaine, and Crack Drugs After Heroin Found in a Safe Being Moved from His Stash HouseRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that KENDRICK DEMOURELLE, age 40, a resident of Slidell, Louisiana, pled guilty on November 2, 2021 to conspiring to distribute a kilogram or more of heroin, five kilograms or more of cocaine, and 280 grams or more of crack cocaine. DEMOURELLE is facing a mandatory minimum of ten years and up to life in prison, a fine of up to $10,000,000, at least five (5) years of supervised release upon his release from prison, and a $100 mandatory special assessment fee for each drug offense, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(A), and 846.
According to court records, DEMOURELLE and four others, Joseph Brown, Lionel Cooley, Blake Monroe, and Kevin Gray, conspired to sell illegal narcotics in New Orleans. A portable safe being moved from DEMOURELLE’s stash house during a court-approved search contained nearly one kilogram of heroin. A repossessed GMC Sierra pickup truck used by Cooley contained nearly two kilograms of cocaine and 430 grams of crack. More than 400 grams of heroin, 125 grams of cocaine, a kilo press, and other drug paraphernalia were seized in Gray’s home in Chalmette, Louisiana, during a court-authorized search.
The evidence against DEMOURELLE includes the seizure of more than $50,000 and firearms found in his Denali truck after he sold two kilograms of cocaine to Cooley.
U.S. District Judge Wendy Vitter will sentence DEMOURELLE on February 15, 2022. DEMOURELLE, Brown, Cooley, Gray, and Monroe were charged in February 2020 with conspiring to distribute cocaine, crack, and heroin in the New Orleans area. All five had pled guilty to drug offenses.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration, Jefferson Parish Sheriff’s Office, Hammond Police Department, New Orleans Police Department, and Slidell Police Department in investigating this matter. Assistant United States Attorney David Howard Sinkman is in charge of the prosecution.
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Russian National Indicted for Making False Statements to the FBIRead the Press Release
Special Counsel John Durham today announced that a federal grand jury returned an indictment in the U.S. District Court for the Eastern District of Virginia charging Igor Danchenko, 43, a Russian citizen residing in Virginia, with five counts of making false statements to the FBI. The charges in the indictment stem from statements made by Danchenko relating to the sources he used in providing information to a U.K. investigative firm that prepared what are identified in the indictment as “Company Reports.”
The indictment was returned on Nov. 3 and unsealed today. Danchenko was arrested earlier today and is scheduled to appear before U.S. Magistrate Judge Theresa C. Buchanan today at 2:30 p.m.
According to the indictment, on June 15, 2017, March 16, 2017, May 18, 2017, Oct. 24, 2017, and Nov. 16, 2017, Danchenko made false statements regarding the sources of certain information that he provided to a U.K. investigative firm that was then included in reports prepared by the U.K. investigative firm and subsequently passed to the FBI. The June 15, 2017, false statement count alleges that Danchenko denied that he had spoken with a particular individual about material information contained in one of the Company Reports when he knew that was untrue. The March 16, 2017, May 18, 2017, Oct. 24, 2017, and Nov. 16, 2017, counts involve statements made by Danchenko on those dates to FBI agents regarding information he purportedly had received from an anonymous caller who he believed to be a particular individual, when in truth and in fact he knew that was untrue. The information purportedly conveyed by the anonymous caller included the allegation that there were communications ongoing between the Trump campaign and Russian officials and that the caller had indicated the Kremlin might be of help in getting Trump elected.
Charges contained in an indictment are only allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is being prosecuted by Assistant Special Counsel Andrew J. DeFilippis, Assistant Special Counsel Michael T. Keilty, and Assistant Special Counsel Jonathan E. Algor, with the support and assistance of other members of Special Counsel Durham’s team. The Special Counsel’s investigation is ongoing.
Rocky Mount Man Sentenced to 71 Months for Second Federal Firearm ConvictionRead the Press Release
WILMINGTON, N.C. – A Rocky Mount man was sentenced on November 3, 2021 to 48 months in prison for possession of a firearm by a convicted felon, to be served consecutive to a term of 23 months for violating supervised release on his prior federal conviction for the same offense. On August 8, 2021, Tyree Leron Stewart, 29, pled guilty to the charge.
According to court documents and other information presented in court, on September 16, 2020, officers with the Rocky Mount Police Department responded to a shot-spotter alert in the area of Henna Street, Rocky Mount, North Carolina. There, officers observed Stewart standing beside a vehicle parked in the driveway of his residence. When officers approached to ask Stewart if he had observed anything, Stewart began acting nervous and positioned his body away from the officers as if he were attempting to conceal something. Officers asked Stewart to show his hands, but Stewart did not raise his right hand. When Stewart ultimately raised his right hand, officers heard a loud thud on the ground. Officers observed a sawed-off shotgun on the ground and ordered Stewart to step away. Before officers could detain Stewart, he fled on foot throughout the area before ultimately returning to his house. Stewart then exited the residence and surrendered to police. Officers secured a search warrant for Stewart’s residence and recovered twenty-two 12-gauge shotgun shells. The firearm was identified as a sawed-off 12-gauge shotgun with a 13-inch barrel. At the time, Stewart had accrued three prior felony convictions for the same offense, possession of a firearm by a convicted felon, and was serving an active term of federal supervised release.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Rocky Mount Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case and Assistant U.S. Attorney Aakash Singh prosecuted the case.
On August 18, 2021, U.S. District Judge Louise W. Flanagan sentenced Stewart to a term of 23 months imprisonment for violating his federal supervised release.
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 Nos. 5:21-CR-194-M and 5:18-CR-168-FL.
Rochester Man Going to Prison and Ordered to Pay Millions in Restitution for His Role in Ponzi Scheme That Bilked Investors Out of Millions of DollarsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, NY – U.S. Attorney Trini E. Ross announced today that John Piccarreto, Jr., 38, of Rochester, NY, who was convicted of conspiracy to commit mail fraud and filing a false tax return, was sentenced to serve 84 months in prison by U.S. District Judge Frank P. Geraci, Jr. the defendant was also ordered to pay restitution totaling $19,842,613.66.
Assistant U.S. Attorney John J. Field, who handled the case, stated that between 2017 and June 2018, the defendant conspired with co-defendants Perry Santillo, Christopher Parris and others, to obtain money through an investment fraud commonly known as a Ponzi scheme. The scheme, which was conducted under the umbrella of a business entity called Lucian Development, involved the sale of fraudulent promissory notes that were issued under the names various entities that Santillo and Parris controlled, including Lucian Development. The issuers received money from new investors, and then redistributed that money to repay earlier investors, to pay the expenses of the scheme, and to finance the lifestyles of Santillo, Parris and others involved in the scheme. Piccarreto was initially unaware that the business was a Ponzi scheme when he began working for Lucian Development in March 2012. As he gained experience with investments and obtained a securities license, Piccarreto’s responsibilities increased. By January 2017, the defendant realized that the Lucian Development business was, indeed, a Ponzi scheme after the company stopped paying promised returns to client investors whom he serviced. However, rather than severing his association with Lucian Development, Piccarreto continued to work for Santillo and Parris, knowingly lying to investors by falsely reassuring them that their investments were safe and secure, even though he knew this was not true, and encouraging investors to “reinvest” their fraudulent investments by signing new promissory notes.
Between January 1, 2017, and June 19, 2018, Piccarreto was involved in defrauding approximately 400 investors out of approximately $18,081,556, which resulted in financial hardship to more than 25 of its investor victims. Piccarreto also admitted that, while working in Texas, he personally solicited and defrauded at least eight investors out of approximately $598,695. In addition, on his 2017 tax return, the defendant claimed a taxable income of $6,576. In fact, Piccarreto’s taxable income was approximately $538,548, which resulted in the defendant avoided paying income taxes to the IRS in the amount of approximately $159,423.
Perry Santillo and Christopher Parris were previously convicted and are awaiting sentencing.
The sentencing is the result of an investigation by the United States Postal Inspection Service, under the direction of Inspector-in-Charge Ketty Larco-Ward, Boston Division; the Federal Bureau of Investigation, Buffalo Division, under the direction of Special Agent-in-Charge Stephen Belongia, and FBI Scranton Division; the Internal Revenue Service, Criminal Investigation Division, under the direction of Thomas Fattorusso, Acting Special Agent-in-Charge; 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, New York Region, the New York State Department of Financial Services, under the direction of Acting Superintendent Adrienne A. Harris; and the Securities and Exchange Commission.
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Rhode Island Man Arrested for Unemployment Fraud Scheme Related to COVID-19 PandemicRead the Press Release
BOSTON – A Rhode Island man was arrested today in Michigan and charged in federal court in Boston in connection with his alleged involvement in a fraudulent scheme to obtain over $450,000 in COVID-19-related unemployment assistance.
Dquintz Alexander, 34, of Cranston, R.I., was indicted on five counts of wire fraud, one count of conspiracy to commit wire fraud and one count of aggravated identity theft. Alexander was released on conditions following an initial appearance in the Eastern District of Michigan this afternoon and will appear in federal court in Boston at a later date.
In March 2020, in response to the global coronavirus pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which among other things, created a temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA). The PUA program, which in Massachusetts was administered by the Department of Unemployment Assistance, provided unemployment insurance benefits for individuals who are not eligible for other types of unemployment benefits.
According to the charging documents, Alexander participated in a scheme that obtained over $450,000 in proceeds from fraudulent PUA claims submitted between April and June 2020 in Massachusetts. Alexander and co-conspirator Norman Higgs allegedly opened bank accounts to receive payments on the fraudulent PUA claims. It is alleged that Alexander and Higgs used various methods to hide their identities in an effort to conceal the scheme, including Virtual Private Network (VPN) services, overseas email accounts and phone numbers from Voice over Internet Protocol (VoIP) services.
On Sept. 17, 2021, Higgs pleaded guilty to one count of wire fraud conspiracy and is scheduled to be sentenced on Dec. 17, 2021.
The charges of wire fraud and conspiracy to commit wire fraud each provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutively to any other sentence imposed. 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 Jonathan Mellone, Special Agent in Charge of the Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigations, made the announcement today. The Massachusetts Department of Unemployment Assistance provided valuable assistance with the investigation. Assistant U.S. Attorney Christopher J. Markham 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 documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Reno Man Indicted for Child Sexual Exploitation and Child Pornography OffensesRead the Press Release
RENO, Nev. – A Reno man made his initial court appearance yesterday for alleged sexual exploitation of children and child pornography offenses.
According to allegations in the indictment, James Patrick Burns, 53, threatened two children on social media applications to coerce them into producing multiple images and videos of child pornography. Burns then advertised and distributed those child pornography images and videos online to others. In addition, he allegedly advertised, possessed, distributed, and received sexually explicit images of children. Burns is registered as a sex offender related to a previous conviction.
Burns is charged with two counts of sexual exploitation of children, one count of advertising child pornography, one count of distribution and receipt of child pornography, and one count of possession of child pornography. He appeared before U.S. Magistrate Judge William G. Cobb and was detained pending trial.
A jury trial has been scheduled to begin on January 3, 2022 before Chief U.S. District Judge Miranda M. Du. If convicted, Burns faces a statutory maximum penalty of 50 years in prison for each count of child exploitation.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI made the announcement.
This case was investigated by the Northern Nevada Child Exploitation and Human Trafficking Task Force, FBI, Washoe County Sheriff’s Office, Sparks Police Department, Nevada Attorney General’s Office, Homeland Security Investigations, and Los Angeles County Sheriff’s Office. Assistant U.S. Attorney Andolyn Johnson is prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals, federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, visit www.usdoj.gov/psc.
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Red Lake Man Pleads Guilty to AssaultRead the Press Release
ST. PAUL, Minn. – A Red Lake man pleaded guilty today to assault resulting in substantial bodily injury, announced Acting U.S. Attorney W. Anders Folk.
According to court documents, Chad Joseph Sumner, Sr., 42, admitted to assaulting victim “Jane Doe,” at her home on June 30, 2019. As a result of the assault, Jane Doe had a laceration above her right eye and blood on her shirt.
Sumner pleaded guilty today before U.S. District Judge Eric C. Tostrud to one count of assault resulting in substantial bodily injury. A sentencing date has not been set.
This case is the result of an investigation conducted by the Red Lake Department of Public Safety and the FBI.
Assistant U.S. Attorney Deidre Y. Aanstad is prosecuting the case.
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Promoting Safe Traffic Stops: A Driver’s Education Safety Collaboration Between the U.S. Attorney’s Office, the Delaware State Police, and the Wilmington Police DepartmentRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, Delaware State Police Colonel Melissa A. Zebley, and Wilmington Police Chief Robert J. Tracy, today announced an ongoing effort with school districts throughout Delaware to teach driver’s education students how to engage safely with law enforcement. Thanks to Principal Lisa Brewington, more than 200 William Penn High School driver’s education students participated in the “Road Rules and Rights” program this week.
Road Rules and Rights is an interactive learning experience designed to encourage good decision-making during routine traffic stops for high school sophomores. During a 90-minute learning experience, driver’s education students engage in discussions with law enforcement and simulate a traffic stop. Ultimately, the program emphasizes both the Constitutional rights and statutory obligations of new drivers during law enforcement encounters.
William Penn, the State’s largest high school, is the most recent program participant. Statewide, the Road Rules and Rights Initiative has educated over 1,200 new student drivers about roles, responsibilities, and rights during traffic stops since the beginning of the 2021-2022 school year.
USA Weiss commented about this week’s work at William Penn High School:
“I want to thank our partners in the Colonial School District and schools throughout the state for embracing this needed program. Fundamentally, this is about breaking down barriers. Through classroom participation, the William Penn students interacted with Delaware State Police and Wilmington Police Department officers and a prosecutor from my office to simulate a variety of common traffic stop fact patterns. The Road Rules and Rights Initiative provides a hands-on opportunity for students to better understand common police practices. By learning basic safety tips, traffic stops will be shorter and safer for the public and those law enforcement officers who serve us on Delaware’s roadways.”
“The safety and well-being of our students remains a top priority at William Penn. We wish to thank all involved with educating our students about how to properly engage with police. Activities such as this, helps to foster relationships and instill confidence and trust between students and law enforcement,” said Principal Brewington.
Colonel Melissa A. Zebley stated, “The Delaware State Police would like to thank the United States Attorney’s Office for this program and the partnership with the school districts to allow us to provide this important training. A traffic stop can be one of the most dangerous situations our troopers are faced with in the course of their daily duties. Understanding the proper procedures of the law enforcement officer, as well as the common issues or questions the driver may have, will make it safer for the young drivers and the troopers during a traffic stop.”
“I am proud of the efforts of Wilmington Police officers who have long participated in programs like this, as part of the daily outreach we have with the community we serve,” said Chief Tracy. “This is a great example of the types of relationship building that we have seen work well in Wilmington, and among our partner agencies in Delaware.”
For more information regarding Road Rules and Rights or other school-based programs visit the U.S. Attorney’s Office website here or contact us at 302.573.6277.
Portland Man Pleads Guilty to Fraud Charges After Stealing Covid-Relief FundsRead the Press Release
PORTLAND, Ore.—A Portland man pleaded guilty today for perpetrating a scheme to steal funds intended to help small businesses during the COVID-19 pandemic.
Eric Wade Lysne, 35, pleaded guilty to bank and wire fraud.
According to court documents, in April 2020, Lysne devised and perpetrated a scheme to defraud the Small Business Administration (SBA) and various financial institutions by fraudulently applying for and obtaining Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans using false borrower information. Lysne created fictitious entities, including Paradigm Consulting Groups (Paradigm), on whose behalf he applied for and received the loans.
In May 2020, Lysne applied for an EIDL, falsely claiming Paradigm employed 10 individuals in the agriculture sector and grossed nearly $1 million for the twelve-month period ending in January 2020. Lysne also falsely claimed that he, as the applicant, had not been convicted of any felonies in the last five years when, in fact, he had been in prison for nearly a year following a May 2019 felony conviction in Washington County, Oregon, and was then on post-prison supervision.
In early June 2020, SBA disbursed a $147,400 EIDL to Paradigm through Lysne’s personal bank account. The deposit was followed by an additional $10,000 advance paid several weeks later. After receiving the funds, Lysne spent them on various personal expenses, including travel bookings and numerous cash withdrawals.
In April 2021, Lysne applied for an increase in his EIDL balance, seeking to borrow an additional $302,600. The application was pending when Lysne was indicted in May 2021. Around the same time, Lysne also applied for a $50,000 PPP loan on Paradigm’s behalf from a bank in Logan, Utah. In the application, Lysne again falsely claimed he had not been convicted of any recent felonies. He further falsely represented that Paradigm employed two individuals and had an average monthly payroll of $20,000. Based on Lysne’s fraudulent misrepresentations, the bank approved the loan application in part and disbursed a $27,700 loan to Lysne.
On May 19, 2021, a federal grand jury in Portland returned a two-count indictment charging Lysne with bank fraud and wire fraud.
Wire fraud is punishable by up to 20 years in prison, a fine of $250,000 or twice a defendant’s gross gains or the victim’s losses, and three years’ supervised release. Bank fraud is punishable by up to 30 years in prison, a $1 million fine, and five year’s supervised release.
Lysne will be sentenced on February 1, 2022 before U.S. District Court Judge Michael H. Simon.
As part of his plea agreement, Lysne has agreed to pay $360,467 in restitution to SBA and forfeit $185,100 seized by law enforcement.
This case was investigated by the U.S. Treasury Inspector General for Tax Administration (TIGTA), the SBA Office of Inspector General, and the FBI. Assistant U.S. Attorney Ryan W. Bounds is prosecuting the case.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable PPP loans to small businesses for job retention and other expenses. In April 2020, Congress authorized over $300 billion in additional PPP funding.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’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.
Polson meth trafficker sentenced to more than 13 years in prisonRead the Press Release
GREAT FALLS — A Polson man convicted by a jury of trafficking methamphetamine in the Helena community was sentenced today to 13 years and eight months in prison to be followed by five years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
A federal jury found Roy Allen Shostak, 29, guilty on July 28 of possession with intent to distribute meth after 18 minutes of deliberation following a one-day trial.
Chief U.S. District Judge Brian M. Morris presided.
In evidence presented at trial and in court documents, the government alleged that in May 2020, law enforcement in Helena received information that Shostak was driving a black Jaguar car, dealing meth from a trailer home and had absconded from state probation. After surveilling the residence, officers arrested Shostak on an outstanding warrant. Officers seized the car, searched it pursuant to a warrant and found three baggies of meth, a digital scale, a syringe, two cellular phones, a bill of sale showing Shostak had recently purchased the car and other items. A search of the phone showed messages between Shostak and others discussing Shostak’s trafficking of meth and heroin.
Assistant U.S. Attorney Jeffrey K. Starnes prosecuted the case, which was investigated by the Drug Enforcement Administration, Helena Police Department and the Missouri River Drug Task Force.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Pittsburgh Man Sentenced for Obstructing Pittsburgh Police during May 30, 2020 Pittsburgh ProtestRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, was sentenced in federal court on a charge of obstruction of law enforcement during civil disorder, Acting United States Attorney Stephen R. Kaufman announced today.
Raekwon Blankenship, 25, was sentenced to time served of five months followed by three years of supervised release by United States District Judge Arthur J. Schwab.
The court was previously advised that on May 30, 2020, Blankenship did knowingly and willfully throw projectiles at several vehicles occupied by police officers, causing the obstruction, impediment and interference of law enforcement officers engaged in the lawful performance of their official duties. Blankenship also attempted to poke a police horse during the civil disorder.
Assistant United States Attorney Jonathan D. Lusty prosecuted this case on behalf of the government.
The Pittsburgh Bureau of Police and the Federal Bureau of Investigation conducted the investigation.
Philipsburg Man Pleads Guilty in Meth ConspiracyRead the Press Release
JOHNSTOWN, Pa. – A former resident of Philipsburg, PA pleaded guilty in federal court to a charge of violating narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
Timothy Ferguson, 34, pleaded guilty to a lesser included offense at Count Two of the Superseding Indictment before Senior United States District Judge Kim R. Gibson.
In connection with the guilty plea, from July 2019 to June 2020, Ferguson did conspire to distribute a quantity of a mixture and substance containing a detectable amount of methamphetamine.
Judge Gibson scheduled sentencing for March 10, 2022. The law provides for a maximum sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pennsylvania State Police conducted the investigation that led to the prosecution of Ferguson. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, Homeland Security Investigations, Pennsylvania Office of the Attorney General, Clearfield County District Attorney’s Office, Erie County District Attorney’s Office, Millcreek Police Department, Erie Bureau of Police, and other local law enforcement agencies.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Passaic County Man Sentenced to 17 Months in Prison for Bank Fraud ConspiracyRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man was sentenced today to time served – 17 months – for his role in a bank fraud conspiracy, Acting U.S. Attorney Rachael A. Honig announced.
Miguel Ortiz, 22, of Paterson, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to an information charging him with one count of conspiracy to commit bank fraud. Judge McNulty imposed the sentence by videoconference today.
According to documents filed in this case and statements made in court:
Ortiz and others participated in a conspiracy to commit bank fraud in which they conspired to break into U.S. Postal Service collection boxes throughout New Jersey and then steal mail. The members of the conspiracy agreed to fraudulently deposit stolen checks into bank accounts associated with members of the conspiracy, despite the fact that they were not payees on the checks. Members of the conspiracy then withdrew funds from those accounts.
Judge McNulty also sentenced Ortiz to three years of supervised release and ordered him to pay $90,864 in restitution and $23,123 in forfeiture.
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, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Katherine Calle of the Health Care Fraud Unit in Newark.
Owner of Crowdfunding Real Estate Investment Company Sentenced to Federal Prison for Mail FraudRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan has sentenced Daniel Summers (69, St. Augustine) to 21 months in federal prison for mail fraud. As part of his sentence, the court also ordered Summers to pay $486,874.11 in restitution and, separately, entered a forfeiture money judgment against him in the amount of $739,910, the proceeds of the fraud scheme.
Summers had pleaded guilty on April 29, 2021.
According to court documents, Summers owned a Jacksonville-based company called Realty E Vest, a/k/a IHT Realty Group, which operated an internet crowdfunding investment platform for real estate development projects. Summers also owned E Vest Technology, which sought to develop and license the Realty E Vest crowdfunding platform to others seeking to manage their own crowdfunding efforts. Individuals invested in projects by wiring funds to Realty E Vest, where the funds were supposed to be held in escrow until the project met its crowdfunding goal. If a project failed to meet its goal, Summers promised to return the investors’ funds.
When several Realty E Vest crowdfunding projects failed to fully fund, Summers intentionally kept the investors’ money and misappropriated it to fund the ongoing operations of his companies, including paying employee salaries. Summers gave these victims the illusion that they had successfully invested in these projects by paying investors purported investment returns for the failed projects via mailed checks or wire transfers. Summers also repaid the investments of some victims who had complained after learning the crowdfunding projects had failed to fund. However, the money funding these payments was not derived from the real estate developers or any legitimate investment activity; instead, it was derived from victims’ principal investments in other crowdfunding ventures and equity investments Summers solicited in E Vest Technology.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney David B. Mesrobian.
North Highlands Man Charged with Drug Trafficking OffenseRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against Alberto Arriaga Velazquez, 40, of North Highlands, charging him with possession with intent to distribute methamphetamine, Acting U.S. Attorney Phillip A. Talbert announced.
The charge arose out of a months-long investigation into drug trafficking in Sacramento County. According to court documents, on Oct. 13, 2021, law enforcement officers seized over 4 pounds of methamphetamine intended for distribution from Velazquez’s home.
This case is the product of an investigation by the Drug Enforcement Administration. Assistant U.S. Attorney Alstyn Bennett is prosecuting the case.
If convicted, Velazquez faces a mandatory minimum sentence of 10 years in prison and a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Nine Defendants Charged with Drug Trafficking and Firearms Crimes after Joint Federal, State, and Local OperationRead the Press Release
Florence, South Carolina --- Acting United States Attorney M. Rhett Dehart announced today that a joint team of federal, state, and local law enforcement officers arrested eight individuals who have all been charged, along with one other defendant, in federal court for their involvement in drug trafficking and firearms offenses in Florence.
The recent charges follow early-morning arrests on October 19 that were the result of a joint operation which represents a line of federal, state, and local authorities working in tandem to bring consequences to those who harm their communities. The multi-year operation has specifically targeted members and associates of several sets of a violent street gang in the region.
“This office has been clear: those who sow violence in South Carolina communities will be prosecuted,” said Acting U.S. Attorney DeHart. “I want to especially thank the federal, state, and local agents who stepped into harm’s way to execute this operation. These types of cases target entire criminal organizations and help us keep communities safer.”
“The alleged actions detailed in these indictments are troubling and remind us how the combination of illegal narcotics and gun violence can cast a dark shadow over our communities,” said Susan Ferensic, Special Agent in Charge of the Columbia Federal Bureau of Investigation (FBI) Field Office. “The FBI along with our local, state, and federal partners will continue to use aggressive approaches to identify, disrupt, and dismantle our most violent offenders and their criminal enterprises.”
“Law enforcement is never better than when we work in cooperation with other partners,” said Florence County Sheriff T.J. Joye. “This operation is a prime example of how we can improve our communities when we work together.”
“This is just the beginning of our endeavor to reduce the illegal drug trade and violent crime by actively identifying criminal gangs and their membership for prosecution,” said City of Florence Chief of Police Allen Heidler. ”We pledge to continue in this diligent collaboration with our law enforcement colleagues to bring more illegal drug trade and violent crime offenders to justice, making our communities safe.”
The eight arrested defendants have been charged in several indictments with firearms offenses and trafficking various drugs, including crack, cocaine, methamphetamine, fentanyl, and marijuana.
Demetrius Cornelius Thomas, 34, of Florence, is charged with conspiracy to distribute and distribution of crack, and possession with intent to distribute crack, cocaine and heroin;
Delonta Nathaniel Brown, 35, of Florence, is charged with conspiracy to distribute crack, possession with intent to distribute crack, cocaine and heroin, possession of a firearm in furtherance of a drug trafficking crime and felon in possession of a firearm;
Shakeam Marquise Backus, a/k/a “B.G.”, 26, of Florence, is charged with conspiracy to distribute crack, possession with intent to distribute crack, cocaine and heroin, and felon in possession of a firearm;
Marquaris Quachan Da-Whan White, a/k/a “KAP Savage,” 25, of Florence, is charged with possession with intent to distribute marijuana, possession of a firearm in furtherance of a drug trafficking crime and felon in possession of a firearm;
Ty Quez Chamon Cooper, 26, of Florence, is charged with possession with intent to distribute marijuana, two counts of possession of a firearm in furtherance of a drug trafficking crime and felon in possession of a firearm;
Jyqwon Antonio Woods, a/k/a “Cheese,” 33, of Florence, is charged with conspiracy to distribute crack and cocaine, possession with intent to distribute crack and cocaine, possession of a firearm in furtherance of a drug trafficking crime and felon in possession of a firearm;
Tyraze Tyrone-Lamonte Eaddy, 22, of Florence, is charged with robbery affecting interstate commerce, possession with intent to distribute methamphetamine, fentanyl, and marijuana, and possession of a firearm in furtherance of a drug trafficking crime; and
Joey Qurrieven York, JR., 22, of Florence, is charged with possession with intent to distribute marijuana, possession of a firearm in furtherance of a drug trafficking crime and felon in possession of a firearm.
Defendants Thomas, Brown, White, Cooper, Woods, and Eaddy face a maximum penalty of life in federal prison, and Defendant Backus faces up to 40 years in federal prison.
In addition to the defendants arrested, an additional defendant has been charged in an indictment with drug trafficking offenses.
Levester Tyyon Woods, a/k/a “Main,” 36, of Florence, is charged with conspiracy to distribute crack and cocaine, and possession with intent to distribute crack, cocaine, and marijuana.
Defendant Woods faces up to 20 years in federal prison.
According to the complaints filed against these defendants, the case involves members of a street gang who distributed drugs in the Florence area. The complaints filed against these defendants also allege that the gang members often used firearms and violence to conduct their illegal activity and further their criminal enterprise.
During the course of the investigation into the drug trafficking and firearms offenses of these defendants, agents have seized crack, cocaine, methamphetamine, heroin, fentanyl, marijuana, and firearms.
The case was investigated by the FBI, Drug Enforcement Administration (DEA), Florence County Sheriff’s Office, Florence Police Department, South Carolina Law Enforcement Division (SLED), and the Twelfth Circuit Solicitor’s Office.
Assistant United States Attorney A. Bradley Parham is prosecuting the case.
The United States Attorney stated that all charges in this indictment are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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New Orleans Tax Preparer Sentenced to Serve a Year and a Day in Federal Prison After Pleading Guilty to Failing to Declare More Than $695,000 in Income on Tax ReturnsRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced today that on November 3, 2021 QUINCY E. IRVIN, age 43 of New Orleans, Louisiana was sentenced to a year and a day in federal prison after previously pleading guilty to a one count Bill of Information for making false statements on an income tax return in violation of Title 26, United States Code, Section 7206.
In papers signed by the defendant and filed in open court, IRVIN admitted to owing two tax preparation companies, Discount Tax Services and Quincy Irvin Tax Services. IRVIN admitted to failing to declare a total of $696,060 in income for the tax years 2012, 2013, and 2014. The total tax loss to the government was $249,074 as a result of IRVIN’S false statements.
IRVIN was ordered to pay $249,074 in restitution and to serve one year supervised release after his prison term. IRVIN must also pay a $100 mandatory special assessment fee.
U.S. Attorney Evans praised the work of the Internal Revenue Service Criminal Investigation Division for their thorough investigation. The case was prosecuted by Assistant United States Attorney Carter K.D. Guice Jr.
New Orleans Man Sentenced for Violations of Federal Firearms and Narcotics LawsRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that DERRICK GROVES, age 24, of New Orleans, was sentenced on November 2, 2021 for federal firearms and narcotics violations.
According to court documents, on October 12, 2018, DERRICK GROVES possessed with intent to distribute heroin and fentanyl; on January 25, 2019, GROVES possessed with intent to distribute heroin, all in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C). DERRICK GROVES was also in possession of a firearm on those dates, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i).
U.S. District Judge Greg G. Guidry sentenced GROVES to serve 11 years and 9 months in prison, to be followed by 3 years of supervised release. Judge Guidry also imposed $400 in mandatory special assessment fees.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation New Orleans Violent Crimes Task Force, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the New Orleans Police Department in investigating this matter. Assistant United States Attorney Maria M. Carboni is in charge of the prosecution.
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New Bedford Man Sentenced for Cocaine ConspiracyRead the Press Release
BOSTON – A New Bedford man was sentenced today for conspiring to distribute large quantities of cocaine.
Jaime Torres, 48, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to 78 months in prison and five years of supervised release. On June 16, 2021, Torres pleaded guilty to one count of conspiring to distribute and to possess with intent to distribute 500 grams or more of cocaine and one count of possession with intent to distribute 500 grams or more of cocaine, 100 grams or more of heroin, 40 grams or more of fentanyl and five grams or more of methamphetamine.
From at least February 2019 through December 2019, Torres conspired with others to distribute large quantities of cocaine. Investigators intercepted a number of communications between Torres and co-conspirators, including communications on or about June 17, 2019, in which Torres and various co-conspirators agreed to distribute two kilograms of cocaine or more. Later that day, investigators seized approximately two kilograms of cocaine from Torres’s storage unit as well as 117 grams of a mixture and substance containing heroin, 55 grams of a mixture and substance containing fentanyl and over 43 grams of methamphetamine.
Acting United States Attorney Nathaniel R. Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Ketty Larco-Ward, Inspector in Charge of the United States Postal Inspector Service, Boston Division; and New Bedford Police Chief Joseph C. Cordeiro made the announcement. Assistant U.S. Attorney Craig Estes of Mendell’s Narcotics and Money Laundering Unit prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
New Bedford Man Sentenced for Being a Felon in Possession of Firearms and AmmunitionRead the Press Release
BOSTON – A New Bedford man was sentenced yesterday for illegally possessing three firearms and ammunition.
Jose Montanez, 24, was sentenced by U.S. District Court Judge Richard G. Stearns to three years in prison and three years of supervised release. On June 2, 2021, Montanez pleaded guilty to one count of possessing a firearm and ammunition while being a convicted felon.
On or about July 20, 2020, Montanez had a Smith and Wesson .380 Bodyguard; an H&R .22 caliber revolver; a Springfield XD-40 .40 caliber handgun; six rounds of .380 ammunition; and 279 rounds of .22 caliber ammunition inside of a hotel room in which he was staying. Federal law prohibits Montanez from possessing a firearm or ammunition due to a prior felony conviction.
The charge of being a convicted felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and New Bedford Police Chief Joseph C. Cordeiro made the announcement. Assistant U.S. Attorneys Kenneth G. Shine and Evan Gotlob of Mendell’s Major Crimes Unit prosecuted case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Motorcycle Club President Involved in Shootout Sentenced to 7 Years for Gun CrimeRead the Press Release
The president of a motorcycle club involved in a shootout at a Lubbock bar was sentenced today to seven years in federal prison for a firearm offense, announced Acting U.S. Attorney Chad E. Meacham.
Danny Lee Gollihugh, the 42-year-old president of the local chapter of the Kinfolk Outlaw Motorcycle Club, pleaded guilty in July to possession of an unregistered firearm. He was sentenced Thursday by U.S. District Judge James Wesley Hendrix.
In plea papers, Mr. Gollihugh admitted that he built a short-barrel rifle using an Aero Precision lower receiver, a Magpul carbine stock, and the “shortest barrel that Sharp Shooters had.” A records check revealed that the weapon was not registered to Mr. Gollihugh in the National Firearms and Transfer Records, which is required by the National Firearms Act.
At his sentencing hearing, prosecutors introduced evidence that proved Mr. Gollihugh was involved in a shootout against members of the Bandidos Outlaw Motorcycle Club at the 50th Street Caboose restaurant and bar in Lubbock on November 12, 2020.
Surveillance video admitted into evidence during the hearing shows several members of the Bandidos approaching the defendant and his associates at a pool table. Mr. Gollihugh, clad in a leather vest and backwards baseball cap, then whipped out a pistol and pulled the slide back, while another Kinfolk Outlaw member fired a round in the Bandidos direction. The defendant later admitted that he’d attempted to fire the handgun, but it jammed.
Agents discovered the unregistered short-barrel rifle, along with the pistol used in the shooting, during Mr. Gollihugh’s arrest two days later. He is currently facing pending state charges for engaging in organized criminal activity.
The Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division, Lubbock Resident Agency, the Lubbock Police Department, and the United States Marshals Service conducted the investigation. Assistant U.S Attorneys Ryan Redd and Matt McLeod prosecuted the case.