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29 October 2021
Reno Man Sentenced for Selling Methamphetamine While on Work Release for Prior Drug Trafficking ConvictionRead the Press Release
RENO, Nev. – A Reno man was sentenced yesterday to ten years in prison for selling methamphetamine.
According to court documents, Bay Johnson (aka “Pissy,” 33) sold 105 grams of methamphetamine to an undercover detective in Reno. Additionally, Johnson sold 98 grams of methamphetamine on two other occasions. These drug transactions occurred while Johnson was on work release from the Nevada Department of Corrections, where he was serving a prison sentence for a 2015 drug trafficking conviction.
Johnson pleaded guilty in August 2021 to one count of distribution of a controlled substance. In addition to the prison term, U.S. District Judge Larry R. Hicks sentenced Johnson to 20 years of supervised release.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Assistant Special Agent in Charge Daniel Neill for the Drug Enforcement Administration (DEA) made the announcement.
This case was investigated by the DEA. Assistant U.S. Attorney Megan Rachow prosecuted the case.
If you suspect a possible violation of controlled substance laws and regulations, such as the growing, manufacture, distribution, or trafficking of controlled substances, please report the alleged violation to the DEA at https://www.dea.gov/submit-tip.
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Roscommon Man Convicted on 5 Counts of Possessing, Receivng and Transporting Child PornographyRead the Press Release
BAY CITY – A federal jury convicted a Roscommon County man on charges of possessing, receiving, and transporting child pornography, announced Acting United States Attorney Saima Mohsin.
Mohsin was joined in the announcement by Special Agent in Charge Vance Callendar, Homeland Security Investigations and Sheriff Ed Stern, Roscommon County Sheriff’s Department.
Convicted was Scott Lantzy, 49. The 4 day trial which began on Thursday, October 21st and ended on Tuesday October 26th, was conducted before United States District Judge Thomas Ludington in Bay City. The jury deliberated approximately 45 minutes before returning the guilty verdicts.
According to evidence presented during the trial, Lantzy, is a serial sex offender with four prior CSC convictions, one conviction for accosting a minor, and two SORNA-related convictions spanning from 1998 until present. Lantzy came to the attention of law enforcement when he impersonated an EMT at a high school football game. During the game, Lantzy came onto the field to aid an injured player. He accompanied the teen to the hospital, where he made his way into the emergency room. He continued to attempt contact with the injured player the following day. A few months before the football game, Lantzy befriended another high school student who testified at the trial. This student testified that while housesitting for Lantzy, Lantzy called him and told him that he had left him a camera and condoms and that the student should send Lantzy pictures of what he and his friend were doing while house sitting. When Lantzy arrived home, the student testified that he saw pictures of child pornography on Lantzy’s personal cell phone. This led detectives from the Roscommon County Sheriff’s Department to execute a search warrant on Lantzy’s home.
Lantzy was convicted of two counts of possession/access with intent to view child pornography; one count of possession of child pornography; one count of transportation of child pornography; and one count of receipt of child pornography. Lantzy faces a maximum sentence of 40 years in federal prison. A sentencing date has been February 3, 2022 in Bay City.
“Protecting children from dangerous and cunning serial child predators is a top priority for our office,” said Acting United States Attorney Mohsin. “The possession, transportation and receipt of child pornography will not be tolerated by this office. I commend our law enforcement partners for their hard work and dedication to investigating and prosecuting crimes against children.”
The case was investigated by the Roscommon County Sheriff’s Department and special agents of Homeland Security Investigations in Sault Ste. Marie and Detroit, with assistance from the Michigan State Police. The case is being prosecuted by Assistant United States Attorneys Tim Turkelson and Alison Furtaw.
Peoria Heights Woman Sentenced to 136 months in Prison for Possession of Methamphetamine with Intent to DistributeRead the Press Release
PEORIA, Ill. – A Peoria Heights, Illinois, woman, Nicole M. Sutton,40, of the 2000 block of East Cardinal Court, was sentenced on October 28, 2021, to 136 months for possession of methamphetamine with intent to distribute, to be followed by four years of supervised release.
Following Sutton’s arrest on September 9, 2020, she has remained in the custody of the U.S. Marshals Service. She pleaded guilty on June 24, 2021.
At Sutton’s sentencing hearing, U.S. District Court Judge James Shadid found Sutton was responsible for distributing at least 1,300 grams of highly pure methamphetamine. Judge Shadid stated that Sutton had a lengthy criminal history but also battled drug addiction most of her adult life. Judge Shadid also noted that Sutton had several failed attempts at probation and drug treatment, including Tazewell County Drug Court. The government’s evidence at sentencing included Sutton’s statements to police that the most she had ever purchased in one transaction from her dealer was three pounds of ice methamphetamine.
“The message is clear: if you choose to deal highly-addictive, community-wrecking drugs to others, you will be held accountable,” said Acting U.S. Attorney Douglas J. Quivey. “Our office commends the Drug Enforcement Administration’s dedication and perseverance in working with Peoria Multi-County Narcotics Enforcement Group and the Pekin Police Department to target drug dealers in the greater Peoria area.”
The Drug Enforcement Administration, the Peoria Multi-County Narcotics Enforcement Group, and Pekin Police Department investigated the case. Assistant U.S. Attorney Katherine G. Legge represented the government in the prosecution.
The statutory penalties for possession with intent to distribute methamphetamine in this case were up to 40 years of imprisonment, $5,000,000 in fines, and not less than four years supervised release.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF)’s National Methamphetamine Strategic Initiative, spearheaded locally out of the Pekin Police Department. The primary goal of this initiative is to address methamphetamine trafficking and its attendant consequences by using a coordinated, multi-agency approach targeting the highest levels of drug trafficking leadership. 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.
Passenger who disrupted flight from Hawaii to Seattle charged with federal crimesRead the Press Release
Seattle – A federal grand jury in Seattle returned an indictment this week charging Ryan Cajimat, 21, of Kapolei, Hawaii with two federal crimes for his disruptive and violent conduct on December 24, 2020, on a flight from Honolulu to Seattle. Cajimat is scheduled to appear for arraignment on November 18, 2021.
According to records filed in the case and public reports, Cajimat was on a Delta Airlines flight from Honolulu to Seattle when he became disruptive. About two hours before landing in Seattle, Cajimat attempted to open the cockpit door and struggled with flight attendants attempting to restrain him. One flight attendant was punched in the face twice. Cajimat was restrained for the rest of the flight and was removed from the plane on arrival in Seattle.
The Federal Aviation Administration issued a $52,500 fine. Delta Airlines banned him from further travel on that airline.
Cajimat is charged with interference with flight crew members and attendants and assault within a special aircraft jurisdiction of the United States. Interference is punishable by up to 20 years in prison and a $250,000 fine. Assault on an aircraft is punishable by up to one year in prison and a $100,000 fine.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI. The case is being prosecuted by Assistant United States Attorney Natalie Walton-Anderson.
Pasadena Man Sentenced to More Than 16 Years in Federal Prison for Conspiring to Kidnap Chinese National Who Later Was MurderedRead the Press Release
LOS ANGELES – A San Gabriel Valley man was sentenced today to 195 months in federal prison for participating in a conspiracy to kidnap a Chinese national who was violently abducted from a San Gabriel parking lot, and whose parents were extorted for $2 million in ransom before the victim died from his injuries.
Anthony Valladares, 29, of Pasadena, was sentenced by United States District Judge Fernando M. Olguin, who said, that Valladares and his co-conspirators committed a “horrendous crime” when they conspired to kidnap the victim, resulting in his death. Judge Olguin also ordered Valladares to pay $33,090 in restitution. Valladares pleaded guilty in October 2020 to one count of conspiracy to kidnap.
Valladares conspired with others, including Chinese nationals Guangyao Yang, 28, and Peicheng Shen, 35, to kidnap Ruochen “Tony” Liao, of Santa Ana. Valladares was the “muscle” hired to intimidate, beat, and subdue Liao during the kidnapping. Valladares agreed to accept cash for the job.
Shen, using an alias, met the victim several times under the pretense that Shen would help the victim collect a debt from another individual, according to court documents. During their third meeting, at a San Gabriel shopping center on July 16, 2018, Shen lured the victim to a minivan, where Valladares was hiding, and whose driver was Alexis Ivan Romero Velez, 25, of Azusa, whom Valladares recruited for the conspiracy.
Liao entered the minivan and spoke in Chinese with Shen, who used a specific word to signal Valladares to begin attacking the victim. Once Shen uttered the word, Valladares and Shen violently assaulted Liao, used a taser to subdue him, and ultimately bound and restrained him with a black hood and ties. Valladares admitted to helping Yang acquire the taser used in the kidnapping and admitted to acquiring a revolver and bullets for the kidnapping. Romero then drove the minivan to a location in Rosemead, where Liao was moved into a different car.
Shen and Yang then took the victim to a house in Corona, where they confined him by binding his legs together, taping his eyes shut, restraining his arms behind him, and confining him in a closet.
The day after the kidnapping, the victim’s father received a demand for a $2 million ransom in exchange for the victim’s life, with the money to be deposited into three Chinese bank accounts within three hours.
Valladares was not physically present for Liao’s death, which occurred when Shen and Yang held him captive.
Shen and Yang drove to the area of Mojave, California, to bury or otherwise dispose of the victim’s body and other physical evidence involved in the crime. Further, Shen allegedly had the closet of the Corona house re-carpeted. Yang also performed internet searches to determine, in effect, how fast a corpse decomposes in soil, court papers state. Liao’s remains were discovered in Mojave late last year.
“The seriousness of [Valladares’] crime cannot be overstated,” prosecutors wrote in a sentencing memorandum. “[Valladares] was an active participant and organizer of a violent kidnapping motivated solely by greed. He acted with utter disregard to the potential suffering and harm to the victim and his family.”
Yang and Shen, whose last known U.S. residences were in West Covina, are currently in custody in China on charges filed there related to the kidnapping. Velez pleaded guilty in September 2019 to one count of conspiracy to kidnap. His sentencing hearing is scheduled for November 10.
The FBI conducted this investigation, with significant assistance provided by members of the FBI’s Safe Street Task Force, which includes the Pasadena Police Department.
Assistant United States Attorneys Julia S. Choe and Frances S. Lewis, both of the General Crimes Section, prosecuted this case.
Orleans Parish Man Indicted for Violations of the Federal Controlled Substances and Gun Control ActsRead the Press Release
NEW ORLEANS, LOUISIANA – KENDALL GILMER, JR., age 41, a resident of New Orleans, Louisiana, was charged October 28, 2021, in a three-count indictment by a Federal Grand Jury with possession with intent to distribute methamphetamine in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B), possession of a firearm in furtherance of a drug trafficking offense in violation of Title 18, United States Code, Section 924(c)(1)(A), and being a felon in possession of a firearm in violation of Title 18, United States Code, Section 922(g)(1), announced U.S. Attorney Duane A. Evans.
According to the indictment, on October 18, 2021, GILMER possessed with intent to distribute fifty grams or more of a mixture and substance containing a detectable amount of methamphetamine. GILMER, having previously been convicted of a felony, also illegally possessed two firearms in furtherance of his drug trafficking crimes: a Rock Island Armory Model M1911 A1, .45 caliber semi-automatic handgun, and a Smith & Wesson Model M&P M2.0, .45 caliber semi-automatic handgun.
If convicted of possession with intent to distribute methamphetamine, GILMER faces a statutory mandatory minimum sentence of five years up to forty years imprisonment, a fine of up to $5,000,000 and at least four years of supervised release following any term of imprisonment. For possessing a firearm in furtherance of a drug trafficking offense, GILMER faces a statutory minimum sentence of five years of imprisonment, to run consecutive with any other sentence, a fine of up to $250,000 and up to five years of supervised release. If convicted of being a felon in possession of a firearm, GILMER faces up to ten years imprisonment, a fine of up to $250,000 and up to three years supervised release. For each of the three counts of the indictment, GILMER also faces payment of a $100 mandatory special assessment fee.
U.S. Attorney Evans reiterated that the indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was investigated by the Drug Enforcement Administration. The prosecution is being handled by Assistant United States Attorney Ben Myers.
Orange County Man Arrested for Alleged Ponzi Scheme that Raised Nearly $14 Million with False Promises of Profits from House FlippingRead the Press Release
SANTA ANA, California – A Costa Mesa man has been arrested on federal fraud and money laundering charges alleging he helped run a fraudulent investment scheme that raised $13.8 million by promising investors returns of up to 10 percent that would be generated through real estate deals.
Brett Barber, 42, who was a co-owner of the Newport Beach-based BNZ Capital One, LLC, was arrested Thursday morning by special agents with the FBI. Barber, who is charged in a six-count indictment returned Wednesday by a federal grand jury, entered not guilty pleas Thursday afternoon during an arraignment in United States District Court.
Another owner of BNZ Capital – Louis Zimmerle, 62, of Sacramento – was charged Thursday with one count of wire fraud. In a plea agreement also filed Thursday in United States District Court, Zimmerle agreed to plead guilty to the felony offense.
Also on Thursday, the United States Securities and Exchange Commission filed a parallel civil lawsuit naming Barber, Zimmerle and BNZ Capital.
According to court documents, since the spring of 2019, BNZ Capital, its principals and several marketers raised money by falsely representing that the firm bought and sold real estate projects and “flipped” real estate. Barber, Zimmerle and the marketers falsely promised investors a “guaranteed” return of between 8 percent and 10 percent, as well as potential bonuses based on successful deals. According to the indictment, Barber told investors that their funds were “safe” and “FDIC insured.”
In fact, while BNZ Capital did purchase some real estate, it did not take any substantial steps to develop parcels, nor did BNZ flip real estate for a profit, according to court documents. Rather, BNZ primarily used investor funds to pay Barber, Zimmerle and others associated with the scheme, including purchasing residences where Barber and Zimmerle lived. Some of the investors’ money was used to repay earlier investors.
Additionally, the indictment alleges that Barber failed to disclose to investors that he previously was barred from acting as or associating with a broker-dealer by the Financial Industry Regulatory Authority (FINRA).
During the scheme, Barber, Zimmerle, and the marketers solicited or caused to be transferred to BNZ Capital approximately $13.8 million from victim investors. Because several million dollars were paid to earlier investors, investigators estimate that actual losses resulting from this alleged scheme are more than $9 million. In his plea agreement, Zimmerle admits that he received and kept approximately $582,815 of investor money.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Barber is charged with four counts of wire fraud and two counts of money laundering. The wire fraud charges carry a statutory maximum sentence of 20 years in federal prison, and the money laundering offense carry a statutory maximum sentence of 10 years in prison.
During his arraignment Thursday, a United States Magistrate Judge set bond at $800,000, and Barber is expected to be release later today. A trial in this case was scheduled for December 21.
The FBI is investigating this matter. The SEC provided substantial assistance.
Assistant United States Attorney Bradley E. Marrett of the Santa Ana Branch Office is prosecuting this case.
Norwich Man Admits Photographing and Video Recording His Repeated Sexual Abuse of ChildRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that TRAVIS M. WILLIAMS, 34, of Norwich, waived his right to be indicted and pleaded guilty yesterday before U.S. District Judge Jeffrey A. Meyer in New Haven to child exploitation offenses.
According to court documents and statements made in court, on more than 100 occasions, Williams engaged in sexual acts with a child who was approximately 9 years old. He recorded some of these acts on his iPhone. Specifically, on July 21, 2019, Williams photographed himself sexually abusing the child. He subsequently sent the photographs to an adult female via text message. On July 27, 2019, Williams filmed 10 videos depicting him sexually abusing the child.
Investigators recovered numerous text messages between Williams and the adult female in July 2019. In certain text messages, Williams told the adult female that he wanted to engage in sexual acts with her while the child watched, and that he wanted the child to take part in these sexual acts.
Williams pleaded guilty to one count of production of child pornography, an offense that carries a mandatory minimum term of imprisonment of 15 years and maximum term of imprisonment of 30 years, and one count of distribution of child pornography, an offense that carries a mandatory minimum term of imprisonment of five years and maximum term of imprisonment of 20 years.
Judge Meyer scheduled sentencing for January 24, 2022.
Williams has been detained since his arrest on related state charges on August 30, 2019.
This matter is being investigated by the Federal Bureau of Investigation, the Norwich Police Department and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorneys Amanda S. Oakes and Neeraj N. Patel.
Acting U.S. Attorney Boyle thanked the New London State’s Attorney’s Office for its cooperation in the investigation and prosecution of this case.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
North Carolina Tax Preparer Sentenced to Prison for Defrauding IRSRead the Press Release
A North Carolina tax return preparer was sentenced today to 20 months in prison for conspiring to defraud the IRS.
According to court documents and statements made in court, from 2012 through 2017, Andrea Pasley, of Durham, conspired with Karen Jones and Audrey Odom to prepare fraudulent tax returns for clients of Jones and Stone Taxes. Returns prepared by the conspirators claimed false education credits or dependents or manipulated the clients’ income to qualify for larger earned income tax credits. Under the scheme, some clients were charged up to $3,000 for preparing returns. Based on an analysis of the falsely claimed education credits, the conspirators caused a tax loss of approximately $1.2 million.
Jones and Odom also pleaded guilty to conspiracy to defraud the IRS and were sentenced earlier this year to 22 months and 15 months in prison, respectively, for their roles in the conspiracy.
In addition to the term of imprisonment, U.S. District Judge Catherine C. Eagles ordered Pasley to serve three years of supervised release and to pay approximately $1,264,493 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorneys Todd Ellinwood and Kavitha Bondada of the Tax Division prosecuted the case.
North Carolina Tax Preparer Sentenced to Prison for Defrauding IRSRead the Press Release
A North Carolina tax return preparer was sentenced today to 20 months in prison for conspiring to defraud the IRS.
According to court documents and statements made in court, from 2012 through 2017, Andrea Pasley, of Durham, conspired with Karen Jones and Audrey Odom to prepare fraudulent tax returns for clients of Jones and Stone Taxes. Returns prepared by the conspirators claimed false education credits or dependents or manipulated the clients’ income to qualify for larger earned income tax credits. Under the scheme, some clients were charged up to $3,000 for preparing returns. Based on an analysis of the falsely claimed education credits, the conspirators caused a tax loss of approximately $1.2 million.
Jones and Odom also pleaded guilty to conspiracy to defraud the IRS and were sentenced earlier this year to 22 months and 15 months in prison, respectively, for their roles in the conspiracy.
In addition to the term of imprisonment, U.S. District Judge Catherine C. Eagles ordered Pasley to serve three years of supervised release and to pay approximately $1,264,493 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorneys Todd Ellinwood and Kavitha Bondada of the Tax Division prosecuted the case.
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Nine indicted in Burke County, Ga., drug trafficking investigationRead the Press Release
AUGUSTA, GA: Eight men and one woman have been named in a newly unsealed federal indictment for taking part in a major drug trafficking conspiracy that funneled cocaine and other drugs from Atlanta to the Waynesboro, Ga., area.
The indictment in USA v. Rhaney et al, dubbed Operation Washout, represents a significant, coordinated attack on narcotics distribution in Burke, Richmond, Screven and McDuffie counties and other parts of the Southern District, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. The primary charge in the indictment, Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine, Crack Cocaine, and Marijuana, carries a statutory penalty upon conviction of up to 20 years in federal prison, along with substantial financial penalties, followed by a period of supervised release. There is no parole in the federal system.
“Close collaboration between local, state and federal law enforcement partners has yielded tremendous success in identifying and shutting down these operations that funnel poison into our communities,” said Acting U.S. Attorney Estes. “We will continue to relentlessly pursue and hold accountable those who would endanger our citizens through drug trafficking and its related pathologies.”
Operation Washout was coordinated through the Organized Crime Drug Enforcement Task Forces as the Augusta Office of the U.S. Drug Enforcement Administration developed information about cocaine trafficking from Mexico, through California to Atlanta, and then primarily to distributors in Burke County. Investigators from the Burke County Sheriff’s Office then worked with the DEA to develop the investigation that identified the defendants and led to searches and subsequent seizures of cocaine, crack cocaine, marijuana, drug trafficking paraphernalia, cash, and more than two dozen firearms.
“The mission of DEA is unwavering – we relentlessly pursue drug traffickers whose poison destroys lives and causes immeasurable damage to our communities,” said the Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “This violent poly-drug trafficking organization can no longer peddle poison in Burke County and elsewhere. The success of this investigation is a shining example of how DEA and its law enforcement partners work collaboratively to protect our communities.”
“The success of this 18-month investigation is an outstanding example of the partnership of our local, state and federal law enforcement agencies working together to protect our community from illegal drugs, illegally possessed firearms, and the violent crime that accompanies them,” said Burke County Sheriff Alfonzo Williams. “The citizens of Burke County greatly appreciate the resources and assistance from our federal partners, including the DEA, in keeping our neighborhoods safe.”
The federally charged defendants all are in custody and are receiving initial appearances in U.S. District Court. They include:
- Chadric Antonio Rhaney, a/k/a “Chad,” 41, of Atlanta, charged with Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine, Crack Cocaine, and Marijuana; and five counts of Unlawful Use of a Communication Facility, a charge related to the use of cell phones to facilitate the conspiracy;
- Joseph Lee Ellison Jr., a/k/a “Peanut,” 38, of Waynesboro, charged with Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine, Crack Cocaine, and Marijuana; and eight counts of Unlawful Use of a Communication Facility;
- Ossawa Jones, a/k/a “Wash,” 44, of Augusta, charged with Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine, Crack Cocaine, and Marijuana; five counts of Distribution of Cocaine; and 15 counts of Unlawful Use of a Communication Facility;
- Nathaniel Golden, a/k/a “Geese,” 67, of Waynesboro, charged with Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine, Crack Cocaine, and Marijuana; Possession with Intent to Distribute Crack Cocaine; and two counts of Unlawful Use of a Communication Facility;
- Ricardo DeAngelo Norman, 33, of Augusta, charged with Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine, Crack Cocaine, and Marijuana; Possession with Intent to Distribute Marijuana and Crack Cocaine; Possession of a Firearm by an Unlawful Drug User; and Possession of a Firearm in Furtherance of a Drug Trafficking Crime;
- Richard Sears Adams, a/k/a “Moot,” 36, of Waynesboro, charged with Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine, Crack Cocaine, and Marijuana; Possession with Intent to Distribute Cocaine; Possession with Intent to Distribute Cocaine and Crack Cocaine; Possession of a Firearm by a Convicted Felon; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and two counts of Unlawful Use of a Communication Facility;
- Christopher Thomas Mobley, a/k/a “PJ,” 37, of Waynesboro, charged with Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine, Crack Cocaine, and Marijuana; and two counts of Unlawful Use of a Communication Facility;
- Trevor Watson, 30, of Sylvania, Ga., charged with Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine, Crack Cocaine, and Marijuana; Possession with Intent to Distribute Marijuana and Crack Cocaine; Possession of a Firearm by an Illegal Drug User; and two counts of Unlawful Use of Communication Facility; and,
- Claudine Noella Sinclair, a/k/a “Annie,” 47, of Covington, Ga., charged with Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine, Crack Cocaine, and Marijuana; and two counts of Unlawful Use of a Communication Facility.
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
Additional defendants also face state charges in the investigation.
The case was investigated under the 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.
Agencies investigating Operation Washout include the DEA and the Burke County Sheriff’s Office, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Probation Service, the U.S. Marshals Service, the Georgia National Guard Counterdrug Task Force, the Screven County Sheriff’s Office, the McDuffie County Sheriff’s Office, the Columbia County Sheriff’s Office, and the Richmond County Sheriff’s Office. It is being prosecuted for the United States by Assistant U.S. Attorney Henry W. Syms Jr.
Nicholas County Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Kevin Barnhouse, 41, of Summersville, pleaded guilty to a federal gun crime.
According to statements made in court, an officer with the Nicholas County Sheriff’s Department executed lawful search of a vehicle in which Barnhouse was riding as a passenger in November 2020. The officer located two firearms in the vehicle, a Smith and Wesson M&P Shield 40 caliber handgun and an American Tactical 22 caliber rifle. Barnhouse admitted that he possessed the firearms and that he knew he was prohibited from possessing firearms as a result of a 2016 conviction in Nicholas County Magistrate Court for domestic assault on a family or household member.
Barnhouse pleaded guilty to possession of a firearm by a person previously convicted of a misdemeanor crime of domestic violence and faces up to ten years in prison when sentenced on January 27, 2022.
United States Attorney William S. Thompson made the announcement and commended the investigative work of the Nicholas County Sheriff’s Department.
Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Andrew Tessman is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-00201.
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New York Man Charged with Interstate Travel to Engage in Sexual Conduct with a MinorRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that a federal grand jury returned a two-count indictment charging Brandon Thomas Kern, 27, of Bayport, New York, with enticement and interstate travel to engage in illicit sexual conduct.
According to court documents, on October 7, 2021, law enforcement officers with the North Olmstead Police Department began an investigation into the online communications between the defendant and a minor victim through a mobile social media application after the victim contacted the police. During the investigation, officers allegedly determined that the defendant had traveled from New York to Ohio with the intent to engage in sexual conduct with the minor.
Officers were able to locate the defendant through his online conversation with the victim, and he was subsequently arrested.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, a defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum, and, in most cases, it will be less than the maximum.
This investigation was conducted by the Cleveland FBI and North Olmsted Police Department. This case is being prosecuted by Assistant United States Attorney Margaret A. Kane.
New York Gang Member Pleads Guilty to Racketeering and Drug Trafficking Offenses, Including 2010 East Harlem MurderRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that JAMAL ADAMSON, a/k/a “J-Rock,” pled guilty today in Manhattan federal court for his participation in crimes with the Cash Money Boys gang, including the June 2010 murder of David Moore in East Harlem. United States District Judge Gregory H. Woods accepted the defendant’s guilty plea.
U.S. Attorney Damian Williams said: “As a member of the violent Cash Money Boys street gang, Jamal Adamson caused the death of a 23-year-old man, attempted to kill another individual, and dealt dangerous drugs. Now, Adamson faces significant prison time for his crimes and the harm he inflicted on his community.”
As alleged in the Indictment and other documents filed in federal court, and based on statements made in public court proceedings:
The Cash Money Boys, or “CMB,” gang was a criminal enterprise involved in committing numerous acts of violence, including murder, attempted murder, robberies, and assaults in and around Manhattan. Members and associates of CMB engaged in violence to retaliate against rival gangs, to promote the standing and reputation of CMB, and to protect the gang’s narcotics sales.
From at least in or about 2006 to in or about 2017, members and associates of CMB regularly distributed crack cocaine and other drugs in the vicinity of Lexington Avenue between East 122nd Street and East 123rd Street. CMB controlled drug sales within this area by prohibiting and preventing non-members, outsiders, and rival drug dealers from selling drugs in the area controlled by the gang. This included gang members shooting at, assaulting, and/or robbing other drug dealers and members of rival gangs who entered CMB’s territory.
On or about June 20, 2010, after members of CMB and a rival gang got into a physical altercation, ADAMSON shot and killed David Moore, 23, near the corner of East 122nd Street and Lexington Avenue.
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ADAMSON, 28, of New York, New York, pled guilty to a Superseding Information charging him with one count of racketeering conspiracy, in violation of 18 U.S.C. § 1962(d), which carries a maximum penalty of 20 years in prison, and one count of narcotics distribution conspiracy, in violation of 18 U.S.C. § 371, which carries a maximum penalty of five years in prison.
The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Williams praised the outstanding work of the New York City Police Department and the Special Agents of the United States Attorney’s Office for the Southern District of New York.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Maurene Comey, Jacob Warren, Dominic A. Gentile, Christopher J. Clore, and Peter J. Davis are in charge of the prosecution.
New Orleans Man Sentenced for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – The Honorable Sarah S. Vance sentenced JEFFERY HOLMES, age 46, of New Orleans, Louisiana, to 30 months in the Bureau of Prisons for violating the Federal Controlled Substances Act, announced U.S. Attorney Duane A. Evans.
According to the court records, HOLMES conspired to possess with the intent to distribute and to distribute a quantity of a mixture or substance containing a detectable amount of heroin. HOLMES admitted to being captured on recorded calls as part of a lengthy Title III wire intercept.
United States District Court Judge Sarah S. Vance sentenced HOLMES to 30 months custody in the Bureau of Prisons, to be followed by 3 years of supervised release. HOLMES was also ordered to pay a $100 mandatory special assessment.
This case was investigated by Special Agents of the Federal Bureau of Investigation (FBI). The prosecution is being handled by Assistant United States Attorney David Haller.
New Orleans Man Pleads Guilty to Narcotics and Weapons ChargesRead the Press Release
NEW ORLEANS, LOUISIANA - U.S. Attorney Duane A. Evans announced that defendant KIRK THOMPSON, of New Orleans, Louisiana, pled guilty before U.S. District Court Judge Lance M. Africk to possession with the intent to distribute fentanyl, possession with the intent to distribute cocaine, and possessing firearms in furtherance of a drug trafficking offense.
THOMPSON pled guilty to Count One, which charges him with possession with intent to distribute fentanyl and possession with intent to distribute cocaine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C). THOMPSON also pled guilty to Count Two, which charges him with possessing firearms in furtherance of a drug trafficking offense, that is, possession with intent to distribute both fentanyl and cocaine, in violation of Title 18, United States Code Section, 924(c)(1)(A)(i).
As to Count One, THOMPSON faces a maximum sentence of 20 years imprisonment, a fine of up to $1,000,000, at least 3 years of supervised release, and a $100 mandatory special assessment fee. As to Count Two, THOMPSON faces a mandatory minimum sentence of 5 years up to a maximum of life imprisonment, to run consecutive to any other sentence imposed, a fine of up to $250,000, up to 5 years of supervised release, and a $100 mandatory special assessment fee. THOMPSON’S sentencing is scheduled for February 16, 2022.
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 and the New Orleans Police Department. The case is being prosecuted by Assistant United States Attorney Inga Petrovich of the Violent Crime Unit of the U.S. Attorney's Office.
New Orleans Man Pleads Guilty to Drug and Gun OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that REYNAUD KENDRELL VARISTE (“VARISTE”), age 32, a resident of New Orleans, Louisiana, pled guilty to possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A) and possession with intent to distribute heroin, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C).
The Court set sentencing in this matter for February 3, 2022 at 1:30 p.m. VARISTE faces a maximum term of imprisonment of twenty (20) years, a maximum fine of up to $1,000,000, up to three (3) years of supervised release for drug trafficking and a mandatory $100 special assessment fee. VARISTE further faces a minimum of five (5) years to be served consecutively and up to life imprisonment, a fine of up to $250,000, a supervised release term of up to five (5) years and a $100 mandatory special assessment fee for possessing a firearm in furtherance of drug trafficking.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation on investigating this matter. Assistant United States Attorney Kathryn M. McHugh is prosecuting the case.
Montville Fentanyl Dealer Who Traded Gun for Drugs Sentenced to 46 Months in Federal PrisonRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that KENNETH BINGELL, 34, of Montville, was sentenced yesterday via videoconference by U.S. District Judge Robert N. Chatigny to 46 months of imprisonment, followed by three years of supervised release, for distributing heroin and fentanyl.
According to court documents and statements made in court, the FBI’s Safe Streets Task Force and the Norwich Police Department launched an investigation after several fatal and non-fatal overdoses occurred in a short period of time in eastern Connecticut. Investigators determined that, beginning at least as early as January 2017 and continuing to July 2018, Juan Reyes worked with Michael Nieves to supply heroin and fentanyl to other distributors, including Bingell and other individuals who regularly traveled from eastern Connecticut to Hartford to purchase the drugs. Bingell and others then sold the drug to customers in the Norwich and New London areas.
Investigators have connected seven other overdoses, four fatal and three non-fatal, to drugs that were supplied by Reyes and Nieves.
The investigation further revealed that in January 2018, Bingell and others burglarized a residence in Plainfield and stole three firearms. Law enforcement subsequently recovered two of the firearms, but Bingell and another individual sold the third firearm to Reyes and Nieves in exchange for 100 bags of heroin/fentanyl and $150.
On June 8, 2021, Bingell pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute heroin and fentanyl.
Bingell has been detained since August 8, 2019, after he was arrested on unrelated state charges for possessing distribution quantities of heroin/fentanyl. These charges, as well as the burglary charges, are pending in state court.
Reyes and Nieves pleaded guilty to federal fentanyl distribution offenses. On October 26, 2021, Reyes was sentenced to 151 months of imprisonment. Nieves awaits sentencing.
This investigation has been conducted by the FBI’s Safe Streets Task Force and the Norwich Police Department. The case is being prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.
Montgomery Man Sentenced to 6.5 Years in Prison Following Federal Gun and Drug ConvictionsRead the Press Release
Montgomery, Alabama – On October 27, 2021, Daryl Tyrone Gray, 38, from Montgomery, Alabama, was sentenced to 78 months in prison, to be followed by 5 years of supervised release, announced Acting United States Attorney Sandra J. Stewart.
According to court records and the factual basis contained in the plea agreement, on February 20, 2019, the Montgomery Police Department responded to a shots-fired call. When officers arrived, they made contact with Gray and found him in possession of a .40 caliber handgun. Gray is a convicted felon and is prohibited from possessing a firearm.
Later in 2019, law enforcement suspected Gray was engaging in the illegal sale of controlled substances. On April 11, 2019, agents discovered that Gray had made arrangements with another individual to purchase a quantity of cocaine in the parking lot of a Montgomery restaurant and was subsequently arrested.
Gray pleaded guilty to possession of a firearm by a convicted felon and conspiracy to distribute and possession with intent to distribute a controlled substance on November 19, 2020.
This case was investigated by the Montgomery Police Department, the Department of Homeland Security, the Drug Enforcement Administration (DEA), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant United States Attorney Russell T. Duraski prosecuted the case.
Member of the Mescalero Apache Tribe sentenced to two years in federal prison for domestic assaultRead the Press Release
ALBUQERQUE, N.M. – Drew Beck, 36, of Mescalero, New Mexico, and an enrolled member of the Mescalero Apache Tribe, was sentenced in federal court on Oct. 4 to two years and five months in prison for domestic assault by a habitual offender.
According to the plea agreement and other court records, on March 2, 2020, Beck assaulted Jane Doe, his girlfriend at the time, at their shared residence in Otero County, New Mexico, on the Mescalero Apache Reservation. Beck grabbed the victim as she was trying to leave and dragged her by her leg into the living room. Beck threw the victim over the couch and started strangling her and stopped after law enforcement arrived. Jane Doe was taken to a medical center where she received care and a domestic violence examination.
Beck was convicted for similar incidents previously, on Aug. 4, 2011, for battery on a household member and on Nov. 9, 2017, for domestic violence.
Upon his release from prison, Beck will be subject to three years of supervised release.
The Bureau of Indian Affairs (BIA) investigated this case. Assistant U.S. Attorney Aaron O. Jordan prosecuted the case.
Maryland Man Sentenced to Nine Years in Federal Prison for Arson Related to a 2017 Fire that Destroyed a Pasadena BarRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett today sentenced Jamie Clemons, age 36 of Pasadena, Maryland, to nine years in federal prison, followed by three years of supervised release, for malicious destruction of a property by fire, in connection with the fire on July 28, 2017, at Coconut Charlie’s, a bar in Pasadena. Judge Bennett also ordered Clemons to pay restitution in the amount of $560,346.26. As a result of the arson, Coconut Charlie’s sustained over $500,000 in damage; the building was razed and the business was forced to permanently close.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge L.C. Cheeks, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; the Anne Arundel County Fire Chief Trisha L. Wolford; and the Anne Arundel County Fire Marshal Division Chief John Lane.
“This defendant not only endangered our brave firefighters who responded to the arson that he set, he caused devastating damage to a longtime Maryland business, forcing it to close,” said U.S. Attorney Erek L. Barron. “The fire arsons often cause are indiscriminate in the lives and property they put in jeopardy. Arsons are also often difficult crimes to uncover and prove in court, and I am grateful to our investigative and prosecution teams for their dedication and persistence.”
According to the indictment and the government’s plea letter, on July 28, 2017, Clemons maliciously damaged and destroyed by fire a bar known as Coconut Charlie’s, located in the 9100 block of Fort Smallwood Road in Pasadena, in order to conceal evidence of an assault he had committed there on July 22, 2017.
As detailed in the statement of facts filed as part of the government’s plea letter, on July 22, 2017, at approximately 1:00 a.m., Clemons assaulted his girlfriend on the patio area of Coconut Charlie’s. An Anne Arundel County Police officer witnessed the assault and it was also captured on Coconut Charlie’s video surveillance system. As a result, Clemons was charged with second degree assault and theft of less than $100 in the District Court for Anne Arundel County, and was served with a summons for the case on July 27, 2017.
Clemons admitted that in the early morning hours of July 28, 2017, he assembled multiple incendiary devices akin to Molotov cocktails, then lit the wicks for the devices on fire, and threw them at the exterior of Coconut Charlie’s in an attempt to burn the structure and destroy the video surveillance system, which had captured his assault on his girlfriend the week prior.
Due to the size of the fire, several agencies responded in an attempt to control and extinguish the fire, and a firefighter sustained injuries due to the force of a Backdraft that caused him to fall off a ladder. A fire scene examination was conducted, and the area of origin of the fire was determined to be the west exterior of the restaurant. Investigators reviewed the exterior camera footage from the video recording system, which remained operational after the fire, and were able to observe multiple flashes of light (at least three), followed by a sustained fire on the west exterior of the structure.
Charred melted plastic cups, which had been filled with gasoline, and a burnt cloth used as a wick material were located on the roof and exterior grounds of the building, and most were found to contain the presence of gasoline. Clemons admitted that he set the wicks on fire prior to throwing the devices on the roof. An accelerant detection K-9 dog also alerted to the presence of gasoline on the west side of the exterior just on the other side of the fence surrounding Coconut Charlie’s. This is the area where Clemons launched the devices at Coconut Charlie’s. A short distance away, along the north side of the exterior of the property fence line, a glove was found which tested positive for the presence of an ignitable liquid and contained Clemons’ DNA.
On November 30, 2017, a federal search warrant was obtained for Clemons’ text messages on his cell phone. The contents of those messages revealed that after the assault and in the days leading up to the fire, Clemons sent multiple text messages expressing concern as to whether police would obtain the video surveillance of the assault, and what the video had captured.
United States Attorney Erek L. Barron commended the ATF, the Anne Arundel County Fire Department, and the Anne Arundel County Fire and Explosives Investigation Unit for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Judson T. Mihok and Mary W. Setzer, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Man Who Claimed He Gave Guns to Children Sentenced to 10 Years in PrisonRead the Press Release
An Amarillo man who said he gave guns to children has been sentenced to 10 years in federal prison for a firearm crime, announced Acting U.S. Attorney Chad E. Meacham.
Roaryrious “Buddy” Perkins, 31, was convicted in June of being a felon in possession of a firearm. He was sentenced Thursday by U.S. District Judge Matthew J. Kacsmaryk.
According to court documents, in September 2018, law enforcement officers found a Smith & Wesson .45 caliber handgun in the wall of a hotel room occupied by Mr. Perkins and two associates. A National Integrated Ballistic Information Network (NIBIN) examination of the gun revealed that it had been used in four different drive-by shootings in Amarillo. A lab test of the weapon indicated a 1 in 1.2 trillion chance that one of the four DNA profiles found on the gun belonged to Mr. Perkins.
Four months later, in January 2019, law enforcement arrested Mr. Perkins at the scene of a trespass in progress. Inside the home, they found a Springfield 9mm pistol. During a subsequent interview with police, Mr. Perkins admitted that he’d purchased the Springfield pistol, claiming he’d had a “white dude” buy the gun for him in order to give it to his girlfriend for protection.
Mr. Perkins – who was previously convicted of robbery and possession of a controlled substance – admitted that he handled the pistol in spite of federal laws that prohibit convicted felons to possess firearms.
At his sentencing hearing, prosecutors read from a statement Mr. Perkins made to law enforcement in September 2018, in which he claimed he provided firearms and money to “young kids” to commit shootings on his behalf. He even admitted he offered the children money to shoot at a particular individual.
“They got no momma, no house, no money. You give them a $1,000 and a gun – what do you think they are going to do?” Mr. Perkins told law enforcement.
It is unclear what, if anything, the minors did with the weapons Mr. Perkins said he provided to them.
The Federal Bureau of Investigations’ Dallas Field Office, the United States Marshal Service, and the Amarillo Police Department conducted the investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant U.S. Attorney Anna Marie Bell prosecuted the case.
Lead defendant in dog-fighting operation sentenced to federal prisonRead the Press Release
DUBLIN, GA: The operator of a dog-fighting facility and two codefendants have been sentenced in federal court, wrapping up the prosecution of a dog-fighting operation in Dodge County.
James Lampkin, a/k/a “Pookie,” 44, of Eastman, Ga., was sentenced to 46 months in prison and fined $5,000 after pleading guilty in U.S. District Court to Conspiracy to Violate the Animal Welfare Act, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. U.S. District Judge Dudley H. Bowen Jr. also ordered Lampkin to serve three years of supervised release after completion of his prison term. There is no parole in the federal system.
Judge Bowen sentenced two of Lampkin’s co-defendants. Joe Ford, 33, of Elgin, S.C., was sentenced to 18 months in prison, fined $1,500, and ordered to serve three years of supervised release upon completion of his prison sentence after he pled guilty to a related felony. Xavier Simmons, 34, of Sandersville, Ga., was sentenced to five years’ probation and fined $1,000 after pleading guilty to Misprision of a Felony.
“Every defendant charged in this barbaric dog-fighting operation has now been held accountable after admitting to the charges,” said Acting U.S. Attorney Estes. “Our vigilant law enforcement partners did outstanding work in identifying and shutting down this reprehensible activity.”
“These callous individuals were attracted to an activity which is both disturbingly cruel and illegal,” said Jason Williams, Special Agent in Charge, U.S. Department of Agriculture-Office of Inspector General. “Our agency and law enforcement partners will be relentless in our pursuit of individuals who maliciously find pleasure in harming these creatures.”
In March 2018, Georgia State Patrol troopers and Georgia Department of Natural Resources game wardens conducted traffic stops in Eastman after the Oconee (Georgia) Drug Task Force received reports of dog fights at Lampkin’s property. During those traffic stops, officers discovered a dog in one of the vehicles that appeared to have been injured while fighting. Later, while serving a search warrant at Lampkin’s residence, investigators seized 63 dogs chained in the back yard and discovered a disassembled pit and bloodied carpet where fights were held, along with equipment used to train dogs for fighting.
While the Asset Forfeiture Unit of the Southern District of Georgia U.S. Attorney’s Office initiated a civil forfeiture action, an animal rescue operation took custody of the dogs.
Three other co-defendants, Benjamin Shinhoster III, a/k/a “Benji,” 41, of Louisville, Ga.; Deveon Hood, 34, of Tennille, Ga.; and Andre Archer, 24, of Sandersville, Ga., previously were sentenced to prison terms after pleading guilty to related felony charges, while Dwight McDuffie, 44, of Eastman, Ga., was sentenced to two years of probation after pleading guilty to a misdemeanor.
The case was investigated by the U.S. Department of Agriculture Office of Inspector General, and prosecuted for the United States by Special Assistant U.S. Attorney Jessica Rock with assistance from U.S. Department of Justice Environment and Natural Resources Attorney Ethan Eddy and Northern District of Georgia Assistant U.S. Attorney Theodore S. Hertzberg.
Latin Dragons Nation Member Sentenced to 204 Months of ImprisonmentRead the Press Release
HAMMOND- Ralph Mendez, 47, of Chicago, Illinois, was sentenced by United States District Court Judge Philip P. Simon following his guilty plea to conspiracy to participate in racketeering activity as a member of the Latin Dragons Nation street gang, announced United States Attorney Clifford D. Johnson.
Mendez was sentenced to 204 months of in prison followed by 2 years of supervised release.
According to documents in the case, Mendez, a Latin Dragon since approximately 1995, engaged in trafficking firearms, cocaine, and marijuana on behalf of the gang. He fought rival gang members, ordered beatings of gang members for rule violations, and recruited a former member to rejoin the gang. He illegally possessed firearms in furtherance of gang activity, and in 2017 he drove another Latin Dragon member from Hammond to a rival gang neighborhood in Chicago where the other member shot at two individuals, believing they were rival gang members. Mendez has prior felony convictions for murder, armed robbery, possession of a controlled substance, and unlawful possession of a firearm by a felon.
This case is the result of the investigative efforts of the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Chicago Police Department Criminal Enterprise Unit; the Cook County Sheriff’s Office; the Bartlett Police Department; the Hammond Police Department; the East Chicago Police Department; the Merrillville Police Department; the Hobart Police Department; the Lake County Sheriff’s Department; and the Calumet City Police Department, with assistance from the Lake County, Indiana Prosecutor’s Office, the Cook County, Illinois State’s Attorney’s Office, the Indiana Department of Corrections, and the Illinois Department of Corrections. This case is being prosecuted by Assistant U.S. Attorneys Maria N. Lerner, Michael J. Toth, and Kevin F. Wolff, with prior assistance from former Assistant U.S. Attorney Joseph A. Cooley.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Justice Department and FTC File Suit to Stop Deceptive Marketing of Nasal Spray Product Advertised as Purported COVID-19 TreatmentRead the Press Release
The Department of Justice, together with the Federal Trade Commission (FTC), Thursday announced a civil enforcement action against defendants Xlear Inc. and Nathan Jones for alleged violations of the COVID-19 Consumer Protection Act and the FTC Act.
According to a complaint filed in the U.S. District Court for District of Utah, the defendants advertised that their saline nasal spray product could prevent or treat COVID-19, without competent or reliable scientific evidence to support those claims. Further, the defendants allegedly made deceptive statements about several scientific studies to bolster their unproven COVID-19 claims. The COVID-19 Consumer Protection Act, passed by Congress in December 2020, prohibits deceptive acts or practices associated with the treatment, cure, prevention, mitigation or diagnosis of COVID-19. The complaint also alleges violations of the FTC Act, which prohibits unfair and deceptive conduct, as well as false advertising. The complaint seeks civil penalties and injunctive relief to stop the defendants from continuing to make deceptive advertising claims.
“The Department of Justice will not tolerate individuals or companies attempting to profit from the current public health emergency by unlawfully and deceptively advertising unproven products,” said Acting Assistant Attorney General Brian M. Boynton of the Department of Justice’s Civil Division. “The department is committed to working with the FTC to enforce the FTC Act and the COVID-19 Consumer Protection Act against those who unlawfully market unproven COVID-19 treatments.”
“Companies can’t make unsupported health claims, no matter what form a product takes or what it supposedly prevents or treats,” said Director Samuel Levine of the FTC’s Bureau of Consumer Protection. “That’s the lesson of this case and many others like it, and it’s why people should continue to rely on medical professionals over ads.”
This matter is being handled by Trial Attorneys Noah Katzen and Alisha Crovetto of the Civil Division’s Consumer Protection Branch, and Assistant U.S. Attorney Joel Ferre from the U.S. Attorney’s Office for the District of Utah. Keith Fentonmiller and Courtney A. Estep represent the FTC.
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 fraud related to COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. For more information about the FTC, visit its website at https://www.FTC.gov.
Inglewood Police Officer and an Informant Arrested on Federal Drug Trafficking ChargesRead the Press Release
LOS ANGELES – Federal authorities have arrested an Inglewood Police officer on narcotics trafficking charges that allege two cocaine transactions, one involving a kilogram of the drug, the Justice Department announced today.
A second man who was once approved to work as an informant for the police officer also has been arrested after authorities discovered over a kilogram of heroin and more than a half-kilogram of suspected cocaine at his residence.
Officer John Abel Baca, 45, of Whittier, a 21-year veteran of the Inglewood Police Department and their police union representative, was arrested October 21, two days after a federal grand jury returned a two-count indictment charging him with distribution of cocaine.
The indictment alleges two transactions, the first occurring on April 29, when Baca allegedly delivered cocaine to a witness cooperating with law enforcement. Baca allegedly delivered approximately one kilogram of cocaine to the same cooperating witness during another meeting on May 4, in exchange for $22,000 in cash.
Baca’s case was unsealed today following the arrest of an alleged confederate – Gerardo Ekonomo, 42, of South Los Angeles. Ekonomo was taken into custody Thursday after FBI agents executed a federal search warrant at his residence and seized narcotics buried in his yard, as well as a firearm and ammunition inside his residence.
Ekonomo was named in a criminal complaint filed today that charges him with possession with intent to distribute heroin. Ekonomo is scheduled to make his initial appearance on Monday, November 1, in United States District Court in downtown Los Angeles.
According to the affidavit in support of the criminal complaint, Baca obtained approval for Ekonomo to purportedly work as a confidential source five years ago, but Ekonomo conducted no documented operations after he was signed up as an informant.
The affidavit filed today notes that Ekonomo was arrested by officers with the City of North Las Vegas Police Department (NLVPD) on June 16 after they found 3 kilograms of heroin in his vehicle. On July 13, Baca contacted a NLVPD officer to inquire “about the status of Ekonomo’s criminal case with the North Las Vegas Police Department, and offering that Ekonomo could ‘work off’ the case by cooperating,” according to the affidavit authored by an FBI special agent.
Baca’s alleged intervention in Ekonomo’s case demonstrates that “Baca is willing to abuse his position as a law enforcement officer in furtherance of his drug trafficking activities and to assist and protect his co-conspirators,” according to the affidavit. The NLVPD officer did not dismiss the charges against Ekonomo and that case remains pending.
During his initial court appearance and arraignment on October 22, Baca was ordered detained without bond after the court found that he was a flight risk and a danger to the community. Baca’s trial is currently set for December 14 in United States District Court in Santa Ana.
If convicted on the charges in the indictment, Baca faces a five-year mandatory minimum prison sentence and a maximum sentence of 60 years of imprisonment. If convicted of the charge in the complaint, Ekonomo faces a 10-year mandatory minimum prison sentence and a maximum sentence of life in prison.
Indictments and criminal complaints contain allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The FBI is investigating this matter. The Inglewood Police Department provided its full cooperation during the investigation.
Assistant United States Attorneys Veronica Dragalin and Cassie D. Palmer of the Public Corruption and Civil Rights Section, and Gina Kong of the Santa Ana Branch Office are prosecuting this case.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Oct. 28 was:
Aaron Todd Williams, 36, of Billings, on charges of prohibited person in possession of a firearm and ammunition. If convicted of the most serious crime, Williams faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Williams was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-90.
Yvonne Tina Schlichting, 48, of Oregon, on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, Schlichting faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Schlichting was detained pending further proceedings. The Drug Enforcement Administration and the Montana Highway Patrol investigated the case. PACER case reference. 21-64.
Appearing on Oct. 26 was:
Douglas Campbell Raleigh, 46, a transient, on charges of possession with intent to distribute meth. A not guilty plea was entered on Raleigh’s behalf. If convicted of the most serious crime, Raleigh faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Raleigh was detained pending further proceedings. The FBI’s Western Transnational Organized Crime Task Force and the Eastern Montana High Intensity Drug Trafficking Area Task Force investigated the case. PACER case reference. 21-77.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Oct. 27 was:
Rosemarie Murrow, 61, of Helena, on charges of possession with intent to distribute meth, distribution of meth, possession of a firearm in furtherance of drug trafficking, prohibited person in possession of a firearm and possession of a stolen firearm. If convicted of the most serious crime, Morrow faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release on the drug charge and a mandatory five years in prison consecutive to any other sentence, a $250,000 fine and three years of supervised release on the charge of firearm in furtherance of drug trafficking. Morrow was detained pending further proceedings. The Lewis and Clark County Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives and the Missouri River Drug Task Force investigated the case. PACER case reference. 21-11.
Appearing on Oct. 26 was:
Michael James Lamere, 39, of Box Elder, on charges of conspiracy to possess with intent to distribute controlled substances and possession with intent to distribute controlled substances. If convicted of the most serious crime, Lamere faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Lamere was detained pending further proceedings. The FBI and Tri-Agency Task Force investigated the case. PACER case reference. 21-77.
Moises Zamora, 36, of Colorado, on charges of assault with intent to commit murder, assault with a deadly weapon, assault resulting in serious bodily injury and use of a firearm during and in relation to a crime of violence. If convicted of the most serious crime, Zamora faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release on the assault charge and a mandatory 10 years to life consecutive to any other sentence, a $250,00 fine and five years of supervised release on the firearms crime. The FBI and Rocky Boy’s Police Department investigated the case. PACER case reference. 21-78.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Houma Man Indicted for Violating the Federal Controlled Substances Act, the Federal Gun Control Act, and Assaulting a Federal OfficerRead the Press Release
NEW ORLEANS, LOUISIANA – JOSHUA BOGEN, age 30, a resident of Houma, Louisiana, was charged October 28, 2021, in a four-count indictment by a Federal Grand Jury with possession with intent to distribute methamphetamine in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), brandishing a firearm during and in relation to the commission of a drug trafficking offense in violation of Title 18, United States Code, Section 924(c)(1)(A), felon in possession of a firearm in violation of Title 18, United States Code, Section 922(g)(1), and assaulting a federal officer in violation of Title 18, United States Code, Section 111(b), announced U.S. Attorney Duane A. Evans.
According to the indictment, on October 18, 2021, BOGEN possessed with intent to distribute five hundred (500) grams or more of a mixture and substance containing a detectable amount of methamphetamine. BOGEN, having previously been convicted of a felony, illegally possessed a firearm in furtherance of his drug trafficking crimes. He also used this firearm, a Glock Model 26 Gen 4, nine-millimeter semi-automatic handgun, to forcibly assault a Drug Enforcement Administration Task Force Officer.
If convicted of possession with intent to distribute methamphetamine, BOGEN faces a mandatory minimum sentence of five years up to life imprisonment, a fine of up to $10,000,000, and at least five years of supervised release following any term of imprisonment. For brandishing a firearm during and in relation to the commission of a drug trafficking offense, BOGEN faces a statutory minimum sentence of seven years of imprisonment, to run consecutive with any other sentence, a fine of up to $250,000, and up to five years of supervised release. If convicted of being a felon in possession of a firearm, BOGEN faces up to ten years imprisonment, a fine of up to $250,000, and up to three years supervised release. If convicted of assaulting a federal officer, BOGEN faces up to twenty years imprisonment, a fine of up to $250,000, up to three years supervised release. For each of the four counts of the indictment, BOGEN faces payment of a $100 mandatory special assessment fee.
U.S. Attorney Evans reiterated that the indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was investigated by the Drug Enforcement Administration. The prosecution is being handled by Assistant United States Attorney Ben Myers.
Home Invasion Robberies, Murders, Other Violent Crimes Lead to Federal Charges Against Alleged Members of Gang-Based Criminal EnterpriseRead the Press Release
Miami, Florida – In a 15-count superseding indictment, a South Florida grand jury charged alleged members of a gang called “Onsight” with racketeering, armed robbery, conspiracy, murder, and other crimes following a rash of violence that plagued Broward County from 2015 to 2021.
Eric Hunter (aka “E” or “Onsight Eno”), 28, and Derrick Slade (aka “D” or “Solja”), 27, were arraigned today in federal magistrate court in Ft. Lauderdale. Gregory Stickney (aka “Gucci Greg”), 31, was arraigned on October 18.
According to the superseding indictment, from 2015 through October 2021, the Onsight gang operated as a criminal enterprise, with an identity, a hierarchy, and a multi-layered purpose. The gang’s name (Onsight) reflected its identity: an enterprise with members who would kill and commit other extreme acts of violence without hesitation, says the charging document. It is alleged that Hunter was a leader of the enterprise, at the top of the hierarchy, and that he planned, organized, and supervised the gang’s criminal ventures. Slade, Stickney and others executed those criminal ventures, which included armed home invasions, armed robberies, assaults, attempted murders, and murders, says the superseding indictment. The purpose of the criminal enterprise was to, among other things, make money through drug-dealing, robberies, and other crimes; advance the gang’s prestige and reputation among rivals both on the street and social media; and maintain control over their territory, it is alleged.
Hunter, Slade, and Stickney are each charged with RICO conspiracy, Hobbs Act conspiracy, conspiracy to use or carry a firearm during a crime of violence, causing the death of a person by using a firearm, various counts of Hobbs Act robbery, and various counts of using or carrying a firearm during a crime of violence. Each defendant faces a statutory maximum of life imprisonment or death.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI Miami made the announcement.
FBI Miami investigated this case, with assistance from Broward Sheriff’s Office, Hollywood Police Department, Lauderhill Police Department, Hallandale Beach Police Department, Davie Police Department, and Fort Lauderdale Police Department.
Assistant U.S. Attorneys Jeffrey N. Kaplan and Paul F. Schwartz are prosecuting the case.
This prosecution was part of Operation Blood Pressure, which is a result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the highest-level drug traffickers, money launderers, and other priority transnational criminal organizations that threaten the citizens of the United States using a prosecutor-led, intelligence driven, multi-agency approach to combat transnational organized crime. The OCDETF program facilitates complex, joint operations by focusing its partner agencies on priority targets, by managing and coordinating multi-agency efforts, and by leveraging intelligence across multiple investigative platforms.
A superseding indictment is only an accusation and defendants are presumed innocent unless and until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 20-cr-60107.
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Heroin and Cocaine Suppliers for Bloods Gang Members SentencedRead the Press Release
NEWPORT NEWS, Va. –A New Jersey couple was sentenced yesterday to 125 and 30 months in prison for conspiracy to distribute heroin and cocaine to members of the Bloods gang.
According to court documents, from at least 2015 to 2017, Stephen Price, 48, and Dominique Waller, 33, both of Freehold, New Jersey, participated in a conspiracy to traffic drugs from New Jersey for distribution in the Hampton Roads region. Price was one of the sources of supply for members of the Bloods criminal street gang on the Virginia Peninsula. Price traveled to Virginia and provided gang members with distribution quantities of cocaine and heroin. Price also would distribute cocaine and heroin to Bloods gang members who traveled from Virginia to New Jersey to obtain the narcotics for redistribution on the Virginia Peninsula. When Price was unavailable, Waller would meet with the gang members and provide them with narcotics. Price and Waller would then launder the proceeds from the sale of the narcotics, which in total amounted to almost $550,000.
Price and Waller pleaded guilty to conspiracy to distribute cocaine and heroin on May 27 and June 1, respectively. Price was sentenced to 125 months in prison for his role in the conspiracy and Waller was sentenced to 30 months in prison for her role in the conspiracy.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge David J. Novak.
Assistant U.S. Attorney Eric M. Hurt prosecuted the case.
This investigation was conducted by the FBI’s Peninsula Safe Streets Task Force, a partnership that includes the FBI, Virginia State Police, Hampton Police Division, James City County Police Department and Newport News Police Department. This task force investigates the most violent criminal enterprises operating on the Virginia Peninsula. Tips regarding gang activity and other violent crimes in the region can be reported to the FBI at 1-800-CALL-FBI or https://tips.fbi.gov/.
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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:20-cr-40.
Hartford Man Charged with Offenses Stemming from Theft of Firearms from South Windsor WarehouseRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, James Ferguson, Special Agent in Charge, ATF Boston Field Division, and South Windsor Police Chief Kristian Lindstrom today announced that SHAMEIK CAMARA, 32, of Hartford, was arrested yesterday on a federal criminal complaint charging him with offenses related to the theft of firearms from a South Windsor warehouse in August.
Following his arrest, Camara appeared before U.S. Magistrate Judge Robert A. Richardson in Hartford and was released on a $100,000 bond. A follow-up bond hearing is scheduled for November 1 at 10:30 a.m.
As alleged in court documents and statements made in court, in August 2021, a shipment of 50 Zigana, Model PX-9G2 pistols was stolen from R&L Carriers, a national freight shipping company with a warehouse located at 540 Sullivan Avenue in South Windsor. Even though R&L employees were aware of the theft shortly after it occurred in mid-August, they did not notify law enforcement. Officials at R&L carriers reported the theft to law enforcement on September 16, 2021. Earlier this month, investigators identified Camara after seeing Facebook Marketplace and Offer Up posts selling high-end speakers and sports trading cards that were similar to items stolen from the R&L warehouse at about the same time of the firearm shipment theft.
It is alleged that Camara, a previously convicted felon, possessed one of the stolen firearms at the time of his arrest. Two additional stolen firearms have been recovered by law enforcement.
Camara is charged with receipt and possession of items from an interstate shipment, possession of firearms by a felon, and possession of stolen firearms. Each charge carries a maximum term of imprisonment of 10 years.
Acting U.S. Attorney Boyle stressed that a complaint is only a charge and 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 investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the South Windsor Police Department. The case is being prosecuted by Assistant U.S. Attorney Maria del Pilar Gonzalez.
The ATF Boston Field Division and the National Shooting Sports Foundation, the trade association for the firearms industry, have announced a combined reward of up to $10,000 for information leading to the arrest and prosecution of persons involved in this theft of firearms. Anyone with information about this case is asked to contact investigators immediately at 860-935-8080 or call 888-ATF-TIPS (888-283-8477), or send an email to [email protected].
Gree Appliance Companies Charged with Failure to Report Dangerous Dehumidifiers and Agree to $91 Million ResolutionRead the Press Release
LOS ANGELES – A Chinese appliance manufacturer and two of its subsidiaries have agreed to resolve criminal charges for failing to notify the U.S. Consumer Product Safety Commission (CPSC) that millions of dehumidifiers they sold to U.S. consumers were defective and could catch fire, the Justice Department announced today.
The resolutions are the first corporate criminal enforcement actions ever brought under the Consumer Product Safety Act (CPSA).
Gree Electric Appliances, Inc. of Zhuhai (Gree Zhuhai), a global appliance manufacturer headquartered in Zhuhai, China, and Hong Kong Gree Electric Appliances Sales Co., Ltd. (Gree Hong Kong) entered into a deferred prosecution agreement (DPA) in connection with a criminal information filed in federal court in Los Angeles. A criminal information filed along with the DPA charges the companies with one felony count under the CPSA of willfully failing to report consumer product safety information to the CPSC. Under the terms of the DPA, Gree Zhuhai and Gree Hong Kong agreed to a total monetary penalty of $91 million and agreed to provide restitution for any uncompensated victims of fires caused by the companies’ defective dehumidifiers.
Gree USA, Inc., a U.S. subsidiary based in the City of Industry, also is charged in the criminal information. Gree USA has agreed to plead guilty to the same charge of willfully failing to report consumer product safety information to the CPSC.
According to court filings, Gree Zhuhai, Gree Hong Kong and Gree USA (collectively, the Gree Companies) knew their dehumidifiers were defective, failed to meet applicable safety standards and could catch fire, but the companies failed to report that information to the CPSC for months. The companies only reported and recalled the dehumidifiers after consumer complaints of fires and resulting harm continued to mount.
Prosecutors with the United States Attorney’s Office and the Consumer Protection Branch of the Justice Department’s Civil Division previously indicted Charley Loh, 63, of Arcadia, and Simon Chu, 66, of Chino Hills – respectively, the chief executive officer and chief administrative officer of Gree USA – on felony CPSA and wire fraud charges for their alleged roles in the failure to report the defective dehumidifiers. Loh and Chu have pleaded not guilty and are scheduled for trial on March 15, 2022, in Los Angeles.
“No one should live in fear that a properly used consumer product might cause injury or death to their loved ones,” said Acting U.S. Attorney Tracy L. Wilkison. “Gree’s months-long delay in reporting known problems with their dangerous and defective dehumidifiers was both criminal and costly. Gree’s decision to delay the reporting of its defective dehumidifiers has resulted in the recall of millions of those products and the payment of millions of dollars. We will not allow companies to profit at the expense of consumers’ health and safety.”
“Manufacturers and distributors must immediately report dangerous consumer products to the CPSC so that actions to protect consumers may be taken as soon as possible,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “Companies and executives that purposefully delay reporting to maintain profits will be prosecuted. The Department of Justice will continue to work closely with the CPSC to ensure consumers’ safety.”
“This historic criminal enforcement action should serve notice that the CPSC will use its authority to the fullest to keep American families safe,” said Chair Alex Hoehn-Saric of the CPSC. “Failing to report dangerous products puts consumers at an unnecessary risk and will not be tolerated.”
“Inferior goods represent a serious threat to the integrity of the consumer product supply chain that the public needs to rely on with confidence,” said Special Agent in Charge David A. Prince for Homeland Security Investigations (HSI) Los Angeles. “Defective products like these pose a dangerous threat to consumers, who assume the products they buy are safe and reliable. HSI will continue to work with our law enforcement partners to aggressively target and investigate those who knowingly jeopardize public safety in the name of profit.”
As part of the DPA and plea agreement, the Gree Companies admitted that, between 2007 and 2013, they sold in the United States more than 2 million dehumidifiers manufactured by Gree Zhuhai and imported by Gree Hong Kong. In September 2012, employees of the Gree Companies, including high-level executives, learned that the Gree dehumidifiers had defects that could cause them to overheat and catch fire, and that consumers had reported fires caused by the dehumidifiers. Those same employees also knew of the obligation to report dangerous consumer products to the CPSC. Despite this knowledge, Gree USA continued to sell the defective dehumidifiers in the United States for at least another six months. The Gree Companies delayed reporting knowledge of the fires to the CPSC for approximately six months, and did not report the defects in the dehumidifiers for approximately nine months. Ultimately, Gree Zhuhai recalled the defective dehumidifiers almost a year after learning about the products’ dangerous defects.
As part of the criminal resolutions, the Gree Companies have agreed, among other things, to continue to cooperate with the Justice Department’s Consumer Protection Branch and the United States Attorney’s Office in any ongoing or future investigations and prosecutions. The Gree Companies also agreed to strengthen their compliance programs and to enhanced reporting requirements that will require the submission of yearly reports to the Justice Department regarding the status of their compliance programs and internal controls, policies and procedures aimed at improving product safety and deterring and detecting violations of the CPSA, as well as the status of remediation efforts. Consistent with Justice Department policy, the DPA with Gree Zhuhai and Gree Hong Kong credits the Gree Companies’ earlier payment of $15.45 million in civil penalties to the CPSC against the agreed-upon $91 million total monetary penalty.
Representatives of Gree USA have agreed to appear in United States District Court in Los Angeles on November 8 for an initial appearance in this case.
HSI of the U.S. Department of Homeland Security investigated this case.
Assistant United States Attorneys Joseph Johns and Dennis Mitchell of the Environmental and Community Safety Crimes Section, and Senior Litigation Counsel Allan Gordus and Trial Attorneys Natalie Sanders and Maryann McGuire of the Justice Department’s Consumer Protection Branch prosecuted the case with the assistance of Patricia Vieira of the CPSC’s Office of General Counsel.
Gree Appliance Companies Charged with Failure to Report Dangerous Dehumidifiers and Agree to $91 Million ResolutionRead the Press Release
A Chinese appliance manufacturer and two of its subsidiaries have agreed to resolve criminal charges for failing to notify the U.S. Consumer Product Safety Commission (CPSC) that millions of dehumidifiers they sold to U.S. consumers were defective and could catch fire. The resolutions are the first corporate criminal enforcement actions ever brought under the Consumer Product Safety Act (CPSA).
Gree Electric Appliances Inc. of Zhuhai (Gree Zhuhai), a global appliance manufacturer headquartered in Zhuhai, China, and Hong Kong Gree Electric Appliances Sales Co. Ltd. (Gree Hong Kong) entered into a deferred prosecution agreement (DPA) in connection with a criminal information filed Thursday in the U.S. District Court for the Central District of California. A criminal information filed along with the DPA charges the companies with one felony count under the CPSA of willfully failing to report consumer product safety information to the CPSC. Under the terms of the DPA, Gree Zhuhai and Gree Hong Kong agreed to a total monetary penalty of $91 million and agreed to provide restitution for any uncompensated victims of fires caused by the companies’ defective dehumidifiers.
Gree USA Inc., a U.S. subsidiary based in City of Industry, California, also is charged in the criminal information. Gree USA has agreed to plead guilty to the same charge of willfully failing to report consumer product safety information to the CPSC.
According to court filings, Gree Zhuhai, Gree Hong Kong and Gree USA (collectively, the Gree Companies) knew their dehumidifiers were defective, failed to meet applicable safety standards and could catch fire, but the companies failed to report that information to the CPSC for months. The companies only reported and recalled the dehumidifiers after consumer complaints of fires and resulting harm continued to mount.
The Consumer Protection Branch of the Justice Department’s Civil Division and the U.S. Attorney’s Office for the Central District of California previously indicted Charley Loh, 63, of Arcadia, California, and Simon Chu, 66, of Chino Hills, California — the Chief Executive Officer and Chief Administrative Officer of Gree USA, respectively — with felony CPSA and wire fraud charges for their alleged roles in the failure to report the defective dehumidifiers. Loh and Chu have pleaded not guilty and are scheduled for trial starting March 15, 2022, in Los Angeles.
“Manufacturers and distributors must immediately report dangerous consumer products to the CPSC so that actions to protect consumers may be taken as soon as possible,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “Companies and executives that purposefully delay reporting to maintain profits will be prosecuted. The Department of Justice will continue to work closely with the CPSC to ensure consumers’ safety.”
“No one should live in fear that a properly used consumer product might cause injury or death to their loved ones,” said Acting U.S. Attorney Tracy L. Wilkison for the Central District of California. “Gree’s months-long delay in reporting known problems with their dangerous and defective dehumidifiers was both criminal and costly. Gree’s decision to delay the reporting of its defective dehumidifiers has resulted in the recall of millions of those products and the payment of millions of dollars. We will not allow companies to profit at the expense of consumers’ health and safety.”
“This historic criminal enforcement action should serve notice that the CPSC will use its authority to the fullest to keep American families safe,” said Chair Alex Hoehn-Saric of the CPSC. “Failing to report dangerous products puts consumers at an unnecessary risk and will not be tolerated.”
“Inferior goods represent a serious threat to the integrity of the consumer product supply chain that the public needs to rely on with confidence,” said Special Agent in Charge David A. Prince for Homeland Security Investigations (HSI) Los Angeles. “Defective products like these pose a dangerous threat to consumers, who assume the products they buy are safe and reliable. HSI will continue to work with our law enforcement partners to aggressively target and investigate those who knowingly jeopardize public safety in the name of profit.”
As part of the DPA and plea agreement, the Gree Companies admitted that, between 2007 and 2013, they sold in the United States more than two million dehumidifiers manufactured by Gree Zhuhai and imported by Gree Hong Kong. In September 2012, employees of the Gree Companies, including high-level executives, learned that the Gree dehumidifiers had defects that could cause them to overheat and catch fire, and that consumers had reported fires caused by the dehumidifiers. Those same employees also knew of the obligation to report dangerous consumer products to the CPSC. Despite this knowledge, Gree USA continued to sell the defective dehumidifiers in the United States for at least another six months. The Gree Companies delayed reporting knowledge of the fires to the CPSC for approximately six months, and did not report the defects in the dehumidifiers for approximately nine months. Ultimately, Gree Zhuhai recalled the defective dehumidifiers almost a year after learning about the products’ dangerous defects.
As part of the criminal resolutions, the Gree Companies have agreed, among other things, to continue to cooperate with the Civil Division’s Consumer Protection Branch and the U.S. Attorney’s Office in any ongoing or future investigations and prosecutions. The Gree Companies also agreed to strengthen their compliance programs and to enhanced reporting requirements that will require the submission of yearly reports to the Justice Department regarding the status of their compliance programs and internal controls, policies and procedures aimed at improving product safety and deterring and detecting violations of the CPSA, as well as the status of remediation efforts. Consistent with Justice Department policy, the DPA with Gree Zhuhai and Gree Hong Kong credits the Gree Companies’ earlier payment of $15.45 million in civil penalties to the CPSC against the agreed-upon $91 million total monetary penalty.
Senior Litigation Counsel Allan Gordus and Trial Attorneys Natalie Sanders and Maryann McGuire of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorneys Joseph Johns and Dennis Mitchell of the U.S. Attorney’s Office for the Central District of California prosecuted the case with the assistance of Patricia Vieira of the CPSC’s Office of General Counsel. HSI of the U.S. Department of Homeland Security investigated this case.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch.
Georgia man admits submitting false information to obtain COVID-19 disaster relief fundingRead the Press Release
DUBLIN, GA: A Laurens County, Georgia man has admitted lying to obtain a COVID-19 disaster relief loan and using a large portion of the money to buy a collectible trading card.
Vinath Oudomsine, 31, of Dublin, Ga., pled guilty in U.S. District Court to an Information charging him with one count of Wire Fraud, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. Oudomsine’s plea subjects him to a maximum statutory penalty of up to 20 years in prison and substantial fines, followed by up to three years of supervised release after completion of any prison term. There is no parole in the federal system.
“The unlawful taking of taxpayer dollars is always disgusting, but in this context, the taking from emergency relief funds intended to help our neighbors and their businesses is outrageous,” said Acting U.S. Attorney Estes. “I want the hard working citizens of this District to know that this Office will continue to work with our law enforcement partners to hold accountable those who would fraudulently obtain and misuse these relief funds.”
As described in the Information and court proceedings, starting on or around July 2020, Oudomsine applied to the SBA for an Economic Injury Disaster Loan (EIDL) ostensibly for an “entertainment services” business in Dublin with 10 employees and gross revenues of $235,000 in the 12 months preceding the COVID-19 pandemic. As a result of fraudulent representations on Oudomsine’s application, the SBA deposited $85,000 into Oudomsine’s bank account on Aug. 4, 2020. Oudomsine later used $57,789 of the funds to purchase a Pokémon trading card.
“COVID-19 disaster relief loans are issued by the government to help legitimate businesses who are struggling to survive during the pandemic,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI and our law enforcement partners are dedicated to holding accountable anyone who would abuse taxpayer dollars and divert them from citizens who desperately need them.”
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 Federal Bureau of Investigation and the Small Business Administration Office of Inspector General investigated the case. Oudomsine is being prosecuted for the United States by Assistant U.S. Attorneys Jonathan A. Porter and Patrick J. Schwedler.
Georgia Couple Pleads Guilty to Producing Child PornographyRead the Press Release
VALDOSTA, Ga. – A Georgia couple has pleaded guilty to producing child pornography.
Jayson E. Wright, 35, of Valdosta, pleaded guilty to two counts of production of child pornography before U.S. District Judge Louis S. Sands on Oct. 28. Co-defendant Kara Wright, 32, of Valdosta, pleaded guilty before Judge Sands to one count of production of child pornography on June 10. Both defendants face a mandatory minimum sentence of fifteen years up to a maximum sentence of thirty years imprisonment to be followed by no less than five years up to a lifetime of supervised release and a $250,000 fine on each count. In addition, both defendants will have to register as a sex offender for life upon release from prison. Sentencing is scheduled for Feb. 24.
“Jayson Wright and his wife committed heinous and unthinkable acts upon innocent children and did so repeatedly over a number of years. We will seek a sentence commensurate with the egregious conduct involved in this case,” said Acting U.S. Attorney Peter D. Leary. “The U.S. Attorney’s Office will hold Jayson and Kara Wright--along with all child predators--fully accountable for exploiting and victimizing the most vulnerable.”
“Wright will now answer for his years-long pattern of abuse and exploitation thanks to great work by HSI and its law enforcement partners,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama.
“This case is another example demonstrating the success of the close working relationship between the Lowndes County Sheriff’s Office and the federal agencies that allow us to take really bad people off the streets. To the victims in this case—I hope that knowing that people do care and will work for justice will help bring them some peace of mind,” said Lowndes County Sheriff Ashley Paulk.
According to court documents, Jayson and Kara Wright exploited and manipulated children to engage in sexually explicit acts which were filmed or photographed. Information gathered during the investigation uncovered that Jayson Wright was involved in the Valdosta area Boy Scouts of America from Aug. 2015 until Aug. 2020. Parents and guardians of children whose children may have come into contact with Jayson or Kara Wright are encouraged to contact the following hotlines to share any concerns related to this investigation:
Homeland Security Investigations Tip Line: 866-DHS-2-ICE
Lowndes County Sheriff’s Office, Investigations Division: (229) 671-2950
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 the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Lowndes County Sheriff’s Office and Homeland Security Investigations (HSI).
Assistant U.S. Attorney Katelyn Semales is prosecuting the case with support from Assistant U.S. Attorney Alex Kalim.
Gaithersburg Brothers Sentenced to Federal Prison for Money Laundering in Connection with Elder Romance SchemeRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced David Annor, age 28 and Lesley Annor, age 23, both of Gaithersburg, Maryland to federal prison for conspiracy to commit money laundering, in connection with a romance scheme in which conspiracy members induced elderly and isolated victims to send money to co-conspirators based on romantic assertions and other misrepresentations. David Annor, Lesley Annor, and their co-conspirators received and laundered the payments from the victims. David Annor was sentenced to three years in prison, followed by three years of supervised release. Lesley Annor was sentenced to 20 months in prison, followed by three years of supervised release. The court also ordered the Annors to pay $6,278,250 in restitution.
The sentences were announced by United States Attorney for the District of Maryland Erek L. Barron; Assistant Director in Charge Wayne Jacobs of the Federal Bureau of Investigation - Washington Field Office; Postal Inspector in Charge Daniel Adame of the U.S. Postal Inspection Service - Washington Division (USPIS); and Special Agent in Charge Matthew R. Stohler of the United States Secret Service - Washington Field Office (USSS).
“David and Lesley Annor preyed on hundreds of elderly victims around the world. They took advantage of their trust to selfishly obtain millions of dollars in fraud proceeds. Now, they will spend time in federal prison for the severe financial fraud they have inflicted on vulnerable elderly victims,” said United States Attorney for the District of Maryland, Erek L. Barron. “This sentencing should serve as a deterrent from others conspiring to defraud our elderly citizens.”
“This investigation is yet another example that the U.S. Postal Inspection Service is strongly committed to ensuring the sanctity of the U.S. Mail and will hold those who prey on our most vulnerable citizens accountable for their actions.” said Postal Inspector in Charge Daniel Adame of the U.S. Postal Inspection Service - Washington Division.
“Today’s sentencing demonstrates the FBI’s and our law enforcement partners’ commitment to pursuing justice for victims of elder fraud,” said Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division. “We will continue to track down criminals like Annor and his co-conspirators—who coldheartedly prey on their elderly victims’ isolation, loneliness, and vulnerability and then pocket their hard-earned money—and hold them to account for their cruel scams.”
“We are pleased to see justice served here. These individuals preyed on the elderly making their crimes particularly egregious. The outcome of this collective investigative effort should send a clear message that these types of scams will not be tolerated.” said Special Agent in Charge Matthew R. Stohler of the United States Secret Service - Washington Field Office.
According to their guilty pleas, between May 2017 and October 2020, David Annor, Lesley Annor, and a co-conspirator participated in a romance scheme that targeted elderly victims online, typically through social media, dating websites, e-mail, and online applications. Once the conspiracy members convinced the victims to trust them, the conspiracy members would instruct the victims to send money to bank accounts and physical addresses linked to David Annor and conspiracy members. Conspirators often received 10 percent of the victim’s money and sent the remainder of the money to co-conspirators located in Ghana.
For example, in September 2018, Victim 2, a woman born in 1957, met an individual claiming to be Brett Fernley on a social media platform. Fernley told Victim 2 that he was an underwater welder from Canada, who resided in Florida and worked near Ireland. After engaging in what Victim 2 thought to be romantic conversations, and gaining Victim 2’s trust, Fernley began asking Victim 2 for money.
In December 2018, Fernley instructed Victim 2 on how to send money to a bank account in the name of Ravid Enterprise, a business bank account opened and controlled by David Annor. Bank records show that Victim 2 wired over $44,800 to the Ravid Enterprise bank account.
Over the course of the scheme, the conspiracy members laundered over $6,200,000 through approximately 34 bank accounts at 11 different financial institutions. At least $3,909,396 in victim payments were made into personal and business bank accounts controlled by David Annor.
The Annor brothers have remained in custody since their arrest on November 16, 2020.
The Department of Justice runs the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311), has an interactive tool for elders who have been financially exploited to help determine to which agency they should report their incident, and also a senior scam alert website. Victims are encouraged to file a complaint online with the FBI’s Internet Crime Complaint Center at this website or by calling 1-800-225-5324. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP.
United States Attorney Erek L. Barron praised FBI, USPIS, and the USSS for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Thomas P. Windom and Special Assistant United States Attorney Jessica C. Harvey from the Department of Justice’s Public Integrity Section, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/community-outreach.
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Gillette Man Indicted for Tax and Wire FraudRead the Press Release
Acting United States Attorney Bob Murray announced today that DAVID A. JACKSON, a/k/a GERALD DAVID JACKSON, a/k/a GERALD D. RODERICK-JACKSON, of Gillette, Wyoming was charged by indictment with multiple counts of wire and tax fraud. Jackson appeared for an arraignment hearing before U.S. District Court Magistrate Judge Kelly H. Rankin on October 27, 2021 and pled not guilty to the charges. A trial has been set for December 31, 2021.
According to charges outlined in the indictment, Jackson was employed as an office manager for two Gillette businesses between October 2017 and April 2019. Part of Jackson’s duties included handling all financial aspects of his employer’s businesses, including collecting, accounting for, and paying over trust fund taxes to the IRS on behalf of his employer. Additionally, Jackson operated a taxi business in Casper and Gillette.
It is alleged that Jackson committed wire fraud by engaging in a scheme to defraud his employer by means of materially false and fraudulent pretenses, representations and promises and diverting the financial assets of his employer for his own personal use. It is further alleged that Jackson withheld the trust fund taxes for his employer’s employees but failed to pay these taxes to the IRS. Instead, Jackson caused electronic transfers of payments from his employer’s bank accounts to bank accounts Jackson controlled. Jackson allegedly did not report any of the at least $111,761 of embezzled funds as income on his personal 2018 federal income tax return.
Each count of wire fraud carries a maximum penalty of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. Each count of willful failure to collect or pay over tax carries a maximum penalty of up to five years in prison, up to three years of supervised release, and a fine of up to $10,000. The charge of false statement on a tax return carries a maximum penalty of up to three years in prison, up to one year of supervised release, and a fine of up to $100,000.Founder of Russian Bank Sentenced for Felony Tax Conviction Arising from Scheme to Evade Exit Tax while Renouncing his U.S. CitizenshipRead the Press Release
The founder of a Russian bank was sentenced today for his felony conviction for filing a false tax return. As required under his plea agreement, prior to sentencing, Oleg Tinkov, aka Oleg Tinkoff, paid $508,936,184, more than double what he had sought to escape paying to the U.S. Treasury through a scheme to renounce his U.S. citizenship and conceal from the IRS large stock gains that he knew were reportable. This includes $248,525,339 in taxes, statutory interest on that tax and a nearly $100 million fraud penalty. Tinkov was additionally fined $250,000, which is the maximum allowed by statute, and sentenced to time served and one year of supervised release.
Tinkov was indicted in Sept. 2019 for willfully filing false tax returns, and was arrested on Feb. 26, 2020, in London, United Kingdom (UK). The United States sought extradition, and Tinkov contested on medical grounds. In public records, Tinkov has disclosed that he is undergoing a UK-based intensive treatment plan for acute myeloid leukemia and graft versus host disease, which has rendered him immunocompromised and unable to safely travel in the foreseeable future.
On Oct. 1, 2021, Tinkov entered a plea to one count of filing a false tax return. According to the plea agreement, Tinkov was born in Russia and became a naturalized United States citizen in 1996. From that time through 2013, he filed U.S. tax returns. In late 2005 or 2006, Tinkov founded Tinkoff Credit Services (TCS), a Russia-based branchless bank that provides its customers with online financial and banking services. Through a foreign entity, Tinkov indirectly held the majority of TCS shares.
In October 2013, TCS held an initial public offering (IPO) on the London Stock Exchange and became a multi-billion dollar, publicly traded company. As part of going public, Tinkov sold a small portion of his majority shareholder stake for more than $192 million, and his assets following the IPO had a fair market value of more than $1.1 billion. Three days after the successful IPO, Tinkov went to the U.S. Embassy in Moscow, Russia, to relinquish his U.S. citizenship.
As part of his expatriation, Tinkov was required to file a U.S. Initial and Annual Expatriation Statement. This form requires expatriates with a net worth of $2 million or more to report the constructive sale of their assets worldwide to the IRS as if those assets were sold on the day before expatriation. The taxpayer is then required to report and pay tax on the gain from any such constructive sale.
Tinkov was told of his filing and tax obligations by both the U.S. Embassy in Moscow and his U.S.-based accountant. When asked by his accountant if his net worth was more than $2 million for purposes of filling out the expatriation form, Tinkov lied and told him he did not have assets above $2 million. When his accountant later inquired whether his net worth was under $2 million, rather than answer the question, Tinkov filled out the expatriation form himself falsely reporting that his net worth was only $300,000. On Feb. 26, 2014, Tinkov filed a 2013 individual tax return that falsely reported his income as only $205,317. In addition, Tinkov did not report any of the gain from the constructive sale of his property worth more than $1.1 billion, nor did he pay the applicable taxes as required by law. In total, Tinkov caused a tax loss of $248,525,339, which he has paid in full with substantial penalties and interest as part of his plea, together with tax liabilities for other years.
Acting Deputy Assistant Attorney General Stuart M. Goldberg, Acting U.S. Attorney Stephanie M. Hinds for the Northern District of California and Acting Special Agent in Charge Darrell J. Waldon of the IRS-CI Washington, D.C. Field Office made the announcement.
The IRS-Criminal Investigation Division investigated the case. The Justice Department’s Office of International Affairs and law enforcement partners in the UK secured Tinkov’s arrest overseas.
Assistant U.S. Attorneys Michelle J. Kane and Colin Sampson and former Assistant U.S. Attorney Jose Olivares of the U.S. Attorney’s Office for the Northern District of California and Trial Attorney Peter Anthony and former Assistant Chief Yael T. Epstein of the Tax Division prosecuted the case.
Former Pharmaceutical Sales Representative Sentenced to More Than Four Years in Prison for Insurance Fraud and Aggravated Identity TheftRead the Press Release
BOSTON – An Illinois man was sentenced yesterday for defrauding insurance companies in relation to a high-priced drug made by Cambridge-based pharmaceutical company Aegerion Pharmaceuticals Inc., and for using the identities of physicians to carry out the fraud.
Mark Moffett, 49, of Springfield, Ill., was sentenced by U.S. Senior District Court Judge William G. Young to 54 months in prison and three years of supervised release. In December 2019, Moffett was convicted by a federal jury of nine counts of wire fraud and six counts of aggravated identity theft.
“Mr. Moffett exploited his personal relationships with medical staff, stole doctors’ identities, falsified medical documents and deceived insurance companies – all in pursuit of sales bonuses,” said Acting United States Attorney Nathaniel R. Mendell. “His prison sentence is a reminder that those who engage in healthcare fraud schemes, no matter how sophisticated, will pay for their crimes.”
“Today’s sentence holds Mark Moffett accountable for gaming the healthcare system to line his own pockets. He deceived doctors and patients to boost sales of this powerful drug, and defrauded Medicare in the process. Fraud of this magnitude will not be tolerated because it drives up healthcare costs for all of us,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division.
“Today’s sentence shows that fraudsters like Mark Moffett who try to enrich themselves at the expense of federal health care programs and the well-being of beneficiaries will be held accountable for their greed-fueled schemes. Such scams threaten patient health, waste taxpayer funds, and drive-up healthcare costs for all of us,” said Phillip M. Coyne, Special Agent in Charge for the U.S. Department of Health & Human Services, Office of Inspector General. “Working closely with our law enforcement partners, we will continue to aggressively root out health care fraud and bring criminals to justice.”
“Working with our law enforcement partners, the Employee Benefits Security Administration continues to investigate and vigorously pursue cases in which participants and private sector health benefit plans are victimized by unscrupulous and illegal pharmaceutical sales practices,” said Carol S. Hamilton, Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office.
In 2014 and 2015, Moffett, a pharmaceutical sales representative for Aegerion, marketed the company’s cholesterol drug Juxtapid. Juxtapid was approved by the FDA only to treat high cholesterol in patients with a rare genetic disease called homozygous familial hypercholesterolemia (HoFH). The FDA approved the drug only to treat HoFH patients because the drug carried serious risks of side effects, including liver damage. The drug’s label included a black box warning.
Moffett nonetheless convinced doctors to prescribe Juxtapid, which costs over $300,000 per year, for patients without HoFH. In order to defraud Medicare and private sector employee health plans into paying for a drug they only covered for FDA-approved uses, Moffett obtained fraudulent prescriptions and falsified numerous documents, including statements of medical necessity and other insurance documents. This included false patient test results, false clinical histories and false diagnoses. Moffett used the identities of several cardiologists to carry out the fraud. He was paid bonuses by Aegerion of up to $11,000 for each prescription of Juxtapid.
Acting United States Attorney Mendell, FBI Boston SAC Bonavolonta, HSI-OIG SAC Coyne and DOL-EBSA Regional Director Hamilton made the announcement. Assistant U.S. Attorneys Kriss Basil, of Mendell’s Securities and Financial Fraud Unit, and Rachel Y. Hemani, of Mendell’s Health Care Fraud Unit, prosecuted the case.
Former Maverick County Detective Indicted for BriberyRead the Press Release
DEL RIO – An Eagle Pass man was arrested yesterday by the FBI in San Antonio on criminal charges related to his alleged role in a bribery scheme.
According to court documents, Fernando Leonel Chacon Jr., 41, allegedly devised a scheme to use his position with the Maverick County Sheriff’s Office to enrich himself by soliciting and accepting bribes of money and other things of value in exchange for removing pending tickets and arrest warrants against citizens.
Chacon is charged by a federal indictment with two counts of wire fraud. If convicted, Chacon faces a maximum penalty of 20 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ashley C. Hoff of the Western District of Texas and FBI Special Agent in Charge Christopher Combs made the announcement.
Assistant U.S. Attorney Stephen Kam is prosecuting the case.
The FBI, Texas Rangers and the Eagle Pass Police Department are investigating this case.
An indictment is merely an allegation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Florida Man Sentenced to over Three Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
Gulfport, Miss. - A Florida man was sentenced to 41 months in federal prison and ordered to pay a $5,000 fine for being a convicted felon in possession of a firearm.
Martin Gerardo Perusquia, 55, of Hollywood, Florida, was sentenced by U.S. District Judge Taylor B. McNeel on October 28, 2021, in Gulfport. Perusquia pleaded guilty to the felony offense on July 27, 2021.
According to court documents, on May 14, 2021, an agent of the South Mississippi Metro Enforcement Team (SMMET), who also is a Jackson County Sheriff’s Deputy, was on duty along Interstate 10 westbound in Jackson County. The agent conducted a traffic stop on a vehicle in which Perusquia was the driver and sole occupant. Perusquia had in his possession a Smith and Wesson .357 Magnum revolver with ammunition. Record checks revealed that he was a felon who had previous convictions for possession of methamphetamine, possession of a firearm by a convicted felon, and bank robbery.
Acting U.S. Attorney Darren J. LaMarca, Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation in Mississippi, and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms and Explosives made the announcement.
The SMMET, a multi-jurisdictional Federal, State and Local, Law Enforcement Task Force, and the Federal Bureau of Investigation investigated this case. Assistant U.S. Attorney Stan Harris prosecuted the case.
This case was prosecuted as part of the federal, state, and local Project Safe Neighborhoods (PSN) Program. The centerpiece of the Department of Justice’s crime reduction efforts, PSN is an evidence-based program proven effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together and develop comprehensive solutions. As part of this strategy, PSN focuses enforcement efforts and partners with locally based prevention and reentry programs for lasting reductions in crime.
Father and Son Convicted of Scheme to Transport Minor Child Between Croatia and Florida for Sexual ActivityRead the Press Release
Tampa, Florida – A federal jury has found Jordan Jysae Pulido (27, Trinity) guilty of enticement and coercion of minor, traveling out of the country to engage in illicit sexual conduct, and transporting a minor into the United States to engage in sexual activity. The jury also found Pulido and his father, Roberto Santana Jimenez (62, Trinity), guilty of conspiracy to transport a minor into the country to engage in sexual activity. Pulido and Jimenez face a minimum mandatory of 10 years, and up to life, in federal prison. The sentencing hearings are scheduled for January 13, 2022.
Pulido and Jimenez were indicted on September 24, 2020.
According to testimony and evidence presented at trial, in September 2017, then 23-year-old Pulido met a 14-year-old child on an online social networking website. At the time, Pulido lived in Florida and the child resided in Croatia. Pulido began a teacher-student relationship with the child and promised to teach the child to play the guitar. After a few months of guitar lessons, Pulido began to pursue a romantic and sexual relationship with the child. For nearly a year, Pulido used the internet to entice and coerce the child to engage in sexual activity with him. During this time, Pulido and Jimenez planned Pulido’s trip to Croatia, and Pulido sought Jimenez’s advice on how to persuade the child to have sex with him when he (Pulido) traveled to Croatia. Jimenez coached Pulido on what to do and say to the child and communicated directly with the child about her relationship with Pulido in an effort to further persuade and coerce her.
On June 14, 2018, Pulido traveled from Florida to Croatia, proposed marriage to the child on her 15th birthday, and engaged in sexual activity with the child. In the month that followed, Pulido and his father conspired to transport and traffic the child from Croatia to Florida so that Pulido could engage in sexual activity with the child. On or about July 23, 2018, Pulido transported the child victim from Croatia to Florida for the purpose of engaging in sexual activity with the child. Agents with the Florida Department of Law Enforcement rescued the child victim from the Pulido/Jimenez family home in Trinity on August 12, 2018.
This case was investigated by Homeland Security Investigations, the Florida Department of Law Enforcement, the Pasco Sheriff’s Office, the Koprivnica-Križevac County Police Administration of the Republic of Croatia Ministry of the Interior Criminal Police, and the International Criminal Police Organization. The Justice Department’s Office of International Affairs provided substantial assistance. It is being prosecuted by Assistant United States Attorney Lisa M. Thelwell.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Facilitator of Drug Trafficking in Brattleboro SentencedRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Dean Gero, 54, formerly of Brattleboro, Vermont, was sentenced yesterday in United States District Court in Rutland, Vermont in connection with his drug trafficking activity. Chief United States District Judge Geoffrey Crawford sentenced Gero to a time-served term of incarceration and three years of supervised release.
According to court records and proceedings, in April 2019, Gero sold fentanyl-laced heroin in his apartment at 50 Central Street in Brattleboro. Gero also hosted drug traffickers at the residence in early 2020, providing them a place to cook, store, and sell their narcotics. In March 2020, law enforcement executed a search warrant at the 50 Central Street residence and found approximately 38 grams of cocaine base as well as a handgun and a magazine containing live ammunition.
Gero was initially arrested on August 20, 2020. On August 28, 2020, Gero was released on conditions including a requirement he attend residential treatment for substance misuse, with additional outpatient counseling as recommended by the United States Probation Office to follow. On January 22, 2021, Gero pleaded guilty to distribution of fentanyl, and remained on release conditions until his sentencing.
Acting United States Attorney Jonathan A. Ophardt commended the efforts of the Federal Bureau of Investigation, the Vermont State Police Southern Vermont Drug Task Force, and the Brattleboro Police Department in this matter. “People who assist drug traffickers by permitting them to distribute dangerous narcotics out of their homes play an important role in supporting the for-profit drug trade. The United States Attorney’s Office will continue to target for prosecution armed drug trafficking organizations and the people who assist them, while recognizing that successful treatment remains the best tool for reducing both demand for illicit substances and the number of Vermonters willing to support the drug trade.”
Assistant United States Attorney Nicole Cate handled the prosecution. Gero was represented by Paul Volk, Esq.
Erie Man, 21, Sentenced to 5 Years for Distributing MethRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to five years in jail on his conviction of violating federal drug laws, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge Susan Paradise Baxter imposed the sentence on Rodney Domanick Evans, 21.
According to information presented to the court, on or about December 19, 2019, Evans distributed sixty-five grams of a mixture and substance containing a detectable amount of methamphetamine.
Assistant United States Attorney Paul S. Sellers prosecuted this case on behalf of the government.
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.
Acting United States Attorney Kaufman commended the Drug Enforcement Administration, Erie County Detective Bureau, Erie Police Department and the Millcreek Police Department for the investigation leading to the successful prosecution of Evans.
El Salvadoran National Charged with Illegal Re-Entry of a Deported Alien Previously Convicted of a FelonyRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced today that HECTOR RODRIGUEZ-RODRIGUEZ, age 55, was charged in a one-count bill of information for reentry of a deported alien previously convicted of a felony, in violation of 8 U.S.C. § 1326(a)and (b)(2).
According to the bill of information, HECTOR RODRIGUEZ-RODRIGUEZ reentered the United States after he was previously deported on October 27, 1992. Furthermore, on or about May 29, 2019, the defendant was convicted of illegal possession of less than two grams of cocaine and aggravated battery in St. Tammany Parish, Louisiana.
If convicted, HECTOR RODRIGUEZ-RODRIGUEZ faces a maximum term of imprisonment of twenty years, a maximum fine of $250,000, a maximum term of supervised release of three years, and a mandatory $100 special assessment fee.
U. S. Attorney Evans reiterated that a Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U. S. Attorney Irene Gonzalez is in charge of the prosecution.
East Alton Woman Sentenced to 14 Months in Prison for Stealing Disabled Daughter’s Social Security FundsRead the Press Release
EAST ST. LOUIS, Ill. – An East Alton, Illinois, woman was sentenced to 14 months in federal prison for stealing her disabled daughter’s Social Security funds. The sentencing hearing was conducted this morning in Federal Court in East St. Louis, Illinois.
The Social Security Administration administers the Supplemental Security Income (“SSI”) program. SSI provides a minimum level of income to aged, blind, and disabled individuals who have limited resources. Disabled children are eligible to receive SSI benefits. For children, SSI benefits are paid to a representative payee, who is responsible for handling the funds and reporting to the Social Security Administration. Federal law requires that all SSI funds must be used for the benefit of the disabled child.
According to court documents, Melissa D. Wasylak, 49, applied for her disabled daughter to receive SSI benefits. Wasylak was appointed as her daughter’s representative payee. In
2008, Wasylak’s daughter stopped living with her and went to live with Wasylak’s ex-husband.
Despite this fact, Wasylak continued to receive her daughter’s SSI funds. As part of her guilty plea, Wasylak admitted that she did not use those funds for her daughter’s expenses, but instead used the SSI monies to pay her own personal expenses. This continued until the situation was reported to the Social Security Administration in May of 2019.In addition to the 14 month prison term, the court also ordered Wasylak to serve a two year period of supervised release following her release from prison. The court further ordered Wasylak to pay
$58,345 in restitution to the Social Security Administration.The case was investigated by the St. Louis Office of the Social Security Administration – Office of the Inspector General.
Assistant United States Attorney Scott Verseman prosecuted the case.Dutch National Faces Charges for Participation in Terror Financing RingRead the Press Release
After more than seven years of extradition proceedings in the Netherlands, a Dutch woman brought by the FBI to the United States yesterday made her initial appearance today in the U.S. District Court for the Eastern District of Virginia to face charges stemming from her alleged participation in a terrorist financing ring in support of the Somalia-based terrorist group al-Shabaab.
According to allegations in an indictment, Farhia Hassan, 38, was involved with a group of women from more than a dozen countries around the world who ran a fundraising ring to provide financial support to al-Shabaab from in or about February 2011 through in or about July 2014. Through conduits in Nairobi, Kenya, and Hargeisa, Somalia, the group of women allegedly funneled cash payments via money remitters directly to members of the terrorist group. According to members of the conspiracy, the money was used to fund safehouses and to purchase trucks and weaponry in support of al-Shabaab. The women allegedly coordinated the payments using online chatrooms.
Hassan, in particular, was allegedly involved in fundraising in the Netherlands under false pretenses by representing to donors that money was being collected to fund charitable ventures, such as schools for orphans, when it was in fact being funneled to terrorists. Two U.S.-based members of the fundraising ring, Muna Osman Jama, 41, of Reston, and Hinda Osman Dhirane, 51, of Kent, Washington, were convicted in 2016 for their participation and were sentenced to 12- and 11-years imprisonment, respectively.
Hassan is charged with conspiracy to provide material support to a designated foreign terrorist organization. If convicted, she faces a maximum penalty of 15 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Mark J. Lesko for the Justice Department’s National Security Division, U.S. Attorney Jessica D. Aber for the Eastern District of Virginia and Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office made the announcement.
Assistant U.S. Attorneys James P. Gillis and Danya E. Atiyeh for the Eastern District of Virginia and Trial Attorney Kathleen Campbell of the National Security Division’s Counterterrorism Section are prosecuting the case.
The Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest and extradition from the Netherlands.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Dutch National Faces Charges for Participation in Terror Financing RingRead the Press Release
ALEXANDRIA, Va. – After more than seven years of extradition proceedings in the Netherlands, a Dutch woman brought by the FBI to the United States yesterday made her initial appearance today in the U.S. District Court for the Eastern District of Virginia to face charges stemming from her alleged participation in a terrorist financing ring in support of the Somalia-based terrorist group al-Shabaab.
According to allegations in an indictment, Farhia Hassan, 38, was involved with a group of women from more than a dozen countries around the world who ran a fundraising ring to provide financial support to al-Shabaab from in or about February 2011 through in or about July 2014. Through conduits in Nairobi, Kenya, and Hargeisa, Somalia, the group of women allegedly funneled cash payments via money remitters directly to members of the terrorist group. According to members of the conspiracy, the money was used to fund safehouses and to purchase trucks and weaponry in support of al-Shabaab. The women allegedly coordinated the payments using online chatrooms.
Hassan, in particular, was allegedly involved in fundraising in the Netherlands under false pretenses by representing to donors that money was being collected to fund charitable ventures, such as schools for orphans, when it was in fact being funneled to terrorists. Two U.S.-based members of the fundraising ring, Muna Osman Jama, 41, of Reston, and Hinda Osman Dhirane, 51, of Kent, Washington, were convicted in 2016 for their participation and were sentenced to 12 and 11 years imprisonment, respectively.
Hassan is charged with conspiracy to provide material support to a designated foreign terrorist organization. If convicted, she faces a maximum penalty of 15 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Mark J. Lesko, Acting Assistant Attorney General of the Justice Department’s National Security Division; and Steven M. D’Antuono, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement.
Assistant U.S. Attorneys James P. Gillis and Danya E. Atiyeh are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-230.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Convicted Sex Offender Sentenced to Life in Prison for Abusing Teenage GirlRead the Press Release
A Lubbock sex offender has been sentenced to life in federal prison for abusing a 15-year-old girl, announced Acting U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Jason Lee Guthrey, who was already a registered sex offender at the time of the crime, pleaded guilty in June to enticement of a minor. He was sentenced Thursday by U.S. District Judge James Wesley Hendrix.
“Today’s life sentence is a commitment from law enforcement that we will not allow the defendant to intimidate, coerce or assault a child again,” said Dallas FBI Special Agent in Charge Matthew J. DeSarno. “I am grateful for the work of the investigative team on this specific case, and their continued pursuit for justice as they work to protect the most vulnerable members of our community.”
According to plea papers, a truck driver discovered the young girl sitting on the side of the road in freezing weather on Nov. 30, 2020. Jane Doe later told law enforcement she’d left her home to get away from Mr. Guthrey, who was dating one of her relatives and who had sexually assaulted her in her sleep on several occasions.
In text messages, Mr. Guthrey, then 44, pleaded with the girl not to reveal the abuse:
“l'm am [sic] truly sorry for that I don't want you to be mad at me,” he wrote in a series of texts in early November. “Please keep this between you and me please.”
“I’m sorry about the things that I have wanted to do with you but I will never do anything that will hurt you. I am sure that I can be a great guy,” he continued a few weeks later. "And please keep this between us.”
At his sentencing hearing, prosecutors argued that Mr. Guthrey was a dangerous child predator who refused to take responsibility for his actions. In fact, as an attempt to excuse his behavior at the hearing, Mr. Guthrey claimed he was “still friends” with a prior minor victim of his, and further claimed his advances on the current victim were simply the result of drug use.
The Federal Bureau of Investigation’s Dallas Field Office, Lubbock Resident Agency and the Lubbock Police Department conducted the investigation. Assistant U.S. Attorney Callie Woolam prosecuted the case.
Convicted Money Launderer Sentenced for Second Business Email Compromise SchemeRead the Press Release
BOSTON – A Hingham man who was previously convicted of money laundering was sentenced on Wednesday, Oct. 27, 2021 in connection with a business email compromise (BEC) scheme.
Yannick A. Minang, a/k/a “Africa,” 27, was sentenced by U.S. District Court Judge Patti B. Sarris to 52 months in prison. In September 2020, Minang pleaded guilty five counts of wire fraud, one count of unlawful monetary transactions and one count of money laundering conspiracy.
Minang conspired with co-conspirator Bintu Toure and others to open numerous bank accounts in Massachusetts in the name of sham companies, as part of an apparent business email compromise (BEC) scheme. A BEC scheme is a sophisticated scam often targeting businesses involved in wire transfer payments. The fraud is carried out by compromising and/or “spoofing” legitimate business email accounts through social engineering or computer intrusion techniques to cause employees of the victim company (or other individuals involved in legitimate business transactions) to transfer funds to accounts controlled by the scammers.
Through the use of fraudulent invoices and spoofed email accounts, Minang conspired to trick the victims of the scheme into wiring hundreds of thousands of dollars to bank accounts under his control. Minang and his co-conspirators then transferred funds from the accounts to others located overseas.
On April 16, 2021, Toure was sentenced by U.S. Senior District Court Judge Mark L. Wolf to one year and one day in prison, three years of supervised release, restitution and forfeiture after previously pleading guilty to a separate wire fraud and money laundering conspiracy.
In September 2019, Minang was sentenced to 46 months in prison after pleading guilty to his role in a separate BEC scheme.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Assistant U.S. Attorney William B. Brady of Mendell’s Criminal Division prosecuted the case.