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Thursday 16 September 2021
Duck Hunter Sentenced for Violating Hunting LawsRead the Press Release
LAFAYETTE, La. - Acting United States Attorney Alexander C. Van Hook announced that Kevin M. Berken, 60, of Lake Arthur, Louisiana, has been sentenced by Magistrate Judge Kathleen Kay for violating the Migratory Bird Treaty Act. Berken was sentenced to two years of probation, ordered to pay a fine of $5,000, and all of his hunting, fishing and trapping privileges have been revoked for the two-year term of probation. Berken was also ordered to complete 100 hours of community service.
Berken was charged in a bill of information with one count of violating the Migratory Bird Treaty Act by taking more than the daily bag limit of ducks in any one calendar day. According to evidence presented in court, Berken was an experienced waterfowl hunter, frequently hunted in Jefferson Parish, Louisiana, and participated in two hunts for ducks on December 27, 2018. During the first hunt on December 27, 2018, Berken and other hunters jointly shot, killed, and possessed 10 ducks. In a second hunt later that day, Berken and another hunter shot, killed, and possessed 12 more ducks. Agents with the Louisiana Department of Wildlife and Fisheries Service and the U.S. Fish and Wildlife Service encountered Berken and three other hunters that day and found them to be in possession of 29 various species of ducks. This was a violation of the Migratory Bird Treaty Act in that they exceeded the daily bag limit of six ducks per hunter in one calendar day. Berken pleaded guilty to the charge and admitted to taking more than the daily bag limit of ducks.
The U.S. Fish and Wildlife Service and Louisiana Department of Fish and Wildlife Service conducted the investigation. Assistant U.S. Attorney Danny Siefker prosecuted the case.
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Drug Dealer Sentenced to 27 Months in PrisonRead the Press Release
PITTSBURGH, PA – Bobby Askew was sentenced to 27 months in prison for distributing fentanyl, heroin, and cocaine, including within 1,000 feet of a school in Butler, Pennsylvania, Acting United States Attorney Stephen R. Kaufman announced today.
Askew, age 39, formerlyof Philadelphia, Pennsylvania, was sentenced by United States District Judge Robert J. Colville. Judge Colville ordered that Askew serve six years of supervised release following his prison term.
In 2009, Askew was convicted of crack cocaine trafficking in Philadelphia. He was sentenced to 5 to 10 years in state prison. After being paroled from state prison, he relocated to Butler in Butler County and trafficked fentanyl, heroin, and cocaine as part of a Butler-based drug trafficking crew. Askew dealt these drugs on a regular basis between 2017 and 2020, including within 1,000 feet of multiple schools in Butler.
Assistant United States Attorneys Yvonne M. Saadi and Craig W. Haller prosecuted this case on behalf of the United States.
The Pennsylvania State Police, the Federal Bureau of Investigation, and the Butler County District Attorney’s Drug Task Force led the investigation leading to the conviction and sentence in this case.
Dominican National Sentenced for Social Security Misuse and Making False StatementRead the Press Release
BOSTON – A Dominican national was sentenced today in federal court in Boston for false representation of a Social Security number and making a false statement relating to health care matters.
Ronald Lara Pena, 35, a Dominican national previously residing in Lawrence, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to 13 months in prison and three years of supervised release. Lara Pena will be subject to deportation proceedings upon completion of his sentence. On July 21, 2021, Lara Pena pleaded guilty to one count of false representation of a Social Security number and one count of making a false statement relating to health care matters.
Lara Pena used the identity of a Puerto Rican citizen to obtain Massachusetts driver’s licenses and identification cards and used the victim’s identity to apply for and fraudulently receive over $12,600 in federally funded MassHealth benefits between September 2015 and September 2020.
Acting United States Attorney Nathaniel R. Mendell; Jack Jermaine, Acting Special Agent in Charge of the Social Security Administration, Office of Inspector General, Boston Field Office; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; Phillip M. Coyne, Special Agent in Charge of U.S. Department of Health & Human Services, Office of the Inspector General, Office of Investigations, Boston Regional Office; and Suzanne M. Bump, State Auditor of the Commonwealth of Massachusetts made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Mendell’s Major Crimes Unit prosecuted the case.
Dominican National Pleads Guilty to Fentanyl TraffickingRead the Press Release
BOSTON – A Dominican national pleaded guilty today to drug trafficking activities involving fentanyl.
Angel Aybar Carmona, 26, pleaded guilty to one count of distribution of and possession with intent to distribute 40 grams or more of fentanyl. U.S. District Court Judge Denise J. Casper scheduled sentencing for Jan. 12, 2022. Carmona was indicted on Jan. 5, 2021.
In December 2020, Carmona provided a sample of fentanyl along with his phone number to an undercover law enforcement officer. In subsequent text message conversations with Carmona, the undercover officer arranged to purchase 120 grams of fentanyl inside a store in Lawrence. After completing the sale, Carmona was arrested.
The charge of distribution and possession with intent to distribute 40 grams or more of fentanyl provides for a sentence of at least five years and up to 40 years in prison, a least four years of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement. Valuable assistance was provided by the Lawrence Police Department. Assistant U.S. Attorney Stephen Hassink of Mendell’s Narcotics and Money Laundering Unit is prosecuting the case.
District Court Orders Puerto Rico Companies to Cease Importation of Dangerous Children’s ProductsRead the Press Release
A federal court permanently enjoined Puerto Rican companies Pharmacare Inc., China District PR LLC, as well as their owner, Juan Reynoso, from importing children’s toys and other consumer products that violate the Consumer Product Safety Act (CPSA) and the Federal Hazardous Substances Act (FHSA) among other laws.
In a complaint filed on Sept. 15, the United States alleged that Pharmacare, China District, and Reynoso violated the CPSA, FHSA and other related statutes and regulations by importing and selling children’s products that contained illegal levels of lead and phthalates.
According to the complaint, which was filed in the U.S. District Court for the District of Puerto Rico, since 2017 the U.S. Consumer Product Safety Commission (CPSC) collected a total of 116 illegal children’s and other consumer products from the defendants’ import shipments and retail locations in Puerto Rico. Those samples, including 32 from Pharmacare and 84 from China District, contained a total of 296 violations of federal law, including children’s products containing illegal levels of lead or phthalates, and products such as bicycle helmets, rattles and pacifiers that failed to meet various safety or labeling requirements. Based on its findings, the CPSC issued 10 notices of violation to Pharmacare and 15 notices to China District, notifying them that their products violated federal law.
“Products sold to consumers – especially those intended for children – must be safe,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The department is committed to ensuring that companies importing and selling toys and other consumer products comply with CPSC regulations and federal law.”
“I’m delighted to see the settlement of this important case that will protect children from being exposed to dangerous chemicals in their toys,” said Acting Chairman Robert S. Adler of the CPSC. “I thank CPSC and the Justice Department staff for their tireless efforts on behalf of vulnerable children.”
“There is no greater responsibility of the Department of Justice than to protect our children,” said U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico. “Companies cannot be allowed to import hazardous toys and children’s products into Puerto Rico. We take this responsibility very seriously and will take the necessary action to keep unsafe products out of the hands of our children. I appreciate and value the support from and collaboration with the Department of Justice and the U.S. Consumer Product Safety Commission.”
The consent decree, which resolves the case against all defendants, generally requires that the defendants stop importing children’s toys and certain other consumer products until the defendants implement numerous remedial measures to bring their operations into compliance with the law. These requirements include, among other things, hiring an independent product safety coordinator, conducting an audit of all imported merchandise in inventory for compliance with the CPSA, FHSA, and related laws and implementing a written product safety program. The defendants may resume importing children’s and other consumer products only after implementing these measures and demonstrating that their operations fully comply with federal law.
Trial Attorney Lauren M. Elfner of the Justice Department’s Consumer Protection Branch is handling the case with the assistance of Assistant U.S. Attorney David Martorani for the District of Puerto Rico and Renee McCune of the CPSC’s Office of the General Counsel.
Dickinson County Woman Pleads Guilty to Meth ConspiracyRead the Press Release
A Dickinson County woman who conspired to distribute meth pled guilty September 14, 2021, in federal court in Sioux City. Meghan Renken, 29, from Spirit Lake, Iowa, was convicted of conspiring to distribute methamphetamine.
At the plea hearing, Renken admitted her involvement in a conspiracy that distributed more than 1500 grams of pure methamphetamine from July 2018 and continuing to on or about March 2020 in the Dickinson County, Iowa area. On March 17, 2020, law enforcement executed a search warrant at a co-conspirators residence and seized 20 pounds of methamphetamine from the residence. During the course of the execution of the search warrant, law enforcement stopped Renken and another co-conspirator leaving the residence in a vehicle. Upon a search of the vehicle, law enforcement seized 3 pounds of pure meth that Renken and her co-conspirator admitted they had plans to distribute to other persons.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Renken was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Renken faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and 5 years up to life of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; and the Woodbury County Attorney’s Office, as well as the Iowa State Patrol.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4050. Follow us on Twitter @USAO_NDIA.
Dark Web Child Pornography Facilitator Sentenced to 27 Years in Prison for Conspiracy to Advertise Child PornographyRead the Press Release
A dual national of the United States and Ireland was sentenced yesterday to 324 months, or 27 years, in federal prison followed by a lifetime of supervised release for conspiracy to advertise child pornography.
Eric Eoin Marques, 36, of Dublin, Ireland, pleaded guilty on Feb. 6, 2020 to conspiracy to advertise child pornography. According to court documents, between July 24, 2008 and July 29, 2013, Marques operated a free anonymous hosting service located on the dark web, an area of the internet that is only accessible by means of special software, allowing users and website operators to remain anonymous or untraceable. The hosting service hosted websites that allowed users to view and share images documenting the sexual abuse of children, including the abuse of prepubescent minors and violent sexual abuse. The investigation revealed that the hosting service contained over 200 child exploitation websites that housed millions of images of child exploitation material. Over 1.97 million of these images and/or videos were not previously known by law enforcement. Many of these images involved sadistic abuse of infants and toddlers.
“The defendant’s web service anonymously hosted hundreds of insidious criminal communities dedicated to the sexual exploitation of children, which openly and notoriously spread millions of images of child sexual abuse across the globe,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “This complex, global investigation, lengthy and successful extradition, and substantial jail sentence are proof of the Department’s steadfast and unwavering commitment to identifying and bringing to justice criminals who hide behind anonymous networks to abuse and exploit the world’s children.”
“Eric Marques was one of the largest facilitators of child pornography in the world,” said Acting U.S. Attorney Jonathan F. Lenzner for the District of Maryland. “This is an egregious case where one individual hosted and helped others to share millions of horrific images and videos of the abuse of children, including more than a million not previously known to law enforcement, and attempted to keep the abuse hidden on the dark web. We are grateful to our law enforcement partners here and abroad for helping us to bring Eric Marques to justice. We will continue to do everything we can to find and prosecute those who use the anonymity of the internet to perpetuate the cruel and heartless business of the sexual abuse of children.”
“Today’s sentencing of Eric Marques sends a clear message to perpetrators of this egregious crime that no matter where you are in the world, law enforcement will hold you accountable and bring you to justice,” said Assistant Director Calvin Shivers of the FBI’s Criminal Investigative Division. “The FBI combats crimes against children and stands up for vulnerable children across the globe.”
“Europol is pleased to have played its part in what ranks as one of the most important investigations ever conducted into child sexual abuse,” said Head of the European Cybercrime Centre Edvardas Šileris of Europol. “I applaud the great work of the FBI and our many other law enforcement partners in Europe and beyond for their cooperation on a global scale to tackle this most heinous crime and bring this dangerous individual before court. Ensuring the safety of children by identifying those who have been victimized and educating children to avoid these harms remains a top priority for Europol.”
As described in public documents, this case was a part of a path-marking global investigation that targeted thousands of users of more than 200 websites operating on the Tor network and dedicated to the trade of child pornography. The Criminal Division’s Child Exploitation and Obscenity Section (CEOS), the FBI and Europol conceived of and executed a globally coordinated criminal investigation of then-unparalleled scope, which pooled resources of over a dozen countries that deployed over 70 law enforcement agents to Europol, which served as the hub for operational support, facilities, and information sharing. Through this investigation, more than 200 child sexual exploitation websites were taken offline (along with hundreds of other sites sponsoring or facilitating criminal activity); the activities of tens of thousands of online child pornographers were disrupted; over four million images and videos of child sexual abuse were seized (including more than 100 previously unknown series of child abuse images and new images from more than 50 existing series); and dozens of offenders were identified and prosecuted throughout the world.
The FBI’s Violent Crime Section, Child Exploitation Operational Unit and the Violent Crimes Against Children International Task Force conducted the investigation with significant assistance from the Legal Attaché London Office, An Garda Síochána, and Europol. The Department of Justice’s Office of International Affairs provided significant assistance in bringing Marques to the United States and procuring foreign evidence during the investigation.
Deputy Chief Keith A. Becker and Trial Attorney Ralph Paradiso of CEOS and Assistant U.S. Attorney Thomas M. Sullivan of the District of Maryland prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Dark Web Child Pornography Facilitator Sentenced to 27 Years in Prison for Conspiracy to Advertise Child PornographyRead the Press Release
A dual national of the United States and Ireland was sentenced today to 324 months, or 27 years, in federal prison followed by a lifetime of supervised release for conspiracy to advertise child pornography.
Eric Eoin Marques, 36, of Dublin, Ireland, pleaded guilty on Feb. 6, 2020 to conspiracy to advertise child pornography. According to court documents, between July 24, 2008 and July 29, 2013, Marques operated a free anonymous hosting service located on the dark web, an area of the internet that is only accessible by means of special software, allowing users and website operators to remain anonymous or untraceable. The hosting service hosted websites that allowed users to view and share images documenting the sexual abuse of children, including the abuse of prepubescent minors and violent sexual abuse. The investigation revealed that the hosting service contained over 200 child exploitation websites that housed millions of images of child exploitation material. Over 1.97 million of these images and/or videos were not previously known by law enforcement. Many of these images involved sadistic abuse of infants and toddlers.
“The defendant’s web service anonymously hosted hundreds of insidious criminal communities dedicated to the sexual exploitation of children, which openly and notoriously spread millions of images of child sexual abuse across the globe,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “This complex, global investigation, lengthy and successful extradition, and substantial jail sentence are proof of the Department’s steadfast and unwavering commitment to identifying and bringing to justice criminals who hide behind anonymous networks to abuse and exploit the world’s children.”
“Eric Marques was one of the largest facilitators of child pornography in the world,” said Acting U.S. Attorney Jonathan F. Lenzner for the District of Maryland. “This is an egregious case where one individual hosted and helped others to share millions of horrific images and videos of the abuse of children, including more than a million not previously known to law enforcement, and attempted to keep the abuse hidden on the dark web. We are grateful to our law enforcement partners here and abroad for helping us to bring Eric Marques to justice. We will continue to do everything we can to find and prosecute those who use the anonymity of the internet to perpetuate the cruel and heartless business of the sexual abuse of children.”
“Today’s sentencing of Eric Marques sends a clear message to perpetrators of this egregious crime that no matter where you are in the world, law enforcement will hold you accountable and bring you to justice,” said Assistant Director Calvin Shivers of the FBI’s Criminal Investigative Division. “The FBI combats crimes against children and stands up for vulnerable children across the globe.”
“Europol is pleased to have played its part in what ranks as one of the most important investigations ever conducted into child sexual abuse,” said Head of the European Cybercrime Centre Edvardas Šileris of Europol. “I applaud the great work of the FBI and our many other law enforcement partners in Europe and beyond for their cooperation on a global scale to tackle this most heinous crime and bring this dangerous individual before court. Ensuring the safety of children by identifying those who have been victimized and educating children to avoid these harms remains a top priority for Europol.”
As described in public documents, this case was a part of a path-marking global investigation that targeted thousands of users of more than 200 websites operating on the Tor network and dedicated to the trade of child pornography. The Criminal Division’s Child Exploitation and Obscenity Section (CEOS), the FBI, and Europol conceived of and executed a globally coordinated criminal investigation of then-unparalleled scope, which pooled resources of over a dozen countries that deployed over 70 law enforcement agents to Europol, which served as the hub for operational support, facilities, and information sharing. Through this investigation, more than 200 child sexual exploitation websites were taken offline (along with hundreds of other sites sponsoring or facilitating criminal activity); the activities of tens of thousands of online child pornographers were disrupted; over four million images and videos of child sexual abuse were seized (including more than 100 previously unknown series of child abuse images and new images from more than 50 existing series); and dozens of offenders were identified and prosecuted throughout the world.
The FBI’s Violent Crime Section, Child Exploitation Operational Unit and the Violent Crimes Against Children International Task Force conducted the investigation with significant assistance from the Legal Attaché London Office, An Garda Síochána, and Europol. The Department of Justice’s Office of International Affairs provided significant assistance in bringing Marques to the United States and procuring foreign evidence during the investigation.
Deputy Chief Keith A. Becker and Trial Attorney Ralph Paradiso of CEOS and Assistant U.S. Attorney Thomas M. Sullivan of the District of Maryland prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Connecticut Man Sentenced for Firearm TraffickingRead the Press Release
BOSTON – A Connecticut man was sentenced today in federal court in Boston in connection with selling two “ghost guns.”
Brian McCarthy, 33, of Bridgeport, Conn., was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 30 months in prison and two years of supervised release. On May 14, 2021, McCarthy pleaded guilty to one count of dealing firearms without a federal license.
Between June 17 and July 31, 2020, McCarthy travelled to Massachusetts and sold an undercover officer two Glock-style Privately Made Firearms (PMF) he had personally fabricated. PMFs are firearms that are not made by firearm manufacturers; instead, firearm manufactures sell individual buyers firearm parts, and the buyer uses various firearm drilling tools to construct and assemble the parts into a functional firearm. PMFs are also known as “ghost guns” because they are not serialized. McCarthy was taken into custody following the sale.
A subsequent search of McCarthy’s apartment resulted in the seizure of two additional Glock-style PMFs, one AR15/M4-type rifle upper receiver, accessories for AR15/M4 rifles, multiple semi-automatic magazines, approximately 250 rounds of ammunition and various firearm construction and assembly tools.
Acting United States Attorney Nathaniel R. Mendell; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Plymouth County District Attorney Timothy J. Cruz; and Bristol County District Attorney Thomas M. Quinn III made the announcement today. Assistant U.S. Attorney John Dawley of Mendell’s Organized Crime and Gang Unit prosecuted the case.
This prosecution is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Collin County Wedding Planner Sentenced for COVID Relief FraudRead the Press Release
SHERMAN, Texas – A Murphy man has been sentenced to federal prison for perpetrating a scheme to fraudulently obtain more than $3.3 million in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act in the Eastern District of Texas, announced Nicholas Ganjei, Acting U.S. Attorney of the Eastern District of Texas and Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division today.
Fahad Shah, 45, pleaded guilty on May 19, 2021, to wire fraud and was sentenced to 31 months in federal prison today by U.S. District Judge Amos L. Mazzant, III.
“Stealing limited COVID relief funds is the very definition of stealing from the less fortunate,” said Acting U.S. Attorney Nicholas J. Ganjei. “Every dollar that was stolen and extravagantly spent in this case was one less dollar that went to a struggling business scrambling to meet its payroll obligations to employees. The Department of Justice and its partners will do everything in their power to investigate and prosecute those that would deign to steal these limited funds and stall national recovery efforts.”
According to court documents, Shah sought approximately $3.3 million in PPP funds by claiming that his family’s business, WBF Weddings by Farah Inc. (WBF), employed more than 100 individuals and paid millions of dollars in compensation to those employees. In actuality, WBF had no employees aside from Shah and his wife. Based on Shah’s false representations and forged documents, an SBA-approved lender provided over $1.5 million in PPP loan funds to Shah. Shah used the funds for personal gain contrary to program’s terms. He paid off his home mortgage and purchased two Teslas and a Mercedes, among other items.
Acting U.S. Attorney Nicholas Ganjei for the Eastern District of Texas; Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Special Agent in Charge Amaleka McCall-Brathwaite of the U.S. Small Business Administration – Office of Inspector General (SBA-OIG); Special Agent in Charge Catherine Huber of the Federal Housing Finance Agency – Office of Inspector General (FHFA-OIG); Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation – Office of Inspector General (FDIC-OIG); Special Agent in Charge Christopher J. Altemus, Jr., of the IRS Criminal Investigation (IRS-CI) Dallas Field Office; and Inspector General J. Russell George of the Treasury Inspector General for Tax Administration (TIGTA) made the announcement.
The SBA-OIG, FHFA-OIG, FDIC-OIG, IRS-CI, and TIGTA investigated the case.
This case was prosecuted by Assistant U.S. Attorneys Frank Coan and Bob Wells of the Eastern District of Texas and Trial Attorneys Louis Manzo and Della Sentilles of the Criminal Division’s Fraud Section.
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Cecil County Felon Sentenced to More Than Four Years in Federal Prison for Illegal Possession of Firearm and Narcotics ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Kenneth Clark, Jr., a/k/a “Man” and “Play,” age 30, of Port Deposit, Maryland, yesterday to 52 months in prison, followed by three years of supervised release, for a narcotics conspiracy and being a felon in possession of a firearm.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police; and Cecil County Sheriff Scott Adams.
According to his guilty plea, on February 20, 2020, a Cecil County Sheriff’s deputy saw a vehicle speeding and failing to stop at a stop sign. The deputy initiated a traffic stop, activated his mobile video recorder, capturing video through the windshield of his patrol car as he approached vehicle.
After the vehicle came to a stop, the deputy observed the vehicle shake as the driver and passenger switched seats. The deputy asked both occupants to produce identification documents and vehicle registration. The person in the driver’s seat produced identification while Clark, who was in the passenger seat, informed the officer that he did not have a license. Clark then grabbed the vehicle’s gear shifter and commanded the driver to go. However, the car did not move and the deputy was able to turn off the vehicle. Clark opened the passenger door and ran away. The deputy’s in-car video camera captured Clark holding a black semi-automatic handgun as he exited the passenger side. The driver also ran away, but he and Clark were apprehended by law enforcement.
After his arrest, Clark was searched and officers recovered $1,802 in cash on Clark’s person. The deputy returned to the area where he saw Clark throw the firearm and recovered a .22 LR handgun loaded with 11 hollow-point .22 LR live rounds. The slide of the handgun was pulled back, exposing a chambered .22 LR bullet, and the weapon was jammed. Clark’s vehicle was also searched and the deputy recovered approximately six grams of marijuana inside the passenger’s side door and two cell phones. Clark requested evaluation by Emergency Medical Services. As Clark got out of the patrol car, the deputy recovered a small plastic baggie containing approximately one gram of crack cocaine on the floorboard next to where Clark was seated.
Law enforcement later learned that the firearm in Clark’s possession was reported stolen a few days before it was recovered from Clark. Clark knew that he was prohibited from possessing firearms due to previous felony convictions, including a 2016 conviction for second-degree assault and a 2017 conviction for having an illegal handgun on his person—both in Cecil County Circuit Court. At the time of his arrest, Clark was on supervised probation in Cecil County.
According to Clark’s plea agreement, between the first and second week of February 2020, a concerned citizen contacted Maryland State Police to report possible cocaine transactions in the Port Deposit area of Cecil County by a male nicknamed “Man”. During the investigation of a non-fatal overdose that occurred on January 29, 2020, Maryland State Police (MSP) identified Clark as the likely source of the narcotics supply leading to the overdose. Numerous messages downloaded from the overdose victim’s cellular phone resolved to the phone number assigned to the phone in Clark’s possession at the time of his most recent arrest.
Additionally, MSP found several photos of Clark displaying, brandishing, and discharging firearms on his public social media accounts. For example, on February 18, 2020, Clark posted two public photographs holding a semi-automatic handgun with an extended magazine, which matches the description of the firearm seized after Clark’s arrest during the traffic stop. A subsequent review of Clark’s social media messages revealed conversations regarding the distribution of controlled substances, including cocaine and methamphetamine.
As detailed in his plea agreement, while incarcerated at the Cecil County Detention Center, which records outgoing calls from detainees, Clark made several phone calls to two associates asking them to retrieve several items hidden at his father’s residence. Clark spoke in code terms about what investigators believe were drugs and firearms, while providing specific instructions on where to find the items. On February 28, 2020 Maryland State Police searched the residence of one of the associates and recovered a 9mm semi-automatic handgun, that matched the description of the firearm depicted in Clark’s social media pictures. The associate advised law enforcement that he obtained the firearm from Clark’s father’s residence at Clark’s direction.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Acting United States Attorney Jonathan F. Lenzner commended the Maryland State Police Department and the Cecil County Sheriff’s Office their work in the investigation and thanked Homeland Security Investigations for its assistance. Mr. Lenzner thanked Assistant U.S. Attorney Sandra Wilkinson 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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Butte County Woman Pleads Guilty to FEMA Fraud in Connection with the Paradise Camp FireRead the Press Release
SACRAMENTO, Calif. —Kristen Canapary, 53, of Butte County, pleaded guilty today to making false statements in an application for FEMA benefits in connection with the 2018 Paradise Camp Fire, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, FEMA provided disaster benefits to certain qualified individuals whose primary residence was damaged or destroyed in the Camp Fire. Canapary filed a claim for FEMA disaster benefits falsely listing a rental home she formerly lived in as her primary residence at the time of the fire in November 2018. According to the property owner, Canapary vacated the home earlier in the year, and the home had remained vacant while undergoing renovations. As a result of Canapary’s claim that her primary residence was damaged by the Camp Fire, she was given money for rental assistance and the replacement of essential personal property purportedly destroyed with her home. She was also provided with approximately 13 months of temporary FEMA housing.
This case is the product of an investigation by the Department of Homeland Security Office of the Inspector General. Assistant U.S. Attorney Shelley D. Weger is prosecuting the case.
Canapary is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on Dec. 16, 2021. Canapary faces a maximum statutory penalty of 30 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Members of the public who suspect fraud involving disaster relief efforts, including California wildfires or COVID-19 relief efforts, or who believe they have been a victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. Alternatively, information can be submitted via email to [email protected].
Butler County Man Indicted on Drug and Gun Law ViolationsRead the Press Release
PITTSBURGH, PA - A resident of Boyers, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotic and firearm laws, Acting United States Attorney Stephen R. Kaufman announced today.
The two-count Indictment, returned on September 14, and unsealed today, named Daniel Dellich, Jr., age 46, of 522 Harrisville Road, Boyers, Pennsylvania, as the sole defendant.
According to the Indictment, on or about August 26, 2021, Dellich possessed with the intent to distribute a mixture and substance containing a detectable amount of methamphetamine. The Indictment also alleges that Dellich, a convicted felon, possessed both a firearm and ammunition. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm or ammunition.
As to Count One, the law provides for a term of imprisonment of not more than twenty (20) years, a fine not to exceed $1,000,000 or both. As to Count Two, the law provides for a term of imprisonment of not more than ten years, a fine of not more than $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Brooklyn Gang Member Indicted for Multiple Shootings and Firearms OffensesRead the Press Release
A nine-count superseding indictment was filed today in federal court in Brooklyn charging Darrius Sutton, also known as “Blizz Meecho,” with violent crimes in-aid-of racketeering — including attempted murder and related firearms offenses. Sutton is already in federal custody following his arrest in July 2020 on charges of being a felon in possession of ammunition. He will be arraigned on the superseding indictment at a later date.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the superseding indictment.
“As alleged in the superseding indictment, the defendant terrorized the East New York neighborhood of Brooklyn by engaging in armed warfare with rival gangs, and innocent bystanders were caught in the crossfire,” stated Acting U.S. Attorney Kasulis. “This Office is working tirelessly with our law enforcement partners to take violent gang members off the street and put an end to senseless violence plaguing communities in the district.”
“Members of criminal gangs often don’t fear the consequences of their actions, but Mr. Sutton now faces a long stay in federal prison for his alleged crimes. Our FBI Metro Safe Streets Task Force and law enforcement partners haven’t backed off our pursuit of these groups and stopping the chaos gangs create,” stated FBI Assistant Director-in-Charge Driscoll.
“This case highlights the NYPD’s and our law enforcement partners relentless pursuit of those few individuals who drive the worst kinds of violence and disorder in the city. I want to thank our colleagues at the FBI and the United States Attorney’s Office for the Eastern District of New York for their commitment in bringing this individual to justice,” stated NYPD Commissioner Shea.
As set forth in court filings, Sutton is a member of an East New York-based gang called “Bamalife,” which has ongoing and violent rivalries with other gangs in East New York and elsewhere in Brooklyn. The charges in the superseding indictment relate to three non-fatal shootings in East New York in which four individuals were wounded.
The August 11, 2019 Shooting
As alleged, on August 11, 2019, Sutton attended a party at a rental hall located at 2529 Atlantic Avenue in East New York, Brooklyn. Surveillance video and other evidence established that shortly after Sutton left the party, he confronted a member of a rival gang who was also leaving the party. Sutton demanded to know if the victim was a member of the rival gang; Sutton began shooting and pursuing the intended victim as the victim attempted to flee. In addition to striking his intended victim in the forearms and groin, Sutton’s gunfire also wounded an innocent bystander in the leg.
The April 20, 2020 Shooting
As alleged, on April 20, 2020, Sutton ambushed a victim in the vicinity of 375 Sheffield Avenue in East New York, Brooklyn. Surveillance video shows Sutton approaching the victim undetected from behind, drawing his weapon, firing several shots and striking the male in the chest, thigh and wrist.
The May 16, 2020 Shooting
As alleged, on May 16, 2020, Sutton shot a member of a rival gang in the vicinity of 2211 Pitkin Avenue in East New York, Brooklyn. Surveillance video shows two cars pulling up to a location approximately four blocks from the scene of the shooting. Sutton exited one of the cars and walked to 2211 Pitkin Avenue, where members of a rival gang are known to congregate. Sutton entered the lobby of the building with a firearm in his hand. Moments later, Sutton shot the victim in the courtyard of the building.
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.
The charges in the indictments are allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Kevin Trowel and Nicholas Axelrod are in charge of the prosecution.
The Defendant:
DARRIUS SUTTON (also known as “Blizz Meecho”)
Age: 24
Brooklyn, New YorkE.D.N.Y. Docket No. 20-CR-323 (AMD)
Bristol, Tennessee Man Sentenced for Healthcare Kickback SchemeRead the Press Release
ABINGDON, Va. – A Bristol, Tennessee man was sentenced today to three months of home confinement for conspiring with another man to pay and receive kickbacks. In addition to home confinement, he will pay $56,000 in monetary penalties and will be permanently excluded from participating in federal healthcare programs.
According to court documents, John Paul Linke, 58, conspired to receive and pay kickbacks to encourage urine drug screen testing performed by a lab in Florida. Some of the testing referred to the lab was paid for by Medicare, Virginia Medicaid, and TennCare. Co-conspirator Michael Olshavasky, of Miami, Florida, will be sentenced on September 22, 2021.
“The defendant’s diversion of critical federal and state funds that were needed to target the opioid crisis for his own greed is unconscionable,” Acting U.S. Attorney Bubar stated today. “We will continue to prioritize prosecuting health care fraud cases, and that we will continue to work closely with the Virginia Attorney General’s Office, and our other critical federal and state partners, to bring such providers to justice.”
“Healthcare providers who use kickback schemes like this one are not only defrauding our healthcare system, but they’re also stealing from Virginia taxpayers just to line their own pockets,” said Attorney General Herring. “Virginians trust their healthcare providers to make the best decisions for their patients without monetary gain or outside influence. I want to thank my Medicaid Fraud Control Unit for their work on this case as well as our local, state, and federal partners for their ongoing collaboration on cases where individuals try and defraud our Medicaid and Medicare systems.”
“Those who seek to profit off the opioid crisis through illegal schemes make the problem worse,” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations Metro Washington Field Office. “We will continue to investigate and bring to justice those who, through their dishonesty, jeopardize the public health.”
Between November 30, 2015, and May 30, 2016, Linke was employed at an office-based opioid treatment program that used medication-assisted treatment for patients suffering from substance use disorder. In exchange for being paid $5,000 per month, Linke arranged for the clinic to send urine drug screen samples to the laboratory in Florida where Olshavasky worked. These payments were disguised as commissions paid to Linke as an “independent sales representative” for Olshavsky’s company, Encore Holdings LLC. Olshavasky paid Linke at least $16,000 through Encore Holdings to direct WRC’s drug screening business to the Florida lab, although Linke was not actually an independent sales representative for Encore, and he did not act as such.
The Virginia Medicaid Fraud Control Unit, the Drug Enforcement Administration, the Food and Drug Administration Office of Criminal Investigations, the Department of Health and Human Services—Office of Inspector General, the Tennessee Bureau of Investigation, and the Virginia State Police investigated the case.
Special Assistant United States Attorney Janine M. Myatt and Assistant United States Attorneys Randy Ramseyer and Whit Pierce prosecuted the case for the United States.
Bridgeport Gang Member Admits Multiple Gang-Related ShootingsRead the Press Release
UNDREA KIRKLAND, also known as “Spooda,” 25, of Bridgeport, pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to a racketeering offense related to his participation in multiple gang-related shootings.
Today’s announcement was made by Leonard C Boyle, Acting United States Attorney for the District of Connecticut; Joseph T. Corradino, State’s Attorney for the Fairfield Judicial District; Bridgeport Acting Police Chief Rebeca Garcia; James Ferguson, Special Agent in Charge, ATF Boston Field Division; David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, and Acting U.S. Marshal Lawrence Bobnick.
According to court documents and statements made in court, the FBI, ATF, DEA, U.S. Marshals Service and Bridgeport Police have been investigating multiple Bridgeport-based gangs whose members are involved in narcotics trafficking, murder and other acts of violence. Kirkand has been a member of the “Greene Homes Boyz” (“GHB/Hotz”), a gang based in the Charles F. Greene Homes Housing Complex in Bridgeport’s North End, whose members and associates distributed heroin, crack cocaine, marijuana and Percocet pills; committed numerous acts of violence against rival gang members and other individuals, and celebrated their criminal conduct on social media websites such as Facebook and YouTube. GHB/Hotz members and associates also committed acts of intimidation and made threats to deter potential witnesses to their crimes and to protect gang members and associates from detection and prosecution by law enforcement authorities. Since approximately 2017, GHB/Hotz members have been aligned with members of the “Original North End” (“O.N.E.”), a gang based in the Trumbull Gardens area of Bridgeport, against rival groups in Bridgeport, including the East End, East Side and PT Barnum gangs, as well as 150, which is a geographic gang based on the West Side of Bridgeport.
In pleading guilty, Kirkland admitted that on May 22, 2015, he shot and attempted to kill “KJ,” a member or associate of the 150 gang, at the intersection of Park Street and Shelton Street on Bridgeport’s East Side; on February 27, 2018, he and others shot and attempted to kill “TH,” “RF” and “GS,” members or associates of the East End gang, at 1306 Stratford Avenue in Bridgeport; and on October 4, 2018, he and others shot and attempted to kill “MS,” a member or associate of the East End gang, inside the Greene Homes housing complex.
Kirkland also appears in a YouTube video, surrounded by other GHB/Hotz and O.N.E. members, possessing a firearm with a 50-round drum, discussing acts of violence, and celebrating a jury acquittal in his state trial for attempted murder.
Kirkland pleaded guilty to one count of conspiracy to engage in a pattern of racketeering activity, an offense that carries a maximum term of imprisonment of 20 years. Judge Arterton scheduled sentencing for December 9, 2021, at which time Kirkland faces a maximum term of imprisonment of 20 years.
Kirkland has been detained since April 11, 2019.
This ongoing investigation is being conducted by ATF, the FBI’s Safe Streets and Violent Crimes Task Forces, DEA, U.S. Marshals Service, Bridgeport Police Department, Connecticut State Police and the Bridgeport State’s Attorney’s Office, with the assistance of the U.S. Postal Inspection Service, Connecticut Forensic Science Laboratory and the Naugatuck Police Department. The case is being prosecuted by Assistant U.S. Attorneys, Jocelyn C. Kaoutzanis, Rahul Kale, Peter D. Markle, Karen L. Peck and Stephanie T. Levick.
This prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN), Project Longevity and Organized Crime Drug Enforcement Task Forces (OCDETF) programs.
PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.
OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Boston Man Sentenced for Investment Fraud SchemeRead the Press Release
BOSTON – The owner of several Boston-based investment companies was sentenced yesterday in federal court in Boston for operating a Ponzi-like fraud scheme.
Tanmaya Kabra, 27, was sentenced by U.S. District Court Judge Denise J. Casper to 21 months in prison and one year of supervised release. Kabra was also ordered to pay restitution of $1,842,106 and a fine of $15,000. On April 8, 2021, Kabra pleaded guilty to four counts of wire fraud.
Kabra conducted business through a company called LaunchByte.io LLC and several affiliated entities. He held himself out to investors as a successful serial entrepreneur, venture capitalist and angel investor in start-up companies. Offering lucrative and low or no-risk returns on investments, Kabra lured investors with representations that their funds would be used to foster the growth and development of start-up companies, in order to prepare those companies for sale or for other legitimate business opportunities. In reality, Kabra used the money that he received from investors to pay off existing debts to prior investors in his scheme and to fund his lavish personal expenses, including using more than $200,000 of fraudulently obtained funds to purchase a power boat.
Kabra admitted to victimizing more than 20 individuals who suffered more than $1.8 million in losses as a result of the 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. The Securities & Exchange Commission provided valuable assistance in the investigation. Assistant U.S. Attorneys Christopher Looney and James D. Herbert of Mendell’s Criminal Division prosecuted the case.
Boston Man Sentenced for Fentanyl Trafficking ConspiracyRead the Press Release
BOSTON – A Boston man was sentenced today for his involvement in a drug trafficking conspiracy involving fentanyl and cocaine.
John Rodrigues, 27, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to three months in prison, nine months of home confinement and three years of supervised release. On April 27, 2021, Rodrigues pleaded guilty to conspiracy to distribute and to possess with intent to distribute 40 grams or more of fentanyl and cocaine.
On Nov. 1, 2017 Rodrigues sold approximately 9.8 grams of a mixture containing fentanyl and cocaine to an undercover officer. Rodrigues was charged as part of an investigation into a drug trafficking organization distributing large quantities of fentanyl, cocaine and other controlled substances in the greater Boston area.
Acting United States Attorney Nathaniel R. Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Acting Commissioner Gregory Long made the announcement today. Assistant U.S. Attorneys Corey Steinberg and John Mulcahy of Mendell’s Criminal Division prosecuted the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Berwick Man Indicted on Firearms ChargesRead the Press Release
HARRISBURG -The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 14, 2021, Colton Oppel, 30, of Berwick, Pennsylvania, was indicted by a federal grand jury on firearms charges.
According to Acting United States Attorney Bruce D. Brandler, the indictment alleges that in January 2020, Oppel, who is prohibited from possessing firearms based on prior convictions, possessed 25 firearms including handguns, rifles and shotguns, including a firearm with an obliterated serial number and a sawed-off shotgun.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Briar Creek Police Department and the Pennsylvania Attorney General’s Office Bureau of Narcotics Investigation. Assistant U.S. Attorney Geoffrey W. MacArthur is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for each count is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Baker City Man Sentenced to Federal Prison for Stealing Covid-Relief FundsRead the Press Release
PORTLAND, Ore.—A Baker City, Oregon man was sentenced to federal prison today for fraudulently converting to his own personal use federal money intended to help small businesses during the COVID-19 pandemic.
The parties stipulated to a two-year prison sentence for Jeremy Clawson, 32. At their joint recommendation, however, U.S. District Court Chief Judge Marco A. Hernandez reduced the sentence to ten months to account for the time Clawson had already served in Oregon state custody. Chief Judge Hernandez also ordered Clawson to serve a term of three years’ supervised release following his federal prison term.
“Recent federal relief programs, like those authorized by the CARES Act, were designed to help Americans and American small businesses navigate the economic fallout of the COVID-19 pandemic. Mr. Clawson saw the swift rollout of these programs as an opportunity to enrich himself at the expense of Americans in need. I want to thank the U.S. Secret Service and U.S. Small Business Administration Office of Inspector General for their steadfast partnership and commitment to bringing Mr. Clawson to justice,” said Acting U.S. Attorney Scott Erik Asphaug.
“This case shows the American people that their law enforcement and Attorney’s Office are taking CARES act fraud seriously,” said Justin Bourne, Resident Agent in Charge of the Secret Service Portland Resident Office. “This investigation is a prime example of the Secret Service’s investigative mission; to protect the United States financial infrastructure. This case illustrates the strong partnership between the Secret Service, U.S. Small Business Administration Office of Inspector General, the Baker City Police Department and the U.S. Attorney’s Office.”
“Lying to gain access to economic stimulus funds for personal gain will be met with justice,” said SBA OIG’s Western Region Special Agent in Charge Weston King. “Greed has no place in SBA’s programs that are intended to provide assistance to the nation’s small businesses struggling with the pandemic challenges. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
According to court documents, Clawson stole economic relief funds distributed by the Small Business Administration (SBA) through the Economic Injury Disaster Loan (EIDLs) program, as authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act, signed into law on March 27, 2020, was designed to provide emergency financial assistance to millions of Americans and small businesses suffering the economic effects of the COVID-19 pandemic.
On August 11, 2020, the proceeds of an SBA EIDL totaling $145,200 were deposited into an Umpqua Bank account owned by Clawson and his girlfriend. Shortly after receiving the deposit, Clawson began making multiple large cash withdrawals at the drive-through window of an Umpqua Bank in Baker City. On August 17, 2020, Clawson withdrew $49,905 in the form of a cashier’s check to purchase a 2016 Dodge Challenger.
SBA loan documents showed that the EIDL had been extended to the Halperin Manufacturing Company of San Diego, California. Though there is no record of any such company, the loan application listed an actual San Diego resident as the company’s owner and claimed it employed 350 people. Investigators contacted the purported owner, but that person denied owning or being affiliated with any such company and confirmed that the company’s supposed address in San Diego was the individual’s personal residence.
In early September 2020, investigators learned that Clawson had been arrested in late August by the Baker City Police Department for driving under the influence, reckless driving, driving with a suspended license, and attempting to elude the police. Clawson was driving the 2016 Dodge Challenger at the time of his arrest. Clawson later told authorities that he had received a large inheritance from his father, including $30,000 in cash he had on his person during a subsequent arrest.
On September 11, 2020, federal investigators interviewed Clawson at the Baker County Jail, where he was detained on the state charges. Clawson claimed to have received the $145,200 from a woman with whom he had an online dating relationship. He further claimed that he didn’t know what to do with the money and, after he stopped communicating with the woman, began spending the money himself. Clawson admitted to using the SBA money to purchase the Dodge Challenger and several other vehicles.
On December 21, 2020, Clawson was charged by criminal complaint with theft of government property. Later, on February 2, 2021, a federal grand jury in Portland returned a single-count indictment charging Clawson with theft of public money. On June 8, 2021, he pleaded guilty.
During sentencing, Chief Judge Hernandez ordered Clawson to pay $125,200 in restitution to the SBA.
Clawson has been in custody since his arrest in August 2020.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the U.S. Secret Service in cooperation with the SBA Office of Inspector General and Baker City Police Department. It was prosecuted by Ryan W. Bounds, Assistant U.S. Attorney for the District of Oregon.
Anyone with information about 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: www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Armed Beaumont Ice Cream Man Sentenced for Federal Firearms ViolationRead the Press Release
BEAUMONT, Texas – A Beaumont man has been sentenced to prison for a federal firearms violation in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas Ganjei today.
Jason Bernard Sibley, 21, pleaded guilty on May 28, 2021, to being a prohibited person in possession of a firearm and was sentenced to 33 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to court documents, on Feb. 3, 2021, Sibley began a video live-stream on a social media platform in which he recorded himself in an ice cream truck in a local Beaumont neighborhood serving ice cream to children. He was also observed possessing a firearm in that video. Officers with the Beaumont Police Department who had previous contact with Sibley saw the video and knew Sibley to be a convicted felon and prohibited from owning or possessing firearms or ammunition. Officers eventually arrested Sibley in the ice cream truck and recovered the firearm. Sibley was indicted by a federal grand jury on April 7, 2021 and charged with federal firearms violations.
“The conduct in this case is especially egregious because the firearm was possessed in the presence of children,” said Acting U.S. Attorney Nicholas J. Ganjei. “The United States Attorney’s Office commends the ATF and Beaumont Police Department for their diligent investigation, which removed an appreciable danger to the Beaumont community.”
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Beaumont Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Russell James.
Annapolis Ms-13 Member Sentenced to 35 Years in Federal Prison for Racketeering Conspiracy, Discharging a Firearm Related to a Murder, and Two Attempted MurdersRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Moises Alexis Reyes-Canales, a/k/a “Sicopita”, age 23, of Annapolis, to 35 years in federal prison, followed by five years of supervised release, for conspiracy to participate in a racketeering enterprise and to using, carrying, and discharging a firearm during a crime of violence, in connection with his MS-13 gang activities, including a murder and two attempted murders.
According to his plea agreement and other court documents, since about March 11, 2016, Reyes-Canales was a member and associate of MS-13, and participated in a racketeering conspiracy that included assaults, murder, attempted murder, robbery, and drug trafficking. Specifically, Reyes-Canales admitted that he participated in the murder of a suspected rival gang member, and conspired and attempted to murder two victims in Annapolis. In addition, between January 2016 and February 2017, Reyes-Canales and other MS-13 members/associates sold marijuana to raise funds for the gang. The drug proceeds were used for, among other purposes, the purchase of more narcotics, weapons, and to send to MS-13 members and associates in other states and in El Salvador.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Special Agent in Charge James Mancuso of Homeland Security Investigations (HSI) Baltimore Office; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Chief Amal Awad of the Anne Arundel County Police Department; Chief Edward Jackson of the Annapolis Police Department; and State’s Attorney Anne Colt Leitess of the Anne Arundel County State’s Attorney Office.
“Reyes-Canales is a violent gang member who killed and seriously injured multiple victims, and in the process brought horror and despair to the victims and their families as well as chaos and fear to communities in Annapolis. The United States Attorney’s Office would like to thank community members and our international and local law enforcement partners who assisted in this investigation,” said Acting U.S. Attorney Jonathan F. Lenzner. “This sentence of 35 years in federal prison should serve as a warning to those who are in MS-13 and are considering joining the gang that we will be relentless in prosecuting anyone who is involved in violence.”
“Due to the diligent work of our law enforcement partners and the department prosecutors in this case, Reyes-Canales and his MS-13 co-defendants will no longer be able to victimize the Annapolis community. Reyes-Canales and his co-defendants murdered one victim and attempted to murder two others, causing irreparable harm to the victims and their families,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “We will never stop pursuing those MS-13 gang members who intimidate and harm our communities."
As part of the racketeering conspiracy, Reyes-Canales admitted that on March 11, 2016, he and other MS-13 members and associates planned and agreed to murder Victim 1, whom the gang suspected of being a rival gang member. Prior to the murder, Reyes-Canales received authorization to commit the murder from MS-13 leadership. Juan Carlos Sandoval-Rodriguez and another MS-13 member/associate lured Victim 1 to Quiet Waters Park in Annapolis, Maryland, and once Victim 1 arrived at the park, members of the gang struck Victim 1 in the head with a branch or stick. Reyes-Canales, co-defendants Marlon Cruz-Flores, Fermin Gomez-Jimenez, and other members and associates of MS-13, then stabbed Victim 1 repeatedly, killing him. Reyes-Canales directed everyone during the murder. While Reyes-Canales and other members of the gang stabbed Victim 1, Co-conspirator 1 and other MS-13 members/associates stood watch outside of the park to ensure no one entered or left the park, and to watch for police presence, so that the gang could complete the murder of Victim 1. During this time, Co-conspirator 1 communicated by phone and through text messages with Reyes-Canales and Cruz-Flores inside the park, to let them know no one entered the park and they could complete the murder. After Victim 1 was killed, Gomez-Jimenez left the park to stand watch, so that other MS-13 associates could enter the park help bury Victim 1 in a shallow grave inside the park, at the direction of Reyes-Canales. Law enforcement did not locate Victim 1’s body until August 28, 2017, when it was exhumed by law enforcement.
As detailed in their plea agreements, on October 23, 2016, Reyes-Canales, Gomez-Jimenez, and other members and associates of the MS-13 Hempstead clique in Annapolis, devised a plan to murder Victim 2, an unlicensed taxi driver. Reyes-Canales, Gomez-Jimenez, Cruz-Flores, co-defendant Manuel Martinez-Aguilar, and other members and associates of MS-13, met at Quiet Waters Park to discuss the plan to murder Victim 2. At the meeting, each member of the conspiracy was assigned a task to complete the murder and dispose of the evidence. The group planned to use machetes, knives, and guns to kill the victim. Reyes-Canales and Cruz-Flores each had a firearm and all the members of the conspiracy were aware that guns would be used in the murder.
A co-conspirator called Victim 2 using another member’s cell phone to arrange for an unlicensed taxi ride. Victim 2 arrived with another passenger, Victim 3. Cruz-Flores asked Victim 2 to drive to the area of the 700 block of Annapolis Neck Road in Annapolis. When they arrived, Reyes-Canales approached the vehicle and pointed a gun at the victims and Cruz-Flores also produced a gun and pointed it at the victims. Victim 3 attempted to run away and Cruz-Flores shot Victim 3 in the leg, while another MS-13 member repeatedly attacked Victim 3 with a machete. Victim 2 also tried to run. Reyes-Canales attempted to shoot Victim 2, but his gun failed to discharge. Co-defendant Martinez-Aguilar and another MS-13 member took Victim 2’s vehicle and attempted unsuccessfully to run him over with the car. Reyes-Canales, Gomez-Jimenez, and other conspirators chased Victim 2 and Gomez-Jimenez repeatedly stabbed Victim 2 with a knife. The conspirators fled when they heard police sirens. A short time later, police arrested Gomez-Jimenez nearby with Victim 2’s blood on his hands and clothes. A surveillance camera in the area captured Gomez-Jimenez assaulting Victim 2 and the attempt to run over Victim 2 with Victim 2’s vehicle. DNA subsequently confirmed that the blood on Gomez-Jimenez’ hands matched Victim 2’s blood. Both victims were transported to the University of Maryland Shock Trauma Center with life threatening injuries. Both victims survived but have permanent injuries as a result of the attack.
Co-defendants Marlon Cruz-Flores, age 25, and Manuel Martinez-Aguilar, a/k/a “El Lunatic” and “Zomb,” age 22, both of Annapolis, Maryland, previously pleaded guilty to the racketeering conspiracy and gun charge. Cruz-Flores was sentenced to 38 years in federal prison and Martinez-Aguilar was sentenced to 24 years in federal prison. Co-defendant Fermin Gomez-Jimenez, age 23, of Annapolis, Maryland pleaded guilty to conspiracy to participate in a racketeering enterprise and to using, carrying, and discharging a firearm during a crime of violence, and David Diaz-Alvarado, age 20, also of Annapolis, pleaded guilty to murder in aid of racketeering in connection with his MS-13 gang activities. Co-defendant, Juan Carlos Sandoval-Rodriguez, age 23, of Annapolis was convicted on October 31, 2019, of murder in aid of racketeering and conspiracy to commit murder in aid of racketeering after a nine-day jury trial for the murder of Victim 1. His sentencing hearing is scheduled for February 10, 2011 at 10 a.m. He faces a mandatory sentence of life in prison. All of the defendants remain detained.
Anyone with information about MS-13 is encouraged to provide their tips to law enforcement. The FBI and Homeland Security Investigations both have nationwide tiplines that you can call to report what you know. You can reach the FBI at 1-866-STP-MS13 (1-866-787-6713), or you can call HSI at 1-866-DHS-2-ICE.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Acting United States Attorney Jonathan F. Lenzner and commended HSI, the ATF, the Anne Arundel County Police Department, the Annapolis Police Department, and the Anne Arundel State’s Attorney Office for their work in the investigation and prosecution. Mr. Lenzner and Mr. Polite thanked Assistant U.S. Attorney Zachary Stendig, and Trial Attorneys Matthew Hoff and Samantha Mildenberg Loiero of the Criminal Division’s Organized Crime and Gang Section, who prosecuted the case.
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Allegheny County Man Sentenced for Defrauding Social SecurityRead the Press Release
PITTSBURGH - A resident of Allegheny County has been sentenced in federal court to two years of probation and ordered to pay $22,611.62 in restitution on his conviction for theft of government money, Social Security fraud, and Social Security representative payee misuse, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge Cathy Bissoon imposed the sentence on John Robert Mahoney, 54, of Curtisville Pennsylvania.
Previously, in connection with his guilty plea, the court was advised that Mahoney had applied to the Social Security Administration (SSA) be the representative payee for his minor child and receive Social Security Title II survivor benefits and Title XVI Supplemental Security Income (SSI) benefits on her behalf. As a representative payee, Mahoney was required to report to the SSA if his child left his household and was required to use SSA funds for his child’s benefit or save them.
In October 2015, Mahoney’s child was removed from his custody, and he failed to report the removal to the SSA as required. Mahoney continued to receive Title XVI payments on behalf of the child until December 2017 and Title II payments until April 2018. He also submitted a Representative Payee Report to SSA in which he falsely stated that his child had resided with him the prior year. Mahoney used money he received from SSA to pay his rent rather than for the child’s benefit. The overpayment by the SSA to Mahoney was $22,611.62.
Assistant United States Attorney David Lew prosecuted this case on behalf of the government.
The U.S. Social Security Administration, Office of Inspector General conducted the investigation leading to the successful prosecution of Mahoney.
Alleged Boston Gang Member Sentenced for Drug ConspiracyRead the Press Release
BOSTON – An alleged member of the Franklin Hill street gang in Boston was sentenced today on federal drug charges.
Trevel Brewster, 27, was sentenced by U.S. District Court Judge Denise J. Casper to five years in prison and four years of supervised release. On June 2, 2021, Brewster pleaded guilty to two counts of distribution and possession with intent to distribute cocaine base and one count of distribution and possession with intent to distribute over 28 grams of cocaine base.
According to the indictment, Brewster and his co-defendant distributed and possessed with intent to distribute cocaine base in Boston on Feb. 26, 2020 and March 2, 2020 and conspired to distribute and possess with intent to distribute over 28 grams of cocaine base.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of Federal Bureau of Investigation, Boston Division; Boston Police Acting Commissioner Gregory Long; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Suffolk County Sheriff Steven W. Tompkins; and Brockton Police Chief Emanuel Gomes made the announcement today. Mendell’s Major Crimes Unit prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), 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.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Acting U.S. Attorney Announces Major Law Enforcement Initiative to Combat Violence and Drug Distribution from La Nuestra Familia GangRead the Press Release
SAN FRANCISCO – Acting United States Attorney Stephanie M. Hinds held a press conference today to announce the unsealing of federal charges filed against 55 defendants, many of whom were members of, or affiliated with, the Nuestra Familia prison gang and its subservient street gangs. Acting U.S. Attorney Hinds was joined in making the announcement by Federal Bureau of Investigation Special Agent in Charge Craig D. Fair, Drug Enforcement Administration Special Agent in Charge Wade R. Shannon, California Department of Corrections and Rehabilitation Chief Office of Correctional Safety Derrick Marion, Santa Clara Sheriff Laurie Smith, and San Jose Deputy Chief of Police Elle Washburn.
The focus of the press conference was the unsealing of 17 charging documents, including 14 indictments and 7 criminal complaints, setting out a broad array of charges against the defendants.
“No single defendant is responsible for all the conduct I am describing,” said Acting U.S. Attorney Hinds. “The charges against each defendant are described in a charging document that is unique to each defendant. By disrupting gang leadership, we reduce violence on our streets. By removing violent actors and crime drivers from the streets, we make our neighborhoods safer.”
According to the documents unsealed today, La Nuestra Familia – Spanish for “Our Family”– was a prison gang operating in the California state prison system. Falling under the gang’s supervision are Norteño street gangs established in numerous cities and counties, and in jails and prisons, throughout Northern California and elsewhere. Several of the charging documents unsealed today describe various aspects of the gang. For example, one indictment (here (Leadership)) describes the largely-incarcerated leadership, while another (here (SJG)) describes the activities of a street gang called the San Jose Grande and yet another (here (EHP)) describes a group referred to as El Hoyo Palmas Street Gang. The picture that emerges is one of a violent and structured organization that finances its activities through crime and encourages its members to visit violence upon anyone who threatens the gang’s existence, including members who break gang rules, members who attempt to leave the gang, and rival gang members.
According to the documents unsealed today, of the 55 defendants, 28 individuals were charged with racketeering crimes, while the remaining individuals were charged with drug trafficking and firearms offenses. Conspiracies alleged in the indictments include agreements to distribute drugs including heroine, methamphetamine, and cocaine; to commit armed robberies; and to commit murder. Additional defendants were charged with other related crimes ranging from drug distribution to armed robbery.
Acting U.S. Attorney Hinds emphasized the goal to “fish with a spear, not a net.” “Working with our federal and state, local, and tribal law enforcement partners, as well as impacted communities, our law enforcement efforts have focused on addressing violent crime driven by gangs,” said Acting U.S. Attorney Hinds. “We will continue to work with our law enforcement partners, as well as members of our community, to identify and address the drivers of crime in our neighborhoods. We intend to continue to deliver results by focusing on the needs of our communities.”
“Operation Quiet Storm was one of the largest gang takedowns in FBI San Francisco division’s history," said FBI San Francisco Special Agent in Charge Craig D. Fair. "The coordinated efforts of this operation were done with one goal in mind: to disrupt the communications and organizational structure of a criminal network who has terrorized our neighborhoods for far too long.”
“Today’s operation strikes a substantial blow to Nuestra Familia leadership. This investigation revealed the wide-ranging influence of the gang that extends far beyond prison walls. It is clear they have hard and fast rules, and those who run afoul are met with intimidation and violence that spills into our communities,” said DEA Special Agent in Charge Shannon. “We will continue to look at these organizations structurally to disrupt and dismantle them.”
An indictment merely alleges that crimes have been committed, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
This case is being prosecuted by the Organized Crime Strike Force of the United States Attorney’s Office for the Northern District of California. The prosecution is the result of an investigation by the FBI (San Francisco, Sacramento, and Phoenix Divisions) and the DEA, with the assistance of the Santa Clara County Sheriff’s Office, the California Department of Corrections and Rehabilitation, the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, the U.S. Marshal Service, the Santa Clara County District Attorney’s Office, and the San Jose Police Department, as well as the support of the Alameda County Sheriff's Office, Antioch Police Department, Campbell Police Department, Fremont Police Department, King’s County Sheriff’s Office, Monterey County Sheriff’s Office, Mountain View Police Department, Sacramento Police Department, Salinas Police Department, Menlo Park Police Department, Santa Clara County Parole Department, Santa Clara County Probation Department, Santa Clara Police Department, Santa Cruz County District Attorney's Office, Santa Cruz County Sheriff's Office, Modesto Police Department, San Francisco Police Department, and Stanislaus County Sheriff's Department, and Sunnyvale Department of Public Safety.
This investigation and prosecution are part of the Organized Crime Drug Enforcement Task Force (“OCDETF”), which 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.
12 Tribes Selected for Participation in Program Enhancing Tribal Access to National Crime Information DatabasesRead the Press Release
WASHINGTON – The Department of Justice has selected an additional 12 federally recognized tribes to participate in the expansion of the Tribal Access Program for National Crime Information (TAP), a program that provides tribal governments with means to access, enter, and exchange data with national crime information systems, including those maintained by the FBI Criminal Justice Information Services (CJIS) Division and the states. The application period for this recent round of selections opened on July 1, and closed on August 31, 2021.
“Timely access to federal criminal information can help protect domestic violence victims, place foster children in safe conditions, solve crimes, and apprehend fugitives on tribal land, among other important uses,” said Deputy Attorney General Lisa O. Monaco. “Increasing tribal access to criminal databases is a priority of the Justice Department and this Administration, and essential to many tribal government efforts to strengthen public safety in their communities.”
Acting U.S. Attorney Leif M. Johnson said, “We are pleased that the Fort Belknap Indian Community has been selected for expansion of the Tribal Access Program. This program will allow the Fort Belknap tribes to enter and share information about missing persons into the national missing persons database and to enter and exchange various other information with law enforcement across the country to help make the community safer.”
The program provides training as well as software and biometric/biographic kiosk workstations to process fingerprints, take mugshots, and submit information to FBI Criminal Justice Information Services (CJIS) systems. With these additional tribes, there are now 108 federally recognized Tribes participating in TAP.
TAP has been an important resource for the department’s Missing and Murdered Indigenous Persons Initiative and the Presidential Task Force on Missing and Murdered American Indians and Alaska Natives known as Operation Lady Justice. The Department of Justice began TAP in 2015 in response to concerns raised by tribal leaders about the need to have direct access to federal systems.
Using TAP, tribes have shared information about missing persons; registered convicted sex offenders; entered domestic violence orders of protection for nationwide enforcement; run criminal histories; identified and arrested fugitives; entered bookings and convictions; and completed fingerprint-based record checks for non-criminal justice purposes such as screening employees or volunteers who work with children.
The following tribes have been newly selected for participation in TAP:
- Confederated Tribes of the Warm Springs Reservation
- Cow Creek Band of Umpqua
- Fort Belknap Indian Community
- Grand Traverse Band of Ottawa and Chippewa
- Havasupai Tribe
- Lower Brule Sioux Tribe
- Menominee Tribe
- Mille Lacs Band of Ojibwe
- Muckleshoot Tribe
- Passamaquoddy Tribe
- Shingle Springs Band of Miwok
- United Keetoowah Band of Cherokee
TAP is managed by the Justice Department’s Office of the Chief Information Officer and the Office of Tribal Justice. It is funded by the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART), the Office of Community Oriented Policing Services (COPS), the Office for Victims of Crime (OVC), and the Office on Violence Against Women (OVW).
For more information on TAP, visit www.justice.gov/tribal/tribal-access-program-tap.
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12 Alleged Members of Two San Jose-Based Norteño Street Gangs Charged with Racketeering-Related CrimesRead the Press Release
SAN FRANCISCO - A federal grand jury indicted twelve California residents, charging each with joining criminal conspiracies as part of their alleged membership in San Jose-based Norteño street gangs. The crimes were set out in two separate indictments, both of which were unsealed today. The indictments describe defendants’ alleged membership in or affiliation with one of two gangs, known as El Hoyo Palmas and San Jose Grande, both of which fall under the prison gang, the Nuestra Familia. The announcement was made by Acting United States Attorney Stephanie Hinds, Federal Bureau of Investigation Special Agent in Charge Craig D. Fair, and Drug Enforcement Administration Special Agent in Charge Wade R. Shannon at a press conference held earlier today. Appearing at the press conference were Chief of the Office of Correctional Safety for the California Department of Corrections and Rehabilitation Derrick Marion, Santa Clara Sheriff Laurie Smith, and San Jose Deputy Chief of Police Elle Washburn.
According to the indictments, the Nuestra Familia is a prison gang whose members are housed in various California state prisons but whose power and authority extends well beyond the prison walls. Outside of custodial settings, the Nuestra Familia organizes geographic territories throughout Northern California into groups known as “street regiments.” The indictments further describe how street regiments are divided into smaller subsets, or “hoods,” based on the local neighborhoods where their members reside or where the gangs operate. Street regiments then collect money from these “hoods,” typically in the form of monthly “dues” or taxes on profits from illegal activities, such as drug dealing, some of which is then to be provided to the Nuestra Familia.
“These two indictments represent a major law enforcement effort to curb street gang violence,” said Acting U.S. Attorney Hinds. “ A principal objective of San Jose Grande and El Hoyo Palmas street gangs was to generate profits through narcotics trafficking, robbery, and other criminal activities. The operation demonstrates that this office, in coordination with our law enforcement partners, will use all the tools at our disposal to quell the violence in our streets.”
"The arrests made yesterday, most significantly the arrests of the Nuestra Familia leadership, will severely cripple the ability of this criminal enterprise to continue to facilitate crimes in communities throughout the state and help break a decades-old cycle of violence," said FBI San Francisco Special Agent in Charge Fair.
“The intersection of drug trafficking and violence perpetuated by gangs is all too common, it is a continual cycle of lawlessness that plagues many of our Bay Area communities. It is unacceptable.” said DEA Special Agent in Charge Shannon. “By putting together our collective authorities we are in a better position to systematically target and bring to justice those responsible for violent crime on our streets.”
The first indictment, filed August 12, 2021, addresses the San Jose-based street gang known as El Hoyo Palmas. The six defendants in that indictment are Jose Garcia, aka “Bones,” 33; Juan Gonzalez, aka “Crazy Indian,” aka “Trigger,” 48; Paul Valenzuela, aka “One Eye,” 41; Caleb Eller, aka “Chuckles,” aka “Shank,” 33; Kyle Leonis, aka “Little Green,” 26; and Juan Dominguez, aka “Green Eyes,” aka “Nito,” 38. The indictment alleges that El Hoyo Palmas is a multi-generational Norteño gang that is a sub-group of the Santa Clara County Regiment and operates in and around the San Jose area. According to the indictment, El Hoyo Palmas derives profits from illicit activity and its members provide monthly “dues” or “contributions” to the Santa Clara County Regiment for distribution to the Nuestra Familia. The indictment alleges defendants conspired to commit crimes, including acts of violence, to make money, benefit El Hoyo Palmas, and increase their status within the gang.
The El Hoyo Palmas indictment has three counts. Count one of the indictment charges Garcia, Gonzalez, Valenzuela, Eller, and Leonis, with conspiracy to commit Hobbs Act robbery, in violation of 18 U.S.C. § 1951(a). According to the indictment, these five defendants conspired in September and October of 2018 to commit a robbery that would have obstructed, delayed, and affected interstate commerce. Counts two and three of the indictment allege that in October of 2018, Garcia, Gonzalez, Valenzuela, Leonis, and Dominguez conspired to commit murder and assault. Count two alleges that the defendants conspired to commit murder in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(5), while count three alleges the defendants conspired to commit assault with a dangerous weapon in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(6).
If convicted, the defendants charged with (1) conspiracy to commit Hobbs Act robbery face a statutory maximum of 20 years in prison, (2) conspiracy to commit murder face a statutory maximum of 10 years in prison, and (3) conspiracy to commit assault face a statutory maximum of 3 years in prison. The court also may order additional terms of supervised release, fines, and restitution. Nevertheless, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The second indictment, also filed August 12, 2021, addresses the street gang known as San Jose Grande. The defendants in the San Jose Grande indictment are Joshua Hernandez, aka “Sleepy G,” 39; Giovanni Coria, aka “Gio,” 24; Andrew Anchondo, aka “Indo,” aka “Lil Indo,” 23; Charles Pineda, aka “Taco,” 43; Eliseo Martinez, aka “Snow,” aka “Snowman,” 27; and Nicholas Mendez, aka “Prime Time,” 45. Like the El Hoyo Palmas indictment, this indictment alleges that San Jose Grande is a multi-generational Norteño street gang that is a sub-group of the Santa Clara County Regiment to which its members pay “dues” or “contributions.” At the center of the indictment is a list of more than two dozen transactions in which one or more of the defendants allegedly engaged in activities to promote the aims of San Jose Grande. The list includes alleged participation in the sale of narcotics, the sale of firearms, armed robberies, a stabbing, a home invasion robbery, and other acts of violence. The defendants all are charged in a single count of racketeering conspiracy in violation of 18 U.S.C. § 1962(d).
If convicted, the defendants in the second indictment face a maximum statutory sentence of life in prison. In addition, the court may order terms of supervised release, fines, and restitution. Nevertheless, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Regarding the defendants in both indictments, an indictment merely alleges that crimes have been committed, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The defendants are scheduled to make initial federal court appearances before U.S. Magistrate Court Judge Nathanael Cousins today.
This case is being prosecuted by the Organized Crime Strike Force of the United States Attorney’s Office for the Northern District of California. The prosecution is the result of an investigation by the FBI (San Francisco, Sacramento, and Phoenix Divisions) the DEA, the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the U.S. Marshal Service, and with the assistance of the Santa Clara County Sheriff’s Office, the California Department of Corrections and Rehabilitation, ,the Santa Clara County District Attorney’s Office, and the San Jose Police Department, as well as with the support of the Alameda County Sheriff's Office, Antioch Police Department, Campbell Police Department, Fremont Police Department, King’s County Sheriff’s Office, Monterey County Sheriff’s Office, Mountain View Police Department, Sacramento Police Department, Salinas Police Department, Menlo Park Police Department, Santa Clara County Parole Department, Santa Clara County Probation Department, Santa Clara Police Department, Santa Cruz County District Attorney's Office, Santa Cruz County Sheriff's Office, Modesto Police Department, San Francisco Police Department, and Stanislaus County Sheriff's Department, and Sunnyvale Department of Public Safety.
This investigation and prosecution are part of the Organized Crime Drug Enforcement Task Force (“OCDETF”), which 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..
Wednesday 15 September 2021
Worcester Man Pleads Guilty to Fraud and Identity Theft Charges Related to COVID-19 PandemicRead the Press Release
BOSTON – A Worcester man pleaded guilty today to fraudulently applying for business loans under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, and then spending the money on personal expenses.
Richard Oworae, 59, pleaded guilty to three counts of wire fraud and one count of aggravated identity theft. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Jan. 12, 2022. Oworae was arrested and charged on Jan. 21, 2021
Between late July 2020 and late August 2020, Oworae schemed to defraud the Small Business Administration (SBA) by submitting applications through SBA’s website for at least three Economic Injury Disaster Loans (EIDL) totaling approximately $194,700. Oworae fraudulently applied for EIDL, provided false statements on the loan applications using the stolen personal identification information of another person and misappropriated the loan funds for personal use. Oworae also created fictitious companies for the purpose of fraudulently applying for EIDL, and spent funds obtained from that fraud on unauthorized personal expenses and to make money transfers through a money-remitter business based in Tanzania to numerous individuals in Ghana.
EIDL funds were available to eligible individuals and businesses pursuant to the CARES Act. The provisions of the CARES Act allowed for the SBA to offer EIDL funding to business owners negatively affected by the COVID-19 pandemic. The provisions of the EIDL program require that loan proceeds only be used on certain permissible business expenses, which can include payment of fixed business debts, payroll, accounts payable, and other business-related expenses that could have been paid had the COVID-19 disaster not occurred.
The charges of wire fraud provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $1 million or twice the gross gain or loss, whichever is greater. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison, to be served consecutively to any sentence imposed for the wire fraud counts, up to one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joshua McCallister, Acting Inspector in Charge of the U.S. Postal Inspection Service; and Matthew Modafferi, Special Agent in Charge of the U.S. Postal Service Office of Inspector General made the announcement today. Assistant U.S. Attorney Danial Bennett of Mendell’s Worcester Branch Office is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Williamsport Man Indicted on Firearms ChargesRead the Press Release
HARRISBURG -The United States Attorney’s Office for the Middle District of Pennsylvania announced today a federal grand jury in Harrisburg indicted James Lampley, 29, of Williamsport, Pennsylvania, on firearms charges.
According to Acting United States Attorney Bruce D. Brandler, the indictment alleges that in July 2021, Lampley, who is prohibited from possessing firearms based on a prior conviction, possessed a shotgun and a handgun with an obliterated serial number.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Pennsylvania State Police. Assistant U.S. Attorney Geoffrey W. MacArthur is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for each count is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Vero Beach Woman Pleads Guilty to Possessing More Than 500 Grams of MethamphetamineRead the Press Release
Orlando Florida – Amanda Gailene Paul (38, Vero Beach) has pleaded guilty to possessing with the intent to distribute 500 grams or more of methamphetamine. She faces up to life in federal prison. A sentencing date has not yet been scheduled.
According to the plea agreement, on or about November 3, 2020, at the direction of federal agents, a confidential source contacted Paul to purchase three pounds of methamphetamine. Prior to the delivery, investigators located Paul in her vehicle. A subsequent search of Paul’s vehicle revealed three individually packaged plastic bags that contained approximately three pounds of methamphetamine.
This case was investigated by the Federal Bureau of Investigation, the Palm Bay Police Department, the City of Cocoa Police Department, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney Terry B. Livanos.
Valdosta Man Indicted on Child Pornography Production Charges, Information Sought by Law EnforcementRead the Press Release
MACON, Ga. – A federal grand jury has returned an indictment charging a Valdosta, Georgia, resident with several child pornography production charges in an ongoing investigation.
Henry Theodore Salmons aka Ted, 48, of Valdosta, is charged with three counts of production of child pornography. If convicted, Salmons faces a maximum sentence of 30 years in prison and a $250,000 fine per count. An indictment is only an allegation of criminal conduct and the defendant is presumed innocent until and unless proven guilty in a court of law beyond a reasonable doubt.
The indictment alleges that the defendant enticed at least two minor children to engage in sexually explicit acts which were filmed or photographed. Parents and guardians of children who may have been in contact with Salmons are encouraged to contact the Lowndes County Sheriff’s Office to share any concerns related to this investigation by calling 229-671-2900.
“It is imperative that parents and guardians of children who may have been in contact with Henry Salmons reach out to investigators at the Lowndes County Sheriff’s Office with any concerns,” said Acting U.S. Attorney Peter D. Leary. “We are thankful for the strong partnership we have with the Lowndes County Sheriff’s Office as we all work relentlessly to protect children across the Middle District of Georgia.”
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case is being investigated by the Lowndes County Sheriff’s Office. Assistant U.S. Attorneys Katelyn Semales and Alex Kalim are prosecuting the case for the Government.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Uncasville Business Owner Pleads Guilty to Tax EvasionRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and Joleen D. Simpson, Special Agent in Charge of IRS Criminal Investigation in New England, announced that KATHRYN POCOCK, 58, of Uncasville, waived her right to be indicted and pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to one count of tax evasion.
According to court documents and statements made in court, since 1991, Pocock has operated Sunshine Cleaners, LLC, a home cleaning business. Between 2015 and 2019, Pocock withdrew approximately $855,000 from the business and failed to report those proceeds on the relevant tax forms for the business and on her federal income tax returns. The investigation revealed that Pocock regularly cashed numerous client checks that had been paid to her business, deposited some checks into her personal bank account, and paid her employees “under the table.” Pocock wrote checks payable to cash from her personal and business bank accounts, and paid employees in cash without properly collecting and paying over employment tax to the IRS or sales and use taxes owed to the State of Connecticut.
The investigation also revealed that Pocock provided her tax preparer with false spreadsheets and supporting documentation that significantly understated her income and employee-related expenses.
Judge Meyer scheduled sentencing for December 8, 2021, at which time Pocock faces a maximum term of imprisonment of five years.
Pocock has agreed to pay $213,965 in restitution to the IRS, and $33,514 to the State of Connecticut.
Pocock is released pending sentencing.
This investigation is being conducted by the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Two Bel Air Men Facing Federal Indictment for $13 Million Scheme to Defraud Their Employer, Including Money Laundering and Tax EvasionRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging Eugene Andrew DiNoto, age 50, and Elliott Dennis Kleinman, age 67, both of Bel Air, Maryland, for the federal charges of conspiracy to commit wire fraud, wire fraud, mail fraud, money laundering, illegal monetary transactions and tax evasion, related to a $13 million scheme to defraud their employer. The indictment was returned on September 1, 2021, and unsealed today upon the arrest of the defendants. Elliott Kleiman has an initial appearance scheduled today at 3:45 pm, in U.S. District Court in Baltimore before U.S. Magistrate Judge Copperthite. Eugene DiNoto’s initial appearance in the Middle District of Florida where he was arrested has not yet been scheduled.
The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Acting Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to the 22-count indictment, Company A was a global business headquartered in New York that formulated and produced oils and extracts used in the food industry. Its affiliate, Company B, produced flavoring ingredients and seasonings for the food industry. Company A and Company B (the “Companies”) had manufacturing facilities in Belcamp and Abingdon, Maryland. To ship their products, the companies used large plastic, metal, or fiber drums, which they purchased from vendors located in various states. Kleinman was employed as the facility manager for the Companies until approximately 2012, when DiNoto took over his position, remaining in that position until approximately January 2020. As facility managers, Kleinman and DiNoto arranged and negotiated the prepurchase, transportation and storage of the drums needed to ship the Companies’ products from Business A and its affiliate, Business B, (the “drum vendors”), located in Carlstadt, New Jersey, then reviewed and authorized the payment of drum invoices submitted by drum suppliers doing business with the Companies. Once approved, the drum invoices were sent to the accounting department at the Companies’ headquarters to pay. Kleinman continued to maintain a relationship with the drum vendors after leaving his employment with the Companies.
The indictment alleges that from January 2015 until about January 2020, Kleinman and DiNoto, devised and executed a scheme to defraud the Companies, without the Companies’ knowledge or consent, by making a secret arrangement with the drum vendors to receive kickbacks for intentionally overlooking inflated charges that the drum vendors included on invoices submitted to the Companies. Specifically, the defendants approved the drum vendors’ false and inflated purchase invoices and submitted those fraudulent invoices to the Companies for payment. In exchange, the drum vendors paid the defendants approximately 50 percent of the inflated invoice amounts, which DiNoto and Kleinman split approximately 75/25, respectively.
For example, the indictment alleges that when asked by Company representatives to review the accuracy of the drum vendor invoices, DiNoto intentionally ignored false and inflated charges for tens of thousands of drums that the vendors never sent to the Companies, certified the accuracy of the invoices, and authorized their payment, submitting them to the Companies’ accounting department in New York for payment.
To conceal the nature and purpose of the payments from the drum vendors, DiNoto and Kleinman had the drum vendors issue checks payable to businesses that they established, with the notation “drums” written on the front. DiNoto registered the tradename “Sandpiper Enterprises” in the state of Maryland and opened and maintained a commercial bank account in that name. The address of record for Sandpiper Enterprises was DiNoto’s residence. Kleinman was the owner and sole shareholder of EDK Management Ltd. (EDK). EDK’s business address was the same as Kleinman’s residence. Kleinman opened two commercial bank accounts for EDK, one in the name “EDK Management Ltd” and the other in the name “EDK Management Ltd t/a Main Street Cigars. Main Street Cigars was a retail store located in Bel Air, Maryland.
As detailed in the indictment, the drum vendors sent checks to the defendants’ residences using a commercial interstate mail carrier. The indictment alleges that DiNoto then deposited the checks into the Sandpiper bank account, then transferred all or part of the funds into personal bank accounts, eventually withdrawing the funds as cash or spending them on personal expenses. Kleinman allegedly deposited the drum vendor checks into EDK’s business account, where it was withdrawn as cash, spent on personal expenses, or transferred to the EDK/Main Street Cigars account.
For example, the indictment alleges that on February 19, 2019, Kleinman transferred $7,500, which were proceeds from mail fraud, from the EDK commercial bank account to the EDK/Main Street Cigars account, in order to disguise the nature, source, ownership, and control of the illegal proceeds. In addition, the indictment alleges that DiNoto illegally transferred $26,000 derived from wire fraud from the Sandpiper account to other accounts he controlled.
Finally, the indictment alleges that for the 2017 through 2019 tax years the defendants underreported their taxable income on their Individual Income Tax Return, Form 1040, resulting in thousands of dollars in taxes due and owing. For example, for tax year 2017 DiNoto and Kleinman allegedly reported that their taxable income for the year was $3,153 and $58,365, respectively. According to the indictment, in fact, DiNoto’s taxable income in 2017 was $1,214,557, with tax owing of approximately $430,395, and Kleinman’s taxable income was $421,829, with tax owing of approximately $106,623.
If the defendants are convicted, the indictment seeks the forfeiture of a money judgment in the amount of $13,000,000; a 2016 BMW 6 Series coupe; a recreational vehicle; a bank account; and Kleinman’s residence, as property involved in the offenses of conviction or traceable to the criminal activity.
If convicted, the defendants face a maximum sentence of 20 years in federal prison for conspiracy to commit wire fraud; a maximum sentence of 20 years in federal prison or each of five counts of wire fraud; a maximum of 20 years in federal prison for each of six counts of mail fraud; and a maximum of five years in federal prison for each of three counts charging each defendant with tax evasion. Kleinman faces a maximum of 20 years in federal prison for money laundering. DiNoto also faces a maximum of 10 years in federal prison for each of three counts of engaging in an illegal monetary transaction. 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.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended the FBI and IRS – CI for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Martin J. Clarke and Harry M. Gruber, who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Three medical professionals charged with distributing 'massive quantities' of controlled substances from 'pill mill'Read the Press Release
WAYCROSS, GA: Three healthcare professionals have been charged in a 52-count federal indictment unsealed Wednesday, Sept. 15, 2021, in the U.S. District Court for the Southern District of Georgia.
The indictment describes an alleged conspiracy to distribute “massive quantities” of controlled substances, including highly addictive opioids, in violation of federal law, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. The charges include one count of Distribution and Dispensation of Controlled Substances Resulting in Death by Dr. Wallace Steven Anderson, 67, of Douglas, Ga., a charge that carries a minimum statutory sentence of 20 years in prison, up to life. There is no parole in the federal system.
“Our efforts to eradicate the illegal distribution of dangerous and addictive drugs in our neighborhoods target both the shadowy street dealers and white-coated prescribers alike,” said Acting U.S. Attorney Estes. “With our law enforcement partners, we will continue to bring to justice those who would spread poison in our communities.”
Named in the indictment are:
- Dr. Anderson, charged with Conspiracy; Distribution and Dispensation of Controlled Substances Resulting in Death; 48 counts of Unlawful Distribution and Dispensation of Controlled Substances; Conspiracy to Commit Healthcare Fraud; and Conspiracy to Launder Monetary Instruments;
- Bridgett Stephanie Taylor, 55, of Broxton, Ga., a Nurse Practitioner working under Anderson, charged with Conspiracy; eight counts of Unlawful Distribution and Dispensation of Controlled Substances; Conspiracy to Commit Healthcare Fraud; and Conspiracy to Launder Monetary Instruments; and,
- Wandle Keith Butler, 57, of Douglas, a Physician Assistant working under Anderson, charged with Conspiracy; three counts of Unlawful Distribution and Dispensation of Controlled Substances; Conspiracy to Commit Healthcare Fraud; and Conspiracy to Launder Monetary Instruments.
As described in the Indictment, Anderson is the owner of Steve Anderson, PC, and Steve Anderson Behavioral Health, both located in Douglas, Ga. Taylor and Butler worked for Anderson. The indictment alleges that from February 1, 2016, to September 30, 2020, the three operated or assisted in operating “nominal pain management and addiction facilities which dispensed controlled substances without any legitimate medical purpose.”
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
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.
The investigation is being conducted by the U.S. Drug Enforcement Administration’s Savannah Resident Office; the Internal Revenue Service Criminal Investigations; and Health and Human Services Office of the Inspector General, and prosecuted for the United States by Assistant U.S. Attorneys Matthew A. Josephson and Bradford C. Patrick.
Three Texas Residents Charged with Fraud and Money Laundering Conspiracies Targeting Federally Funded Meal Programs for Underprivileged YouthRead the Press Release
PITTSBURGH, PA - Three residents of Texas have been indicted by a federal grand jury in Pittsburgh on charges of mail and wire fraud conspiracy, money laundering conspiracy, and obstruction of justice, Acting United States Attorney Stephen R. Kaufman announced today.
The three-count Indictment, returned on August 25, 2021 and unsealed yesterday, names Charles Simpson, 43, of Southlake, Texas, Tanisha Jackson, 49, and Paige Jackson, 29, both of Lancaster, Texas, as defendants. Charles Simpson and Paige Jackson were arrested yesterday in the Dallas area and will have their initial appearances today in the Northern District of Texas. Tanisha Jackson remains at large.
According to the Indictment, Simpson, Tanisha Jackson, and Paige Jackson controlled and operated HOIN, Inc. (“HOIN”), a Texas-based non-profit organization. The defendants allegedly caused HOIN (a/k/a “Helping Others In Need”) to enroll as a “sponsor” in two programs funded by the United States Department of Agriculture (“USDA”) for the purpose of providing meals to underprivileged youth—the Child and Adult Care Feeding Program (“CACFP”) and the Summer Food Service Program (“SFSP”) (collectively, “the feeding programs”). CACFP funded after-school meal service during the school year, while SFSP operated in the summer months. In Pennsylvania, the Pennsylvania Department of Education (“PADOE”) administered the USDA-funded feeding programs.
As alleged, the defendants, each of whom was previously excluded from participating in the feeding programs in other states, caused the submission of false enrollment documentation to PADOE on behalf of HOIN in connection with its participation in CACFP and SFSP between 2015 and 2019. The Indictment alleges that, among other misrepresentations, HOIN’s applications to PADOE used aliases for Charles Simpson and Tanisha Jackson as a means to obscure their involvement and falsely certified that none of its principals had been excluded from the feeding programs. The Indictment further alleges that the defendants caused HOIN to submit reimbursement claims for hundreds of thousands of meals that were never served to eligible children by either inflating the number of meals that, in fact, were served or by seeking reimbursements for meals purportedly served on days on which the identified feeding site was not operating at all. To conceal their fraudulent conduct and justify HOIN’s claimed meal service, the defendants allegedly submitted fabricated documents to PADOE in connection with periodic program reviews, and on certain occasions Tanisha Jackson impersonated Paige Jackson, her daughter, in interactions with PADOE. In total, PADOE issued reimbursement payments to HOIN in excess of approximately $4 million between 2015 and 2019.
The Indictment further alleges that Simpson and Tanisha Jackson engaged in numerous financial transactions involving the proceeds of their alleged fraud. Specifically, Simpson and Tanisha Jackson allegedly spent hundreds of thousands of dollars in HOIN reimbursements on shopping sprees at high-end apparel stores, personal air travel and lodging, and the acquisition of at least nine luxury vehicles, including a Bentley, two Land Rovers, two Maseratis, two Mercedes, a Hummer, and a Porsche. The defendants also allegedly withdrew cash from HOIN bank accounts in excess of $10,000 on more than a dozen occasions.
In addition, Simpson is charged with obstruction of justice based on multiple lies he allegedly told federal law enforcement officers during a voluntary interview.
“The defendants allegedly created a nonprofit to provide meals to underprivileged children in our area, but instead billed and were reimbursed for services they never provided; they then used those ill-gotten funds for extravagant personal luxury purchases,” said Acting U.S. Attorney Kaufman. “Submitting fraudulent claims equals stealing, and those who perpetrate financial fraud against the government will be vigorously prosecuted.”
USDA Office of Inspector General, Special Agent-in-Charge Bethanne M. Dinkins stated, “The Child and Adult Care Food Program and Summer Food Service Program were created to provide food and nutrition to those who truly need this assistance. Those who are involved in fraud and abuse of USDA feeding programs will be investigated by our office to the fullest extent. Our joint investigation with the Internal Revenue Service, Criminal Investigation and Federal Bureau of Investigation identified those who sought to profit from the CACFP through illegal schemes. The USDA Office of Inspector General will continue to dedicate investigative resources, working with our law enforcement and prosecutorial partners, in order to protect the integrity of these programs and bring to justice those who commit fraud.”
“It is a crime to knowingly engage in monetary transactions involving criminally derived property of a value greater than $10,000 that is derived from a specified unlawful activity, such as mail fraud or wire fraud,” said Yury Kruty, Acting Special Agent in Charge of IRS-Criminalp Investigation. “IRS-CI is adept at tracing complex financial transactions and my office is committed to working with our law enforcement partners to help unravel schemes such as this.”
“It’s very disappointing when greed and selfishness take over and deprive our youth of much needed funding to provide them with nutritious meals,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “To use a non-profit organization as a means to engage in fraud targeting USDA-funded feeding programs is unacceptable. It’s also insulting to the teachers and educators working every day to make a better future for our children.”
All three defendants are charged with conspiracy to commit mail and wire fraud, which imposes a maximum term of imprisonment of twenty years and a fine not more than the greater of $250,000 or an alternative fine in an amount not more than the greater of twice the gross pecuniary gain to any person or twice the pecuniary loss to any person other than the defendant. Simpson and Tanisha Jackson are charged with money laundering conspiracy, which imposes a maximum term of imprisonment of ten years and a fine of not more than $250,000 or an alternative fine of not more than twice the amount of the criminally derived property involved in the transaction. Finally, the obstruction of justice charge as to Simpson imposes a maximum term of imprisonment of ten years and a fine of not more than $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorneys Eric G. Olshan and Nicole Vasquez Schmitt are prosecuting this case on behalf of the government.
The United States Department of Agriculture – Office of Inspector General, The Internal Revenue Service – Criminal Investigation, and the Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Indictment- Indictment
Texas Cocaine Trafficker GuiltyRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that a federal jury in New Haven has found RAUL CHAVEZ, 62, of El Paso, Texas, guilty of conspiracy to possess with intent to distribute five kilograms or more of cocaine.
The trial before U.S. District Judge Jeffrey A. Meyer began on September 7 and the jury returned its verdict this morning.
According to the evidence and testimony at trial, Chavez headed a cocaine trafficking operation that smuggled cocaine from Mexico into El Paso, Texas, and then transported the drug to Connecticut and elsewhere. The investigation revealed that the Chavez organization supplied multiple kilograms of cocaine to Hartford-area distributors for approximately 10 years. The shipments, which would typically be in the range of 30 to 40 kilograms, were sent regularly from El Paso multiple times per year.
In 2014, the Chavez organization attempted to find an additional source of supply for its Hartford area cocaine customers. In July 2014, a DEA confidential source met Andrew Duron, also known as “Chavo,” in North Carolina. During the meeting, Duron told the confidential source that he wanted to purchase up to 50 kilograms of cocaine for $28,000 per kilogram. In August 2014, Duron, the confidential source and an undercover DEA agent met in New Jersey where Duron agreed to purchase 25 kilograms of cocaine for $700,000.
The investigation revealed that this cocaine shipment was destined for Tyshawn Welborn, also known as “Black,” of Bloomfield, and Todd Vernon of Hartford, the latter of whom prepaid for approximately 13 kilograms of cocaine.
On August 22, 2014, Chavez and others met with Welborn at a restaurant in East Windsor where they discussed the pick-up of money from Welborn the following day and its delivery to a location to be determined.
On August 23, 2014, Duron met the undercover DEA agent at a location in Wethersfield. Duron told the undercover agent that his associates were in Connecticut and that Duron and the undercover agent would need to travel to a location near Bradley International Airport to verify that the money was in place. Duron and the undercover agent then drove in separate vehicles to a store parking lot on Kennedy Road in Windsor. Duron met with Chavez and another associate in the store. A short time later, a third associate arrived in a Jeep Wrangler, met the undercover agent in the parking lot, showed him a duffel bag and said it contained “half” of the money. Shortly thereafter, investigators arrived at the scene and arrested Duron, Chavez and his associates.
Investigators recovered from the Jeep a duffel bag containing approximately $284,000 in cash, and a loaded .38 caliber revolver. The cash had been picked up from Welborn earlier that day.
After word reached Chavez’s son, Christopher Chavez, that his father and others had been arrested, Christopher Chavez coordinated the diversion of a shipment of 34 kilograms of cocaine, which was en route to Connecticut, to a high-level drug distributor in Cleveland, Ohio.
Chavez has been detained since his arrest. Judge Meyer scheduled sentencing for December 8, 2021, at which time Chavez faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
Chavez initially admitted his role in this conspiracy and pleaded guilty to the charge in March 2016. In January 2017, shortly before Chavez was scheduled to be sentenced, he moved to withdraw his guilty plea. Judge Meyer denied the motion and sentenced Chavez to 12 years of imprisonment and ordered him to pay a $250,000 fine. Chavez successfully appealed the decision, the conviction and sentenced were vacated, and the case proceeded to trial.
Duron, Welborn, Vernon and Christopher Chavez were convicted of related charges.
This investigation was conducted by the Drug Enforcement Administration’s Hartford Task Force, including officers from the Wethersfield, Bristol, Hartford, Manchester, New Britain and Newington Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Brian P. Leaming and A. Reed Durham through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Taunton Man Indicted on Child Exploitation OffensesRead the Press Release
BOSTON – A Taunton man was indicted today by a federal grand jury in connection with sexual exploitation of children and distribution of child pornography.
Cody Mercure, 24, was charged with one count of sexual exploitation of children and one count of distribution of child pornography. Mercure is currently in state custody and will appear in federal court at a later date.
According to the indictment, between Dec. 29, 2020 and April 3, 2021, Mercure engaged in and recorded sexually explicit conduct with a toddler. On Jan. 16, 2021, Mercure allegedly distributed child pornography.
The charge of sexual exploitation of children provides a sentence of at least 15 years and up to 30 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. The charge of distribution of child pornography provides for a sentence of at least five years and up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Valuable assistance was also provided by the Rhode Island State Police and the Taunton Police Department. Assistant U.S. Attorney Elianna J. Nuzum of Mendell’s Major Crimes Unit is prosecuting the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. 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 details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Smith County Lawyer Sentenced for Federal Employment Tax ViolationsRead the Press Release
TYLER, Texas – A Tyler attorney has been sentenced to prison for federal employment tax violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
John Bennett White IV, 61, pleaded guilty on Feb. 1, 2021, to failure to pay employment taxes and was sentenced to 18 months in federal prison today by U.S. District Judge J. Campbell Barker.
“Although Mr. White withheld payroll taxes from his employees’ paychecks, he spent the money on himself rather than pay it forward to the government,” said Acting U.S. Attorney Nicholas J. Ganjei. “Mr. White also concealed assets in the names of other people and altered the law firm’s books to hide his fraud, all to the detriment of his honest, tax-paying, fellow Americans.”
According to court documents and statements made in court, White was an attorney and firm manager for a Tyler law firm, J. Bennett White, P.C., where White had significant control over the finances of the firm and had a duty to account for and pay over the employment taxes on behalf of the firm’s employees to the IRS.
Between the second quarter of 2007 and the fourth quarter of 2015, White made sporadic and partial efforts to pay his firm’s employment tax liabilities. For multiple quarters during the same period White caused employment taxes to be withheld from the law firm’s employees’ wages, but willfully failed to fully pay those trust fund taxes of to the IRS. White filed Forms 941 reporting the law firm’s employment taxes for each of these quarters. White paid the full amount owed the IRS for 24 of those 38 quarters. White made partial payments on 10 occasions and no payment for seven quarters. In total, White caused a tax loss of over $300,000. Instead of paying employment taxes, White paid other creditors and his own personal expenses.
This case was investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Ryan Locker.
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Schuylkill County Man Charged with Drug Trafficking and Firearm OffensesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Aaron Walter Gray, age 36, of Frackville, Pennsylvania, was indicted yesterday by a federal grand jury for drug trafficking and firearms offenses.
According to Acting United States Attorney Bruce D. Brandler, the indictment charges Gray with possessing with the intent to distribute quantities of methamphetamine, heroin, and fentanyl, and possessing a pistol with an obliterated serial number in furtherance of trafficking heroin. The indictment further charges Gray with possessing two additional firearms and a quantity of ammunition while knowing that he had previously been convicted of a felony.
The matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the United States Marshals Service, the Pennsylvania State Police, the Schuylkill County District Attorney’s Office, the Snyder County District Attorney’s Office, the Schuylkill County Drug Task Force, and the Frackville Borough Police Department. Assistant United States Attorney James M. Buchanan is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for these offenses is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Saugus Man Pleads Guilty to Drug and Firearm OffensesRead the Press Release
BOSTON – A Saugus man pleaded guilty yesterday to drug and firearm offenses.
Vinicius Teixeira, a/k/a “Vinny,” 31, pleaded guilty to possession with intent to distribute controlled substances, including marijuana and psilocyn, and being a user of controlled substances in possession of a firearm and ammunition. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for Oct. 25, 2021. Teixeira was indicted in April 2019.
In March 2019, a search of Teixeira’s residence recovered at least one kilogram of marijuana, over 400 grams of mushrooms (dry) containing psilocyn, drug trafficking paraphernalia and an American Tactical 9mm semiautomatic pistol containing 11 rounds of 9mm ammunition.
The charge of possession with intent to distribute controlled substances provides for a sentence of up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of up to $1 million. The charge of being a user of controlled substances in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement. The Suffolk County Sheriff’s Department and the Revere, Everett and Chelsea Police Departments provided assistance with the investigation. Assistant U.S. Attorneys Corey Steinberg and Kaitlin R. O’Donnell of Mendell’s Organized Crime and Gang Unit are prosecuting the case.
Saratoga County Sex Offender Pleads Guilty to Child Pornography ChargesRead the Press Release
ALBANY, NEW YORK – Zachary L. Duchesne, age 25, of Stillwater, New York, pled guilty today to seven counts of transportation of child pornography and one count of possessing child pornography.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Matthew Scarpino, Acting Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
Duchesne admitted to using a Dropbox account to store, possess and view images and videos depicting the sexual abuse of children, between December 26, 2017 and June 23, 2019. He admitted to periodically transferring child pornography videos into his Dropbox account, and to using the stored child pornography as a form of “currency” to trade with other people.
Duchesne has been in custody since his arrest on July 15, 2020.
Duchesne, who has a prior conviction relating to the possession of child pornography, faces at least 15 years and up to 40 years in prison, and at least 5 years of post-imprisonment supervised release, when Senior United States District Judge Thomas J. McAvoy sentences him on January 11, 2022. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Duchesne would also have to register as a sex offender upon his release from prison.
This case was investigated by HSI, with assistance from the Stillwater Police Department, and is being prosecuted by Assistant U.S. Attorney Michael Barnett as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Richmond Assisted Living Facility Owner Pleads Guilty to Health Care FraudRead the Press Release
RICHMOND, Va. –The former owner of a Richmond-based assisted living facility pleaded guilty today to health care fraud after diverting over $800,000 in federal and state benefits that were intended to pay for the care of the facility’s residents.
“For more than three years, the defendant stole essential benefits entrusted to her facility for the care of its elderly and infirm residents,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “While the vulnerable residents of her facility suffered through dreadful living conditions, the defendant selfishly used their benefits to pay for her own debts, travel, and gambling expenses in Atlantic City and Las Vegas. Today’s guilty plea demonstrates that those who abuse the trust placed in them to care for our elderly and infirm will be held accountable for their egregious crimes.”
“Representative payees for elderly and incapacitated adults who are legally incapable of managing their own funds fulfill a critical role in ensuring that the Social Security benefits are used to provide for the needs of this vulnerable community,” said Gail S. Ennis, Inspector General for the Social Security Administration. “We will aggressively pursue those who knowingly game the system for personal gain, and we will work to recover funds for SSA and all taxpayers. I want to thank our law enforcement partners for working with us and the U.S. Attorney’s Office for prosecuting this individual.”
According to court documents, Mable B. Jones, 78, of Richmond, owned and operated Jones & Jones, an assisted living facility complex that served primarily elderly and incapacitated adults. For residents who were legally incapable of managing their own funds, Jones & Jones served as a representative payee and regularly received state and federal benefit payments on behalf of those residents. Representative payees are required to use Social Security benefits to provide for the beneficiary’s needs, including food, clothing, housing, and medical care. Representative payees, moreover, are specifically prohibited from using Social Security benefits for anything other than the beneficiary’s needs. Similar requirements also apply to auxiliary grants issued by the Commonwealth of Virginia’s Department for Aging and Rehabilitative Services.
Beginning around December 2015 and continuing through the facility’s closure in the spring of 2019, Jones converted more than $800,000 of the residents’ federal and state benefits for her own personal use. Jones used the residents’ benefits to satisfy her personal debts, including her mortgage and bankruptcy payments, and to fund her personal travel, retail purchases, and gambling expenses, including at casinos in Atlantic City, New Jersey, and Las Vegas, Nevada.
Jones’s diversion of resident benefits led to significant and persistent deficiencies in the facilities, care, and services provided to Jones & Jones residents, including deficiencies that endangered residents’ health and safety. These conditions ultimately prompted state and federal audits of the facility before its closure, during which Jones made false statements about her conversion and use of resident funds.
Jones is scheduled to be sentenced on Jan. 11, 2022. She faces a maximum penalty of 10 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.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; and Michael McGill, Special Agent-in-Charge, Social Security Administration Office of the Inspector General, Philadelphia Field Division, made the announcement after U.S. District Judge M. Hannah Lauck accepted the plea.
Assistant U.S. Attorneys Kaitlin G. Cooke and Shea Gibbons prosecuted the case.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult. It is a term used to describe five subtypes of elder abuse: physical abuse, financial fraud, scams and exploitation, caregiver neglect and abandonment, psychological abuse, and sexual abuse. Elder abuse is a serious crime against some of our nation’s most vulnerable citizens, affecting at least 10 percent of older Americans every year. Together with our federal, state, local, and tribal partners, the Department of Justice is steadfastly committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, research, victim services, and public awareness. This holistic and robust response demonstrates the Department’s unwavering dedication to fighting for justice for older Americans.
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. 3:21-cr-30.
Registered Sex Offender Admits Possessing Child PornographyRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man admitted possessing multiple images and videos of child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced today.
Robert Klemt, 34, of Wayne, New Jersey, pleaded guilty by videoconference before U.S. District Judge Katharine S. Hayden on Sept. 14, 2021, to an information charging him with one count of possession of child pornography.
According to documents filed in this case and statements made in court:
In June 2020, agents with the Department of Homeland Security – Homeland Security Investigations approached Klemt at his residence after receiving information that Klemt had accessed a website containing child pornography. Law enforcement subsequently discovered over 70 images and videos depicting child sexual abuse on Klemt’s laptop computer.
Klemt was previously convicted of endangering the welfare of a child/distribution of child pornography in Essex County in 2014.
The charge of possession of child pornography, for a repeat offender, carries a mandatory minimum term of 10 years in prison, a maximum of 20 years in prison, and a $250,000 fine. Sentencing is scheduled for Jan. 19, 2022.
Acting U.S. Attorney Honig credited special agents with the DHS-HSI, under the direction of Special Agent in Charge Jason J. Molina in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.
Recidivist Child Sex Offender from Philadelphia Sentenced to 55 Years for Exploiting Two Young ToddlersRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Justyn Perez-Colon, 27, of Philadelphia, PA, was sentenced today to 55 years in prison, and lifetime supervised release by United States District Judge E.K. Pratter for his sexual abuse and exploitation of two young toddlers in his care, his production and distribution of child pornography involving those same toddlers, and his collection of hundreds of images of child pornography that he obtained from the internet. At the time he committed these federal crimes, the defendant was a recidivist child sex offender, having previously sexually abused a young family member for more than eight years, beginning when the child was just seven years of age.
In September 2019, the defendant pleaded guilty to a federal Indictment, which charged him with two counts of production of child pornography, distribution of child pornography, five counts of attempted distribution of child pornography, and possession of child pornography.
This federal investigation began in February 2018, when Perez-Colon posted an advertisement on Craigslist seeking to connect with other child sex offenders to trade stories and child pornography. An undercover FBI agent responded to his posting. During their communications over the next few days, the defendant admitted to sexually abusing a young family member for years, and also confessed that he was currently sexually abusing a young girl in his care. The defendant sent photographs and video of him sexually abusing the one-year old girl, including images of his horrific abuse of this child was she was sleeping.
On February 14, 2018, within 24-hours of receiving the pornographic images of Perez-Colon’s abuse of the child, the Federal Bureau of Investigation identified and arrested him. His cell phone was also seized and examined, and found to contain additional videos of Perez-Colon sexually abusing the 1-year-old girl, in addition to evidence that he was also sexually exploiting a different toddler with whom the defendant had a personal relationship.
The subsequent investigation by the FBI revealed that the defendant not only sexually abused and exploited the two toddler victims, but he also distributed their images and videos out over the Internet to other child sex offenders for their sexual gratification. The FBI identified Timothy O’Connell, a Villanova University Campus Minister, and Michael Meacham, a West Chester University student, both of whom communicated online with the defendant, and requested and received sexually explicit images from him. Both of these child sex offenders were prosecuted and pleaded guilty to federal charges of receipt of child pornography. O’Connell was sentenced in November 2019 to 6 ½ years in prison. Meacham is awaiting the imposition of his sentence.
In September 2019, defendant Perez-Colon pleaded guilty to the federal Indictment, which charged him with two counts of production of child pornography, distribution of child pornography, five counts of attempted distribution of child pornography, and possession of child pornography.
“Child pornography and exploitation offenses are among the most horrific crimes prosecuted by this Office,” said Acting U.S. Attorney Williams. “But this case is particularly disturbing due to Perez-Colon’s history as a previously convicted sex offender and the very young ages of his victims. I have no doubt that our community is safer with Perez-Colon and his criminal associates behind bars, and my heartfelt thanks goes out to the fast-acting agents at the FBI who worked quickly to identify and arrest the defendant so he could no longer hurt anyone else.”
“The criminal acts to which Justyn Perez-Colon admitted are stomach-churning,” said Bradley S. Benavides, Acting Special Agent in Charge of the FBI’s Philadelphia Division. “He sexually abused two toddlers, documenting and sharing images of that exploitation. It was imperative that the FBI swiftly take him off the street. Unequivocally, our community is safer with Perez-Colon behind bars, locked away where he can’t victimize anyone else’s child.”
The case was investigated by the Federal Bureau of Investigation, with assistance from the Horsham Police Department and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Priya T. De Souza.
Reality TV star sentenced for PPP fraud and for operating a multimillion-dollar Ponzi schemeRead the Press Release
ATLANTA - Maurice Fayne, who starred in Love & Hip Hop: Atlanta, has been sentenced to more than 17 years in federal prison for conspiracy and wire fraud related to a Ponzi scheme, and for bank fraud, and making false statements to a financial institution related a fraudulent Paycheck Protection Program (PPP) loan application.
“Fayne planned to use the PPP program as a cover for his long-running Ponzi scheme,” said Acting U.S. Attorney Kurt R. Erskine. “The funds the program supplies serve as a lifeline to many businesses desperately trying to stay afloat during the pandemic, and unfortunately his fraud helped deplete those precious dollars.”
“This sentence should serve notice that the FBI and our federal partners will investigate anyone who misdirects federal emergency assistance earmarked for businesses who need it to stay afloat,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “We won’t tolerate anyone driven by personal greed to pocket American taxpayer money that should be going to those who need it.”
“Lying to gain access to SBA’s pandemic response programs is not without consequence,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “OIG will relentlessly pursue evidence of fraud against SBA’s programs aimed at assisting the nation’s small businesses struggling with the pandemic challenges. I want to thank the U.S. Attorney’s Office for its leadership and dedication to pursuing justice.”
According to Acting U.S. Attorney Erskine, the charges, and other information presented in court: From March 2013 through May 2020, Fayne ran a multistate Ponzi scheme that defrauded more than 20 people who invested in his trucking business. Fayne promised that he would use the investors’ money to operate the business. Instead, he used the money to pay his personal debts and expenses and to fund an extravagant lifestyle for himself. During the scheme, Fayne spent more than $5 million at a casino in Oklahoma.
In April 2020, Fayne submitted a $3.7 million PPP loan application to United Community Bank, falsely claiming that his trucking business had 107 employees and an average monthly payroll of $1,490,200. Fayne promised to use the PPP loan proceeds to retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments related to his trucking business. Instead, Fayne used the PPP loan proceeds for improper purposes, including the following:
• $40,000 for past-due child support;
• $50,000 for restitution owed in a previous fraud case;
• $65,000 in cash withdrawals;
• $85,000 for custom-made jewelry;
• $136,000 to lease a Rolls-Royce;
• $230,000 to associates who helped him run a Ponzi scheme;
• $907,000 to start a new business in Arkansas.Maurice Fayne, a/k/a Arkansas Mo, 38, of Dacula, Georgia, was sentenced by U.S. District Judge Mark H. Cohen to 17 years, six months in prison to be followed by five years of supervised release and ordered to pay restitution in the amount of $4,465,865.55 to the victims. Fayne was convicted on these charges on May 11, 2021, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation and the Small Business Administration-Office of Inspector General.
Assistant U.S. Attorneys Russell Phillips and Bernita Malloy prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Randolph County man admits to methamphetamine chargeRead the Press Release
ELKINS, WEST VIRGINIA – Billy Ray Shamblin, II, of Elkins, West Virginia, has admitted to a drug charge, Acting U.S. Attorney Randolph J. Bernard announced.
Shamblin, 37, pleaded guilty today to one count of “Distribution of Methamphetamine.” Shamblin admitted to selling methamphetamine, also known as “crystal meth” and “ice,” in February 2020 in Randolph County.
Shamblin faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Mountain Region Drug Task Force investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Quebec Resident Sentenced to 30 Months in Prison for Multimillion Dollar Telemarketing SchemeRead the Press Release
SAN FRANCISCO – Athanasios Vouloukos was sentenced yesterday to imprisonment for 30 months for his role in a five year conspiracy to commit mail fraud that deceived thousands of United States businesses, announced Acting United States Attorney Stephanie M. Hinds, U.S. Postal Inspection Service Inspector in Charge Rafael Nunez, and Internal Revenue Service, Criminal Investigation Special Agent in Charge Michael Daniels. As part of his sentence, Vouloukos will be ordered to pay at least $1.4 million in restitution to his victims. The sentence was handed down by the Honorable Susan Illston, United States District Judge.
Vouloukos, 48, of Ville St. Laurent, Quebec, Canada, pleaded guilty to the mail fraud conspiracy charge on January 28, 2020. According to his plea agreement, Vouloukos admitted that he and others took part in a Canada-based telemarketing scheme over a five year period to defraud small United States businesses into paying for a service that purported to enhance their online profile. The service was variously described as “business listing optimization,” “business profile optimization” and “online business listing optimization.” In reality, no such service existed.
As described in his plea agreement, Vouloukos operated a call center in Canada with his co-conspirator. United States businesses were cold-called from Canada in conjunction with sending them bogus invoices. The telemarketing scheme involved calling the businesses about the fraudulent invoices and falsely asserting that the businesses had ordered the “business listing optimization” service or other phony service and therefore owed the invoice amount. Over the five year period, thousands of small United States businesses paid approximately $500 each for these non-existent services. Victims were directed to mail their checks to addresses in the United States. These addresses were United Parcel Service (UPS) mailboxes or virtual offices, including one at a San Francisco UPS store, which were instructed to forward the mail to Canada. The majority of the proceeds were ultimately deposited into Canadian bank accounts.
According to a memo filed by the government for sentencing, Vouloukos and others collected more than $3 million in victim deposits. While Vouloukos agreed in his plea agreement to pay at least $1.4 million in restitution, the Court ordered a restitution hearing on October 8, 2021, to determine the full amount of restitution to be paid.
In addition to his 30 month prison sentence for mail fraud conspiracy in violation of 18 USC § 1349, United States District Judge Illston sentenced Vouloukos to a three-year period of supervision following his release from prison.
Vouloukos was ordered to surrender immediately into custody.
The case is being prosecuted by the Corporate and Securities Fraud section of the U.S. Attorney’s Office. The prosecution is the result of an investigation by the United States Postal Inspection Service and IRS Criminal Investigation.
Previously Deported Alien Charged with Illegal Re-EntryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today a federal grand jury in Harrisburg charged Joel Luis-Aguilar, age 53, with illegal re-entry into the United States by a previously deported alien.
According to Acting United States Attorney Bruce D. Brandler, Luis-Aguilar was previously deported from the United States to Mexico in April 2014. He is alleged to have illegally reentered the United States again sometime after April 2014 and was found in the United States in Adams County, Pennsylvania after eluding examination or inspection by immigration officers.
This matter was investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO) and is being prosecuted by Assistant United States Attorney Joanne M. Sanderson.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Luis-Aguilar faces a maximum penalty of 2 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Philadelphia Man Sentenced for Possession of Twenty Automatic Machineguns with Counterfeit After-Market Parts Making Them Capable of Firing 1,200 Rounds in 60 SecondsRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Ayende Alvarado, 40, of Philadelphia, PA, was sentenced today to 6 years and 6 months in prison without the possibility of parole, and three years of supervised release by United States District Court Judge Juan R. Sánchez for multiple firearms offenses including possession of a machinegun.
In May 2021, Alvarado pleaded guilty to a Superseding Indictment charging offenses including possession of a machinegun, possession of a firearm by a felon, and possession of a firearm not registered in the National Firearms Registration and Transfer Record. The charges stem from an incident in July 2019, during which Customs and Border Protection (CBP) officers at JFK International Airport intercepted a package from China containing 20 counterfeit Glock auto-switches addressed to defendant’s home in Pennsylvania. The auto-switches are essentially conversion devices designed and created for the sole purpose of converting semi-automatic Glock pistols into fully automatic machineguns. When properly installed on a semi-automatic Glock pistol, these devices allow the firearm to expel more than one projectile by a single pull of the trigger, at a staggering rate of approximately 1,200 rounds per minute.
Following that discovery, agents with the Department of Homeland Security, Philadelphia Police detectives and members of the Philadelphia Police Department S.W.A.T Unit, executed a federal search and seizure warrant on the 3000 block of North 7th Street in Philadelphia. A search of a residence there revealed the presence of numerous firearms and ammunition, including the 20 counterfeit Glock auto-switches manufactured in China.
“The defendant had the supplies to put large-capacity, automatic weapons on the streets of Philadelphia, significantly contributing to the violent crime problem in our city,” said Acting U.S. Attorney Williams. “We are nearly six months into our ‘All Hands On Deck’ initiative; six months of working with our law enforcement partners nearly around the clock to put criminals like Alvarado behind bars where they can no longer contribute to the violence on the streets of our city.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Department of Homeland Security, United States Customs and Border Protection, United States Postal Inspection Service, the Bureau of Alcohol Tobacco, Firearms and Explosives, and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney José R. Arteaga.
Pembroke Man Sentenced to 10 Years for Distributing and Possessing Child Sexual Abuse MaterialRead the Press Release
CONCORD - Erik Bjork, 38, of Pembroke, was sentenced on Tuesday to 10 years in federal prison for distribution and possession of child sexual abuse material, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in May of 2019, officers with the New Hampshire Internet Crimes Against Children Task Force were conducting online investigations into individuals utilizing peer-to-peer networks (P2P) to share known images of child sexual abuse material on the internet. On May 10, 2019, a detective with the Portsmouth Police Department was able to download five files from a target IP address. Additional monitoring of the target IP address showed more files, all indicative of child sexual abuse material available for download.
The IP address was traced to Bjork’s address in Pembroke. A search warrant was executed and a laptop was seized that contained over 1,600 files of child sexual abuse material, many involving infants and toddlers. Bjork admitted to using P2P networks to obtain and share child sexual abuse material.
Bjork previously pleaded guilty on May 27, 2021. In addition to his prison sentence, Bjork was ordered to pay $15,000 in restitution and over $5,000 in special assessments.
“Child sexual abuse crimes exploit vulnerable young children,” said Acting U.S. Attorney Farley. “By distributing and possessing troubling images of infants and toddlers, this defendant further victimized the children in these images. Such conduct is unacceptable. As this case demonstrates, we will not hesitate to seek substantial prison sentences for those who commit child sexual abuse crimes.”
“The possession and distribution of child exploitation images perpetuates horrific crimes against children,” said Matthew Millhollin, Special Agent in Charge for the Homeland Security Investigations’ Boston Field Office. “We are grateful to our task force partners for the assistance and expertise that make cases like this possible and allow us to remove perpetrators from our communities.”
“The New Hampshire Internet Crimes Against Children Task Force will continue to be vigilant with both reactive and proactive investigations in an effort to ensure the safety of the children of New Hampshire,” said Eric Kinsman, Commander of the New Hampshire Internet Crimes Against Children Task Force. “NH ICAC is proud to partner with our local and federal law enforcement partners and is thankful for the tireless efforts of the Department of Justice and the US Attorney’s Office.”
This matter was investigated by the New Hampshire Internet Crimes Against Children Task Force, Homeland Security Investigations, the New Hampshire State Police, and Pembroke Police Department. The case was prosecuted by Assistant U.S. Attorney Kasey Weiland.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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