Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
26 October 2021
Illinois Man Sentenced to 15 Years in Prison for Sex Trafficking Two Victims Deceived with Promises of Help with Their Modeling CareersRead the Press Release
LOS ANGELES – A Chicago man has been sentenced to 180 months in federal prison for luring two victims – both of whom were 19 at the time – from Canada with promises of promoting their modeling careers, but instead used force, fraud and coercion to cause the victims to engage in commercial sex acts, the Justice Department announced today.
Jerome Terry Jr., 45, was sentenced by United States District Judge Otis D. Wright II, who described Terry as “a danger to unsuspecting members of the public” and further remarked that a “lengthy term of incarceration is needed to protect the public.”
Terry pleaded guilty on July 19 to one count of conspiracy to engage in sex trafficking.
Along with two co-conspirators, Terry set up a purported modeling management company called CanadianGirlzRock, Inc. to lure aspiring models to Los Angeles and other locations with the promise of modeling careers. In fact, Terry “intended and planned to recruit, entice, and transport the women to Los Angeles, or other locations, and to harbor, provide, obtain, and maintain the women to engage in commercial sex acts,” according to court documents.
After seeing photos of the first victim on social media, Terry contacted the woman, telling her she could come to Los Angeles to work as a model and event host. After the woman arrived in late April 2014, Terry used force, threats of force, fraud, and coercion to cause the victim to engage in commercial sex acts. The victim engaged in commercial sex acts with four clients over approximately four days until Los Angeles Police officers rescued her.
Terry contacted the second woman in late 2014 after seeing photos of her online and told her he would help with her modeling career. Terry told the victim she would need to perform acts of prostitution to make money to support her modeling career, but that the proceeds would be put toward her modeling or given to her to send to her family.
After the woman traveled to Los Angeles in early 2015, Terry used means of fraud – including the false and deceptive promises that he would put money from B.E.’s prostitution toward her modeling career or make the money available for her to send to her family – to cause the victim to engage in commercial sex acts with approximately 40 clients over approximately 10 days. When the victim asked Terry about the money, Terry became angry and broke her phone.
Terry has been in federal custody since his extradition from Canada in 2019. Two co-conspirators originally charged with Terry in this case have entered into diversion agreements.
Homeland Security Investigations investigated this matter, with the Los Angeles Police Department and the Royal Canadian Mounted Police providing substantial assistance.
Assistant United States Attorneys Wilson Park of the Terrorism and Export Crimes Section, Devon Myers of the Cyber and Intellectual Property Crimes Section, and Maria Jhai of the General Crimes Section prosecuted this case.
Hudson County Man Found Guilty of Distributing Heroin and Fentanyl in Prison, Resulting in Inmate OverdoseRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man was convicted today for his role in trafficking heroin and fentanyl into a New Jersey state prison, resulting in the overdose of one of the inmates, Acting U.S. Attorney Rachael A. Honig announced.
Noel Salgado, aka “Kuko,” 41, was convicted of one count of conspiracy to distribute and possess with intent to distribute heroin and fentanyl and one count of distribution and possession with intent to distribute heroin and fentanyl, which resulted in serious bodily injury, following a four-day trial before U.S. District Judge William J. Martini in Newark federal court. The jury did not reach a unanimous verdict against co-defendant Rodgerick Garrett.
According to the documents filed in this case and the evidence at trial:
While incarcerated at Bayside State Prison, Salgado directed associates to provide narcotics proceeds to him and his associates and to smuggle narcotics into prison to distribute to other inmates.
On Oct. 17, 2015, Salgado called an associate from prison to arrange for the purchase and smuggling into the prison of heroin and fentanyl. Another conspirator picked up the narcotics and smuggled them to Salgado on Oct. 18, 2015. The following day, an inmate to whom Salgado had distributed the narcotics was found unresponsive in his cell suffering from a drug overdose. The inmate stopped breathing on his own and remained unconscious for approximately 20 minutes before medical personnel administered Narcan to revive him. The inmate was hospitalized for two days.
The charge of distribution and possession with intent to distribute heroin and fentanyl, resulting in serious bodily injury, on which the defendant was convicted carries a mandatory minimum penalty of 20 years in prison, and a maximum potential penalty of life in prison, and a maximum $1 million fine. The conspiracy charge on which he was convicted carries a maximum potential penalty of 20 years in prison.
Acting U.S. Attorney Honig credited Special Agents with the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., and investigators with the N.J. Department of Corrections under the direction of Acting Commissioner Victoria L. Kuhn, with the investigation leading to today’s conviction.
The government is represented by Assistant U.S. Attorneys Christopher D. Amore and Elaine K. Lou of the U.S. Attorney’s Office in Newark.
Hermitage Man Pleads Guilty to Drug Conspiracy ChargeRead the Press Release
PITTSBURGH – Harold Hooten pled guilty to conspiring to distribute cocaine base in 2020 and 2021, Acting United States Attorney Stephen R. Kaufman announced today.
Hooten, age 44 of Hermitage, Pennsylvania, pleaded guilty before United States District Judge Cathy Bissoon. Judge Bissoon scheduled sentencing to occur on February 28, 2022, at 10:00 a.m.
The law provides for a sentence of up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed is to be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Federal Bureau of Investigation, the Drug Enforcement Administration, the Pennsylvania Attorney General’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Pennsylvania State Police, the Lawrence County Drug Task Force, the Mercer County Drug Task Force, the New Castle Police Department, the Sharon Police Department, the Hermitage Police Department, and the Farrell Police Department led the investigation resulting in the conviction in this case.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Hanover Paving Company Owner Agrees to Plead Guilty to Tax EvasionRead the Press Release
BOSTON – The owner of a commercial and residential paving business in Hanover has been charged and has agreed to plead guilty in connection with an income diversion scheme.
William E. Dyer, 56, has agreed to plead guilty to one count of tax evasion. A plea hearing has not yet been scheduled by the court.
According to the charging document, Dyer owned and operated Pilgrim Paving. From 2014 through 2018, Dyer allegedly diverted payments from Pilgrim Paving customers by directing customers to write checks to him and then cashing those checks. Dyer failed to report over $1.7 million in diverted receipts and additional business deposits on the tax returns that he filed or that he directed a tax preparer to file on his behalf. As a result of this alleged conduct, Dyer underreported his personal income tax obligations, causing a loss to the Internal Revenue Service of nearly $600,000.
The charge of tax evasion provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement. Assistant U.S. Attorney David M. Holcomb of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Golden Meadow Man Pleads Guilty to Possession of Child Sexual Abuse MaterialRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that EVERETT J. DILLON (“DILLON”), age 34, of Golden Meadow, Louisiana, pled guilty today to Possession of Materials Involving the Sexual Exploitation of Children in violation of Title 18, United States Code, Sections 2252(a)(4)(B) and (b)(2).
According to documents filed in federal court, the case against DILLON developed as a result of a lead to the Louisiana Bureau of Investigation (“LBI”) that a KIK user had sent explicit videos of children, aged approximately ten (10) years of age. On December 1, 2020, Homeland Security Investigations (“HSI”) special agents along with the LBI executed a search warrant at DILLON’s home in Golden Meadow. Agents advised DILLON of his Miranda rights and, after waiving his rights, DILLON admitted that the KIK account and email address were his and that he stored child pornography on his electronic equipment. HSI computer forensic examiners located over 4,000 images and videos depicting the sexual victimization of children on the defendant’s AT&T cellular phone. The images and videos depict pre-pubescent girls, including toddlers, engaged in sexual acts with adults.
DILLON faces a mandatory minimum sentence of ten (10) years and a maximum sentence of twenty (20) years imprisonment, and/or a fine of $250,000.00, or the greater of twice the gross gain to the defendant or twice the gross loss to any person of the offense under Title 18, United States Code, Section 3571, and a $100.00 mandatory special assessment fee. Sentencing in this matter is scheduled for January 25, 2022 at 2:00 pm, before United States District Judge Wendy B. Vitter.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Louisiana Bureau of Investigation and the U.S. Department of Homeland Security, Homeland Security Investigations with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit.
Fort Hall Man Sentenced to over 27 Years for MurderRead the Press Release
POCATELLO – A Fort Hall man was sentenced to 327 months in federal prison for the second degree murder of Austin Pevo.
According to court records and evidence presented at trial, on February 3, 2018, Austin Pevo, 23, was dropped off by his mother at a residence on the Fort Hall Indian Reservation for work cutting firewood. Testimony at trial showed that Justin Beasley, 27, of Fort Hall, and others were at the residence at that time. Beasley and Pevo had an argument and Beasley stabbed Pevo twice in the chest with a knife. Beasley and two other men took Pevo’s body to an isolated area in Arbon Valley.
Pevo’s family reported him missing and the Fort Hall Police Department investigated but was unable to locate any information on Pevo’s whereabouts.
A witness to the events of February 3, 2018, came forward to the Fort Hall Police in August 2019, and reported that Pevo had died on that date and three men who had been at the house removed his body. The Federal Bureau of Investigation (FBI) executed a search warrant at the residence and found evidence that Pevo had died there. One of the men who helped hide the body admitted to his involvement and took FBI agents to the location of Pevo’s remains in Arbon Valley. The agents recovered Pevo’s remains along with clothing and other personal items. DNA testing showed that the remains were those of Pevo.
Chief U.S. District Judge David C. Nye also ordered Beasley to serve an additional five years of supervised release upon completion of his sentence. Beasley was convicted following a jury trial which concluded on August 5, 2021.
Acting U.S. Attorney Gonzalez said, “Prosecuting violent crimes in Indian Country is a priority for my office, and I hope this sentence brings some amount of closure and justice to the victim’s family.” He also praised the Federal Bureau of Investigation and the Fort Hall Police Department for their exemplary and thorough investigation of this crime. “Their complementary partnership resulted in the successful prosecution and sentencing of Beasley for this senseless murder. This office and our law enforcement partners are committed to prosecuting aggressively cases involving violent acts committed against Native Americans residing on reservation lands within Idaho,” Mr. Gonzalez added.
###
Former Pittsburgh-area Doctor Pleads Guilty to Unlawfully Prescribing Opioids in Exchange for Sex, Health Care FraudRead the Press Release
PITTSBURGH, PA - A former Pittsburgh-area physician pleaded guilty in federal court to violating federal narcotics and health care laws, Acting United States Attorney Stephen R. Kaufman announced today.
Emilio Ramon Navarro, 60, of Coal Center, Pennsylvania, 15423 pled guilty to one count of unlawful distribution of oxycodone and one count of health care fraud before United States District Judge J. Nicholas Ranjan. Navarro also accepted responsibility for eight additional counts of unlawful distribution of Schedule II controlled substances.
In connection with the guilty plea, the court was advised that Navarro was a licensed physician in the Commonwealth of Pennsylvania and operated private family practices in Mount Pleasant and Perryopolis, Pennsylvania. In 2018, Navarro issued Victim 1 nine prescriptions for a total of 300 dosage units of oxycodone and 240 dosage units of oxymorphone, both Schedule II controlled substances, outside the usual course of professional practice and for no legitimate medical purpose but in exchange for sexual favors. Navarro then submitted fraudulent claims to Medicaid for reimbursement for the unlawfully prescribed prescriptions thereby defrauding Medicaid.
Judge Ranjan scheduled sentencing for March 1, 2022, at 2:00 p.m. The law provides for a total sentence of not more than 20 years in prison, a fine of $1,000,000, or both, for the narcotics conviction. Navarro faces an additional maximum term of imprisonment of not more than 10 years, a fine of $250,000, or both, for the health care fraud conviction. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Robert S. Cessar and Mark V. Gurzo are prosecuting this case on behalf of the government.
The investigation leading to the filing of charges in this case was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit (OFADU). The Western Pennsylvania OFADU, led by federal prosecutors in the U.S. Attorney’s Office, combines the expertise and resources of federal and state law enforcement to address the role played by unethical medical professionals in the opioid epidemic.
The agencies which comprise the Western Pennsylvania OFADU include: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, Pennsylvania Office of Attorney General – Bureau of Narcotic Investigations, United States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration-Office of Criminal Investigations, U.S. Office of Personnel Management – Office of Inspector General and the Pennsylvania Bureau of Licensing.
Former Leader of New Bedford Latin Kings Chapter Sentenced for Racketeering and Cocaine ConspiracyRead the Press Release
BOSTON – A former leader of the New Bedford Chapter of the Massachusetts Almighty Latin King and Queen Nation (Latin Kings) was sentenced today on racketeering and drug charges.
Jose Rodriguez, a/k/a “King Stutter,” 34, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to 54 months in prison and three years of supervised release. On June 15, 2021, Rodriguez pleaded guilty to conspiracy to distribute and possess with intent to distribute cocaine and cocaine base and to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
Rodriguez served as Inca, or leader, of the New Bedford Chapter of the Latin Kings. Rodriguez conspired with other members of the Latin Kings to distribute controlled substances such as cocaine and cocaine base in New Bedford through a series of “trap houses” or multi-unit apartment buildings controlled by the Latin Kings. Following the murder of a Latin Kings member in October 2019, and while serving as Inca of the New Bedford Chapter, Rodriguez was recorded during a Latin Kings meeting instructing members to attack rival gang members without seeking his specific approval for the acts of violence.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Rodriguez is the 38th defendant to be sentenced in the case.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard of Mendell’s Organized Crime and Gang Unit prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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.
Former Bureau of Prisons Corrections Officer Sentenced for Sexually Abusing an Inmate and Witness TamperingRead the Press Release
Eric Todd Ellis, 32, a former Bureau of Prisons (BOP) corrections officer at the FCI-Aliceville facility in Aliceville, Alabama, was sentenced today in federal court in Birmingham, Alabama, to 18 months in prison and five years of supervised release. Ellis previously pleaded guilty to one count of sexual abuse of a ward and one count of tampering with a witness.
According to court documents, on or about June 11, 2020, Ellis knowingly engaged in a sexual act with a female inmate while in the back of the laundry room of the prison. At the time, Ellis was on-duty and acting in his capacity as a corrections officer. The female inmate was in official detention and under Ellis’s custodial authority. Ellis then admitted his conduct to another corrections officer. While the OIG was investigating Ellis’s conduct, Ellis told that corrections officer to lie to OIG. On a recorded call, Ellis said: “Just tell [the OIG agents], yeah, we’re friends, but, I mean, you hadn’t really talked to me about it. And when you have it’s – I’ve just told you that nothing happened.”
“Prison employees who abuse their positions of power to sexually assault individuals in their custody, and then attempt to cover up their crimes, will be held accountable,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division.” The Civil Rights Division will continue to secure justice for sexual assault victims, including those held in the custody and control of law enforcement officials.”
“The sexual abuse of prison inmates by federal corrections officers is intolerable,” said U.S. Attorney Prim F. Escalona of the Northern District of Alabama. “My office will vigorously investigate and prosecute any such officers who violate their oath of office. As today’s sentence makes plain, officers who abuse inmates face significant prison time for their offense.”
“Ellis sexually abused an inmate and then tried to cover it up,” said Special Agent in Charge James F. Boyersmith of the Justice Department’s Office of the Inspector General (OIG) Miami Field Office. “Today’s sentencing sends a clear message that prison staff who abuse their power and assault inmates in their custody will be brought to justice.”
This case was investigated by the Miami Division of the OIG. Executive Assistant U.S. Attorney Robert Posey and Assistant U.S. Attorney Robin Mark of the Northern District of Alabama and Special Litigation Counsel Fara Gold and Trial Attorney Anna Gotfryd of the Civil Rights Division’s Criminal Section prosecuted the case.
Former Bureau of Prisons Corrections Officer Sentenced for Sexually Abusing an Inmate and Witness TamperingRead the Press Release
BIRMINGHAM, Ala. – Eric Todd Ellis, 32, a former Bureau of Prisons (BOP) corrections officer at the FCI-Aliceville facility in Aliceville, Alabama, was sentenced today in federal court in Birmingham, Alabama, to 18 months prison and five years of supervised release. Ellis previously pleaded guilty to one count of sexual abuse of a ward and one count of tampering with a witness.
According to court documents, on or about June 11, 2020, Ellis knowingly engaged in a sexual act with a female inmate while in the back of the laundry room of the prison. At the time, Ellis was on-duty and acting in his capacity as a corrections officer. The female inmate was in official detention and under Ellis’s custodial authority. Ellis then admitted his conduct to another corrections officer. While the OIG was investigating Ellis’s conduct, Ellis told that corrections officer to lie to OIG. On a recorded call, Ellis said: “Just tell [the OIG agents], yeah, we’re friends, but, I mean, you hadn’t really talked to me about it. And when you have it’s – I’ve just told you that nothing happened.”
“Prison employees who abuse their positions of power to sexually assault individuals in their custody, and then attempt to cover up their crimes, will be held accountable,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “The Civil Rights Division will continue to secure justice for sexual assault victims, including those held in the custody and control of law enforcement officials.”
“The sexual abuse of prison inmates by federal corrections officers is intolerable,” said U.S. Attorney Prim F. Escalona of the Northern District of Alabama. “My office will vigorously investigate and prosecute any such officers who violate their oath of office. As today’s sentence makes plain, officers who abuse inmates face significant prison time for their offense.”
“Ellis sexually abused an inmate and then tried to cover it up,” said Special Agent in Charge James F. Boyersmith of the Justice Department’s Office of the Inspector General (OIG) Miami Field Office. “Today’s sentencing sends a clear message that prison staff who abuse their power and assault inmates in their custody will be brought to justice.”
This case was investigated by the Miami Division of the OIG. Executive Assistant U.S. Attorney Robert Posey and Assistant U.S. Attorney Robin Mark of the Northern District of Alabama and Special Litigation Counsel Fara Gold and Trial Attorney Anna Gotfryd of the Criminal Section of the Civil Rights Division of the Department of Justice prosecuted the case.
Florida Man Sentenced to Prison for Tax OffensesRead the Press Release
BOSTON – A Florida man was sentenced today in federal court in Springfield for tax offenses.
Cory Kizer, 39, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 15 months in prison and two years of supervised release. On May 13, 2021, Kizer pleaded guilty to one count of conspiracy to commit wire fraud and eight counts of theft of public money.
Kizer obtained personal identifying information for the purpose of filing false federal tax returns and obtaining unwarranted tax refunds. The tax returns contained false addresses, wages and salaries, employers, dependents, business and loss information. The false returns generated a total of over $550,000 of unwarranted tax refunds.
Acting United States Attorney Nathaniel R. Mendell and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement. Assistant U.S. Attorneys Alex J. Grant and Catherine Curley of Mendell’s Springfield Branch Office prosecuted the case.
Federal Search Warrants ExecutedRead the Press Release
DES MOINES, Iowa -- On Tuesday, October 26, 2021, twelve federal search warrants were executed at various locations in the Des Moines metropolitan area.
The searches at these locations were an official law enforcement action involving officers, agents, and investigators from the Des Moines Police Department; Federal Bureau of Investigation; Mid-Iowa Narcotics Enforcement Task Force; Mid-Iowa Narcotics Enforcement Task Force East; Iowa Division of Narcotics Enforcement; Iowa Division of Intelligence and Fusion Center; Bureau of Alcohol, Tobacco, Firearms, and Explosives; Iowa State Patrol; Iowa State Patrol SWAT; West Des Moines Police Department; METRO Star; and SERT.
There is no known danger to the public and there will be no further comment on these actions at this time.
Federal Jury Returns Guilty Verdict in Child Pornography CaseRead the Press Release
LAFAYETTE, La. – A federal jury in Lafayette returned a guilty verdict today against William Malone, 45, of Mobile, Alabama, on child pornography charges, Acting United States Attorney Alexander C. Van Hook announced.
On October 7, 2020, a federal grand jury returned a superseding indictment charging Malone with five counts of production of child pornography, one count of use of a facility to cause a minor to engage in criminal sexual activity, one count of receipt of child pornography, and one count of possession of child pornography.
According to evidence presented during the two-day trial in the Western District of Louisiana, Malone lived in Mobile, Alabama and worked as the captain of a maritime vessel that traveled out of Abbeville in Vermilion Parish, Louisiana. An investigation was begun in March 2020 by law enforcement officers with the Mobile Police Department and Child Advocacy Center after they received complaints that Malone had sexually abused a female under the age of 12 years old. The minor victim’s mother reported the allegations after learning from her daughter that Malone had been sexually abusing her.
Law enforcement agents with the Federal Bureau of Investigation (FBI) conducted a forensic examination of the minor victim’s cell phone and found evidence that Malone had texted the minor victim and asked her to send him pictures and videos of herself naked and other sexually explicit images of herself. Agents also executed a search warrant onboard the vessel where Malone was working, for his laptop computer and cell phone. During a review of Malone’s laptop computer and cell phone, agents found the sexually explicit images that the minor victim had told law enforcement officers she sent to Malone at his request. Malone was subsequently arrested and charged.
Malone faces a sentence of up to 160 years plus life in prison, and a fine of up to $250,000.
The FBI and Mobile, Alabama Police Department investigated the case. Assistant U.S. Attorneys J. Luke Walker and Craig R. Bordelon prosecuted the case.
# # #
Federal Grand Jury Indicts Members and Associates of Alleged Louisville Drug Trafficking OrganizationRead the Press Release
Louisville, Kentucky – Multiple members and associates of an alleged local drug trafficking organization and street gang known as “Everybody Shines Together,” or, “EST,” were arrested over the past week in Louisville on federal criminal charges related to alleged drug trafficking and weapons offenses.
According to court documents unsealed in federal court, 10 people were charged in an Indictment returned by a grand jury sitting in Louisville:
Eric D. Mosley, 30, Zaman Taylor, 21, Khasi Jones, 28, Devonzo Summers, 24, Ricos Mosley, 33, Barry Reed, 20, Cedric Palmer, 25, Aerion Cook, 21, Dazaray Rice, 27, and Darrian Toogood, 24, all of Louisville, are charged with Conspiracy to Possess with the Intent to Distribute and Distribution of Controlled Substances, including methamphetamine, fentanyl, cocaine, and heroin. Various members of the conspiracy are also charged with additional firearms and drug charges. The indictment follows a criminal complaint previously filed in federal court against Eric Mosley.
Eric Mosley is charged with Conspiracy to Possess with the Intent to Distribute and Distribution of Controlled Substances, Possession with Intent to Distribute Cocaine, Possession of a Firearm in Furtherance of Drug Trafficking, Possession of a Firearm by a Prohibited Person, and Possession of a Stolen Motor Vehicle. If convicted, Mosley faces a mandatory minimum penalty of 15 years and a maximum of life in prison.
Zaman Taylor, Devonzo Summers, and Barry Reed are each charged with Conspiracy to Possess with the Intent to Distribute and Distribution of Controlled Substances and Possession of a Firearm in Furtherance of Drug Trafficking. If convicted, they each face a mandatory minimum penalty of 15 years and a maximum of life in prison.
Khasi Jones, Ricos Mosley, Cedric Palmer, Aerion Cook, Dazaray Rice, and Darrian Toogood are each charged with Conspiracy to Possess with the Intent to Distribute and Distribution of Controlled Substances and face a mandatory minimum penalty of 10 years and a maximum of life in prison.
In addition to the arrests, several search warrants were executed in connection with the investigation, resulting in the seizure of what is believed to be approximately 1 kilogram of cocaine as well as methamphetamine, multiple firearms, a stolen vehicle, and over $160,000 in United States currency.
Khasi Jones, Devonzo Summers, and Barry Reed have not yet been apprehended and are considered wanted fugitives. Anyone having information regarding the whereabouts of these subjects may contact the Federal Bureau of Investigation at 1-800-CALL-FBI or 502-263-6000.
“I want to acknowledge the outstanding work of the FBI, ATF, IRS, and LMPD in this case,” stated Acting U.S. Attorney Michael A. Bennett. “The allegations in the Indictment are the result of the robust working relationships present between our federal law enforcement partners and LMPD. The charges once again confirm each agency’s commitment and dedication to the safety of all who live and work in this community.”
“While too many families have experienced unspeakable tragedies from the violent crime plaguing our city, FBI Louisville, LMPD, and other law enforcement partners are strategically focused on pursuing the most violent and persistent offenders,” stated FBI Louisville Special Agent in Charge Jodi Cohen. “The gang members arrested last week have terrorized our communities for far too long, but they will be held accountable for their actions. To those gang members who continue to operate with a blatant disregard for your fellow citizens, know that we are working tirelessly to identify, investigate, and apprehend you and your associates.”
If convicted, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. There is no parole in the federal system.
The FBI Louisville’s Safe Streets Task Force, which includes FBI Special Agents and investigators from Louisville Metro Police Department, Nelson County Sheriff’s Office, Bullitt County Sheriff’s Office, and Homeland Security Investigations, along with the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Internal Revenue Service are investigating the case.
Assistant U.S. Attorneys Frank Dahl, Ann Marie Blaylock, and Rob Bonar are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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.
###
Ex-Postal Service supervisor sent to prison for stealing marijuana from confiscated packageRead the Press Release
BRUNSWICK, GA: A U.S. Postal Service supervisor who admitted stealing marijuana from a confiscated package has been sentenced to federal prison.
Howard Kerns, 53, of Dearing, Ga., was sentenced to two months in prison followed by two years of supervised release after pleading guilty to Theft of Mail Matter by a Postal Employee, a felony crime, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. Kerns also was terminated from the U.S. Postal Service.
“Integrity of our U.S. Mail is dependent on the honesty of postal employees,” said Acting U.S. Attorney Estes. “Howard Kerns is the rare exception of workers who fail that test, and is being held accountable for that failure.”
As described in court documents and testimony, Kerns, who had previously worked in the post office in Evans, Ga., was working in the Brunswick, Ga., post office when a delivery arrived in August 2020 with a package suspected of containing marijuana. Postal workers put the package on a shelf in the postmaster’s office to await examination by a postal inspector from the U.S. Postal Inspection Service.
Postal management later discovered the package had been opened and resealed, with the contents removed and reported to the U.S. Postal Service Office of Inspector General for further investigation. After questioning, Kerns admitted stealing the package’s contents.
“The vast majority of Postal Service employees are honest, hardworking individuals who would never violate the public trust,” said Acting Special Agent in Charge Jonathan Ulrich, Southern Area Field Office. “An employee who decides otherwise will be aggressively investigated by USPS OIG special agents. This case serves as an excellent example of the successful partnership between the USPS-OIG and U.S. Attorney’s Office to pursue and prosecute employees involved in criminal activity.”
The case was investigated by the U.S. Postal Service Office of Inspector General, and prosecuted for the United States by U.S. Attorney Joshua S. Bearden.
Couple Sentenced for Selling Turtles in Violation of the Lacey ActRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced today that VINCENT FELIX RIVERE, age 48, and MEGAN LYNN SHOEMAKER, age 36, residents of Maurepas, Louisiana, were sentenced today after previously pleading guilty to selling Louisiana box turtles on July 13, 2017. United States District Court Judge Wendy B. Vitter sentenced RIVERE and SHOEMAKER to serve one (1) year of probation.
On July 13, 2017, a Homeland Security Investigations (HSI) agent arrived at the Office Depot parking lot in Covington, LA to arrange a previously negotiated undercover purchase of 29 Louisiana common box turtles from RIVERE. RIVERE and SHOEMAKER were waiting at the location. The undercover agent greeted them, and RIVERE and SHOEMAKER began removing sacks containing Louisiana common box turtles from the trunk of his car. The undercover agent then paid RIVERE $680.00 in cash for the 29 Louisiana common box turtles.
After the transaction, a traffic stop was performed. RIVERE was operating the vehicle and was in possession of the $680 he had received from the undercover agent. The agent checked the serial numbers on the money that RIVERE possessed and it matched the serial numbers on the money that had been provided from the undercover agent.
U.S. Attorney Evans praised the work of the United States Fish and Wildlife Service, Homeland Security Investigations and the United Postal Service in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Convicted Felon Sentenced to More Than 14 Years in Federal Prison for Possessing Firearms and NarcoticsRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew has sentenced Leon Grant, Jr. (40, St. Petersburg) to 14 years and 2 months in federal prison for possession with the intent to distribute fentanyl, methamphetamine, and crack cocaine, possession of a firearm in furtherance of a drug trafficking crime, and possession of firearms and ammunition by a convicted felon. The court also ordered Grant to forfeit the firearms and ammunition he had possessed.
Grant had pleaded guilty on July 27, 2021.
According to court documents, federal agents, along with state and local law enforcement agencies, investigated a series of credit union robberies committed in Hillsborough and Pinellas Counties in 2019. As part of the investigation, the Federal Bureau of Investigation obtained a search warrant for Grant’s home in St. Petersburg. On January 22, 2020, state and federal investigators searched Grant’s home and seized more than 36 grams of fentanyl, 26 grams of methamphetamine, and 35 grams of crack cocaine. Investigators also located three firearms and ammunition in Grant’s bedroom, including an AR-15 rifle and two pistols. Grant admitted he was a drug dealer and said he kept the firearms in his home for protection. Grant, having previously been convicted of multiple felonies, was prohibited from possessing firearms or ammunition.
This case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Florida Department of Law Enforcement, the Pinellas County Sheriff’s Office, the Hillsborough County Sheriff’s Office, the Pinellas Park Police Department, the St. Petersburg Police Department, and the Clearwater Police Department. It was prosecuted by Assistant United States Attorney Michael Sinacore.
Clayton Man Indicted on Child Pornography ChargesRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that a federal grand jury sitting in Wilmington returned an indictment today charging Rick Schriber, 72, of Clayton, Delaware, with receiving, distributing, and possessing child pornography.
The Indictment alleges that Schriber received and distributed child pornography from approximately September 2018 through August 2019. According to additional documents filed in federal court, Schriber is alleged to have received and distributed this child pornography via e-mail exchanges with another individual.
Law enforcement officers searched Schriber’s residence on October 20, 2021. Agents discovered child pornography, which Schriber is also charged with possessing, and arrested him. Schriber has been detained since his arrest.
If convicted, Schriber faces a mandatory minimum penalty of five years in prison, with a maximum penalty of 20 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.
U.S. Attorney Weiss commented, “The production, distribution, and collection of child pornography is a heinous shadow industry that targets the most vulnerable among us – our children. Our office is dedicated to combatting this abhorrent industry and bringing those who lurk in its shadows to justice.”
The case was investigated by the Crimes Against Children and Human Trafficking Squad of the FBI Maryland Child Exploitation Task Force. Assistant U.S. Attorney Briana Knox is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information are located on the website of the District Court for the District of Delaware or on PACER.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Chula Vista Couple Sentenced for Fraud Scheme Targeting Pregnant WomenRead the Press Release
Special Assistant U.S. Attorneys Lisa J. Sanniti (619) 546-8811 and Jeffrey D. Hill (619) 546-7924
NEWS RELEASE SUMMARY – October 26, 2021
SAN DIEGO – Melissa Alvarez Torres and Jose Luis Olmos Hernandez were sentenced in federal court today to 33 months and 40 months in prison, respectively, for stealing hundreds of thousands of dollars from pregnant women and using the money to buy multiple properties in Mexico, including a beachfront home in Nayarit.
The couple from Chula Vista pleaded guilty in July, admitting that during a four-year period, their healthcare fraud scheme to sell bogus insurance to pregnant women caused more than $1 million in losses to California’s Medi-Cal Access Program known as MCAP.
MCAP is a government health care program administered by the California Department of Health Care Services that provides working, middle-income California families access to affordable maternity and post-natal care. Alvarez and Olmos were very familiar with MCAP, twice utilized the program for their family.
According to court documents, beginning in 2016, Alvarez and Olmos used Facebook to fraudulently market private “insurance” under the name Seguros Americanos Embarazo (“American Pregnancy Insurance”). They targeted pregnant women living in Mexico and holding work or tourist visas permitting them to enter the United States. These women contacted Alvarez and Olmos through Facebook or WhatsApp after being referred by other women. Alvarez and Olmos falsely claimed that their “insurance” product would permit these pregnant women to give birth legally in the United States without risk to their visas.
The women, many first-time mothers dealing with high-risk pregnancies, hoped to access high quality American health care and knew that they could not lawfully use a public health program, and that they would lose their visas if they did so. Alvarez and Olmos falsely assured the pregnant women that their product was private insurance and instructed them on how to avoid any problems when crossing the border for medical appointments. Alvarez and Olmos charged each woman between $1,200 and $3,000 per pregnancy for the “insurance.”
Alvarez and Olmos have admitted that, in reality, they did not have private insurance to sell. They used the women’s personal identifying information to sign them up for MCAP benefits through the State of California without the knowledge or consent of the women. Alvarez and Olmos submitted hundreds of false applications and fraudulent supporting tax and employment documents to MCAP, falsely claiming that the women were California residents and therefore eligible for benefits. Alvarez also impersonated dozens of these women in phone calls to MCAP trying to get the fraudulent applications approved. Alvarez and Olmos thereby cost American taxpayers over $1 million in health care costs and profited by charging hundreds of thousands of dollars in fraudulent fees paid by the pregnant women.
Additionally, Alvarez has agreed to pay almost $22,000 in restitution to the State of California for Medi-Cal benefits she, Olmos, and their children received as a result of her concealing these fraud proceeds and properties she and Olmos owned in Mexico.
As part of their sentence, Alvarez and Olmos were ordered to forfeit $424,500 in criminal proceeds, and to pay more than $1.5 million in restitution to the State of California and 283 individual victims of their fraud.
This case is a result of a multiagency investigation initiated by the California Department of Health Care Services – Investigations Branch, pursuant to the Travel and Residency Enforcement Co-Op with the Social Security Administration and the United States Attorney’s Office for the Southern District of California, along with the Federal Bureau of Investigation.
“These defendants exploited families at their most vulnerable and defrauded our vital public health programs to line their pockets,” said Acting U.S. Attorney Grossman. “Our office is committed to protecting the American taxpayer and ensuring the integrity of safety net programs by prosecuting those who exploit them.” Grossman commended the exemplary work of prosecutors Lisa Sanniti and Jeffrey Hill and the federal and state agents who diligently pursued this case.
“Today’s sentencing of the defendants is evidence of the teamwork with our federal partners in stopping criminals defrauding California’s Medi-Cal program and, in turn, the residents of our state. I commend the personnel of the DHCS Investigations Branch, the FBI, and the US Attorney’s Office for their commitment and dedication in protecting the integrity of Medi-Cal,” said DHCS Director Michelle Baass.
“The defendants were driven by greed and devised an elaborate scheme to defraud the state and make a quick buck,” said FBI Special Agent in Charge Suzanne Turner. “Today, they found out the cost of their scheme. This case should serve as a warning – the FBI will continue to work with our state partners at the California Department of Health Care Services to detect and disrupt those who abuse government funded health care programs which ultimately puts the viability of those programs at risk.”
DEFENDANTS Case No. 20-CR-3335-GPC
MELISSA ALVAREZ TORRES Age 33 Chula Vista, CA
aka “Melissa Torres”
aka “Melissa A. Torres”
JOSE LUIS OLMOS HERNANDEZ Age 36 Chula Vista, CA
aka “Jose Luis Hernandez”
aka “Jose L. Hernandez”
aka “Jose Carlos”
aka “Carlos Garcia”
SUMMARY OF CHARGES
Conspiracy to Commit Health Care Fraud and Wire Fraud – Title 18, U.S.C., Section 1349
AGENCIES
State of California’s Department of Health Care Services – Investigations Branch
Federal Bureau of Investigation
Chippewa Falls Man Sentenced to 6 Years for Possessing Methamphetamine for DistributionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Justin Barnard, 36, Chippewa Falls, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 72 months in federal prison for possessing with intent to distribute 50 grams or more of methamphetamine. This prison term will be followed by 4 years of supervised release.
On November 23, 2020, law enforcement in Dunn County received a tip from a known informant that Barnard was driving a mini-van and had a substantial amount of methamphetamine with him in a fanny pack. A deputy located the mini-van and observed Barnard commit a traffic violation. The deputy stopped Barnard, who appeared to be under the influence of methamphetamine at the time. Deputies also located 74.9 grams of methamphetamine in a fanny pack worn by Barnard, as well as packaging materials and scales, consistent with drug distribution. Barnard was later charged with operating a motor vehicle while under the influence of an intoxicant in Dunn County Case No. 21CM180, which is still pending.
At the time of this offense Barnard was under Wisconsin state extended supervision in Eau Claire County Case Nos. 14CF111 and 16CF1422, in which he was convicted of 2nd degree recklessly endangering safety and delivery of methamphetamine, respectively. The sentence imposed today will run concurrently with a 2-year prison sentence Barnard is serving as a result of revocation of his extended supervision in those cases.
At sentencing, Judge Peterson remarked that it was Barnard’s responsibility to the community, and to himself, to manage his addiction. Judge Peterson noted Barnard appeared to be on a downward trajectory given his repeated criminality, and therefore a sentence of 6 years was warranted. Further, Barnard’s apparent resistance to supervision in the past also factored into the sentence.
The charges against Barnard were the result of an investigation conducted by the Dunn County Sheriff’s Office. Assistant U.S. Attorney Taylor L. Kraus handled the prosecution.
Chief Executive Officer Pleads Guilty to Submitting Hundreds of False Monitoring ReportsRead the Press Release
A Tennessee woman pleaded guilty today to fabricating discharge monitoring reports required under the Clean Water Act and submitting those fraudulent documents to state regulators in Tennessee and Mississippi.
According to court documents and information in the public record, DiAne Gordon, 61, of Memphis, was the co-owner and chief executive officer of Environmental Compliance and Testing (ECT). ECT held itself out to the public as a full-service environmental consulting firm and offered, among other things, sampling and testing of stormwater, process water and wastewater.
Customers, typically concrete companies, hired ECT to take samples and analyze them in a manner consistent with Clean Water Act permit requirements. Gordon claimed to gather and send the samples to a full-service environmental testing laboratory. The alleged results were memorialized in lab reports and chain of custody forms submitted to two state agencies, Mississippi Department of Environmental Quality (MDEQ) and the Tennessee Department of Environment and Conservation (TDEC), to satisfy permit requirements. In reality, Gordon fabricated the test results and related reports. She even forged documents from a reputable testing laboratory in furtherance of her crime. Gordon then billed her clients for the sampling and analysis. Law enforcement and regulators quickly determined that Gordon created and submitted, or caused to be submitted, at least 405 false lab reports and chain of custody forms from her company in Memphis to state regulators since 2017.
Pursuant to the terms of her plea agreement, Gordon will pay $201,388.88 in restitution to the victims of her crime.
“By fabricating these reports, Gordon betrayed her position of trust and violated her responsibility to provide information critical to evaluating water quality for residents in Tennessee and Mississippi,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “This prosecution shows the value of state and federal partnerships in investigating and prosecuting fraud and upholding the nation’s environmental laws for the good of public health.”
“The Clean Water Act ensures that water quality is maintained throughout the United States,” said Acting U.S. Attorney Joseph C. Murphy Jr. for the Western District of Tennessee. “Correct and accurate test results of discharges into rivers and stream and the honest reporting of those results to regulatory authorities are important parts of the Act’s regulatory framework. Without accurate test results and reporting of those results, the Clean Water Act will not work as Congress intended. Because honest reporting of this data is so important to the functioning of the Act, our office will vigorously prosecute individuals who falsely report test results.”
“The defendant’s job was to help her clients remain in compliance with the Clean Water Act but instead she chose to falsify the required analytical testing under the Act for financial gain,” said Special Agent in Charge Charles Carfagno of the Environmental Protection Agency – Criminal Investigation Division’s (EPA-CID) Southeast Area Branch. “Today’s guilty plea illustrates the consequences of such criminal behavior and that EPA-CID will continue to vigorously investigate those that choose to violate our environmental laws.”
Gordon pleaded guilty to knowingly and willfully making and using false writings and documents in a matter within the jurisdiction of EPA. She is scheduled to be sentenced on March 22, 2022, and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
EPA-CID is investigating the case. MDEQ and TDEC provided invaluable assistance to federal law enforcement officers.
Trial Attorney Banumathi Rangarajan of the Justice Department’s Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Dean DeCandia of the U.S. Attorney’s Office for the Western District of Tennessee are prosecuting the case.
Chief Executive Officer Pleads Guilty to Submitting Hundreds of False Monitoring ReportsRead the Press Release
Memphis, TN – A Tennessee woman pleaded guilty today to fabricating discharge monitoring reports required under the Clean Water Act and submitting those fraudulent documents to state regulators in Tennessee and Mississippi.
According to court documents and information in the public record, DiAne Gordon, 61, of Memphis, Tennessee, was the co-owner and chief executive officer of Environmental Compliance and Testing (ECT). ECT held itself out to the public as a full-service environmental consulting firm and offered, among other things, sampling and testing of stormwater, process water, and wastewater.
Customers, typically concrete companies, hired ECT to take samples and analyze them in a manner consistent with Clean Water Act permit requirements. Gordon claimed to gather and send the samples to a full-service environmental testing laboratory. The alleged results were memorialized in lab reports and chain of custody forms submitted to two state agencies, Mississippi Department of Environmental Quality (MDEQ) and the Tennessee Department of Environment and Conservation (TDEC), to satisfy permit requirements. In reality, Gordon fabricated the test results and related reports. She even forged documents from a reputable testing laboratory in furtherance of her crime. Gordon then billed her clients for the sampling and analysis. Law enforcement and regulators quickly determined that Gordon created and submitted, or caused to be submitted, at least 405 false lab reports and chain of custody forms from her company in Memphis to state regulators since 2017.
Pursuant to the terms of her plea agreement, Gordon will pay $201,388.88 in restitution to the victims of her crime.
"By fabricating these reports, Gordon betrayed her position of trust and violated her responsibility to provide information critical to evaluating water quality for residents in Tennessee and Mississippi," said Assistant Attorney General Todd Kim of the Justice Department’s Environment
and Natural Resources Division. "This prosecution shows the value of state and federal partnerships in investigating and prosecuting fraud and upholding the nation’s environmental laws for the good of public health."
"The Clean Water Act ensures that water quality is maintained throughout the United States," said Acting U.S. Attorney Joseph C. Murphy Jr. for the Western District of Tennessee. "Correct and accurate test results of discharges into rivers and stream and the honest reporting of those results to regulatory authorities are important parts of the Act’s regulatory framework. Without accurate test results and reporting of those results, the Clean Water Act will not work as Congress intended. Because honest reporting of this data is so important to the functioning of the Act, our office will vigorously prosecute individuals who falsely report test results."
"The defendant’s job was to help her clients remain in compliance with the Clean Water Act but instead she chose to falsify the required analytical testing under the Act for financial gain," said Special Agent in Charge Charles Carfagno of the Environmental Protection Agency – Criminal Investigation Division’s (EPA-CID’s) Southeast Area Branch. "Today’s guilty plea illustrates the consequences of such criminal behavior and that EPA-CID will continue to vigorously investigate those that choose to violate our environmental laws."
Gordon pleaded guilty to knowingly and willfully making and using false writings and documents in a matter within the jurisdiction of EPA. She is scheduled to be sentenced on March 22, 2022 and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
EPA-CID is investigating the case. MDEQ and TDEC provided invaluable assistance to federal law enforcement officers.
Trial Attorney Banumathi Rangarajan of the Justice Department’s Environmental Crimes Section and Assistant U.S. Attorney Dean DeCandia of the U.S. Attorney’s Office for the Western District of Tennessee are prosecuting the case.
###
Chicago Tech Executive Guilty of Illegally Exporting Computer Equipment to PakistanRead the Press Release
CHICAGO —A Chicago technology executive pleaded guilty today to a federal criminal charge and admitted illegally exporting computer equipment from the United States to a nuclear research agency of the Pakistani government.
OBAIDULLAH SYED, 66, of Northbrook, Ill., pleaded guilty to conspiracy to export goods from the U.S. without a license from the Department of Commerce and to submit false export information. The conviction is punishable by a maximum sentence of five years in federal prison and a maximum fine of $250,000. U.S. District Judge Mary M. Rowland set sentencing for Feb. 23, 2021, at 12:30 p.m.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Angie Salazar, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations; Aaron Tambrini, Special Agent-in-Charge of the U.S. Department of Commerce, Bureau of Industry and Security-Office of Export Enforcement, Chicago Field Office; and Cynthia A. Bruce, Special Agent-in-Charge of the U.S. Department of Defense, Defense Criminal Investigative Service, Southeast Field Office. The government is represented by Assistant U.S. Attorney Peter M. Flanagan.
Syed owned Pakistan-based BUSINESS SYSTEM INTERNATIONAL PVT. LTD., and Chicago-based BSI USA. The companies provided high-performance computing platforms, servers, and software application solutions. Syed admitted in a plea agreement that from 2006 to 2015 he conspired with his company’s employees in Pakistan to violate the International Emergency Economic Powers Act by exporting computer equipment from the U.S. to the Pakistan Atomic Energy Commission without obtaining the required authorization from the U.S. Department of Commerce. The PAEC is a Pakistani government agency responsible for, among other things, designing and testing explosives and nuclear weapons parts. It was designated by the U.S. government as an entity which may pose an unusual or extraordinary threat to the national security, foreign policy, or economy of the United States.
Syed further admitted that he and the other conspirators falsely represented to U.S.-based computer manufacturers that the illegal shipments were intended for Pakistan-based universities or Syed’s businesses, when, in fact, the conspirators knew that the true end user of each shipment was either the PAEC or a research institute that trained the agency’s engineers and scientists. In so doing, Syed and his company caused the U.S.-based computer manufacturers to submit to the U.S. government shipping documents that listed false end-users for the U.S.-origin goods, thereby undermining the U.S. government’s ability to stop the illegal shipments.
Business System International Pvt. Ltd. was charged in the conspiracy as a corporate defendant. The company has yet to respond to the charges.
Boston Man Pleads Guilty to Fraud ConspiracyRead the Press Release
BOSTON – A Boston man pleaded guilty today to fraud conspiracy charges in connection with processing fraudulent applications for store credit accounts using stolen identities.
Ricardo Voltaire, 35, pleaded guilty to one count of conspiracy to commit wire fraud. U.S. Senior District Court Judge Douglas P. Woodlock scheduled sentencing for Feb. 28, 2022. Voltaire was charged on Sept. 28, 2021.
Voltaire was a sales manager at Staples locations in Dedham and Braintree. On at least 60 occasions, Voltaire processed fraudulent Staples’ store credit account applications that were submitted by Wagner Sozi and his co-conspirator – each of which contained stolen personal identifying information of another individual. Voltaire knew that his co-conspirators were not in fact the individuals named on the applications and opened store credit accounts under the stolen identities, which were then used to purchase more than $81,000 in Visa gift cards. Voltaire accepted approximately $8,000 in kickbacks from Sozi and his co-conspirator.
In May 2021, Sozi pleaded guilty to two counts of wire fraud, one count of aggravated identity theft and one count of making a false claim. He is pending sentencing which is scheduled for Oct. 28, 2021.
The charges of conspiracy to commit wire fraud provides for a sentence of up to 20 years in prison, 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 and Frederick J. Regan, Special Agent in Charge of the U.S. Secret Service, Boston Field Office, made the announcement today. The Braintree Police Department provided valuable assistance with the investigation. Assistant U.S. Attorney William F. Abely II, Chief of Mendell’s Criminal Division, is prosecuting the case.
Bloods Gang Member Is Sentenced to More Than 13 Years for Drug TraffickingRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Frank D. Whitney ordered Robert Allen McClinton, 32, of Charlotte, to serve 135 months in prison and eight years of supervised release on drug trafficking charges, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. Judge Whitney also ordered McClinton to serve an additional consecutive 24 months in prison for violating the terms of his supervised release.
Robert R. Wells, Special Agent in Charge of the FBI in Charlotte, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD), join Acting U.S. Attorney Stetzer in making today’s announcement.
McClinton, who is a member of the United Blood Nation (Bloods) gang, was previously sentenced to 43 months in federal prison, after pleading guilty to RICO Conspiracy and possession with intent to distribute crack cocaine. According to court documents, on September 5, 2019, while McClinton was on supervised release, a CMPD officer attempted to conduct a traffic stop of the vehicle McClinton was driving. McClinton at first complied and stopped at a gas station, however, when the CMPD officer approached McClinton’s vehicle, McClinton sped off at a high speed and came close to striking the officer. Law enforcement proceeded to follow McClinton while he attempted to evade the police. Court records show that CMPD officers arrested McClinton after his vehicle collided into a tree. Over the course of the investigation law enforcement seized narcotics from McClinton and his vehicle. On May 11, 2021, a federal jury convicted McClinton of two counts of possession with intent to distribute cocaine and crack cocaine.
McClinton is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons, upon designation of a federal facility.
The investigation was conducted by the FBI and CMPD. Assistant U.S. Attorneys Christopher Hess and Taylor Stout, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Birmingham Man Sentenced to More Than 15 Years in Prison for CarjackingRead the Press Release
BIRMINGHAM, Ala. – A federal judge on today sentenced a Birmingham man for carjacking, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Mickey French.
U.S. District Judge Annemarie Carney Axon sentenced Tadarrius Lawaun Smith, 23, to 189 months in prison for carjacking and for brandishing a firearm during the carjacking. Smith pleaded guilty to the charges in July.
“The fear that Smith imposed on this innocent victim is unimaginable,” U.S. Attorney Escalona said. “Because of the hard work of the Birmingham Police Department and the ATF, this offender has been brought to justice.”
According to the plea agreement, on December 4, 2019, Smith carjacked the victim as she was exiting her car in the parking lot of an apartment complex in the Southside area of Birmingham. Smith put a pistol with an extended magazine to her head and made her get back in the car. Smith drove the car to an unknown location and held a pistol to her head and told her that he was going to kill her. He then assaulted her and demanded money. Smith drove her to three different ATMs, withdrawing $860, and took her Mastercard because it had a high credit limit. Smith then drove to the 900 block of 1st Avenue South, got out of the car, and walked away. The victim drove several blocks down the street, parked, and called her daughter, who called police. Birmingham Police investigators pulled video from the bank and a gas station where Smith stopped during the incident. Birmingham Police officers arrested Smith several days later when he arrived at the Jefferson County Courthouse for a probation hearing.
The ATF investigated the cases, along with the Birmingham Police Department. Assistant U.S. Attorneys Alan Baty and Darius Greene 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.
Baltimore Crack Cocaine Dealer Pleads Guilty to Possession with Intent to Distribute Crack CocaineRead the Press Release
Baltimore, Maryland – William Terrell Hudson, age 41, of Baltimore, Maryland, pleaded guilty yesterday to possession with the intent to distribute crack cocaine.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division.
According to his guilty plea, in January 2021, during proactive enforcement efforts in the area of Greenmount Avenue, Baltimore, Maryland, ATF investigators identified a social media post by “byrdman4711” that was consistent with advertising the sale of crack cocaine. Investigators later determined that the account belonged to Hudson and asked a confidential informant to message Hudson’s “brydman4711” account to arrange the purchase of crack cocaine.
As a result of ATF’s investigation, Hudson distributed crack cocaine in exchange for cash on eight occasions between February 9, 2021 and April 7, 2021. Hudson agrees that he distributed more than 28 grams but less than 112 grams of cocaine base.
Hudson faces a maximum sentence of 20 years in prison followed by up to a lifetime of supervised release for possession with intent to distribute cocaine base. U.S. District Judge James K. Bredar has scheduled sentencing for January 14, 2022 at 10 a.m.
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.
United States Attorney Erek L. Barron commended the ATF for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Zachary Stendig and Lindsey McCulley, and Special Assistant United States Attorney Lindsay DeFrancesco, who are prosecuting 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.
# # #
Baltimore County Police Officer Facing Federal Indictment for Allegedly Seeking and Accepting Bribes in Exchange for Falsely Certifying the Completion of Firearms Training Required to Obtain a HandgunRead the Press Release
Baltimore, Maryland – A federal grand jury today returned an indictment charging William R. Johnson, Jr., age 32, of Baltimore, Maryland, for a federal charge of honest services wire fraud, for allegedly seeking and accepting bribes and kickback to falsely certify that applicants for Maryland handgun qualifying licenses (HQL) and wear and carry permits (CCW) had completed the required training. Johnson is expected to have an initial appearance in U.S. District Court in Baltimore tomorrow, October 27, 2021 at 3:45 p.m.
The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
Johnson, who joined the Baltimore County Police Department in August 2008, became a narcotics detective on February 18, 2014. Johnson obtained a qualified handgun instructor certificate (QHIC) from the Maryland State Police on April 29, 2019. In order to purchase, rent, or receive a handgun in Maryland, residents must have a handgun qualification license (HQL). To obtain an HQL, the applicant must be at least 21 years old and complete four hours of instruction by a qualified handgun instructor, including classroom training, a firearms orientation, and a “live fire” exercise in which the applicant safely shoots the weapon. Similarly, to obtain a license to wear and carry a firearm (referred to as a wear and carry permit or “CCW”) residents must have completed the Maryland State Police (MSP) firearms training course within two years of submitting a new or renewal application. In addition, the applicant must undergo a minimum of 16 hours of instruction for an initial CCW application, and a minimum of eight hours of instruction for a renewal CCW application which is administered by a qualified handgun instructor. Part of the training course for obtaining a CCW is a firearms qualification exercise in which the applicant must shoot a specific course, scoring at least 70 percent accuracy, to demonstrate their proficiency and use of the firearm.
According to the six-count indictment, from May 2019 through September 2021, Johnson solicited and accepted bribes and kickbacks, paid through interstate electronic funds transfer services like Venmo, CashApp and Zelle, from applicants seeking HQLs and CCWs in exchange for Johnson falsely certifying to the Maryland State Police that the applicant had completed the training required by law.
As detailed in the indictment, Johnson communicated with applicants and arranged the payments using a messaging application. Johnson allegedly charged approximately $100 for an HQL certification and between $150 and $200 for a CCW certification. In conversations with the applicants, Johnson allegedly made clear that once they paid the money, Johnson would send them the required documentation and they did not need to attend the required classes. The indictment alleges that, after receiving payment from the applicants, Johnson sent the applicants a “Certified Qualification Score Sheet” falsely certifying that the applicant completed the required training. The indictment alleges that the applicants then submitted those falsified forms as part of their application. Based on the falsified documentation provided by Johnson and submitted by the applicants, the applicants received an HQL or CCW from MSP. The indictment alleges that Johnson received six payments from five individuals seeking to obtain an HQL, a CCW, or both an HQL and CCW.
According to the indictment, since April 29, 2019, Johnson has certified at least 100 applicants for handgun qualification licenses and at least 45 for wear and carry permits.
If convicted, Johnson faces a maximum sentence of 20 years in federal prison for each of six-counts of honest services wire fraud. 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.
United States Attorney Erek L. Barron commended the FBI and the Baltimore County Police Department for their work in the investigation and thanked Homeland Security Investigations Baltimore, the Maryland State Police, and the Food and Drug Administration - Office of Investigations for their assistance. Mr. Barron thanked Assistant U.S. Attorneys Leo J. Wise and Christine Goo, who are prosecuting 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.
# # #
Atlantic Man Sentenced for Methamphetamine OffenseRead the Press Release
COUNCIL BLUFFS, Iowa – Christopher M. Jespersen, age 38, of Atlantic, was sentenced today by United States District Court Judge Stephanie M. Rose to 120 months in prison for Possession with Intent to Distribute Methamphetamine. His prison term will be followed by five of supervised release. According to court documents, Jespersen pleaded guilty to the offense in June of 2021. Additionally, Jespersen was sentenced to 15 months to be served after his 120- month sentence for violating the terms of his supervised release from a prior conviction.
In March of 2021, Jespersen was stopped for a traffic violation while driving in Dallas County, Iowa. A lawful search of Jespersen’s vehicle recovered over 100 grams of methamphetamine along with digital scales and other drug distribution paraphernalia.
Acting United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Dallas County Sheriff’s Department, Mid-Iowa Narcotics Task Force, and the Iowa Division of Narcotics Enforcement investigated the case.
Arcadia Woman Pleads Guilty to Fraud Scheme Involving Nearly $23 Million Intended for Coachella Hotel and Condo DevelopmentRead the Press Release
LOS ANGELES – A San Gabriel Valley woman pleaded guilty today to a federal criminal charge for overseeing a scheme in which she misappropriated much of $23 million in funds intended for a hotel and condominium complex in the Coachella Valley, and then used the money to finance her lavish lifestyle.
Ruixue “Serena” Shi, 37, of Arcadia, pleaded guilty to one count of wire fraud.
According to her plea agreement, from November 2015 to July 2018, Shi was the general manager of Global House Buyer LLC (GHB), a China-based real estate company that had an office in Los Angeles. Shi identified approximately 47 acres of land in Coachella to build Hyde Resorts and Residences Coachella Valley.
Shi contacted representatives of Dakota Development, a real estate development subsidiary of the Los Angeles-based lifestyle hospitality company SBE Entertainment, about using SBE’s “Hyde” brand, which was a luxury hotel and nightlife brand owned by SBE. Through these discussions, Shi reached an agreement with Dakota Development that the Hyde Development would be developed under SBE’s brand name “Hyde.”
Hyde Resorts was supposed to be a 207-unit luxury condominium and hotel complex with 95,000 square feet of conference facilities, a pool, spa, fitness center and other amenities.
Shi solicited investments in the Hyde complex from victims, the majority of whom were Chinese investors, by giving sales presentations at hotels and contacting victims over WeChat, a Chinese messaging, social media and mobile payment application.
To induce the victims to invest in the Hyde complex, Shi made false and fraudulent statements to them, including that their money only would be used to fund the Hyde development project, even though she intended to use victims’ money for her own personal expenses.
Relying on Shi’s false and fraudulent statements, victims wired money to her, mostly from China. For example, in October 2016, one victim wired $50,000 from a bank account in China to a Shi-controlled bank account in Los Angeles. In total, approximately $22,833,441 was transferred from bank accounts in China to Shi-controlled bank accounts.
After Shi received the victim funds, she spent nearly $300,000 in victim funds to purchase two luxury cars. She also spent approximately $2.2 million in victim funds at a company that provided luxury travel and concierge services. Shi also admitted spending almost $800,000 in victim funds at a full-service styling agency in Beverly Hills, as well as hundreds of thousands of dollars of victims’ money on high-end clothing designers, restaurants and other stores.
United States District Judge R. Gary Klausner has scheduled a March 28 sentencing hearing, at which time Shi will face a statutory maximum sentence of 20 years in federal prison. Shi has been in federal custody since August 2020.
The FBI investigated this matter.
Assistant United States Attorneys Alexander C.K. Wyman and Alexander B. Schwab of the Major Frauds Section are prosecuting this case.
Albany Man Indicted on Drug Trafficking ChargeRead the Press Release
ALBANY, NEW YORK – Khalif Crawford, age 28, was ordered detained today pending trial on a charge that he possessed cocaine base with the intent to distribute it.
The announcement was made by United States Attorney Carla B. Freedman and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
The indictment alleges that Crawford possessed more than 28 grams of cocaine base, which he intended to distribute. The charge in the indictment is merely an accusation. The defendant is presumed innocent unless and until proven guilty.
The charge filed against Crawford carries a minimum sentence of 5 years and a maximum sentence of 40 years in prison, a fine of up to $5 million, and a term of supervised release of at least 4 years.
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.
This case is being investigated by ATF and the Albany Police Department, and is being prosecuted by Assistant U.S. Attorney Dustin Segovia.
2 Men Plead Guilty to CarjackingRead the Press Release
Memphis, TN – Kolonji Warren, 24, and Kristopher Harris, 23, have pled guilty to carjacking. Joseph C. Murphy, Jr., Acting U.S. Attorney announced the plea today.
According to information provided in court, on July 17, 2019, the victim was seated inside his vehicle at the Pump and Munch gas station on East Shelby Drive in Memphis, TN. Warren and Harris drove Warren’s tan Jeep SUV to the gas station and pulled alongside the victim's vehicle.
One of the men pointed a semi-automatic handgun at the victim, firing one shot into the front passenger-side window of the vehicle. After the victim fled, Warren entered the victim's vehicle and drove away. One shell casing left at the scene was collected as evidence.
Video surveillance captured the suspect’s vehicle in the area and showed Warren enter the gas station prior to the carjacking. Part of the carjacking incident was also captured on video surveillance. During the investigation the defendants were all positively identified.
On October 22, 2021, both Warren and Harris pled guilty to the carjacking charge. Sentencing is set before U.S. District Judge Tommy L. Parker on January 21, 2022, where the defendants face up to 15 years in federal prison, followed by three years supervised release and a fine of up to $250,000. There is no parole in the federal system.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Assistant U.S. Attorneys Wendy K. Cornejo and Greg Wagner are prosecuting this case on behalf of the government
10 Foreign Nationals Charged in Years-Long, Multimillion-Dollar Investment and Impersonation SchemeRead the Press Release
Damian Williams, United States Attorney for the Southern District of New York, Philip R. Bartlett, Inspector in Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), Thomas Fattorusso, Acting Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), and John Condon, Special Agent in Charge of the Tampa Office of Homeland Security Investigations (“HSI”), announced today the unsealing of Indictments charging NICHOLAS RUSSELL JAMES GILLIE, a/k/a “James William Carter,” NEOPHYTOS GEORGIOU, a/k/a “Nick,” a/k/a “PT,” a/k/a “The Boss,” URS MEISTERHANS, SCOTT STEVEN NEILSON, LIAM JAMES SMOUT, a/k/a “Pringle,” DANIEL NIELSEN, BRENDA LAVERTY, ANDREW GEORGIOU, a/k/a “Andy,” THOMAS ANDREW KENNY, a/k/a “Irish,” and JAKE MARDELL with conspiracy to commit wire fraud, conspiracy to commit money laundering, and aggravated identity theft, in connection with a scheme to impersonate prominent investment firms and individuals to defraud victim investors in countries around the world. The case is assigned to U.S. District Judge J. Paul Oetken.
GILLIE, NEOPHYTOS GEORGIOU, LAVERTY, ANDREW GEORGIOU, and MARDELL were arrested in Cyprus in May 2021. SMOUT was arrested in Spain in July 2021. DANIEL NIELSEN was arrested in Romania in June 2021. KENNY and SCOTT STEVEN NEILSON were arrested in the United Kingdom last month and earlier this month, respectively.
In September 2021, DANIEL NIELSEN was extradited to the United States from Romania. Additional U.S. extradition requests remain pending.
MEISTERHANS, a Swiss national, remains at large and has been residing in Switzerland since May 2021 as a fugitive from U.S. justice.
U.S. Attorney Damian Williams said: “As alleged, the defendants carried out an international scheme that fleeced investors out of more than $6 million, in part by impersonating legitimate investment firms and fabricating the trappings of real investment opportunities, including news articles, advertisements, and other online content, as well as fake contracts and other documents. Now nine of the 10 are in custody, and all of the defendants are charged with multiple felonies in this district.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “International criminals have had a field day on U.S. consumers and investors over the past few years. Whenever making an investment, it is strongly advised to dig deep and review everything you can find about the investment firm, managers and purported returns. Use the power of the internet to search for negative information about the company. In this case, the victims relied on the good names of successful financial firms, only to later realize they had been swindled. Postal Inspectors and their law enforcement partners will always be on the alert to alleged cons like these to maintain honest investment platforms and ensure those who allegedly commit crimes against investors are brought to justice.”
IRS-CI Acting Special Agent in Charge Fattorusso said: “This case demonstrates to the world that IRS-CI and our many law enforcement partners continue to uncover and expose fraud wherever it may be located. This alleged scheme took advantage of victims with the promise of valuable financial assets when in reality the funds are alleged to have been stolen and laundered back to the criminal conspirators. We would like to specifically thank HSI, U.S. Postal Inspectors, the U.S. Attorney’s Office for the Southern District of New York, as well as our International J5 partner agencies for their outstanding work in this case.”
HSI Tampa Special Agent in Charge John Condon said: “Thanks to a collaborative investigative effort between HSI, the IRS-Criminal Investigations and the U.S. Postal Inspectors, this international criminal conspiracy has been stopped.”
As alleged in the Indictments unsealed today:
Beginning in at least 2015, NICHOLAS RUSSELL JAMES GILLIE, NEOPHYTOS GEORGIOU, URS MEISTERHANS, SCOTT STEVEN NEILSON, LIAM JAMES SMOUT, DANIEL NIELSEN, BRENDA LAVERTY, ANDREW GEORGIOU, THOMAS ANDREW KENNY, and JAKE MARDELL participated in a sophisticated international mass-marketing investment fraud scheme to defraud English-speaking investors from around the world of millions of dollars, and to launder the fraud proceeds and distribute those proceeds among the conspirators. NEOPHYTOS GEORGIOU, who owns bars and restaurants in Cyprus, financed the costs of the investment fraud scheme, which was orchestrated by GILLIE, his longstanding partner in Cyprus. MEISTERHANS was a key “banker” – that is, money launderer – in the scheme, who laundered victim funds through bank accounts in the United States and several other countries.
As part of the investment fraud scheme, conspirators purported to be employees of successful financial investment firms and took sophisticated steps to convince victims of the firms’ existence and legitimacy. Those steps commonly included impersonating real financial investment firms, creating fraudulent websites that appeared to be associated with the real firms, creating fraudulent email addresses that appeared to be associated with employees of the real firms, publishing fraudulent news articles relating to the fake firms and their supposed investments, utilizing a widely-used internet search engine to disseminate scheme-related online advertisements, creating fraudulent investment-related contracts and other financial and legal documents, and using the names, titles, signatures, email addresses, and likenesses of real individuals prominent in business and finance. Employing those tactics, among others, and through hard-sell telemarketing calls and emails with victim-investors orchestrated from so-called “boiler rooms” located in Cyprus, Spain, Romania, and Cambodia, the conspirators convinced victims to transfer funds to one or more bank accounts under the conspirators’ control (the “Victim Depository Accounts”) for what the victims understood to be investments in various companies – that is, the purchase of company shares. In reality, however, the conspirators’ purported financial investment firms were fake, the purported share purchases were fraudulent, and the money sent by victims was never returned. The combined losses of victims exceeded $6 million.
Rather than being used to make investments, the funds that victims transferred to the Victim Depository Accounts were sent back to the conspirators by individuals sometimes referred to by conspirators as “bankers” (the “Bankers”), who were in fact responsible for laundering the proceeds of the investment fraud scheme. For example, fraud proceeds were at times transferred from a Banker to bank accounts held in the names of individuals who do not actually exist, such as “James William Carter” and “Jonathan Timothy Turner,” but in whose names the conspirators had opened bank accounts using fake United Kingdom passports and other documents. The fraud proceeds were then distributed among the conspirators, as salary or commission, for their participation in the investment fraud scheme.
One component of the years-long investment fraud scheme involved the impersonation, in or about 2019, of a New York-based private investment fund (the “New York Fund”) founded by an internationally renowned billionaire investor (the “Founder”). While impersonating the New York Fund, conspirators fraudulently induced victim-investors from Australia, Europe, and elsewhere to enter into various purported investments, including the supposed purchase of “pre-IPO” shares of a successful and relatively young international company that did not have its shares listed on a public stock exchange (“Company‑1”).
* * *
GILLIE, 51, a U.K. national, NEOPHYTOS GEORGIOU, 60, a dual U.K. and Cypriot national, MEISTERHANS, 60, a Swiss national, SCOTT STEVEN NEILSON, 34, a U.K. national, SMOUT, 26, a U.K. national, DANIEL NIELSEN, 32, a U.K. national, LAVERTY, 40, an Irish national, GEORGIOU, 62, a dual U.K. and Cypriot national, KENNY, 33, a U.K. national, and MARDELL, 25, a U.K. national, are each charged with one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349, which carries a maximum sentence of 20 years in prison; one count of conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956, which carries a maximum sentence of 20 years in prison; and one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A, which carries a mandatory minimum sentence of two years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of these defendants would be determined by a judge.
Mr. Williams praised the outstanding investigative work of the USPIS and HSI, as well as IRS-CI and their partnership with the J5. The J5, known as the Joint Chiefs of Global Tax Enforcement, works together to gather information, share intelligence and conduct coordinated operations against transnational financial crimes. The J5 includes the Australian Taxation Office, the Canadian Revenue Agency, the Dutch Fiscal Information and Investigation Service, Her Majesty's Revenue and Customs from the U.K. and IRS-CI from the U.S. The Justice Department’s Office of International Affairs provided substantial assistance in securing the arrests and extradition.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Micah F. Fergenson and Andrew Jones are in charge of the prosecution.
As the introductory phrase signifies, the entirety of the text of the Indictments and the description of the Indictments set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
25 October 2021
Wetzel County man sentenced for drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Wesley A. Ebbert, of New Martinsville, West Virginia, was sentenced today to time served for selling drugs near a playground, United States Attorney William J, Ihlenfeld, II announced.
Ebbert, age 33, pled guilty to one count of “Distribution of Methamphetamine in Proximity to a Protected Location” in October 2019. Ebbert admitted to selling methamphetamine near Bruce Park playground in Wetzel County in May 2019.
Ebbert will be on supervised release for six years.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Marshall County Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the West Virginia State Police investigated.
U.S. District Judge John Preston Bailey presided.
Wetzel County man sentenced for drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Derrick Adams, of New Martinsville, West Virginia, was sentenced today to 77 months of incarceration for a heroin charge, United States Attorney William J. Ihlenfeld, II announced.
Adams, age 30, pled guilty in November 2020 to one count of “Aiding and Abetting the Distribution of Heroin.” Adams admitted to selling heroin in June 2019 in Wetzel County.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The West Virginia State Police investigated.
U.S. District Judge John Preston Bailey presided.
Ventura County Man Who Headed Tribal Police Agency Pleads Guilty to Pocketing $300,000 Generated from Sale of Fake BadgesRead the Press Release
SAN DIEGO – A Camarillo man pleaded guilty this afternoon to a federal theft offense, admitting that he stole more than $300,000 while serving as the chief of a tribal police department in southeastern San Diego County.
Anthony Reyes Vazquez, 49, who was head of the Manzanita Tribal Police Department from 2012 to 2018, pleaded guilty to one count of theft concerning programs receiving federal funds.
The Manzanita Tribal Police Department was not recognized by the Bureau of Indian Affairs or the State of California as a police department, and it did not have the authority to enforce federal or state laws, on or off the reservation.
According to a plea agreement filed in United States District Court in San Diego, Vazquez sold fake badges to buyers who made substantial payments to become members of the Manzanita Tribal Police Department and have privileges available to law enforcement officers, such as carrying concealed weapons.
Vazquez admitted that he and other tribal police officers recruited wealthy individuals in the Los Angeles area to become members of the Manzanita Tribal Police Department. These wealthy individuals often had little to no law enforcement experience before joining the police department. Vazquez and his recruiters asked these wealthy individuals to make large payments – ranging from $5,000 to $100,000 – in exchange for membership in the Manzanita Tribal Police Department, which included a badge purporting to allow the holder to carry a concealed weapon. Members of the “VIP Group” were not expected to perform any law enforcement services for the police department and many never visited the reservation which is home to the Manzanita Band of the Kumeyaay Nation.
As a result of this recruiting effort, dozens of individuals paid the recruiters and, in return, these individuals were made members of the Manzanita Tribal Police Department. Vazquez paid cash kickbacks or commissions to the recruiters and paid himself approximately $2,000 per month as purported reimbursement for travel expenses from his home to the reservation. In addition, Vazquez kept approximately $300,000 worth of donations from the VIP Group, which Vazquez admitted should have instead been given to the Manzanita Band. Vazquez did not disclose to the Manzanita Band that he was selling membership to the Manzanita Tribal Police Department to unqualified members in exchange for large sums of money or that he was paying himself out of money collected by recruiters.
As part of his plea, Vazquez also admitted that he suffered a felony drug conviction in 1992 and illegally possessed approximately two dozen firearms while serving as Chief of Police of the Manzanita Tribal Police Department.
Vazquez is scheduled to be sentenced by United States District Judge Gonzalo P. Curiel on January 24, 2022, at which time he will face a statutory maximum sentence of 10 years in federal prison.
The FBI investigated this matter with substantial assistance from the Los Angeles Police Department.
Assistant United States Attorneys Frances S. Lewis of the General Crimes Section and Andrew Galvin of the Southern District of California are prosecuting this case.
U.S. Attorney’s Office to Join Federal Law Enforcement Officers for a Press Conference Tomorrow in Myrtle Beach at 10 a.m.Read the Press Release
Myrtle Beach, South Carolina --- Acting United States Attorney Rhett DeHart announced today that a press conference will be held tomorrow, October 26, 2021, at 10 a.m., at the Myrtle Beach Police Department Annex at 3340 Mustang Street in Myrtle Beach, South Carolina 29577.
Represented at the press conference will be the U.S. Attorney’s Office for the District of South Carolina and representatives of the following law enforcement agencies: Internal Revenue Service (IRS) and Homeland Security Investigations (HSI).
WHEN: Tuesday, October 26, 2021, at 10 a.m.
WHERE: Myrtle Beach Police Department Annex
3340 Mustang Street
Myrtle Beach, South Carolina 29577
NOTE: Press inquiries regarding logistics should be directed to Assistant U.S. Attorney Derek A. Shoemake at 843-813-0982. Members of the media wishing to attend the remarks should arrive at the Myrtle Beach Police Department Annex fifteen minutes in advance.
#####
U.S. Attorney’s Office Partners with the Justice Department to Combat RedliningRead the Press Release
PROVIDENCE, R.I. – The U.S. Attorney’s Office for the District of Rhode Island announces today that it is partnering with the Justice Department’s Civil Rights Division as it launches the department’s new Combatting Redlining Initiative.
Redlining is an illegal practice in which lenders avoid providing services to individuals living in communities of color because of the race or national origin of the people who live in those communities. The new Initiative represents the department’s most aggressive and coordinated enforcement effort to address redlining, which is prohibited by the Fair Housing Act and the Equal Credit Opportunity Act.
“Lending discrimination runs counter to fundamental promises of our economic system,” said Attorney General Merrick B. Garland. “When people are denied credit simply because of their race or national origin, their ability to share in our nation’s prosperity is all but eliminated. Today, we are committing ourselves to addressing modern-day redlining by making far more robust use of our fair lending authorities. We will spare no resource to ensure that federal fair lending laws are vigorously enforced and that financial institutions provide equal opportunity for every American to obtain credit.”
“Our Office is proud to be at the front line of efforts to address the pernicious effects of redlining in our communities,” said Acting U.S. Attorney Myrus. “Addressing the lasting historical effects of this conduct starts with ensuring that no vestige of this conduct remains in current lending practices, and we look forward to working closely with our partners in the Civil Rights Division in this effort.”
Redlining, a practice institutionalized by the federal government during the New Deal era and implemented then and now by private lenders, has had a lasting negative impact. For American families, homeownership remains the principal means of building wealth, and the deprivation of investment in and access to mortgage lending services for communities of color have contributed to families of color persistently lagging behind in homeownership rates and net worth compared to white families. The gap in homeownership rates between white and Black families is larger today than it was in 1960, before the passage of the Fair Housing Act of 1968.
This Initiative, which will be led by the Civil Rights Division’s Housing and Civil Enforcement Section in partnership with U.S. Attorney’s Offices, will build on the longstanding work by the Division that seeks to make mortgage credit and homeownership accessible to all Americans on the same terms, regardless of race or national origin and regardless of the neighborhood where they live. The initiative will:
- Utilize U.S. Attorneys’ Offices as force multipliers to ensure that fair lending enforcement is informed by local expertise on housing markets and the credit needs of local communities of color.
- Expand the department’s analyses of potential redlining to both depository and non-depository institutions. Non-depository lenders are not traditional banks and do not provide typical banking services, but engage in mortgage lending and now make the majority of mortgages in this country.
- Strengthen our partnership with financial regulatory agencies such as to ensure the identification and referrals of fair lending violations to the Department of Justice.
- Increase coordination with State Attorneys General on potential fair lending violations.
Individuals may report lending discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291, or submitting a report online.
Additional information about the Rhode Island U.S. Attorney’s Office’s Civil Rights Programs is available at www.justice.gov/usao-ri.
###
U.S. Attorney’s Office Emmy Nominated Circles and Silence Debuts in Rhode Island SchoolsRead the Press Release
PROVIDENCE, R.I. – The United States Attorney’s Office’s Emmy nominated documentary Circles and Silence, a powerful sixteen-minute film narrated by a diverse group of Rhode Island young adults who share their personal journey through drug dependency and recovery, made its Rhode Island school debut in Cumberland last week with presentations to approximately 150 high school students.
The film’s classroom debut, scheduled for early 2021, was delayed due to COVID restrictions.
Circles and Silence documents the distinct paths that led these young people to addiction, in some instances to prison, and their journeys to successfully managing their addiction and recovery to pursue healthy and productive lifestyles. Several of the individuals profiled in the film appeared in-person at Cumberland High School for the film’s debut and participated in open and frank discussions with the students.
“Substance abuse continues to take a tremendous toll on every aspect of our communities, on our friends, and our family members,” commented Acting U.S. Attorney Richard B. Myrus. “I commend these individuals’ courage and willingness to share their struggles with addiction, and their determination to find a path forward, with students across Rhode Island.”
In addition to presenting the film, the United States Attorney’s Office Circles and Silence outreach program provides audiences with critical information about substance abuse disorder and the many prevention, recovery, and social service programs available statewide through an expansive network of providers.
The United States Attorney's Community Outreach Office is available to provide the Circles and Silence program to Rhode Island students grades 7-12, and to community and not-for-profit organizations at no cost. To learn more about the Circles and Silence Program or to schedule a presentation contact United States Attorney’s Office Community Engagement & Crime Prevention Coordinator David Neill at (401) 709-5035 or at [email protected].
The documentary film Circles and Silence was produced collaboratively by the United States Attorney’s Office and three Rhode Island-based production companies, Left of Creative, with offices in South Kingstown and Los Angeles, CA, DK Communications in Providence, and Ocean State Video in Cranston. Video clips of the film may be viewed and/or downloaded at https://www.justice.gov/usao-ri/circles-and-silence.
###
Two Thomson Penitentiary Inmates Sentenced to Additional Prison Time for Assaulting Another InmateRead the Press Release
ROCKFORD — Two Thomson Penitentiary inmates have been sentenced to additional prison time for assaulting another inmate.
U.S. District Judge John J. Tharp, Jr. on Thursday sentenced JASON MACKENZIE, 40, to eight years in prison, and CHRISTOPHER D. BARROW, 39, to eight years and nine months. These sentences must be served after their current sentences are completed.
The sentences were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorney Vincenza L. Tomlinson.
Barrow and Mackenzie admitted in plea agreements that on May 8, 2019, they punched, kicked, and stomped the head and body of another inmate multiple times, causing serious injuries.
A third defendant, BRADLEY SHELTON, also pleaded guity and admitted participating in the assault. Shelton is scheduled to be sentenced by Judge Tharp on March 15, 2022.
Two Harrisburg Men Sentenced for Drug Trafficking OffensesRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Tyquann Langston, age 26, and Donza Brown, age 58, both of Harrisburg, were sentenced by U.S. District Court Judge Christopher C. Conner for selling crack cocaine, heroin, and fentanyl, and operating a drug involved premises in Harrisburg from 2019 to August 2019.
According to Acting U.S. Attorney Bruce D. Brandler, on October 22, 2021, Langston was sentenced to 10 years’ imprisonment for his role in a conspiracy to traffick crack cocaine and other drugs in Harrisburg. On October 20, 2021, Brown was sentenced to 37 months’ imprisonment for selling crack cocaine and maintaining a drug involved premises at 1621 Market Street in Harrisburg. The location was the regular subject of drug trafficking, shootings and murders. Donza Brown pled guilty to maintaining this drug involved premises and to trafficking crack cocaine from it.
Members of the conspiracy were affiliated with a music group named “Never Forget Loyalty” or “NFL.” As a part of their drug trafficking operation, the “NFL” posted videos on YouTube which were filmed in various Harrisburg locales. In the videos, members of the group brandished various weapons, flashed cash, and displayed drugs. In a yearlong investigation, ATF and local law enforcement conducted a series of searches. During these searches police recovered a machine gun, assault rifles, and various weapons with extended magazines.
Co-defendants Qushawn Brown, age 30, Wesley Garner, age 28, and Anderson Ortiz, age 22, have pled not guilty to their role in these offenses. They are scheduled for trial in December 2021. Co-defendants Jaionne Miller, age 21, Adieas Johnson, age 33, and Kaleaf Brown, age 26, all of Harrisburg, entered guilty pleas to drug trafficking and weapons offenses and their sentences are pending before the court.
The case was investigated by Bureau of Alcohol Tobacco, Firearms, and Explosives, the Harrisburg Bureau of Police, and the Pennsylvania State Police. The case is being prosecuted by Assistant U.S. Attorney Michael Consiglio.
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.
# # #
The U.S. Attorney Announces a $400,000 Award from the U.S. Department of Justice in Support of the Sex Offender Registration and Notification Act (SORNA) in the U.S. Virgin IslandsRead the Press Release
ST. THOMAS, USVI – U.S. Attorney Gretchen C.F. Shappert announced today that the Government of the U.S. Virgin Islands has received a $400,000 grant from the U.S. Department of Justice in support of the Sex Offender Registration and Notification Act.
The award from the DOJ’s Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART) supports the vital work of the Virgin Islands Department of Justice (VIDOJ) efforts towards the implementation of SORNA initiatives. SORNA requires convicted sex offenders to register in the states in which they live, work, or attend school, and it directs the Attorney General to issue regulations and guidelines to implement SORNA.
“Sex offender registrations and notification systems are critical in our efforts to diminish the continued victimization of children subjected to sexual abuse,” Shappert said. “Consistent with the law, convicted sex offenders are expected to comply with registration requirements. This process helps law enforcement protect our communities.”
Congress enacted SORNA as part of the Adam Walsh Child Protection and Safety Act of 2006 to strengthen the nation’s sex offender registration programs, which exist in every state, and to ensure that sex offenders are effectively tracked as they move among jurisdictions. SORNA includes requirements regarding the sex offenses for which registration is required and the information sex offenders must provide to registration authorities; reporting of changes in, and periodic verification of, residence and other information; and the required duration of registration for sex offenders in different classes. SORNA also requires sex offenders to report travel abroad, which addresses the global concern over international sex tourism and trafficking.
The Department of Justice’s Office of Justice Programs (OJP) is a federal agency that provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. Its six program offices support state and local crime-fighting efforts, fund thousands of victim service programs, help communities manage sex offenders, address the needs of youth in the system and children in danger, and provide vital research and data. Learn more about the Sex Offender Notification Act at SORNA. For more information about DOJ’s Office of Justice Programs, see www.ojp.gov/about.
Tennessee State Senator and Nashville Social Club Owner Indicted for Alleged Campaign Finance SchemeRead the Press Release
A federal grand jury in Nashville, Tennessee, returned an indictment Friday charging Tennessee State Senator Brian Kelsey and a Nashville social club owner with violating campaign finance laws as part of an alleged scheme to benefit Kelsey’s 2016 campaign for U.S. Congress.
According to court documents, Kelsey, 43, of Germantown, and Joshua Smith, 44, of Nashville, conspired to and did secretly and unlawfully funnel what is commonly referred to as “soft money” from Kelsey’s Tennessee State Senate campaign committee to his authorized federal campaign committee. Kelsey and others also caused a national political organization to make illegal, excessive contributions to Kelsey’s federal campaign committee by secretly coordinating with the organization on advertisements supporting Kelsey’s federal candidacy and to cause false reports of contributions and expenditures to be filed with the Federal Election Commission (FEC).
The indictment alleges that Kelsey, Smith, and others orchestrated the concealed movement of $91,000 to a national political organization for the purpose of funding advertisements that urged voters to support Kelsey in the August 2016 primary election, and that the conspirators caused the political organization to make $80,000 worth of contributions to Kelsey’s federal campaign committee in the form of coordinated expenditures.
Kelsey and Smith are charged with conspiracy to defraud the FEC, illegally transferring “soft money” as a federal candidate and his agent, and illegally transferring “soft money” as a state officeholder and his agent. Kelsey is also charged with making excessive contributions to a federal campaign and accepting excessive contributions. The defendants are scheduled to make their initial court appearances on Nov. 5 before U.S. Magistrate Judge Jeffery S. Frensley of the U.S. District Court for the Middle District of Tennessee. If convicted, they face a maximum penalty of five years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division and Acting U.S. Attorneys Mary Jane Stewart for the Middle District of Tennessee and Joseph C. Murphy Jr. for the Western District of Tennessee made the announcement.
The FBI is investigating the case.
Trial Attorney John Taddei of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Amanda Klopf of the Middle District of Tennessee and David Pritchard of Western District of Tennessee are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Tennessee State Senator and Nashville Social Club Owner Indicted for Alleged Campaign Finance SchemeRead the Press Release
Indictment MEMPHIS – A federal grand jury in Nashville, Tennessee, returned an indictment Friday charging Tennessee State Senator Brian Kelsey and a Nashville social club owner with violating campaign finance laws as part of an alleged scheme to benefit Kelsey’s 2016 campaign for U.S. Congress.
According to court documents, Kelsey, 43, of Germantown, and Joshua Smith, 44, of Nashville, conspired to and did secretly and unlawfully funnel what is commonly referred to as "soft money" from Kelsey’s Tennessee State Senate campaign committee to his authorized federal campaign committee. Kelsey and others also caused a national political organization to make illegal, excessive contributions to Kelsey’s federal campaign committee by secretly coordinating with the organization on advertisements supporting Kelsey’s federal candidacy and to cause false reports of contributions and expenditures to be filed with the Federal Election Commission (FEC).
The indictment alleges that Kelsey, Smith, and others orchestrated the concealed movement of $91,000 to a national political organization for the purpose of funding advertisements that urged voters to support Kelsey in the August 2016 primary election, and that the conspirators caused the political organization to make $80,000 worth of contributions to Kelsey’s federal campaign committee in the form of coordinated expenditures.
Kelsey and Smith are charged with conspiracy to defraud the FEC, illegally transferring "soft money" as a federal candidate and his agent, and illegally transferring "soft money" as a state officeholder and his agent. Kelsey is also charged with making excessive contributions to a federal campaign and accepting excessive contributions. The defendants are scheduled to make their initial court appearances on Nov. 5 before U.S. Magistrate Judge Jeffery S. Frensley of the U.S. District Court for the Middle District of Tennessee. If convicted, they face a maximum penalty of five years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division and Acting U.S. Attorneys Mary Jane Stewart for the Middle District of Tennessee and Joseph C. Murphy Jr. for the Western District of Tennessee made the announcement.
The FBI is investigating the case.
Trial Attorney John Taddei of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Amanda Klopf of the Middle District of Tennessee and David Pritchard of Western District of Tennessee are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Tennessee State Senator Brian Kelsey and Nashville Social Club Owner Indicted in Campaign Finance ConspiracyRead the Press Release
NASHVILLE – A federal grand jury in Nashville Friday, returned a five-count indictment charging Tennessee State Senator Brian Kelsey, 43, of Germantown, Tennessee, and Nashville social club owner Joshua Smith, 44, with violating multiple campaign finance laws as part of a conspiracy to benefit Kelsey’s 2016 campaign for U.S. Congress.
Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee, Assistant Attorney General Kenneth A. Polite, Jr. of the Department of Justice Criminal Division, and Acting U.S. Attorney for the Western District of Tennessee Joseph C. Murphy, Jr. made the announcement.
According to the indictment, beginning in February 2016 and continuing through mid-October 2016, Kelsey and Smith conspired with others to violate federal campaign finance laws to secretly and unlawfully funnel “soft money” (funds not subject to the limitations, prohibitions, and reporting requirements of the Federal Election Campaign Act [FECA]) from Kelsey’s Tennessee State Senate campaign committee to his authorized federal campaign committee. Kelsey and others also caused a national political organization to make illegal, excessive contributions to Kelsey’s federal campaign committee by secretly coordinating with the organization on advertisements supporting Kelsey’s federal candidacy and to cause false reports of contributions and expenditures to be filed with the Federal Election Commission.
In 2016, the FECA limited campaign contributions to $2,700 from any one individual or organization to any one candidate in each election.
The indictment alleges that Kelsey, Smith, and other unindicted coconspirators orchestrated the concealed movement of $91,000 to a national political organization for the purpose of funding advertisements that urged voters to support Kelsey in the August 2016 primary election, and that the conspirators caused the political organization to make $80,000 worth of contributions to Kelsey’s federal campaign committee in the form of coordinated expenditures. The indictment alleges other meetings and communications between the conspirators, resulting in the illegal transfers, contributions, and expenditures associated with Kelsey’s federal campaign.
Kelsey and Smith are charged with conspiracy, illegally transferring “soft money” as a federal candidate and his agent, and illegally transferring “soft money” as a state officeholder and his agent. Kelsey is also charged with making excessive contributions to a federal campaign and accepting excessive contributions. If convicted, they face up to 5 years in prison and a $250,000 fine on each count.
A summons has been issued by the Court and Kelsey and Smith are directed to surrender to U.S. Marshals in the Middle District of Tennessee on or before November 5, 2021, at 10 a.m. and both will make an initial appearance before a U.S. Magistrate Judge.
This case was investigated by the FBI. Assistant U.S. Attorneys Amanda Klopf of the Middle District of Tennessee and David Pritchard of the Western District of Tennessee and Trial Attorney John Taddei of the Criminal Division’s Public Integrity Section of the Department of Justice are prosecuting the case.
An indictment is merely an accusation. The defendants are presumed innocent until proven guilty in a court of law.
# # # # #
Springfield Man Sentenced to 15 Years for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Missouri, man who downloaded thousands of images and videos of child pornography was sentenced in federal court today.
Nicholas Goins, 36, was sentenced by U.S. District Judge M. Douglas Harpool to 15 years in federal prison without parole. The court also sentenced Goins to spend the rest of his life on supervised release following incarceration and ordered Goins to pay $24,000 in restitution to his victims. Goins will be required to register as a sex offender upon his release from prison and will be subject to federal and state sex offender registration requirements, which may apply throughout his life.
On March 3, 2020, Goins pleaded guilty to one count of receiving and distributing child pornography. He has been in federal custody since December 2019.
According to court documents, law enforcement officers executed a search warrant at Goins’s residence on March 7, 2019. Officers seized multiple digital storage devices, which contained thousands of images and videos of child pornography. A forensic examination discovered messaging sessions with other individuals in which they shared child pornography. Goins actively encouraged such exchanges. One of the participants posted imagery of himself sexually abusing a 4-year-old child victim, for which he was charged in another district.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Springfield, Mo., Police Department, the Southwest Missouri Cyber Crimes Task Force and the FBI.
Project Safe Childhood
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."
South Florida Resident Pleads Guilty to Attempting to Provide Material Support to TerroristsRead the Press Release
Miami, Florida – A 29-year-old man has pled guilty in federal district court in Miami to attempting to materially support terrorism, in violation of Title 18, United States Code, Section 2339A.
According to court documents, Samuel Baptiste attempted to provide material support to a terrorist act through the use of an explosive device by providing information on November 6, 2016 pertaining to the construction of explosive devices by posting internet links and portions of a manual containing specific instructions on the construction of explosives, to persons whom he believed were acting on behalf of ISIS.
At sentencing, Baptiste faces a maximum statutory sentence of up to 15 years in prison, a lifetime of supervised release, and a $250,000 fine. Sentencing has been scheduled for January 5, 2021 at 1:30pm in front of the Honorable Jose E. Martinez, in Miami, Florida.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida and George L. Piro, Special Agent in Charge, FBI Miami, announced the guilty plea.
The case was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Marc S. Anton and Michael Thakur.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number: 18-cr-20613.
###
South Carolina Man Indicted for Assault on Law Enforcement During Jan. 6 Capitol BreachRead the Press Release
WASHINGTON — A South Carolina man was indicted today for crimes related to the breach of the U.S. Capitol on Jan. 6, which disrupted a joint session of the U.S. Congress that was in the process of ascertaining and counting the electoral votes related to the presidential election. A second man, from Texas, was indicted in the case on related charges.
George Amos Tenney III, 35, of Anderson, S.C., was indicted on three felony charges, including assaulting, resisting, or impeding certain officers, civil disorder, and obstructing an official proceeding. as well six other misdemeanor charges. Darrell Youngers, 32, of Cleveland, Texas, is charged with four misdemeanor offenses. Both men were arrested on June 29, 2021, following the filing of a criminal complaint. They will be arraigned on a future date in the District of Columbia.
According to court documents, before Jan. 6, Tenney wrote on Facebook, “It’s starting to look like we may siege the capital building [sic] and [C]ongress if the electoral votes don’t go right. We are forming plans for every scenario.” Tenney and Youngers were captured on video as they moved through the U.S. Capitol together on Jan 6, entering by approximately 2:19 p.m. through the Senate Wing Door. Tenney and Youngers eventually made their way to the East Rotunda Doors. While there, Tenney sought to force open the doors from inside, despite police efforts to keep them closed, and helped rioters amassed outside get into the building. He also grabbed an employee of the House Sergeant at Arms, locked arms with a U.S. Capitol Police officer, and pushed another Capitol Police officer. Tenney and Youngers eventually retreated into the Rotunda.
This case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section. Valuable assistance was provided by the U.S. Attorney’s Office for the District of South Carolina and the U.S. Attorney’s Office for the Southern District of Texas.
The case is being investigated by the FBI’s Greenville, S.C. Resident Agency and Houston Field Office, as well as the Metropolitan Police Department. Significant assistance was provided by the U.S. Capitol Police.
In the nine months since Jan. 6, more than 650 individuals have been arrested in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including over 190 individuals charged with assaulting or impeding law enforcement. The investigation remains ongoing.
Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.
The charges contained in any criminal complaint or indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Sidney Man Sentenced for Child Pornography OffensesRead the Press Release
COUNCIL BLUFFS, Iowa – Kenneth Howard Crum, Jr., age 33, of Sidney, Iowa, was sentenced today by United States District Court Judge Stephanie M. Rose to 210 months in prison for Receipt and Possession of Child Pornography. His prison term will be followed by 10 years of supervised release. According to court documents, Crum pleaded guilty to the offenses in June of 2021.
In November 2020, law enforcement investigated Crum for harassing his ex-wife through postings on the internet. The investigation revealed Crum also took pictures of children and posted the images on various internet websites. A search warrant was obtained to seize Crum’s cellular telephone and a forensic examination of the cell phone located images and videos of child pornography, most involving children less than 12 years of age.
Acting United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Fremont County Sheriff’s Office and the Iowa Division of Criminal Investigation - Iowa Internet Crimes Against Children Task Force investigated the case.
Shooting at Drug Deal in Redwood City Results in More Than Seven-Year Prison Sentence for Stockton ManRead the Press Release
SAN FRANCISCO– Khari Moore and Malik Lott were sentenced today to 87 months and 12 months and one day in prison for their respective roles in a scheme to obtain marijuana from a Redwood City drug dealer for distribution, announced Acting United States Attorney Stephanie M. Hinds and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge, San Francisco Field Division, Patrick Gorman. Moore also sentenced after pleading guilty to brandishing a weapon during the attempted drug deal. The sentence was handed down by the Honorable Susan Illston, Senior U.S. District Judge.
On July 9, 2021, Lott pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute marijuana, in violation of 21 U.S.C. §§ 846, 841(a)(1) and (b)(1)(D). On July 20, 2021, Moore pleaded guilty to the conspiracy charge and, in addition, to one count of brandishing of a firearm during and in relation to and in furtherance of a drug trafficking crime, in violation of 18 U.S.C. § 924(c)(1)(A)(ii). The facts underlying the convictions were set out in the defendants’ plea agreements.
According to the plea agreements, Moore made contact on the Internet with a person who agreed to sell marijuana. Lott admitted that in the days before April 8, 2018, he communicated with the seller of the marijuana via text message and settled the details of the drug transaction. Lott and Moore admitted that on April 8, 2018, they both travelled with others from Stockton, Calif., to Redwood City and with the purpose of purchasing four pounds of marijuana for the agreed-upon price of $4,000. Further, Moore and Lott acknowledged that the purpose of obtaining the marijuana was to resell the drugs for a profit. At the time of meeting, Moore and Lott met with the seller of the marijuana and another individual in a pickup truck that was parked in the parking lot of a liquor store in Redwood City. At some point during the meeting in the pickup truck, Moore brandished a .45 caliber handgun and fired it multiple times. The driver of the pickup truck was shot multiple times in the face and back, causing extensive injuries. Moore and Lott then fled the scene and returned to Stockton without the marijuana from the seller.
On July 13, 2021, Moore was charged with the drug distribution conspiracy and weapons charge. He pleaded guilty to both counts. Lott was charged by indictment on October 1, 2020, with the conspiracy charge, as well as additional drug trafficking, robbery, and conspiracy to commit robbery charges. As part of his plea agreement, Loot pleaded guilty to the drug distribution conspiracy charge and the other charges were dismissed.
The defendants both will begin serving their prison terms immediately. In addition to the prison terms, Senior District Judge Illston ordered the defendants to serve five years and three years of supervised release and ordered Moore to pay restitution.
Assistant U.S. Attorney Ross Weingarten is prosecuting the case with the assistance of Linda Love. The prosecution is the result of an investigation by the ATF and Redwood City Police Department.