Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
25 October 2021
Sequim, Washington, man sentenced to 70 months in prison for dealing methamphetamine while armed with semi-automatic pistolRead the Press Release
Tacoma– A 57-year-old Sequim, Washington, man was sentenced today in U.S. District Court in Tacoma to 70 months in prison. Kenneth Francis Simmons came to the attention of law enforcement in early 2019, as a prolific methamphetamine dealer in the Sequim area, as well as on the Lower Elwha and Jamestown S’Klallam Indian Reservations. U.S. District Judge Benjamin H. Settle noted that the sentence was aimed at protecting the community since methamphetamine is a poison that ruins lives.
“Methamphetamine not only destroys the lives of those who use it, but it also destroys the lives of the families and friends who witness the toll this drug takes on their loved ones,” said U.S. Attorney Nick Brown. “As a long-time dealer, this defendant touched the lives of long-time addicts, first-time users, and everyone in between. For community safety this sentence is an important first step.”
According to records filed in the case, the FBI and the Olympic Peninsula Narcotics Enforcement Team (OPNET) began investigating Simmons in 2019. On four occasions in July 2019, a person working with law enforcement purchased methamphetamine from Simmons. On August 16, 2019, a Clallam County Sheriff’s Deputy stopped Simmons for speeding. Ultimately, Simmons’ car was impounded, and a court authorized search revealed that he had methamphetamine packaged for resale, as well as a firearm. Due to his prior felony convictions Simmons is prohibited from possessing firearms.
On September 1, 2021, Simmons pleaded guilty to being a Felon in Possession of a Firearm, Possession of Methamphetamine with Intent to Deliver, Possession of a Firearm in Furtherance of a Drug Trafficking Crime, and Distribution of Methamphetamine.
The case was investigated by the FBI and Olympic Peninsula Narcotics Enforcement Team (OPNET).
The case was prosecuted by Assistant United States Attorney J. Tate London. Mr. London serves as Tribal Liaison for the U.S. Attorney’s Office.
San Marino Man Who Drove Truck into Demonstrators Sentenced to Federal Prison for Committing Various Firearms OffensesRead the Press Release
LOS ANGELES – A San Gabriel Valley man who last year drove his truck into a crowd of demonstrators in Pasadena was sentenced today to one year and one day in federal prison for violating multiple firearms laws, including illegally obtaining and transporting weapons.
Benjamin Jong Ren Hung, 29, a San Marino resident who also has a home in Lodi, was sentenced by United States District Judge Stephen V. Wilson, who also ordered Hung to pay a $10,000 criminal fine and perform 120 hours of community service.
Hung pleaded guilty on May 12 to a superseding information charging him with 11 felonies: one count of conspiracy, two counts of transporting and receiving firearms across state lines, five counts of making false statements during the purchase of firearms and three counts of possession of unregistered firearms.
From July 2014 to August 2018, Hung participated in a multi-year conspiracy to make false statements to firearms dealers in Oregon and to illegally transport those firearms to California. Hung provided cash to a co-conspirator in Oregon to buy handguns for Hung and to falsely state that the co-conspirator was the actual buyer, rather than Hung. The co-conspirator then delivered the firearms to Hung in California. Hung admitted in his plea agreement that he engaged in the scheme to obtain the firearms and “evade California’s firearms registration laws.”
Hung also made false statements to firearms dealers in Washington in connection with his purchase of four rifles and one shotgun in March 2020. When he purchased the firearms, Hung falsely attested that he was a resident of Washington, rather than California, which was material because, as Hung admitted in the plea agreement, “the firearms dealers were not legally permitted to sell firearms to California residents.” Hung illegally transported those firearms into California and illegally possessed three unregistered short-barreled semiautomatic rifles, which authorities seized from his residence in Lodi in September 2020.
In court documents, Hung admitted to bringing one of his illegally obtained firearms, a Glock 26 9mm handgun, to counterprotest in Old Town Pasadena against a group who had gathered on May 31, 2020, to protest unequal treatment of minorities by police, including the murder of George Floyd at the hands of a Minneapolis Police officer. Hung, who was driving a customized Dodge pickup truck with license plates reading “WAR R1G,” accelerated toward an intersection where the protest was taking place, sounded a train horn installed on the truck, came to a stop, and then continued through the intersection. As he drove past the demonstrators, Hung caused the truck to emit a large amount of exhaust in what is sometimes called “coal rolling.” No protesters were injured during the incident.
Judge Wilson described Hung as “looking for trouble” when he went to the protests and determined that while Hung did not intend to endanger anyone’s life, he engaged in “threatening” behavior designed to “intimidate” and “create fear.”
Local police detained Hung following his confrontation with the demonstrators, and the FBI then took over the investigation.
“Over a seven-year period, in preparation for what he described as an upcoming ‘civil war’…Benjamin Hung illegally accumulated a massive cache of weapons,” prosecutors wrote in a sentencing memorandum. “[Hung’s] motives were clear: his messages to friends reflected increasingly violent rhetoric, including his desire not to defend himself, but to seek out and ‘eradicate’ his perceived enemies.”
The FBI’s Los Angeles Joint Terrorism Task Force, FBI civil rights squads and the Pasadena Police Department investigated this matter.
Assistant United States Attorneys Frances S. Lewis and David T. Ryan, both of the General Crimes Section, prosecuted this case.
Proctor Man Sentenced for Being a Felon in Possession of a FirearmRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on October 25, 2021, Robert Callahan, 37, of Proctor, Vermont, was sentenced by U.S. District Judge William K. Sessions III to serve 18 months in prison for possessing a firearm after having been previously convicted of a felony offense. Judge Sessions also ordered Callahan to serve a two-year term of supervised release.
According to court records and proceedings, on November 13, 2020, Rutland City Police Officers were searching for a man in Castleton related to a criminal investigation. Officers located the man riding in Callahan’s vehicle. After Callahan consented to a search of his vehicle, law enforcement discovered drugs and drug paraphernalia inside. After Callahan was arrested, a search of his person revealed a loaded Taurus 9mm handgun in Callahan’s waistband. Callahan was determined to be a felon, having been convicted in 2005 of conspiracy to distribute heroin.
Acting U.S. Attorney Jonathan A. Ophardt commended the efforts of the Rutland City Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives in the investigation and prosecution of Callahan.
Assistant U.S. Attorney Barbara A. Masterson handled the prosecution of Callahan. Assistant Federal Public Defender David L. McColgin represented Callahan.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. https://www.justice.gov/psn
Port Townsend, Washington, man sentenced to 8+ years in prison for raping child while on trip to CanadaRead the Press Release
Tacoma, WA – A 63-year-old Port Townsend, Washington, man was sentenced today in U.S. District Court in Tacoma to 102 months in prison and ten years of supervised release for raping a 6-year-old child while on a vacation in Canada. John Timothy Whicher pleaded guilty to engaging in illicit sexual conduct in a foreign place in February 2021. At the sentencing hearing, U.S. District Judge Benjamin H. Settle said, the victim “has a life sentence…. He’ll live with this. This kind of horrendous assault follows a victim through their entire life.”
“Child sexual abuse has been linked to long-term trauma, health and social problems for victims, including addiction and suicide risk,” said U.S. Attorney Nick Brown. “The conduct in this case was a shocking betrayal to the child and the child’s family. Law enforcement both here and in Canada worked collaboratively seeking justice in this case.”
According to records filed in the case and the plea agreement, in August 2017, Whicher took the 6-year-old child to Canada to stay at a family cabin in Ontario. When the child returned from the trip, the child disclosed to a parent the sexual molestation, saying Whicher said to keep it a secret. The parent confronted Whicher and reported the conduct to the Port Townsend Police.
Port Townsend Police contacted authorities in Canada. When Canada filed to extradite Whicher to face charges and forwarded the request to the U.S. Attorney’s Office in Seattle, federal prosecutors first learned of the criminal conduct. Assistant United States Attorneys worked with local and Canadian law enforcement to bring appropriate charges in the Western District of Washington.
Speaking to the court today, the mother of the victim said Whicher, “turned out to be the biggest threat in both of our lives.”
Whicher will be required to register as a sex offender following his release from prison.
The case was investigated by Homeland Security Investigations (HSI) and the Port Townsend Police Department. Canadian law enforcement provided critical assistance. The case was prosecuted by Assistant United States Attorney Matthew Hampton.
Painted Post Man Who Offered Images of Child Pornography to an Undercover Investigator Online Is Going to PrisonRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that Jordan Sowersby, 27 of Painted Post, NY, who was convicted of possessing child pornography depicting prepubescent minors, after having sustained a prior child pornography conviction, was sentenced to serve 10 years in prison, followed by 20 years of supervised release by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Kyle P. Rossi, who handled the case, stated that in January and February 2021, an undercover FBI Special Agent located the defendant offering child pornography for download on the internet. The undercover agent downloaded child pornography directly from Sowersby, which enabled the FBI to determine the defendant’s location in Painted Post. Subsequent investigation revealed that Sowersby is a registered sex offender as a result of a prior New York State child pornography conviction.
On February 26, 2021, the FBI, accompanied by members of the Steuben County Sheriff’s Office and the New York State Police, executed a federal search warrant at the defendant’s home and seized multiple digital devices. A forensic analysis recovered hundreds of images and videos of child pornography.
The sentencing is the result of an investigation by the Corning, NY, Office of the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Steuben County Sheriff’s Office, under the direction of Sheriff James Allard; and the New York State Police, under the direction of Major Barry Chase.
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Outdoor Apparel Company Owner Guilty of Violating National Forest Service Regulations as part of Marketing CampaignRead the Press Release
GRAND JUNCTION – David Lesh was found guilty of violating National Forest Service regulations for snowmobiling at Keystone Resort, which was closed in April 2020. United States Magistrate Judge Gordon P. Gallagher issued the findings on October 22, 2021, in a written decision.
In its Decision and Order, the Court found that as part of an advertising and marketing campaign for his outdoor apparel company, Lesh rode a snowmobile at Keystone Resort in April 2020, and then posted pictures of his activities on Instagram. The Court found posting the photos on Instagram constituted selling or offering for sale merchandise or conducting unauthorized work activity on National Forest Service lands.
At the time Lesh entered the resort, Keystone was closed due to the COVID-19 pandemic. Keystone employees had used plows to create snow barriers in front of terrain park features to make them inaccessible. Signs were posted around Keystone indicating that the ski areas and terrain park were closed. On April 25, 2020, snowmobile tracks were found looping around a ski jump. There was also evidence that a utility shed had been entered and a snow shovel removed. Snowmobile tracks also indicated that snowmobiling had occurred around the resort, in the terrain park, through the Erickson Bowl, and down a trail on National Forest Service lands.
Pictures were posted on Lesh’s Instagram account on April 25, 2020, featuring an individual wearing outdoor apparel and jumping a red and black snowmobile off a jump at Keystone. A caption initially read, “Solid park sesh, no lift ticket needed.”
A bench trial in this matter occurred in Grand Junction on August 5, 2021. The Court’s decision finds Lesh guilty of violating 36 C.F.R. Sections 261.14 and 261.10(c). Both offenses are misdemeanors. Lesh will be sentenced by the Court at date that is yet to be determined.
The matter was investigated by the National Forest Service. Assistant United States Attorney Peter Hautzinger is in charge of the prosecution.
Case Number: 1:20-po-07016-GPG
Omaha Man Sentenced to 48 Months for Unlawful Firearm PossessionRead the Press Release
Acting United States Attorney Jan Sharp announced that Delbert Lewis, age 28, of Omaha, Nebraska, was sentenced today in federal court in Omaha for being a felon in possession of a firearm. Chief United States District Court Judge Robert F. Rossiter, Jr. sentenced Lewis to 48 months’ imprisonment. There is no parole in the federal system. After completing his term of imprisonment, Lewis will begin a three-year term of supervised release.
On December 21, 2020, Omaha Police officers pulled over a vehicle in Omaha. Lewis was in the rear passenger seat. Officers searched the vehicle and found a loaded Glock 43, 9 mm pistol. Lewis later told police that the firearm was his and that he put it under the seat in front of him. Lewis was prohibited from possessing firearms because of prior felony convictions from Indiana for burglary, attempted robbery, and escape. In Lewis’s attempted robbery case, he attempted to take money from a victim by pointing a firearm at him.
This case was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
The case was investigated by the Omaha Police Department.
Nigerian National Guilty of Elder Fraud Related Violations in the Eastern District of TexasRead the Press Release
PLANO, Texas – A Nigerian national has pleaded guilty to federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Sobanke Idris Sunday Adereti, 24, pleaded guilty to false use of a passport and attempted bank fraud today before U.S. Magistrate Judge Kimberly Priest Johnson.
According to information presented in court, Adereti knowingly used a false passport in an attempt to open a bank account for the purpose of furthering fraud schemes and engaging in money mule activity.
“A significant danger of document fraud is that it helps fraudsters move their ill-gotten gains through the US bank system by concealing it in legitimate-looking bank accounts,” said Acting U.S. Attorney Nicholas J. Ganjei, adding, “this not only affects our banks but also the individual victims whose identities were used to open the accounts. Thanks to astute bank employees and the quick work of law enforcement, this defendant was prevented from further fraud against innocent victims.”
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 10am-6pm Eastern Time, Monday-Friday. English, Spanish, and other languages are available.
The case was investigated by the Diplomatic Security Service of the U.S. Department of State, the U.S. Secret Service, the U.S. Small Business Administration-Office of Inspector General, and with assistance from the Federal Bureau of Investigation.
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Navistar Inc. to Reduce 10,000 Tons of NOx Emissions and Pay $52 Million Civil Penalty in Federal Settlement of Clean Air Act ClaimsRead the Press Release
Navistar Inc., an integrated manufacturer of trucks and diesel engines based in Lisle, Illinois, has agreed to mitigate at least 10,000 tons of oxides of nitrogen (NOx) emissions and pay a $52 million civil penalty in a consent decree, lodged today, to resolve violations of the Clean Air Act. In particular, Navistar illegally introduced into commerce on‑highway Heavy-Duty Diesel Engines (HDDEs) that were not covered by EPA-issued certificates of conformity.
In 2015, the United States filed suit against Navistar alleging that in 2010, after lower emission standards went into effect, the company introduced into commerce 7,749 HDDEs that were not certified and did not meet the lower emission standards. Navistar had marketed and sold the engines installed in its international-branded trucks as being EPA-certified model year 2009 engines even though it completed all manufacturing and assembling processes for the engines in 2010. The court held that the engines were in fact model year 2010 engines and required to be covered by a 2010 certificate of conformity demonstrating compliance with the lower emission requirements.
“This settlement shows we will hold companies accountable when they skirt the law to gain advantage at the expense of public health,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The department’s steadfast pursuit of this case achieved a just result, including that the company must mitigate the harm it caused and, in doing so, specifically must consider assisting communities overburdened by pollution.”
“Older diesel engines without modern emissions controls emit significant amounts of air pollution that harms people’s health and takes years off people’s lives,” said Acting Assistant Administrator Larry Starfield for the EPA’s Office of Enforcement and Compliance Assurance. “This harm is greatest in communities near busy roadways, which are too often overburdened by high levels of ozone and particulate matter pollution. Today’s settlement will protect these vulnerable communities by preventing the emission of 10,000 tons of NOx from older, heavily-polluting commercial vehicles and equipment.”
Under the settlement, Navistar will pay a civil penalty of $52 million, forfeit its current account of NOx credits, and purchase and destroy enough older diesel engines to prevent 10,000 tons of future NOx emissions, a powerful air pollutant known to cause significant adverse health effects. The settlement requires Navistar to structure its mitigation of NOx emissions through one or more programs approved by EPA that will take into consideration geographic diversity and benefits to communities that are overburdened by air pollution. Navistar will report back to the EPA on its implementation of the program to ensure compliance with the environmental justice and geographic distribution requirements in the consent decree.
This settlement comes after more than six years of diligent prosecution by the United States. The United States prevailed in the first phase of litigation when the U.S. District Court for the Northern District of Illinois held that Navistar was liable for the alleged violations. In the second phase, and facing an imminent trial on the remedies, the parties reached the negotiated resolution that is captured by the consent decree
More information about this settlement can be found here.
The consent decree for this settlement was lodged in the U.S. District Court for the Northern District of Illinois and is subject to a 30-day public comment period and final court approval. https://www.justice.gov/enrd/consent-decrees.
Monongalia County woman admits to drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Suzanne Adiyeh, of Morgantown, West Virginia, has admitted to a drug charge, United States Attorney William J. Ihlenfeld, II announced.
Adiyeh, 40, pleaded guilty today to one count of “Aiding and Abetting the Maintaining Drug-Involved Premises.” Adiyeh admitted to working with another to manage a place on Willowdale Road in Morgantown in Monongalia County for the purpose of storing, using, and distributing cocaine base and cocaine hydrochloride in May 2020.
Adiyeh faces up to 20 years incarceration and a fine of up to $500,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Zelda E. Wesley and Sarah E. Wagner are prosecuting the case on behalf of the government. The FBI's Northern West Virginia Drug Task Force in partnership with the Mon Metro Drug Task Force, a HIDTA-funded initiative, investigated. The Task Forces have members from the Federal Bureau of Investigation; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; West Virginia State Police; Monongalia County Sheriff's Office; and, the Morgantown, WVU, Granville and Star City Police Departments. The investigation was also assisted by the following law enforcement partners: the Monongalia County Prosecutor’s Office, the FBI in Houston, Texas; the Houston Police Department's Multi Agency Gang Initiative; the United States Postal Inspection Service in Houston; and, the FBI and DEA in Los Angeles, California.
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.
U.S. Magistrate Judge Michael John Aloi presided.
Find more about the case here: https://www.justice.gov/usao-ndwv/pr/25-people-indicted-drug-trafficking-operation-spanned-several-states
Mexican National Convicted at Cocaine-Trafficking TrialRead the Press Release
MOBILE, AL – A federal jury convicted a Mexican national last week for possessing with intent to distribute multiple kilograms of cocaine.
According to court documents and evidence presented at trial, Gilberto Gonzalez-Gonzalez, 44, of Houston, Texas, was driving a flatbed truck from Houston to Atlanta, Georgia when he was stopped by a Baldwin County sheriff’s deputy for a traffic violation on Interstate 65. The jury heard evidence that on January 25, 2021, Gonzalez had driven the truck from Texas to Alabama while his passenger and codefendant, Daniel Eric Corona, slept. Gonzalez and Corona lacked proper paperwork for the load that they were purporting to haul and had no valid proof of insurance.
During a consent search of the truck, deputies pried open a locked compartment and found a duffel bag containing 16 individually wrapped bundles of cocaine weighing more than 35 pounds in total. According to expert testimony presented at trial, the cocaine had a wholesale value of more than $500,000 and a street value of more than $6 million. The jury also reviewed evidence from Gonzalez’s cell phone containing images of cocaine and WhatsApp messages discussing “kilos” and prices of cocaine. Gonzalez’s crime carries a potential sentence of ten years to life in prison. He will be sentenced by United States District Judge Terry F. Moorer in February 2022.
Corona pleaded guilty to a cocaine-trafficking conspiracy charge in September 2021. He also faces ten years to life in prison and will be sentenced by Judge Moorer on December 16, 2021.
U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.
The Drug Enforcement Administration, Homeland Security Investigations, and the Baldwin County Sheriff’s Office Drug Task Force investigated the case.
Assistant U.S. Attorneys Justin Roller and Deborah Griffin prosecuted the case on behalf of the United States.
Manhattan Man Pleads Guilty to $6.9 Million Scheme to Defraud Loan Program Intended to Help Small Businesses During COVID-19 PandemicRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that MARCUS FRAZIER pled guilty to carrying out a fraudulent scheme to obtain $6.9 million in government-guaranteed loans designed to provide relief to small businesses during the novel coronavirus/COVID-19 pandemic. FRAZIER pled guilty before United States District Judge Alison Nathan, to whom his case is assigned.
U.S. Attorney Damian Williams said: “Marcus Frazier sought millions of dollars in unsecured SBA-guaranteed loans for which his businesses did not qualify. He lied about the number of people employed by his businesses, the salaries they were paid, even that these employees existed. Further, Frazier used the loan proceeds he obtained to fund his lavish lifestyle, not to pay permissible expenses. Now Marcus Frazier awaits sentencing for his admitted crimes.”
According to the allegations in the Complaint, court filings, and statements made during plea proceedings:
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other business expenses through the Paycheck Protection Program (the “PPP”). The PPP allows qualifying small businesses and other organizations to receive unsecured loans guaranteed by the U.S. Small Business Administration (the “SBA”). PPP loan proceeds must be used by businesses for payroll costs, mortgage interest, rent, and/or utilities, among other specified expenses. Pursuant to the CARES Act, the amount of PPP funds a business is eligible to receive is determined by the number of employees employed by the business and its average payroll costs. Businesses applying for a PPP loan must provide documentation to confirm that they have in the past paid employees the compensation represented in the loan application.
Between in or about May 2020 and in or about April 2021, FRAZIER submitted to the SBA at least seven applications for PPP loans for various businesses that he controlled (collectively, the “Frazier Companies”). These applications relied upon fraudulent statements regarding the number of employees of each business and the amount of payroll involved in each business, and were submitted, in many cases, alongside fake bank statements, designed to support FRAZIER’s false statements. These fake bank statements included, among other things, fraudulent account statements for a checking account that showed balances far greater than the account actually held, and that depicted payroll withdrawals that never occurred. FRAZIER also submitted lists of employees on the purported payrolls of the Frazier Companies, which included names and Social Security numbers which do not match the records of the Social Security Administration, suggesting that FRAZIER fabricated the employee records. On at least one occasion, FRAZIER also provided documents purporting to show that one of the Frazier Companies had been in existence for approximately 10 years. In fact, the corporate entity had not been registered until in or about July 2020, months after the onset of the COVID-19 pandemic.
FRAZIER sought a total of more than approximately $6.9 million in PPP loans and was awarded at least approximately $2.17 million. A substantial portion of the funds awarded was spent not on payroll for the Frazier Companies but, rather, on FRAZIER’s personal expenses. During the period between on or about June 18, 2020, shortly after his first PPP loan was funded, and on or about April 7, 2021, FRAZIER utilized PPP funds to spend approximately $124,982 on hotels, including more than approximately $88,791 at a luxury hotel located in Miami, Florida. During the same period, FRAZIER spent approximately $63,000 on restaurants and food service, approximately $17,000 on transportation using the ride-hailing app Uber, approximately $16,519 on airline travel, and approximately $11,000 on clothing. During this same period, FRAZIER collected approximately $21,000 in unemployment benefits.
In addition, between in or about January 2018 and in or about November 2019, FRAZIER engaged in a scheme to obtain personal loans from financial institutions and to evade the payment of credit card debt by making false representations, and sending fake documents, to lenders and banks.
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FRAZIER, 48, of New York, New York York, pled guilty to two counts of wire fraud affecting a financial institution, in violation of 18 U.S.C. § 1343, each of which carries a maximum sentence of 30 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
FRAZIER is scheduled to be sentenced by Judge Nathan on March 1, 2022, at 3:00 p.m.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation, the SBA Office of the Inspector General, the Internal Revenue Service, and the Federal Deposit Insurance Corporation Office of the Inspector General.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Katherine Reilly is in charge of the prosecution.
Man Residing in Bakersfield Sentenced to 9 Years in Prison for Attempting to Sell Large Amount of Fentanyl, Cocaine and MethamphetamineRead the Press Release
FRESNO, Calif. — Jose Mario Quintero Beltran, 31, a citizen of Mexico unlawfully residing in Bakersfield, was sentenced today to nine years in prison for possessing with the intent to distribute fentanyl, cocaine, and methamphetamine, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on March 31, 2021, Quintero Beltran arranged to meet a customer at a Bakersfield shopping mall and sell him 20,000 counterfeit oxycodone pills containing fentanyl for $42,000. During their meeting, Quintero Beltran also offered to sell the customer methamphetamine. Afterwards, law enforcement officers searched Quintero Beltran’s vehicle and residence and located a total of 51,000 counterfeit oxycodone pills containing fentanyl, packages containing an additional 15 kilograms of fentanyl, one kilogram of cocaine, and approximately 1 pound of pure methamphetamine, all of which Quintero Beltran intended to distribute to others.
This case was the product of an investigation by the Drug Enforcement Administration, Homeland Security Investigations, and the Kern County Sheriff’s Office. Assistant U.S. Attorney Christopher D. Baker prosecuted the case.
Leader of Large Scale Baltimore Drug Distribution Conspiracy Sentenced to 19 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – On October 22, 2021, U.S. District Judge Catherine C. Blake sentenced Gibran Nelson-Smith, age 41, of Pikesville, Maryland, to 19 years in federal prison, followed by four years of supervised release, for conspiracy to distribute kilogram quantities of heroin, and crack cocaine, as well as quantities of cocaine and fentanyl.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Chief Lisa Meyers of the Howard County Police Department; Commissioner Michael Harrison of the Baltimore Police Department; Chief Amal E. Awad of the Anne Arundel County Police Department; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
According to his plea agreement, from at least 2015 through March 2019, Nelson-Smith conspired with others to distribute large quantities of heroin and crack cocaine, as well as cocaine and fentanyl, in and around Baltimore. Nelson-Smith exercised a supervisory role in the conspiracy, meeting with co-conspirators to provide the narcotics and resupplying the narcotics throughout the day. Nelson-Smith also collected the drug proceeds from the distributors.
On at least one occasion between November 2018 and February 2019, law enforcement conducted several controlled purchases from Nelson-Smith. On at least one occasion, law enforcement thought Nelson-Smith was selling heroin, but the lab results indicated that the drugs were a combination of heroin and fentanyl.
As part of his plea agreement, Nelson-Smith admitted that he endorsed the use of firearms by members of the organization to maintain security in the areas where drugs were being sold, and also endorsed the use or threatened use of violence by members of the organization to protect the drug sales activities of the organization. In January 2019, law enforcement received surveillance footage dated May 25, 2018, in which Nelson-Smith appears to brandish a firearm in the alley next to the “White House” located in the 3900 block of Dorchester Road in Baltimore, where Nelson-Smith operated.
Law enforcement executed a search warrant at Nelson-Smith’s residence on April 4, 2019, and recovered a .40-caliber pistol; a magazine for the pistol; at least 75 rounds of various caliber ammunition; cash; approximately 11 grams of a mixture containing heroin and fentanyl; approximately 46 grams of crack cocaine; approximately 251 grams of cocaine; and drug paraphernalia, including packaging material and digital scales; eight cellular phones; two tablet computers; and a laptop.
Nelson-Smith agrees that over the course of the conspiracy, he and his conspirators distributed at least a kilogram of heroin, at least a kilogram of crack cocaine, at least 250 grams of cocaine, and at least 10 grams of fentanyl.
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.
This case is also part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Erek L. Barron commended HSI, the Howard County Police Department, the Baltimore Police Department, the Anne Arundel County Police Department, and the Baltimore County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Joan C. Mathias and Patrick G. Selwood, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Knoxville Man Pleads Guilty to Murder-For-Hire ChargeRead the Press Release
KNOXVILLE, Tenn. – On October 25, 2021, Nelson Paul Replogle, 59, of Knoxville, Tennessee, entered a guilty plea to one count of Murder-For-Hire in violation of Title 18, United States Code, Section 1959. Replogle pleaded guilty before Senior United States District Judge Leon Jordan of the U.S. District Court for the Eastern District of Tennessee. Sentencing has been set for February 22, 2022, at 10:15 a.m., in U.S. District Court at Knoxville, Tennessee.
As a result of his guilty plea, Replogle faces a term of up to ten years imprisonment, a fine of up to $250,000, and supervised release for a period of three years.
As part of the written plea agreement, Replogle waived indictment by a federal grand jury and agreed to plead guilty to an information. According to documents filed in the case, Replogle admitted to using the Internet to contact a dark web entity that purported to arrange murders for hire. Replogle provided the would-be killer with the intended victim’s name and address, a description of the victim’s vehicle, and a specific date, time, and place where the victim could be found and murdered. In addition, Replogle asked that the killing appear as “road rage or [a] carjacking gone wrong.” In exchange for the anticipated murder, Replogle used the Internet to transmit a payment of 0.2924549 Bitcoin which, on the day of payment, had the approximate value of $17,853.49. Agents with the Federal Bureau of Investigation (“FBI”) learned of the plot and intervened and arrested the defendant. The victim was not harmed as a result of the defendant’s attempt to have the victim murdered.
This prosecution is the result of an investigation by the FBI.
Assistant United States Attorney Frank M. Dale Jr. represents the United States.
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Kansas City Man Indicted for Bank RobberyRead the Press Release
KANSAS CITY, KAN. – A federal grand jury in Kansas City returned an indictment charging a Kansas City, Kansas man with one count of bank robbery and one count of use of a firearm in furtherance of a crime of violence.
According to court documents, in September 2021, Davonte Chaney, 29, allegedly used a semi-automatic pistol to rob Truity Credit Union on West 31st Street in Lawrence, Kansas.
The Federal Bureau of Investigation and Lawrence, Kansas Police Department investigated the case.
Assistant U.S. Attorney Trent Krug is 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.
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KC Man Pleads Guilty to Illegal Firearm Following ShootingRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man pleaded guilty in federal court today to illegally possessing a firearm following a shooting on the street of a residential neighborhood.
Terrquan J. Beasley, 22, pleaded guilty before U.S. Chief District Judge Beth Phillips to being a felon in possession of a firearm.
Officers were dispatched to Research Medical Center, 2316 Meyer Blvd., Kansas City, Mo., on May 12, 2020. An individual suffering from a gunshot wound had been transported to the hospital by Beasley and another person. When officers arrived at the hospital, Beasley was standing beside the white GMC Yukon, which was parked near the ambulance bay of the hospital.
Officers saw apparent bullet holes in the car and blood on the vehicle, as well as on Beasley. The rear windshield was also missing from apparent bullet damage. Beasley was a passenger in the vehicle when the shooting occurred in the area of 81st Street and Park Avenue. Before officers frisked him for weapons, Beasley told them he had a firearm in his armpit.
Beasley was in possession of a loaded Ruger 9mm semi-automatic pistol. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Beasley has a prior felony conviction for robbery, for which he was on probation at the time of this federal offense.
Under federal statutes, Beasley is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be held on March 15, 2022.
This case is being prosecuted by Assistant U.S. Attorney Sean T. Foley. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Justice Department Obtains Consent Decree in Sexual Harassment Lawsuit Against Owners of Minneapolis Area Rental PropertiesRead the Press Release
The Justice Department today announced that it has obtained a consent decree with Reese Pfeiffer and several other defendants to resolve allegations that Pfeiffer violated the Fair Housing Act (FHA) by subjecting 23 women to severe and repeated sexual harassment and retaliation at residential properties defendants own or manage in and around Minneapolis.
Under the consent decree, the defendants must pay a total of $736,000 in compensation to 23 victims of the alleged sexual harassment and retaliation, and a $14,000 civil penalty to the United States. Additionally, the consent decree permanently bars Reese Pfeiffer from property management and requires the retention of an independent property manager approved by the Department of Justice at specified Twin Cities properties. The defendants must also undergo education and training on the FHA, with specific emphasis on discrimination on the basis of sex and sexual harassment.
The defendants are property managers/owners Reese Pfeiffer, Jeanne Pfeiffer, Michael Fruen and Jeremy Martineau and business entities Fruen & Pfeiffer LLP (F&P) and M. Fruen Properties (MFP).
The consent decree, entered today by the U.S. District Court for the District of Minnesota, resolves a lawsuit that the department filed in Sept. 2020, as well as a related private lawsuit brought by Mid-Minnesota Legal Aid on behalf of three women who were subjected to Pfeiffer’s alleged sexual harassment.
“All people deserve to feel safe in their homes,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “Sexual harassment in housing deprives individuals of that security. The Justice Department will not tolerate landlords who abuse their power by sexually harassing their tenants and will continue to work resolutely to hold such persons accountable and obtain relief for their victims.”
“The sexual harassment and discrimination of female tenants is unacceptable and a violation of federal law,” said Acting U.S. Attorney W. Anders Folk for the District of Minnesota. “This resolution helps restore the public safety of these female tenants. No one should be subjected to an environment of harassment, discrimination, and retaliation, especially in their own homes.”
The United States’ lawsuit alleged that Reese Pfeiffer, property manager for numerous rental properties in Minneapolis and surrounding suburbs, subjected multiple female tenants and prospective tenants to sexual harassment. The complaint alleged that Reese Pfeiffer commented on female tenants’ looks and body parts, engaged in unwelcome touching, asked personal questions about their relationship status, made unwelcome sexual advances, discussed sexual topics without consent, entered their homes under the pretense of collecting rent to solicit sexual favors, and offered them rental benefits, such as excusing late or unpaid rent, in exchange for sexual favors. The complaint further alleged that Reese Pfeiffer’s co-defendants are vicariously liable for Pfeiffer’s discriminatory conduct because he acted as their agent when he sexually harassed tenants at properties in which they had an ownership interest.
This case is handled by the Civil Division of the U.S. Attorney’s Office for the District of Minnesota with the assistance of the Justice Department’s Civil Rights Division and the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General.
The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the initiative is to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing. Since launching the initiative in October 2017, the Department of Justice has filed 23 lawsuits alleging sexual harassment in housing and recovered over $4.8 million for victims of such harassment.
If you think you are a victim of sexual harassment by a landlord, or other forms of housing discrimination, you may contact the Justice Department by submitting a report online or contact the U.S. Attorney’s Office for the District of Minnesota at (612) 664-5600.
Reports also may be made by contacting the U.S. Department of Housing and Urban Development at 1-800-669-9777 or by filing a complaint online.
Justice Department Obtains Consent Decree in Sexual Harassment Lawsuit Against Owners of Minneapolis Area Rental PropertiesRead the Press Release
MINNEAPOLIS – The Justice Department today announced that it has obtained a consent decree with Reese Pfeiffer and several other defendants to resolve allegations that Pfeiffer violated the Fair Housing Act (FHA) by subjecting 23 women to severe and repeated sexual harassment and retaliation at residential properties defendants own or manage in and around Minneapolis.
Under the consent decree, the defendants must pay a total of $736,000 in compensation to 23 victims of the alleged sexual harassment and retaliation, and a $14,000 civil penalty to the United States. Additionally, the consent decree permanently bars Reese Pfeiffer from property management and requires the retention of an independent property manager approved by the Department of Justice at specified Twin Cities properties. The defendants must also undergo education and training on the FHA, with specific emphasis on discrimination on the basis of sex and sexual harassment.
The defendants are property managers/owners Reese Pfeiffer, Jeanne Pfeiffer, Michael Fruen and Jeremy Martineau and business entities Fruen & Pfeiffer LLP (F&P) and M. Fruen Properties (MFP).
The consent decree, entered today by the U.S. District Court for the District of Minnesota, resolves a lawsuit that the department filed in Sept. 2020, as well as a related private lawsuit brought by Mid-Minnesota Legal Aid on behalf of three women who were subjected to Pfeiffer’s alleged sexual harassment.
“All people deserve to feel safe in their homes,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “Sexual harassment in housing deprives individuals of that security. The Justice Department will not tolerate landlords who abuse their power by sexually harassing their tenants and will continue to work resolutely to hold such persons accountable and obtain relief for their victims.”
“The sexual harassment and discrimination of female tenants is unacceptable and a violation of federal law,” said Acting U.S. Attorney W. Anders Folk for the District of Minnesota. “This resolution helps restore the public safety of these female tenants. No one should be subjected to an environment of harassment, discrimination, and retaliation, especially in their own homes.”
The United States’ lawsuit alleged that Reese Pfeiffer, property manager for numerous rental properties in Minneapolis and surrounding suburbs, subjected multiple female tenants and prospective tenants to sexual harassment. The complaint alleged that Reese Pfeiffer commented on female tenants’ looks and body parts, engaged in unwelcome touching, asked personal questions about their relationship status, made unwelcome sexual advances, discussed sexual topics without consent, entered their homes under the pretense of collecting rent to solicit sexual favors, and offered them rental benefits, such as excusing late or unpaid rent, in exchange for sexual favors. The complaint further alleged that Reese Pfeiffer’s co-defendants are vicariously liable for Pfeiffer’s discriminatory conduct because he acted as their agent when he sexually harassed tenants at properties in which they had an ownership interest.
This case is handled by the Civil Division of the U.S. Attorney’s Office for the District of Minnesota with the assistance of the Justice Department’s Civil Rights Division and the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General.
The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the initiative is to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers, or other people who have control over housing. Since launching the Initiative in October 2017, the Department of Justice has filed 23 lawsuits alleging sexual harassment in housing and recovered over $4.8 million for victims of such harassment.
If you think you are a victim of sexual harassment by a landlord, or other forms of housing discrimination, you may contact the Justice Department by submitting a report online or contact the United States Attorney’s Office for the District of Minnesota at (612) 664-5600.
Reports also may be made by contacting the U.S. Department of Housing and Urban Development at 1-800-669-9777 or by filing a complaint online.
Justice Department Announces New Initiative to Combat RedliningRead the Press Release
[KANSAS CITY, KAN.]— The U.S. Attorney’s Office for the District of Kansas announced its partnership 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. 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,” said Attorney General Garland. “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.”
“This initiative is important to our community, and we stand ready to work with community stakeholders and the Civil Rights Division to investigate allegations of redlining and, when appropriate, hold those accountable who participate in illegal redlining practices,” said Acting U.S. Attorney Duston Slinkard.
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.###
Jefferson County Man Guilty of FEMA Fraud for Hurricane Harvey PaymentsRead the Press Release
BEAUMONT, Texas – A Beaumont man has pleaded guilty to hurricane-related fraud in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Ricky Gonzales, 61, pleaded guilty to fraud in connection with a major disaster or emergency benefits today before U.S. Magistrate Judge Christine L. Stetson.
According to information presented in court, Hurricane Harvey made landfall in southeast Texas in August 2017, causing extensive damage to the region. Gonzales applied for assistance from the Federal Emergency Management Agency (FEMA) for damage to a residence in Mauriceville, which he claimed was his primary residence. Gonzales received approximately $35,000 as a result of his claim. This residence, however, was actually rented and occupied by Gonzales’ daughter, who also applied for FEMA assistance. Her application was denied because of the duplicate applications for the same address. In order to receive FEMA funds, the applicant must use the property as their primary residence. Rental income properties are not eligible for FEMA funds.
Gonzales was indicted by a federal grand jury on July 8, 2021. He faces up to 30 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
“FEMA relief funds are intended to assist Americans who have been affected by life-changing disasters, not as a publicly-funded handout for unscrupulous fraudsters,” said Acting U.S. Attorney Nicholas J. Ganjei. “EDTX will protect the integrity of these relief programs, and the interests of the American taxpayer, by vigorously prosecuting anyone who attempts to steal disaster relief funds.”
This case is being investigated by the Department of Homeland Security Office of Inspector General and the Federal Emergency Management Agency and prosecuted by Assistant U.S. Attorney Rachel Grove.
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Jacksonville Man Sentenced to 12 Years in Federal Prison for Using the Internet to Attempt to Entice and Meet A 12-Year-Old Child for SexRead the Press Release
Jacksonville, Florida – United States District Judge Brian J. Davis has sentenced Wayne Dale Epps, Jr. (36, Jacksonville) to 12 years in federal prison for using the internet to attempt to entice a 12-year-old child to engage in sexual activity. Epps was also ordered to serve a life term of supervised release and to register as a sex offender.
Epps had pleaded guilty on June 10, 2021.
According to court documents, on February 14, 2020, an undercover FBI agent who was posing online as the family member of a 12-year-old child was contacted by Epps using the screen name “ksaber2040.” Over the next several days, Epps and the undercover agent engaged in online conversation in which Epps expressed his desire to meet the “child.” Epps confirmed that he wanted to meet the “child” for sexual activity, stating “[t]his is a first for me I’m nervous but I’ve been wanting to try younger.” Epps provided the undercover agent with graphic details about how he intended to sexually abuse the “child.” He offered to use a “flavored condom” and requested pictures of the “child.”
On February 18, 2020, Epps drove to a prearranged location at a shopping center in Jacksonville to meet the “child” for sex and was arrested by FBI agents. During an interview, Epps stated that it was “possible that [he] would have followed through” and engaged in sex with the 12-year-old child, and further that he “should have never made that decision.”
This case was investigated by the Federal Bureau of Investigation in Jacksonville. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Jackson Grant Charged for Unlawfully Possessing a FirearmRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Jackson Grant, 37, of Brooklyn, New York, was charged today by criminal complaint with unlawfully possessing a firearm as a convicted felon. Grant is scheduled to appear on the charge before U.S. Magistrate Judge Kevin J. Doyle on Tuesday, October 26, 2021.
According to court records, Grant was found in possession of a firearm during the execution of a federal search warrant on October 22, 2021. Federal law enforcement, with the assistance of state and local officers, searched the ground floor of an apartment located at 47 Baxter St., Rutland, Vermont, where Grant was encountered. The search at 47 Baxter St. also yielded a large amount of U.S. currency and suspected controlled substances. Grant is prohibited from possessing firearms under federal law due to a prior felony conviction.
If convicted of the charge alleged in the complaint, Grant faces a maximum sentence of ten years of imprisonment and a $250,000 fine. The actual sentence, however, would be determined by the Court with guidance from the advisory Federal Sentencing Guidelines. The Acting United States Attorney emphasizes that the charge in the complaint is merely an accusation, and that the defendant is presumed innocent unless and until he is proven guilty.
The United States is represented in this matter by Assistant U.S. Attorney Paul Van de Graaf. Assistant Federal Public Defender Sara M. Puls represents the defendant.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian and other law enforcement partners: Homeland Security Investigations, the Vermont State Police, and the Rutland Police Department. For more information about Project Guardian, please see http://www.justice.gov/projectguardian/.
Indictment Unsealed Charges Three in Fraud Scheme Targeting Rhode Island SeniorsRead the Press Release
PROVIDENCE, R.I. – A federal indictment unsealed in U.S. District Court in Providence on Friday charges three individuals with allegedly participating in a so called “Grandparent Scam” to defraud at least eleven elderly Rhode Island residents in nine communities of thousands of dollars, announced Acting United States Attorney Richard B. Myrus.
The indictment alleges that members of the conspiracy contacted Rhode Island senior citizens by telephone, posing as their grandchild, a lawyer, or other individual, and falsely claimed the grandchild had been in a car accident, had been arrested, and that cash was needed for bail and legal fees.
The indictment charges Bryan Valdez-Espinosa, 21, of Union City, NJ., with conspiracy to commit wire fraud; and Diego A. Alarcon, 22, of Union City, NJ, and Jason Hatcher, 39, of New York, NY, with conspiracy to commit wire fraud and aggravated identity theft.
Valdez-Espinosa, arrested by Homeland Security Investigation (HSI) agents last week and arraigned on Friday, was released on unsecured bond. Federal arrest warrants have been issued for Alarcon and Hatcher. Anyone with information as to the whereabouts of Alarcon or Hatcher are asked to contact the United States Marshals Service in Providence at (401) 528-5000.
According to the indictment and information presented to the court, an investigation by HSI determined that between June 9 and June 11, 2021, the three men allegedly participated in a scheme to contact elderly Rhode Islanders and pose as the person’s grandchild, claiming that they had been arrested and needed money for bail. The victims were instructed to gather the necessary funds in cash and provide the cash to a courier who would arrive at their home later that day. Several victims were contacted multiple times, in some instances by an individual claiming to be an attorney, seeking additional funds because, they claimed, the amount of cash bail had increased due to additional and more serious criminal charges being brought against their grandchild. The victims were instructed to provide the additional cash to a courier; to mail the cash to an address in Florida; or to electronically transfer the funds to an account in the Dominican Republic. Some victims were told that a “gag order” was in effect and that they were prohibited from telling anyone about the case or the cash payments.
Eleven of the twelve victims allegedly contacted by members of the conspiracy provided cash payments ranging from $6,000 to $99,225. Relatives of one person targeted by the scammers intervened and chased away a person who attempted to retrieve $9,500 in cash.
The case is being prosecuted by Assistant United States Attorney William F. Ferland.
Acting United States Attorney Myrus thanks the Barrington, Cranston, Coventry, Cumberland, East Providence, Hopkinton, Johnston, Smithfield, and Warwick Police Departments for their assistance in investigating and assisting residents in their community allegedly victimized by this scam.
A federal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
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Indian Trail Man Is Sentenced to Three and A Half Years for Investment SchemeRead the Press Release
CHARLOTTE, N.C. – Acting U.S. Attorney William T. Stetzer announced today that Bryan John Cohen, 46, of Indian Trail, N.C. was ordered to serve 42 months in prison and a year of supervised release for orchestrating an investment scheme. He was also ordered to pay $291,000 as restitution.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), in North Carolina, joins Acting U.S. Attorney Stetzer in making today’s announcement.
According to filed court documents and the sentencing hearing, from 2015 to 2020, Cohen defrauded at least 10 victims of more than $385,000, by inducing them to invest money in his purported investment businesses, OTC Bully, Ascension Trading, and Recharge Investments, and in other business ventures. Court records show that Cohen falsely represented to victims, most of whom were Cohen’s friends and acquaintances, that he was a financially savvy investor with a successful track record in the financial industry, and that he would invest their funds using a computer algorithm called the “Dewey System.”
As Cohen previously admitted in court, to convince victims their investments were legitimate, Cohen provided them with bogus Investment Agreements that purported, among other things, that Cohen would not charge any investment fees, and that the money would be invested in a manner “expected of a reputable, experienced and competent professional investment manager.” To further lull victims into thinking their investments were safe, Cohen supplied them with fake profit and loss sheets on a monthly basis, which falsely indicated the victims’ investments were growing.
Contrary to claims Cohen made to his victims, court documents show that Cohen did not invest their money as promised. Rather, Cohen used the money to pay for personal expenses and to make Ponzi-style payments to older investors using new investors’ money. In November 2020, Cohen pleaded guilty to wire fraud.
In making today’s announcement, Acting U.S. Attorney Stetzer thanked the FBI in Charlotte, and the North Carolina Department of Public Safety, Special Operations and Intelligence Unit, for their investigation.
Assistant U.S. Attorney Maria Vento, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Huntington Woman Sentenced on Drug ChargeRead the Press Release
HUNTINGTON, W.Va. – Christa Dawn Ravenscroft, 45, of Huntington, was sentenced today to 24 months in federal prison for possession with intent to distribute methamphetamine.
According to court documents, law enforcement officers executed a search warrant on March 8, 2019, at a residence on Baer Street in Huntington after receiving multiple reports of drug activity at that location. A search of the residence found approximately 1.55g of methamphetamine along with multiple ledgers and a digital scale. Ravenscroft admitted that she sold drugs to support her own habit.
United States Attorney William S. Thompson made the announcement and commended the investigative efforts of the Huntington Violent Crime and Drug Task Force and the Huntington Police Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Ryan A. Keefe handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:19-cr-00181.
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Huntington Man Pleads Guilty to Fentanyl and Cocaine ConspiracyRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pleaded guilty today in connection with his participation in a large fentanyl and cocaine distribution ring operating in the Huntington area. William Raeshaun Byrd, 31, entered a guilty plea to conspiracy to distribute 400 grams or more of fentanyl and 5 kilograms or more of cocaine.
According to court documents and statements made in court, Byrd admitted that he participated in the conspiracy from the Summer of 2020 to July of 2021. During the conspiracy, Byrd frequently received shipments of fentanyl and cocaine which were transported from Columbus, Ohio to Huntington by vehicle. For each shipment, Byrd received a minimum of 1 kilogram of fentanyl and 1 kilogram of cocaine. The drugs were provided to Byrd on consignment and Byrd would pay for the drugs after he distributed them in Huntington. Byrd further admitted that he operated two residences in Huntington as locations to accept the shipments and distribute the drugs.
Byrd was arrested on July 29, 2021, after a federal grand jury returned an indictment charging multiple individuals in the investigation. A search warrant was also executed at Byrd’s residence on that date and law enforcement officers seized a number of items including two firearms and over $113,000 in United States currency. Byrd admitted that he possessed the firearms and that the money constituted proceeds from drug sales.
Byrd faces a mandatory minimum of 10 years and up to life in federal prison when he is sentenced on January 31, 2022.
United States Attorney William S. Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Southern West Virginia TOC-West Task Force, which consists of the Cabell County Sheriff’s Department, the Hurricane Police Department, and the Marshall University Police Department. The West Virginia State Police, the Drug Enforcement Administration (DEA) and the Violent Crime and Drug Task Force West provide investigative support to the task force. The Ohio Highway Patrol, the Kentucky State Police, and the FBI and DEA in Columbus also assisted in the investigation.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams is handling the prosecution.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00109.
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Fresno Man Sentenced to over 2 Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
FRESNO, Calif. — Eugene Dajohn Marshall, 31, of Fresno, was sentenced today by U.S. District Judge Dale A. Drozd to two years and eight months in prison, for being a felon in possession of a firearm, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Oct. 15, 2019, law enforcement officers were called to a domestic violence disturbance at Marshall’s home. Marshall, a previously convicted felon prohibited by law from possessing firearms and ammunition, was found to be in possession of a loaded firearm and additional rounds of ammunition.
This case was the product of an investigation by Homeland Security Investigations and the Fresno Police Department. Assistant U.S. Attorney Jessica A. Massey prosecuted the case.
This case was brought as 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.
Former Tribal Police Chief Admits to Stealing More than $300,000 from Local Tribe by Selling Fake BadgesRead the Press Release
Assistant U. S. Attorney Andrew J. Galvin (619) 546-9721
NEWS RELEASE SUMMARY – October 25, 2021
SAN DIEGO – Anthony Reyes Vazquez pleaded guilty in federal court today, admitting that he stole more than $300,000 from the Manzanita Band of the Kumeyaay Nation while serving as chief of the Manzanita Tribal Police Department.
According to his plea agreement, Vazquez admitted that he 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.
From 2012 to 2018, Vazquez served as the Chief of Police for the Manzanita Tribal Police Department. The Manzanita Tribal Police Department, however, 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.
In his plea agreement, 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 – known as the “VIP Group” – 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 Manzanita Band reservation.
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 twenty-four firearms while serving as Chief of Police of the Manzanita Tribal Police Department.
"This defendant sold law enforcement badges and jeopardized public safety,” said Acting U.S. Attorney Randy Grossman. “His manipulative and self-serving ploy also significantly undermined state laws governing the issuance of credentials to carry concealed weapons.” Grossman thanked prosecutors Andrew Galvin and Frances Lewis, as well as FBI agents, for their excellent work on this case.
“Anthony Vazquez, a convicted felon, collected hundreds of thousands of dollars in ‘donations’ from dozens of people - to line his own pockets - in exchange for giving them police credentials,” said FBI Special Agent in Charge Suzanne Turner. “This brazen scheme not only deprived the Manzanita Band of funding, but also caused numerous untrained ‘officers’ to believe they were authorized to carry concealed weapons on and off the reservation and enforce laws with little to no training.”
Vazquez is scheduled to be sentenced on January 24, 2022 at 8:30 a.m. before U.S. District Judge Gonzalo P. Curiel.
This case is being prosecuted by Assistant U.S. Attorneys Andrew Galvin of the Southern District of California and Frances Lewis of the Central District of California.
DEFENDANT Case Number 21-CR-3020-GPC
Anthony Reyes Vazquez Age: 49 Camarillo, CA
SUMMARY OF CHARGES
Theft Concerning Programs Receiving Federal Funds – Title 18, U.S.C., Section 666(a)(1)
Maximum penalty: Ten years’ imprisonment and $250,000 fine
AGENCY
Federal Bureau of Investigation
Former Philadelphia Man Sentenced to Prison for Making. Passing Counterfeit $100 BillsRead the Press Release
PITTSBURGH, PA - A former resident of Philadelphia, Pennsylvania, has been sentenced in federal court to 18 months in prison, three years supervised release and restitution of $4,600.00 on his conviction of violating federal counterfeit laws, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge Cathy Bissoon imposed the sentence on Forkpa Howard, 32, formerly of Philadelphia, PA 19124.
According to information presented to the court, Howard conspired to counterfeit $100 Federal Reserve Notes and then passed said counterfeit bills at various retail stores and businesses in the Western District of Pennsylvania and elsewhere in August 2019.
Prior to imposing sentence, Judge Bissoon concurred with the government that defendant’s crime affects the integrity of our monetary system and our nation’s economy. She did not agree to a vary from the advisory guidelines range in this case.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the United States Secret Service for the investigation leading to the successful prosecution of Howard.
Former Naturopath convicted of trafficking in misbranded drugs he claimed could treat and prevent COVIDRead the Press Release
Tacoma - A former Port Angeles, Washington, naturopathic physician was convicted late last week of a federal felony related to his misbranding of products he claimed could prevent and treat numerous serious diseases, including COVID-19 and MRSA, announced U.S. Attorney Nicholas W. Brown. Richard Marschall, 68, was convicted following a 4-day trial. The jury found Marschall guilty of Introduction of Misbranded Drugs into Interstate Commerce, his third conviction for the same crime following earlier prosecutions in 2011 and 2017. Sentencing in front of U.S. District Judge Benjamin H. Settle likely will occur in early 2022.
According to records filed in the case, in late March, 2020, Food and Drug Administration criminal investigators began reviewing complaints from the public about Facebook posts for Marschall’s products. Investigators reviewed Marschall's Facebook page which included claims that his product the “Dynamic Duo” could “crush” viruses, including the coronavirus. Marschall billed himself as a retired naturopath and “Health Coach.” Marschall’s Facebook page also claimed that his products could eliminate MRSA and other infections “even if there is antibiotic resistance.”
On March 30, 2020, an FDA investigator spoke to Marschall on the telephone in an undercover capacity explaining to Marschall that she was worried about COVID-19. Marschall told the investigator that the “Dynamic Duo” contained garlic extract and larch tree starch, and further represented that one of the substances “doesn’t boost the immune system, it just kills the virus.” Marschall represented that the second substance would boost the production of white blood cells that attack infections. The undercover agent ultimately ordered the “Dynamic Duo” for $140 plus shipping.
On the call with the FDA investigator, Marschall also referred to himself as “Dr. Rick Marschall.” His Facebook posts and other marketing materials for the “Dynamic Duo” also referred to Marschall as “N.D.” and “N.D. retired.” But Marschall did not have a license to practice naturopathy. In 2018, the Washington State Department of Health permanently revoked his credential to practice as a naturopath.
FDA investigators received Marschall’s “Dynamic Duo” products in early April 2020, along with documents. The products themselves were not made by Marschall but by other manufacturers. The manufacturers’ labels for the substances do not claim to kill viruses, but still Marschall included documents that stated the substances can “crush 30 different viral infections, including those in the Corona family, like in China Corona-19.”
The jury found that Marschall misbranded the drugs because his marketing was false or misleading and because his products were not listed with the FDA.
In 2011 and again in 2017, Marschall was convicted and sentenced in federal court for distributing misbranded drugs. For the current conviction, Marschall faces up to three years in prison and a $250,000 fine.
The case was investigated by the FDA Office of Criminal Investigation (FDA-OCI). The case was prosecuted by Assistant United States Attorneys Nicholas Manheim, Michelle Jensen, and Brian Werner.
Former Georgetown Head Tennis Coach Pleads Guilty in College Admissions CaseRead the Press Release
BOSTON – The former head coach of men and women’s tennis at Georgetown University pleaded guilty today in connection with soliciting and accepting bribes to facilitate the admission of prospective Georgetown applicants and failing to report all of the income from the bribes on his federal income taxes.
Gordon Ernst, 54, of Chevy Chase, Md. and Falmouth, Mass., pleaded guilty to one count of conspiracy to commit federal programs bribery, three counts of federal programs bribery and one count of filing a false tax return. U.S. District Court Judge Indira Talwani scheduled sentencing for March 2, 2022.
As set forth in the charging document, Ernst solicited and received bribe payments from William “Rick” Singer and the families of prospective Georgetown applicants to facilitate their admission to Georgetown as student athletes. Ernst then failed to report all of the income from those bribe payments on his federal income tax returns.
Under the terms of Ernst’s plea agreement, the parties have agreed to a sentence of at least one year and up to four years in prison, two years of supervised release and forfeiture of $3,435,053.
The charge of federal programs bribery provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of conspiracy to commit federal programs bribery provides for a sentence of up to five years in prison, three years of supervised release a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of filing a false tax return provides for a sentence of up to three years in prison, one year of supervised release and a fine of $100,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Case information, including the status of each defendant, charging documents, and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Mark Deckett, Resident Agent in Charge of the Department of Education, Office of Inspector General made the announcement today. Assistant U.S. Attorneys Leslie A. Wright, Kristen A. Kearney and Kriss Basil of Mendell’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Air War College Professor Pleads Guilty to Making False Statements About Relationship with Government Official in ChinaRead the Press Release
A civilian professor at the Air War College on Maxwell Air Force Base in Montgomery, Alabama, pleaded guilty to making false statements to a federal agent.
According to court documents, Xiaoming Zhang, 69, a naturalized citizen of Chinese descent living in Montgomery, Alabama, began working as an Air War College (AWC) professor in July 2003. During his tenure at the AWC, Zhang would travel to China on a regular basis for work-related purposes, research and to visit family living there.
Beginning sometime in 2012, Zhang developed a relationship with a known foreign official working with the Shanghai Municipal Government. Records indicate that Zhang met with the official in person on approximately six occasions and exchanged approximately 40 emails with him from December 2012 to January 2017. At some point during this period, Zhang became aware that the official was using, or attempting to use, their relationship to gain access to sensitive information in Zhang’s possession, as well as to make contact with other potentially valuable individuals.
As part of his employment at the AWC, Zhang held a “secret” security clearance and attended annual security training that informed him of reporting requirements about suspicious foreign contacts and relationships with foreign government officials, along with other briefings concerning reporting requirements. Despite all the trainings and briefings, Zhang failed to report the relationship with the foreign official even after he came to understand that the official was attempting to gather sensitive information from Zhang.
According to the factual basis contained in the plea agreement, Zhang made multiple misleading or false statements to authorities in an attempt to hide his relationship with the Chinese official. In August of 2017, Zhang denied knowing the foreign official when questioned by U.S. Office of Personnel Management (OPM) investigators who were verifying his continued eligibility for a security clearance. When the FBI interviewed Zhang in July of 2020, he initially made more false statements, but eventually admitted to meeting with the official in China on numerous occasions and to being untruthful concerning that information. Zhang also acknowledged that he had concealed the relationship with the official because he knew it was improper.
Zhang pleaded guilty to making false statements to a federal agent and faces a maximum of five years in prison at sentencing. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Mark J. Lesko of the Justice Department’s National Security Division and Acting U.S. Attorney Sandra J. Stewart for the Middle District of Alabama made the announcement.
The FBI investigated the case, with valuable assistance provided by the U.S. Office of Personnel Management, the Department of the Air Force’s Office of Special Investigations (AFOSI), and the Department of Defense.
Assistant U.S. Attorney Brett Talley of the Middle District of Alabama is prosecuting the case with assistance from Trial Attorney Scott Claffee of the National Security Division’s Counterintelligence and Export Control Section.
Former Air War College Professor Pleads Guilty to Making False Statements About Relationship with Government Official in ChinaRead the Press Release
Montgomery, Alabama – A civilian professor at the Air War College on Maxwell Air Force Base in Montgomery, Alabama, pleaded guilty to making false statements to a federal agent, Announced Acting U.S. Attorney Sandra J. Stewart for the Middle District of Alabama, and Acting Assistant Attorney General Mark J. Lesko of the Justice Department’s National Security Division.
According to court documents, Xiaoming Zhang, 69, a naturalized citizen of Chinese descent living in Montgomery, Alabama, began working as an Air War College (AWC) professor in July 2003. During his tenure at the AWC, Zhang would travel to China on a regular basis for work-related purposes, research and to visit family living there.
Beginning sometime in 2012, Zhang developed a relationship with a known foreign official working with the Shanghai Municipal Government. Records indicate that Zhang met with the official in person on approximately six occasions and exchanged approximately 40 emails with him from December 2012 to January 2017. At some point during this period, Zhang became aware that the official was using, or attempting to use, their relationship to gain access to sensitive information in Zhang’s possession, as well as to make contact with other potentially valuable individuals.
As part of his employment at the AWC, Zhang held a “secret” security clearance and attended annual security training that informed him of reporting requirements about suspicious foreign contacts and relationships with foreign government officials, along with other briefings concerning reporting requirements. Despite all the trainings and briefings, Zhang failed to report the relationship with the foreign official even after he came to understand that the official was attempting to gather sensitive information from Zhang.
According to the factual basis contained in the plea agreement, Zhang made multiple misleading or false statements to authorities in an attempt to hide his relationship with the Chinese official. In August of 2017, Zhang denied knowing the foreign official when questioned by U.S. Office of Personnel Management (OPM) investigators who were verifying his continued eligibility for a security clearance. When the FBI interviewed Zhang in July of 2020, he initially made more false statements, but eventually admitted to meeting with the official in China on numerous occasions and to being untruthful concerning that information. Zhang also acknowledged that he had concealed the relationship with the official because he knew it was improper.
Zhang pleaded guilty to making false statements to a federal agent and faces a maximum of five years in prison at sentencing. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI investigated the case, with valuable assistance provided by the U.S. Office of Personnel Management, the Department of the Air Force’s Office of Special Investigations (AFOSI), and the Department of Defense.
Assistant U.S. Attorney Brett Talley of the Middle District of Alabama is prosecuting the case with assistance from Trial Attorney Scott Claffee of the National Security Division’s Counterintelligence and Export Control Section.
Fight in Rocky Mount Hotel Leads to Drugs, Gun, and a 16 Year Sentence for Prior Federal FelonRead the Press Release
RALEIGH, N.C. – On Friday, October 22, 2021, a Scotland Neck man was sentenced to 192 months in prison for narcotics and firearm violations while on post-release supervision for a prior federal felony. On April 2021, Gerard Roderkus Fenner, 40, pled guilty to possession with intent to distribute heroin, fentanyl, marijuana, and methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a felon.
According to court documents and other information presented in court, on November 26, 2019, Rocky Mount Police Officers responded to the Days Inn after receiving a 911 call about a fight involving a firearm. The caller said the fight was over drugs.
Officers responded to the hotel room in question and found the door locked. The occupant, eventually identified as Fenner, refused to open the door. Concerned Fenner was tossing evidence out the third-story window, officers went to the outside window just in time to find Fenner jumping. Landing hard on the ground after the thirty-foot jump, Fenner was immediately arrested.
Officers found over $4,000 cash stuffed in Fenner’s underwear. Back in the hotel room, officers discovered heroin and fentanyl mixtures, marijuana, over eight hundred methamphetamine pills, and a loaded firearm. At the time of the incident, Fenner was serving a term of post-release supervision stemming from a federal firearm charge in 2013.
In issuing a 168-month sentence for the conviction and a 24-month consecutive sentence for the revocation of supervision, the Court noted the danger posed by the narcotics and firearm involved in Fenner’s trafficking.
“Our mission here at the Rocky Mount Police Department is to improve the quality of life in the city of Rocky Mount by building partnerships to reduce crime. We value our partnership with our Federal Law Enforcement agencies, who assist us in creating a safe environment for all citizens who reside and visit Rocky Mount, North Carolina. The Rocky Mount Police Department will continue to work with Federal, State, and Local law enforcement agencies while providing the highest level of police services,” said the Rocky Mount Chief of Police Robert Hassell.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. Rocky Mount Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:12-CR-115 and 5:20-CR-85-D.
District Man Sentenced to 18 Years in Prison for 2018 Killing Near Union StationRead the Press Release
WASHINGTON - MacArthur Venable, 36, of Washington, D.C., was sentenced today to 18 years in prison for killing a man near Union Station in October 2018.
The announcement was made by Acting U.S. Attorney Channing D. Phillips and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Venable pleaded guilty in February 2020, in the Superior Court of the District of Columbia, to a charge of second-degree murder while armed. The plea, which was contingent upon the Court’s approval, called for a sentence between 15 and 18 years. The Honorable Chief Judge Anita Josey-Herring accepted the plea and sentenced Venable accordingly. Following his prison term, Venable will be placed on five years of supervised release.
According to the government’s evidence, on Oct. 31, 2018, at approximately 9:50 p.m., Venable was walking down Massachusetts Avenue with another individual when he came upon the victim, James Ferrell, near the intersection of North Capitol Street NW. Venable then began to speak to Mr. Ferrell and an argument ensued. The argument escalated and Venable walked up to the individual who he was walking with, reached into his waistband, and pulled out a firearm. Venable then pointed and fired the firearm at Mr. Ferrell. Mr. Ferrell was struck in his chest twice and subsequently ran across the street and collapsed in front of the National Postal Museum. A witness called 911 and police and paramedics arrived at the scene. Mr. Ferrell, 34, was taken to a hospital, where he was pronounced dead soon afterward.
Venable was arrested on Dec. 20, 2018 and has been in custody ever since.
In announcing the sentence, Acting U.S. Attorney Phillips and Chief Contee commended the work of those who investigated the case from the Criminal Investigations Division Homicide Branch of the Metropolitan Police Department and also the U.S. Capitol Police. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Lashone Samuel, Victim/Witness Advocate Marcia Rinker, and Investigative Analyst Zachary McMenamin. Finally, they commended the work of Assistant U.S. Attorney Shehzad Akhtar, who investigated and prosecuted the matter.
Detroit Man Sentenced to Federal Prison for Heroin DistributionRead the Press Release
HUNTINGTON, W.Va. – A Detroit, Michigan man was sentenced today to 121 months in prison for a federal drug crime. Bandon William Jones, 42, previously pleaded guilty to distribution of heroin.
According to court documents, a confidential informant working with law enforcement purchased approximately 10.8 grams of heroin from Jones for $1,000.00 on October 29, 2020. The drug transaction took place on 16th Street Road in Huntington. Officers then followed Jones to the 1500 block of Hal Greer Boulevard where they arrested him. Officers found additional suspected heroin and the $1,000 used in the controlled heroin purchase. Jones also admitted that he was responsible for selling at least 20 kilograms of heroin in the Huntington area.
United States Attorney William S. Thompson made the announcement and commended the investigative work of the Huntington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Greg McVey handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00029.
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Danville Man Sentenced for Distributing Cocaine, MethamphetamineRead the Press Release
DANVILLE, Va. – A Danville man was sentenced last week to 87 months in federal prison for distributing cocaine and methamphetamine.
Joe Ali Daniels, 61, pleaded guilty in May 2021 to one count of distributing cocaine and two counts of distributing 5 grams or more of methamphetamine.
According to court documents, in May, September, and October of 2019, Daniels made several sales of cocaine and methamphetamine to police. During each of these transactions, Daniels used a cell phone to arrange the sales, which took place at Daniels’ residence in Danville, Virginia. Once at the residence, Daniels called another individual, who delivered the drugs to complete the transaction.
United States Attorney Christopher R. Kavanaugh of the Western District of Virginia and Charlie J. Patterson, Special Agent in Charge of ATF’s Washington Field Division made the announcement.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Danville Police Department.
Assistant United States Attorneys Rachel Swartz and Coleman Adams prosecuted the case for the United States.
Cleveland man sentenced for role in drug trafficking operationRead the Press Release
WHEELING, WEST VIRGINIA – Eiandreus Kirkland Rebraun Pique, of Cleveland, Ohio, was sentenced today to 57 months of incarceration for his role in a drug trafficking conspiracy, United States Attorney William J. Ihlenfeld, II announced.
Pique, also known as “Duke,” age 26, pleaded guilty in July 2021 to one count of “Aiding and Abetting the Distribution of Cocaine Base within 1000 feet of a Protected Location.” Pique admitted to working with someone to distribute cocaine base, also known as “crack,” near Wheeling University in February 2020.
Assistant U.S. Attorneys Shawn M. Adkins and Clayton J. Reid prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crimes Task Force, a HIDTA-funded initiative, which includes the Drug Enforcement Administration, West Virginia State Police, Ohio County Sheriff’s Office, and the Wheeling Police Department, investigated. The U.S. Marshal Service, Columbus Police Department Gang Crimes Unit, the Martins Ferry Police Department, and the Bellaire Police Department also assisted.
U.S. District Judge John Preston Bailey presided.
Original case indictment here: https://www.justice.gov/usao-ndwv/pr/26-charged-drug-conspiracy-involving-heroin-fentanyl-crack-cocaine-and-meth-wheeling
Chief Financial Officer for Oklahoma Business Found Guilty of Employment Tax FraudRead the Press Release
A federal jury convicted a North Carolina woman on Oct. 22 of employment tax fraud.
According to court documents and evidence presented at trial, Christina Rochelle Anglin, aka Christy Anglin, of Burnsville, was the Controller and Chief Financial Officer for Atmospheric Technology Services Company (ATSC) located in Norman, Oklahoma. In that role, Anglin was responsible for withholding from employee wages and paying to the IRS payroll taxes, which included Social Security and Medicare taxes and federal income taxes. From the first quarter through the third quarter of 2018, Anglin did not pay to the IRS nearly $920,000 in payroll taxes, which had been withheld from employees. At the same time these taxes were not paid, Anglin approved thousands of dollars of business expenditures, including salary and bonuses for herself and other executives.
Anglin faces a maximum penalty of five years in prison for each count of employment tax fraud plus payment of restitution to the IRS. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Robert J. Troester for the Western District of Oklahoma made the announcement.
This case was investigated by IRS-Criminal Investigation (IRS-CI), Defense Criminal Investigative Service (DCIS), U.S. General Services Administration-Office of Inspector General (GSA-OIG), FBI, Naval Criminal Investigative Service (NCIS), Army Criminal Investigations Division (ARMY-CID), and the Small Business Administration-Office of Inspector General (SBA-OIG).
Assistant U.S. Attorney William Farrior of the U.S. Attorney’s Office for the Western District of Oklahoma and Trial Attorney Ahmed Almudallal of the Tax Division are prosecuting the case.
Chief Financial Officer for Oklahoma Business Found Guilty of Employment Tax FraudRead the Press Release
OKLAHOMA CITY – On October 22, 2021, a federal jury in Oklahoma City convicted Christina Rochelle Anglin, aka Christy Anglin, of Burnsville, North Carolina, of employment tax fraud, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Robert J. Troester for the Western District of Oklahoma.
According to court documents and evidence presented at trial, Anglin was the Controller and Chief Financial Officer for Atmospheric Technology Services Company (ATSC) located in Norman, Oklahoma. In that role, Anglin was responsible for withholding from employee wages and paying to the IRS payroll taxes, which included Social Security and Medicare taxes and federal income taxes. From the first quarter through the third quarter of 2018, Anglin did not pay to the IRS nearly $920,000 in payroll taxes, which had been withheld from employees. At the same time these taxes were not paid, Anglin approved thousands of dollars of business expenditures, including salary and bonuses for herself and other executives.
At sentencing, Anglin faces a maximum penalty of five years in prison for each count of employment tax fraud plus payment of restitution to the IRS. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by IRS-Criminal Investigation (IRS-CI), Defense Criminal Investigative Service (DCIS), U.S. General Services Administration-Office of Inspector General (GSA-OIG), FBI, Naval Criminal Investigative Service (NCIS), Army Criminal Investigations Division (ARMY-CID), and the Small Business Administration-Office of Inspector General (SBA-OIG).
Assistant U.S. Attorney William Farrior of the U.S. Attorney’s Office for the Western District of Oklahoma and Trial Attorney Ahmed Almudallal of the Tax Division are prosecuting the case.
A Department of Justice national press release can be found at https://www.justice.gov/opa/pr/chief-financial-officer-oklahoma-business-found-guilty-employment-tax-fraud.
Chicago Man Sentenced to Federal Prison for Fraudulent Concert SchemeRead the Press Release
A man who fraudulently solicited artist booking deposits and other expenses for concerts that never occurred was sentenced on October 20, 2021, to more than six years in federal prison. Romel Murphy, age 43, from Chicago, Illinois, received the prison term after a January 8, 2021 guilty plea to one count of wire fraud.
Information from a plea agreement and at sentencing showed that Murphy operated a talent booking agency that ostensibly booked artists for performances at concert venues around the United States. From about November 2017 through March 2019, Murphy used his business to induce potential clients to send him funds to secure artists’ performances at concerts. For instance, Murphy sent signed contracts to victims that appeared to have come from the artists. In fact, Murphy had drafted and signed the contracts himself. The victim would sign the contracts and wire deposit funds to Murphy. Murphy did not send the money to the artists and converted the funds to his own use, including gambling. As the concert dates approached and the victims had advertised the concerts, the victims would discover that the artists had not received any funds, frequently through communications from the artists’ actual representatives. In total, Murphy defrauded his victims out of more than $410,000. Murphy had three prior convictions for federal fraud-related offenses. He committed two of those offenses while on federal supervised release.
Murphy was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Murphy was sentenced to 77 months’ imprisonment. He was ordered to make $414,433.23 in restitution to the victims of his offense. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Murphy was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Kyndra Lundquist and investigated by the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-0006.
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Charlotte Tax Preparer Is Sentenced to More than Five Years for $3 Million Tax FraudRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Robert J. Conrad Jr. sentenced Andrivia Wells, 54, of Charlotte, today to 70 months in prison for tax fraud, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. Wells, who also goes by the names Tina Smith, Tina Harris, Andrivia Smith, and Andrivia Harris, was also ordered to serve one year under court supervision and to pay $3,373,595 as restitution.
Mona Passmore, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI), Charlotte Field Office, joins Acting U.S. Attorney Stetzer in making today’s announcement.
According to filed court documents and today’s sentencing hearing, beginning in at least 2011 and continuing through June 2019, Wells owned and operated Rush Tax Service, a return preparation business with multiple locations in Charlotte. Between 2013 and 2017, Wells prepared, or caused to be prepared, more than 6,000 tax returns that falsely claimed more than $3 million in refunds. Wells and Rush Tax Service received over $1.2 million in fees from her clients. The tax preparation fees were taken directly from the clients’ tax refunds and in many cases the clients were unaware of how much they were being charged, which was frequently more than $500.
Court records also show that Wells prepared income tax returns for clients for 2013 through 2018 that claimed false filing statuses, false American Opportunity and education credits, and false fuel tax credits, among others, in order to inflate refunds paid by the IRS. In addition to filing fraudulent income tax returns for her clients, Wells falsified her own income tax returns by underreporting the fees she earned in her tax preparation business for tax years 2014, 2015, 2016, and 2017, and in 2018, she failed to file any tax return with the IRS. In addition, her 2012 through 2017 tax returns also falsely claimed American Opportunity credits and fuel tax credits, and the incorrect filing status.
On May 17, 2017, after being notified she was the subject of a criminal investigation and after being served a summons for records of Rush Tax Service, a fire was intentionally set at Rush Tax Service’s Beatties Ford Road location. The fire destroyed client files, financial records, and computer hardware. Subsequently, a grand jury subpoena was served on Rush Tax Service for records. It was at a February 2019 grand jury appearance that the government was first alerted to the May 2017 fire. After the indictment was returned on June 20, 2019, Wells was arrested and detained. On June 30, 2019, a second fire was intentionally set destroying Rush Tax Service documents that were responsive to the grand jury subpoena. At today’s sentencing, the Court found that Wells obstructed the administration of justice with respect to the investigation and prosecution of the offense and stated that this was “one fire too many.” As a result, the Court also found that Wells did not accept responsibility for her crimes.
In announcing today’s sentence, Judge Conrad said Wells “showed a profound disrespect for the law” and that “the tax structure breaks down when taxpayers and tax preparers” file false tax returns.
Wells pleaded guilty to aiding and assisting in the filing of false tax returns and filing a false tax return.
Acting U.S. Attorney Stetzer commended IRS-CI for their investigation of the case. Assistant U.S. Attorney Caryn Finley with the U.S. Attorney’s Office in Charlotte prosecuted the case.
Captain of Vessel is Sentenced to Federal Prison for Smuggling $287,660 in U.S. Currency into St. Thomas Following High-Speed Chase and Apprehension Near Savana IslandRead the Press Release
St. Thomas, USVI – U.S. Attorney Gretchen C.F. Shappert announced that Arioc Diaz Melendez, 28, from Puerto Rico, was sentenced today to 30 months in prison for concealing $287,660 in U.S. currency while onboard a vessel outfitted for smuggling.
According to court documents, Arioc Diaz Melendez was the captain of a vessel that was traveling without navigation lights at approximately 2:00 A.M. on September 30, 2019 north of Savana Island, U.S. Virgin Islands. Customs and Border Protection (CBP) Marine Units identified the vessel and pulled their vessel alongside the 24-foot yola-type vessel that was operating without lights. CBP agents activated their police blue lights and discharged a flare to convince the other vessel to yield.
When CBP agents attempted to initiate a stop, the other vessel did not yield but instead increased speed. The CBP agents shot one round into one of the engines of the other vessel at which point the vessel decreased speed and stopped. Agents observed Arioc Diaz Melendez speaking to the passenger of the vessel, identified as co-defendant Jose C. Diaz Melendez, at which point Jose C. Diaz Melendez threw a duffel bag overboard. The bag was recovered by CBP agents and later found to contain $287,660.00 in U.S. currency and a Glock firearm. After CBP agents disabled one of the boat’s motor, they boarded the vessel, and apprehended the captain, Arioc Diaz Melendez, and the passenger, Jose C. Diaz Melendez, of the vessel.
Homeland Security Investigations (HSI) and (CBP) investigated the case. Assistant U.S. Attorney Juan Albino prosecuted the case.
Bridgeport Marina Owner Who Illegally Scuttled Abandoned Vessels in Long Island Sound is SentencedRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that JOHN MAGNESS, 72, of Bristol, Maine, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to two years of probation and ordered to pay a $45,000 fine for scuttling several sailboats and motorboats between the Black Rock Harbor and the Pennfield Reef Lighthouse in Long Island Sound. Judge Underhill also ordered Magness to perform 50 hours of community service while on supervised release.
According to court documents and statements made in court, Magness, formerly of Southbury, Connecticut, was the owner of Bluefish Cove Marina in Bridgeport. While preparing to sell the property in 2018, Magness and Peter Albrecht, who worked at the marina, engaged Carlos Santos to sink several abandoned vessels in the Long Island Sound without a permit. Magness agreed to forgive Santos’ unpaid dockage fees in exchange for his help sinking the vessels. Investigators identified as least five vessels as having been scuttled at Magness’ request between October 2018 and April 2019.
On November 2, 2020, Magness pleaded guilty to one count of obstruction of navigable waters by sinking a vessel. Albrecht, of Norwalk, and Santos, of Westbrook, each previously pleaded guilty to the same charge and was sentenced to a one-year term of probation. Albrecht was ordered to pay a $1,000 fine and Santos was ordered to pay a $500 fine.
This matter was investigated by the U.S. Coast Guard Investigative Service and prosecuted by Assistant U.S. Attorney Lauren C. Clark.
Bridgeport Gang Member Admits Murder, Role in Courthouse Shooting, Other Violent ActsRead the Press Release
TYIESE WARREN, also known as “Loose Screw,” 21, of Bridgeport, pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to a racketeering offense stemming from a murder and other violent crimes he committed as a member of a Bridgeport gang.
Today’s announcement was made by Leonard C Boyle, Acting United States Attorney for the District of Connecticut; Joseph T. Corradino, State’s Attorney for the Fairfield Judicial District; Bridgeport Acting Police Chief Rebeca Garcia; James Ferguson, Special Agent in Charge, ATF Boston Field Division; David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, and Acting U.S. Marshal Lawrence Bobnick.
According to court documents and statements made in court, the FBI, ATF, DEA, U.S. Marshals Service and Bridgeport Police have been investigating multiple Bridgeport-based gangs whose members are involved in narcotics trafficking, murder and other acts of violence. Warren has been a member of the “Original North End” (“O.N.E.”), a gang based in the Trumbull Gardens area of Bridgeport whose members sold narcotics, laundered narcotics proceeds, committed acts of violence against rival gang members, robbed drug dealers, stole cars from inside and outside Connecticut and used them to commit crimes, and tampered with witnesses who might testify against them. From approximately 2017 until August 2020, O.N.E. members were aligned with the “Greene Homes Boyz” (“GHB/Hotz”), a gang based in the Charles F. Greene Homes Housing Complex in Bridgeport’s North End, against rival groups in Bridgeport, including the East End, East Side and PT Barnum gangs, as well as 150, which is a geographic gang based on the West Side of Bridgeport.
In pleading guilty, Warren admitted that on December 8, 2019, he and others shot and killed Ty’Quess Moore, a member or associate of the East End/P.T. Barnum gang alliance.
Warren also helped plan the retaliation shootings of East End gang members and associates in a brazen afternoon shooting in front of a Bridgeport courthouse. At 12:11 p.m. on January 27, 2020, Bridgeport Police responded to the area of 172 Golden Hill Street in Bridgeport after a Shot Spotter activation detected approximately 20 shots being fired in front of the state courthouse located there. Upon arrival, investigators discovered that four victims had been shot while sitting inside a black Chevrolet Impala. One victim was shot in the side of his chest and was left paralyzed and a second victim sustained multiple gunshot wounds to his back, shoulder and wrist. The victims’ vehicle had approximately 23 entry bullet holes in the driver’s side and windshield area.
Warren also admitted that he participated in gang-related drug trafficking.
Further, on March 25, 2020, Warren and an accomplice stole a car that was in front of the Citgo 6M Service Station and Quik Mart located at 2000 Barnum Avenue in Stratford. During the theft, they dragged the car’s driver, who was trying to stop the theft and was hanging onto the car, several hundred yards before he let go. Warren and an accomplice then engaged in a carjacking involving a Toyota Corolla in Bridgeport, holding the owner at gunpoint and ultimately driving away in the car. Minutes later, Warren and an accomplice committed a gunpoint robbery of the Citgo in Stratford, taking cash from the store and a cellphone from a store employee. Stratford Police arrested Warren later that night after he crashed another stolen car he was driving on an I-95 on-ramp and then ran from police.
Warren pleaded guilty to one count of conspiracy to engage in a pattern of racketeering activity. Judge Dooley scheduled sentencing for January 21, 2022, at which time Warren faces a maximum term of imprisonment of life.
Warren has been detained since March 25, 2020.
This ongoing investigation is being conducted by ATF, the FBI’s Safe Streets and Violent Crimes Task Forces, DEA, U.S. Marshals Service, Bridgeport Police Department, Connecticut State Police and the Bridgeport State’s Attorney’s Office, with the assistance of the U.S. Postal Inspection Service, Connecticut Forensic Science Laboratory and the Stratford and Naugatuck Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Jocelyn C. Kaoutzanis, Rahul Kale, Peter D. Markle, Karen L. Peck and Stephanie T. Levick.
This prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN), Project Longevity and Organized Crime Drug Enforcement Task Forces (OCDETF) programs.
PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it. If a group member elects to engage in gun violence, the focused attention of federal, state and local law enforcement will be directed at that entire group.
OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Atlanta pharmacy to pay $4.6 million to settle False Claims Act allegations regarding compound medicationsRead the Press Release
ATLANTA – Curant, Inc., which owns pharmacies in Smyrna, Georgia and St. Petersburg, Florida, along with its owners and related entities, agreed to pay $4.6 million to resolve allegations that they violated the False Claims Act by, among other things, charging the government far higher prices than the “usual and customary” prices charged to other patients.
“Pharmacies cannot overcharge government healthcare programs while offering cheaper prices to others, in violation of their payor agreements,” said Acting U.S. Attorney Kurt Erskine. “Such actions undermine efforts to protect government healthcare plans and keep costs lower.”
“The FBI is committed to protecting the health and safety of the American taxpayer,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Healthcare providers that take shortcuts to increase their financial bottom line must be held accountable for improper and illegal billings that increase the cost of medical care.”
“This settlement serves as a warning to those companies and individuals who seek to take advantage of the Department of Defense (DoD) health care program,” stated Special Agent in Charge Cynthia A. Bruce of the DoD, Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “DCIS and our investigative partners are committed to fully investigating allegations of fraud, waste and abuse which jeopardize our military families’ precious healthcare resources.”
Curant Health Georgia LLC and Curant Health Florida LLC, which are owned by Patrick Dunham, Scott Zepp, Marc O’Connor, and Pankajkumar Patel (collectively “Curant”), dispensed compound pain creams and scar creams to TRICARE beneficiaries. TRICARE provides health insurance to members of the military and their families. In order to keep costs down, TRICARE prohibits pharmacies from charging more than their “usual and customary” price, which is defined as the retail price of the medication in a cash transaction. Despite this prohibition, the government alleges that between 2013 and 2015, Curant charged TRICARE a much higher price for its compound creams than it offered to its cash-paying patients.
The government further alleges that, between 2013 and 2015, Curant paid kickbacks to a third-party marketer to arrange for doctors to send prescriptions to Curant, it waived patient copayments in an effort to drive up its sales, it submitted claims to TRICARE for compound creams that were not medically necessary, and it failed to return overpayments that it had received from TRICARE once it learned of them.
This civil settlement resolves a lawsuit filed in the U.S. District Court for the Northern District of Georgia by Dennis Long, a former pharmacist at Curant’s Georgia pharmacy, under the qui tam, or whistleblower provisions, of the False Claims Act. United States ex rel. Long v. Curant Health Georgia, LLC, et al., Civil Action No. 1:19-CV-3954-AT. Under the False Claims Act, private citizens may bring suit for false claims on behalf of the United States and share in any recovery obtained by the government. Mr. Long will receive $805,000 from the settlement. Curant will also pay his attorney’s fees.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the Defense Criminal Investigative Service, and the FBI.
The civil settlement was reached by Assistant U.S. Attorney Anthony DeCinque.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Agents Arrest 17 People in Large-Scale Multi-State Drug Trafficking Ring Involving Fentanyl, Heroin, Crystal Methamphetamine and FirearmsRead the Press Release
ST. LOUIS – This week the Drug Enforcement Administration, United States Marshals Service, and United States Postal Inspection Service arrested 17 people in Missouri, Arizona, California, and Mexico linked to an organized multi-state drug trafficking conspiracy.
According to the previously sealed sixteen count indictment, returned on October 13, 2021, this was a long-running drug distribution conspiracy operating in the Eastern District of Missouri and with ties to California, Arizona, and Texas. According to a court document, law enforcement officers seized items including: (1) approximately 50 pounds of fentanyl; (2) 500 pounds of methamphetamine; (3) 50 firearms; and (4) more than $400,000 in drug proceeds. The conspiracy included the mailing and shipping of packages containing large amounts of the illegal drugs to be distributed in the St. Louis area and other cities in the United States. Three defendants are also charged with firearms violations. Among the defendants indicted in this case are:
Stephen Griffin: M, St. Louis, 27
Kenny Thomas: M, St. Louis, arrested in Mexico, 38
Raymundo Deleon: M, in custody in Los Angeles, 40
Kyanna Canales: F, arrested in Phoenix, 19
Ariel Navarez-Gonzalez: M, arrested in Phoenix, 20
Troy Mills: M, St. Louis, 30
Arieawn Dillon: M, St. Louis, 26
Daveon Barnes: M, St. Louis, 27
Dalvin Wiley: M, St. Louis, 29
Crystal Miller: F, St. Louis, 27
Latoya Wilson: F, St. Louis, 40
Steven Hilliard: M, St. Louis, 30
Andrew Prout: M, in custody in Missouri, 28
Ariel Randall: F, St. Louis, 26
Jessica Alvarez: F, arrested in Los Angeles, 40
Larry Martinez-Soto: M, arrested in Phoenix, 24
Sanela Demirovic: F, St. Louis, 31
“The individuals arrested earlier this week for their involvement in drug related crimes and activities provide an example of the threat the drug industry imposes in our communities,” DEA St. Louis Division Assistant Special Agent in Charge Colin Dickey said. “The drug cell we dismantled with operations in various states in the United States and Mexico has no regard for the people around them and will take whatever actions necessary to protect their profit and themselves. This fact is evident by the significant amount of drugs, weapons and money seized in the multi-state, multi-agency operation. It’s important for everyone to keep in mind that no city is immune from the threat of drugs. The only way we can keep our streets safe is by working together to educate those around us on the dangers of these illegal substances and the threat associated with them.”
For the past three years, the U.S. Postal Inspection Service and its law enforcement partners have tenaciously investigated this multi-state drug trafficking network operated largely by violent gangs around the country,” stated Inspector in Charge William Hedrick who heads the Postal Inspection Service’s Chicago Division, which includes the St. Louis field office. “The resulting indictment and arrests should serve as a warning to all criminals who see fit to utilize the U.S. Mail to conduct their illegal drug business.”
John Jordan, the United States Marshal for the Eastern District of Missouri, provided the following statement: The United States Marshals Service serves as the United States Government’s primary fugitive investigation and apprehension agency. Empowered through federal law, the USMS also serves as a charter agency within the Organized Crime Drug Enforcement Task Forces. The focus of the USMS within the OCDETF program is to “destabilize and disrupt the most serious crime organizations through joint and collaborative fugitive investigations.” In this case, USMS personnel were contacted by our partner agencies, conducted fugitive investigations, and coordinated arrests across several metropolitan areas and with the assistance of multiple USMS investigative assets. The USMS remains committed to the OCDETF goal of dismantling dangerous national-level drug trafficking organizations.
Charges set forth in the indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
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 to combat transnational organized crime. The OCDETF program facilitates complex, joint operations by focusing its partner agencies on priority targets, by managing and coordinating multi-agency efforts, and by leveraging intelligence across multiple investigative platforms. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was investigated by the Drug Enforcement Administration, United States Postal Inspection Service, United States Marshals Service with assistance from officers at the following police departments: Bellefontaine Neighbors, Shrewsbury, St. Louis Metropolitan, St. Louis County, St. Charles County, Ballwin and Maryland Heights. This investigation was also supported by DEA’s Special Operations Division under Operation Isolated Culture.
Additional Carjacking and Firearm Charges Added to Federal Indictment Accusing Chicago Man of Murdering Rideshare DriverRead the Press Release
CHICAGO — A newly filed federal indictment adds additional carjacking and firearm charges against a Chicago man accused of murdering a rideshare driver during a carjacking earlier this year.
EDMOND HARRIS, 18, was initially charged with carjacking a Lexus GS sedan and fatally shooting the driver, rideshare worker Javier Ramos, on March 23, 2021, in the North Lawndale neighborhood of Chicago. The superseding indictment renews that charge and adds additional carjacking and attempting carjacking charges against Harris.
JOSHUA WALKER, 21, of Chicago, is also charged in the new indictment with carjacking and firearm offenses.
According to the new charges, Harris and Walker conspired to carjack a Mitsubishi Outlander sport-utility vehicle in the Loop neighborhood of Chicago, and together committed that carjacking on Jan. 20, 2021. The new indictment alleges that Harris on the same day attempted to carjack another vehicle – a Nissan Altima sedan – in west suburban Oak Park.
In addition to the carjacking offenses, the new indictment charges Harris and Walker with federal firearm violations that, if convicted, carry mandatory minimum sentences in federal prison.
Harris and Walker are both in federal custody. Walker was arraigned last week in federal court in Chicago and pleaded not guilty to the charges. He is scheduled to appear for a detention hearing Thursday at 11:00 a.m. before U.S. Magistrate Judge Jeffrey T. Gilbert.
Harris will be arraigned on the superseding indictment Friday at 9:30 a.m. before U.S. District Judge Mary M. Rowland.
The superseding indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; David Brown, Superintendent of the Chicago Police Department; and LaDon Reynolds, Chief of the Oak Park Police Department. The government is represented by Assistant U.S. Attorneys Michelle Kramer and Paige Nutini.
The charges against Harris carry a mandatory minimum sentence of 27 years in federal prison and a maximum of death. The charges against Walker carry a mandatory minimum sentence of seven years in federal prison and a maximum of life.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Acting U.S. Attorney Announces Office Collects Nearly $11.4 MillionRead the Press Release
BOISE – Acting U.S. Attorney Rafael M. Gonzalez, Jr., announced today that the office’s Financial Litigation Program collected more than $10.94 million in criminal restitution, fines, and assessments and in civil debts for the fiscal year that ended September 30, 2021. In some cases, the U.S. Attorney’s Office worked in conjunction with litigating components of the U.S. Department of Justice. Of the total collected, approximately $5 million were criminal restitution, fines, and/or assessments, and approximately $5.9 million were civil debts. In addition, the Asset Forfeiture Unit deposited to the Asset Forfeiture Fund approximately $452,963 in proceeds and instruments of crime in criminal and civil forfeiture actions.
“This office’s collection and asset forfeiture attorneys, paralegals, analysts, and fiscal agents is second to none. They come to work every day to recover money for you from those who have hurt victims and attempted to profit from their nefarious deeds,” said Mr. Gonzalez. “We should all be proud of the outstanding work these dedicated public servants have done over the past year. These results show they served this office and the taxpayers of Idaho so very well.”
Victims of crime receive funds collected in criminal restitution cases. In fiscal year 2021, the U.S. Attorney’s Office, through the Financial Litigation Program, collected over $4.6 million in criminal restitution that was or will be distributed to victims of crime. Other criminal collections such as fines go into the Crime Victims Fund. From there, funds are distributed to the Idaho Crime Victims Compensation Program, the Idaho Council on Domestic Violence and Victim Assistance, and similar programs across the country. Money recovered from the illegal proceeds of criminal activity through forfeiture is returned to victims, used to offset the costs of operating federal prisons, and shared with local, state, and federal law enforcement agencies to help fight crime. Other recoveries go back to agency creditors.
During the fiscal year, some notable criminal restitution collections include $3 million from a defendant who committed wire fraud, almost $250,000 from a defendant who embezzled from their employer, $100,000 from a defendant who also embezzled funds, and almost $100,000 from a business for violating the Clean Water Act.
Forfeitures valued at approximately $452,963, included currency, vehicles, and other property related to trafficking in controlled substances, fraud, child exploitation, and other serious crimes. These included $191,841 from a defendant who embezzled from his employer and invested the proceeds in real estate and two $100,000 payments from defendants convicted of drug crimes. In some cases, the United States shared, or will share, seized money and property with local investigating agencies. In victim cases, the U.S. Attorney’s Office works to direct proceeds of forfeiture to crime victims.
As for civil debts and penalties, the Financial Litigation Program collects civil penalties for violations of regulations involving, among other things, controlled substances, environmental protection, damage to federal property, and procurement fraud. It also collects civil debts for defaulted loans.
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