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22 October 2021
Former Payroll Administrator Sentenced to Eight Years in Prison for Stealing over $1.6 Million from Former EmployerRead the Press Release
WASHINGTON – Eleanor R. Milligan, 61, a longtime payroll administrator from Laurel, Md., was sentenced today to eight years in prison for carrying out a scheme in which she embezzled more than $1.6 million from her former employer.
The announcement was made by Acting U.S. Attorney Channing D. Phillips and Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division.
Milligan was found guilty by a jury in July 2021, following a trial in the U.S. District Court for the District of Columbia, of wire fraud, aggravated identity theft, and first-degree theft. She was sentenced by the Honorable Timothy J. Kelly. The Court also ordered Milligan to pay restitution in the amount of $1,618,082 as well as a forfeiture money judgment in the same amount. Following her prison term, she will be placed on at least three years of supervised release.
According to the government’s evidence at trial, except for brief periods, Milligan worked from 1998 to 2016 for a company based in Washington, D.C. Beginning in at least or about August 2009, and continuing until in or about March 2016, Milligan used her fellow employees’ names and personal identifying identification without authority to transmit false payment requests to herself through the employer’s payroll processing system.
In total, Milligan stole money on more than 500 occasions, totaling $1,618,082. In addition, when she was nearly caught, Milligan created a fake email and mailing address in the name of another employee, whose identity she used to hide her scheme and that she was actually receiving the fraudulent payments herself.
In announcing the sentence, Acting U.S. Attorney Phillips and Special Agent in Charge Jacobs commended the work of those who investigated the case from the FBI’s Washington Field Office. They also expressed appreciation for the assistance provided by the Metropolitan Police Department (MPD). They commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Chad Byron and Michon Tart, Victim-Witness Service Coordinator Tonya Jones, Supervisory Litigation Technology Specialist Leif Hickling, Litigation Technology Specialist Jeanie Latimore-Brown, and Assistant U.S. Attorneys Diane Lucas and Christine Macey, who prosecuted the case.
Former Madison High School Teacher Sentenced to 12 Years for Secretly Filming StudentsRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, and Wisconsin Attorney General Josh Kaul announced that David M. Kruchten, 39, was sentenced today by U.S. District Judge James Peterson to 12 years in federal prison for attempting to produce obscene depictions of minors engaging in sexually explicit conduct and transporting minors in interstate commerce with the intent to engage in illicit sexual conduct. This term of imprisonment is to be followed by 20 years of supervised release. Kruchten pleaded guilty to these charges on August 16, 2021.
On December 6, 2019, a group of students went to Minneapolis on a school trip arranged by Kruchten. The trip was associated with a school organization and the defendant was one of their advisors and accompanied them on the trip. That evening, one of the students pressed down on an air freshener on the bathroom counter of her hotel room. When she pressed it, the device opened up and was revealed to be a surveillance camera.
After the discovery of the first device, the students started going through their rooms and found additional air fresheners, a smoke detector, two alarm clocks, and several thermostats that were all surveillance devices. Trusting Kruchten, the students turned over all the devices to him that night. He was later seen on hotel video appearing to dispose of the devices in trash cans around the hotel. Kruchten lied to authorities and said he gave the devices to a security guard at the hotel.
During the course of the investigation, multiple students provided pictures and videos that they had taken in their hotel rooms during school trips to the Kalahari Resort in Wisconsin Dells and the Grand Geneva Resort in Lake Geneva. In the photos provided, multiple air freshener type-devices are visible on the bathroom countertops. In the same photos, digital clocks, thermostats, and tissue boxes that were actually recording devices are also visible. The devices could be seen on the counter, on the toilet, and on the wall.
Kruchten used his personal credit card to reserve a suite at the Kalahari Resort in the Wisconsin Dells for trips in 2018 and 2019. He also determined which of the students stayed in this upgraded room. The photos and videos provided to law enforcement by the minors who stayed in the upgraded rooms showed numerous recording devices in each bathroom of the suite. He also rented a room at another Wisconsin resort for a babysitter. Photos she took of the bathroom also showed multiple recording devices in the bathroom.
At sentencing, numerous victims and their parents told the Court how Kruchten’s crimes had affected them and their families. Victims reported betrayal, sadness, and anger. Some reported fear showering in hotels and checking air fresheners in public bathrooms to ensure they were not recording devices. Parents also reported betrayal and guilt for allowing their children to go on trips with the defendant.
Judge Peterson thanked the victims and families for their courage and for letting him know through their statements how much the crime impacted the victims, their families, and the community. Judge Peterson also told the victims that the defendant took advantage of their good qualities and that they were not at fault.
In sentencing the defendant, Judge Peterson found Kruchten engaged in “sustained and masterful manipulation” and exploited the fact that he was a beloved teacher. Judge Peterson also found that the defendant was either lying to the Court or self-delusional in denying that his crime was sexually motivated.
The charges against Kruchten were the result of an investigation conducted by the Wisconsin Department of Justice Division of Criminal Investigation, the Minneapolis Police Department, and the Cottage Grove Police Department, with assistance from the Wisconsin Attorney General’s Office. Assistant U.S. Attorneys Elizabeth Altman and Laura Przybylinski Finn prosecuted this case.
Former Bank Teller Sentenced for Role in Bank Fraud ConspiracyRead the Press Release
BOSTON – A former bank teller was sentenced yesterday in federal court in Boston for her role in a scheme to fraudulently obtain funds from customer bank accounts.
Valnardia Novas, 25, of Framingham, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to one year of home confinement and two years of supervised release. Novas was also ordered to pay restitution of $341,433 and forfeiture of $27,900. On Dec. 10, 2020, Novas pleaded guilty to one count of bank fraud conspiracy.
This case was the result of a larger investigation into multiple schemes to withdraw funds, in the form of checks and cash, from customer accounts at several financial institutions. The organizers of the scheme paid individuals to go into banks with falsified identification documents in the names of bank customers and request withdrawals from those customers’ accounts. Bank tellers were also recruited to accept the falsified identification documents without scrutiny and facilitate the withdrawals. The fraudulently-obtained funds were then negotiated through accounts at other financial institutions that had been opened in the names of fictitious business entities.
Novas was a bank teller at TD Bank and was paid to participate in this scheme. In September and October 2017, co-conspirators instructed Novas to fraudulently withdraw more than $300,000 in the form of bank checks and cash.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Assistant U.S. Attorneys Leslie A. Wright and Christopher J. Markham of Mendell’s Securities, Financial & Cyber Fraud Unit prosecuted the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Federal Jury Convicts Gang Member of Drugs and Gun CrimesRead the Press Release
Tampa, Florida – A federal jury has found Keon Moore (29, Tampa) guilty of possessing a firearm or ammunition as a convicted felon and possessing controlled substances with the intent to distribute them. Moore faces a minimum mandatory penalty of 5 years, and up to, 40 years in federal prison. His sentencing hearing is scheduled for January 6, 2022.
Moore had been indicted on June 4, 2020.
According to testimony and evidence presented at trial, Moore is a convicted felon who stored guns and drugs for use by himself and others, sold guns and drugs, and threatened violence to collect drug debts. In one of Moore’s private Facebook communications, a person to whom Moore provided drugs on consignment, but who failed to pay on time, begged Moore not to kill him via drive-by shooting over the $90 he owed.
The charges and trial revolved around a Public Storage unit rented by Moore, but used by at least one other adult male. After a drug-detecting dog alerted to Moore’s unit, law enforcement officers executed a search warrant of the unit. Inside the otherwise empty 50 square-foot unit, officers found seven guns, including two assault rifles; ammunition; approximately 45 grams of pure methamphetamine; 34 grams of cocaine, 53 grams of Eutylone, and 1.6 kilograms of marijuana, among other drugs; and a clothing item containing Moore’s DNA.
Moore is a previously convicted felon, including multiple state burglary and drug possession convictions. As such, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the FBI, the Hillsborough County Sheriff’s Office, the Florida Department of Law Enforcement, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the Tampa Police Department. It is being prosecuted by Assistant United States Attorney Michael M. Gordon.
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.
Federal Grand Jury Indicts Four IndividualsRead the Press Release
PEORIA, Ill. – A federal grand jury returned indictments on October 19, 2021, against the following individuals:
Alante Malik Jackson, 22, of Peoria, Illinois, was charged with possession of a firearm by a felon. The offense occurred September 20, 2021, in Peoria County. The Peoria Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case. Jackson remains in federal custody.
John W. Beck, 54 – currently in federal custody on two counts of interference with commerce by robbery, one count of bank robbery, and one count of armed bank robbery and was charged with attempted escape in September 2021 from the Livingston County Jail in Pontiac, Illinois. The Federal Bureau of Investigation, Springfield Office, investigated the case.
Monica Renee Wright, 38, of Colorado Springs, Colorado, was charged in a superseding indictment with conspiracy to distribute and possess with intent to distribute at least 50 grams of actual methamphetamine, a Schedule II controlled substance, and at least 500 grams of a mixture and substance containing methamphetamine. The offense occurred during or about June 2016 and continued through about March 2017. The Drug Enforcement Administration investigated the case. Wright has been released on bond.
Daniel Allee, 42, of Vinton, Iowa, was charged with travel with intent to engage in illicit sexual conduct. The indictment alleges that Allee traveled interstate to engage in illicit sexual conduct with a person he believed to be under the age of 18 on or about October 6, 2021. The Federal Bureau of Investigation, Springfield Office, investigated the case, and Allee was arrested in Moline, Illinois, on that same date. He remains in the custody of the U.S. Marshals Service.
The U.S. District Court for the Central District of Illinois will schedule a date for the appearance of the defendants.
Members of the public are reminded that an indictment is merely an accusation; the defendants are presumed innocent unless proven guilty.
Ex-chairwoman of Montana Native Women’s Coalition sentenced for stealing federal grant fundsRead the Press Release
BILLINGS — The former chairwoman of the Montana Native Women’s Coalition was sentenced today for conviction at trial of stealing federal grant funds for unapproved travel to Las Vegas, Nevada, and other unauthorized expenses, Acting U.S. Attorney Leif M. Johnson said.
Meredith McConnell, 52, of Lame Deer, was found guilty on April 2 at trial by a federal jury on all counts in a superseding indictment, including theft from a program receiving federal funding, wire fraud and false claims.
McConnell faced a possible sentence of 20 years in prison for wire fraud. The government requested a sentence within the guideline range of 12 months to 18 months in prison, and the court sentenced McConnell to four years of probation and ordered $29,114 restitution jointly and severally with co-defendant Sheryl Lynn Lawrence.
U.S. District Judge Susan P. Watters presided.
“As chairwoman of the Montana Native Women’s Coalition, McConnell was entrusted with the responsibility of using federal money to help domestic violence victims on Montana’s Indian reservations. McConnell even received training on how not to commit fraud. Yet, she committed fraud anyway and used the money for her own benefit. Those who misuse grant funds will be held accountable and prosecuted. I want to thank Assistant U.S. Attorneys Ryan G. Weldon and Bryan T. Dake and the Department of Justice Office of the Inspector General for investigating and prosecuting this case.”
“McConnell stole grant funds that were meant to help Native American victims of domestic and sexual violence. Today’s sentencing shows that those who steal federal grant funds will be brought to justice,” said Douglas B. Bruce, Special Agent in Charge of the Department of Justice Office of the Inspector General Denver Field Office.
In court documents and in evidence presented at trial, the government alleged that beginning in about August 2017, McConnell, along with others, misappropriated federal grant funds to give cash payments to others, to buy purses and earrings as door prizes, to meet in Las Vegas, a trip that cost $31,744, and to receive double payments for meals. Prosecutors alleged that during a four-month period, McConnell was responsible in the misappropriation of more than 10 percent of grant funds designed to help victims of domestic violence Montana’s Indian reservations.
The thefts occurred four months after McConnell and other board officials participated in training about conflicts of interest, whistleblower policies, ethics and financial oversight. The training came after the Coalition’s previous executive director, Toni Plummer, was convicted of fraud in March 2017 for stealing approximately $246,000 from the organization.
The Coalition is a Lame Deer-based organization that helps Native American victims of domestic and sexual violence. The Coalition receives funding from the U.S. Department of Justice’s Office on Violence Against Women (OVW), which provides grants for victim services. OVW awarded the Coalition $318,008 from October 1, 2017 to September 30, 2018.
Co-defendants Sheryl Lynn Lawrence, of Colstrip, who was the Coalition’s executive director, and Barbara Mary Daychief, of Browning, who was a Coalition board member, each pleaded guilty to theft of federal funds. Lawrence was sentenced to three years of probation and ordered to pay $35,127 restitution jointly and severally with McConnell. Daychief was sentenced to two years of probation and ordered to be solely liable for $2,973 restitution.
Assistant U.S. Attorneys Ryan G. Weldon and Bryan T. Dake prosecuted the case, which was investigated by Department of Justice Office of the Inspector General.
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Elkton Fentanyl Drug Dealer Pleads Guilty to Fentanyl Distribution Charges Relating to A Fatal OverdoseRead the Press Release
Baltimore, Maryland – Robert Allen Valladares, age 37, of Elkton, Maryland, pleaded guilty yesterday to distribution of fentanyl, and two counts of possession with intent to distribute fentanyl.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police; Cecil County State’s Attorney James A. Dellmyer; Cecil County Sheriff Scott Adams; and Chief Carolyn Rogers of the Elkton Police Department.
According to his guilty plea, in December 2019, the Cecil County Drug Task Force received information from a confidential informant that identified Valladares as a Cecil County controlled substances dealer acting under the alias of “Rob Valley” and provided his cell phone number.
On February 8, 2020, the Elkton Police Department was dispatched to a residence in reference to an overdose death. Upon arrival, an officer made contact with the victim’s father who stated that his son was deceased in his bedroom from, what he believed to be, an overdose. Emergency medical services arrived and pronounced the victim deceased shortly after.
Within the victim’s bedroom, officers located two empty wax bags stamped “Facetime” laying on the victim’s bed, an uncapped syringe that appeared to contain blood in it, and four cell phones. According to the victim’s family, the victim was recently discharged from a recovery house and appeared to be recovering well.
The victim’s father then informed officers that the night before the victim’s death, the victim asked his father to take him to his friend “Rob’s” house to obtain suboxone strips. The victim’s father knew Valladares and had meet him previously. Once the victim’s father drove him to Valladares’ residence, the victim went inside for approximately two minutes and returned to his father’s vehicle.
An autopsy performed on the victim’s body revealed the cause of death to be a mixed drug intoxication of acyrl fentanyl, fentanyl, desproprionyl fentanyl, methamphetamine and xylazine.
A subsequent forensic data extraction of the victim’s four cell phones revealed that the victim had called Valladares one day before his death and texted Valladares that his father was bringing him to his residence, and that they had to “keep it on the low”.
As stated in his plea agreement, on February 13, 2020, investigators executed a search warrant on Valladares’ residence. As a result of the search warrant, investigators seized prescription alprazolam pills, a digital scale, mail addressed to Valladares, five blue wax bags stamped “Facetime” containing suspected fentanyl, additional empty blue wax bags stamped “Facetime,” and a cell phone. Analysis of three of the blue wax bags stamped “Facetime” revealed the substance to be fentanyl.
A subsequent forensic data extraction of Valladares’ cell phone revealed that it contained over 80,000 text messages and messages consistent with the distribution and sale of controlled substances.
On May 4, 2020, a traffic stop was conducted on a vehicle leaving the Valladares residence. A K-9 scan resulted in the discovery of baggies containing fentanyl in the car. The driver advised that he had been purchasing drugs from Valladares for the past three to four months. Analysis of the substance within the bags seized from the car was confirmed to be fentanyl.
On May 19, 2020, a search warrant was executed at Valladares’ Elkton, Maryland residence. Valladares was detained at the front door of the residence. A search of the house yielded 38 bags of fentanyl. Valladares admits that he possessed the fentanyl with the intent to distribute it.
Valladares and the government have agreed that, if the Court accepts the plea agreement, Valladares will be sentenced to between 132 months and 168 months in federal prison. U.S. District Judge Ellen L. Hollander has scheduled sentencing for January 7, 2022 at 2 p.m.
United States Attorney Erek L. Barron commended the Maryland State Police, Office of the State’s Attorney for Cecil County, Cecil County Sheriff’s Office, and the Elkton Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Kim Y. Oldham and Mary W. Setzer, who are prosecuting the case.
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El Departamento de Justicia anuncia una nueva iniciativa para combatir la exclusión financieraRead the Press Release
El Departamento de Justicia anunció hoy el lanzamiento de la nueva iniciativa del Departamento para combatir la exclusión financiera (“redlining” en inglés). La exclusión financiera es una práctica ilícita en la que los prestamistas evitan la provisión de servicios a individuos que viven en comunidades de color por motivos de la raza o el origen nacional de las personas que viven en esas comunidades. La nueva Iniciativa representa el esfuerzo de aplicación de la ley más agresivo y coordinado del Departamento que aborde el tema de la exclusión financiera, cosa que, en virtud de la ley de Vivienda Justa y la ley de Igualdad de Oportunidades de Crédito, está prohibida.
«La discriminación en el ámbito crediticio va en contra de promesas fundamentales de nuestro sistema económico», declaró el Fiscal General Merrick B. Garland. «Cuando se les niega a las personas un préstamo simplemente por motivos de su raza u origen nacional, su capacidad de participar en la prosperidad de nuestra nación prácticamente se elimina. Hoy, nos estamos comprometiendo a abordar la exclusión financiera moderna al hacer un uso mucho más robusto de nuestras autoridades de préstamos justos. No escatimaremos ningún recurso en nuestra lucha por garantizar que las leyes de préstamos justos se hagan cumplir con firmeza y que las instituciones financieras proporcionen a cada estadounidense la igualdad de oportunidades de obtener un préstamo».
«Si queremos asegurar que los bancos y prestamistas brinden la igualdad de acceso a oportunidades crediticias a comunidades de color, es esencial hacer cumplir nuestras leyes de préstamos justos», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «El acceso igualitario y justo a oportunidades de crédito hipotecario es la piedra angular en la cual las familias y comunidades pueden crear riqueza en nuestro país. Todos sabemos muy bien que la exclusión financiera no constituye un problema de otra época sino una práctica que sigue siendo dominante en la industria crediticia de hoy. Nuestra nueva Iniciativa debe trasmitir un mensaje claro a los bancos y prestamistas que nosotros les haremos rendir cuentas de sus acciones a medida que trabajemos por combatir prácticas crediticias que discriminan con base en la raza u origen nacional de uno».
La exclusión financiera, una práctica institucionalizada por el Gobierno federal durante la época del New Deal e implementada en aquel entonces y hoy día por prestamistas privados, ha tenido un impacto negativo duradero. Para las familias estadounidenses, el ser propietario de una vivienda sigue siendo la forma principal de crear riqueza, y la privación de inversión en y acceso a servicios de crédito hipotecario en las comunidades de color ha contribuido a tasas continuamente más bajas entre las comunidades de color de propietarios de viviendas y patrimonio neto, en comparación con familias blancas. La brecha en las tasas de propietarios entre las familias blancas y las negras es más ancha hoy que en 1960, antes de la aprobación de la ley de Vivienda Justa de 1968.
Esta Iniciativa, que será dirigida por la Sección de Vivienda y Cumplimiento de la Ley Civil de la División de Derechos Civiles, en asociación con las Fiscalías Federales, empleará como base el trabajo de muchos años de la División cuya meta es convertir a los préstamos hipotecarios y la posibilidad de ser propietario en algo al que todo estadounidense pueda acceder bajo los mismos términos, independientemente de su raza u origen nacional e independientemente del barrio en el que vive. La Iniciativa:
- Utilizará las Fiscalías Federales como fuerzas multiplicadoras para garantizar que la aplicación de las leyes de préstamos justos sea informada por pericia local en los mercados inmobiliarios y las necesidades crediticias de comunidades locales de color.
- Expandirá los análisis del Departamento de posibles casos de exclusión financiera a tanto las instituciones depositarias como a las no depositarias. Los prestamistas no depositarios no son bancos tradicionales y no prestan servicios bancarios típicos pero conceden préstamos hipotecarios y actualmente son los responsables de la mayoría de las hipotecas en este país.
- Fortalecerá nuestra asociación con agencias reguladoras financieras con el fin de garantizar la identificación de infracciones de las leyes de préstamos justos y la referencia de las mismas al Departamento de Justicia.
- Aumentará la coordinación con Fiscales Generales Estatales en lo que se refiere a posibles infracciones de las leyes de préstamos justos.
El acuerdo con Trustmark National Bank
Además del anuncio de hoy del lanzamiento de la Iniciativa, el Departamento de Justicia, la Fiscalía Federal para el Distrito Oeste de Tennessee, la Oficina para la Protección Financiera del Consumidor (CFPB, por sus siglas en inglés) y la Oficina del Contralor de la Moneda (OCC, por sus siglas en inglés) anunciaron un acuerdo para resolver alegatos de que Trustmark National Bank había discriminado en el ámbito crediticio al practicar la exclusión financiera contra barrios en Memphis, Tennessee cuyos residentes son principalmente negros e hispanos.
La orden de consentimiento propuesta de las partes se presentó hoy en combinación con una demanda ante el Tribunal Federal de Distrito para el Distrito Oeste de Tennessee. La demanda alega que Trustmark National Bank vulneró la ley de Vivienda Justa y la Ley de Igualdad de Oportunidades Crediticias, las cuales prohíbe que las instituciones financieras discriminen por motivos de raza, color de piel u origen nacional en la provisión de sus servicios de crédito hipotecario. Más aún, la demanda alega que Trustmark National Bank vulneró la ley de Protección Financiera del Consumidor, que prohíbe la oferta o provisión a un consumidor de productos o servicios financieros de una manera que no esté en conformidad con las leyes federales financieras destinadas a los consumidores.
En concreto, la demanda alega que, entre el 2014 y el 2018, Trustmark practicó exclusión financiera ilícita en Memphis al evitar barrios cuyos residentes son principalmente negros e hispanos, por motivos de la raza, el color de piel y el origen nacional de las personas que vivían en esos barrios o que pedían un préstamo para propiedades ubicadas en los mismos. Por otra parte, la demanda alega que las sucursales de Trustmark estaban concentradas en barrios de mayoría blanca, que los oficiales de crédito del banco no satisfacían las necesidades crediticias de barrios de mayoría negra o hispana, que los esfuerzos de extensión comunitaria y mercadeo de Trustmark esquivaban esos barrios y que los procedimientos y políticas internos de Trustmark de préstamos justos no eran suficientes como para garantizar que el banco brindara la igualdad de acceso al crédito a las comunidades de color.
El Departamento inició su investigación después de que uno de los reguladores de Trustmark, la OCC, refirió el asunto. Trustmark ha cooperado plenamente en esta investigación y resolvió los alegatos de forma amigable.
«Trustmark excluyó y discriminó, de manera intencional, a comunidades negras e hispanas», declaró Rohit Chopra, el director de la Oficina para la Protección Financiera del Consumidor. «El Gobierno federal luchará por eliminar prácticas empresariales racistas en el mercado, incluyendo aquellas provenientes de algoritmos discriminatorios».
«Para muchas familias estadounidenses, el ser propietario de una vivienda es el fundamento del éxito económico», comentó el Fiscal Federal Interino para el Distrito Oeste de Tennessee, Joseph C. Murphy Jr. «Las prácticas de préstamos justos que se requieren en virtud de las leyes federales, así como la aplicación de dichas leyes, garantizan un mejor futuro para todo estadounidense. Nuestra oficina cree que medidas de aplicación de la ley de esta naturaleza son primordiales para un sistema de préstamos justos que beneficia a todos y seguiremos dando prioridad a estos casos».
«Desde hace mucho tiempo, la OCC ha tenido una sólida asociación con la Sección de Vivienda y Cumplimiento de la Ley Civil de la División de Derechos Civiles del Departamento de Justicia: ha referido posibles infracciones de las leyes de préstamos justos y hemos compartido nuestros hallazgos extensos de los equipos examinadores, economistas y legales, tal y como hemos hecho en el caso de Trustmark», indicó el Contralor Interino de la Moneda, Michael J. Hsu. «El anuncio de hoy es importante porque representa el enfoque unificado y absoluto que cada una de nuestras agencias ha dedicado a la aplicación de la ley de Vivienda Justa y la ley de Igualdad de Oportunidades de Crédito. Nuestros esfuerzos colectivos son esenciales al abordaje de las prácticas crediticias discriminatorias que crean y refuerzan la inequidad racial en el sistema financiero».
Conforme la orden de consentimiento propuesto:
- Trustmark invertirá $3.85 millones en un fondo de préstamos subsidiados para incrementar las oportunidades crediticias para residentes actuales y futuros de barrios cuyos residentes son principalmente negros e hispanos en la zona de Memphis; dedicará al menos cuatro oficiales de crédito hipotecario o especialistas en préstamos comunitarios a estos barrios y abrirá una oficina de producción crediticia en un barrio de Memphis cuyos residentes son principalmente negros o hispanos.
- Trustmark dedicará $400,000 al desarrollo de asociaciones comunitarias para la prestación de servicios a residentes de barrios de Memphis que son principalmente negros e hispanos que mejorarán el acceso al crédito hipotecario residencial.
- Por otra parte, Trustmark dedicará al menos $200,000 por año a iniciativas de publicidad, proyección comunitaria, educación financiera del consumidor y reparación del crédito en Memphis y sus alrededores.
- Trustmark pagará a la OCC y la CFPB una sanción civil monetaria que asciende, en su totalidad, a $5 millones.
- Trustmark ya ha establecido un Comité de Supervisión de las Leyes de Préstamos Justos y ha designado un Gestor de Crédito Comunitario que supervisará estos esfuerzos y trabajará estrechamente con el liderazgo del banco.
En agosto del 2021, el Departamento anunció un acuerdo con Cadence Bank por motivos de exclusión financiera. Conforme al acuerdo, Cadence invertirá más de $5.5 millones para mejorar las oportunidades crediticias de residentes de barrios de Houston que son principalmente negros e hispanos.
Para informarnos de incidentes de discriminación en el ámbito crediticio, llame a la línea informativa del Departamento de Justicia para discriminación en la vivienda al 1-833-591-0291 o entregue un informe en línea.
El Departamento de Justicia anuncia una nueva iniciativa para combatir la exclusión financieraRead the Press Release
El Departamento de Justicia anunció hoy el lanzamiento de la nueva iniciativa del Departamento para combatir la exclusión financiera (“redlining” en inglés). La exclusión financiera es una práctica ilícita en la que los prestamistas evitan la provisión de servicios a individuos que viven en comunidades de color por motivos de la raza o el origen nacional de las personas que viven en esas comunidades. La nueva Iniciativa representa el esfuerzo de aplicación de la ley más agresivo y coordinado del Departamento que aborde el tema de la exclusión financiera, cosa que, en virtud de la ley de Vivienda Justa y la ley de Igualdad de Oportunidades de Crédito, está prohibida.
«La discriminación en el ámbito crediticio va en contra de promesas fundamentales de nuestro sistema económico», declaró el Fiscal General Merrick B. Garland. «Cuando se les niega a las personas un préstamo simplemente por motivos de su raza u origen nacional, su capacidad de participar en la prosperidad de nuestra nación prácticamente se elimina. Hoy, nos estamos comprometiendo a abordar la exclusión financiera moderna al hacer un uso mucho más robusto de nuestras autoridades de préstamos justos. No escatimaremos ningún recurso en nuestra lucha por garantizar que las leyes de préstamos justos se hagan cumplir con firmeza y que las instituciones financieras proporcionen a cada estadounidense la igualdad de oportunidades de obtener un préstamo».
«Si queremos asegurar que los bancos y prestamistas brinden la igualdad de acceso a oportunidades crediticias a comunidades de color, es esencial hacer cumplir nuestras leyes de préstamos justos», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «El acceso igualitario y justo a oportunidades de crédito hipotecario es la piedra angular en la cual las familias y comunidades pueden crear riqueza en nuestro país. Todos sabemos muy bien que la exclusión financiera no constituye un problema de otra época sino una práctica que sigue siendo dominante en la industria crediticia de hoy. Nuestra nueva Iniciativa debe trasmitir un mensaje claro a los bancos y prestamistas que nosotros les haremos rendir cuentas de sus acciones a medida que trabajemos por combatir prácticas crediticias que discriminan con base en la raza u origen nacional de uno».
La exclusión financiera, una práctica institucionalizada por el Gobierno federal durante la época del New Deal e implementada en aquel entonces y hoy día por prestamistas privados, ha tenido un impacto negativo duradero. Para las familias estadounidenses, el ser propietario de una vivienda sigue siendo la forma principal de crear riqueza, y la privación de inversión en y acceso a servicios de crédito hipotecario en las comunidades de color ha contribuido a tasas continuamente más bajas entre las comunidades de color de propietarios de viviendas y patrimonio neto, en comparación con familias blancas. La brecha en las tasas de propietarios entre las familias blancas y las negras es más ancha hoy que en 1960, antes de la aprobación de la ley de Vivienda Justa de 1968.
Esta Iniciativa, que será dirigida por la Sección de Vivienda y Cumplimiento de la Ley Civil de la División de Derechos Civiles, en asociación con las Fiscalías Federales, empleará como base el trabajo de muchos años de la División cuya meta es convertir a los préstamos hipotecarios y la posibilidad de ser propietario en algo al que todo estadounidense pueda acceder bajo los mismos términos, independientemente de su raza u origen nacional e independientemente del barrio en el que vive. La Iniciativa:
- Utilizará las Fiscalías Federales como fuerzas multiplicadoras para garantizar que la aplicación de las leyes de préstamos justos sea informada por pericia local en los mercados inmobiliarios y las necesidades crediticias de comunidades locales de color.
- Expandirá los análisis del Departamento de posibles casos de exclusión financiera a tanto las instituciones depositarias como a las no depositarias. Los prestamistas no depositarios no son bancos tradicionales y no prestan servicios bancarios típicos pero conceden préstamos hipotecarios y actualmente son los responsables de la mayoría de las hipotecas en este país.
- Fortalecerá nuestra asociación con agencias reguladoras financieras con el fin de garantizar la identificación de infracciones de las leyes de préstamos justos y la referencia de las mismas al Departamento de Justicia.
- Aumentará la coordinación con Fiscales Generales Estatales en lo que se refiere a posibles infracciones de las leyes de préstamos justos.
El acuerdo con Trustmark National Bank
Además del anuncio de hoy del lanzamiento de la Iniciativa, el Departamento de Justicia, la Fiscalía Federal para el Distrito Oeste de Tennessee, la Oficina para la Protección Financiera del Consumidor (CFPB, por sus siglas en inglés) y la Oficina del Contralor de la Moneda (OCC, por sus siglas en inglés) anunciaron un acuerdo para resolver alegatos de que Trustmark National Bank había discriminado en el ámbito crediticio al practicar la exclusión financiera contra barrios en Memphis, Tennessee cuyos residentes son principalmente negros e hispanos.
La orden de consentimiento propuesta de las partes se presentó hoy en combinación con una demanda ante el Tribunal Federal de Distrito para el Distrito Oeste de Tennessee. La demanda alega que Trustmark National Bank vulneró la ley de Vivienda Justa y la Ley de Igualdad de Oportunidades Crediticias, las cuales prohíbe que las instituciones financieras discriminen por motivos de raza, color de piel u origen nacional en la provisión de sus servicios de crédito hipotecario. Más aún, la demanda alega que Trustmark National Bank vulneró la ley de Protección Financiera del Consumidor, que prohíbe la oferta o provisión a un consumidor de productos o servicios financieros de una manera que no esté en conformidad con las leyes federales financieras destinadas a los consumidores.
En concreto, la demanda alega que, entre el 2014 y el 2018, Trustmark practicó exclusión financiera ilícita en Memphis al evitar barrios cuyos residentes son principalmente negros e hispanos, por motivos de la raza, el color de piel y el origen nacional de las personas que vivían en esos barrios o que pedían un préstamo para propiedades ubicadas en los mismos. Por otra parte, la demanda alega que las sucursales de Trustmark estaban concentradas en barrios de mayoría blanca, que los oficiales de crédito del banco no satisfacían las necesidades crediticias de barrios de mayoría negra o hispana, que los esfuerzos de extensión comunitaria y mercadeo de Trustmark esquivaban esos barrios y que los procedimientos y políticas internos de Trustmark de préstamos justos no eran suficientes como para garantizar que el banco brindara la igualdad de acceso al crédito a las comunidades de color.
El Departamento inició su investigación después de que uno de los reguladores de Trustmark, la OCC, refirió el asunto. Trustmark ha cooperado plenamente en esta investigación y resolvió los alegatos de forma amigable.
«Trustmark excluyó y discriminó, de manera intencional, a comunidades negras e hispanas», declaró Rohit Chopra, el director de la Oficina para la Protección Financiera del Consumidor. «El Gobierno federal luchará por eliminar prácticas empresariales racistas en el mercado, incluyendo aquellas provenientes de algoritmos discriminatorios».
«Para muchas familias estadounidenses, el ser propietario de una vivienda es el fundamento del éxito económico», comentó el Fiscal Federal Interino para el Distrito Oeste de Tennessee, Joseph C. Murphy Jr. «Las prácticas de préstamos justos que se requieren en virtud de las leyes federales, así como la aplicación de dichas leyes, garantizan un mejor futuro para todo estadounidense. Nuestra oficina cree que medidas de aplicación de la ley de esta naturaleza son primordiales para un sistema de préstamos justos que beneficia a todos y seguiremos dando prioridad a estos casos».
«Desde hace mucho tiempo, la OCC ha tenido una sólida asociación con la Sección de Vivienda y Cumplimiento de la Ley Civil de la División de Derechos Civiles del Departamento de Justicia: ha referido posibles infracciones de las leyes de préstamos justos y hemos compartido nuestros hallazgos extensos de los equipos examinadores, economistas y legales, tal y como hemos hecho en el caso de Trustmark», indicó el Contralor Interino de la Moneda, Michael J. Hsu. «El anuncio de hoy es importante porque representa el enfoque unificado y absoluto que cada una de nuestras agencias ha dedicado a la aplicación de la ley de Vivienda Justa y la ley de Igualdad de Oportunidades de Crédito. Nuestros esfuerzos colectivos son esenciales al abordaje de las prácticas crediticias discriminatorias que crean y refuerzan la inequidad racial en el sistema financiero».
Conforme la orden de consentimiento propuesto:
- Trustmark invertirá $3.85 millones en un fondo de préstamos subsidiados para incrementar las oportunidades crediticias para residentes actuales y futuros de barrios cuyos residentes son principalmente negros e hispanos en la zona de Memphis; dedicará al menos cuatro oficiales de crédito hipotecario o especialistas en préstamos comunitarios a estos barrios y abrirá una oficina de producción crediticia en un barrio de Memphis cuyos residentes son principalmente negros o hispanos.
- Trustmark dedicará $400,000 al desarrollo de asociaciones comunitarias para la prestación de servicios a residentes de barrios de Memphis que son principalmente negros e hispanos que mejorarán el acceso al crédito hipotecario residencial.
- Por otra parte, Trustmark dedicará al menos $200,000 por año a iniciativas de publicidad, proyección comunitaria, educación financiera del consumidor y reparación del crédito en Memphis y sus alrededores.
- Trustmark pagará a la OCC y la CFPB una sanción civil monetaria que asciende, en su totalidad, a $5 millones.
- Trustmark ya ha establecido un Comité de Supervisión de las Leyes de Préstamos Justos y ha designado un Gestor de Crédito Comunitario que supervisará estos esfuerzos y trabajará estrechamente con el liderazgo del banco.
En agosto del 2021, el Departamento anunció un acuerdo con Cadence Bank por motivos de exclusión financiera. Conforme al acuerdo, Cadence invertirá más de $5.5 millones para mejorar las oportunidades crediticias de residentes de barrios de Houston que son principalmente negros e hispanos.
Para informarnos de incidentes de discriminación en el ámbito crediticio, llame a la línea informativa del Departamento de Justicia para discriminación en la vivienda al 1-833-591-0291 o entregue un informe en línea.
Asunto(s):
Derechos Civiles
Componente(s):
División de Derechos Civiles
Sección de Vivienda y Cumplimiento de la Ley Civil
Fiscalía General
Fiscalía Federal
Duplin County Man Receives More Than 12 Years in Federal Prison for Methamphetamine Trafficking and Possession of Sawed-Off ShotgunsRead the Press Release
WILMINGTON, N.C. – Alexander Hawes, 36, of Duplin County, North Carolina, was sentenced yesterday to 145 months in prison for conspiracy to possess with intent to distribute and distribution of 50 grams or more of a substance containing methamphetamine, possession with intent distribute a quantity of methamphetamine, two counts of possession of a firearm in furtherance of a drug trafficking crime, and two counts of possession of a sawed-off shotgun.
According to court documents, evidence presented in court, and other documents, on July 17, 2020 and again on August 4, 2020 the Duplin County Sheriff’s Office made controlled purchases of methamphetamine from Hawes in Rose Hill. Hawes had a handgun during each of these deals.
On August 29, 2020, the Duplin County Narcotics Unit served a search warrant at Hawes’ residence in Rose Hill. Law enforcement recovered a fully automatic rifle with a high-capacity magazine, a small amount of methamphetamine, and a sawed-off shotgun. Law enforcement also found “buy money” from a controlled purchase that Duplin County had made from Hawes two days earlier.
The Duplin County Narcotics Unit working with the Drug Enforcement Administration arrested Hawes at his residence in Rose Hill on December 9, 2020. Hawes had a loaded handgun and rifle on his person. Law enforcement searched his residence and found another fully automatic weapon with a high-capacity magazine, 43 grams of methamphetamine, and another sawed-off shotgun.
During the course of the investigation, law enforcement was able to determine that Hawes was responsible for possessing with the intent to distribute and distributing almost a kilogram of methamphetamine.
This is part of operation “Fighting Jelly Fish” which is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, 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.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Bureau of Alcohol, Tobacco and Firearms, the Drug Enforcement Administration, and the Duplin County Sheriff’s Office investigated the case and Assistant U.S. Attorney Timothy Severo prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 21-CR-00048-M.
Drug supplier who sold deadly fentanyl sentenced to 5+ years in prisonRead the Press Release
Seattle – A prolific drug trafficker, who sold deadly fentanyl-tainted pills, was sentenced this week in U.S. District Court in Seattle to 66 months in prison and three years of supervised release. Raoul V. Normandia, Jr., 30, was arrested April 24, 2020, near his Federal Way, Washington, residence. At his sentencing hearing U.S. District Judge Robert S. Lasnik said Normandia, “was a drug dealer…. He was making a large amount of money selling drugs…. It was a pattern of criminal activity that he chose to do.”
“Fentanyl-tainted pills are flooding Western Washington and resulting in record high overdose rates and deaths,” said U.S. Attorney Nick Brown. “Fatal fentanyl overdoses are up 82% in the first six months of 2021 as compared to 2020. We must do all we can to stop the distribution of these pills. They are made to look like oxycodone but are far more powerful and deadly.”
The investigation in this case began April 18, 2020, when a Navy sailor was found dead in his workspace aboard a Navy ship. In his pocket were two counterfeit pills that were laced with fentanyl. The Naval Criminal Investigative Services (NCIS) were able to identify former Navy sailor Ivan Armenta, 21, as the sailor who provided the pills to the sailor who died. Armenta had distributed the pills to three other sailors as well: Two became ill and one was revived by Narcan. Armenta was sentenced to 4 years in prison last month.
The investigation into the source of the pills revealed Chase Friedrich, 29, had supplied the pills to Armenta. He was arrested April 21, 2020, at his Des Moines, Washington, apartment. A search of Friedrich’s apartment revealed cocaine, a handgun, and a bag of approximately 100 counterfeit pills. Friedrich pleaded guilty in May 2021, and today he was sentenced to 3 years in prison and 3 years of supervised release.
Investigators determined that Raoul Normandia had supplied the pills to Friedrich. Law enforcement arrested Normandia in his car a few blocks from his Federal Way residence. In his vehicle was cocaine. During a court‑authorized search of Normandia’s residence, law enforcement recovered cocaine, MDMA, firearms (including an assault rifle), ammunition, body armor, narcotics, and various signs of the drug trade, including scales, baggies, heat sealers, Moneygram receipts, and twenty cell phones.
Normandia pleaded guilty in April 2021 to conspiracy to distribute fentanyl, possession of MDMA and cocaine with intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime.
In asking for a 7-year prison sentence, prosecutors wrote to the court, “Counterfeit prescription pills containing fentanyl… pose a unique and substantial danger of overdose. The fact that these pills are manufactured to look like a Precocet increases the likelihood that they will be taken not only by those who intend to take fentanyl, but also by individuals who believe they are taking nothing more potent than an oxycodone. This danger is particularly acute in light of the fact that fentanyl cannot be detected by smell or taste, and someone cannot tell if there is fentanyl in a pill merely by looking at it.”
Judge Lasnik noted that it is the families of the sailor who died, and of the defendants, who suffer from the conduct. “There is so much tragedy in this case…. There’s four families that are rendered to their knees by these actions,” the Judge said. Judge Lasnik said he reduced Normandia’s sentence, in part, because Normandia has been in custody throughout the pandemic -- suffering with the illness and through long-term lockdowns in the Bureau of Prisons.
The case was investigated by NCIS and the Kitsap County Sheriff’s Office as a part of the West Sound Narcotics Enforcement Team (WestNET) and was prosecuted by Assistant United States Attorney Lyndsie Schmalz.
Doctor and Owner of Medical Practice Indicted for Health Care FraudRead the Press Release
TUCSON, Ariz. – On Wednesday, a federal grand jury returned a fifty-count indictment, charging Linh Cao Nguyen, M.D., 48, of Peoria, Arizona, with Health Care Fraud, False Statements Relating to a Health Care Matter, and Aggravated Identity Theft.
Dr. Nguyen ran a mobile multi-specialty medical practice that primarily treated patients in their homes and living facilities throughout Phoenix and Tucson, Arizona. The indictment alleges that for over a decade, Dr. Nguyen, through his practice, engaged in a health care fraud scheme by submitting false claims to health care insurance programs for medical services: (1) that identified a physician as the rendering provider when Dr. Nguyen knew that the service was not completed by a physician and did not qualify for reimbursement as a physician; (2) that were not medically necessary; (3) that were billed at a higher complexity level than the actual level of care provided; and (4) that were not performed as the only legitimate service rendered was a Covid vaccination. The indictment also alleges that Dr. Nguyen created false medical records to conceal and avoid detection of his fraudulent billing practices. During the timeframe of the indictment, Dr. Nguyen, through his medical practice, is alleged to have billed Medicare approximately $50 million dollars and received approximately $33 million dollars in Medicare funds.
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.
The United States Department of Health and Human Services (Office of Inspector General), the United States Defense Criminal Investigative Service (Department of Defense Inspector General) and the Federal Bureau of Investigation are investigating the case. The U.S. Attorney’s Office, District of Arizona, Tucson, is handling the prosecution.
CASE NUMBER: CR-21-2716-TUC-JCH (LCK)
RELEASE NUMBER: 2021-074_Nguyen# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Department of Justice Announces Initiative to Fight Housing Discrimination, a Practice Known as Redlining, in the Eastern District of PennsylvaniaRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced a partnership between the U.S. Attorney’s Office for the Eastern District of Pennsylvania and the Justice Department’s Civil Rights Division for the launch of DOJ’s new Combatting Redlining Initiative.
Redlining is an illegal practice in which lenders avoid providing services to individuals living in communities of color because of the race or national origin of the people who live in those communities. The new Initiative represents the Department’s most aggressive and coordinated enforcement effort to address redlining, which is prohibited by the Fair Housing Act and the Equal Credit Opportunity Act.
“Lending discrimination runs counter to fundamental promises of our economic system,” said Attorney General Merrick B. Garland. “When people are denied credit simply because of their race or national origin, their ability to share in our nation’s prosperity is all but eliminated. Today, we are committing ourselves to addressing modern-day redlining by making far more robust use of our fair lending authorities. We will spare no resource to ensure that federal fair lending laws are vigorously enforced and that financial institutions provide equal opportunity for every American to obtain credit.”
“The U.S. Attorney’s Office is proud to partner with the Attorney General and the Civil Rights Division on this important initiative,” said Acting U.S. Attorney Jennifer Arbittier Williams. “Homeownership is the American dream. Lending institutions that make decisions based on the color of a person’s skin, rather than their creditworthiness, violate the fundamental principles on which our Constitution is based. These entities are now on notice that they will be fully prosecuted by the Department of Justice.”
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.
Davenport Man Sentenced for Attempted Enticement of Minors and Traveling with Intent to Engage in Illicit Sexual ActivityRead the Press Release
ROCK ISLAND, Ill. – A Davenport, Iowa, man, Douglas Speer, 31, of West 49th Street, was sentenced to eleven years in federal prison, to be followed by fifteen years of supervised release, on October 20, 2021, for traveling with the intent to engage in illicit sexual activity and attempting to entice two underage girls to engage in sexual activity.
According to court documents, in November 2020, Speer arranged to pay for sex with individuals he believed to be two girls, ages fifteen and eleven. After traveling from Iowa to Illinois to meet with the intended victims, Speer was arrested by federal agents and local law enforcement officers.
Speer was subsequently charged in an indictment with two counts of attempted enticement of a minor and one count of travel with the intent to engage in illicit sexual activity. In June 2021, Speer pleaded guilty to two counts of attempted enticement of a minor and one count of traveling with the intent to engage in illicit sexual activity.
At Speer’s sentencing hearing, U.S. District Court Judge Sara Darrow stated that the applicable penalties, including the statutory minimum of ten years in prison, were severe but necessary given that such laws serve to protect the most vulnerable within the community from “predators” like Speer. The judge further commented on the need for a sentence such as this to deter others from attempting similar crimes.
The statutory penalty for each count of attempted enticement of a minor is a minimum of 10 years to life imprisonment. The penalty for travel with intent to engage in illicit sexual activity is up to 30 years in prison. Each count also carries a fine of up to $250,000.
This case was investigated as part of an operation by the Federal Bureau of Investigation, Springfield Office, with the assistance of the Rock Island Police Department, the Macomb Police Department, the Illinois State Police, the East Moline Police Department, the Galesburg Police Department, the Davenport Police Department, and the Knox County Sherriff’s Office. Assistant U.S. Attorneys Alyssa Raya and Ryan Bintz represented the government in the prosecution.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
DEA National Prescription Drug Take Back DayRead the Press Release
KNOXVILLE, Tenn. On Saturday, October 23, from 10 a.m. to 2 p.m., the U.S. Drug Enforcement Administration will provide the public the opportunity to prevent pill abuse and theft by ridding their homes of potentially dangerous expired, unused, and unwanted prescription drugs. Location information is available from the DEA, along with items that cannot be accepted. This service is free and anonymous, no questions asked.
This October’s event is DEA’s 21st nationwide event since its inception 11 years ago. Last spring, Americans turned in nearly 839,543 pounds of prescription drugs at nearly 5,060 sites operated by the DEA and almost 5,000 from its state and local law enforcement partners. DEA and its partners have collected nearly 6,770 tons of expired, unused, and unwanted prescription medications since the inception of the National Prescription Drug Take Back Initiative in 2010.
The DEA will now accept vaping devices and cartridges at any of its drop-off locations during National Prescription Drug Take Back Day. It is important to note that DEA cannot accept devices containing lithium-ion batteries. If batteries cannot be removed prior to drop-off, DEA encourages individuals to consult with stores that recycle lithium-ion batteries. Concerns have been raised across the United States over illnesses and deaths caused by vaping and the high youth vaping initiation rates. To support a healthy lifestyle and energetic population, especially among America’s youth, DEA is committed to doing all it can to help safely dispose of vaping devices and substances.
To keep everyone safe, collection sites will follow CDC COVID-19 guidelines and regulations.
The DEA’s “Take Back” day and “Get Smart About Drugs” initiatives address the vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse, and abuse. Rates of prescription drug abuse in the United States are alarmingly high, as are the number of accidental poisonings and overdoses because of these drugs. Synthetic opioids, such as illicit fentanyl, are the primary driver of the increase in overdose deaths. For information on DEA’s “Take Back” in Spanish click here, or for more information on the “Get Smart About Drugs” publication, click for English or Spanish.
In addition to DEA’s National Prescription Drug Take Back Day, there are many other ways to dispose of unwanted prescription drugs every day, including the 11,000 authorized collectors that are available all year long. For more information, visit DEA’s year-round collection site locator. Participating in the next DEA Take Back Day on Saturday, October 23, simply means cleaning out your medicine cabinet or anywhere you keep unused, unwanted, or expired medications and dropping them off at your nearest collection site. For more information about the disposal of prescription drugs or about the October 23rd Take Back day event, go to DEA Drug Take Back event or by calling 800-882-9539.
The FDA also provides information on how to properly dispose of prescription drugs. More information is available here: English or Spanish.
###Convicted Felon Indicted for Possessing Fentanyl, Heroin, and a Firearm in the Lower Ninth WardRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that on October 21, 2021, GEORGE JEFFERSON, age 45, a resident of New Orleans, has been charged in a four-count Indictment for possessing with intent to distribute 40 grams or more of fentanyl and a quantity of heroin. JEFFERSON, a convicted felon, is also charged with possessing a firearm in furtherance of drug trafficking and for being a felon in possession of a firearm.
For possession with intent to distribute fentanyl, JEFFERSON faces a minimum of five (5) years imprisonment up to a statutory maximum forty (40) years of imprisonment, a fine of up to $5,000,000, at least four (4) years of supervised release in violation of Title 21, United States Code, Sections 841(a)(1) and 841(B)(1)(B). For possession with intent to distribute heroin, JEFFERSON faces up to twenty (20) years imprisonment, a fine of up to $1,000,000, at least three (3) years of supervised release in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C). JEFFERSON also faces a mandatory minimum sentence of five (5) years of imprisonment, imposed consecutively to the charged drug offenses, for possessing a Glock Model 23, .40 caliber gun, in furtherance of dealing fentanyl and heroin, in violation of Title 18, United States Code Section 924(c). If convicted, JEFFERSON faces a $100 mandatory special assessment fee for each charge.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Evans reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the New Orleans Police Department and the FBI in investigating this matter. Assistant United States Attorney David Howard Sinkman is in charge of the prosecution.
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Connecticut Man Guilty of Sex-Trafficking During Miami SuperBowlRead the Press Release
Miami, Florida – A man who coerced two women and a girl into selling themselves for sex in Miami during the 2020 Superbowl was found guilty of commercial sex trafficking by a federal jury in Ft. Lauderdale this week.
During the eight-day trial, Assistant U.S. Attorneys Alejandra L. López and Brian Dobbins presented evidence that in January 2020, Edward Walker, 48, of New Haven, Connecticut, brought two adult women and a 17-year-old girl to Miami from Connecticut to engage in commercial sex acts during the SuperBowl. While in Miami, Walker emotionally, psychologically, and financially coerced the victims into soliciting customers and having sex with them in exchange for money, all of which Walker kept. Additional evidence showed that after the Superbowl in Miami, Walker planned to take the victims to Chicago, Illinois (during the NBA All-Star Game), New Orleans, Louisana (during Mardi Gras), Las Vegas, Nevada, and other places to further sexually exploit them.
The jury found Walker guilty of sex trafficking by force and coercion, sex trafficking of a minor and by force and coercion, and transporting a person for sexual activity. U.S. District Judge James I. Cohn will sentence Walker on January 6, 2022, in federal court in Ft. Lauderdale. He faces a sentence of up to life in prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorney’s Offices and the Criminal Divisions Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Juan Antonio Gonzalez, Acting U.S. Attorney for the Southern District of Florida; George L. Piro, Special Agent in Charge, FBI Miami; and Alfredo Ramirez, III, Director of Miami-Dade Police Department (MDPD), announced the guilty verdict.
This case was investigated by the FBI’s Child Exploitation and Human Trafficking Task Force, in partnership with MDPD’s Human Trafficking Squad, and the South Florida Human Trafficking Task Force. FBI New Haven; Homeland Security Investigations Miami; Department of Health and Human Services, Office of Inspector General, Miami Office; Miami Beach Police Department; and Miami-Dade State Attorney’s Office assisted.
To report suspected human trafficking or to obtain resources for victims, please call 1-888-373-7888; text “BeFree” (233733), or live chat at HumanTraffickingHotline.org. The toll-free phone, SMS text lines, and online chat function are available 24 hours a day, 7 days a week, 365 days a year. Help is available in English, Spanish, Creole, or in more than 200 additional languages. The National Hotline is not managed by law enforcement, immigration or an investigative agency. Correspondence with the National Hotline is confidential and you may request assistance or report a tip anonymously.
To learn more about the National Resource Hotline visit www.humantraffickinghotline.org. To learn more about the U.S. Department of Justice’s efforts to combat human trafficking visit www.justice.gov/humantrafficking.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case no. 20-cr-20087.
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Canton Man Pleads Guilty to Solicitation of an Obscene Visual Depiction of a MinorRead the Press Release
PEORIA, Ill. – A Canton, Illinois, man, Joseph M. Graham, 29, of the 500 block of Baxter Court, pleaded guilty on October 21, 2021, to the charge of soliciting an obscene visual depiction of a minor. Sentencing has been scheduled for February 24, 2022, at the federal courthouse in Peoria, Illinois.
In court today, before U.S. District Judge James Shadid, Graham admitted that he used an online application to request sexually explicit images of an individual whom he believed to be 8 years old.
During the hearing, the government stated that in December 2019 Graham initiated messages arranging to meet with individuals he believed to be the child and his father and, on January 8, 2020, traveled to a coffee shop on North Prospect Road, in Peoria, where he was taken into custody by federal agents.
Graham remains in the custody of the U.S. Marshals Service pending sentencing.
For the offense of solicitation of an obscene visual depiction of a minor, the statutory penalty is not less than five years and up to 20 years in prison; a fine of up to $250,000; and a term of supervised release of not less than five years and up to life.
The charges were investigated by the Federal Bureau of Investigation, Springfield Office. Assistant U.S. Attorney Ronald Hanna is representing the government in the prosecution.
The case was brought as part of Project Safe Childhood, a Department of Justice initiative led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), to marshal federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Armed New York Resident Sentenced on Drug Conspiracy Charge in VermontRead the Press Release
The United States Attorney’s Office for the District of Vermont announced that Mark Anthony Eusebio, 28, of New York, New York, was sentenced today in United States District Court in Burlington to 30 months of incarceration following his guilty plea to conspiring to distribute and possess with intent to distribute cocaine base. Chief District Judge Geoffrey Crawford also ordered that Eusebio be subject to three years of supervised release following his sentence of incarceration.
In September 2020, a federal grand jury in Burlington returned an indictment charging Eusebio with conspiring to distribute 28 grams or more of cocaine base and distributing 28 grams or more of cocaine base. In April 2021, the United States filed a plea agreement it had reached with Eusebio, allowing him to plead to possessing with the intent to distribute cocaine base, and Eusebio pleaded guilty to the drug offense on April 19, 2021. Eusebio faced up to 20 years of imprisonment for the crime to which he pleaded. Eusebio appeared before the Court for sentencing today, and the Court ordered that Eusebio remain released—subject to conditions of supervision—pending his self-surrender to the Bureau of Prisons for service of his 30-month sentence of imprisonment.
According to court records, Eusebio (who was known as “Slim” to drug customers) was involved in a conspiracy with others—including Kelvin Espiritusanto—to transport large amounts of cocaine into Vermont for further distribution. Eusebio and Espiritusanto used a Toyota Rav4 modified with a post-market locking “trap” compartment to transport the cocaine and the proceeds from its distribution between New York and Vermont. Eusebio frequently delivered the controlled substances personally, but he would often employ Espiritusanto as a runner in his place to bring the drugs to Vermont. Eusebio was arrested in Springfield, Massachusetts, on September 21, 2020, while driving the Toyota Rav4. At that time, he possessed approximately 75 grams of cocaine base (commonly known as “crack cocaine”), approximately 10 grams of heroin, and a loaded Ruger handgun. Espiritusanto is currently a fugitive.
Acting United States Attorney Jonathan A. Ophardt commended the collaborative investigative efforts of the Vermont State Police’s Vermont Drug Task Force and the Federal Bureau of Investigation and noted his appreciation for the important assistance of the Massachusetts State Police. “Firearm-possessing drug traffickers create a significant risk of violence in our communities while they peddle poison for profit. The United States Attorney’s Office, working with our federal, state, and local law enforcement partners, will continue to prioritize the investigation and prosecution of armed drug traffickers, like Mark Anthony Eusebio, to hold them accountable for their criminal conduct.”
Eusebio was represented by attorney Mark Kaplan, Esq. The prosecutor was Assistant United States Attorney Matthew Lasher.
Acting U.S. Attorney Williams and Police Commissioner Outlaw Host Town Hall to Discuss Collaborative Asian Community Safety InitiativeRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams and Philadelphia Police Commissioner Danielle Outlaw hosted a town hall meeting this week to discuss the Asian Community Safety Initiative, in partnership with the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; the Philadelphia Commission on Human Relations; and the Philadelphia Chinatown Development Corporation. The event was held in-person and virtually from the PCDC office in Center City, Philadelphia. The Executive Director of PCDC, John Chin, moderated the event.
Speakers at the meeting included Assistant United States Attorneys, FBI Agents, and ATF Agents who work together to investigate and prosecute at the federal level hate crimes and violent crimes directed at the Asian community. Representatives from the Philadelphia Police Department spoke about how the department works with federal law enforcement when investigations are pursued at the federal level, and officers of Asian descent introduced themselves and re-affirmed their commitment to serving the community of which they are a part. The audience was given examples of crimes that are prosecuted under local and federal statutes, information about how to report crimes to the appropriate authorities, and resources to get more information including contact information for the presenting agencies. Finally, a representative from PCHR discussed incidents which might not be criminal in nature, but are nevertheless upsetting to recipients and which may be addressed through services offered by the commission.
Following the presentations, speakers took questions from the audience (both virtual and in-person). Questions ranged from how to overcome language barriers, to how to ensure cultural competency, to how the Department could leverage future technologies to assist with crime reporting by the community.
“Our goal is to stop crimes before the occur, and tonight’s meeting is an important step toward achieving that goal,” said Acting U.S. Attorney Williams. “I want to thank the members of the community in attendance who have come here to engage with law enforcement and work together towards positive change and a safer city. It will require effort from everyone to achieve this goal.”
“Acts of violence and hate against our AAPI community members are entirely unacceptable, and our department remains committed to working with our law enforcement and community partners to address these serious concerns,” said Police Commissioner Danielle Outlaw. “Earlier this year, the PPD surveyed members of the Patrol and Detective Bureaus in order to identify Police Officers, Supervisors and Detectives that are interested in participating in a program of AAPI Community Outreach to be conducted jointly by the PPD and the U.S Attorney's Office. Numerous Police Officers, Sergeants, and investigators of AAPI descent are participating in this program that is being guided by our Deputy Commissioner of Investigations, Ben Naish. We look forward to this new partnership.”
“It’s crucial for us to listen to members of the community, to hear their fears and concerns about hate incidents and violent crime,” said Bradley S. Benavides, Acting Special Agent in Charge of the FBI’s Philadelphia Division. “We also want to answer people’s questions, and let them know how the FBI and our partners are working on their behalf. Everyone deserves to feel safe in their community.”
“ATF remains dedicated to investigating violent firearm-related crimes throughout the Philadelphia region,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “Together, with our law enforcement partners, we will continue to take measures to ensure the safety of our communities.”
“We have been working tirelessly since the beginning of the pandemic to address anti-Asian hate and bias, and we see this event as a critical step in educating our communities about the importance of reporting hate incidents. In addition, this event functions to build trust between law enforcement and the AAPI communities--trust that is crucial to build and maintain in order to keep our communities safe,” said Albert Randy Duque, Deputy Director, PCHR.
“The coming together of community and law enforcement is a critical tool to abating violence, especially against Asian American communities,” said John Chin, Executive Director, PCDC. “As a community-based organization, PCDC has been helping victims, leading advocacy, and championing equitable resources to overcome language and cultural barriers. This meeting was a step in the right direction, and we appreciate the Department of Justice and Philadelphia Police Department's commitment to addressing hate crimes and violence against Asian American communities.”
Video of the town hall meeting and slides from the presentation are available on PCDC’s website: https://chinatown-pcdc.org/asian-community-safety-initiative/.
"Operation 922" – The Federal Domestic Violence Initiative for Western Oklahoma is Getting ResultsRead the Press Release
OKLAHOMA CITY – As part of Domestic Violence Awareness Month, Acting U.S. Attorney Robert J. Troester highlights the success of "Operation 922," which specifically targets domestic violence abusers for federal prosecution in western Oklahoma. Operation 922 was initiated by the United States Attorney’s Office for the Western District of Oklahoma in March of 2018 as part of the Justice Department’s Project Safe Neighborhoods initiative. Through Operation 922, state and tribal police departments and District Attorneys throughout the Western District of Oklahoma have direct access to federal prosecutors who review domestic violence-related cases for those that warrant federal prosecution.
"We cannot have safe neighborhoods without first having safe homes," said Acting U.S. Attorney Troester. "By bringing the power of federal prosecution to hold domestic abusers accountable, particularly when that abuser is in possession of a firearm, we are saving the lives of the women and children who are victims of the abuse, and the police officers who respond to domestic calls. We are proud to partner with the police officers, prosecutors, and non-profit entities working each day to combat the epidemic of domestic violence in Oklahoma."
"Palomar is proud to partner with the U.S. Attorney’s Office on Operation 922," said Palomar CEO and Founder Kim Garrett. "This innovative and coordinated partnership says to survivors, 'you have the full weight of the OKC metro behind you.' For the offenders out there, our holistic approach means that you have the full weight of the OKC metro seeking to ensure you’re held accountable, and you don’t hurt anyone else."
"ATF is committed to fighting all violent crime in Oklahoma. At the forefront of violent crime is domestic violence. Firearms, violence, and the home are ingredients for tragedy. Together with our partners, ATF will do everything we can to stop the cycle of domestic abuse," said ATF Dallas Special Agent in Charge Jeffrey C. Boshek II.
Oklahoma City Police Chief Wade Gourley said, "The Oklahoma City Police Department is grateful for our partnership with the U.S. Attorney’s Office, that helps us hold domestic abusers accountable for their actions. We all have the same goal of combating domestic violence. Operation 922 helps us do just that by being able to federally prosecute those abusers."
The Problem
Domestic violence is not limited to specific geographic areas but exists in all neighborhoods (wealthy and poor) and in all communities (metropolitan and rural). When the most violent members of any community use firearms during acts of domestic violence, the odds that the abuse victims and responding officers could be injured or killed increase tremendously.
The Operation 922 Strategy
The Operation 922 strategy brings law enforcement and prosecutors together with common purpose and clear direction – uniting resources for the purpose of holding domestic abusers accountable. As part of this strategy, Operation 922 prioritizes prosecutions of federal firearms offenses that arise in domestic violence settings. In other words, when police officers respond to domestic violence calls, state and federal prosecutors work closely with investigating officers to determine whether firearms charges or other federal charges are applicable to the offenses committed. Common federal charges include illegal possession of a firearm or ammunition by a person (1) previously convicted of a felony offense, (2) previously convicted of a misdemeanor crime of domestic violence, or (3) subject to an active Victim Protective Order. Prosecutors have also charged domestic abusers with several other federal offenses applicable to persons prohibited from carrying firearms, including possession of a firearm by a person under indictment, drug user in possession of a firearm, and making false statements to federally licensed firearms dealers to buy a firearm.
Given the focus on the violent propensity of the abuser, federal prosecutors often seek the defendant’s pre-trial detention after arrest, in part to limit the abuser’s ability to return to the home and exert control and intimidation over victim(s) while trial is pending. The objective of Operation 922 is to stop repeated violence by domestic abusers through enforcement of federal law in domestic violence-derived cases. In addition, both federal and state prevention and re-entry programs can be utilized for lasting reductions in crime.
The Partnerships
Operation 922 is a collaboration of law enforcement and prosecutor partners that include the United States Attorney’s Office, Oklahoma County District Attorney’s Office, Bureau of Alcohol Tobacco Firearms and Explosives, U.S. Marshals Service, Oklahoma City Police Department, Midwest City Police Department, Del City Police Department, Oklahoma State Bureau of Investigation, Federal Bureau of Investigation, the Oklahoma County Sheriff’s Office, and other state, local, and tribal law enforcement agencies in the Western District of Oklahoma. Operation 922 continues to expand to other communities in western Oklahoma, and the U.S. Attorney’s Office conducts regular training sessions to inform local law enforcement on elements of federal offenses.
From the beginning, Operation 922 has maintained a pivotal partnership with Palomar, Oklahoma City’s Family Justice Center. Palomar brings together multi-disciplinary resources under one roof to meet the specific and multiple areas of need experienced by the victims of domestic abuse.
Recently, the Operation 922 collaboration has expanded to include the District Attorney’s Office for District 4 (Blaine, Canadian, Garfield, Grant, and Kingfisher Counties), Canadian County Sheriff’s Office, El Reno Police Department, Yukon Police Department, and Cardinal Point, the new Family Justice Center in El Reno.
The Success and Examples
Since March of 2018, Operation 922 has resulted in federal charges for 167 separate individuals, in domestic violence-derived cases, committed in 20 different counties in the Western District of Oklahoma. Of those, 153 have already been convicted or have pled guilty, with the remaining cases still pending. At this time, 122 defendants have been sentenced by federal judges to serve, on average, nearly 75 months in federal prison. Of the 167 defendants charged, 33% are known gang members. From these defendants, a total of 236 firearms and 3,566 rounds of ammunition have been seized.
The following press releases over the past three years are examples that demonstrate the violent conduct of the abusers and the breadth of Operation 922’s impact:
- "Operation 922" Results in Four Federal Indictments Related to Domestic Violence - https://www.justice.gov/usao-wdok/pr/operation-922-results-four-federal-indictments-related-domestic-violence (December 20, 2018)
- Jury Returns Carjacking Conviction / Carjacking Conviction Results in Forty Years in Prison - https://www.justice.gov/usao-wdok/pr/jury-returns-carjacking-conviction (September 2, 2018); https://www.justice.gov/usao-wdok/pr/carjacking-conviction-results-forty-years-prison (April 23, 2019)
- Four Defendants Sentenced to 188 Months in Federal Prison in Separate Domestic Violence Related Cases - https://www.justice.gov/usao-wdok/pr/operation-922 (May 31, 2019)
- Seiling Man Sentenced to Five Years for Domestic Violence in Indian Country - https://www.justice.gov/usao-wdok/pr/seiling-man-sentenced-five-years-domestic-violence-indian-country (September 20, 2019)
- Juries Return Convictions in Two Separate “Operation 922” Domestic-Violence Gun Trials - https://www.justice.gov/usao-wdok/pr/juries-return-convictions-two-separate-operation-922-domestic-violence-gun-trials (October 11, 2019)
- Firearm Violation Results in Prison Sentence of More Than Nine Years - https://www.justice.gov/usao-wdok/pr/firearm-violation-results-prison-sentence-more-nine-years-0 (December 9, 2019)
- Domestic Altercation Involving Firearm Leads to Ten-Year Sentence - https://www.justice.gov/usao-wdok/pr/domestic-altercation-involving-firearm-leads-ten-year-sentence (December 18, 2019)
- Oklahoma City Man to Serve 108 Months for Possessing a Firearm After a Prior Felony Conviction - https://www.justice.gov/usao-wdok/pr/oklahoma-city-man-serve-108-months-possessing-firearm-after-prior-felony-conviction (March 18, 2020)
- Convicted Felon Sentenced to a Decade in Prison for Firearm Possession Discovered Following a Domestic Violence Call - https://www.justice.gov/usao-wdok/pr/convicted-felon-sentenced-decade-prison-firearm-possession-discovered-following (April 30, 2020)
- Felon Sentenced to More Than a Decade in Federal Prison for Dealing Heroin While Discharging a Firearm - https://www.justice.gov/usao-wdok/pr/felon-sentenced-more-decade-federal-prison-dealing-heroin-while-discharging-firearm (July 23, 2020)
- Lawton Man Sentenced to Serve a Decade in Federal Prison for Shooting During Road Rage Incident - https://www.justice.gov/usao-wdok/pr/lawton-man-sentenced-serve-decade-federal-prison-shooting-during-road-rage-incident (October 30, 2020)
- Oklahoma City Attorney Sentenced to Serve 24 Months in Federal Prison for Possessing a Firearm While Subject to Victim Protective Order - https://www.justice.gov/usao-wdok/pr/oklahoma-city-attorney-sentenced-serve-24-months-federal-prison-possessing-firearm (March 23, 2021)
- Oklahoma City Man Sentenced to Serve 36 Months in Federal Prison for Possessing a Firearm While Using Illegal Substance - https://www.justice.gov/usao-wdok/pr/oklahoma-city-man-sentenced-serve-36-months-federal-prison-possessing-firearm-while (April 2, 2021)
- Five Additional Defendants Charged as Part of “Operation 922” - https://www.justice.gov/usao-wdok/pr/third-anniversary-operation-922-sees-149-defendants-charged-federal-crimes-domestic (April 9, 2021)
- Federal Jury Convicts Oklahoma City Man for Possession of Ammunition and Witness Tampering - https://www.justice.gov/usao-wdok/pr/federal-jury-convicts-oklahoma-city-man-possession-ammunition-and-witness-tampering (May 4, 2021)
- Shawnee Man Sentenced to Serve 78 Months in Federal Prison for Illegal Possession of Ammunition After Being Convicted of Felonies - https://www.justice.gov/usao-wdok/pr/shawnee-man-sentenced-serve-78-months-federal-prison-illegal-possession-ammunition (May 19, 2021)
- Oklahoma City Man Sentenced to Serve Ten Years in Federal Prison for Illegal Possession of a Firearm After Being Convicted of Felonies - https://www.justice.gov/usao-wdok/pr/oklahoma-city-man-sentenced-serve-ten-years-federal-prison-illegal-possession-firearm (May 27, 2021)
- Oklahoma City Man Sentenced to Serve More Than Six Years in Federal Prison for Illegal Possession of a Firearm - https://www.justice.gov/usao-wdok/pr/oklahoma-city-man-sentenced-serve-more-six-years-federal-prison-illegal-possession (June 30, 2021)
- Wellston Man Pleads Guilty to Lying on a Federal ATF Record to Purchase a Firearm from Licensed Gun Dealer -https://www.justice.gov/usao-wdok/pr/wellston-man-pleads-guilty-lying-federal-atf-record-purchase-firearm-licensed-gun (July 8, 2021)
- Convicted Felon Sentenced to Serve Twelve Years in Federal Prison for Drug Dealing and Firearm Possession - https://www.justice.gov/usao-wdok/pr/convicted-felon-sentenced-serve-twelve-years-federal-prison-drug-dealing-and-firearm (July 17, 2021)
- Former Collegiate Wrestler Sentenced to Serve 36 Months in Federal Prison for Firearm Offense - https://www.justice.gov/usao-wdok/pr/former-collegiate-wrestler-sentenced-serve-36-months-federal-prison-firearm-offense (July 27, 2021)
- Federal Jury Convicts Oklahoma City Man of Illegal Possession of Firearm after Previous Domestic Abuse Convictions - https://www.justice.gov/usao-wdok/pr/federal-jury-convicts-oklahoma-city-man-illegal-possession-firearm-after-previous (August 13, 2021)
- Domestic Abuse Call Results in Six-Year Prison Sentence for Oklahoma City Man Found in Illegal Possession of Ammunition After Previous Felony Convictions - https://www.justice.gov/usao-wdok/pr/domestic-abuse-call-results-six-year-prison-sentence-oklahoma-city-man-found-illegal (August 18, 2021)
- Domestic Disturbance Call Results in Oklahoma City Man Being Sentenced to Serve More Than 15 Years in Federal Prison for Illegal Possession of Firearms - https://www.justice.gov/usao-wdok/pr/domestic-disturbance-call-results-oklahoma-city-man-being-sentenced-serve-more-15-years (September 2, 2021)
For more information about Operation 922, please contact the U.S. Attorney’s Office at (405) 553-8999.
21 October 2021
Woodland Man Sentenced to 15 Years in Federal Prison for Firearms and Drug OffensesRead the Press Release
SACRAMENTO, Calif. — Israel Covarrubias, 29, of Woodland, was sentenced today by U.S. District Judge Troy L. Nunley to 15 years in prison for conspiracy to distribute controlled substances and carrying a firearm during and in furtherance of a drug trafficking crime, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, in 2017, Covarrubias and others sold methamphetamine to a confidential informant working for law enforcement. In 2018, law enforcement officers executed a search warrant at Covarrubias’s residence in Woodland. Covarrubias fled out the back door of the residence with a loaded Glock pistol and a pound of cocaine as law enforcement officers were entering the front door of the residence.
This case was the product of an investigation by the Federal Bureau of Investigation, the Yolo County District Attorney’s Office, the Woodland Police Department, the California Department of Corrections and Rehabilitation, and the California Highway Patrol. Assistant U.S. Attorney Justin Lee prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
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.
Undocumented Individual Pleads Guilty to Filing Fraudulent Claims for Close to $1 Million in Unemployment Insurance BenefitsRead the Press Release
LAS VEGAS, Nev. – An undocumented individual pleaded guilty today to conspiracy to use over 100 victims’ identities (without their consent) to unlawfully submit fraudulent unemployment insurance benefits claims, totaling at least $934,129.
According to court documents and admissions made in court, from March 2020 to late October 2020, Alan Ray, 33, conspired with others to submit fraudulent unemployment insurance claims with the Nevada Department of Employment, Training, and Rehabilitation, California Employment Development Department, and other state workforce agencies. As part of the fraudulent scheme, Ray had the state workforce agencies mail debit cards — not in his name — containing unemployment benefits to addresses he had access to. In total, more than $934,129 in unemployment benefits was approved by the state workforce agencies, and at least $698,655 was withdrawn by Ray and his co-conspirators. The fraud was discovered when Ray attempted to ship fraudulently-obtained debit cards from Las Vegas to his residence in Houston, Texas.
Ray pleaded guilty to one count of conspiracy to possess counterfeit and unauthorized access devices. U.S. District Judge James C. Mahan scheduled sentencing for February 4, 2022. Ray faces a statutory maximum penalty of five years in prison and a $250,000 fine.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI made the announcement.
This case was investigated by the FBI with assistance from the U.S. Department of Labor Office of Inspector General (DOL-OIG), Los Angeles Region. Assistant U.S. Attorney Jim Fang is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Ulster County Man Pleads Guilty to Distributing FentanylRead the Press Release
ALBANY, NEW YORK – Timothy Schleede, age 30, of Lake Katrine, New York, pled guilty today to distributing fentanyl in Ulster County.
The announcement was made by United States Attorney Carla B. Freedman; Ray Donovan, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), New York Division; and Ulster County Sheriff Juan Figueroa, whose office leads the Ulster Regional Gang Enforcement Narcotics Team (URGENT).
Schleede pled guilty to one count of distribution of a controlled substance and one count of possession with intent to distribute a controlled substance.
As part of his plea, Schleede admitted that on August 26, 2020, he distributed a fentanyl mixture in glassine envelopes to another person in a mall parking lot in Ulster, New York. Schleede was arrested later the same day after selling glassine envelopes containing the same fentanyl mixture in a hotel parking lot in Ulster. Search warrants executed on Schleede’s hotel room and storage locker recovered approximately 8,000 additional glassine envelopes, which contained fentanyl and heroin.
As a result of his convictions, Schleede faces at least 5 years and up to 40 years in prison, when he is sentenced by United States District Judge Mae A. D’Agostino on February 28, 2022. A defendant’s sentence is imposed by a judge based on the particular statutes the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by URGENT and the DEA, and is being prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
U.S. Attorney Will Thompson Encourages West Virginians to Participate in DEA's National Prescription Drug Take Back DayRead the Press Release
Over 80 Collection Sites Located Throughout West Virginia
Available from 10:00 a.m. to 2:00 p.m. on Saturday, October 23rd
CHARLESTON, W.Va. – United States Attorney Will Thompson encourages West Virginians to rid their homes of unneeded medications during DEA’s National Prescription Drug Take Back Day this Saturday, October 23, 2021 from 10:00 a.m. to 2:00 p.m. The national event offers free and anonymous disposal of unused and unwanted medications that are susceptible to diversion.
According to a report published by the Substance Abuse and Mental Health Services Administration (SAMHSA), a majority of people who misused a prescription medication obtained the medicine from a family member or friend. The Centers for Disease Control and Prevention reported that last year, more than 93,000 people died of drug overdoses in the United States, marking the largest number of drug-related deaths ever recorded in a year. Opioid-related deaths accounted for 75 percent of all overdose deaths in 2020.
For more than a decade, DEA’s National Prescription Drug Take Back Day has helped Americans easily rid their homes of unneeded medications—those that are old, unwanted, or no longer needed—that too often become a gateway to addiction. Working in close partnership with local law enforcement, Take Back Day has removed more than 7,000 tons of medication from circulation since its inception. These efforts are directly in line with DEA’s priority to combat the rise of overdoses plaguing the United States.
“The United States is in the midst of an opioid epidemic—drug overdoses are up thirty percent over the last year alone and taking more than 250 lives every day,” stated DEA Administrator Anne Milgram. “The majority of opioid addictions in America start with prescription pills found in medicine cabinets at home. What’s worse, criminal drug networks are exploiting the opioid crisis by making and falsely marketing deadly, fake pills as legitimate prescriptions, which are now flooding U.S. communities. One thing is clear: prevention starts at home. I urge Americans to do their part to prevent prescription pill misuse: simply take your unneeded medications to a local collection site. It’s simple, free, anonymous, and it can save a life.”
“A record number of West Virginians tragically lost their lives to drug overdose last year,” said United States Attorney Will Thompson. “I urge all West Virginians within the Southern District to clean out their medicine cabinets and drop off unnecessary, unused or expired medications at a nearby collection site this Saturday. Those participating in National Prescription Drug Take Back Day will be helping to prevent prescription medications from being diverted and abused. I thank DEA for organizing this life-saving biannual event.”
“With more Americans dying from drug overdoses than ever before, DEA’s Drug Take-Back Day is one way that folks can help make their communities safer, simply by disposing of their unneeded or expired medications,” said Special Agent in Charge Todd Scott, who heads the U.S. Drug Enforcement Administration’s Louisville Division. “We’re providing a safe and convenient way to help keep potentially harmful medications out of the wrong hands.”
DEA’s National Prescription Drug Take Back Day is more important than ever before. Last month, DEA issued a Public Safety Alert and launched the One Pill Can Kill public awareness campaign to warn Americans of a surge in deadly, fake prescription pills driven by drug traffickers seeking to exploit the U.S. opioid epidemic and prescription pill misuse. Criminal drug networks are shipping chemicals from China to Mexico where they are converted to dangerous substances like fentanyl and methamphetamine and then pressed into pills. The end result—deadly, fake prescription pills—are what these criminal drug networks make and market to prey on Americans for profit. These fake, deadly pills are widely available and deadlier than ever. Fake pills are designed to appear nearly identical to legitimate prescriptions such as Oxycontin®, Percocet®, Vicodin®, Adderall®, Xanax® and other medicines. Criminal drug networks are selling these pills through social media, e-commerce, the dark web and existing distribution networks.
Along with the alert came a warning that the only safe medications are ones prescribed by a trusted medical professional and dispensed by a licensed pharmacist. Any pills that do not meet this standard are unsafe and potentially deadly. DEA’s National Prescription Drug Take Back Day reflects DEA’s commitment to Americans’ safety and health, encouraging the public to remove unneeded medications from their homes as a measure of preventing medication misuse and opioid addiction from ever starting.
On Saturday, Oct. 23, 2021, DEA and its partners will collect tablets, capsules, patches, and other solid forms of prescription drugs. Liquids (including intravenous solutions), syringes and other sharps, and illicit drugs will not be accepted. DEA will also continue to accept vaping devices and cartridges provided lithium batteries are removed.
A location finder and partner toolbox are available at www.DEATakeBack.com for easy reference to nearby collection sites. Beyond DEA’s Take Back Day, there are also opportunities to regularly and safely dispose of unneeded medications at more than 13,000 pharmacies, hospitals, police departments, and businesses working to help clean out medicine cabinets throughout the year.
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.
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Two Southwestern PA Men Charged with Defrauding HUD ProgramRead the Press Release
PITTSBURGH - Two southwestern Pennsylvania residents have been indicted by a federal grand jury in Pittsburgh, on conspiracy and fraud charges, Acting United States Attorney Stephen R. Kaufman announced today.
The four-count Indictment, returned on September 21, named Richard Sunseri, 36, of Pittsburgh, PA, and Matthew Durbin, 41, of McMurray, PA as the defendants.
According to the Indictment, from in and around April 2017 until in and around December 2017, Sunseri and Durbin knowingly and willfully conspired to defraud the Department of Housing and Urban Development (HUD) and falsified statements by bidding on and purchasing property as intended homeowners, only to renovate and the sell the property for profit and splitting the commissions.
More specifically, the Department of Housing and Urban Development’s Single Family Property Disposition Program allows individuals to purchase a home from HUD after a Federal Housing Administration loan forecloses. The program is designed to encourage ownership by families who intend to reside in the homes as owner/occupants by allowing those families to bid on the foreclosed properties before the process is opened up to real estate investors who merely intend to profit, short-term, by “flipping” the houses. Here, as alleged, Sunseri and Durbin, in an effort to jump the line ahead of other real estate investors, falsely certified on bidding forms that they intended to occupy the homes as owner/occupants, when, in fact, they intended to flip the homes for profit. This unlawful abuse of the Single Family Property Disposition program has two effects that frustrate the program’s purpose: first, it can allow real estate investors to potentially outbid families who otherwise would purchase the home and reside in the community and, second, it allows real estate investors to jump the line and bid on foreclosed homes before other investors are eligible.
The law provides for a term of imprisonment of not more than five years in prison, a fine not greater than $250,000. or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Benjamin J. Risacher is prosecuting this case on behalf of the government.
The Department of Housing and Urban Development-Office of the Inspector General conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Charged with Defrauding HUD ProgramRead the Press Release
PITTSBURGH- Two residents of Upper St. Clair, PA, have been indicted by a federal grand jury in Pittsburgh, on conspiracy and fraud charges, Acting United States Attorney Stephen R. Kaufman announced today.
The three-count Indictment, returned on September 21, named J. Reed Pirain, 45, and Renee Vasilko, 48, as the defendants.
According to the Indictment, from in and around February 2018, until in and around March 2019, Pirain and Vasilko knowingly and willfully conspired to defraud the Department of Housing and Urban Development and falsified statements by bidding on and purchasing property as intended homeowners, only to renovate and the sell the property for profit.
More specifically, the Department of Housing and Urban Development’s Single Family Property Disposition Program allows individuals to purchase a home from HUD after a Federal Housing Administration loan forecloses. The program is designed to encourage ownership by families who intend to reside in the homes as owner/occupants by allowing those families to bid on the foreclosed properties before the process is opened up to real estate investors who merely intend to profit, short-term, by “flipping” the houses. Here, as alleged, Pirain and Vasilko, in an effort to jump the line ahead of other real estate investors, falsely certified on bidding forms that Vasilko intended to occupy the home as an owner/occupant, when, in fact, Pirain and Vasilko intended to flip the home for profit. This unlawful abuse of the Single Family Property Disposition program has two effects that frustrate the program’s purpose: first, it can allow real estate investors to potentially outbid families who otherwise would purchase the home and reside in the community and, second, it allows real estate investors to jump the line and bid on foreclosed homes before other investors are eligible.
The law provides for a term of imprisonment of not more than five years in prison, a fine not greater than $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Benjamin J. Risacher is prosecuting this case on behalf of the government.
The Department of Housing and Urban Development-Office of the Inspector General conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Tribal Member Sentenced to Prison for Drug ConspiracyRead the Press Release
Jackson, Miss. – A member of the Mississippi Band of Choctaw Indians was sentenced today to 33 months in prison for his role in a conspiracy to distribute hydrocodone on the Choctaw Indian Reservation, announced Acting U.S. Attorney Darren J. LaMarca and Special Agent in Charge Brad Byerley of the Drug Enforcement Administration.
According to court documents, Antoniel Thomas, Sr., 49, of Choctaw, participated in a conspiracy to distribute hydrocodone in the Pearl River Community of the Choctaw Indian Reservation.
A federal grand jury indicted Thomas in August of 2020 and he pled guilty on March 4, 2021, to conspiracy to distribute hydrocodone. Thomas admitted to buying and selling hydrocodone on the Choctaw Indian Reservation.
Hon. Daniel P. Jordan, III., Chief United States District Judge, sentenced Thomas to a prison term of 33 months, plus a fine of $1,500.00, to be followed by a term of 3 years on supervised release following release from prison.
The case was investigated by the Choctaw Police Department of the Mississippi Band of Choctaw Indians, the Drug Enforcement Administration, and the Bureau of Indian Affairs.
The case was prosecuted by Assistant United States Attorney Kevin J. Payne.
Toledo Investment Adviser Pleads Guilty to FraudRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that James Simpson, 80, of Sylvania, Ohio, pleaded guilty on Wednesday, October 20, 2021, to investment adviser fraud.
According to court documents, Simpson, a former investment adviser in the Toledo area, admitted to defrauding clients out of more than $400,000 through a fictitious investment opportunity scheme. Beginning in 2020, Simpson interacted with numerous contacts and clients, claiming to have “access to special investment opportunities” at various interest rates and durations. Court records state that at least eight of these clients wrote Simpson a check to purchase investments totaling more than $400,000.
Court documents state that Simpson did not invest this money; rather, he deposited the checks and used the funds for his own personal benefit. In order to deceive investors and continue his scheme, Simpson used investor funds to pay other investors and make it appear that he did, in fact, invest the money.
Simpson is scheduled to be sentenced on February 2, 2022.
This investigation was conducted by the Federal Bureau of Investigation, Toledo Resident Agency. This case is being prosecuted by Assistant U.S. Attorney Michael Freeman.
Three men charged following seizure of over 221 kilograms of methamphetamineRead the Press Release
ATLANTA - Jaime Cruz Duarte, Rito Armando Torres Gutierrez, and Antonio Penaloza Torres have been charged with federal offenses including conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime.
“The trafficking and production of methamphetamine - particularly in such a great quantity – threatens our community,” said Acting U.S. Attorney Kurt R. Erskine. “We and our federal, state and local law enforcement partners are working tirelessly to combat that threat and keep these dangerous drugs and the crime associated with them from ruining lives.”
“This seizure and the charges these methamphetamine dealers now face exemplifies the clear and present danger that poisonous drugs like ‘meth’ pose to our communities,” said the Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “Because of the collective efforts between DEA and its law enforcement partners, these drugs are now off the streets and these defendants are facing prosecution.”
“The dangerousness of this type of methamphetamine production and distribution cannot be overstated,” said Dan R. Salter, Executive Director, Atlanta-Carolinas High Intensity Drug Trafficking Area (HIDTA). “The federal and local law enforcement officers that make up this task force are dedicated to stopping that danger and keeping this community safe from the criminal organizations that are involved in spreading this poison.”
According to Acting U.S. Attorney Erskine, the indictment, and other information presented in court: law enforcement officers first became aware of these defendants when Atlanta-Carolinas High Intensity Drug Trafficking Area (HIDTA) DEA Agents and Task Force Officers arranged a controlled purchase of methamphetamine from a suspected drug broker.
On September 30, 2021, the broker directed an undercover officer posing as a drug buyer to an address in Ellenwood Georgia, where the undercover officer encountered Jaime Cruz Duarte. Duarte provided the officer with approximately one kilogram of methamphetamine. He was then observed returning to a nearby residence.
Shortly thereafter, Rito Armando Torres Gutierrez and Antonio Penaloza Torres were observed leaving the same residence. After further investigation the same day, investigators obtained and executed a search warrant for the residence.
Upon searching the residence, investigators discovered a methamphetamine conversion lab, and seized over 221 kilograms of methamphetamine in various stages of production throughout the house. Agents also seized a handgun from the residence. Evidence obtained from the house indicates that the defendants lived at the residence and were allegedly involved in the production and distribution of large amounts of methamphetamine and the transfer of money obtained through methamphetamine distribution to other members of the conspiracy in other locations including California and Mexico.
Jaime Cruz Duarte, 34, Rito Armando Torres Gutierrez, 22, and Antonio Penaloza Torres, 38, of Ellenwood, Georgia, were indicted on October 19, 2021. All three defendants have been federally detained pending trial. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Drug Enforcement Administration and the Atlanta-Carolinas High Intensity Drug Trafficking Area (HIDTA) Task Force.
Special Assistant U.S. Attorney Zachary S. Howard is prosecuting the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
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.
Three Defendants Sentenced for Federal Drug and Firearms CrimesRead the Press Release
LAFAYETTE, La. - Acting United States Attorney Alexander C. Van Hook announced that United States District Judge James D. Cain, Jr. sentenced three defendants to time in federal prison for federal crimes involving drug trafficking and illegal possession of firearms.
Albert Williams, 31, of Beaumont, Texas, was sentenced to 46 months in prison, followed by 3 years of supervised release, for possession with intent to distribute cocaine. On April 30, 2019 Mega Bus Tours contacted the Calcasieu Parish Sheriff’s Office in reference to a bomb scare/threat at Mile Marker 26 on Interstate 10. Law enforcement and fire department personnel arrived on the scene and were standing near the bus as the passengers exited. Williams was a passenger on the bus and when he saw law enforcement officers approaching him, fled the scene on foot carrying a bag. Deputies pursued Williams and saw him place a black pair of sweatpants into a drainage ditch. Williams was apprehended and law enforcement officers located the pants in the ditch. The pants contained a Ziploc bag with a compressed brick of suspected cocaine. The Southwest Louisiana Criminalistics Laboratory in Lake Charles tested the substance and determined that it was in fact cocaine with a weight of 1.006 kilograms.
The Department of Homeland Security, Bureau of Immigration and Customs Enforcement, the Calcasieu Parish Sheriff’s Office and Louisiana State Police investigated the case. Assistant U.S. Attorney Daniel J. McCoy prosecuted the case.
Byron Lamar Jackson, 31, of Lake Charles, Louisiana, was sentenced to 51 months in prison, followed by 3 years of supervised release, for possession of a firearm by a convicted felon. On January 2, 2020, Lake Charles Police Department officers were dispatched to the intersection of Church and Grace Streets in reference to an individual possessing a firearm. Officers arrived at the scene and after speaking with witnesses, were given consent to search a nearby residence to search for the firearm. While searching the residence, law enforcement officers located a pistol inside a duffle bag used by Jackson. Jackson admitted to officers that he did in fact possess the firearm. As an individual having previously been convicted of a felony crime, Jackson knew that he was prohibited from possessing the firearm. His prior felony convictions are for possession of controlled substances (2008 and 2015); and illegal use of weapons or danger dangerous instrumentalities (2015 and 2018).
The ATF, Lake Charles Police Department and Calcasieu Parish Sheriff’s Office investigated the case. Assistant U.S. Attorney Daniel J. Vermaelen prosecuted the case.
David O’Neil a/k/a “Monster,” 41, of Leesville, Louisiana, was sentenced to 84 months in prison, followed by 4 years of supervised release. On June 29, 2021, O’Neil pleaded guilty to a Bill of Information charging him with possession of a firearm by a convicted felon and possession with intent to distribute methamphetamine. Investigators with the Vernon Parish Sheriff’s Office executed a search warrant at O’Neil’s residence on January 4, 2019 and during their search, discovered a pistol in the bedroom where O’Neil slept. In addition, law enforcement officers found plastic bags containing suspected methamphetamine. The substance was analyzed by the crime lab and confirmed it to be methamphetamine. O’Neil has prior felony convictions for possession with intent to distribute controlled substances and possession of controlled substances in Vernon Parish (2018) and as such is prohibited from possessing a firearm or ammunition.
The ATF and Vernon Parish Sheriff’s Office investigated the case. Assistant U.S. Attorney Daniel J. Vermaelen prosecuted the case.
The cases involving Byron Lamar Jackson and David O’Neil are 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. PSN is 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. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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Theft of FBI Vehicle Sends Lafayette Man to Federal PrisonRead the Press Release
LAFAYETTE, La. - Acting United States Attorney Alexander C. Van Hook announced that Timothy Brian King, 34, of Lafayette, Louisiana, was sentenced today by United States District Judge James D. Cain, Jr. to 24 months in prison, followed by 3 years of supervised release, for theft of government property.
On Monday, February 22, 2021 at approximately 3:00 a.m., a 2010 Dodge Charger, a vehicle purchased for and belonging to the Federal Bureau of Investigation (FBI), was stolen from the FBI’s Lafayette Resident Agency parking lot located in Lafayette, Louisiana. The FBI began an investigation into the theft and reviewed video surveillance from the morning of February 22, 2021. The video surveillance showed a white vehicle enter the parking lot and park next to the FBI vehicle. Shortly after arriving, two unidentified persons can be seen exiting the white vehicle and squatting near the driver’s side door of the FBI vehicle. A short time passes before both vehicles are seen leaving the area.
During the investigation, two FBI employees recalled that they had observed two unknown males looking at the FBI vehicle in the parking lot the Friday before the theft of the vehicle occurred. The unknown males were seen exiting the parking lot in a dark-colored SUV with no visible plates. Law enforcement agents learned that the suspect vehicle had been reported stolen and was found in the possession of King’s girlfriend. The girlfriend told officers that her boyfriend, Timothy King, had loaned her the vehicle. Inside the suspect vehicle, agents found a laptop belonging to FBI and registration for the stolen FBI vehicle.
Law enforcement agents further learned from witnesses that King had admitted to stealing the FBI vehicle. A search warrant was executed at King’s residence and agents found an FBI communications radio that had been previously installed in the stolen FBI vehicle. The stolen vehicle was later located on Johnston Street in Lafayette. King was arrested on March 5, 2021 and confessed to stealing the FBI vehicle.
The FBI, Lafayette Police Department and Duson Police Department investigated the case. Assistant U.S. Attorney Jamilla A. Bynog prosecuted the case.
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Texas Man Sentenced for Sexually Exploiting Indiana Child Through InstagramRead the Press Release
INDIANAPOLIS – A Texas man was sentenced to over 23 years in prison for sexual exploitation of a child by utilizing the social media platform Instagram to deceive and entice an Indiana teenager to send sexually explicit photos and videos of herself to him.
In December 2018, Marcus Pettus, 37, from Texas and posing a 15-year-old boy, began following the minor victim on Instagram. He soon began sending direct messages to the victim, including purported photos of himself, which appeared to be “selfie” photos of a teenage boy. The victim told Pettus she was 14 years old and in 8th grade. Eventually, Pettus enticed the victim to be his “girlfriend.”
Pettus then began directing the victim to send him sexually explicit photos and videos of herself. Pettus was particular in his demands, instructing the victim how to dress, how to wear her hair, and whether to wear makeup. Pettus also sent the victim images of nude women posed in various positions and directed that the minor send images of herself posed in the same way.
He also enticed the victim to send photos and videos of the victim engaging in sex acts, as well as engaging in acts of self-harm, such as choking and gagging. When the victim protested, Pettus threatened that he would harm himself, and manipulated the victim into sending more sexually explicit material. Pettus was arrested after the minor victim and her parents reported the incident to law enforcement.
“This case represents any parent’s worst nightmare. The lengthy prison sentence should send a message that those who seek to prey on children—particularly those who hide behind the anonymity of the internet—will be caught and held accountable to the fullest extent of the law,” said Acting United States Attorney John E. Childress. “Protecting our youth from cyber criminals and sexual predators will always remain a top priority of this office.”
“HSI is dedicated to protecting our most vulnerable population against sexual predators,” said R. Sean Fitzgerald, acting special agent in charge, HSI Chicago. “This sentence sends an important message that we will not allow any crime against children to go unpunished and we will continue to work with our law enforcement and prosecuting partners to hold predators accountable for their actions.”
“The Hamilton County Metro Child Exploitation Task Force is thankful to our federal partners for allowing us to purse those that harm our children, regardless of where they reside,” said Fishers Police Detective Lieutenant David Flynn. “We will continue to work with agencies that help us best protect our children and keep our communities safe. With Mr. Pettus in prison, we have one less predator endangering our youth.”
This case was investigated by the U.S. Department of Homeland Security Investigations, and the Hamilton County Metro Child Exploitation Task Force.
Assistant United States Attorney MaryAnn T. Mindrum who prosecuted the case, said that Pettus will also serve ten years of supervised release following his 281-month prison term and must pay $9,000 in restitution to the minor victim.
In fiscal year 2019, when this case was prosecuted, the U.S. Attorney’s Office for the Southern District of Indiana prosecuted the second most cases involving sexual exploitation of a child in the country.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
Suburban Chicago Woman Guilty of Insider TradingRead the Press Release
CHICAGO — A suburban Chicago woman admitted in federal court today that she used insider information obtained from her husband to purchase shares of a company ahead of its acquisition by the husband’s employer.
DENISE GREVAS, 60, of Evanston, pleaded guilty to one count of securities fraud. The charge is punishable by up to 20 years in federal prison. U.S. District Judge Harry D. Leinenweber set sentencing for Feb. 23, 2022.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The U.S. Securities and Exchange Commission, which filed a civil enforcement action against Grevas, provided valuable assistance. Assistant U.S. Attorneys Jared Hasten and Jason Yonan represent the government in the criminal case.
Grevas admitted in a plea agreement that in 2019 she made $286,960 in illegal profits from the purchase and sale of securities in a Washington state-based pharmaceutical company, which was a target for acquisition and later acquired by an overseas-based pharmaceutical company that had an office in Deerfield, Ill., and employed Grevas’s husband. Grevas used material, non-public information about the expected acquisition to purchase shares in the Washington company ahead of a public announcement of the acquisition on Sept. 16, 2019. After the announcement, the Washington company’s stock price increased and Grevas sold her shares for the profit, the plea agreement states.
Stanislaus County Men Charged with Trafficking MethamphetamineRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment against Ricardo Ballardo Quintero, 33, and Juan Suarez Jr., 28, both of Modesto, with conspiracy to distribute and possess with intent to distribute methamphetamine and three counts of distribution of and possession with intent to distribute methamphetamine, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Quintero and Suarez were arrested after delivering 199 pounds of methamphetamine to undercover law enforcement officers. Search warrants executed at the homes of both men and vehicles seen leaving those homes shortly after their arrest yielded a total of an additional 27 pounds of methamphetamine, packaging materials, a digital scale, pay owe sheets, receipts for multi-gallon acetone purchases, and approximately $18,500 in cash.
This case was the product of an investigation by the Drug Enforcement Administration, Homeland Security Investigations, and the Stanislaus Sheriff’s Office Special Investigations Unit. Assistant U.S. Attorney Jessica A. Massey is prosecuting the case.
If convicted, Quintero and Suarez each face a mandatory minimum statutory penalty of 10 years in prison, a $10 million fine, and a term of supervised release of at least five years. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
St. Paul Felon Sentenced to 110 Months in Prison for Possessing Firearms, MethamphetamineRead the Press Release
ST. PAUL, Minn. – A St. Paul man was sentenced today to 110 months in prison followed by five years of supervised release for possessing firearms as a felon and for possession with the intent to distribute methamphetamine.
According to court documents, on March 22, 2021, officers with the Eagan Police Department attempted to conduct a traffic stop and arrest Joshua Cameron Hanes, 32, on an outstanding felony warrant. Hanes, driving a rented Jeep Compass, tried to flee from officers and smashed into one of the squad cars. After several minutes of disregarding officers’ verbal commands, Hanes eventually exited his vehicle and was taken into custody.
According to court documents, officers searched the Jeep Compass and recovered two bags of methamphetamine weighing a total of 198 grams, and a loaded Springfield Armory, 9mm semiautomatic handgun that had been reported stolen in Hudson, Wisconsin. As part of his plea, Hanes also admitted to possessing a 9mm semiautomatic pistol with a high-capacity magazine. On September 14, 2021, Hanes pleaded guilty to one count of possessing a firearm as a felon and one count of possession with the intent to distribute methamphetamine.
Because he has prior felony convictions, Hanes is prohibited from possessing firearms or ammunition at any time.
Acting U.S. Attorney W. Anders Folk for the District of Minnesota made the announcement after Senior U.S. District Judge Donovan W. Frank sentenced the defendant.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Eagan Police Department, and the St. Paul Police Department.
This case was prosecuted by Assistant U.S. Attorney David P. Steinkamp.
St. Johnsbury Businessman Charged with Tax Evasion and Identity Theft OffensesRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Blakely H. Jenkins, Sr., 60, of St. Johnsbury, Vermont has been indicted by the federal grand jury in Burlington on six counts of tax evasion and one count of identity theft in connection with Jenkins’ operation of his St. Johnsbury-based painting business, Blake Jenkins Painting, Inc. Jenkins was arrested on the charges today and is expected to appear in United States District Court tomorrow.
According to the indictment, Jenkins evaded employment taxes for over five years by underreporting to the Internal Revenue Service the amount of wages that Blake Jenkins Painting, Inc. actually paid to its employees. Between July 2015 and October 2020, Jenkins paid employee wages partially or entirely “off the books” in two different ways: by paying them in cash, or by writing them checks falsely denoted as non-wage payments. Jenkins did not include the “off the books” cash or check wages on quarterly forms (“Forms 941”) that Blake Jenkins Painting, Inc. filed with the IRS.
The indictment further alleges that Jenkins knowingly used the name of another person in connection with his commission of tax evasion.
The Acting United States Attorney emphasizes that the charges in the indictment are merely accusations and that the defendant is presumed innocent unless and until he is proven guilty.
If convicted, Jenkins faces a maximum penalty of five years of imprisonment and a $100,000 fine for each tax evasion charges, and a maximum penalty of five years of imprisonment and a $250,000 fine for the identity theft charge. The actual sentence in the event of a conviction would be determined with reference to the federal sentencing guidelines.
Acting United States Attorney Jonathan Ophardt commended the investigatory work of the Criminal Investigation Division of the Internal Revenue Service.
The United States is represented in this matter by Assistant U.S. Attorney Nicole Cate. The defendant is represented by Jody Frey, Esq.
Southwest Georgian Sentenced to 25 Years in Prison for Operating High-Volume Open Air Illegal Drug “Market”Read the Press Release
ALBANY, Ga. – The leader of a high-volume illegal drug trafficking operation located in a southwest Georgia city was sentenced to federal prison.
Sherrod Winchester, 39, of Albany, was sentenced to serve 300 months in prison to be followed by five years of supervised release on Wednesday, October 20, by U.S. District Judge Leslie Gardner after he previously pleaded guilty to conspiring to distribute controlled substances. There is no parole in the federal system.
“Sherrod Winchester’s sentencing concludes a lengthy investigation into a stop and shop serving dozens of addicts daily who could easily access methamphetamine, heroin and diverted pharmaceuticals. Winchester’s prolific operation caused community-wide harm,” said Acting U.S. Attorney Peter D. Leary. “Federal, state and local investigators successfully held Winchester and his co-defendants accountable for their brazen crime and prevented further harm to a neighborhood, users and their families.”
“Because of the results of this case the communities in southwest Georgia will be significantly safer," said Chris Hacker, Special Agent in Charge of FBI Atlanta. "The lengthy sentence received by Winchester serves as an example of the FBI and our law enforcement partners commitment to end the opioid crisis and severely punish anyone involved in contributing to it."
“Drug traffickers are a menace to society, which holds true for a prolific poly-drug trafficker like Mr. Winchester,” said DEA Atlanta Field Division Special Agent in Charge Robert J. Murphy. “He attempted to elude justice, but because of the perseverance and tenacity of all law enforcement agencies involved, he was ultimately apprehended. He, and his co-defendants, will now spend well-deserved time in prison.”
“This investigation illustrates that drug trafficking at any level will not be tolerated in the state of Georgia. It is paramount that violators of drug laws be held accountable. The Georgia Bureau of Investigation is fully committed to working with our local and federal partners in drug enforcement to address these types of crimes,” said GBI Director Vic Reynolds.
“Here is another example of how we can utilize local, state and federal resources to address the challenges of drug dealing within our community. These persons continued to disregard the quality of life in their neighborhood by breaking laws meant to protect people from hurt, harm and danger. The victims of these crimes need comprehensive substance abuse treatment and a long-term recovery program. More people may look for a profitable return on drug dealing, but we want them to understand the consequences that come with it,” said Albany Police Chief Michael Persley.
The following co-defendants have been sentenced:
James Malone, 51, of Albany, was sentenced to serve 240 months in prison to be followed by five years of supervised release after he pleaded guilty to distribution of methamphetamine;
Laura Ann Dungee-Ali, 49, of Albany, was sentenced to serve 180 months in prison to be followed by two years of supervised release after she pleaded guilty to maintaining a drug-involved premises;
William Raymond Cook, 46, of Albany, was sentenced to serve 151 months in prison to be followed by three years of supervised release after he pleaded guilty to possession with intent to distribute hydrocodone;
Shannon Marie Mason, 39, of Leesburg, Georgia, was sentenced to serve 75 months in prison to be followed by two years of supervised release after she pleaded guilty to distribution of methamphetamine;
Anthony Dewayne Pearson, 42, of Sylvester, Georgia, was sentenced to serve 60 months in prison to be followed by three years of supervised release after he pleaded guilty to conspiracy to possess with intent to distribute hydrocodone; and,
Patricia Odom, 50, of Albany, was sentenced to serve 12 months in prison to be followed by three years of supervised release after pleading guilty to possession with intent to distribute methamphetamine.
According to court documents, in 2019, Albany-Dougherty Drug Unit (ADDU) detectives identified defendants Malone and Winchester as significant distributors of methamphetamine and heroin. As a result, GBI, DEA and FBI initiated a joint investigation into the distribution of controlled substances at 520 9th Avenue, Albany, Georgia. The location was an open-air drug market run by Malone and Winchester, dispensing diverted pharmaceutical medications, heroin, methamphetamine, cocaine and other controlled substances. On a daily basis, the location maintained a large volume of foot and vehicle traffic, approximately twenty cars or more, with the visits lasting no more than a few minutes. Customers would approach a covered shelter to acquire illegal drugs, in a manner similar to a drive-thru window at a fast-food restaurant. Confidential sources were recorded making purchases of these illegal drugs from several of the co-defendants. Co-defendant Mason admitted to transporting large quantities of illegal substances at the behest of Winchester. Mason was taken into custody with more than a kilo of cocaine and more than a kilo of crystal methamphetamine in her vehicle. More than $40,000 in drug proceeds were seized from Malone’s residence. The drug house operated almost continuously from 2015 until late 2020 or early 2021.
The case was investigated by the FBI, DEA, GBI and the Albany-Dougherty Drug Unit.
Assistant U.S. Attorney Leah McEwen prosecuted the case.
South Florida Tax Preparer Sentenced to Federal Prison Term for Filing Fraudulent Tax Returns, Costing IRS Almost $3 MillionRead the Press Release
Miami, Florida – A Highlands County, Florida tax return preparer was sentenced yesterday to 37 months imprisonment for filing fraudulent tax returns with the Internal Revenue Service (IRS).
Benny Aguilar, 49, of Lake Placid, owned and operated B&A Services, a tax preparation business, located in Lake Placid. From approximately 2014 through 2018, Aguilar filed fraudulent returns for his clients seeking refunds to which the clients were not entitled by reporting fictitious residential energy credits and inflating the federal income tax withholdings. For each of the years 2014 through 2018, Aguilar submitted approximately 2,235 returns claiming residential energy credits. At sentencing, it was uncontested that Aguilar’s submission of fraudulent tax returns resulted in a loss amount to the IRS of $2,988,702.00.
U.S. District Judge Aileen M. Cannon also sentenced Aguilar to one year of supervised release and ordered him to pay $92,230.00 in restitution.
Juan Antonio Gonzalez, Acting U.S. Attorney for the Southern District of Florida, and Special Agent in Charge Brian Payne, Internal Revenue Service, Criminal Investigation (IRS-CI) made the announcement.
IRS-CI Tampa Field Office investigated the case. Assistant U.S. Attorney Diana M. Acosta prosecuted it.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-14020.
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Sioux Falls Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Sioux Falls, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on October 18, 2021, by Chief Judge Roberto A. Lange, U.S. District Court Judge.
Michael Lovejoy, age 38, was sentenced to 20 months in federal prison, followed by five years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Lovejoy was indicted for Failure to Register as a Sex Offender by a federal grand jury on June 8, 2021. He pled guilty on August 16, 2021.
Lovejoy was convicted of a sex offense in 2003. As a result of this conviction, he is required to register as a sex offender and update his registration within three business days of relocation or changing employment. Between September 28, 2020, and April 29, 2021, Lovejoy failed to properly register as a sex offender and update his registration. Lovejoy registered an address in Elk Point, South Dakota, on July 28, 2020. He left that address and ultimately traveled to Eagle Butte, South Dakota, without updating his address. Lovejoy did not properly register for a period of seven months.
This case was investigated by U.S. Marshals Service. Assistant U.S. Attorney Jay Miller prosecuted the case.
Lovejoy was immediately turned over to the custody of the U.S. Marshals Service.
Silver Spring Man Found Guilty of a Money Laundering Conspiracy and of Money Laundering After a Five-Day TrialRead the Press Release
Greenbelt, Maryland – After a five-day trial, a federal jury yesterday convicted Francis Arthur, age 35, of Silver Spring, Maryland, for a money laundering conspiracy and for money laundering in connection with a scheme to defraud victim account holders at a credit union. The jury acquitted Arthur of a wire fraud conspiracy charge.
The verdict was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Matthew R. Stohler of the U.S. Secret Service Washington Field Office and Chief Marcus Jones of the Montgomery County Department of Police.
According to the evidence presented at Arthur’s trial, from October 2016 through April 2017, Arthur and his co-conspirators engaged in financial transactions designed to conceal the nature, source and ownership of the proceeds of a fraud scheme to obtain cash from victim account holders at a Maryland credit union. Specifically, the evidence showed that the conspirators transferred, withdrew cash, and caused cashiers’ checks to be issued from the proceeds of a fraud scheme. Arthur and his co-conspirators then used the funds to purchase motor vehicles to conceal that the funds were derived from a fraud scheme.
Arthur faces a maximum sentence of 20 years in prison for the money laundering conspiracy and for each of five counts of money laundering. U.S. District Judge Paul W. Grimm has not yet scheduled sentencing.
United States Attorney Erek L. Barron commended the U.S. Secret Service and the Montgomery County Department of Police for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Erin B. Pulice and Special Assistant U.S. Attorney Christian Nauvel, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Shreveport Men Receive Federal Prison Sentences Totaling More Than 20 YearsRead the Press Release
SHREVEPORT, La. - Acting United States Attorney Alexander C. Van Hook announced that two men involved in trafficking methamphetamine have been sentenced by United States District Judge Elizabeth E. Foote.
James Orville Haynes, 43, of Shreveport, Louisiana was sentenced to 108 months (9 years) in prison and Anthony Allen Kellogg, 40, also of Shreveport, was sentenced to 168 months (14 years) in prison. Both men were also sentenced to serve 5 years of supervised release following their time in prison.
On May 11, 2020, agents with the U.S. Drug Enforcement Administration (DEA) received information that Kellogg was distributing large quantities of methamphetamine in the Shreveport/Bossier City area. Agents also learned that Kellogg was going to obtain kilogram quantities of methamphetamine from his source of supply that evening or the morning. Law enforcement agents established surveillance of Kellogg on May 12, 2020 and followed him as he drove from Shreveport to Bossier City. Agents attempted to conduct a traffic stop of Kellogg, but he fled in his vehicle. While fleeing from agents, they observed him throw items from his passenger side window. Kellogg was stopped a short time later and agreed to speak with agents. He admitted to agents that he obtained 5 kilograms of methamphetamine that morning from his source of supply and provided 3 kilograms of the methamphetamine to a co-conspirator, who was later determined to be James Orville Haynes. Agents later retrieved the items thrown from Kellogg’s vehicle which were bags containing 2,976 grams of actual methamphetamine. The drugs were tested at the crime lab and determined to have 55% purity and had an actual weight of 1,636 grams of methamphetamine.
Following the seizure of the methamphetamine and arrest of Kellogg, law enforcement agents searched the residence of Haynes and found approximately 1,969.77 grams of methamphetamine. Haynes admitted to law enforcement agents that the methamphetamine belonged to him.
The DEA investigated the case and Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
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Seekonk Man Pleads Guilty to Child Pornography OffensesRead the Press Release
BOSTON – A Seekonk man pleaded guilty on Tuesday, Oct. 19, 2021 in federal court in Boston to charges of child pornography.
Sean J. Trahan, 44, pleaded guilty to two counts of possession of child pornography and one count of access with intent to view child pornography. U.S. District Court Judge George A. O’Toole scheduled sentencing for Feb. 17, 2022.
This case stemmed from two separate investigations into Trahan’s child pornography activities. An undercover investigation revealed that Trahan used the Dark Web to access child pornography in February 2015. In October 2015, Trahan was arrested and charged after a search of his residence revealed images of child pornography on his personal computer. At the time of his arrest, Trahan stated that he had accessed sites containing child pornography.
Trahan was released on conditions, including cell phone monitoring. On Sept. 8, 2021, he was arrested for violating conditions of his release. Trahan remains in custody.
In October 2021, Trahan was later charged in a superseding information after further investigation connected Trahan with a username that posted child pornography in a Kik messenger group. Another search of Trahan’s residence in September 2021 revealed child pornography on Trahan’s tablet.
The charges of possession of child pornography and accessing child pornography with intent to view each provide for a sentence of up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of $250,000. Due to a prior state conviction for possession of child pornography, Trahan faces a minimum mandatory sentence of 10 years in prison if he is convicted. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Valuable assistance was provided by the Winnebago (Wis.) Sherriff’s Office and the Seekonk Police Department. Assistant U.S. Attorney James D. Herbert of Mendell’s Criminal Division is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Saint Francis Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Saint Francis, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on October 18, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Tanner Kills Enemy, age 23, was sentenced to eight months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Kills Enemy was indicted by a federal grand jury on March 9, 2021. He pled guilty on July 26, 2021.
Between November 4, 2020, and March 9, 2021, Kills Enemy, a person required to register under the Sex Offender Registration and Notification Act, failed to properly register while living on the Rosebud Sioux Indian Reservation in South Dakota.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Kills Enemy was immediately remanded to the custody of the U.S. Marshals Service.
Richmond Man Sentenced to 312 Months for Methamphetamine Trafficking and Illegal Possession of a FirearmRead the Press Release
COVINGTON, Ky. – A Richmond, Kentucky man, Lavone Dixon, 36, was sentenced to 312 months in prison, by U.S. District Judge David Bunning, for possession of methamphetamine with the intent to distribute it and being a felon in possession of a firearm.
According to testimony at his trial, on September 17, 2019, Dixon traveled to Dayton, Ohio, to pick up more than three ounces of crystal methamphetamine for distribution. He was arrested in Grant County, Kentucky, while in route to Richmond with the methamphetamine. Agents executed a search warrant on Dixon’s residence and located three firearms concealed inside. Dixon was a convicted felon at the time of these offenses and was prohibited from possessing firearms. Testimony indicated that Dixon had, several times a month since 2016, traveled to Dayton for large quantities of methamphetamine and heroin and distributed those drugs in the Richmond area.
Dixon was convicted of the charges in May 2021.
Under federal law, Dixon must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for five years, following his release.
Carlton S. Shier IV, Acting United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives; and Col. Phillip Burnett, Commissioner of the Kentucky State Police, jointly announced the sentence.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kentucky State Police, Gateway Area Drug Task Force and the Madison County Drug Task Force, and the Miami Valley Bulk Smuggling Task Force. The United States was represented in the case by Assistant U.S. Attorney Tony Bracke.
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Rhode Island Man Convicted for Illegally Obtaining and Selling Sixteen Firearms, Lying to Federal AgentsRead the Press Release
PROVIDENCE, R.I. – A federal jury in Providence on Wednesday convicted a Warwick man on charges that he acted as an unlicensed federal firearms dealer when he purchased and took possession of sixteen firearms over a period of sixteen months in two states and then sold the firearms to other individuals. The jury also found that he made false statements in order to purchase the firearms, claiming, untruthfully, that he was not an unlawful user of a controlled substance.
The jury convicted Ademola Kayode, Jr., 30, of engaging in the business of dealing in firearms without a license, possessing a firearm as an unlawful user of controlled substances, making a false statement during the purchase of firearms, and two counts of making false statements to federal agents, announced Acting United States Attorney Richard B. Myrus.
According to the government’s evidence presented at trial, an investigation by ATF agents determined that between March 25, 2015, and July 16, 2016, Kayode falsely asserted on ATF background forms required for gun purchases that he was not a user of controlled substances, when in fact he was. In total, Kayode purchased sixteen firearms in sixteen months from federally licensed firearms dealers in Rhode Island and Georgia during this period, in addition to others on the Internet. Kayode came to the attention of ATF agents because of his repeated purchases of firearms in a relatively short period of time, often the same or similar model. An investigation determined that Kayode repeatedly sold firearms without a federal firearms license to do so, and at least five of those firearms ended up in the hands of individuals who were legally prohibited from possessing them.
As part of the investigation, in June 2016, Kayode was surveilled by ATF agents as he left a Rhode Island firearms dealer after taking possession of four firearms he had purchased. Kayode, who rode as a passenger in the back seat of a vehicle, rode past the area of his residence and then into South Providence. He later told investigators that he had taken those firearms, and others he had purchased in Rhode Island, to Georgia. Two of those firearms were later recovered in Providence by Rhode Island State Police and the FBI from people who were legally prohibited from possessing them.
To date, five of the sixteen firearms purchased by Kayode between March 2015 and July 2016 have been recovered by law enforcement. Three of the guns were recovered in Rhode Island, one in Atlanta, and one in Queens, New York. All were in the possession of individuals who are legally prohibited from possessing firearms.
During a recorded interview with ATF agents on July 28, 2016, and introduced as evidence during the trial, Kayode was unable or refused to provide ATF agents with an accounting as to where the guns he had purchased over the past sixteen months could be located. Kayode told agents that he brought the guns to Georgia and that they were in “different places,” and that he had used them in a music video. He told investigators he was planning to bring the guns back to Rhode Island. In the same interview, after first denying he sold any firearms at all, Kayode told investigators he sold firearms to people he met through Armslist, an online firearms marketplace.
According to the government’s evidence, although it appeared that Kayode purchased firearms through Armslist, ATF agents found no evidence that Kayode, who is not a licensed federal firearms dealer, sold any firearms on the website.
According to evidence presented to the jury, two days after being interviewed by ATF agents, Kayode went to the Warwick Police Station and reported that a storage shed in his yard had been broken into and a safe containing the firearms he purchased in Rhode Island and Georgia, along with a leaf blower and grass trimmer, had been stolen. A Warwick Police Officer who responded with other officers to Kayode’s residence testified at trial that they found no evidence of the shed having been broken into or of a safe having been in the shed.
As a result of a review by ATF agents of thousands of Kayode’s text messages, emails, and other communications, and additional evidence gathered during the investigation, it was determined that Kayode regularly resold firearms that he purchased from licensed dealers to others for a higher price than he paid. Some of those guns ended up in the possession of persons who were legally prohibited from possessing firearms. It was also determined that Kayode had numerous communications about purchasing and obtaining marijuana.
Kayode, who had been released on unsecured bond while awaiting trial, was ordered detained following the return of the jury’s verdict. Kayode is scheduled to be sentenced by U.S. District Court Judge William E. Smith, who presided over the three-day trial, on February 8, 2022.
The case is being prosecuted by Assistant United States Attorneys Ronald R. Gendron and Lee H. Vilker.
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Repeat Felon Sentenced to Statutory Maximum Resulting from PSN InvestigationRead the Press Release
COLUMBUS, Ga. – A convicted felon with a lengthy criminal history was sentenced to ten years in federal prison for illegally possessing a firearm, the statutory maximum under federal sentencing guidelines.
Charleston Magee, aka Chopp, 33, of Columbus, was sentenced to serve 120 months in prison to be followed by three years of supervised release by U.S. District Judge Clay Land on Oct. 20, after he previously pleaded guilty to possession of a firearm by a convicted felon. There is no parole in the federal system.
“Convicted felons caught illegally possessing a firearm will face serious consequences,” said Acting U.S. Attorney Peter D. Leary. “Repeat offenders who continually break the law will be held accountable for their crimes. I want to thank the Columbus Police Department and the ATF for their work on this case.”
“Convicted felons have no business possessing firearms,” said ATF Assistant Special Agent in Charge John Schmidt. “The citizens of Columbus are safer now that Mr. Magee will spend the next ten years of his life in federal prison.”
“I am pleased with the outcome of this case and I am thankful for our partnership with the ATF. We will continue to work together to make gun cases on those who possess them illegally. This type of behavior will not be tolerated in Columbus, Georgia,” said Columbus Police Chief Freddie Blackmon.
According to court documents, the Special Operations Unit of the Columbus Police Department (CPD) met with a confidential informant (CI) in August 2019 about an individual known as “Chopp” who was distributing illegal drugs in the community. Under surveillance, the CI purchased illegal drugs from Magee in August and September 2019. Officers executing a search warrant at Magee’s residence on September 16, 2019, found quantities of methamphetamine, powder and crack cocaine in baggies, a Glock 19 handgun with a large-capacity extended magazine containing six rounds of live ammunition, a .22 rifle, a 12-gauge shotgun, an extended pistol magazine and $3,000 in cash. Magee was previously convicted of possession of cocaine with intent to distribute and possession of a firearm by a convicted felon in Muscogee County, Georgia, Superior Court. It is illegal for a convicted felon to possess a firearm.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Columbus Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Assistant U.S. Attorney Crawford Seals prosecuted the case for the Government.
Readout of Meeting between Department of Justice and the Central Bureau of Investigation of Government of IndiaRead the Press Release
Deputy Assistant Attorney General Arun G. Rao of the U.S. Department of Justice Civil Division’s Consumer Protection Branch, together with colleagues from the Consumer Protection Branch and the FBI, met this week with Central Bureau of Investigation (CBI) officials in New Delhi to further strengthen law enforcement cooperation. They discussed means for combating emerging crime trends, including fighting rising telemarketing fraud.
In their meetings, the parties affirmed their shared commitment to strengthen cooperation in combating crime, specifically with respect to efforts to investigate and prosecute cyber-enabled financial frauds and global telemarketing frauds, including international robocalls and communications.
They additionally discussed the need for continued cooperation in tackling emerging technology-based crimes through faster information exchange and evidence sharing, with a view to ensure security and protection of citizens of both jurisdictions.
Rapid City Woman Sentenced to Federal Prison for Theft of Government Property and FraudRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, woman convicted of Theft of Government Property and Supplemental Security Income Benefits Fraud was sentenced on October 19, 2021, by U.S. District Judge Linda R. Reade.
Holli Lundahl, a/k/a Holli Telford, age 65, was convicted by a jury of both charges and was sentenced to a total of 18 months in federal prison. Lundahl was also sentenced to three years of supervised release and ordered to pay a total of $200 in special assessments to the Federal Crime Victims Fund and $70,110 in restitution. Lundahl must serve her sentence consecutive to a federal sentence of three years in custody she received for fraudulent behavior in Wyoming.
Evidence at trial established Lundahl knowingly stole and converted to her own use Social Security Administration Title XVI Social Security Supplemental Income payments between 2011 and 2019. The evidence showed Lundahl received and kept the payments, even though she was not entitled to them, because she owned property and had resources far in excess of the limits permissible for Title XVI beneficiaries. In order to continue to receive the benefits, Lundahl falsely reported, concealed, and failed to disclose to the Social Security Administration extensive property, resources, and assets she held or possessed.
This case was investigated by the Office of the Inspector General – Social Security Administration. Assistant U.S. Attorney Eric Kelderman prosecuted and tried the case.
Lundahl was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for Failure to Register as Sex OffenderRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on October 18, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Benjamen T. Flute, a/k/a Benjamin T. Flute, age 42, was sentenced to 24 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Flute was indicted by a federal grand jury on December 8, 2020. He pled guilty on July 15, 2021.
Flute was convicted of 2nd-Degree Rape in Caddo County, Oklahoma, in December 2007. As a result of this conviction, he is required to register as a sex offender. In August 2020, Flute was released from prison and began a period of supervised release in Rapid City, but failed to update his sex offender registration. An arrest warrant was subsequently issued, and on November 25, 2020, Flute turned himself into law enforcement.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Flute was immediately turned over to the custody of the U.S. Marshals Service.