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Friday 10 September 2021
El Paso Businesswoman Arrested for Health Care FraudRead the Press Release
EL PASO – An El Paso businesswoman and her nephew were arrested today on criminal charges for their alleged roles in committing health care fraud.
According to court documents, Zenia Chavez, 45, and Raul Alejandro Fuentes, 23, of El Paso, conspired together to commit health care fraud. Chavez is the owner and Fuentes is an employee of Nursemind Home Health, Inc. (Nursemind), which provides hospice care services. The defendants sought out people in boarding homes and senior living facilities for enrollment in a Nursemind hospice program although they did not need hospice care or have a terminal illness. The defendants then created false and fraudulent medical records for the individuals, forged health personnel signatures, and submitted fraudulent claims to Medicare. In addition, Chavez is also charged with offering kickbacks for client referrals to Nursemind.
Chavez and Fuentes are charged with one count of conspiracy to commit health care fraud, and 14 counts of health care fraud. Chavez is also charged with one count of conspiracy for illegal remunerations regarding a federal health care program and 11 counts of illegal remunerations regarding a federal health care program. If convicted, Chavez and Fuentes face a maximum penalty on each of the health care fraud counts of 10 years in prison. Chavez faces an additional five years in prison on the conspiracy for illegal remunerations charge and 10 years in prison on each of the illegal remuneration counts. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ashley C. Hoff of the Western District of Texas; FBI Special Agent in Charge Jeffrey Downey, El Paso Division; and U.S. Department of Health and Human Services Office of Inspector General (HHS OIG) Special Agent in Charge Miranda Bennett made the announcement.
The FBI and HHS OIG are investigating the case.
Assistant U.S. Attorneys Chris Skillern and Debra Kanof are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Dwayne Anthony Conley Sentenced to 11 Years in Prison for Coercion and Enticement and Promotion of Prostitution of Five VictimsRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced that DWAYNE ANTHONY CONLEY, a/k/a “Taquan Rashad,” a/k/a “Q,” a/k/a “Pops,” was sentenced to 11 years in prison for coercion and enticement and the promotion of prostitution of five victims. CONLEY previously pled guilty to those offenses on March 11, 2021, before United States District Judge Paul A. Engelmayer.
Manhattan U.S. Attorney Audrey Strauss said: “Dwayne Conley exploited and victimized women for his financial gain. He coerced his victims into prostitution, including by physical abuse and exploiting a victim’s heroin addiction. For his wanton indifference to the suffering of his victims – indeed, for inflicting that suffering – Conley has been sentenced to a lengthy prison term.”
According to the Superseding Information, publicly filed documents, and evidence presented at the trial of CONLEY’s codefendant Justin Rivera, in or about 2015, CONLEY persuaded, induced, enticed, and coerced a victim, described in the Superseding Information as “Victim‑3,” to travel from New York to Virginia to engage in prostitution. CONLEY used violence against Victim‑3 on many occasions. CONLEY also exploited Victim‑3’s severe heroin addiction, verbally abused Victim‑3, used Victim-3 to further his narcotics trafficking, and promoted Victim-3’s prostitution.
In or about 2015, CONLEY also attempted to persuade, induce, entice, and coerce two other victims to travel from New York to Virginia to engage in prostitution. CONLEY further promoted the prostitution of two additional victims, including by posting advertisements on the Internet for commercial sex with the victims, and providing heroin to one of the victims. In total, at his sentencing hearing, CONLEY was held accountable for his victimization and exploitation of five different women.
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In addition to today’s prison sentence, CONLEY, 52, of Central Islip, New York, was sentenced to five years of supervised release.
Ms. Strauss thanked Special Agents and Task Force Officers from the FBI-NYPD New York Child Exploitation and Human Trafficking Task Force, detectives from the Suffolk County Police Department’s Human Trafficking Investigations Unit, and Special Agents from the United States Attorney’s Office for the Southern District of New York for their outstanding work on this case.
The case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Rushmi Bhaskaran, Benjamin Woodside Schrier, and Daniel H. Wolf are in charge of the prosecution.
District Man Sentenced to 118 Months in Prison for Armed Robberies of BusinessesRead the Press Release
WASHINGTON – Ashanti West, 27, of Washington, D.C., was sentenced today to 118 months in prison for carrying out armed robberies of a convenience store and sandwich shop within a two-hour period in the fall of 2019.
The announcement was made by Acting U.S. Attorney Channing D. Phillips, Special Agent in Charge of the FBI Washington Field Office Criminal Division Wayne A. Jacobs, and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
West is one of three defendants, all from Washington, D.C., who pleaded guilty to federal charges in the robberies. One co-defendant, Andre Thomas Jr., 27, was earlier sentenced to 112 months in prison, and another, Jaron Willis, 21, was sentenced to 42 months in prison and an additional six months of home incarceration.
West pleaded guilty in March 2021, in the U.S. District Court for the District of Columbia, to charges of robbery and using, carrying, possessing, and brandishing a firearm during a crime of violence. He was sentenced by the Honorable Timothy J. Kelly. Following his prison term, he will be placed on five years of supervised release.
According to the government’s evidence, on Nov. 5, 2019, at about 11:37 p.m., West and Thomas entered a 7-Eleven in the 4400 block of Benning Road NE, unmasked and scoping out the store. Then, roughly 90 minutes later, at 1:16 a.m. on Nov. 6, 2019, West, Thomas and Willis entered the store, all wearing masks. Once the lone store patron completed her transaction, West retrieved a pistol from his coat pocket and brandished it in the face of a 7-Eleven employee, demanding that the cash register be opened. Willis then hopped over the cashier-counter and began to steal cartons of cigarettes. At that point, a second store employee, who had been stocking shelves, realized what was happening and started to move swiftly toward the exit. Thomas grabbed the employee by the neck and squeezed until the victim lost consciousness. The defendants fled after collectively stealing cash and multiple cartons of cigarettes.
The second robbery took place at approximately 2:50 a.m. All three defendants, again wearing masks, entered a Subway sandwich shop in the 4500 block of Benning Road SE. At the time of this robbery, the door to the left of the register was propped open as the store was actively receiving a delivery. Once again, West pulled out a firearm, pointing it at a store employee before heading to the back of the establishment. When West reached the back of the store, he encountered another employee, who was stocking the freezer with the new deliveries. West forced this victim at gunpoint to lie down on the floor on his stomach, in the entryway to the freezer. Meanwhile, Willis physically pulled and pushed the other employee to the register. Once that employee opened the register, Willis and Thomas told him to hide in the bathroom. The three men took cash, including the entire cash till, and beverages and fled.
The three defendants were arrested soon after the robberies by the Metropolitan Police Department and have been in custody ever since.
This investigation was conducted by Metropolitan Police Department and the FBI Washington Field Office’s Violent Crime Task Force, which is composed of FBI Agents, working in partnership with MPD Detectives, and task force officers from other federal agencies to include the U.S. Department of Homeland Security, Federal Protective Service, U.S. Marshals Service, U.S. Capitol Police, U.S. Department of Energy, and other partners. The task force investigates violent offenders within the D.C. metropolitan area.
In announcing the sentence, Acting U.S. Attorney Phillips, Special Agent in Charge Jacobs, and Chief Contee commended the work of those who investigated the case. They also expressed appreciation for the efforts of those who handled the case for the U.S. Attorney’s Office, including Assistant U.S. Attorney Jeffrey Poulin and Paralegal Specialist Tasha Tobias, as well as Assistant U.S. Attorney Kaitlin A. Vaillancourt, who prosecuted the matter.
District Man Pleads Guilty to Sexually Abusing 14-Year-Old ChildRead the Press Release
WASHINGTON – A 57-year-old man, of Washington, D.C., pleaded guilty today to sexually abusing a 14-year-old girl while he was living with her and her mother in Northwest Washington, Acting U.S. Attorney Channing D. Phillips announced.
The man, who is not identified here to protect the privacy of the victim, pleaded guilty in the Superior Court of the District of Columbia to a charge of second-degree child sexual abuse, with aggravating circumstances. He also pleaded guilty to a related charge of contempt of court. The plea, which is contingent upon the Court’s approval, calls for an agreed-upon prison term in the range of four years to eight and a half years. Following his prison term, the man will be required to register for 10 years as a sex offender and complete a term of supervised release. The Honorable Juliet J. McKenna scheduled sentencing for Jan. 14, 2022.
In connection with his guilty plea, the defendant admitted engaging in sexual abuse against the victim on more than one occasion between October 2015 and December 2016. The victim disclosed what took place to her mother in March 2019. The defendant was arrested on April 5, 2019 and was initially detained pending trial. In May 2019, the Court released him with conditions that included a requirement that he have no contact and stay away from the victim and her mother. However, the Court learned that he continued to have contact with the mother, and as a result, he has been detained since August of 2019.
In announcing the plea, Acting U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department’s Youth and Family Services Division. He also expressed appreciation for the assistance provided by the Children’s Advocacy Center. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including former Victim/Witness Advocate Juanita Harris, Paralegal Specialist ReShawn Johnson, Investigators Sean Ricardi, Bryan Molnar, Nelson Rhone, and Nick Boffi. Finally, he commended the work of Assistant U.S. Attorneys Stuart Allen, Jason Feldman, and Angela Buckner, who investigated and prosecuted the case.
Delaware man sentenced to 130 months in prison for distributing heroin and cocaine laced with fentanyl that resulted in series of overdosesRead the Press Release
COLUMBUS, Ohio – Darnell Reeves, 34, of Delaware, Ohio, was sentenced in U.S. District Court today to 130 months in prison for distributing heroin and cocaine laced with fentanyl that resulted in a series of overdoses.
According to court documents, investigators traced fentanyl, heroin and crack cocaine back to Reeves (also known as Bookie), after they responded to the scene of an overdose death in Ostrander, Ohio on Feb. 28, 2018. The victim was found on a couch in a shed, slumped forward with a used syringe under him.
Further investigation tied Reeves’s trafficking activity to an overdose death on Jan. 22, 2018, a nonfatal overdose on Feb.12, 2018, and a fatal overdose on March 2, 2018.
Reeves was arrested in June 2018 on a federal criminal complaint and has remained in custody since.
“Reeves’ narcotics trafficking posed a deadly threat to his victims and brought dangerous and highly addictive drugs into our country and community,” said Special Agent in Charge Vance Callender of HSI Detroit. “HSI brings its national and international network of offices and partnerships to bear against local traffickers to build out international conspiracy cases and hold the leader organizers accountable. We remain deeply committed to working with our local law enforcement partners by providing federal resources, assistance and a global reach.”
“This is once again an example of the Delaware County Drug Task Force working in collaboration with our Federal, State, and local partners to remove a dangerous person from our community, as well as hold him responsible for the devastating results of his drug trafficking,” said Delaware County Sheriff Russell Martin. “Reeves’ actions have contributed to loss of life and the near death of several others. It is the continued mission of the Delaware County Drug Task Force to reduce the availability of drugs throughout our communities.”
“Almost 11 years in federal prison for causing overdoses is a step in the right direction,” said Delaware County Prosecutor Melissa Schiffel. “The more we prosecute the drug supplier, the more impact we have in saving citizens from a life of addiction. I applaud the efforts of my predecessor and all the law enforcement agencies involved who helped achieve this lengthy and just resolution.”
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Vance Callender, Special Agent in Charge, U.S. Homeland Security Investigations (HSI), Delaware County Prosecutor Melissa Schiffel (and former prosecutor Carol O’Brien), Delaware County Sheriff Russell L. Martin, Delaware Police Chief Bruce Pijanowski and other members of the Delaware County Drug Task Force announced the sentence imposed today by U.S. District Court Judge Edmund A. Sargus, Jr. Assistant United States Attorneys Michael J. Hunter and Kelly A. Norris are representing the United States in this case.
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Convicted Sex Offender Sentenced to Federal Prison for Failing to RegisterRead the Press Release
A convicted sex offender who lived and worked in Iowa for about 14 months without registering as a sex offender was sentenced on September 9, 2021, to more than a year in federal prison.
Charles Gregory, age 50, from Charles City, Iowa, and previously from Illinois, received the prison term after a January 5, 2021 guilty plea to one count of failing to register as a sex offender.
Information disclosed at the sentencing hearing showed that Gregory is required to register as a sex offender for life because he was convicted of multiple counts of aggravated sexual assault in 1990. Gregory was also convicted of failing to register in Illinois state court in 2000. In May 2018, Gregory began working and living in Iowa. He continued to work and live in Iowa until September 2019. Gregory’s failure to register during this time was discovered when he was arrested for operating a motor vehicle while intoxicated in Bremer County. He was eventually convicted of that offense, his second such conviction.
Gregory was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Gregory was sentenced to 16 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Gregory is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the United States Marshal’s Service. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 20-CR-2054.
Convicted Felon Who Sold a Gun to a Confidential Informant Sentenced to Federal PrisonRead the Press Release
A convicted felon who unlawfully possessed a firearm that he then sold to a confidential informant was sentenced today to seven years in federal prison.
Delano Antwuan Deshazer, age 34, from Chicago, Illinois, received the prison term after a March 8, 2021 guilty plea to possession of a firearm by a felon.
The facts in this case show that Deshazer sold a firearm to a confidential informant in Dubuque, Iowa, in February 2020. Deshazer has an extensive criminal history, including convictions in over 30 different cases. His convictions include felony convictions for eluding and escape. Deshazer was also previously convicted of domestic abuse on four occasions.
Deshazer was sentenced in Cedar Rapids by United States District Court Judge C.J. William. Deshazer was sentenced to 84 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Deshazer is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated by Dubuque Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-cr-1029.
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Cedar Rapids Man Charged with Being a Prohibited Person in Possession of a FirearmRead the Press Release
Rakeem Leonard, age 30, of Cedar Rapids, Iowa, has been charged with being a prohibited person in possession of a firearm. The charge is contained in an Indictment unsealed on September 6, 2021, in United States District Court in Cedar Rapids.
The Indictment alleges that, in July 2021, Leonard possessed a pistol after having been convicted of two felonies and while he was subject to a no contact order.
If convicted, Leonard faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and three years on supervised release following any imprisonment.
Leonard appeared for a detention hearing today in federal court in Cedar Rapids and was held without bond. Leonard’s next appearance for trial is set for November 8, 2021.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and is being investigated by the High Risk Unit of the Sixth Judicial District Department of Correctional Services, the Cedar Rapids Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 21-53.
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Camden Man Sentenced to 30 Years in Prison for Drug Trafficking and Firearms ChargesRead the Press Release
CAMDEN, N.J. – A Camden man was sentenced today to 360 months in prison for conspiring to sell 280 grams or more of cocaine base, and quantities of furanyl fentanyl and heroin as well as distributing and possessing with intent to distribute these drugs, Acting U.S. Attorney Rachael A. Honig announced.
John Gunther, aka “Critty,” 38, was convicted on April 18, 2019, after an 11-day trial before U.S. District Judge Renée Marie Bumb in Camden federal court. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case and the evidence at trial:
Brothers John and Taleaf Gunther worked together to lead a prolific drug trafficking organization that sold crack cocaine, heroin, and the synthetic opioid furanyl fentanyl on and around the 1700 block of Filmore Street in Camden, which was controlled by the organization. William Roland assisted the Gunther brothers as a manager within the organization. Ten members of the drug ring were initially arrested in June 2017 following a long-term investigation by the FBI, which utilized multiple telephone wiretaps, surveillance, confidential informants, cooperating witnesses, more than 20 controlled drug purchases, a GPS vehicle tracker and four court-authorized search warrants, among other investigative techniques. The investigation ultimately led to the seizure of more than 300 grams of crack cocaine, quantities of furanyl fentanyl and heroin, a firearm, and drug paraphernalia. Shortly after the execution of search warrants in the case, investigators learned that Taleaf Gunther also attempted to bribe another member of the conspiracy to lie to police about a handgun recovered from a residence he used. An eleventh member of the organization was charged in 2018. Taleaf Gunther and Roland were convicted along with John Gunther and are awaiting sentencing.
In addition to the prison term, Judge Bumb sentenced Gunther to 10 years of supervised release.
Acting U.S. Attorney Honig credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Acting Special Agent in Charge Bradley S. Benavides in Philadelphia; the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s sentencing.
She also thanked the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Gloucester Township Police Department, the Camden County Sheriff’s Department, the Cherry Hill Police Department, and the U.S. Department of Homeland Security Investigations (HSI) for their assistance.
The government is represented by Assistant U.S. Attorneys Gabriel J. Vidoni and Alisa Shver of the U.S. Attorney’s Office Criminal Division in Camden.
Caldwell Woman Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
BOISE – Jessica Renae Green, 26, of Caldwell, was sentenced to 70 months in federal prison based upon her June 2021 guilty plea to possession with intent to distribute methamphetamine, Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced today. Green was indicted by a federal grand jury in Boise on March 10, 2021.
According to court records, Green sold four and a half grams of heroin to another person on March 3, 2021. After the transaction, law enforcement officers discovered there was a large quantity of drugs in the house where the transaction occurred. Based on both Green and her co-defendant’s parole status, law enforcement officers were able to gain access to the house where the suspected drugs were located. When officers entered the premises, they discovered 25 pounds of methamphetamine, three and a half pounds of heroin, one pound of cocaine, several thousand fentanyl pills, over $10,000, a digital scale, and plastic packaging materials commonly used to weigh and package drugs for distribution.
Green has a prior conviction for possession of a controlled substance in 2017. After serving her prison sentence, Green will be on supervised release for five years.
Co-defendant James Donavan Conour, 43, of Homedale, was indicted by a federal grand jury on March 10, 2021, and charged with distribution of methamphetamine and possession of controlled substances with the intent to distribute. Conour is currently scheduled for trial on November 15, 2021, at the federal courthouse in Boise.
Acting U.S. Attorney Gonzalez credited the cooperative efforts of the Drug Enforcement Administration; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; Idaho Department of Correction Probation and Parole; and the City-County Narcotics Unit, which led to the charges.
This case was prosecuted by the Special Assistant United States Attorney hired by the Ada County Prosecuting Attorney’s Office with funds provided by the High Intensity Drug Trafficking Areas (HIDTA) program. HIDTA is part of the Office of National Drug Control Policy (ONDCP) created by Congress with the Anti-Drug Abuse Act of 1988. It provides assistance to federal, state, and local law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States. Idaho is part of the Oregon-Idaho HIDTA. The Idaho HIDTA is a collaboration of local, multi-jurisdictional law enforcement drug task forces, and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada, Canyon, Bannock, Kootenai, and Malheur Counties.
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Businessman Accused of Underreporting Tax Returns by $1 MillionRead the Press Release
WICHITA, KAN. – A federal grand jury in Wichita returned an indictment charging a Missouri man with five counts of false statement in a tax return.
According to court documents, Kenneth Madl, 64, of Joplin, Missouri, is the owner of Madl Construction, a company based in Pittsburg, Kansas. Madl allegedly submitted 2015, 2016, 2017, 2018, and 2019 tax returns to the Internal Revenue Service that underreported the company’s gross income by a total of more than $1 million.
The IRS Criminal Investigation is investigating the case.
Assistant U.S. Attorney Alan Metzger is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###Buffalo Man Going to Prison for Stealing Car Parts, Bourbon, and Electronics from Railroad CarsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Nicholas Birdwell, 39, of Cheektowaga, NY, who was convicted of breaking into and larceny from an interstate carrier facility, was sentenced to serve 18 months in prison by U.S. District Judge John L. Sinatra, Jr.
Assistant U.S. Attorney Laura A. Higgins, who handled the case, stated that on multiple occasions in May and June of 2018, the defendant and co-defendants Paul Krieger and Ray Chrostowski went to the railyards in the vicinity of Broadway and Bailey Avenue in Buffalo, broke into railcars using a crowbar, bolt-cutters and other tools, entered the cars, and removed property from the railcars. On each occasion, co-defendant Krieger directed Birdwell and Chrostowski regarding which railcar to enter, what property to remove, where to hide the stolen items, and the manner by which each should conduct themselves in order to conceal their conduct from the attention of law enforcement and railyard personnel. On at least one occasion, Birdwell was responsible for bringing a vehicle to transport the stolen items from railroad property to locations in Buffalo where it was resold for profit.
• On June 8, 2018, the three defendants broke into a railcar carrying automobiles and removed the tires and rims from a 2018 Jeep and a 2018 Dodge. The total loss relating to the 2018 Jeep was $1,882.10, and the total loss relating to the 2018 Dodge was $2,836.06.
• On June 22, 2018, the defendants stole approximately 20 cases (120 bottles) of Jefferson bourbon, and sold them for profit. The value of the bourbon was approximately $3,118.80.
• On June 26, 2018, the defendants stole a 50-inch Samsung television valued at approximately $400.00.Co-defendant Ray Chrostowski was previously convicted and sentenced to serve 18 months in prison. Co-defendant Paul Krieger was also previously convicted and is awaiting sentencing.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia and the CSX Police, under the direction of Chief Sean Douris.
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Buffalo Man Going to Prison for Selling Cocaine and Shooting at A Rival Drug DealerRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. — U.S. Attorney James P. Kennedy, Jr. announced today that Gonzalo Velazquez-Cabrera a/k/a Bebe, 39, of Buffalo, NY, who was convicted of conspiring to possess with intent to distribute, and distributing, 500 grams or more of cocaine and discharging a firearm in furtherance of a drug trafficking crime, was sentenced to serve 153 months in prison by Chief U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Seth T. Molisani, who is handling the case, stated that between March and December 2015, the defendant conspired with others to sell cocaine. Velazquez-Cabrera, as a leader of the conspiracy, purchased and distributed approximately 125 grams of cocaine every week, obtaining, storing, and distributing the cocaine at his West Delavan Avenue residence. The defendant supplied co-defendants with cocaine so they could conduct street-level narcotics sales. Velazquez-Cabrera also personally engaged in the daily sale of varying quantities of cocaine both at his residence and on the west side of Buffalo.
In August of 2015, the defendant became embroiled in a feud with a rival drug dealer who also operated on the west side of Buffalo. Following verbal arguments that centered on Velazquez-Cabrera’s encroachment into the drug dealing territory of his rival, the defendant escalated the conflict to violence. On August 27, 2015, Velazquez-Cabrera and a co-defendant exchanged gunfire with the rival drug dealer. In a text message exchange that followed between Velazquez-Cabrera and the rival drug dealer, the defendant declared the rival drug dealer was a dead man.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, Safe Streets Task Force, under the direction of Special Agent-in-Charge Stephen Belongia; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; and the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard.
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Bridgeport Gang Member Pleads Guilty to Federal Charges Stemming from Courthouse ShootingRead the Press Release
MARQUIS ISREAL, also known as “Garf” or “Gbaby,” 25, pleaded guilty today in New Haven federal court to racketeering offenses related to his participation in a gang-related shooting in front of a state courthouse in Bridgeport in January 2020.
Today’s announcement was made by Leonard C Boyle, Acting United States Attorney for the District of Connecticut; Joseph T. Corradino, State’s Attorney for the Fairfield Judicial District; Bridgeport Acting Police Chief Rebeca Garcia; James Ferguson, Special Agent in Charge, ATF Boston Field Division; David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, and Acting U.S. Marshal Lawrence Bobnick.
According to court documents and statements made in court, the FBI, ATF, DEA, U.S. Marshals Service and Bridgeport Police have been investigating multiple Bridgeport-based gangs whose members are involved in narcotics trafficking, murder and other acts of violence. Isreal has been a member of the “Original North End” (“O.N.E.”), a gang based in the Trumbull Gardens area of Bridgeport whose members sold narcotics, laundered narcotics proceeds, robbed drug dealers, stole cars from inside and outside Connecticut and used them to commit crimes, and tampered with witnesses who might testify against them. Since approximately 2017, O.N.E. members have been aligned with the “Greene Homes Boyz” (“GHB/Hotz”), a gang based in the Charles F. Greene Homes Housing Complex in Bridgeport’s North End, against rival groups in Bridgeport, including the East End, East Side and PT Barnum gangs, as well as 150, which is a geographic gang based on the West Side of Bridgeport.
In pleading guilty, Isreal admitted that he and his associates attempted to kill members and associates of the East End gang on January 27, 2020, in a brazen afternoon shooting in front of a Bridgeport courthouse. At 12:11 p.m. on that date, Bridgeport Police responded to the area of 172 Golden Hill Street in Bridgeport after a Shot Spotter activation detected approximately 20 shots being fired in front of the state courthouse located there. Upon arrival, investigators discovered that four victims had been shot while sitting inside a black Chevrolet Impala. One victim was shot in the side of his chest and was left paralyzed and a second victim sustained multiple gunshot wounds to his back, shoulder and wrist. The victims’ vehicle had approximately 23 entry bullet holes in the driver’s side and windshield area.
As alleged in court documents in a related case, Isreal had previously been shot and seriously wounded by one of his victims in a restaurant at 1653 Barnum Avenue in the East End of Bridgeport on September 15, 2019.
Isreal pleaded guilty to one count of attempted murder and aiding and abetting, and one count of conspiracy to commit murder, both in violation of the Violent Crimes in Aid of Racketeering (“VCAR”) statute. Judge Arterton scheduled sentencing for December 3, 2021, at which time Isreal faces a maximum term of imprisonment of 20 years.
Isreal has been detained since August 6, 2020.
This ongoing investigation is being conducted by ATF, the FBI’s Safe Streets and Violent Crimes Task Forces, DEA, U.S. Marshals Service, Bridgeport Police Department, Connecticut State Police and the Bridgeport State’s Attorney’s Office, with the assistance of the U.S. Postal Inspection Service, Connecticut Forensic Science Laboratory and the Naugatuck Police Department. The case is being prosecuted by Assistant U.S. Attorneys, Jocelyn C. Kaoutzanis, Rahul Kale, Peter D. Markle and Karen L. Peck.
This prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN), Project Longevity and Organized Crime Drug Enforcement Task Forces (OCDETF) programs.
PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.
OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Breathitt County Man Pleads Guilty to Armed Marijuana TraffickingRead the Press Release
FRANKFORT, Ky. – A Lost Creek, Ky., man, Kevin Combs, 32, pleaded guilty on Thursday, before U.S. District Judge Gregory Van Tatenhove, to cultivating more than 50 marijuana plants and brandishing a firearm in relation to a drug trafficking crime.
According to Combs’ guilty plea agreement, on July 16, 2020, Kentucky State Police law enforcement responded to an investigation regarding suspected marijuana plants. At the location, Combs confronted one of the officers with a stainless-steel, loaded revolver pistol. When the officer told Combs to lower his pistol, he refused, ran away, and hid the pistol. The pistol was subsequently recovered as evidence. Combs further admitted to cultivating over 50 marijuana plants on the property that was part of the investigation.
Combs has several prior state felony convictions, including fleeing and evading law enforcement, escape, trafficking in a controlled substance first degree, and trafficking in a controlled substance second degree.
Combs was indicted in October 2020.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; and Colonel Phillip Burnett, Commissioner, Kentucky State Police, announced the guilty plea.
The investigation was conducted by ATF and Kentucky State Police. The United States was represented by Assistant U.S. Attorney Roger West.
Combs is scheduled to be sentenced on January 1, 2022. He faces a maximum of 20 years on the marijuana charge and not less than seven years on the firearm charge, which must run consecutively to other sentences. However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
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Biddeford Man Sentenced for Committing and Conspiring to Commit Federal Hate CrimeRead the Press Release
PORTLAND, Maine: A Biddeford man was sentenced today in U.S. District Court in Portland for his role in committing and conspiring to commit a federal hate crime, Acting U.S. Attorney Donald E. Clark announced.
U.S. District Judge Nancy Torresen sentenced Dusty Leo, 30, to three years in prison followed by three years of supervised release. He was also ordered to pay restitution to his victims. Leo pleaded guilty on February 25, 2020.
Following a three-day trial in March 2020, a jury convicted Leo’s co-conspirator and uncle, Maurice Diggins, of conspiring to commit and committing a series of racially motivated assaults against Black men in Maine. For his convictions, Diggins was sentenced to 10 years in federal prison, followed by three years of supervised release.
“The defendant violently attacked a Black man for no reason other than his race,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “This sentencing marks the final chapter in the long road to justice for the victims of these violent, racially-motivated crimes. The Department of Justice will continue to use the Mathew Shepard and James Byrd Jr. Hate Crimes Prevention Act, and every tool at our disposal, to vindicate the rights of victims of hate crimes, and will continue to investigate and prosecute these acts wherever they occur.”
“The crimes committed by Mr. Leo and his co-conspirator injured and traumatized their victims, and also traumatized the communities in which they occurred,” said Acting U.S. Attorney Donald E. Clark for the District of Maine. “No one should be targeted for violence because of the color of their skin or their ethnicity. Crimes like this tear at the very fabric of our society. This prosecution makes clear that individuals who commit hate-motivated crimes will be made to pay for their actions. I am proud of the investigators and prosecutors who tirelessly pursued this case, and so appreciative of the victims, who courageously confronted Mr. Leo’s co-defendant at trial.”
“Today’s sentence should make it crystal clear that those who traffic in hate, targeting people in our community because of their skin color, will be held accountable for their horrific, violent crimes,” said Special Agent in Charge Joseph R. Bonavolonta of the FBI Boston Field Office. “No one should be afraid to walk down the street and be targeted by an act of violence based on how they look, where they are from, or any part of their identity. The FBI would like to thank the brave victims in this case for their courage in coming forward to ensure that Dusty Leo, and his uncle did not escape justice, and we’d like to encourage other victims of hate crimes to do the same. Everyone deserves to feel safe in their community, and everyone deserves a voice.”
According to Leo’s guilty plea and evidence presented at Diggins’s trial, on April 15, 2018, Diggins attacked a Sudanese man without provocation outside of a bar in Portland, Maine. The assault, which broke the victim’s jaw, was immediately followed by an attack on another Black man who was standing on the street nearby.
In a second incident, which occurred approximately an hour later and approximately 20 miles away in Biddeford, co-conspirators Diggins and Leo drove in Leo’s truck into a parking lot of a convenience store, where Diggins got out of the truck and approached a Black man who was walking toward the store’s entrance. Diggins directed a racial slur at the man and distracted him while Leo got out of the truck and sucker-punched the victim in the jaw, knocking him to the ground. The unprovoked attack broke the victim’s jaw in several places.
The Biddeford Police Department and the FBI investigated the case. Assistant U.S. Attorney Sheila Sawyer and Civil Rights Division Trial Attorney Tim Visser prosecuted the case.
Bergen County Man Sentenced to 15 Months in Prison for Role in Fraud SchemeRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was sentenced today to 15 months in prison for his role in a scheme to defraud financial institutions of hundreds of thousands of dollars, Acting U.S. Attorney Rachael A. Honig announced.
Dennys Tapia, 55, of Ridgefield Park, New Jersey, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an information charging him with one count of conspiracy to commit bank fraud. Judge Chesler imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From 2015 to 2018, Tapia conspired with others to fraudulently obtain mortgage loans from financial institutions, including “Mortgage Lender A” and “Mortgage Lender B,” to finance the purchase of properties by unqualified buyers. Applicants for mortgage loans are required to list their assets and income on their mortgage loan applications, and mortgage lenders rely on those applications when deciding whether to issue mortgage loans.
Tapia admitted participating in a conspiracy in which he knowingly provided fraudulent documents to a loan officer at Mortgage Lender A for potential borrowers, including fraudulent lease agreements, bank statements, and a gift check and gift letter. Based on this false information, Mortgage Lender A issued mortgage loans to unqualified buyers, which caused Mortgage Lender A hundreds of thousands of dollars in losses. Some of the loans Mortgage Lender A issued to unqualified borrowers were sold to the Federal Home Loan Mortgage Corporation “Freddie Mac,” a government-sponsored enterprise with the mission of providing liquidity, stability, and affordability in the United States housing market.
Tapia also admitted causing a straw borrower, “Individual A,” to apply to Mortgage Lender B for a cash-out refinance mortgage loan that contained multiple misrepresentations of material facts and fraudulent documents, including pay stubs and a verification of employment. Based on the false information submitted by Individual A and Tapia, Mortgage Lender B issued a false and fraudulent cash-out refinance mortgage loan, which resulted in Tapia earnings tens of thousands of dollars in profits.
In addition to the prison term, Judge Chesler sentenced Tapia to two years of supervised release and ordered restitution of $182,508 and forfeiture of $176,532.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jonathan Fayer of the Economic Crimes Unit of the U.S. Attorney’s Office, and Special Assistant U.S. Attorney Charlie Divine of the Federal Housing Finance Agency, Office of Inspector General.
Beckley Man Sentenced to 30 Years in Federal Prison for Child Pornography OffenseRead the Press Release
BECKLEY, W.Va. – A Beckley man was sentenced today to 30 years in prison for attempted production of child pornography. Douglas Patrick Humphrey, 33, will also be required to serve his lifetime on supervised release following his release from prison and will be required to register as a sex offender.
According to court documents and statements made in court, Humphrey previously admitted that on August 25 and 26, 2020, he communicated with a 15-year-old female via Snapchat. During that conversation he asked her to meet him to engage in sexual activity and also asked her to produce and send a video of herself engaged in sexual intercourse with another man. Humphrey admitted that in July 2020 he had made a similar request of the minor female and had received a video depicting her engaged in sexual activity. Humphrey was arrested on August 26, 2020, when he arrived at the location where he had arranged to meet the minor.
United States District Judge Frank W. Volk imposed the sentence. During the sentencing hearing, the Court stated that Humphrey had caused “astounding” harm and is a “sexual predator of a serial nature.”
Acting United States Attorney Lisa G. Johnston made the announcement and commended the excellent investigative work of the Raleigh County Sheriff’s Office and the FBI Child Exploitation and Human Trafficking Task Force.
Assistant United States Attorney Jennifer Rada Herrald handled the prosecution.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:21-cr-00005.
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Bank Teller Charged with Federal Fraud ChargesRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that on August 27, 2021 a Bill of Information charging DEMETRIA MYERS SILVIO, age 32, of New Orleans, Louisiana, with Wire Fraud, in violation of Title 18, United States Code, Section 1343. If convicted, SILVIO faces a maximum term of twenty (20) years imprisonment and/or a fine of $250,000.00 or the greater of twice the gross gain to the defendant or twice the gross loss to any person of the offense. In addition, SILVIO faces a term of supervised release of up to three (3) years after her release from prison and a mandatory $100 special assessment fee.
According to the Bill of Information, between November 2017 and February 2020, SILVIO held the positions of head teller, universal banker, and mortgage loan assistant at IberiaBank (“Iberia”) in New Orleans and Metairie. From December 3, 2018 to December 6, 2019, SILVIO embezzled approximately $63,059.82 from five customers’ Iberia accounts by forging approximately 66 counter checks. SILVIO deposited the fraudulent checks into her own bank accounts with Chase Bank and Capital One.
U.S. Attorney Evans reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The U.S. Attorney’s Office would like to acknowledge the investigation by the Federal Bureau of Investigation. The prosecution of this case is being handled by Assistant U.S. Attorney Maria Carboni.
Baltimore Man Sentenced to More Than Nine Years in Federal Prison for Three Armed Robberies Where Victims Were Zip-Tied and One Victim Was Hit in the HeadRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander today sentenced Javaughn Berry, age 26, of Baltimore, Maryland, to 115 months in federal prison, followed by three years of supervised release, for three armed commercial robberies.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation (FBI), Baltimore Field Office; Commissioner Michael Harrison of the Baltimore Police Department; Chief Melissa R. Hyatt of the Baltimore County Police Department; and Chief Amal E. Awad of the Anne Arundel County Police Department.
According to his guilty plea, from October 2019 to December 2019, Berry and a co-conspirator committed three armed commercial robberies—one each in Baltimore City, Anne Arundel County, and Baltimore County. In each robbery, the robbers brandished a firearm and stole a victim’s vehicle to flee the scene. Investigators with the FBI obtained cell phone records which revealed that Berry and his co-conspirator’s phones were in close proximity to each of the victim businesses around the time of the robberies.
As detailed in Berry’s plea agreement, on October 13, 2019, Berry and a co-conspirator robbed a Baltimore pharmacy. After the robbery, Baltimore Police Department officers responded to the scene and spoke to a victim who reported that the two male suspects wore black masks, black gloves, glasses, and yellow reflective vests. Prior to the robbery, both men were picking up trash in the parking lot. When the pharmacy opened at 8:00 a.m., the suspects entered. One suspect pointed a black revolver at a victim employee and demanded access to the safe. The suspects took $1,630 in cash from the safe and tied the victim’s hands with zip ties. They took also took the victim’s keys and fled in the victim’s vehicle.
Berry and his co-conspirator also robbed a retail store in Millersville, Maryland, on November 17, 2019. Victims reported to Anne Arundel County Police officers that two men entered the store as it was closing and demanded money. Both suspects wore masks and had black handguns. The suspects stole $3,200 in cash and zip-tied the employees. One of the suspects struck a victim on the head and pulled her to the ground. The victim sustained a cut to her right ear and was treated by medics on scene. As in the pharmacy robbery, Berry and his co-conspirator fled the scene by stealing an employee’s vehicle.
Finally, Berry admitted that on December 13, 2019, he and his co-conspirator robbed a Parkville, Maryland chain restaurant. On the morning of December 13, 2019, Baltimore County Police Department (“BCPD”) detectives responded to the restaurant and found the shift manager and his co-worker inside. According to the victim employees, around 7:00 a.m., the shift manager and co-worker unlocked the front doors and two male suspects entered the store wearing dark, hooded sweatshirts and masks. Berry’s co-conspirator approached the shift manager, pulled out a revolver, and demanded that he open the safe. Berry’s co-conspirator stole $3,393.37 in cash, then put the shift manager’s wrists and ankles in zip ties. Berry approached the co-worker and put zip ties on his wrists and ankles. As in the previous robberies, Berry and the co-conspirator stole the shift manger’s vehicle and fled the scene, leaving behind the stolen vehicle from the November retail robbery.
On December 14, 2019, a BCPD officer found the vehicle stolen during the restaurant robbery parked a few blocks away from Berry’s residence. BCPD officers placed a GPS device on the vehicle to track its movements. FBI investigators had also gotten a warrant to track the co-conspirator’s phone in real time.
Berry and the co-conspirator were arrested on December 16, 2019, after BCPD tracked the stolen vehicle to the intersection of Joppa Road and Harford Road in Carney, Maryland. The co-conspirator was driving behind the stolen vehicle and was stopped by officers and arrested. Law enforcement obtained a search warrant for the car and found a black replica handgun, several black gloves, black zip ties, and a yellow reflective vest.
Investigators continued following the stolen vehicle, which was being driving by Berry. Berry abandoned the car and fled on foot. Investigators found Berry walking along Harford Road soon afterward. It was dark, cold, and snowing, yet Berry was wearing very little clothing. Given the hour and the weather, Berry was the only person walking in the area. He showed investigators the call log on his phone, which revealed several recent completed and missed calls to the co-conspirator’s number, After waiving his Miranda rights, Berry told officers that he saw the stolen car earlier that morning and wanted to take it for a joy ride.
Berry’s phone was seized. A search warrant executed on the device recovered photos of Berry holding large amounts of cash that were taken on the morning of the first robbery. A search warrant executed on the co-conspirator’s phone recovered a picture of a vehicle similar to the vehicle stolen from the employee in the second robbery. Metadata revealed that the picture first appeared on the co-conspirator’s phone after the robbery.
Berry admitted that he committed the December 13, 2019 robbery of the victim restaurant. Berry also agreed that he took money from the victims, against the victims’ wills, by using actual or threatened force, violence, or fear of injury.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Acting United States Attorney Jonathan F. Lenzner commended the FBI, the Baltimore County Police Department, the Baltimore City Police Department, and the Anne Arundel County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Brandon K. Moore, who is 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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Amherst Man Pleads Guilty to Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Gary Todd Baker, 52, of Amherst, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to possession of child pornography. The charge carries a minimum penalty of 10 years, a maximum of 20 years, and a $250,000 fine.
Assistant U.S. Attorney David J. Rudroff, who is handling the case, stated that on March 4, 2020, the defendant was convicted in Erie County Court of possession of a sexual performance by a child under the age of 16. Baker was designated a level-2 sex offender, and sentenced to 10 years’ probation.
On March 12, 2020, eight days into his probation term, Erie County Probation Officers conducting a routine check discovered that the defendant possessed an internet-capable cellular device, as well as empty boxes of printer ink and paper. After questioning Baker, Probation Officers located a bag containing numerous torn-up printed images. Members of the FBI’s Child Exploitation Task Force reassembled several of the images and confirmed that they depicted child pornography. The defendant was subsequently arrested on May 28, 2020. At the time of his arrest, Baker was found to be in possession of hundreds of additional images of child pornography.
The plea is the result of an investigation by the Federal Bureau of Investigation’s Child Exploitation Task Force, under the direction of Special Agent-in-Charge Stephen Belongia; the Erie County Probation Department, under the direction of Commissioner Brian McLaughlin; and the Town of Tonawanda Police Department, under the direction of Chief James P. Stauffiger.
Sentencing is scheduled for January 13, 2022, before Judge Sinatra.
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40 Charged with Gun, Drug Crimes in LubbockRead the Press Release
Forty defendants – including 15 arrested in Wednesday’s “Operation Taste the Rainbow” in Lubbock – have been charged with gun and drug crimes, announced Acting U.S. Attorney Prerak Shah.
The men and women, all allegedly tied to methamphetamine trafficking in and around Lubbock, have been charged in a series of three indictments with an array of federal crimes, primarily distribution of methamphetamine, unlawful possession of firearms, and conspiracy. They began making their initial appearances in federal court on Friday morning.
In bringing these charges, the United States Attorney’s Office focused on bringing to justice Lubbock’s most violent recidivists. Between them, the 40 defendants have been previously charged with 32 assaults, nine burglaries, three robberies, a murder, 24 firearm crimes, 69 serious controlled substance violations, three terroristic threats, a forgery, 12 frauds, and a child sexual assault.
In an effort to keep the community safe, FBI’s Dallas Field Division, the Texas Department of Public Safety, and their federal, state, and local law enforcement partners deployed nearly 200 personnel to execute Wednesday’s operation, which resulted in the arrest of 15 defendants. Meanwhile, agents served federal arrest warrants on an additional 20 defendants already behind bars. The remaining five defendants charged remain fugitives. Members of the public are encouraged to contact law enforcement at 1-800-CALL-FBI (225-5324) with tips.
Fugitives include:
• Oscar Alcala Jr. (believed to be in Lorenzo)
• Alexandra Cruz (believed to be in Lorenzo)
• Bobby Joe “Ace” Garcia (believed to be in Lubbock)
• Christopher Eldon “Skittles” Limbaugh (believed to be in Littlefield)
• Christopher Joshua Ruiz (believed to be in Lubbock)
Those arrested Wednesday morning include:
• Alexandria Unique Conner
• Kelsey Marie Applegate
• Ruby Alexis Banuelos
• David Bustos, Jr.
• Teresa Delhierro
• Sergio Lopez
• Christopher Ray Lovington
• Madison Whitney Michaels
• Katie Dshawn Montez
• Stephanie Shea Ortiz
• Adriana Pena
• Julie Ann “Juicy” Sifuentes (arrested in San Antonio)
• Colten Shane White
• Toby Mack Woods
• Michael Joseph Ybarra
Those served with federal warrants while already in custody include:
• Mark Adam “Cinco” Alonzo
• Beatrice Delgado
• Yesenia Flores
• Christopher Daniel Garcia
• James Raul Garza
• Austin Tyler Grant
• Megan Francisca Gomez
• Bobbi Jean Hendrix
• Isaac Levi Hernandez
• Jesse “J.J.” Martinez, Jr.
• Robert Rangel, Jr.
• Symon Anthony Maldonado
• Alejandro Antonio “Ace” Mendez
• Gabriel Lee Mendoza
• Megan Francisca Gomez
• Daniel Ramon, Jr.
• Edilberto “Bird” Reyes
• Samantha Denise Rodriguez
• Jessie Luciano “Lucky” Salazar
• Gerald Felipe “Gizmo” Vargas
“This was a victory for the rule of law in Lubbock. Dozens of criminals, and their guns, and their drugs were removed from the streets in a matter of hours, and the community is safer because of that,” said Acting U.S. Attorney Prerak Shah. “We zeroed in on the men and women who are driving up the city’s crime rates – the ones that are most responsible for the uptick in violent crime. Federal authorities are committed to partnering with state and local law enforcement to remove the worst criminal elements from this community, and we don’t plan to rest until we’re done.”
“The FBI’s criminal investigative focus is on targeting the overall leadership of gangs and criminal enterprises that drive violence in American communities,” said FBI Special Agent in Charge Matthew J. DeSarno. “Through our law enforcement partnerships and task forces we’re sending a loud and clear message to violent criminals that we will deploy our collective strength to ensure the safety and security of our neighborhoods and communities. In today’s world, the threats we face are too diverse, too dangerous, and too all-encompassing for any of us to tackle alone.”
“This is an excellent example of a law enforcement officer's daily commitment to fulfill their sacred duty of serving and protecting. The Texas Department of Public Safety values the importance of the teamwork displayed during this successful operation with our city, county, and federal partners in achieving the common objective of providing safer communities for the citizens of the great State of Texas,” said Texas Department of Public Safety Regional Director Joe Longway.
Indictments are merely allegations of wrongdoing, not evidence. All defendants are presumed innocent until proven guilty. If convicted, many of these defendants would face decades-long sentences.
The Federal Bureau of Investigation’s Dallas Field Division – Lubbock Resident Agency and the Texas Department of Public Safety conducted the investigation with the help of six agency partners: the Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division, the Lubbock Police Department, the U.S. Marshals, the Lubbock County Sheriff’s Office, the Drug Enforcement Administration’s Dallas Field Division, and Homeland Security Investigations. Assistant U.S. Attorney Sean Long is prosecuting the case.
Thursday 9 September 2021
Worcester Man Pleads Guilty to Charges of Civil Disorder and Possession of an Unregistered FirearmRead the Press Release
BOSTON – A Worcester man pleaded guilty today to civil disorder and possession of three Molotov cocktails during a demonstration in the City of Worcester over the death of George Floyd.
Vincent Eovacious, 19, pleaded guilty to one count of civil disorder and one count of possession of an unregistered firearm. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Jan. 6, 2022. Eovacious was indicted in October 2020.
On June 1, 2020, crowds gathered at various locations in Worcester to protest the death of George Floyd, including South Main Street. At approximately 10:00 p.m., a large crowd blocked traffic and began throwing objects in the direction of the police. As officers on scene gathered into a line formation, one officer observed a man dressed in a trench coat standing on top of a building at 848 Main Street which is clearly marked, “No Trespassing.” The man, later identified as Eovacious, paced back and forth on the rooftop. The officer then observed Eovacious remove a bottle from his satchel that appeared to contain liquid and attempt to insert a rag into the bottle while holding a silver object that the officer believed to be a lighter. Minutes later, officers observed Eovacious walking in the area of May and Main Streets, still carrying the satchel, and stopped him. They searched the satchel and recovered three clear glass bottles with a slightly yellow liquid that smelled of gasoline, five white rags, one green lighter and one silver lighter. Eovacious stated that the liquid in the glass bottles was gasoline and that he was “with the anarchist group” and was “waiting for an opportunity.”
The charge of civil disorder provides for a sentence of up to five years in prison, three years of supervised release and a fine $250,000. The charge of unlawful possession of a firearm provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Worcester Police Chief Steven M. Sargent made the announcement. Assistant U.S. Attorney Danial Bennett of Mendell’s Worcester Branch Office is prosecuting the case.
Woolwich Man Pleads Guilty to Possessing Child PornographyRead the Press Release
PORTLAND, Maine: A Woolwich man pleaded guilty today in federal court to possessing images of child exploitation, Acting U.S. Attorney Donald E. Clark announced.
According to court records, on June 18, 2020, investigators with Homeland Security Investigations (HSI) executed a search warrant at the residence of Clifton Given, 32. In an interview with investigators, Given admitted to using his cell phone to view images of children engaged in sex. Investigators later found several images and videos on his cell phone depicting minors engaged in sexually explicit conduct.
Given faces a maximum of 20 years in prison, a $250,000 fine and a term of supervised release of at least five years and up to life. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
HSI and the Sagadahoc County Sheriff’s Office investigated the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department’s 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.
Woodbury County Man Pleads Guilty to Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine pled guilty on September 8, 2021, in federal court in Sioux City.
Fabian Alcaraz-Santillan, 24, from Sioux City, Iowa, was convicted of conspiracy to distribute methamphetamine.
At the plea hearing, Alcaraz-Santillan admitted that from August 2020 through September 11, 2020, he and others conspired to distribute more than 4.5 kilograms of methamphetamine in the Sioux City area. Alcaraz-Santillan received multiple packages of methamphetamine from Mexico with the intent for further distribution.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Alcaraz-Santillan remains in custody of the United States Marshal pending sentencing. Alcaraz-Santillan faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and five years up to life of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4090. Follow us on Twitter @USAO_NDIA.
Windham Woman Sentenced for Defrauding Taiwanese Exchange StudentsRead the Press Release
PORTLAND, Maine: A Windham woman was sentenced today in federal court for two counts of wire fraud stemming from her scheme to defraud Taiwanese exchange students studying in Maine, Acting U.S. Attorney Donald E. Clark announced.
U.S. District Judge Nancy Torresen sentenced Ni Ni Chang, 51, to five years of probation. She was also ordered to pay $65,524.94 in restitution to the victims. She waived indictment and pleaded guilty on January 14, 2021.
According to court records, between September 2016 and December 2019, Chang hosted two Taiwanese exchange students seeking to study abroad in Maine at the University of Southern Maine and Windham Christian Academy. Prior to and after their arrival, Chang falsely represented the cost of tuition and other educational expenses to the families of these students and pocketed the difference between the actual costs and the wrongfully inflated costs. At sentencing, she acknowledged that her actions had been driven by greed.
Both victims attended the sentencing proceeding remotely from Taiwan, and one of the victims addressed the Court during the Zoom proceeding, expressing her gratitude to the American judicial system for helping her family obtain justice.
Homeland Security Investigations and the U.S. Department of State’s Diplomatic Security Service investigated the case.
Wichita Businessman Faces 19 Counts of COVID Relief FraudRead the Press Release
WICHITA, KAN. – A federal grand jury in Wichita indicted a Kansas man on charges he defrauded federal, state, and local agencies of more than $450,000 in COVID-19 business recovery funds.
According to court documents, Michael Capps, 43, of Wichita is the owner and/or majority owner of Midwest Business Groups, LLC and Krivacy, LLC. Court documents also indicate he is a member of the Fourth and Long Foundation. Capps is accused of submitting false and fraudulent documents on behalf of the companies to the Small Business Administration (SBA) for Economic Injury Disaster Loans (EIDL), as well as to the Kansas Department of Commerce for Small Business Working Capital grants, and to Sedgwick County for a Sedgwick County Cares grant.
Capps also allegedly sent false and fraudulent documents to Emprise Bank to receive a Payroll Protection Program (PPP) loan.
The indictment filed against Capps charges him with:
• one count of making false statement to a bank for a PPP loan,
• one count of bank fraud in connection with a PPP loan,
• three counts of false statement to the SBA for EIDL loans,
• three counts of wire fraud in connection with EIDL loans from the SBA,
• two counts of wire fraud in connection with grants from the Kansas Department of Commerce,
• one count of wire fraud in connection with a grant from Sedgwick County, and
• eight counts of money laundering.The investigating agencies are the FBI and investigators from the Sedgwick County District Attorney’s Office.
Assistant U.S. Attorney Alan Metzger is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Violent Neighborhood Gang Known as “the Hazelwood Mob” DismantledRead the Press Release
PITTSBURGH, PA- A federal grand jury in Pittsburgh has returned two separate, but related, Indictments following a four-month Title III wiretap investigation into drug trafficking and violence in and around the Hazelwood neighborhood in Pittsburgh. The Indictments charge 25 residents of Western Pennsylvania with narcotics trafficking and firearms violations, Acting United States Attorney Stephen R. Kaufman announced today.
Acting U.S. Attorney Kaufman said, “Years ago Hazelwood thrived along with the steel industry. But with its fortunes tied to the steel industry, it also underwent a decline. Now is it being revitalized, and incapacitating the Hazelwood Mob will lead to a safer community.”
“The Hazelwood Mob has terrorized this neighborhood and is responsible for the increase of violent crime to include murder, retaliatory shootings and illegal drug distribution,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “This investigation is another example of the commitment by the FBI and our Safe Streets program to work with our law enforcement partners to rid our neighborhoods of these violent street gangs.”
“I am grateful for the consistent cooperation, intelligence-gathering, and information-sharing between our local, state, and federal partners so that once again, we can witness the results of those collaborative efforts, which is to bring those responsible for crimes to justice,” said Wendell Hissrich, Public Safety Director, City of Pittsburgh.
The first Indictment, returned on August 31 unsealed today, names the following 24 individuals as defendants in a conspiracy to distribute drugs:
• Joshua Yarbough, 36, of Hazelwood
• Asia Andrews, 26, of McKees Rocks
• Justin Bailey, 34, of Braddock
• James Correll, 30, of Hazelwood
• Javon Grant, 20, of Hazelwood
• Gregory Griffin, 45, of Mount Oliver
• Neil Harris, 36, of Hazelwood
• Jasson Hart, 19, of Hazelwood
• Vernessa Hines, 37, of Hazelwood
• Taemon Johnson, 20, of Hazelwood
• Otis Mickens, 42, of Arlington
• Delrico Shields, 25, of Hazelwood
• Steve Smith, 30, of Hazelwood
• Cameron Snow, 23, of Hazelwood
• Aronde Stamps-Howard, 21, of Hazelwood
• Rich Stanford, 57, of Pittsburgh
• Ronald Stanford, 34, of McKeesport
• Lawrence Strothers, Sr., 38, of Hazelwood
• Michael Strothers, Jr., 25, of Hazelwood
• Michael Strothers, Sr., 48, of Hazelwood
• Moniem Strothers, 22, of Hazelwood
• William Thomas, 43, of Pittsburgh’s Hill District
• Dorian Wood, 40, of Clairton
• Jemeal Youngblood, 24, of Sheraden/HazelwoodThe named conspirators include leaders, members, drug suppliers, and associates of a violent neighborhood gang known as the “Hazelwood Mob” or the “Down Low Gang” based out of the Hazelwood neighborhood of Pittsburgh. The Indictment alleges that the defendants conspired to possess with intent to distribute and distribute at least 400 grams of fentanyl, 280 grams of crack cocaine, and quantities of heroin and fluorofentanyl from August 2019 through August 2021. The Indictment further alleges individual drug trafficking charges against Joshua Yarbough, Asia Andrews, Taemon Johnson, Lawrence Strothers, Sr., and Jemeal Youngblood. The Indictment also includes the allegation that Joshua Yarbough discharged a firearm in furtherance of a drug trafficking crime in connection with a shooting that occurred on June 13, 2021 and that he possessed ammunition after having been convicted of several crimes punishable by more than a year in prison. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.
The second Indictment, returned on August 31 and unsealed today, charges Kodi Downing, 33, of Swissvale, Pennsylvania, with one count of possessing ammunition after being convicted of a crime punishable by more than a year in prison.
For all defendants charged in the first Indictment, the law provides for a minimum sentence of 10 years’ imprisonment and up to life, a fine of not more than $10,000,000, or both. As to Kodi Downing, the law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Nicole Vasquez Schmitt prosecuted this case on behalf of the government.
The Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Pittsburgh Bureau of Police, Munhall Police Department, Pennsylvania State Police, Allegheny County Sheriff's Office, the Pennsylvania Office of the Attorney General, and Whitehall Police Department conducted the investigation leading to the Indictment in this case. This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Vernon Man Involved in Firearm Burglary of Stafford Pawn Shop is SentencedRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that DAMIEN GARCIA, 34, of Vernon, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to five years of probation for a firearm offense stemming from a Stafford pawn shop robbery in 2019.
Garcia also has pleaded guilty to related charges in state court, where he faces a 66-month sentence.
According to court documents and statements made in court, on September 15, 2019, the Connecticut State Police received a report that the Simon Says Pawn Shop, a Federal Firearms Licensee in Stafford, had been burglarized the previous evening and that several firearms had been stolen. Investigators subsequently determined that seven handguns were missing from the store. On September 17, Vernon Police developed information that Garcia was involved in the burglary and was in possession of a firearm. That evening, after officers approached Garcia and his associate, Lawrence McEwen, on West Main Street in Vernon, Garcia and McEwen attempted to flee before. After both were apprehended, officers recovered a .40 caliber Smith and Wesson pistol that McEwen discarded as he ran away. The firearm was one of the seven stolen from the Simon Says Pawn Shop on September 14.
The investigation revealed that Garcia sold the other stolen firearms to three separate drug dealers in Hartford in exchange for drugs and cash.
Garcia has been detained since his federal arrest on September 23, 2019. On December 9, 2020, he pleaded guilty to possession of a firearm by a convicted felon.
On May 12, 2021, McEwen, of Vernon, pleaded guilty to possession of a stolen firearm. He is scheduled to be sentenced on November 2.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Connecticut State Police, Vernon Police Department and Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney David J. Sheldon.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Kennedy Announces Results of VIPER InitiativeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today the results of the first 60-days of the federal Violence Prevention and Elimination Response (VIPER) Initiative, which sought to address the dramatic increase in gun violence in the City of Buffalo during the first half of 2021.
The initial 60-day period of VIPER covered the time period between July 7 and September 7, 2021. Following the implementation of VIPER, the homicide rate in the City of Buffalo decreased by over 50%. In addition, in the first four months of 2021, the number of shooting victims in Buffalo was up 100% compared to the five-year average for those same months. Following the implementation of VIPER in 2021, shooting victims in Buffalo are down 6% compared to the five-year average for those same months.
VIPER achieved its ultimate objective of saving lives by focusing on four primary objectives:
1. Enhanced Targeted Enforcement - Using every tool that we have to get all levels of law enforcement to work together to get violent gun offenders off of our streets and locked-up in jail
where they belong. Fishing with a spear, not a net.2. Enhanced Federal Prosecutions - Prioritizing the arrest and federal prosecution of:
• Prohibited persons who possess firearms and ammunition;
• Individuals who unlawfully buy, sell, or traffic (or attempt illegally to buy, sell or traffic) guns; and
• Violent criminals and drug dealers who illegally possess firearms in furtherance of their unlawful activities.3. Enhanced Cooperation and Use of Intelligence-led Policing - All Buffalo gun arrests were subject to daily, real-time review by both state and federal prosecutors.
• Layered over this aggressive reactive process, however, was a proactive collaboration between federal, state, and local law enforcement to decide who poses the greatest risk to public safety in our community.
• In addition, all levels of law enforcement in and around Buffalo, led by the USMS Fugitive Task Force, was extremely proactive in arresting fugitives from justice who had active arrest warrants for gun crimes or crimes of violence.4. Enhanced Community Engagement - As noted at outset in announcing the formation of VIPER, the increase in violence experienced over the last 18 months or so coincided with the deterioration of police and community relations. All partners have worked hard over these last 60 days through enhanced community policing and engagement efforts, to help improve the relationship between the police and the community.
During VIPER, 144 firearms arrests were made, 44 are pending federal prosecution, while 96 are pending state prosecution. The VIPER Task Force also seized 122 firearms, taking them out of the hands of those who would commit acts of violence.
“Just a few days before VIPER began, on July 5th, Shaquelle Walker Jr., a three-year-old boy was shot in Buffalo and later died of his wounds,” noted U.S. Attorney Kennedy. “His nickname was Quell, and one meaning of that word is ‘to put an end to.’ In honor of that three-year-old, every level of federal, state, and local law enforcement in this District joined forces, through VIPER, in furtherance of our shared objective of beginning to quell the violence in Buffalo. Those efforts have worked and produced some pretty impressive results. But we still have more work to do, and for that reason, I am announcing today that the VIPER initiative here in Buffalo will be extended and continued through the end of October. That means that those of us in law enforcement will continue our proactive efforts to get violent criminals off of our streets. Importantly, and as part of our effort, I am also calling on all members of our community not only to continue—but to expand—their support and participation in our effort. Together we have made great progress over these last 60 days, as violent criminals are starting to realize that they will be held accountable for their actions, and that their adversary is not just law enforcement police but every law-abiding man, woman, and child in our community.”
“The VIPER Task Force was a collaborative response to the surge in gun violence affecting communities in Western New York. I anticipated there would be additional increase in shootings as more incidents typically occur during the summer months. I believe this multi-agency initiative, along with our efforts to re-engage and improve relations with our community, has made a positive impact as the number of shootings did decrease in the City of Buffalo during this time period. The results of this task force show our commitment to preventing further violence by removing illegal guns and narcotics from our streets. I want to thank the U.S. Attorney’s Office and our local, state and federal law enforcement partners for their hard work over the past two months and their continued dedication to keeping our neighborhoods safe,” said Erie County District Attorney John Flynn.
“Over the past year, firearms-involved violent crimes in Buffalo have surged dramatically and the effects have been diverse, dangerous, and far-reaching," said Stephen Belongia, special-agent-in-charge of the FBI Buffalo Field Office. "Families, friends, and neighbors have witnessed the work of callous criminals who pull triggers for a living and are not bothered by the fragments left behind--the splintered remnants of the lives that could have been. This unrelenting crime problem never slows down and demands that we tackle it together. From the onset of the VIPER initiative, it has been our collective responsibility and goal to save lives. And over the last eight weeks we have saved lives. The statistics reflect our successes. Our strategy is defined by a valued team approach and includes a sustained, systematic, and coordinated push across all law enforcement agencies. Today, we stay committed. We will continue this battle against violence. We stand with the community and promise to maintain our efforts to make Buffalo a safer place where Buffalonians and can live, work, and enjoy lives not tethered by crime.”
“Gun violence is an epidemic that is taking a devastating physical and emotional toll on the streets of our communities across the country,” stated John B. DeVito, ATF Special Agent-in-Charge, New York Field Division. “But as this VIPER effort demonstrates, when all levels of law enforcement come together and work collaboratively, sharing information and resources, guns and the criminals terrible committing acts of violence with them, can be removed from our neighborhoods, greatly improving the quality of life for citizens living in those neighborhoods.”
“As stated at the creation of this initiative, HSI and our law enforcement partners are committed to curbing gun violence in Western New York,” Homeland Security Investigations (HSI) Acting Special Agent-in-Charge Matthew Scarpino said. “Albeit the efforts taken thus far are noteworthy, we remain cognizant of the work that still needs to be done.”
“Law enforcement’s job is to increase public safety, health, and save lives,” said DEA Special Agent-in-Charge Ray Donovan. “The VIPER Task Force has proven effective in taking guns off the streets which safeguards our communities. I commend the members of the Task Force and the United States Attorney’s Office, Western District of New York for their diligent efforts.”
“These results demonstrate how law enforcement agencies work to solve community problems,” stated Sheriff Timothy B. Howard. “The agencies were focused on getting criminals and illegally possessed weapons off the streets. Our collected efforts show in the numbers, and the people of our community should feel good about the VIPER Task Force’s work. This effort provided some momentum and, together, we can continue to removed criminals and illegally possessed weapons.”
Members of the Federal Violence Prevention and Elimination Response Task Force include the United States Attorney’s Office, under the direction U.S. Attorney James P. Kennedy, Jr.; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Federal Bureau of Investigation, Buffalo Division, under the direction of Special Agent-in-Charge Stephen Belongia; the United States Marshals Service for the Western District of New York, under the direction of Marshal Charles Salina; Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
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Two Nevada Men Charged with Defrauding Victims Out of $3.3 Million in Home Rental SchemeRead the Press Release
LAS VEGAS, Nev. – Two Las Vegas residents — Norbert Ozemena Ikwuegbundo (28) and Omniyi Jonathan Omotere (35), both citizens of Nigeria — have been indicted for defrauding people seeking to rent houses out of $3.3 million, through a scheme that involved using multiple false identities and counterfeit drivers’ licenses.
According to allegations in court documents, from about March 2018 until about September 2019, Ikwuegbundo, Omotere, and others engaged in the following fraudulent scheme:
- The defendants assumed the identities of homeowners who were advertising on websites to rent their properties.
- They posted imposter rental advertisements online at reduced rent prices, using the names and personal identifiers of true homeowners — but changing the contact information to email addresses and phone numbers controlled by the defendants.
- Using wire transmission instructions provided by the defendants through emails and text messages, prospective renters wired money for first and last month’s rent (and security deposits) to commercial businesses that provide wire transfer services to their customers.
- The defendants used various lulling techniques, such as sending false rental agreements for victims to sign, so that they would have more time to pick up the wired money.
- The defendants laundered proceeds from the scheme by using some of the stolen money to buy cars at auction.
Ikwuegbundo and Omotere are both charged with one count of conspiracy to commit wire fraud. In addition, Omotere is charged with one count of wire fraud, while Ikwuegbundo is charged with two counts of wire fraud, one count of possessing equipment used to make counterfeit drivers’ licenses, one count of concealment money laundering, and one count of aggravated identity theft.
Ikwuebundo made his initial court appearance on August 11, 2021, before U.S. Magistrate Judge Elayna J. Youchah. Omotere made his initial appearance today before U.S. Magistrate Judge Nancy J. Koppe. A jury trial has been scheduled for October 18, 2021, before U.S. District Judge Gloria M. Navarro. If convicted, Ikwuegbundo faces a statutory maximum penalty of 97 years in prison; and Omotere faces a statutory maximum penalty of 40 years in prison.
Acting U.S. Attorney Christopher Chiou for the District of Nevada, Special Agent in Charge Francisco Burrola of Homeland Security Investigations (HSI), and Special Agent in Charge Charles R. Beckmeyer of the U.S. Department of State’s Diplomatic Security Service (DSS) Los Angeles Field Office made the announcement.
This case was investigated by HSI and DSS. Assistant U.S. Attorney Kimberly M. Frayn is prosecuting the case.
A criminal indictment is merely an allegation. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Two Charleston Men Sentenced to Prison for Federal Drug CrimesRead the Press Release
CHARLESTON, W.Va. -- Two Charleston men were sentenced today to prison for federal drug crimes. Darius Coles, 23, and Joshua Lawson, 31, were sentenced to 78 and 60 months in prison respectively.
According to court documents, Coles previously pleaded guilty to distribution of methamphetamine and admitted that he met a confidential informant at the Go-Mart near Bigley Avenue in Charleston to collect $1,200 for an outstanding drug debt on January 27, 2021. Coles collected the $1,200 and fronted the confidential informant an additional amount of methamphetamine to be paid for later.
According to the plea agreement and statements made in court, Lawson previously pleaded guilty to possession with intent to distribute five grams or more of methamphetamine and admitted that after he left a meeting with his methamphetamine source of supply on December 27, 2020, officers with the Charleston Police Department conducted a traffic stop on his vehicle in the 600 block of Ruffner Avenue. An officer performed a pat down of Lawson and found an ounce of methamphetamine hidden in his groin area. Lawson admitted he intended to distribute the methamphetamine.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Charleston Police Department, the Metropolitan Drug Enforcement Network Team (MDENT), the U.S. Marshals Service and the West Virginia State Police.
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentences. Assistant United States Attorney Monica Coleman handled the prosecutions.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-00032.
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Tulsa Resident Pleads Guilty to Robbery in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Hunter Ray Kelley, 20, entered a guilty plea to Robbery in Indian Country in violation of 18 United States Code Sections 1151, 1152, and 2111, punishable by imprisonment for a period of no more than 15 years and/or a fine of up to $250,000.00, a term of supervised release to be determined by the Court, and a special assessment fee in the amount of $100.00.
The Indictment alleged that on or about May 13, 2021, the defendant went inside a convenience store brandishing what appeared to be a tan AR-15-style rifle. The defendant pointed the rifle at the clerk and demanded money. When the defendant left the store, it was with cash, cartons of cigarettes, loose cigars and cigarillos, and lighters. The defendant then led police officers and deputy sheriffs on a high-speed chase before he stopped and surrendered.
The charges arose from an investigation by the Okmulgee Police Department, the Okmulgee Sheriff’s Office, and the Federal Bureau of Investigation.
The Honorable Jodi Warmbrod Dishman, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant U.S. Attorney Anthony C. Marek represented the United States.
Tulsa Man Sentenced for Shooting a Minor During an Illegal Handgun SaleRead the Press Release
A Tulsa man who shot and killed a minor during an illegal firearms sale was sentenced Thursday in federal court, announced Acting U.S. Attorney Clint Johnson.
U.S. District Judge Gregory K. Frizzell sentenced Carl John Irons Jr., 20, to 10 years in federal prison followed by three years of supervised release. On June 9, 2021, Irons pleaded guilty to voluntary manslaughter in Indian Country.
“An illegal gun sale ended in tragedy when a 16-year-old was killed in an exchange of gunfire,” said Acting U.S. Attorney Clint Johnson. “Too many families have lost children to gun violence. These shootings are a waste of young lives. My thoughts are with this family as they continue to grieve the loss of this young man.”
In a plea agreement, Irons admitted to shooting and killing the minor victim on Feb. 4, 2020. The incident occurred when two groups met for an illegal gun sale. A conflict arose between the two groups, leading to an exchange of gunfire. The victim, who was in the opposing group, was shot in the head and body and died at an area hospital on Feb. 8, 2020. The crime occurred at an apartment complex on South Mingo Road in Tulsa.
The victim was a citizen of the Cherokee Nation, and the crime was committed within the boundaries of the Muscogee Nation.
The Tulsa Police Department and FBI conducted the investigation. Assistant U.S. Attorney Eric O. Johnston prosecuted the case.
Trio of Cyber Criminals Plead Guilty to Conspiracy to Commit Fraud and Aggravated Identity TheftRead the Press Release
Orlando, Florida – Alessandro Doreus (28, North Miami) today pleaded guilty to one count of conspiracy to possess 15 or more access devices with the intent to defraud and two counts of aggravated identity theft. His co-defendants, Jean Elie Doreus Jovin (33, Loganville, GA) and Djouman Doreus (29, North Miami), had pleaded guilty to the same charges last month. All three defendants face a maximum penalty of five years in federal prison for the conspiracy charge, and a minimum mandatory penalty of two years in federal prison for the aggravated identity theft charges.
According to the plea agreements, from at least 2015 through 2020, Jovin, Alessandro Doreus, and Djouman Doreus conspired to knowingly, and with intent to defraud, possess tens of thousands of counterfeit and unauthorized access devices—including the names, Social Security numbers, account numbers, usernames, and passwords of identity theft victims. The conspirators frequently exchanged these counterfeit and unauthorized access devices—in bulk—among themselves. For example, in November 2018, Jovin emailed Alessandro Doreus a file that contained data for approximately 58,700 credit cards. The conspirators also routinely sent each other messages that contained scores of names, Social Security numbers, and dates of birth of identity theft victims.
The conspirators engaged in a number of fraudulent schemes using the personally identifiable information (PII) that they had amassed. They fraudulently opened and used numerous financial accounts in the names of identity theft victims. They also used stolen or fraudulently obtained credit card information to pay fake vendor accounts that Jovin opened and controlled. In addition, they used the names and Social Security numbers of identity theft victims to file fraudulent tax returns and obtain tax refunds to which they were not entitled.
Jovin also purchased multiple compromised computer server credentials (including usernames and passwords) on a dark web marketplace and used those compromised server credentials to remotely and fraudulently access computer servers. At times, Jovin shared these compromised server credentials with Alessandro Doreus.
To make it difficult for authorities to trace and attribute fraudulent activity to them, the conspirators created dozens of email accounts—one of which was [email protected]. The conspirators used these email accounts exclusively or primarily to perpetuate their fraud scheme.
In August 2020, the FBI executed a search warrant at Alessandro Doreus’s home and seized notebooks that contained the PII of more than 300 identity theft victims and credit cards issued in the names of identity theft victims. The FBI also seized $490,365, which are proceeds obtained from this conspiracy.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. It is being prosecuted by Assistant United States Attorney Emily C. L. Chang.
Three San Francisco Garbage Companies Admit Bribery and Pay $36 Million to Resolve Federal InvestigationRead the Press Release
SAN FRANCISCO – Three trash disposal companies that serve San Francisco, all subsidiaries of Recology Inc., were charged today in federal court with conspiracy to commit honest services fraud and have agreed to pay $36 million in criminal penalties, to revamp their corporate structure, and to cooperate fully in ongoing law enforcement and regulatory investigations, announced Acting United States Attorney Stephanie M. Hinds, Federal Bureau of Investigation Special Agent in Charge Craig D. Fair, and Internal Revenue Service Criminal Investigation Acting Special Agent in Charge Michael Daniels.
“San Francisco citizens were victimized for years in a bribery scheme involving public contractors and a powerful, corrupt San Francisco public official,” announced Acting United States Attorney Stephanie M. Hinds. “San Francisco citizens expect and deserve honest services from its government. Today, the SF Recology Group and its parent company Recology, Inc. are taking positive steps to rectify that flagrant wrong and have committed to full cooperation in the ongoing investigation into San Francisco City Hall corruption.”
“Today’s resolution is the result of years of hard work by the FBI and its partners to combat corruption in San Francisco,” said Craig D. Fair, Special Agent in Charge of the FBI San Francisco Field Office. “While engaging in bribery, SF Recology Group prioritized money over the trust of their customers. The FBI remains committed to seeking out instances of public corruption and holding those who violate federal law accountable for their actions.”
“The significant amount of illegal kickbacks SF Recology Group paid to Mohammed Nuru demonstrates a corrupt and reprehensible cheating of the American public,” said IRS Criminal Investigation Acting Special Agent in Charge Michael Daniels. “It is unacceptable and illegal to help yourself to public funds, but if you do, know this: IRS Criminal Investigation will be there waiting to seek justice on behalf of the citizens of San Francisco.”
The federal information filed today alleges that the companies Recology San Francisco, Sunset Scavenger Company, and Golden Gate Disposal & Recycling Company – collectively referred to as the SF Recology Group – conspired to bribe the former Director of San Francisco’s Department of Public Works (DPW), Mohammed Nuru. The entities of the SF Recology Group are each privately-held companies of their parent company Recology Inc., which is headquartered in San Francisco (the City) and provides trash collection services for the City’s residents, businesses, and government. During the conspiracy, Mohammed Nuru presided as Director over DPW. DPW had an annual budget of more than $350 million and was one of San Francisco’s largest municipal operations. Nuru had substantial influence over the SF Recology Group’s business with the City, including the ability to influence its contract rates and to approve or deny its proposed operational changes.
The criminal investigation and prosecution against the SF Recology Group is being resolved with a deferred prosecution agreement. In the agreement, which is subject to court approval, the SF Recology Group admits the allegations against it and that it conspired to bribe DPW Director Nuru from 2014 through January 2020, when Nuru was arrested and charged. The SF Recology Group at the time employed Paul Giusti as its Group Government and Community Relations Manager. Giusti reported to John Porter, the Vice President and General Manager of the Group and, before Porter assumed that position, to Porter’s predecessor.
In the agreement, the SF Recology Group admits that Giusti and others directed a stream of benefits to Nuru, including financial contributions, services, gifts, and other things of value, in exchange for Nuru taking official actions and positions favoring the SF Recology Group’s business and contracts with the City. The payments and benefits that the SF Recology Group provided to Nuru included the following: (1) $150,000 per year, in $30,000 installments, from 2014 through the end of 2019, to a San Francisco non-profit organization knowing that Nuru could ultimately control how the money was spent; (2) $60,000 to fund Nuru’s annual DPW holiday bash from 2016 to 2019, disguised as “holiday donations” to the Lefty O’Doul’s Foundation for Kids; (3) a job for Nuru’s son at a SF Recology Group company; (4) SF Recology Group-funded internships for Nuru’s son in the summers of 2017 and 2018 at a San Francisco non-profit on whose board Giusti served; and (5) other gifts, including a two-night stay at a New York hotel for Nuru and another high-ranking city official totaling $865.34 per room. The SF Recology Group admits that Giusti made these bribes with the knowledge and approval of his supervisor Porter and, before Porter was Giusti’s supervisor, with the knowledge and approval Porter’s predecessor.
The deferred prosecution agreement requires the SF Recology Group to pay a $36 million criminal fine. In addition to the $36 million fine, the deferred prosecution agreement obligates Recology, Inc. to fully cooperate with government investigations, to implement an enhanced corporate compliance program, and to provide annual reports to the United States Attorney’s Office on implementation and remediation.
If Recology, Inc. or the SF Recology Group fail to completely perform or fulfill each of their obligations under the agreement during the agreement’s three year term, the U.S. Attorney’s Office can pursue criminal charges for the charged offense and other conduct.
Dates for arraignment of the SF Recology Group and further proceedings before the United States District Court have not yet been set.
Giusti and Porter were each charged earlier in this investigation. Giusti was charged with bribery and money laundering on November 18, 2020, and he recently pleaded guilty to one count of conspiracy to bribe a local official and commit honest services fraud and agreed to cooperate with federal investigators (case # 21-0294 WHO). On April 13, 2021, Porter was also charged with bribery and money laundering (case # CR 21-70609 MAG). Porter’s criminal prosecution remains underway.
The case is being prosecuted by the Corporate and Securities Fraud Section of the U.S. Attorney’s Office. The case is being investigated by the FBI and IRS Criminal Investigation.
Three Operators of Financial Services Firm Indicted for $155 Million Investment FraudRead the Press Release
BROOKLYN, NY – An indictment was unsealed yesterday in federal court in Brooklyn charging three former operators of financial services firm Biscayne Capital with conspiring to defraud investors and financial institutions in an international fraud scheme that caused more than $155 million in investor losses. Roberto Gustavo Cortes Ripalda (“Cortes”), Fernando Haberer Bergson (“Haberer”) and Ernesto Heraclito Weisson Pazmino (“Weisson”) are charged with conspiracy to commit wire fraud, bank fraud and money laundering. Weisson was arrested yesterday in Florida, made his initial appearance yesterday afternoon in federal court in Miami and was ordered held pending a detention hearing. Cortes and Haberer were arrested yesterday in Spain and Argentina, respectively.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, Kenneth A. Polite Jr., Assistant Attorney General of the Justice Department’s Criminal Division, Darrell J. Waldon, Acting Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, Washington, D.C. Field Office (IRS-CI), and Raymond Villanueva, Special Agent in-Charge, Homeland Security Investigations, Washington, D.C. Field Office (HSI), announced the arrests and charges.
“As alleged, the defendants orchestrated a complex and fraudulent scheme to repeatedly mislead investors about the nature and performance of their investments. The defendants enriched themselves with millions of dollars in investor funds while making misrepresentations that caused more than $155 million in investor losses,” stated Acting United States Attorney Kasulis. “The charges demonstrate this Office’s commitment to ensuring integrity in the management of investor funds and prosecuting those who commit fraud to enrich themselves at their investors’ expense.” Ms. Kasulis also expressed her appreciation to the IRS-CI Boston Field Office for their assistance with the case.
“The charges unsealed yesterday reflect the seriousness of criminal activities carried out by the defendants. Our agency, and particularly the D.C. based Global Illicit Financial Team, remains dedicated to rigorously investigating criminal organizations that jeopardize the integrity of our financial system,” stated IRS-CI Acting Special Agent-in-Charge Waldon.
“Financial schemes like the one alleged here not only damage the lives of those victimized by the fraud, but the international money laundering involved poses a direct threat to the security of the U.S. financial system,” stated HSI Special Agent-in-Charge Villanueva. “HSI is committed to working with its law enforcement and private sector partners to investigate these criminal enterprises and stop them in their tracks.”
As alleged in the indictment, Biscayne Capital was a financial services company founded in approximately 2005 and maintained offices in Florida, Ecuador, Argentina, the Bahamas and Uruguay. Between approximately 2013 and 2018, Cortes, Haberer and Weisson, together with others, orchestrated a scheme to defraud Biscayne Capital clients and financial institutions through a series of material misrepresentations and omissions about how Biscayne Capital client funds would be used. The defendants and their co-conspirators used the funds they fraudulently obtained from clients and financial institutions to pay other investors, cover Biscayne Capital expenses and pay themselves millions of dollars.
The indictment further alleges that the defendants and their co-conspirators falsely represented to some Biscayne Capital clients that the clients’ investments in certain private investment products (referred to in the indictment as “Proprietary Products”) would be used to finance the development of real estate projects. In reality, the defendants and their co-conspirators used clients’ investments to pay other Biscayne Capital clients. In some cases, the defendants and their co-conspirators invested in Proprietary Products without the clients’ knowledge and provided clients with fraudulent account statements that showed fake investments. The defendants and others also conspired to fraudulently induce financial institutions to extend short-term credit to help further the scheme. Haberer then generated fake letters of authorization to repay the banks out of Biscayne Capital clients’ accounts without those clients’ authorization.
In approximately September 2018, the scheme collapsed, and Biscayne Capital went into liquidation, resulting in more than $155 million in losses to Biscayne Capital clients.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Business and Securities Fraud Section and the Criminal Division’s Money Laundering and Asset and Recovery Section (“MLARS”) and Fraud Section. Assistant United States Attorneys David Gopstein and Benjamin Weintraub of the Eastern District of New York, MLARS Trial Attorneys Randall Warden and Shaunik R. Panse and Fraud Section Trial Attorney John (Fritz) Scanlon are in charge of the prosecution. The Justice Department’s Office of International Affairs provided significant assistance in this matter.
The Defendants:
ROBERTO GUSTAVO CORTES RIPALDA
Age: 54
Madrid, SpainFERNANDO HABERER BERGSON
Age: 48
ArgentinaERNESTO HERACLITO WEISSON PAZMINO
Age: 53
Miami, FloridaE.D.N.Y. Docket No. 21-CR-458 (DG)
Three Operators of Financial Services Firm Charged and Arrested in Alleged $155 Million Investment Fraud SchemeRead the Press Release
A three-count criminal indictment was unsealed yesterday in federal court in the Eastern District of New York charging Roberto Gustavo Cortes Ripalda, 54, of Madrid, Spain; Fernando Haberer Bergson, 48, of Buenos Aires, Argentina; and Ernesto Heraclito Weisson Pazmino, 53, of Miami, Florida, with conspiring to defraud investors and financial institutions as part of an international fraud scheme stretching through the United States, South America, and Europe. The defendants are each charged with conspiracy to commit wire fraud, conspiracy to commit bank fraud, and conspiracy to commit money laundering. Federal agents arrested Weisson in Miami yesterday. Cortes and Haberer were also arrested yesterday in Spain and Argentina, respectively.
According to the indictment, Cortes and Weisson founded Biscayne Capital, a financial services company, in 2005. Between approximately 2013 and 2018, Cortes, Haberer, and Weisson, together with others, orchestrated a scheme to defraud Biscayne Capital clients and financial institutions through a series of material misrepresentations and omissions about, among other things, how Biscayne Capital client funds would be used. The defendants and their co-conspirators used the funds they fraudulently obtained from clients and financial institutions to pay other investors, cover Biscayne Capital expenses, and pay themselves millions of dollars.
The indictment further alleges the defendants and their co-conspirators falsely told some Biscayne Capital clients that the clients’ investments in certain private investment products (referred to in the indictment as “Proprietary Products”) would be used to finance the development of real estate projects, when in fact, the defendants and their co-conspirators used the clients’ investments to pay other Biscayne Capital clients. The indictment also alleges the defendants and their co-conspirators invested certain clients’ money in Proprietary Products without those clients’ knowledge, and then provided those clients with fraudulent account statements that showed fake investments. The defendants and others also conspired to fraudulently induce financial institutions to extend short-term credit to help further the scheme. Haberer then generated fake letters of authorization to repay the banks out of Biscayne Capital clients’ accounts without those clients’ authorization.
By September 2018, the alleged scheme collapsed, and Biscayne Capital went into liquidation, causing more than $155 million in losses to Biscayne Capital clients.
Weisson had an initial court appearance yesterday before U.S. Magistrate Judge Chris M. McAliley of the U.S. District Court for the Southern District of Florida. If convicted of all counts, each defendant faces a maximum penalty of 70 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Jacquelyn M. Kasulis of the Eastern District of New York; Acting Special Agent in Charge Darrell J. Waldon of the IRS-Criminal Investigation (IRS-CI) Washington Field Office; Special Agent in Charge Joleen D. Simpson of the IRS-CI Boston Field Office; and Special Agent in Charge Raymond Villanueva of the Homeland Security Investigations (HSI) Washington Field Office made the announcement.
The IRS-CI Global Illicit Financial Team and HSI are investigating the case.
Trial Attorneys Randall Warden and Shaunik R. Panse of the Justice Department’s Money Laundering and Asset Recovery Section (MLARS); Trial Attorney John (Fritz) Scanlon of the Justice Department’s Fraud Section; and Assistant U.S. Attorneys David Gopstein and Benjamin Weintraub of the U.S. Attorney’s Office for the Eastern District of New York are prosecuting the case.
The Justice Department’s Office of International Affairs provided significant assistance in this case.
MLARS’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Talbot County Cocaine Supplier Sentenced to 10 Years in Federal Prison for Narcotics ChargesRead the Press Release
Baltimore, Maryland – U.S. District Judge Stephanie A. Gallagher sentenced Tavon Dwayne Banks, age 37, of Cambridge, Maryland, to 10 years in federal prison, followed by five years of supervised release, for conspiracy to distribute narcotics and possession with the intent to distribute cocaine and cocaine base.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; and Talbot County Sheriff Joseph Gamble.
According to his guilty plea, during an investigation that began in September 2019, the Talbot County Narcotics Task Force and Homeland Security identified Banks as a multi-ounce cocaine supplier through hundreds of intercepted telecommunications targeted towards a co-conspirator. Banks distributed narcotics throughout Talbot and Dorchester Counties. For example, on June 25, 2020, Banks and a co-conspirator discussed arranging a meeting with a cocaine supplier. Investigators believe that Banks and his co-conspirator combined funds to purchase five ounces of cocaine to refresh their supply.
On July 16, 2020, investigators observed Banks and a co-conspirator meet with an unknown narcotics supplier at a predetermined location to obtain cocaine. Additionally, investigators also observed Banks visiting an Easton, Maryland stash house and conduct suspected drug transactions.
On July 17, 2020, investigators executed a search warrant at Banks’ residence. As a result of the search warrant, investigators recovered $30,100 located under a couch cushion, 196 grams of cocaine, 18.2 grams of crack cocaine, a digital scale, bags with trace amounts of a white powdery substance, and a cell phone.
A forensic examination of the cell phone revealed messages and photos relating to Banks’ distribution of cocaine, including a photo of Banks cooking crack cocaine.
Acting United States Attorney Jonathan F. Lenzner commended HSI, the Talbot County State’s Attorney’s Office, the Dorchester County State’s Attorney’s Office, and the Talbot County Sheriff’s Office for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Kim Y. Oldham, who prosecuted the case.
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South Texas man sentenced for harboring over 200 in inhumane conditionsRead the Press Release
BROWNSVILLE, Texas – A 35-year-old Brownsville resident has been ordered to federal prison for harboring illegal citizens within the United States, announced Acting U.S. Attorney Jennifer B. Lowery.
Santos De Leon-Cardenas pleaded guilty April 29.
Today, U.S. District Judge Ferando Rodriguez Jr. ordered him to serve a 30-month sentence to be immediately followed by three years of supervised release. In handing down the sentence, Judge Rodriguez noted De Leon-Cardenas harbored 57 non-citizens in crowded and unsanitary conditions.
On March 22, authorities arrived at a hotel room in Brownsville believed to be used to harbor undocumented individuals. They conducted surveillance and were eventually able to apprehend De Leon-Cardenas as well as 57 others, two of whom were unaccompanied minors. De Leon-Cardenas hid them in a single one-bedroom hotel room with little ventilation.
De Leon-Cardenas will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Border Patrol and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Cameron County Precinct 2 Constables Office. Assistant U.S. Attorney Edgardo J. Rodriguez prosecuted the case.
South Korean National Pleads Guilty to Federal Criminal Charge for Poaching Wild Succulent Plants for Illegal Exportation to AsiaRead the Press Release
LOS ANGELES – A South Korean national who was extradited from South Africa pleaded guilty today to a federal criminal charge for attempting to illegally export to Asia live Dudleya succulent plants worth more than $600,000 that he and his co-schemers had pulled out of the ground at remote state parks in Northern California.
Byungsu Kim, 46, pleaded guilty to one count of attempting to export plants taken in violation of state law.
According to his plea agreement, on October 11, 2018, Kim and co-defendants Youngin Back, 47, and Bong Jun Kim, 46, traveled by car from Los Angeles International Airport to Crescent City, California. From October 14 to October 16, Kim and the co-defendants harvested numerous Dudleya plants from DeMartin State Beach in Klamath, California, and from Del Norte Coast Redwoods State Park.
Kim admitted he knew the taking of the Dudleya plants was unlawful and that he had conducted internet searches on his smartphone for “poaching succulents” and “dudleya” and had read a press release regarding the arrest and convictions of three other Dudleya poachers.
On October 22, 2018, Kim and the co-defendants traveled from Northern California to a nursery in Vista and unloaded the Dudleya plants that they had poached during the previous week. The following day, the men traveled to Russian Gulch State Park in Mendocino County, where, wearing backpacks and using hand-held radios to communicate, they pulled additional Dudleya plants out of the ground before returning once again to the Vista nursery.
Prior to the plants’ shipment, Byungsu Kim scheduled an inspection with a county agriculture official at the Vista nursery and falsely told her the government-issued certificate necessary for the plants’ exportation should list 1,397 Dudleya plants (259 pounds/117.5 kilograms) for export to South Korea and that the “place of origin” of the plants was San Diego County.
The defendants then transported the plants to a commercial exporter in Compton, to whom Byungsu Kim intended to present the fraudulently obtained certificate so the Dudleya plants could be smuggled to South Korea. When the defendants left, local law enforcement executed a search warrant at the cargo shipping company and found more than 3,000 Dudleya plants in boxes that were labeled “Rush” and “Live Plants.” These were the plants the defendants had pulled out of the ground from public lands in Northern California.
Kim admitted that at the time that he and the co-defendants engaged in the illegal conduct, they did not have a scientific permit nor a federal permit that would allow them to harvest Dudleya plants. He also admitted to being the scheme’s organizer.
Although California law enforcement officials had confiscated Kim’s passport following his arrest on state charges relating to his October 2018 conduct, Kim fraudulently obtained a new South Korean passport in January 2019 by falsely claiming to the South Korean Consulate in Los Angeles that he had lost his passport.
In May 2019, soon after Kim learned of the federal criminal charges pending against him in this case, he and Back fled to Mexico on foot through the Tijuana-San Ysidro border crossing. Using his fraudulently obtained passport, Kim then flew with Back from Mexico to China, and then flew from China to South Korea.
Kim was arrested in South Africa in October 2019 for charges related to a similar scheme in which he illegally collected plants from protected areas in that nation to export to South Korea. Kim pleaded guilty to the criminal charges in South Africa and was extradited to the United States in October 2020. He has remained in federal custody since that time.
United States District Judge George H. Wu has scheduled a January 13, 2022 sentencing hearing, at which time Kim will face a statutory maximum sentence of five years in federal prison.
Bong Jun Kim pleaded guilty in July 2019 to one count of attempting to export plants taken in violation of state law. He served four months in federal custody and was released in October 2019 after Judge Wu imposed a sentence of time served.
Back remains a fugitive.
The California Department of Fish and Wildlife, the United States Fish and Wildlife Service, Homeland Security Investigations, U.S. Customs and Border Protection, San Diego County’s Department of Agriculture, Weights and Measures, the U.S. Department of Agriculture, and the California State Parks investigated this matter. The Justice Department’s Office of International Affairs provided significant assistance in securing the defendant’s extradition from South Africa.
Assistant United States Attorneys Matthew W. O’Brien and Dennis Mitchell of the Environmental and Community Safety Crimes Section are prosecuting this case.
Six indicted on drug chargesRead the Press Release
WHEELING, WEST VIRGINIA - Six Ohio and West Virginia residents are facing drug charges, Acting United States Attorney Randolph J. Bernard announced.
The indictment charges six people with one count of “Conspiracy to Distribute and Possess with Intent to Distribute Cocaine Base, Cocaine Hydrochloride, Methamphetamine, and Heroin” and several other drug charges. The six are accused of working together to sell the drugs in Ohio County, in the Southern District of Ohio and elsewhere from June 2019 to August 2021. Those charged are:
- William Hinton, also known as “Abu Twoseventeen.” 48, of Wheeling, West Virginia
- Jontue Coleman, also known as “J,” 44, of Cleveland, Ohio
- Samantha Frost, 38, of Wheeling, West Virginia
- Myron Henderson, also known as “Charlie,” 40, of Euclid, Ohio
- Kaprice D. Russell, also known as “Kap,” 33, of Steubenville, Ohio
- Melissa Joann Hibbitts, 35, of Wheeling, West Virginia
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, the Belmont County, Ohio, Sheriff’s Office, and the St. Clairsville Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Sioux City Man to a Federal Prison for Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced in federal court in Sioux City, Iowa, on September 8, 2021, to a total of twenty years in prison.
Hugo Arechiga Torres, 40, most recently from Sioux City, Iowa, but formerly from Washington and South Dakota, was sentenced on September 8, 2021, after having pled guilty on February 18, 2021, to conspiracy to distribute methamphetamine. Torres was previously convicted three times in South Dakota for felony drug trafficking offenses, including a federal case in 2014.
At his plea and sentencing hearings, evidence showed that between December 2019 and August 2020, Torres and others distributed at least 15 kilograms of methamphetamine in the Sioux City area, including Sioux Falls, South Dakota. On August 13, 2020, law enforcement used a confidential informant to purchase ten pounds of methamphetamine from Torres. On August 17, 2020, law enforcement used a confidential informant to make a $13,000 drug debt payment to Torres, and obtained another two pounds of methamphetamine from him. Upon his arrest the next day, officers seized $754 from Torres, which was found to include five of the pre-serialized $100 bills provided to Torres, as part of the $13,000 drug debt payment. Torres committed this offense while under terms of federal supervised release for a similar drug trafficking offense in the District of South Dakota.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Torres was sentenced to 210 months’ imprisonment and must serve a seven-year term of supervised release following the imprisonment. Torres committed was also sentenced to 60-months’ imprisonment for violation of his federal supervised release, 30 months of which must be served consecutive to, and 30 months concurrent with, his 210-month sentence. Torres remains in custody of the United States Marshal until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; and the Woodbury County Attorney’s Office, as well as the South Dakota Division of Criminal Investigation and the Sioux Falls Area Drug Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4067. Follow us on Twitter @USAO_NDIA.
Seven Defendants Arrested in Joint State/Federal Investigation into Myrtle Beach Drug Trafficking ConspiracyRead the Press Release
Myrtle Beach, South Carolina --- Acting United States Attorney M. Rhett Dehart announced today that a joint team of dozens of federal, state, and local law enforcement officers, led by the U.S. Drug Enforcement Administration (DEA), arrested seven individuals who have been indicted in federal court and face charges related to an interstate drug trafficking organization that operated out of Myrtle Beach and Kingstree.
The investigation specifically targeted members of this drug trafficking organization based on sales of large quantities of dangerous drugs, including heroin, methamphetamine, cocaine, and crack cocaine, and use of firearms in furtherance of their drug trafficking crimes.
The following defendants were arrested today and charged in a recently unsealed federal indictment:
- LEROY JUNIOR CUNNINGHAM, a/k/a “Black,” a/k/a “Chris,” 45, of Myrtle Beach, is charged with conspiracy to possess with intent to distribute and distribute 100 grams or more of a mixture or substance containing a detectable amount of heroin, a Schedule I controlled substance, and 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine and 500 grams or more of a mixture or substance containing a detectable amount of cocaine, Schedule II controlled substances. This charge carries a potential penalty of 10 years to Life imprisonment.
- TYRONE BROWN, a/k/a “Chief,” 46, of Myrtle Beach, is charged with conspiracy to possess with intent to distribute and distribute 100 grams or more of a mixture or substance containing a detectable amount of heroin, a Schedule I controlled substance, and 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine and 500 grams or more of a mixture or substance containing a detectable amount of cocaine, Schedule II controlled substances. This charge carries a potential penalty of 10 years to Life imprisonment.
- ALEX LETROY GLOVER, 41, of Conway, is charged with conspiracy to possess with intent to distribute and distribute 100 grams or more of a mixture or substance containing a detectable amount of heroin, a Schedule I controlled substance, and 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance. This charge carries a potential penalty of 5 to 40 years imprisonment.
- TONYA GRANT MITCHELL, 45, of Andrews, is charged with conspiracy to possess with intent to distribute and distribute 500 grams or more of a mixture or substance containing a detectable amount of cocaine, a Schedule II controlled substance. This charge carries a potential penalty of 5 to 40 years imprisonment.
- DERRICK LEE CUNNINGHAM, a/k/a “Ruby Tuby,” 43, of Myrtle Beach, is charged with conspiracy to possess with intent to distribute and distribute a quantity of heroin, a Schedule I controlled substance, 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine and a quantity of cocaine, Schedule II controlled substances. This charge carries a potential penalty of 5 to 40 years imprisonment.
- CAMERON JOHN KAZIMIERCZAK, a/k/a “Cam,” 30, of Myrtle Beach, is charged with conspiracy to possess with intent to distribute and distribute a quantity of methamphetamine and a quantity of cocaine, Schedule II controlled substances. This charge carries a potential penalty of up to 20 years imprisonment.
- MARLIN CARLOS MCKNIGHT, a/k/a “Martin Carlos McKnight,” 46, of Goose Creek, is charged with conspiracy to possess with intent to distribute and distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a quantity of cocaine base (commonly referred to as “crack cocaine”), and a quantity of cocaine, Schedule II controlled substances. This charge carries a potential penalty of 5 to 40 years imprisonment.
Three defendants are still at large, including JAMEL RASHAD SMALL, 32, of Myrtle Beach. Charges against the two other defendants remain sealed at this time.
This investigation is the latest in a series of joint state/federal operations aimed at curbing violent crime and drug overdoses in the Myrtle Beach area. In 2020 and 2021, Operation New Optix resulted in drug charges against 34 defendants, 22 of whom have pled guilty to date. In 2017, Operation Silver Sunset targeted 29 associates of a violent. In 2018, Operation Rise and Shine targeted 33 associates of a related gang. In 2020, Operation Broken Branch targeted 31 members of a drug trafficking organization in the Cedar Branch area of Horry County.
Agents with DEA’s Florence Resident Office quarterbacked this investigation with significant participation from the following agencies: Myrtle Beach Police Department, Horry County Police Department, North Myrtle Beach Department of Public Safety, Florence County Sheriff’s Office, Horry County Sheriff’s Office, South Carolina State Law Enforcement Division (SLED), United States Marshals Service, and the Kingstree Police Department.
“The United States Attorney’s Office continues to vigorously prosecute major drug trafficking organizations, and the charges here speak to those efforts,” said Acting U.S. Attorney DeHart. “I want to thank all our federal and local partners for the countless hours they have spent working to dismantle these organizations across the Myrtle Beach area. They continue to put themselves in harm’s way to make our communities safer.”
“These arrests are a direct result of the dedicated efforts between DEA and its law enforcement partners,” said the Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “Heroin, methamphetamine, cocaine and crack are dangerous drugs that pose a clear and present danger to any community. The Myrtle Beach area is safer today because these poly-drug traffickers have been removed from the streets.”
“Today is another example of what can be accomplished using the outstanding partnerships between federal, state, and local law enforcement,” said Chief Amy Prock of the Myrtle Beach Police Department. “The dedication displayed by these officers and agents, along with the support we receive from our community members, shows the continued commitment we all have in addressing the behaviors of those who wish to cause harm in our community.”
Special Assistant United States Attorney Ryan Waller who works jointly with the 15th Circuit Solicitor’s Office and Assistant United States Attorney Everett McMillian, Lead Task Force Attorney for the Organized Crime Drug Enforcement Task Force (OCDETF), are prosecuting the case.
OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Acting U.S. Attorney DeHart stated that all charges against these defendants are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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San Diego Man Indicted for Interstate Domestic Violence After Allegedly Murdering BoyfriendRead the Press Release
A San Diego man who allegedly murdered his boyfriend in Hale County, Texas is now facing a federal interstate domestic violence charge, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
On Wednesday, a federal grand jury returned a one-count indictment against 23-year-old Alexander Yoichui Duberek, changing interstate domestic violence. Mr. Duberek, wo is currently in state custody on a related murder charge, is expected to make his initial appearance in federal court next week.
According to the indictment, Mr. Duberek allegedly traveled across state lines with intent to kill his dating partner, identified in court documents as “John Doe,” on Oct. 31, 2020.
The state alleges that Mr. Duberek then stabbed to death his 30-year-old boyfriend, whose body was later found on the side of FM 400 the following day.
An indictment is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Duberek is presumed innocent until proven guilty.
If convicted of the federal charges, he faces a sentence of up to life in federal prison.
The Texas Rangers and the Hale County Sheriff’s Office conducted the investigation with the assistance of the Texas Department of Public Safety and the Federal Bureau of Investigation’s Dallas Field Office. Assistant U.S. Attorney Callie Woolam is prosecuting the case.
Rocky Mount Man Sentenced to 10 Years for Federal Firearms ViolationsRead the Press Release
RALEIGH, N.C. – A Rocky Mount man was sentenced to 120 months in prison for stealing ammunition and firearms in Elm City, North Carolina. Cecil Terrance Reams, 48, entered his guilty plea on June 8, 2021.
According to court documents and other information presented in court, Reams, his co-defendant, Brandon Shane Reams, 42, and another male subject, broke into a residence in Elm City, North Carolina, in the early morning hours of August 29, 2018. The Wilson County Sheriff’s Office responded to the scene and determined the group stole three rifles, an undetermined amount of ammunition, and a television from the property. Following the break-in, Cecil and Brandon Reams sold one of the stolen rifles to a convicted felon in Rocky Mount, North Carolina. Officers with the Rocky Mount Police Department recovered the stolen rifle after executing a search warrant at the buyer’s residence pursuant to a separate investigation. At the time of the break-in, Cecil and Brandon Reams were both convicted felons serving active state probation sentences and were required to wear ankle monitors as a condition of their probation. Officers reviewed both subjects’ ankle monitor movements, which showed both men at the Elm City property at the time of the break-in. Reams was arrested on state charges on August 29, 2018 and moved into federal custody on September 24, 2019.
Brandon Reams was sentenced to 60 months in prison on August 4, 2021.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Wilson County Sheriff’s Office, the Rocky Mount Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case and Assistant U.S. Attorney Aakash Singh 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. 5:19-CR-327-D.
Rochester Man Going to Prison for Selling FentanylRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jerry Figueroa, 27, of Rochester, NY, who was convicted of conspiring to possess with intent to distribute, and distributing, 40 grams or more of fentanyl, was sentenced to serve 18 months in prison by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Cassie Kocher, who handled the case, stated that the defendant was arrested following an investigation into a drug trafficking organization responsible for distributing controlled substances in the area of Wilkins Street in Rochester. Between April and November 28, 2018, Figueroa supplied the organization with controlled substances so that they could be packaged for sale and sold on Wilkins Street. The defendant utilized different cellular telephone numbers to communicate with co-conspirators.
The sentencing is the result of an investigation by New York State Police, under the direction of Major Barry Chase; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. DeVito, New York Field Division; and the Monroe County District Attorney’s Office, under the direction District Attorney Sandra Doorley.
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Repeat Offender Sentenced to Mandatory Federal Prison Term for Drug TraffickingRead the Press Release
Miami, Florida – A federal district judge in West Palm Beach sentenced 42-year-old Clarence G. Kelley, III, a/k/a “Kemp,” of Lake Worth, Florida, to a mandatory term of 5 years in prison for possessing with the intent to distribute more than a kilogram of cocaine.
In March of 2021, law enforcement began investigating Kelley for his involvement in a drug-trafficking operation. As a result of the investigation, law enforcement executed State of Florida warrants at two Lake Worth residences on April 21, 2021. At the residence where Kelley and his girlfriend were found, law enforcement discovered items to include 1,470 grams of cocaine in the garage and a Gucci bag in the bedroom containing Kelley’s driver’s license and approximately $18,000. Kelley admitted that he had purchased the cocaine and sold approximately nine ounces before his arrest. Law enforcement located items to include kilogram presses, grinders, blenders and residue at the second residence, which was used by Kelley to divide the cocaine for sale. Kelley was previously convicted and sentenced federally for distributing crack cocaine.
In June 2021, Kelley pled guilty in West Palm Beach federal court to the sole count of the indictment, which charged the defendant with possession with the intent to distribute 500 grams or more of cocaine. As part of his plea, Kelley agreed to forfeit $19,324.00 to the United States of America.
Juan Antonio Gonzalez, Acting United States Attorney for the Southern District of Florida, La Verne J. Hibbert, Special Agent in Charge, Drug Enforcement Administration, Miami Field Division, and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, made the announcement.
DEA’s West Palm Beach District Office and the Palm Beach County Sheriff’s Office investigated the case. Assistant United States Attorney Sarah J. Schall prosecuted this case.
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 on http://pacer.flsd.uscourts.gov, under case number 21-CR-80075.
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Rensselaer County Man Charged with Pandemic-Related Unemployment FraudRead the Press Release
ALBANY, NEW YORK – Hector J. Sanchez, age 29, of Rensselaer, New York, was arrested today on an indictment charging him with six counts of mail fraud and three counts of aggravated identity theft related to filing for, and receiving more than $80,000 in benefits from, false unemployment insurance claims. The alleged false claims exploited federal programs intended to aid out-of-work New Yorkers during the COVID-19 pandemic.
The announcement was made by Acting United States Attorney Antoinette T. Bacon; Joshua McCallister, Acting Inspector in Charge of the Boston Division of the United States Postal Inspection Service (USPIS); Jonathan Mellone, Special Agent in Charge, New York Region, U.S. Department of Labor, Office of Inspector General (USDOL-OIG); and Matthew Scarpino, Acting Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
The indictment alleges that from August to November 2020, Sanchez engaged in a fraud scheme to obtain the personal identifying information of other individuals, including via social media, and file false unemployment insurance applications in their names with the New York State Department of Labor (NYSDOL). The indictment further alleges that he used debit cards linked to the false claims in order to obtain cash, goods, and services. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Sanchez appeared today before United States Magistrate Judge Daniel J. Stewart and was ordered detained pending a detention hearing for September 14.
The mail fraud charges carry a maximum term of 20 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. The charges for aggravated identity theft carry a mandatory term of two years in prison, to be imposed consecutive to any other term of imprisonment. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The case is being investigated by USPIS, USDOL-OIG, and HSI, with assistance from the NYSDOL Office of Special Investigations and the Albany Police Department. The case is being prosecuted by Assistant U.S. Attorney John T. Chisholm.
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.
Red Lake Felon Pleads Guilty to Possession of a Firearm, Possession with Intent to Distribute Methamphetamine and FentanylRead the Press Release
ST. PAUL, Minn. – A Red Lake man pleaded guilty today to illegally possessing a firearm as a felon and possessing with the intent to distribute methamphetamine and fentanyl, announced Acting U.S. Attorney W. Anders Folk.
According to court documents, on November 21, 2020, Joshua Jon Lussier, 34, was arrested in Hubbard County, Minnesota, pursuant to a federal arrest warrant. In Lussier’s vehicle, law enforcement observed in plain sight a glass smoking device commonly used for methamphetamine and approximately ten grams of methamphetamine. A subsequent search of the vehicle revealed 893 grams of methamphetamine, 83 grams of fentanyl, and drug distribution paraphernalia, including common cutting agents used to increase the total weight amount of controlled substances. Lussier admitted that the drugs in his vehicle belonged to him and were intended for distribution.
In April 2019, Lussier was found in possession of a Remington .243 caliber, Model 770 rifle. Because he has a prior felony conviction in Pennington County, Lussier is prohibited from possessing firearms or ammunition at any time.
This case is the result of investigations conducted by the Red Lake Department of Public Safety and the FBI Paul Bunyan Drug Task Force.
Assistant U.S. Attorney Evan B. Gilead is prosecuting the case.