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14 October 2021
Former Member of Massachusetts Latin Kings Leadership Pleads Guilty to Racketeering ConspiracyRead the Press Release
BOSTON – A former Inca, or leader, of the Massachusetts Almighty Latin King and Queen Nation (Latin Kings) pleaded guilty today to racketeering charges.
Juan Liberato, a/k/a “King Prodigy,” 36, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Jan. 26, 2022.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
Liberato admitted to being the Inca, or leader of the Latin Kings in Massachusetts. In this role, Liberato attended various meetings that were recorded by cooperating witnesses where the business and affairs of the gang were discussed and decisions were made concerning the operations of the gang. In particular, Liberato was recorded in attendance at a series of leadership meetings where crimes being committed by the gang, including drug deals and violence, were discussed.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Liberato is the 53rd defendant to plead guilty in the case.
The RICO conspiracy charge provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorney Philip A. Mallard of Mendell’s Criminal Division is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Godfather of Black Stone Gorilla Gang Sentenced to 12 Years in PrisonRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that MICHAEL DELAGUILA, a/k/a “Grizz,” was sentenced today to 12 years in prison in connection with his leadership of the Black Stone Gorilla Gang, a violent street gang that operated in New York City and elsewhere, and his participation in narcotics trafficking and firearms offenses. On May 26, 2021, DELAGUILA pled guilty to narcotics conspiracy and a firearms offense before U.S. District Judge Jesse M. Furman, who also imposed today’s sentence.
U.S. Attorney Damian Williams said: “Michael Delaguila was one of the Godfathers of a notoriously violent and lawless gang that terrorized communities across New York City and elsewhere. Delaguila recruited other individuals into the gang and authorized acts of violence and drug trafficking in New York City for years. Today’s lengthy sentence sends an important message to gang members who commit crimes that they will be apprehended and prosecuted to the fullest extent of the law.”
As alleged in the Indictment and based on statements made in open court:
MICHAEL DELAGUILA, a/k/a “Grizz,” was previously one of the Godfathers of the Black Stone Gorilla Gang, a racketeering enterprise that operated principally in the New York City metropolitan area and in the jails and prisons of New York City and the State of New York. In order to enrich the enterprise, preserve and protect the power of the enterprise, and enhance its criminal operations, BSGG members and associates committed, conspired, attempted, and threatened to commit acts of violence, including murder and assaults; distributed and possessed with intent to distribute narcotics; committed robberies; engaged in bank fraud and wire fraud; and obtained, possessed, and used firearms. BSGG members also evaded prosecution by law enforcement authorities through acts of intimidation and violence against potential witnesses to crimes committed by the gang. DELAGUILA accepted responsibility for participating in a conspiracy to distribute quantities of cocaine, heroin, and cocaine base, and for using and carrying firearms in furtherance of drug trafficking.
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In addition to his prison term, MICHAEL DELAGUILA, 30, of the Bronx, was sentenced to four years of supervised release.
Mr. Williams praised the outstanding investigative work of the New York City Police Department, the Drug Enforcement Administration, Homeland Security Investigations, the New York City Department of Corrections, and the Special Agents of the U.S. Attorney’s Office for the Southern District of New York.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Danielle R. Sassoon, Andrew K. Chan, and Brandon D. Harper, and Special Assistant United States Attorney Jaclyn M. Wood, are in charge of the prosecution.
Former Elected County Coroner Indicted for Illegal Distribution of Controlled SubstancesRead the Press Release
A federal grand jury in the Eastern District of Kentucky returned an indictment today charging a former elected county coroner with illegally distributing controlled substances such as oxycodone and OxyContin.
According to court documents, David W. Suetholz, 73, of Ludlow, Kentucky, a medical doctor who served as the elected county coroner for Kenton County, Kentucky, until June 30, 2021, unlawfully distributed opioids to three patients on 10 separate occasions between approximately September 2018 and February 2020.
A summons was issued and Suetholz has been directed to appear on Oct. 27. If convicted, Suetholz faces a maximum penalty of 20 years in prison for each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, Acting U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky; Special Agent in Charge Keith W. Martin of the U.S. Drug Enforcement Administration’s (DEA) Detroit Field Division; Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Atlanta Region; Acting Special Agent in Charge Edward J. Gray of the FBI’s Louisville Field Office; and Executive Director W. Bryan Hubbard of the Kentucky Medicaid Fraud Control Unit (MFCU) in the Kentucky Attorney General’s Office made the announcement.
This case was investigated by the DEA’s Detroit Field Division, Cincinnati District Office Diversion Group, the FBI’s Louisville Field Office, HHS-OIG’s Louisville Field Office, and the Kentucky MFCU.
Trial Attorneys Chris Jason and Dermot Lynch and Assistant Chief Kilby Macfadden of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 90 defendants who are collectively responsible for distributing more than 105 million pills. In addition, the Health and Human Services Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Cleveland VA Medical Center Supervisor Sentenced to 37 Months and Ordered to Pay More Than $1.25 Million in Restitution for Theft and Kickback SchemeRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that William H. Precht, 54, of Kent, Ohio, was sentenced today by Judge Donald C. Nugent to 37 months imprisonment and ordered to pay $1,259,390.66 in restitution after Precht pleaded guilty to theft of government property and participating in a bribery and kickback scheme that enriched himself and caused the Cleveland VA Medical Center to suffer a loss of nearly $200,000.
Precht pleaded guilty in March of 2021 to a 28-count indictment charging him with theft of government property, conspiracy to commit wire fraud and honest services fraud, wire fraud and false statements relating to health care matters.
“Public corruption by VA employees erodes trust in the Department and diverts taxpayer money intended for our nation’s veterans,” said Acting Special Agent in Charge Gavin McClaren of the Department of Veterans Affairs Office of Inspector General’s Central Field Office. “The VA OIG appreciates our partnership with the US Attorney’s Office and their commitment to helping us hold these defendants accountable.”
According to court documents, from October of 2010, through January of 2019, Precht worked as an Inventory Management Specialist and later as a Supervisory Management and Program Analyst at the Cleveland VA Medical Center. Through his positions at the VA, Precht could order medical supplies, purchase capital equipment and monitor requests for equipment purchases.
Using his position and his VA employee log-in information, Precht registered a purported vendor (Vendor-1) as a Small Disadvantaged Business and Veteran-Owned Small Business in the VA vendor system. Beginning in October of 2010, Precht used his VA purchase card and other employee cards to purchase purported medical supplies from Vendor-1, a company he controlled, in the amount of approximately $1,066,348.
In addition, from May of 2015 through January of 2019, Precht conspired with Robert A. Vitale, a medical sales representative for multiple companies that conducted business with the Cleveland VA, to devise a scheme in which Precht would receive kickbacks and other items of value, in exchange for steering VA business and other monetary awards to Vitale.
In order to conceal his schemes, Precht provided false and misleading information to VA employees about reasons for ordering medical supplies and falsified patient records. As a result, the Cleveland VA suffered a loss of $193,042.66.
Robert. A. Vitale pleaded guilty to a Bill of Information on October 13, 2021, for his role in the scheme.
The investigation was conducted by the Department of Veterans Affairs – Office of the Inspector General, Cleveland and the Cleveland Division of the FBI. This case was prosecuted by Assistant U.S. Attorney Brian McDonough.
Former Boeing 737 MAX Chief Technical Pilot Indicted for FraudRead the Press Release
UPDATE
On March 23, 2022, a federal jury acquitted Mark A. Forkner of all charges alleged in the indictment described in the press release below.
A federal grand jury in the Northern District of Texas returned an indictment today charging a former Chief Technical Pilot for The Boeing Company (Boeing) with deceiving the Federal Aviation Administration’s Aircraft Evaluation Group (FAA AEG) in connection with the FAA AEG’s evaluation of Boeing’s 737 MAX airplane, and scheming to defraud Boeing’s U.S.‑based airline customers to obtain tens of millions of dollars for Boeing.
According to court documents, Mark A. Forkner, 49, formerly of Washington State and currently of Keller, Texas, allegedly deceived the FAA AEG during the agency’s evaluation and certification of Boeing’s 737 MAX airplane. As alleged in the indictment, Forkner provided the agency with materially false, inaccurate, and incomplete information about a new part of the flight controls for the Boeing 737 MAX called the Maneuvering Characteristics Augmentation System (MCAS). Because of his alleged deception, a key document published by the FAA AEG lacked any reference to MCAS. In turn, airplane manuals and pilot-training materials for U.S.-based airlines lacked any reference to MCAS — and Boeing’s U.S.-based airline customers were deprived of important information when making and finalizing their decisions to pay Boeing tens of millions of dollars for 737 MAX airplanes.
“Forkner allegedly abused his position of trust by intentionally withholding critical information about MCAS during the FAA evaluation and certification of the 737 MAX and from Boeing’s U.S.‑based airline customers,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “In doing so, he deprived airlines and pilots from knowing crucial information about an important part of the airplane’s flight controls. Regulators like the FAA serve a vital function to ensure the safety of the flying public. To anyone contemplating criminally impeding a regulator’s function, this indictment makes clear that the Justice Department will pursue the facts and hold you accountable.”
“In an attempt to save Boeing money, Forkner allegedly withheld critical information from regulators,” said Acting U.S. Attorney Chad E. Meacham for the Northern District of Texas. “His callous choice to mislead the FAA hampered the agency’s ability to protect the flying public and left pilots in the lurch, lacking information about certain 737 MAX flight controls. The Department of Justice will not tolerate fraud – especially in industries where the stakes are so high.”
“Forkner allegedly withheld crucial information about the Boeing 737 MAX and deceived the FAA, showing blatant disregard for his responsibilities and the safety of airline customers and crews,” said Assistant Director Calvin Shivers of the FBI. “The FBI will continue to hold individuals like Forker accountable for their fraudulent acts which undermine public safety.”
“There is no excusing those who deceive safety regulators for the sake of personal gain or commercial expediency,” said Inspector General Eric J. Soskin of the U.S. Department of Transportation. “Our office works continuously to help keep the skies safe for flying and protect the traveling public from needless danger. Today’s charges demonstrate our unwavering commitment to working with our law enforcement and prosecutorial partners to hold responsible those who put lives at risk.”
According to court documents, Boeing began developing and marketing the 737 MAX in and around June 2011. The FAA AEG was responsible for determining the minimum level of pilot training required for a pilot to fly the 737 MAX for a U.S.-based airline, based on the nature and extent of the differences between the 737 MAX and the prior version of Boeing’s 737 airplane, the 737 Next Generation (NG). At the conclusion of this evaluation, the FAA AEG published the 737 MAX Flight Standardization Board Report (FSB Report), which included, among other things, the FAA AEG’s differences-training determination for the 737 MAX, as well as information about differences between the 737 MAX and the 737 NG. All U.S.-based airlines were required to use the information in the 737 MAX FSB Report as the basis for training their pilots to fly the airplane.
As Boeing’s 737 MAX Chief Technical Pilot, Forkner led the 737 MAX Flight Technical Team and was responsible for providing the FAA AEG with true, accurate, and complete information about differences between the 737 MAX and the 737 NG for the FAA AEG’s evaluation, preparation, and publication of the 737 MAX FSB Report.
In and around November 2016, Forkner discovered information about an important change to MCAS. Rather than sharing information about this change with the FAA AEG, Forkner allegedly intentionally withheld this information and deceived the FAA AEG about MCAS. Because of his alleged deceit, the FAA AEG deleted all reference to MCAS from the final version of the 737 MAX FSB Report published in July 2017. As a result, pilots flying the 737 MAX for Boeing’s U.S.‑based airline customers were not provided any information about MCAS in their manuals and training materials. Forkner sent copies of the 737 MAX FSB Report to Boeing’s U.S.-based 737 MAX airline customers, but withheld from these customers important information about MCAS and the 737 MAX FSB Report evaluation process.
On or about Oct. 29, 2018, after the FAA AEG learned that Lion Air Flight 610 — a 737 MAX — had crashed near Jakarta, Indonesia, shortly after takeoff and that MCAS was operating in the moments before the crash, the FAA AEG discovered the information about the important change to MCAS that Forkner had withheld. Having discovered this information, the FAA AEG began reviewing and evaluating MCAS.
On or about March 10, 2019, while the FAA AEG was still reviewing MCAS, the FAA AEG learned that Ethiopian Airlines Flight 302 — a 737 MAX — had crashed near Ejere, Ethiopia, shortly after takeoff and that MCAS was operating in the moments before the crash. Shortly after that crash, all 737 MAX airplanes were grounded in the United States.
Forkner is charged with two counts of fraud involving aircraft parts in interstate commerce and four counts of wire fraud. He is expected to make his initial court appearance on Friday in Fort Worth, Texas, before U.S. Magistrate Judge Jeffrey L. Cureton of the U.S. District Court for the Northern District of Texas. If convicted, he faces a maximum penalty of 20 years in prison on each count of wire fraud and 10 years in prison on each count of fraud involving aircraft parts in interstate commerce. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Chicago field offices of the FBI and DOT-OIG are investigating the case, with the assistance of other FBI and DOT-OIG field offices.
Trial Attorney Cory E. Jacobs, Assistant Chief Michael T. O’Neill, and Trial Attorney Scott Armstrong of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Alex Lewis of the U.S. Attorney’s Office for the Northern District of Texas 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.
Former Boeing 737 MAX Chief Technical Pilot Indicted for FraudRead the Press Release
A federal grand jury in the Northern District of Texas returned an indictment today charging a former Chief Technical Pilot for Boeing with deceiving the Federal Aviation Administration’s Aircraft Evaluation Group in connection with their evaluation of Boeing’s 737 MAX airplane, and scheming to defraud Boeing’s U.S. based airline customers to obtain tens of millions of dollars for Boeing.
According to court documents, Mark A. Forkner, 49, formerly of Washington State and currently of Keller, Texas, allegedly deceived the FAA AEG during the agency’s evaluation and certification of Boeing’s 737 MAX airplane. As alleged in the indictment, Forkner provided the agency with materially false, inaccurate, and incomplete information about a new part of the flight controls for the Boeing 737 MAX called the Maneuvering Characteristics Augmentation System (MCAS).
Because of his alleged deception, a key document published by the FAA AEG lacked any reference to MCAS. In turn, airplane manuals and pilot-training materials for U.S.-based airlines lacked any reference to MCAS — and Boeing’s U.S.-based airline customers were deprived of important information when making and finalizing their decisions to pay Boeing tens of millions of dollars for 737 MAX airplanes.
“Forkner allegedly abused his position of trust by intentionally withholding critical information about MCAS during the FAA evaluation and certification of the 737 MAX and from Boeing’s U.S.‑based airline customers,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “In doing so, he deprived airlines and pilots from knowing crucial information about an important part of the airplane’s flight controls. Regulators like the FAA serve a vital function to ensure the safety of the flying public. To anyone contemplating criminally impeding a regulator’s function, this indictment makes clear that the Justice Department will pursue the facts and hold you accountable.”
“In an attempt to save Boeing money, Forkner allegedly withheld critical information from regulators,” said Acting U.S. Attorney Chad E. Meacham for the Northern District of Texas. “His callous choice to mislead the FAA hampered the agency’s ability to protect the flying public and left pilots in the lurch, lacking information about certain 737 MAX flight controls. The Department of Justice will not tolerate fraud – especially in industries where the stakes are so high."
Forkner allegedly withheld crucial information about the Boeing 737 Max and deceived the FAA, showing blatant disregard for his responsibilities and the safety of airline customers and crews," said Assistant Director Calvin Shivers of the FBI. "The FBI will continue to hold individuals like Forker accountable for their fraudulent acts which undermine public safety."
“There is no excusing those who deceive safety regulators for the sake of personal gain or commercial expediency,” said Inspector General Eric J. Soskin of the U.S. Department of Transportation. “Our office works continuously to help keep the skies safe for flying and protect the traveling public from needless danger. Today’s charges demonstrate our unwavering commitment to working with our law enforcement and prosecutorial partners to hold responsible those who put lives at risk.”
According to court documents, Boeing began developing and marketing the 737 MAX in and around June 2011. The FAA AEG was responsible for determining the minimum level of pilot training required for a pilot to fly the 737 MAX for a U.S.-based airline, based on the nature and extent of the differences between the 737 MAX and the prior version of Boeing’s 737 airplane, the 737 Next Generation (NG). At the conclusion of this evaluation, the FAA AEG published the 737 MAX Flight Standardization Board Report (FSB Report), which included, among other things, the FAA AEG’s differences-training determination for the 737 MAX, as well as information about differences between the 737 MAX and the 737 NG. All U.S.-based airlines were required to use the information in the 737 MAX FSB Report as the basis for training their pilots to fly the airplane.
As Boeing’s 737 MAX Chief Technical Pilot, Forkner led the 737 MAX Flight Technical Team and was responsible for providing the FAA AEG with true, accurate, and complete information about differences between the 737 MAX and the 737 NG for the FAA AEG’s evaluation, preparation, and publication of the 737 MAX FSB Report.
In and around November 2016, Forkner discovered information about an important change to MCAS. Rather than sharing information about this change with the FAA AEG, Forkner allegedly intentionally withheld this information and deceived the FAA AEG about MCAS. Because of his alleged deceit, the FAA AEG deleted all reference to MCAS from the final version of the 737 MAX FSB Report published in July 2017. As a result, pilots flying the 737 MAX for Boeing’s U.S.‑based airline customers were not provided any information about MCAS in their manuals and training materials. Forkner sent copies of the 737 MAX FSB Report to Boeing’s U.S.-based 737 MAX airline customers, but withheld from these customers important information about MCAS and the 737 MAX FSB Report evaluation process.
On or about Oct. 29, 2018, after the FAA AEG learned that Lion Air Flight 610 — a 737 MAX — had crashed near Jakarta, Indonesia, shortly after takeoff and that MCAS was operating in the moments before the crash, the FAA AEG discovered the information about the important change to MCAS that Forkner had withheld.
Having discovered this information, the FAA AEG began reviewing and evaluating MCAS.
On or about March 10, 2019, while the FAA AEG was still reviewing MCAS, the FAA AEG learned that Ethiopian Airlines Flight 302 — a 737 MAX — had crashed near Ejere, Ethiopia, shortly after takeoff and that MCAS was operating in the moments before the crash. Shortly after that crash, all 737 MAX airplanes were grounded in the United States.
Forkner is charged with two counts of fraud involving aircraft parts in interstate commerce and four counts of wire fraud. He is expected to make his initial court appearance on Friday in Fort Worth, Texas, before U.S. Magistrate Judge Jeffrey L. Cureton of the U.S. District Court for the Northern District of Texas. If convicted, he faces a maximum penalty of 20 years in prison on each count of wire fraud and 10 years in prison on each count of fraud involving aircraft parts in interstate commerce. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Chicago field offices of the FBI and DOT-OIG are investigating the case, with the assistance of other FBI and DOT-OIG field offices.
Trial Attorney Cory E. Jacobs, Assistant Chief Michael T. O’Neill, and Trial Attorney Scott Armstrong of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Alex Lewis of the U.S. Attorney’s Office for the Northern District of Texas are prosecuting the case.
Felon Sentenced to Eight Years in Federal Prison for a Fentanyl Distribution ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Delando Lee Brown, age 39, of Randallstown, Maryland to eight years in federal prison, followed by five years of supervised release, for conspiracy to distribute, and possession with intent to distribute more than 300 grams of fentanyl. According to the Drug Enforcement Administration .02 milligrams is a lethal dose of fentanyl.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; and Baltimore City Sheriff John Anderson.
According to his plea agreement, on May 19, 2019, Brown went to a Middle River, Maryland gun range where he possessed and used several firearms including a 9mm handgun, a .22 caliber handgun, 50 rounds of 9mm ammunition, and 50 rounds of .22 caliber ammunition. Brown knew that he was prohibited from possessing firearms and ammunition as a result of a previous felony conviction. Brown was subsequently indicted federally for illegal possession of firearms and ammunition and was detained pending trial.
In April 2020 Brown was released from pretrial detention pending trial. However, while on pretrial release, Brown engaged in a conspiracy to traffic fentanyl. Specifically, on multiple occasions in October 2020, law enforcement observed Brown leaving a Baltimore apartment where narcotics were stored and traveling to drug shops to supply his customers with narcotics. On October 16, 2020, law enforcement executed a search warrant at the stash location. Upon entering the apartment, law enforcement found Brown and another individual inside the apartment preparing drugs for bulk sale. In total, law enforcement seized 310 grams of fentanyl and $3,190 in drug proceeds.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Erek L. Barron praised the ATF, the DEA, the Baltimore City Sheriff’s Office, the Baltimore Police Department, and the Baltimore County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Jason D. Medinger, Patricia C. McLane, and Lindsey McCulley, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and programs to combat gun crime, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile.
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Escape from Halfway House Results in Prison SentenceRead the Press Release
A Cedar Rapids man who escaped from a Residential Reentry Center where he was completing a federal prison sentence was sentenced today to an additional 11 months in federal prison.
Dante Glinn, age 28, from Cedar Rapids, Iowa, received the prison term after a June 8, 2021 guilty plea to one count of escape from federal custody.
At the guilty plea, Glinn admitted that on June 21, 2016, he was convicted for theft of a firearm from a licensed firearms dealer and received a 78-month prison sentence. Beginning August 25, 2020, Glinn was moved to the Gerald R. Hinzman Residential Center to complete his federal prison sentence. On September 30, 2020, Glinn signed out of the facility on an authorized pass to go to work and never returned. The United States Marshal’s Service subsequently located and arrested Glinn on May 5, 2021.
Glinn was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Glinn was sentenced to 11 months’ imprisonment and must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Glinn 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 Patrick Reinert and investigated by 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-00084.
Follow us on Twitter @USAO_NDIA.
Erie County Man Sentenced to 12 Years in Prison for Possessing and Distributing Child PornographyRead the Press Release
ERIE, Pa. - A former resident of Cranesville, Pennsylvania, has been sentenced in federal court to 12 years in jail and 20 years of supervised release on his conviction of violating federal laws relating to the sexual exploitation of children, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge Susan Paradise Baxter imposed the sentence on Jeffrey Adam Jepson, 40.
According to information presented to the court, Jepson distributed sexually explicit photos depicting a minor victim under the age of six to an undercover officer. Jepson also possessed other images of child sexual abuse depicting minors under the age of twelve, some as young as infants and toddlers.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Federal Bureau of Investigation, the Pennsylvania State Police, the District of Columbia’s Metropolitan Police Department and the Erie County Detectives Bureau for the investigation leading to the successful prosecution of Jepson.
Durham Woman Sentenced for Concealing Income to Receive Social Security BenefitsRead the Press Release
PORTLAND, Maine: A Durham woman was sentenced yesterday in federal court for Social Security fraud, U.S. Attorney Darcie N. McElwee announced.
U.S. District Judge John A. Woodcock, Jr. sentenced Carol Bourgoin, 65, to three years of probation. She was also ordered to pay $80,430.00 in restitution to the Social Security Administration (“SSA”). Bourgoin pleaded guilty on June 17, 2021.
According to court records, from about July 2009 through November 2018, Bourgoin, a recipient of Supplemental Security Income (“SSI”), concealed the presence of her husband in her household to maintain her eligibility to receive benefit payments. SSI benefits are paid to people with limited income who are blind, disabled or elderly. Bourgoin’s husband had sufficient income to render her ineligible for the benefits she received during that period. In multiple reviews of her eligibility for benefits, Bourgoin falsely represented to the SSA that she was living alone and not receiving help or money from any other person during this time. During an interview with investigators, Bourgoin admitted to concealing her living situation from SSA because she knew it would make her ineligible to receive SSI.
SSA’s Office of the Inspector General investigated the case.
Dominican National Sentenced for Misusing Social Security Number and Making False StatementRead the Press Release
BOSTON – A Dominican national was sentenced today in federal court in Boston for false statement and Social Security fraud charges.
Juan Baez, 57, who previously resided in Roslindale, was sentenced by U.S. District Court Judge William G. Young to 14 months in prison and three years of supervised release. Baez was also ordered to pay restitution of $18,997. Baez will be subject to deportation proceedings upon completion of his sentence. On June 10, 2021, Baez pleaded guilty to one count of false representation of a Social Security number and one count of making a false statement relating to health care matters.
Baez used the identity of a Puerto Rican citizen to obtain Massachusetts driver’s licenses and identification cards. He also used the identity to apply for and receive MassHealth benefits. Between Jan. 1, 2008 and Dec. 31, 2019, Baez fraudulently received approximately $18,997 in federally funded MassHealth benefits he was not entitled to by using the victim’s identity.
Acting United States Attorney Nathaniel R. Mendell; John Cremonini, Acting Special Agent in Charge of the Social Security Administration, Office of Inspector General, Boston Field Office; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; Philip M. Coyne, Special Agent in Charge or the U.S. Department of Health and Human Services, Office of the Inspector General, Office of Investigations; and Suzanne M. Bump, State Auditor of the Commonwealth of Massachusetts made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Mendell’s Major Crimes Unit prosecuted the case.
Dodge County Man Indicted on Impersonating a Federal Officer and Firearm ChargesRead the Press Release
MINNEAPOLIS – A federal grand jury returned a five-count indictment against a Dodge County man for impersonating a federal officer, felon in possession of firearms, felon in possession of explosives, possession of unregistered firearms, and possession of an unauthorized badge, announced Acting United States Attorney W. Anders Folk.
According to court documents, on August 17, 2021, the FBI received a tip that Reyel Devon Simmons, 52, of Dodge Center, was impersonating a federal agent with the United States Department of Homeland Security. The investigation revealed that Simmons used the false name “Rey Reeves,” and regularly held himself out as a federal agent on social media. Simmons, who had nearly 10,000 followers on TikTok, used a profile photo that showed him wearing law enforcement gear and made several posts displaying law enforcement equipment, badges, and firearms, and referring explicitly and implicitly to himself as a federal agent. Simmons is not, and has never been, employed by the United States Department of Homeland Security.
According to court documents, during the September 20, 2021 arrest of Simmons, law enforcement discovered a “go bag” that bore the departmental emblem of the Department of Homeland Security and contained a Glock handgun, fake Department of Homeland Security badge, and other items related to Simmons’ supposed service in law enforcement and the military. Law enforcement also executed a search warrant at Simmons’ residence. Law enforcement seized seven firearms from the property, where most were discovered in a “safe room” or bunker that could be accessed only through a hidden doorway located in the storage area of the basement. Law enforcement also found silencers/suppressors, a suspected detonating cord, and a suspected blasting cap in the secret space. Law enforcement determined that the silencer/suppressors were not registered with the National Firearms Registry and Transfer Record (NFRTR). Law enforcement later assessed the suspected detonating cord and concluded that it contained pentaerythritol tetranitrate (PETN), an explosive. Additionally, law enforcement found thousands of rounds of ammunition, body armor with law enforcement emblems affixed to it, and other law enforcement style badges and identification documents.
Because Simmons has a prior felony conviction in Colorado, he is prohibited under federal law, from possessing firearms, ammunition, or explosives at any time.
This case was the result of an investigation conducted by the FBI, ATF, Dodge County Sheriff’s Department, Owatonna Police Department, Kasson Police Department, the Bloomington Police Department Bomb Squad, with assistance from the Department of Homeland Security.
Assistant U.S. Attorney Alexander D. Chiquoine is prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Chicago Street Gang Member Sentenced to 30 Years in Federal Prison on Murder and Racketeering OffensesRead the Press Release
CHICAGO — A member of a violent Chicago street gang has been sentenced to 30 years in federal prison for engaging in racketeering activity that included murder.
WILLIAM HAYSLETTE, 27, of Chicago, conspired with leadership of the Latin Kings street gang to engage in racketeering activity that included using violence and intimidation to protect the gang’s territory on the Southeast Side of Chicago and punishing fellow gang members suspected of cooperating with law enforcement. Hayslette admitted in a plea agreement that he served as a “soldier” in the Latin Kings for several years and that he committed assault in aid of the gang’s racketeering activities.
In imposing the 30-year prison sentence Oct. 6, 2021, U.S. District Judge Virginia M. Kendall found that Hayslette participated in the murder of Sergio Hernandez on May 15, 2012, in the South Chicago neighborhood of Chicago. After the murder of Hernandez, Hayslette obtained a “teardrop” tattoo on his face, signifying that he had killed someone on behalf of the Latin Kings. Judge Kendall also found that Hayslette attempted to prevent a fellow Latin King from cooperating with law enforcement by setting fire to a vehicle.
Hayslette was indicted in federal court in 2018 along with more than 30 other alleged members of the Latin Kings. The indictment charged numerous acts of violence allegedly committed by the gang’s members, including the killing of Hernandez and several other slayings. Nearly all of the charged defendants have pleaded guilty or were convicted at trial, including GERONIA FORD, of Chicago, who last month was sentenced to 29 years in federal prison for participating in Hernandez’s murder and committing acts of witness intimidation.
The investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and David Brown, Superintendent of the Chicago Police Department. Valuable assistance was provided by the Cook County Sheriff’s Office, and the Hammond, Ind., Police Department.
“Acting according to a manifesto and constitution, Latin Kings have devastated neighborhoods with gun violence, drug dealing, and witness intimidation,” Assistant U.S. Attorneys John D. Cooke, Ashley A. Chung, and Brian J. Kerwin argued in the government’s sentencing memorandum. “Hayslette’s acts typify the terroristic nature of the Latin Kings and the conspiracy in which he enthusiastically participated.”
Charleston Man Pleads Guilty to Federal Drug CrimesRead the Press Release
CHARLESTON, W.Va. – A Charleston man pleaded guilty today to two counts of possession with intent to distribute fentanyl.
According to statements made in court, Terrence Ramsey, 36, admitted that on November 7, 2020, officers with the Charleston Police Department responded to a 911 call regarding a passed out driver located in a stopped car and found Ramsey passed out inside a gold Toyota Camry on the West Side of Charleston. Ramsey was asked to exit the car and during the course of the pat down, Ramsey removed a Ziplock bag containing approximately 47 grams of a heroin/fentanyl mixture from his hoodie pocket. Ramsey further admitted that when he was arrested on February 9, 2021 in connection with a federal warrant, officers seized approximately 26 grams fentanyl from the room in the home he was residing.
Ramsey faces a mandatory minimum of five years and up to 40 years in prison when he is sentenced on February 3, 2022.
United States Attorney William S. Thompson made the announcement and commended the investigative work of the Charleston Police Department.
United States District Judge Irene C. Berger presided over the hearing. Assistant U.S. Attorney Negar M. Kordestani is prosecuting the case.
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-00027.
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Charleston Man Pleads Guilty to Federal Drug ChargeRead the Press Release
CHARLESTON, W.Va. – A Charleston man pleaded guilty today to a federal drug charge.
According to the plea agreement and statements made in court, Maylik Watson, 27, sold approximately 174.9 grams of methamphetamine to a confidential informant in exchange for $5,600 on July 6, 2020 in Charleston.
Watson pleaded guilty to distribution of 50 grams or more of methamphetamine and faces a mandatory minimum sentence of 10 years and up to life in prison when he is sentenced on January 6, 2022.
United States Attorney William S. Thompson made the announcement and commended the investigative efforts of the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Charleston Police Department, and the Metropolitan Drug Enforcement Network Team (MDENT). The U.S. Marshals Service and the West Virginia State Police also assisted in the investigation.
Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Monica D. Coleman is handling the prosecution.
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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Bronx Gang Member Sentenced for 2018 Playground Shooting of A 13-Year-OldRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that MARVIN GAMONEDA, a/k/a “June,” was sentenced today to 13 years in prison in connection with a shooting in the Nelson Playground on June 6, 2018, in the Highbridge neighborhood of the Bronx. On March 15, 2021, GAMONEDA pled guilty to attempted murder and assault with a deadly weapon in aid of racketeering and a firearms offense before U.S. District Judge John G. Koeltl, who also imposed today’s sentence.
U.S. Attorney Damian Williams said: “On June 6, 2018, Marvin Gamoneda participated in a shooting in broad daylight in a Bronx playground filled with people, including children. During the shooting, two individuals, including a child, were hit. Today’s lengthy sentence sends an important message that we will continue vigorously to investigate and prosecute gang violence.”
As alleged in the Indictment and statements made in open court:
Woodycrime was a criminal enterprise involved in committing numerous acts of violence, including attempted murders and assaults, as well as drug dealing, in the Bronx. Members and associates of Woodycrime engaged in violence to retaliate against rival gangs, to preserve and expand the gang’s territory, and to protect the gang’s narcotics business. Members and associates of Woodycrime enriched themselves by selling drugs, such as crack cocaine, marijuana, oxycodone, and MDMA or “ecstasy.” On June 6, 2018, GAMONEDA and others shot at a rival gang member in the vicinity of the Nelson Playground in the Bronx, during which two victims, including a 13-year-old child, were injured.
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In addition to his prison term, MARVIN GAMONEDA, 34, of the Bronx, was sentenced to three years of supervised release.
Mr. Williams praised the outstanding investigative work of the New York City Police Department and the Federal Bureau of Investigation.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Andrew K. Chan, Jacob R. Fiddelman, and James Ligtenberg are in charge of the prosecution.
Brockton man admits assault on Fort Peck Indian ReservationRead the Press Release
GREAT FALLS – A Brockton man accused of beating another person at his home on the Fort Peck Indian Reservation admitted assault charges today, Acting U.S. Attorney Leif M. Johnson said.
James Michael Garcia, 29, pleaded guilty to assault resulting in serious bodily injury. Garcia faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris set sentencing for Feb. 9, 2022. Garcia was detained pending further proceedings.
The government alleged in court documents that on Aug. 26, 2018, Garcia hit the victim, identified as Jane Doe, after an argument over the phone with a relative of the victim. The victim suffered serious bodily injuries.
Assistant U.S. Attorney Jared C. Cobell is prosecuting the case, which was investigated by the FBI and Fort Peck Tribal Law Enforcement.
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Boone County Woman Sentenced to Five Years in Prison for Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – A Boone County woman was sentenced today to 60 months in prison for possession with intent to distribute 50 grams or more of methamphetamine.
According to court documents, Sherri Hill, 58, purchased approximately four ounces of methamphetamine from a confidential informant on June 25,2020 at the Park and Ride on U.S. 119 in Boone County. After leaving the Park and Ride, law enforcement officers stopped Hill’s vehicle and located the methamphetamine Hill had purchased in her purse. After being arrested, Hill admitted to having sold methamphetamine for the last two years, that she had sold ounce and multi-ounce quantities at a time, and that she usually profited approximately $600 a week from the drug sales. Hill further admitted that she had several people waiting to purchase methamphetamine from her that same day, as Hill had previously informed them that she would be obtaining methamphetamine to sell.
United States Attorney William S. Thompson made the announcement and commended the investigative work of the West Virginia State Police and the Drug Enforcement Administration (DEA).
Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney L. Alexander Hamner prosecuted the case.
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. 2:20-cr-0194.
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Biloxi Man Pleads Guilty to Firearm OffenseRead the Press Release
Gulfport, Miss. – A Biloxi man pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime, announced Acting U.S. Attorney Darren J. LaMarca and Special Agent in Charge Brad Byerley of the Drug Enforcement Administration (“DEA”).
According to court records, Kristopher Weaver, 29, was indicted on June 29, 2021, for his role in a drug trafficking conspiracy which included the acquisition and distribution of marijuana, prescription pills, and firearms. Law enforcement officers executed a search warrant on Weaver’s home where they found approximately 58.5 pounds of THC edibles, marijuana, cocaine, and other suspected controlled substances. Some of the controlled substances, eight firearms, a large cache of ammunition, and a drug ledger were all discovered in Weaver’s bedroom.
Weaver pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime. He is scheduled to be sentenced on January 20, 2022. He faces a minimum sentence of 5 years imprisonment and a maximum sentence of life imprisonment. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The DEA, Gulfport Police Department, and Biloxi Police Department investigated the case.
Assistant U.S. Attorney Jonathan Buckner is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Beckley Woman Pleads Guilty to Federal Gun CrimesRead the Press Release
BECKLEY, W.Va. – Cayla Danielle Lindsay, 28, of Beckley, pleaded guilty today to using and carrying a firearm in relation to a drug trafficking crime and to being a felon in possession of a firearm.
According to court documents, Lindsay admitted that on July 23, 2020, during a traffic stop of a car she was driving in Beckley, law enforcement officers found approximately 27 grams of heroin that she intended to distribute. They also found a Springfield, XDS 9, 9mm semi-automatic pistol Lindsay was carrying at the time. Lindsay also admitted that on May 6, 2021, she possessed a SCCY, CPX-2, 9mm semi-automatic pistol. The firearm was found during a search law enforcement conducted at her residence in Beckley. Lindsay acknowledged that at the time she possessed the firearm, she knew she had been previously convicted in federal court of the felony offense of distribution of oxycodone and was prohibited from possessing firearms.
Lindsay faces up to 10 years in prison for being a felon in possession of a firearm, followed by a mandatory consecutive five years for carrying a firearm during and in relation to a drug trafficking crime when she is sentenced on February 4, 2022.
United States Attorney William S. Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Beckley/Raleigh County Drug and Violent Crime Unit.
United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney Timothy D. Boggess is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:21-cr-00090.
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Bakersfield Man Indicted for Unlawful Possession of AmmunitionRead the Press Release
FRESNO, Calif. — Raylon Thijay Randle, 24, of Bakersfield, was charged today by a federal grand jury with being a felon in possession of ammunition, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Aug. 19, 2021, law enforcement officers stopped a vehicle in which Randle was a passenger and discovered that he possessed a 9 mm handgun loaded with 31 rounds of ammunition. Randle cannot lawfully possess firearms or ammunition because he was convicted in 2016 of first degree burglary and in 2018 of being a felon in possession of a firearm.
This case is the product of an investigation by Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Bakersfield Police Department. Assistant U.S. Attorney Christopher D. Baker is prosecuting the case.
If convicted, Randle faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charge is only an allegation; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Armed Savannah criminal sentenced to maximum term in prison for illegal firearms possessionRead the Press Release
SAVANNAH, GA: A Chatham County man with a history of violent behavior has been sentenced to 10 years in federal prison for illegally possessing a firearm.
King Coney, 29, of Savannah, was sentenced to the statutory maximum 120 months in prison after pleading guilty to Possession of a Firearm by a Convicted Felon, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge R. Stan Baker also ordered Coney to serve three years of supervised release after completion of his prison sentence. There is no parole in the federal system.
“King Coney has no business carrying a gun,” said Acting U.S. Attorney Estes. “His history of violent behavior, particularly toward women and police officers, makes it clear the community will be safer with him disarmed and behind bars.”
Savannah Police officers in August 2020 investigated a report that Coney had pointed a pistol at the head of a pregnant woman and dragged her down the street. When officers located Coney two weeks later and attempted to question him, Coney ran away and was arrested after a brief chase. Officers then found a loaded pistol in his backpack, and agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives verified that as a previously convicted felon, Coney is prohibited from possessing firearms. Coney still faces state charges related to the case, including kidnapping, aggravated assault, and cruelty to children.
“The criminal possession and use of firearms by felons is a crime that impacts the safety of our community everyday” said ATF Assistant Special Agent in Charge Beau Kolodka. “By imposing the maximum sentence for this crime, the Court has sent a strong message to Coney and others like him that such conduct will not be tolerated.”
In separate cases in U.S. District Court, Judge Baker also sentenced three other defendants to federal prison terms after each pled guilty to Possession of a Firearm by a Convicted Felon:
- Javonta Sheppard, 26, of Savannah, sentenced to 46 months in prison followed by three years of supervised release;
- Tyshaun Richey, 25, of Savannah, sentenced to 46 months in prison followed by three years of supervised release; and,
- Leaa Jones, 23, of Savannah, sentenced to 24 months in prison followed by three years of supervised release; and,
The cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Savannah Police Department, and prosecuted for the United States by Assistant U.S. Attorneys Marcela C. Mateo, John P. Harper III, and Tania G. Groover.
Armed Millbrook Meth Dealer Sentenced to Fifteen YearsRead the Press Release
MOBILE, AL – A Millbrook, Alabama, man was sentenced to 15 years in prison for conspiracy to possess with intent to distribute methamphetamine and possession of a firearm in relation to a drug trafficking felony.
According to court documents, Jeremy Haynes Stubbs, 41, was identified by a confidential informant as a distributor of methamphetamine in the Selma area. As the result of a recorded phone call with the informant, Stubbs and his co-defendant Craig Charles Plyler, traveled to a pre-arranged meeting location where investigators confronted them. Methamphetamine and a firearm were recovered from their vehicle. Stubbs plead guilty to the two charges in September of 2020.
United States District Court Judge William H. Steele imposed the sentence of 15 years and one month in Stubbs’ case on October 13, 2021, consisting of 121 months on the drug charge and 60 months on the firearms charge, to run consecutively to the sentence on the drug count. The judge ordered that Stubbs will serve a total of five years under supervision when he is released from custody. Special conditions of his supervision include drug testing and treatment, a mental health evaluation and treatment if necessary, and a model search condition. No fine was imposed, but the judge ordered that Stubbs pay $200 in special assessments, and that the firearms seized during the investigation are to be forfeited to the United States.
The case was investigated by the United States Postal Inspectors and the 4th Judicial Circuit Task Force. Assistant United States Attorney Gloria Bedwell prosecuted the case on behalf of the United States.
Anheuser-Busch In-Bev employee pleads guilty in health care fraud schemeRead the Press Release
ST. LOUIS – United States District Court Judge Henry E. Autrey accepted a plea of guilty from Shannon Nenninger on October 12, 2021 for the crimes of conspiracy involving health care fraud, making false statement to a government agency, theft of government funds, and social security fraud.
In September 2020, a federal grand jury indicted Nenninger and others. According to the plea agreement, Nenninger, who was a former Anheuser-Busch In-Bev employee learned that Dr. Thomas Hobbs could assist her in obtaining disability payments from the Social Security Administration, Prudential Insurance of America Companies, and MetLife by exaggerating her medical conditions and claiming that she was totally and permanently disabled. As a result, between January 8, 2013 and November 28, 2017, Nenninger paid Dr. Hobbs $6,100 for his efforts in exaggerating Nenninger’s medical conditions to qualify her for the disability payments. These fees were in addition to those charged by Dr. Hobbs for any medical treatments.
While Nenninger claimed to be so disabled that she could not work, she was travelling internationally and throughout the United States, attending concerts, working in her yard, washing her car, going to various social events, and going fishing. Believing the misrepresentations to be true, the Social Security Administration and the private insurers granted Nenninger disability benefits. Between January 8, 2013 and September 30, 2021, Nenninger fraudulently received more than $457,104 in disability benefit payments and caused the payment of $3,501.88 by Blue Cross Blue Shield to the chiropractors for their medically unnecessary tests and treatments.
The case was investigated by the Social Security Administration – Office of Inspector General and the Federal Bureau of Investigation. Dorothy McMurtry and Tracy Berry are handling the case for the U.S. Attorney’s Office.
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Acting United States Attorney Bruce D. Brandler Thanks WVIA for Producing “A Call to Care”Read the Press Release
HARRISBURG – WVIA will premiere the original documentary film “A Call to CARE” on Thursday, October 14th, at 8 p.m. on WVIA TV. WVIA is the PBS and NPR affiliate serving over 22 counties in northeastern and central Pennsylvania and encores of the documentary will air on Friday, October 15th, at 1 p.m., Sunday, October 17th, at 12:30p.m., Thursday October 21st, at 9 p.m., and Friday, October 22nd, at 2 p.m. In addition, it will also be available to watch on-demand at WVIA.org and on the PBS and WVIA Apps after the broadcast premiere.
“A Call to CARE” is a one-hour original documentary film produced by WVIA that explores the Court-Assisted Re-Entry (CARE) Program that exists in the United States District Court for the Middle District of Pennsylvania. The Middle District’s CARE program is designed to help individuals released from prison avoid a devastating relapse into criminal behavior. As described by WVIA, “the documentary chronicles the program’s comprehensive rehabilitative process and celebrates its healing resonance in the community.”
“The Middle District’s CARE program was one of the first re-entry programs to operate in the federal system and represents one of the most important initiatives of the Department of Justice,” stated Acting United States Attorney Bruce D. Brandler. “Re-entry programs are not just a matter of public safety-it’s also an issue of housing and health care; a question of education and employment; and a family challenge that affects millions across the country every year. Since 2009 we have proudly participated in CARE along with many others in the federal judiciary, the Federal Public Defender’s Office, and the U.S. Probation Office. Numerous private individuals and private organizations have also devoted significant time and money to implement ground-breaking public-private partnerships to provide participants with access to a range of otherwise unavailable resources. We are gratified that WVIA has dedicated its resources to chronicle our efforts and the numerous successful outcomes that have resulted. I want to thank all those who played a part in producing this remarkable documentary and I also want to express my appreciation to all the private individuals and private organizations who have contributed to the program’s success over the years.”
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10 Years in Prison for Highlands County Drug TraffickersRead the Press Release
Miami, Florida – U.S. District Judge K. Michael Moore has sentenced a 53-year-old man from Highlands County, Florida, to 120 months in prison for drug trafficking.
According to the court record, in 2019, Leon McNeil Roberts sold methamphetamine in Avon Park, Highlands County on three separate occasions. Specifically, on June 19, 2019, Roberts sold 27.38 grams of methamphetamine (actual) to a buyer. On June 28, 2019, Roberts sold 27.227 grams of methamphetamine (actual) to a buyer. And, on July 24, 2019, Roberts he sold 26.949 grams of methamphetamine (actual) to a buyer.
Roberts previously pled guilty to distribution of five grams or more of methamphetamine.
Juan Antonio Gonzalez, Acting U.S. Attorney for the Southern District of Florida, and La Verne J. Hibbert, Acting Special Agent in Charge, Drug Enforcement Administration, Miami Field Division made the announcement.
DEA Miami investigated this case. Assistant U.S. Attorney Michael D. Porter is prosecuting it.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-14005.
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13 October 2021
Youngstown men appear in federal court on multiple drug chargesRead the Press Release
WHEELING, WEST VIRGINIA – Kamron Eugene Miller, Sr. and Andre Duana Bundy, both of Youngstown, Ohio, are appearing today on multiple drug charges, United States Attorney William, J. Ihlenfeld, II announced.
Miller, 34, and Bundy, 38, are each charged with one count of “Conspiracy to Distribute and Possess with the Intent to Distribute 50 Grams or More of Methamphetamine, Fentanyl, Cocaine Hydrochloride, and Cocaine Base,” three counts of “Distribution of 50 Grams or More of Methamphetamine,” one count of “Distribution of Methamphetamine,” and one count of “Distribution of Fentanyl.” Miller and Bundy are accused of working together to distribute the drugs from May to September 2021 in Hancock County and elsewhere, including the Northern District of Ohio.
The indictment also includes a forfeiture allegation involving more than $210,000 in cash, an assault rifle, two pistols, and several rounds of ammunition seized during the investigation of the case.
Assistant U.S. Attorneys Shawn M. Adkins and Clayton J. Reid are prosecuting the case on behalf of the government. The Hancock-Brooke-Weirton Drug Task Force, a HIDTA-funded initiative; the Drug Enforcement Administration Wheeling; the Drug Enforcement Administration Youngstown; and the Ohio Highway Patrol investigated. The Marshall County Drug Task Force, a HIDTA-funded initiative; the Ohio Valley Drug Task Force, a HIDTA-funded initiative; and the Mahoning County, Ohio Sheriff’s Office assisted in the investigation.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Magistrate Judge James P. Mazzone presided.
William S. Thompson Sworn in as United States Attorney for the Southern District of West VirginiaRead the Press Release
U.S. Attorney William S. ThompsonCHARLESTON, W.Va. – William S. Thompson took the oath of office today to become the United States Attorney for the Southern District of West Virginia. President Joseph R. Biden, Jr. announced Thompson’s nomination on August 10, 2021, and the United States Senate confirmed him on October 5, 2021. Thompson was sworn in by Chief United States District Judge Thomas E. Johnston in a private ceremony.
“It is an honor to serve as the U.S. Attorney for the Southern District of West Virginia,” said U.S. Attorney William S. Thompson. “I look forward to leading the dedicated public servants in the office as we work in partnership with federal, state and local law enforcement to make communities throughout southern West Virginia safer places to live.”
As United States Attorney, Thompson is the top-ranking law enforcement official in the Southern District of West Virginia. Thompson will oversee a staff of 34 attorneys and 41 non-attorney personnel located in offices in Charleston, Huntington, and Beckley. The office is responsible for prosecuting federal crimes in the district, including crimes related to terrorism, public corruption, child exploitation, firearms, and narcotics. The office also defends the United States in civil cases and collects debts owed to the United States.
Prior to taking office as United States Attorney, Thompson was a Circuit Court Judge in West Virginia’s 25th Judicial Circuit. He was appointed to that position in 2007 and re-elected in 2008 and 2016. Thompson presided over several treatment courts, including the first family treatment court in West Virginia. Prior to becoming a Circuit Court Judge, Thompson practiced law at the law firm of Cook and Cook in Boone County. There, he focused on litigation, which included representing several hundred indigent clients in criminal defense and other matters. Thompson also previously served as President of Madison Healthcare, Inc. and as Vice President of Danville Lumber Company.
Thompson was born in Charleston and raised in Boone County, West Virginia. He earned a degree in civil engineering from West Virginia University and a law degree from West Virginia University College of Law.
Thompson and his wife, Keri, are the proud parents of four children.
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.
Westmoreland County Man Pleads to Drug Possession ChargeRead the Press Release
JOHNSTOWN, Pa. – A former resident of New Florence, PA pleaded guilty in federal court to a charge of violating federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
Nicholas Beard, 28, pleaded guilty to Count One of the Indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on or about October 9, 2020, Beard did possess with intent to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine, and a quantity of a mixture and substance containing a detectable amount of fentanyl.
Judge Gibson scheduled sentencing for Feb. 16, 2022 at 9:30 a.m. The law provides for a minimum sentence of 5 years in prison to a maximum of 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Arnold P. Bernard Jr. is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Laurel Highlands Resident Agency, Southwest Pennsylvania Safe Streets Task Force, and the Indiana County Drug Task Force led the prosecution of Beard.
West Plains Man Sentenced for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A West Plains, Missouri, man was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine in Howell, Greene, and Texas counties.
Jose I. Gonzales, 39, was sentenced by U.S. District Judge Stephen R. Bough to 10 years in federal prison without parole.
On July 23, 2020, Gonzales pleaded guilty to participating in a conspiracy to distribute methamphetamine from Dec. 31, 2015, to June 21, 2019. Gonzales admitted that he received distributive amounts of methamphetamine from co-defendants Shirley J. Hicks, 63, of West Plains, and Luis Ortiz Rodriguez, 38, address unknown, both of whom have pleaded guilty and await sentencing. Gonzales then distributed methamphetamine to others.
When Gonzales was stopped by law enforcement officers on July 24, 2018, he was in possession of 76.1 grams of methamphetamine. Gonzales admitted that he had recently purchased methamphetamine from Hicks. Law enforcement officers executed a search warrant at Hicks’s residence on the same day. They found a red toolbox inside a shop/barn that contained six bags with a total of 5.627 kilograms of pure methamphetamine. Inside a bedroom closet in the house, officers also found 12 bags with a total of 243 grams of pure methamphetamine inside a black leather bag, and a bag of methamphetamine inside a blue waterproof box that contained 122.892 grams of pure methamphetamine. Officers also seized a total of $20,393, which Hicks admitted was proceeds from her distribution of methamphetamine.
On March 20, 2019, law enforcement officers executed a search warrant at the residence of Gonzales’s girlfriend, where they found a baggie that contained approximately 9.4 grams of methamphetamine, a baggie that contained approximately .15 grams of methamphetamine, a baggie that contained assorted pills, a baggie that contained a small amount of marijuana, several glass smoking devices, and a loaded Bersa .380-caliber pistol.
Gonzales is the fourth defendant sentenced in this case. Benny D. Griffin, 59, of West Plains, was sentenced to 15 years in federal prison without parole. Jordan W. Gutierrez, 27, of West Plains, was sentenced to 12 years and six months in federal prison without parole. Fontella J. Noose, 40, of Springfield, Mo., was sentenced to 20 years in federal prison without parole.
Co-defendants Shaun M. Ross, 43, and Raymon F. Ortega, 65, both of West Plains, and James Cooper, 54, of Mountain View, Mo., also have pleaded guilty and await sentencing.
This case is being prosecuted by Assistant U.S. Attorney Jessica R. Sarff. It was investigated by the South Central Drug Task Force, the Drug Enforcement Administration, the Missouri State Highway Patrol, the Howell County, Mo., Sheriff’s Department, the West Plains, Mo., Police Department, and the Mountain View, Mo., Police Department.
Wausau Woman Sentenced to 90 Months Imprisonment for Child Pornography DistributionRead the Press Release
Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on October 12, 2021, Natalie J. Ticho (age: 25) of Wausau, Wisconsin, was sentenced to 90 months in federal prison by Senior United States District Judge William C. Griesbach for distribution of child pornography.
According to court filings, on November 17, 2020, undercover investigators received digital images of child pornography from an online user named “kiikii_24.” “Kiikii_24” also engaged in explicit conversations concerning the sexual abuse of children with the undercover investigators. It was subsequently determined that “kiikii_24” was, in fact, Natalie J. Ticho. A search warrant was obtained for Ticho’s residence and electronic devices. A review of those items revealed hundreds of images of child pornography and several online accounts used for the purpose of obtaining and distributing illegal images.
At sentencing, Judge Griesbach noted the serious nature of the charge and the need for just punishment for such a “terrible crime.” Following her release from prison, Ticho will spend ten years on supervised release. She will also be required to register as a sexual offender.
Ticho’s arrest and subsequent conviction were part of Operation Kick Boxer, a collaborative effort involving the Milwaukee Division of the Federal Bureau of Investigation (FBI), the U.S. Attorney's Office for the Eastern District of Wisconsin, and the Winnebago County Sheriff's Office. (https://go.usa.gov/xfPHh). The Wausau Police Department, the Marathon County Sheriff’s Office, and the Marathon County District Attorney’s Office also assisted in the investigation.
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 U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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For Additional Information Contact:
Public Information Officer Kenneth Gales 414-297-1700
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Waterloo Shooting Results in Federal ConvictionRead the Press Release
A Waterloo man who exchanged gunfire with others in the 900 block of West Fifth Street in Waterloo, Iowa, on July 31, 2020, pled guilty today in federal court in Cedar Rapids.
Tony Terrell Campbell, age 37, from Waterloo was convicted of one count of being a felon in possession of a firearm.
At the plea hearing, Campbell admitted he had a firearm on July 31, 2020, and had previously been convicted of multiple felony offenses including three burglary offenses, theft of lottery tickets, conspiracy to commit a forcible felony, and assault while participating in a felony.
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.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Campbell remains in custody of the United States Marshal pending sentencing. Campbell faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and 3 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Patrick Reinert and was investigated by the Waterloo 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 21-CR-2050. Follow us on Twitter @USAO_NDIA.
U.S. Attorney’s Office presents Medicolegal Symposium to discuss the case against Reta Mays, convicted VA hospital murdererRead the Press Release
CLARKSBURG, WEST VIRGINIA – The U.S. Attorney’s Office, Northern District of West Virginia, is teaming up with Department of Veterans Affairs Office of Inspector General, the FBI, and West Virginia University to hold a symposium discussing the cutting-edge methods used to convict a serial killer who preyed on veterans at the veteran’s hospital in Clarksburg.
In May 2021, Reta Mays, a former nursing assistant at the veteran’s hospital in Clarksburg, was sentenced to seven life terms in prison plus 20 years for murdering seven patients with insulin and attempting to murder an eighth veteran. The two-year investigation that preceded the July 2020 guilty pleas was highly complex.
The symposium consists of examining the clinical, forensic, psychiatry, and legal prosecution techniques used to ensure justice for Mays’ victims and their families. The prosecution team, investigators, and experts from around the globe will be presenting during this dynamic event. The symposium has been approved for CLE and CME credits. Credits for LE in-service are pending.
“The Medicolegal Symposium on the Serial Murder Case of Reta Mays” will be held at the WVU College of Law on Thursday, October 14 from 9:00 a.m.-4:30 p.m.
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U.S. Attorney’s Office Commemorates Domestic Violence Awareness MonthRead the Press Release
In commemoration of October as Domestic Violence Awareness Month, the U.S. Attorney's Office for the Northern District of Ohio is announcing more than $3.3 million in grant funding awarded to programs in the District that address sexual assault, domestic violence, dating violence and stalking in Northern Ohio communities. This grant funding is awarded through the Department of Justice’s Office on Violence Against Women (OVW).
The following is a brief description of the programs and recipients receiving awards.
Transitional Housing Assistance for Victims of Domestic Violence, Dating Violence, Sexual Assault, and Stalking Program (Transitional Housing Program). Recipients include:
- Asian Service In Action, Inc., $475,000
- Cleveland Rape Crisis Center, $325,000
The Transitional Housing Program provides aid to victims of domestic violence, dating violence, sexual assault, and stalking who are homeless, or in need of transitional housing or other housing assistance, as a result of their victimization, and for whom emergency shelter services or other crisis intervention services are unavailable or insufficient.
Sexual Assault Services Culturally Specific Program (SAS Culturally Specific Program). Recipients include:
- Asian Service In Action, Inc., $475,000
The SAS Culturally Specific Program provides intervention and assistance to victims of sexual assault from culturally specific communities that confront unique challenges when seeking assistance, such as language and cultural barriers.
Legal Assistance for Victims (LAV) Grant Program. Recipients include:
- The Ohio Alliance to End Sexual Violence, $800,000.
The LAV program aims to increase the availability of civil and criminal legal assistance for adult and youth victims of domestic violence, dating violence, sexual assault and stalking by providing funds for legal services to victims in matters relating to or arising out of that abuse or violence.
Grants to Support Families in the Justice System program (referred to as the Justice for Families Program). Recipients include:
- Community Legal Aid Service Inc, $650,000
- Legal Aid of Western Ohio, Inc. $650,000
The Justice for Families Program seeks to improve the response of the civil and criminal justice system to families with a history of domestic violence, dating violence, sexual assault and stalking or in cases involving allegations of child sexual abuse.
The Office on Violence Against Women provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges.
Learn more at www.justice.gov/ovw.
To sign up for OVW alerts visit this webpage or follow OVW on Twitter @OVWJustice.
U.S. Attorney Damian Williams Announces the Selection of Deputy U.S. Attorney and Chief of the Criminal DivisionRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, today announced the selection of Margaret Garnett as Deputy United States Attorney and Daniel M. Gitner as Chief of the Office’s Criminal Division.
Since December 2018, Ms. Garnett has served as the Commissioner of New York City’s Department of Investigation (“DOI”), one of the oldest municipal anti-corruption agencies in the United States. Prior to her service at DOI, Ms. Garnett served as Executive Deputy Attorney General for Criminal Justice in the Office of the New York State Attorney General. Ms. Garnett was an Assistant U.S. Attorney in the Office for 12 years, serving at times as Chief of Appeals and Chief of the Violent and Organized Crime Unit. She received the Director’s Award for Outstanding Performance and the Stimson Medal for her exceptional service in the Criminal Division. Prior to her public service, Ms. Garnett worked as an associate at Wachtell, Lipton, Rosen & Katz. She began her public service career as a law clerk to the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York. Ms. Garnett received her B.A. from the University of Notre Dame, her M.A. from Yale University, and her J.D. from Columbia University.
Mr. Gitner returns to the Office from the law firm of Lankler Siffert & Wohl, where he has served as a partner since 2005. From 1997 to 2005, he served as an Assistant U.S. Attorney in the Southern District of New York and served, from 2003 to 2005, as Chief of the General Crimes Unit. During his tenure, he received the Director’s Award for Superior Performance and was named the Federal Prosecutor of the Year in 2003 by the Federal Law Enforcement Foundation. He began his legal career as a law clerk to the Honorable Naomi Reice Buchwald and to the Honorable Barbara S. Jones, both of the U.S. District Court for the Southern District of New York. Mr. Gitner received his B.A. from Cornell University and his J.D. from Columbia University.
In making these selections, U.S. Attorney Damian Williams said: “I am pleased to welcome Margaret and Dan back to the U.S. Attorney’s Office. Margaret was a legendary Assistant U.S. Attorney. During her time in the Office, she led some of the Office’s most important investigations and prosecutions, and mentored countless AUSAs. Her storied career in public service leaves no doubt that she will be an exceptional Deputy U.S. Attorney. Dan was one of the best AUSAs of his generation when he was in the Office, and he has been one of the best trial lawyers in America since he left. I am confident that his experience, judgment, and love for the Office will make him an outstanding Chief of the Criminal Division. I want to thank Ilan Graff and Laura Birger for their friendship and outstanding service to the Office during some of the most unprecedented times in the history of the Southern District of New York. I have asked Ilan and Laura to continue their service until Margaret’s and Dan’s arrival and to advise the new Executive staff, and me, during this period of transition.”
U.S. Attorney Announces Charges Against 11 Members of Money Laundering and Bank Fraud RingRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Patrick J. Freaney, the Special Agent-in-Charge of the New York Field Office of the United States Secret Service (“Secret Service”), announced today the unsealing of an Indictment charging 11 defendants with conspiracy to commit money laundering, conspiracy to commit bank fraud, and aggravated identity theft, in connection with their involvement in laundering millions of dollars in proceeds derived from business email compromises and romance fraud schemes. Nine defendants were arrested today in the District of New Jersey and the Eastern District of New York, and will be presented this afternoon before United States Magistrate Judge Sarah Netburn in the Southern District of New York. One defendant was arrested in the Southern District of Texas, and will be presented today in that district’s federal court. One defendant remains at large.
U.S. Attorney Damian Williams said: “As alleged, the defendants were part of a criminal enterprise that not only defrauded businesses by assuming the online identities of legitimate counterparties, but also preyed on vulnerable elderly people, deceiving victims into sending money in phony romance scams. Thanks to the Secret Service, the defendants are now facing federal felony charges.”
Secret Service Special Agent-in-Charge Patrick J. Freaney said: “As the continued threat posed by cyber enabled fraud remains ever present, the U.S. Secret Service remains steadfast in its pursuit of those who threaten our collective financial security. This case is no exception, as the defendants allegedly utilized a myriad of fraud schemes, to include romance scams and business email compromises, to defraud over 50 victims in excess of $9 million. Due to the efforts of the Secret Service and our partners at the New York City Police Department Financial Crimes Task Force, this organized group will no longer be able to operate its alleged scheme to defraud and will answer the charges brought against them in the Southern District of New York.”
As alleged in the Indictment unsealed in Manhattan federal court[1]:
ADEDAYO JOHN, OLUWADAMILOLA AKINPELU, KAZEEM RAHEEM, MORAKINYO GBEYIDE, WARRIS ADENUGA, a/k/a “Blue,” SMART AGUNBIADE, LATEEF GOLOBA, SAMSONDEEN GOLOBA, OLAWALE OLANIYAN, OLAWOYIN PETER OLAREWAJU, and EMMANUEL ORONSAYE-AJAYI (collectively, the “Defendants”) participated in one or both of a money laundering conspiracy and bank fraud conspiracy, which received funds stolen from victims.
Victims were typically defrauded in one of two ways. In some instances, business email compromise fraud schemes were used to trick businesses into transferring funds to bank accounts the victims believed were under the control of legitimate recipients of the funds as part of normal business operations, when in fact the bank accounts were under the control of the Defendants or their co-conspirators. In other instances, romance scams were used, primarily through electronic messages sent via email, text messaging, social media, or online dating websites, to deceive victims – many of whom were vulnerable older men and women – into believing they were in romantic relationships with fake identities, and then using false pretenses to cause the victims to transfer funds to bank accounts controlled by the Defendants or their co-conspirators.
As a result of these frauds, law enforcement officers have identified more than 50 victims who have transferred more than $9 million to bank accounts under the control of the Defendants.
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Ten defendants – ADEDAYO JOHN, 32, OLUWADAMILOLA AKINPELU, 26, KAZEEM RAHEEM, 29, MORAKINYO GBEYIDE, 39, WARRIS ADENUGA, a/k/a “Blue,” 26, LATEEF GOLOBA, 27, SAMSONDEEN GOLOBA, 29, OLAWALE OLANIYAN, 41, OLAWOYIN PETER OLAREWAJU, 34, and EMMANUEL ORONSAYE-AJAYI, 30 – are each charged with one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison. Nine defendants – ADEDAYO JOHN, 32, SMART AGUNBIADE, 28, OLUWADAMILOLA AKINPELU, 26, MORAKINYO GBEYIDE, 39, WARRIS ADENUGA, a/k/a “Blue,” 26, LATEEF GOLOBA, 27, SAMSONDEEN GOLOBA, 29, OLAWOYIN PETER OLAREWAJU, 34, and EMMANUEL ORONSAYE-AJAYI, 30 – are each charged with one count of conspiracy to commit bank fraud, which carries a maximum sentence of 30 years in prison. One defendant – MORAKINYO GBEYIDE, 39 – is also charged with one count of aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison. The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by a judge.
Mr. Williams praised the outstanding investigative work of the Secret Service. The case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Kaylan E. Lasky and Matthew Weinberg are in charge of the prosecution.
The charges contained in the Indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations and every fact described should be treated as an allegation.
Two Individuals Sentenced for COVID-19 Relief FraudRead the Press Release
A Georgia man was sentenced today to 18 months in federal prison for fraudulently obtaining $285,742 through a Paycheck Protection Program (PPP) loan guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security Act.
Dennes Garcia, 28, of Atlanta, pleaded guilty in the Southern District of Florida to conspiracy to commit wire fraud on July 6. According to court documents, Garcia admitted to obtaining a PPP loan of $285,742 for his own company, Dhanda Corporation, based on false information about the company’s number of employees and average payroll, and based on false supporting tax documents. Garcia also admitted that he wrote himself a check for $100,000 using the PPP loan proceeds, and further admitted that he paid more than $71,000 to an alleged co-conspirator, James Stote, as a kickback for his assistance in preparing and submitting the fraudulent loan application. In addition to his prison sentence, Garcia was ordered to pay $285,742 in restitution and $285,742 in forfeiture.
Relatedly, Cindi Denton, 63, of Eastvale, California, was sentenced on Oct. 8 to six months in prison and 12 months of home confinement after pleading guilty in the Southern District of Florida to conspiracy to commit wire fraud on July 22. According to court documents, Denton admitted to obtaining a PPP loan of $491,310 for her own company, Emerald Jade Solutions Inc., based on false information about the company’s number of employees and average payroll and based on false supporting tax documents. Denton also admitted that she sent a $150,000 wire to her personal checking account using the PPP loan proceeds, and further admitted that she paid more than $98,000 to alleged co-conspirator Stote as a kickback for his assistance in preparing and submitting the fraudulent PPP loan application. In addition to her prison sentence, Denton was ordered to pay $377,883.91 in restitution and $377,883.91 in forfeiture.
Stote was charged by complaint on June 24, 2020, with wire fraud, bank fraud, and conspiracy to commit wire fraud. His case remains pending.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Juan Antonio “Tony” Gonzalez of the Southern District of Florida; Special Agent in Charge Michael J. De Palma of the IRS-Criminal Investigation (IRS-CI) Miami Field Office; Special Agent in Charge George L. Piro of the FBI’s Miami Field Office; and Special Agent in Charge Amaleka McCall-Brathwaite of the SBA’s Office of Inspector General (SBA-OIG) Eastern Region made the announcement.
IRS-CI, the FBI, and SBA-OIG investigated the cases.
Trial Attorney Philip Trout of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Lindsey Lazopoulos Friedman of the Southern District of Florida prosecuted the cases.
The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. Since the PPP began, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
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.
A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Individuals Sentenced for COVID-19 Relief FraudRead the Press Release
Miami, Florida – A Georgia man was sentenced today to 18 months in federal prison for fraudulently obtaining $285,742 through a Paycheck Protection Program (PPP) loan guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Dennes Garcia, 28, of Atlanta, pleaded guilty in the Southern District of Florida to conspiracy to commit wire fraud on July 6. According to court documents, Garcia admitted to obtaining a PPP loan of $285,742 for his own company, Dhanda Corporation, based on false information about the company’s number of employees and average payroll and based on false supporting tax documents. Garcia also admitted that he wrote himself a check for $100,000 using the PPP loan proceeds, and further admitted that he paid $71,435.50 to an alleged co-conspirator, James Stote, as a kickback for his assistance in preparing and submitting the fraudulent loan application. In addition to his prison sentence, Garcia was ordered to pay $285,742 in restitution and $285,742 in forfeiture.
Relatedly, Cindi Denton, 63, of Eastvale, California, was sentenced on Oct. 8 to six months in prison and 12 months of home confinement after pleading guilty in the Southern District of Florida to conspiracy to commit wire fraud on July 22. According to court documents, Denton admitted to obtaining a PPP loan of $491,310 for her own company, Emerald Jade Solutions Inc., based on false information about the company’s number of employees and average payroll and based on false supporting tax documents. Denton also admitted that she sent a $150,000 wire to her personal checking account using the PPP loan proceeds, and further admitted that she paid $98,262 to alleged co-conspirator Stote as a kickback for his assistance in preparing and submitting the fraudulent PPP loan application. In addition to her prison sentence, Denton was ordered to serve three years of supervised release, and to pay $377,883.91 in restitution and $377,883.91 in forfeiture.
Stote was charged by complaint on June 24, 2020, with wire fraud, bank fraud, and conspiracy to commit wire fraud, and his case remains pending.
Acting U.S. Attorney Juan Antonio Gonzalez of the Southern District of Florida; Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Special Agent in Charge Michael J. De Palma of the IRS-Criminal Investigation (IRS-CI) Miami Field Office; Special Agent in Charge George L. Piro of the FBI’s Miami Field Office; and Special Agent in Charge Amaleka McCall-Brathwaite of the SBA’s Office of Inspector General (SBA-OIG) Eastern Region made the announcement.
The IRS-CI, FBI, and SBA-OIG investigated the case.
Assistant U.S. Attorney Lindsey Lazopoulos Friedman and of the Southern District of Florida and Trial Attorney Philip Trout of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. Since the PPP began, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
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.
A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
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Trini E. Ross Sworn in as U.S. Attorney for the Western District of New YorkRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. – Trini E. Ross was sworn in on Monday, October 11, 2021, as United States Attorney for the Western District of New York. Ms. Ross was nominated by President Joseph R. Biden, Jr. on July 26, 2021, and unanimously confirmed by the Senate on September 30, 2021, for the Western District of New York. President Biden signed Ms. Ross’s commission on October 5, 2021. Chief U.S. District Judge Elizabeth A. Wolford administered the oath of office to U.S. Attorney Ross on Monday.
“It is an honor to serve as the United States Attorney for the Western District of New York,” stated U.S. Attorney Ross. “I look forward to working with the dedicated staff in our office, as well as our law enforcement partners at the federal, state and local levels, as we all work together to uphold the mission of the Department of Justice. I also look forward to working with our community partners as we strive to make the neighborhoods throughout our district safe and secure for all residents.”
As U.S. Attorney, Ms. Ross is responsible for overseeing the prosecution of any federal criminal case brought within the 17 counties of Western New York. The Office also represents the United States in all civil matters brought within this territory.
Ms. Ross most recently served as the Director of Investigations, Legal Division, with the National Science Foundation’s Office of Inspector General since 2018. Ms. Ross has also been an adjunct professor at The State University of New York, at Buffalo, School of Law, since 2006. From 1995 to 2018, Ms. Ross was an Assistant United States Attorney for the Western District of New York, where she served as the Senior Litigation Counsel and the Chief of the Anti-Fraud and Corruption Section from 2012 to 2017. Ms. Ross also served as an Assistant Counsel with the Department of Justice’s Office of Professional Responsibility from 2007 to 2009. She was previously a civil litigation associate at Hiscock & Barclay, LLC from 1994 to 1995. Ms. Ross served as an Appellate Court Attorney for the New York State Supreme Court from 1992 to 1994.
Ms. Ross, native of Buffalo, NY, received her J.D., cum laude, from The State University of New York, at Buffalo, School of Law, in 1992, her M.A. from Rutgers University in 1990, and her B.A. from The State University of New York, at Fredonia, in 1988.
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Tijuana Man Sentenced to Nearly 9 Years in Prison for Attempting to Buy Machine Guns, Grenades in Exchange for Fentanyl and HeroinRead the Press Release
LOS ANGELES – A former San Bernardino County resident was sentenced today to 105 months in federal prison for providing approximately 1 kilogram of fentanyl and 1 kilogram of heroin in exchange for machine guns, grenade launchers and a case of what he believed were six dozen live grenades.
Pedro Roberto Hernandez-Gomez, 32, formerly of San Bernardino and who was a resident of Tijuana, Mexico at the time of his arrest, was sentenced by United States District Judge André Birotte Jr. Hernandez-Gomez pleaded guilty on March 12 to one count of distribution of fentanyl.
In January 2020, Hernandez-Gomez agreed to provide narcotics in exchange for firearms to a person he believed was a drug customer, but who was in fact a source working with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Hernandez-Gomez provided 999.25 grams of heroin and 1,001.19 grams of fentanyl to the source and an undercover ATF agent.
In exchange for the narcotics, Hernandez-Gomez received three machine guns, two grenade launchers and one case of 72 inert grenades, which Hernandez-Gomez believed were actual grenades.
Hernandez-Gomez possessed these firearms despite having been previously convicted of a felony offense – possession with intent to distribute heroin – in federal court in Arizona in February 2014. He was sentenced to three years in federal prison for that offense.
“The distribution of illegal drugs poses a serious danger to the community, especially the distribution of fentanyl, a potent and powerful opioid,” prosecutors wrote in their sentencing memorandum. “Further concerning is that [Hernandez-Gomez] was providing this large quantity of drugs in exchange for dangerous firearms, that is, machine guns and grenade launchers.”
The ATF investigated this matter.
Assistant United States Attorney Ashley Fillmore of the General Crimes Section prosecuted this case.
Third and Final Defendant Sentenced for Stealing from Railroad CarsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Paul Krieger, 46, of Sloan, NY, who was convicted of breaking into and larceny from interstate carrier facilities, was sentenced to serve 57 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 10 dates in May and June 2018, the defendant and co-defendants Ray Chrostowski and Nicholas Birdwell 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 stole property. The property included televisions, sound systems, microwaves, sneakers, liquor, tires and rims from vehicles, and UPS shipping parcels. On each occasion, 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 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.
• On June 22, 2018, the defendants stole approximately 20 cases (120 bottles) of Jefferson bourbon, and sold them for profit.
• On June 26, 2018, the defendants stole a 50-inch Samsung television.Chrostowski and Birdwell were previously convicted and sentenced to serve 18 months in prison.
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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Texas Pharmacist Pleads Guilty to Adulterating Drug Used in Cataract SurgeriesRead the Press Release
A Texas man pleaded guilty Tuesday to one count of adulterating a drug that was used in cataract surgeries.
According to court documents, Jack Randall Munn, 71, of Dallas, a licensed pharmacist and former owner of Guardian Pharmacy Services (Guardian), a Dallas pharmacy, oversaw the compounding of the drug for two outpatient Dallas surgical centers in 2016 and 2017. The drug, a combination of an antibiotic and a steroid, contained an excessive amount of an inactive ingredient that can damage sensitive eye tissue.
At the time of the events described in court documents, Munn represented to the surgical centers that Guardian could compound the drug in a manner safe for injection into patients’ eyes. However, the drug made by Guardian contained an excessive amount of the inactive ingredient, causing its purity and quality to fall below that which it was represented to possess.
Munn pleaded guilty to one misdemeanor count of distributing an adulterated drug in violation of the Federal Food Drug and Cosmetic Act. He is scheduled to be sentenced on Feb. 3, 2022 and faces a maximum penalty of one year in prison and a fine of up to $100,000. The federal magistrate judge who presided over Munn’s guilty plea will determine sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Food and Drug Administration’s (FDA) Office of Criminal Investigations investigated the case.
Assistant Director John Claud, Senior Trial Counsel David A. Frank and Trial Attorney Sarah Williams of the Civil Division’s Consumer Protection Branch are prosecuting the case. Associate Chief Counsel for Enforcement Karen Towns with the FDA’s Office of Chief Counsel, and the U.S. Attorney’s Office for the Northern District of Texas provided valuable assistance in the case.
Texas Man Sentenced for Hate Crime and Other Charges After Using Dating App to Target Gay Men for Violent CrimesRead the Press Release
Daniel Jenkins, 22, of Dallas was sentenced today for committing violent crimes as part of a conspiracy to target users of the dating app Grindr. Jenkins was sentenced to a federal prison term of 280 months for his involvement in the scheme to target gay men for violent crimes. He is the last of four defendants to be sentenced in this case.
According to documents filed in connection with this case, the defendant admitted that he conspired to and then targeted nine men in and around Dallas for violent crimes, including kidnapping, carjacking and hate crimes, because of his perception of the victims’ sexual orientation, that is, because he believed the victims were gay men. Beginning on or around Dec. 6, 2017, members of the conspiracy used Grindr, a social media dating platform used primarily by gay men, to lure men to an apartment complex in Dallas. When the men arrived, the conspirators held the men at gunpoint and forced them to drive to local ATMs to withdraw cash from their accounts.
“This defendant targeted innocent victims for violent crimes simply because he believed they were gay,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This sentence affirms that bias-motivated crimes run contrary to our national values and underscores the Justice Department’s commitment to aggressively prosecuting bias-motivated crimes, including crimes against the LGBTQI community. We will continue to pursue justice for victims of bias-motivated crimes, wherever they occur.”
“This defendant singled out victims based on their perceived sexual orientation, then viciously assaulted them. The Department of Justice will not tolerate these sorts of heinous, hate-based attacks,” said Acting U.S. Attorney Chad Meacham for the Northern District of Texas. “Unfortunately, despite our best efforts, bigots often lurk online. We urge users of dating apps like Grindr to remain vigilant.”
“This sentence sends a strong message that individuals who conduct violent, targeted attacks will be held accountable,” said Special Agent in Charge Matthew J. DeSarno of the FBI Dallas Field Office. “Investigating hate crimes is one of the FBI's highest priorities and we will continue to vigorously pursue offenders that threaten our families and communities. Everyone deserves to be and feel safe and we take this opportunity to urge the public to report suspected hate crimes to the FBI and local law enforcement.”
With his guilty plea on June 2, Jenkins admitted to joining the conspiracy to target gay men for violent crimes. Starting in December of 2017, Jenkins and a coconspirator created user profiles on Grindr and used the profiles to lure men they perceived to be gay to a location to rob them. Jenkins further admitted that on Dec. 11, 2017, he and others lured multiple victims to the apartment complex, pointed a handgun at them, took their personal property and assaulted them, causing at least one victim physical injury. Jenkins admitted that he knew that members of the conspiracy used gay slurs and taunted the victims, and that at least one member of the conspiracy attempted to sexually assault a victim. Jenkins also admitted to participating in the carjacking of at least one victim.
Jenkins was the last of four defendants to plead guilty in this case. Jenkins pleaded guilty to one count of conspiracy to commit hate crimes, kidnapping, and carjacking; one hate crime count; and one count of use of a firearm during and in relation to a crime of violence. Under the plea agreement, Jenkins faced a maximum sentence of 26 years in prison. Jenkins’ coconspirators: Michael Atkinson, Pablo Ceniceros-Deleon and Daryl Henry, had previously pleaded guilty. Atkinson was sentenced to more than 11 years in prison, Ceniceros-Deleon was sentenced to 22 years in prison and Henry was sentenced to 20 years in prison.
The FBI’s Dallas Field Office conducted the federal investigation; a separate criminal investigation is being conducted by the Dallas Police Department. Deputy Chief Rose E. Gibson and Trial Attorney Kathryn Gilbert of the Justice Department’s Civil Rights Division, along with Assistant U.S. Attorney Nicole Dana, prosecuted the case.
Trial Set for Five Defendants Charged in Firearm Trafficking ConspiracyRead the Press Release
Acting United States Attorney Bob Murray announced today that the United States District Court for the District of Wyoming has completed arraignment hearings and set a trial date for five defendants charged by indictment with conspiracy to make false statements during the purchase of firearms and to unlawfully transport and transfer firearms outside of the state of Wyoming. The co-conspirators charged include SHERWIN J. WILLIAMS, 26, of Lancaster, California, TIERRA HOLLAND, 33 of Cheyenne, Wyoming, DARWIN FRANCISCO THOMAS, 33, of Cheyenne, Wyoming, DEXTER ALFRED THOMAS, 31, of Gardena, California, and PHILLIP MARTIN FLORES, of Las Vegas, Nevada. The trial is set for January 18, 2022 and is expected to last eight days.
These crimes are being investigated by the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Wyoming Division of Criminal Investigation; Laramie Police Department, and the Cheyenne Police Department. Assistant United States Attorney Timothy J. Forwood is prosecuting the case.
An indictment merely containsSt. Paul Man Pleads Guilty to St. Paul Robbery SpreeRead the Press Release
ST. PAUL, Minn. – A St. Paul man pleaded guilty to one count of Hobbs Act robbery in relation to a robbery spree of St. Paul businesses, announced Acting U.S. Attorney W. Anders Folk.
According to court documents, on June 14, 2021, Warren Dean, 27, entered a Speedway gas station, flashed a realistic looking replica gun at the employees, and ordered them to give him money from the cash register. Dean ordered the employees to lay on the ground and fled the scene with approximately $292 in cash.
As part of his guilty plea to the Speedway robbery, Dean also admitted to robbing or attempting to rob another six St. Paul businesses between June 14 and 16, 2021. After his last robbery on June 16, St. Paul police attempted to apprehend Dean, but he fled from officers and led them on a 30-mile car chase that ended in north Minneapolis after Dean crashed into multiple parked cars. After his vehicle stopped, Dean refused to surrender and a four-hour standoff ensued before officers were able to take Dean into custody without incident.
Dean entered his guilty plea yesterday before Senior U.S. District Judge Michael J. Davis. A sentencing date has not been set.
This case is the result of investigations conducted by the FBI, the St. Paul Police Department, and the Minneapolis Police Department.
Assistant U.S. Attorney Harry M. Jacobs is prosecuting the case.
St. Charles man pleads guilty to distribution of fentanyl that led to death of area manRead the Press Release
ST. LOUIS – United States District Court Judge Henry E. Autrey accepted a plea of guilty from Keith A. Kos, Jr., on October 12, 2021, for the crimes of distribution of fentanyl and methamphetamine, possession with intent to distribute fentanyl and knowingly possessing a firearm in furtherance of a drug trafficking crime. Judge Autrey set sentencing for January 18, 2022.
According to the plea agreement, the case began on January 6, 2020, when the St. Charles County Police Department were dispatched to an area residence for an overdose death. A subsequent examination and toxicology analysis revealed the victim’s cause of death was the result of fentanyl and methamphetamine intoxication.
The investigation led to the identification of Kos. The investigators obtained a state search warrant for Kos’s residence. Investigators executed the search warrant and seized items including a pistol, more than 400 capsules of fentanyl and other drug paraphernalia. A subsequent lab analysis revealed the capsules contained 40 grams or more of fentanyl.
Pursuant to the plea agreement, Kos acknowledged and admitted that he knowingly distributed fentanyl and methamphetamine, knowingly possessed with the intent to distribute fentanyl and possessed a firearm while doing so.
The case was investigated by the St. Charles County Police Department and the Drug Enforcement Administration.
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South Florida Armed Robber Sentenced to 30 Years in Federal PrisonRead the Press Release
Miami, Florida – U.S. District Judge William P. Dimitrouleas handed down a 30-year federal prison sentence for Bryan David Burke, an Oakland Park man who went on a one-month armed robbery spree in South Florida earlier this year. The judge sentenced a second armed robber, Fort Lauderdale resident Kelvyn Lavon Cross, Jr., to 17 years’ imprisonment.
From February 24 to March 31, Burke robbed 10 stores in Broward and Palm Beach counties at gunpoint (including convenience stores, a liquor store, and a gas station). During each robbery, Burke pointed a firearm at the store cashier while an accomplice grabbed money, lottery tickets, and other valuables. Burke recruited Kelvyn Lavon Cross Jr. – who was on state probation after serving 13 years in prison for committing multiple robberies – to assist him on six of the robberies. Cross brandished a firearm during two of those robberies. On the day of Burke’s arrest, before officers took him into custody, Burke led officers on a high-speed chase, abandoned his vehicle, ran through multiple private backyards, and broke into a home where he had a fist fight with someone inside. After taking Burke into custody, officers seized two firearms and ammunition from him. Burke tried to discard one of the firearms while fleeing from officers.
On July 7, Burke pled guilty to five counts of federal robbery (Hobbs Act) and three counts of brandishing a firearm during a crime of violence. On July 28, Cross pled guilty to three counts of federal robbery (Hobbs Act) and two counts of possessing a firearm during a crime of violence.
A third South Florida resident, Brandon Xavier Jones, pled guilty in this case to two counts of federal robbery (Hobbs Act). Judge Dimitrouleas will sentence Jones on November 19, at 1:15 p.m., in federal district court in Fort Lauderdale.
Juan Antonio Gonzalez, Acting U.S. Attorney for the Southern District of Florida, and Robert Cekada, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, made the announcement.
ATF Miami (Plantation) investigated the case, with assistance from Broward Sheriff’s Office, Fort Lauderdale Police Department, Wilton Manors Police Department, and Delray Beach Police Department. Assistant United States Attorneys Ajay Alexander and Brooke Latta are prosecuting this case.
This case stems from Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. In 2017, PSN was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-60144.
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Senior Executive of Oil-Services Company Pleads Guilty to Securities Fraud Scheme that Caused over $886 Million in Shareholder LossesRead the Press Release
A North Dakota man, formerly the executive vice president of U.S. operations at a publicly traded Canadian oil-services company, pleaded guilty today to perpetrating a scheme to fraudulently inflate the company’s reported revenue that resulted in shareholder losses in excess of $886 million.
According to court documents, Joseph A. Kostelecky, 60, of Dickinson, admitted that he engaged in a scheme to defraud while serving as the highest-ranking U.S. executive of Poseidon Concepts Corporation (Poseidon) from approximately November 2011 to December 2012. Kostelecky admitted that, in his role, he caused Poseidon to falsely report approximately $100 million in revenue from purported long-term contracts with oil and natural-gas companies that were Poseidon’s customers. Kostelecky’s misconduct included fraudulently directing Poseidon’s accounting staff at the U.S. corporate headquarters in Denver, Colorado, as well as its field office in Dickinson, to record revenue from such contracts and then assuring management that the associated revenue was collectable, when he knew that the contracts either did not exist or that the associated revenue was not collectable. After Poseidon reported a partial write-down of uncollectable accounts in its financial statements, resulting in a drop in the company’s stock price, Kostelecky fraudulently caused the issuance of a public filing falsely reporting that he had purchased a substantial number of shares of the company, when in fact he had made no such purchase. Kostelecky admitted that when the inflated revenue came to light at the end of 2012, Poseidon’s stock price plunged and the company was forced into bankruptcy, causing over $886 million in shareholder losses. Kostelecky further admitted that he perpetrated the scheme to inflate the value of the company’s stock price and to enrich himself through the continued receipt of compensation and appreciation of his own stock and stock options.
“Joseph Kostelecky engaged in a fraudulent scheme with catastrophic consequences to Poseidon Concepts Corporation and its shareholders, resulting in hundreds of millions of dollars in victim losses,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Today’s guilty plea demonstrates the department’s continued commitment to prosecuting executives at all levels of public companies, holding them accountable for their misconduct, and protecting the investing public from corporate malfeasance.”
“The U.S. Postal Inspection Service has a history of protecting American investors from fraudulent schemes perpetrated by individuals driven by sheer greed,” said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service’s Criminal Investigations Group. “Today’s guilty plea demonstrates corporate executives are not exempt from justice. The U.S. Postal Inspection Service and its federal law enforcement partners will continue to exhaust all their efforts to protect American shareholders from corporate fraud.”
Kostelecky pleaded guilty to one count of wire fraud and one count of securities fraud in the District of North Dakota. He is scheduled to be sentenced on Jan. 10, 2022, and faces a maximum total penalty of 40 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Postal Inspection Service Criminal Investigation Group’s DOJ Mail Fraud Team is investigating the case.
Assistant Deputy Chief Anna G. Kaminska and Trial Attorney Jason M. Covert of the Criminal Division’s Fraud Section are prosecuting the case. The Securities and Exchange Commission and the U.S. Attorney’s Office for the District of North Dakota provided valuable assistance in this matter.
Senior Executive of Oil-Services Company Pleads Guilty to Securities Fraud Scheme that Caused over $886 Million in Shareholder LossesRead the Press Release
WASHINGTON: A North Dakota man, formerly the executive vice president of U.S. operations at a publicly traded Canadian oil-services company, pleaded guilty today to perpetrating a scheme to fraudulently inflate the company’s reported revenue that resulted in shareholder losses in excess of $886 million.
According to court documents, Joseph A. Kostelecky, 60, of Dickinson, admitted that he engaged in a scheme to defraud while serving as the highest-ranking U.S. executive of Poseidon Concepts Corporation (Poseidon) from approximately November 2011 to December 2012. Kostelecky admitted that, in his role, he caused Poseidon to falsely report approximately $100 million in revenue from purported long-term contracts with oil and natural-gas companies that were Poseidon’s customers. Kostelecky’s misconduct included fraudulently directing Poseidon’s accounting staff at the U.S. corporate headquarters in Denver, Colorado, as well as its field office in Dickinson, to record revenue from such contracts and then assuring management that the associated revenue was collectable, when he knew that the contracts either did not exist or that the associated revenue was not collectable. After Poseidon reported a partial write-down of uncollectable accounts in its financial statements, resulting in a drop in the company’s stock price, Kostelecky fraudulently caused the issuance of a public filing falsely reporting that he had purchased a substantial number of shares of the company, when in fact he had made no such purchase. Kostelecky admitted that when the inflated revenue came to light at the end of 2012,
Poseidon’s stock price plunged and the company was forced into bankruptcy, causing over $886 million in shareholder losses. Kostelecky further admitted that he perpetrated the scheme to inflate the value of the company’s stock price and to enrich himself through the continued receipt of compensation and appreciation of his own stock and stock options.
"Joseph Kostelecky engaged in a fraudulent scheme with catastrophic consequences to Poseidon Concepts Corporation and its shareholders, resulting in hundreds of millions of dollars in victim losses," said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. "Today’s guilty plea demonstrates the department’s continued commitment to prosecuting executives at all levels of public companies, holding them accountable for their misconduct, and protecting the investing public from corporate malfeasance."
The U.S. Postal Inspection Service has a history of protecting American investors from fraudulent schemes perpetrated by individuals driven by sheer greed," said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service’s Criminal Investigations Group. "Today’s guilty plea demonstrates corporate executives are not exempt from justice. The U.S. Postal Inspection Service and its federal law-enforcement partners will continue to exhaust all their efforts to protect American shareholders from corporate fraud."
Kostelecky pleaded guilty to one count of wire fraud and one count of securities fraud in the District of North Dakota. He is scheduled to be sentenced on Jan. 10, 2022, and faces a maximum total penalty of 40 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Postal Inspection Service Criminal Investigation Group’s DOJ Mail Fraud Team is investigating the case.
Assistant Deputy Chief Anna G. Kaminska and Trial Attorney Jason M. Covert of the Criminal Division’s Fraud Section are prosecuting the case. The Securities and Exchange Commission and the U.S. Attorney’s Office for the District of North Dakota provided valuable assistance in this matter.
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Savannah man sentenced to prison for setting fire at hotelRead the Press Release
SAVANNAH, GA: A transient man living in Savannah has been sentenced to federal prison for setting a February fire at a Savannah hotel.
Gary Taylor Smith, 35, of Savannah, was sentenced to 60 months in prison after pleading guilty to one count of Arson, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge William T. Moore Jr. also ordered Smith to pay $1,464.53 in restitution and to serve three years of supervised release after completion of his prison term. There is no parole in the federal system.
“Deliberately setting a fire at an occupied hotel is a cowardly and potentially deadly act,” said Acting U.S. Attorney Estes. “Thanks to quick work from the Savannah Fire Department and the ATF, Gary Smith is being held accountable for his crime.”
Smith was captured on video surveillance just after 3 a.m. on Feb. 28, 2021, when he set fire to a pile of rags behind the Marshall Hotel on East Broughton Street. Firefighters extinguished the blaze, which caused only minor smoke damage inside the hotel. All 68 occupants of the hotel were safely evacuated. Savannah Police officers arrested Smith three weeks later after identifying him from a surveillance photo.
“The identification and prosecution of arson crimes continues to be a core mission for ATF,” said ATF Assistant Special Agent in Charge Beau Kolodka. “Arson is a crime of violence that can result in death, injuries and property damage and we are proud to have worked with the Savannah Fire Department to quickly identify and apprehend Mr. Smith.”
“This case is another example of the importance of a strong working relationship between local and federal law enforcement,” said Savannah Fire Department Chief Fire Investigator Fred Anderson. “Together we were able to combine our investigative resources and bring this arsonist to justice.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Savannah Fire Department Arson Unit, and the Savannah Police Department, and prosecuted for the United States by Assistant U.S. Attorney Tania G. Groover.