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13 October 2021
Savannah man sentenced to federal prison for distributing child pornographyRead the Press Release
SAVANNAH, GA: A Chatham County man has been sentenced to more than seven years in prison after admitting to distributing hundreds of images of child pornography.
James Groover, 57, of Savannah, was sentenced to 88 months in prison after pleading guilty to Distribution of Child Pornography, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge R. Stan Baker also ordered Groover to pay $15,000 in restitution to victims, register as a sex offender, and serve 15 years of supervised release after completion of his prison term.
There is no parole in the federal system.
“Every single act of sharing an image of child exploitation further harms the vulnerable victim,” said Acting U.S. Attorney Estes. “James Groover shared hundreds of such images until our vigilant law enforcement partners brought his reprehensible crimes to a halt.”
As described in court documents and testimony, the National Center for Missing and Exploited Children alerted Georgia’s Internet Crimes Against Children Task Force after identifying graphic child pornography shared from Groover’s address between September 2019 and February 2020. A subsequent search of his residence discovered hundreds of images and videos of child pornography on multiple devices belonging to Groover.
“Individuals who engage in this reprehensible crime perpetuate the trauma endured by victims and cause irreparable harm to our nation’s most vulnerable population,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI special agents will continue to work with law enforcement partners to find and remove these offenders from our communities.”
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 800-843-5678, or https://report.cybertip.org/.
The case was investigated by Homeland Security Investigations and the Savannah Police Department, and Prosecuted for the United States by Assistant U.S. Attorney and Project Safe Childhood Coordinator Tara M. Lyons.
Salisbury Man Pleads Guilty to Large-Scale Heroin Distribution Operation on the Dark WebRead the Press Release
Baltimore, Maryland – Jason Lawrence Green, age 40, of Salisbury, Maryland, pleaded guilty to possession with intent to distribute heroin, which he sold on the dark web (a part of the internet that is only accessible by using specific software the disguises the true location and identity of computers using the software to communicate). The guilty plea was entered on October 12, 2021.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Postal Inspector in Charge Daniel A. Adame of the U.S. Postal Inspection Service - Washington Division; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police; and Dorchester County Sheriff James W. Phillips, Jr.
According to Green’s guilty plea, from at least 2018 through October 2019, Green used an apartment and a storage unit in Salisbury, Maryland to sell and distribute heroin on the dark web and using encrypted email services.
As detailed in the plea agreement, Green initially operated as “CaliClaire” on the Dream Market, a dark web marketplace for controlled substances and other illegal goods. After Dream Market closed in April 2019, Green sold heroin through encrypted email services under the usernames “CaliClaire” and “clairebear2.” Green sent the heroin to buyers throughout the country using the U.S. mail (USPS).
For example, on June 20 and August 28, 2018, an undercover investigator purchased one gram of heroin from CaliClaire’s vendor site on Dream Market for approximately $200 in bitcoin. The next day, law enforcement surveilled Green as he drove a white BMW from his home to the post office in Ocean City, Maryland and Salisbury, respectively, and deposited parcels in a mailbox. After the BMW drove away, investigators searched the mailbox and recovered the parcel addressed to the address provided to CaliClaire by the undercover investigator. Each parcel contained one gram of a substance that field-tested positive for heroin. Investigators also recovered two additional parcels that Green had placed in the mailbox in Salisbury. After obtaining search warrants, investigators found that the parcels contained 3.5 and 4.5 grams, respectively, of a tan powdery substance that appeared to be heroin.
CaliClaire was inactive on Dream Market from September 7, 2018 until December 4, 2018—the same time that Green was in custody after being arrested by Ocean City police on unrelated state charges. Green was released on electronic monitoring on December 4, 2018. Six days later, CaliClaire posted an update on Dream Market claiming that the vendor had taken a “break” due to the loss in value of bitcoin, followed by another update on December 21, 2018 stating that heroin would be available for purchase again starting on December 25, 2018. Dream Market was shut down sometime between January and April 2019.
In June and September 2019, law enforcement seized two USPS parcels (later found to contain heroin) being shipped to addresses in Fairfax County, Virginia and Washington County, Oregon. Investigators contacted the intended recipients and learned that they were former CaliClaire customers on Dream Market. The Virginia recipient told investigators that CaliClaire had resumed selling heroin directly to customers under the CaliClaire username on Encrypted Email Service A. Investigators learned from the Oregon customer that CaliClaire was also selling heroin directly to customers under the username “clairebear2” on Encrypted Email Service B.
As detailed in the plea agreement, in September and October 2019, investigators conducted two undercover purchases from clairebear2 on Encrypted Mail Service B, each time obtaining 2 grams of heroin for $300 in bitcoin. Investigators surveilled Green following each undercover purchase. After the first purchase, investigators observed Green delivering parcels to a drive-up mailbox in Delaware. The mailbox where Green deposited the parcel was searched and the parcel addressed to the undercover officer was found. It contained three grams of a substance that field-tested positive for heroin. After the second purchase, Green was seen accessing a storage unit he was renting and later that day depositing multiple parcels in a mailbox in Berlin, Maryland. The parcel addressed to the undercover officer was delivered to investigators a few days later and contained a clear zip-top bag holding approximately 2.5 grams of a substance that field-tested positive for heroin.
Search warrants were executed at Green’s residence and storage unit on October 16, 2019. Law enforcement recovered a total of 77 grams of heroin; approximately 41 grams of cocaine; approximately five grams of MDA, a controlled substance often sold as “ecstasy”; approximately 33 grams of amphetamine; more than 1.4 kilograms of marijuana, with all but 48 grams packaged in heat sealed bags; 334 grams of cutting agent; and drug paraphernalia, including numerous digital scales, a money counter, and packaging materials. In addition, investigators seized six firearms, including a .40 caliber pistol which had been reported stolen from an officer with the Federal Air Marshal Service; a Level 3A body armor vest; ammunition; $13,796 in cash; mailing materials; a laptop computer and several cellular phones, including an iPhone.
A subsequent forensic analysis of Green’s iPhone found data of Green’s use of Encrypted Mail Service B and a mobile cryptocurrency storage application which showed that before the phone was seized, the wallet held approximately 15.97 bitcoin, which at that time was worth approximately $130,000. A forensic analysis of the laptop revealed, among other things, internet searches related to the addresses of customers; the names and addresses of approximately 56 individuals who appeared in either return or recipient addresses on parcels seized during the investigation and found to contain heroin, including undercover purchases; email addresses for Encrypted Email Service A and B; a password to Encrypted Email Service B; USPS tracking numbers, including for the undercover parcels; and approximately 44 PDF files containing USPS shipping labels from nearly every heroin parcel seized during the investigation.
Green and the government have agreed that, if the Court accepts the plea agreement, Green will be sentenced to five years in federal prison. U.S. District Judge Catherine C. Blake has scheduled sentencing for February 11, 2022 at 2:00 p.m.
This case was prosecuted utilizing resources from the Dark Market and Digital Currency Crimes (DMDCC) Task Force. The DMDCC Task Force is a joint effort between the U.S. Attorney’s Office, HSI – Baltimore, the U.S. Secret Service, the U.S. Postal Inspection Service; the Food and Drug Administration, the Internal Revenue Service – Criminal Investigation, the Drug Enforcement Administration, the Defense Criminal Investigative Service, the Baltimore Police Department, and the Baltimore County Police Department, targeting the use of dark net marketplaces and digital currencies to facilitate criminal activities. The past several years have witnessed a significant increase in the use of the internet (both the clear net and dark net) and digital currencies to facilitate, for example, the illegal sale and distribution of narcotics and firearms, computer technologies (including hacking tools), and Personal Identifiable Information (PII). In response to this rising threat, the U.S. Attorney’s Office, HSI, and their partners formed the DMDCC Task Force to facilitate stronger collaboration among law enforcement partners combatting these crimes.
United States Attorney Erek L. Barron commended HSI, the U.S. Postal Inspection Service, the Maryland State Police, and the Dorchester County Sheriff’s Office for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Jeffrey J. Izant and Christopher M. Rigali, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Sheridan Man Arrested for Illegal Possession of Firearms and MethamphetamineRead the Press Release
Acting United States Attorney Bob Murray announced today that ADAM LEE GODWIN, age 35, of Sheridan, Wyoming was charged by indictment and arrested for being an unlawful user of a controlled substance in possession of a firearm and possession with intent to distribute methamphetamine.
Godwin appeared before Federal District Court Judge Nancy D. Freudenthal on October 12, 2021, for an arraignment hearing and pleaded not guilty to the charges. Judge Freudenthal set a jury trial to be held in Cheyenne on December 13, 2021. Godwin was remanded to the custody of the United States Marshals Service. These crimes carry a term of five to 40 years imprisonment, up to five years of supervised release, and over $5 million in fines and special assessments.
This crime was investigated by the Bureau of Alcohol, Tobacco and Firearms and the Sheridan County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Jonathon C. Coppom.
An indictment merely contains allegations, and every defendant is presumed innocent unless and until proven guilty.
Postal Worker Charged with Issuing Money Orders Without Receiving Full PaymentRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that SHANNEL SMITH, age 41, of Orleans Parish, Louisiana, was charged on October 12, 2021 in a one-count superseding bill of information for issuing money orders without receiving full payment in violation of Title 18, United States Code, Section 500.
According to court documents, beginning in May 2019 and continuing until August 2019, SMITH, being an employee of the Postal Service, for the purpose of fraudulently enabling herself to obtain and receive, directly and indirectly, a sum of money from the United States, issued eight (8) postal money orders with face amounts of $150.00, $110.71, $100.00, $125.00, $80.00, $140.00, $100.00, and $150.00 without having previously received the full amount payable to the United States for these money orders.
If convicted, SMITH faces a maximum penalty of five (5) years imprisonment, followed by up to three (3) years of supervised release, up to a $250,000.00 fine, and a mandatory $100 special assessment fee based on the charge outlined in the superseding bill of information.
U.S. Attorney Evans stated that the superseding bill of information is merely a charge and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by special agents from the U.S. Postal Service, Office of Inspector General (“USPS-OIG”). The prosecution of this case is being handled by Assistant U.S. Attorney Rachal Cassagne.
Philadelphia Father and Son Felons Charged with Illegally Possessing a Firearms and AmmunitionRead the Press Release
PITTSBURGH, PA - Two former residents of Philadelphia, Pennsylvania, have been indicted by a federal grand jury in Pittsburgh on a charges of violating federal firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
The two-count Indictment named the defendants as Angel Perez, 55, formerly of Philadelphia, PA 19134 and his son, Troy Perez, 28, formerly of Philadelphia, PA 19125.
According to Indictment, on or about September 15, 2021, Angel Perez and Troy Perez, both convicted felons, were each in possession a firearm and ammunition. Federal law prohibits a convicted felon from possessing both firearms and ammunition.
At each count, the law provides for a maximum total sentence of not more than 10 years in prison, a fine of not more than $250,000.00 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Barbara K. Doolittle is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and Pennsylvania State Police conducted the investigation leading to the Indictment in this case. The case was brought as part of Project Safe Neighborhoods. 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.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Peruvian Woman Sentenced to 30 Months in Prison for Smuggling Seven Kilos of Cocaine into United States through Newark AirportRead the Press Release
NEWARK, N.J. – A Peruvian woman was sentenced today to 30 months in prison for smuggling approximately seven kilograms of cocaine into the United States from Peru, Acting U.S. Attorney Rachael A. Honig announced.
Yolanda Fonseca Melgarejo, 60, a legal permanent resident of the United States and a citizen of Peru, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging her with one count of importation of controlled substances. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Fonseca Melgarejo arrived at Newark Liberty International Airport aboard a flight from Lima, Peru, on March 31, 2019. Law enforcement officers discovered that Fonseca Melgarejo possessed approximately seven kilograms of cocaine concealed within wrapped chocolate candy in her luggage.
In addition to the prison term, Judge Wigenton sentenced Melgarejo to two years of supervised release.
Acting U.S. Attorney Honig credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, New Jersey Division, under the direction of Special Agent in Charge Jason J. Molina; and officers of U.S. Customs and Border Protection, New York Field Office, under the direction of Director of Field Operations Frank Russo, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Tracey Agnew of the Organized Crime and Gangs Unit in Newark.
Oregon Marijuana Exporter Pleads Guilty in Federal CourtRead the Press Release
PORTLAND, Ore.—A former resident of Milwaukie, Oregon pleaded guilty today in federal court for illegally exporting marijuana grown in Oregon to Georgia for resale and laundering the proceeds.
Dante Baldocchi, 29, currently a resident of Altadena, California, waived indictment and pleaded guilty to conspiring to distribute marijuana and commit money laundering.
According to court documents, between January 2017 and June 2020, Baldocchi purchased marijuana in Oregon and arranged to have it shipped via freight to Georgia where he and others sold it to distributors in the Atlanta area and in North Carolina. Baldocchi and his associates shipped portions of the proceeds from Georgia back to Oregon in vacuum-sealed bags and other portions concealed in buckets of drywall spackle.
On June 9, 2020, a federal search warrant was executed on Baldocchi’s then-residence in Milwaukie. Investigators located more than 330 pounds of marijuana grown in Oregon.
On August 19, 2021, Baldocchi and an associate—Hunter Lacaden, 27, of Portland—were charged by criminal information with conspiring to distribute marijuana and commit money laundering.
Baldocchi faces a maximum sentence of 60 years in federal prison with a five-year mandatory minimum, a $5.5 million fine and four years of supervised release. He will be sentenced on January 6, 2022, before U.S. District Court Judge Michael H. Simon.
On September 21, 2021, Lacaden pleaded guilty to conspiring to distribute marijuana. He will be sentenced on December 13, 2021.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by Homeland Security Investigations and IRS-Criminal Investigation with assistance from the Clackamas County Sheriff’s Office and Portland Police Bureau. Assistant U.S. Attorney Julia E. Jarrett is prosecuting the case.
Omaha Man Sentenced to More than 12 Years for Transporting Minor to Nebraska for SexRead the Press Release
Acting United States Attorney Jan Sharp announced that Mitchel D. Abraham, 23, of Omaha, Nebraska, was sentenced today in federal court in Omaha for transportation of a minor with the intent to engage in criminal sexual activity. United States District Judge Brian C. Buescher sentenced Abraham to 12 years and 6 months’ imprisonment. There is no parole in the federal system. After his release from prison, Abraham will begin and 30-year term of supervised release and will be required to register as a sex offender. Judge Buescher ordered Abraham to pay a $10,000 fine.
An investigation conducted by the Federal Bureau of Investigation determined that on or about December 5, 2020, a 15-year-old minor’s parents, located in Pennsylvania, reported their daughter missing. Through its investigation the FBI learned that the minor was located at a residence in Omaha. On December 31, 2020, the FBI made contact with Abraham at his residence in Omaha. Also present in the residence was the minor.
The investigation revealed that Abraham had previously met the minor on the online platform Snapchat in November 2020. At that time Abraham was 22 years old and the minor was 15 years old. It was determined that on December 8, 2020, Abraham traveled to Pennsylvania in a white Kia sedan to pick up the minor and return to Nebraska where he lived. After arriving in Pennsylvania, Abraham transported the minor to Nebraska with the intent of engaging in sexual activity with the minor. After arriving in Nebraska, Abraham and the minor engaged in sexual activity, which is unlawful under the laws of the State of Nebraska.
This case was investigated by the Federal Bureau of Investigation.
Omaha Man Sentenced to 10 Years for Methamphetamine and a FirearmRead the Press Release
Acting United States Attorney Jan Sharp announced that Jackie Major, 46, of Omaha, Nebraska, was sentenced today in federal court for conspiracy to distribute methamphetamine and using a firearm during a drug trafficking offense. United States District Judge Brian C. Buescher sentenced Major to consecutive sentences of 60 months on each count for a total term of 120 months’ imprisonment. There is no parole in the federal system. After his release from prison, Major will begin a three-year term of supervised release.
In July 2020 FBI Safe Streets Task Force officers utilized a confidential informant to order methamphetamine from Major. A search warrant of his West Omaha hotel room recovered 17 grams of methamphetamine and a Mossberg pump shotgun.
This case was investigated by the Omaha Police Department. and the FBI Safe Streets Task Force as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
North Carolina Man Sentenced for Conspiring to Defraud Massachusetts-Based Uniform Supply CompanyRead the Press Release
BOSTON – A North Carolina man was sentenced yesterday in connection with a scheme to defraud his former employer, a Massachusetts-based uniform-supply company, by falsifying invoices.
Keith Smedley, 49, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to three years in prison and one year of supervised release. Smedley was also ordered to pay restitution of $1,548,467 and forfeiture of $500,000. On June 8, 2021, Smedley pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud.
Between approximately 1998 and March 2019, Smedley and others defrauded the uniform-supply company by causing the company to pay fake invoices for products that were not actually delivered, and by diverting other products that they re-sold for their own benefit. In addition, Smedley and his co-conspirators created a fake supply company and caused the uniform-supply company to pay more than $1.5 million in fraudulent invoices for purported products that he knew would never be delivered or used.
Smedley is the second former employee of the uniform-supply company to be sentenced in connection with the conspiracy. Co-conspirator Richard Ritz was sentenced on Sept. 8, 2021 to 21 months in prison and two years of supervised release. Co-conspirator Brian Halpern pleaded guilty in August 2021 and is scheduled to be sentenced on Dec. 16, 2021.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Assistant U.S. Attorneys Sara Miron Bloom and Ian Stearns of Mendell’s Securities, Financial & Cyber Fraud Unit prosecuted the case.
New York and Florida Resident Admits to $6.8 Million Paycheck Protection Program Fraud SchemeRead the Press Release
NEWARK, N.J. – A dual New York and Florida resident today admitted his role in a scheme to fraudulently obtain federal Paycheck Protection Program (PPP) loans totaling over $6.8 million, Acting U.S. Attorney Rachael A. Honig and Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division announced today.
Gregory J. Blotnick, 34, of Florida, pleaded guilty before U.S. District Judge Brian R. Martinotti to an information charging him with one count of wire fraud and one count of money laundering.
According to documents filed in this case and statements made in court:
From April 2020 through March 2021, Blotnick submitted 21 fraudulent PPP loan applications to 13 lenders on behalf of nine purported businesses that Blotnick controlled.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
On Blotnick’s fraudulent PPP applications, which sought a total of approximately $6.8 million in total loans, Blotnick falsified various information to the lenders, including the number of employees, the federal tax returns for his purported businesses, and payroll documentation. Blotnick obtained approximately $4.6 million in PPP funds and then misused the loan proceeds, including by transferring the funds to brokerage accounts from which he placed more than approximately $3 million in losing stock trades.
The charge of wire fraud carries a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits or loss, whichever is greatest. The charge of money laundering carries a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest. Sentencing is scheduled for March 1, 2022.
Acting U.S. Attorney Rachael Honig credited special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; special agents of the Social Security Administration, Office of the Inspector General, New York Field Division, under the direction of Special Agent in Charge John F. Grasso; special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, under the direction of Special Agent in Charge Patricia Tarasca in New York; and special agents of the Board of Governors of the Federal Reserve System Consumer Financial Protection Bureau, Office of Inspector General, under the direction of Special Agent in Charge Stephen Donnelly, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Fatime Meka Cano of the U.S. Attorney’s Office Government Fraud Unit in Newark and Trial Attorney Cory E. Jacobs of the Department of Justice, Criminal Division, Market Integrity and Major Frauds Unit.
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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
New York Man Pleads to Meth Conspiracy Count in Federal Court in Johnstown, PARead the Press Release
JOHNSTOWN, Pa. – A former resident of Jamestown, NY pleaded guilty in federal court to a charge of violating federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
Peter Shawbrougham, 27, pleaded guilty to a lesser-included offense at Count Two of the Superseding Indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on or about July 2019 through in and around June 2020, Shawbrougham conspired to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine.
Judge Gibson scheduled sentencing for Feb. 17, 2022. 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 Maureen Sheehan-Balchon. is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pennsylvania State Police led the prosecution of Shawbrougham.
New Jersey Man Receives 10 Years for Sex TraffickingRead the Press Release
RALEIGH, N.C. – An Elmwood Park, New Jersey man was sentenced today to 120 months in prison for sex trafficking. Mark Daniel Benavidez was also ordered to pay $32,800 in restitution to his victims. On March 8, 2021 Benavidez pleaded guilty to one count of transporting a victim across state lines for the purpose of prostitution.
According to court documents and other information presented in court, Benavidez, 40, was arrested in connection with an undercover prostitution sting at a hotel in Cary, North Carolina on July 21, 2017. Benavidez had rented two rooms at the hotel and was posting online prostitution ads for three different women. Benavidez had over $4,600 on his person at the time of arrest and drugs were found on one of the victims and in a bag in one of the rooms.
Investigation revealed that Benavidez began prostituting one of the victims in 2016 in New Jersey. While still in New Jersey, Benavidez recruited a second woman. Benavidez prostituted both women in New Jersey before traveling to North Carolina in early July 2017. Once in North Carolina, Benavidez recruited his third victim. Benavidez was physically violent with one of the victims, reportedly abusing her on a weekly basis. Benavidez exploited the drug addictions of the other two victims, becoming their sole supplier, worsening their addictions, and using the promise of drugs, especially heroin, to keep them prostituting for him. Benavidez controlled all aspects of their prostitution and took all the money the victims earned. The investigation also led to storage units that Benavidez rented in North Carolina and New Jersey, where investigators seized over $13,500 and $21,000, respectively.
“It is difficult to calculate the scope of damage caused by sexual exploitation and trafficking, which often leave victims with long-lasting trauma. Benavidez used fear, coercion, and violence to exploit and abuse his victims,” said Special Agent in Charge Ronnie Martinez, who oversees Homeland Security Investigations (HSI) operations in North Carolina and South Carolina. “HSI special agents, along with our law enforcement partners, are committed to pursuing those who perpetuate these horrendous crimes.”
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Senior U.S. District Judge W. Earl Britt. The Department of Homeland Security, Homeland Security Investigations (“HSI”) and the Cary Police Department investigated the case, and former Assistant U.S. Attorney Erin Blondel and Assistant United States Attorney Bryan Stephany prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-CR-00337-BR.
Munhall Woman Charged with Filing Fraudulent Applications for Pandemic-Relief FundsRead the Press Release
PITTSBURGH, PA - One resident of Munhall, PA, has been indicted by a federal grand jury in Pittsburgh on charges of wire fraud, Acting United States Attorney Stephen R. Kaufman announced today.
The twelve-count Indictment, returned on Sept. 28, 2021 and unsealed today following her arrest, named Jaime Jones, 45, of Munhall, PA 15120, as the sole defendant.
According to Indictment, from May 2020 to September 2020, Jones filed fraudulent applications on behalf of herself and others for pandemic-relief funding through the Small Business Administration’s Economic Injury Disaster Loan program. As part of these fraudulent applications, Jones made misrepresentations about, among other things, whether particular businesses existed as well as the number of people employed by particular businesses, in an attempt to maximize the funding they received.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jeffrey R. Bengel is prosecuting this case on behalf of the government.
The United States Secret Service, the United States Postal Inspection Service, and the Small Business Administration’s Office of the Inspector General conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Minneapolis Felon Indicted for Making Threats Against Hennepin County Government Officials, Illegal Possession of FirearmsRead the Press Release
MINNEAPOLIS – A federal grand jury returned an indictment against a Minneapolis man for making threats against Hennepin County employees and illegally possessing firearms as a felon, announced Acting U.S. Attorney W. Anders Folk.
According to court documents, on June 24, 2021, the Hennepin County District Court issued an arrest warrant for Peter Robert Berry, 60, after he failed to appear in court for a hearing. Berry called an employee of Hennepin County Community Corrections to ask questions about his court appearance. During the call Berry became angry and began yelling and threatened to “shoot up the place.” That same day, Berry left a voice message for a Hennepin County Probation Officer in which Berry demanded a call back before he starts “killing everybody.” On June 25, 2021, Berry called a Hennepin County Service Center employee who informed him of the active warrant for his arrest due to his failure to appear in court. Upon learning about the warrant, Berry stated that he was going to “come down and kill everybody, all the judges, clerks, and deputies.” On June 29, 2021, Berry left a voice message for a Hennepin County Public Defender in which Berry expressed his dissatisfaction with the representation he received in his criminal case and threatened that people were going to die and stated that he knew where the public defender lived.
According to court documents, on July 10, 2020, and on April 7, 2021, Berry unlawfully possessed three firearms, including a Beretta .25 caliber semi-automatic pistol, a Smith and Wesson 9 mm pistol, and a Diamondback DB15 rifle. Because Berry has prior felony convictions in Hennepin, Dakota, and Ramsey Counties, he is prohibited under federal law from possessing firearms or ammunition at any time.
Berry is charged with two counts of possessing firearms as a felon and three counts of interstate transmission of threats.
This case was 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.
This case is the result of an investigation conducted by the FBI, the Hennepin County Sheriff’s Office, and the Minneapolis Police Department.
Assistant U.S. Attorney Allison K. Ethen is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Melrose Man Sentenced for Unemployment Insurance ScamRead the Press Release
BOSTON – A Melrose man was sentenced today in connection with his role in an unemployment insurance fraud scheme.
Alan Neal Scott, 68, was sentenced by U.S. District Court Judge Leo T. Sorokin to 87 months in prison and three years of supervised release. On July 1, 2021, Scott pleaded guilty to four counts of mail fraud, one count of wire fraud and five counts of aggravated identity theft.
Over the course of six years, Scott submitted numerous fraudulent unemployment insurance claims with the Massachusetts Department of Unemployment Assistance (DUA). Scott submitted these claims using his own identity as well as the identities of various individuals, including some who were not eligible for unemployment benefits because they were incarcerated at the time and could not have been employed. Moreover, the fraudulent claims all reported prior employment at a non-operational Massachusetts-based business also associated with Scott. As a result of these fraudulent claims, the DUA sent unemployment benefits funds to several addresses connected to Scott and deposited funds into accounts he controlled. Scott also submitted fraudulent pandemic unemployment insurance claims in the names of others.
Acting United States Attorney Nathaniel R. Mendell; Jonathan Mellone, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigation; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service; and Jermaine Jack, Acting Special Agent in Charge of the Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Division, made the announcement. The Commonwealth of Massachusetts, Department of Unemployment Assistance, Program Integrity Unit also provided assistance with the investigation. Assistant U.S. Attorney Sara Miron Bloom of Mendell’s Securities, Financial & Cyber Fraud Unit prosecuted the case.
Media AdvisoryRead the Press Release
On October 15, 2021, at 9:00 a.m., Matthew Robbins will be sentenced in federal district court in Cedar Rapids, Iowa, following his convictions at trial for robbery and discharging a firearm during a crime of violence resulting in murder.
On October 15, 2021, at 1:00 p.m., representatives of the United States Attorney’s Office and law enforcements agencies involved in the investigation will hold a press conference at the United States Attorney’s Office in the federal courthouse, 111 Seventh Ave SE, in Cedar Rapids, Iowa, to discuss Robbins’ sentencing.
Event Details
When: October 15, 2021
Where: Cedar Rapids Federal Courthouse (United States Attorney’s Office), 111 Seventh Ave. SE
Time: 1:00 p.m.
Press releases and interview opportunities will be available.
To RSVP, please email Tony Morfitt at [email protected] or call 319-363-6333.
Follow us on Twitter @USAO_NDIA.
Mark Ridley-Thomas Charged Along with Former University Dean in Federal Grand Jury Indictment Alleging Bribery and Fraud SchemeRead the Press Release
INDICTMENTLOS ANGELES – Longtime politician Mark Ridley-Thomas and the former dean of the School of Social Work at a university in Southern California were indicted today on federal corruption charges that allege a bribery scheme in which a Ridley-Thomas relative received substantial benefits from the university in exchange for Ridley-Thomas supporting county contracts and lucrative contract amendments with the university while he served on the Los Angeles County Board of Supervisors.
The 20-count indictment alleges that Ridley-Thomas, now a member of the Los Angeles City Council, conspired with Marilyn Louise Flynn, formerly a tenured professor and the dean of the university’s School of Social Work, who agreed to provide the Ridley-Thomas relative with graduate school admission, a full-tuition scholarship, a paid professorship, and a mechanism to funnel Ridley-Thomas campaign funds through the university to a non-profit to be operated by the relative.
In exchange, the indictment alleges, Ridley-Thomas supported contracts involving the Social Work School, including contracts to provide services to the Department of Children and Family Services (DCFS) and Probation Department, as well as an amendment to a contract with the Department of Mental Health (DMH) that would bring the school millions of dollars in new revenue.
Ridley-Thomas, 66, of Los Angeles, and Flynn, 83, also of Los Angeles, were informed of the indictment this afternoon and have agreed to appear for their arraignments in United States District Court in the coming weeks.
“This indictment charges a seasoned lawmaker who allegedly abused the public's trust by taking official actions to benefit his family member and himself,” said Acting U.S. Attorney Tracy L. Wilkison. “The corrupt activities alleged in the indictment were facilitated by a major university’s high-ranking administrator whose desire for funding apparently trumped notions of integrity and fair play. Public corruption cases are among the most important matters we pursue, and we will continue to investigate and prosecute whenever public officials and others entrusted with taxpayer funds break the law.”
“This investigation should send a message to public officials that government contracts are not for sale,” said Kristi K. Johnson, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “This indictment reaffirms the FBI’s commitment to rooting out corruption by holding accountable those who abuse the trust of the people they serve and who exploit their powerful positions to obtain benefits at the expense of taxpayers.”
The indictment outlines a scheme in 2017 and 2018 in which then-supervisor Ridley-Thomas sought benefits from Flynn and university officials to benefit his close relative – described as “MRT Relative 1” in the indictment – at a time when MRT Relative 1 was the subject of an internal sexual harassment investigation in the California State Assembly, likely to resign from elected office, and significantly in debt. Ridley-Thomas allegedly wanted to help secure paid employment for his relative to minimize any public fallout for them both in the wake of the sudden resignation from office. Meanwhile, the Social Work School was facing a multimillion-dollar budget deficit, which threatened the school’s viability as well as Flynn’s position and reputation as the school’s longtime dean, according to the indictment.
As part of the bribery scheme, Ridley-Thomas and Flynn allegedly took steps “to disguise, conceal, and cover up the bribes, kickbacks, and other benefits defendant Ridley-Thomas and MRT Relative 1 received,” which included concealing the official acts Ridley-Thomas agreed to perform and did perform in exchange for the financial benefits. The pair also concealed, according to the indictment, the true purpose of the money funneled to MRT Relative 1’s nonprofit through the university, which also violated multiple university policies regarding the funding of nonprofits.
Within weeks of Ridley-Thomas contacting Flynn in May 2017 about his relative wanting a postgraduate degree from the university, Flynn began a campaign to secure both university admission and a full scholarship for the relative. Flynn wrote in an email that she “intend[ed] to open every door for [MRT Relative 1],” whom she noted was closely related to the then-supervisor, the indictment alleges. When a university official said Ridley-Thomas had “lots of discretionary money” and should give the university “$1M each year for three years,” according to the indictment, Flynn responded that she and another university official intended to offer the relative a full scholarship, characterizing the exchange as a “full scholarship for our [Social Work School] funds.”
During a June 2017 meeting, Ridley-Thomas and Flynn allegedly reached a quid pro quo agreement, which Flynn later memorialized in a confidential letter she had hand-delivered to Ridley-Thomas. The indictment alleges that Flynn’s letter detailed her expectations that Ridley-Thomas would steer new contracts with DCFS and Probation to the Social Work School and secure a lucrative amendment to an existing Telehealth-DMH contract. With the new amendment, Flynn expected the Telehealth contract to generate approximately $9 million per year for Flynn’s Social Work School.
In exchange for Flynn’s efforts to help MRT Relative 1, the indictment alleges that Ridley-Thomas took a series of official actions, including voting in August 2017 to approve a motion to establish a partnership between the county and Social Work School and voting in October 2017 to approve a motion, related to “Probation University,” that would create a new county payment source for the school. Flynn told university officials in emails that she was “very happy to see that [defendant Ridley-Thomas] was as good as his word” and that he was “really trying to deliver,” the indictment alleges.
In the fall of 2017, Ridley-Thomas and MRT Relative 1 began soliciting from Flynn and other university officials a paid professorship for MRT Relative 1 while concealing that MRT Relative 1 was the subject of a sexual harassment investigation. By December 2017, in conjunction with speculation that MRT Relative 1 could be forced out of office, Ridley-Thomas and his relative increased their efforts to secure a paid faculty position for MRT Relative 1, efforts that included Ridley-Thomas exerting pressure on another high-ranking public official to support the Telehealth contract amendment.
On December 14, 2017, about an hour after Ridley-Thomas emailed Flynn saying the high-ranking public official was “ready to go,” Flynn expedited the relative’s enrollment at the university, instructing that the admission should be given the “highest priority,” according to the indictment. Flynn also agreed, despite the school’s multimillion-dollar budget deficit, to tap the Social Work School’s endowed funds to award a scholarship. At Flynn’s direction, MRT Relative 1 received a full scholarship worth $26,000 for the 2018 spring and summer terms.
The day after learning that the high-ranking public official was “ready to go,” Flynn also endeavored to quickly secure the paid professorship, even though MRT Relative 1’s dual student-faculty status would violate university policy. On December 15, 2017, Flynn allegedly sent an “urgent” email to a university official, urging the official to get the offer letter “out before the holidays” to MRT Relative 1 “in the interests of showing MRT [defendant Ridley-Thomas] that we can deliver.” The university thereafter offered MRT Relative 1 the paid teaching position with a salary of $50,000.
When MRT Relative 1 received an email on February 13, 2018 indicating that the usual hiring process had been waived for his paid professorship, MRT Relative 1 forwarded the email to Ridley-Thomas, who then emailed Flynn the same day to discuss the “Probation Reform motion.” Days later, when Flynn emailed Ridley-Thomas to request a profitable amendment to the Telehealth-DMH contract, Ridley-Thomas responded to Flynn: “Your wish is my command.”
In addition to obtaining university admission, a full scholarship and the paid faculty position, Ridley-Thomas also sought to help his relative become the director of a nonprofit. In December 2017, Ridley-Thomas donated $100,000 in campaign funds to a fiscal sponsor (Fiscal Sponsor A) supporting the nonprofit MRT Relative 1 was planning to head (Nonprofit A). Concerned about the optics of a politician donating campaign funds to benefit the politician’s relative, Fiscal Sponsor A refunded the $100,000.
MRT Relative 1 then abandoned efforts to head Nonprofit A, founded a new nonprofit (Nonprofit B) with a new fiscal sponsor (Fiscal Sponsor B), and began raising money for Nonprofit B in order to take a salary, obtain healthcare benefits and hire staff. According to the indictment, while soliciting official action from Ridley-Thomas during a meeting on April 26, 2018, Flynn agreed to funnel $100,000 from the Mark Ridley-Thomas Committee for a Better L.A. through the university and Social Work School to Fiscal Sponsor B for the benefit of Nonprofit B and, in turn, MRT Relative 1. Around this time, Flynn allegedly told a university official that the school would get the Telehealth contract but that she had to do a “favor” to get it.
After the Ridley-Thomas campaign funds were transferred through the university to Fiscal Sponsor B, Ridley-Thomas voted on July 31, 2018 in favor of the amendment to the school’s Telehealth agreement that would sustain the program for an additional year and was consistent with the terms Flynn previously requested of Ridley-Thomas.
Both Ridley-Thomas and Flynn are charged with one count of conspiracy, and each defendant is charged with one count of bribery. The indictment also charges both defendants with two counts of “honest services” mail fraud and 15 counts of “honest services” wire fraud.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The conspiracy count alleged in the indictment carries a statutory maximum penalty of five years in federal prison. Each bribery count carries a maximum possible sentence of 10 years. Each of the mail fraud and wire fraud charges carry a statutory maximum penalty of 20 years.
The FBI is investigating this matter.
Assistant United States Attorneys Ruth C. Pinkel and Lindsey Greer Dotson of the Public Corruption and Civil Rights Section are prosecuting this case.
Man Charged with Selling Multiple Forged Paintings by Contemporary Artist Raymond PettibonRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the indictment of CHRISTIAN ROSA WEINBERGER, a/k/a “Christian Rosa,” for his role in a scheme to defraud art buyers through the sale of forged paintings by the artist Raymond Pettibon accompanied by fake certificates of authenticity. WEINBERGER fled the United States in early 2021 shortly after news about his involvement in selling a fake Pettibon painting was reported in the press, and he remains at large. This case is assigned to U.S. District Judge Andrew Carter.
U.S. Attorney Damian Williams said: “As alleged, Christian Rosa Weinberger cheated contemporary art buyers by selling them forged paintings purportedly from the hand of Raymond Pettibon. Weinberger swindled buyers out of hundreds of thousands of dollars, and risked a New York artist’s legacy, through his forgery scheme. Thanks to the partnership of this Office and the FBI’s Art Theft Crime Team, Weinberger’s forgery scheme is at an end.”
FBI Assistant Director Michael J. Driscoll said: "The beauty of art may be in the eye of the beholder, but the behavior we allege today is objectively ugly. Quite simply, it's a federal crime to defraud investors and fake documentation of artwork provenance. Mr. Weinberger may believe he escaped justice when he fled the country earlier this year, but the FBI and our partners have international reach and steadfast determination. We encourage him to turn himself in, because we will eventually find him with that persistent long arm of the law."
According to the allegations in the Indictment[1] filed today in Manhattan federal court:
From approximately 2017 through 2020, WEINBERGER, together with others known and unknown, engaged in a scheme to defraud potential art buyers by selling forged Pettibon paintings. Pettibon is a prominent contemporary artist based primarily in New York, New York, who has produced a series of paintings depicting ocean waves with surfers accompanied by handwritten text (the “Wave Series”). WEINBERGER is a contemporary visual artist based primarily in Los Angeles, California and Vienna, Austria. As part of the scheme to defraud, in or about 2018 and 2020, WEINBERGER sold the following artworks, which WEINBERGER falsely represented to be authentic Pettibon “Wave Series” paintings, to two buyers (“Buyer-1” and “Buyer-2”):
- Untitled (“It was the Moment . . . ”), 2013, 100 cm by 155 cm:
- Untitled (“Drop in . . .”), 2011, 80 cm by 60 cm:
- Untitled (“Bail, or bail out . . .”), 2012, 115 cm by 163 cm:
- Untitled (“If there is a line . . .”), 2016, 118.1 by 208.3 cm:
WEINBERGER used the proceeds from the sale to Buyer-1 of Untitled (“Bail, or bail out . . .”), and Untitled (“If there is a line . . .”) to make the down payment and subsequent mortgage payments on a residence in California. WEINBERGER also gifted the following “Wave Series” painting to Buyer-1 in exchange for Buyer-1’s help in selling paintings attributed to Pettibon to Buyer-2: Untitled (“I Keep Pouring . . .”), 1997, 110 cm by 90 cm.
In connection with the sale or transfer of the above paintings to Buyer-1 and Buyer-2, WEINBERGER provided purported certificates of authenticity for each painting. The purported certificates of authenticity contained an image of the particular painting, and were purportedly signed by Pettibon. In fact, these purported certificates of authenticity were fake, and Pettibon’s signatures were forged.
In or about December 2019, around the same time that WEINBERGER was discussing the sale of certain Pettibon paintings with Buyer-1, WEINBERGER exchanged emails with a friend of WEINBERGER’s (“Co-conspirator-1”) about trying to find a buyer for certain unnamed paintings. In one of the emails, WEINBERGER told Co-conspirator-1 that “they’re asking about the certificates, how we’re getting them.” Co-conspirator-1 asked WEINBERGER, in substance and in part, why the sales were taking so long. WEINBERGER responded explaining that he wanted to find a buyer who would agree not to resell the works at auction, and wrote in English that “I am not trying to get busted so that’s why it’s takeing[sic] longer.”
On or about January 29, 2021, an online news source published an article reporting accusations that WEINBERGER had forged Untitled (“If there is a line . . .”), one of the “Wave Series” paintings originally purchased by Buyer-1, which was later placed for sale by a subsequent purchaser at a New York auction house. On or about January 30, 2021, the day after the article was published, WEINBERGER emailed Co-conspirator-1 that “[t]he secret is out.” On or about January 31, 2021, WEINBERGER drafted an email to Pettibon, in which he stated that the painting featured in the article “is a overpainted print made from [Co-Conspirator-1] a friend from Austria[.]” Less than a month later, WEINBERGER left the United States. A few months later, WEINBERGER sold the California residence and attempted to transfer the funds abroad.
* * *
WEINBERGER, 43, a Brazilian and Austrian citizen previously residing in Los Angeles, California, before fleeing the United States in February 2021, was charged in the Indictment with one count of wire fraud conspiracy, one count of wire fraud, and one count of aggravated identity theft. The wire fraud charges carry a maximum prison term of 20 years. The aggravated identity theft charge carries a mandatory sentence of two years in prison.
The maximum and minimum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentence will be determined by the judge.
Mr. Williams praised the investigative work of the FBI’s Art Crime Team.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Jessica K. Feinstein and Cecilia E. Vogel are in charge of the prosecution.
To report information related to this case, please contact the FBI's Art Crime Team at [email protected].
The allegations in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Major Maryland-Washington, D.C. Area Narcotics Distributor Sentenced to Eight Years in Federal Prison for Drug Conspiracy and Possession of a Firearm in Furtherance of Drug TraffickingRead the Press Release
Baltimore, Maryland – U.S. District Judge Theodore D. Chuang sentenced Arsenio Cleckley, a/k/a “Bund”, age 39, of Accokeek, Maryland to eight years in federal prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute controlled substances, possession with intent to distribute fentanyl and possession of a firearm in furtherance of drug trafficking.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Chief Malik Aziz of the Prince George’s County Police Department; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration (DEA) - Washington Division; and Charles County Sheriff Troy Berry.
According to Cleckley’s guilty plea, from at least in or about January 2017 through June 2018, Cleckley and his co-conspirators—James Belt, Alphonso Black, Terri Bordeaux, Diamante Hailey, Christina Marshall, Thomas Parker III, Devin Simmons, Williams Stuart, and others—conspired to distribute and possess with the intent to distribute, heroin, fentanyl, cocaine, and crack to drug users and other narcotics distributers in Maryland and Washington D.C.
Cleckley also admitted that he acted as a distributor of heroin, fentanyl, cocaine and crack in the Maryland-Washington D.C. area. For example, on or about May 28, 2018, Cleckley and a co-conspirator purchased more than 200 grams of heroin and fentanyl from a supplier. After the purchase, members of law enforcement intercepted telephone calls revealing that Cleckley and the co-conspirator intended to distribute the heroin and fentanyl.
Cleckley and his co-conspirators also possessed firearms in furtherance of their drug trafficking. Specifically, on or about March 14, 2018, after Cleckley crashed his vehicle and fled the scene, officers located a loaded .45 caliber handgun and more than 40 grams of fentanyl in the vehicle. As part of his guilty plea, Cleckley admitted that he possessed the .45 caliber handgun to protect his drug supply and drug proceeds and increase his reputation as a drug trafficker.
Additionally, in or about June 2018, after one of his associates was murdered in the Barry Farms area of Southeast, Washington, D.C., Cleckley planned a retaliatory shooting and purchased a AK-47 assault rifle and .40 caliber handgun. Cleckley also recruited accomplices for the retaliatory shooting. During a subsequent phone call, Cleckley made clear to a co-conspirator that the AK-47 assault rifle was not purchased “for show” and that the firearm needed to “put in work.” In another conversation about his intended targets, Cleckley stated, “I’m going to walk, I’m a stop in the middle of his street, and chase my victims down.”
As stated in his plea agreement, law enforcement arrested Cleckley in a Waldorf, Maryland hotel room where Cleckley had been selling fentanyl. From Cleckley’s hotel room, law enforcement recovered a stolen 9mm handgun with a 32-round extended magazine.
Co-defendants Diamante Lacelle Hailey, a/k/a Tay, age 27 of Clinton, Maryland; James Belt, a/k/a JB, age 32, of Lanham, Maryland; Alphonso Leroy Anthony Black, a/k/a Kobe, age 25 of Temple Hills, Maryland; Terri Bordeaux, a/k/a CeCe and Auntie, age 50, of Washington, D.C.; Christina Marshall, a/k/a Chrissy, age 32, of Accokeek, Maryland; Devin Simmons, age 42, of Marbury, Maryland; and William Stewart, a/k/a Lil’ Will, age 24, also of Marbury, all previously pleaded guilty. Simmons, Belt, Hailey, Stewart, and Black were previously sentenced to periods ranging from time-served to five years in federal prison, each followed by three years of supervised release. On July 15, 2021, U.S. District Judge Theodore D. Chuang sentenced co-defendant Thomas Parker III to 90 months in federal prison followed by three years of supervised release. Bordeaux and Marshall are currently scheduled to be sentenced on October 20, 2021 and October 29, 2021, respectively.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Erek L. Barron praised HSI, the Prince George’s County Police Department, the DEA, and the Charles County Sheriff’s Office for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Erin B. Pulice and Jennifer L. Wine, who prosecuted the case.
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Local Arabic Tutor Convicted of Child Pornography ChargesRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted a Woodbridge man, who worked as a children’s tutor, yesterday on charges of transporting and receiving child pornography.
According to court records and evidence presented at trial, from around May 2019 to January 2020, Majed Talat Hajbeh, 58, used a messaging application to forward himself over 800 videos and images of child pornography in order to access them across multiple devices. Along with the videos, Hajbeh forwarded himself links to online groups where child pornography was openly traded, some of which had names such as “Send Child Porn,” “Only Children Sex,” “kids only cp,” and “12 years kids XXX child.” Prior to his arrest in this case, Hajbeh operated a small business providing Arabic language and religious tutoring to school-aged children. GPS data from Hajbeh’s phone showed that some of the child pornography was forwarded from the homes of his tutoring students.
Hajbeh faces a mandatory minimum penalty of five years in prison when sentenced on February 11, 2022. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Steven M. D’Antuono, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after Senior U.S. District Judge T.S. Ellis, III accepted the verdict.
Assistant U.S. Attorneys Danya E. Atiyeh and Seth M. Schlessinger are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s 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.justice.gov/psc
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-cr-83.
Lawrence Man Sentenced for Defense Contracting FraudRead the Press Release
BOSTON – A Lawrence man was sentenced yesterday in connection with a scheme to defraud the U.S. Navy relating to glove liners purchased for use on nuclear submarines.
Adrian Urena, 40, was sentenced by U.S. District Court Judge Richard G. Stearns to one year of probation. On March 24, 2021, Urena pleaded guilty to one count of possessing false papers to defraud the United States and one count of making false statements.
Urena was an employee of a Lawrence company that contracts with the U.S. Navy through the Defense Contract Management Agency. The contractor entered into a contract to provide the Navy with white glove liners for use on nuclear submarines meeting certain specifications, including that the contractor would test the glove liners for heat sensitivity and obtain an associated certificate of testing. To avoid the testing requirement, Urena manufactured counterfeit certificates of testing and compliance, and presented these counterfeit certificates to a Department of Defense contracting officer. When investigators questioned Urena about the counterfeit certificates, Urena falsely claimed that the certificates were not intended to be genuine.
Acting United States Attorney Nathaniel R. Mendell; Michael T. Wiest, Special Agent in Charge of the Naval Criminal Investigative Service, Northeast Field Office; and Patrick Hegarty, Special Agent in Charge of the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office made the announcement. Assistant U.S. Attorney Evan Panich of Mendell’s office prosecuted the case.
Lake County Convicted Felon Indicted for Illegal Firearm Possession and Destruction of AircraftRead the Press Release
Ocala, Florida – A federal grand jury has returned an indictment charging Wendell Doyle Goney (51, Mount Dora) with possessing a firearm as a convicted felon and destruction of aircraft. If convicted of both counts, Goney faces a maximum penalty of 30 years in federal prison. The indictment also notifies Goney that the United States intends to forfeit a rifle and ammunition allegedly used in the commission of the offenses.
According to court documents, on July 11, 2021, deputies from the Lake County Sheriff’s Office responded to a burglary at a 10-acre business property in Mount Dora. Deputies deployed a law enforcement drone to assist with the outdoor search, only to have the drone destroyed by gunfire from a neighboring property. When deputies responded to that location, they confronted Goney, who acknowledged that he had just shot down the drone with a .22 caliber rifle. He claimed that drones had been “harassing” him. Goney also admitted to the deputies that he could not lawfully possess a firearm—he has 29 prior felony convictions in Florida. As a convicted felon, Goney is prohibited from possessing firearms and ammunition under federal law.
An indictment is merely an allegation and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol Tobacco, Firearms and Explosives, the Department of Transportation-Office of Inspector General, and the Lake County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Kalispell man admits sexually exploiting childRead the Press Release
MISSOULA – A Kalispell man accused of taking sexually explicit photographs of a child while boating on Ashley Lake in Flathead County admitted charges today, Acting U.S. Attorney Leif M. Johnson said.
Edward Timothy Cockerham, 43, pleaded guilty to sexual exploitation of a child. Cockerham faces a mandatory minimum 15 years to 30 years in prison, a $250,000 fine and at least five years of supervised release.
U.S. Magistrate Judge Kathleen L. DeSoto presided. Sentencing was set for Jan. 27, 2022 before U.S. District Judge Dana L. Christensen. Cockerham was detained pending further proceedings.
In court documents filed in the case, the government alleged that on June 24, Cockerham went to Ashley Lake and was accompanied by two children. Cockerham took the victim, who was under the age of 18 and was identified as Jane Doe 1, boating. While out on the water, Cockerham touched and took sexually explicit pictures of Jane Doe 1. Jane Doe 1 reported Cockerham’s actions. The Flathead County Sheriff’s Office seized Cockerham’s cell phone and searched it pursuant to a warrant. An initial review determined Cockerham had deleted all of the images from his cell phone. The sheriff’s office obtained a second search warrant and sent the cell phone to the Montana Department of Justice’s Division of Criminal Investigation computer lab. A forensic examiner located sexually explicit images of Jane Doe 1.
Assistant U.S. Attorney Cyndee L. Peterson is prosecuting the case, which was investigated by the Flathead County Sheriff’s Office, Homeland Security Investigations, Montana Division of Criminal Investigation, and the Montana Internet Crimes Against Children Task Force.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative, which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.
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Justice, Education Departments Issue Fact Sheet on Supporting Students at Risk of Self Harm during COVID-19 EraRead the Press Release
In recognition of World Mental Health Day, today the U.S. Department of Justice and the U.S. Department of Education’s Office for Civil Rights (OCR) jointly issued a fact sheet to support students with mental health disabilities, their families, and their schools in the era of COVID-19. Along with the fact sheet, OCR released a letter to educators highlighting the civil rights obligations of schools and postsecondary institutions to students with mental health disabilities.
“The Department of Justice is committed to safeguarding the rights of students with mental health disabilities through vigorous enforcement of the civil rights laws, particularly given the continuing effects of the pandemic,” said Assistant Attorney General Kristen Clarke of the Department of Justice’s Civil Rights Division. “Students should be supported and not excluded from educational opportunities on the basis of disability.”
“The COVID-19 pandemic’s effects on student mental health are widespread and deeply concerning,” said Acting Assistant Secretary for Civil Rights Suzanne B. Goldberg of the Department of Education. “OCR is committed to providing resources to support students with mental health disabilities, including those who may be at risk for self-harm.”
OCR’s June 2021 report, Education in a Pandemic: The Disparate Impacts of COVID-19 on America’s Students, showed that COVID-19 has had disproportionately harsh effects on many students with disabilities. Today’s action responds to pandemic’s effects on students’ mental health and provides information about the federal civil rights laws that protect students with mental health disabilities.
The fact sheet entitled Supporting Students at Risk of Self-Harm in the Era of COVID-19, provides information about federal civil rights laws that protect students with mental health disabilities. The fact sheet includes scenarios that illustrate when the department might investigate a potential violation; gives schools and postsecondary institutions a list of action steps to create an environment that is responsive to students with mental health disabilities; and provides educational and crisis resources for students, families, and educators.
World Mental Health Day is an international day to raise awareness of mental health issues around the world and to mobilize efforts in support of mental health. More than 18 months into the COVID-19 pandemic, it is particularly important to acknowledge the pandemic’s impact on mental health at home and around the world, to present an opportunity for meaningful conversations about mental health, and to celebrate schools and other institutions that have found new and promising ways to provide mental health services to their populations.
The Biden-Harris Administration has taken significant action to address the mental health needs of Americans, and the President's Build Back Better agenda includes funding and support for a wide range of programs aimed at improving access to mental health services.
If you believe that you or another person has been discriminated against at school based on a mental health disability, you may file a complaint with the Justice Department’s Civil Rights Division at https://civilrights.justice.gov/ or https://www.ada.gov/fact_on_complaint.htm, or with the Education Department’s Office for Civil Rights at https://www2.ed.gov/ocr/complaintintro.html to file a complaint in English or www.ed.gov/ocr/docs/howto.html to file a complaint in other languages.
The guidance is on the Justice Department’s website here and on OCR’s website here.
Justice Department Announces Investigation into Conditions at Five Juvenile Facilities in TexasRead the Press Release
The Justice Department announced today that it has opened a statewide investigation into the conditions in the five secure juvenile correctional facilities run by the Texas Juvenile Justice Department.
The investigation will examine whether Texas provides children confined in the facilities reasonable protection from physical and sexual abuse by staff and other residents, excessive use of chemical restraints and excessive use of isolation. The investigation will also examine whether Texas provides adequate mental health care.
“Too often children held in juvenile detention facilities are subject to abuse and mistreatment, and deprived of their constitutional rights,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “State officials have a constitutional obligation to ensure reasonable safety for children in these institutions. The Department of Justice stands ready to protect the rights of children who end up in juvenile facilities and our investigation will ensure that the treatment of these children comports with constitutional standards.”
“The U.S. Attorney’s Office of the Western District of Texas is committed to protecting the constitutional rights of all persons, including vulnerable young persons incarcerated in Texas Juvenile Justice Department secure facilities,” said U.S. Attorney Ashley C. Hoff for the Western District of Texas. “We look forward to partnering with the Civil Rights Division and other U.S. Attorney’s Offices in our state to conduct a fair and thorough investigation of these allegations.”
“Young people, even though they are confined in a juvenile facility, should not be abused, mistreated or deprived of essential services,” said Acting U.S. Attorney Jennifer B. Lowery of the Southern District of Texas. “We have a duty to ensure young people incarcerated in our state are held under safe and constitutional conditions.”
“No matter who they are – or what they’ve done – our state’s kids deserve safe environments,” said Acting U.S. Attorney Chad Meacham of the Northern District of Texas. “We cannot expect juvenile offenders to thrive later in life if they emerge from confinement traumatized by sexual abuse, excessive force, or incessant isolation.”
“The U.S. Attorney’s Office for the Eastern District of Texas is committed to protecting the constitutional rights of all Texas children, including those incarcerated in Texas Juvenile Correctional Facilities,” said Acting U.S. Attorney Nicholas J. Ganjei of the Eastern District of Texas. “We are proud to partner with the Civil Rights Division and the other U.S. Attorney’s Offices of Texas to conduct a fair and thorough investigation of these allegations.”
The department has not reached any conclusions regarding the allegations in this matter. The investigation will be conducted under the Civil Rights of Institutionalized Persons Act (CRIPA) and the Violent Crime Control and Law Enforcement Act. Both statutes give the department the authority to investigate systemic violations of the rights of young people in juvenile correctional facilities. The department’s work has led to important reforms to protect the rights of young people housed in those facilities.
The Civil Rights Division’s Special Litigation Section is conducting this investigation jointly with the U.S. Attorneys’ offices in the Western, Eastern, Southern and Northern Districts of Texas. Individuals with relevant information are encouraged to contact the department via phone at 1-866-432-0438 or by email at [email protected].
Additional information about the Civil Rights Division’s work regarding juvenile correctional facilities and the administration of juvenile justice is available on its website at https://www.justice.gov/crt/rights-juveniles.
Justice Department Announces Investigation into Conditions at Five Juvenile Facilities in TexasRead the Press Release
WASHINGTON – The Justice Department announced today that it has opened a statewide investigation into the conditions in the five secure juvenile correctional facilities run by the Texas Juvenile Justice Department.
The investigation will examine whether Texas provides children confined in the facilities reasonable protection from physical and sexual abuse by staff and other residents, excessive use of chemical restraints, and excessive use of isolation. The investigation will also examine whether Texas provides adequate mental health care.
“The U.S. Attorney’s Office for the Eastern District of Texas is committed to protecting the constitutional rights of all Texas children, including those incarcerated in Texas Juvenile Correctional Facilities,” said Acting U.S. Attorney Nicholas J. Ganjei. “We are pleased to partner with the Civil Rights Division and the other U.S. Attorney’s Offices of Texas to conduct a fair and thorough investigation of these allegations.”
“Too often children in juvenile facilities like those at issue here are abused, mistreated, and deprived of essential services,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “State officials have a constitutional obligation to ensure reasonable safety for children in these institutions, and the Department of Justice is committed to protecting the rights of children who end up in such facilities. We look forward to working with our colleagues in the United States Attorney’s Offices throughout Texas to ensure that the State’s treatment of these children comports with constitutional standards.”
The Department has not reached any conclusions regarding the allegations in this matter. The investigation will be conducted under the Civil Rights of Institutionalized Persons Act (CRIPA) and the Violent Crime Control and Law Enforcement Act. Both statutes give the Department the authority to investigate systemic violations of the rights of young people in juvenile correctional facilities. The Department’s work has led to important reforms to protect the rights of young people housed in those facilities.
The Civil Rights Division’s Special Litigation Section is conducting this investigation jointly with the United States Attorney’s offices in the Eastern, Southern, Northern and Western Districts of Texas. Individuals with relevant information are encouraged to contact the department via phone at 1-866-432-0438 or by email at [email protected].
Additional information about the Civil Rights Division’s work regarding juvenile correctional facilities and the administration of juvenile justice is available on its website at https://www.justice.gov/crt/rights-juveniles.
Justice Department Announces Investigation into Conditions at Five Juvenile Facilities in TexasRead the Press Release
The Justice Department announced today that it has opened a statewide investigation into the conditions in the five secure juvenile correctional facilities run by the Texas Juvenile Justice Department.
The investigation will examine whether Texas provides children confined in the facilities reasonable protection from physical and sexual abuse by staff and other residents, excessive use of chemical restraints and excessive use of isolation. The investigation will also examine whether Texas provides adequate mental health care.
“Too often children held in juvenile detention facilities are subject to abuse and mistreatment, and deprived of their constitutional rights,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “State officials have a constitutional obligation to ensure reasonable safety for children in these institutions. The Department of Justice stands ready to protect the rights of children who end up in juvenile facilities and our investigation will ensure that the treatment of these children comports with constitutional standards.”
“The U.S. Attorney’s Office of the Western District of Texas is committed to protecting the constitutional rights of all persons, including vulnerable young persons incarcerated in Texas Juvenile Justice Department secure facilities,” said U.S. Attorney Ashley C. Hoff for the Western District of Texas. “We look forward to partnering with the Civil Rights Division and other U.S. Attorney’s Offices in our state to conduct a fair and thorough investigation of these allegations.”
“Young people, even though they are confined in a juvenile facility, should not be abused, mistreated or deprived of essential services,” said Acting U.S. Attorney Jennifer B. Lowery of the Southern District of Texas. “We have a duty to ensure young people incarcerated in our state are held under safe and constitutional conditions.”
“No matter who they are – or what they’ve done – our state’s kids deserve safe environments,” said Acting U.S. Attorney Chad Meacham of the Northern District of Texas. “We cannot expect juvenile offenders to thrive later in life if they emerge from confinement traumatized by sexual abuse, excessive force, or incessant isolation.”
“The U.S. Attorney’s Office for the Eastern District of Texas is committed to protecting the constitutional rights of all Texas children, including those incarcerated in Texas Juvenile Correctional Facilities,” said Acting U.S. Attorney Nicholas J. Ganjei of the Eastern District of Texas. “We are proud to partner with the Civil Rights Division and the other U.S. Attorney’s Offices of Texas to conduct a fair and thorough investigation of these allegations.”
The department has not reached any conclusions regarding the allegations in this matter. The investigation will be conducted under the Civil Rights of Institutionalized Persons Act (CRIPA) and the Violent Crime Control and Law Enforcement Act. Both statutes give the department the authority to investigate systemic violations of the rights of young people in juvenile correctional facilities. The department’s work has led to important reforms to protect the rights of young people housed in those facilities.
The Civil Rights Division’s Special Litigation Section is conducting this investigation jointly with the U.S. Attorneys’ offices in the Western, Eastern, Southern and Northern Districts of Texas. Individuals with relevant information are encouraged to contact the department via phone at 1-866-432-0438 or by email at [email protected].
Additional information about the Civil Rights Division’s work regarding juvenile correctional facilities and the administration of juvenile justice is available on its website at https://www.justice.gov/crt/rights-juveniles.
Jury Convicts Raleigh Man of Firearms and Narcotics OffensesRead the Press Release
RALEIGH, N.C. – A federal jury convicted a Raleigh man today on charges of possession with intent to distribute a quantity of cocaine, possession of firearms by a convicted felon, and possession of firearms in furtherance of a drug trafficking crime.
According to court records and evidence presented at trial, Keith Lamont Thompson, Jr., 27, possessed two firearms and over two ounces of powder cocaine. On July 6, 2019, officers with the Raleigh Police Department received information that Thompson was in possession of cocaine and multiple firearms at his apartment in Raleigh, North Carolina. When Raleigh Police executed the search warrant, they learned that Thompson had ordered a female subject to hide his guns and drugs in her car. Officers searched the car and recovered 90 grams of cocaine and two firearms, including one that had been reported stolen. Further investigation revealed that Thompson was a convicted felon on active state probation for selling cocaine at the time of the July 6 search.
Thompson faces a mandatory minimum of 5 years and a maximum of life in prison when sentenced in January 2022. Thompson also faces enhanced sentencing penalties as a career offender due to a conviction in 2014 for Robbery with a Dangerous Weapon and Second-Degree Kidnapping, and a conviction in 2018 for Possession with Intent to Sell or Deliver Cocaine. He faces a guideline range of 360 months to life imprisonment.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge James C. Dever III accepted the verdict. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Raleigh Police Department investigated the case and Assistant U.S. Attorney Aakash Singh prosecuted the case.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.5:20-cr-00223-D-1.
Jefferson County man sentenced for unlawful possession of a firearm silencerRead the Press Release
MARTINSBURG, WEST VIRGINIA – Timothy John Watson, of Ranson, West Virginia, was sentenced today to 60 months of incarceration for unlawfully possessing a firearm silencer, United States Attorney William J. Ihlenfeld, II announced.
Watson, 31, pleaded guilty in March 2021 to one count of “Possession of Unregistered Firearm Silencer.” Watson admitted to having an unregistered silencer in November 2020 in Jefferson County.
The government presented evidence today that Watson’s conduct also involved his manufacture and transfer of hundreds of machinegun conversion devices for AR-15 style rifles, also known as “drop in auto sears,” to nearly 800 individuals including individuals whom he had reason to believe were adherents to an extremist political movement referred to as “Boogaloo,” a term referencing an impending civil war or violent uprising against the government for perceived incursions on U.S. Constitutional rights, including the Second Amendment. From those sales, the FBI opened matters involving 58 individuals, resulting to date in three firearms-related arrests and one conviction. Many of the investigations remain ongoing.
Watson was ordered to forfeit the silencer, all 3D-printed items that the government will argue are machinegun conversion devices, the 3D printers, 3D printer parts, and 3D printer supplies, as well as a U.S. Postal Service package containing the same conversion devices. All items were seized during a search in November 2020.
Assistant U.S. Attorneys Jarod J. Douglas and Lara Omps-Botteicher prosecuted the case on behalf of the government. The FBI, the Bureau of Alcohol, Tobacco, and Firearms, and the U.S. Postal Inspection Service continues its investigation.
Chief U.S. District Judge Gina M. Groh presided.
Jefferson County man pleads guilty to his role in a multi-state methamphetamine distribution conspiracyRead the Press Release
ST. LOUIS – United States District Court Judge Ronnie L. White accepted a plea of guilty from Kevin Karll on today’s date for the crimes of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine. Judge White set sentencing for January 11, 2022.
Kevin Karll is the first defendant to plead guilty in a multi-defendant conspiracy to distribute methamphetamine. According to the plea agreement, for more than a year, the Drug Enforcement Administration, Homeland Security Investigations, U.S. Postal Inspection Service and Jefferson County Municipal Enforcement Group, investigated a drug trafficking organization responsible for the distribution of crystal methamphetamine in the St. Louis region, with a network connected to Los Angeles, California. Karll was identified as one of many street-level distributors for the illicit drug organization.
The indictment alleges that from January 2019 until the date of the indictment (January 6, 2021) Brendon Thomas, Joe Holliman, Dedrick Jordan, Terry Williams and others, both known and unknown, to include Kevin Karll conspired to distribute methamphetamine and other controlled substances in the Eastern District of Missouri and elsewhere.
On June 18, 2020, investigators joined with the St. Charles County Regional Drug Task Force and the St. Louis Metropolitan Police Department to execute search warrants at locations associated with the conspiracy. Investigators seized more than $140,000 in cash, crystal methamphetamine and high-grade marijuana, as well as two assault rifles and four handguns. Investigators stopped a vehicle on its way to St. Louis and seized 28 pounds of methamphetamine and a firearm from a hidden compartment from within the vehicle.
The investigation involved the following law enforcement agencies: DEA, HSI, U.S. Postal Inspection Service, U.S. Marshals Service, Jefferson County Sheriff’s Department, St. Charles City and County Police, Phelps County Sheriff’s Department, Arnold Police Department and the Normandy Police Department, all in Missouri.
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Helena man sentenced to 10 years in prison for meth trafficking, firearm crimesRead the Press Release
GREAT FALLS — A Helena man who admitted to trafficking methamphetamine and to possessing a stolen gun was sentenced today to 10 years in prison to be followed by four years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
Robert Raymond Fasuga, 38, pleaded guilty in June to conspiracy to possess with intent to distribute meth and to possession of a stolen firearm.
Chief U.S. District Judge Brian M. Morris presided.
In court documents filed in the case, the prosecution alleged that on June 14, 2020, Fasuga possessed at least one stolen firearm after he fled from law enforcement, pulled two firearms from his person and pointed them to his head. Officers talked him down, and Fasuga later told agents that he assumed the guns were stolen because he paid $50 for each one. Mountain Man Trading Post in Belgrade was the lawful owner of a .380 pistol recovered from Fasuga. The government also alleged that Fasuga was a meth dealer. During the execution of a federal search warrant on March 24, 2021, agents found about one pound of meth that Fasuga intended to sell and $6,779 in U.S. currency believed to be drug proceeds.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Lewis and Clark County Sheriff’s Office investigated the case.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Harrison County man sentenced for child pornography chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Terrell Anderson, of Bridgeport, West Virginia, was sentenced today to 60 months of incarceration for a child pornography charge, U.S. Attorney William J. Ihlenfeld, II announced.
After a two-day trial in June 2021, a federal jury found Anderson, 26, guilty of one count of “Possession of Child Pornography.” Anderson had child pornography on his phone in January 2020 in Harrison County.
Assistant U.S. Attorneys David J. Perri and Danae DeMasi-Lemon prosecuted the case on behalf of the government. The Bridgeport Police Department investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Hamlin Man Sentenced to 10 Years for Importing MethamphetamineRead the Press Release
BANGOR, Maine—A Hamlin man was sentenced today in federal court for importing methamphetamine into the United States from Canada, U.S. Attorney Darcie N. McElwee announced.
U.S. District Judge Lance E. Walker sentenced Lance Labreck, 25, to 10 years in prison followed by five years of supervised release. Labreck pleaded guilty on January 12, 2021.
According to court records, on November 19, 2019, Labreck drove a snowmobile from the U.S. across the international border into Canada. Later that evening, he returned to the U.S. via snowmobile, carrying with him approximately 55 grams of pure methamphetamine he had obtained in Canada. When stopped by Border Patrol Agents, he admitted to possessing the methamphetamine and bringing it back over the international border into the U.S.
Homeland Security Investigations, the U.S. Border Patrol and the U.S. Drug Enforcement Administration investigated the case.
Gulfport Man Sentenced to 10 Years in Prison for Illegal Possession of FirearmsRead the Press Release
Jackson, Miss. – A Gulfport man was sentenced to 120 months in federal prison for being a convicted felon in possession of three firearms, announced Acting U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation in Mississippi.
Albert Proctor, 43, was arrested in Jackson on January 17, 2020, for illegally possessing three firearms. Proctor has previous felony convictions for grand larceny, drug possession and manslaughter. He pled guilty on May 6, 2021.
The Federal Bureau of Investigation investigated the case.
Assistant U.S. Attorney Lynn Murray prosecuted 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.
Grant County man admits to firearms chargeRead the Press Release
ELKINS, WEST VIRGINIA – Jeffery Allen McCurdy, of Cabins, West Virginia, has admitted to a firearms charge, United States Attorney William J. Ihlenfeld, II announced.
McCurdy, 34, pleaded guilty today to one count of “Unlawful Possession of a Firearm.” McCurdy, a person prohibited from having firearms because of a prior conviction, admitted to having two 12-gauge shotguns and a .22 caliber long rifle in January 2021 in Grant County.
McCurdy faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. - A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Lafayette County Man Charged with Child Pornography Crimes
Josiah Creasey, 34, Darlington, Wisconsin, is charged with 3 counts of attempting to produce child pornography, 1 count of producing child pornography, and 1 count of possessing child pornography. The indictment alleges that Creasey attempted to use a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct on three occasions between September 2017 and December 2019, and that Creasey used a minor to produce such a visual depiction in January 2019.
The indictment also charges Creasey with possessing child pornography on March 24, 2021, and that at least one of the depictions involved a minor who had not attained 12 years of age.
If convicted, Creasey faces a mandatory minimum penalty of 15 years and a maximum of 30 years in federal prison on each of the attempted production charges and on the production charge, and a maximum of 20 years on the possession charge. The charges against him are the result of an investigation by the Lafayette and Grant County Sheriffs’ Offices, Wisconsin Department of Justice Division of Criminal Investigation, Platteville Police Department, and National Center for Missing and Exploited Children. Assistant U.S. Attorney Julie Pfluger is handling the prosecution.
La Crosse Man Charged with Possessing Child Pornography
Jeremy Hogenkamp, 45, La Crosse, Wisconsin, is charged with possessing child pornography. The indictment alleges that on October 6, 2021, he possessed a laptop computer that contained visual depictions of minors engaging in sexually explicit conduct, and that at least one of the depictions involved a minor who had not attained 12 years of age.
If convicted, Hogenkamp faces a maximum penalty of 20 years in federal prison. The charge against him is the result of an investigation by the La Crosse, Onalaska, Holmen, and Town of Campbell Police Departments and the Federal Bureau of Investigation. Assistant U.S. Attorney Elizabeth Altman is handling the prosecution.
Madison Man Charged with Gun Crime
James McGowan, Jr., is charged with being a felon in possession of a firearm. The indictment alleges that he possessed a loaded 9mm handgun on September 20, 2021.
If convicted, McGowan faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the Madison Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Corey Stephan is handling the prosecution.
Milwaukee Man Charged with Gun Crime
Montanez Miller, 25, Milwaukee, Wisconsin, is charged with being a felon in possession of firearms. The indictment alleges that he possessed a loaded 9mm handgun and a loaded .40 caliber handgun on May 16, 2021.
If convicted, Miller faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the La Crosse Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Corey Stephan is handling the prosecution.
Fort Worth Woman Sentenced to over 21 Years for Importing MethRead the Press Release
DEL RIO – A Fort Worth woman was sentenced today to 262 months in prison for her part in a conspiracy to import methamphetamine.
According to court documents, Maria Tello, 39, and Juan Tello, 39, both from Fort Worth, conspired together to import over 34 kilograms of methamphetamine from Mexico. On December 2, 2017, a vehicle stopped at the Del Rio Port of Entry had two compartments loaded with 34.32 kilograms of methamphetamine. The vehicle was driven to Dallas where it was met by Maria and Juan Tello. Maria Tello admitted she knew the vehicle was loaded with methamphetamine and that the drug was to be transported within the Dallas-Fort Worth area for further distribution.
“Methamphetamine is a highly addictive poison that destroys lives and destabilizes our communities,” said U.S. Attorney Ashley C. Hoff. “We will hold accountable those seeking to distribute it.”
“Today’s sentence sends a clear message to criminal organizations that there are serious consequences for trafficking-controlled substances,” said Special Agent in Charge Shane Folden, Homeland Security Investigations (HSI) San Antonio. “HSI will continue to pursue cross-border conspiracy investigations to target dangerous individuals who threaten the security of the United States.”
On April 26, 2018, Juan Tello pleaded guilty to one count of conspiracy to import methamphetamine. He was sentenced to 210 months in prison on September 18, 2019.
The HSI investigated the case.
Assistant U.S. Attorneys Sydni Connell and Amy Hail prosecuted the case.
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Former Northeast Missouri City Clerk Sentenced to PrisonRead the Press Release
ST. LOUIS – Tracey Ray, 48, of Center, Missouri, was sentenced today to eighteen months in federal prison and ordered to make restitution to the City of Center, Missouri in the amount of $314,889.59. Ray appeared before United States District Court Judge Rodney W. Sippel.
Ray was the City Clerk of Center, Missouri for many years, since 2004. Beginning in January 2015 and continuing through July 2019, Ray engaged in a scheme to defraud and obtain money from Center, Missouri and its residents in an approximate amount of $315,000, by means of materially false and fraudulent pretenses, representations and promises.
As part of her fraudulent scheme, on approximately 30 occasions, Ray used Center bank funds to pay for charges on her personal credit card. Center funds used to pay for personal charges on Ray’s GM credit card totaled approximately $206,342.53 and were for such personal expenses as retail vendor charges, entertainment, lodging and travel, hair salons, restaurants and grocery store charges. These personal credit card payments were made either by Ray’s issuance of Center bank checks, or by Ray’s wire transfer of Center bank funds. Further, through these unauthorized credit card charges and payments, Ray earned and spent an additional approximately $1,911.00 in reward funds. Further, on approximately 39 occasions, Ray issued Center bank account checks in the approximate total amount of $62,537.76 to Anthem Blue Cross and Blue Shield to pay for the premiums on a family health insurance policy, as well as on life and disability policies for her and her family members.
As a further part of her scheme, Ray issued five additional Center payroll checks to herself in the total amount of approximately $3,580.00, depositing each of those unauthorized checks into her own personal bank account. On 49 occasions, Ray issued checks on City bank accounts, in the total approximate amount of $35,546.85 to directly pay for the purchases of personal items and services. Ray issued these Center checks to make personal purchases at a number of retailers, such as Kohl’s, Lowe’s, Walmart, and Hobby Lobby, as well as to pay for her personal residential mortgage and personal insurance policies. She also issued one or more of these Center checks to her family members, unrelated to the legitimate business and operations of Center. Further, Ray, as Center’s City Clerk, received cash payments from Center residents for various city charges, but Ray failed to deposit those cash receipts into the appropriate Center bank account. Instead, Ray used those cash proceeds, in the total amount of approximately $7,407.45 for her own personal use, without the knowledge and authority of Center and its City Council.
In order to conceal her scheme from Center and its Mayor and City Council, Ray falsified the cash balances of one or more Center bank accounts on financial reports she prepared for monthly City Council meetings. Ray also prepared false and incomplete lists of bills to be paid which she submitted for monthly City Council meetings. Further, Ray falsified internal Center financial accounting records to make it appear that the unauthorized checks and wires she issued from Center bank accounts were made to legitimate third party vendors who had purportedly provided actual services or materials to Center.
The Federal Bureau of Investigation, Missouri State Auditor’s Office and Ralls County Sheriff’s Office investigated the case. Assistant United States Attorney Hal Goldsmith is handling the case.
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Former New Bedford Police Union Treasurer Pleads Guilty to Stealing Union FundsRead the Press Release
BOSTON – A former New Bedford Police Department (NBPD) officer and NBPD Union Treasurer pleaded guilty today to stealing nearly $50,000 in union funds.
Joshua Fernandes, 41, of New Bedford, pleaded guilty to one count of wire fraud. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Feb. 16, 2022. According to the terms of the plea agreement, the government will recommend a sentence of 12-18 months in prison, two years of supervised release, a fine, restitution of $48,630 and forfeiture. Fernandes was charged on July 19, 2021.
Fernandes admitted to abusing his position as Union Treasurer by using nearly $50,000 in union funds to pay for personal expenses including vacations, family outings, and a monthly wireless family phone plan, among other things. Fernandes carried out his scheme by reimbursing his personal credit card accounts with union funds and by using the union’s credit cards to pay directly for non-union expenses.
The charging statute provides 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; and Jonathan Russo, District Director of U.S. Department of Labor, Office of Labor Management Standards, made the announcement today. Assistant U.S. Attorney Eugenia M. Carris, Deputy Chief of Mendell’s Public Corruption & Special Prosecutions Unit, is prosecuting the case.
Former NYPD Officer Pleads Guilty to Trafficking Large Quantities of Methamphetamine and Liquid Date Rape DrugRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that former New York City Police Department (“NYPD”) officer JOHN CICERO pled guilty today to distributing large quantities of methamphetamine and gamma-butyrolactone (known as “GBL”) in Westchester County and New York City. CICERO pled guilty before U.S. Magistrate Judge Andrew E. Krause.
U.S. Attorney Damian Williams said: “A former NYPD police officer once sworn to protect the public, John Cicero now stands convicted of trafficking substantial quantities of methamphetamine and GBL, a liquid date-rape drug, throughout Westchester and New York City. As he admitted today, over several years, Cicero was a leader of a drug trafficking ring, and he was personally responsible for moving over three kilograms of methamphetamine and 750 liters of GBL, and importing narcotics from overseas. Thanks to the dedication of our partners at the Federal Bureau of Investigation, Cicero now awaits sentencing for his dangerous conduct.”
According to the Indictment, public court filings, and statements made in court:
Beginning in at least 2017 and lasting until his arrest in February 2020, CICERO and his co-conspirators stockpiled and sold liters of GBL and kilograms of methamphetamine in apartments, hotel rooms, and storage units in the heart of midtown Manhattan, and a residence in Bronxville, New York. CICERO repeatedly brokered large-scale narcotics transactions over recorded prison calls with an inmate then in New York State custody. U.S. Customs and Border Protection has previously seized GBL sent from China to CICERO’s address in New York. As part of his guilty plea, CICERO stipulated that he was an organizer, leader, manager, or supervisor in the criminal activity, the offense involved the importation of methamphetamine, and his offense conduct involved over three kilograms of methamphetamine and 750 liters of GBL. The charged conduct began years after CICERO left the NYPD.
On February 19, 2020, CICERO was arrested in a Wall Street hotel, in a room he had rented under a false identity. In addition to methamphetamine and GBL, law enforcement recovered from CICERO’s room a bank card and a fake ID, bearing CICERO’s photograph, all in the name of the false identity to whom the room was rented. As part of CICERO’s arrest, law enforcement also recovered detailed drug ledgers, credit card making equipment, and notebooks full of victims’ personally identifiable information.
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CICERO, 39, of Bronxville, New York, is scheduled to be sentenced by United States District Judge Kenneth M. Karas on February 10, 2022. CICERO pled guilty to one count of conspiring to distribute 50 grams of methamphetamine and GBL, which carries a statutory mandatory minimum term of five years in prison and maximum penalty of 40 years in prison. The maximum and mandatory minimum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the FBI Westchester County Safe Streets Task Force, which comprises agents and detectives from the FBI, Westchester County District Attorney’s Office, Westchester County Police Department, Yonkers Police Department, Peekskill Police Department, Mount Vernon Police Department, NYPD, and U.S. Probation. He also thanked the New York State Department of Corrections Office of Special Investigations, Drug Enforcement Administration, and U.S. Customs and Border Protection for their assistance.
This case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys David R. Felton and Daniel G. Nessim are in charge of the prosecution.
Former Musical Director at St. Agnes Cathedral on Long Island Sentenced to 72 Months in Prison for Receiving Child PornographyRead the Press Release
Earlier today, in federal court in Central Islip, Michael Wustrow, a former musical director at St. Agnes Cathedral on Long Island, was sentenced by United States District Judge Denis R. Hurley to 72 months in prison for receiving child pornography. As part of his sentence, Wustrow will also be required to register as a sex offender upon his release from prison. The defendant pleaded guilty to the charge in June 2019.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
“Today’s sentence underscores the serious consequences Wustrow will face for years to come for his sordid role in receiving child pornography and perpetuating the sexual abuse of children,” stated Acting United States Attorney Jacquelyn M. Kasulis. “Protecting vulnerable children from predators and those who traffic in child pornography will always be a priority of this Office and the Department of Justice.” Ms. Kasulis extended her grateful appreciation to the FBI’s Long Island Child Exploitation and Human Trafficking Task Force leading the investigation.
“Mr. Wustrow actions, and the material he collected, are a shock to our collective conscience. Thankfully, he's now headed to federal prison where he will no longer be a danger to the innocent children who have no ability to protect themselves from evil,” stated FBI Assistant Director-in-Charge Driscoll.
In June 2016, law enforcement officers acting in an undercover capacity engaged in chats with Wustrow via the Kik Messenger program (hereinafter “Kik”), which is an instant messaging service, during which the defendant discussed child pornography and shared images of child pornography with the officer. Wustrow utilized the Kik username “pervdad516.” In September 2017, Wustrow was found to be in possession of multiple images on his iPhone of children engaged in sexually explicit conduct. Among these images was a picture of a toddler being abused by an adult male, which Wustrow had received from the Kik messaging app.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Oren Gleich is in charge of the prosecution.
The Defendant:
MICHAEL WUSTROW
Age: 59
Freeport, New YorkE.D.N.Y. Docket No. 19-CR-00087 (DRH)
Former Hawaii Public Official Pleads Guilty to Embezzling from AmeriCorps and Offering a Bribe in Return for CARES Act GrantsRead the Press Release
WASHINGTON – Stacy Higa, 58, a former public official from Hilo, Hawaii, pleaded guilty today to embezzling more than $38,000 from AmeriCorps and also to offering a bribe in return for grants under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
The announcement was made by Channing D. Phillips, Acting U.S. Attorney for the District of Columbia, Deborah Jeffrey, Inspector General of AmeriCorps, and Steven Merrill, Special Agent in Charge of the FBI’s Honolulu Field Office.
Higa pleaded guilty in the U.S. District Court for the District of Columbia to one count each of embezzlement and bribery. Both charges carry statutory maximums of 10 years in prison and financial penalties. Under the federal sentencing guidelines, Higa faces a likely range of between 46 and 57 months in prison and a fine of up to $200,000. The plea agreement requires him to pay $38,642 in restitution to AmeriCorps and an identical amount in a forfeiture money judgment. The Honorable Reggie B. Walton scheduled sentencing for Jan. 13, 2022.
“This defendant has admitted taking money from programs that were designed to help the most vulnerable Americans,” said Acting U.S. Attorney Phillips. “The United States Department of Justice will aggressively prosecute and seek to hold accountable those individuals who choose to abuse their positions of power to enrich themselves at the cost of the American people.”
“Again and again, Stacy Higa betrayed his neighbors, the people of Hawaii, and American taxpayers to serve his greed and vanity by embezzling funds set aside to help communities in need,” said Inspector General Jeffrey of AmeriCorps. “OIG will vigorously pursue allegations of fraud in AmeriCorps programs and will work tirelessly to see that those responsible are brought to justice. I want to thank the FBI’s Honolulu Field Office for its partnership in pursuing this investigation and the U.S. Attorney’s Office in D.C. for overseeing the prosecution.”
“Our communities place great trust and responsibility in our public figures. Stacy Higa ultimately betrayed this trust when he abused his power to embezzle federal funds and participate in bribery,” said FBI Special Agent in Charge Merrill. “The FBI will not tolerate these crimes and will hold perpetrators accountable for their actions. Today’s guilty plea is a direct result of the hard work and dedication the FBI and our law enforcement partners put towards obtaining justice.”
AmeriCorps is a federally funded network of national service programs that address critical community needs like increasing academic achievement, mentoring youth, fighting poverty, sustaining national parks, preparing for disasters, and more. AmeriCorps’ national service members commit to service for a set period, usually a year, in exchange for a living allowance, funding to be used for college tuition, and other benefits.
From June 2011 until May 2020, Higa, a former Hawaii County council member and mayoral candidate, served as the Executive Director of the Hawaii Commission for National and Community Service, the state service commission responsible for administering AmeriCorps programs in Hawaii. From February 2018 through his resignation from the Commission, Higa embezzled more than $38,000 in AmeriCorps funds by signing and authorizing contracts and purchase orders between the Hawaii Commission and two companies that he owned or controlled, without disclosing his control of the companies. Higa spent the embezzled funds on personal expenses including paying for approximately $20,000 of elective aesthetic dental care.
In his plea today, Higa also admitted to carrying out a scheme involving the CARES Act, which was signed into law in March 2020 to provide financial relief to individuals, businesses, states, and localities suffering the economic effects of the COVID-19 pandemic. Among other relief programs, the CARES Act created a $150 billion Coronavirus Relief Fund (CRF) to be distributed to states, localities, and tribal governments to support expenditures incurred due to COVID-19. Government entities that received money from the CRF could use the funds, among other things, to make grants to small businesses to reimburse the costs of business interruption caused by required closures and to provide economic relief for those suffering employment interruption.
In that scheme, Higa admitted to offering financial benefits to Hanalei Aipoalani, who was hired in August 2020 as Honolulu City and County’s Department of Community Service’s CARES Program Administrator. Aipoalani was responsible for administering CRF programs. From August 2020 through October 2020, Higa offered to provide financial benefits to Aipoalani in order to influence the approval of Higa’s applications for two grants totaling $845,000 under the CARES Act. Higa then directed an employee to draft and submit false and backdated invoices under the grants. Higa and Aipoalani discussed opening LLCs on Oahu and using their wives as principals in order to launder the money. As part of his plea agreement, Higa admitted to expecting to receive at least $250,000 in profit from the CARES Act funds.
Aipoalani, 42, of Waianae, Hawaii, separately pleaded guilty in the U.S. District Court for the District of Columbia to embezzling from AmeriCorps and agreeing to accept a bribe under the CARES Act. Aipoalani was sentenced on June 30, 2021 to 46 months in prison and ordered to pay over $532,730 in restitution to AmeriCorps.
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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
Additionally, anyone who is aware of fraud, waste, or abuse affecting AmeriCorps or any of its programs, is encouraged to contact the AmeriCorps Office of Inspector General Hotline at 1-800-452-8210 or [email protected].
In announcing the plea, Acting U.S. Attorney Phillips, Inspector General Jeffrey, and Special Agent in Charge Merrill commended the work of those who investigated the case from the Inspector General for AmeriCorps and the FBI’s Honolulu Field office. They also acknowledged the efforts of those who worked on the investigation from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorneys Peter Lallas and Amanda Vaughn and Paralegal Specialist Mariela Andrade. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Leslie A. Goemaat, also of the U.S. Attorney’s Office for the District of Columbia, who is prosecuting the case.
Former Georgia Insurance Commissioner sentenced to federal prisonRead the Press Release
ATLANTA – Former Georgia Insurance Commissioner Jim Beck has been sentenced to federal prison following his conviction for stealing more than $2,500,000 from the Georgia Underwriting Association (GUA).
“Former Commissioner Beck has been held accountable for taking advantage of his position of trust at the GUA, stealing millions of dollars from his employer, and then defrauding the IRS,” said Acting U.S. Attorney Kurt R. Erskine. “At the time he was charged with these offenses in 2019, he was the newly elected Georgia Insurance Commissioner. Thankfully, the FBI and IRS uncovered these crimes before Beck got the chance to do even more damage as a statewide public official.”
“Beck’s actions were full of greed and selfishness as he took complete advantage of his employer (GUA) and friends who held him in a high position of trust,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “This sentencing should serve as a warning that no matter how elaborate a scheme, the FBI and our partners will use all resources necessary to hold deceitful individuals accountable for their actions and bring them to justice.”
“Beck abused his position as the General Manager of Operations for the GUA while engaging in a series of fraudulent transactions devised to siphon funds from a worthwhile organization. IRS Criminal Investigation is proud to have assisted our partners in unraveling the fraud actions undertaken by Beck for his personal benefit,” said James E. Dorsey, Special Agent in Charge, IRS Criminal Investigation Atlanta Field Office. “Pooling the skills of each agency makes a formidable team as we investigate allegations of wrong-doing. This sentencing demonstrates our collective efforts to enforce the law and ensure public trust.”
According to Acting U.S. Attorney Erskine, the charges and other information presented in court: From January 2012 until Beck was sworn in as Insurance Commissioner on January 14, 2019, Beck worked as the General Manager of Operations for the GUA after being elected to that post by the GUA board of directors. GUA, located in Suwanee, Georgia, is an insurance association created as part of the Georgia Fair Access to Insurance Requirements (FAIR) law to provide high-risk property insurance to homeowners located throughout Georgia. In addition to premiums collected from its customers, GUA is also funded by issuing assessments to the association members, which include every insurer authorized to write any form of property insurance in Georgia.
While Beck served as General Manager of GUA, he also maintained controlling financial interests in two businesses known as Creative Consultants and the GA Christian Coalition. Beginning in 2013, Beck talked four associates—all of whom were either friends or family members--into forming four separate businesses that supposedly supplied necessary services, including residential property inspections and water damage mitigation, to GUA. Then, through an elaborate system of fraudulent invoicing which included producing false documentation and concealing the truth from his four associates, Beck regularly approved substantial GUA payments to the four companies. Beck then prepared fraudulent invoices from Creative Consultants and GA Christian Coalition for services that were never performed, and, at Beck’s direction, his four associates paid the fraudulent invoices from the money they had been paid from GUA. Between February 2013 and August 2018, Beck stole more than $2,500,000 from GUA.
Beck was also sentenced for his convictions on four counts of tax fraud for filing false federal income tax returns for the years 2014 through 2018. Beck's tax returns for those years were fraudulent because they substantially overstated business expenses and substantially understated business profits for Beck's Creative Consultants and GA Christian Coalition. The tax loss to the IRS was more than $350,000.
Jim C. Beck, 60, of Carrolton, Georgia, has been sentenced to seven years, three months in prison to be followed by three years of supervised release, ordered to pay restitution in an amount over $2,619,000 and forfeiture of over $426,000, two pieces of real property and a $2,064.781.85 personal forfeiture money judgment. Beck was found guilty by a jury on July 22, 2021.
This case was investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation.
Assistant U.S. Attorneys Brent Alan Gray and Sekret T. Sneed prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Florida Man Pleads Guilty to Payment Processing Fraud SchemeRead the Press Release
A Florida man pleaded guilty today in the U.S. District Court for the District of Massachusetts to conspiracy to commit wire fraud in connection with a scheme to deceive banks and credit card companies into processing credit and debit card payments on behalf of merchants involved in prohibited and high-risk businesses, including online gambling, debt collection, payday lending, and prescription drugs.
According to court documents and statements made during the plea proceeding, Thomas Wells, 74, of Martin County, fraudulently represented that his merchant clients were engaged in the sale of low-risk retail goods to obtain debit and credit card payment processing for those clients from banks and credit card companies. Wells, through his company Priority Payout, introduced merchant clients seeking payment processing to Allied Wallet Inc., a payment processing company that served as an intermediary between merchants seeking to accept debit and credit cards and financial institutions that were members of the global electronic payment networks run by credit card companies such as Visa, Mastercard, American Express, and Discover. Wells’ clients included merchants engaged in prohibited or high-risk transactions and merchants that had already been terminated from card payment processing networks such as Visa and Mastercard for fraud, chargeback, or other compliance concerns. Wells admitted that he conspired with others to defraud several financial institutions and credit card companies by fraudulently inducing them to provide payment processing services to these merchant clients. Wells accomplished this with his co-conspirators by, among other means, creating shell companies, designing fake websites that purported to sell low-risk retail goods, and using industry-standard codes that miscategorized the true nature of the transactions. Wells admitted that he earned approximately $700,000 from the scheme.
Wells faces a maximum penalty of 20 years in prison, a $250,000 fine, three years’ supervised release, restitution, and forfeiture. 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 Nathaniel R. Mendell of the District of Massachusetts; Special Agent in Charge Jeffrey Ebersole of the U.S. Food and Drug Administration, Office of Criminal Investigations, New York Field Office; Inspector in Charge Ketty Larco-Ward of the U.S. Postal Inspection Service; and Special Agent in Charge Matthew B. Millhollin of Homeland Security Investigations in Boston made the announcement.
The case is being prosecuted by Trial Attorney Randall Warden of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and Assistant U.S. Attorney and Deputy Chief Seth B. Kosto of the Securities, Financial & Cyber Fraud Unit at the U.S. Attorney’s Office for the District of Massachusetts.
MLARS’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.
The details contained in the charging document are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Florida Man Pleads Guilty to Payment Processing Fraud ConspiracyRead the Press Release
BOSTON – A Florida man pleaded guilty today in federal court in Boston in connection with a scheme to deceive banks and credit card companies into processing more than $150 million in credit and debit card payments on behalf of merchants involved in prohibited and high-risk businesses, including online gaming, debt collection, payday lending and online pharmaceuticals among others.
Thomas Wells, 74, of Martin County, Fla., pleaded guilty to conspiracy to commit wire fraud. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Feb. 23, 2022. Wells was charged along with three others on Aug. 26, 2021.
Wells was the owner of Priority Payout, an independent sales organization based in Florida, whose clients included merchants engaged in prohibited or high-risk transactions and merchants that had already been terminated from card payment processing networks such as Visa and Mastercard for fraud, chargeback, or other compliance concerns. Wells referred merchant clients of Priority Payout seeking payment processing services to Allied Wallet Inc., a payment processing company that obtained for its clients access to services that enabled them to accept debit and credit card payments over global electronic payment networks run by Visa, Mastercard, American Express and Discover, among others (card brands) and served as an intermediary between its merchant clients and financial institutions that were members of the card brand networks (acquirers).
Wells engaged in a scheme to defraud several acquirers, the card brands and others of money and property by knowingly misrepresenting that his merchant clients were engaged in the sale of low-risk retail goods to obtain debit and credit card payment processing for those clients from banks and credit card companies and fraudulently inducing them to provide payment processing services to these merchant clients. According to the charging documents, Wells and his co-conspirators accomplished this by, among other means, creating shell companies, designing fake websites that purported to sell low-risk retail goods and using industry-standard codes that miscategorized the true nature of the transactions. Through the scheme, Wells admitted that he personally obtained approximately $700,000 in fraudulent payment card processing proceeds.
The charge of wire fraud conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, forfeiture and restitution. 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; Assistant Attorney General Kenneth A. Polite of the Justice Department’s Criminal Division; Jeffrey Ebersole, Special Agent in Charge of the U.S. Food and Drug Administration, Office of Criminal Investigations, New York Field Office; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement. Assistant U.S. Attorney Seth B. Kosto, Deputy Chief of Mendell’s Securities, Financial & Cyber Fraud Unit, and Trial Attorney Randall Warden of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Florida Man Pleads Guilty to Federal Charges for Fraudulently Obtaining and Laundering More than $4 Million in Paycheck Protection Program LoansRead the Press Release
A Florida man pleaded guilty today in the District of New Jersey to fraudulently obtaining more than $4.6 million in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration under the Coronavirus Aid, Relief and Economic Security Act, and subsequently laundering the loan proceeds through a series of illicit financial transactions.
According to court documents, Gregory J. Blotnick, 34, of West Palm Beach and formerly of New York City, submitted 21 fraudulent PPP loan applications to 13 lenders on behalf of at least nine purported businesses that Blotnick controlled, including BSC Opportunistic Equity LP and Brattle Street GP LLC. In these fraudulent applications, Blotnick falsified various information, including the number of his employees, the federal tax returns for his businesses, and payroll documentation. Blotnick sought more than $6.8 million in total PPP loans and obtained more than $4.6 million. Blotnick then laundered and misused the loan proceeds, including by transferring the funds to brokerage accounts that he controlled from which he placed more than $3 million in losing stock trades.
Blotnick pleaded guilty to one count of wire fraud and one count of money laundering. He is scheduled to be sentenced on March 1, 2022, and faces a maximum total penalty of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Rachael A. Honig for the District of New Jersey; Special Agent in Charge Robert Manchak of the Northeast Region of the Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG); Special Agent in Charge John F. Grasso of the Social Security Administration OIG (SSA-OIG) New York Field Division; Special Agent in Charge Patricia Tarasca of the Federal Deposit Insurance Corporation OIG (FDIC-OIG) New York Region; and Special Agent in Charge Michael Montanez of IRS—Criminal Investigation’s (IRS-CI) Newark office made the announcement.
The FHFA-OIG, SSA-OIG, FDIC-OIG, and IRS-CI are investigating the case.
Trial Attorney Cory E. Jacobs of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Fatime Meka Cano of the U.S. Attorney’s Office for the District of New Jersey are prosecuting 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.
Five Alleged Street Gang Members Charged with Federal Racketeering Offenses Including Murder of Chicago RapperRead the Press Release
CHICAGO — A federal indictment unsealed today charges five alleged members of the O-Block street gang with participating in a criminal organization that murdered a Chicago rapper and violently protected the gang and its territories on the South Side of Chicago.
The indictment alleges that the O-Block gang publicly claimed responsibility for acts of violence in Chicago and used social media and music to increase their criminal enterprise. The O-Block gang allegedly engaged in numerous acts of violence, including the murder of Carlton Weekly, a Chicago rapper also known as “FBG Duck,” on Aug. 4, 2020.
Charged with committing murder in aid of racketeering are Chicago residents CHARLES LIGGINS, also known as “C Murda,” 30; KENNETH ROBERSON, also known as “Kenny” and “Kenny Mac,” 28; TACARLOS OFFERD, also known as “Los,” 30; CHRISTOPHER THOMAS, also known as “C Thang,” 22; and MARCUS SMART, also known as “Muwop,” 22. The indictment also charges the defendants with federal firearm violations and assaults in aid of racketeering.
Liggins, Offerd, Thomas, and Smart were arrested this morning. They are scheduled to make initial court appearances today at 2:00 p.m. before U.S. Magistrate Judge M. David Weisman. Roberson is currently in the custody of the Cook County Department of Corrections. His initial federal court appearance will be scheduled at a later date.
The indictment 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. Substantial assistance in the investigation was provided by the Cook County State’s Attorney’s Office.
The government is represented by Assistant U.S. Attorneys Jason A. Julien, Albert Berry III, and Ann Marie Ursini.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The murder count in the indictment carries a mandatory minimum sentence of life in federal prison and a maximum potential sentence of the death penalty. One of the firearm counts is also punishable by a maximum potential sentence of the death penalty, while the other firearm count is punishable by a mandatory minimum of ten years and a maximum of life. The assault counts are each punishable by a maximum of twenty years. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Felon sentenced to prison for possessing firearmRead the Press Release
GREAT FALLS — A Billings man who had absconded from probation and was arrested on the Blackfeet Indian Reservation was sentenced today to two years in prison to be followed by two years of supervised release for illegally possessing a firearm, Acting U.S. Attorney Leif M. Johnson said.
Aaron Leo Ludwig, 30, pleaded guilty in June to felon in possession of a firearm.
Chief U.S. District Judge Brian M. Morris presided.
The government alleged in court documents that on Dec. 22, 2020, law enforcement in Browning, on the Blackfeet Indian Reservation, were looking for Ludwig, who was wanted on a probation hold, and located him at a residence. A female at the residence asked officers if she could get a jacket for Ludwig because of the cold weather, and Ludwig had asked her for a particular jacket. When the female picked up the jacket, she paused and then pulled a gun out of a pocket in the presence of officers. Ludwig looked up at the ceiling. Ludwig initially declined to say how he got the firearm, identified as a 9mm pistol that had been reported stolen in Billings in May 2020. Ludwig later stated the gun was his and that it was “hot.” Ludwig had previous felony convictions, including for a drug offense and for partner or family member assault, and was prohibited from possessing firearms.
Assistant U.S. Attorney Ethan R. Plaut prosecuted the case, which was investigated by the FBI, Glacier County Sheriff’s Office and Billings Police Department.
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Federal Jury Convicts Couple for Transporting Illegal Aliens and Money LaunderingRead the Press Release
BIRMINGHAM, Ala. – A federal jury convicted a husband and wife yesterday for transporting illegal aliens to provide labor for a local chicken plant, announced U.S. Attorney Prim F. Escalona and U.S. Immigration and Customs Enforcement Homeland Security Investigations Special Agent in Charge Katrina W. Berger.
The jury returned its guilty verdict against Deivin Marquitos Escalante-Vasquez, 31, and Crystal Gail Escalante, 38, both of Haleyville, after 5 days of testimony before Chief U.S. District Judge L. Scott Coogler. The couple was convicted of conspiracy to transport illegal aliens within the United States and money laundering.
“This conviction demonstrates how individuals willing to break the law can take advantage of immigration laws for personal gain,” U.S. Attorney Escalona said. “More importantly, no matter how sophisticated their efforts, we will continue to work closely with our law enforcement partners and agencies to see that the immigration laws are followed, and that those who violate them are caught and convicted.”
“Our nation’s employment laws are designed to protect the legal force and prevent business from profiting under an unequitable financial advantages,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI is committed to protecting our citizens and employees from those who seek to gain an illegal advantage and make illicit profits by putting others at risk.”
The evidence at trial showed that the defendants subcontracted over approximately a three-year period with Mar-Jac Poultry, a poultry processing plant in Jasper, to provide labor to work the lines at the plant. The defendants filled multiple shifts with undocumented workers, many of whom were from Guatemala, who were working under false identifications. Evidence also showed that the defendants knew the identities were false and changed names and identities when necessary to ensure the false identities would get through the E-Verify system. The evidence also showed that, when the identities could not get through the E-Verify confirmation system, the defendants kept the workers on their payroll. The defendants owned several passenger vans and used them to provide their workers transportation to and from the plant, which the jury found furthered the illegal workers’ presence in the United States. Over a three-year period, the defendants were paid over 16 million dollars, and used some of their profits to purchase properties in the Haleyville area, and several high-end vehicles. The properties, vehicles, and the defendants’ bank accounts will be the subject of a future asset forfeiture proceeding.
The maximum penalty for conspiracy to transport illegal aliens in furtherance of their presence in the United States is 10 years in prison. The maximum penalty for money laundering is 20 years in prison.
The U.S. Immigration and Customs Enforcement Homeland Security Investigations investigated the case. Assistant U.S. Attorneys Russell Penfield, John Hundscheid and Tom Borton are prosecuting the case.