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Newest first across public DOJ and U.S. Attorney press releases.
Monday 30 August 2021
Commercial Flooring Company Pleads Guilty to Antitrust and Money Laundering ChargesRead the Press Release
Mr. David’s Flooring International LLC (Mr. David’s), a Chicago-based commercial flooring contractor, pleaded guilty after being charged for its role in a long-running conspiracy to rig bids and fix prices for commercial flooring products and services, and for its role in a money laundering conspiracy involving kickbacks.
Mr. David’s agreed to pay at least a $1.2 million criminal fine for its role in the conspiracies. Mr. David’s is the third corporation charged in the ongoing investigation; five individuals have also been charged to date.
“We remain committed to prosecuting those who choose to subvert the competitive process and eliminate competition,” said Acting Assistant Attorney General Richard A. Powers of the Justice Department’s Antitrust Division. “Today’s guilty plea — the eighth charge to date in the ongoing investigation — demonstrates our commitment to protect consumers and ensure they benefit from a competitive marketplace.”
“Price fixing has no place in a fair and open marketplace,” said Special Agent in Charge Emmerson Buie Jr. of the FBI’s Chicago Field Division. “This guilty plea is another example of our firm commitment to safeguarding American citizens and businesses.”
According to a two-count felony charge filed in the U.S. District Court in Chicago, Illinois, Mr. David’s conspired with other companies to rig bids for commercial flooring by agreeing which company would win the bid, and which would submit a complementary, intentionally-losing bid. Mr. David’s participated in the conspiracy from at least as early as 2009 until at least June 22, 2017.
The second count charges Mr. David’s with conspiring to launder money to conceal kickback payments the company made to Carter Brett, an account executive for a large flooring manufacturer, in exchange for unauthorized discounts. According to the charge, Mr. David’s issued checks to a shell corporation established by Brett for the sole purpose of receiving the illegal kickback payments, and Mr. David’s and its co-conspirators carried out the conspiracy from at least as early as 2013 until as late as June 13, 2018.
A violation of the Sherman Act carries a statutory maximum penalty of a $100 million criminal fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine. Conspiring to commit money laundering carries a statutory maximum penalty of $500,000. The maximum fine may be increased to twice the value of the property involved in the money laundering transactions, if that amount is greater than the statutory maximum fine.
The charges are the result of an ongoing federal antitrust investigation into bid rigging, price fixing and other anticompetitive conduct in the commercial flooring industry conducted by the Antitrust Division’s Chicago Office and the FBI’s Chicago Field Division.
Anyone with information in connection with this investigation should contact the Antitrust Division’s Complaint Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.
Cincinnati man pleads guilty to creating fake ID documents claiming he was federal employee & agentRead the Press Release
CINCINNATI – A Cincinnati man pleaded guilty in federal court this morning to making fake IDs claiming he was a Special Agent with Homeland Security and an employee of the Defense Logistics Agency, which is the Department of Defense’s combat logistics support agency.
David Lomache, 61, was indicted by a grand jury and arrested by federal agents on April 16, 2021.
According to the court documents, Lomache fraudulently obtained a United States Federal Contractor badge in order to impersonate a civilian contractor technician for the Defense Logistics Agency.
In January of 2021, Lomache produced fake identification documents for both the Defense Logistics Agency and for Homeland Security Investigations (“HSI”). He listed his titles on the fraudulent documents as “Civilian Contractor Technician” and “Homeland Security Special Agent.”
Fraud in connection with identification documents is a federal crime punishable by up to 15 years in prison.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Vance Callender, Special Agent in Charge, Homeland Security Investigations; and Hamilton County Sheriff Charmaine McGuffey announced the plea entered into today before U.S. District Judge Matthew McFarland. Assistant United States Attorney Megan Gaffney Painter is representing the United States in this case.
Anyone who believes they may be a victim of fraud in relation to this investigation is asked to call 866-347-2423 (TTY for hearing impaired: 802-872-6196) or visit the website at https://www.ice.gov/webform/ice-tip-form.
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Chicago Man Charged in Federal Court with Making False Statements While Acquiring FirearmsRead the Press Release
CHICAGO — A Chicago man has been charged in federal court with making materially false statements in the acquisition of more than 20 firearms.
In 2019 and 2020 STOVALL BUCHANAN acquired 23 handguns and a rifle from suburban Chicago firearms dealers, falsely certifying on federal forms that he resided at a certain address in Chicago and, in connection with some of the purchases, that he was the actual buyer of the guns, according to a criminal complaint unsealed today in U.S. District Court in Chicago. In reality, Buchanan resided at a different Chicago address at the time of the purchases, and within months of the sales all but one of the 23 guns were no longer in his possession, the complaint states. Four of the firearms were later discovered in the possession of other individuals, including one felon who was prohibited by federal law from possessing a gun, the complaint states.
Buchanan, 23, of Chicago, is charged with making a false statement in connection with the acquisition of a firearm. The charge is punishable by a maximum sentence of ten years in federal prison. Buchanan made an initial court appearance today before U.S. Magistrate Judge Maria Valdez in Chicago.
The complaint was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. The Chicago Police Department provided valuable assistance. The government is represented by Assistant U.S. Attorney Shy Jackson.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Ceramic Art Concealed 3.4 Kilograms of MethamphetamineRead the Press Release
PECOS – A federal jury convicted a Dallas man last Thursday for possessing methamphetamine.
According to court documents and evidence presented at trial, Oscar Santiago Garcia Sanchez, 32, drove a vehicle with a trailer filled with ceramic art pieces into the Presidio Port of Entry. During inspection, Customs and Border Protection officers discovered a crystal substance inside the art pieces. The substance turned out to be 3.4 kilograms of methamphetamine.
Sanchez faces up to life in prison. His sentencing date has been set for November 23, 2021. Sanchez has remained in federal custody since his arrest on February 2, 2021.
U.S. Attorney Ashley C. Hoff of the Western District of Texas; Department of Homeland Security Investigations (HSI) Special Agent in Charge Erik P. Breitzke, El Paso Division; Customs and Border Protection (CBP), Director of Field Operations Hector A. Mancha, Jr.; CBP Presidio Port Director Jesus Chavez; and Drug Enforcement Administration (DEA) Special Agent in Charge Kyle Williamson, El Paso Division, made the announcement.
The HSI, CBP, and DEA are investigating the case.
Assistant U.S. Attorney Andrew Weber is prosecuting the case.
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Boston Man Pleads Guilty to Drug ConspiracyRead the Press Release
BOSTON – A Boston man pleaded guilty on Friday, Aug. 27, 2021 to his role in a drug trafficking conspiracy.
Carlos Monteiro, 44, pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute controlled substances. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for Jan. 10, 2022. Monteiro was indicted in September 2020.
Monteiro was charged as part of an investigation into a drug trafficking organization distributing large quantities of fentanyl, cocaine and other controlled substances in the greater Boston area. In 2017, Monteiro participated in the drug trafficking conspiracy including distributing fentanyl on behalf of a co-conspirator.
The charge of conspiracy to distribute and possess with intent to distribute a controlled substance provides for a sentence of up to 20 years in prison, at least three years and up to life of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Acting Commissioner Gregory Long made the announcement today. Assistant U.S. Attorneys Sarah Hoefle and John Mulcahy of Mendell’s Criminal Division 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.
Bolton Man Pleads Guilty to Fraud and Tax OffensesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Ramsey E. Covington, Acting Special Agent in Charge of IRS Criminal Investigation in New England, announced that MARK PAGANI, 60, of Bolton, waived his right to be indicted and pleaded guilty today in New Haven federal court to fraud and tax evasion offenses.
According to court documents and statements made in court, from 2013 to at least August 2015, Pagani conspired with another person (“K.S.”), who is now deceased, to defraud a victim investor of more than $1 million. K.S. arranged investment deals with the victim, including the purported acquisition of mortgages on properties. Pagani drafted documents to memorialize certain investment deals, accepted funds from the victim and held the funds in accounts he controlled, and he transferred funds to entities controlled by K.S. and others. By the time the victim investor made a third investment, which was to acquire mortgages on properties in Springfield, Massachusetts, and Middletown, Connecticut, Pagani knew that the first two investments had not occurred, and that the third investment was not legitimate. In association with the third investment, the victim wired more than $1.3 million to an account Pagani controlled. These funds were comingled with other funds, which Pagani sent a portion of to an entity for the benefit of K.S. In order to conceal the fraud and to create the appearance that it was a legitimate investment, Pagani wired false interest payments to the victim.
In addition, for the 2014 through 2017 tax years, Pagani paid for personal and other expenses using his law firm account and underreported his income on his federal tax returns, resulting in a tax loss of $181,702. Pagani was previously a practicing attorney with a law office in Wethersfield.
Pagani pleaded guilty to one count of conspiracy to commit wire fraud, and one count of tax evasion. Each offense carries a maximum term of imprisonment of five years. Pagani is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on December 15, 2021, in Hartford.
Pagani has agreed to pay restitution of $1,055,092.50 to the victim investor, and $181,702 in tax to the IRS.
This is Pagani’s third federal conviction.
This matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. This case is being prosecuted by Assistant U.S. Attorneys Michael S. McGarry and Jennifer R. Laraia.
Belmond Man Sentenced to a Decade in Federal Prison for Meth TraffickingRead the Press Release
A man who received methamphetamine by mail from Mexico to redistribute was sentenced August 27, 2021 to ten years in federal prison.
Rafael Perez-Mercado, 29, from Belmond, Iowa, pled guilty in federal court on April 16, 2021, to conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine. During the investigation, it was also determined that Perez-Mercado was in the United States illegally.
Evidence at the plea and sentencing hearings showed that between September 2020 and October 22, 2020, Perez-Mercado and others were responsible for the distribution of over ten pounds of methamphetamine in the Wright County, Iowa, area. On October 8, 2020, law enforcement intercepted a package mailed from Mexico. The package had two pounds of methamphetamine concealed inside, destined to be delivered to Perez-Mercado. On October 22, 2020, law enforcement, using a confidential informant, made a controlled delivery of the package to Perez-Mercado at his home. Thereafter, one law enforcement agent captured Perez-Mercado exiting the rear door of his house as another agent attempted to make contact with him at the front door. Law enforcement agents seized nine packages of methamphetamine, each weighing one pound, from a bag Perez-Mercado was carrying as he exited the residence. Later that same day, during the execution of a search warrant at Perez-Mercado’s residence, law enforcement seized two more one-pound packages of methamphetamine that had been hidden inside a statue which was inside the package delivered to Perez-Mercado. Law enforcement also found other evidence of methamphetamine smuggling, including inside motor vehicle components, in Perez-Mercado’s garage.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Perez-Mercado remains in custody of the United States Marshal until he can be transported to a federal prison. Perez-Mercado was sentenced to 120 months’ imprisonment and must serve a five-year term of supervised release following the imprisonment.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Division of Narcotics Enforcement, the Wright County Sheriff’s Office, the Iowa Division of Criminal Investigation, Homeland Security Investigations, Immigration and Customs Enforcement, the Eagle Grove Police Department, and the Dows Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-3047. Follow us on Twitter @USAO_NDIA.
Attorney General Garland Issues Statement on 2020 FBI Hate Crimes in the United States StatisticsRead the Press Release
Attorney General Merrick B. Garland issued the following statement on the FBI’s announcement of the 2020 Hate Crimes Statistics:
“Preventing and responding to hate crimes and hate incidents is one of the Justice Department’s highest priorities. The FBI Hate Crime Statistics for 2020 demonstrates the urgent need for a comprehensive response.
“Last year saw a 6.1% increase in hate crime reports, and in particular, hate crimes motivated by race, ethnicity and ancestry, and by gender identity. These numbers confirm what we have already seen and heard from communities, advocates and law enforcement agencies around the country. And these numbers do not account for the many hate crimes that go unreported.
“These statistics show a rise in hate crimes committed against Black and African-Americans, already the group most often victimized. Notably, they show a rise in hate crimes committed against members of the Asian-American Pacific Islander community. This also confirms what we have seen and heard through our work and from our partners.
“These hate crimes and other bias-related incidents instill fear across entire communities and undermine the principles upon which our democracy stands. All people in this country should be able to live without fear of being attacked or harassed because of where they are from, what they look like, whom they love or how they worship.
“Our commitment to investigating and prosecuting hate crimes is deeply rooted in the department’s founding. At my direction, the department has rededicated itself to combating unlawful acts of hate, including by improving incident reporting, increasing law enforcement training and coordination at all levels of government, prioritizing community outreach and making better use of civil enforcement mechanisms. All of these steps share common objectives: deterring hate crimes and bias-related incidents, addressing them when they occur, supporting those victimized by them and reducing the pernicious effects these incidents have on our society.”
More information about the department’s response to hate crimes is available at https://www.justice.gov/hatecrimes. For more information on the department’s actions to combat hate crimes, click here.
Anchorage Drug Dealer Sentenced to 15 Years in Federal PrisonRead the Press Release
ANCHORAGE – An Anchorage man was sentenced by Chief U.S. District Judge Timothy M. Burgess to 15 years in federal prison followed by 10 years of supervised released for selling more than 500 grams or approximately 5,000 doses of methamphetamine.
According to court documents, Dorian Topps, 28, pleaded guilty in October 2020 to five counts of trafficking a controlled substance. Topps was involved in selling large amounts of methamphetamine to an undercover agent on five separate occasions, between October 2019 and January 2020. On three of the occasions, Topps personally completed the sale with the agent and on two other occasions, he provided other individuals with the methamphetamine to sell to the undercover agent.
In 2016 Topps was convicted and sentenced to four years in federal prison on a drug trafficking charge. He was still on federal supervised release for that conviction when he sold the methamphetamine to the undercover agent.
Topps’ accomplices, Isaiah Cross, 28, and Kevin Glover, 38, each pleaded guilty to one count of trafficking a controlled substance. In separate hearings Cross was sentenced to 10 years in federal prison followed by five years of supervised release and Glover was sentenced to six years and six months in federal prison followed by four years of supervised release.
“The trail of destruction caused by the distribution of methamphetamine and other illicit drugs is devastating in our communities,” said Acting U.S. Attorney Bryan Wilson, District of Alaska. “These sentences demonstrate that the Department of Justice will use every weapon in its arsenal to stop methamphetamine from reaching our neighborhoods and harming our citizens.”
The Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Alaska State Troopers and the Anchorage Police Department investigated the case.
Assistant U.S. Attorney Allison O’ Leary prosecuted the case.
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Saturday 28 August 2021
Colorado Nurses Held Accountable for Taking Controlled Substances from PatientsRead the Press Release
DENVER – In two separate cases, the U.S. Attorney’s Office for the District of Colorado held nurses accountable after they stole controlled substances from their patients.
- Katie Muhs, age 34, of Littleton, CO, was sentenced for her felony conviction for illegally obtaining fentanyl through fraud and deception while on the job as a Registered Nurse in a hospital’s Intensive Care Unit.
- Alicia Nickel-Tangeman, age 44, formerly of Woodland Park, Colorado, entered guilty pleas to four counts of obtaining controlled substances using fraud and deception while she was on the job as a Registered Nurse at a hospital in Colorado.
Ms. Muhs was employed as a registered nurse in the Intensive Care Unit at a hospital in Colorado in 2019 when she used her position to divert fentanyl, a schedule II controlled substance, for her own personal use. The defendant admitted that between June 2019 and September 2019, she stole fentanyl by removing it from the IV bags of ventilated patients using a sterile syringe. She also admitted to stealing fentanyl remaining in vials of the drug after patient administration. The defendant stated she would remove the excess drug from the vials and replace the stolen drug with saline, then have a fellow nurse witness her “waste,” or dispose of, the saline. In pleading guilty to the single-count Information in the case, charging a violation of 21 U.S.C. § 843(a)(3), the defendant specifically admitted that on September 8, 2019, she removed a bag of fentanyl from the automated medication control machine at the hospital under a different nurse’s login credentials. She then removed fentanyl from the IV bag for personal use.
Ms. Nickel-Tangeman used her position as Registered Nurse to access the rooms of patients she was not assigned to care for in a separate unit of a Colorado hospital. The defendant falsely and fraudulently told patients that she was conducting a “study” on the effectiveness of Patient-Controlled Analgesia (PCA) pumps, which deliver controlled substances to hospital patients to relieve pain on-demand when the patient pushes a button. The defendant then used a key to open the machine that secured the syringe of hydromorphone that was to be dispensed to the patient. The defendant removed a portion of the drug from the syringe, which she kept, then returned the syringe to the patient’s PCA. The defendant illegally obtained controlled substances in this way from three patients on four occasions. When confronted by law enforcement regarding her actions, the defendant lied about the diversions and persisted in her false story that she was engaged in a study with a well-known university. The defendant engaged in obstructionist conduct by producing to law enforcement a false e-mail that she stated came from a friend who asked her to participate in the research. The defendant created the false e-mail herself using a fictitious e-mail account she created in the name of this alleged friend.
“We cannot allow health care professionals to feed their own addictions by diverting critical pain medications from patients,” said Acting United States Attorney Matt Kirsch. “Thanks to the hard work of our office, the FDA Office of Criminal Investigations, and the DEA, the theft of medications from suffering patients in these cases has been stopped.”
“The FDA oversees the U.S. drug supply to ensure that it is safe and effective, and those health care professionals who fraudulently obtain needed medicines from patients put those patients’ health at risk,” said Special Agent in Charge Charles L. Grinstead, FDA Office of Criminal Investigations Kansas City Field Office. “Today’s announcement should serve as a reminder that such conduct will not be tolerated.”
“The DEA applauds the efforts of our Diversion Investigators that investigated this alongside the FDA and USAO,” said DEA Denver Field Division Special Agent in Charge Deanne Reuter. “We want it to be known that healthcare professionals who take advantage of patients in need by stealing their medications will be held accountable to the law.”
On August 27, 2021, U.S. District Judge Raymond Moore sentenced Ms. Muhs to three years of probation. The government agreed to recommend a probationary sentence in consideration of the defendant’s confession and her cooperation in disclosing full information on her diversion, which is a matter potentially affecting the public health and the integrity of the health care system. The felony offense is punishable by up to four years of imprisonment and a fine of $250,000, per count. The case number is 20-cr-00388-RM.
On August 26, 2021, Ms. Nickel-Tangemen pleaded guilty before U.S. District Court Judge Christine M. Arguello. Ms. Nickel-Tangemen will be sentenced on November 30, 2021. The case number is 21-cr-00214-CMA.
The investigations in these cases were conducted by the Food and Drug Administration, Office of Criminal Investigations, and the Drug Enforcement Agency.
Assistant United States Attorney Anna Edgar is prosecuting both of these matters.
CASE NUMBERS: 21-cr-00214-CMA, 20-cr-00388-RM
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Friday 27 August 2021
William T. Mantanona Sentenced to 6 months Imprisonment for False Statement to a Federal AgentRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands announced that defendant William Topasna Mantanona, age 65, from Chalan Pago, Guam was sentenced in the United States District Court of the Guam to six months imprisonment for False Statement in violation of 18 U.S.C. §§ 1001(a)(2) and 2. The Court also ordered two years of supervised release following imprisonment, a mandatory $5,000 fine, and $100 special assessment fee.
During November 2018, the matter of United States v. Raymond John Martinez and Juanita Marie Quitugua Moser, Criminal Case No. 15-00031, went to trial before the United States District Court for the District of Guam. William T. Mantanona contacted a juror in an effort to affect the outcome of the trial. Federal agents recorded conversations of this activity between Mantanona and a third party. A mistrial was later declared after jurors were unable to reach an agreement on a verdict. Agents then questioned Mantanona, who provided a false statement concerning the juror interference. Mantanona stated that he never discussed a not guilty vote with a specific juror in the ongoing trial knowing full well that this statement was false. The United States Attorney’s Office referred the case involving Martinez and Moser to the Central District of California for prosecution, which resulted in convictions.
United States Attorney Anderson stated, “The United States Constitution provides for a speedy and public trial by an impartial jury. Although this Sixth Amendment right protects criminal defendants, the public also has an interest in fair and impartial court proceedings. Mantanona’s conduct was an affront to this basic concept of the rule of law. Such conduct taints our well-placed faith in trial by jury. This matter was therefore worthy of aggressive prosecution. Our office applauds the great work by the FBI and HSI, as well as the Court’s strong message of accountability.”
FBI Honolulu Division Special Agent in Charge Steven Merrill stated that, "Today's sentencing of William Mantanona sends a message that any attempt to corrupt the system of justice, will be met with severe consequences. Mantanona's participation in a scheme to influence a juror threatened the integrity of court proceedings which are the foundation of our justice system. The FBI takes its mission of protecting the American public seriously. We are dedicated to conducting thorough investigations and are committed to ensuring the subjects of our investigations get a fair trial before a truly impartial jury."
This case was investigated by the Federal Bureau of Investigation and Homeland Security Investigations. The case was prosecuted by Rosetta San Nicolas, Assistant United States Attorney in the District of Guam.
Wilkes-Barre Man Convicted of Drug TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Tysheen Gott, a/k/a “LB”, age 45, of Wilkes-Barre, Pennsylvania, was found guilty of conspiracy to distribute and possession with intent to distribute fentanyl, heroin, cocaine, crack, and tramadol, after a seven-day trial before United States District Court Judge Malachy E. Mannion.
According to Acting United States Attorney Bruce D. Brandler, the jury found Gott guilty for having conspired to distribute more than one kilogram of heroin and more than 400 grams of fentanyl during the conspiracy. The jury also found Gott guilty on eight additional counts of unlawfully distributing fentanyl and/or crack between the time period beginning April 10, 2019 through March 5, 2020.
The Government presented testimony from five of Gott’s co-conspirators, as well as testimony from ten of Gott’s former drug customers, which spanned the conspiracy beginning in 2013 until the time of Gott’s arrest in June 2020. Federal law enforcement agents from the Federal Bureau of Investigation and police officers from the Wilkes-Barre and Scranton Police Departments also testified.
Gott was one of eleven defendants indicted in May 2020. All other co-conspirators have pleaded guilty and are awaiting sentencing.
This case was the result of a year-long investigation, in part driven by multiple federal wiretaps conducted by the Federal Bureau of Investigation, the Wilkes-Barre Police Department, the Scranton Police Department, the Pittston City Police Department, the Plymouth Police Department, the Pennsylvania State Police, the Luzerne County District Attorney’s Office, the Wyoming County District Attorney’s Office and the Office of Pennsylvania Attorney General. Assistant U.S. Attorneys Michelle Olshefski and Robert O’Hara prosecuted the case.
This case was 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 was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
The maximum penalty under federal law for the offenses is life in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Wetzel County man admits to drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Christian Iversen, of New Martinsville, West Virginia, has admitted to a drug charge, Acting United States Attorney Randolph J. Bernard announced.
Iversen, 34, pleaded guilty today to one count of “Possession with Intent to Distribute Heroin.” Iversen admitted to having heroin in August 2019 in Marshall County.
Iversen faces up to 20 years of incarceration and fine of up to $1,000,000. 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 David J. Perri is prosecuting the case on behalf of the government. Marshall County Drug Task Force, a HIDTA-funded initiative, and the Marshall County Sheriff’s Office investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Waterbury Man Guilty of Cocaine Trafficking OffenseRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that a federal jury in Bridgeport has found LUIS CASTRO, 33, of Waterbury, guilty of possession with intent to distribute 500 grams or more of cocaine.
The trial before U.S. District Judge Stefan R. Underhill began on August 24 and the jury returned its verdict yesterday.
According to the evidence and testimony at trial, a DEA Task Force investigation identified Castro as being involved in cocaine trafficking activity. On September 10, 2018, a court-authorized search of Castro’s residence on Delaware Avenue in Waterbury revealed approximately 566 grams of cocaine, a large kilogram press, narcotics paraphernalia, and $8,292 in cash.
Judge Underhill scheduled sentencing for November 19, 2021, at which time Castro faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years. Castro is released on a $200,000 bond pending sentencing.
This is Castro’s second federal conviction. In March 2011, he was sentenced in the Southern District of New York to 18 months of imprisonment for distributing cocaine and crack cocaine, and illegally dealing firearms.
This matter has been investigated by the DEA Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force. The case is being prosecuted by Assistant U.S. Attorneys Rahul Kale and Tara Levens.
Walton County Man Faces Federal Indictment for Participation in Nationwide Child Exploitation EnterpriseRead the Press Release
PENSACOLA, FLORIDA – Michael J. McClure, 43, of DeFuniak Springs, has been indicted by a federal grand jury on criminal offenses related to his activity on Kik Messenger, a mobile device application, announced Jason R. Coody, Acting United States Attorney for the Northern District of Florida. McClure will make his appearance in federal court in Pensacola on August 31, 2021, at 2:00 pm before United States Magistrate Judge Hope T. Cannon.
The indictment alleges that McClure was part of an ongoing child exploitation enterprise to produce, distribute, receive, and possess child pornography. McClure is also charged with the production of child pornography as well as its distribution, receipt, and possession.
McClure faces a mandatory minimum 20 years up to a maximum of life imprisonment if convicted.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The case was investigated by the Federal Bureau of Investigation, the Escambia County Sheriff’s Office, the Walton County Sheriff’s Office, and the North Florida Internet Crimes Against Children Task Force. The case is being prosecuted by Assistant United States Attorneys David L. Goldberg and Jennifer H. Callahan.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Two South Florida Lawyers and Former Chief Operating Officer Sentenced for Roles in Massive 1 Global Capital Investment SchemeRead the Press Release
Miami, Florida – Two south Florida securities lawyers and the former Chief Operating Officer of 1 Global Capital LLC (“1 Global”) were sentenced for their roles in a sprawling fraud scheme that affected more than 3,600 investors in 42 states.
Andrew Dale Ledbetter, 79, of Fort Lauderdale, Florida, pled guilty to a single count information, charging him with one count of conspiracy to commit wire fraud and securities fraud, in violation of Title 18, United States Code, Section 371 (Case No. 20-CR-60103), and was sentenced today to 60 months in prison by U.S. District Judge Roy K. Altman. Ledbetter was also ordered to pay over $148,976,248 million in restitution to the victims of the scheme.
Steven Allen Schwartz, 76, of Delray Beach, Florida, pled guilty to a single count information, charging him with one count of conspiracy to commit wire fraud and securities fraud, in violation of Title 18, United States Code, Section 371 (Case No. 20-CR-60003), and on July 9, 2021, U.S. District Court Judge Roy K. Altman sentenced Schwartz to a term of imprisonment of 24 months. Schwartz was also ordered to pay over $36 million in restitution to the victims of the scheme.
Jan Douglas Atlas, 76, of Fort Lauderdale, Florida, pled guilty to a single count information, charging him with one count of conspiracy to commit wire fraud and securities fraud, in violation of Title 18, United States Code, Section 371 (Case No. 19-CR-60258), and on August 20, 2021, U.S. District Court Judge Roy K. Altman sentenced Atlas to a term of imprisonment of 8 months. Atlas was also ordered to pay over $29 million in restitution to the victims of the scheme.
According to court documents, 1 Global was a commercial lending business based in Hallandale Beach, Florida, that made the equivalent of “pay day” loans to small businesses at high interest rates, termed merchant cash advance loans (“MCAs”). Schwartz was a director and consultant at 1 Global, and also held out as a Chief Operating Officer in the company’s marketing materials. Ledbetter was an attorney licensed in the State of Florida who had an of counsel position at Law Firm #1 and acted in a fundraising capacity at 1 Global beginning in or around 2015. Atlas was a partner at Law Firm #1 and acted as outside counsel for 1 Global.
Substantial questions arose during the operation of the business as to whether 1 Global was offering or selling a security and whether the investment offering was required to be registered with the U.S. Securities and Exchange Commission. These questions were raised by investors, investment advisors, and regulators. Ledbetter and Atlas knew that if 1 Global’s investment offering were determined to be a security, it would undermine the ability of 1 Global to raise funds from retail investors and to continue to operate without substantial additional expenses and reporting requirements. Such a classification would undermine the profits and fees that Ledbetter and other principals at 1 Global would be able to obtain from 1 Global’s operations.
At the request of 1 Global’s principals, Atlas authored two opinion letters in 2016 containing false information that Atlas allegedly knew would be used by 1 Global to operate the business unlawfully. The opinion letters falsely described the duration of the investment, among other things, omitting the automatic renewal aspect and that the investment was being targeted toward retail, non-sophisticated investors (such as IRA account holders). Ledbetter used and relied on Atlas’s opinion letters to continue to raise money illegally, in numerous pitches and communications to investment advisors and investors.
According to court documents, Ledbetter was personally involved in raising more than $100 million in investor funds that went to 1 Global, through his own pitches as well as through investment advisors he attracted to 1 Global. Over the years, Ledbetter received approximately $3 million from 1 Global, the majority of which was for commissions. Atlas received approximately $627,000 from Ledbetter’s commissions. Neither attorney disclosed these commissions to Law Firm #1. Ledbetter routinely held himself out to investors and investment advisers as outside counsel to 1 Global, and also personally vouched for 1 Global in pitches and marketing materials, without disclosing his extravagant commissions.
In addition, in order to attract investments, Individual #1 (the de facto owner of 1 Global), Schwartz, Ledbetter, and others, made false and misleading representations to investors and potential investors as to the profitability of 1 Global’s business in marketing materials and periodic account statements.
Alan G. Heide, the former 1 Global Chief Financial Officer, was previously charged via information and sentenced to 60 months (Case No. 19-CR-60231). Information about the related cases can be found here: https://www.justice.gov/usao-sdfl/1Global-Capital.
Juan Antonio Gonzalez, Acting United States Attorney, Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (“FBI”) Miami Field Office, Matthew D. Line, Special Acting Agent in Charge, Internal Revenue Service, Criminal Investigation (“IRS-CI”), and Kyle A. Myles, Special Agent in Charge, Federal Deposit Insurance Corporation (“FDIC”) Office of Inspector General, made the announcement.
FBI Miami, IRS-CI, Miami Field Office, and FDIC-OIG investigated the case. This case is being prosecuted by Assistant U.S. Attorney Elizabeth Young. Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture related to the matter.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 20-cr-60103.
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Traffic Stops Lead to Three Years in Federal Prison for Cedar Rapids Man Who Possessed Numerous Types of DrugsRead the Press Release
A Cedar Rapids man who possessed methamphetamine, cocaine, crack cocaine, heroin, and fentanyl was sentenced on August 25, 2021, to three years in federal prison.
Troy Allen Walton, age 45, from Cedar Rapids, Iowa, received the prison term after a February 18, 2021 jury verdict finding him guilty of seven counts of possession of a controlled substance.
Evidence at trial showed that law enforcement recovered methamphetamine, cocaine, crack cocaine, heroin, and fentanyl from Walton during a December 6, 2019 traffic stop. Law enforcement also seized methamphetamine, cocaine, crack cocaine, and a heroin/fentanyl mixture from Walton during a March 9, 2020 traffic stop.
Walton was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Walton was sentenced to 36 months’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Walton is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Dillan Edwards and investigated by the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-00047.
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Three Sentenced for Violent Shooting in Aid of RacketeeringRead the Press Release
FORT WAYNE – United States District Court Judge Damon R. Leichty sentenced three individuals, members of “2500,” a Fort Wayne street gang who engaged in drug and firearms trafficking with “Grit Gang,” a street gang based in Bloomington, Indiana, for committing a violent crime in aid of racketeering announced Acting U.S. Attorney Tina L. Nommay.
William D. Beamon, aka “Lil’ Will,” 28, of Fort Wayne, Indiana, was sentenced to a total of 360 months (30 years) in prison, followed by 2 years of supervised release.
Kyombe D. Bolden, “aka Pudge,” 30, of Bloomington, Indiana, was sentenced to a total of 324 months (27 years) in prison, followed by 2 years of supervised release.
Ronnie D. Burrus, “aka Ronnie Robinson, Ronnie Burris and Yung Ron,” 28, of Fort Wayne and Bloomington, Indiana, was sentenced to a total of 360 months (30 years) in prison, followed by 2 years of supervised release.
In 2020, all three of these defendants entered pleas of guilty to two counts of attempted assault with a dangerous weapon in aid of racketeering; one count of assault with a dangerous weapon in aid of racketeering; and three counts of discharging a firearm during and in relation to a crime of violence. A fourth defendant, Demetri D. Beachem, has also pled guilty and is currently scheduled for sentencing on November 12, 2021.
“We will use all the tools we have as federal prosecutors to hold those involved in criminal activity accountable for their actions, including racketeering statutes. Our goal, along with our federal, state and local partners, is to protect our communities from violent activity perpetuated by groups of individuals, especially those involved in closely associated street gangs or other criminal organizations. We wish to thank our law enforcement partners for their investigative efforts to bring to justice those individuals involved in criminal acts of violence in our community,” said Acting United States Attorney Tina L. Nommay.
“This case was the first use of the federal racketeering statutes against street gangs in the Fort Wayne area and it will not be the last. Today’s sentences should send a strong message that criminal organizations such as the one the defendants were members of will not be tolerated in our communities, and the FBI and our law enforcement partners will continue our efforts to remove those who participate in this violent activity from our streets,” said FBI Indianapolis Special Agent in Charge Paul Keenan.
According to documents in this case, gang members of 2500 and Grit Gang were engaged in drug and firearms trafficking and were responsible for violent criminal gang activity. On October 4, 2014, the defendants received an insulting social media video from rival gang members, and they reacted by hunting down these rival gang members, locating them at a residence at the intersection of Caroline and Suttenfield Streets in Fort Wayne, Indiana. Upon seeing the rivals exit the house, the defendants began shooting, striking the house and a neighboring house with gunfire. These individuals fired approximately 50 shots, exposing people in both houses to significant danger. One victim suffered only a minor wound, but the dangerous actions of the defendants risked the lives of many innocent bystanders and children in both houses.
This multi-agency investigation was conducted by the Federal Bureau of Investigation’s Safe Streets Gang Task Force in Fort Wayne, which includes the Federal Bureau of Investigation, the Allen County Police Department, the Fort Wayne Police Department, and the Indiana State Police. Also assisting with this investigation were the Bloomington Police Department, the Indiana State Police Laboratory Division, and the Fort Wayne Police Department’s Detective Bureau and Gang and Violent Crimes Unit. This case was prosecuted by Assistant United States Attorneys Anthony W. Geller and Stacey R. Speith.
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Three Maryland Residents Facing Federal Indictment for Attempting to Illegally Export Arms and Ammunition to NigeriaRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging three Maryland men for the federal charges of conspiracy, violation of the Arms Export Control Act and the Export Reform Control Act, related to the export of firearms and ammunition from the United States to Nigeria. Charged in the indictment, which was returned late yesterday, are:
Wilson Nuyila Tita, age 45, of Owings Mills, Maryland;
Eric Fru Nji, age 40, of Fort Washington, Maryland; and
Wilson Che Fonguh, age 39, of Bowie, Maryland.The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; and Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division.
According to the four-count indictment, from at least November 2017 through July 19, 2019, the defendants conspired with each other and with others to export from the United States to Nigeria defense articles and items identified on the United States Munitions List (“USML”) and the Commerce Control List (“CCL”) without first obtaining export licenses. The defendants also allegedly conspired to conceal from the United States that those items were being shipped from the Port of Baltimore in Maryland to Nigeria and at least one other location in Africa. The defendants and their co-conspirators allegedly contributed funds for the purchase of firearms, ammunition, reloading materials and other equipment for shipping overseas. The indictment alleges that the defendants and their co-conspirators communicated about their efforts and plans to ship weapons and ammunitions using an on-line encrypted messaging application and code words in order to conceal their activities.
As detailed in the indictment, the defendants and other conspirators concealed the firearms, ammunition, rifle scopes, and other items in heavily wrapped packages and duffle bags, and inside sealed compressor units, placing those items into a shipping container destined for Nigeria without obtaining the requisite licenses from the U.S. Department of State and the U.S. Department of Commerce. Further, as part of the conspiracy, one of the co-conspirators allegedly caused the submission of electronic export information to the U.S. government for the container which listed materially false information as to the identity of the exporter and the intermediate and ultimate consignee, as well as the ultimate destination of the container’s contents.
Specifically, the indictment alleges that on January 17, 2019, the defendants and their co-conspirators exported, attempted to export, or caused to be exported to Nigeria articles on the USML the export of which was controlled under the Arms Export Control Act, without first having obtained the required license or written approval from the U.S. Department of State, specifically: 38 firearms; over 35,000 rounds of ammunition; and 44 magazines. On that same day, the defendants allegedly exported to Nigeria one Bushnell Trophy Rifle Optic and one Burris AR Rifle Scope, the export of which were controlled under the Commerce Control List, without first having obtained the required license or written approval from the U.S. Department of Commerce. Finally, the indictment alleges that the defendants transported 28 firearms with obliterated serial numbers.
If convicted, the defendants each face a mandatory sentence of five years in federal prison for the conspiracy; a maximum of 20 years in federal prison each for violating the Arms Export Control Act and for violating the Export Control Reform Act; and a maximum of five years in federal prison for transportation of a firearm with an obliterated serial number. 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. The defendants are each expected to have an initial appearance this afternoon in U.S. District Court in Baltimore, before U.S. Magistrate Judge Thomas M. DiGirolamo beginning at 3:00 p.m.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Seven defendants have been charged in related cases and of those six have pleaded guilty and are awaiting sentencing.
Acting United States Attorney Jonathan F. Lenzner commended HSI and the ATF for their work in the investigation. Mr. Lenzner recognized the U.S. Department of Commerce, Office of Export Enforcement; U.S. Department of State Diplomatic Security Service; Department of Defense Office of Inspector General, Defense Criminal Investigative Service; the Naval Criminal Investigative Service; and the U.S. Postal Inspection Service for their contributions to the investigation. Acting U.S. Attorney Lenzner thanked Assistant U.S. Attorney Kathleen O. Gavin, who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/community-outreach.
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Sunland Park man sentenced to 15 years in prison for hostage taking and harboring aliensRead the Press Release
ALBUQUERQUE, N.M. – Adrian Acevedo, 37, of Sunland Park, New Mexico, was sentenced on Aug. 24 to 15 years in federal prison. Acevedo pleaded guilty on Feb. 11, 2020, to conspiracy to take a hostage and conspiracy to harbor illegal aliens.
According to court records, on Oct. 4, 2019, Acevedo and his co-conspirators detained two sisters, both Cuban nationals, at Acevedo’s home in Sunland Park. Acevedo and the co-conspirators contacted the sisters’ brother and demanded money for their release. Later that day, co-conspirator Willie Espinoza took the sisters to another house where they were held by Espinoza, Judith Clouser and David Diaz. The conspirators continued to demand money from the brother until they received $1,500 on Oct. 5. The sisters were left in the house until they were rescued by Sunland Park Police.
On Nov. 15, 2019, Acevedo transported an undocumented alien to his home. Acevedo continued to harbor the alien in his home until the alien was transported to another residence on Nov. 17. Federal agents arrested Acevedo on Nov. 19. In his plea agreement, Acevedo admitted that he harbored the alien “for commercial advantage and personal financial gain,” and that he knew what he was doing was illegal.
Upon his release from prison, Acevedo will be subject to three years of supervised release.
On Feb. 6, 2020, Espinoza pleaded guilty to conspiracy to take a hostage, and on Oct. 27, 2020, was sentenced to nine years in prison. On March 11, 2020, Diaz pleaded guilty to conspiracy to take a hostage, and on Oct. 28 was sentenced to 11 years and three months in prison. On Jan. 7, Diaz’s sentence was amended to five years and three months. On Jan. 17, 2020, Clouser pleaded guilty to conspiracy to take a hostage.
Homeland Security Investigation investigated this case with assistance from U.S. Border Patrol, the Hatch Police Department and the Sunland Park Police Department. Assistant U.S. Attorney Luis A. Martinez prosecuted the case.
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St. Francis Woman Sentenced for Involuntary ManslaughterRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a St. Francis, South Dakota, woman convicted of Involuntary Manslaughter was sentenced on August 23, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Diana Swift, age 32, was sentenced to 34 months in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Swift was indicted by a federal grand jury on November 10, 2020. She pled guilty on June 1, 2021.
The conviction stemmed from an incident that occurred on September 14, 2020, in Todd County, South Dakota. On that date, Swift had been consuming alcohol, and was driving a car westbound on US Highway 18 west of Mission, South Dakota. Swift was traveling at a high rate of speed when she drifted on the eastbound shoulder, overcorrected and then veered into oncoming traffic, striking an eastbound vehicle driven by the victim, an adult female. The victim died as a result of injuries suffered in the wreck.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Swift was immediately turned over to the custody of the U.S. Marshals Service.
Second Man Charged in Deaths of Smuggled Chinese MigrantsRead the Press Release
SAN DIEGO – Saad Ali Awan, a U.S. citizen living in El Centro, appeared in federal court today to face charges that he was part of a conspiracy to illegally transport three Chinese nationals into the U.S. from Mexico who were later found dead in the trunk of a smuggler’s BMW.
According to a federal complaint unsealed today, Awan placed help-wanted ads on Craigslist to recruit human smugglers. Neil Edwin Valera responded to one of those ads and as a result became the smuggler of the Chinese nationals who perished due to heat and asphyxiation in the trunk.
Valera was the first to be charged in this case; Awan is the second. Valera pleaded guilty and was sentenced to five years in prison in connection with the deaths. Awan was arrested yesterday at his home in El Centro. He was charged with Conspiracy to Encourage Aliens to Enter Resulting in Death and Bringing in Aliens without Presentation for Financial Gain.
According to the complaint charging Awan, agents and officers investigating the deaths of the Chinese nationals tracked cell phone and email activity to Awan and found that he was associated with at least 14 smuggling incidents that occurred in the Southern District of California from July 4, 2019 to July 11, 2020.
According to court documents, San Diego police received an emergency 911 call on August 11, 2019 from a person reporting a foul odor and blood dripping from a suspicious vehicle with Texas license plates parked near the 2100 block of Jaime Avenue in San Diego.
San Diego police officers discovered a 1999 silver BMW with a Texas license plate. The officers lifted the trunk and found what initially appeared to be two deceased Asian females. Homicide detectives found an additional victim, an Asian male, pressed up against the rear wall of the trunk. A witness said the car was first noticed two days earlier and no one was seen coming or going.
Video recordings show the same car crossing into the United States from Mexico on August 9, 2019, at the San Ysidro port of entry at 3:14 p.m. Valera was the registered owner of the vehicle. Valera was arrested soon after. According to the complaint charging Awan, Valera told federal agents during his post-arrest interview that he became a human smuggler after responding to a Craigslist ad.
That ad was later traced back to Awan. Valera ultimately agreed to smuggle an unknown number of Chinese women into the U.S. in the trunk of his BMW for $6,000. Valera’s cell phone records indicated he had hundreds of contacts that were traced back to Awan and another conspirator.
“Human smugglers do not act alone, and we will continue to prosecute offenders who participate at all levels of the criminal organizations responsible for these dangerous crimes,” said Acting U.S. Attorney Randy Grossman. “We are determined to prevent more tragic and senseless deaths.” Grossman commended AUSA Michael Wheat and the agents who diligently investigated this case.
“This is a tragic event that could have been avoided if people were more aware of the dangers of being smuggled into the U.S. by criminal organizations that value profit over human life,” said Homeland Security Investigations (HSI) San Diego Acting Special Agent in Charge Chad Plantz. “HSI and its law enforcement partners will continue to arrest, prosecute and bring these unscrupulous smugglers and criminal organization to justice.
San Diego Sector Border Patrol's Chief Patrol Agent, Aaron Heitke affirms, "We are grateful for the tenacity, persistence, and hard work that our law enforcement partners have demonstrated over the past several months. Their collaborative efforts with the United States Attorney's office have resulted in the arrest of Saad Ali Awan, who is alleged to be a prolific smuggler within our area of responsibility."
“We appreciate the opportunity to work jointly with our investigative partners to help bring individuals to justice, identifying and arresting those involved in this tragic case,” said Pete Flores, Director of Field Operations for U.S. Customs and Border Protection in San Diego.
Awan will next appear in federal court on August 31, 2021 for a detention hearing before U.S. Magistrate Judge Montenegro in El Centro.
DEFENDANT Case Number: 21MJ3202-LL
Saad Ali Awan Age: 23 El Centro, California
SUMMARY OF CHARGES
Conspiracy to Encourage Aliens to Enter Resulting in Death – Title 8, U.S.C., Section 1324(a)(1)(A)(iv)(v)(I)(II) and (B)(iv)
Maximum penalty: Death or life in prison and $250,000 fine
Bringing in Aliens without Presentation for Financial Gain – Title 8, U.S.C., Section 1324(a)(2)(B)(ii)
Maximum penalty: Mandatory minimum three years, up to 15 years in prison
INVESTIGATING AGENCIES
San Diego Police Department
U.S. Customs and Border Protection, Office of Field Operations
U.S. Customs and Border Protection, U.S. Border Patrol
Homeland Security Investigations
Rosebud Man Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rosebud, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on August 23, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Lloyd Jacob One Star, a/k/a Lloyd One Star, III, age 31, was sentenced to 48 months in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
One Star was indicted by a federal grand jury on February 8, 2021. He pled guilty on June 3, 2021.
The conviction stemmed from an incident that occurred on December 14, 2021, in Todd County. On that date, One Star got into a verbal confrontation with his long-term girlfriend, the victim, at their residence. One Star became angry and punched the victim in the face, permanently injuring her left eye. One Star also kicked the victim and hit her with a chair. One Star fled the residence after a family member intervened.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
One Star was immediately turned over to the custody of the U.S. Marshals Service.
Retired Crane Navel Employee Charged with Possessing Stolen U.S. Government Property and Possessing Child PornographyRead the Press Release
EVANSVILLE – A federal grand jury in Evansville returned an indictment yesterday charging a Loogootee, Indiana man with possession of a firearm by a felon, possession of stolen U.S. government property, and possession of child pornography.
According to court documents, Timothy L. Guy, 74, of Loogootee, retired from Crane Navel in 2004 after working 38 years at the facility. During that time, Guy was an explosive handler at the Army Ammunition Activity Center and had access to ammunition and munitions.
The Indiana State Police and Martin County Sheriff’s Office began investigating Guy for his involvement with child pornography. Guy was arrested April 30, 2021 for possessing child pornography, and while at Guy’s property, an investigator discovered a vast amount of ammunition in a cellar. Law enforcement investigators secured the area and requested the assistance of the NSA Crane’s EOD, and the ATF. A search warrant was executed and over 10,000 various rounds of ammunition, several firearms, and a large amount of child pornography was discovered. Guy had a previous convection for possession of child pornography in April 2021 from Martin County. He is being held on state charges for probation violation and possession of child pornography.
Guy has been charged with one count of possession of a firearm by a felon, and one count of possession of stolen U.S. property. If convicted, he faces up to 10 years imprisonment, up to a $250,000 fine and up to 3 years supervised release on each count. He is also charged with one count of possession of child pornography. If convicted, he faces up to 20 years imprisonment, up to a $250,000 fine, and a term of up to life of supervised release. The penalty is increased to a mandatory minimum of 10 years imprisonment for a qualifying prior conviction. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the Department of Defense Office of Inspector General, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Indiana State Police, and the Martin County Sheriff’s Office.
Assistant United States Attorney Todd S. Shellenbarger is prosecuting the case.
Project Safe Childhood is a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Rapid City Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on August 23, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Kameron Lamont Jackson, age 29, was sentenced to 21 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Jackson was indicted by a federal grand jury on March 9, 2021. He pled guilty on June 3, 2021.
The conviction stemmed from an incident that occurred between December 12, 2020, and March 9, 2021, in Rapid City. Jackson, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, knowingly failed to properly register as a sex offender and update his registration when he changed his place of residence.
This case was investigated by the U.S. Marshals Service and the Rapid City Police Department. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Jackson was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for Failure to RegisterRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on August 23, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
David Marrowbone, age 58, was sentenced to 24 months in federal prison, followed by five years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Marrowbone was indicted for Failure to Register as a Sex Offender by a federal grand jury on March 9, 2020. He pled guilty on May 21, 2021.
Marrowbone was convicted of Assault with the Intent to Commit Rape in March 1982. As a result of this conviction, he is required to register as a sex offender. Marrowbone was convicted of Failure to Register as a Sex Offender in 1998, 2015, and 2018. On March February 15, 2019, Marrowbone began his term of supervised release but failed to update his sex offender registration between December 25, 2020, and April 21, 2021.
This case was investigated by U.S. Marshals Service. Assistant U.S. Attorney Jay Miller prosecuted the case.
Marrowbone was immediately turned over to the custody of the U.S. Marshals Service.
Quincy Man Sentenced to 151 Months for Methamphetamine ChargeRead the Press Release
DAVENPORT, IOWA – On August 25, 2021, United States District Court Chief Judge John A. Jarvey sentenced Michael Rees, age 40, of Quincy, Illinois, to 151 months in prison for his involvement in a methamphetamine conspiracy operating out of Burlington. Rees was also found to have possessed a firearm related to his drug trafficking activities and he was under criminal justice supervision at the time of this offense.
Rees was one of eight defendants who faced federal charges in the Southern District of Iowa after a multi-year joint federal and state investigation which culminated in the execution of search warrants in various locations, including Burlington, on November 19, 2019.
Acting United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Federal Bureau of Investigation; West Central Illinois Taskforce; Quincy, Illinois Police Department; Southeast Iowa Narcotics Taskforce; Burlington Police Department; and the Des Moines County Sheriff’s Office. The United States Attorney’s Office for the Southern District of Iowa prosecuted this matter.
This case is part of Project Safe Neighborhoods, a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safter for everyone.
Portsmouth Woman Sentenced for Fraud Schemes Targeting VeteransRead the Press Release
NEWPORT NEWS, Va. – A Portsmouth woman was sentenced today to 9.5 years in prison for wire fraud and aggravated identity theft in connection with a scheme to defraud veterans.
“What is most egregious about the defendant’s conduct is that she used her own status as a former veteran to defraud and take advantage of other veterans,” said Raj Parekh, Acting U.S. Attorney in the Eastern District of Virginia. “The sentence imposed in this case reflects the serious nature of these fraud schemes and the potential consequences that those who victimize veterans, who have sacrificed so much for our country, could face in the Eastern District of Virginia.”
According to court documents, Rita Copeland, 59, operated an entity known as “Veteran Services of the Commonwealth.” From 2016 through 2020, Copeland purported to provide caregiving, contracting, and rental assistance services to various veterans. Copeland caused a number of victims to apply for Home Improvements and Structural Alterations (HISA) grants through the U.S. Department of Veterans Affairs. Such grant payments are to be used for certain designated improvements to the residences of veterans. Copeland failed to perform all of the promised work and used a portion of these payments to her own benefit, contrary to the designated purposes of the funds.
Copeland also diverted the income and retirement fund payments of another veteran to a bank account that she had opened. In addition, Copeland fraudulently obtained and diverted loan funds and used the credit and debit cards of this elderly victim. Finally, Copeland engaged in a rental fraud scheme, purporting to link veterans and others with landlords, but then diverted rental and security deposit payments to her own benefit. In total, from at least 2017-2020, Copeland’s fraud schemes impacted at least 29 victims, resulting in a combined loss of approximately $430,000.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; and Michael J. Missal, Inspector General, U.S. Department of Veterans Affairs, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson.
Assistant U.S. Attorney Brian Samuels prosecuted the case.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult. It is a term used to describe five subtypes of elder abuse: physical abuse, financial fraud, scams and exploitation, caregiver neglect and abandonment, psychological abuse, and sexual abuse. Elder abuse is a serious crime against some of our nation’s most vulnerable citizens, affecting at least 10 percent of older Americans every year. Together with our federal, state, local, and tribal partners, the Department of Justice is steadfastly committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, research, victim services, and public awareness. This holistic and robust response demonstrates the Department’s unwavering dedication to fighting for justice for older Americans.
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. 4:20-cr-63.
Peoria Drug Dealer Sentenced to over Thirteen Years in PrisonRead the Press Release
PEORIA, Ill. –John M. Henigan, 36, of Peoria, Illinois, was sentenced on August 26, 2021, to just over thirteen years (158 months) in federal prison, to be followed by five years of supervised release, for distribution of heroin.
Henigan, who pleaded guilty to three counts of distribution of heroin last year, sold the drugs to a police informant in the fall of 2017. According to testimony at sentencing, investigators had learned Henigan was a significant heroin dealer in the Peoria area earlier that year. Through testimony and other evidence provided at sentencing, the district court also determined that Henigan caused the overdose death of a Washington, Illinois, man in April 2016.
According to court documents, after Henigan’s arrest in 2019, he admitted he was a heroin dealer and provided a list of various crack cocaine and heroin customers he sold drugs to throughout the years, some of whom have since overdosed and died. Evidence collected from Henigan’s phone showed that he also brokered sales of stolen firearms, in addition to his drug trafficking. Numerous images of guns and drugs were found on his phone. Evidence established that Henigan was not a drug user and earned hundreds of dollars a day dealing.
Henigan’s heroin trafficking dated back to 2015 and involved over 880 grams of heroin, as well as crack cocaine. During sentencing, U.S. District Court Judge Joe Billy McDade emphasized Henigan’s “conscious and deliberate” decision to traffic drugs “that kill people.” Judge McDade also described Henigan’s involvement with trafficking stolen firearms as unjustifiable.
“This case starkly demonstrates what drug dealers can expect when they choose to sell poisonous drugs into our communities,” said Acting U.S. Attorney Douglas J. Quivey. “Our office commends the Pekin Police Department’s dedication and perseverance in working up the chain to target high-level drug dealers in our community. Their collaboration with DEA is a successful example of leveraging the strengths of federal, state, and local law enforcement agencies against drug dealers who profit off other people’s serious and tragic additions.”
“The Pekin Police Department appreciates the working relationship that we have with the DOJ,” said Pekin Police Chief John Dossey. “This case is a clear example of ‘team work’ between local and federal agencies in an effort to make a difference not only in our community, but in society as a whole. I would like to recognize the Pekin detectives who worked tirelessly on this matter solely to better our community. I would also like to thank the DOJ prosecution team who worked with our detectives to successfully prosecute this case to remove a dangerous individual from our streets.”
Henigan has remained in the custody of the U.S. Marshals since his arrest.
The Drug Enforcement Administration and Pekin Police Department investigated the case with the assistance of the Tazewell County Sheriff’s Office and Morton Police Department. Assistant U.S. Attorney Katherine Legge represented the government in the prosecution.
Owner of Jet Charter Company Settles False Claims Act Allegations Regarding Misappropriation of Payment Protection Program LoanRead the Press Release
Miami, Florida – Seth A. Bernstein, the owner of jet charter company All in Jets LLC dba JetReady, located in Florida, has agreed to pay $287,055 to settle allegations that he misappropriated Payment Protection Program (PPP) loan proceeds for his personal expenses. JetReady is a jet charter operator with its principal place of business in Fort Lauderdale, Florida.
The United States alleged that Bernstein, on behalf of JetReady, applied for and received a PPP loan totaling $1,173,382 in April 2020. Within a day of receiving the loan proceeds, Bernstein allegedly diverted $98,929 of the funds to pay for personal, non-company related expenses. JetReady has since filed for bankruptcy in the Southern District of New York.
“The Paycheck Protection Program was enacted over a year ago to help small businesses and their employees financially survive the COVID-19 pandemic,” said Acting U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida. “Since this and other programs under the CARES Act were initiated, our Office has prioritized investigating and bringing to justice those who illegally seek to benefit from the global health crisis and the programs put in place to help those in need.”
“Paycheck Protection Program loans were intended to provide critical relief to small businesses so that they could retain employees and keep their doors open,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “We will ensure that those who misused these taxpayer-funded loans and denied other eligible businesses access to such assistance are held accountable.”
“The Paycheck Protection Program is intended to provide a lifeline to the nation’s small businesses and its employees” said Inspector General Hannibal “Mike” Ware of the SBA Office of Inspector General (OIG). “OIG will aggressively investigate allegations of wrongdoing in SBA’s pandemic response programs. I want to thank the Department of Justice for its dedication to achieving this settlement.”
“The result in this case is the product of enhanced efforts by federal agencies, such as the Small Business Administration working with Department of Justice and other federal law enforcement agencies, to detect Paycheck Protection Program abuses, pursue individuals and companies that engage in such abuses and protect the integrity of the PPP program,” said SBA General Counsel Peggy Delinois Hamilton.
Congress enacted the PPP on March 29, 2020, as part of the CARES Act, to provide emergency financial support to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. The CARES Act authorized billions in loans to small businesses struggling to pay employees and other business expenses. Under the PPP, eligible businesses could obtain loans guaranteed by the Small Business Administration (SBA). Businesses were required to spend loan proceeds for employee compensation, rent or mortgage, and other specified expenses and, depending on their use of the loan proceeds, could qualify for loan forgiveness, up to the full amount of the loan.
Today’s civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Victoria Hablitzel, a former JetReady employee. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. Ms. Hablitzel will receive $57,411. The case is captioned U.S. ex rel. Hablitzel v. All in Jets, LLC and Seth A. Bernstein, No. 20-cv-61410 (S.D. Fla.).
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Southern District of Florida and the Civil Division’s Commercial Litigation Branch, Fraud Section, with assistance from the SBA’s Office of General Counsel and OIG.
This matter was handled by Assistant U.S. Attorney James A. Weinkle of the Southern District of Florida and Trial Attorney Jonathan Gold of the Civil Division.
On May 17, 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.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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Orange County Man Pleads Guilty to Cocaine ChargeRead the Press Release
ALBANY, NEW YORK – Peter Mami, age 43, of Orange County, New York, pled guilty today to possessing and intending to distribute more than 500 grams of cocaine. The announcement was made by Acting United States Attorney Antoinette T. Bacon and Ray Donovan, Special Agent in Charge, United States Drug Enforcement Administration (DEA), New York Division.
As part of his guilty plea, Mami admitted that on March 2, 2020, he and his co-defendant possessed with the intent to distribute approximately two kilograms of cocaine.
Mami faces at least 5 years and up to 40 years in prison, a fine of up to $5 million, and a term of supervised release of at least 4 years and up to life, when Chief United States District Judge Glenn T. Suddaby sentences him on January 6, 2022. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the DEA, and is being prosecuted by Assistant U.S. Attorneys Ashlyn Miranda and Joshua R. Rosenthal.
Omaha Man Sentenced for Role in Sex Trafficking of a MinorRead the Press Release
Acting United States Attorney Jan Sharp announced that Darien T. Brewer, 30, of Omaha, Nebraska, was sentenced today in federal court in Omaha for conspiracy to engage in sex trafficking of a minor. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Brewer to 180 months’ imprisonment. There is no parole in the federal system. After his release from prison, Brewer will begin a five-year term of supervised release.
An investigation conducted by Homeland Security Investigations and the Nebraska Attorney General’s Office determined that from January 2016 and continuing through January 2019, in the District of Nebraska and elsewhere, Brewer (also known as “BD”) and a co-defendant, Lauryn Besta, conspired and agreed to recruit, transport, and entice four minor females, under the age of 18 years old, to engage in commercial sex. The victims were introduced into the lifestyle of prostitution through the use of drugs and alcohol provided by Brewer and Besta. Brewer and Besta often referred to the minors as “the Bunny Gang.”
Investigators determined that Brewer and Besta would instruct the minors how to advertise, solicit, and charge for commercial sex acts in the District of Nebraska and elsewhere. Brewer and Besta obtained commercial sex customers for the minors by purchasing and posting advertisements on internet sites such as www.backpage.com. Sex customers responded to the advertisements via telephone and text message and commercial sex acts were coordinated to occur at various hotels, motels, and other locations. Brewer and Besta used vehicles and public highways to drive the minors to various hotels, motels, and other locations for commercial sex acts, including Omaha, Nebraska; Lincoln, Nebraska; Iowa; and Houston, Texas. The minors paid a portion or all of the payments received for commercial sex acts to Brewer and Besta.
On June 4, 2021, Besta pleaded guilty to conspiracy to engage in sex trafficking of a minor. Sentencing is scheduled for September 3, 2021
This case was investigated by Homeland Security Investigations and the Nebraska Attorney General’s Office.
Norfolk Man Sentenced for Role in Colonial Heights Armed RobberyRead the Press Release
RICHMOND, Va. – A Norfolk man was sentenced today to over 14.5 years in prison for his role in a violent armed robbery of a Sprint Store in Colonial Heights.
According to court records and evidence presented at trial, on the afternoon of January 7, 2019, Ronnell Kareen Levon Johnson, 28, and his co-conspirator, Tajh Rodgers, 32, of Norfolk, traveled from the Norfolk area to Colonial Heights to commit an armed robbery of a Sprint Store. During the robbery, Rodgers brandished a loaded .40 caliber Ruger semi-automatic pistol and forced two employees into a back room of the store, where he let Johnson in through the back entrance. Johnson entered the store and started gathering Sprint Store merchandise into a bag.
Johnson and Rodgers then held the employees hostage in the back room, and attempted to tie up both victims while they completed the robbery. Due to a time-delay lock on the store’s safe, the defendants had to wait approximately 20 minutes for the safe to open. During that time, two separate customers entered the front of the store. Rodgers let one of the employees assist each customer, along with a warning that the employee would be killed if he tried to alert anyone about the crime. The employee followed those instructions and the final customer left without incident. Minutes after the second customer departed, the time-delay lock on the safe opened, allowing Johnson and Rodgers to steal dozens of cellular telephones and other store merchandise valued at approximately $25,000.
During a court-authorized search of Rodgers’s residence, officers recovered the loaded .40 caliber Ruger semi-automatic pistol used in the robbery, various stolen Sprint Store items, and other evidence. Using toll records and cellular tower data, law enforcement later identified Johnson as Rodgers’s co-conspirator in the armed robbery based on Johnson’s travel to and from the Colonial Heights Sprint Store on January 7, 2019, along with other evidence.
Johnson was sentenced today to 175 months in prison. On May 28, a federal jury in Richmond convicted Johnson on one count of robbery affecting commerce. Rodgers pleaded guilty on October 22, 2019 to the Colonial Heights armed robbery as well as three charges of possessing a firearm in furtherance of drug trafficking. Rodgers was sentenced to 28 years imprisonment on January 9, 2020 for his role in the armed robbery and other unrelated criminal conduct.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Charlie J. Patterson, Special Agent in Charge of the ATF’s Washington Field Division; Colonel Gary T. Settle, Superintendent of Virginia State Police; and Colonel Jeffrey W. Faries, Chief of Colonial Heights Police, made the announcement after sentencing by Senior U.S. District Judge Robert E. Payne. Assistant U.S. Attorneys Kenneth R. Simon, Jr. and Michael Gill 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.
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. 3:20-cr-133.
New Bedford Man Sentenced to Five Years in Prison for Role in Cocaine ConspiracyRead the Press Release
BOSTON – A New Bedford man was sentenced yesterday in federal court in Boston for his role in a cocaine trafficking conspiracy.
Jason Valliere, 43, was sentenced by U.S. Chief District Court Judge F. Dennis Saylor IV to five years in prison and four years of supervised release. On March 26, 2021, Valliere pleaded guilty to conspiracy to distribute cocaine.
In October 2020, Valliere was charged along with three co-conspirators for negotiating and coordinating a multi-kilogram cocaine deal with undercover agents. Initially, Valliere sought to negotiate for 10 kilograms of cocaine by offering cash as well as armed manpower (his co-conspirators). Subsequent renegotiations ultimately resulted in the deal of at least one and up to three kilograms of cocaine. At the time of Valliere’s arrest, law enforcement recovered a loaded firearm that was concealed in a compartment in Valliere’s car. The firearm matched a description that Valliere previously had given to undercovers of a gun he could bring to the anticipated drug deal.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolanta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Suffolk County Sheriff Steven W. Tompkins; Bristol County Sheriff Thomas M. Hodgson; Boston Police Acting Commissioner Gregory Long; Brockton Police Chief Emanuel Gomes; Bridgewater Police Chief Christopher D. Delmonte; East Bridgewater Police Chief Paul O’Brien; and Westport Police Chief Keith Pelletier made the announcement. Valuable assistance was provided by the Fall River Police Department. Assistant U.S. Attorney Kaitlin O’Donnell of Mendell’s Organized Crime and Gang Unit prosecuted the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Michael Gonzalez Indicted for Stealing Five Tesla Vehicles Worth over $600,000 – Including a Tesla that Burned on Lake ChamplainRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Michael A. Gonzalez, 32, of Colchester, Vermont appeared today in federal court after being charged with five counts of possessing and selling stolen motor vehicles. Gonzalez was ordered detained by United States Magistrate Judge Kevin J. Doyle pending a detention hearing next week.
According to the indictment filed in the case, between September 2018 and January 2021, Gonzalez obtained five Tesla vehicles worth a total of approximately $607,000 from dealerships in New Jersey, New York, Massachusetts, and Florida. For each vehicle, Gonzalez made an initial payment of approximately $2,500, and then arranged for electronic funds transfers to cover the balance of the vehicle’s price from accounts with insufficient funds or from fictitious accounts. Gonzalez took delivery of the vehicles from Tesla before Tesla discovered his failure to complete the final payments. Gonzalez resold or attempted to resell four of the five vehicles. Gonzalez was never issued the necessary paperwork to resell the fifth vehicle, which subsequently burned on a frozen portion of Shelburne Bay on February 24, 2019. Gonzalez attempted to claim insurance funds for the value of this burned Tesla, but the insurance claim was denied.
On August 26, 2021, a federal Grand Jury sitting in Burlington, Vermont returned a five-count indictment against Gonzalez for the sale and possession of stolen motor vehicles. If convicted, Gonzalez faces up to ten years in custody on each count. The actual sentence would be determined in relation to the Federal Sentencing Guidelines with consideration of the nature and circumstances of the offense and Gonzalez’s personal history. The Acting United States Attorney noted that the charges in the indictment are merely accusations, and that the defendant is presumed innocent unless proven guilty.
Acting U.S. Attorney Jonathan A. Ophardt credited the United States Secret Service and the Vermont Department of Motor Vehicles – Enforcement and Safety Division for their work investigating the matter.
The United States is represented in this matter by Assistant U.S. Attorney Jeffrey W. Davis. Chandler Matson, Esq. represents the defendant.
Member of Gregory Butler Drug Trafficking Organization Pleads Guilty to His Role in the Drug Distribution ConspiracyRead the Press Release
Baltimore, Maryland – Tirrel Saunders, a/k/a “Pretty”, age 35, of Baltimore, Maryland, pleaded guilty today to conspiracy to distribute controlled substances. Saunders was a member of the Gregory Butler Drug Trafficking Organization (“Butler DTO”) which distributed heroin, fentanyl, cocaine, and crack cocaine in Maryland, Virginia, West Virginia, and Pennsylvania.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; Chief Marcus Jones of the Montgomery County Police Department; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his guilty plea, from October 2018 through April 2019, FBI intercepted phone communications of the Butler DTO that operated in and around the Baltimore area, using phones to arrange heroin, crack cocaine, and fentanyl sales to drug users and redistributors from Maryland, Virginia, and West Virginia, and Pennsylvania.
The Butler DTO sold thousands of dollars in narcotics on a daily basis. For example, intercepted phone communications revealed that the Butler DTO frequently sold over 100 grams of heroin mixed with fentanyl on a daily basis. Customers of the Butler DTO believed they were purchasing heroin, but the Butler DTO adulterated all heroin it sold with fentanyl. Street-level distributors in the Butler DTO worked in shifts and shared phones they used to communicate with Butler DTO leadership and customers.
As stated in the plea agreement, investigative efforts identified Saunders as a Butler DTO supervisor and manager. In this capacity, Saunders managed daily supplies of narcotics and the collection of drug proceeds from distributors. FBI investigators intercepted Saunders regularly arranging to resupply co-conspirators with heroin and crack cocaine which they sold to drug customers. Saunders also communicated with Butler DTO leadership and acted as a liaison between Butler DTO leadership and street-level distributors.
Saunders agreed that over the course of the conspiracy, he distributed over one kilogram of heroin to street-level distributors.
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.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Saunders and the government have agreed that, if the Court accepts the plea agreement, Saunders will be sentenced to 15 years in federal prison. U.S. District Judge Paul W. Grimm has scheduled sentencing for November 19, 2021 at 1 p.m.
Acting United States Attorney Jonathan F. Lenzner commended the FBI, DEA, Montgomery County Police Department, and the Baltimore Police Department for their work in the investigation.
Mr. Lenzner also recognized the U.S. Postal Inspection Service; the City of Rockville Police Department; the Baltimore County, Howard County, and Montgomery County Police Departments; the Frederick County Sheriff’s Office; the Maryland State Police; the West Virginia State Police; the Virginia State Police; the Warren County (VA) Sheriff’s Department; the Winchester (VA) and Front Royal (VA) Police Departments; and the Frederick County and Howard County State’s Attorney’s Offices for their assistance. Mr. Lenzner thanked Assistant U.S. Attorney Matthew DellaBetta, who is prosecuting the case.
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Media Advisory: In-Person Press Conference in Sampson CountyRead the Press Release
WHEN: Monday, August 30, 2021 at 2:00 p.m.
WHERE: Sampson County Sheriff’s Office
112 Fontana Street
Clinton, NC 28328
Re: Clinton Kidnapping Case
The United States Attorney’s Office announces a press conference to discuss the successful prosecution of the 5 defendants involved in the Clinton kidnapping case, that resulted in the resolution of the kidnapping along with a shooting that injured 2 juveniles. This case also led to murder charges in the death of Jimmy Graham.
In addition to Acting United States Attorney G. Norman Acker, III, we anticipate Sampson County Sheriff Jimmy Thornton, Interim Clinton Police Chief Anthony Davis, Resident Agent in Charge (RAC) Shawn Stallo of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and District Attorney Ernie Lee to participate in this event.
Credentialed members of the media are invited to attend. For additional information, and to RSVP your intentions to attend this event, please email Don Connelly at [email protected].
Lynn Man Pleads Guilty to Bank Fraud Conspiracy and Identity TheftRead the Press Release
BOSTON – A Lynn man pleaded guilty yesterday in connection with his involvement in a scheme to defraud several financial institutions and obtain money from their customers using fraudulent identification documents.
Emeka Iloba, 27, pleaded guilty to one count of conspiracy to commit bank fraud and one count of aggravated identity theft. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Dec. 16, 2021. Iloba was charged with an alleged co-conspirator on March 15, 2021.
As stated during the plea hearing, Iloba participated in and at times directed a scheme to defraud financial institutions. To carry out the scheme, Iloba and others used fraudulent identification documents, among other means, to withdraw money from customers’ accounts at various banks in the form of checks, cash and wire transfers. The fraudulently-obtained funds were then deposited in other bank accounts opened in the names of fictitious business entities before being withdrawn. According to the charging documents, this scheme resulted in over $1.5 million in losses between April 2017 and March 2018.
The charge of conspiracy to commit bank fraud provides for a sentence of up to 30 years in prison, up to five years of supervised release and a fine of $1 million. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutively to any other sentenced imposed, one year 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 and Joseph R. Bonavolanta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division, made the announcement. Assistant U.S. Attorneys Leslie A. Wright and Christopher J. Markham of Mendell’s Securities, Financial & Cyber Fraud Unit are prosecuting the case.
Louisiana Doctor Indicted for Illegally Dispensing over One Million Doses of Opioids and for $5.1 Million Health Care Fraud SchemeRead the Press Release
A federal grand jury in New Orleans, Louisiana, returned an indictment today charging a Louisiana physician for his role in distributing over 1,200,000 doses of Schedule II controlled substances, including oxycodone and morphine, outside the scope of professional practice and not for a legitimate medical purpose, and for maintaining his clinic for the purpose of illegally distributing controlled substances. Today’s indictment also charges the physician with defrauding health care benefit programs, including Medicare, Medicaid, and Blue Cross and Blue Shield of Louisiana, of more than $5,100,000, given that the opioid prescriptions were filled using health insurance benefits.
According to court documents, Adrian Dexter Talbot, M.D., 55, of Slidell, owned and operated a medical clinic located in Slidell that accepted cash payments from individuals seeking prescriptions for Schedule II controlled substances. In 2015, Talbot took a full-time job in Pineville, Louisiana, and although he was no longer physically present at the Slidell clinic, he pre-signed prescriptions to be distributed to individuals there without seeing or examining those individuals. In 2016, Talbot hired another practitioner who also pre-signed prescriptions to be distributed in the same manner at the Slidell clinic. With Talbot’s knowledge, individuals were filling their prescriptions that were issued outside the scope of professional practice and not for a legitimate medical purpose using their insurance benefits, thereby causing health care benefit programs to be fraudulently billed for filling prescriptions that were written without an appropriate patient examination or determination of medical necessity for the prescription.
Talbot is charged with one count each of conspiracy to unlawfully distribute and dispense controlled substances, maintaining a drug-involved premises and conspiracy to commit health care fraud, as well as four counts of unlawfully distributing and dispensing controlled substances. The defendant is scheduled for his initial court appearance Sept. 10 before U.S. Magistrate Judge Michael B. North of the U.S. District Court for the Eastern District of Louisiana. If convicted, he faces a maximum penalty of 10 years for conspiracy to commit health care fraud and 20 years each for all other counts. 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; U.S. Attorney Duane A. Evans for the Eastern District of Louisiana; Special Agent in Charge Douglas A. Williams Jr. of the FBI’s New Orleans Field Office; Special Agent in Charge Miranda Bennett of the Department of Health and Human Services, Office of Inspector General (HHS-OIG); and Special Agent in Charge Jeffrey Breen for the Department of Veterans Affairs, Office of Inspector General (VA-OIG) made the announcement.
The FBI, HHS-OIG, VA-OIG, and the Louisiana Office of the Attorney General’s Medicaid Fraud Control Unit are investigating the case.
Trial Attorney Sara E. Porter of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David Howard Sinkman of the Eastern District of Louisiana are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
KC Man Pleads Guilty to Shooting Female Z-Trip Driver 26 Times During RobberyRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man pleaded guilty in federal court today to the armed robbery of a female Z-Trip driver whom he shot approximately 26 times with a rifle from the back seat.
Derron D. Nevels, 20, pleaded guilty before U.S. District Judge Howard F. Sachs to one count of robbery and one count of discharging a firearm during a violent crime.
Nevels was picked up by a Z-Trip driver on Wabash Avenue in Kansas City, Mo., on the evening of Dec. 4, 2018. The Z-Trip taxi in which the crime was committed is equipped with interior and exterior cameras. The cameras show Nevels getting into the rear passenger seat at approximately 8 p.m. The Z-Trip driver took him to Benton Avenue in Kansas City, Mo.
When they arrived at the destination, they waited in the vehicle for somebody to bring out the fare. When a second suspect approached the vehicle, Nevels held a Smith and Wesson Military & Police .22-caliber rifle up to the victim’s head and demanded she give him everything. The victim attempted to explain that Nevels was being recorded, to which Nevels responded, “I don’t care; give me everything.” Nevels also appeared to be taking a photo or video with his cell phone.
The victim turned toward the back seat and grabbed onto the rifle, and a struggle ensued. The second suspect hit the victim in the face, then reached around the driver’s seat and began striking the victim in the back and the back of the victim’s head. The victim released Nevels’ rifle and then Nevels leaned back in his seat, chambered a live round, and opened fire on the victim from close range. Nevels fired approximately 26 times into the victim. Nevels and his accomplice then ran from the scene.
About 10 minutes later, Nevels and another suspect returned to the victim’s vehicle to retrieve a cell phone Nevels had left behind when he fled from the scene of the earlier robbery and assault. Nevels can be heard on the Z-Trip vehicle’s video asking the victim if she is okay. The victim indicates she has been shot. Nevels asked the victim if she had called the police. He got into the rear driver’s side of the taxi and picked up the cell phone, then left the scene.
When police officers arrived, the victim was transported to an area hospital in critical condition. According to court documents, she continues to suffer from her serious and debilitating injuries inflicted by Nevels.
Investigators used cell phone and Facebook data to identify Nevels and the distinctive rifle he used in the robbery. On Dec. 10, 2018, Nevels was seen getting onto a bus near Prospect Avenue and Swope Parkway. Nevels was arrested when he got off the bus at 11th Street and Grand Avenue. Nevels was carrying the loaded rifle hidden in his waistband with the barrel going down his right pant leg. The rifle was later positively identified as the weapon used to shoot the Z-Trip driver during the robbery.
Co-defendants Bailee Anna Maria Prieto, 21, of Kansas City, Kansas, and Melani Yitzel Collazo Jimenez, also known as “Mel,” 23, of Kansas City, Mo., have each pleaded guilty to being accessories after the fact to the robbery.
Prieto used or allowed her phone to be used to order the Z-Trip that was robbed. Prieto disposed of her phone after the robbery to avoid the police searching it.
Jimenez went to the scene to help Nevels retrieve his telephone from the Z-Trip where he left it after the robbery and shooting. Jimenez provided her apartment for Nevels, Prieto, and others to stay the night after the robbery.
Neither Prieto nor Jimenez reported anything to law enforcement. The two of them communicated with and were associated with Nevels and others, before, during, and after the robbery and shooting.
Under federal statutes, Nevels is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. Prieto and Jimenez are each subject to a maximum sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Kansas City, Mo., Police Department and the FBI.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Jury Convicts Recidivist Defendant of Possessing Child PornographyRead the Press Release
A federal jury in the Eastern District of Virginia convicted a Virginia man yesterday for possession of child pornography.
According to court documents and evidence presented at trial, James B. Clawson Sr., 58, of Alexandria, was previously convicted of distribution of child pornography after law enforcement learned that he was serving as an administrator of an online forum dedicated to trafficking in child sexual abuse material. In 2019, while Clawson was serving a term of federal supervised release in connection with this conviction, a U.S. probation officer discovered that he was concealing a laptop computer and multiple thumb drives in his home. Clawson told the probation officer that he had built a hidden compartment in a shelving unit in his closet to conceal the devices because he did not want to have his internet activity monitored.
“James Clawson is a repeat child sex offender who has demonstrated that he cannot and will not be deterred from downloading images and videos depicting the sexual abuse of children,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The department is committed to working closely with our law enforcement partners to ensure that child sex offenders like Clawson will be held accountable for their crimes.”
“The evidence at trial demonstrated that the defendant’s prior conviction for distributing child pornography unfortunately did not deter him from continuing to seek out such heartbreaking and illegal images,” said Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia. “Thanks to the diligent efforts of the trial team and our law enforcement partners, the defendant has been held accountable for his recidivist conduct by a jury of his peers.”
“Child exploitation sites present a grave danger to children and unprecedented challenges to the world’s law enforcement agencies,” said Assistant Director Calvin Shivers of the FBI’s Criminal Investigative Division. “Today’s verdict demonstrates the FBI’s ongoing commitment to pursue individuals engaging in child exploitation offenses and secure justice for children that are victimized by this egregious conduct.”
“Recidivism is a real problem among convicted sex offenders,” said Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office. “As this jury verdict shows, the FBI is committed to bringing individuals like Clawson – who continued to exploit children even after they have been caught once – to justice no matter what it takes. The safety of our children is a priority for the FBI, and we will stop at nothing to protect them.”
Evidence presented at trial established that Clawson used the laptop to search for and repeatedly download from the internet images and videos of minors engaged in sexually explicit conduct and then stored those images on one of his thumb drives. The evidence further established that Clawson sorted these child sexual abuse images on his thumb drive and assigned them files names based on the specific sexually explicit conduct they depicted.
Clawson was convicted of possession of child pornography. He is scheduled to be sentenced on Dec. 1 and faces a mandatory minimum sentence of 10 years in prison and a maximum of 20 years in prison. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI investigated the case, with significant assistance from the High Technology Investigative Unit of the Justice Department Criminal Division’s Child Exploitation and Obscenity Section (CEOS).
Trial Attorney William G. Clayman of CEOS and Assistant U.S. Attorney Seth M. Schlessinger of the Eastern District of Virginia are prosecuting the case.
This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. The task force is composed of FBI agents, along with other federal agents and detectives from northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking.
Judge sentences Tennessee man to 27 months for wire fraud in investment fraud schemeRead the Press Release
ST. LOUIS – United States District Judge Stephan R. Clark sentenced Joshua McDonald to a 27- month term of imprisonment to be followed by a 3-year term of supervised release. The defendant had previously pleaded guilty in April to four counts of wire fraud.
McDonald was the owner and operator of Perfection PR Firm LLC, that conducted business in the Eastern District of Missouri. McDonald told potential and actual clients that Perfection PR traded in the Foreign Exchange Market (Forex) for clients by pooling their funds.
McDonald was not registered as a broker-dealer, broker-dealer agent, investment advisor, investment advisor representative, or an issuer agent as required by FINRA (Financial Industry Regulatory Authority).
Beginning in November 2017 and continuing to June 2019, McDonald devised a scheme to defraud and to obtain money by means of materially false and fraudulent pretenses, representations and promises. McDonald falsely told prospective clients that he would provide a minimum of 20% to 50% return per month on their Forex investments. McDonald further falsely told investors that they had made substantial gains in their Forex investments with him when, in fact, he had used their funds on his own personal expenses and, without their knowledge or consent, invested and lost their funds in cryptocurrency. McDonald directed investors to deposit their Forex investments funds, primarily through wire transfers, into his personal bank account or the Perfection PR bank account. McDonald caused over $350,000 in loss to numerous victims of his scheme.
The Federal Bureau of Investigation investigated the case.
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Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Aug. 24 was:
Solomon Anthony Gardner, 41, of Billings, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Gardner faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Gardner was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-50.
Matthew Dallas Lee, 33, of Billings, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Lee faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Lee was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-52.
Appearing on Aug. 26 was:
Preston Tucker Baumann, 24, a transient, on charges of prohibited person in possession of a firearm and ammunition. If convicted of the most serious crime, Baumann faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Baumann was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-56.
Robert Allen Williams, 57, of Oregon, on charges of conspiracy to possess with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, Williams faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. William was detained pending further proceedings. The Drug Enforcement Administration and Montana Highway Patrol investigated the case. PACER case reference. 21-64.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Aug. 23 was:
Taurean Jerome Weber, 39, of Lakewood, Colorado, formerly of Missoula, on charges of transportation of child pornography, distribution of child pornography and receipt of child pornography. If convicted of the most serious crime, Weber faces a mandatory minimum five years to 20 years in prison, a $250,000 fine and five years to life of supervised release. Weber was released pending further proceedings. The Missoula Police Department, FBI and Montana Internet Crimes Against Children Task Force investigated the case. PACER case reference. 21-28.
Jeremy Michael Rivers, 44, of Anaconda, on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, Rivers faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Rivers was detained pending further proceedings. The Drug Enforcement Administration, Montana Division of Criminal Investigation, Homeland Security Investigations and U.S. Postal Service investigated the case. PACER case reference. 21-23.
Anthony Wayne Lamere, 23, of Butte, on charges of conspiracy to possess with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, Lamere faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Lamere was detained pending further proceedings. The Drug Enforcement Administration, Montana Division of Criminal Investigation and U.S. Postal Service investigated the case. PACER case reference. 21-24.
Kathy Ann Hendrickson, 59, of Walla Walla, Washington, on charges of cyberstalking. If convicted of the most serious crime, Hendrickson faces a maximum five years in prison, a $250,000 fine and three years of supervised release. Hendrickson was released pending further proceedings. The FBI investigated the case. PACER case reference. 21-32.
Appearing in Great Falls U.S. Magistrate Judge John T. Johnston and pleading not guilty on Aug. 24 was:
Edward James Hovey, 30, of Browning, on charges of receipt of child pornography. If convicted of the most serious crime, Hovey faces a mandatory minimum five years to 20 years in prison, a $250,000 fine and five years to life of supervised release. Hovey was detained pending further proceedings. The FBI and Blackfeet Law Enforcement Services investigated the case. PACER case reference. 21-50.
Rhonda Jeanette Lapier, aka Rhonda Trench, 49, of Helena, on charges of conspiracy to possess with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, Lapier faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Lapier was detained pending further proceedings. The FBI, Great Falls Police Department, Cascade County Sheriff’s Office and Lewis & Clark County Sheriff’s Office investigated the case. PACER case reference. 21-52.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Houston man charged in Memorial Drive theftsRead the Press Release
HOUSTON – A 26-year old Houston man has been arrested in connection with a string of mail thefts occurring recently in the Memorial Drive area of the city, announced Acting U.S. Attorney Jennifer B. Lowery.
A criminal complaint charges Tony Morris Jr. with theft of mail and bank fraud. Authorities took him into custody today. He is scheduled to make his initial appearance before U.S. Magistrate Judge Peter Bray.
Checks worth $497,335.53 had allegedly been stolen from a U.S. Postal Service collection box located on the 12500 block of Memorial Drive in Houston. The charges allege vehicles linked to Morris were observed at the location on approximately nine occasions and believed to be associated with the thefts.
Morris allegedly cashed checks stolen from the collection box on three occasions.
If convicted, he faces up to 30 years in federal prison and a $1 million maximum.
The U.S. Postal Inspection Service conducted the investigation with the assistance of police departments in Memorial Village Hedwig Village.
A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Hospital to Pay More Than $3 Million to Settle Whistleblower SuitRead the Press Release
Tarrant County’s John Peter Smith Hospital (JPS) has agreed to pay more than $3.3 million to settle allegations that it violated the False Claims Act by upcoding certain claims submitted to federal healthcare programs, Acting U.S. Attorney Prerak Shah announced today.
The settlement resolves a whistleblower suit filed in 2018 by JPS’s former Director of Compliance Erma Lee, whose complaint asserted that the hospital improperly appended billing modifiers -25, -59, and -XU to hundreds of claims in order to obtain payments to which it was not entitled.
Used properly, these billing modifiers indicate that a provider administered significant care on the same day as another medical procedure that was above and beyond the preoperative and postoperative care “bundled” into the main procedure code.
In her amended complaint, filed in September 2020, Ms. Lee alleged that she alerted hospital leadership that JPS had been improperly adding these modifiers to claims between 70 and 95 percent of the time, in essence routinely double billing for certain aspects of patients’ care. Nevertheless, she claimed, JPS failed to reimburse payors for overpayment stemming from these improperly coded claims.
“When company executives ignored this whistleblower's concerns about improper billing, she took them to the court,” said Acting U.S. Attorney Prerak Shah. “We are proud of the citizens who speak out to protect our federal healthcare programs.”
The allegations resolved by this settlement were originally filed under the qui tam provisions of the False Claims Act, which permits private persons with evidence of fraud to sue on behalf of the government and to share in any proceeds.
Under the Act, the United States may intervene in such an action or permit the whistleblower to pursue it. Although the United States elected not to intervene in the case, it investigated Ms. Lee’s allegations and worked collaboratively with the relator and her counsel in their pursuit and resolution of this case.
Ms. Lee will receive $912,635 as her statutory share of the settlement proceeds.
This matter was handled on behalf of the government by Assistant U.S. Attorney Andrew Robbins on behalf of the Office of the Inspector General for the Department of Health and Human Services.
The case is captioned United States ex rel. Lee v. Tarrant County Hospital District, case no. 4:19-CV-00412-P (N.D. Tex.). The claims settled by this agreement are allegations only and do not constitute a determination of liability.
Grand Island Woman Sentenced for Possession of Methamphetamine with Intent to DistributeRead the Press Release
Acting United States Attorney Jan Sharp announced that Andrea Gall, 22, of Grand Island, Nebraska, was sentenced today by United States District Court Judge John M. Gerrard to 10 years in federal prison for possessing 50 grams or more of actual or pure methamphetamine with the intent to distribute. Following her prison term, Gall will serve five years on supervised release. There is no parole in the federal system.
On October 4, 2019, Jose Negrete was on probation and a state probation officer stopped by Andrea Gall’s and Negrete’s house in Grand Island to conduct a home inspection. The probation officer observed a .22 caliber handgun. Negrete first asserted that the gun was a toy, and later admitted it was a real firearm. Negrete had been previously convicted of a felony offense and he is prohibited from possessing firearms. The police obtained a search warrant. Inside the home, they found about $20,000 in United States currency and more than a pound of methamphetamine. The methamphetamine was later sent to the Douglas County Sheriff’s Office’s Forensic Services Bureau. Testing completed by their laboratory showed that the drugs contained at least 514 grams of actual or pure methamphetamine.
Negrete pleaded guilty on August 26, 2021 to possessing 50 grams or more of actual methamphetamine with the intent to distribute, possessing a firearm in furtherance of a drug trafficking crime, and three counts of distribution of methamphetamine. His sentencing hearing is scheduled for November 19, 2021. He faces a statutory mandatory minimum sentence of 15 years’ imprisonment and he could potentially face up to life imprisonment.
This case was investigated by the Central Nebraska Drug and Safe Streets Task Force, which is made up of officers from the Grand Island Police Department, Hall County Sheriff’s Department, Hastings Police Department, Adams County Sheriff’s Department, Kearney Police Department, Buffalo County Sheriff’s Department, Nebraska State Patrol, Homeland Security Investigations, and the Federal Bureau of Investigation.
Gloversville Man Sentenced to 180 Months for Child Pornography CrimesRead the Press Release
ALBANY, NEW YORK – Jonathan L. Morgan, age 32, of Gloversville, New York, was sentenced today to 180 months in prison for distributing and possessing child pornography.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
In previously pleading guilty, Morgan admitted that he distributed videos depicting the sexual exploitation of children via a phone-based application connected to the Internet, from March 11 to March 12, 2020. He also admitted to possessing child pornography on two phones. Additionally, Morgan sought out videos of parents abusing their children, and provided detailed instructions to an undercover law enforcement officer (posing as a parent) as to how to abuse her daughter while filming it; smashed and tried to destroy one of his phones upon being approached by law enforcement; and admitted to inappropriately touching a child on several occasions.
Chief United States District Judge Glenn T. Suddaby also imposed a 15-year term of post-imprisonment supervised release. Additionally, Morgan will be required to register as a sex offender upon his release from prison.
The case was investigated by the FBI and its Child Exploitation Task Force, and was prosecuted by Assistant U.S. Attorney Michael Barnett.
This case was prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal 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 https://www.justice.gov/psc.
Gettysburg Man Sentenced on Firearm ChargeRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Gettysburg, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on August 23, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Jamie Holzwarth, age 39, was sentenced to 30 months in federal prison, followed by three years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. He must also forfeit the firearm.
Holzwarth was indicted for Possession of Firearm by a Prohibited Person by a federal grand jury on March 9, 2020. He pled guilty on June 1, 2021.
The conviction stems from an incident on February 26, 2020, in Eagle Butte, when Holzwarth, who had previously been convicted of crime punishable by imprisonment exceeding one year, and being an unlawful user of a controlled substance, knowingly possessed a firearm, which had been previously shipped and transported in interstate and foreign commerce. Law enforcement encountered Holzwarth intoxicated in a running vehicle with the firearm and drug related items.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by Cheyenne River Sioux Tribe Law Enforcement Services, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan Dilges prosecuted the case.
Holzwarth was immediately turned over to the custody of the U.S. Marshals Service.
Former low-income housing executive sentenced to prison for embezzling nearly $7 millionRead the Press Release
Tacoma – A former Pierce County Housing Authority executive was sentenced today in U.S. District Court in Tacoma to 51 months in prison for wire fraud in connection with her scheme to steal nearly $7 million, announced Acting U.S. Attorney Tessa M. Gorman. Cova Campbell pleaded guilty in January 2021, admitting that between March 2016 and July 2019, she used a variety of schemes to divert $6.9 million in public money to her own bank accounts. At the sentencing hearing U.S. District Judge Robert J. Bryan ordered Campbell into custody immediately, and said “There is a substantial question about your remorse… On one level you were a highly competent public servant, but you had a dark side that allowed you to lose your moral compass.”
“At a time when housing resources in our community are in historically high demand, this defendant stole from the poor and vulnerable who most needed assistance,” said U.S. Attorney’s Office Criminal Chief Sarah Vogel. “Her greed meant there were less resources for the elderly, the disabled, the veterans, and the children in Pierce County who count on the Housing Authority to provide safe and secure shelter.”
According to records filed in the case, Campbell was a 20-year trusted employee of the Pierce County Housing Authority, and repeatedly betrayed that trust over a 3-year period. Campbell initiated wire transfers of as much as $500,000 from Pierce County Housing Authority accounts to her own bank accounts. One of the transfers was in connection with the purchase of land in Oklahoma. Campbell also prepared and submitted false invoices to PCHA and made them appear they were from an outside vendor. PCHA paid the invoices, and the money went into Campbell’s bank accounts. Campbell covered up her fraud by labeling these fraudulent charges as “investments,” “insurance,” or “maintenance” in the PCHA accounting records.
According to the plea agreement, Campbell used the money to pay for land and improvements to that property in Oklahoma, for improvements to her home in Lakewood, Washington, and for travel including trips to Las Vegas and the chartering of a private jet. She used some of the money for the purchase of two cars. She also diverted large amounts of the money for gambling and internet gaming.
The Washington State Auditor’s Office uncovered the financial irregularities, and Campbell’s employment was terminated by the Housing Authority on August 8, 2019.
Campbell was arrested in March 2020 in Redbird, Oklahoma.
In asking for a 5-year prison sentence, prosecutors noted that Campbell had abused her position of trust, and even brought her co-workers under suspicion. “Then, once it became clear that Ms. Campbell acted alone, the employees felt blame and shame for failing to stop their boss’s criminal acts…. This money was intended to expand and improve housing options in our community.… The crime was a devastating theft from vulnerable residents of Pierce County based on greed,” Assistant United States Attorney Brian Werner wrote in his sentencing memo.
One of the Commissioners of the Housing Authority Board spoke at the hearing saying, “The fraud limits the ability of the authority to assist the community.” Commissioner Mark Martinez also said Campbell had not explained what happened to about 60 percent of the stolen money and had turned over few assets voluntarily, forcing the Housing Authority to spend time and money trying to get those assets via civil litigation.
Due to some of the amounts recovered in the civil litigation, the amount of restitution Campbell still owes is $5,299,976.
The case was investigated by the FBI and HUD-OIG. The case was prosecuted by Assistant United States Attorney Brian Werner.
Former Wind Farm Manager Sentenced to 3 Years in $550,000 Embezzlement SchemeRead the Press Release
A San Angelo man who embezzled more than half a million dollars from a wind farm was sentenced yesterday to more than three years in federal prison, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Arturo Salazar III, 41, a former site manager for a Vestas-American Wind Technologies wind farm, pleaded guilty to four counts of unauthorized transactions with access devices in May. He was sentenced Thursday to 37 months in federal prison by U.S. District Judge James Wesley Hendrix, who ordered him to pay $359,810 in restitution to the company.
According to court documents, Mr. Salazar admitted that he teamed up with a conspirator to create a sham business, BT Machine, with the sole purpose of creating fraudulent invoices.
From 2016 to 2019, the pair created hundreds of bogus invoices for nonexistent equipment BT Machine purportedly leased to Vestas. The conpsirator sent each invoice – complete with a BT “logo” – to Mr. Salazar at his work email address; Mr. Salazar then paid each one with his Vetas credit card. He and the other individual then split the money.
Mr. Salazar also used Vestas company credit cards to make unauthorized purchases totaling approximately $80,000. These personal purchases included products from Amazon as well as a $50,000 skid steer loader, a $18,900 universal terrain vehicle, and a $7,900 dump trailer.
From 2016 to 2019, Mr. Salazar admitted to defrauding Vestas out of more than $550,000. To avoid detection, he kept each transaction under the $2,000 limit set by his employer.
The Federal Bureau of Investigation’s Dallas Field Office, San Angelo Resident Agency conducted the investigation. Assistant U.S. Attorney Ann Howey prosecuted the case.