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13 October 2021
Federal Jury Convicts Defendants in Nutech Energy Resources Securities FraudRead the Press Release
Acting United States Attorney Bob Murray announced today that a federal jury in Cheyenne returned guilty verdicts against a Pennsylvania man and two Florida men related to a stock fraud involving NuTech Energy Resources Inc., a company that claimed to operate coalbed-methane wells in Wyoming. Justin Herman, 50, of Canonsburg, Pennsylvania, and Charles “Chuck” Winters Jr., 61, of Bradenton, Florida, were convicted of fraud and identity theft crimes. Attorney Ian Horn, 67, of Brandon, Florida, was acquitted of the charged fraud crimes but convicted of making a false statement to the grand jury.
According to court documents and evidence presented at trial, Herman and Winters conspired with Robert “Bob” Mitchell, who pleaded guilty earlier this year, to pump and dump NuTech stock. A “pump and dump” is a form of securities fraud where the conspirators manipulate demand for a stock and the stock’s price, and then sell their worthless shares of the stock to the public at the artificially high price. In this case, the conspirators bought control of a publicly traded shell company called EcoEmissions Solutions Inc. and changed the company’s name to NuTech Energy Resources, whose stock was sold under the ticker symbol NERG. The conspirators released information online to create a false image for NuTech as a company located in Gillette that was operating gas wells in Wyoming using a patented technology. In reality, NuTech had no business, no revenue, and no paid employees in Wyoming or elsewhere.
As part of the conspiracy, Herman and Winters used altered, backdated, and forged documents to acquire 13 billion free-trading shares of NuTech common stock. The conspirators then artificially inflated the market price of NuTech common stock by manipulative trading and by releasing to the public false and misleading information about NuTech’s business prospects. When the market price increased based on this false information, the conspirators turned around and sold their worthless NuTech shares to unwitting investors in the public market, including investors in Wyoming and around the world.
Ian Horn is a Florida-licensed attorney. As part of the investigation, Horn was subpoenaed to testify before the grand jury in January 2019 because his name appeared on documents related to NuTech and because the money used by Mitchell and Herman to buy control of EcoEmissions was transferred through Horn’s bank accounts. The jury found that Horn lied during his grand jury testimony about NuTech-related email communications that he falsely claimed he had lost and could not access even though he still had access to his email and was forwarding relevant email messages to Herman in December 2018.
Herman and Winters were each found guilty of conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud, and multiple counts of aggravated identity theft. Herman faces a mandatory two-year prison sentence and could be sentenced to a maximum of 53 years in prison. Winters also faces a mandatory two-year prison sentence and could be sentenced to a maximum of 49 years in prison. Horn was found guilty of making a false statement to the grand jury and could be sentenced to a maximum of 5 years in prison. The defendants are scheduled to be sentenced by the Honorable Alan B. Johnson, United States District Court Judge, in Cheyenne on January 5, 2022.
Bob Mitchell is scheduled to be sentenced by Judge Johnson on October 15, 2021. Mitchell could be sentenced to a maximum of 25 years in prison.
“These convictions are the direct result of a diligent investigation by a hardworking Postal Inspector and our partners at the Department of Interior Office of Inspector General and the U.S. Attorney’s Office for the District of Wyoming,” said Ruth Mendonça, Inspector in Charge of the Denver Division, which includes Wyoming. “Working together, their perseverance unraveled the defendants’ complex scheme to defraud over 2,300 victims and delivered the justice that each victim deserved. We are proud of the efforts to uphold the mission of the U.S. Postal Inspection Service to protect postal customers and consumers from fraudsters,” said Mendonça.
This case was investigated by the U.S. Postal Inspection Service and the U.S. Department of Interior’s Office of Inspector General. Assistant United States Attorneys Eric Heimann and Thomas Szott prosecuted the defendants. The Criminal Prosecution Assistance Group of the Financial Industry Regulatory Authority (FINRA) assisted in the investigation and prosecution.
Duluth Souvenir and T-Shirt Store Owner Pleads Guilty to Tax EvasionRead the Press Release
DULUTH, Minn. – A Duluth man pleaded guilty today to tax evasion for failing to report his business revenue and income to the IRS, announced Acting U.S. Attorney W. Anders Folk.
According to court documents, between June 2019 and April 2020, Shimon Shaked, 57, owned and operated several t-shirt and souvenir shops in Duluth’s Canal Park tourist zone, including I Love Duluth, I Love Duluth 2, Up North-The Good Life, and the Lake Life (the “Duluth Stores”). Shaked operated the Duluth Stores under a holding company called ALMS18, LLC, which he formed in 2012. Although Shaked owned, operated, and controlled ALMS18, LLC, he listed his teenage daughter as the nominal owner in order to hide and evade taxes on income he received from the company. In 2017, Shaked opened I Love Marquette, another souvenir store located in Marquette, Michigan, operated under the company SkyMqt, LLC.
According to his guilty plea, Shaked evaded the assessment of taxes on the income he earned through his Duluth and Michigan stores by failing to report the full revenue and income to the IRS. Specifically, Shaked reported the credit card sales for his stores, but failed to report or pay taxes on most of the cash sales. To further conceal his income, Shaked used the cash from the unreported cash sales to pay for personal expenses and to pay some of his employees' overtime wages in cash. In doing so, Shaked failed to account for and pay over to the IRS some or all of the required federal payroll taxes due and owing for those employees. In total, Shaked evaded paying approximately $620,362 in taxes.
Shaked entered his guilty plea earlier today before Chief U.S. District Judge John R. Tunheim. A sentencing hearing has been scheduled for February 15, 2022.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS.
Assistant U.S. Attorneys Joseph H. Thompson and Angela M. Munoz are prosecuting the case.
Drug User Sentenced to Federal Prison for Unlawfully Possessing a GunRead the Press Release
A man involved in a traffic incident where two drivers called police on each other was sentenced October 12, 2021, to more than three years in federal prison.
Trever Carl Christopherson, age 32, from Cedar Rapids, Iowa, received the prison term after a May 25, 2021 guilty plea to being a drug user in possession of a firearm.
Christopherson was involved in a traffic incident on January 1, 2020, during which he and the other driver reported each other to police. While investigating the incident, officers recovered a gun in Christopherson’s car. Christopherson admitted during his plea hearing that he was a methamphetamine user at the time. Christopherson was convicted of felony theft and extortion relating to separate incidents following the recovery of the firearm. During a separate investigation, Christopherson was found in possession of a shotgun. Christopherson had sawed‑off a portion of the barrel of the shotgun.
Christopherson was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Christopherson was sentenced to 37 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Christopherson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Buchanan County Sheriff’s Office, the Washington County Sheriff’s Office, the Cedar Rapids Police Department, and the North Liberty Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-cr-48.
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Dominican National Sentenced for Illegal Reentry and Money LaunderingRead the Press Release
BOSTON – A Dominican national was sentenced yesterday in federal court in Boston for participating in a money laundering conspiracy that laundered or attempted to launder between $150,000 and $250,000 worth of drug sales proceeds and illegally reentering the United States after being deported.
Rafael Pascal, 57, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to four years in prison. Pascal will be subject to deportation upon completion of his sentence. On July 12, 2019, Pascal pleaded guilty to illegal reentry of a deported alien and money laundering conspiracy.
In January 2002, Pascal was deported to the Dominican Republic. In May 2012, Pascal was located in Palm Beach County, Fla., after illegally reentering the United States. Pascal subsequently pleaded guilty to illegal reentry and was deported in 2013. At some point thereafter, Pascal again illegally reentered the United States prior to being arrested in May 2018 on state drug charges. A fingerprint match at the time of his arrest identified Pascal as a previously deported alien and he was taken into federal custody and charged in this case.
From approximately March 2017 through at least July 2017, Pascal participated in a conspiracy to launder money obtained from the sale of controlled substances. Pascal obtained cash proceeds from drug sales from various individuals and then delivered the money to individuals who were responsible for laundering the money. On one occasion, Pascal picked up and delivered $59,060 to an undercover agent. Pascal also arranged for drug sales proceeds in New York to be picked up and laundered. Pascal was held responsible for the laundering of more than $200,000 in drug proceeds.
Acting United States Attorney Nathaniel R Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Todd Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police, made the announcement today. The Wakefield, Arlington, Ipswich, Somerville and Boston Police Departments provided valuable assistance in the investigation. Assistant U.S. Attorneys James E. Arnold and Philip C. Cheng of Mendell’s Narcotics and Money Laundering Unit prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Dominican National Sentenced for Fentanyl PossessionRead the Press Release
BOSTON – A Dominican national previously residing in Lawrence was sentenced yesterday for fentanyl possession.
Esteban Nivar Araujo, 39, was sentenced by U.S. District Court Judge Indira Talwani to two years in prison and two years of supervised release. Nivar Araujo may be subject to deportation proceedings upon completion of his sentence. On May 13, 2021, Nivar Araujo pleaded guilty to one count of possession with intent to distribute 40 grams or more of fentanyl.
In July 2019, a search of Nivar Araujo’s residence resulted in the seizure of over 50 grams of a substance containing fentanyl and drug distribution paraphernalia. The fentanyl was packaged in multiple bags and stored alongside hundreds of grams of a substance likely used to dilute the fentanyl for resale.
This case is part of a coordinated enforcement operation in the Merrimack Valley called “Devil’s Highway.” The operation targeted the distribution of opioids, including fentanyl and heroin, and resulted in charges against approximately 40 people for federal drug offenses, with at least a dozen more individuals facing state charges.
Acting United States Attorney Nathaniel R. Mendell and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division made the announcement. Assistance was provided by the Massachusetts State Police and the Andover Police Department. Assistant U.S. Attorney Charles B. Weinograd of Mendell’s Office prosecuted the case.
District Man Sentenced to 10 ½ Years in Prison for Armed Robbery and Earlier ShootingRead the Press Release
WASHINGTON – Davon Robinson, 28, of Washington, D.C., was sentenced today to a 10 ½-year prison term for robbing a fast-food restaurant in Northeast Washington at gunpoint earlier this year and shooting a man at close range on a busy street in Southeast Washington last year, announced Acting U.S. Attorney Channing D. Phillips.
Robinson pleaded guilty in June 2021, in the Superior Court of the District of Columbia, to armed robbery, assault with a dangerous weapon, and firearms offenses. The plea, which was contingent upon the Court’s approval, called for an agreed-upon sentence of 10 ½ years. The Honorable Robert D. Okun accepted the plea and sentenced Robinson accordingly. Following his prison term, Robinson will be placed on five years of supervised release.
The armed robbery took place at about 12:05 p.m. on Feb. 25, 2021, at a Chick-fil-A in the 1400 block of Maryland Avenue NE. According to the government’s evidence, Robinson entered the restaurant while holding a pistol with an extended magazine. He then brandished the weapon at multiple employees and forced them back. He grabbed the arm of one employee and ordered the worker to open the cash register, threatening to kill the worker if his orders were not followed. Robinson then grabbed a handful of bills and attempted to flee. However, as Robinson exited the restaurant, he was shot by an on-duty Special Police Officer. Robinson was apprehended and taken to a hospital for a gunshot wound to the face. Police recovered the pistol, which was later determined to be a 9 mm “ghost gun” loaded with 22 rounds of ammunition.
The shooting took place on Aug. 21, 2020, in front of a gas station in the 3000 block of Martin Luther King Jr. Avenue SE. According to the government’s evidence, Robinson approached the victim at approximately 8 p.m. They began a conversation and, soon afterward, Robinson stepped back, pulled out a pistol, and shot the victim once at close range. The victim was struck in the hip and was admitted to the hospital for a gunshot wound. The incident was captured on surveillance video and Robinson was identified through DNA that was recovered from a hat he dropped while fleeing the scene.
In announcing the sentence, Acting U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department (MPD). He also acknowledged the efforts of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialist Alesha Matthews and Assistant U.S. Attorney Miles E. Janssen, who is prosecuting both matters.
Department of Justice Names Philadelphia as One of Ten New Public Safety Partnership SitesRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams, City of Philadelphia Mayor Jim Kenney, and Philadelphia Police Commissioner Danielle Outlaw announced that the City of Philadelphia was designated by the Justice Department as one of ten new National Public Safety Partnership (PSP) sites that will work with the Department, local agencies and community organizations to reduce violence in areas with elevated crime rates. PSP is a Justice Department-wide initiative that enables communities to receive coordinated training and technical assistance and an array of resources from the Department’s programmatic and law enforcement components.
After decades of falling crime rates, many cities across the county, including Philadelphia, have seen a dramatic increase in violent crime rates. To address the increase in violence, specifically gun violence, on May 26, 2021, the Attorney General announced the Department’s new Comprehensive Strategy for Reducing Violent Crime. The addition of ten new PSP sites is one facet of that strategy; the new sites are: Antioch, California; Aurora, Colorado; Chattanooga, Tennessee; Gary, Indiana; Louisville, Kentucky; North Charleston/Charleston, South Carolina; Philadelphia, Pennsylvania; Phoenix, Arizona; Richmond, Virginia; and Shreveport, Louisiana.
The PSP program began as a pilot in 2014 and was formally adopted by the Department as an intensive training and technical assistance protocol in June 2017. Sites must apply to participate. To be considered for selection, a site must have sustained levels of violence that far exceed the national average and demonstrate a commitment to reducing crime and enhancing community engagement.
“I am grateful to the Department of Justice for selecting Philadelphia to participate in the PSP program,” said Acting U.S. Attorney Jennifer Arbittier Williams. “PSP emphasizes the importance of law enforcement and community partnerships, essential factors to achieving comprehensive and sustainable approaches to Philadelphia’s violent crime epidemic and a theme we have repeated again and again this year. PSP, with its vast support and resources, joins a growing list of initiatives through which the federal government seeks to assist the Philadelphia Police Department in its mission to reduce and combat violent crime, including the ‘All Hands On Deck’ effort and the ATF’s NIBIN Mobile Unit. Please take heart, Philadelphia; we are continuing to fight and will turn the tide of violence.”
“We are pleased to announce that the Philadelphia Police Department has been selected to participate in the Department of Justice’s Public Safety Partnership. Public Safety is the responsibility of everyone—not just law enforcement. The PSP will not only assist the PPD in ensuring that implementing the latest best practices, but it will also aid with collaboration between the department and other stakeholders,” said Mayor Jim Kenney. “This is a big win for our city, and it comes at no cost to our taxpayers.”
“I’m encouraged that Philadelphia was chosen to take part in the DOJ's Public Safety Partnership—a program that will ensure the Philadelphia Police Department’s remains a leader in modern policing and will help protect our city,” said Police Commissioner Danielle Outlaw. “As a learning organization, our department strives for best practices and equitable policing. PSP will help us improve our current practices, policies, and procedures so that our organization is in a better position to serve the community not just today, but far into the future.”
"Violence—gun violence in particular—has taken a heavy toll on communities across the country, and its impact has been felt most deeply in neighborhoods where resources have always been scarce and justice has historically been elusive,” said Amy L. Solomon, Acting Assistant Attorney General of the Justice Department’s Office of Justice Programs, whose Bureau of Justice Assistance administers the PSP initiative. “We are proud to join local leaders and our partners from across the Department of Justice as we work together to stem the tide of violent crime in these hard-hit communities.”
“From five to now 50 jurisdictions in seven years, PSP has taught the Department a new way to work with communities. We have learned that it is only by leveraging the power of community and using all our collective resources and dedicating all our efforts that we will reduce crime,” said BJA Acting Director Kristen Mahoney. “We look forward to partnering with the 10 new sites to achieve what we are all working toward—safe places to live and work.”
About the PSP Team
The PSP team supports local law enforcement and other key stakeholders in developing each site’s capacity to address its unique violent crime challenges to enhance public safety. Through a collaborative approach and data-driven decision making, the PSP approach ensures that local resources are maximized and federal assets are leveraged where they are most needed. Implemented in 2014 as a pilot program, PSP has served more than 40 sites nationwide. The PSP team’s work is driven by local needs and priorities focused on increasing capacities to reduce violent crime and increase community engagement.
Department of Justice Awards over $270,000 to “Pa Coalitions Against Rape and Domestic Violence” to Combat Sexual Assault and Domestic ViolenceRead the Press Release
HARISBURG –Acting U.S. Attorney Bruce D. Brandler announced that the Department of Justice’s Office of Violence Against Women (OVW) has awarded $172,076 to “PA Coalition Against Rape,” located in Enola, Pennsylvania, to help combat sexual assault, and $98,706 to “PA Coalition Against Domestic Violence,” located in Harrisburg, Pennsylvania, to help combat domestic violence.
OVW’s grant to “PA Coalition Against Rape” (PCAR) will build on and sustain on PCAR’s prior efforts to enhance services to under and unserved communities impacted by sexual harassment, abuse, and assault. Funding from this grant helps support local efforts to improve services and infrastructure to better serve all members of communities impacted by sexual violence. The grant also supports internal workgroups, staff learning opportunities, ongoing technical assistance, and collaboration with network of rape crisis centers and statewide partners. This funding affords PCAR the opportunity to build internal racial justice and language access work by continuing to work in partnership with culturally specific organizations.
OVW’s grant to “PA Coalition Against Domestic Violence” (PCADV) is foundational to continuing to support and grow PCADV’s primary initiatives that support the core of its mission. The funding allows for sustainability of key training and technical assistance, and public awareness activities that support core initiatives at the statewide and local levels. The initiatives include:
- Impact of domestic violence on children;
- Intimate partner violence in later life (IPVILL);
- Helping underserved populations;
- Providing safe housing;
- Ending abuse in the LGBTQ+ community;
- Economic justice and empowerment;
- The intersection of domestic violence and animal abuse;
- Lethality Assessment Program (LAP);
- Civil Legal Representation (CLR); and
- Medical Advocacy.
“The awards we are making this year will touch the lives of millions of survivors of violence and help our nation end these devastating crimes,” said Allison Randall, OVW Acting Director. “OVW is proud to be the leading federal voice in the country’s fight against sexual and domestic violence.”
“This funding provides the Coalition with important support of its infrastructure, which is rare but extremely necessary to ensure PCAR has the capacity to provide support for local sexual assault services programs,” stated COO Joyce Lukima.
“The DOJ OVW State Coalition grant funding is essential for sustaining our fundamental projects,” said Susan Higginbotham, CEO, PCADV. “It funds state-level training and technical assistance for intersectional initiatives and resources that enable our local programs to serve more survivors, especially those in underserved communities.”
OVW provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
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Convicted Sex Offender Sentenced to 15 Years in Federal Prison for Child Exploitation CrimesRead the Press Release
BOWLING GREEN, KY – Barret Lawrence, 39, of Franklin, Kentucky, was sentenced by United States Chief District Judge Greg N. Stivers today to 15 years in prison followed by a life term of Supervised Release for receipt and attempted receipt of child pornography, accessing with the intent to view child pornography, and possession of child pornography. There is no parole in the federal system.
“I commend HSI, the Franklin Police Department, and the Simpson County Sheriff’s Office for their outstanding work in this case,” stated Acting U.S. Attorney Michael A. Bennett. “As a result of their efforts, our children are safer, and a dangerous individual will now spend the next 15 years in prison followed by a life term of federal supervision.”
“Our HSI agents are committed to protecting children from exploitation by predators involved with the production, distribution and possession of child sexual abuse material,” said HSI Nashville Special Agent in Charge Jerry C. Templet, Jr. “The result of this investigation shows that perpetrators of these heinous crimes will be punished with lengthy prison sentences for their actions.”
According to the Plea Agreement and other Court documents in the case, Lawrence was previously convicted in September 2000 in the Warren Circuit Court of Attempted Rape in the First Degree of a three-year old child and was released from incarceration on that offense in November 2010. Law enforcement became aware of Lawrence’s most recent criminal activity when they discovered that, on May 21, 2019, he had accessed a website that had an explicit focus on the facilitation of sharing child abuse material with an emphasis on BDSM, hurtcore, gore and death-related material. A federal search warrant subsequently executed at Lawrence’s residence revealed that Lawrence had received and possessed numerous additional images and videos of child pornography, and that he had accessed some of those images at least as early as 2014.
The United States Department of Homeland Security, Homeland Security Investigations (HSI) with the assistance of the Franklin Police Department and the Simpson County Sheriff’s Office investigated the case.
Assistant U.S. Attorneys Jo E. Lawless and Stephanie M. Zimdahl prosecuted the case.
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This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Convicted Felon Pleads Guilty to Gun ChargeRead the Press Release
BIRMINGHAM, Ala. – A convicted felon pleaded guilty today for being a felon in possession of a firearm, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms, and Explosives Acting Special Agent in Charge Mickey French.
Shane Kirby Green, 48, of Fairfield, pleaded guilty to being a felon in possession of a firearm before U.S. District Judge Karon O. Bowdre.
According to the plea agreement, on July 1, 2020, Jefferson County Sheriff’s deputies were dispatched to a gas station in Birmingham on a complaint of a person with a gun. Upon arrival, deputies saw Green standing at a gas pump talking to two other individuals. The deputies asked Green to walk over to them, but he refused. Green initially fled from deputies, but was caught after he tripped over a curb. Green was uncooperative with deputies when they were trying to handcuff him. During the arrest, deputies saw a gun in Green’s jacket pocket. Green tried to get the gun out of his pocket, but a deputy was able to get the gun, a Rossi .38 caliber revolver, first.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Green has 12 prior felony convictions, including receiving stolen property, several instances of unlawful possession of marijuana, criminal possession of forged instrument, promoting prison contraband, unlawful possession of controlled substance by fraud, and several instances of unlawful possession of controlled substance.
Green faces a maximum penalty of 10 years in prison for being a felon in possession of a firearm.
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.
The ATF investigated the case, along with the Jefferson County Sheriff’s Office. Assistant U.S. Attorney Kristy Peoples is prosecuting the case.
Convicted Felon Pleads Guilty to Gun ChargeRead the Press Release
BIRMINGHAM, Ala. – A convicted felon pleaded guilty today for being a felon in possession of a firearm, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms, and Explosives Acting Special Agent in Charge Mickey French.
Cedric Dewayne Young, 33, of Fairfield, pleaded guilty to being a felon in possession of a firearm before U.S. District Judge Anna M. Manasco.
According to the plea agreement, on November 23, 2020, Birmingham Police officers were conducting an investigation at a residence in Birmingham. The complainants advised the officers that Young pointed a firearm at them. The complainants gave a description of the suspect’s vehicle. The officers issued a BOLO (“be on the lookout”) for the suspect vehicle. A short time later, an officer saw a vehicle that matched the description of Young’s vehicle at a convenience store on Jefferson Avenue SW. Two officers made contact with Young inside the store. Young was uncooperative with officers during his arrest. When officers finally got control of Young, he refused to move his right hand from under his body. Officers found a loaded Taurus 9mm pistol in the waistband of Young’s shorts.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Young has two felony convictions, including discharging a gun into an occupied building or vehicle, and assault.
Young faces a maximum penalty of 10 years in prison for being a felon in possession of a firearm.
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.
The ATF investigated the case, along with the Birmingham Police Department. Assistant U.S. Attorney Kristy Peoples is prosecuting the case.
Convicted Felon Connected to Multiple Guns Sentenced to over Six Years in Federal PrisonRead the Press Release
A convicted felon who unlawfully possessed a gun was sentenced October 12, 2021, to more than six years in federal prison.
Wonyae Black, age 24, from Waterloo, Iowa, received the prison term after a guilty plea to one count of being a felon in possession of a firearm.
Information at sentencing showed that between March and June 2020, Black was connected to three incidents involving guns. First, in March 2020, Black, while armed with a handgun, kicked down the door of a residence, pointed a gun at the occupant, and stole property from the residence. Second, in June 2020, a gun was recovered at the scene of a shooting in Waterloo. Black’s fingerprint was found on a round of ammunition in the gun.
Third, on June 18, 2020, officers from the Waterloo Police Department attempted to stop the car Black was driving. Rather than stop, Black fled, reaching speeds more than 25 mph over the speed limit. Black eventually crashed into another occupied car, sending both cars careening into a tree. The tree fell over and landed on two unoccupied cars. No one was hurt. Black got out of his car and fled on foot. Officers caught up to him and saw that his hands were over the top of a fence. On the other side of the fence, officers found a bag containing a handgun and marijuana.
Black has multiple prior criminal convictions, including convictions for assault causing bodily injury, carrying weapons, theft, interference with official acts, and felon in possession of a firearm.
Black was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Black was sentenced to 78 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime
Black is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case is being prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by a Federal Task Force composed of the Waterloo Police Department, Federal Bureau of Investigation, and Bureau of Alcohol Tobacco and Firearms assisted by the Black Hawk County Sheriff’s Office and Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-2043.
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Connecticut Employment Contractor Pays $600K to Resolve Federal False Claims Act AllegationsRead the Press Release
The United States Attorney’s Office today announced that it has entered into a settlement agreement with New Britain-based CW Resources Inc. to resolve allegations that CW Resources submitted claims that falsely certified compliance with program requirements and failed to maintain adequate medical documentation of significantly disabled employees pursuant to the AbilityOne Program.
The U.S. AbilityOne Commission is an independent federal agency that administers the AbilityOne Program, which provides employment opportunities for people who are blind or have significant disabilities in the manufacture and delivery of products and services to the federal government. To qualify for contracts administered by the AbilityOne Commission, CW Resources was required by federal regulation to employ significantly disabled individuals for 75 percent of its direct labor hours. To maintain compliance, CW Resources was required to submit annual certifications certifying such compliance.
It is alleged that CW Resources certified to the federal government that its direct labor hour figures were true and accurate when, in fact, the direct labor hours actually worked by significantly disabled individuals were much lower and were not supported by adequate medical documentation.
To resolve allegations under the False Claims Act, CW Resources has agreed to pay the federal government $600,000 and enter into a compliance agreement.
“These false claims damaged an important government program that provides employment opportunities for people who are blind or have significant disabilities, and we hope that this settlement and the funds recovered send a significant deterrent message,” said Acting U.S. Attorney Leonard C Boyle. “Protecting the U.S. Treasury against false claims is a priority of this office and the Justice Department. I thank CW Resources for cooperating fully during the extensive investigation of this matter and we are confident that the compliance program incorporated into this agreement by the AbilityOne Commission will have a positive impact.”
“Protecting the integrity of the procurement process is a top priority for the Department of Defense (DoD) Office of Inspector General Criminal Investigative Service (DCIS),” stated Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office. “Organizations that contract with the DoD under the AbilityOne Program are expected to fulfill the promises they make to the DoD and the significantly disabled individuals the program is intended to employ.”
“This settlement represents the government’s commitment to hold any AbilityOne contractor accountable for noncompliance and ensure that federal dollars intended to employ workers who are blind or have significant disabilities are indeed used for that purpose” said Acting Inspector General Stefania Porter of the U.S. AbilityOne Commission. “Working with the United States Attorney’s Office and our investigative and law enforcement partners, the AbilityOne Office of Inspector General protects the integrity and public trust in the largest employment program in the nation of blind and significantly disabled workers.”
This investigation was conducted by the Office of the Inspector General for the U.S. AbilityOne Commission, the Department of Defense Office of Inspector General Defense Criminal Investigative Service, the Defense Contract Audit Agency, and the U.S. Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney William M. Brown, Jr.
Clovis CPA Indicted for Stealing over $1 Million from a BankRead the Press Release
FRESNO, Calif. — On Oct. 7, 2021, a grand jury returned an indictment against Kenneth Gould, 65, of Clovis, charging him with bank larceny for stealing over $1 million from a federally insured financial institution, Acting U.S. Attorney Phillip A. Talbert announced.
The indictment was unsealed today, and Gould will be arraigned tomorrow on Oct. 14.
According to court documents, Gould was a CPA in Clovis who owned and operated a payroll services company. From October 2017 through March 2018, he initiated over 90 fraudulent Automated Clearing House (ACH) payments totaling over $20 million from one of his clients’ accounts to his payroll company’s account at the same bank. An ACH payment is a type of Electronic Funds Transfer used to move money from one bank account to another account.
Based on its prior business relationship with Gould, the bank credited the fraudulent ACH payments to the payroll company’s account before it realized there were insufficient funds to cover the payments, denied them, and attempted to recover its money. Over $1 million of the credited funds, however, was gone because Gould withdrew the money while the payments were pending. Gould withdrew the money in cash, cashier’s checks, and online transfers to other accounts to which he had access. The bank made several demands to Gould for repayment. He repeatedly promised to repay the funds, but never did so.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Joseph D. Barton is prosecuting the case.
If convicted, Gould faces a maximum statutory penalty of 10 years in prison and a fine of up to $250,000. Any sentence, however, would be determined at the discretion of the court after considering any applicable statutory factors and the Federal Sentencing Guidelines, which take into account several variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Chinle Man Sentenced to over 18 Years for Second Degree Murder in Domestic Violence CaseRead the Press Release
PHOENIX, Ariz. – Last week, Roderrell Boyd Charley, 33, of Chinle, Arizona, was sentenced by U.S. District Judge Douglas L. Rayes to 222 months of imprisonment. Charley previously pleaded guilty to Second Degree Murder.
Between October 7 and 8, 2019, Charley beat the victim to death with his fists and feet. Family members heard Charley screaming and arguing with the victim on the night of October 7. On the morning of October 8, Charley told his sister that the victim was no longer breathing and left the scene. Charley’s mother called the police, who located the victim lying on the road. The victim was pronounced dead on arrival at the emergency room. The victim died of blunt trauma, and had serious internal injuries, multiple fractures, and extensive bruising on her face and body. Charley is an enrolled member of the Navajo Nation.
The Federal Bureau of Investigation and the Navajo Nation Division of Public Safety conducted the investigation in this case. Assistant U.S. Attorneys Jennifer E. LaGrange and Sharon K. Sexton, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-21-08011-PCT-DLR (MHB)
RELEASE NUMBER: 2021- 070_Charley# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Chicago Woman Found Guilty of Possession with Intent to Distribute 4 Kilos of CocaineRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that a federal jury has found Tashe Goins, 32, of Chicago, Illinois, guilty of possession with intent to distribute cocaine after a two-day trial.
According to court records and evidence presented at trial, on June 16, 2020, Goins was traveling from Chicago, IL to Pittsburgh, PA, when she was stopped by officers with the Ohio State Highway Patrol (OSP) for a traffic violation on Interstate 80 in Trumbull County. Officers identified Goins as the sole driver of the vehicle, and a police canine unit alerted officers to the presence of a narcotic odor coming from inside of the vehicle. Officers then searched the vehicle and discovered approximately four kilograms of cocaine inside a blue suitcase. Goins was arrested and charged with possession with intent to distribute controlled substances.
Goins will be sentenced on January 26, 2022.
The investigation preceding the indictment was conducted by DEA and the Ohio State Patrol. This case is being prosecuted by Assistant U.S. Attorney Yasmine Makridis and Bryson Gillard.
Chicago Man ChargedRead the Press Release
HAMMOND- Rajesh Kanuru, of Chicago, Illinois, has been charged by way of an Indictment with wire fraud and embezzlement of a bankruptcy estate, announced United States Attorney Clifford D. Johnson.
According to documents in this case, Kanuru was an attorney with a practice located in Chicago, Illinois. It is alleged that from March 2012, and continuing through on or about August 2018, Kanuru, with the intent to defraud, knowingly devised, intended to devise, and participated in a scheme to defraud and to obtain money by means of materially false and fraudulent pretenses, representations, and promises. It is alleged that the purpose of the scheme was to defraud his clients, their bankruptcy estate, the bankruptcy trustee, and the U.S. Bankruptcy Court for the Northern District of Indiana and to obtain money for his own personal use and benefit. The total amount of this alleged fraud is $348,388.50.
The United States Attorney’s Office emphasizes that an Indictment is merely an allegation, and that all persons are presumed innocent until and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the Judge after a consideration of federal statutes and the Federal Sentencing Guidelines.
The investigation is being conducted by the United States Postal Inspection Service in collaboration with the Northern Indiana Bankruptcy Fraud Working Group, out of Region 10 of the Office of the United States Trustee. The case is being prosecuted by Assistant U. S. Attorneys Luke Reilander and Jennifer Chang.
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Cape Coral Fentanyl Dealer Sentenced to 20 Years in PrisonRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced David Levon Massey (32, Cape Coral) to 20 years in federal prison for possessing fentanyl with the intent to distribute. Massey had pleaded guilty on July 7, 2021.
According to court documents, in February 2020, Massey was released from federal prison after serving more than nine years for organizing a prescription pill distribution ring. Shortly after his release, law enforcement received several tips that Massey was again distributing drugs. In October 2020, during the execution of a search warrant at Massey’s residence, law enforcement officers recovered nearly 100 grams of fentanyl, two firearms, and thousands of dollars in cash.
This case was investigated by the United States Drug Enforcement Administration and the Cape Coral Police Department. It was prosecuted by Assistant United States Attorney Michael V. Leeman.
Caldwell Man Pleads Guilty to Possession with Intent to Distribute MethamphetamineRead the Press Release
BOISE – A Caldwell man pleaded guilty to possessing methamphetamine with the intent to distribute it to others.
According to court records, Jesus Enrique Morales, 30, of Caldwell, was pulled over on June 9, 2021, for failing to maintain his lane. During the Idaho State Police trooper’s routine license and registration check, he discovered that Morales had an outstanding warrant for his arrest. The trooper asked Morales to step out of the vehicle so he could place him under arrest. Morales stepped out of his vehicle and immediately began to argue with the officer about his pending arrest. That argument turned into a physical altercation and after a prolonged fight on the ground, Morales ran towards the freeway in the direction of oncoming traffic. The trooper tased Morales, dragged him off the road to ensure that he would not be struck by any oncoming traffic, and placed him under arrest. As the trooper and other law enforcement officers waited for an ambulance to arrive to check on Morales, a police dog, which was trained and certified to detect the odor of controlled substances, positively alerted to the odor of a controlled substance in Morales’ vehicle. A subsequent search of the vehicle uncovered 345.4 grams of methamphetamine. Morales has admitted that he possessed the methamphetamine with the intent to distribute it to others.
Morales is scheduled to be sentenced on January 12, 2022 and faces a statutory mandatory minimum sentence of at least five years and a maximum sentence of forty years in federal prison, a five million dollar fine, and at least four years of supervised release. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the investigation by troopers with Idaho State Police District 3, Meridian, which led to charges. “The community needs to know that methamphetamine is a very dangerous drug. Meth use is associated with numerous serious physical problems: rapid heart rate, increased blood pressure, and damage to the small blood vessels in the brain, all of which can lead to stroke. Chronic use of the drug can result in inflammation of the heart lining. Overdoses can cause hyperthermia (elevated body temperature), convulsions, and death,” Gonzalez added.
This case was prosecuted by the Special Assistant U.S. Attorney hired by the Ada County Prosecuting Attorney’s Office with funds provided by the High Intensity Drug Trafficking Areas (HIDTA) program. HIDTA is part of the Office of National Drug Control Policy (ONDCP) created by Congress with the Anti-Drug Abuse Act of 1988. It provides assistance to federal, state, and local law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States. Idaho is part of the Oregon-Idaho HIDTA. The Idaho HIDTA is a collaboration of local, multi-jurisdictional law enforcement drug task forces, and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada, Canyon, Bannock, Kootenai, and Malheur Counties.
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Buckeye and West Shore Pipelines to Pay $8.7 Million in Civil Penalties and Damages for Injuries to Natural Resources Resulting from 2010 Crude Oil Spill near Lockport, IllinoisRead the Press Release
The owner and operator of a pipeline have agreed to pay a $1.5 million civil penalty under the Clean Water Act and $7.2 million in damages and mitigation to resolve federal and state Oil Pollution Act and Clean Water Act claims arising from a 2010 spill of over 1,800 barrels of oil into a globally rare dolomite wetland from a pipeline near Lockport, Illinois. The complaint, filed along with the settlement, alleges that the crude oil spill injured a critical habitat for the federally-endangered Hine’s emerald dragonfly.
“Pipeline companies have a responsibility to protect our waters, people, wildlife and diverse habitats from oil spills, and will be held accountable for the harms they cause,” said Assistant Attorney General Todd Kim for the Justice Department’s Environment and Natural Resources Division. “This major settlement will not only deter future oil spills, but also help restore and enhance the diminishing habitat of an endangered species.”
“The settlement funds will help us improve the remaining habitat for the dragonfly and increase their population, as well as provide benefits for other wildlife injured by the spill,” said Regional Director Charlie Wooley for the U.S. Fish & Wildlife Service’s Great Lakes Region.
“EPA and our partners have worked extensively to clean up and mitigate damage from this pipeline breach that released more than 1,800 barrels of crude oil into wetlands,” said Acting Assistant Administrator Larry Starfield for EPA’s Office of Enforcement and Compliance Assurance. “Today’s settlement marks the culmination of a 10-year project to clean up the spill and prepare the site for restoration activities.”
“Illinois wetlands are some of our most valuable natural resources that provide residents and visitors with opportunities for recreation and study, as well as providing scarce habitat for some of Illinois’ endangered species,” said Attorney General Kwame Raoul for Illinois. “I am pleased that this settlement will mitigate contamination from the oil spill and support the restoration of wetlands near Lockport for future generations.”
“In partnership with federal and state trustees, the Corps reviewed the extent of the unauthorized fill material in the Hine’s emerald dragonfly wetlands and approved a comprehensive mitigation proposal to offset the impacts,” said Chief Kathleen Chernich of the East Section Regulatory Branch for the U.S. Army Corps of Engineers, Chicago District. “We were proud to partner with the federal and state trustees to craft a solution that is designed to mitigate more than 100 acres of wetland losses caused by the spill.”
The December 2010 spill resulted from a breach in a 12-inch buried pipeline that discharged crude oil into a wetland adjacent to the Illinois-Michigan Canal near Lockport, Illinois. West Shore Pipe Line Co. of Lemont, Illinois, the owner of the crude oil pipeline, and Houston-based Buckeye Pipe Line Co., the operator, previously undertook responsibility for the cleanup of the spill site overseen by the EPA.
In the settlement filed today, Buckeye and West Shore have also agreed to pay $7.2 million for injury to the Hine’s emerald dragonfly and other natural resources in the wetland which the federal and state trustees, and the U.S. Army Corps of Trustees (Corps), will jointly use to plan, design and perform restoration projects to compensate for the harms caused by the oil spill, as well as mitigation for impacts to wetlands.
Today’s action was filed by the Department of Justice and the State on behalf of the federal and state trustees for natural resources. The designated federal trustees for the natural resources impacted by Buckeye’s oil spill are the U.S. Department of the Interior’s Fish and Wildlife Service. The designated state trustees are the Illinois Department of Natural Resources and the Illinois Environmental Protection Agency. The federal and state trustees have worked together to perform substantial injury assessment work and are engaged in joint restoration planning efforts. The complaint was also filed on behalf of the U.S. Army Corps of Engineers to address violations of a Clean Water Act Section 404 permit in connection with the cleanup of the oil spill in waters of the United States.
The consent decree, lodged in the U.S. District Court for the Northern District of Illinois, is subject to a 30-day public comment period and final court approval. The consent decree will be available for viewing here.
Berkeley County man admits to drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Brian C. Dixon, of Martinsburg, West Virginia, has admitted to a drug charge, United States Attorney William J. Ihlenfeld, II announced.
Dixon, 49, pleaded guilty today to one count of “Possession with Intent to Distribute Cocaine Hydrochloride.” Dixon admitted to having cocaine hydrochloride in March 2021 in Berkeley County.
Dixon faces up to 20 years of incarceration and a 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. Attorneys Lara Omps-Botteicher and Timothy D. Helman are prosecuting the case on behalf of the government. The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Find the related case here: https://www.justice.gov/usao-ndwv/pr/34-indicted-expansive-drug-trafficking-operation
Bank Teller Pleads Guilty to Embezzling Customer FundsRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that DEMETRIA MYERS SILVIO, age 32, of New Orleans, Louisiana, pled guilty on October 13, 2021 to Wire Fraud, in violation of Title 18, United States Code, Section 1343.
According to court documents, between December 3, 2018 and December 6, 2019, SILVIO forged approximately 66 checks that were drawn on IberiaBank accounts belonging to five customers. SILVIO deposited the fraudulent checks into her own bank accounts with Chase Bank and Capital One. Through this scheme, SILVIO embezzled approximately $63,059.82.
SILVIO faces a maximum term of twenty (20) years imprisonment and/or a fine of $250,000.00 or the greater of twice the gross gain to the defendant or twice the gross loss to any person. In addition, SILVIO faces a term of supervised release of up to three (3) years after her release from prison and a mandatory special assessment fee of $100. The Honorable Wendy B. Vitter set sentencing for January 18, 2022.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Maria M. Carboni.
Activity in the United States Attorney's OfficeRead the Press Release
Federal District Court Judge Nancy D. Freudenthal sentenced NATOSHA MARTIN, 37, of Cody, Wyoming on October 12, 2021 for conspiracy to distribute methamphetamine. She received 37 months of imprisonment to be followed by three years of supervised release. Martin was ordered to pay a $100.00 special assessment and a $300.00 community restitution. The Postal Inspector with the United States Postal Service and the Wyoming Division of Criminal Investigation investigated this case.
Federal District Court Judge Nancy D. Freudenthal sentenced CHRISTOPHER RYAN GROSS, 34, of Cheyenne, Wyoming on September 30, 2021 for felon in possession of a firearm. He received 37 months of imprisonment to be followed by 37 months of supervised release. Gross was ordered to pay a $100.00 special assessment. The Laramie County Sheriff’s Office investigated this case.
Chief Federal District Court Judge Scott W. Skavdahl sentenced EDRAS PANTOJA-VILLAFRANCA, 22, of San Francisco, California on February 12, 2021 for possession with intent to distribute fentanyl, cocaine, and aiding and abetting. Pantoja-Villafranca was arrested in Evanston, Wyoming. He received 70 months of imprisonment, to be followed by five years of supervised release, and ordered to pay $200.00 in community restitution and a $100.00 special assessment. The Uinta County Sheriff’s Office and Drug Enforcement Administration investigated this case. Luis Ramon Medina-Saucedo was a co-conspirator in this case.
Chief Federal District Court Judge Scott W. Skavdahl sentenced LUIS RAMON MEDINA-SAUCEDA, 23, of Aurora, Colorado on February 12, 2021 for possession with intent to distribute fentanyl, cocaine, and aiding and abetting. Medina-Saucedo was arrested in Evanston, Wyoming. He received 70 months of imprisonment, to be followed by five years of supervised release, and ordered to pay $200.00 in community restitution and a $100.00 special assessment. The Uinta County Sheriff’s Office and Drug Enforcement Administration investigated this case.
12 October 2021
“Diamond Enterprise” Boss Pleads Guilty to Racketeering, Interstate Threats, Money Laundering, Fraud, and Gambling OffensesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that ABDURAMAN ISENI, a/k/a “Diamond,” pled guilty today to eight counts of criminal conduct, including overseeing a multi-year racketeering enterprise, interstate threats, money laundering, bank fraud conspiracy, false statements to a bank, and two gambling conspiracy offenses. ISENI pled guilty before U.S. District Judge Andrew L. Carter, to whom the case is assigned.
U.S. Attorney Damian Williams said: “As he admitted today, Abduraman Iseni led a network of underground gambling establishments to prop up a criminal enterprise under his control. Iseni engaged in a series of additional crimes, including money laundering, threatening a victim with physical violence, and defrauding and lying to banks in an effort to receive money to which he was not entitled. Thanks to the hard work of our partners at the FBI, Iseni stands convicted of numerous offenses and awaits sentencing for his years of crime.”
According to the Indictment, public court filings, and statements made in court:
ISENI oversaw a racketeering enterprise referred to in the Indictment as the “Diamond Enterprise.” The Diamond Enterprise was an organized criminal group operating under ISENI’s direction. ISENI offered his protection, connections, and substantial influence in the criminal underworld to other members of the racketeering enterprise, in exchange for a share of their illegal profits. The Diamond Enterprise thrived in part on the revenues generated by a network of illegal gambling parlors – “Sports Café,” “Friendly Café,” and “Oasis Café” – located throughout Brooklyn that hosted underground poker games and hosted illegal sports books. Some of these revenues, in turn, were laundered through a series of bank accounts in an effort to conceal and facilitate the Enterprise’s continued operations.
In addition to the Enterprise’s operations, ISENI separately admitted to threatening a victim with physical violence, and a host of additional crimes, including money laundering, bank fraud conspiracy, and making false statements to a bank for the purpose of inducing the bank to release funds to which ISENI was not entitled.
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ISENI, 56, of Staten Island, New York, is scheduled to be sentenced by Judge Carter on January 18, 2022, at 3:30 p.m. Under the terms of his plea agreement, ISENI also agreed to pay forfeiture of $349,000.
Mr. Williams praised the outstanding work of New York FBI’s Balkans and Middle East Organized Crime Squad. He also thanked the FBI’s Newark Office, the New York City Police Department, the State Department’s Diplomatic Security Service, the Small Business Administration Office of the Inspector General, the Social Security Administration Office of the Inspector General, the New York State Liquor Authority, and United States Customs and Border Protection for their investigative efforts and ongoing support and assistance with the case.
The prosecution of this case is being overseen by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Samuel L. Raymond and David R. Felton are in charge of the case.
York Man Convicted of Drug-Trafficking and Firearms OffensesRead the Press Release
HARRISBURG—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Eric Banks, age 41, of York, Pennsylvania, was convicted on October 8, 2021, following a four-day jury trial held before United States District Court Judge Jennifer P. Wilson of conspiracy to distribute heroin, possession with intent to distribute fentanyl, crack cocaine, and powder cocaine, possession of firearms in furtherance of drug trafficking, and possession of firearms as a previously convicted felon.
According to Acting United States Attorney Bruce D. Brandler, Banks distributed significant quantities of heroin, fentanyl, crack cocaine, and powder cocaine in the York area in 2017 and 2018. In January 2018, during the execution of a search warrant at Banks’ York residence, law enforcement recovered drugs, drug-packaging materials, and three loaded handguns. Two of the handguns had been reported stolen.
The case was investigated by the Federal Bureau of Investigation and the York County Drug Task Force. Assistant U.S. Attorneys Carlo D. Marchioli and Christian T. Haugsby are prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.”
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.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for these offenses is imprisonment for life, 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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William J. Ihlenfeld, II sworn in as United States Attorney for the Northern District of West VirginiaRead the Press Release
U.S. Attorney William J. Ihlenfeld, IIWHEELING, WEST VIRGINIA – William J. Ihlenfeld, II has taken the oath of office to become the United States Attorney for the Northern District of West Virginia. Ihlenfeld was nominated by President Biden on August 10, 2021 and confirmed by the U.S. Senate on October 5, 2021. U.S. District Judge Thomas S. Kleeh administered the oath of office to U.S. Attorney Ihlenfeld today.
As U.S. Attorney, Ihlenfeld is the top-ranking federal law enforcement official in the Northern District of West Virginia, which includes offices in Wheeling, Martinsburg, Clarksburg, and Elkins. He oversees a staff of 53 employees, including 24 attorneys and 28 non-attorney support personnel. The office is responsible for prosecuting federal crimes in the district, including crimes related to terrorism, public corruption, child exploitation, firearms, and narcotics. The office also defends the United States in civil cases and collects debts owed to the United States.
Ihlenfeld’s career in the law has been punctuated by terms of public service. He previously served as the United States Attorney in the Northern District of West Virginia, from 2010 until 2016. Prior to that, he was a state prosecutor for thirteen years in Ohio County and Brooke County, including three years as a domestic violence prosecutor. Most recently, he was a member of the West Virginia Legislature.
During his first term as U.S. Attorney, Ihlenfeld investigated and prosecuted British banking giant HSBC for its failure to identify money laundering transactions by Mexican drug cartels and terror groups. He also helped to broker a $150 million settlement with the McKesson Corporation for its filling of suspicious orders of painkillers from West Virginia pharmacies.The prevention and prosecution of public corruption has been a priority of Ihlenfeld throughout his career and will continue to be during his second term as U.S. Attorney.
Ihlenfeld has been honored by the Drug Enforcement Administration, the White House Office of National Drug Control Policy, and the FBI Citizens Academy for his efforts to address substance abuse.He served for many years as an executive board member of the West Virginia Coalition Against Domestic Violence as well as the Upper Ohio Valley Sexual Assault Help Center.
Ihlenfeld graduated with honors from Ohio University and earned his law degree from West Virginia University.
Wetzel County man admits to firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – Samuel Amos Minger, of New Martinsville, West Virginia, has admitted to firearms charge, United States Attorney William J. Ihlenfeld, II announced.
Minger, 42, pleaded guilty today to one count of “Unlawful Possession of a Firearm.” Minger, a person prohibited from having a firearm because of prior offenses, admitted to having a six-shot revolver in November 2020 in Tyler County.
Minger faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David J. Perri is prosecuting the case on behalf of the government. The Tyler County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
U.S. Magistrate Judge James P. Mazzone presided.
U.S. Attorney Announces Arrest of Iranian Large-Scale Heroin TraffickerRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Anne Milgram, the Administrator of the U.S. Drug Enforcement Administration (“DEA”), announced today the arrest of MALEK MOHAMMAD BALOUCHZEHI, a/k/a “Malek Khan,” for conspiring to import heroin into the United States and distributing heroin for importation into the United States. BALOUCHZEHI, a citizen of Iran, was taken into custody by Kenyan authorities expelled to the United States from Kenya on October 9, 2021. BALOUCHZEHI was presented before United States Magistrate Judge Sarah Netburn earlier today.
U.S. Attorney Damian Williams said: “From thousands of miles away, Malek Balouchzehi allegedly arranged the importation of massive quantities of heroin into the United States with seemingly little regard for the devastation that highly addictive opiates cause after landing at our shores. Balouchzehi’s expulsion to the United States is a direct result of this Office’s successful ongoing partnership with the D.E.A., and we commend the outstanding work of the agents both here and abroad who made today’s charges possible.”
D.E.A. Administrator Anne Milgram said: “This investigation demonstrates our collective resolve to pursue criminals who traffic in these dangerous, addictive substances. For decades, DEA’s partnerships with our law enforcement partners around the world have been the key to bringing to justice those threatening our communities. DEA will continue to bring all that we have to bear to combat and defeat the criminal drug traffickers putting Americans’ safety and health at risk.”
According to the allegations contained in the Complaint charging the defendant,[1] which was unsealed today in Manhattan federal court:
BALOUCHZEHI is an Iran-based drug trafficker who distributes methamphetamine and manufactures and distributes heroin. In or about September 2019, BALOUCHZEHI and his associate began communicating and meeting with individuals whom BALOUCHZEHI believed were heroin traffickers interested in large quantities of heroin for importation into the United States, as well as methamphetamine for distribution in Australia. Those individuals were, in fact, a confidential source working at the DEA’s direction, and an undercover DEA agent posing as a New York-based heroin distributor. In December 2019, BALOUCHZEHI caused a sample of approximately two kilograms of heroin to be delivered in Mozambique, with the understanding that those drugs would be transported to the United States for testing and sale. Following this sample shipment, BALOUCHZEHI planned to supply larger quantities of heroin for importation to and distribution within the United States, and in December 2019, BALOUCHZEHI discussed providing as many as 400 kilograms of heroin for importation to the United States in the next transaction.
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BALOUCHZEHI, 38, a citizen of Iran, is charged with one count of conspiring to import heroin into the United States and one count of distributing heroin intending that the narcotics would be imported into the United States. Both counts carry a maximum sentence of life in prison and a mandatory minimum sentence of 10 years in prison. The statutory minimum and maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding investigative efforts of the DEA’s Special Operations Division, Bilateral Investigations Unit and New York Field Division; the DEA’s Nairobi, Maputo, Pretoria, Bucharest, and Jakarta Country Offices; the Kenyan National Police, Directorate of Criminal Investigations; the Mozambique National Criminal Investigation Services; and the Western Australia Police Force. Mr. Williams also thanked the U.S. Department of Justice’s Office of International Affairs for its assistance.
The case is being prosecuted by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Michael D. Lockard and Kimberly J. Ravener are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations and every fact described should be treated as an allegation.
Two Men Sentenced to Prison for Methamphetamine Distribution in Greater MinnesotaRead the Press Release
ST. PAUL, Minn. – Two men have been sentenced to prison for their roles in a methamphetamine distribution ring in greater Minnesota.
According to court documents, Jonathan Stuart Listrom, 35, of Circle Pines, conspired with his co-defendant Steven Leroy Johnson, 53, of Glenwood, to sell methamphetamine in the Alexandria area. On August 25, 2019, law enforcement arrested Johnson in Alexandria on an outstanding warrant and found 240 grams of methamphetamine in his vehicle. On August 27, 2019, law enforcement arrested Listrom in Alexandria with 886 grams of 99 percent pure methamphetamine that he intended to distribute to Johnson. On January 23, 2020, Listrom was arrested again with approximately 70 grams of methamphetamine.
Listrom pleaded guilty to one count of conspiracy to distribute methamphetamine and was sentenced on October 6, 2021 to 192 months in prison followed by five years of supervised release. Johnson pleaded guilty to one count of possession with intent to distribute methamphetamine and was sentenced today to 120 months in prison followed by five years of supervised release.
Acting U.S. Attorney W. Anders Folk for the District of Minnesota made the announcement after U.S. District Judge Wilhelmina M. Wright sentenced the defendants.
This case was the result of an investigation conducted by the West Central Minnesota Drug and Violent Crime Task Force, the Alexandria Police Department, the Douglas County Sheriff’s Office, the Minnesota Bureau of Criminal Apprehension, and the United States Drug Enforcement Administration.
This case was prosecuted by Assistant U.S. Attorney Thomas M. Hollenhorst.
Two Individuals Sentenced in Methamphetamine and Fentanyl Distribution CaseRead the Press Release
BOISE – A Boise man and an Arizona man were sentenced to federal prison for conspiracy and for possessing methamphetamine and fentanyl with the intent to distribute it to others.
Chief U.S. District Judge David C. Nye sentenced Derek J. Tuschoff, 36, of Boise, to seven years imprisonment and Robert B. Mahan Jr., 38, of Phoenix, to ten years imprisonment. Both Tuschoff and Mahan were ordered to serve five years of supervised release upon completion of their prison sentences.
According to court records, beginning in January 2019, law enforcement investigated Tuschoff for distributing large quantities of methamphetamine in the Treasure Valley. In May 2019, Tuschoff was monitored by law enforcement while he traveled from Boise to Phoenix to meet with individuals that investigators believed were his drug suppliers. Later, in July 2019, Tuschoff met with one of these suppliers, Mahan, at a hotel in Pocatello. After leaving the hotel and while driving back towards Boise, Tuschoff was stopped and arrested by law enforcement officers. Investigators found approximately two pounds of methamphetamine and 234 fentanyl pills in Tuschoff’s car. The following day when law enforcement officers arrested Mahan, they found more methamphetamine, heroin, and 196 fentanyl pills. Law enforcement officers also recovered $37,775 of drug proceeds hidden in Mahan’s car.
Acting U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the cooperative efforts of the Idaho State Police, Drug Enforcement Administration, Boise Police Department, Fort Hall Police Department, and members of the BADGES Task Force that include investigators from the Pocatello Police Department, Chubbuck Police Department, and Bannock County Sheriff's Office.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case was prosecuted by the Special Assistant U.S. Attorney hired by the Ada County Prosecuting Attorney’s Office with funds provided by the High Intensity Drug Trafficking Areas (HIDTA) program. HIDTA is part of the Office of National Drug Control Policy (ONDCP) created by Congress with the Anti-Drug Abuse Act of 1988. It provides assistance to federal, state, and local law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States. Idaho is part of the Oregon-Idaho HIDTA. The Idaho HIDTA is a collaboration of local, multi-jurisdictional law enforcement drug task forces, and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada, Canyon, Bannock, Kootenai, and Malheur Counties.
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Texas Man Indicted for Sending Violent Threats to Prominent Maryland Doctor Who Had Been a Vocal Advocate of the COVID-19 VaccineRead the Press Release
A federal grand jury in Baltimore, Maryland, has indicted a Texas man for sending a threatening communication to a Maryland doctor.
The indictment was unsealed today following the arrest of Scott Eli Harris, 51, of Aubrey, Texas, who is scheduled to have an initial appearance on Wednesday, Oct. 13, in U.S. District Court in Plano, Texas.
The indictment charges Harris with a single count of willfully transmitting in interstate commerce a threat to injure another person. Specifically, it alleges that Harris sent a message from his cellular phone to the doctor, who had been a vocal proponent of the COVID-19 vaccine, that included violent and explicit threats, such as, “Never going to take your wonder drug. My 12 gauge promises I won’t,” and “… I can’t wait for the shooting to start.” The message also referenced the doctor’s race and national origin.
If convicted, Harris faces a maximum sentence of five years in prison and a fine of up to $250,000.
The indictment was announced by Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Erek L. Barron for the District of Maryland and Special Agent in Charge Thomas J. Sobocinski of the FBI Baltimore Field Office.
This case was investigated by the FBI. Assistant U.S. Attorney P. Michael Cunningham of the District of Maryland and Trial Attorney Katherine G. DeVar of the Justice Department’s Civil Rights Division are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence of guilt, and the defendant is presumed innocent unless proven guilty.
Texas Man Facing Federal Indictment in Maryland for Threatening a Medical Doctor Who Publicly Advocated for the COVID-19 VaccineRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging Scott Eli Harris, age 51, of Aubrey, Texas for the federal charges of threats transmitted by interstate communication, related to a threatening message sent to a Maryland medical doctor, who publicly advocated for the COVID-19 vaccine. The indictment was returned on September 29, 2021, and unsealed today upon Harris’ arrest. Scott has an initial appearance scheduled on Wednesday, October 13, 2021, at 10:00 a.m., in U.S. District Court in Plano, Texas.
The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
“We take seriously threats and intimidation, and this charge makes clear that such conduct will be prosecuted federally,” said United States Attorney Erek L. Barron. “We will continue to work with our law enforcement partners to investigate and prosecute those making such threats.”
The one-count indictment alleges that, on July 12, 2020, Harris sent a threat from his cell phone to the Maryland doctor who had been a vocal advocate of the Covid-19 vaccine. Harris’ alleged threats included violent statements including “Never going to take your wonder drug. My 12 gauge promises I won’t .… I can’t wait for the shooting to start.”
If convicted, Harris faces a maximum sentence of five years in federal prison. 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. Harris is expected to have an initial appearance in U.S. District Court in Baltimore at a later date.
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.
United States Attorney Erek L. Barron commended the FBI for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney P. Michael Cunningham and Trial Attorney Katherine DeVar of the Justice Department’s Civil Rights Division, who are 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/civil-rights and https://www.justice.gov/usao-md/community-outreach.
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Tallahassee Man Sentenced to Forty-Four Months in Federal Prison for Communicating Threats of ViolenceRead the Press Release
TALLAHASSEE, FLORIDA – Daniel Alan Baker, 34, of Tallahassee, Florida was sentenced to forty-four months in federal prison for two counts of transmitting a communication in interstate commerce containing a threat to kidnap or injure another person. The sentence was announced by Jason R. Coody, Acting United States Attorney for the Northern District of Florida.
Baker’s sentence was the result of a federal jury returning a guilty verdict on May 6, 2021, finding Baker guilty of two counts of transmitting a communication in interstate commerce containing a threat to kidnap or injure another person.
Baker was arrested by agents of the Federal Bureau of Investigation on January 15, 2021, after he issued a “Call to Arms” for like-minded individuals to violently confront protestors that may gather at the Florida Capitol in the wake of the January 6 riots at the U.S. Capitol. He specifically called for others to join him in encircling any protestors and confining them at the state Capitol complex using firearms. Baker posted two such threatening communications on January 12 and 14, 2021.
“The free exercise of speech is central to our democracy,” stated Acting U.S. Attorney Coody. “However, the defendant’s threats of armed violence to inhibit expression of political views different than his own are both unlawful and dangerous. Today’s sentence acknowledges the defendant’s threats to incite violence and should serve as a significant deterrent to those who would solicit others to join them in conducting criminal acts rather than engage in lawful debate.”
"This case proves that the FBI will not tolerate those who seek to wreak havoc in our communities," said Rachel L. Rojas, Special Agent in Charge of the FBI Jacksonville Division. "Violence designed to intimidate citizens and influence government is what the FBI's counterterrorism team was designed to combat, and our team remains laser focused on identifying, investigating, and disrupting individuals who cross the line from expressing beliefs to violating federal law by inciting violence or engaging in criminal activity. The communities of North Florida deserve nothing less than our full commitment to aggressively pursue these cases, and we will continue to work alongside our federal, state, and local law enforcement partners. We are especially grateful for the work of the Florida Department of Law Enforcement, Leon County Sheriff’s Office and Tallahassee Police Department in this case."
This case was the result of a collaborative investigation by the Federal Bureau of Investigation, Florida Department of Law Enforcement, Leon County Sheriff’s Office, and the Tallahassee Police Department. Assistant United States Attorneys Stephen Kunz and Lazaro Fields prosecuted this case.
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.
Suburban Pittsburgh Man Sentenced to 7+ Years in Prison for Violating Child Sexual Exploitation LawsRead the Press Release
PITTSBURGH - A suburban Pittsburgh resident has been sentenced in federal court to 90 months’ imprisonment on his conviction of federal child exploitation laws, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge Robert J. Colville imposed the sentence on Anthony Bellisario, 58, formerly of Robinson Township, PA.
According to information presented to the court, as a result of a large-scale, international investigation into the darknet site “Welcome 2 Video”, which offered child sexual exploitation images and videos for sale using the cryptocurrency bitcoin, Bellisario was identified as a user of this Website. Namely, from January 21, 2017 through February 27, 2018, Bellisario downloaded approximately 1,673 files of child sexual abuse material (commonly referred to as child pornography) and uploaded approximately six files to the Website and in return received credits to obtain “free” videos of child sexual abuse material.
The Court was further advised that on March 27, 2018, during the execution of a federal search warrant at Bellisario’s residence, law enforcement seized two laptops owned by Bellisario. On these laptops, law enforcement found 1,000 unique videos and 443 unique images of child sexual abuse material; as well as 769 unique videos and 9,340 unique images of child erotica.
Bellisario used a Virtualized Private Network (VPN) in an effort to mask his identity online because he “[knew] what [he was] doing was illegal. That way people can’t find you for doing things that are illegal.” The Court was further informed that Bellisario admitted to law enforcement that he had been looking at child sexual abuse material for the last 15 years.
Judge Colville remanded Bellisario into custody, denying Bellisario’s request to self-report to the Bureau of Prisons on a later date.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
Assistant United States Attorney Rebecca L. Silinski prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Department of Homeland Security – Homeland Security Investigations, with the assistance of the North Strabane Police Department, Robinson Township Police Department and the Pennsylvania Office of the Attorney General, for the investigation leading to the successful prosecution of Bellisario.
Springfield Man Pleads Guilty to Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Missouri, man pleaded guilty in federal court today to receiving and distributing hundreds of images and videos of child pornography.
Chandler Durham, 31, pleaded guilty before U.S. Chief Magistrate Judge David P. Rush to one count of receiving and distributing child pornography.
On Feb. 5, 2020, a detective with the Southwest Missouri Cyber Crimes Task Force reviewed several CyberTips from the National Center for Missing and Exploited Children. Instagram, Twitter, and Google had reported that Durham uploaded child pornography to his accounts. During the investigation, the detective received approximately 50 CyberTips that reported uploads of child pornography by Durham. The detective identified 1,500 images and 233 videos of child pornography uploaded to Durham’s Google account, including videos of child bestiality and child bondage.
Law enforcement officers executed a search warrant at Durham’s residence on July 6, 2020, and seized seven electronic items. Investigators located both images and videos of child pornography on Durham’s electronic devices and accounts.
Under federal statutes, Durham is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 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 defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Stephanie L. Wan. It was investigated by the Springfield, Mo., Police Department, the Southwest Missouri Cyber Crimes Task Force, and U.S. Immigration and Customs Enforcement.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Shreveport Police Department Chosen as Participant in Partnership with U.S. Department of Justice to Help Reduce Violent Crime in ShreveportRead the Press Release
SHREVEPORT, La. – Acting United States Attorney Alexander C. Van Hook has announced that the City of Shreveport Police Department has been chosen to participate in the National Public Safety Partnership with the U.S. Department of Justice (DOJ) and Bureau of Justice Assistance (BJA). Acting United States Attorney Alexander C. Van Hook, along with Interim Shreveport Police Chief Wayne Smith, Shreveport Mayor Adrian Perkins, and Caddo District Attorney James Stewart held a press conference today to provide details about the announcement.
The Justice Department announced the 10 new National Public Safety Partnership (PSP) sites that will work with the Department of Justice, local agencies and community organizations to reduce violence in areas with elevated crime rates. PSP serves as a Justice Department- wide initiative that enables communities to receive coordinated training and technical assistance and an array of resources from the Department’s programmatic and law enforcement components. In addition to Shreveport, Louisiana, the 10 sites include: Antioch, California; Aurora, Colorado; Chattanooga, Tennessee; Gary, Indiana; Louisville, Kentucky; North Charleston/Charleston, South Carolina; Philadelphia, Pennsylvania; Phoenix, Arizona; and Richmond, Virginia.
“The acceptance into this partnership has taken a long time and the involvement of many before the current administration,” stated Acting U.S. Attorney Alexander C. Van Hook. “Violent crime in the Shreveport area has grown despite the Herculean efforts of federal, state and local law enforcement to combat it. The assistance that will be given through this partnership to the Shreveport Police Department will equip our officers and city leaders to combat these growing trends and help to curtail the continued increase of crime.”
“Violence – gun violence in particular - has taken a heavy toll on communities across the country, and its impact has been felt most deeply in neighborhoods where resources have always been scarce and justice has historically been elusive,” said Amy L. Solomon, Acting Assistant Attorney General of the Justice Department’s Office of Justice Programs, whose Bureau of Justice Assistance administers the PSP initiative. “We are proud to join local leaders and our partners from across the Department of Justice as we work together to stem the tide of violent crime in these hard-hit communities.”
“From five to now 50 jurisdictions in seven years, PSP has taught the Department a new way to work with communities. We have learned that it is only by leveraging the power of community and using all our collective resources and dedicating all our efforts that we will reduce crime,” said BJA Acting Director Kristen Mahoney. “We look forward to partnering with the 10 new sites to achieve what we are all working toward—safe places to live and work.”
After decades of falling crime rates, statistics show that in many cities across the county violent crime increased in 2020. To address the increase in violence, specifically gun violence, on May 26, 2021, the Attorney General announced the Department’s new Comprehensive Strategy for Reducing Violent Crime. The addition of 10 new PSP sites is one prong in that strategy. The PSP program began as a pilot in 2014 and was formally adopted by the Department as an intensive training and technical assistance protocol in June 2017. Sites must apply to participate. To be considered for selection, a site must have sustained levels of violence that far exceed the national average and demonstrate a commitment to reducing crime and enhancing community engagement.
More than 40 cities have participated in PSP in prior cohorts. The primary participating Justice Department components include the Office of Justice Programs; the Office on Violence Against Women; the Office of Community Oriented Policing Services; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Federal Bureau of Investigation; the U.S. Drug Enforcement Administration; and the U.S. Marshals Service.
More information about PSP can be found at: http://www.nationalpublicsafetypartnership.org.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
In addition to leadership from local and federal partners, DOJ dedicates specific individuals to support each PSP site throughout the three-year engagement, to include a retired law enforcement executive, a DOJ Program Office Champion to serve as the point of contact for the site, federal law enforcement partners, and a program advisor. PSP federal law enforcement partners include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), and U.S. Marshals Service (USMS).
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Seven-Time Felon Who Possessed Firearm and Crack Pleads Guilty to Federal CrimesRead the Press Release
A man who illegally possessed a firearm and possessed crack cocaine he intended to distribute pled guilty today in federal court in Cedar Rapids.
Patrick Green, age 50, from Dubuque, Iowa, was convicted of one count of being a felon in possession of a firearm and one count of possessing with intent to distribute cocaine base, which is also known as crack cocaine.
At the plea hearing, Green admitted that he illegally possessed the firearm in July 2017 and that he possessed the crack in October 2018. Green had previously been convicted of seven felonies, including four drug felonies, two armed robberies, and aggravated discharge of a firearm.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Green remains in the custody of the United States Marshal pending sentencing. Green faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and 3 years of supervised release following any imprisonment.
The case is being investigated by the Dubuque Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Dubuque Drug Task Force, and is being prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is CR‑19‑1018‑CJW‑MAR.
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Seven men indicted for illegal firearms possession, drugsRead the Press Release
SAVANNAH, GA: Seven defendants face federal charges including drug trafficking and illegal possession firearms after separate indictments by a grand jury in the Southern District of Georgia, while recent actions in U.S. District Court include guilty pleas and criminal sentences.
The indicted cases are being investigated as part of Project Safe Neighborhoods in collaboration with federal, state and local law enforcement agencies, including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the FBI, in an ongoing effort to reduce violent crime by targeting those who illegally possess firearms.
“Convicted felons are prohibited from possessing firearms,” said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. “We will continue to relentlessly pursue those whose illegal possession of guns threatens the safety of our community.”
In the past three years, nearly 700 defendants have been federally charged in the Southern District of Georgia for illegal firearms offenses – most often for possessing a firearm after conviction for a previous felony. That charge carries a statutory penalty upon conviction of up to 10 years in prison, and there is no parole in the federal system.
Defendants named in federal indictments from the October 2021 term of the U.S. District Court grand jury include:
- Dwight Eady, 39, of Milan, Ga., charged with Possession with Intent to Distribute Methamphetamine; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; Possession of a Firearm by a Convicted Felon; and Possession of Ammunition by a Convicted Felon;
- Darren Nathaniel Mathis, 35, of Savannah, charged with Possession of Methamphetamine with Intent to Distribute; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and Possession of a Firearm by a Convicted Felon;
- Tommy Greene, 34, of Savannah, Possession with Intent to Distribute Eutylone (Bath Salts) and Methamphetamine, Possession of a Firearm by a Convicted Felon; and Possession of a Firearm in Furtherance of a Drug Trafficking Crime;
- Derek Hayes, 50, of Savannah, charged with Possession of a Firearm by a Convicted Felon, and Possession of Cocaine;
- Rasheen Dyshawn Stephens, 30, of Savannah, charged with Possession of a Firearm by a Convicted Felon;
- Jonathan R. White, 24, of Savannah, charged with Possession of a Firearm by a Convicted Felon; and,
- Kenya Leon Parker, 33, of Savannah, charged with Possession of a Firearm by a Convicted Felon
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
Additional defendants recently have been adjudicated on federal charges that include illegal firearms possession:
- Bradley Harrison, 25, of Brunswick, Ga., was sentenced to 84 months in prison followed by four years of supervised release after pleading guilty to Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine and Heroin, and Possession of a Firearm by a Convicted Felon. Harrison was one of eight defendants indicted in Operation Krack Down II, which targeted a drug trafficking conspiracy in the Brunswick area.
- Khari Courtney Osborne, 27, of Hephzibah, was sentenced to 38 months in prison followed by three years of supervised release after pleading guilty to Possession of a Firearm by a Convicted Felon. A member of the Gangster Disciples criminal street gang, Osborne was on state probation after serving time in prison for armed robbery when Richmond County Sheriff’s deputies found him in possession of a loaded pistol during a February 2020 traffic stop.
- Julian Theophilus Moffett, 39, of Augusta, was sentenced to 63 months in prison followed by three years of supervised release and fined $1,000 after pleading guilty to Possession of a Firearm by a Convicted Felon. Moffett is a member of the Gangsta Killa Bloods criminal street gang and has a criminal history that includes convictions for drug trafficking and gun violence. He was arrested in March 2020 when Richmond County sheriff’s deputies found a pistol in his vehicle during a traffic stop.
- Terrence Latroy Brown, 31, of North Charleston, S.C., was sentenced to 37 months in prison followed by three years of supervised release after pleading guilty to Possession of a Firearm by an Illegal Drug User. Brown admitted that on April 29, 2020, he was an illegal user of methamphetamine and Eutylone (bath salts) when Richmond County Sheriff’s deputies during a traffic stop found an assault-style rifle and multiple high-capacity magazines in his vehicle.
- Curtavious Bonner, 30, of Thomson, Ga., was sentenced to 48 months in prison and ordered to serve three years of supervised release after pleading guilty to Possession of a Firearm by a Convicted Felon. Bonner was arrested in July 2019 when Thomson Police officers checking on suspicious activity outside a residence found two pistols in Bonner’s vehicle.
- Malcolm Robinson Brown, 39, of Augusta, was sentenced to 37 months in prison followed by three years of supervised release after pleading guilty to Possession of a Firearm and Ammunition by a Convicted Felon. Brown was arrested when Richmond County sheriff’s deputies in May 2020 found him in possession of a pistol and ammunition while arresting him at his home on an outstanding warrant on state charges.
- Dequan Beniman, 27, of Savannah, was sentenced to 24 months in prison followed by three years of supervised release after pleading guilty to Possession of a Firearm by a Convicted Felon. Beniman was arrested in January 2020 when Savannah Police officers found Beniman with two loaded pistols in his pockets, along with a bag containing additional ammunition.
- Willie Lee Batten, 59, of Jacksonville, Ga., was sentenced to 18 months in prison followed by three years of supervised release after pleading guilty to Possession of a Firearm by a Convicted Felon. Batten was charged in November 2020 as part of Operation Rat Trap II, targeting a drug trafficking conspiracy in south Georgia. With the exception of one defendant who is awaiting trial, all remaining defendants identified in Operation Rat Trap II have been sentenced or await sentencing after pleading guilty.
- Chance Derrell Christian, 42, of Kingstree, S.C., was sentenced to 15 months in prison followed by three years of supervised release and fined $5,500 after pleading guilty to Possession of a Firearm by a Convicted Felon. Christian was arrested in May 2020 during a traffic stop by the Georgia State Patrol when troopers found a pistol in his vehicle.
- Marcus Rashad Allen, 33, of Savannah, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah Police officers found him in possession of a pistol in August 2020 after he ran from officers attempting to arrest him on an outstanding warrant.
- Jeffrey Brian Voorhees, 37, of Douglas, Ga., awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Voorhees was charged along with 47 co-defendants in Operation Sandy Bottom, targeting a gang-related drug trafficking conspiracy in the Coffee County area.
- David Bryson Murphy, 20, of Thomson, Ga., awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. McDuffie County sheriff’s deputies charged Murphy in April after finding him carrying a pistol during a traffic stop.
- Damario Antron Williams, 36, of Augusta, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Williams was wanted on outstanding state warrants for aggravated assault and firearms offenses when Richmond County Sheriff’s deputies investigating a report of a disturbance at an Augusta residence in January found Williams in the back yard with a loaded pistol in his waistband.
- Charles Edward Bennett, 31, of Augusta, awaits sentencing after pleading guilty to an Information charging him with Possession of a Firearm by an Illegal Drug User. Bennett was charged in January 2019 after Richmond County Sheriff’s deputies found him in possession of a pistol.
These cases also are being investigated under the Prosecutor to Prosecutor Program (P3), in which federal and state prosecutors collaborate to determine the most appropriate venue for adjudication of alleged crimes.
Agencies investigating these cases include the ATF, the FBI, the Drug Enforcement Administration, the Georgia State Patrol, the Savannah Police Department, the Richmond County Sheriff’s Office, the McDuffie County Sheriff’s Office, the Coffee County Sheriff’s Office, the Thomson Police Department, the Brunswick Police Department, and the Glynn County Police Department.
The cases are being prosecuted for the United States by Southern District U.S. Attorney’s Office Assistant U.S. Attorneys, including Henry W. Syms Jr., Patricia G. Rhodes, Tania D. Groover, Joshua S. Bearden, and Special Assistant U.S. Attorney Darron J. Hubbard.
Under federal law, it is illegal for an individual to possess a firearm if he or she falls into one of nine prohibited categories including being a felon; illegal alien; or unlawful user of a controlled substance. Further, it is unlawful to possess a firearm in furtherance of a drug trafficking offense or violent crime. It is also illegal to purchase – or even to attempt to purchase – firearms if the buyer is a prohibited person or illegally purchasing a firearm on behalf of others. Lying on ATF Form 4473, which is used to lawfully purchase a firearm, also is a federal offense.
For more information on the lawful purchasing of firearms, please see: https://www.atf.gov/qa-category/atf-form-4473.
Sean Merchant, a/k/a “Bronxwood,” Sentenced to More Than 16 Years in Prison for Sex Trafficking of MinorsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that SEAN MERCHANT was sentenced today to 196 months in prison for sex trafficking of three minor females. MERCHANT was sentenced by U.S. District Judge Kimba M. Wood, before whom he previously pled guilty to one count of sex trafficking of a minor. As part of his plea, MERCHANT acknowledged that he trafficked three minor females.
U.S. Attorney Damian Williams said: “Sean Merchant preyed upon three minor females who had previously resided at a residential treatment facility for at-risk children and adolescents. Merchant placed these young women in harm’s way by enticing them to perform commercial sex acts for money, and in turn providing them with addictive drugs. It is hard to imagine a more selfish and inhumane act than coercing a minor to have sex with strangers for profit, and Merchant has justly been sentenced to more than 16 years in prison for his outrageous conduct.”
According to the allegations contained in the Indictment and other court documents filed in Manhattan federal court:
From at least in or about March 2017 to at least in or about October 2017, SEAN MERCHANT, a/k/a “Bronxwood,” the defendant, engaged in the sex trafficking and sexual exploitation of three minor victims (“Minor Victim-1,” “Minor Victim-2,” and “Minor Victim-3,” and together, the “Minor Victims”). The defendant recruited, enticed, harbored, transported, provided, obtained, and maintained the Minor Victims for the purpose of commercial sex. Prior to being trafficked by MERCHANT, each of the Minor Victims previously resided at a residential treatment facility located in Westchester County, which provided housing for at-risk troubled children and adolescents on behalf of department of social services for certain counties in New York State.
The defendant recruited the Minor Victims to engage in commercial sex. Subsequently, the defendant used the website Backpage.com, an online classifieds website, to post advertisements of the Minor Victims for commercial sex. The defendant provided Minor Victim-1 and Minor Victim-2 with drugs, and directed them to engage in commercial sex acts in particular locations in the Bronx, New York.
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In addition to his prison sentence, MERCHANT, 32, was sentenced to five years of supervised release.
MERCHANT is the third defendant to be sentenced in this case by Judge Wood for his participation in sex trafficking of minors. Steven Lesane, who pled guilty to sex trafficking of two minor victims, was sentenced to a term of 256 months in prison on July 27, 2021. Jermaine Myrie, who pled guilty to participating in a conspiracy to commit sex trafficking of a minor, was sentenced to a term of 135 months in prison on February 12, 2020. Reuben Sands, who pled guilty to conspiracy to violate the Travel Act, was sentenced to a term of 60 months in prison on December 18, 2019. The final defendant, Martique Mcgriff, is scheduled to be sentenced on December 8, 2021.
This case is part of an ongoing prosecution of 19 defendants, set forth in eight indictments, for the sex trafficking of at least 20 minor girls and young adults in New York State’s social services system. All 19 of the defendants have been convicted, either via guilty plea or following trial.
Any individuals who believe that they have information that may be relevant to this investigation should contact the FBI at 1-212-384-1000 or https://tips.fbi.gov.
Mr. Williams thanked the FBI and the NYPD for their outstanding work in this matter and, in particular, the New York Child Exploitation and Human Trafficking Task Force.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Mollie Bracewell, Elinor Tarlow, Jacob Gutwillig, and Peter Davis are in charge of the prosecution.
Saugus Woman Convicted of Wire Fraud and Aggravated Identity TheftRead the Press Release
BOSTON – A Saugus woman was convicted today by a federal jury in Boston in connection with a scheme to defraud her elderly uncle of his life’s savings.
Jayne Carbone, 52, was convicted following a 5-day trial of four counts of wire fraud and four counts of aggravated identity theft. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Feb. 16, 2022. Carbone was indicted in February 2020.
Between approximately January 2017 and September 2018, Carbone stole over $400,000 from her elderly uncle, whose personal finances she managed. She fraudulently withdrew funds from his retirement annuity and transferred funds from his personal checking account to bank accounts held by Carbone. To conceal the scheme, Carbone provided her uncle with falsified statements for his financial accounts reflecting inflated balances.
The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release, and a fine of up to $250,000 or twice the gross gain or loss from the offense. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison consecutive to any other sentence imposed, up to one year of supervised release, and a fine of up to $250,000 or twice the gross gain or loss from the offense. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Joshua McCallister, Acting Inspector in Charge of the U.S. Postal Inspection Service made the announcement today. Assistant U.S. Attorneys Christopher J. Markham and James R. Drabick of Mendell’s Securities, Financial & Cyber Fraud Unit prosecuted the case.
San Gabriel Valley Man Sentenced to 3 Years in Federal Prison for Scheming to Launder Drug Money via ‘Black Market Peso Exchange’Read the Press Release
LOS ANGELES – A West Covina man was sentenced today to 36 months in federal prison for laundering more than $900,000 in drug money over a two-year period via a “Black Market Peso Exchange” for Mexico-based drug traffickers.
Oscar Sanchez, 52, was sentenced by United States District Judge Virginia A. Phillips. Sanchez pleaded guilty in November 2020 to a single-count information charging him with concealment money laundering.
A Black Market Peso Exchange scheme allows drug traffickers who have their proceeds in U.S. dollars to convert it to a different currency, such as Mexican pesos, via the sale of goods shipped across international borders.
From 2017 to 2019, Sanchez, who worked in downtown Los Angeles, laundered drug money from the United States to Mexico. According to court documents, co-conspirators based in Mexico told drug traffickers to deliver drug proceeds to Sanchez. The drug traffickers contacted Sanchez and used coded language to arrange the delivery of money. Sanchez met with the traffickers at his place of business in Los Angeles and at other locations where he received the money. Using coded language, Sanchez reported to his co-conspirators the amount of money received.
The co-conspirators directed Sanchez to provide the money to third parties in the United States and pay invoices at Los Angeles-based businesses to conceal the source of the money. The U.S.-based third parties who received the money directed payments to be made to co-conspirators in Mexico, completing the money laundering cycle.
For example, in August 2018, a California-based drug trafficker told Sanchez he was speaking on a Mexico-based co-conspirator’s behalf and that he was instructed to deliver something, according to the prosecution’s sentencing memorandum. Sanchez asked if he would be delivering “merchandise” – coded language for money – and agreed to meet. Sanchez later met with the trafficker in Los Angeles, where he received the U.S. dollars in cash.
Shortly after the meeting, a Mexico-based co-conspirator called Sanchez and asked him if someone stopped by to take some “samples” from him. Sanchez said a total of 34 “bras” – coded language for $34,000 – was taken. Sanchez knew the money he received was drug proceeds.
In total, Sanchez laundered at least $914,641 in drug proceeds.
“By assisting members of Mexico-based narcotics trafficking organizations move their proceeds to Mexico, [Sanchez] contributed to the cycle of narcotics distribution that causes substantial harm to communities in the United States,” prosecutors wrote in a sentencing memorandum. “[Sanchez’s] use of coded language during dozens of intercepted calls demonstrate that he was deeply involved in the conduct.”
The FBI, the Drug Enforcement Administration and IRS Criminal Investigation investigated this matter.
Assistant United States Attorneys Joseph T. McNally and Chelsea Norell of the Violent and Organized Crime Section prosecuted this case.
Rhode Island Man Who Sought $4.7 Million in COVID Relief Loans Sentenced for Defrauding CARES Act Paycheck Protection ProgramRead the Press Release
PROVIDENCE – For the second time in one week, a defendant has been sentenced in U.S. District Court in Providence, RI, to a significant term of incarceration in federal prison for defrauding or attempting to defraud the Paycheck Protection Program administered by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, announced Acting United States Attorney Richard B. Myrus.
Today, Michael C. Moller, 42, a Middletown, R.I., man previously convicted and sentenced to 108 months in federal prison for committing four armed bank robberies while on home confinement for an even earlier tax fraud conviction, was sentenced to 82 months and one day in federal prison for fraudulently seeking more than $4.7 million in Paycheck Protection Program loans and violating the terms of his term of federal supervised release.
Today’s sentence follows the October 7, 2021, resolution of criminal charges against David Adler Staveley, a/k/a Kurt David Sanborn, a/k/a David Sanborn, 54, of Andover, MA, the first person in the country charged with defrauding or attempting to defraud the Paycheck Protection Program. Staveley was sentenced to 56 months in federal prison for filing four fraudulent loan applications totaling more than $543,700 for business he did not own.
In this most recent case, an investigation by the FBI and Internal Revenue Service Criminal Investigation determined that, while on federal supervised release, having completed his term of incarceration on the bank robbery convictions, Michael C. Moller, 42, submitted 11 fraudulent loan applications totaling $4,725,742 in his own name, as well as in the names of his father, and in the names of his girlfriend’s son and the brother. Moller received $599,251 from these fraudulent loans, which were designed to assist small businesses that were struggling to survive because of the pandemic.
According to court records, prior to his convictions for robbing four banks and for defrauding the Paycheck Protection Program, Moller was convicted in state courts in Rhode Island and Massachusetts nine times for larceny/obtaining money under false pretenses. Additionally, he was twice convicted in federal courts on tax fraud charges.
According to court documents filed while Moller was awaiting sentencing for defrauding the Paycheck Protection Program, an FBI investigation determined that while detained at the Wyatt Detention Center, he defrauded two fellow inmates by convincing them to give him thousands of dollars in cash as payment for the services of a purported lawyer who would assist them in their criminal and immigration cases. In calls made by Moller from inside the Wyatt Detention Center and reviewed by the FBI, Moller impersonated an attorney named “Sam” and directed individuals associated with the inmates to provide his girlfriend with thousands of dollars in cash. The wife of one inmate delivered $5,000 in cash to Moller’s girlfriend; a friend of another inmate is believed to have delivered approximately $12,000 in cash. One of the victims reported that Moller told him to pack his belongings because the attorney Moller had supposedly hired had arranged for bail to be posted. Bail was never posted.
In recorded conversations between Moller and his girlfriend, and reviewed by the FBI, it was learned that the money was spent on marijuana, gambling, and on Moller’s commissary account at the Wyatt Detention Center.
Appearing today before U.S. District Court Judge Mary S. McElroy, Moller was sentenced to a total of 82 months and one day in federal prison to be followed by 3 years of federal supervised release. Moller was ordered to pay restitution to banks totaling $599,251.
The cases were prosecuted by Assistant U.S. Attorney Lee H. Vilker.
Acting United States Attorney Myrus thanks the SBA Office of Inspector General and the FDIC Office of Inspector General for their assistance in the investigation that determined that Moller had defrauded the Paycheck Protection Program.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID- 19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Preston County woman admits to drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – Angela Dawn Yuchek, of Tunnelton, West Virginia, has admitted to a drug charge, United States Attorney William J. Ihlenfeld, II announced.
Yuchek, 32, pleaded guilty today to one count of “Distribution of Methamphetamine.” Yuchek admitted to selling methamphetamine in March 2019 in Preston County.
Yuchek faces up to 20 years of incarceration and a 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 Stephen D. Warner is prosecuting the case on behalf of the government. The Potomac Highlands Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The task force consists of the FBI, West Virginia State Police, Mineral County Sheriff’s Office, Hampshire County Sheriff’s Office, Grant County Sheriff’s Office, and the Keyser Police Department.
U.S. Magistrate Judge Michael John Aloi presided.
Port Neches Man Guilty of Child Pornography ViolationsRead the Press Release
BEAUMONT, Texas – A Port Neches man has pleaded guilty to federal child pornography violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Rion Carlos, 40, pleaded guilty to transportation of child pornography today before U.S. Magistrate Judge Christine L. Stetson.
“Viewing, possessing, trading, or transporting child pornography ultimately drives demand for its production,” said Acting U.S. Attorney Nicholas J. Ganjei. “EDTX is committed to punishing those on both the production and consumption side of this disgraceful and exploitive industry.”
According to court documents, Carlos admitted to using the internet and a cellular phone to provide an individual with links to a cloud storage service, causing the transport of over 300 images of child pornography, including some images that depicted prepubescent minors.
Carlos was indicted by a federal grand jury on June 2, 2021. He faces up to 20 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case is being investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Rachel Grove.
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Police Officer Indicted on Federal Bank Fraud Charge Involving Paycheck Protection Program LoansRead the Press Release
WASHINGTON – A Metropolitan Police Department (MPD) Officer was indicted today on a federal bank fraud charge stemming from a scheme involving $18,345 in Paycheck Protection Program (PPP) loans.
The announcement was made by Acting U.S. Attorney Channing D. Phillips and Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division.
Roberto Adams, 34, was indicted by a grand jury in the U.S. District Court for the District of Columbia. He was arrested on Aug. 13, 2021, following the filing of a criminal complaint in the case and remains free on personal recognizance pending further proceedings. The indictment includes a forfeiture count seeking an $18,345 money judgment.
According to the indictment, Adams made false and fraudulent claims last year to take advantage of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a federal law that is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of forgivable loans to small businesses for job retention and certain other expenses through the PPP. The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set timeframe and use at least a certain percentage of the loan towards payroll expenses.
As alleged in the indictment, Adams sought and received approximately $18,345 in PPP loans through an application to a participating financial lender on behalf of SUPERKLEAN LLC, a Maryland corporation. On loan documents submitted to an FDIC-insured financial institution, Adams claimed to be an eligible self-employed individual with a monthly payroll of $7,338 and sought a forgivable loan to cover payroll expenses. Adams further certified that his business was in operation on Feb. 15, 2020, and “had employees for whom it paid salaries and payroll taxes or paid independent contractors, as reported on Form(s) 1099-MISC.” He also certified that all loan proceeds would be “used only for business-related purposes as specified in the loan application.” Adams submitted a false and fraudulent 2019 Form 1040 Schedule C reporting $94,250 in gross income, $4,120 in expenses, and $88,060 in profits for SUPERKLEAN (which calculates to net profits of $7,338 per month). The Schedule C form indicated that Adams was the sole proprietor and that the business provided janitorial services. Tax records confirm that this 2019 Form 1040 Schedule C was never filed with the Internal Revenue Service, as was falsely and fraudulently claimed in the PPP loan application.
The loan application was approved, and the funds were electronically deposited in Adams’s bank account on Aug. 4, 2020.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI’s Washington Field Office. It is being prosecuted by Assistant U.S. Attorney Joshua S. Rothstein of the Fraud Section of the U.S. Attorney’s Office for the District of Columbia.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts.
For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
Pittsburgh Man Sentenced to Prison for Possessing Heroin and Fentanyl While on ProbationRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania, was sentenced today following his guilty plea to a charge of possession with intent to distribute a quantity of heroin and fentanyl, Acting United States Attorney Stephen R. Kaufman announced today.
Quenton McCoy, age 35, pleaded guilty to one count and was sentenced before United States District Judge Marilyn Horan.
In connection with the guilty plea, the court was advised that McCoy had pleaded guilty to possession with intent to distribute heroin and fentanyl in federal court in 2020. In August 2020, McCoy was sentenced to four years’ probation, including 10 months of home detention. In February 2021, while McCoy was still on home detention, a Penn Hills police officer stopped McCoy for a traffic violation. Over the course of the stop, the officer believed that McCoy was involved in criminal activity, and the officer obtained a search warrant for the car. During a search of the car, Penn Hills police officers found distribution quantities of heroin and fentanyl. By possessing heroin and fentanyl, McCoy violated the terms of his probation.
Judge Horan sentenced McCoy for the charge in the Indictment and the probation violation. In total, McCoy was sentenced to 28 months’ imprisonment to be followed by three years of supervised release.
Assistant United States Attorney Brian M. Czarnecki is prosecuting this case on behalf of the government.
The Penn Hills Police Department and the Federal Bureau of Investigation conducted the investigation that led to the prosecution of McCoy.
Physician Agrees to Pay $640,000 to Resolve Allegations of Anti-Kickback ViolationsRead the Press Release
SHREVEPORT, La. - Acting United States Attorney Alexander C. Van Hook announced today that Dr. Llewelyn Simon, an internal medicine physician from Monroe, Louisiana, has agreed to pay the United States $640,000 to resolve allegations that he accepted payments for referrals of home health patients.
Dr. Simon served as a medical director for the now defunct United Home Care home health agency and in that capacity, received monthly payments. The United States alleged that the medical director fees exceeded the fair market value of the services provided by Simon and that the excess fees were for referrals of patients, many of whom were Medicare beneficiaries.
Congress passed the Anti-Kickback Statute to prevent financial incentives from improperly influencing medical decision-making which can lead to excessive and unnecessary services. Specifically, the Anti-Kickback Statute prohibits offering or paying anything of value to induce the referral of items or services covered by federal health care programs.
“Improper financial relationships between health care providers can lead to overutilization and increase the cost of health care services paid for by the taxpayers,” stated Acting United States Attorney Alexander C. Van Hook. “We will continue to ensure that health care decisions are based on the needs of patients rather than the financial interests of providers.”
The investigation of this matter was conducted by the Department of Health and Human Service’s Office of Inspector General. Assistant United States Attorney Melissa Theriot handled the case. The resolution was the result of a coordinated effort between federal agencies and illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act.
Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
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Pennsylvania man sentenced for his role in a drug trafficking operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Lance Smith, of Confluence, Pennsylvania, was sentenced today to time served for his role in a drug trafficking conspiracy, United States Attorney William J. Ihlenfeld, II announced.
Smith, 48, pled guilty in April 2021 to one count of “Conspiracy to Distribute Heroin and Cocaine Base.” Smith admitted to working with others to distribute heroin and cocaine base, also known as “crack,” from March 2018 to September 2020 in Monongalia County and elsewhere.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Drug Enforcement Administration, the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Monongalia County Sheriff’s Office investigated.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
U.S. District Judge Thomas S. Kleeh presided.
Related press release: https://www.justice.gov/usao-ndwv/pr/seventeen-people-charged-heroin-and-crack-cocaine-distribution-operation
Owner of Debt Collection Company Pleads Guilty to Corruptly Providing Benefits to Public OfficialRead the Press Release
CHICAGO — The former owner of a debt collection company pleaded guilty today to a federal criminal charge for corruptly agreeing to underwrite certain expenses for a special event hosted by the former Cook County Circuit Court Clerk.
DONALD DONAGHER, JR., 69, of Harrisburg, Pa., pleaded guilty to one count of corruptly giving something of value to reward a public official. U.S. District Judge John Z. Lee set sentencing for Jan. 21, 2022.
Donagher was a former owner and Chief Executive Officer of Harrisburg, Pa.-based PENN CREDIT CORPORATION, which in 2014 had a non-exclusive contract with Cook County to perform debt collection work. Donagher admitted in a plea agreement that in March 2014 he agreed to underwrite certain expenses for a Women’s History Month Celebration hosted by the Circuit Court of Cook County. The expenses included the payment of plaques that were presented to judges honored at the event. Donagher admitted that he underwrote the expenses in an effort to corruptly reward the Clerk of the Circuit Court for her perceived favorable treatment with respect to the awarding of debt collection work to Penn Credit.
Relatedly, the criminal investigation of Penn Credit was resolved today with a deferred prosecution agreement under which Penn Credit admitted to engaging in the Cook County corruption scheme at the direction of Donagher. Under the agreement, the government will defer prosecution of Penn Credit for two years and then seek to dismiss a conspiracy charge against it if the company abides by certain conditions, to include taking remedial measures to enhance its ethics and compliance programs and continuing to cooperate with the government with respect to any matter relating to this conduct. The deferred prosecution agreement, which was approved today by the U.S. District Court, also requires Penn Credit to pay a monetary penalty of $225,000.
Donagher’s plea agreement and Penn Credit’s deferred prosecution agreement were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Justin Campbell, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago; and Patrick M. Blanchard, Cook County Inspector General. The government is represented by Assistant U.S. Attorney Christopher V. Parente.
Orchard Park Gang Member Sentenced for Drug Distribution and Firearm OffensesRead the Press Release
BOSTON – A Boston man with ties to the Orchard Park housing development in Roxbury was sentenced to more than nine years in federal prison on Friday, Oct. 8, 2021 for drug trafficking and firearm offenses.
Lyndon Scott, 32, was sentenced by U.S. District Court Judge Patti B. Saris to 117 months in prison and three years of supervised release. On May 20, 2021, Scott pleaded guilty to possession with intent to distribute cocaine base, being a felon in possession of a firearm and ammunition and possession of a firearm during and in relation to a drug trafficking offense. Scott also received an 18-month concurrent sentence for violating his terms of federal supervised release.
In September 2019, investigators conducted a search of Scott’s vehicle and recovered approximately 17 grams of crack cocaine packaged for sale and a Taurus 9-millimeter pistol loaded with 13 rounds of 9-millimeter ammunition from a hidden compartment in the center console of his car. Additional cocaine and drug trafficking paraphernalia were recovered from Scott’s apartment.
Scott was previously convicted on two occasions for unlawful possession of a loaded firearm, making this conviction his third firearm-related offense. At the time of his arrest, Scott was on supervised release for a 2017 federal conviction for cocaine distribution near a housing development.
Acting United States Attorney Nathaniel R. Mendell; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Suffolk County Sheriff Steven W. Tompkins; and Boston Police Acting Commissioner Gregory Long made the announcement. Assistant U.S. Attorney Christopher Pohl of Mendell’s Narcotics and Money Laundering Unit prosecuted the case.